BusinessMirror February 21, 2020 by BusinessMirror

‘HOT MONEY’ FLOWS OUT OF PHL, JANUARY B.O.P. IN THE RED–BSP T HE two main dollar flow indicators of the Philippine economy were off to a bad start this year, as the country’s balance of payments (BOP) recorded a deficit while net portfolio investments left the country in January. The Bangko Sentral ng Pilipinas (BSP) reported that the country’s BOP—the summary of the Philippines’s total transactions with the rest of the world—took a sharp downturn to a deficit of $1.36 billion, from the December

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2019 surplus of $1.57 billion. The BSP said in a statement that the BOP deficit in January 2020 reflected mainly the outflows arising from the national government’s foreign currency withdrawals, which were used largely to pay its foreign currency debt obligations, as well as net outflows in foreign portfolio investments. The statement added the outflow could have been larger if not partly offset by inflows representing the BSP’s net foreign

Friday, February 21, 2020 Vol. 15 No. 134

exchange operations and income from its investments abroad during the month in review. In a separate statement, the BSP said net portfolio investment flows to the Philippines, or more popularly known as “hot money,” also deteriorated during the period. In January, the net outflow widened to $486 million, from $321 million recorded in December 2019. The BSP said the United States received the bulk, or 62.1 percent of total outflows. See “Hot money,” A2

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‘Public utility’ law may spark legal challenge L

By Jovee Marie N. dela Cruz

@joveemarie

EADERS of the House of Representatives said the passage of the bill providing for the definition of “public utility” is needed to end the unreliable and expensive consumer goods and services in the country, as some quarters warned against the implications of the amendatory legislation for a new Public Service Act. House Committee on Ways and Means Chairman Joey Sarte Salceda and House Committee on Economic Affairs Chairperson

Sharon Garin made the assurance even though some of their peers questioned the legality of House Bill 78, which passed on second

reading last Tuesday. Garin, sponsor of the bill, assured the public that safeguards are well in place under the measure,

“Just to point out how absurd keeping the PSA is, [even an] ice plant [is covered by] foreign ownership restrictions. Our definition of what a public utility is goes back to the Commonwealth Act 146, which was passed in 1936.” —Salceda

which allows new players to invest in the Philippines. “[Important] safeguards [under the bill], the President can intervene in any transaction based on national security, reciprocity clause, strengthening of powers of Continued on A2

‘LOOMING POWER GAP A GENERATION ISSUE’ By Lenie Lectura @llectura

HE impending power shortage in the summer months this year is mainly due to power generation problems, the National Grid Corporation of the Philippines (NGCP) said on Thursday.

By Cai U. Ordinario

See “ASF,” A4

PESO EXCHANGE RATES n

See “NGCP,” A12

Investment pledges up 20.7% to ₧1.3T in 2019, says PSA

Fight vs ASF: Mandatory checks set in all ports ANDATORY inspection and 24/7 quarantine checkpoints at international and domestic seaports and airports will be strictly implemented following the confirmation of African swine fever (ASF) incidence in Mindanao, the Department of Agriculture (DA) announced on Thursday. Agriculture Secretary William Dar said the establishment of quarantine checkpoints and mandatory inspection will be done in close coordination with the local government units, Bureau of Customs and Philippine Ports Authority. Dar made a statement as he recently issued Memorandum Circular 03, Series of 2020, to strictly implement veterinary quarantine measures against ASF.

As such, the grid system operator is calling for the intervention of government agencies, particularly those in the energy industry, to address the power shortage looming over the Luzon Grid. “With the increase in power demand, lack of new baseload plants, power plants de commissioning

ASEAN SPECIAL MEETING Foreign ministers of The Association of Southeast Asian Nations (Asean) shake hands in Asean style ahead of the Special Meeting of the Asean coordination council in Vientiane, Laos, on Thursday. From left, Malaysia’s Foreign Minister Saifuddin Abdullah, Myanmar’s Minister of State for Foreign Affairs Kyaw Tin, Philippines’s Foreign Affairs Secretary Teodoro L. Locsin Jr., Singapore’s Foreign Minister Vivian Balakrishnan, Thailand’s Foreign Minister Don Pramudwinai, Vietnam’s Deputy Prime Minister and Foreign Minister Pham Binh Minh, Brunei’s Second Minister of Foreign Affairs and Trade Erywan Yusof, Cambodia Foreign Minister Prak Sokhon, Indonesia Foreign Minister Retno Marsudi, Laos Foreign Minister Saleumxay Kommasith, and Asean Secretary General Dato Lim Jock Hoi. Story on page A6. AP PHOTO/SAKCHAI LALIT

@caiordinario

NVESTMENT pledges made by foreign and Filipino firms in Investment Promotion Agencies (IPAs) grew 20.7 percent in 2019, according to the Philippine Statistics Authority (PSA). Data showed foreign and Filipino firms pledged a total of P1.31 trillion in 2019, higher than the P1.08 trillion posted in 2018. PSA data showed that foreign investment pledges surged 112.8 percent to P390.11 billion in 2019, from P183.35 billion in 2018. Filipino investment pledges, which accounted for 70.2 percent of total pledges last year, grew 2 percent to P918.98 billion from P900.81 billion in 2018. In the fourth quarter, total approved investment pledges from foreign and Filipino firms contracted 31.9 percent to P412.2 billion in 2019, from P605.07 billion in 2018. During the year, total approved investments peaked in the third quarter at P515.71 billion, which was 187.7 percent higher than the P179.26 billion in the third quarter of 2018. See “Pledges,” A2

US 50.5730 n JAPAN 0.4542 n UK 65.3555 n HK 6.5067 n CHINA 7.2271 n SINGAPORE 36.2713 n AUSTRALIA 33.7575 n EU 54.6593 n SAUDI ARABIA 13.4843

Source: BSP (20 February 2020)

News

BusinessMirror

A2 Friday, February 21, 2020

‘Airlines lacking crew due to COVID restrictions’

By Recto Mercene

@rectomercene

OCAL air carriers have expressed concern that if the restrictions on pilots and cabin crew who fly to Hong Kong and Macau are not lifted, their operations will be hampered by the lack of personnel. Manila had imposed a ban on foreign nationals from China, including its Special Administrative Regions (SAR) due to the outbreak of the 2019-novel coronavirus (COVID-19), which has killed 2,000 people. “We will soon run out of pilots and cabin crew if the restrictions imposed on them are not lifted,” said a source from flag carrier Philippine Airlines (PAL) who requested anonymity. “If the company will continue to operate out of Hong Kong and Macau, our reserves of pilots will be exhausted because every time they travel to those places, they have to undergo a 14-day self-imposed quarantine,” added the source, who spoke in a mix of Filipino and English. As the flag carrier is now working towards operationalizing flights, the source said PAL is appealing to the government, especially to

the Inter-Agency Task Force for the Management of Emerging Infectious Disease (IATF), to lift the restrictions on Filipino pilots and cabin crew. The other two carriers, Cebu Pacific and Air Asia, which fly out to Hong Kong remained mum on the issue, but their pilots and cabin crew are also covered by the quarantine restrictions. Dana Sandoval, immigration spokesman, said all airline requests to operate to Hong Kong and SAR are handled by the IATF while the Bureau of Quarantine handles the health issue. PAL sources said about 100 pilots and cabin crew underwent selfquarantine for 14 days after they flew to different parts of China at a time COVID-19 was declared a threat to humans. “The quarantine officials are very strict as far as the health issue

is concerned. They will not allow the crew who went to China and the SAR of Hong Kong and Macau to not undergo a self-imposed 14day quarantine,” Sandoval said. Since last Thursday, local carriers were allowed to ferry Filipino migrant workers stranded in the country due to the travel ban, as well as workers, students, permanent residents, and diplomats, to and from Hong Kong and Macau.

Filipinos on cruise ship

THE Department of Foreign Affairs (DFA) on Thursday said preparations are now under way for the repatriation of Filipino seamen and passengers onboard the Diamond Princess “as soon as all details and health tests allow departure.” The DFA said the 14-day quarantine imposed by the Japanese authorities on the Diamond Princess ended on Thursday. There were 531 Filipino seamen and seven regular passengers aboard the luxury cruise ship that remained on quarantine while anchored at the Yokohama Port in Japan. Health Secretar y Francisco Duque said the 500 Filipinos will arrive in the country on Sunday, February 23. The government plans to quarantine them all at the New Clark City in Tarlac. Duque said two airplanes will airlift the Filipinos, which will “arrive in two-to-three hour gap.” The DFA earlier said the Filipinos would be flown back to the Philippines on March 5. “The March 5 date was origi-

nally proposed because the crew were supposed to do another 14-day quarantine on the ship, but recent information is that the additional quarantine can be done in home countries,” said Foreign Affairs Assistant Secretary Eduardo Martin R. Meñez. He said the Philippine embassy in Tokyo is confirming the number of those who would be repatriated “but we have 40 who are in health facilities, one who has been released, and the remaining number, we are looking at around 400.” Meñez said some 100 Filipino seamen may opt to remain on the Diamond Princess if they will be allowed by Japanese authorities. He said the Philippine embassy in Tokyo is coordinating with the Japanese government and the management of Princess Cruises to finalize the details, logistics, and schedule of the repatriation of Filipino crew and passengers onboard the Diamond Princess. “All Filipino crew and passengers who are cleared for disembarkation from the vessel will be assisted by the Embassy and Princess Cruises, and will be repatriated back to the Philippines at the soonest possible time,” the DFA said, adding the Filipinos who are in hospital for treatment “will be repatriated as soon as the hospitals grant them medical clearance.” The DFA and the Japanese Embassy announced that the first Filipino crew member who tested positive for COVID-19 and was admitted to the hospital on February 5 has been successfully treated.

FECAL TRANSFER BEHIND SPREAD OF VIRUS? T HE novel coronavirus is shed in the feces of infected people, which may help explain why it’s spread so fast, according to Chinese researchers. The finding of live virus particles in stool specimens indicates a fecaloral route for coronavirus, which may be why it’s caused outbreaks on cruise ships with an intensity often seen with gastro-causing norovirus, which also spreads along that pathway. More than 600 Covid-19 infections were confirmed among passengers and crew aboard the Diamond Princess, the ship quarantined for two weeks in Yokohama, Japan. “This virus has many routtes of transmission, which can partially explain” its rapid spread, the Chinese Center for Disease Control and Prevention said in a report. T he agenc y recommends strengthening sanitation and hyg iene measures to prevent

fecal-oral transmission in epid e m i c a r e a s . T h e s e i n c lu d e drinking boiled water, avoiding eating raw food, implementing separate meal systems, frequent hand-washing, disinfecting toilets, and preventing water and food contamination from patients’ stool. “The virus can also be transmitted through the potential fecal-oral route,” the Chinese CDC said. “This means that stool samples may contaminate hands, food, water” and cause infection when the microbes enter the mouth or eyes, or are inhaled, they said.

Rectal swabs

RECTAL swabs can detect the pneumonia-causing virus in patients even when conventional oral tests are negative, doctors at the Wuhan Pulmonary Hospital in central China said in a study. The novel SARS-like coronavirus was found in oral and anal swabs,

and blood—indicating that infected patients may shed the pathogen through respiratory, fecal-oral or body fluid routes, the authors said. They showed that the current strategy for detecting viral RNA in oral swabs used to diagnose COVID-19 cases “is not perfect,” the researchers said. They noted that patients may harbor the virus in the intestine at the early or late stage of disease, and that a blood test for antibodies against the virus should be considered to better understand patterns of infection. The coronaviruses that cause COVID-19 and severe acute respiratory syndrome (SARS) bind to the same distinctly shaped protein receptors in the body that are expressed in the lungs and intestines, making these organs the primary targets for both viruses, said Fang Li, an associate professor of veterinary and biomedical sciences at the University of Minnesota, last month.

‘Hot Money’. . .

Pledges. . .

Jitters

In the last quarter of 2019, foreign investments grew 17.3 percent to P112.11 billion from P95.55 billion in the same period in 2018.

Continued from A1

ING Bank Manila economist Nicholas Antonio Mapa said the outflows in January reflect the “uncertainty in the global environment”as well as “domestic concerns” during the period. Mapa said investors opted to head for the exits while awaiting clarity on those issues. “January was rather eventful, both here and abroad, with the year opening with an escalation and quick de-escalation in US-Iran tension. This was immediately followed by a volcanic eruption and a pickup in tirades against water utility providers with January closing with brewing fears over a global health emergency,” he said. “All these developments were to prompt investors to seek relative safe haven for the time being,” he added. However, Mapa is optimistic that in the months to follow, the Philippines will be able to ride the tide and investments will eventually find their way into the country again. “In February, we’ve seen a bit of a reversal with foreign inflows returning with the Philippines adjudged as the ‘least affected’ by the economic fallout from COVID-19 [2019-novel coronavirus] compared to our neighbors. Analysts have cited the relative lower exposure to Chinese tourism and trade, helping the Philippines stand out in the Asean crowd,” he said. However, Mapa noted that remittance flows are now “very vulnerable” given the Philippines’s high concentration in the services industry, with hotel, restaurant and leisure industries likely to take a hit.

Continued from A1

Employment creation

IN terms of projected employment creation, PSA data showed jobs that would be generated from these investment pledges contracted 6.96 percent. Data showed jobs to be created from these investments reached 178,954 in 2019, lower than the 192,335 jobs projected to be created from pledges made in 2018. In the fourth quarter, PSA data showed total projected job generation contracted 23 percent to 55,946 in 2019 from 72,630 in 2018. In terms of foreign investment pledges for 2019, these would generate around 129,610 jobs. This was an 8.8-percent contraction from the 142,091 jobs projected to be created from 2018 investment pledges.

Amoy Gardens

A VIRUS-LADEN aerosol plume emanating from a SARS patient with diarrhea was implicated in possibly hundreds of cases at Hong Kong’s Amoy Gardens housing complex in 2003. That led the city’s researchers to understand the importance of the virus’s spread through the gastrointestinal tract, and to recognize both the limitation of face masks and importance of cleanliness and hygiene, according to John Nicholls, a clinical professor of pathology at the University of Hong Kong. Squat latrines, common in China, lacking covers and hands that aren’t washed thoroughly with soap and water after visiting the bathroom, could be a source of virus transmission, said Nicholls, who was part of the research team that isolated and characterized the SARS virus. Bloomberg News

Jobs created from foreign investment pledges approved in the last quarter of 2019 contracted 9.3 percent to 44,082 jobs from 48,590 in the same period in 2018.

Foreign investors

PSA data showed the largest share of foreign investment pledges came from Singapore, China and South Korea. In 2019, Singapore investors pledged P176.36 billion, which accounted for 45.2 percent of the total foreign investment pledges in 2019. PSA data showed this represented a surge in growth of about 732.6 percent from P21.18 billion in 2018. Other major investors in 2019 came from China and South Korea, accounting for 22.7 percent and 10.6 percent, respectively, of the total pledges last year. China posted a 74.9-percent growth in investment pledges to P88.67 billion in 2019 from P50.69 billion in 2018. South Korea, meanwhile, posted a growth of over 2,000 percent in its investment pledges to P41.48 billion in 2019 from P1.88 billion in 2018.

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‘Public utility’ law may spark legal challenge Continued from A1

regulating agencies, restrictions on labor, increased penalties,” said Garin in a text message to BusinessMirror. For his part, Salceda said PSA amendments will allow full foreign ownership in transport, power and communications, spelling the “beginning of the end” of unreliable and expensive consumer goods and services. Salceda said the passage of amendments to the Public Service Act, which he principally authored, meant the “beginning of the end for unfair protection” across sectors which will no longer fall under the definition of “public utilities” once House Bill 78 hurdles Congress and is signed by the President.

84-year-old law

THE bill, which seeks to amend the 84-year-old Public Service Act, seeks to provide a clear statutory definition of a public utility. This means that a narrower set of services, including electricity distribution, electricity transmission, and water pipeline distribution or sewerage pipeline system, will be subject to foreign equity ownership restrictions imposed on public utilities. The bill distinguishes “public service,” whose definition under the law is retained, from “public utility.” Salceda said competition and foreign investment are inhibited because limitations that should only apply to the operation of a public utility are applied to all public services. “This situation is caused by the ambiguity in the definition of public utility that is often used interchangeably with public service under Commonwealth Act No. 146. The lawmaker said the key to fixing this problem is to develop a clear statutory definition of public utility. “Just to point out how absurd keeping the PSA is, [even an] ice plant [is covered by] foreign ownership restrictions. Our definition of what a public utility is goes back to the Commonwealth Act No. 146, which was passed in 1936. We were not yet independent then. And we are currently letting it govern how we should compete in the current economy. We should have amended the law decades ago, just because of the sheer absurdity of sticking with Commonwealth-era economic restrictions. Now, we are amending it for an even bigger reason: to end unfair protection and to enable economic dynamism,” Salceda said. Philippine laws, he added, “are riddled with unfair and irrational protection for so many sectors. It’s the consumer who pays the price – bad, expensive, unreliable service. Meanwhile, protected sectors grow complacent and they stagnate. Unfair protectionism brings economic stagnation. In fact, many of our protectionist policies are so irrational that among some 80 countries surveyed by the OECD, we were found to be the most restrictive economy in 2018. How can you bring in investments and create jobs, if your law says you don’t want their investments?” Public utilities, as stated in Article 12, Section 11 of the 1987 Constitution, must be solely operated by firms that are 60 percent owned by Filipinos. “However, the charter does not define [public utility]. Currently, our definition of public utiltiy is the PSA and other jurisprudence issued by the Supreme Court,” Garin said.

Violative

HOWEVER, lawmakers on Thursday said the passage of the “New Public Service Act” is “fatally” violative of the 1987 Constitution. Albay Rep. Edcel C. Lagman said it allows traditional public utilities like transportation and telecommunication companies to be owned by aliens or corporations wholly owned by foreigners. Garin insisted these amendments

to PSA are within the boundaries of the legislative powers of the Congress. “This is contrary to Section 11 of Article XII of the Constitution which reserves the ownership, operation, control and management of public utilities to Filipino citizens or to corporations or associations at least 60 per centum of whose capital is owned by Filipinos,” Lagman said. Under Section 11, Article XII of the Constitution, “No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least sixty per centum of whose capital is owned by such citizens x x x The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines.” In Lagman’s view, “the subterfuge offensive to the Constitution is foisted by making a distinction between ‘public utility’ and ‘public service’ where enterprises categorized under the latter are unconstitutionally exempt from the nationality or citizenship requirement of the Constitution.” According to Lagman, there is no distinction between “public utility” and “public service” as ruled by the Supreme Court in several cases.

Cannot amend

LAGMAN explained that the proposed “New Public Service Act,” if enacted into law, is a mere statute which cannot amend the fundamental law. “No statute can amend the Constitution, and the fundamental law can only be amended through a constitutional amendment proposed by a constituent assembly, constitutional convention or by people’s initiative under Article XVII of the Constitution,” he said. “In fact, there are many pending Resolutions seeking the amendment of the economic provisions of the Constitution, including Section 11 of Article XII, through a constituent assembly,” he added. He said these resolutions manifest the clear intention of amending the Constitution through a constituent assembly, not through an act of the Congress as a legislative assembly. Gabriela Rep. Arlene Brosas said PSA amendments will set the stage for the total foreign control of several vital sectors and services in the country, including the media industry. “This measure, if passed, would lead to foreign takeover of public transport systems, internet services, media and other sectors at the expense of ordinary consumers who will pay costlier services,” she added.

Neda’s mandate

THE PSA bill, as approved on second reading, also charges the National Economic and Development Authority (Neda) Secretariat, in consultation with the Philippine Competition Commission (PCC), with recommending to Congress the classification of public service as a public utility on the basis of these criteria: ■ the person regularly supplies and directly transmits and distributes to the public through a network a commodity or service of public consequence; ■ the commodity or service is necessary to the public and a natural monopoly that needs to be regulated when the common good so requires; ■ the commodity or service is necessary for the maintenance of life and occupation of residents; and ■ the commodity or service is obligated to provide adequate service to the public on demand.

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Editor: Vittorio V. Vitug • Friday, February 21, 2020 A3

Senate okays updated anti-terrorism law

By Butch Fernandez

@butchfBM

ENATORS approved on second reading last Wednesday an updated anti-terrorism law adhering to regional and international standards. Principally authored by Sen. Panfilo M. Lacson, Senate Bill (SB) 1083 was crafted to provide “a clear, concise, balanced and rational anti-terrorism law” that adheres to regional and international standards. The bill, to be known as the Anti-Terrorism Act of 2020 once enacted into law, included a new section on foreign terrorist fight-

ers to cover Filipino nationals who commit terrorist offenses abroad. Its enactment will effectively repeal the existing Human Security Act of 2007, Lacson said, adding: “With [SB 1083], we can be sure that whether the terroristic act is committed here or abroad, the perpetrator shall be within the arms of the law once he or she comes to our country.” Lacson, who chairs the Senate

Committee on National Defense and Security, noted that the existing Human Security Act “did virtually nothing to deter participation in the plotting of terroristic acts.” He added that the remedial legislation in SB 1083 introduced provisions penalizing those who will propose, incite, conspire, participate in the planning, training, preparation and facilitation of a terrorist act; as well as those who will provide material support to terrorists, and recruit members in a terrorist organization. “As a responsible member of the community of nations, we are dutybound to improve our laws to ensure that we can implement UN [United Nations] Security Council resolutions, meet international standards and fulfill state obligations with the UN,” Lacson said. The senator clarified that apart

from establishing Philippine jurisdiction over Filipino nationals who may join and fight with terrorist organizations outside the Philippines, the remedial legislation, likewise, “ensures that foreign terrorists do not use the country as transit point, a safe haven to plan and train new recruits for terrorist attacks in other countries.” Its enactment, he noted, will “send a strong message to them: You are not welcome here. If you dare set foot in our country, you will be dealt with the full power of our laws,” adding that the penalty of life imprisonment without the benefit of parole will be meted out to them. The Lacson bill, likewise, removed the provision on payment of P500,000 damages per day of detention of any person acquitted of terrorism charges, but the number of days a suspected person can be

detained without a warrant of arrest is 14 calendar days, extendible by 10 days. Lacson assured there are enough safeguards against possible abuses by arresting officers, and that amendments were crafted to ensure that the rights and wellbeing of the accused individuals or suspected terrorists inside jail facilities are protected. Lacson added that a new provision, designating certain Regional Trial Courts as anti-terror courts, was also introduced to ensure the speedy disposition of cases. Also introduced is the use of videoconferencing for the accused and witnesses to remotely appear and testify will be allowed under the measure. The amendments also provide for the police or the military to conduct a 60-day surveillance on suspected terrorists, which may be lengthened to another non-extend-

able period of 30 days, provided that they secure a judicial authorization from the Court of Appeals. Any law-enforcement or military personnel found to have violated the rights of the accused persons shall be penalized with imprisonment of 10 years, the senator said. To allay concerns of possible excesses by the authorities, the Commission on Human Rights (CHR) shall be notified in case of detention of a suspected terrorist. The measure also mandates the CHR to give the highest priority to the investigation and prosecution of violations of civil and political rights of persons, and shall have the concurrent jurisdiction to prosecute public officials, law enforcers and other persons who may have violated the civil, and political, rights of suspects and detained persons.

Four Compostela villages receive ₧20 million from Opapp for water projects By Manuel T. Cayon @awimailbox Mindanao Bureau Chief

AVAO CITY—Four villages of interior Compostela town of Davao de Oro received their respective water system projects from the Office of the

Presidential Adviser on the Peace Process (Opapp). These interior villages were also formerly abuzz with activities by anti-government guerrillas, government troops claim. Opapp Secretary Carlito G. Galvez Jr. and Gov. Jayvee Tyron L. Uy turned over the operation

of completed water projects or distributed cash for the construction of the other unfinished projects on February 13 to recipients and barangay officials of Barangays Tamia, Ngan, Osmeña, and Mangayon, all Compostela towns. Barangay Captain Vicente L. Damalerio of Barangay Ngan and

Barangay Captain Lolito C. Pavia of Barangay Osmeña received the completed projects worth P7.5 million and P3.2 million, respectively. Barangay Captain Elmer M. Remulta of Barangay Tamia received P5 million for the construction of potable water system, and Barangay Captain William P. Tagra Sr. of

Barangay Mangayon received P2.5 million for the potable water construction and another P1.8 million for the drilling of the well. Tagra said the project would save time and effort for residents who regularly walk distances to fetch water. Galvez disclosed that P33.9 mil-

lion was allocated to the province of Davao de Oro which would be implemented in the priority areas to be cleared by the military. “We want to bring back dignity to our people. Without water, we have no proper household, and without it, we don’t have dignity and respect for ourselves,” he added.

A4 Friday, February 21, 2020 • Editor: Vittorio V. Vitug

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PHL still keen on forging FTA with EU

By Elijah Felice E. Rosales

@alyasjah

HE Philippines at the World Trade Organization (WTO) has transmitted to the European Union its commitment to negotiate a free-trade agreement (FTA) in spite of policy differences with the economic bloc. In a document obtained by the BusinessMirror, the Philippines emphasized the importance of the EU as a trading partner at its 14th trade policy review in

the WTO. As such, the country is committed to resolve its issues with the economic bloc in order to forge an FTA. “ T he Ph i l ip pi nes re m a i n s

committed to solidify our longterm economic relation with the EU through a permanent FTA mechanism and we stand ready to continue our dialogue in this regard,” the Philippine statement read. In proving the EU’s contribution, the Philippines highlighted the benefits of the Generalised Scheme of Preferences Plus, the trade privilege allowing the country to export 6,274 products to Europe at zero duty. It reported exports to the EU from 2015 to 2018 improved by 22 percent through the GSP Plus, as it allowed the free entry of products, like coconut oil, preserved tuna, bicycles, pineapple products, fruit jams, and some garments and footwear.

“As a developmental tool, GSP Plus fosters income growth, supports employment creation, and ultimately contributes to countryside development and inclusive economic growth,” the Philippine statement added. It said it values the importance given by the EU on the role of micro, small and medium enterprises (MSMEs) in achieving growth for all. On this matter, Manila relayed to Brussels its readiness to work together to advance this agenda in the WTO. The relationship of the Philippines and the EU has not been smooth sailing since President Duterte assumed office in 2016, as the economic bloc is one of the government’s staunchest critics in its

war on drugs campaign. In its report last week, the European Commission lambasted Manila’s human-rights condition due to the state’s drug war and proposals to reimpose capital punishment. The EU also took note of the President’s decision to veto a bill seeking to end the practice of contractualization in the Philippines. This was also mainly the reason the two parties have yet to return to the negotiating table for the formalization of an FTA. The EU is reportedly backing down from talks to negotiate a trade deal until the government has addressed the economic bloc’s policy concerns. The Philippines is mandated to implement 27 core conventions on

labor welfare, human rights, good governance and environmental protection for it to keep its preferential trading with the EU. The Philippines is one of the largest beneficiaries of the GSP Plus, according to the EU report. In 2018, it shipped roughly €1.91 billion worth of goods to Europe through the trade privilege. This represented over 25 percent of the country’s exports to the economic bloc amounting to €7.49 billion, the EU report showed. Bangladesh and India are the top beneficiaries of the GSP Plus. They are followed by Vietnam, Indonesia, Pakistan, Cambodia, Myanmar, the Philippines, Sri Lanka and Mozambique, in that order.

Abaca export receipts up 39.5% in Jan-Sept—PhilFida Group: Natural gas is also harmful to environment By Cai U. Ordinario @caiordinario

ARNINGS from the country’s abaca exports expanded by an annualized rate of 39.5 percent in January to September last year, according to the latest data released by the Philippine Fiber Industry Development Authority (PhilFida). PhilFida data showed that the value of abaca exports in the ninemonth period rose to $115.96 million, from $83.1 million in the same period in 2018. The bulk of the abaca exports receipts came from abaca pulp, which amounted to $89.75 million. Shipments of abaca pulp accounted for 77.4 percent of total abaca exports, 77.3 percent higher than the $50.61 million recorded a year ago. The second-biggest contributor to export revenues is raw abaca fiber. Shipments in the Januaryto-September period were valued at $18.37 million. However, the receipts were 21.6 percent lower than the $23.43 million recorded in 2018. Earnings from raw abaca fiber, PhilFida data showed, accounted for 15.8 percent of total export revenues during the period. The Philippines, the world’s leading supplier of abaca, also shipped cordage, fibercrafts, and fabrics and yarns to other countries. Exports of these products accounted for more than 5 percent of total export receipts. Earnings from abaca cordage amounted to $5.95 million, 14.5 percent lower than the $6.96 million recorded posted in the January-toSeptember period in 2018. Shipments of fibercrafts were valued at $1.12 million, 16.3 percent lower than the $1.34 million in 2018; while those of fabrics and

ASF. . .

By Jovee Marie N. Dela Cruz @joveemarie

PHOTO of abaca tuxy from the Philippine Fiber Industry Development Authority

yarns amounted to $762,451 in 2019, slightly lower than the previous year’s record of $765,735. PhilFida said the country’s abaca production last year fell by almost 8 percent to 70,000 metric tons, from 76,000 MT in 2018 due to unfavorable weather conditions. PhilFida Executive Director Kennedy T. Costales told the BusinessMirror that El Niño and typhoons reduced the country’s abaca output last year. Costales said a lot of abaca-pro-

ducing provinces, particularly those in the Visayas, were hit by El Niño last year. Even government-held nurseries, he said, were not spared from the dry spell. The PhilFida official added that some farmers did not harvest during the midterm elections in May. PhilFida earlier anticipated that 2019 abaca output would reach an all-time high of 80,000 MT. Costales said he remains optimistic that the historic target is still attainable this

year particularly if planting conditions would improve. Under a road map prepared by PhilFida, an attached agency of the Department of Agriculture, the government is targeting to hike abaca output to 221,238 MT by 2022. In the Philippine Abaca Roadmap 2018 to 2022, a copy of which was obtained by the BusinessMirror, the government would have to spend P7 billion to expand abaca plantations to 231,859 hectares, from 181,859 hectares.

continued from a1

“There will be a mandatory inspection of vessels docking in Mindanao ports with meat products from ASF-affected zones and countries,” he added. According to Dar, checked-in and hand-carried luggage of all incoming passengers from ASF-affected zones, and countries will be thoroughly inspected by DA-BAI veterinary quarantine personnel, who will confiscate and immediately destroy all pork products. “I am directing the Bureau of Animal Industry [BAI] and other concerned agencies of the Department of Agriculture [DA] to implement the establishment of the checkpoints on 24/7 operations with disinfection equipment and facilities, including foot baths, in all entry points in Mindanao,” said Dar. The DA said the Philippines has culled 230,000 hogs or 1.8 percent of the national swine population of 12.7 million. Of these, it added only 15 percent were ASF-infected, and the rest healthy, but all were culled, as they were within the 1-kilometer infected

zone, under the “1-7-10 protocol.” “However, our total culled pigs is minimal compared to other neighboring ASF-affected countries,” Dar said. In its latest report, the World Organisation for Animal Health or OIE said Vietnam has culled 5,960,000 pigs, while China had 1,193,000. Earlier, the DA chief said it is now considering to modify the prevailing 1-7-10 protocol, decreasing the coverage of the infected zone to only 500-meter radius, and that only infected pigs will be culled, while the healthy ones will be separated, quarantined and observed. Dar said this will ensure pork supply, as healthy pigs outside of the proposed 500-meter radius may be slaughtered and sold. “The private commercial farms have assured us that they have enough supply of pork and pork products for the entire 2020,” said Dar. “We are constantly meeting with key hog industry leaders, who assured us that they are increasing their stocks,” Dar added. Also, Philippine Veterinary Drug

Association President Eugene Mende has said the spread of the fatal hog disease, if left, unchecked, could wipe out more than half of the country’s pig herd or almost 8 million heads. Mende also said this will cause farm-gate prices to go up by 20 percent to more than 30 percent. The farm-gate prices of hogs may rise to P115 to 120 per kilogram. During the recent 87th PVMA Scientific Conference and Convention in Davao City, Dar urged the country’s veterinarians to help the national government and LGUs in the strong and sustained implementation of biosecurity and quarantine measures to control ASF, and cushion its impact on the hog sector. “We ask you to remain steadfast in your commitment to share and disseminate information, trends and issues in the field of veterinary medicine, both here and abroad, especially with regards to ASF, and other traditional and emerging animal diseases,” he said. Jovee Marie N. Dela Cruz

ARTY-LIST group Alyansa ng mga Grupong Haligi ng Agham at Teknolohiya para sa Mamamayan (AGHAM) said the country should not invest too much in natural gas as “contrary to popular belief, natural or methane gas is not as clean as it has been made out to be.” AGHAM President Angelo B. Palmones made the statement following reports that Fitch Solutions Macro Research flagged the country’s lack of focus on cleanenergy development in its longterm energy plan, particularly in the development of liquefied natural gas, saying that LNG is “not clean, and not a bridge to cleaner energy.” Palmones said the Philippines should not invest too much in natural gas because, “unknown to many, this is also harmful to the environment and not true clean energy as some corporations would have consumers believe.” He said natural gas, or methane gas, is a fossil fuel, like coal and oil, and may produce the same amount or even higher greenhouse-gas (GHG) emissions than other fossil fuels. “All methane-based gas emits carbon dioxide [CO2] when it is combusted. More important, methane leakage throughout the entire gas supply chain creates additional climate impacts,” he said. AGH A M bel ieved t hat t he Philippines’s power industry has underestimated methane emissions, and it is absolutely critical and vital that they should look

ABS-CBN. . . Also, Ako Bicol Rep. Alfredo Garbin said the momentum has shifted in favor of the House acting with urgency and immediately conducting hearings on the ABS-CBN franchise bills. “We have less than two weeks of session days left before Congress goes on its summer break. March 11 [Wednesday] would be the last session day of the House,” he said. “I concur with Senator Bong Go on the urgency factor. The Senate also needs time to tackle the franchise bills the House will work on. I understand Senator Go’s statements to mean that the senators want to tackle the bills now if the House will allow as a courtesy to the Senate,” Garbin added. Go, noted Garbin, serves as the eyes and ears of Duterte, and sometimes when the President is uncertain, he is known to course it through Go. “Senator Go is correct. The longer we prolong the application, the hotter the issue becomes,” he added. Duterte has been vocal about his opposition to the renewal of ABS-CBN’s franchise due to the company’s alleged violation of the provisions of its legislative franchise as well as the constitutional limits on foreign ownership of mass media. “The request [for a legal opinion] is being evaluated. The legal staff evaluate requests for opinion,” said DOJ

at the full life cycle of natural gas, and not just at the point of combustion. “From drilling, fracking, transportation, storage all the way to the point that the energy reaches the consumers, there is already a lot of methane leakage occurring, both unintentional or fugitive, and intentional, referred to as venting. These leaks are hazardous to the environment,” the group said. The group added there is “strong evidence” that when the full life cycle is taken into account, natural or methane gas can produce the same amount, or more, GHG emissions as other fossil fuels. “The Intergovernmental Panel on Climate Change calculated that methane is 34 times stronger as a heat-trapping gas than CO2,” it added. AGHAM referred to methane as CO2 on steroids, as it spends roughly 12 years trapping atmospheric heat 87 times more effectively than CO2, then it becomes CO2 itself. “We agree with our government and regulator in pursuing cleaner energy sources, but it is crucial to look in the right directions. LNG or methane gas may not be the best option. And limiting methane is not what determines whether gas is positive for the transition to clean energy,” said Palmones. He said it is time for a “deeper analysis” of the data at hand. “Based on the studies we have been going through, when researchers examine the full impact of natural gas many conclude that it is not substantially better for the climate than coal.”

continued from a12 spokesman, Undersecretary Markk Perete. It was Go who disclosed last Wednesday that the NTC sought the help of the DOJ. Last week, the Office of the Solicitor General (OSG) filed a quo warranto petition before the Supreme Court seeking revocation of the franchise of ABS-CBN Corp. and its subsidiary ABS-CBN Convergence. Solicitor General Jose Calida accused the network of committing “highly abusive practices” in violation of the terms set by Congress when it approved ABSCBN’s franchise in 1995. Calida said the television network has been allowing foreign investors to take part in the ownership of a Philippine mass media entity, in gross violation of the foreign interest restriction of mass media provided under Section 11, Article XVI of the Constitution. Calida alleged the network’s management also violated its franchise when it launched and operated a pay-per-view channel in ABS-CBN TV Plus, the KBO Channel, without prior approval or permit from the NTC. With regard to its subsidiary, ABS-CBN Convergence, Inc. (formerly Multi-Media Telepony Inc.), the government accused the latter of resorting to corporate layering scheme in order to transfer its franchise without the necessary congressional approval.

Editor: Angel R. Calso

The World BusinessMirror

Friday, February 21, 2020

South Korea reports 1st virus death as 2.5M people urged to stay home

EOUL, South Korea—Yonhap news agency says South Korea has reported its first death from a new coronavirus. The Korea Centers for Disease Control & Prevention (KCDC) did not immediately provide details. T he repor t came as Sout h Korea is str ug gling to cope w it h t he outbrea k and its economic fa l lout. Earlier on Thursday, South Korea said it has confirmed a total of 82 cases of the virus. The mayor of the South Korean city of Daegu urged its 2.5 million people on Thursday to refrain from going outside as cases of a new virus, linked to a church congregation, spiked

and he pleaded for help from the central government. Mayor Kwon Young-jin made the appeal in a nationally televised news conference after the southeastern city and its nearby towns reported 35 additional cases of infection with the new coronavirus on Thursday. Kwon also asked Daegu citizens to wear masks even indoors if possible. He expressed fears that the rising infections in the

region will soon overwhelm the city’s health infrastructure and called for urgent help from the central government in Seoul. “National quarantine efforts that are currently focused on blocking the inflow of the virus [from China] and stemming its spread are inadequate for preventing the illness from circulating in local communities,” Kwon said. The KCDC said 28 of those 35 new patients went to church services attended by a previously confirmed virus patient or contacted her at other places inside a Daegu church. That patient is a South Korean woman in her early 60s who has no recent record of overseas travel, according to center officials. She tested positive for the virus on Tuesday, becoming the 31st case in South Korea. O n We d n e s d a y m o r n i n g , Daeg u confir med 13 cases a nd 11 of t he m e it he r we nt

to t he s a me c hu rc h w it h t he wom a n pat ie nt or cont ac te d he r at a hos pit a l , accord i n g to t he d i s e a s e cont rol ce nte r. T he Shincheonji Church of Jesus, which c la ims it has about 200,000 fol lowers in the countr y, sa id it has c losed a l l of its 74 churches around t he nation, and told fol lowers to instead watch its on line worship ser v ices on YouTube. It said in a statement that hea lth of f icia ls were d isinfecting its c hu rc h i n Daeg u, wh ic h t he woman patient went to, whi le t rac i ng her cont ac ts. T h at Daeg u church has about 8,000 fol lowers. Accord ing to t he c hurc h statement, church officials had been advising followers since late Januar y to stay at home if they had recently traveled overseas or were experiencing even mild cold-like symptoms. But the 31st patient assumed

she was having a common cold and kept coming to her Daegu church because she didn’t travel overseas, church officials said. “ We think it’s deeply regrett a ble...for c au s i n g conce r n s to t he loca l communit y,” t he statement sa id. T he e x plosion of infections in Daeg u and t he neighbor ing sout heast reg ion, as wel l as some new cases in t he Seou l metropolitan area where t he sources of infections were unclear, have raised concer n that hea lt h aut hor ities are losing trac k of t he v ir us as it spreads more broad ly in t he countr y. Kwon spoke shor t ly before Sout h Korea’s gover nment for t he f irst t ime ac k nowledged that the countr y was beginning to see a “communit y transmission” of t he i l lness, a lbeit at a “ limited range.” “ We a re s e e i n g i n fe c t ion s i n some a re a s l i k e S e ou l a nd

Dae g u w he re it ’s d i f f ic u lt to con f i r m t he c au s e or route s of t he i n fe c t ion s,” K i m Ga ng l ip, S out h K ore a’s v ice he a lt h m i n i ste r, s a id i n a br ie f i n g. “Our judg ment is that [COV I D -19] w h ic h h a s b e e n int roduced f rom abroad is b e g i n n i n g to s pre ad t h rou g h communit y transmissions i n l i m ite d r a n ge s,” he s a id , add i n g t h at t he go ve r n me nt wou ld need to c ha nge its qu a ra nt i ne st r ate g y t h at h a s b e e n fo c u s e d on t r ac i n g cont ac t s. South Korea has reported a total of 82 cases of COVID-19, a disease first detected in Wuhan, China, in December. In a telephone conversation w i t h K w o n l a t e r T h u r s d a y, President Moon Jae-in said the central government will make all available assistance to help Daegu fight against the virus’ f ur t her spread, accord ing to the presidential Blue House. AP

The W

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Friday, February 21, 2020

China’s top diplomat assures Southeast Asia on epidemic

IENTIANE, Laos— China’s top diplomat assured his Southeast Asian counterparts on Wednesday that the situation in a central Chinese province where the outbreak of a new virus began has “been brought under effective control.”

Foreign Minister Wang Yi also expressed confidence that China can “secure an early victory against this outbreak.” Wang made the remarks in a speech to diplomats from the Association of Southeast Asian Nations in the Laotian capital of Vientiane. The group, which has expressed alarm over the outbreak that started in China’s Hubei province, is to hold an emergency meeting on Thursday to discuss the disease. Six countries in the 10-nation Asean bloc have confirmed cases of the virus.

CHINA’S Foreign Minister Wang Yi arrives for welcome dinner in Vientiane, Laos on Wednesday, February 19, 2020. The foreign ministers of the Association of Southeast Asian Nations are meeting in Laos on Thursday to discuss ways to curb the spread of the new virus infections. AP PHOTO/SAKCHAI LALIT

“With the strong efforts of the Chinese nation, the entire situation is turning for the better,” Wang said. “Hubei province and Wuhan city have been at the epicenter of this outbreak, and the situation in these places has been brought under effective control.” Outside Hubei, the number of confirmed cases has dropped for 15 consecutive days, and the number of cured and discharged patients is also rising, Wang said, adding that on Tuesday, the number of cured patients was larger

than the number of new infections for the first time since the outbreak began in December. Asked to comment on Wang’s assurances, Thai Foreign Minister Don Pramudwinai said China managed to stop an outbreak of SARS, a related virus, years ago. “I hope that the Chinese could do the same thing this time,” he told The Associated Press. UN Secretary General Antonio Guterres told the AP on Tuesday that the virus “is not out of control but it is a very dangerous situation.” He added that “the risks are enormous and we need to be prepared worldwide for that.” Wang’s reassurance came after Asean leaders expressed “serious concerns over the outbreak” in a joint statement this week. They said it “poses severe challenges to the well-being of the peoples, and the development of our respective countries and the region, and the world.” More than 75,000 people have been infected globally, with more than 2,000 deaths, mostly in China. China and Southeast Asia could face greater economic losses if travel restrictions and other actions taken to prevent the spread of the virus drag on. The Asean leaders agreed to increase the timely sharing of information within the bloc and with China and the World Health Organization. They underscored “the need to coordinate and standardize measures to ensure proper health inspection at borders and entry points of Asean memberstates.”

Alarm over the contagion has prompted Malaysia to bar the transit of cruise ship passengers after an American woman from the MS Westerdam tested positive for the virus. She was among 145 passengers who flew from Cambodia to Malaysia on Friday. The Westerdam was turned away from four Asian ports before Cambodia allowed it to dock in Sihanoukville. Other contacts between China and Asean have been affected by the outbreak. A meeting of Chinese and Asean diplomats negotiating a regional “code of conduct” to prevent clashes in the disputed South China Sea was postponed in Brunei early this month, according to two Southeast Asian diplomats. China was to host a meeting with four Asean members located along the Mekong River but moved the talks to Laos this week due to the outbreak and sought a separate meeting with all its member-states to discuss the epidemic, the two diplomats said. They spoke on condition of anonymity because they weren’t authorized to provide information to the media. Laos has not reported any infections, along with Indonesia, Brunei Darussalam and Myanmar. The rest of Asean, including Singapore, Thailand, Malaysia, Vietnam, the Philippines and Cambodia, have varying numbers of cases. The first fatality outside mainland China was in the Philippines. AP

2 former cruise ship passengers with coronavirus die in Japan

OKYO—Two elderly passengers taken off the Diamond Princess cruise ship because they were infected with a new virus have died, Japan’s Health Ministry said on Thursday, becoming the first fatalities from the virus-stricken vessel. Japan now has three deaths linked to the COVID-19 illness. Japan’s NHK public television said both were Japanese in their 80s. A Health Ministry official only confirmed that they had been previously hospitalized in serious condition and had existing chronic diseases. The official spoke to The Associated Press anonymously, citing office protocol. The new virus began in China late last year and has sickened tens of thousands of people, mostly in central China’s Hubei province. The 621 cases confirmed among the Diamond Princess’s original 3,711 people on board are the most anywhere outside China. In all, Japan has more than 700 confirmed cases, including the country’s first death unrelated to the ship. The Diamond Princess, docked in Yokohama port near Tokyo, started letting passengers who tested negative for the virus off the ship on Wednesday, when the government-set 14-day quarantine ended. On Thursday, hundreds of other passengers were also expected to leave in a massive disembarkation process expected to last through Friday. Test results are still pending for some people on board. Japan’s government has been questioned over its decision to keep people on the ship, which some experts have called a perfect virus incubator. Some medical experts who observed the quarantine process on board also raised caution over lax protective measures on the ship. Kentaro Iwata, an infectious diseases expert at Kobe University Hospital who got on the ship as part of a medical relief team earlier this week, said in a YouTube video that he was alarmed by the lack of control measures, including distinction between clean and contaminated zones, and the inadequate use of protective gear. He called it “chaotic” and said it made him scared of getting infected himself. Iwata, currently in self-imposed quarantine at a hotel, blamed poor management in a

video conference on Thursday. He said the Japanese Health Ministry-led operation implemented some measures, but “to me it was not good enough, because there were exchanges of dirty and clean.” Iwata also said Japan should follow the example of the US and other countries requiring an additional two-week quarantine for passengers they brought home from the ship. Health Minister Katsunobu Kato initially said those with negative virus tests had fulfilled the Japanese quarantine requirement and were free to walk out and go home on public transportation. Later Wednesday, Kato urged the former passengers to refrain from nonessential outings and try to stay home for about two weeks, virtually acknowledging the need for an additional 14-day quarantine. About 440 passengers had left the ship by Wednesday evening, and Japanese officials said more than 1,000 others will be gone by Friday. The Diamond Princess was quarantined after one passenger who left the ship earlier in Hong Kong was found to have the virus. Crew members, who couldn’t be confined to their rooms because they were working and causing secondary infections, are expected to stay on the ship. In a preliminary report issued on Wednesday, the National Institute of Infectious Diseases said that the substantial transmission of the virus occurred before the February 5 implementation of the quarantine and that a downtrend in the number of confirmed cases based on reported onset dates indicated secondary transmission among passengers was effectively reduced during the process. Japan’s Chief Cabinet Secretary Yoshihide Suga said a more controlled health watch for the crew would start as the passengers get off because they can isolate themselves by spreading out and using vacated passenger rooms. Before the quarantine on the ship had ended, the United States evacuated more than 300 Americans, and put them in quarantine in the US for another 14 days. South Korea, Australia and Hong Kong evacuated their residents for quarantines as well, and Canada and Italy sent flights for their citizens, as well. AP

China’s virus cases, deaths rise, but count method revised again

EIJING—New virus cases in China have again declined, up just 394, after authorities on Thursday again changed how they count new daily infections. They are now discounting cases that had come back negative after laboratory tests. Another 114 people were reported to have died from the new illness, COVID-19, as health inspectors went door-to-door to find every infected person in the worst hit city of Wuhan. Japan’s health ministry said two former passengers of a virus-stricken cruise ship have died, raising the number of deaths in Japan to three. The Diamond Princess has the most cases outside China with 621 passengers and crew testing positive. Mainland China has reported 2,118 deaths and 74,576 total cases. While the overall spread of the virus has been slowing, the situation remains severe in Hubei province and its capital, Wuhan, where the new coronavirus was first detected in December. More than 80 percent of the country’s cases are in Hubei and 95 percent of the deaths, according to data from China’s National Health Commission (NHC). The new daily figure is a notable drop from the 1,749 cases recorded the previous

A PHARMACY worker attends to visitors at the store entrance in Beijing, China, on Thursday, February 20, 2020. A viral outbreak that began in China has infected more than 75,000 people globally. The World Health Organization has named the illness COVID-19, referring to its origin late last year and the coronavirus that causes it. AP PHOTO/NG HAN GUAN

day. The NHC said 279 cases were deducted from the daily report after nucleic acid tests showed negative results. Inspectors in protective suits went doorto-door on Wednesday in Wuhan, to try to find every infected person. “This must be taken seriously,” said Wang Zhonglin, the city’s newly minted Communist Party secretary.

Cities in Hubei with a combined population of more than 60 million have been under lockdown since the Lunar New Year holiday. Authorities halted nearly all transportation and movement except for quarantine efforts, medical care, and delivery of food and basic necessities. Wartime measures were implemented in some places, with residents prevented from leaving their apartments.

The stringent measures have followed public fury over Hubei authorities’ handling of the outbreak when it began in December. The risk of human-to-human transmission was downplayed, and doctors who tried to warn the public were reprimanded by police. Wuhan residents reported overcrowding in hospitals and futile attempts to seek treatment. Many countries have also set up border screenings and airlines have canceled flights to and from China to prevent further spread of the disease, which has been detected in around two dozen countries, and caused more than 1,000 confirmed cases outside mainland China. Eight deaths have been confirmed outside the mainland—three in Japan, two in Hong Kong and one each in Taiwan, the Philippines and France. Chinese scientists reported some troubling findings about how the virus spreads. Swabs were taken on 14 people who returned to Guangdong province in January after visiting Wuhan and developing the disease. High amounts of the virus were detected soon after symptoms started, more in the nose than in the throat, and the virus was also found in one of their close contacts who never showed any symptoms. AP

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Editor: Angel R. Calso

Asian currencies slump on virus contagion fears

OUTH Korea’s won slumped more than 1 percent and the Singapore dollar slid to the lowest in almost three years, as traders dumped riskier assets amid growing concern about the spread of the coronavirus. No Asian currency was spared in the rout, which was triggered by a spike in confirmed virus cases in South Korea and two fatalities in Japan. The yuan retreated and the Australian dollar, which is seen as a proxy to the Chinese currency, slid to an 11-year low. “The sudden sharp spike to 82 cases in Korea—contrary to slowing new cases in other parts of the world, including China—is a wake-up call to market complacency,” said Christopher Wong, senior FX strategist at Malayan

Banking Bhd. The won, along with Asian peers, such as the Singapore dollar, may be some of “biggest casualties” as the economic fallout continues to worsen. The Thai baht tumbled to an eight-month low, while the Indonesian rupiah and Malaysia’s ringgit depreciated at least 0.5 percent. The offshore yuan extended a decline past 7 per dollar to trade at its weakest since December. South Korea reported that the number of its confirmed virus cases more than doubled in a

day, raising concern about the spread of the disease outside China. Japan said two people who were on a cruise ship off Yokohama, a man and a woman in their 80s, had died after being infected. Market participants warned that regional currencies could be vulnerable to further losses, with policy-makers having little room to act. “The reality of an economic slowdown has hit home,” said Alan Cayetano, foreign exchange trading head at Bank of the Philippine Islands. “A further deterioration in emerging Asia currencies should be expected as central banks are boxed into a corner with lower rates.” Even stimulus from China— which had previously helped to stabilize sentiment—wasn’t enough to allay concerns. Analysts questioned the effectiveness of a move by Chinese banks to cut benchmark borrowing

costs for new loans.

Infection threat

THE Singapore dollar fell as low as S$1.4083, the weakest since May 2017, before paring losses to trade 0.3 percent down. The won sank more than 1 percent to 1,201.95 per dollar, a level where policy makers may have previously intervened. The baht, the most sensitive in Asia to tourism, dropped 0.7 percent to 31.406. A gauge of three-month implied volatility for the Bloomberg-JPMorgan Asian Currency Index rose 12 basis points to 4.36 percent. There could be “further downside pressure on Asian currencies in the near-term as investors assess the negative economic impact from the coronavirus outbreak,” said Divya Devesh, head of Asean and South Asia FX research at Standard Chartered Bank in Singapore. Bloomberg News

Oil shrugs off virus to eye $60 on stimulus and supply threats

IL extended gains to an eighth day on optimism that China will be able to soften the demand hit from the coronavirus, even as Saudi Arabia signaled heightened concerns about the outbreak. China’s banks cut benchmark borrowing costs for new corporate and household loans after Beijing slashed a range of policy rates this month in response to the epidemic that’s pushed refinery runs down by 25 percent this year. Saudi Energy Minister Prince Abdulaziz bin Salman compared the situation to a blaze that needs the fire brigade ahead of an Opec+ meeting next month. Supply concerns from Russia to Libya have also given oil a boost, spurring optimism that a decline in global crude flows may go some way in offsetting the demand destruction from the virus. While Brent is extending its longest run of gains in more than a year, the specter of oversupply still lingers, with indications US stockpiles continue to swell. “We have taken a massive hit to demand and it’s going to take time to arrest it and reverse back,” said John Driscoll, chief strategist at JTD Energy Services Pte. China’s stimulus measures are prudent, “but whether it warrants a massive bounce back in prices, I am not sure,” he added.

Brent for April settlement added 14 cents to $59.26 a barrel on the ICE Futures Europe exchange as of 7:44 a.m. in London after climbing as much as 1 percent earlier. The contract has gained about 11 percent since February 10. The global benchmark traded at a premium of $5.48 to West Texas Intermediate for the same month. WTI for March delivery rose 38 cents, or 0.7 percent, to $53.67 a barrel on the New York Mercantile Exchange after advancing 2.4 percent to settle at $53.29 on Wednesday. The contract expires on Thursday. April futures were up 0.6 percent. The reduction in loan rates, China’s de facto benchmark funding cost, is part of a series of measures unleashed by the nation to offset the impact of the outbreak. The country plans to boost foreign trade and take over an indebted conglomerate to contain the deepening damage from prolonged shutdowns. Saudi Arabia’s energy minister compared the virus’s impact on oil to a burning house, according to people who heard the comments to an audience in Riyadh on Wednesday. You can either treat it with a garden hose and risk losing the building, or call the fire brigade, he said. Bloomberg News

Friday, February 21, 2020

The World BusinessMirror

UN: Thousands fleeing Syrian T offensive, kids dying in cold

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White House admits that Trump’s trade stance did depress economy

NITED NATIONS—Hundreds of thousands of people fleeing a Russian-backed Syrian offensive are being squeezed into ever smaller areas near Turkey’s border “under horrendous conditions” in freezing temperatures that are killing babies and young children, the UN humanitarian chief said on Wednesday. Mark Lowcock told the UN Security Council that “the unfolding humanitarian catastrophe” in northwest Idlib province, which is the last major rebel stronghold, has “overwhelmed” efforts to provide aid. He said nearly 900,000 people have been displaced since December 1, when the government of fensive bega n, more than 500,000 of them children. “Many are on foot or on the backs of trucks in below-freezing temperatures, in the rain and snow,” Lowcock said. “They are moving into increasingly crowded areas they think will be safer. But in Idlib, nowhere is safe.” L owcoc k , t he u nderse c re t a r y- genera l for hu m a n it a r ian affairs, said almost 50,000 people have taken shelter under trees and in open spaces. “I am getting daily reports of babies and other young children dying in the cold,” he added. UN Special Envoy Geir Pedersen echoed Secretary-General Antonio Guterres’s expression of alarm on Tuesday at the rapid deterioration of the humanitarian situation “and the tragic suffering of civilians.” “Host i l it ies a re now ap proaching densely popu lated areas, such as Id lib cit y and Bab al-Hawa border crossing,

which has among the highest concentration of displaced civilians in northwest Syria and also ser ves as a humanitarian lifeline,” he said. Pedersen warned: “ The potential for further mass displ acement, a nd even more catastrophic human suffering is apparent, as an increasing number of people are hemmed into an ever-shrinking space.” He said Russia and Turkey, as sponsors of a cease-fire in Idlib, “can and must play a key role in finding a way to de-escalate the situation now,” though meetings between delegations of the two countries in Ankara, Munich and Moscow in recent days and contacts between the two presidents have not produced results. “To the contrary, public statements from different quarters, Syrian and international, suggest an imminent danger of further escalation,” Pedersen said in a video briefing from Geneva. The United States, the United Kingdom, Germany, and others stressed that three-way talks with Syria supporters Russia and Iran, and opposition backer Turkey, which led to a de-escalation zone in Idlib, aren’t working. German Ambassador Christoph Heusgen said that since the socalled Astana formula isn’t work-

Civilians flee from Idlib toward the north to find safety inside Syria near the border with Turkey on Saturday, February 15, 2020. Syrian troops are waging an offensive in the last rebel stronghold. AP Photo

ing, it’s now time for the UN to step in and “it’s time also for the secretary-general also to step up to the plate.” “ We have a n immense re sponsibi l it y t hat we face here a s t he U N , a s t he S e c u r it y Cou nc i l to stop what is hap p e n i ng ,” he s a id . “ We mu st spa re no ef for t.” US Ambassador Kelly Craft told the council that “the clearest path we see to an immediate end to violence in northwest Syria is for the UN to take full charge of a new cease-fire initiative.” “This should be the secretarygeneral and UN special envoy Pedersen’s most urgent priority,” she said. Heusgen also urged Russia to stop supporting Syria. “If you tell the Syrians that there is no longer military support to the Syrian regime, they will have to stop the onslaught on their own population,” he said. Russian Ambassador Vassily Nebenzia responded: “We will not stop supporting the legitimate government of Syria which is conducting a legitimate fight against international terrorism.” He defended the Astana process as playing “the key role,” saying that “there’s no other mechanism for a political dialogue.”

German shootings leave 11 dead in suspected right-wing attack

leven people were killed in shooting incidents on Wednesday night in the German town of Hanau near Frankfurt in what Bild newspaper said may have been a right-wing extremist attack. Nine died at two separate locations and two other people, including the suspected perpetrator, were found dead at another address, police said in a statement. An investigation into the identity of the suspected killer and the victims is continuing, they added. The suspect, who Bild named as Tobias R., left behind a video and a letter, in which he refers to the “extermination of certain peoples” who Germany is unable to deport, the paper said. Some of the victims were of Kurdish origin, Bild added, without naming the source of its information. One incident took place at Heumarkt in the town center, while another happened around 2 kilometers (1.2 miles) away in the Kesselstadt neighborhood. Local media said the locations were shisha bars. The corpse of the suspected shooter, who was thought to be acting alone, was later found in his apartment, also in Kesselstadt, along with that of another person, police said. “Our thoughts are with the

Nebenzia supported Pedersen’s efforts to get agreement from Syria’s government and opposition on an agenda so a constitutional committee can start discussing a new charter for the country, which is seen by many as a first step toward elections and formation of a new government. “W hat needs to stop is protection of fighters, insurgents,” he said. Britain’s ambassador, K aren Pierce, said Russia and Syria need to stop “ indiscriminate and inhumane attacks” in the northwest that are killing and injuring innocent civilians. During closed consultations after the open meeting, French Ambassador Nicolas de Riviere said he proposed that the Security Council issue a statement on the escalating situation but Russia blocked it. According to council diplomats, the proposed statement called for a cessation of hostilities in northwestern Syria, but Russia insisted on an additional line that would have allowed the fight against “terrorists” to continue. That was unacceptable to the vast majority of council members, the diplomats said, speaking on condition of anonymity because the consultations were private. AP

people of Hanau this morning, in whose midst a dreadful crime w a s com m it ted ,” C h a nce l lor Angela Merkel ’s chief spokesman, Steffen Seibert, said in a tweet. “Our deepest sympathies are with the affected families, who are mourning their dead. We hope that the injured quickly recover their health.” Germany has relatively strict gun controls, but has suffered shooting attacks by lone gunmen before. In March 2009, a 17-year-old school pupil in the southern town of Winnenden shot dead 15 people before killing himself during a gunfight with police. In 2016, a teenage gunman went on the rampage in Munich, shooting dead nine people at a

shopping mall before turning the gun on himself after a siege lasting several hours. In October last year, a heavily armed man attempted to storm a synagogue in eastern Germany on the Yom Kippur holiday and killed two people nearby in a suspected anti-Semitic attack that authorities blamed on the far right. Hanau is about 20 km east of Frankfurt, Germany’s financial center. Local lawmaker Katja Leikert, a member of Merkel’s bloc in the Bundestag, said in a tweet that the shootings are a “horrific scenario for us all.” “On t his ter r ible night in Hanau, I send those close to the victims much strength and my heartfelt condolences,” Leikert added. Bloomberg News

aided in the long run by a “more balanced, reciprocal” trading system, according to the report. The US and China in January signed a partial trade deal that left some of the thorniest issues between the two economic power houses unsettled. The Trump administration is also in the midst of wide-ranging trade talks with the European Union.

Growth credit

Not surprisingly, Philipson effectively aligned himself with Trump in the president’s twitter spat this week with his predecessor, Barack Obama, over who deserves credit for the record long US expansion. After Obama proclaimed that his $800 billion plus stimulus package 11 years ago had paved the way for the upswing, Trump fired back, calling his predecessor’s comments a “con job.” “Three years into the Trump administration, the US economy continues to outperform pre-2016 election expectations,” Philipson told reporters. “The economy is lowering inequality both in terms of income and wealth. That reverses the previous part of the expansion.” In a novel analysis, the White House report argues that Trump’s deregulatory efforts will lift household incomes significantly by reducing how much Americans have to spend on such things as health care and access to the Internet. Philipson told reporters that he didn’t have a lot of concerns about the durability of the 10 to 1/2-yearold expansion. “We have laid the groundwork for minimizing the probability” of a recession, he said. He also played down concerns about the potential impact of the coronavirus on the US economy. “I don’t think the coronavirus is as big a threat as people make it out to be,” he said. In a Fox Business television interview last week, White House economic adviser Larry Kudlow said the epidemic could lower US GDP by 0.2 percent, or 0.3 percent in the first quarter, though he added there was a “lot of uncertainty” surrounding that estimate. Bloomberg News

Fed seems inclined to keep rates low as coronavirus poses risks

Forensics investigate at the scene after a shooting in central Hanau, Germany, on Thursday. Eleven people were killed in shootings in the German town of Hanau, authorities said. AP/Michael Probst

he White House acknowledged what many economists considered obvious through much of last year: President Donald J. Trump’s trade stance depressed economic growth and business investment. “Uncer taint y generated by trade negotiations dampened investment,” Trump chief economist Tomas Philipson told reporters in a briefing on the annual Economic Report of the President released on Thursday. The admission contrasted with Trump’s repeated assertions that his tariff tactics hadn’t hurt the economy while swelling the government’s tax coffers. Even so, the deleterious effect of trade uncertainty got barely a mention in a 435-page economic report that frequently extolled the president’s programs and argued that they’ve led to a “great expansion” that is benefiting a broader swathe of Americans. Philipson, who is acting chairman of the Council of Economic Advisers, declined to say how much of an effect trade uncertainty has had. He did though point to a Federal Reserve study that suggested it could reduce gross domestic product by about 1 percent, at the same time adding he didn’t necessarily agree with that estimate. The economy grew 2.3 percent last year after expanding 2.9 percent in 2018. “Uncertainty about trade policy is one often-cited culprit in the manufacturing slowdown,” Philipson and fellow CEA Board Member Tyler Goodspeed wrote in the economic report. “However, other reasons for the global manufacturing slowdown also preceded, or were contemporaneous with trade,” including a deleveraging-led deceleration in China’s economy. “These reasons make it difficult to isolate the effects of trade policy uncertainty, and possibly result in an upward bias of its effects on the global economy,” they added in the report. Philipson told reporters the US economy should benefit as uncertainty over Trump’s trade policies fades. Global growth will also be

ASHINGTON—Federal Reserve officials were mostly optimistic about the US and global economies last month, though they noted the risk posed by China’s viral outbreak and said they were ready to keep their benchmark interest rate at its current low level in the coming months. Fed policy-makers observed at their January 28 and 29 meeting that risks to the US economy had faded since their previous meeting in December, according to minutes released on Wednesday. The Trump administration had reached a preliminary trade agreement with China, and Congress approved an updated trade pact with Canada and Mexico. Still, a “number of downside risks remained prominent,” officials said, including the coronavirus, which “had emerged as a new risk to the global growth outlook.” Many Fed watchers have interpreted that caution as a signal that the Fed’s next move, whenever it occurs, is more likely to be a cut, rather than hike. Traders are now betting that the odds of a cut by year’s end are at 85 percent. The minutes of the Fed’s meeting showed that officials were ready to keep short-term rates at a range of 1.5 percent to 1.75 percent for the

foreseeable future. Rates at that level would help the US economy withstand threats from slower growth overseas, policy-makers said, and help lift annual inflation back to the Fed’s 2 percent objective. Persistently, low inflation as measured by the Fed has been a hallmark of the economic expansion, now in its 11th year. The officials “viewed the current stance of policy as likely to remain appropriate for a time, provided that incoming information about the economy remained broadly consistent” with their positive outlook, the minutes showed. Stock prices, which had risen before the Fed minutes were released at 2 p.m. Eastern time, rose higher afterward. The Dow Jones Industrial Average was up about 150 points in mid-afternoon trading. Chairman Jerome Powell said in testimony before Congress last week that US growth looked durable and that the Fed would “carefully” monitor economic damage caused by the coronavirus. Economists at Goldman Sachs estimate that the virus and Boeing’s decision to suspend production of its troubled 737 Max aircraft will cut growth by about three-quarters of a percentage point in the first three months of this year, as many companies’ supply chains

and consumer markets are at least partly cut off. Much of that growth will likely be made up in following quarters, Goldman Sachs estimates. At last month’s policy meeting, several officials sought to highlight the Fed’s determination to raise inflation back to its 2-percent target level. These officials “stressed that the [Fed] should be more explicit about the need to achieve its inflation goal on a sustained basis.” Several officials also supported the idea of allowing inflation to temporarily overshoot the 2-percent target to offset the nearly seven-year period in which inflation has been below that level. Doing so “might underscore the symmetry of that objective,” the minutes said, meaning that the Fed will accept inflation modestly above 2 percent just as much as it has accepted price changes below the target. As part of an ongoing review of its strategy framework and tools, the Fed is considering making such an approach even more explicit. Powell and other Fed officials worry that allowing inflation to stay too low for too long also drags down interest rates, giving the Fed less room to cut rates during a recession. AP

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Friday, February 21, 2020 A9

CJ orders tight watch on TROs, SQAOs, WPIs

By Joel R. San Juan

@jrsanjuan1573

HIEF Justice Diosdado Peralta has ordered the strict monitoring of the temporary restraining orders (TROs), status quo ante orders (SQAOs), and writs of preliminary injunction (WPIs) and orders of voluntary inhibition issued by judges and justices. T he move is covered by t wo administ rat ive orders issued recent ly by Pera lta. In Administrative Order 63-2020, the chief magistrate required all justices of the Court of Appeals (CA), Sandiganbayan and Court of Tax Appeals (CTA), as well as trial court judges, to submit to the Office of the Chief Justice beginning March 1 copies of the TROs, SQAOs and WPIs they issued within five days from such issuance. A TRO is “an urgent order by the court temporarily forbidding the defendant or respondent to do a threatened act until a hearing on the matter at issue can be heard to prevent grave injustice and irreparable injury to the applicant or petitioner.” SQAO directs the parties to a case to maintain or keep “the last actual peacef u l and uncontested situation

that precedes a controversy.” WPI, on the other hand, is a “provisional order granted at any stage of an action or proceeding prior to the judgment or final order, requiring a party or a court, agency or person to refrain from a particular act or acts, or require the performance of a particular act or acts.” The SC said in a statement, “The order from the chief justice was to be strictly complied with by the justices and judges.” It added that the issuance of the said administrative orders is in line with the core areas in Peralta’s 10-point program which are “integrity, efficiency, service and security.” The submission of reports on TROs and WPIs was previously discontinued because of its incorporation in the monthly report of cases pursuant to OCA Circular 246-2018.

BI whistle-blower testifies as officials in ‘pastillas’ sacked By Butch Fernandez @butchfBM & Samuel P. Medenilla @sam_medenilla

ENATOR S bac ked P resident Duterte’s prompt action sacking erring Bureau of Immigration officials linked to a so-called pastillas racket involving BI officers taking bribes in exchange for the unhampered entry into the country of illegal Chinese aliens, including casino workers. “We are in receipt of news that the President just fired officials and employees of the Bureau of Immigration involved in the pastillas scheme,” said Sen. Risa Hontiveros in convening Thursday’s hearing of the Senate Committee on Women, Children, Family Relations and Gender Equality. Early into the hearing, senators heard the testimony of the whistle-blower who had documented some BI officers allegedly involved in the scheme, even as he admitted that in the past he also received payoffs. Allison “Alex” Chiong said he was conscience-stricken at the extent of the anomalies, so he decided to testify. The Senate President approved the grant of immunity for his remarks at the hearing. Basically, the pastillas racket involved BI men escorting illegal aliens and receiving cash bribes, wrapped in bond paper in the style of pastillas, a popular milk candy delicacy.

Palace order

AS the Senate hearing was under way, Malacañang announced that President Duterte has relieved all BI personnel who are being linked to the alleged bribery by foreign nationals (FNs) employed by Philippine Offshore Gaming Operators (POGOs). During a press briefing on Thursday, Presidential spokesman Salvador S. Panelo said Duterte made the decision after getting information that the allegation against the said BI personnel has “probable cause.” Panelo said, “Someone complained to him...apparently the proof constitutes probable cause, that’s why they were sacked.” The President, he added, “considers this anomaly, which some define as the pastillas scheme, as a grave form of corruption which cannot be countenanced by the government.” Panelo said the government will file charges against the involved personnel. The fate of Bureau of Immigration Commissioner Jaime H. Morente, Panelo said, will be decided at the next Cabinet meeting, expected to be held next month. Panelo said Morente is presumed to

still enjoy the trust of Duterte, until the he says otherwise. Some lawmakers have been blaming the lax issuance of special work permits for the surge in FNs, particularly Chinese, in the country. That anomaly—of having immigration personnel process more foreign workers than the Department of Labor and Employment does—was partly remedied when the Department of Finance initiated an interagency approach to the POGO sector, and put the DOLE, which issues alien employment permits at the head of efforts to ensure only legal workers are in the country, and that they and their employers all pay the right taxes.

Sex trafficking

THE Hontiveros committee was earlier tasked to mount an inquiry in aid of crafting remedial legislation following the recent rescues of sexual trafficking victims and investigation into the prostitution rings in the country, involving women of different nationalities who were lured into nonexistent jobs in the Philippines. The committee was also mandated to examine the circumstances that push women to work under exploitative conditions with the end in view of crafting legislation and policies that will address the root cause that drove these women into employment that “does not respect and/fully utilize their potential.” She acknowledged the recent cleanup of the BI, noting that “sobrang garapalan na ang pastillas scheme [the pastillas scheme is too brazen]. I want to emphasize: This is bigger than the frontline employees.” At the outset, the senator stressed the need to “protect the innocent, ensure that our borders are protected, go after the big fish, create a systemic change [inside the] Bureau of Immigration.” Hontiveros added, “Dapat Pilipino ang may kontrol ng ating border at mga ports, hindi mga Chinese [It’s Filipinos who should control our borders and ports, not Chinese],” referring to information that certain BI employees were in the pocket of Chinese groups that bring in illegal workers. There’s a real need to “clean up the BI, and this should start with the big fish who are involved here. We need to ensure the corrupt and greedy offiicials are not simply recycled,” the senator said in a mix of English and Filipino. She signaled that in the next Senate hearing, subpoenas will be served to compel the presence of top officials alleged to have profited handsomely from the syndicate operations, including a former deputy commissioner.

The monthly reports, however, do not reflect the qualitative details of the TROs and WPIs. On the other hand, in AO 62-2020, Peralta required the justices of the third-level courts and the judges of the second- and first-level courts to specifically address “persistent reports that some justices and judges have been voluntarily inhibiting from cases assigned

or raff led to them on grounds that are neither just nor valid.” T he chief justice reminded those concerned of their duties “to perform their Judicial duties without favor, bias or prejudice” as mandated by Section 1, Canon 3 of the New Code of Judicial Conduct for the Philippine Judiciary; and to “carry out judicial duties with appropriate consideration for all persons, such

as the parties, witnesses, lawyers, court staff and judicial colleagues, without differentiation on any irrelevant ground, immaterial to the proper performance of such duties under Section 3, Canon 5 of the same Code.” Even President Duterte previously criticized judges and justices for allegedly committing abuses in in the issuance of TROs, SQAOs, and WPIs.

A10 Friday, February 21, 2020 • Editor: Angel R. Calso

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editorial

Stay vigilant

E continue to discuss the COVID-19, as most of what the public hears from the local press and media are follow up news on new confirmed cases and deaths, and not so much about the implications of the outbreak. The Department of Tourism on Wednesday announced that the country will begin a nationwide monthlong shopping sale—“The 2020 Philippine Shopping Festival”—on March 1. Of course, this is a gimmick but it may not be a bad idea. At least it gives the public the thought that maybe things are not as serious as it could be regarding the potential of COVID-19 spreading in the Philippines. There are detractors that view this as merely propaganda, and a risky one at that. But the public is smart enough to make its own decision. Both government and private sources, in our opinion, have done much to inform people about the risks and precautions. Last week we were provided with hard data that sales in the malls had fallen about 7 percent, not across the board but for a few certain companies. Now we are being told that sales are back to normal, and that is a good sign. The Department of Health has reported that there are still only three confirmed cases of the virus in the country. By comparison, Singapore has noted three new cases, bringing its total to 50. Malaysia and Vietnam have 18 and 16 cases, respectively. Thailand is still the same at 33 but with a total of six cases from individuals who did not travel to China and were infected locally. That is worrisome. Currently, there are approximately less than 200 Filipinos that are PUI or persons under investigation. They may or may not be in a hospital under quarantine but are just the same being closely monitored. It might be good to look at a companion. The American State of Washington has a population of less than 10 million with its largest city, Seattle, holding about 800,000. The Washington State Department of Health has announced that 746 people are currently being “monitored” for coronavirus symptoms. “The number of people under public health supervision includes those at risk of having been exposed to novel coronavirus. This number includes close contacts of laboratory confirmed cases, as well as people who have returned from China in the past 14 days.” That is a disturbing number since the total cases in the US now stands at 14. Further, there has been only one confirmed case in Washington. Seattle is a major airline hub to Asia. American Airlines began its flight ban to China on February 9. By comparison, “The travel ban directive of the President on February 2, 2020, is a ban on travel to the Philippines of persons directly coming from China, Hong Kong and Macau, as well as those not directly arriving from China, Hong Kong and Macau but have been to these territories within 14 days immediately preceding their arrival in the Philippines.” One more interesting piece of data has been revealed. China is reporting that 15 percent of all victims are over the age of 80. Globally, doctors are reporting that one of the biggest mysteries is why so few children have gotten sick. Nonetheless, we must all stay vigilant. That is the only way the Philippines is going to be safe from COVID-19. Since 2005

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Sonny M. Angara

BETTER DAYS

HE youth are the torchbearers of the future. They not only hold our dreams in their hands, they also hold the means by which the future of the country will be built. This is why I am honored to be the chairman of the Senate Committee on Youth. To find out how we are preparing the next generation, I filed Senate Resolution 320, wherein all the laws and programs for the youth would be evaluated. We wanted to find out which are useful and working, which need to be amended, and which have to be repealed or stopped. That way, funding can be concentrated on those that work well. We need to do this, as our population of nearly 110 million has more than 30 million Filipinos, aged between 15 and 30 years old, based on Philippine Statistics Authority data. This week, the Committee on Youth conducted the initial evaluation through a public hearing, where we tackled many issues, some of which we knew already beforehand. The first issue is one of duplication and coordination. Several government agencies have similar skillsbuilding programs for the youth. Where the Department of Labor

and Employment runs its JobStart program, and several government internships, the Technical Education and Skills Development Authority manages apprenticeships and the dual training system. Meanwhile, local government units take the lead in the Special Program of the Employment of Students. Also, the Asian Development Bank, in a problem analysis for its Facilitating Youth School-to-Work Transition Program, noted that linkages between government agencies, schools and private-sector players were weak. It also became clear during our hearing that there was a need to inform and involve the youth in programs that can help them fulfill their potential. For instance, in the past few years, the Department of Trade and Industry (DTI) has been setting up in our state universities and colleges Fabrication Labs or

Fab Labs that are equipped with 3D printers, and other technologies for students to tinker with and exercise their creativity. When asked, none of the students that were present at the hearing knew about these Fab Labs. Labor issues are also affecting the youth, particularly in our apprenticeship system and the type of jobs that are available. There do exist government programs to improve the youth’s job skills, particularly those who are employed or seeking meaningful employment, but as the DTI noted, the economy affects the quality of employment. Programs like the Department of Agriculture’s agricultural training for the children in families whose main sources of income will be displaced, like jeepney drivers, are a good start, but it has also been pointed out that there is a need to adapt programs to the actual skills needed by today’s youth. The concern, really, is that the combined issues affecting educational programs and labor are creating a circle of inefficiency, with the end product sadly being youth unemployment, or worse, disenfranchisement. Existing information about the various youth education programs— from how many beneficiaries in each province, to keeping track of what happens to people who have received assistance from these programs— need to be compiled and analyzed. We can drill down to how effective a specific youth program is not just

on a provincial level, but even down to the local community. We also have to make sure that departmental programs are properly promoted, their existence made known to other government units who can use these youth programs to further their departmental missions. Finally, we also have to review various laws that may need amendments, such as Republic Act 7610, as amended by RA 7658, the Special Protection of Children Against Abuse, Exploitation and Discrimination Act, whose IRR does not provide as clear a definition of child labor as may be needed in these times. We do have a road map for the future—The National Economic and Development Authority has AmBisyon Natin 2040. It is a long-term vision and a set of aspirations of the Filipino people for themselves, and the country for the next 25 years. Our youth programs, I think, are very important to our plans for where the Philippines should be in 2040. Our youth will be the builders and incoming leaders, when that time comes. We just have to make sure that we will give them as many chances as possible with government programs that will help them and their goals. Sen. Sonny Angara has been in public service for

15 years—nine years as representative of the Lone District of Aurora, and six as senator. He has authored and sponsored more than 200 laws. He recently won another term in the Senate. E-mail: sensonnyangara@yahoo.com| Facebook, Twitter and Instagram: @sonnyangara.

A threat to ‘Rule of Law’ and press freedom

Jennifer A. Ng Vittorio V. Vitug

Senior Editors

Creative Director Chief Photographer

Inquiries and the future for the Philippine youth

Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

ROTHERS and sisters, a free and democratic society promotes press freedom, particularly regarding open public affairs coverage, including the actions and movements of government officials. This is untrammeled press freedom, or free and independent media. We are discussing press freedom because of the quo warranto petition of the solicitor general, the highest ranking lawyer in government, filed at the Supreme Court against ABS-CBN and its subsidiaries. This case is rooted in the so-called abuse of ABS-CBN, which allegedly took advantage of its followers or subscribers. Even if there is debate on the possible effects of the case on the continued operations of the two ABS-CBN companies, the actions that the solicitor general had taken is deemed as harassment of

one institution embodying press freedom. Under our laws, providing the franchise for media companies like ABS-CBN and its renewal is the duty of Congress. Therefore, the question now is, is the court case against ABS-CBN considered encroachment of congressional power? The distribution of power among three branches of government—Executive, Legislative and Judiciary —is intentionally created in democratic systems of government to have “checks and balances” to avoid the abuse of power by any of the three branches. Each of these government

branches embodies the interests of the people. They are there to check if one of these branches go overboard in using its power. According to the teachings of the Church, this kind of governance is good for the governed when there is distribution of power of the state. It is mentioned in the Pacem in Terris that “Rule of Law” gives protection to the people not only in achieving their rights but also their fulfillment of their roles and responsibilities. It is also said in the teaching that order in society is important in protecting the rights of every individual and their organizations, as well as their fulfillment of duties. This means that if the media’s duty to spread news related to public issues in order to enlighten the people gets curtailed, the media must be protected. The duty of disseminating truth is a responsibility that must not be betrayed. In the book of Esther 4:14, when queen Esther went to plead to the king to save the Jews, she was advised by her cousin Mordocheo: “For if you remain silent at this time, relief and deliverance for the Jews will arise from another place,

but you and your father’s family will perish. And who knows but that you have come to your royal position for such a time as this?” Brothers and sisters, we await what action the Supreme Court will take on SolGen’s petition, and what will the Congress do being the rightful branch of government that must respond and decide on the franchise application of ABS-CBN. Will they show independence from the Executive branch, and decide to take action according to the law? Whether there are technicalities and many others related to this issue, let us observe these two important principles. First is the rule of law and the assertion against any attempt to use the law in order to uplift the interests of those who are in power. Second is press freedom. These are equally important in democracy, and it is everyone’s duty to help preserve these principles. Make it a habit to listen to Radio Veritas 846 Ang Radyo ng Simbahan in the AM band, or through live streaming at www.veritas846.ph, and follow its Twitter and Instagram accounts @veritasph, and YouTube at veritas846.ph. For your comments, e-mail veritas846pr@gmail.com.

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US condemns China’s expulsion of ‘Wall Street Journal’ reporters

S Secretary of State Mike Pompeo criticized China’s move to revoke the press credentials of three Wall Street Journal reporters over a controversial headline, a decision that comes as Beijing continues to lash out at countries that fault its handling of the deadly coronavirus outbreak. “The United States condemns China’s expulsion of three Wall Street Journal foreign correspondents,” Pompeo said in a statement on Wednesday. “Mature, responsible countries understand that a free press reports facts and expresses opinions,” he said. “The correct response is to present counter arguments, not restrict speech. The United States hopes that the Chinese people will enjoy the same access to accurate information and freedom of speech that Americans enjoy.” China made the rare move of punishing multiple journalists at a single news organization after it said the Journal refused to apologize for a “racially discriminatory” op-ed, Foreign Ministry spokesman Geng Shuang said on Wednesday. Foreign journalists need press passes issued by the foreign ministry to qualify for visas to report in the country. China’s rebuke to the American newspaper comes after the Trump administration said this week that Chinese state news outlets operating in the US—including the official Xinhua News Agency—should be treated like “foreign missions” as a result of President Xi Jinping’s control over the media. It also came as Beijing continued to condemn criticism over its handling of the outbreak, and called for countries to end flight bans and harsh travel restrictions on Chinese citizens. Late Wednesday, China’s stateowned Global Times tabloid placed blame on the US for a move it said “bodes ill for bilateral ties” and appeared to show that Beijing felt the Trump administration had forced its hand. “There are no connections between the two events, but it is not completely coincidental that they happened at about the same time,” the Global Times said in an opinion piece. “Together they show the ideological conflict between China and the US is intensifying,” it said. “The two countries’ values are drifting apart, and they are acting more resolutely in accordance with their own respective principles. This is not a good sign. It might be another clue of a more turbulent great power relationship in the 21st century.”

‘A new low’

THE Wall Street Journal reported that the three expelled journalists were Deputy Bureau Chief Josh Chin and reporters Chao Deng and Philip Wen. Chin and Deng are both US nationals, while Wen is an Australian citizen. “This marks a new low in relations between China and the foreign press, and says a lot about Beijing’s broader antipathy to the West,” said Richard McGregor, a former Financial Times bureau chief in Beijing who’s now a senior fellow at the Lowy Institute. “Beijing is looking to lash out at its

critics. Once it has gotten over the coronavirus crisis, expect to see more such measures.” While China has declined to approve press credentials for foreign journalists before, it’s rare for authorities to punish three reporters at once from the same news organization. It also sets a worrying precedent for news outlets with staff in China as the article was written by an author based in the US who wrote opinions, which are generally removed from news-gathering operations. The February 3 article described China as the “sick man of Asia,” a phrase often used by 19th-century European powers to describe the weakened state of the Qing Empire, which then governed China. In an article, titled “Banished in Beijing” on Wednesday evening, the Wall Street Journal’s editorial board questioned the official justification for expelling its reporters. “The truth is that Beijing’s rulers are punishing our reporters so they can change the subject from the Chinese public’s anger about the government’s management of the coronavirus scourge,” it wrote. The original op-ed ran as China began battling the deadly coronavirus, which has now claimed the lives of more than 2,000 people and delivered a massive setback to the world’s second-biggest economy. The government has described the virus as a threat to “social stability” in China and tightened restrictions on online expression. “The editors used such a racially discriminatory title, triggering indignation and condemnation among the Chinese people and the international community,” Geng told reporters in an online press conference. “China demands the WSJ recognize the severity of its mistake, make an official apology and hold the persons involved accountable.”

‘Foreign missions’

THE three journalists’ visas were canceled and they have been ordered to leave China in five days, the Foreign Correspondents’ Club of China said in a statement. None were involved in the opinion piece or its headline, it said, adding that the move was “an extreme and obvious attempt by the Chinese authorities to intimidate foreign news organizations.” The FCCC said it’s now aware of nine journalists who were either expelled or did not have their visas renewed since 2013. China expelled a Wall Street Journal reporter last August after the paper published a report detailing allegations that President Xi’s cousin was involved in gambling and potential money laundering in Australia. The US this week designated five Chinese state media companies as “foreign missions,” a decision that reflects the Trump administration’s view that Xi’s Communist Party is imposing increasingly draconian government-control over news services, senior State Department officials said. The designation requires the outlets to adhere to requirements similar to those imposed on embassies and consulates in the US. Bloomberg News

Friday, February 21, 2020 A11

‘Life is more than just making money’ Manny F. Dooc

TELLTALES

FTER the Iowa caucus and the New Hampshire primary, it’s time to revisit Bernie Sanders, the Democratic senator from Vermont, who has represented his state in the US Senate since 2007. When he got elected as a US senator, he served Congress from 1990 to 2007. Before that, he was the mayor of his adopted town, Burlington, Vermont. While a senator, Sanders made the headlines when he did an eighthour filibuster against the extension of George W. Bush tax cuts for the wealthy. Instead of tax cuts, he pleaded with his colleagues to instead come up with legislation that reflects the needs of the middle class and working class families, and most importantly the needs of the children of America. His message resonates with the masses. He is viewed as someone who represents their interests and speaks out about their economic fears, which other candidates are unable to address. He’s the voice of the honest and hardworking Americans. Sanders has embraced the progressive banner consistently and progressively for years, even before Pete Buttigieg has cast his first vote in any election. All his political life, Sanders has lived and breathed progressive politics and his consistent advocacy of the liberal causes has earned him lifetime following of the white working class electorates and the younger population. He’s a political maverick who is undaunted by popular passion and prejudices. He’s fiercely independent who was

first elected in public office without any political party and remained partyless until he joined the democratic caucus when he was already a senator. He was the longest serving independent Congressman in the US congressional history. While his base is the young and the progressive, he’s the candidate most trusted by the voters and has a broad appeal. His mass support has attracted an army of volunteers from across the country and keeps his campaign offices humming with political activities. One woman volunteer from New York said that she traveled five hours by car to New Hampshire to give support to her candidate. “Bernie has to win. Actual life and death is on the line.” This shows how committed and dedicated Sanders’s advocates are to ensure that he wins the primary and captures the nomination of the Democratic Party—a goal that narrowly escaped him in 2016. Polls show that supporters of the Democratic Party prefer a candidate who has the greater chance of electability against Trump, over other political considerations. Right now, Sanders has the momentum and appears to

be the leading candidate based on the earlier primary results despite former VP Joe Biden’s claims that he has the best chance of beating Trump. Biden has to demonstrate electability to be part of the public narrative and enter voters’ consciousness as the contenders coast along the primary contests. If at all, his disadvantage is his age. If elected he would be the oldest President who will serve his country. There is a 40-year gap between him and Buttigieg who appears to be his most serious opponent as of now. It’s interesting how the past and the future wrestle against each other to grab the present. As a progressive and left-leaning political figure, he is strongest among the liberal voters, which has been his political base since he entered politics. He has the largest social-media following and the most enthusiastic supporters. The young idolize him as their political Messiah. Buttigieg even wrote an essay in high school about Sanders two decades, saying the then a 57-year-old congressman from Vermont was his idol. In his essay, Buttigieg lauded politicians in the mold of Sanders who are willing to “eschew political and personal comfort because they believe they can make a difference.” He considered Sanders as an outstanding model of such integrity. That essay won for Buttigieg the JFK Profiles in Courage essay contest and whetted his appetite for politics to disprove the belief that politics is anathema to most young persons today. If Sanders gets elected as US president, what can we expect from his administration? As a progressive and self-proclaimed democratic socialist, he strongly espouses economic equality and opportu-

Brussels can’t bully the city of London By Marcus Ashworth | Bloomberg Opinion

HERE hasn’t been much balance in the overheated debate around the post-Brexit trade settlement between Britain and the European Union. So it was a welcome surprise to see former Morgan Stanley President Colm Kelleher describe Europe’s capital markets as “not fit for purpose” recently. It’s good to see an acknowledgement that maybe the EU doesn’t hold all the cards as the two sides wrangle over how the financial services industry will operate after Britain’s departure. European capital markets are “neither large nor deep enough to support economic growth or to buffer it in hard times,” Kelleher said in a pre-dinner speech reported by the Financial Times. Morgan Stanley’s former second-in-command recognizes that Europe’s fragmentation is a major impediment when it comes to financial services, with the bulk of the industry’s expertise and capital centered in London. As such, a hard break between the UK and the EU will damage the bloc by starving it of liquidity. I’d go further and say maybe Europe needs the City more than the City needs Europe. For sure, both sides would lose if they failed to

reach an amicable agreement, but can Europe really countenance its financing drying up with nothing to replace it in time? The solution for Europe, as Kelleher and many others acknowledge, is a proper capital markets union for EU members with a single overarching regulator and rulebook. But that’s not going to be resolved this year—or probably even this decade. As such, the EU’s chief Brexit negotiator, Michel Barnier, should resist those on his side who are fighting yesterday’s battles. It’s unfortunate that he’s already dismissed British requests for concessions on the idea of regulatory “equivalence” for financial services (where London’s finance firms would have access to the EU so long as the UK’s rules are similar to those of the bloc). The City is worried that Brussels can revoke equivalence whenever it likes, but Barnier’s team is refusing to budge

on offering a longer notice period. Comments from the French foreign minister, Jean-Yves Le Drian, that the two sides will “rip each other apart” raise an alarming prospect, especially if it means we reach the end of 2020 with no agreement. Shutting off UK-based entities from participation in European banking and corporate business—be it lending, advisory work, trade facilitation or deposit-taking—would hurt the City, but it would be an act of European self-harm, barricading off a vast resource of well-capitalized and well-governed market infrastructure. Could Europe’s banks take on everything the City does? Absolutely not by the December 31 deadline for trade talks. Risk appetite is borderline non-existent among the continent’s lenders, and particularly not beyond national boundaries. Yet trillions of euros of debt come due every year. And that’s before you get to the detailed stuff: legal advice for English law (which governs many bonds and loans), derivatives clearing, London’s exchanges, commodities trading, the list goes on. The City’s real edge is in innovation: putting together cross-border and multi-product deals that can’t be

From Japan to Britain, the world loves hosting US troops By Hal Brands Bloomberg Opinion

HE US has a global military footprint that is second to none, and one of the most visible aspects of that footprint is a worldwide network of bases. From Japan to the UK, America’s overseas installations allow it to shape events thousands of miles from US shores. Critics have long argued that basing troops abroad also creates anti-American sentiment, making Washington’s worldwide presence toxic and self-defeating. A recent study turns this critique on its head, showing that foreigners’ contact with American service members leads to more positive views of the US and its military. Overseas bases, it turns out, are not only symbols of American hard power, but tools of American soft power as well.

Overseas bases play a central role in America’s ambitious grand strategy. The US can bring decisive military power to bear in hot spots, such as the South China Sea, Eastern Europe and the Persian Gulf because it has sprawling bases and logistical facilities that are either in or on the way to those regions. Air bases in Qatar and Turkey, for instance, were critical to the Pentagon’s war against the Islamic State in Iraq and Syria. Moreover, bases enable the “forward presence”—the stationing of personnel, combat aircraft, naval vessels and other military assets close to the front lines of geopolitical conflicts—that reassures allies and keeps adversaries in check. The exact number of US overseas bases is disputed. Some observers put the total around 800, although many of these are small, relatively insignificant facilities. But the major bases are a prominent feature of America’s global presence

in countries such as Japan, South Korea, Bahrain, Germany and the UK. For some critics, these bases are a symbol of a quasi-imperial foreign policy that is overly militarized and, to local populations, overbearing. It’s true that the US military presence has often been controversial. Status-of-forces agreements that give US personnel a degree of immunity from local prosecution are rarely popular. Rapes, murders and assaults perpetrated by US service members or contractors have set off antiAmerican protests in South Korea, Japan and other countries. In one notorious incident, three service members kidnapped and raped a 12-year-old Okinawan girl in 1995, creating a crisis in US-Japan relations. The journalist Chalmers Johnson had such events in mind when he argued two decades ago that America’s overseas military presence was a powerful driver of anti-American “blowback” around the

world and called for a more restrained foreign policy. Yet focusing on these episodes tells only part of the story, as revealed by a new study by four scholars in the American Political Science Review. Based on surveys of 14,000 respondents across 14 countries, the study is systematic rather than impressionistic. The core finding will strike many as counterintuitive: Basing has a net positive impact on foreign perceptions of the US. In fact, of the 14 countries included in the survey, in only one—Turkey—was there an overall negative sentiment toward American troops. The reason for this is relatively simple: Familiarity breeds understanding and acceptance, not contempt. Personal contact between foreign nationals and US personnel humanizes America’s overseas presence and erodes negative stereotypes about the American military—

such as the idea, as one interviewee from Peru put it, that US service members are all “muscular men with tattoos waving around the flag and yelling about liberty and democracy.” More tangibly, US bases boost area economies by employing local residents and infusing cash into local businesses. The result is that contact with US personnel tends to foster not just more positive attitudes toward the American military, but toward the American people as a whole. This finding is significant for two reasons pertaining to the broader debate about the future of US foreign policy. First, it cautions us against sweeping critiques of America’s global presence backed only by anecdotal evidence. Yes, there are plenty of instances in which America’s military footprint has become a flashpoint in relations with a host country. But we tend to pay attention to these instances precisely

nity. He announced last year that he would reverse Trump’s tax cuts, which he considered as pro-rich, and proposed to increase income tax of the wealthy Americans from the current 21 percent to 34 percent. After learning that just three Americans—Jeff Bezos, Bill Gates and Warren Buffet—own more wealth than the bottom half population of the US, he condemned oligarchy and proposed “a tax system which is fair, progressive and transparent.” As a candidate, he has rejected large donations from corporations. In fact, he has denounced Buttigieg by saying that he is the candidate of the billionaires for getting their pledges and donations. He vehemently opposed the idea that the rich should own the political process in the US. His fund-raising is focused on small individual donations. Last year, he collected a total of $73 million from more than 1 million individual donors for an average donation of $27. On domestic policy he is a supporter of labor, single-payer health care, free college education, parental leave and a climate-change advocate. On foreign policy, he favors cut in military spending, and he is an advocate of international cooperation and stronger diplomacy. While a student, he was active in the civil-rights movement. That’s Bernie Sanders in a nutshell. When he was asked by latenight talk show host Jimmy Kimmel who he was, Sanders replied: “I am who I am, and what I believe in and what my spirituality is about, that we’re all in this together.... We cannot just worship billionaires and the making of more and more money. Life is more than that.” Indeed, there are greater causes than money.

done in small European nations. Absolutely, the EU should try to get its act together and build a proper financial infrastructure. But its record is poor. The story of the MiFID II regulatory reforms has been an unhappy one. The European Securities and Markets Authority seems to be a regulator that wants to overreach. Its ill-advised decision to deny equivalence to Swiss stock exchanges and a demand for oversight over European equity trading of the largest UK companies post-Brexit are worrying. On London’s side, the EU’s markets are still a significant business. Not having open access to a huge market on its doorstep would imperil its role as the world’s financial center. That’s why the row over equivalence is so troubling. Surely the UK Financial Conduct Authority can be treated as a gold-plated regulator for overseeing Europeanrelated finance. The EU should look through its single market purity for its own— and the greater—good and come up with a workable arrangement with a neighboring regulator it has relied on for decades. This will buy it the time to build its own capital markets. Eventually, the EU may rely less on the City—just not yet.

because they are rare exceptions. Second, the issue of basing bears on a question animating the 2020 presidential campaign: Should the US be less assertive in its dealings with the world? Matt Duss, the top foreign policy adviser to Democratic front-runner Bernie Sanders, has argued that the US military presence in South Korea, Japan and Germany—the core of America’s posture in Europe and the Indo-Pacific—is unsustainable. But that’s just not the case economically, because these (and other) countries make payments to offset the cost of stationing American troops on their soil, and because we know that US forward presence and military alliances translate into greater trade and other economic benefits for Washington. And it’s just not the case politically, either, because the evidence suggests that overseas basing helps America’s standing abroad.

A12 Friday, February 21, 2020

DBM studying ‘realignments’ before releasing ₧84B in GAA

By Samuel P. Medenilla @sam_medenilla & Cai U. Ordinario @caiordinario

ALACAÑANG on Thursday gave assurances the government will still release the P84 billion which is currently being withheld by the Department of Budget and Management (DBM), subject to the necessary “protocol.” In a press briefing, Presidential spokesman Salvador S. Panelo confirmed the statement of Sen. Panfilo Lacson that the portion of the P4.1-trillion 2020 budget is currently on hold. “I ta l ked w it h t he Budget

Secretary [Wendel Avisado]...he told me about it, he said that the P84 billion will not be released immediately but depending on the need for the release, thereof. In other words, there will be a process,” Panelo said.

“I talked with the Budget Secretary [Wendel Avisado]... he told me about it, he said that the P84 billion will not be released immediately but depending on the need for the release, thereof. In other words, there will be a process.” —Panelo

Lacson said the concerned amount was realigned from the 2020 budget of the “Build, Build, Build” infrastructure centerpiece program by some lawmakers to fund their “pet projects” in their respective districts.

DBM reviews ‘realignments’

THE DBM said it will first evaluate the “realignments” made by

Congress to the 2020 General Appropriations Act (GAA) before the funds can be released. In a statement, DBM sa id given that the additional budgetar y items “ did not undergo t he usu a l budget eva lu at ion process,” these will be subjected to documentation requirements prior to the President’s approval. “This shall ensure that government funds shall be made available only for projects which are implementation-ready for the year and aligned with government priorities,” DBM said. DBM Undersecretary Laura Pascua told BusinessMirror that this is part of the agency’s process when dealing with “conditional veto” when it comes to certain items in the GAA.

DND REFUTES U.S. THINK TANK ON CHINESE SHIPS By Rene Acosta

@reneacostaBM

EFENSE Secretary Delfin Lorenzana said on Thursday that the presence of Chinese Coast Guard and militia ships in the West Philippine

Sea, particularly at the Pag-asa Island, are intermittent and not regular, rebutting claims by a US think tank that China had established its permanent presence in the country’s territory. “There [was] presence there intermittently, but verifying on numbers,”

NORTHEAST MONSOON AFFECTING LUZON AND VISAYAS as of 4:00 pm - February 20, 2020

Lorenzana said, reacting to the tweet of Gregory Poling, director of the Asia Maritime Transparency Initiative (AMTI) of the Center for Strategic and International Studies (CSIS). Poling took note of what he claimed was the permanent presence of Chi-

nese paramilitary and militia vessels in Pag-asa Island, which he said had not been reported by the Philippine media. His tweet came after Manila sent a formal notice to the US on the termination of the Visiting Forces Agreement (VFA). “China has maintained a constant maritime militia and CCG [Chinese Coast Guard] deployment around Thitu Island for 424 days and counting. Somehow, this isn’t on the front pages of Manila papers,” Poling said in his tweet. The American expert apparently used as a basis AMTI’s earlier report about the stationary presence of Chinese ships around Pag-asa Island. and the movement of some of the vessels in the West Philippine Sea; and even in the maritime waters of neighboring countries, including Malaysia and Indonesia. The movement was tracked by the AMTI. Lorenzana, however, questioned Poling’s motive over his tweet. “Why is he so interested in this? What is it to him? And on the basis of his tweet we are expected to jump and react? No way, sir. We will not allow anybody, especially outsiders, to dictate how we manage our affairs,” the defense secretary said.

Navy revelation LAST year, the Philippine Navy admitted that it had monitored the irregular presence of Chinese Coast Guard and militia vessels around Pag-asa Island, with their number fluctuating. One report said that for a period of six months last year, more than 600 ships were spotted in the territory, but the Navy said it only counted half of the number since on some occasions, the vessels carried the same markings.

NGCP. . .

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and longer unplanned maintenance shutdowns of aging plants, as well as the unpredictable weather, NGCP is urging the authorities to focus efforts on stemming what seems to be an impending power shortage in Luzon, especially during the summer season,” it said. “As the Transmission Network Provider and System Operator, NGCP performs its functions within the bounds of its mandate. We cannot provide or implement solutions to a generation deficiency-induced shortage,”it added. Under the Electric Power Industry Reform Act (Epira), NGCP said it could not intervene on issues in the generation and distribution sectors. Its responsibility is limited to the operations and maintenance of the power transmission network. The Department of Energy (DOE) forecasts a total System Peak Demand

THE BROWN FOX JU D.O.J.QUICK OPINION AWAITED OVER THE LAZY DOG. THE ON ABS-CBN FRANCHISE; LAZY HOUSEDOG HEARING IN AUG? By Joel R. San Juan @jrsanjuan1573

& Jovee Marie N. dela Cruz

@joveemarie

HE Department of Justice (DOJ) is set to issue a legal opinion on whether television giant ABSCBN may be allowed to continue operations pending action by Congress on bills seeking the renewal of its Legislative franchise which is set to expire on March 30. The DOJ plan was revealed as Speaker Alan Peter Cayetano said on Thursday no hearings will be set on the franchise renewal until May or even August. Justice Secretary Menardo Guevarra confirmed that a legal opinion was sought by the National Telecommunications Commission (NTC) in a letter sent last Tuesday. “We got it [NTC letter] last Tuesday afternoon and we hope to reply by next week,” Guevarra said. “The main question asked by the NTC is whether or not ABSCBN may continue operating after the lapse of the franchise period, pending action by the Congress on the franchise renewal bills,” he added. No franchise renewal will be granted to ABS-CBN Corp. before its expiration on March 30, 2020, as the House of Representatives plans to hear the bills renewing the franchise of the TV network not earlier than August, Cayetano said in an interview. The hearing on the franchise renewal could be done after President Duterte delivers his State of the Nation Address, which is scheduled every fourth Monday of July, he added. “There are two options: [one] is that in May depending on what we can accomplish in the next three weeks and the longer option is right after SONA...objectively, is early August,” Cayetano said. Cayetano said the session days are shorter in May compared to the period of July until October. Under the calendar of sessions, Congress is set to take a break from March 14 to May 3. It will resume session on May 4 to June 5 before the sine die adjournment on June 6 to July 26. “This is not like a television soap opera that gets better with cliffhangers. If we would hold hearings for two of 12,285 megawatts for Luzon to occur in May 2020, an increase of 8.3 percent from the actual 2019 peak demand of 11,344 MW which occurred on June 21, 2019. For Visayas and Mindanao, peak demand for both regions for 2019 occurred in May, a shift from previous years when peak demands were recorded during the last quarter of the year.

Shift in usage “THERE appears to be a shift in the way consumers use power. Luzon’s annual peak demand was long driven by increased use during the hot summer months. Mindanao and Visayas peak usage usually occur at the end of the year. The regulator and authorities must take a closer look at the shifts in peak demand and strategize short term and long-term solutions to address the ever increasing need for power vis-à-vis power consumption trends,” the company said. Between April to June this year, electricity supply is forecast to be thin even with an expected incoming 700-

weeks and there’s not enough time because of congressional recess, or even if we conduct hearings during recess, we could still not tackle it before the plenary,” Cayetano said. “But here in Congress, in my experience, it would be better to finish what we’ve started,” he added. However, Cayetano assured the public that the House is coordinating with the NTC so that ABS-CBN could continue its operation after the lapse of the franchise period. He gave assurances that the lower chamber is considering the 11,000 regular and contructual employees of ABS-CBN in the approval of the Legislative franchise.

Provisional authority?

HOWEVER, Albay Rep. Edcel Lagman has said the NTC cannot “resurrect” an expired Legislative franchise by granting media giant ABS-CBN a “provisional authority to operate.” “Only holders of a valid, existing and/or renewed franchise can apply with the NTC for a certificate of public convenience and necessity [CPCN],” Lagman said. According to Lagman, Section 16 of R A 7925, or the “Public Telecommunications Policy Act of the Philippines,” unequivocally provides that “no person shall commence or conduct the business of being a public telecommunications entity without first obtaining a franchise.”

‘Go’ signal

MEANWHILE, Lagman said the statement of Sen. Christopher “Bong” Go for the members of the House of Representatives to consider soonest the issue of the renewal of ABS-CBN’s franchise and vote according to their conscience appears to have the blessing of Duterte since Go is very close confidante of the President. “The apparent softening of the President’s opposition to the renewal of ABS-CBN’s franchise would quash the smoldering indignation against the Duterte administration for violating the freedom of the press and free expression,” he said. “The imminent closure of the giant network has galvanized multisectoral support for the renewal of its franchise,” he added. See “ABS-CBN,” A4 MW capacity from new power plants. The Luzon grid needs around 4 percent of the peak demand, or around 491 MW in regulating power to stabilize the grid. It also needs to maintain power equivalent to the largest plant online, which is 647 MW, as contingency power to support the grid in case of an emergency power plant shutdown. Should the net operating margin fall below these numbers, NGCP will issue a yellow alert. Further, if the power supply falls below the System Peak Demand, a red alert will be issued. This means that load dropping or rotating power interruptions may be implemented to protect the integrity of the power grid. “Power supply takes more than just a plus-minus strategy. Types of power technology, power plant location, use habits and trends, and lead times for installation of additional capacity must be taken into account when developing the country’s power development plan. Otherwise, the default strategy will always revert to stop gap measures,” said NGCP.

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In the ad material of Notice of filing of application for Alien Employment Permits published on December 18, 2019, the company of Mr. Zheng, Congqi under HUA XIN GLOBAL SUPPORT INC. should have been read as Mr. Zeng, Congqi and not as published. Any person in the Philippines who is competent, able and willing to perform the services for which the foreign national is desired may file an objection at DOLE NCR Regional Office located at 967 Maligaya St., Malate, Manila, within 30 days after its publication. Please inform DOLE NCR if you have any information on criminal offense committed by the foreign nationals.

ATTY. SARAH BUENA S. MIRASOL REGIONAL DIRECTOR

Companies BusinessMirror

www.businessmirror.com.ph

Friday, February 21, 2020

Dito Telecommunity draws initial $.5B from Bank of China for Phase 1 of network devt

By Lorenz S. Marasigan

@lorenzmarasigan

ITO Telecommunity Corp. has drawn an initial $500 million from the Bank of China to fund the first phase of its network development program with a commercial launch set for March 2021. Adel Tamano, the chief administrative officer of Dito, said his group’s initial funding from the

foreign bank will be used for land acquisition, tower construction, and the purchase radio equipment.

With this development, Tamano said the group is on track for its “technical launch,” where the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC), will test if Dito’s network is within its service level commitments. “By July we will have our technical launch. We will have 1,600 towers set up and it is doable. There are many challenges, problems, issues, but the way we have been approaching all of these is by finding the right partners to get things done,” he said.

Cur rent ly, the company is completing 600 towers and locations for the deployment of its 4G radio equipment. On July 18, the government will evaluate the network to see if it matches the 27 Mbps minimum download speed and the 37-percent coverage that Dito committed. Tamano added that his group will be making its very first live call in May using voice over LTE technology. By September, the company will be rolling out pre-commercial trails to stress test the network. “We don’t want a launch with

a not-so-stable network so we’re going to do a friendly user test,” Dito Chief Technology Officer Rodolfo Santiago said. He explained that this is a necessary step to ensure that his group will not be providing “the same service as the other telcos today.” Dito committed to spend P150 billion in its maiden year to set up its network. The figure is both for the build and the operational costs. But Santiago said he is bullish that the company may deliver its commitments at a lower cost. “The way we’re doing things

now, we may be saving some money, rather than spending more because the detailed design shows that we will be spending less to complete the network. I’m confident that the way things are going we might be underspending,” he said. He added that underspending is a “positive metric” given that it will “redound to cheaper rates to the consumers.” Dito’s five-year commitment entails a P257-billion investment that will result in an 84-percent nationwide coverage with a minimum Internet speed of 55 Mbps.

profit grow 24% DOE allows posting of new TOR DMW in 2019 on strong sales for 2nd round of Meralco’s CSP C By Lenie Lectura

@llectura

HE Department of Energy (DOE) has given the Manila Electric Co. the green light to proceed with the publication of the revised terms of reference (TOR) for the second round of the competitive selection process (CSP) involving 1,200 megawatts (MW) of new capacity. “And finally, there was a meeting of the minds already. I think it will be published. They asked for authorization to publish and we’ve given it,” Energy Secretary Alfonso Cusi told reporters in an ambush interview on Thursday. Meralco is seeking bids via competitive bidding for its 1,200-MW capacity requirement by 2024. The first CSP was declared a failure after only Atimonan One Energy Inc. of Meralco PowerGen Corp. submitted a bid. MGen is the power-generation arm of Meralco. Thereafter, the DOE told Meralco to revise the TOR so more power

AirAsia launching flights between Clark, Zambo

firms can participate. Meralco relaxed some of the bid rules in order to accommodate more participants. Among the DOE recommendations include stacking of capacity of several power plants to meet Meralco’s 1,200-MW supply requirement and allow not only greenfield power plants, but include merchant plants as well. “Well, tinaggap nila [they accepted it],” referring to the agency’s recommendations, which include any power plant to contract or sell only a part of its capacity to Meralco. “We want it to be transparent. We want to invite more participants. We don’t want it to be restrictive,” replied Cusi when asked why the DOE was pushing for a revision of the TOR. Greenfield power plants are those power projects that would be built from scratch. Merchant plants are power facilities without an approved power supply agreement (PSA). The output of merchant plants is traded at the electricity spot market. “We’re encouraging merchant power plants. Let’s allow them to

participate. Our policy is that we have been encouraging merchant power plant,” said Cusi. When sought for comment, Meralco utility economics head Lawrence Fernandez said the new bidding dates would be finalized when the bid committee members convene soon. “Yes, we received DOE’s letter. For publication, we just need to convene the TPBAC [Third Party Bids and Awards Committee] and formally obtain their approval to publish. We also need to confirm their availability to set the schedules for the Pre-Bid Conference and the Opening of Bids. These dates will be part of the Invitation to Bid to be published,” said Fernandez in a text message. Conglomerate San Miguel Corp. (SMC) earlier expressed keen interest to participate in the CSP, while Ayala Corp. said it was reviewing the amended bid rules. “Yes, we will bid,” SMC President Ramon S. Ang replied in a text message when asked if the power unit of

SMC will participate in the competitive bidding. Ang has been telling Meralco to allow other power plants to join the bidding because the original bid rules meant for greenfield power requirement were stringent. Previously, Meralco’s TOR allow power plants utilizing high-efficiency, low-emission technology. Mariveles Power Generation Corp., a joint venture between SMC Global Power Holdings Corp. and MGen, withdrew from the first CSP because the power plant that would join the auction is a circulating fluidized bed (CFB) coal-fired power plant. Another power giant that is expected to join the second round of CSP is AC Energy. “We are reviewing it,” said AC Energy President Eric Francia in a text message. “I hope this CSP succeeds as we need additional capacity soon.” AC Energy and SMC previously won in two other competitive biddings for Meralco’s 1,200-MW brownfield and 500-MW capacity requirement.

CACI starts journey to next 100 yrs with laying of time capsule

UDGET AirAsia Philippines will soon launch f lights between Clark and Zamboanga, as a response to calls from government for better air connectivity among the three major islands in the country. Ricardo Isla, the chief executive of the carrier, said starting March 29, the budget airline will be flying the Clark-Zamboanga route four times a week, and the Cebu-Zamboanga route seven times a week. “Our newest routes cement AirAsia’s connections among the country’s major islands: Luzon, Visayas and Mindanao,” Isla said. He added that the new routes will be helping drive tourism growth in the country. “ The launching of the new route is in support of Tourism Secretar y Bernadette Romulo Puyat’s push for a livelier tourism within the Philippines and her department’s campaign, ‘It’s More Fun in the Philippines,’” Isla added. Known as Asia’s Latin City, Zamboanga boasts of great tourism sites and trade opportunities. Lorenz S. Marasigan

IN photo at the laying of the CACI time capsule are Roxas Holdings Inc. Chairman Pedro E. Roxas (third from right), Group President and CEO Hubert D. Tubio (fourth from right), and South Negros Unit Vice President/Chief Manufacturing Officer Pilipino T. Cayetano (third from left) who buried the time capsule. Members of RHI’s Senior Mancom, led by Executive Vice President and Chief Financial Officer Celso T. Dimarucut (right) and EVP / Chief Operations Officer Arcadio S. Lozada Jr. (left), assisted in the symbolic event. Other officers include Jose Manuel L. Mapa (second from right), vice president /general manager–RHI Agri-business Development Corp.; Jose B. Villanueva III (second from left), VP/CMO for Central Azucarera Don Pedro Inc. and San Carlos Bioenergy Inc.; Daisy Perpetua A. Bo (fourth from left), assistant vice president for Quality Assurance/Safety/Industrial Engineering; and Gil M. Morales (fifth from left), AVP/factory operations head-CACI.

ENTRAL Azucarera de la Carlota Inc. (CACI) officially marked the close of its first 100 years and the beginning of its journey to a new cen-

tury with the laying of the time capsule last February 10, 2020. The time capsule, which would only be opened in 2021, was buried at the site where the iconic

CACI locomotive train is located. It contained memorabilia from the time CACI began its operations to the early weeks of January 2020.

ONSTRUCTION firm D.M. Wenceslao and Associates Inc. on Thursday said its profits grew 24 percent last year to P2.37 billion from the previous year’s P1.91 billion, on strong revenue from the sale of its completed projects. Revenues grew 63 percent yearover-year to P3.51 billion from P2.26 billion in 2018, mainly driven by sales of land and condominium units. Revenues from recurring income streams, consisting of about half of its total revenues, were flat at P1.96 billion. Revenues from leasing of land rose by a mere 1 percent to P979.1 million, rentals of buildings rose 4 percent to P793.5 million and other revenues related to leasing increased 7 percent to P186.2 million. Revenues from land sales were P935.9 million, compared with P1.3 million in the prior year, and residential sales were P547.7 million compared to P119.4 million,

the company said. “During the year, we delivered our first residential project, started construction on two commercial properties and reached different stages of development for our ongoing projects, which will begin contributing meaningfully to earnings in 2020 and beyond,” Delfin Angelo C. Wenceslao, the company’s CEO, said. Wenceslao said the company plans to continue its double-digit net income growth this year through improved performance and managed cost strategies. As of end 2019, the company’s land holdings, completed properties and pipeline development projects in Aseana City reached a total 569,359 square meters and are valued at approximately P209.8 billion, according to Colliers. Total leasable gross floor area was at 89,914 square meters, leased land area was 158,079 square meters and land reserves, 303,836 square meters. VG Cabuag

₧20 per liter of gas? Phoenix Petroleum thanks customers

HOENIX Petroleum slashed prices of petroleum products to P20 per liter for one day, but had to later apologize to people inconvenienced by traffic jams caused by customers queuing up for the mind-boggling promo. It told the stock exchange Thursday that it is offering all its fuel variants at a special discounted price of P20 per liter on February 20, from 10 a.m. to 12 noon at 10 of its gas stations across the country. Dubbed as “ Twenty on Twenty,” Phoenix launched the promo as a way to thank its customers and celebrate its win after being hailed as the “Marketing Company of the Year” at the 40th Agora Awards. “For the past years, Phoenix Petroleum has been achieving great business results, and attracting more and more partners and clients nationwide. We credit our growth to the hard work of our employees, the trust of our customers, and our continuous pursuit for improvement and excellence in our products and services, said Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon. “As we aim for greater goals this year, we want to give back to our customers and treat them with a very special promo. As a homegrown brand that made its way up and competes toe-to-toe with big and established multinationals, we want to share this win to the people we serve, the Filipino motorists,

who choose to trust and patronize local brands such as ours,” he added. The discounted pump prices were made available at Phoenix stations in Lanang 1 in Davao, SRP Talisay in Cebu, C3 Road in Caloocan, Marcos Highway in Antipolo, Bahay Toro and Dahlia in Quezon City, San Pablo 2 in Laguna, Sucat Skyway in Parañaque, Lalaan in Cavite and Malvar in Batangas. Energy Secretary Alfonso Cusi welcomed this. “This is a deregulated industry. If they want to give it for free then they can. We don’t issue permits for promo,” commented the energy chief. All Phoenix fuel variants (Diesel, Super Regular, Premium 95, and Premium 98) are blended with Phoenix PULSE Technology, a world-class fuel additive introduced by Phoenix Petroleum in 2018, upgrading the quality of Phoenix fuels without any additional cost. Phoenix PULSE Technology has been touted to result in better fuel economy due to its advanced cleaning and protection properties. Earlier this year, the prestigious Agora Awards recognized the positive impact Phoenix PULSE Technology brought to Filipino motorists through its launch and promos. In 2017, in celebration of its 10th listing anniversary, Phoenix Petroleum made headlines when it offered its fuels for only P10 per liter at select stations nationwide. Lenie Lectura

Companies BusinessMirror

Friday, February 21, 2020

PSE STOCK QUOTATIONS

February 20, 2020

Net Foreign Stocks Bid Ask Open High Low Close Volume Value Trade (Peso) Buy (Sell) FINANCIALS

ASIA UNITED BDO UNIBANK BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PB BANK PBCOM PHIL NATL BANK PSBANK RCBC SECURITY BANK UNION BANK COL FINANCIAL MEDCO HLDG MANULIFE NTL REINSURANCE PHIL STOCK EXCH SUN LIFE VANTAGE

53.1 148.5 85 25 11.66 60.6 12.08 18.9 32.95 51.8 20.45 173 58.15 17.98 0.41 810 0.75 174.5 1816 1.15

53.2 148.6 86 25.05 11.72 60.65 12.2 19 33 53.2 20.5 173.1 58.2 18.2 0.425 849.5 0.81 177 1874 1.16

52 148 85.5 25 11.5 59 12.1 18.9 32.45 51.7 20.6 170.9 58.5 17.96 0.41 805 0.75 178.9 1820 1.14

53.35 149.3 86.1 25.05 11.8 60.9 12.1 18.9 33.5 51.8 21.6 174 58.5 18 0.42 805.5 0.75 179 1821 1.15

52 147.8 85 24.95 11.5 59 12.08 18.9 32.45 51.7 20.45 170.9 58.2 17.96 0.41 805 0.75 176 1815 1.14

53.1 148.5 85 25.05 11.72 60.6 12.08 18.9 32.95 51.8 20.5 173.1 58.2 18 0.41 805.5 0.75 177 1815 1.15

880 2382780 6030630 126700 168700 6017910 18000 400 213700 840 332700 610430 2670 37500 60000 80 12000 250 105 567000

46153.5 353848675 -102704382 516,829,212( 12,615,324.9997) 3165750 1961566 185916 364257875.5 26209199.5 217704 7560 7054925 -68900 43430 6828440 -6145 105526165 -94725698 155647.5 673596 24750 64420 9000 44176 191045 647880 647879.9998

INDUSTRIAL AC ENERGY 2.22 2.23 2.14 2.25 2.14 2.22 5696000 12594000 ALSONS CONS 1.22 1.23 1.2 1.22 1.2 1.22 2000 2420 ABOITIZ POWER 32.15 32.2 32.2 32.3 31.95 32.15 340100 10936475 BASIC ENERGY 0.219 0.224 0.22 0.224 0.218 0.224 140000 30810 FIRST GEN 20.25 20.35 19.98 20.4 19.98 20.25 229100 4643479 FIRST PHIL HLDG 66.4 66.5 66.6 66.8 66.5 66.5 71650 4768926 MERALCO 279 280 278.8 281.6 275.4 279 154300 42885996 MANILA WATER 12.2 12.28 12.3 12.44 12.2 12.2 2196800 27014548 PETRON 3.48 3.49 3.5 3.5 3.46 3.49 1266000 4396740 PETROENERGY 3.41 3.74 3.5 3.74 3.5 3.74 93000 326190 PHX PETROLEUM 11.6 11.8 11.58 11.8 11.58 11.8 59000 690696 PILIPINAS SHELL 29.4 29.5 29.15 29.65 29.15 29.4 37900 1116170 SPC POWER 9.28 9.3 9.28 9.3 9.25 9.28 64000 593756 AGRINURTURE 7.68 7.85 7.66 7.93 7.56 7.85 2918600 22815612 AXELUM 3.09 3.1 2.95 3.09 2.93 3.09 3362000 10158730 CNTRL AZUCARERA 15.6 16.4 15.62 15.62 15.6 15.6 1000 15612 CENTURY FOOD 15.18 15.3 15.1 15.3 15.04 15.18 464800 7011516 DEL MONTE 4.5 4.59 4.59 4.59 4.59 4.59 5000 22950 DNL INDUS 8.34 8.39 8.4 8.52 8.3 8.34 2273200 19214643 EMPERADOR 7.51 7.52 7.58 7.58 7.51 7.52 179400 1350176 SMC FOODANDBEV 74.8 75.9 74 76.2 74 75.9 266070 19983274.5 ALLIANCE SELECT 0.65 0.66 0.67 0.67 0.62 0.65 4728000 3033380 FRUITAS HLDG 1.95 1.96 2.02 2.03 1.93 1.95 36344000 71976730 GINEBRA 34.3 36 36.45 36.45 36.45 36.45 100 3645 JOLLIBEE 188 190.9 184 194 184 188 1087480 206293028 MAXS GROUP 9.62 9.64 9.68 9.73 9.62 9.62 90800 874861 MG HLDG 0.155 0.164 0.156 0.16 0.156 0.16 170000 26920 PEPSI COLA 1.82 1.83 1.83 1.86 1.81 1.83 3589000 6661940 SHAKEYS PIZZA 9.12 9.13 9.24 9.25 9.1 9.13 143000 1310430 ROXAS AND CO 1.58 1.59 1.62 1.66 1.53 1.59 1241000 1952520 RFM CORP 5.1 5.26 5.2 5.26 5.1 5.26 10700 55428 SWIFT FOODS 0.117 0.121 0.119 0.119 0.119 0.119 200000 23800 UNIV ROBINA 150.5 152 152.5 153.9 150.5 150.5 870870 132674582 VITARICH 1.16 1.18 1.12 1.18 1.11 1.18 17634000 20181620 VICTORIAS 2.4 2.53 2.53 2.53 2.53 2.53 1000 2530 CONCRETE A 60.8 64.8 60 60 60 60 50 3000 CONCRETE B 66.5 73 66.5 73.1 66.5 73.1 650 47185 CEMEX HLDG 1.49 1.5 1.47 1.53 1.46 1.49 4120000 6183950 EAGLE CEMENT 11.82 11.84 12.3 12.3 11.72 11.84 239700 2842066 EEI CORP 8.5 8.7 8.99 8.99 8.5 8.5 502900 4375877 HOLCIM 13.4 13.46 12.06 13.5 12.06 13.4 1377600 18234290 MEGAWIDE 14.62 14.64 14.78 14.84 14.64 14.64 143500 2113820 PHINMA 9.64 9.7 9.7 9.7 9.64 9.7 12700 122625 VULCAN INDL 0.94 0.95 0.96 0.96 0.95 0.95 400000 380040 CHEMPHIL 180.3 197.8 193.8 207.4 193.8 198 1170 234258 CROWN ASIA 2.11 2.13 2.13 2.13 2.13 2.13 10000 21300 EUROMED 2.83 2.84 2.96 2.98 2.84 2.84 723000 2084600 LMG CHEMICALS 4.91 4.98 4.75 5.44 4.69 4.98 283000 1412210 PRYCE CORP 4.8 4.98 4.8 4.82 4.8 4.8 61000 292820 CONCEPCION 30 30.05 30.05 30.05 30.05 30.05 400 12020 GREENERGY 1.5 1.54 1.53 1.56 1.49 1.53 1986000 3027770 INTEGRATED MICR 5.34 5.38 5.51 5.56 5.28 5.34 1693700 9102978 IONICS 1.21 1.22 1.2 1.33 1.2 1.22 288000 363460 PANASONIC 4.72 5.2 5.1 5.2 5.1 5.2 3700 19090 SFA SEMICON 1.16 1.17 1.22 1.22 1.15 1.17 797000 939690 CIRTEK HLDG 8.6 8.62 9 9.05 8.54 8.62 1121200 9795271

-113440 -8146300 -984436 -2219211.5 -20470002 -8086276 476690 -810330 337909 -580440 1091104 -8329836 -66312 -169670 14728201 -469853 -16000 -445910 -4625 -35860 838 -25598898 17360 -822730 -2778780 1187878 -1239096 -11400 -12020 -13770 -5351163 -38900 -43870 -497099

HOLDING & FRIMS ABACORE CAPITAL 0.86 0.87 0.88 0.88 0.85 0.87 19201000 16626310 ASIABEST GROUP 9.99 10.2 10.22 10.22 9.99 9.99 6900 68977 AYALA CORP 752.5 753 767 767 753 753 252950 191502100 ABOITIZ EQUITY 51 51.45 50.7 52.3 50.7 51 2597660 132977463.5 ALLIANCE GLOBAL 10.42 10.5 10.4 10.52 10.4 10.5 3666700 38445158 AYALA LAND LOG 2.49 2.5 2.58 2.58 2.49 2.49 303000 759360 ANSCOR 6.11 6.35 6.1 6.1 6.1 6.1 2400 14640 ATN HLDG A 0.92 0.93 0.9 0.94 0.9 0.93 679000 624800 ATN HLDG B 0.93 0.94 0.93 0.94 0.93 0.94 332000 310630 COSCO CAPITAL 6.25 6.29 6.25 6.29 6.25 6.29 19400 121699 DMCI HLDG 5.64 5.7 5.71 5.8 5.64 5.64 3719700 21113331 FORUM PACIFIC 0.214 0.226 0.22 0.22 0.214 0.214 210000 46140 GT CAPITAL 732 746 727.5 749.5 727.5 732 94390 69297300 HOUSE OF INV 4.75 5.57 4.71 4.71 4.71 4.71 4000 18840 JG SUMMIT 74.9 75 75.5 76.15 75 75 1599820 120509595.5 JOLLIVILLE HLDG 6.21 6.65 6.65 6.65 6.63 6.64 211500 1403575 LODESTAR 0.485 0.49 0.49 0.49 0.485 0.49 30000 14650 LOPEZ HLDG 3.88 4 3.8 4.1 3.8 4 1120000 4388390 LT GROUP 9.66 9.67 9.8 9.8 9.67 9.67 1427200 13,893,494( MABUHAY HLDG 0.54 0.59 0.59 0.59 0.54 0.54 568000 330210 METRO PAC INV 3.19 3.2 3.17 3.24 3.17 3.19 17031000 54627110 PACIFICA HLDG 4.31 4.47 4.35 4.48 4.31 4.48 13000 56480 PRIME MEDIA 1.08 1.12 1.08 1.12 1.08 1.08 61000 66320 REPUBLIC GLASS 2.7 2.8 2.74 2.74 2.74 2.74 22000 60280 SOLID GROUP 1.11 1.16 1.1 1.16 1.1 1.16 20000 22600 SYNERGY GRID 162 180 180 180 180 180 10 1800 SM INVESTMENTS 1032 1048 1054 1059 1032 1032 185325 193351375 SAN MIGUEL CORP 132.9 133 132.4 133.5 132.4 133 165140 21959937 SOC RESOURCES 0.77 0.78 0.77 0.78 0.77 0.78 85000 65830 TOP FRONTIER 164.6 166 166 166 164.8 165.6 1350 223607 WELLEX INDUS 0.211 0.221 0.22 0.22 0.211 0.211 210000 46110 ZEUS HLDG 0.187 0.19 0.188 0.194 0.185 0.19 5220000 988990

-1087540 -46432640 89948768 -3193690 14640 305930 7371 -15657627 5244820 -37484656.5 -551570 5,965,889.0005) -1358700 -20280 56371400 -4759319 -109253 -471200

PROPERTY ARTHALAND CORP 0.78 0.79 0.78 0.78 0.78 0.78 423000 329940 AYALA LAND 42.45 42.5 42.25 42.6 42.25 42.45 15182800 644891750 ARANETA PROP 1.59 1.71 1.59 1.59 1.59 1.59 24000 38160 BELLE CORP 1.58 1.6 1.6 1.61 1.58 1.6 368000 587430 A BROWN 0.62 0.63 0.64 0.65 0.62 0.62 613000 384740 CITYLAND DEVT 0.8 0.81 0.8 0.81 0.8 0.81 4000 3210 CEB LANDMASTERS 4.55 4.59 4.57 4.59 4.54 4.59 340000 1548100 CENTURY PROP 0.495 0.5 0.495 0.5 0.49 0.5 5680000 2820800 CYBER BAY 0.375 0.39 0.365 0.395 0.365 0.39 1080000 407600 DOUBLEDRAGON 19.16 19.18 18.9 19.4 18.6 19.16 349700 6706978 DM WENCESLAO 8.92 9 9.1 9.1 8.92 8.92 75800 680753 EMPIRE EAST 0.375 0.385 0.375 0.385 0.37 0.385 210000 78100 FILINVEST LAND 1.4 1.42 1.43 1.43 1.4 1.4 24269000 34240550 GLOBAL ESTATE 1.04 1.05 1.04 1.05 1.03 1.04 590000 612040 8990 HLDG 14.7 14.82 14.72 14.74 14.7 14.7 1013700 14912388 PHIL INFRADEV 1.11 1.12 1.1 1.18 1.1 1.11 11484000 12934910 MEGAWORLD 4.05 4.06 4.03 4.1 4.03 4.05 17566000 71513290 MRC ALLIED 0.203 0.205 0.209 0.21 0.2 0.203 5040000 1024190 PHIL ESTATES 0.43 0.445 0.45 0.45 0.43 0.43 70000 30900 PRIMEX CORP 2.06 2.09 2.06 2.09 2.04 2.04 437000 894720 ROBINSONS LAND 25.6 25.7 25.2 25.85 25.2 25.6 1624400 41606940 PHIL REALTY 0.31 0.32 0.32 0.32 0.31 0.31 480000 148900 ROCKWELL 1.97 2.04 1.96 2.05 1.95 2.04 145000 293500 SHANG PROP 3.02 3.09 3.03 3.09 3.01 3.09 72000 217390 STA LUCIA LAND 2.52 2.53 2.43 2.53 2.41 2.53 265000 656910 SM PRIME HLDG 41.6 41.65 41.1 42.05 41.05 41.65 9699100 404273375 VISTAMALLS 5.07 5.17 5.18 5.18 5.06 5.17 10500 54349 SUNTRUST HOME 1.7 1.72 1.73 1.77 1.66 1.72 5305000 9109570 VISTA LAND 6.83 6.84 6.86 6.87 6.82 6.84 3979500 27244120

-53170345 395380 477809.9999 93896 -528029 -18482030 915332 11230 1127650 2060 -2849050 -214300 -23086035 -21101417

SERVICES ABS CBN 21.75 21.8 18.88 22 18.4 21.8 4932300 101894326 GMA NETWORK 5.39 5.4 5.39 5.42 5.39 5.4 362400 1957420 MANILA BULLETIN 0.455 0.46 0.46 0.465 0.455 0.46 250000 114450 GLOBE TELECOM 1895 1900 1919 1925 1895 1895 32910 62708950 PLDT 1022 1040 1045 1047 1022 1022 26945 27779505 APOLLO GLOBAL 0.045 0.047 0.047 0.047 0.047 0.047 1600000 75200 DFNN INC 3.7 4 4 4 4 4 31000 124000 ISLAND INFO 0.099 0.102 0.099 0.099 0.099 0.099 70000 6930 ISM COMM 1.81 1.82 1.87 1.93 1.76 1.82 41784000 77305250 NOW CORP 2.13 2.14 2.09 2.16 2.07 2.14 837000 1779170 TRANSPACIFIC BR 0.236 0.238 0.236 0.239 0.236 0.238 730000 173070 PHILWEB 3.24 3.25 3.25 3.25 3.14 3.24 825000 2629220 2GO GROUP 7.99 8 8.5 8.5 7.8 8 126800 1018579 CHELSEA 4.23 4.27 4.25 4.28 4.21 4.23 630000 2666970 CEBU AIR 80.75 81 80 81 79.65 80.75 71020 5726683 INTL CONTAINER 125.3 125.4 126 126.2 125 125.4 1396270 175255992 LBC EXPRESS 12.2 12.38 12.38 12.38 12.38 12.38 1000 12380 MACROASIA 10.52 10.54 10.92 11.1 10.54 10.54 2885800 30859468 METROALLIANCE A 1.18 1.22 1.18 1.23 1.17 1.22 130000 153870 METROALLIANCE B 1.2 1.28 1.29 1.29 1.2 1.2 5000 6090 PAL HLDG 7.2 7.3 7 7.3 7 7.2 4900 34643 HARBOR STAR 1.16 1.17 1.14 1.17 1.14 1.16 458000 527220 BOULEVARD HLDG 0.046 0.047 0.044 0.046 0.044 0.046 6200000 280400 GRAND PLAZA 9.6 13.38 13.42 13.42 13.42 13.42 100 1342 WATERFRONT 0.55 0.56 0.56 0.56 0.55 0.55 255000 140830 FAR EASTERN U 890 900 890 890 890 890 1800 1602000 STI HLDG 0.57 0.58 0.59 0.59 0.57 0.57 351000 202450 BERJAYA 2.81 2.82 2.72 2.85 2.66 2.81 466000 1308690 BLOOMBERRY 9.09 9.1 8.99 9.18 8.95 9.1 5018300 45752441 PACIFIC ONLINE 2.01 2.05 2 2.05 2 2.01 22000 44220 LEISURE AND RES 1.93 2 2.06 2.06 1.92 1.93 388000 776780 PREMIUM LEISURE 0.51 0.52 0.53 0.53 0.52 0.52 5707000 2975530 ALLHOME 10.42 10.5 10.5 10.6 10.4 10.5 2176500 22765834 METRO RETAIL 1.79 1.8 1.82 1.82 1.79 1.8 1380000 2482620 PUREGOLD 37 38.5 38.5 38.5 37 37 210300 7849240 ROBINSONS RTL 72.4 73 71.2 73.5 71.1 72.4 171350 12504802 PHIL SEVEN CORP 150 150.8 150 150 150 150 2540 381000 SSI GROUP 2.12 2.13 2.17 2.24 2.11 2.12 1564000 3340000 WILCON DEPOT 18.8 18.82 18.74 18.88 18.74 18.8 908900 17085014 APC GROUP 0.39 0.395 0.395 0.4 0.39 0.395 460000 181150 EASYCALL 7 7.19 7.12 7.2 6.96 7 10500 74402 GOLDEN BRIA 418.8 423.8 424 424 417 424 400 168590 PRMIERE HORIZON 0.31 0.315 0.31 0.32 0.305 0.315 4940000 1526000 SBS PHIL CORP 8.73 8.98 8.73 8.73 8.73 8.73 2000 17460

-27430525 -12576560 120000 370670 -55699 -16870 -500982 -24616400 -818382 12600 -66120 -6080 -17717160 -383549.9999 31200 -10663730 -279000 -5528600 8097026 349500 75270 15121934 30622 -77500 -

MINING & OIL ATOK 11.08 11.6 10.92 11.6 10.92 11.6 14000 158924 APEX MINING 1.02 1.03 0.99 1.02 0.99 1.02 1099000 1112580 ABRA MINING 0.0013 0.0014 0.0013 0.0014 0.0013 0.0014 368000000 481900 CENTURY PEAK 3 3.03 3 3.03 3 3.03 135000 408910 DIZON MINES 6.64 6.78 6.79 6.79 6.61 6.64 20700 137107 FERRONICKEL 1.31 1.32 1.3 1.31 1.29 1.31 495000 642530 -15600 GEOGRACE 0.199 0.206 0.198 0.206 0.198 0.206 80000 15920 LEPANTO A 0.094 0.095 0.093 0.095 0.093 0.095 1160000 109350 LEPANTO B 0.091 0.099 0.091 0.097 0.091 0.097 220000 21220 MANILA MINING A 0.0072 0.0075 0.0073 0.0075 0.0073 0.0075 17000000 125200 MANILA MINING B 0.0075 0.009 0.0075 0.0075 0.0075 0.0075 3000000 22500 MARCVENTURES 0.69 0.72 0.7 0.73 0.68 0.72 309000 216290 NIHAO 0.99 1.01 1.01 1.01 1 1 5000 5020 NICKEL ASIA 2.57 2.58 2.56 2.64 2.56 2.58 997000 2603070 535830 ORNTL PENINSULA 0.65 0.68 0.65 0.68 0.65 0.68 4000 2630 PX MINING 2.96 3 3.02 3.04 2.93 2.96 614000 1830220 SEMIRARA MINING 20.1 20.2 20.1 20.2 19.86 20.2 333700 6690456 -162062 UNITED PARAGON 0.0049 0.005 0.005 0.005 0.005 0.005 16000000 80000 ACE ENEXOR 7.15 7.17 7.02 7.33 7.02 7.17 45900 329819 -102373 ORNTL PETROL A 0.0099 0.01 0.01 0.01 0.01 0.01 68000000 680000 ORNTL PETROL B 0.011 0.012 0.011 0.012 0.01 0.01 920900000 9538000 PHILODRILL 0.01 0.011 0.01 0.011 0.01 0.01 14900000 157800 PXP ENERGY 7.67 7.7 7.62 7.75 7.61 7.7 171100 1317290 -7650 PREFFERED HOUSE PREF A 99.8 100 99.8 99.8 99.8 99.8 3110 310378 AC PREF B1 500 505 500 500 500 500 5000 2500000 AC PREF B2R 500 503 500 500 500 500 130 65000 CPG PREF A 100.9 103 101 101 100.9 100.9 12500 1262000 30270 DD PREF 101.1 101.5 101 101 101 101 2250 227250 FPH PREF C 490 500 490 490 490 490 100 49000 GTCAP PREF A 999 1000 999 999 999 999 7260 7252740 MWIDE PREF 100.5 101.2 100 101.2 100 100.6 124110 12476563 PNX PREF 3A 100.1 102 102 102 102 102 1240 126480 PCOR PREF 2B 1010 1038 1005 1005 1005 1005 520 522600 PCOR PREF 3A 1060 1075 1060 1070 1060 1070 3245 3464450 -10600 PCOR PREF 3B 1080 1081 1075 1080 1075 1080 8085 8729675 SMC PREF 2C 77.5 77.6 77.5 77.6 77.5 77.5 21470 1663929 SMC PREF 2E 75.1 75.6 75.1 75.1 75.1 75.1 26600 1997660 SMC PREF 2F 76.6 76.85 76.5 76.5 76.5 76.5 27100 2073150 SMC PREF 2H 76 76.2 76 76.2 76 76.2 23800 1810640 PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 16.82 16.9 16.2 17.38 16.2 16.82 3013400 50959498 -24996378 GMA HLDG PDR 5.25 5.3 5.29 5.3 5.29 5.3 8100 42850 10051 WARRANTS LR WARRANT 1.12 1.16 1.15 1.16 1.12 1.12 6000 6910 SMALL & MEDIUM ENTERPRISES ITALPINAS 3.17 3.25 3.18 3.27 3.17 3.17 246000 788190 39540 KEPWEALTH 9.49 9.5 9.56 9.65 9.43 9.5 118600 1125651 XURPAS 0.83 0.84 0.81 0.83 0.81 0.83 1361000 1115140 EXHANGE TRADE FUNDS FIRST METRO ETF 111.5 112.6 111 112.7 111 111.5 9000 1008147 31455

www.businessmirror.com.ph

San Miguel power unit: We paid PSALM P315B as of Jan

By Lenie Lectura

@llectura

AN Miguel Corp. (SMC) through its power unit, South Premiere Power Corp. (SPPC), has paid a total of P314.6 billion to the Power Sector Assets and Liabilities Management Corp. (PSALM) as of January 2020 for its administration of the capacity from the 1200-megawatt (MW) Ilijan power plant in Batangas. The company released the figures on Thursday following reports supposedly coming from PSALM and the Makabayan bloc, castigating the company for “unpaid debts” to government. Bayan Muna, however, denied issuing any such statements. “This puts into question the motives of the true source of the news release and the integrity of the material,” a statement from SMC said. Recently, the issue was also raised in a joint hearing in Congress. “For some reason, while our case with PSALM is still in Court, this issue is being raised by parties that

are devious enough to use and misrepresent the Makabayan bloc to advance their ulterior motives,” SMC President Ramon S. Ang said. “It’s for this reason that we are releasing the latest figures of our continuous and up-to-date payments to PSALM,” he added. Due to differences in interpreting the basis for generation payments, SPPC and PSALM began discussions in 2012 to come up with a proper computation. On September 4, 2015, PSALM, despite ongoing discussions, unilaterally terminated SPPC’s Administrator Contract over Ilijan and called on its performance bond.

MPIC hospital group buys controlling stake in Los Baños hospital for ₧250 million

ETRO Pacific Hospital Holdings Inc. (MPHHI) on Thursday said it has bought a controlling stake in Los Baños Doctors Hospital (LBDH) and Medical Center Inc., and its founders to invest a total of P250 million in common and preferred shares for a 51-percent equity interest in the expanded capital of the company. Los Baños Doctors is an 80-bed level 2 hospital located along Lopez Avenue, Batong Malake, Los Baños, Laguna. It was established in 1975, the first hospital in Los Baños. The hospital has grown to serve patients not only from Los Baños but from adjacent areas of Calamba City and the Municipality of Bay. It recently completed the construction of an eight-story building which will add up to 26 new rooms, and 44 additional doctors’ clinics, expanding the hospital’s ability to cater to the

growing health-care needs of the community. “We, the founders of Los Baños Doctors Hospital, are very excited to welcome MPHHI, the largest private hospital network in the country, as our partner in our continuous pursuit of providing ever-improving healthcare services to our community,” Leslie M. Reyes, director-founder and former chairman of LBDH said. “We invited Metro Pacific at a very crucial time in our hospital’s history. We just completed the construction of our expansion building, and we chose a partner who we know has the track record to help us operationalize and maximize this added capacity in order to reach and serve more patients,” said Ernesto M. Pua, also a founder and former director and president. Metro Pacific now has 16 hospitals in its portfolio. VG Cabuag

Higher sales of industrial lots lift AyalaLand Logistics ’19 income

YA L A L A N D L o g i s t ic s Holdings Corp. on Thursday said its income grew 15 percent last year to P641 million from the previous year’s P554.71 million on higher land sales of mostly industrial lots. In its disclosure, the company said its revenues grew more than half to P5.3 billion from the previous year’s P3.36 billion, on strong sales of industrial lots, warehouse and commercial leasing operations. Industrial lot sales grew more than double to P1.8 billion from the previous year’s P786 million, while leasing revenues from warehouses rose 78 percent to P285 million, and commercial leasing increased

24 percent to P849 million. The company, previously known as Prime Orion Philippines Inc., ended the year with 170,000 square meters of warehouse gross leasable area and 84,000 sq m of commercial GLA. “Our growth is concurrent with the creation of employment opportunities within our developments. With the addition of new industrial estates in key areas across the countrym ALLHC continues to solidify its vision of energizing and supporting communities as the company works in creating value through economic activities,” said Maria Rowena M. Tomeldan, the company’s president. VG Cabuag

Then PSALM chairman, Finance Secretary Cesar Purisima, however, said the decision to terminate was not authorized by the PSALM board. Further, SMC said the total P314.6 billion in payments consist of a total of P73.9 billion in fixed monthly payments and P240.7 billion in generation charges. With this, the estimated remaining balance for payment to PSALM is at P77.6 billion, consisting of P23.6 billion in fixed monthly payments and P54 billion in generation charges. All in all, total paid and unpaid payments to PSALM will amount to P392.2 billion, or P97.5 billion in fixed monthly payments and P294.7 in generation charges. “PSALM gains from the deal as of January 2020 have thus reached P40 billion,” said SMC. Ang said that the dispute stemmed from a misinterpretation by PSALM of the provisions of SMC’s original independent power producer administrator (IPPA) contract which led to a wrong basis for computation of their supposed “underpayment.” Essentially, PSALM is computing generation payments due from SPPC based on prevailing Wholesale Electricity Spot Market (WESM) prices, particularly from November to December 2013, when there was

MUTUAL FUNDS

a temporary spike in prices. Such spike in W ESM prices would eventually be declared null and void by the Energy Regulatory Commission (ERC). While that approach in computing generation payments may have resulted in higher earnings for PSALM, such would have illogically required SPPC to sell the capacity of the Ilijan power plant to the spot market. “This is contrary to the nature of a baseload plant and the fact that the power plant has been and continues to be fully contracted to bilateral power customers, primarily Meralco,” San Miguel added. SPPC said that selling Ilijan Plant’s reliable baseload capacity to WESM would have put them in violation of provisions of their power supply contract approved by ERC, designed specifically to protect consumers from higher and fluctuating electricity prices in the WESM. “We cannot just change the provisions of the contract for those two months, when there was an extraordinary spike in prices, and then revert to the original agreement after that. If we did that, PSALM would actually lose a lot more. We have continued to pay them and they have earned so much from this agreement already. We’re just asking them to honor the contract,” Ang said.

February 20, 2020

NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D PER SHARE RETURN* RETURN STOCK FUNDS ALFM GROWTH FUND, INC. -A 239.64 -9.04% -1.7% -3.06% -4.86% ATRAM ALPHA OPPORTUNITY FUND, INC. -A 1.2467 -20.82% -3.72% -5.24% -9.79% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC. -A 3.3425 -18.14% -5.99% -5.84% -9.13% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP. -A 0.8315 -11.22% N.A. N.A. -7.31% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC. -A 0.8056 -5.26% N.A. N.A. -5.15% FIRST METRO SAVE AND LEARN EQUITY FUND,INC. -A 5.06 -7.34% -0.47% -2.98% -5.04% FIRST METRO SAVE AND LEARN PHILIPPINE INDEX FUND, INC. -A,6 0.8045 -7.34% -4.27% N.A. -5.75% MBG EQUITY INVESTMENT FUND, INC. -A 95.55 -22.51% N.A. N.A. -7.53% PAMI EQUITY INDEX FUND, INC. -A 48.4247 -5.93% 0.3% N.A. -5.57% PHILAM STRATEGIC GROWTH FUND, INC. -A 505.95 -6.18% -0.48% -2.63% -5.04% PHILEQUITY ALPHA ONE FUND, INC. -A,D,8 0.9878 N.A. N.A. N.A. -4.11% PHILEQUITY DIVIDEND YIELD FUND, INC. -A 1.2238 -5.83% 0.03% -1.63% -4.9% PHILEQUITY FUND, INC. -A 35.9509 -6.07% 0.99% -1.45% -5.14% PHILEQUITY MSCI PHILIPPINE INDEX FUND, INC. -A,1 0.968 -4.99% N.A. N.A. -4.92% PHILEQUITY PSE INDEX FUND INC. -A 4.9364 -5.14% 1% -0.88% -5.5% PHILIPPINE STOCK INDEX FUND CORP. -A 824.15 -5.1% 0.95% -1.04% -5.5% SOLDIVO STRATEGIC GROWTH FUND, INC. -A 0.7767 -13.36% -2.9% -4.93% -8.77% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC. -A 3.9303 -7.84% 0.18% -1.83% -6.62% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC. -A 0.9459 -5.34% 0.79% N.A. -5.49% UNITED FUND, INC. -A 3.4759 -4.5% 2.28% -0.1% -4.86% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC. -A,C 110.6106 -4.76% 1.65% -0.11% -5.42% ATRAM ASIAPLUS EQUITY FUND, INC. -B $1.0069 1.99% 3.48% 0% -2.09% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC. -A $1.4316 16.02% 9.54% N.A. 3.84% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC. -A 1.5284 -10.63% -3.79% -4.93% -2.2% ATRAM PHILIPPINE BALANCED FUND, INC. -A 2.0951 -8.29% -2.7% -2.68% -3.94% FIRST METRO SAVE AND LEARN BALANCED FUND INC. -A 2.559 -2.27% 0.78% -2.66% -2.76% FIRST METRO SAVE AND LEARN F.O.C.C.U.S. DYNAMIC FUND, INC. -A,5 0.2173 N.A. N.A. N.A. -4.9% NCM MUTUAL FUND OF THE PHILS., INC. -A 1.929 1.53% 1.75% -0.19% -1.74% PAMI HORIZON FUND, INC. -A 3.6921 2.18% 0.71% -1.19% -2.56% PHILAM FUND, INC. -A 16.5071 0.92% 0.57% -1.29% -2.67% SOLIDARITAS FUND, INC. -A 2.073 -3.08% 0.24% -0.5% -2.48% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC. -A 3.7085 -2.43% 0.91% -1.01% -4.02% SUN LIFE PROSPERITY ACHIEVER FUND 2028, INC. -A,D,2 0.9883 0.59% N.A. N.A. -2.7% SUN LIFE PROSPERITY ACHIEVER FUND 2038, INC. -A,D,2 0.9552 -2.08% N.A. N.A. -4.13% SUN LIFE PROSPERITY ACHIEVER FUND 2048, INC. -A,D,2 0.9495 -2.6% N.A. N.A. -4.4% SUN LIFE PROSPERITY DYNAMIC FUND, INC. -A 0.9263 -3.77% 0.01% -2.41% -4.98% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC. -A $0.03903 9.36% 3.46% 2.21% 2.09% PAMI ASIA BALANCED FUND, INC. -A $1.0323 5.81% 3.67% 0.73% -0.54% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC. -A $4.0281 12.45% 7.51% 4.29% 3% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC. -A,7 $1.1524 8.81% 4.48% N.A. 2.09% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC. -A 359.05 3.9% 2.71% 2.26% 0.35% ATRAM CORPORATE BOND FUND, INC. -A 1.9086 2.52% 0.5% -0.63% 0.35% COCOLIFE FIXED INCOME FUND, INC. -A 3.1376 4.9% 5.17% 5.16% 0.68% EKKLESIA MUTUAL FUND INC. -A 2.2388 4.33% 2.15% 1.85% 0.62% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC. -A 2.3661 6.25% 2.22% 1.36% 0.3% PHILAM BOND FUND, INC. -A 4.3946 12.01% 2.34% 1.58% 0.5% PHILEQUITY PESO BOND FUND, INC. -A 3.787 5.83% 2.83% 1.35% -0.03% SOLDIVO BOND FUND, INC. -A 0.9727 6.91% 1.4% 0.21% 0.87% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC. -A 3.0917 9.19% 4.19% 2.38% 0.51% SUN LIFE PROSPERITY GS FUND, INC. -A 1.7014 8.2% 3.56% 1.77% 0.02% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. -A $471.7 4.57% 2.75% 2.74% 0.74% ALFM EURO BOND FUND, INC. -A Є221.1 3.04% 1.84% 1.32% 0.62% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC. -B $1.2164 5.91% 3.16% 2.42% 0.76% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC. -A $0.026 4% 1.45% 1.36% 0.78% PAMI GLOBAL BOND FUND, INC -A $1.109 5.59% 1.48% -0.02% 1.26% PHILAM DOLLAR BOND FUND, INC. -A $2.4606 10.76% 3.93% 3.11% 2.36% PHILEQUITY DOLLAR INCOME FUND INC. -A $0.0608259 5.84% 2.35% 1.93% 0.85% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC. -A $3.2587 11.14% 3.6% 2.96% 2.63% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC. -A 126.42 3.88% 2.95% 2.24% 0.51% FIRST METRO SAVE AND LEARN MONEY MARKET FUND, INC. -A,3 1.0315 2.92% N.A. N.A. 0.51% PHILAM MANAGED INCOME FUND, INC. -A 1.2573 6.03% 3.08% 1.69% 0.05% SUN LIFE PROSPERITY MONEY MARKET FUND, INC. -A 1.27 3.63% 2.94% 2.45% 0.43% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC. -A $1.0398 2.01% N.A. N.A. 0.25% FEEDER FUND PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM GLOBAL MULTI-ASSET INCOME FUND INC. -B,D,4 $1 N.A. N.A. N.A. 1.01% A - NAVPS AS OF THE PREVIOUS BANKING DAY. B - NAVPS AS OF TWO BANKING DAYS AGO. C - LISTED IN THE PSE. D - IN NET ASSET VALUE PER UNIT (NAVPU). 1 - LAUNCH DATE IS JANUARY 3, 2019. 2 - LAUNCH DATE IS JANUARY 28, 2019. 3 - LAUNCH DATE IS FEBRUARY 1, 2019. 4 - LAUNCH DATE IS NOVEMBER 15, 2019. 5 - LAUNCH DATE IS SEPTEMBER 28, 2019. 6 - RENAMING WAS APPROVED BY THE SEC LAST OCTOBER 12, 2018 (FORMERLY, ONE WEALTHY NATION FUND, INC.). 7 - ADJUSTED DUE TO STOCK DIVIDEND ISSUANCE LAST OCTOBER 9, 2019. 8 - LAUNCH DATE IS DECEMBER 09, 2019. "While we endeavor to keep the information accurate, the Philippine Investment Funds Association (PIFA) and its members make no warranties as to the correctness of the newspaper’s publication and assume no liability or responsibility for any error or omissions. You may visit http://www. pifa. com.ph to see the latest NAVPS/NAVPU."

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Banking&Finance BusinessMirror

Social Security System released over ₧3.5B in loans for retired pensioners

HE state-run Social Security System (SSS) announced it has released over P3.5 billion in loans for retiree pensioners under a program on pension loan that it said was “enhanced.” In a statement on Thursday, SSS President and Chief Executive Officer Aurora C. Ignacio said the loans benefited 105,365 retireepensioners. Under the “Enhanced Pension Loan,” or EPL, program, qualified pensioners can borrow up to 12 times their pension or a maximum of P200,000. This is payable in a maximum of 24 months with a one month grace period. “Now that they can borrow a larger amount, which depends on their qualifications, we are expecting an increase in the number of retiree-pensioners who will avail of the program in the coming days,” Ignacio said. Ignacio said the SSS Diliman, Quezon City, branch released the highest amount of approved pension

loan at P155.08 million for 4,388 approved applications. Data showed that SSS Bacolod posted the most number of approved applications with 5,137 amounting to P132.76 million loan releases. Other branches that were included in the top five branches with the highest loan disbursements are SSS Cebu with 3,258 approved pension loans amounting to P112.99 million. Also included were SSS Bacoor branch with 2,576 approved pension loans which adds up to P94.30 million and SSS Davao with 2,882 approved pension loans for a total of P89.38 million. “We would like to remind our qualified retiree pensioners that they may get 12 times of their BMP [basic monthly pension] plus the P1000 additional benefit, provided that they will still be receiving a substantial amount from their BMP,” Ignacio said. “We do not want their BMP to end up as full loan collaterals; very different from those lending companies

who get their whole monthly pension as payment for the loan,” she added. Under the new guidelines, retiree pensioners who are 85 years and below at the end of the month of the loan term are now qualified to apply for the EPL program. This is provided that they have no outstanding loan balance and benefit overpayment payable to SSS from their monthly pension. They must not have existing advance pensions under the SSS calamity package and must be receiving their regular monthly pension for at least one month. Their pension status must also be “active.” Under the EPL program guidelines, the pensioner-borrower may apply for a loan equivalent to three times, six times, nine times or 12 times of their BMP plus the P1,000 additional benefit. Launched in September 2018, the EPL program aims to provide immediate financial assistance to pensioners who are in need of additional cash aside from their BMP. Cai U. Ordinario

Friday, February 21, 2020 B3

Value of goods impounded by BOC hits P821.15 million

By Recto Mercene

@rectomercene

HE Bureau of Customs (BOC) said it has impounded in 2019 prohibited commodities with an estimated value of P821.15 million, of which about P430 million represents the value of two seized aircraft while P308 million representing illegal drugs seized. The latter represents nearly half of the total value of illegal drugs seized by the BOC if 2018 seizures were included. About P82 million of the goods

impounded represents the value of meat and meat products the BOC intercepted. These were seized due to lack of sanitary and phytosanitary import clearance, the BOC said.

The Bureau said it also intercepted illegal wildlife species, cellular phones without permit from the National Telecommunications Commission, beauty products deemed not for human use, and guns and ammunition lacking proper permits. These achievements earned awards for the Airport District Collector Carmelita M. Talusan last February 7 during the BOC 118th Founding Anniversary celebrations in Manila. For the close to two months of 2020, the port has already seized P29.5-million worth of illegal goods from the different bonded warehouses of the premier airport. Talusan vowed to continuously protect the country against the entry of illegal and the various prohibited commodities.

Bank Indonesia resumes rate cuts Megawide signs ₧5-B notes facility amid growing concerns over virus M

NDONESIA’S central bank cut its benchmark interest rate after a three-month pause, and lowered the growth forecast as the spread of the coronavirus disease of 2019 (Covid-19) threatens the outlook for Southeast Asia’s biggest economy. Bank Indonesia lowered the seven-day reverse repurchase rate by 25 basis points to 4.75 percent last Thursday, joining a string of other central banks around the region that have eased policy in recent weeks to counter the impact of the virus. Nineteen of the 31 economists in a Bloomberg survey predicted the central bank’s move while the rest saw no change. Indonesia is yet to record a single case of the deadly virus but officials have become increasingly worried about a slump in trade and tourism after China shut factories to contain the outbreak and both countries restricted travel. Bank Indonesia’s resumption in rate cuts after four reductions last year comes on top of a fiscal boost from the government to cushion the economy, which was already slowing last year because of the US-China trade war. The central bank on Thursday lowered its forecast for global growth to 3 percent from 3.1 percent, and sees the domestic economy expanding 5 percent-5.4 percent this year compared to a previous range of 5.1 percent-5.5 percent. Bank Indonesia will “keep a close watch on global and domestic

THE courtyard of Bank Indonesia headquarters in Jakarta, Indonesia. BLOOMBERG

economic developments in utilizing an accommodative policy mix space,” Governor Perry Warjiyo said, signaling the latest cut may not be the last in the current easing cycle. The board remains concerned about a hit to trade and investment from the virus, he said. Foreign exchange revenue from tourism was likely to fall by $1.3 billion, the governor said, adding that provisions related to the macroprudential intermediation ratio would also be adjusted in a bid to boost lending by commercial banks. The central bank also cut its 2020 forecast for credit growth to 9 percent-11 percent from 10 percent-12 percent previously. The yield on Indonesia’s 10-year government bonds was little changed after the decision, while the rupiah

was headed for its biggest drop in more than two weeks. “The new 2020 growth forecast of BI still looks optimistic to me considering the risks from Covid-19,” said Euben Paracuelles, an economist at Nomura Holdings Inc. in Singapore. “I’m therefore keeping my forecast that BI cuts again by another 25 basis points in the second quarter as growth disappoints, and we’re still not seeing clear indications of more fiscal support.” Finance Minister Sri Mulyani Indrawati said last Wednesday the virus outbreak will curb growth and put government revenue under pressure. The Trade Ministry has also warned of a deeper hit to exports, which already slumped in January, putting the current account deficit at risk. Bloomberg News

EGAWIDE Construction Corp. on Thursday said it signed a P5-billion corporate note facility, the proceeds of which it will use to retire maturing debt obligation, fund growth projects and for general corporate purposes. The company said its debt papers were priced at the lowest range of the guidance during the book building process. “The lower spreads for the new instrument reflect the significantly reduced risks for Megawide from the time we secured the loan seven years ago, when we were just a pure construction play,” Edgar Saavedra, the company’s chairman and CEO, said. “With the addition of airport and land-port operations, our cash

The company listed its series A (three-month paper worth P769 million that will mature in March), series B (six-month debt worth P545 million maturing in August) and series C (one year notes worth P685 million). Cirtek’s listing at the PDEx came after it reported its income fell 67 percent during the nine months of 2019 to $3.7 million from the previous $11.08 million on declining sales from Quintel, the US unit it acquired in 2017. Revenues fell 21 percent to $69.6 million from the previous $88.5 million, mainly as a result of Quintel’s contribution that fell by half to just $23.6 million. Revenues from its antenna manufacturing business, which includes radio frequency hardware, also fell 59 percent to just $16.4 million from $39.8 million in 2018. Cirtek’s semiconductor business also decreased by 16 percent to $29.6 million from $35.3 million.VG Cabuag

UN Life of Canada (Philippines) Inc. (SLCPI) announced it has paid a total of P4.7 billion in claims and maturities in 2019. In a statement, the wholly owned subsidiary of Sun Life Financial Inc. (SLFI) said the amount comprises of individual death and living benefit claims, group benefits and maturities in life insurance and pre-need. “The payment of claims and maturities is the fulfillment of our promise to the clients,” Sun Life Philippines CEO and Country Head Benedict Sison was quoted in the statement as saying. The announcement came after SLFI credited the increase in its Asia wealth sales of $2.1 billion—“an increase of $185 million or 10 percent”—as “driven by money market sales in the Philippines and growth in the pension business in Hong Kong, largely offset by lower mutual fund sales in India.”

than expected conversion of construction revenues. “Finance costs are also expected to taper off with loan take outs and possible refinancing at lower interest rates,” Saavedra said. The consortium of Megawide, Hyundai Engineering & Construction Co., Ltd. and Dong-Ah Geological Engineering Co. Ltd. recently submitted the best bid for Package 1 of the Malolos-Clark Railway Project. “We also see our transport-oriented assets thriving in 2020, with airport operations reaping the benefits of our strategic marketing and route development initiatives and the continuous improvements in Cebu’s infrastructure, and landport commercial operations reaching full capacity,” Saavedra said. VG Cabuag

Las Piñas earns seal of good financial housekeeping

HE Department of the Interior and Local Government conferred to the city of Las Piñas the Seal of Good Financial Housekeeping (SGFH) for 2019. The SGFH recognizes the compliance of the local government unit with accounting and auditing standards, rules and regulations. It is a measure of transparency and accountability in its financial transactions. Las Piñas has received the SGFH for the past two consecutive years. Mayor Imelda T. Aguilar said in a statement that “the certification is a validation of our efforts in spending public funds efficiently and wisely.” “Because of the wise spending we are able to provide services that are beneficial to our residents,” Aguilar added. The criteria include “Unqualified or Qualified Commission on Audit Opinion” of the immediately preceding year as well as “Compliance with the Full Disclosure Policy of Local

Cirtek lists P2-B paper at PDEx Sun Life maturities, claims paid in 2019 total to ₧4.7B L AGUNA-BASED Cirtek Holdings Philippines Corp. on Thursday raised some P2 billion worth of commercial papers and listed the debt at the Philippine Dealing and Exchange (PDEx) Corp. for trading. “This is an auspicious day for Cirtek as we celebrate our first fixed income instrument listing with the PDEx,” the company said in a statement. “This is a historic milestone for the company.” Multinational Investment Bancorp. acted as sole arranger and lead underwriter for the deal. The company said proceeds of the debt offer will be used to partially retire its short-term obligations maturing this year and refinance working capital of its subsidiaries Quintel USA, Cirtek Electronics Corp. and Cirtek Advanced Technologies and Solutions Inc. as it want to take part in the 5G bandwagon, or the fifth generation in telecommunication technology.

flows have improved considerably and our income streams have become stronger, more stable and predictable.” In terms of market reception, the facility attracted, and was participated in, by some of the largest financial institutions in the country, resulting in a 1.5-times oversubscription for the issuance, the company said. BPI Capital Corp. was the mandated lead arranger and book-runner of the issue. Megawide’s income for the nine months of 2019 fell by half to P835.16 million from the previous P1.72 billion due to the expected increase in group-wide finance costs, associated with new loan drawdowns for existing operations and expansion purposes, as well as the slower

In its disclosure to the Philippine Stock Exchange, SLFI also said that “the increase in mutual fund sales in the fourth quarter of 2019 and in 2019 was primarily driven by increased sales in…the Philippines in Asia and Canada.” The company claims that it “continues to have one of the fastest turnaround times in the life insurance industry, where it can pay incontestable claims up to P5 million within three hours, so long as all the requirements are met.” According to Sison, Sun Life continuously explores ways to further improve its service, as a way of nurturing its partnership with clients. “We aim to offer quality advice, holistic and relevant solutions, reliable service, and meaningful interactions,” he said. “Sun Life will always strive to prove worthy of our clients’ trust and support.”

Budget and Finances, Bids and Public Offerings” such as annual budget, statement of receipts and expenditures, annual procurement plan or procurement list, and bid results on civil works, goods and services and consulting services, among others. “Good Financial Housekeeping” falls under financial administration, one of the seven assessment areas for a local government unit to be awarded the “Seal of Good Local Governance.” “Our good performance in financial transparency is a manifestation of our vision” of a progressive city, Aguilar was quoted in the statement as saying.

B4 Friday, February 21, 2020

Lumina Homes recognized as ‘Top 1 Developer’ by Pag-Ibig Fund

The Dalmore unveils rare single malt whisky aged 51 years

N a country where real estate has been booming for the last decade, particularly in the luxury residential and commercial segments, one company is making sure that no Filipino family gets left behind –– Prima Casa Land & Houses, Inc.’s Lumina Homes. According to the Subdivision and Housing Developers Association, Inc. (SHDA), an alliance of over 200 private housing developers, there is a massive housing deficit of 3.9 million units, which could rise up to 6.5 million in 2030 if the issue is not addressed. Lumina realized this issue as early as 2012 and has since developed over 50 projects nationwide to reach thousands of Filipinos in need of affordable housing. Lumina was recently recognized by Pag-IBIG Fund as “Top 1 Developer” among its accredited developers in terms of housing loans takeout at the 2019 Pag-IBIG Fund Chairman’s Report held last Feb. 7, 2020 at the Philippine International Convention Center (PICC) in Pasay City. Lumina also received a special award for having the “most number of Pag-IBIG

Fund housing borrowers served” for 2019. Lumina President and COO Estrellita S. Tan thanks Pag-IBIG Fund for continuously finding ways to address issues and concerns through relevant and timely reform initiatives to address the growing housing backlog and contribute to the development of the countryside. “Pag-IBIG Fund has truly given us the confidence to embrace an aggressive

stance to expand across the country and to fulfill our commitment to build affordable communities and realize the Filipino dream of home ownership. We look forward to our continuing partnership and better linkage to further strengthen the industry,” she says, adding that Lumina is excited for the full implementation of Pag-IBIG Fund’s virtual platform, under the leadership of its president, Mr. Acmad Moti.

GrabFood unveils first GrabKitchen in the Philippines & its exclusive food bundles

GRAB PHILIPPINES OFFICERS FROM LEFT: Country Marketing Head RJ Cabaluna, President Brian Cu, and GrabFood Country Head EJ Dela Pena at the GrabKitchen launch

RABFOOD, the leading online food delivery platform in the Philippines, unveils its first ever GrabKitchen in the country, as well as exclusive food bundles in partnership with 150 merchants to promote more shared food moments this season of love. To celebrate this season of love, GrabFood invites its consumers to share meals with their loved ones and savor moments of togetherness. “Sharing meals is a big part of Filipino culture— syempre, masarap pag sama-sama, especially during celebrations like Valentine's. That's why GrabFood is making it more convenient and

affordable for consumers to share meals with the ones they love with the launch of GrabKitchen and our new GrabFood bundles,” said GrabFood Head EJ Dela Vega. For merchant-partners and MSMEs, GrabKitchen is a cost-efficient way to expand the geographic area they serve and reach more consumers using technology. Cloud kitchens can also lower their cost of operations by eliminating high capital investments like rental costs, which is one of the most expensive expansion constraints for merchant-partners. GrabKitchen located at Glorietta 2 features six merchant-partners such as

Omakase, Mister Kabab, 24 Chicken, Recovery Food, and Frank and Dean all of which do not have a physical store in Makati City, and CoCo Fresh Tea and Juice that has seen such a significant increase in sales, prompting it to expand its delivery-only operations in GrabKitchen. The flagship GrabKitchen store also has an in-store dining capability that offers unique digital experience through self-order kiosk. GrabKitchen was first introduced in Indonesia in 2018 and has since become the largest regional cloud kitchens operator in Southeast Asia. GrabKitchen has over 50 branches in Southeast Asia including Indonesia, Thailand, Vietnam, Singapore, and the Philippines. In the Philippines, GrabFood is looking at expanding to at least four more locations by 2020. Mindful of the important role that food plays in bringing more shared moments, GrabFood, through its campaign called ‘Masarap ‘pag sama-sama,” offers consumers a more accessible and affordable way to enjoy group dining.

luxury multi bedroom villas. “It is difficult to earn a Forbes Travel Guide rating, and all our Star-Rated winners have shown how incredibly deserving they are of their accolades by demonstrating sheer dedication in their

with the iconic 12-point ‘Royal’ stag in Sterling silver and crowned with a crystal stopper, each bottle pays homage to The Dalmore’s Royal heritage., suggested RRP £55,000. Richard Paterson, Master Distiller at The Dalmore, said: “The Dalmore 51 Year Old is a noble single malt of rare profundity and it has been my pleasure to closely follow its maturation over five decades. I am always looking towards the future and I carefully consider how each distillation will evolve, moving our spirits to new wood to transform their conclusion. The Dalmore 51 Year Old is a fine example of this.”

yFACTph to hold its annual social media summit in March

HE Young Filipino Advocates of Critical Thinking (yFACTph), an organization of youth leaders advocating for responsible social media use, will hold #FACTPHnow, an annual social media summit from March 13 to 14 at Far Eastern University Manila. The 3rd installment of #FACTPHnow aims to train organizations and individuals around the Philippines on efficient and effective ways they can utilize social media to promote social good. It will gather speakers from various sectors to discuss issues that are present in social media, and it includes breakout workshops on different topics of interest, hoping to inspire the youth of today to use

social media in a more responsible manner. The speakers include TV and online personality Richard Juan, Rappler multimedia reporter Rambo Talabong, ABSCBN entertainment journalist MJ Felipe, ANC 24/7 anchor Migs Bustos, and Metro Manila Pride co-coordinator Nicky Castillo, among others. Interested participants may register at tinyurl.com/FACTPHNOW2020 for P500 inclusive of a delegate kit, lunch, and snacks. Limited slots are available on a first-come, first-served basis. Walk-in registrations will not be entertained. Those interested may also email yfactph@gmail.com. John Philip Bravo

GrabFood has also launched its latest video highlighting how GrabFood helps bring people together over shared food.

Okada Manila joins the elite of the world’s best resorts, receives inaugural five-star rating from Forbes Travel Guide KADA Manila, Asia’s largest ultra-luxury integrated resort, received the prestigious five star rating from Forbes Travel Guide’s (FTG) 2020 Star Awards. “We are delighted and extremely honored to receive the highest accolade in the hospitality industry and join the league of the finest hotels in the world. We aim to continue on this path of excellence,” shares Okada Manila President and Co-Vice Chairman Takashi Oya. Okada Manila continues to make great stories with this new Forbes fivestar rating. Known as “Manila’s grand icon,” the integrated resort is carved on 44 hectares of picturesque oceanfront and is gaining widespread popularity as a prime entertainment and hospitality destination in the region. The integrated resort is home to an indoor beach club, exceptional accommodations, 13 fine dining restaurants, a diverse selection of retail stores, world-class spas, and ultra-

HE Dalmore has recently unveiled a rare 51 Year Old single malt, a masterpiece whisky which has evolved and matured over half a century; expertly composed using the world’s most exquisite casks. Only 51 bottles of this limited-edition release have been created, each beautifully presented in a crystal decanter and high gloss presentation case. This latest release is The Dalmore’s first of the new decade, and reflects the distillery’s pioneering spirit and the enduring legacy of its 180-year history. Presented in a striking decanter and adorned

passion for service," said Filip Boyen, CEO of Forbes Travel Guide. To view the full Star Ratings for 2020, visit ForbesTravelGuide.com. To learn more about Okada Manila, visit www. okadamanila.com.

Okada Manila celebrates its inaugural Forbes 5-star rating with thanksgiving party on February 13. Okada Manila’s team, from left: Co-Vice Chairman Antonio Cojuangco, President and Co-Vice Chairman Takashi Oya, Senior Vice President for Hotel Operations Ivaylo Ivanov, Senior Vice President for Food and Beverage Koji Fujishiro, and Vice President for Corporate Marketing and Communications Noritada Shimizu.

SARANGANI TO BUILD MORO RESOURCE CENTER. Sarangani Governor Steve Chiongbian Solon (5th from left) presents the certificate of award to Saidi Saidona (4th from left) for topping the the 24th Regional Qur’an Reading Competition held recently at the provincial capitol gymnasium in Alabel town. The tilt is part of the groundbreaking of the P3-million Moro Resource Center which will be a venue for Moro initiatives of the provincial government, showcase Moro culture through the display of ancestral heirlooms, and house the education programs of the Sarangani Madaris Federation. In photo at the awarding are National Commission on Muslim Filipinos Commissioner for Youth Samer Allong; Atty. Ryan Ramos, chief of staff of Cong, Ruel Pacquiao; NCMF Director for Bureau of Muslim Cultural Affairs Laman Piang; Saidona, Gov. Solon, NCMF Commissioner for Ulama Abdulhadi Daguit, and Sangguniang Panlalawigan members Member Tranquilino Ruiz and Jess Bascuna. Saidona, who hails from South Cotabato, will represent Region 12 in the National Qur’an Reading Competition in Manila set in March.

DLSU's I-Nano facility embarks on DOST’s spacesuit project

E La Salle University’s I-Nano Solutions, a research facility committed to developing nanotech products and services for both industry and society, has embarked on a Php15 million collaborative, Department of Science and Technologyfunded project on abaca fabric for spacesuits application. DLSU is undertaking the project in collaboration with Technological University of the Philippines, FEATI University, Philippine Nuclear Research Institute, and the Philippine Textile Research Institute. Entitled “Fabrication and Characterization of Hydrophobic Nanocomposite Plated Abaca Fabric for the Enhanced Electromagnetic Interference Shielding (EMI-SE) and Thermal Resistance (TR) for Spacesuits Application,” the project seeks to produce a less expensive but competitive Thermo Mechanical Garment (TMG).

TMG is the outermost layer worn by a space explorer. Also, it is responsible for the protection from electromagnetic waves and extreme temperature changes. The study aims to fabricate a layered structure of fabric out of Abaca fibers coated by nanocomposite material for electromagnetic interference shielding and thermal resistance. “Since 1960s, when extra vehicular activity (EVA) has been introduced, there is a higher demand for more protective and mobile spacesuits for space explorers. Exposure to harmful electromagnetic waves and extreme temperature condition in the outer space are the most life-threatening factors to consider in designing spacesuits,” according to Dr. Gil Nonato Santos, Vice Chancellor of the DLSU Laguna Campus and head of the I-Nano team. Funded by the DOST EXECOM, the research broke ground this February and is set for completion by January 2022.

Sports BusinessMirror

| Friday, February 21, 2020 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

VIROLOGIST: NO EFFECTIVE PLAN TO FIGHT VIRUS T

By Stephen Wade The Associated Press

OKYO—A respected Japanese virologist on Wednesday said if the Tokyo Olympics were tomorrow, the games probably couldn’t be held because of the fast-spreading virus from Wuhan, China. “We need to find the best way to have a safe Olympics,” Dr. Hitoshi Oshitani said, speaking at the Foreign Correspondents Club of Japan. “Right now we don’t have an effective strategy, and I think it may be difficult to have the Olympics [now]. But by the end of July we may be in a different situation.” The local Tokyo Olympic organizing committee and the International Olympic Committee have repeatedly said over the last few weeks that they are following the advice of the World Health Organization (WHO), and that the games will go on. But with every passing day, the impact of the virus seems to spread, and so does the fallout: Olympic qualifying events are canceled or postponed, travel gets difficult, and athletes and families are left wondering. Not to mention, sponsors and broadcasting networks that have invested billions of dollars in the Olympics. The modern Olympics dating from 1896 have only been canceled during wartime, and in 1980 and 1984 they went on with boycotts. Oshitani, a former adviser with the WHO who worked on the SARS outbreak almost 20 years ago, was hopeful but sowed some uncertainty about the July 24 to August 9 Olympics. “I’m not sure [of] the situation in Japan at the end of July,” he said, answering in English. “But probably we will not have large outbreaks in Japan in July.” Oshitani said he was most concerned about a “Wuhan-type” of outbreak taking place in Africa or other parts of Asia, and having cases imported into Japan. He said if that happened “it may get difficult to have” the Olympics. But he also suggested Japan might be able to handle it. “So what we have to do now is try to prevent such a thing from happening,” he added, saying the Japanese government should support countries so they don’t have “that kind of situation.” The viral outbreak has infected more than 75,000 people globally. China has reported 2,004 deaths among 74,185 cases on the mainland, mostly in the central province of Hubei. Only one death in Japan has been attributed to the virus. Earlier in the week, Shigeru Omi, a former regional director of the WHO and an infectious disease expert from Japan, also said he could not be sure about the Olympics. “Whether the outbreak will last until the Olympic date or not depends upon the virus, and the societal effort and joint international community,” he said at a news conference. “Nobody can predict whether we can contain the virus, or put an end to this outbreak before the Olympics start. That’s anybody’s guess.” He added it was not a “big question mark, but there is a question mark.” In the spotlight are 19 test events that Japan is to hold beginning next month, a chance for organizers to practice in competition mode and an opportunity for potential Olympic athletes to check out Japan. In a cancellation Wednesday, the Kyodo news agency reported that Mongolia’s archery team had pulled out of a training camp in

RYAN NEWMAN and his daughters, Brooklyn Sage (left) and Ashlyn Olivia, leave the Halifax Health Medical Center on Wednesday. AP

Ryan Newman recovers rapidly, leaves hospital 42 hrs after frightening crash

HARLOTTE, North Carolina—Ryan Newman was released from a Florida hospital Wednesday, about 42 hours after his frightening crash on the final lap of the Daytona 500. Roush Fenway Racing released a photo of Newman leaving a Daytona Beach hospital holding the hands of his two young daughters. The announcement came just a few hours after the team said he was fully alert and walking around the hospital. The 42-year-old Indiana native was taken by ambulance directly from the track in serious condition following the crash Monday night. Doctors said two hours after the accident that Newman’s injuries were not lifethreatening, but no details have been released. His release from the hospital was rapid. Roush Fenway said earlier Wednesday that Newman “continues to show great improvement.” The team added that “true to his jovial nature, he has also been joking around with staff, friends and family while playing with his two daughters” and included a photo of Newman standing in a hospital gown, smiling with his arms around the girls. Two hours later, he was leaving the hospital in jeans, a t-shirt and socks, holding hands with his girls. The team released a third photo of Newman and his daughters with the staff that treated him following his crash. “First and foremost, our focus remains with Ryan and his family as he continues to recover,” Roush Fenway president Steve Newmark said. “We also want to express our sincere gratitude to all of those who have offered support, and taken the time to send their thoughts and prayers to Ryan, his family and everyone at Roush Fenway Racing.” “The Nascar community has long prided itself on being a close-knit family. That is never more evident than during these types of moments.”

Added team principal owner John W. Henry: “All of us at Fenway Sports Group are thankful for the wonderful news about Ryan’s progress, and his release from the hospital today. Ryan is one tough hombre and we wish him a full recovery. We look forward to seeing Ryan and his family at the track again soon.” Roush Fenway said Ross Chastain will pilot the No. 6 Ford beginning this weekend at Las Vegas Motor Speedway, and that a timetable for Newman’s return has yet to be determined. Chastain is running for the Xfinity Series championship this year for Kaulig Racing, but drove in the Daytona 500 last weekend for Spire Motorsports in a car fielded by Chip Ganassi. “We want to express our appreciation to everyone at Chip Ganassi Racing, as well as Kaulig Racing for allowing Ross to fill in for Ryan in the No. 6 on such short notice,” Newmark said. Chastain, an eighth-generation watermelon farmer, is gradually trying to move into Nascar’s top Cup Series. He’s got 72 career Cup starts for small teams but has been waiting for a break in competitive equipment. Chastain has won three times in the Truck Series and twice in the Xfinity Series, including a win at Las Vegas in 2018. “No one could ever take the place of Ryan Newman on the track, and I can’t wait to have him back,” Chastain tweeted. “As we continue to pray for a full and speedy recovery, I’ll do my best to make him and everyone at Roush Fenway Racing proud.” Newman was injured when he crashed while leading Nascar’s biggest race. Contact from Ryan Blaney sent Newman spinning into the wall and his Ford went airborne, where it was then hit by Corey LaJoie in the driver side door. AP

RESPECTED Japanese virologist Hitoshi Oshitani speaks during a press conference, as people wear masks as they commute during the morning rush hour in Chuo district in Tokyo. AP

Japan’s central Aichi prefecture. Dozens of sports events have been called off around Asia in the wake of the outbreak, including the indoor world track and field championships next month in Nanjing, China, and the Formula One race in April in Shanghai. Organizers announced last week that next month’s Tokyo Marathon will be limited to elite runners and wheelchair athletes. About 38,000 runners had been expected to participate in one of the world’s largest races. A test event for Tokyo 2020 scheduled for later this month that would have involved some non-Japanese athletes, meanwhile, is being revamped because of fear of the spreading virus from China. It’s now limited to only Japanese athletes with the Olympics just over five months away. The two-day test event opens at the new Ariake Arena on February 28, and is relatively obscure—a Paralympic test for boccia, a precision ball sport similar to bocce and related to lawn bowling. It’s the first of 19 remaining test events before the Olympics are to open on July 24. They will be watched closely, as will the start of the torch relay on March 26 in Fukushima, a prefecture devastated nine years ago by an earthquake, tsunami and the meltdown of three nuclear reactors. The test events may reveal what effect the spreading virus is having on Olympic preparations, and the ability of non-Japanese athletes to safely enter Japan. They could also shine a spotlight on Chinese athletes and serve as a reminder that the next Olympics—the Winter Olympics—are in Beijing in 2022. The deaths in Japan of three Japanese have been attributed to the fast-spreading virus. The viral outbreak has infected more than 75,000 people globally, and has been attributed to over 2,000 deaths in China. “Obviously, that [test event] is going to be modified, but the test event will go ahead,” Tokyo spokesman Masa Takaya told The Associated Press. In a statement by Tokyo 2020, it quoted the Japan Para Sports Association saying “the JPSA has concluded that further time is necessary to fully analyze the potential impacts” that the virus might have on athletes. Takaya said the next tests that are scheduled to have an international field include a wheelchair rugby test from March 12 to 15, and gymnastics test events from April 4 to 6. The gymnastics events are partly organized by FIG, the world governing body of gymnastics; the Japan Gymnastics Association; and local organizers. Takaya said there were no plans to postpone or cancel any test events. “No, no, no, no, never,” he said. However, he could not guarantee that non-Japanese athletes would take part in the wheelchair and gymnastics events. It’s possible they might go ahead, as boccia has, with only non-Japanese. “We still don’t which athletes are competing,” Takaya said. “When it’’s the most appropriate time, we will release the participants information.” His response was the same about all other test events. The last is scheduled to end May 6. The cancellation of Olympic qualifying events wreaks havoc with athletes waiting to advance, organizers and federations forced to find new venues—not to mention disrupting hotel reservations, airplane flights and ticket reservations.

Spo

Business

C2 Friday, February 21, 2020

WILDER-FURY II: ONE BIG FIGHT L

AS VEGAS—To hear the fighters talk, the heavyweight title fight Saturday night between Deontay Wilder and Tyson Fury is so big it took two TV networks to make it happen. That’s only partially true, though it might be forgiven. This is boxing, after all, and a bit of hyperbole goes a long way toward selling a fight. What is true is that ESPN and Fox Sports had to come together if the heavyweight showdown at the MGM Grand hotel was to happen. And it’s also true that both networks are blanketing the airwaves this week like never before in an effort to get people to dig into their pockets for the $79.99 cost to watch the fight at home. In the end the attention being paid the fight is good for a sport—and a heavyweight division—that is suddenly a mainstay again on America’s sports networks. “Quite frankly this hasn’t happened in a long time. We believe this sport is on the right path,” said Bill Wanger, executive

vice president of programming, research and content strategy for Fox Sports. “It continues the evolution of our boxing program with PBC [Premier Boxing Champions] where we’re mounting a charge to bring boxing back to the masses and create stars out of these fighters.” To be sure, Wilder and Fury were already stars in their sport. The two fought to a draw 14 months ago in an entertaining fight in Los Angeles, and they’re both unbeaten and arguably the two best heavyweights in the world at the moment. But the constant drumbeat of programming by both networks in the days leading up to the fight—ESPN is even running a special produced by Fox—should make both fighters more well known outside of their sport. It also will make them much wealthier if the pay-per-view buys are anywhere near the level of publicity. “There’s never been a fight ever that’s been publicized like this,” said Bob Arum, the fight’s copromoter who has been promoting fights since Muhammad Ali was in his prime. “I mean we even had two Super Bowl commercials, when did that happen?”

JOHN BEILEIN admits the losing has beaten him. AP

NDEPENDENCE, Ohio—John Beilein stood in front of the Cavaliers and emotionally explained why he’s leaving. This was goodbye. But even on his way out, the admired coach gave his players one last lesson.

For fight week, that means interviews and shows previewing the clash and the broadcast of Wednesday’s prefight news conference on both ESPN2 and Fox Sports 1. The networks will also both air Friday’s weigh-in, the press conference in the ring after the fight and a portion of the undercard itself. To get the main event, though, will not be cheap. Both networks are counting on the massive publicity to prompt people into inviting a few friends over and splurging on the fight. While neither network is willing to predict just how many households the fight will do (Arum says he’s hoping to get near 2 million buys), it will likely be the biggest boxing pay-per-view since Manny Pacquiao and Floyd Mayweather Jr. teamed up—in another network cross-promotion—to sell 4.6 million for their 2015 fight. “We don’t talk about projections but what I can say is that this fight has captured the attention and imagination of not only boxing fans but casual sports fans,” said Matt Kenny, vice president of programming and acquisitions for ESPN. “Both of these fighters have shown an

ability to really transcend the sport.” So far, though, neither has shown the ability, so far, to sell pay-per-views in large numbers, which makes projections tricky. Their first fight did a little more than 300,000 buys on Showtime, though at the time few in America knew much about Fury. The networks aren’t just combining to promote and show the fight from the MGM Grand hotel in Las Vegas. Ordinarily heated rivals competing against each other for event rights and viewers, they’re also teaming up on the production and mixing their talent for the actual broadcast. The formula worked for Showtime and HBO for the Mayweather-Pacquiao fight, and while the heavyweight fight will not come close to their record it’s got a real chance to crack the million mark and inch toward the 1.9 million heavyweight record sold for Mike Tyson’s second fight with Evander Holyfield in 1997 and his 2002 fight with Lennox Lewis. AP TYSON FURY (right) and Deontay Wilder face off for photographers. AP

Beilein makes emotional goodbye to Cavaliers He showed them honesty, dignity and vulnerability. He admitted the losing had beaten him. Beilein said he couldn’t go on. “It took a real man to do that today,” Cavs forward Kevin Love said. “Everybody you talk to will say they respected the hell out of him.” One of college basketball’s most successful coaches over the past two decades, Beilein

didn’t make it through one NBA season. He resigned Wednesday after just 54 games with the rebuilding Cavaliers, who can’t seem to find the right person to lead their team. The 67-year-old Beilein never got comfortable during his short stint in the pros. The demands of travel, lack of practice time and a group of players who didn’t respond to his coaching style or respect him—until it was too late—proved to be too much, so he decided to move when the team returned from the All-Star break. “This was a very difficult decision for me, but I want to be clear—this was my decision to step down, and I truly appreciate the understanding and support of the front office during this time,” Beilein said in a statement released by the team. “I find losing very challenging, and this year has taken a much bigger toll on me than I expected. I grew concerned for the consequences this toll could potentially take on my own health and my family’s well-being down the road. “I was not certain I could be at my best for the remainder of the season and in the future.” Before the Cavs officially announced his resignation, Beilein spoke to his players. Love described the coach’s actions as “ballsy” and the mood as “powerful.” “For him to do come in and do that and look us all in the eye, and acknowledge that integrity and willingness, that’s big,” Love said. “That’s real man [stuff] right there. So I respect him for coming in and doing that because he didn’t have to.” The Cavs went just 14-40 under Beilein, who surprisingly left Michigan after 12 seasons and signed a five-year contract last May. The team said he will be reassigned to a different role within the organization. Associate Head Coach J.B. Bickerstaff is taking over Beilein and will attempt to put the pieces back together for the next 28 games— and beyond. The team is still working through some contract language for Bickerstaff, who took over teams in Memphis and Houston but is thankful not to have the “interim” tag on his title this time. “This gives you an opportunity to make very difficult decisions without that same amount of weight that you have to face, where as an interim you’re fighting for your life,” he said. “This gives you a little bit of relief from that, and you can make harder decisions based on the long term and not just the short term.” Beilein is not the first high-profile college coach to flop in the NBA. Kentucky’s John Calipari, Rick Pitino, Tim Floyd, Mike Montgomery and PJ Carlesimo are among a group who found coaching at the highest level problematic. AP

UBAI, United Arab Emirates—Top-seeded Simona Halep’s first match since losing to Garbiñe Muguruza in the Australian Open semifinals was a tough 1-6, 6-2, 7-6 (7) win over Ons Jabeur at the Dubai Championships on Wednesday. Halep saved a match point in the two-hour match against Jabeur, who lost to eventual champion Sofia Kenin in the quarterfinals at the Australian Open. “It was like a football match or a Fed Cup match, I didn’t really realize what was going on in court,” said Halep. “Everyone was with a lot of energy so we had to give our best. I think it was a great match.”

MCILROY STRONGLY REJECTS NEW PREMIER GOLF LEAGUE

EXICO CITY—Rory McIlroy became the first top player to publicly reject the idea of a proposed new tour, saying he values his choice of where to play over whatever money the Premier Golf League is promising. “I would like to be on the right side of history on this one,” McIlroy said Wednesday at the Mexico Championship. McIlroy said the only thing that could change his mind were if all the top players decided to join, and he doesn’t see that happening. “I think it’s very split at the moment,” he said. Talk of a Premier Golf League has been around for about six years and picked up momentum— along with serious funding, primarily from Saudi Arabia—in recent months. Organizers have been talking to players and agents the last few months in the Bahamas, Australia and last week in Los Angeles. Phil Mickelson, who played with officials involved during the pro-am in the Saudi International last month, said Sunday he was not ready to announce his intentions but might be ready to state his view publicly by The Players Championship. Tiger Woods has said only that he and his people were looking into it. The idea of the Premier Golf League is to

Halep advances at Dubai netfest

Halep will meet Aryna Sabalenka in the quarterfinals after Sabalenka beat Elise Mertens, 6-4, 6-3. Anett Kontaveit beat Anastasia Pavlyuchenkova, 7-6 (5), 7-5, and will play Petra Martic, who defeated Barbora Strycova, 6-3, 6-3. Elena Rybakina beat Katerina Siniakova, 6-3, 6-3, and plays Karolina Pliskova in the quarterfinals. Pliskova beat Kristina Mladenovic, 6-1, 6-2. In the last quarterfinal match-up, Jennifer Brady will play Muguruza. Brady beat Marketa Vondrousova, 4-6, 6-4, 6-1, and Muguruza defeated Veronika Kudermetova, 7-5 4-6, 6-4. In Rio de Janeiro, third-seeded Christian Garin

invigorate golf by putting together 12 fourman teams that would be required to play 18 events—10 of them in the US—that feature 54 holes, no cut and a shotgun start to fit a five-hour broadcast window. Total prize money would be $240 million, and the top player could earn as much as $50 million. McIlroy said money is “cheap.” “Money is the easy part,” McIlroy said. “It shouldn’t be the driving factor. Look, for some people it is. And we’re professional golfers and we’re out here playing golf to make a living. But at the end of the day, I value my freedom and my autonomy over everything else.” Professional Golfers’ Association (PGA) Tour Commissioner Jay Monahan sent a memo to players last month that effectively said that because the tour has contracts with title sponsors for a full schedule and television partners, anyone joining the Premier Golf League would have to give up their PGA Tour memberships. The Premier Golf League’s schedule would not include the majors. And still to be determined is if the Official World Golf Ranking board—represented by major tours and golf organizations—would allow the league to get ranking points. The world ranking is used to help determine the field for majors. AP SIMONA HALEP: It’s like a football match. AP

of Chile advanced to the Rio Open quarterfinals Wednesday, beating Argentina’s Federico Delbonis 6-4, 6-3. Garin will face Argentina’s Federico Coria, a 6-4, 4-6, 6-4 winner over Spain’s Carlos Alcaraz Garcia. Home favorite Thiago Monteiro dropped out with a 1-6, 6-1, 6-4 loss to Hungary’s Attila Bálazs. Bálazs will face Pedro Martínez Portero, a 6-1, 6-4 winner over Spanish countryman Pablo Andujar. Top-seeded Dominic Thiem of Austria will play his round of 16 match Thursday against Spain’s Jaume Munar. AP

orts

sMirror

Friday, February 21, 2020

PSC backs national para athletes’ Tokyo 2020 bid

NCAA action back March 16

HE National Collegiate Athletic Association (NCAA) Management Committee (Mancom) on Wednesday recommended to resume action in the league’s 95th season on March 16. The Mancom ordered a stop to all competitions starting on February 14 because of the coronavirus disease 2019 (COVID-19) scare. But the decision, according to Mancom Chairman Peter Cayco, would still heed future directives from the Department of Health (DOH), Commission on Higher Education (CHED) and Deparment of Education (DepEd), which jointly discouraged the staging of gatherings until after the outbreak is controlled. “This is subject to the approval of our [NCAA] Policy Board. Our recommendation is to resume on March 16,” Cayco said in a statement. “Part of our decision is to consult with the CHED, DepEd and DOH and with the schools’ physicians whether or not it’s safe to push through with our schedules,” he added. Affected by the virus outbreak are competitions in volleyball (senior and girls), football, tennis, soft tennis and athletics. The league’s kiddies basketball U-15 competition, meanwhile, will go on as scheduled on April 25, while beach volleyball action kicks off on April 29. The NCAA Cheerleading Competition, on the other hand, was moved on March 30.

PEREZ

ABBY AREVALO nails another memorable win behind brilliant shotmaking, iron play and putting. ROY DOMINGO

AREVALO CRUISES TO 9-STROKE WIN A

BBY AREVALO missed posting a record winning margin but claimed the Philippine Ladies Open (PLO) crown just the same, beating Rianne Malixi by nine despite turning in her worst round in three days—a 73—at the Manila Golf Club in Makati City on Thursday. Three years after humbling the pros with a final-hole birdie to prevail at Riviera, Arevalo nailed another memorable win, this time behind brilliant shotmaking, iron play and putting to emerge as the only player to shoot under-par in the first two days of the 58th staging of the country’s premier championship. Arevalo finished with a 210, counting her bogey-free 68 and a 69, for a nine-shot win over Malixi, who matched par 71 for a 219, with Mafy Singson carding a 75 to tie Eagle Ace Superal, who made a 76, at 226 and Grace Quintanilla ending up with a 228 after a 75. With a whopping 11-stroke lead after 36 holes, Arevalo stood on her way to shattering Bianca

TAUTUAA

Serbian coach starts harnessing 3x3 team

ERBIAN Coach Stefan Stojacic acknowledged the skills of pros CJ Perez and Moala Tautuaa but stressed their need to adjust to the international brand of 3x3 basketball. Perez and Tautuaa joined Joshua Munzon and Alvin Pasaol on the team that will vie in the International Basketball Federation (Fiba) 3x3 Olympic qualifying tournament in Bengaluru, India, set from March 18 to 22. “CJ and MO are new players in 3x3. They played in the SEA [30th Southeast Asian] Games but that tournament was totally different from the international level of playing 3x3,” Stojacic said. “But they have the quality—very good players.” Stojacic said that for them to be at par with the world’s best, Perez and Tautuaa have to do crucial adjustments in their style of play. “We have to change their mindset to 3x3,” Stojacic said. “There is a lot of work because of their lack of experience. The game of 3x3 is different from 5-on-5.” Munzon and Pasaol, on the other hand, have had several local and international exposures in 3x3. The 14th-ranked Philippines is bracketed in Group C in tournament with No. 4 Slovenia and No. 6 France. “We are in a better position compared to the other ‘groups of death,’” Stojacic said. “I think we are in a good group. For example, Group D is a terrible group. It is the strongest. In Group B, they have the United states and Lithuania, two of the best teams in the world,” he said. Group D is composed of the Netherlands (3), Latvia (5) and Croatia (12), while the No. 2 US is with Lithuania (7) and Belgium (10) in Group C.

Ramon Rafael Bonilla

NSA OF THE YEAR T

ZAMORA GOLF CUP San Juan City

Mayor Francis Zamora hits the ceremonial ball for the Second Zamora Golf Cup at the Wack Wack Golf and Country Club in Mandaluyong City on Thursday. NONOY LACZA

Singapore fights set behind closed doors

HE One: King of the Jungle card scheduled on February 28 in Singapore will proceed at the Singapore Indoor Stadium but the event will be closed to fans and media because of the novel coronavirus or COVID-19 scare. Singapore’s Ministry of Health recently raised its Disease Outbreak Response System Condition level from yellow to orange after having confirmed 75 cases of infection. ONE Chairman and CEO Chatri Sityodtong made the announcement to stage the event behind closed doors.

Pagdanganan’s nine-stroke triumph over former Thai ace amateur Atthaya Thitikul at Wack Wack in 2017 as Malixi bogeyed the opening hole. But she wavered at the backside with bogeys on wrong club selection while losing her putting touch, enabling Malixi, who birdied Nos. 10 and 13, to cut the lead to six with a three-overall card against Arevalo’s three-under aggregate. The 12-year-old rising star, however, failed to sustain her charge and cracked when the going got tough, dropping a stroke on the 14th, which Arevalo birdied from 12 feet to all but settle the issue in the event sponsored by San Miguel Corp., Diamond Motors, Sunsports and Eva Air and organized by the Women’s Golf Association of the Philippines. “I was playing well at the front but lost my touch coming home due to wrong club selection,” said Arevalo, whose bogeys in the last two holes hardly mattered as Malixi dropped two strokes on the closing par-4 hole. Although the event suffered a dip in

“The Singapore Indoor Stadium will not be open to the general public, but the event will proceed behind closed doors as scheduled live on all TV and digital platforms,” Sityodtong wrote on his official Facebook page. Fans who purchased tickets to the event will be given full refund through Sportshub Tix, One’s official ticketing partner in Singapore. All bouts will proceed as scheduled and will still be available live via TV and digital platforms worldwide, as well as through the ONE Super App. The main event features Stamp Fairtex

HE Association of Boxing Alliances in the Philippines (ABAP) punched its way to the honor roll of the San Miguel Corp.Philippine Sportswriters Association (PSA) Annual Awards Night by claiming the National Sports Association of the Year trophy. Led by Nesthy Petecio, the Filipino boxers stamped their class in all corners of the world in 2019—from the Asian to the world stage. The feat earned for ABAP yet another NSA of the Year award from the country’s oldest media organization which will honor the top sports personalities and entities in 2019 during its annual gala night on March 6 at the Centennial Hall of the Manila Hotel. Team Philippines to the 30th Southeast Asian Games will be accorded the coveted Athlete of the Year honor in the event presented by the Philippine Sports Commission, Milo, Cignal TV, Philippine Basketball Association, AirAsia and Rain or Shine. Petecio, 27, was at the forefront of ABAP’s successful campaign, finally scoring a

of Thailand defending her atomweight kickboxing world title against Janet “JT” Todd of the United States. Thailand’s Sam-A Gaiyanghadao will also stake his strawweight kickboxing world crown against Lachlan “Rocky” Ogden of Australia in the comain event. Also seeing action for the host are world title challenger Amir Khan, Tiffany “No Chill” Teo and Radeem Rahman and Singaporebased athletes Troy Worthen and Ritu “The Indian Tigress” Phogat.

breakthrough gold medal in the International Boxing Association Women’s World Championships in Ulan-Ude, Russia, after beating hometown bet Liudmila Vorontsova by split decision in the featherweight division. Felix Eumir Marcial fell short of matching Petecio’s gold medal as he settled for the silver in the same world tournament for men held in Yekaterinburg, Russia. Nonetheless, the 24-year-old native of Lunzuran in Zamboanga City became just the third Filipino who finished runner-up in the prestigious award after light flyweight Roel Velasco (1997) and Harry Tanamor (2007). Not to be left out was former world champion Josie Gabuco. The 32-year-old veteran Gabuco went home with the gold medal in the Asian Boxing Confederation Elite Boxing Championships in Bangkok, defeating North Korea’s Kim Hyang Mi in the finals of the women’s light flyweight category. Before Petecio, Gabuco was an AIBA world women’s champion back in 2012.

participation following the last-minute withdrawals of players from amid the COVID-19 outbreak, including those from the US, Taiwan, Singapore and other neighboring countries, Arevalo won it fair and square, through her talent, skills and sheer determination. While her rivals floundered and hobbled trying to deal with the tight layout and its sleek surface, she stayed focused and flourished with her kind of game honed up while with the San Jose State U in the US and as member of the 30th Southeast Asian Games gold medal winning squad. The record-tying triumph thus kept the PLO crown at home for the fifth straight year after Princess Superal broke the Thais’ three-year domination at Midlands in 2016, Pagdanganan won at Wack, Wack, and Yuka Saso scored back-to-back wins at Orchard and Manila Golf Club. It also augured well for her buildup for next month’s pro debut in the Ladies Philippine Golf Tour where she reigned as an amateur after shocking Pauline del Rosario with a last-hole birdie at Riviera in 2017. The three would later banner the Filipinos’ productive stint in the 30th SEA Games where the Philippine boxing team emerged overall champion. Petecio, Gabuco and Marcial won three of the seven gold medals the national team won to beat perennial rival Thailand for the sport’s overall crown. Like in the world championships, the gold Petecio won was her first ever in the SEA Games after settling for silver medals from 2011 to 2015. For Marcial, it was his third SEA Games gold medal, while Gabuco now has a record five golds.

HE Philippine Sports Commission (PSC) stepped up on its support to the national Paralympic team after swimmer Ernie Gawilan secured a ticket to Tokyo 2020 Para Games. The International Paralympic Committee gave Gawilan a slot to Tokyo through qualifying points he earned from the 2018 Asian Para Games and 2019 World Para Swimming Championships. The PSC has been supportive of the Philippine Sports Association for the Philippine Paralympic Committee (PPC) particularly on the athlete’s foreign exposure. Gawilan currently trains in the newly built Aquatic Center in New Clark City in Capas, Tarlac. For January alone, the PSC has given the national para swimming, women’s basketball and para-sitting volleyball teams almost P.8 million for their traning venue rental, allowances, meals and accommodation expenses. According to the PPC, Gary Bejino, another promising para swimmer, also has a chance to secure a spot as more slots are to be opened by virtue of the bipartite process. This is also possible for other athletes in other sports. “We are expecting more slots to be opened by each international federation per sport,” PPC Executive Director Dennis Esta said.

Kiefer, Thirdy spearhead Gilas squad for qualifiers By Ramon Rafael Bonilla

HE Samahang Basketbol ng Pilipinas put heavy consideration on exposing young talents while refusing to sacrificing veteran wits in selecting members of the 12-man team for the 2021 International Basketball Association (Fiba) Asia Cup qualifiers. The SBP revealed the team composition on Wednesday night with brothers Kiefer and Thirdy Ravena leading the squad that is now preparing for its debut game against Indonesia in Jakarta on Sunday. Also on the team are pros Troy Rosario, Roger Pogoy, Justin Chua, Poy Erram, Abu Tratter and CJ Perez—the busiest man in the group who was also named to the 3x3 squad for the Olympic qualifying tournament next month in India. Thirdy, the standout from Ateneo, will lead the youngsters compose of Juan Gomez de Liaño, Dwight Ramos and Gilas draftees Isaac Go and Matt Nieto. “Our unit is one that features balance between youth and experience as we have seven PBA [Philippine Basketball Association] players, six of whom already have international basketball experience,” SBP President Al Panlilio said in a statement. “Joining them are a group of hungry young players who are raring to represent the country and introduce themselves to the international basketball scene,” he added. “It will be a long journey to the Fiba Asia Cup but we’re confident that our team will once again show the region what Philippine basketball is all about,” he said. Javee Mocon, JD Tungcab and Rey Suerte were cut from the final lineup but are part of the reserves. Mark Dickel will coach the team which departs for Jakarta on Friday. BROTHERS Kiefer and Thirdy Ravena are playing together for flag and country.

Sports

MERCEDES-AMG Petronas’ Lewis Hamilton prepares for his preseason testing session and Valtteri Bottas drives his car at the Barcelona Catalunya track in Montmeló in Barcelona, Spain, on Wednesday. AP

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| Friday, February 21, 2020 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

CLEAR FAVORITE By Joseph Wilson The Associated Press

ONTMELÓ, Spain— Mercedes drivers Lewis Hamilton and Valtteri Bottas sent an ominous signal to their challengers after clocking the two fastest lap times on the first day of Formula One’s preseason testing. Hamilton set the top time of Wednesday’s opening session’s of one minute and 16.976 seconds, after he took over from Bottas behind the wheel of the new Silver Arrow for the 2020 season. Bottas’s best effort was 0.337 seconds slower. The Mercedes duo also completed the most laps of any team with 173. Sergio Pérez of Racing Point was the third fastest, followed by Max Verstappen in his Red Bull. Hamilton enters the season as the clear favorite as he seeks to equal Michael Schumacher’s record of seven world titles and surpass the German’s mark of 91 career wins. Hamilton has six titles and 84 wins. “It’s been a good day and a really good start for all of us, considering we had a long break,” Hamilton said. “So to come back and clock in over 170 laps just shows how hard everyone has been working over the winter.” In last year’s preseason testing, the Mercedes cars were slower than the rival Ferraris. But they beat them come the first race of the year and never lost their advantage. Hamilton and Bottas had nine one-two race finishes last season as they dominated the field to finish first and second in the overall points standings. Wednesday’s eight hours of running went smoothly for all teams, with no accidents or breakdowns and good weather ideal for high speeds. The only setback was for Sebastian Vettel, who couldn’t run as scheduled because of an illness. Charles Leclerc took Vettel’s place and settled for the 11th best time of the 15 drivers who drove. Leclerc, who finished fourth ahead of Vettel last season, said that his team had changed strategy. “Last year in testing we were great but the first race was a little less great, and I think we have learned a few things on this,” he said. “This year we have started trying to focus more on ourselves and on trying to learn the car as much as possible during these first few days and then focus on performance later on.” Verstappen finished third last season and is expected to again be biggest challenger to Mercedes’

dominance along with the two Ferraris. Verstappen focused on accumulating 168 laps as Red Bull’s sole driver on the track. Alexander Albon will get his turn with the Red Bull on Thursday. Williams’ George Russell was the first car to take the track, ensuring his team got off to a better start than during last year’s preseason when its car wasn’t ready to run until the third day of testing. This year’s rules have not varied much ahead of the massive overhaul of regulations set to take effect in 2021 with the goal of shaking up the pecking order and closing the gap between the three traditional title challengers— Mercedes, Ferrari and Red Bull— and all the rest. This season’s tweaks feature fewer tests days to compensate for the record-breaking 22 races on the calendar, including a new Vietnam GP and the return of the Dutch GP. Preseason testing has been reduced from a total of eight days to six, and the midseason test has been eliminated. Cars will now sport shark fins on the engine cover with the number of the driver to help fans identify them better. Drivers have been given more control of the go sequence at the starting line, and those large screens that crews would wheel out to shield cars from the view of snoopy rivals during tests have been banned. Alfa Romeo and Haas unveiled their cars early on Wednesday in the pitlane to complete the presentation of the new vehicles for this season. Testing continues on Thursday and Friday at the BarcelonaCatalunya Circuit, home to the Spanish GP, and again from February 26 to 28. The season-opening Australian GP is on March 15.

HEADS UP

Valencia’s Eliaquim Mangala (left) jumps for a header with Atalanta’s Hans Hateboer during their Champions League round of 16 first leg match at the San Siro Stadium in Milan, Italy, on Wednesday. Atalanta won, 4-1. AP

Emmy award for pioneering female sports reporter Visser

EW YORK—Lesley Visser, the pioneering female sports reporter will become the first woman to receive the Sports Lifetime Achievement Award. She will be honored at the 41st Annual Sports Emmy Awards on April 28. “To be a pioneer at nearly every juncture of sports reporting isn’t easy despite how Lesley Visser makes it look,” said Justine Gubar, executive director of the Sports Emmy Awards. “Lesley has spent her career serving as an unparalleled role model and mentor to countless up-andcoming journalists, including myself. Her generous spirit, breadth and depth of knowledge, and professionalism shine in our industry and The National Academy could not be more thrilled to honor Lesley with our Lifetime

Achievement Award for Sports.” Visser has been a leading sports reporter for 45 years and was the first woman to work on Monday Night Football. She also has been honored by the Pro Football Hall of Fame. “Very few people have had the word ‘first’ attached to them throughout their career as much as Lesley, and even fewer have created a place in an industry that never existed,” CBS Sports Chairman Sean McManus said. “From first working in press boxes with a credential that read, ‘No women or children,’ to becoming the first woman assigned to work Monday Night Football...there is no one more deserving to be honored as the first woman to receive the Sports Emmy Award for Lifetime Achievement.” AP

Raikkonen on course to break F1 record for most race starts

ONTMELÓ, Spain—Former champion Kimi Raikkonen enters the new season with a chance to break Formula One’s record for most race starts. The 40-year-old Raikkonen has started 312 races since his debut in 2001, leaving him just 11 race starts shy of breaking Rubens Barrichello’s record of 322 between 1993 and 2011. Defending champion Lewis Hamilton has the second-most starts of any driver in the current field with 250. Raikkonen, driving for Alfa Romeo for a second straight year, is expected to reach the milestone in July at the Great Britain Grand Prix. But for the tight-lipped and inscrutable Finnish driver, this season appears to be business as usual, which means focusing on overtaking rivals and steering clear of the hoopla outside the cockpit. “For sure I remember, it is not that far away,” Raikkonen said about his early years behind the wheel. Speaking on Wednesday during the first day of testing in Spain, Raikkonen said the yearly routine of churning out laps to fine tune the new cars has sapped the preseason of most of its excitement for him. “Everyone has built new cars and wants to know how they feel, but it is very early days and the only time we will see where you are is in the first race,” he said. “It doesn’t matter what lap times are in testing, you are just trying to improve the car, that is the only interesting thing for us,” he said. “If you take the last 10, 15 years of testing lap times, who is fastest here is not who is going to win the championship. People forget the story year after year.” Raikkonen, who speaks in a barely audible monotone that combined with his cool-underpressure driving style has earned him the moniker “The Ice Man,” won the 2007 title for Ferrari by a one point ahead of Hamilton and Fernando Alonso. After a stint competing in rally races between 2009 and 2011, Raikkonen got back into F1 with Lotus and then returned to Ferrari. Now he is back with Alfa Romeu, the team that

gave him his debut 19 years ago, when it was called Sauber. Without many hopes of adding to his 21 career wins given Alfa Romeo’s modest car, Raikkonen will look to improve on his 12th-place finish from last season. “It’s obviously not as big a team as where I used to be [Ferrari], but it’s a nice group of people and they’re working nicely together,” Raikkonen said after helping unveil the new red-and-white Alfa Romeo C39 at the Barcelona-Catalunya Circuit. “We know we have some areas where we can’t match the big teams, but we try to do the best with what we have,” he said. “We can learn from last year’s difficulties and hopefully we don’t repeat [them] this year.” Raikkonen did not reveal his plans for the future. His contract with Alfa Romeo is up at the end of season. But baring injury or an unlikely driver switch, by that time he will have become the driver with the most race starts ever in F1. AP THE 40-year-old Kimi Raikkonen has started 312 races since his debut in 2001.

God’s words in our lives

EAR God, give us the inspiration to ponder on the following—How faithful are we to the religious traditions and practices of the Church especially the Sunday Mass? Can we say that, like Jesus, we are also “progressing steadily in wisdom, understanding and grace?” Are we regular in celebrating the Holy Mass with our family members? How often do we go to confession and ask forgiveness for our sins? How are we keeping ourselves to be in the state of grace all the time? May we feel Your constant presence in us so we are empowered by Your mercy and love. Amen. GIVE US THIS DAY SHARED BY LUISA LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

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Greta Gerwig,

‘LITTLE WOMEN,,’ BIG IMPACT

➜D2

SOMETHING LIKE LIFE: WANTED: CONTINUITY SUPERVISOR D3

Friday, February 21, 2020

GERWIG on the Little Women set with Meryl Streep: “Having such great actors, I had tremendous trust because I knew they would make it more alive and deeper,” says the director.

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Greta Gerwig, ‘Little Women,’ big impact T

HE Academy Award-nominated director and actress Greta Gerwig read Louisa May Alcott’s Little Women so many times growing up, she can’t pinpoint the first time. But long before she directed her own fresh, modern vision of the storied classic, she was taking inspiration from Alcott’s rousing chronicle of four girls expressing the full spectrum of their joys and heartbreaks—and forging their own creative, artistic, and moral paths to adulthood. “Little Women has been part of who I am for as long as I can remember. I don’t actually remember reading the book,” says Gerwig. “I think it was read to me because it seems there was never a time when I didn’t know who Jo March was. She was always my girl, the person I wanted to be, and the person I hoped I was. So I always had an idea this character was one I might someday make something out of.” Gerwig would get her chance on the heels of her critically acclaimed first feature, Lady Bird, a buoyantly comedic portrait of a more contemporary girlhood of the early 2000s. That film was honored with five Academy Award nominations and hailed as an instant coming-of-age classic. With Lady Bird, Gerwig emerged as one of the most distinct new voices in American filmmaking, one keenly attuned to all that goes into making an identity in a fluid world. If Lady Bird struck a resonant note with audiences as a personal story, Gerwig wanted to bring that same warmth, emotion and immediacy to Little Women. The book might take place in a radically different time from our own, when girls faced far more limitations on their dreams, but to Gerwig the story felt urgently close to her heart. In fact, even as she wrote Lady Bird, Gerwig was channeling her inner Jo. That sparked a burning question: Why did Jo March become so influential among women writers that she sometimes seems as much a mentor as a fictional character? “As I was doing my research on Little Women, I kept finding all of these different, amazing women who had this same love for Jo like I had, from Patti Smith and Simone de Beauvoir to Elena Ferrante and Anna Quindlen,” says Gerwig. “Jo has meant something to writers and thinkers from completely disparate backgrounds, and many of them are people that you wouldn’t necessarily associate with loving Little Women.” Gerwig saw one thing that seemed to unite those who adored Jo March—a love of wide-open possibility. “There’s a rebel spirit contained in Jo, and a hope for a life beyond what your gender dictates that is completely exciting to us still,” says Gerwig. “She’s this girl with a boy’s name who wants to write, and she’s ambitious and she’s angry, and she’s so many different things that we identify with. It’s like she allowed us to be free.” Diving into the adaptation, Gerwig brought to the fore the kind of humor, passion and emotional honesty that defines contemporary moviemaking. It turned out that the key to bringing out the modern feel of Little Women was, paradoxically, staying faithful to Alcott. Alcott was already ahead of her time in how she used language and the way she wrote with such relatability about sibling relationships, the enchantment of childhood, and the longing for independence. “Alcott’s language was fresh and exciting, and needed almost nothing from me. So, I used as much word for word dialogue from the book as possible,” says Gerwig. It was how Gerwig asked the film’s cast to use Alcott’s words—with an informal liveliness and one family member’s voice overlapping another—that brought out something new. The laughter and the

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Today’s Horoscope By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Ellen Page, 33; Jennifer Love Hewitt, 41; William Baldwin, 57; Kelsey Grammer, 66. HAPPY BIRTHDAY: Consider your options and map out your course. Having an understanding of what it is you want to achieve will make it easier to reach your destination. An opportunity to improve your living arrangements, make a move or mix the old with the new to come up with a plan that leads to success looks promising. Your lucky numbers are 2, 7, 18, 24, 32, 35, 47.

ARIES (March 21-April 19): Look for an opportunity, and jump at the chance to make a positive change. Refuse to let someone put you down or discourage you from following the path that leads to greater freedom to think and do as you please. HHH

TAURUS (April 20-May 20): Don’t put on the brakes when you should be speeding up. Nothing will happen if you don’t take charge and put your plans in motion. Recognition and advancement are within reach. Celebrate your good fortune with someone special. HHH

GEMINI (May 21-June 20): Emotional matters will disorient your perception of what’s really at stake or happening. Take a closer look at what’s transpiring, you’ll see who is being honest with you. HHHHH

CANCER (June 21-July 22): Express your thoughts and desires. Discussing what you want to see happen will bring you closer to your dreams. A partnership will take a favorable turn and encourage you to take the initiative to improve the way you live your life. HH

LEO (July 23-Aug. 22): Stick to the rules, and take pride in what you do. Note how others respond before you make decisions. Anger will not help you get ahead, but patience and wisdom will. HHHH

tears of the story both became more immediate. “I wanted the actors to talk at the speed of life. I wanted them to run through the dialogue quickly and irreverently because that’s how I heard it,” Gerwig explains. Gerwig engaged with the March sisters from an original angle—as adults looking back on the magic of their family hearth, reconciling the stark realities of grown-up life with the intensity of their childhood passions and memories. “Every time I read the book, it became something different,” says Gerwig. “I first knew it in the coziness of childhood, but as I got older, new parts jumped out at me. Writing the screenplay, the part that was in clear relief was how the sisters’ lives as adults are so poignant, because they’re trying to figure out how to honor their fearless youth.” Gerwig continues: “So that’s why I had the idea to start with them as adults, and then allow their childhoods to live alongside them not as flashbacks but as two separate timelines. It captures the reality that when we walk down the street, we’re always walking with the younger versions of ourselves. We’re always integrating the person we thought we were going to be with the person we are now.” For Gerwig, it was also essential to pay homage to Alcott as a path-breaker, an icon of female artistic success in a time when it was mostly deemed impossible. Alcott had an unusual life from the start. Raised by parents who were idealists, abolitionists and lovers of art and nature, her schoolteacher was Henry David Thoreau and her neighbor was Ralph Waldo Emerson. Still, she wrote Little Women at a time when novels about women’s lives were relegated to the bottom shelves. No one could have predicted that Alcott’s book about the adventures of girls would be an instant smash hit, let alone part of the canon for 150 years and counting. From the day it hit the shelves, the book has never been out of print and has been translated

into at least 55 languages. Meanwhile, Alcott smartly retained the book’s copyright, which made her the rare woman to amass wealth outside of marriage or inheritance. “If Jo was the hero of my girlhood, Louisa May Alcott is the hero of my womanhood,” says Gerwig. A big relief for Gerwig was the knowledge that her first and only choice to play Jo, Saoirse Ronan, was up for embodying the young writer in the making. The two had forged a unique director-actor bond in Lady Bird, with Ronan garnering a Golden Globe and Oscar nomination for the title role. Joining Ronan is a cast that includes Emma Watson as eldest sister and would-be actor Beth, Florence Pugh as the ambitious painter Amy, Eliza Scanlen as the fragile musician Beth, Timothée Chalamet as Jo’s soulmate Laurie, Laura Dern as the March matriarch Marmee, Meryl Streep as opinionated Aunt March, James Norton as Meg’s beau John Brooke, and Louis Garrel as Jo’s suitor Professor Bhaer. “Having such great actors, I had tremendous trust because I knew they would make it more alive and deeper,” says Gerwig. Gerwig is grateful for having the chance to make the dream project of a lifetime as her second feature film. “After Lady Bird, I knew I wanted to keep going quickly, because directing is one of those odd things that if you’re lucky enough to be able to do it, you really only can get better at it by doing it. I wanted to get right back in the ring, and I was so lucky that it was able to happen with a story I care about so deeply.” “I had this movie burning inside of me to make,” Gerwig concludes. “I wanted to tell the story of women making art, women making money, women making choices, and about the way you can bring the bravery of girlhood into adulthood.” n Now in Philippine cinemas, Little Women is distributed in the Philippines by Columbia Pictures.

VIRGO (Aug. 23-Sept. 22): Get involved in activities that will get you moving and motivated to make self-improvements, new friendships and better relationships with the people who have stood by your side through thick and thin. Romance will enhance your life. HHH

LIBRA (Sept. 23-Oct. 22): Don’t miss out on an opportunity because someone is bullying you into taking on responsibilities that don’t belong to you. Make changes that will stop others from interfering in your productivity and ability to live life your way. HHH

SCORPIO (Oct. 23-Nov. 21): Socialize, travel and spend more time with people who inspire you to express your opinions and pursue your creative dreams. Engage in playtime to discover what brings you peace of mind. HHH

SAGITTARIUS (Nov. 22-Dec. 21): Be careful who you share your secrets with. Your reputation will be on the line if you are too open and trusting. Focus on personal improvements, not trying to change or impress others. HH

CAPRICORN (Dec. 22-Jan. 19): Look past the chaos to focus on what’s real. Learn from what others do, and make a point to offer only what’s feasible and what you are willing to part with. Nurture the relationships that matter, and let go of things you no longer need. HHHHH

AQUARIUS (Jan. 20-Feb. 18): A change at home or to your surroundings will give you positive reinforcement that you are doing what’s best for yourself. Expand your interests, as well as your friendships, and learn all you can that will contribute to reaching your goal. HHHHH

PISCES (Feb. 19-March 20): Situations will get blown out of proportion. Listen carefully, and don’t say anything if you want to avoid being held accountable. Facts matter, and it will be necessary to make sure that your words are not twisted or misconstrued. HH BIRTHDAY BABY: You are expressive, questioning and opportunistic. You are friendly and generous.

‘novel-ty shops’ BY KEVIN SALAT The Universal Crossword/Edited by David Steinberg

ACROSS 1 Neutral shade 6 Pitchfork-wielding crowd 9 They go through loops 14 Chef’s wrap 15 Melber on MSNBC 16 Flashy display 17 Ring-shaped cake type 18 A joker might pull yours 19 Capital of Bangladesh 20 Literary name for a burglar alarm company? 23 Opposite of pos. 24 Mimic 25 ___ Wednesday 26 Literary name for a pack animal feed shop? 32 Texter’s qualifier 33 Source of chips 34 Train stop 38 Microsoft search engine 40 Driving hazards? 43 Sheet of glass 44 Likely to take a bite out of one’s wallet 46 Tickled-pink feeling

8 This puzzle’s title, e.g. 4 49 Literary name for a martini bar? 53 Open ___ night 56 Singer DiFranco 57 Routing word 58 Literary name for a demolition business? 63 Big black bird 64 Name that’s 15-Across backward 65 Stays fresh 68 “Take it easy!” 69 Fix, as a game 70 Continental cash 71 “Deck the Halls” greenery 72 Had 73 “Buy U a Drank [Shawty Snappin’]” rapper DOWN 1 Key below ~ 2 Hindu in The Simpsons 3 Big vases 4 One-horse town 5 Menu heading after Appetizers, perhaps 6 Shopping venue 7 Two-tone treat

8 Tiger, for one 9 Tousled hair condition 10 Rebound, like sound 11 Alpaca relative 12 Seizes 13 Money under the mattress, e.g. 21 Nile’s northernmost country 22 European driver’s measure: Abbr. 26 “Mine!” 27 Leave unmentioned 28 How many Oscars Glenn Close has won 29 “We’re on ___ way!” 30 Words of wisdom 31 Informal affirmative 35 Daddy, in Honduras 36 Cross to bear 37 It’s often packed up in the morning 39 Prefix for “thermal” or “tag” 41 Gaza Strip grp. 42 Start of a rally 45 How to see the obvious 47 Apple Wallet item 50 End of many company names 51 TV personality Meredith 52 Early kind of call

3 Concert goods, slangily 5 54 Sun Valley’s state 55 Polite 59 Took a tumble 60 Subpoena, for one 61 All the ___ (very popular) 62 Word repeated after “que” 66 Polynesian paste 67 Nine-digit ID Solution to yesterday’s puzzle:

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Relationships BusinessMirror

Friday, February 21, 2020

Wanted: Continuity supervisor I

N most film productions, there is a continuity supervisor or a script supervisor. His sole job is to make sure the director is on point with the script, and each shot flows into the next, taking into consideration what the characters (actors) were saying and wearing, and that the props used in the previous shot are where they are supposed to be in the next shot. The continuity supervisor makes copious notes on the script of each shot, which will later aid the director in editing the film. So his job is very crucial to the film. Living in the Philippines, I, sometimes, wish the country would hire a continuity supervisor, as well. His job is to ensure that no one strays from the goals for each government infrastructure project, and that there is a cohesive placement or construction for each project that improves the entire infrastructure network instead of degrading it. Let’s take, for instance, the Metro’s overhead railway system. Under the Marcos administration, the Light Rail Transit System Line 1, or LRT 1, was constructed to quickly transport residents from Quezon City to Manila/Pasay, servicing similar routes of jeepneys. For some reason, the late Ferdinand Marcos thought the country would remain backward and “Third World” with all the jeepneys riding around, never mind that they were a Filipino icon that cannot be found anywhere except in this country. Fortunately their plan to remove jeepneys failed to pan out, and jeepneys continue to exist side by side with LRT 1. After many years and so many administrations later, we can’t even properly connect one rail system to another. Imagine being on the LRT 1 and you have to transfer to the Metro Rail Transit System Line 3, which runs the length of Edsa; you go down at the LRT 1 terminal at the corner of Edsa and Taft, head into a very crummy, dingy mall, so you can go out again to catch an MRT 3 train going north. Both lines are not directly connected and, in fact, it was only a few years ago when you could use one beep card for both. Prior to that, one had to buy two separate rail cards for use on the different lines. The same is true with the LRT 2 (which runs from Santolan to Recto) and MRT 3: you also need to go through an expansive mall and walk quite a distance to get on either line because there is no seamless connection between both transit lines, as well. And despite the inauguration of the common railway station at the corner of North Avenue and Edsa, within the TriNoma property, and several test runs of the LRT 1 trains toward SM City North Edsa, to this day the common station remains a pipe dream to many commuters like me. The latest news, of course, is that the Quezon City government suspended the construction on the MRT 7, aimed at transporting passengers from San Jose del Monte in Bulacan to North Avenue, Quezon City. City hall said construction of an overhead station at the Quezon Memorial Circle, “would affect the landmark’s identity as a national heritage park.” The project was started under the term of the previous occupant of city hall. Did he not notice the terminal would affect the landmark? Or was the original design changed? (I am hearing different versions of the story, one of which is that the station was supposed to be built underground, precisely to avoid ruining the Quezon Memorial Circle landmark. If

this was indeed the case, who changed the plan? Under the law, proponents that change project designs midstream are penalized.) Other projects suffer similar fates. For another, government doesn’t seem to have any actual airport development plan, so when the Manila International Airport (now called Ninoy Aquino International airport, or Naia) was initially constructed, there was no provision for outward expansion, such that subdivisions and villages were allowed to be built around it. Now there is no space for a badly needed runway, and more terminals. So, the solution under the Ramos administration was to build the Clark International Airport, which would be the primary international gateway in Luzon, while the Naia would handle domestic flights. It would have been easy to move passengers between both airports, but the Arroyo administration just had to screw up the Northrail project; officials then were found to be playing extremely nice with Beijing for the project. For some reason, business tycoon Ramon S. Ang’s proposed airport in Bulacan was approved by the Cabinet, while in Sangley, Cavite, the local government intends to develop an airport where a former US naval base used to stand, with a Chinese partner that many say has a shady background. Now, despite the approval of the Bulacan airport, the project is just sitting there, due to more questions on its viability and impact on nearby airports (read: Clark). For sure, these are all valid points, but shouldn’t these have been brought up during earlier discussions on the project? I understand that each administration wants to be bida and have its own projects; but can’t government agencies, at least, coordinate their moves so we don’t get haphazard, inconsistent or incongruous projects? And before approving new projects, there should be in rhyme and reason for each, or at least some development master plan for the sector. We don’t want our own business owners spending time and money on projects when they could have used these for other activities. It’s bad enough foreign direct investments have tapered off, does the new dispensation intend to discourage local businesses from placing their bets on vital local projects, as well? We need continuity of vision. If not, at least some semblance of sane coordination. nnn WHEN The Fatted Calf first opened its doors in 2019, it was little more than a passion project by husband-and-wife team chefs Jay Jay and Rhea Sycip under the banner motto “Family, Feast, Nurture.” From a charming postmodern country home in the middle of Silang’s “Nursery Row,” The Fatted Calf quickly became a champion of the local farms in the area, serving comfort food made with local produce grown ethically and naturally. Since the eruption of Taal Volcano, however, the local farms in the area have been covered with mud and sulfuric ash, and are now ruined. It will take a year for the soil to turn over and fully recover; this year’s crop is gone—all the vegetables and pineapples, dying. The farmers live from season to season, and Taal’s eruption have left them with little resources to replant, rebuild. “While we saw an outpouring of donations for our displaced countrymen over the past few weeks, we are now faced with the daunting but possible task of rebuilding, and helping our farmers get back on their feet. What better way to not only help but also to celebrate their resilience through the very motto that The Fatted Calf began its journey under: to nurture our family through feast—and thanksgiving,” said the Sycips. To help the Taal farmers, The Fatted Calf will be holding a very special pop-up dinner on February 28 at Restaurant 101 of the Enderun Colleges. Seats are limited; for reservations, please message Rhea Sycip, Jay Jay Sycip or Spanky Enriquez via Facebook Messenger. n

The perfect place to juggle, hustle and play AS more yuppies today deal with multiple commitments at all fronts, the demand for a flexible space that not only encourages creativity but also lets them have a good time, build relationships, tick off their to-dos and cultivate experiences has never been this high. Amid a fast-paced urban life, they crave for a space that allows them to do it all. Assembly Grounds at The Rise in Makati’s hip NoMa district is shaping up to be the hot spot for both work and play. Conveniently located a few minutes away from the Makati Central Business District and some schools, Assembly Grounds at The Rise (www.assemblygroundsattherise.com) is an ideal spot for young professionals, freelancers, and students who are looking to carve an accessible space that allows them to hustle and squeeze in some leisure time into their jam-packed calendar. With the lifestyle hub’s specially curated restaurants and stores, it caters to the different needs of the NoMa dwellers, like lifestyle content creator Lance de Ocampo, who are always on the hunt for nice places—be it coffee shops, restaurants or malls—where they can get things done without straying too far from their home or office. “Finding out that there was a new community hub in Makati, it made me so happy as it is just near my place. When I first got into Assembly Grounds at The Rise, I knew that it was going to be my new favorite hangout and workplace too,” de Ocampo said. Another NoMa resident, beauty vlogger Aryanna Epperson has nothing but praise for Assembly Grounds at The Rise for its specially curated offerings that fit well into her creative life. “Assembly Grounds at The Rise is a chill community hub for millennials. It is my newest hangout spot when I need to work on my next creative project, or if I just want to indulge in food and treat myself to a well-deserved pamper session after a long day of work,” she said.

Whether they want to grab a cup of coffee for breakfast or to stay up all night to study, enjoy some drinks with officemates, catch up with friends over brunch, run errands and restock the pantry, spend some time alone to rejuvenate or listen to up-and-coming new local bands live, every NoMa resident doesn’t need to go far. Assembly Grounds at The Rise is just right around the corner.

ARYANNA EPPERSON

LANCE DE OCAMPO

Show BusinessMirror

Friday, February 21, 2020

ABS-CBN employees to stage protest GAB FAB JET VALLE

@jetvalle

ODAY, at 6 pm, thousands of ABSCBN employees (myself, included) and its supporters are expected to converge on the grounds of the company as a sign of protest against the delay of the franchise renewal hearings and the quo warranto petition filed by Solicitor Gen. Jose Calida to the Supreme Court of the Philippines. Everyone is welcome to join as we assemble at the Lopez Drive Trellis Gate and by 6:30 am, a march will happen around the ABSCBN compound followed by a candle-lighting ceremony and a solidarity program. If you believe in press freedom, if you don’t believe the fake news being spread about the network, if you think the quo warranto has no basis, or if you simply think that ABSCBN deserves to have its franchise renewed, then by all means join the 11,000-plus workers of the network, as well as their supporters. You will be encouraged to wear white but if you want to wear purple or blue, or red or whatever hue, by all means go. We also believe in the freedom of fashion.

Seriously, if you have been following the news, then you must be familiar with the latest developments that another petition has been filed asking for a gag order to prevent ABS-CBN and other parties from talking about the quo warranto. The National Union of Journalists of the Philippines said it best in their statement, that this is an “obvious attempt to silence all voices opposed to this government’s push to shut down ABS-CBN.... With the clearly broad opposition to the shutdown and a Senate hearing on the issue coming up, we are calling Calida’s intention for what it is—the suppression of truth and the silencing of critical voices.” To be clear, not everybody in ABS-CBN is anti-Duterte or against its administration. Heck, I know a lot of my colleagues—and it’s no secret there are also among its roster of celebrities—who campaigned for President Duterte. Not one of them received much less of an eyebrow raised when they would post on their social-media accounts why they believe Duterte is the greatest president. Sa totoo lang, I would just scroll through their posts and not even be affected. Deadma ’no. And this is true of the network. Because with over 11,000 opinions in one company, each of them molded by unique backgrounds, values, experiences and beliefs, ABS-CBN is home to a vast expanse of opinions—and it is only right to harness this toward social justice. I honestly think their pro-Duterte posts have hugots. They just want the best for the country. Those of us with opposing views

from day one want the best for Filipinos, too. We want the administration, whoever heads it, to succeed and make the Philippines a great nation. We believe that our first duty should be to this country. Putting aside our individual views, the important thing here is the necessity to speak up. Somewhere down the road, many people came to the point that anyone opposing their views do not have the right to say what they want, to post what they feel. We have forgotten that democracy, the very essence of our nation, is founded on the notion that every voice deserves to be heard. Media’s role is to give you the truth. That is what my esteemed colleagues here in BUSINESSMIRRO� do every single day. We are informants. And that is what ABS-CBN is doing, too. Yet, many have already closed their minds to other opinions, easily angered when one differs with theirs, and even sacrificing a basic right, such as freedom of speech and expression. My past column entry spawned a lot of positive and some negative comments on my social-media accounts. These negative accounts have ranged from harmless to hilarious, to even detestable. I have thought of snapping back at them. After all, how can one expect to live a life of bettering themselves when there are people out there with sweeping intolerance. The answer is simple. I will live my truth. And they can live their truth. Even if their truth is mostly based on fake news and hate. n

www.businessmirror.com.ph

Vicky Morales takes on new role as ‘Ate ng Bayan’ FROM news reporting to granting wishes, top GMA News anchor Vicky Morales has shown her versatility in public service through the years. Beginning February 22, the award-winning broadcast journalist takes on yet another role, this time around as the “Ate ng Bayan” in the reality drama program Ilaban Natin ’Yan! In Ilaban Natin ’Yan!, Vicky helps parties in conflict resolve their issues by reaching out to the people in the barangays, getting to the root of their problems, and encouraging them to make positive changes in their lives. Ilaban Natin ’Yan! is not the viewers’ typical public affairs show as it gives new flavor to “Serbisyong Totoo” through a traveling confessional called “Palaban Express”—a modern jeep that will go around various barangays where people from all walks of life can voice out their concerns. The show then showcases the most interesting stories which will be brought to life by various GMA actors. The featured individual and all the concerned parties will be given the chance to discuss the issue at hand, right in the comfort of their own barangay. Ilaban Natin ’Yan! will employ experts and resource persons who will help in resolving the problem. “Ibang-iba siya sa mga ginagawa ko,” shares Vicky, who has been a broadcast journalist for three decades already. “Para sa atin lahat itong show na ito. Kapupulutan natin ng aral at matutuwa pa tayo. Hindi lang namin kayo pakikinggan, ilalaban natin ’yan!” Ordinary Filipinos can definitely relate to the issues that Ilaban Natin ’Yan! will feature, such as social media and gaming addiction, teen suicide, sibling rivalry, inheritance disputes, juvenile delinquency, child support and custody battles, adultery, and other problems. On its first month, Ilaban Natin ’Yan! tackles a wife being abused, a paranormal expert bullied online, and a woman being threatened. Some of the GMA actors set to be part of the episodes, include Ruby Rodriguez, Anjo Yllana, Thea Tolentino, Anjo Damiles and Jaclyn Jose. Ilaban Natin ’Yan! airs every Saturday beginning February 22, after Tadhana on GMA.

Motoring BusinessMirror

Henry Ford Awards Best Motoring Section 2007, 2008, 2009, 2010 2011 Hall of Fame

Editor: Tet Andolong

Friday, February 21, 2020 E1

COMMUTERS URGE GOVERNMENT TO CREATE

PROTOCOLS ON HEALTH EMERGENCIES

MMDA Spokesman Celine Pialago, Prof. Clarita Carlos and Atty. Argee Guevarra answers questions from media which revolve mostly on the COVID-19 issue.

Story & photos by Patrick P. Tulfo

CONSUMER-COMMUTER group is urging the government to establish a uniform, national and centralized health emergency protocol to abate, mitigate and contain the further spread of the novel coronavirus.

BUSINA Forum is a bimonthly kapihan held in major cities in the Philippines specifically in Metro Manila.

At the first Busina Media Forum in Quezon City, Atty. Argee Guevarra, convenor of Pasada CC, a nongovernment organization for consumers and commuter welfare and protection, said “With the alarming infection rate of COVID-19 in China and after the virus has claimed its first casualty within Philippine territory, government’s disingenuous pronouncements about its preparedness in addressing this viral outbreak without establishing uniform, national and centralized health emergency protocols only undermines government’s earnest efforts at combatting COVID-19’s spread. “The optics alone paint a disturbing picture. The showcase and frontline infrastructure of government’s fight against COVID-19— the San Lazaro Hospital—the officially designated hospital in the country which is the publicly recognized hub for COVID-19 cases, shows visible signs of being in the

midst of initial stages of dilapidation. San Lazaro Hospital does not inspire public confidence about government’s capacity, seriousness and efforts to manage this contagion. Despite the gallant pool of doctors and health workers in San Lazaro Hospital, they are not even properly attired in hazmat suits or are equipped in modern health equipment,” Guevarra added. During the forum, Guevarra said that Metropolitan Manila Development Authority (MMDA) spokesman and Assistant Secretary Celine Pialago said that what government has right now is an emergency and disaster response program for earthquakes. Under the program, which it coordinates with LGUs, the entire National Capital Region has been subdivided into quadrants, with each having a hospital for containment purposes. However, Pialago did not confirm if these local hospitals are prepared to handle cases of pandemic-grade viral infec-

tions or diseases like the novel coronavirus. “Earthquakes or volcanic eruptions are dissimilar from health emergencies. The logistical requirements and the skill set for government first-responders differ from each another. The former requires evacuation, while the latter requires containment and quarantine. The government cannot obviously apply evacuation protocols to the COVID-19 epidemic” Guevarra noted. “In the absence of uniform, national and centralized health emergency protocols laid down by Malacañang or adopted by the DOH, local politicos will likely fill this void and promote their own protocols which may be just palliative measures or better suited for photo-ops and electioneering purposes but not for effectively preventing COVID-19 spread under the prescribed protocols and standards of the World Health Organization.” Guevarra added.

Meanwhile in the sidelines of the said forum, former LTO spokesman now PITX (Parañaque Integrated Terminal Exchange Corporate Affairs Head Jason Salvador said that they are targeting to accommodate more than 100,000 passengers this year, as the operations of their terminal begins to normalize. Salvador added, “We are hopeful that with the help of the government and transportation agencies, we will be able to hit that target.” Pasada CC is a nongovernment organization of Filipino consumers and commuters registered under the Securities and Exchange Commission (SEC). Established in 2014 with the first National Coalition of Filipino Commuters and Consumers (NCFCC), Pilipino Safety and Development or Pasada CC aims to propose measures to help government improve the lives and standard of living of Filipino consumers and commuters everywhere.

Moto

MORE THAN JUST

Business

E2 Friday, February 21, 2020

Story & photos by Randy S. Peregrino

OR Kia Philippines, another best way to celebrate its first anniversary under the helm of Ayala Group was to stage the firstever media ride and drive event for its latest addition to the lineup—the Seltos. Since its introduction late last year, we couldn’t wait to get our hands on this exciting crossover SUV. So, the company recently hosted select members of the motoring media to experience the new crossover finally. The destination of choice? Baler, Quezon.

RADIANT Starbright Yellow color matching the sun and blue skies

go through, par tic ular ly a more c halleng ing mount ain route going bac k to Manila. Here, we apprec iated the Selto’s abilit y to handle tight t ur ns as if it has the agilit y of a small c ar. T he S X v ar iant made it easier thank s to it s elec tronic s t abilit y progr am (E SC). But regar dle s s of what v ar iant , the precise s teering aided the entire time with some help f rom downshif ting and engine br ak ing to maint ain control. De spite the nons top t ur ns, one of our occ upant s s till managed to doze of f.

KIA Philippines President Manny Aligada with the SX model

Joining the drive event was none other than Kia Philippines President Manny Aligada. Referring to what Kia has for every need and want, he also stressed the Seltos as an example. “On the onset, it may be viewed as just another new entry into the crossover segment. Yet, it is packed with style, comfort and convenience, and safety features that cater to anyone looking for a vehicle for both the daily commute and weekend adventure,” he said.

A glimpse of Kia’s future design

AF TER the early morning assembly in E s t anc ia, C apitol C ommons, w ait ing f or us to boar d were ten br and -new unit s of gleaming Seltos cros sover SU V in dif ferent editions (S X , E X and L X v ar iant s). Teame d up with Manila T imes editor Dino Dire c to and C armudi’s Ruben Manahan, we had the chance to exper ience all three options during the entire t wo - day dr ive event . At a glance, there’s no denying t hat Peter Sc hreyer ’s name is wr it ten all over it . W hile it ’s eas y to s ay that it ’s like t he Tellur ide’s small brother, t he S eltos ha s a c har ac ter of it s own. T hat s t unning look s, somewhat , convey a glimps e to what K ia

ha s s tore d f or us in ter ms of it s f ut ure de sign language. T here’s t he f ront end ’s unif ie d appearance of t he signat ure gr ille shape and t he dis tinc tive slim LED headlamps (SX model). T hos e tex t ure d met allic bor der s provide d f ur t her empha sis along wit h t he unique e di f ice of day t ime r unning light s. W it h s e emingly similar bo dy prof ile s to t hat of t he bigger Tellur ide, t he s e gave t he S eltos t he ne e de d sophis t ic at ion. A ddit ionally, dar k mat te panels under neat h provide d t he r ugge d touc h. At t he bac k , t hos e unique - look ing t ail light s, met allic accent s, including those in t he lower panels, and prof ile s e quate to how an e qually s t unning rear end should matc h t he f ront end ’s look . C omplet ing t he over all look are t he t wo -tone d 17-inc h alloy s wit h unique spoke s wr appe d in low prof ile r ubber s. Intere s t ingly, t he s e r ims are s t andar d in all v ar iant s.

Well-dressed cabin with numerous features

T HE ent ir e c abin layout of f er s a br eat h of f re sh air. Ever y t hing is f ar f rom what

How about that?

NEW cabin design

we usually s e e f rom previous K ia mo dels. C ombinat ion of piano blac k and met allic tr ims, leat heret te mater ials, among ot h er s, inc luding t he unique door latc he s, all contributed to the elegant atmosphere. But per haps t he main highlight inside is t he new 8 -inc h touc hs c re en head - up display e quippe d wit h A pple C ar play and A ndroid Auto, plus guided backing up display (available in all v ar iant s). C abin space is also one of this vehic le’s high point s. W it h generous le g and head r o o m s , n e v e r di d o ur t a ll e s t c o ll e a g u e encountered any discomfor t. What is more, t he 6 0:4 0 split rear benc he s c an be re c line d. Now t hat ’s a plus f ac tor. A s f or t he air- condit ioning s y s tem, whet her it s automat ic c limate control or manual con t r olle d, b ot h pr ov ide d t he de sir e d cold

c abin temper at ure. B y the way, you c an go ahead and keep the fob key inside your poc ket thank s to the S X v ar iant ’s keyle s s and push - but ton ignition. But both E X and L X also have keyle s s entr y feat ure.

Fun to drive

THE Seltos is not jus t about great design inside and out. Behind-the -wheel was even more engaging. At the hear t of this captivating crossover is a 2.0 -liter gasoline engine generating 147hp at 6,200rpm and 179 N-m at 4, 50 0r pm. T hat engine displacement and power r atings are more than enough to propel bigger c ar s. We felt how the motor quickly drove the vehicle ever y time, regardless of road terr ain. But what aided the mill to deliver more impressive was the mated Intelligent Variable Tr ansmission (IV T ).

This newly developed transmission technology enables the engine to remain in it s s weet spot. Depending on how you s tep on it , the seamless shif ting keeps the momentum going even jus t above the low end but more aggressive at the midrange rev range. Precisely, it was what we felt whenever there w a s a n e e d t o p u s h o n h i g h w a y s and ascent s—there was enough punch y e t n o t a b l y s m o o t h . E v e n b e t t e r, t h e r e is an available drive mode control (Eco/ Normal/Spor t) func tions, which control the shif ting point s. The manual shif ting mode, on the other hand, allowed us to squeeze more torque fur ther and also became a plus fac tor in doing engine b r a k i n g w h e n e v e r n e e d e d . T hroughout the dr ive, there were long dis t ance s of mount ain zigz ags we have to

FOR peace of mind, the Seltos is equipped with reliable s afet y feat ure s. For s t ar ter s, the fr ame is reinforced with advanced highs trength s teel (A HSS), then there are the dr iver and f ront pas senger air bags (plus f ront side c ur t ains for S X models), antilock br ake s y s tem (A BS), par k ing sensor s (S X ), among other s. Available driver-as sis t functions for the S X model are E SC , hill- s t ar t as sis t , and downhill br ake control, apar t f rom the c r uise control f unc tion for both E X and S X models.

A character of its own

T H I S v e h i c l e, t o b e g i n w i t h , d i d n ’ t g e t i t s my thological name derivation for anyt h in g . B u t h o w m y s t i c a l i t m a y s o un d l i k e t h e s o n o f a G r e e k g o d; i t i s m o r e t h a n j u s t a m y t h . B e c a u s e K i a ’s n e w e s t s u b c o m p a c t c r o s s o v e r S U V, t h e S e l t o s , i s a s real as it get s in terms of being a wor thy c on t en d er. N o w t ha t i t ’s h er e, i t ’s t im e t o, once again, s tir up the hotly contes ted vehicle segment.

TOYOTA MOTOR PHILIPPINES INTRODUCES ITS NEW PRESIDENT

Story & photos by Randy S. Peregrino

OYOTA Motor Philippines Corp. recently introduced Atsuhiro Okamoto as its new president during a formal ceremony witnessed by members of the business communit y at the Grand Hyat t Manila. During the event, TMP’s achievement s in the past four years under the leadership of outgoing President Satoru Suzuki were highlighted. Also, a glimpse of how Toyota will transform into a mobilit y company was revealed. This move will aim to improve people’s daily lives through various mobilit y solutions. As Suzuki handed over the torch to Okamoto, he sure left the helm on a high note with the company’s record-breaking market share of 39.5 percent and 18th consecutive Triple Crown by end-2019 achievements. Moreover, the business grew with the introduc tion of new models and the expansion of its distribution network nationwide, with an additional 23 dealers, to better ser ve the needs of the market. In his par ting words, Suzuki thanked

OUTGOING President Satoru Suzuki (left) and new President Atsuhiro Okamoto during the ceremonial turnover

Toyota customers who put their trust in the brand. “You are the reason for Toyota’s passion to be always better,” he said.

OKAMOTO TOYOTA MOTOR PHILIPPINES

Also, present during the ceremony was TMP Chairman Alfred V. Ty. For his par t, he acknowledged stakeholders for their suppor t

to Toyota’s business in the countr y for over 30 years. Ty also emphasized Toyota’s sustained commitment to nation-building, primarily

through local automotive manufac turing. “Because of your unwavering suppor t and friendship, we have been able to remain true to our promise of ser vice to the Filipino and the Philippine nation,” he said. Ty also highlighted TMP’s investments under the government ’s Comprehensive Automotive Resurgence Strategy (CARS) Program. To date, it already reac hed P5.42 bil lion, enabling the tr ans fer of tec hnology, employment generation and skills development , among other s. L ikewise, acknowledging the gover nment for the C A R S Progr am for it gave Toyot a an indispensable role in enhanc ing the indus tr ial and manuf ac t ur ing c apabilit y of the countr y. In the global scene, meantime, Toyot a is tr ans forming into a mobilit y company, which s temmed from Toyot a Motor Corp. President Akio Toyoda’s direc tion. The leading Japanese automaker ’s concept of the automobile will continue to change in the current er a of innovations, par ticularly in terms of connec tivit y, automation, shared mobilit y and elec trification. With such new

technologies, Toyot a aims to develop communities that are not jus t centered on “cars” but on “people.” In the Philippines, where the population is vas t , and the economy is a fast-growing, mobilit y needs will continue to evolve and become vital to socioeconomic development. Meanwhile, leading TMP ’s path toward of fering new mobilit y solutions is the new comp any Pr e sident Ok amoto. “A s T MP ’s new president , I would like to reiter ate to all TMP team member s, dealer s and sup plier s, alike, the impor t ance of dedic ating our work to contribute to societ y. We will continuously do so by providing ever-bet ter c ar s and ser vices to enhance the qualit y of life of Filipinos,” he said. An alumnus of Keio Univer sit y, Okamoto s t ar ted his c areer at Toyot a Motor Corp. in 1992. He has gained a rich marketing experience handling Toyota and Lexus br ands in the pas t 28 year s. His former assignment as executive vice president of Toyot a Motor A sia Pacific, likewise, gave him a closer under s t anding of the A sean market and the Philippines.

oring

T A MYTH

sMirror

Catching some ocean breeze at first light

Friday, February 21, 2020

THE SEDAN. NOW ALSO AN A-CLASS

T was in 1997 when Mercedes-Benz brought some fresh thinking into the compact class with a completely new concept—the A-Class. This combined advantages of exemplary use of space, great variability and occupant protection to Mercedes-Benz standards with the agile handling of a compact car. The A-Class has been a big driver of change at Mercedes-Benz and, since then, it has evolved from looking like a tall MPV-like subcompact hatchback to the sleek premium compact hatchback we know today. “Following the successful start of the AClass, things at Mercedes-Benz are happening in quick succession with regards to the new family of compacts. In response to the wish of many customers, we now offer the A-Class for the first time as a sedan car,” said Britta Seeger, member of the Board of Management of Daimler Mobility AG, responsible for Mercedes-Benz Cars Sales and Marketing. Indeed, the family of new generation compact cars from Mercedes-Benz continues to grow. The new A-Class sedan is finally here in the Philippines. The compact car that brings you it’s “A” game.

Design: Attention-getting

THE traditional three-box design is dynamically interpreted in the new Mercedes-Benz A-Class Sedan. It features striking lines that embody the spirit of A-Class dynamism, all the way through to it s spacious interior. The toned physique, spor t y design and aggressive stance of the A-Class Sedan are designed to capture admiring eyes. It comes with LED lighting standard, and looks solid with 17inch wheels.

Interior: More than spacious; special

THE star on the out side is earned on the inside. The interior of the new A-Class is c o mp l e t e l y r e d e f in e d w i t h i t s m o d e r n , avant-garde look. Mercedes-Benz has taken

a completely new approach, revolutionizing the compac t class from the inside with a new feeling of spaciousness. The unique interior architec ture is shaped in par ticular by the modern design of the dashboard. Moreover, the interior is dazzled with it s digital displays, aircraf t-inspired air-con vents, ergonomic center console, splashes of metal accent s and heaps of gloss black trim pieces. The driver’s seat is elec tronically adjustable, and comes with memor y func tion. The cabin command center is the Mercedes-Benz User Experience which can be operated via 7-inch touchscreen, touchpad, voice control or touch control but tons on the steering wheel. The MBUX revolutionizes tech-equipped driving and adapt s to the driver over time through ar tificial intelligence, and the Linguatronic Voice Control system is as intuitive and natural as it is adaptable to you. And the infotainment includes Apple CarPlay and Android Auto, and embedded navigation.

Energizing comfort and exemplary safety

MERCEDES-BENZ is commit ted to providing a safe driving and riding experience, and the A-Class Sedan is no exception. Whether it ’s rush hour traf fic or a long night drive on an unfamiliar route, the A-Class Sedan suppor t s you throughout your journey, helping to ease the strain in potentially stressful driving situations. Key to this is MercedesBenz Intelligent Drive, a suite of advanced assistance systems to help ensure you arrive at your destination safe and sound, feeling relaxed and refreshed. The A-Class Sedan boasts an entirely new vibe that elevates the Mercedes-Benz reputation to new heights—stylish, spacious and loaded with cutting-edge technology. Visit any of Mercedes-Benz four showrooms (Greenhills, BGC, Alabang and Cebu Cit y) to check out and test-drive the new AClass Sedan today. Retail price starts at P2.790 million.

Motoring BusinessMirror

E4 Friday, February 21, 2020

Twin torpedoes from BMW; Lexus novelty

HAD dinner with Spencer Yu recently in the company of several of my distinguished colleagues and guess what I had dug up. Two stupendous BMW bonanzas that should both whet the appetite of BMW owners and BMW dreamers alike. Spencer, of course, is the youthful president of SMC Asia Car Distributors Corp., the official importer and distributor of BMW in the Philippines. Since Ramon S. Ang, the San Miguel Corp. CEO/president, appointed him as top BMW honcho in the country, Spencer had been going great guns, transforming, rather quickly, the German muscle into a brand much preferred, once more,

by the segment used to owning topselling automobiles the world over. The twin torpedoes start today, February 21, and ends on Sunday, February 23. Dubbed the “BMW Joyfest 2020,” the virtual festival at the Activity Center of Bonifacio Global City in Taguig is a three-day celebration of “sheer driving pleasure,” allowing customers and aspiring BMW owners to enjoy the BMW

brand experience with some exclusive activities and offers. A splendid highlight to this is the simultaneous launch of BMW’s most accessible models in the market—the BMW 1 Series and BMW X1. The all-new BMW 1 Series gets its most dramatic update yet, offering a new platform for performance and versatility, while the new BMW X1 continues the story of its successful compact Sports Activity Vehicle (SAV) legacy. Aside from these new product introductions, guests will also savor BMW’s iconic lineup—the BMW 5 Series, BMW 6 Series, BMW 7 Series and BMW X2. Also in store are: Special pricing on the most coveted BMW automobiles Test drives for select models in the BMW range Limited-time offers on BMW Lifestyle merchandise The second part of the weekend package is the BMW extended warranty program that practically reassures customers a worry-free ownership. “The BMW Extended Warranty Program allows the coverage of eligible vehicles to be extended to the new five-year standard,” said Spencer. Every brand-new BMW vehicle from 2019 onward, bought from any official BMW dealership

nationwide, will enjoy a five-year or 200,000-kilometer warranty. “This warranty begins when the car is registered under its first owner, and remains with the vehicle, meaning it is transferrable as long as the warranty is still valid,” Spencer said. “The BMW Five-Year Warranty covers major and minor components necessary to the safe and optimum operation of the vehicle,” added Spencer. “However, it does not cover normal wear and tear items, such as brake pads, filters and consumables.” Plus, the BMW Five-Year Warranty also entitles BMW customers to five years of the BMW Assistance program, partnering with IBERO Asistencia, S.A to provide vehicle roadside assistance whenever necessary, 24 hours a day, 365 days a year, in all major cities nationwide. Spencer’s complete package: “For existing customers who have purchased their BMW vehicles in the year 2018 and with their original two-year warranties about to expire, the BMW Extended Warranty Program will allow eligible vehicles to extend their coverage by an additional three years and now follows warranty mileage cap of 200,000 kilometers. This extends to the BMW Assistance program, as well, allowing customers to further enjoy its benefits.

“As the first to introduce the longest and most comprehensive warranty package in the premium car segment, BMW affirms its commitment to the discerning market and their vehicles. We want all BMW owners in the Philippines to know that we stand by our products and are always willing to make sure that we keep their cars in perfect condition for many years to come.”

Lexus discovery in US

I SHARE to you what I told Lexus Manila President Raymond T. Rodriguez recently: In the United States, many car dealerships, if not all, accept all brands of vehicles for servicing. One example is the Lexus dealership in Pleasanton, a charming city not far from San Francisco, California, USA. This Lexus branch, so huge it can accommodate 60 cars for servicing astonishingly all at once, services mostly all kinds of brands. I should know. I was at Pleasanton Lexus recently as a guest of Dondon Juvida, my wife’s nephew who’s been working there for almost 10 years now. “Besides making our services personnel virtual experts of different brands of vehicles, the platform also ensures added profits for the company,” Dondon has said to me, with pride pinned on his lips.

Can that system not be adopted here? I mean, a Toyota dealership accepting, say, a Nissan or a BMW, for servicing? It’d make for an easier, more convenient form of extending extra help and comfort to our car owners. It can happen that you own a vehicle whose brand is not carried by the dealership nearest you in the neighborhood. So, instead of going to your mother dealership that might be situated quite far from home, why not bring it to the dealership nearby? Saves you time and money.

PEE STOP The Lexus Invitational

Cup fires off today, February 21, at Sta. Elena, its traditional home since the tournament’s birth in 2011. Through the years, the tournament has afforded Lexus loyalists the luxury to renew ties, as only in a golf tournament that this lofty tradition could happily happen. It is but fitting, therefore, that my natural flightmate would be my first inviter, Danny “Sir John” Isla, the first Lexus president, who traveled from Auckland, New Zealand, his base the last three years or so since his retirement, solely to participate in the tournament he had helped found with Lexus Chairman Alfred Ty almost a decade ago. Time flies, indeed.

HINO INAUGURATES 5TH VISAYAS DEALERSHIP IN LEYTE

EDICATED to promoting its promise of Total Support, Hino Motors Philippines (HMP), the exclusive distributor of Hino trucks and buses in the Philippines, expands its retail network with Hino Leyte, the company’s first dealership in 2020. Hino Leyte, which is HMP’s fifth dealership in the Visayas region, is located along 88 National Highway, Barangay 79, Marasbaras, Tacloban City, Leyte, and is managed by Hino Leyte Inc. A full line 3S dealership complete with sales, spare parts and aftersales services, it houses a complete lineup of products including Light-Duty Trucks, Medium-Duty Trucks, Heavy-Duty Trucks, Buses

and Modernized PUVs. It officially opens for business this month after its soft opening last December. Hino President Mitsuharu Tabata assures customers of Hino’s continued commitment to provide fast, reliable and environment-friendly means of transporting goods and people. “We recognize the growing needs of the Leyte community for better truck and bus solutions and we are honored to be of service to them as we give back to the loyal customers who have supported us through the years. Through Hino Leyte, we will continue to provide Total Support like we always have in all our dealerships, products and services,” he shared. Hino invested in the sustained growth

of Leyte’s economy, which was fueled by the various construction projects under the “Build, Build, Build” program and the continuous rehabilitation efforts that gave the local community job opportunities for micro-, small- and medium-scale entrepreneurs. These rehabilitation efforts include the yet-to-be-approved master development plan for the Leyte Ecological Industrial Zone (LEIZ), which is projected to attract investors to Leyte. Known for providing safe, durable and reliable trucks, HMP has been assembling and exclusively distributing quality Hino trucks and buses in the Philippines for 45 years to meet the transport needs of businesses ranging from small and medium enterprises to big corporations. The new dealership is Hino’s latest milestone as HMP continues to strengthen its presence in key regional cities in the Philippines by providing innovative logistics solutions to more communities.

URBAN PARKING SOLUTIONS

S the number of vehicles on the road doubles every fiscal year, finding a safe place to park your car is an urban problem we experience every single day. Adding to this predicament are the local government laws that prohibit street parking, which is essentially good to free up space along the road network around Metro Manila. One wrong parking move and you’ll find yourself having your car burglarized or towed in business districts like Makati, Ortigas and Manila. What is happening in Japan, Korea, Singapore, Taiwan, etc...is also happening here in our country. Gentrification has caused a lot of areas around the whole country to build new high rise beside existing old structures. While this has helped bring up real-estate prices, it has also limited the options or spaces where people can park as most open spaces have been sold or are being developed. Before people used to park on the streets without any problems, now the streets are cleared out to accommodate rising traffic. This is where Smart Parking comes in. Smart Parking was first developed and used in Japan and eventually spread across to Korea, and its neighboring countries. One can convert an underutilized space of 33 square meters (approximately two parking slots) and increase it vertically to 12 or 16 vehicles. Ingress and egress is not a problem as there is an optional turntable that can go with the unit. At 12.5-sq-m per slot, that is an extra 150 sq.m to 200 sq m of real estate that you have added into your existing property that can attract tenants and customers to your building. Smart Parking has sold over 566 units in over 32 countries. It can be installed in five days and is very safe, easy and economical to use. Smart Parking carries a 10year warranty on parts and lifetime free service on labor which means maintenance cost is very minimal. And the best part is should you wish to relocate it to another location, it can be easily transferred. For details on how to maximize your parking space, you may call 372 3601 to 05 or send e-mail at smartparking@emicor-inc.com.

2020 Vision ‘CHALLENGING YEAR’ www.businessmirror.com.ph

BusinessMirror

Friday, February 21, 2020 F1

PHL tourism sector hard-hit by crises, but sees opportunities in adversity

TOURISTS wearing protective masks ride a calesa in Manila’s Chinatown, February 3, 2020. AP/AARON FAVILA

By Ma. Stella F. Arnaldo Special to the BusinessMirror

ARELY recovered from the closure of Boracay Island, which rendered 30,000 people jobless, and some 500 resorts without a source of income for six months in 2018, the local tourism industry faces what appears to be an even larger predicament in 2020. With the novel coronavirus (COVID-19) outbreak weighing heavily on the horizon, 95,000 tourism jobs are now at stake, according to the National Economic and Development Authority (See, “Virus may cost 95,000 jobs in tourism,” in the BusinessMirror, February 13, 2020).

Last year, some 1.74 million Chinese nationals visited the Philippines, an impressive 38.6-percent increase from 2018. While visitor receipts for 2019 have yet to be made available, the market did spend P110.8 billion in 2018, a mind-blowing 73-percent jump from 2017. About 1.26 million Chinese nationals visited the Philippines in 2018, up 29.2 percent from 2017, and in spite of Continued on F2

2020 Vision BusinessMirror

F2 Friday, February 21, 2020

www.businessmirror.com.ph

‘CHALLENGING YEAR’ PHL tourism sector hard-hit by crises, but sees opportunities in adversity Continued from F1

the closure of Boracay, a favorite destination. To stem the growing outbreak and prevent it from affecting neighboring countries, Beijing has suspended outbound travels of its citizens. Manila, as well, initiated a travel ban in and out of mainland China, Hong Kong, and Macau. It later added Taiwan, but soon after lifted the ban on a strong clamor by various sectors in both Manila and Taipei who warned of the economic consequences and who cited Taiwan’s record in capably dealing with the outbreaks. The ban on outbound travel for Hong Kong and Macau was partly lifted on Tuesday (February 18), for overseas Filipino workers (OFW) and students. The Department of Tourism (DOT) estimates that, with the loss of the greater China market, the economy will have to forego P38.2 billion in tourism receipts from February to April. (Fortunately, government had since lifted the travel ban on Taiwan, or else tourism revenue losses would have reached P43 billion.) So it’s no wonder that tourism veteran Cesar Cruz, president of the 650-strong Philippine Tour Operators Association (Philtoa), describes his outlook for the tourism industry this year in one word: “Challenging.” He stresses the travel ban

won’t just affect the Philipines’s inbound market, but outbound travel as well, as China is also a major destination for Filipinos traveling abroad. “We’ve received reports from members saying their outbound packages have been cancelled already.” He also foresees arrivals from North America and Europe impacted by the travel ban announced by Manila, primarily because many foreign carriers use China as transit points. “If you come from those long-haul markets, and pass through China, you will be banned from coming [into the Philippines] or go on a 14-day quarantine,” he says. “And it’s not easy to reroute your ticket.” Unfortunately, even if the COVID-19 crisis eases by, say, the end of February, Cruz predicts another “four to six months” for the Philippine tourism industry to recover. This means the DOT will have more difficulty reaching its target foreign arrivals of 9.2 million this year.

Marketing push

TO counteract the anticipated drop in Chinese tourists, the DOT and the Tourism Congress of the Philippines formally announced on February 10 a domestic marketing push, with President Duterte encouraging Filipinos to travel around the country. In a press briefing to announce the new program, Tourism Sec-

A MAN wearing protective mask passes booths during a travel fair in Manila, February 7, 2020. The organizer said the impact of travel bans due to the new virus has already affected tourism in the Philippines due to the huge Chinese market. Asian nations have profited handsomely from the impressive growth in tourists from China over the past decade, but the specter of a rapidly spreading virus has raised concerns over the industry prospects. AP/AARON FAVILA

retary Bernadette Romulo Puyat said Duterte will be leading off the domestic marketing campaign with visits to Boracay, Bohol, and Cebu—the destinations hardest hit by the travel ban on China and its territories. This will mean deep discounts on airfare and hotel accommodations (See, “Airlines, hotels cut rates to boost domestic travel amid nCoV crisis,” in the BusinessMirror, Feb. 10, 2020). The upside, says Cruz, who also owns TRIPS Travel, is there are other local destinations which do not rely solely on the Chinese market. “But the question is, ‘Is the public really ready to travel?’”

Mindset, content

THIS could be the most formidable obstacle for the DOT and tourism stakeholders, he says; that is to change the mindset of the Filipinos and assure them of the safety of traveling. Because

IN spite of the closure of Boracay, a favorite destination, about 1.26 million Chinese nationals visited the Philippines in 2018, up 29.2 percent from 2017. BRIX VILLARUEL

of the Department of Health’s warnings to avoid crowds, many would-be tourists don’t even want to travel by air—an enclosed space—anymore. But more than the lower prices from airlines and hotels, Cruz adds, stakeholders need to add better content to the packages to promote intra-Philippines travel. “Take for example Boracay. How many people have been to Boracay? What will give them enough reason to go back to Boracay? Is there something new, not just the prices? The package has to have good content as well.” For markets abroad, Romulo Puyat has said the DOT will be intensifying its promotions of Philippine destinations. The agency will even be pushing through with a nationwide shopping festival in the entire month of March, marketing it specifically to Asean members, Japan, Korea,

and balikbayans (homecoming Filipinos). Tour packages will be made available to foreign tourists as well as discounts in participating malls nationwide, especially on Filipino products. (See, “DOT to push fun shopping in the Philippines to attract foreign tourists,” in the BusinessMirror, February 12, 2020). So Cruz emphasizes that it’s not a lost cause. He says the tourism situation is far from bleak or depressing. There are still opportunities to be made, despite the COVID-19 fears. After all, they’ve beaten back losses after the People Power Revolution, the Asian financial crisis, SARS, and the Boracay closure. He and his fellow stakeholders are rolling up their sleeves and getting to work. Tourism is a business after all, and there’s still some money to be made, however huge or little.

Accor Group expanding network with 15 more hotels in the PHL By Ma. Stella F. Arnaldo Special to the BusinessMirror

WORLDWIDE hospitality group Accor will be expanding its network in the Philippines, bringing it to 23 hotels by 2025. In an interview via e-mail with Gaynor Reid, Vice President Communications for Asia Pacific at AccorHotels, she said, “We also have 15 hotels in the pipeline, which will bring our network to 23 hotels in the Philippines—all set to open by 2025.” Accor currently manages eight hotels for various local investors such as Raffles Makati, Fairmont Makati, Movenpick Mactan Island in Cebu, Movenpick Resort and Spa in Boracay, Novotel Manila Araneta in Cubao, Quezon City, Mercure Manila Ortigas, and Joy Nostalg Manila also in the Ortigas business district. “We expect to open the MGallery Admiral Suites Hotel (Manila), Novotel Blue Coral Resort Mactan, and Novotel Manila @Aqua in 2020, Ibis Styles Manila

Araneta, and Ibis Styles Manila Malate in 2021, and others before 2025,” she told the BusinessMirror. Reid said, with the rising number of tourists in the Philippines, Accor’s hotels have seen higher profits, encouraged the hospitality group to further expand its network in the country. “The Philippines has been a country where traditionally opening hotels has been slower than in some parts of Asia. In the past few years, tourism has grown significantly and RevPAR [revenue per available room] is up by 15.8 percent for our hotels in the past 12 months to October 2019, so there is growing demand for quality hotel infrastructure and investment,” she noted. In 2019, inbound tourists in the Philippines increased by some 15.4 percent to 8.26 million from the 7.16 million in fullyear 2018. The Department of Tourism is targeting an increase in foreign tourists to 9.2 million in 2020. “We also believe the Philippines has

a lot of potential as a tourism destination because it has incredible natural attractions, beautiful islands and beaches, great food culture, and Unesco heritage sites,” said Reid. “The Filipinos are also incredibly friendly and welcoming, so we believe there is great growth to come for this sector and that it will create some strong economic opportunities,” she added. Aside from those already mentioned, the Accor Group is also looking to bring in other brands such as Pullman Living, Swissotel, Banyan Tree and Angsana, “so the country will have a diverse cross section of our portfolio for every type of traveler,” she said. In an earlier interview with this paper, Bases Conversion and Development Authority (BCDA) president and CEO Vivencio B. Dizon said the first phase of development of New Clark City in Tarlac will include the opening of “Angsana Hotel. But Banyan Tree is building villas for longterm lease. This is all part of the first phase until 2022.” (See “Clark catches MICE ‘fever’,”

in the BusinessMirror, November 17, 2019.) Interviewed shortly after Accor took over management of Sofitel Philippine Plaza, Michael Issenberg—now chairman and CEO of Accor Asia Pacific, which oversees the Philippines operations— disclosed some difficulties with an earlier partner as the hospitality tried to get a foothold in the country as early as 1998. The firm returned in 2002 through Century Suites, a budget hotel in Quezon City, now closed. But Accor made heads turn when it started managing the newly renovated Philippine Plaza, owned by Philippine Plaza Holdings Inc., in 2006. “While we definitely believe there is an opportunity in the economy sector, we felt that it was important to reenter the market with a flagship property that made a statement,” said Issenberg then. Issenberg and other Accor officials met with DOT Secretary Bernadette Romulo Puyat last December, informing her about the group’s expansion plans.

TOURISM Secretary Bernadette Romulo Puyat met last December officials of the Accor Group led by Michael Issenberg, chairman of Accor Asia Pacific (fifth from left). They informed her of the expansion plans of the hospitality group in the Philippines. From left: Accor VP for Development Chris Cho, DOT Undersecretary Benito Bengzon Jr., AccorHotels COO Patrick Basset, and Cluster GM for Fairmont Raffles Hotels Bernd Schneider. PHOTO COURTESY DOT

BusinessMirror

Friday, February 21, 2020 F3

‘WILD RIDE’

IN 2020 Though crisis-tested, poultry raisers ‘cautiously optimistic’ about the future

SKYPIXEL | DREAMSTIME.COM

www.businessmirror.com.ph

2020 Vision

By Jasper Emmanuel Y. Arcalas

HE local broiler industry has overcome difficult hurdles thrown its way in the previous decade, including the bird-flu outbreak in 2017, which caused raisers to incur huge losses due to the steep decline in farm-gate prices. Continued on F4

2020 Vision BusinessMirror

F4 Friday, February 21, 2020

www.businessmirror.com.ph

‘WILD RIDE’ IN 2020

NONOY LACZA

Though crisis-tested, poultry raisers ‘cautiously optimistic’ about the future

Continued from F3

Despite the fact that the avian influenza (AI) outbreaks did not hit broiler farms, they bore the brunt of the backlash against the discovery of the disease. The dreaded AI subtype H5N6 struck layer and quail farms. Due to consumer panic induced by misinformation, demand for chicken fell drastically, forcing raisers to sell their live broilers for as low as P10 per kilogram. Some even offered their broilers for free to neighbors so their efforts will not go to waste. It took two months for demand to rebound and broiler raisers to resume production to meet the requirement for poultry, as consumers became aware of the nature and impact of bird flu.

MORE than a year after government announced the detection of bird flu in local poultry farms, raisers had to wrestle again with a familiar foe: oversupply faced by the lack of sound data on chicken demand and supply. The glut was exacerbated by the high inventory of imported poultry in cold storages. By early 2019, broiler raisers had to endure quotations that are lower than their production cost, with some industry players claiming that the situation was even worse than in 2017, when bird flu hit Central Luzon. Even the big industry players were forced to sell poultry at a bargain. The retail prices of branded dressed chicken declined by as much as 31 percent to as low as P88 per kilogram for a bundle of five whole dressed chicken. The resilience of the broiler industry, which has been touted by government officials and experts as the farm sector’s growth engine, is being tested anew. According to industry players, this year may prove to be more challenging than the previous years. “I have never seen a year like [2020] and it is just January. This is more challenging potentially compared to 2017 and 2019,” United Broiler Raisers Association President Elias Jose Inciong told the BusinessMirror. Inciong has

been raising broiler chicken for more than two decades.

Pressures

INCIONG noted that the broiler industry is currently faced with supply-and-demand pressures caused by internal and external factors. For one, the Department of Agriculture has announced that broiler is its “priority option” as a substitute for pork as the country grapples with the havoc wreaked by African swine fever (ASF) on the local hog industry. “It’s a very challenging task to fill the gap in pork supply. That’s a lot of pork,” said Inciong. To increase supply, some hog raisers whose farms were struck by ASF are shifting to poultry. However, this could again cause chicken inventory to swell sans proper guidance in the form of data. “If they are going to produce for the live market, a glut can easily occur, especially if they are located in Regions 3 and 4-A and their market is Metro Manila,” Inciong said.

Tricky equation

THE shift to chicken from pork does not automatically mean that raising broilers would be profitable. The income of raisers could even drop if a glut occurs, according to Inciong. “Remember you are replacing pork, which takes about five to six

NONIE REYES

Oversupply

“I have never seen a year like [2020] and it is just January. This is more challenging potentially compared to 2017 and 2019.” UNITED BROILER RAISERS ASSOCIATION PRESIDENT ELIAS JOSE INCIONG, WHO HAS BEEN RAISING BROILER CHICKEN FOR MORE THAN TWO DECADES.

months to produce. It takes only about 30 days to produce broilers, hence the possibility of a chicken glut is greater,” he added. Price signals are indicating that the broiler industry’s resilience is being tested as farm-gate prices fell drastically in January.

Inciong said prices plunged below P80 per kilogram, which is “too low” considering the demand created by the ASF scare. He said the farm-gate price of broiler started to rise in the third quarter of last year following the outbreaks of ASF in Luzon. The figure peaked to over P100 per kilogram during that period. The Ubra official attributed the decline in farm-gate prices to higher carryover inventory of imported poultry, which rose to an unprecedented level last year, as importers took advantage of higher demand. The country’s chicken meat imports last year rose to a record-high 340.332 million kg, of which over 110 million kg consisted of chicken cuts and chicken leg quarters.

Viruses

COMPOUNDING the woes of poultry raisers are the detrimental effects of the 2019 novel coronavirus (COVID-19). The virus, according to economists, is expected to discourage Filipinos from eating out. Ateneo Center for Economic Research and Development Director Alvin P. Ang estimates that Filipinos’ expenditure for eating out would drop by 12 percent. This projection is discouraging for the broiler industry, which has grown in recent years due to the continuous increase in the Filipinos’

consumption of meat-based dishes, particularly outside of their homes. However, Inciong said he remains optimistic that sooner or later, Filipinos would find their way again into restaurants despite the COVID-19 scare. “Eventually people will get out of their homes, provided that no Filipino will [be struck by the virus].” Thus far, no Filipino has been hit by COVID-19 in the country. All Filipinos who tested positive for it were crew members of the cruise ship Diamond Princess, which has been stuck for weeks in Japan, its over 3,000 passengers and crew on forced quarantine. Apart from COVID-19, Inciong said the industry is also concerned about the outbreak of avian influenza subtype H5N1 in China. This development could threaten the bird flu-free status of the Philippines, particularly if infected goods will enter the country. While the challenges hounding the broiler industry this year are “more unmanageable” compared to those it faced in previous years, Inciong said raisers are moving forward with “cautious optimism.” Raisers expect to produce a new record high of 1.632 million metric tons of broilers this year, higher than last year’s 1.55 MMT. “But it’s going to be a wild ride. It’s really a difficult year,” he said.

2020 Vision BusinessMirror

www.businessmirror.com.ph

Friday, February 21, 2020 F5

TIGHTENING WINDOW TO 2025 There’s little time to reap ‘demographic

dividend’ as hurdles outrace productivity

By Cai U. Ordinario

TATIANA KORNYLYEVA | DREAMSTIME.COM

S the world grapples with the rapid spread of communicable diseases such as the novel coronavirus or COVID-19, other health concerns have taken a backseat.

In the Philippines, these include issues surrounding reproductive health, which impinges not only on the spread of communicable diseases such as HIV/AIDS, but also the country’s overall socioeconomic development. “Whenever you have an epidemic, everything seems much smaller. Epidemics always happen. They have a lifespan. Now what we need to do is minimize, contain that epidemic so we can bounce back easier,” Commission on Population and Development (Popcom) Undersecretary Juan Antonio Perez III told BusinessMirror. “In a way, development may take one step back.” However, Perez said the country’s reproductive health issues have not only caused an increase in the country’s population but also in poverty incidence. Data showed that in the past 10 years, about 1.2 million teenagers have started families of their own.

Children having children

PREGNANCIES among very young adolescents (VYA), or those between 10 and 14 years old, continued to rise in the country in 2018, based on the latest data from the Philippine Statistics Authority (PSA), which noted an increase from 1,958 births in 2017 to 2,250 the year after. Popcom also said the synergized adolescent health and development initiatives of the government have borne fruit, evidenced by a marked decline in the number of births from teenage mothers 15 to 19 years old. Data from the PSA’s Civil Registration and Vital Statistics revealed that the said teenage group saw a decrease in the number of births from 182,906 in 2017 to 181,717 in 2018. However, the number of births by VYAs has been increasing since 2011 (1,381) to 2018 (2,250), which is a 63-percent rise. Total births from adolescents actually declined to 183,967 births despite the increase in births from VYAs or 504 deliveries per day. Perez said teenage and adolescent pregnancies could have contributed to the country’s poverty incidence. He said based on a 2004 study made by former socioeconomic planning Secretary Arsenio M. Balisacan, who is currently the head of the Philippine Competition Commission, and National Statistician Claire Dennis S. Mapa, there is a “core poverty” in the country comprising about 20 percent of the population. The Popcom head believes that, among other reasons, teenage pregnancy has contributed to the difficulties in addressing core poverty. Perez explained: many mothers who started childbearing as teenagers tend to have children who also find themselves in the same predicament when they become adolescents. Continued on F6

F6 Friday, February 21, 2020

2020 Vision BusinessMirror

www.businessmirror.com.ph

Tightening window to 2025 SOCIOECONOMIC PLANNING SECRETARY AND POPCOM CHAIRMAN ERNESTO M. PERNIA HAS DECLARED THE TEEN PREGNANCY SITUATION IN THE PHILIPPINES

MIRKO VITALI | DREAMSTIME.COM

AS A “NATIONAL SOCIAL EMERGENCY.”

Perez said this is supported by studies showing adolescent mothers who join the workforce earn 6 times lower than women who do not bear children as adolescents. This contributes to their low incomes and economic difficulties throughout their lives. This also compromises their ability to raise their children and help them escape the same fate. “I believe that [core poverty] is being fueled by teen pregnancy to some extent. Although I’ve seen that in many communities [where the] mother also started childbearing as a teenager and ended up as a recipient of the 4Ps and it is likely that her child will suffer the same fate,” Perez said. “They became part of the core poor who comprise 20 percent [of the population]. Whatever we do, that will be our major problem and most difficult nut to crack. So teen pregnancy reduction and addressing it would help us reduce core poverty,” he added.

Playing catch-up

BALISACAN’S and Mapa’s study showed that population growth impacts on the ability of the country to reap the demographic dividend. They found that population growth rates have opposing effects on economic growth. If the average population growth is high, it could have a dampening effect on growth while an increase in the number of workers will boost economic growth. Despite this finding, Perez said it is important to lower fertility rates to allow families to invest in their children more. This means investing in better health care and

education so that children will be healthy and productive citizens of society. This will not only allow the country to manage population growth but also reap the demographic dividend. Perez said the Philippines now only has five years to reap the demographic dividend. He explained that originally, in 1990, the country estimated it will hit replacement rate or 2.1 children per woman, in 2000. It has been 20 years and the country still has a fertility rate of 2.7 children per woman. Based on the 2015 Population Census, data from the PSA showed that the replacement rate of 2.1 children per woman is attainable by 2025. By 2025, the PSA estimates there would be 115.378 million Filipinos—of whom 58.19 million are males and 57.186 million, females. Perez explained that the three conditions in reaping the demographic dividend include the reduction of the total fertility rate (TFR) of 2.1 which, based on PSA estimates, is already attainable by 2025. However, when it comes to the two other conditions, Perez said much work still needs to be done. The two conditions are that majority of the population are of working age; the third condition is having a dependency ratio of 50 percent. “In 1990, we thought we’d hit replacement rate by 2000. So we’re already, right now, 20 years delayed and we have been left behind by Asean countries. So let me say that the best opportunity is between now and 2025. If we miss this window, it will be more difficult because the population will start aging,” Perez said.

When this happens, Perez said the government will be hardpressed to finance the education of young Filipinos and pensions of the older generation in the population. This would be “more problematic” for the Philippines. Perez explained that there are two kinds of demographic dividend. One is low fertility, which will improve incomes of households, and the second is the generation of savings. High incomes for households means better health and education services, while savings means investments that could boost the economy. He added that there is also a projected third dividend where families with only two children benefit from the first two dividends and lead to bigger household incomes and a larger contribution to the economy in general. But, Perez said, this will not be immediate compared to the first two dividends.

Moving forward

NATIONAL Economic and Development Authority (Neda) Undersecretary Rosemarie G. Edillon said this is where a long-term development agenda comes in. Edillon said this “plan framework” will factor in opportunities such as reaping the demographic dividend and threats such as climate change. This, Edillon said, also entails developing competencies at the local level, particularly in having a good population development program. “You won’t be able to get to that [demographic] window if there are no opportunities for this burgeoning working-age population; this is a waste. That’s why you really need very good people. That’s

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why this early, we need to develop those competencies,” Edillon said. This will ensure that Filipinos are healthy and have longer lifespans. Edillon said apart from lower fertility rates, the country also needs to reduce mortality rate. Filipinos with long productive lives are a big boost to the economy. In order to address these concerns, Perez said Popcom’s priorities include addressing teen and adolescent pregnancies nationwide. For Popcom, this includes the passage of the Teenage Pregnancy Prevention Bill. Socioeconomic Planning Secretary and Popcom Chairman Ernesto M. Pernia has declared the teen pregnancy situation in the Philippines as a “na-

tional social emergency.” If passed, the law would enable support for teenage mothers to be reintegrated to the community as a means of social protection. It will allow for adolescent moms to continue their education and help them earn a decent living in the future. “Another focus will be on regional actions to achieve the demographic dividend in some regions like NCR [National Capital Region], Calabarzon, which are in an advanced stage of achieving gains from an early demographic dividend,” Perez said. Regions have different age structures, Perez said. He said this means some regions with lower fertility rates but high internal migra-

tion or high daytime populations may develop population policies to address these burgeoning issues. He said while Popcom still has not received complete funding for these programs this year, this is already being addressed through continuing appropriations and savings identified by the Department of Budget and Management (DBM). The next year—and the next decade—will be challenging, to say the least, for the Philippines as it plays catch-up in reaping the demographic dividend. But the government believes opportunities exist and are within the country’s grasp—even amid health emergencies such as COVID-19 and other challenges.

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Friday, February 21, 2020 F7

‘SURPRISING’ 2020 Headwinds buffet local bourse early, but reforms act as business stimulus

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‘SURPRISING’ 2020 Headwinds buffet local bourse early, but reforms act as business stimulus

THE eruption of Taal Volcano may cause serious repercussions for many listed property developers who had investments in Cavite, Laguna and Batangas. BERNARD TESTA

By VG Cabuag

NVESTORS generally hate surprises. They want tranquility or a semblance of it. Some even wish that they knew when chaos would erupt so they can exact more returns on their investment. Two months into 2020, however, the market was jolted by a number of surprises—Taal Volcano’s eruption, outbreaks of the 2019-novel coronavirus (COVID-19) that originated in Wuhan, China, and more recently, the termination of the Visiting Forces Agreement (VFA) between the Philippines and the United States. These developments came just weeks apart, forcing investors to sit on the sidelines and wait for things to settle down. The eruption of Taal Volcano and the outbreak of COVID-19 caused prices at the Philippine Stock Exchange (PSE) to fall, dampening any hope of returns for those who placed their bet on the local stock market. The benchmark PSE index fell to 7,100 points, and COL Financial Inc.’s technical analyst Juanis Barredo expects it to fall further to 6,800 points. “The first half of the year value turnover may be lighter than usual as investors will refrain from taking large bets. Hopefully, fewer cases of COVID-19 are reported and second-half foreign funds will

turn to ‘risk on’ and start bargain hunting once again,” said Barredo. COVID-19 created ripples in every country in Asia-Pacific, including the Philippines. The outbreaks had also confirmed that China’s influence on the world economy is now larger than before. Also, the eruption of Taal Volcano may cause serious repercussions for many listed property developers who had investments in Cavite, Laguna and Batangas. Taal’s eruption on January 12 surprised everyone, even the experts

who were supposedly watching the volcano since last year. “We forgot that Taal was an active volcano,” said one public-relations officer.

Taal’s impact

OVER the years, huge property developers such as the SM group, the Villar family, Ayala Land and even Andrew Tan’s Megaworld have flocked to Tagaytay or nearby places like Alfonso and Silang in Cavite, to build resorts. The cool weather of Tagaytay encouraged property developers to pour investments there. The SM group built a large condominium in Tagaytay aside from the exclusive Tagaytay Highlands. The Ayala Group built a mall facing the volcano, while Filinvest Group opened a mall in the center of Tagaytay. The Twin Lakes development of a unit of Megaworld is in Alfonso, Cavite, while other developers placed their bets on the Batulao area, also facing the volcano. Currently, most of these developers are mum on the possible impact of the volcano’s eruption on their business. However, property services firm Colliers International Group Inc. said Taal will affect hotel occupancy rate in areas near the volcano. “The eruption of Taal Volcano may shift demand to the Metro Manila hotels and MICE [Meetings, Incentives, Conventions and Events] facilities in the first half as the Calaba [Cavite, Laguna and Batangas] region will be put under pressure. Occupancy is expected to reach 68 percent in 2020, lower than the 72 percent posted in 2019

due to the delivery of more hotel rooms,” said Colliers International Group Inc. in its research note.

Guidance

INVESTORS know that surprises are impossible to avoid, so they turn to analysts and the government, mainly the regulators, for guidance. “As it was in 2019, there is enough on the table to get optimism going. However, the risks appear to have become heavier to bear. We have reason to hope that 2020 will be a better year. Though a lot of ‘ifs’ were left hanging,” said Philstocks Financials Inc. head of research Justino Calaycay Jr. “We have guidance on how best to take advantage of the present circumstances. But the elephant in the room, one that could derail all these, is regulatory risk. Thus, our call for caution,” Calaycay added. The regulators have their hands full, as they have to act considering that the market continues to grow despite the fall in stock prices. For the market to grow, however, it must be fueled by volume or liquidity. With the termination of the VFA, fund managers, most of whom have American ties, will naturally shy away from putting their money in a country that is trying to sever its ties with the US. Funds raised through the PSE plunged last year to just P95 billion, or less than half the record in 2018. However, most of the money was raised via bond floats. Listings at the Philippine Dealing and Exchange Corp. by the end of the year reached P336.67 billion, one of its highest ever.

Stimulus, reforms

“THE markets are actually getting deeper. They’re not crowding each other out. And it started in 2018 despite the high inflation,” said Commissioner Ephyro Luis B. Amatong of the Securities and Exchange Commission (SEC). The SEC has approved the guidelines for securities borrowing and lending that will pave the way for short selling at the PSE. “With the implementing guidelines on short selling in place, we look forward to more robust activity in the stock market. The Commission, however, notes that it shall not balk at exercising its authority to suspend or prohibit short selling in an exchange when necessary for the protection of investors,” said SEC Chairman Emilio B. Aquino. In short selling, an investor borrows the security from another person and sells it, as he views it as being overpriced, and anticipates that its price will go down. When the price goes down, the investor buys it back and delivers it to the lender and pockets the difference. The Department of Finance (DOF) also approved the amended implementing rules and regulations of the Real Estate Investment Trust (REIT) Act of 2009, and subsequently, a number of companies have already filed their respective REIT listings, led by Ayala Land Inc. “I don’t know if the short selling [product] will shore up volume for the PSE this year, but I think the REITs can because it is a way to recycle cash from the properties,” Cristina Ulang, First Metro Investment Corp.’s research head, said.

Aside from the new product offering, the SEC is also requiring listed companies to have a separate report on sustainability starting this year. The move is to allow local firms to tap sources of funding that require sustainability reporting. Rachel Esther J. GumtangRemalante, OIC director at SEC’s Corporate Governance and Finance Department, said companies should file a separate report on Sustainability Reporting guidelines, which mainly touches on a company’s effort on environment, social and governance. The SEC’s guidelines are 90 percent drawn from the standards of the Global Reporting Initiative (GRI), she said. “For the first three years, we require them [listed firms] to comply or explain. So for this year they will have to start submitting, and if the information is not available they will have to tell us that the data is not yet there, but you have to file a report,” said Remalante. “For the next three years we expect that they will tell us that the data has not been collected yet and they’re still putting up systems to collect the data and are going to measure it,” she added. Remalante warned, however, that the SEC will also check the quality of the report, while the PSE will mine these reports as basis for its Belle Awards this year. “It won’t be garbage in and garbage out. It’s going to be an exciting time for the SEC for the next few months. Because we’re going to wait for the report,” she said.

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CHALLENGES

Friday, February 21, 2020 F2-1

WITHIN AND OUTSIDE Automobile sector braces for tough year, but govt sees them riding past hurdles

By Elijah Felice Rosales

N 2018 it was local. The government placed excise taxes on automobiles under the Tax Reform for Acceleration and Inclusion (TRAIN) law. As such, car sales that year fell more than 16 percent to 357,410 units, from 425,673 units in 2017.

A MODEL stands next to a Haval F5 SUV by Great Wall Motors Co. Ltd., a Chinese automobile manufacturer, during the Auto Expo, in Greater Noida near New Delhi, India, February 6, 2020. On January 17, 2020, Great Wall Motors and General Motors signed an agreement to acquire General Motors India’s Talegaon factory, to enter in the Indian market, according to a press release. AP/MANISH SWARUP

Last year, it was global. The trade conflict between the United States and China intensified in such a way that merchandise trade worldwide declined. Although the automotive industry was able to recover sales by 3.5 percent to 369,941 units, it failed to hit its goal of a 10-percent growth. This year, 2020, the situation and outlook for the automobile industry is shaped by a combination of challenges from within and outside. On one end, authorities are eyeing to place a safeguard measure on car imports to compel manufacturers to expand their operations here and increase employment. On the other, the spread of the novel coronavirus in China is hampering production there, and it’s hurting vehicle assemblers here. In spite of the obstacles facing the industry, the government is optimistic it will be able to drive past them. After all, last year showed signs that the industry is back on track in terms of sales performance. However, industry leaders themselves are cautious of the road blocks they will go through this year, as they foresee a bumpy ride just like the last two years.

Safeguard measures

IN January the Department of Trade and Industry (DTI) announced it will be acting on a petition to apply safeguard measures on the importation of motor vehicles. The petition, lodged by trade union Philippine Metalworkers’ Alliance (PMA), seeks to increase tariff rates on cars to prevent the further loss of jobs in the motor vehicle manufacturing sector. Continued on F2-2

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Challenges within and outside

WORKERS watch a container ship arrive at a port in Qingdao in east China’s Shandong province, February 4, 2020. Chinese vehicle producers are struggling to reopen all of their factories after temporarily shutting them down to protect their workers from possible infection of the dreaded respiratory illness. CHINATOPIX VIA AP Continued from F2-1

Import surge

FOR the PMA, a safeguard measure is necessary to stop the alleged import surge in automobile products. Car makers are reportedly choosing Thailand and Indonesia as their investment sites in Southeast Asia, as they can just ship units to the Philippines at zero duty under the region’s trade treaty. Their decision to locate their factories in Thailand and Indonesia is reducing job opportunities in the Philippines, the PMA claimed. According to the DTI report, majority of the country’s vehicle imports come from Thailand, Indonesia and South Korea during the POI.

In a recent interview, Trade Secretary Ramon M. Lopez said the DTI’s decision to consider the imposition of a safeguard on automobiles is a message to manufacturers that the government is serious in improving local manufacturing. In doing so, he bared that the agency is trying to strike a balance between the protection of domestic producers and competition in the market. “With that, we impressed upon them [car firms] that it’s high time we gave importance to the local manufacturing industry,” Lopez said. “We are trying to balance also the protection to the local manufacturers, while we want also to encourage more players here and competition.”

Asean free trade

ROMMEL R. GUTIERREZ, president of the Chamber of Automotive Manufacturers of the Philippines (Campi), said the government has to intensively study the implications of putting a safeguard measure on automobiles. There are, he disclosed, negative effects that will accompany such move, but did not expound on them.

while Volkswagen AG, Ford Motor, Mercedes-Benz and Geely partially commenced work last week. General Motors restarted its production over the weekend, while Nissan is eyeing to resume this week. The temporary shutdown of car manufacturing plants in China resulted in the disruption of the global trade of automobile and its parts. Fortunately for vehicle assemblers in the Philippines, their input sources are mostly within the Southeast Asian region. In the case of Toyota Motor Philippines Corp., for which Gutierrez serves as first vice president, it exports transmission gears to its Toyota counterparts in Thailand, Indonesia and Malaysia. On the other hand, the firm imports engines from regional affiliates.

Tentative times

NONIE REYES

Based on the DTI’s records, imports of passenger cars surged 17.85 percent to 180,939 units in 2015, from 153,531 units in 2014; jumped 31.53 percent to 237,995 units in 2016; and went up a little over 2 percent to 243,129 units in 2017. It dropped nearly 15 percent to 207,248 units in 2018, which was attributed to the new tax policy under the TRAIN law. “Over the five years, imported motor vehicles have grown 35 percent, from 153,531 units in 2014 to 207,248 units in 2018. It was observed that during the POI [period of investigation], motor vehicles are being imported in increased quantities in absolute terms,” the DTI said in a report. The trend is almost the same with the imports of light commercial vehicles, which rose nearly 4 percent to 17,898 units in 2015, from 17,280 units in 2014; grew 36.4 percent to 24,413 units; and roughly 54 percent to 37,571 units in 2016. In 2017, imports jumped 38.32 percent to peak at 51,969 units, completing what the DTI called “an increasing trend.”

“The DTI has to carefully study that. They should look at it seriously because that will have its negative impact as well,” Gutierrez told reporters in a recent interview. Last year Vicente S. Socco, chairman of GT Capital Auto Dealership Holdings Inc., warned against the plan to apply a safeguard on vehicle imports, as it could infringe the free-trade agreement that the Philippines signed with its Southeast Asian partners. He argued that a safeguard goes against the nature of the trade deal promoting free movement of goods within the region. “I think the Asean [Association of Southeast Asian Nations]

free trade is premised on the free flow of goods and services. Any kind of barrier that might infringe on the Asean spirit, I think we have to be very mindful of that,” Socco said.

Coronavirus

ON the global scale, the industry is hoping China gets to solve the novel coronavirus puzzle the soonest. Vehicle producers there are struggling to reopen all of their factories after temporarily shutting them down to protect their workers from possible infection of the dreaded respiratory illness. Toyota resumed operations for two of its plants on Monday,

The temporary shutdown of car manufacturing plants in China resulted in the disruption of the global trade of automobile and its parts. Fortunately for vehicle assemblers in the Philippines, their input sources are mostly within the Southeast Asian region.

THE uncertainties from the national to the global are the reasons Campi has yet to set a growth objective for this year. Gutierrez said Campi member firms have yet to identify sales targets for 2020, which the organization uses as a basis for the industry-wide objective. Lopez, however, is optimistic the industry will sustain its growth from last year. He explained it will be easier for the industry to register a positive performance since base figures are relatively lower than the usual. “The industry was challenged in 2018, and in 2019 it recovered. I think 2020 should recover also with consumer spending going up,” the trade chief said. “I think the industry is recovered now. It’s more of the base effect, that the industry is limited in 2018 and I think the consumer spending confidence is still okay,” he added.

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Friday, February 21, 2020 F2-3

Helping SMEs become sustainable

By Edwin P. Sallan

N recent years, small and medium enterprises (SME) in the Philippines have grown by leaps and bounds. Driven mostly by dynamic entrepreneurs, these emerging outfits continue to thrive on the strength of market and technological innovations. It’s no surprise therefore that the Bank of the Philippine Islands (BPI) considers SMEs as key players in nation building and foresee huge growth potential for this particular business sector. Despite their proven success, SMEs are not without their own challenges and unlike big and established businesses, most of them take for granted the importance of sustainability and caring for the environment and our natural resources. Many think being sustainable is unnecessary, expensive, impractical, difficult, and inconsequential. It’s for big companies only. Nothing could be farther from the truth. Sustainability: the new business imperative ERIC LUCHANGCO, BPI Head of Business Banking, said pursuing sustainability and implementing green projects for SMEs will result in a double benefit: less carbon emissions and sustainable business profit. “Financing a green project is actually an investment with a strong business case that covers financial and environmental impact. It is not one or the other. It’s a business imperative that SMEs can no longer take for granted,” Luchangco said. Not only does BPI provide the funds or loans for green projects; it also provides the technical expertise, including the evaluation of the viability of the project proposal and the accurate assessment of financial and technical projections. Last year, BPI expanded its Sustainable Development Finance (SDF) program to bolster its commitment to

enable sustainable businesses in the country. With SDF, BPI has consolidated its financing activities for renewable energy, energy efficiency, climate resilience, and sustainable agriculture in response to the increasing need for creating sustainable businesses across all industries. High global standards THE SDF Program’s business model ensures that projects are not only meeting global standards for being green, but also achieving enhanced business efficiency, productivity, and profitability. Through the SDF Program, BPI helps companies identify opportunities for energy savings, renewable energy generation, climate change preparedness, and sustainable agriculture; choose appropriate technologies, vendors, suppliers, integrators, and consultants; calculate potential energy cost savings and potential income from system upgrades and new installations; evaluate project feasibility studies; and validate savings and production projections. “SMEs can take advantage of the SDF program to accelerate the implementation of their green projects. Our free technical consultations are an important part of the loan package so that they can make accurate assumptions and projections and choose the best project proposal,” said Mr. Luchangco. BPI supports the UN Sustainable Development Goals (SDGs), just as parent company Ayala Corporation champions the SDGs. SDF is BPI’s concrete program that directly and deliberately addresses specific SDGs.

BPI helps SMEs take the first steps toward being sustainable through regular talks and events for clients.

Lower costs, enhanced efficiency THE SDF team aims to increase both its loan portfolio and revenues by 20 percent in 2020, as the Bank likewise helps clients increase their bottom line while going green by lowering operating costs and boosting efficiency. “We would be remiss if we do not do our part to leave the world a better place for the next generation. We need to finance clean energy, help ensure the supply of food and water, rid our country of pollution, and minimize the effects of climate change,” said Mr. Luchangco. As a bank responsible for one out of every eight pesos lent by banks in the country, he added that what BPI chooses to do and not to

ENTREPRENEURS who are serious about taking their businesses to the next level can take advantage of free consultations before embarking on their own green projects.

do can have profound effects on how our country develops. “Sustainability now plays a more central role in how we do business. And we are imparting this same consciousness and discipline to our clients, especially SMEs who are new to this way of thinking,” he said.

BUSINESS Banking Head Eric Luchangco says more SMEs need to explore the benefits of being sustainable.

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AVIATION SECTOR’S 1ST QUARTER SHOCK

COVID’s irony: When face masks fly off shelves, but planes are grounded

THE flag carrier was compelled to cancel its mainland China flights since February 2, after the government imposed a ban on travel of Filipinos to the mainland including Hong Kong and Macau and briefly, Taiwan. NONIE REYES

By Recto L. Mercene

HE aviation sector was hammered by a black swan in December 2019, when the novel coronavirus respiratory illness broke out in Wuhan city, in China’s Hubei province, leading to an unprecedented lockdown of the manufacturing hub. Soon, the contagion had spread to scores of Chinese cities, triggering the cancellations of hundreds of flights to and from China, Hong Kong, Macau and, briefly, even Taiwan. So far the officially named COVID-19 has killed over 1,770 persons and infected more than 71,000 people globally, mostly in mainland China. The contagion disrupted more than 85,000 flights to, from and within China—equal to more than a third of scheduled flights that have been canceled between January 23 and February 11, according to aviation consulting firm Cirium. The World Health Organization declared the coronavirus a global emergency and many hope the spread of the virus would slow down and be under control, like similar infectious diseases in the past two decades such as SARS, H1N1 and MersCov. Face masks flew off the shelves by the millions, causing massive shortages everywhere, while the few precious masks available were priced ridiculously high.

Much larger, this time

THE International Civil Aviation Organization (Icao) said the effects of the COVID-19 virus outbreak on the airline industry are expected to be larger than the 2002-2003 SARS epidemic because flight cancellations are more widespread this time.

And, to illustrate why the problem is much bigger this time, China’s international air traffic has doubled and its domestic air traffic increased fivefold in the last 17 years. The new coronavirus outbreak could mean a reduction of $4 billion-$5 billion in worldwide airline revenue, the Icao said on February 13. The UN agency reported that 70 airlines have canceled all international flights in and out of China and 50 others have reduced their operations. Initial estimates show a reduction of nearly 20 million

passengers compared to expectations for the first quarter of 2020. That figure equates to potential lost revenue of up to $5 billion, the agency said. European and US airlines, including United and American, largely make up the list of airlines that have canceled flights. Air travel is one of the quickest ways a disease can spread, since aircraft fly all over the world, especially from an economic hub like China.

Profitability, air traffic

BOEING’S top market prognosticator said the concerns stirred up by the virus outbreak will affect airline profitability, passenger air traffic—and the economy of so many countries as a whole. Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, said the virus factor is likely to throw an additional twist into his generally optimistic outlook for the aviation market in 2020. The rosy numbers he had trotted out earlier “don’t reflect the potential dampening effect due to coronavirus concerns that have arisen around the world over the past few weeks,” he was quoted as saying during the Pacific Northwest Aerospace annual meeting in Washington in early February. Tinseth didn’t paint a doomand-gloom picture, however. He said the impacts could change his overall projections for the year only by “a little bit.” He expressed the view that “That virus will run its course,” but nonetheless acknowledged, “Frankly, it will have an impact here. I think it’ll have an impact on GDP growth. It will have an impact on traffic growth. And I think especially as we look at our customers today, it will have an impact in terms of profitability.” Despite the travel ban restrictions on a specific sector of the travel market, it has not caused a dent on other passenger markets to North America, the Middle East, the Australias, and other regional routes. Starting February 1, the Phil-

ippines’s three largest air carriers cancelled flights to China and the Special Administration Regions of Hong Kong and Macau, joining many others around the world that imposed the same drastic measure.

PHL carriers

THE BusinessMirror asked the country’s three largest commercial air carriers, Philippine Airlines (PAL), Cebu Pacific (CEB) and Air Asia, on the impact of COVID-19 on their profit ledger and overall operations. Legacy carrier PAL said it was unable to utilize some 20,000 seats weekly between Manila and mainland China, the SAR including Taiwan. “Revenues from PAL’s China operations make up 10 percent of the company total revenues,” said spokesman Cielo Villaluna. The flag carrier was compelled to cancel its mainland China flights since February 2, after the government imposed a ban on travel of Filipinos to the mainland including Hong Kong and Macau and briefly, Taiwan. The ban has restricted foreign nationals from China from entering the Philippines, except for those holding permanent residency visa. PAL’s advisory has extended until March 28, 2020, the cancellation of flights between Manila and the following points in greater China: Beijing, Hong Kong, Guangzhou, Shanghai, Xiamen, Quanzhou (Jinjinag) and Macau. The carriers said it was compelled to cancel these flights until March 28 “in view of the continuing travel restrictions imposed by the Philippine government as a public health and safety measure, related to the novel coronavirus situation.”

The travel restrictions:

n ban the entry into the Philippines of any person, except Filipino citizens and holders of permanent resident visa issued by the Philippine government, who come directly from mainland China and its Special Administrative Regions, or who had been to China and its

SARs within 14 days prior to their arrival in the Philippines. n ban Filipinos from traveling to mainland China and its SARs. PAL said its Filipino flight and cabin crew members are included in this ban, “and thus we are unable to operate these flights.” “As there is no definite end date to the travel ban and thus no certainty that we may resume flying after March 28, we are unable to carry out automatic flight reaccommodations for passengers of canceled flights,” PAL added. Meanwhile, Cebu Pacific (CEB), the largest domestic air carrier, said prior to the travel ban related to COVID-19, the airline operated a total of 16 routes comprising 260 flights weekly between the Philippines and mainland China (Beijing, Xiamen, Shanghai, Guangzhou, Shenzen), Hong Kong, Macau and Taiwan. “This comprised about 9 percent of total flights and 12 percent of total capacity,” said CEB spokesman Charo Logarta Lagamon. “The cancellation of these flights has affected 145,000 passengers,” she added. As the virus seems to remain unchecked albeit having slowed down, Lagamon said CEB is not able to disclose revenue or income numbers “just yet, but the refunds from passengers affected by the flight cancellations are estimated to reach P2 billion by end March 2020.” She added, though: “In the near term, Cebu Pacific is resilient enough to bear the impact caused by the COVID-19 situation as one of the more conservative airlines with very strong cash balance, very low debt-to-equity ratio, and a diverse international vs domestic market.” She said CEB’s share of domestic passengers “is a strong 70 percent of our total seats.” However, if the situation persists and goes on for another three to four months, “the impact may be as high as P3 billion to P4 billion on our operating profit [based on last year’s 1H operating profit of P9 billion].” Asia’s largest low-cost carrier,

AirAsia Group, operates domestic and international flights to more than 165 destinations spanning 25 countries from its main hub, the Kuala Lumpur International Airport 2 (KLIA2), in Sepang, Selangor, Malaysia. However, the carrier begged off from providing updates, saying “the group is still trying to review their answer” to this paper’s query and that “may take a while.” Earlier, the carrier issued a statement saying: “In compliance with the government’s directive imposing travel restrictions from the People’s Republic of China and its special administrative regions, AirAsia has canceled its flights between the Philippines and mainland China, Hong Kong, and Macau since February 1.” On the other hand, published reports said AirAsia has confirmed that the Philippines’s third confirmed case of novel coronavirus infection was aboard its flight from Cebu to Shenzen, China, on January 31. Acknowledging the urgency of the situation, the airline said it was ready and willing to provide relevant documents to the Department of Health (DOH), including the flight manifest and available contact details of guests on board AirAsia flight Z2 7800. “AirAsia has been implementing additional precautionary measures, including a mandatory temperature screening of all passengers prior to boarding any domestic and international flight. As needed, guests will be referred to airport health authorities.” For now, all three major carriers are single-mindedly focused on ensuring passenger safety and welfare, whatever that would take. Costs are being counted, but the measure of losses takes a back seat, for now. Their common hope is that, if experts’ predictions are right, the contagion will die down in a few months. And then, they have the rest of the year to make up for the nightmare of the first quarter.

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YEAR OF EXCITING CHANGE

PHL ramps up initiatives to develop digital economy

By Lorenz S. Marasigan

N this day and age, developing a country’s digital economy is no longer just an option, but a necessity given its immense economic and social impact, especially for emerging economies like the Philippines. Without question, the digital age brings economic developments to many nations, as common and critical services previously done either face to face or through analog means are now being offered through mobile apps. Take Indonesia, for example. Its local output is mainly driven by the many facets of the digital economy such as e-commerce and various everyday services that underpin private consumption. Its development as a digital nation is so enticing that it has become home to four unicorns and is the

second largest base of a huge regional super app. Closer to home, the government through the Department of Information and Communications Technology (DICT) is gearing up to further develop the ICT sector in order to build and solidify the Philippine digital economy. Critical to this is the provision for access to the digital space. In September 2018, the International Telecommunications Union ranked the Philippines as the 139th nation out of 196 countries in its Internet access ranking, after recording 41.2 million Filipinos still unconnected. “We need access in order to bring the services closer to the masses, and that is why we are implementing what we call the Vision 2020,” ICT Undersecretary Eliseo M. Rio Jr. said in an interview.

20-20 vision on the horizon

VISION 2020 is a five-component program that entails the development of crucial infrastructure and infostructures to provide reliable Internet access to Filipinos across the archipelago. Continued on F2-6

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These are Luzon Bypass Infrastructure; the backbone from National Grid Corp. of the Philippines (NGCP) and National Transmission Corp. (Transco); the National Broadband Network; the Free WiFi program; and the third telco inititative. Luzon Bypass Infrastructure, being constructed by the Bases Conversion and Development Authority (BCDA) in partnership with Facebook, will be a 250-kilometer cable network corridor that will provide a terrestrial bypass route for international submarine cable owners. It will have a capacity of two terabits per second, which is almost equal to the combined capacity of incumbents Globe Telecom Inc. and PLDT Inc. “Around March or April, the two terabits per second capacity from Facebook will come in. For the first time the government will have two cable landing stations that are independent of the telcos, hence we can [have] a faster and more reliable access to the internet,” Rio said. The backbone from the power companies, on the other hand, was secured sometime in June 2018, when the two companies signed a tripartite agreement with the ICT department for the use and access in certain spare fiber-optic cores, vacant lots, tower spaces, and related facilities. Combined, two energy companies’ dark fiber facilities span 6,154 kilometers across Luzon, the Visayas and Mindanao. “We’re going to light it up this year. We’re going to have points of presence in the regions, then they will pass through the points of presence to municipalities, and then down to the last mile—the end users,” Rio said. This will complement the National Broadband Network, which will include the development and deployment of a mixture of several Internet connectivity, technologies, such as fixed line and mobile data, among others, all over the Philippines—including missionary areas. The Free Wi-Fi program, on the other hand, involves the deployment of Wi-Fi connectivity in public spaces such as schools,

government offices, parks, hospitals, and other locations all over the Philippines to help connect Filipinos to the Internet. “The backbone will help our program for Free Wi-Fi and of course the connectivity of all government offices through the National Broadband Network,” Rio said. Lastly, the third telco initiative aims to spur competition in the market to lower prices and improve services. The third telco license was awarded to Dito Telecommunity Corp. “Now we see a more serious competition from the telcos. Globe and Smart poured in their biggest investments in the 24 years they are existing to improve their network in anticipation of the competition. Now we see the impact of the third player coming in the arena,” Rio said. He explained that the year 2019 paved the way for Vision 2020 to come into full play, as the ICT sector saw committed investments reaching P518.8 billion from initial data for January to October 2019. This figure represents almost half of the P1.04-trillion committed investments in the Philippines. “The year 2019 was when we were able to increase the interest of the ICT sector in investing. We now have the third telco doing its infrastructure build, the common tower providers constructing their facilities, and we have initiatives for common passive infrastructure,” Rio said.

More innovations

ALL three telcos are now gearing up for 2020, agreeing that the year will be marked with more innovations, solutions, as well as better access to the Internet. Each is spending record capital expenditures (capex) to address the growing demand for data. Globe, for instance, is spending P63 billion this year to develop its network. PLDT is allocating a “slightly bigger” amount than the P78.4 billion it spent in 2019, while Dito is spending P150 billion to launch its operations soon. “We expect [the] investment trend to continue so we can meet increasing demand for customer data. We also expect to do more site builds, which the country re-

ALEXEY NOVIKOV | DREAMSTIME.COM

YEAR OF EXCITING CHANGE

ally needs in order to partake of the internet economy,” Globe spokesperson Yolanda C. Crisanto said. For his part, Ramon R. Isberto, the spokesman for PLDT, said his group finds 2020 an interesting year, given the trends that are emerging in the market. “We are upbeat. We are building on the growth momentum we achieved in 2019. We are capitalizing on our superior fixed and mobile networks and stepping up our efforts to make life better for our customers. We are rolling out 5G step by step and pursuing our efforts to make our business and services more and more digital,” he said. Dito Chief Administrative Officer Adel A. Tamano noted that his group will have its technical launch sometime in July. “Our commercial launch is still going to be in the first quarter of 2021, but for this year we are targeting 3,000 cell sites. We are already in various stages of completion; if not building, we are doing site acquisition,” he said.

Better policies

BUT while all the developments to improve access shape up, Better Broadband Alliance Convener Mary Grace Mirandilla-Santos believes that there is a faster way “to bring the benefits of Internet

connectivity to everyone.” She explained that there is a need to catch up, if not leap-frog, with neighboring countries in terms of policies, which, she said, is the reason why in 2019, the Philippines dropped to 64th place from 56th in the World Economic Forum’s competitiveness ranking. “If we are to catch up, we will have to move past the analog-based policies and regulations that stifle innovation and technology adoption today. Key reforms include passing the proposed Open Access in Data Transmission Act, which will give the country a future-ready digital policy framework appropriate for the Internet Age,” she said. Based on Senate documents, the Open Access in Data Transmission Bill is still pending in the committee level as of July 2019. “This, along with initiatives like the proposed amendments to the Public Services Act, which will allow increased investment and growth in the sector, will modernize Philippine ICT and make us globally competitive once again,” Santos said. Democracy.PH founder Pierre Tito M. Galla agreed, noting that there is also a need for a “pursuit of spectrum management reform because there is a need to bring the Philippines into the 21st century already.” Spectrum management involves the

evaluation of frequencies assigned to telco players, their possible refarming, and their possible reallocation. The amount of spectrum assigned to a telco has an impact on the cost, the build capacity, overall network performance, ability to offer new multimedia services and general customer experience of wireless services. Rio also shares these sentiments from the experts, saying that he “hopes that this year, we can come up with these laws.” For example, he added, “right now, we need more frequencies so that we can have a fourth or even a fifth telco, answered by equitable use of spectrum. The problem is our laws are outmoded already.” Internet Society of the Philippines chairman Winthrop Y. Yu also urged lawmakers to hasten the development of critical policies, laws and regulations in order to promote better access and Internet quality in the country. “While we are waiting for the third player to finally roll out, we also hope that this time the Senate will pass reforms to outdated laws that will allow for a fourth, fifth, and more Internet providers and better service to Filipinos,” he said.

Just the beginning

WHILE all these plans and hopes for 2020 are still being realized, Rio believes that the development of the ICT sector in the Philippines is still in its nascent stages. He said the real impact of these initiatives will be felt and be fully enjoyed in the medium term. “The year 2020 is not the peak because the third telco is five years in the making, and the common towers initiative is seven years in the making. But definitely, there is going to be a big improvement in our telco services,” he said. When access has been addressed, he added, there will be a rise of individuals that harness the full potential of the digital economy. Rio calls them OFWs or online Filipino workers. “Once we have improved our infrastructure, you don’t need to go to Metro Manila to get good connectivity for an online job,” Rio said.

A truly ‘taxing’ year Continued from F2-7

the latest tax bill, the Corporate Income Tax and Incentives Rationalization Act (Citira) or the Package 2 of the Comprehensive Tax Reform Package. Citira aims to bring down the current 30-percent corporate income tax in the country—the highest corporate income tax rate in the Asean region—to 20 percent as well as reorient fiscal incentives. “Rating agencies are concerned about the government’s ability to pay its debts. I think the financial markets have rated the Philippine debt papers positively, practically at A rating based on the spread of only about 1 percent lately. So it’s just a matter of time when rating agencies like Fitch will follow what the markets rate Philippine debt issues. Just need to go steady on monetary stability and fiscal policy,” Neri told the BusinessMirror. Dominguez said the passage of remaining tax reform packages would even magnify the positive conditions from the credit rating upgrades. The Department of Finance hopes the Citira would be finally enacted this March before Congress goes on a break. The finance chief underscored the need to replace the old tax incentives scheme as this entrenched old businesses while discouraging new enterprises from competing in the market. Dominguez said the existing system also forced the government to forego hundreds of billions in revenues which translated to as much as P504 billion in just one year alone. “For instance, in 2017, the government gave away a total of P441 billion worth of tax discounts and exemptions to just 3,150 companies. This select group of firms, which account for less than half of 1 percent of almost a million companies currently registered in the Philippines, pay discounted tax rates of around 6 percent to 13 percent,” he said. “In addition, some of these firms cheat the government of some P63 billion by abusing transfer pricing rules or by shifting profits and costs to reduce tax liabilities.” Aside from Citira, the DOF is also

pushing for the Real Property Valuation Reform Bill as well as the Passive Income and Financial Intermediary Taxation Act (Pifita). The real property valuation reform bill aims to adopt globally benchmarked standards in property valuation in a bid to promote investor confidence in property markets. Meanwhile, the Pifita is expected to fix a complicated tax structure by cutting half of the 80 combinations of tax base and tax rates on passive income and financial transactions, which makes tax administration and compliance difficult and costly for both the government and the private sector. “While we await the passage into law of these remaining tax reform packages, we continue to implement measures that will reinvigorate our capital markets, boost investor confidence, and enhance financial inclusion,” Dominguez said. On top of the fiscal reform measures, Ricafort said the country’s credit rating upgrade to A levels—which he said could happen as early as within two to three years—could also be driven by the government’s intensified campaign on tax cheats or evaders, crackdown against corruption and versus other leakages on other government expenditures. These, he said, will help narrow the country’s budget deficit, reduce government borrowings and lead to further improvement or reduction in the country’s debt-to-GDP ratio, which has a “greater impact/weight toward any decision to upgrade the country’s credit rating toward the A levels.” He said, “Further improvement on the country’s global competitiveness, adopting more global best practices, making institutions/rule of law stronger as well as raising the bar on governance standards would all help in strengthening the country’s economic and credit fundamentals that lead to much faster economic growth, accelerating the increase in incomes/per capita GDP, faster and more inclusive economic development, and further raising overall living standards. All of these are steps in the right direction toward eventually deserving A credit ratings,” he said.

2020 Vision BusinessMirror

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Friday, February 21, 2020 F2-7

A TRULY ‘TAXING’ YEAR Far-reaching reforms boost positive outlook for financial sector I

By Bernadette D. Nicolas

N just less than a year after the Philippines got its highest credit rating of BBB+ from Standard and Poor’s, Fitch Ratings has also revised its outlook on its BBB credit rating for the Philippines from “stable” to “positive,” signaling a potential upgrade in just a matter of time. Just a few days before the Fitch Ratings’ outlook revision, the Philippines was also promoted to BBB+ by Japan-based Rating and Investment Information, Inc. While these upgrades affirm the government’s fiscal discipline and create even better conditions for businesses in the country, the country’s economic managers are not yet resting on their laurels as they aim to achieve an “A” rating before the end of President Rodrigo Duterte’s term in 2022. Finance Secretary Carlos G. Dominguez III said higher credit ratings would bode well for both

the private sector and ordinary Filipinos. “Higher credit ratings tell investors that it is safe to do business in the Philippines and that the country is highly capable of paying its debts. For the private sector, this means being able to borrow at lower costs to finance business expansions and attracting new investors,” Dominguez said in a speech at the Wallace Business Forum held in Makati recently. “Ordinary Filipinos likewise benefit because banks would eventually be able to lend money to them at lower interest rates. This will translate into larger investments, as well as more jobs and better quality of life for Filipino families,” he said. But what is the likelihood that the Philippines would be able to achieve an even higher credit rating of A before 2022? Economists are positive that a further upgrade can happen soon, especially if the government makes the right steps, including the passage of the tax reform measures.

Tax reforms

RIZAL Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort said the pending tax reform measures should be prioritized as he warned that any delay

DOMINGUEZ: “Higher credit ratings tell investors that it is safe to do business in the Philippines and that the country is highly capable of paying its debts. For the private sector, this means being able to borrow at lower costs to finance business expansions and attracting new investors.” AP/WONG MAYE-E

in the passage of the legislated tax/ fiscal reform measures could delay further upgrades in the country’s credit ratings. “Further improvement in the country’s fiscal and debt management through fiscal reform measures that aim to intensify

tax revenue collection, especially recurring tax revenue sources, as well as through the legislation of more tax/fiscal reform measures such as higher sin taxes passed into law recently and other proposals to further increase sin taxes and other recurring sources of tax

revenues, will all help in deserving further upgrades on the country’s credit ratings,” Ricafort said in a message to BusinessMirror. Former Socioeconomic Planning Secretary Romulo Neri said rating agencies may be waiting for Continued on F2-6

F2-8

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Friday, February 21, 2020

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REACH ME BY TRAIN, CAR, BOAT OR PLANE

‘Getting there’ starts in 2020

NEW four-car trains are seen at the Philippine National Railways station in Tutuban on February 14, 2020. NONIE REYES

By Lorenz S. Marasigan

group will be increasing the number of authorized routes, operational units, and accredited transport cooperatives of accredited modern vehicle operators to promote a safer, more convenient road transport ecosystem. The DOTr is also promoting walkways to enhance mobility in the traffic-ridden sectors of Edsa.

ITH the clock ticking faster and two years left before he bows out of office, Department of Transportation (DOTr) Secretary Arthur P. Tugade vowed to be more aggressive in implementing his so-called Transportation Roadmap for the Future this 2020.

The blueprint, which lists hundreds of transportation development initiatives both in terms of structures and policies, is a threedecade-long program aimed at transforming the sector through continuity, accountability and transparency. Tugade intends to sustain the momentum that his group had in 2019 or even surpass it this year, as the need for more efficient transportation modes in the road, rail, aviation and maritime sectors continues to rise and evolve with the demands of the times. “In 2019, we were relentless to commence and enhance several infrastructure projects that would greatly benefit our people even to the farthest regions. We even implemented 24/7 construction and partial operability timelines so our people could benefit from our projects at the soonest possible time,” Tugade said. Among the milestones that the transportation agency had in 2019 are the signing of various agreements with the private sector including the multibillion-dollar contract to develop the Bulacan International Airport, the reinstatement of Sumitomo Corp. as the maintenance provider of the

Beefing up sea voyage, patrolling

TRANSPORTATION Secretary Arthur Tugade tries his hand behind the prototype of the 50-caliber Remote-Controlled Weapons System which is mounted on the newly acquired Philippine Coast Guard multipurpose vessel the BRP Tubbataha during its 118th anniversary celebration, October 10, 2019, in Manila. The coast guard is embarking on its modernization by acquiring vessels, ships and other assets from, among others, Japan, Israel, France and the United States. At left is Philippine Coast Guard Commandant Admiral Elson Hermogino. AP/BULLIT MARQUEZ

we are left with a daunting task to bridge the infrastructure gap that has impaired the country for decades,” he said. Metro Rail Transit (MRT) Line 3, the introduction of interim policies on app-based ride-hailing transport modes, and the continuous inclusion of the Philippines on the International Maritime Organization’s (IMO) whitelist. While all these are praiseworthy and good news, Tugade said his group has more enormous tasks under his 30-year transport roadmap. “The Transportation Roadmap is our vision-driven commitment to the Filipino people with an overarching strategic objective to enhance mobility and connectivity across the archipelago. This, as

Stronger aviation sector

THIS year, he said, the aviation and airports sector will have more airports being expanded and opened. For instance, the Clark International Airport’s new terminal will open in July, increasing its overall capacity to 12.2 million passengers annually. It will also open the Bicol International Airport in June, after 11 years of delay. The redevelopment of the Ninoy Aquino International Airport (Naia) is also under way, while Sangley is being developed as a southern alternative to the main gateway. Likewise, the Bulacan International Airport will see its

groundbreaking this year, and domestic airports such as Surigao and Antique will be reintroduced with better facilities within the first nine months of 2020.

More rail capacity

ALSO this year, the railways sector is expected to buttress its capacity with the addition of more trains in the main line of the Philippine National Railways (PNR), as several batches of light rail vehicles (LRVs) will be delivered in the coming year. The old railway is currently being developed to extend up to Sorsogon and Clark, and construction works are now 24/7 to meet its target operations of 2021. Moreover, the east extension project for the Light Rail Transit (LRT) Line 2 will also be completed by December, and Tugade’s office

is persuading the National Economic and Development Authority (Neda) to approve the Mindanao Railway.

Modern cars, more paved roads

TOGETHER with the Department of Public Works and Highways (DPWH), the transportation department is paving more roads and expressways, while modernizing existing transport systems to better serve the commuting public. Aside from a strong push for the Edsa Decongestion Program, Anna Mae Y. Lamentillo, who chairs the Build, Build, Build (BBB) Committee, said her group will be pushing for the development of more farm-to-market and tourism roads to bolster economic development in the regions. Tugade, for his part, said his

WITH the help of its attached agencies the Philippine Ports Authority and the Maritime Industry Authority, the transportation department is looking at “completing several” of the 250 ongoing maritime projects this year. Aside from this, Tugade said his group is pushing for the progression of the unsolicited proposal for the development of the Davao Sasa Port. Moreover, it is also beefing up its capacity to patrol the country’s waterways through the acquisition of new vessels by the Philippine Coast Guard.

Time flies so fast

ALL these initiatives this year will not ultimately solve the current state of the transportation systems in the Philippines, but these are concrete steps that are all aimed at alleviating the hardships that Filipinos face due to years of underspending in infrastructure. The roadmap, according to Tugade, is a “long-term direction that will lead to an improved quality of life for the Filipino people through a better transportation system.” “Time flies by so fast, and we only have two years left in the Duterte administration. But we will not falter or crumble with the remaining time, as we will be more aggressive in our projects, more hardworking with our given timelines, and more stringent in our fight against corruption,” he said.