BusinessMirror January 31, 2023

Flagship list weighs project readiness, job creation

THE “readiness” of projects as well as their contribution to the creation of high-quality jobs are among the criteria that the National Economic and Development Authority (Neda) will use to parse the long list of infrastructure projects eyed for inclusion in the administration’s own “flagship” projects.

O n Monday, Neda Secretary Arsenio M. Balisacan told reporters on the sidelines of the formal launch of the Philippine Development Plan (PDP), that Neda has received a number of priority projects from

various agencies and Regional Development Councils (RDCs) for the Public Investment Program (PIP).

O ut of the PIP, the accompanying document of the PDP that outlines the projects and programs to be undertaken to meet the mediumterm development objectives of the government, the government will carve out a shorter list to be dubbed the Marcos administration’s flagship projects. We are developing those criteria right now but obviously, it has to be sensitive to the goals and objectives of the PDP. We have identified

in the PDP...the constraints to our medium-term development, what the pressing needs are and what it takes to achieve those targets, the job targets, the generation of high quality jobs and the reduction of poverty to single digit level,” Balisacan explained.

P roject readiness is also an important consideration in choosing which projects to undertake, he added. This means that projects to be chosen could already have feasibility studies or are in more advanced stages of development.

“ Preparing projects takes time,

especially if they don’t have feasibility studies yet,” Balisacan said.

I n Frankfurt, Germany last week, Balisacan mentioned that government agencies have identified over 3,600 projects, worth $372 billion, for inclusion in the Public Investment Program (PIP) and the Three-year Rolling Infrastructure Plan (TRIP).

B alisacan said this list includes 206 projects worth $159 billion that will be part of the Marcos administration’s own “flagship” projects.

BusinessMirror

‘DEVT PLAN MEASURED BY ITS IMPACT ON LIVES’

By Samuel P. Medenilla @sam_medenilla

SERIOUS PROBLEMS HOUNDING EDUCATION SYSTEM–VP SARA

By Claudeth Mocon-Ciriaco @claudethmc3

VICE President and Edu -

cation Secretary Sara

PCCI: To draw investors, LGUs must act like Peza

I n his speech during the PDP 2023-2028 Forum at the Philippine International Convention Center (PICC) in Pasay City, Marcos assured people the goal of his administration will be to “unburden the life” of the public.

“ Their struggles are embedded in their respective daily battles: How do I make ends meet?  How can I bring food to the table?  What is my future going to look like? Will my children live in a better Philippines than the one that I grew up in?” Marcos said.

“ Ladies and gentlemen, it is my firm belief that answering these questions will be the defining challenge for us who are called to serve and will be the barometer through which the government will be measured,” he added.

T he President made the pronouncement after drawing public criticism last week for touting the country’s 7.6-percent economic

growth last year, while the public struggled with rising inflation.

People’s aspirations

THE new PDP, Marcos said, will reflect the “aspirations of the people,” which includes a reinvigorated job creation and accelerated poverty reduction by boosting the country’s economic growth and transformation.

T he President said the plan will also ensure social development and protection, disaster resilience, digital transformation, and interisland connectivity.

We can talk about economic policies and obscure numbers and data as long as we want to. But it is the life of the ordinary Filipino, more than just the numbers and the realm of data and statistics. It is something that is deeply personal to all of us. It is something that we know requires action,” Marcos said.

Z. Duterte on Monday recognized that serious problems are hounding the Department of Education (DepEd), but vowed to take steps to accelerate the delivery of basic education facilities and services, take good care of learners and teachers.

S he spoke at Monday’s Basic Education Report 2023 release.

T he DepEd also launched “MATATAG: Bansang Makabata, Batang Makabansa,” to set the new direction of the agency and stakeholders in resolving basic education challenges.

A ccording to Duterte, MATATAG will have four critical components:

n MAke the curriculum relevant to produce competent and job-ready, active, and responsible citizens;

n TAke steps to accelerate delivery of basic education facilities and services;

n TAke good care of learners

by promoting learner well-being, inclusive education, and a positive learning environment; and

n Give support to teachers to teach better.

A ddressing 400 education stakeholders, led by President Ferdinand R. Marcos Jr., Duterte laid down the challenges and recent accomplishments of DepEd, before unveiling the new battle cry of the basic education sector.

I n her speech, Duterte said that the lack of school infrastructure and resources to support the ideal teaching process “is the most pressing issue pounding the Philippine basic education.”

The Department is not blind to the reality that there is a need to build, repair, and maintain school infrastructures/to accommodate the growing number of learners all over the Philippines,” said Duterte, noting there are over 28 million Filipino learners studying in public schools nationwide.

PHILIPPINE Chamber of Commerce and Industry (PCCI)

President George T. Barcelon said the country’s local government units (LGUs) should have the “DNA” of the Philippine Economic Zone Authority (PEZA) to promote inclusive growth in the country.

You know why a lot of foreign

companies come to the Philippines and they just flock to PEZA? Because the rules are clear and there’s no regulatory inconsistency. But I think our solution is for the local government to have the DNA of PEZA,” Barcelon said at the Philippine Development Plan (PDP) 2023-2028 forum on Monday.

MORE than economic targets, President Ferdinand R. Marcos Jr. said the success of the 2023-2028 Philippine Development Plan (PDP) will be based on its impact on the lives of ordinary Filipinos.

Chinese construction firm vows $100-M infra works

By Samuel P. Medenilla @sam_medenilla

MALACAÑANG

T he Presidential Communication Office (PCO) said officials of the China Communications Con -

struction Co. Ltd (CCCC) made the commitment during their meeting with President Ferdinand R. Marcos

Continued from A1

L ast week, Marcos signed Executive Order No. 14 for the approval and adoption of the PDP 2023-2028. He noted the new plan was a result of the government consultation with stakeholders.

In partnership with local government units (LGU), and the private sector, Marcos said he is hopeful the new PDP will be successfully implemented.

“ These are truly bold plans, but I have the confidence in the brilliant minds who will become our

Jr. on Monday.

T he projects proposed by CCCC include the construction of the 270-km Laoag City-Rosario City Highway Project and the introduction of China’s Juncao technology to the Philippines through the construction of a technology demonstration center and an industrial park.

Juncao, which is a hybrid of the Giant Napier Grass developed by the Fujian Agriculture and Forest University, can be used for mushroom farming, or as livestock forage and poultry feed.

“ The proposed Juncao technology project, once approved, will be funded through Chinese foreign aid,” the PCO said in a statement

ority programs for them to meet the targets set under the PDP of 2023 to 2028.

issued on Monday.

M arcos is also considering partnering with CCCC for projects on environmental sustainability.

Currently, CCCC’s existing projects in the country include the Samal Island-Davao City Connector (SIDC) Project and North & South Harbor Bridge.

It is also involved in privateled reclamation projects in Metro Manila, such as the Pasay Harbor City Reclamation Project and Manila Waterfront City Development Project.

T he CCCC is a Chinese stateowned enterprise mainly engaged in transportation infrastructure projects such as roads, bridges and railways.

T heir latest inventory shows there are 327,851 school buildings in the country, but only 104,536 are in good condition.

S he admitted, as their assessment showed, that the centralized procurement of DepEd has been hounded by:

■ delays in the submission of technical specifications

■ lack of updated guidelines

■ lack of qualified bidders, and

■ low participation rate of prospective bidders

“ There were successful bidders who failed to deliver on time. And worse, there were successful bidders who failed to make deliveries at all.

The procurement practices at the Department of Education had red flags that demanded immediate actions.”

D uterte said a separate strand dedicated entirely to matters of procurementwascreatedtoimproveprocurement. “This strand is ordered to ensure that the delivery of services is done within the period required by law, following the processes mandated by law.”

Enrollment, learner/school data

DEPED said meanwhile, enrollment and learner data since the pandemic has improved.

partners in realizing the vision contained in this document and faith in the capacity of our people,” Marcos said.   “ Together, let us channel our energies in creating an economy that works for everyone and gives every Filipino, no matter their circumstances, a better life,” he added.

1st-quarter timeline GOVERNMENT agencies will have until the first quarter of the year to come out with their pri -

U nder his Executive Order (EO) No. 14, President Marcos ordered all heads of all national government agencies, government-owned or -controlled corporations (GOCCs), government financial institutions (GFIs), other national government offices and instrumentalities, government corporate entities (GCEs), state universities and colleges (SUCs), and local government units (LGUs) to come out with their Public Investment Program (PIP) 2023-2028.

Whether or not they receive funding support through the General Appropriations Act (GAA), [the agencies] are hereby directed to adopt and disseminate the PDP 2023-2028 and undertake efforts leading to its full implementation,” according to the three-page EO.

T he PIP contains the rolling list of priority programs and projects for the concerned government offices.

T he latest PIP should be completed on or before March, and will be updated annually or when deemed necessary by the National Economic and Development Authority (NEDA).

This will facilitate the coordination and the alignment of all departments and all agencies in government to a single plan so that we are all working in the same direction,” Marcos said in his message announcing the approval of the new PDP.

T he PDP is anchored on “AmBisyon Natin 2040,” and aims to “bring back the country to a highgrowth trajectory and more importantly, enable economic and social transformation for a prosperous, inclusive, and resilient society.”

I t will also focus on President Marcos’ 8-Point Socioeconomic Agenda, which seeks to “reinvigorate job creation and accelerate poverty reduction while addressing the issues brought by the pandemic.”

A mong its targets contained in the new PDP is to bring the country’s gross domestic product to 6.5 to 8 percent and unemployment rate to just 4 to 5 percent by 2028.

EO 14 was signed by Marcos on Jan. 27, but was only released to the media last Monday.

We are implementing post-pandemic programs and reforms. After a significant decrease in 2020 due to Covid-19-related school closures, enrollment has since started to recover.” However, she noted that recovery in enrollment is limited only to public schools.

From 2020 to 2022, more than 1,600 private schools stopped operations.

Currently, the DepEd is responsible for almost 80 percent of schools nationwide—of which, 79 percent are elementary schools.

Ev idently, the DepEd official said, there is a “wide disparity” between the number of elementary and secondary schools in the country.

W ith such a disparity, she admitted, inclusivity in education remains a concern.

Despite gains in bridging gaps, learners from Indigenous People’s communities, Geographically-Isolated and Disadvantaged Areas, Muslim youth, learners with disabilities, and out-of-school youth and adults still require the attention of the community. We need to improve their participation rate in basic education,” she said.

K-12 review THE core of Basic Education she said, is the curriculum.

T he ongoing review of the K-12 curriculum has revealed: a congested content; some prerequisites of identified essential learning competencies are missing or misplaced; and a significant number of learning competencies cater to high cognitive demands.

PCCI...

Continued from A1

H e said the bulk of these projects or 136 of them are on physical connectivity; 42 are in water resources; nine in digital connectivity; eight in health; two in power and energy; and another nine in other sectors.

B alisacan said by the end of December 2022, the government has identified 87 projects worth $54 billion that will be undertaken via Public Private Partnership (PPP).

A number of these projects will be included in the Marcos administration’s flagship list.

He also said infrastructure projects would allow the Philippines to promote local and global connectivity, as well as ensure the resiliency and sustainability of local energy and water supplies.

B alisacan said these would be part of the transformation of the Philippine economy, where Filipinos will enjoy livable communities where spaces for work, recreation, and transit will be integrated.

Cai U. Ordinario

For Senior High School [SHS], our work immersion program has contributed to a high passing rate of 90 percent in the National Certificate assessment administered by TESDA [Technical Education and Skills Development Authority].”

However, she said industry partners have expressed concern that the time allotment for work immersion is only for familiarization and not for actual skills acquisition.  “ Today, most Senior High School graduates find the need to pursue higher education in order to find employment. The National Senior High School tracer study conducted by the Bureau of Curriculum Development showed that 83 percent of the respondents pursued higher education while only a little over 10 percent of graduates were employed.” W hile the K-12 curriculum promised to produce graduates that are employable but she said,“That promise remains a promise.”

Teachers

THE teachers, Duterte said, are the lifeblood of DepEd, noting that without them, the mission to carve a better future for the children “will fail.”  T he assessment of the K-12 Curriculum, also revealed, she said, the “weak” teaching methods of teachers in addressing 21st-century skills.

While critical thinking was the most evident in the curriculum, it was also the least taught to students by teachers. Instead, lessons leaned towards conceptual or content-based teaching. And lessons lacked indepth processing to cultivate critical thinking and problem-solving.”

Learning outcomes

LITERACY is another alarming issue that must addressed, “appropriately and effectively,” she said.

T he 2018 study results of the Programme for International Students Assessment (PISA), she admitted, are “distressing as it is alarming for me as a mother and as Secretary of the Department of Education.”

T he study results showed 81 percent of participating Filipino learners could not deal with basic math problems, 81 percent had trouble understanding texts of moderate length, and 78 percent could not recognize correct explanations for scientific phenomena or draw valid conclusions from given data.  We can do better than this. We are better than this. But studies like these are opportunities for us to thoroughly examine our system and the defects that hurt our children’s abilities,” she said, adding, “The current state of basic education behooves us all to take a courageous stand and calls us to work together with the intention and commitment to resolve the challenges in basic education.”

Continued from A1

T he PCCI head underscored the role that the local government can play in ensuring facilitating investments throughout the country.

If you talk about growth inclusivity for the country, the growth should be throughout the Philippines and I think the local government plays a key role in making things easy for people who want to invest in the area of their jurisdiction,” the PCCI head added.

A ccording to the Philippine Development Plan 2023-2028, the ecozones will be integrated into the local economy by relaxing the requirements, facilitating free flow of parts, components and other inputs, and increasing open trade between zone locators and firms outside the zones.

Meanwhile, according to the presentation of PEZA OIC Tereso O. Panga at a recent forum, there are 24 AgroIndustrial Parks in the Philippines.

PEZA is an investment promotion agency that encourages the creation of special economic zones in the countryside, banking on these zones to become “economic drivers” in every region.

For one, Barcelon zeroed in on food security and agricultural issues. On visiting different provinces across the country, he said he is hopeful the government will look into “fortifying our crop insurance,” otherwise the banks would feel that farmers are not “bankable.”

I nspired by other countries’ move to attract investments in the area of agriculture, Barcelon said these countries are investing “heavily” in automation and mechanization because these countries utilize their resources. He said, “they have mechanized to be productive.”

H ence, Barcelon raised PCCI’s recommendation on tweaking the Agrarian Reform Law which he said is currently limited to 5 hectares. Such limitation is the reason behind the low productivity in Agriculture, Barcelon added.

T he PCCI had earlier recommended amending the Agrarian Reform Law to “increase land retention limit from 5 to 24 hectares, implement a debt condonation program for unpaid amortizations of Agrarian Reform Beneficiaries and convert Certificates of Land ownership Award [CLOAs] into fee simple titles.” I n relation to Agriculture, Trade Secretary Alfredo E. Pascual said the best way to protect the purchasing power of Filipinos is to give them stable, “high-paying” jobs. This is why, he said, they are working on pursuing an industrialization strategy.

Part of the  industrialization strategy is the integration of industry policy investments and trade. We want to be able to link industry with agriculture so that we will be adding value to our harvest of agricultural crops,” Pascual said.

“ We have to use our natural resources as pointed out by George Barcelon as a basis for industrialization. Agriculture is not a natural resource per se but it’s a mixed-use of natural endowments; land and water to produce agri crops and we have to add value to our harvest by linking agriculture to industry,” the Trade chief added.

Pascual also stressed that the big challenge for the country is “how do we consolidate the fragmented farm lands that we have.” Andrea E. San Juan

announced a major Chinese construction firm has pledged an estimated US$100 million worth of additional infrastructure investments in the country.

By Jovee Marie N. Dela Cruz  @joveemarie

AMENDING the Constitution

via Constitutional Convention (ConCon) is the “most ideal way” to revisit the 1987 Constitution that was ratified almost 36 years ago, lawmakers said.

House Committee on Human Rights chair Rep. Bienvenido “Benny” M. Abante Jr. in a television interview explained that his proposal to call for a ConCon would allow voters to choose the delegates that would deliberate on and propose amendments to the Constitution.

If we are to amend the Constitution, the best way to do it is via a constitutional convention,” said the Manila lawmaker, who said that this mode “allows our people to have a direct hand in choosing the delegates who will represent them in the convention,” he said.

“ Voters can look at the qualifications of the candidates and weigh their sincerity, and even ask these candidates what revisions they plan to propose should they become elected,” he added.

According to Abante, “To guard against self-interest and undue influence, we are proposing that sitting government officials be prohibited from running in the election of ConCon delegates.”

I n addition to this, under Section 9 of House Bill 6698 authored by Abante, “any person elected as a delegate of the Constitutional Convention shall not be eligible to run for any public office or position in the first local elections to be held after the ratification of the new Constitution.”

T he ConCon will be composed of one delegate representing every legislative district. Delegates

The Nation

must be at least 35 years of age, a qualified voter, and a natural born Filipino citizen.

A bante also reiterated that even at the end of the ConCon, voters would have the opportunity to review and vote on the proposed amendments.

“ We have to remember that whatever the ConCon proposes will still be presented to the people, who will vote to adopt or reject these via a plebiscite,” added the lawmaker.

F or his part, Kabayan Rep. Ron P. Salo has also called for a ConCon to amend the 1987 Constitution as some of its provisions have become “less responsive to our people’s needs.”

“It has been 36 years since the adoption of our Constitution, and crucial developments in our society and in the global arena over the years and the present social and economic realities have rendered some parts of it less responsive to our people’s needs,” Salo remarked as he filed House Bill No. 6920.

I n the explanatory note of the bill, the veteran lawmaker noted that the current Constitution contains numerous restrictions impeding the flow of foreign capital in specific areas of the country’s economic activity.

“ These restrictions have been found to hamper economic growth, dilute the competitiveness among the country’s industries, and ultimately stunt national development over the years,” Salo explained.

Salo also noted that the restrictions on foreign ownership are designed to prioritize Filipino citizens, but it limits the country’s capability to generate the requisite capital to boost the economy and develop our natural resources.

PCG arrests 18 crewmen on 3 boats for alleged fuel pilferage in Navotas

PHILIPPINE Coast Guard (PCG) personnel arrested 18 crewmen of a cargo vessel and three motorized banca over the weekend on charges of fuel pilferage.

PCG personnel were conducting patrol near the Navotas Fishport in Navotas when they caught five crewmen of M/V Mirola transferring diesel fuel into the three motorized banca, Palawan Pirates 2022, Palawan Pirates 2023 and Palawan Patrick.

“ The Coast Guard personnel immediately inspected the sea vessels and found out the fuel pilferage,” the PCG said in a statement.

PNP chief Azurin Jr. tells ICC: Respect Philippine sovereignty, justice system

By Rene Acosta @reneacostaBM

NATIONAL Police chief Gen-

eral Rodolfo Azurin Jr. called on the International Criminal Court (ICC) to respect the country’s sovereignty, as he assured that the Philippine justice system is working and could fully handle claims of abuses in relation to the war against illegal drugs.

T he Philippine National Police (PNP) chief issued the call during a news briefing on Monday as he responded to the decision of the ICC to resume its investigation into deaths associated with the government’s campaign anti-drug campaign dur -

ing the term of former President Rodrigo R. Duterte where thousands were reportedly killed.

“ The PNP encourages the ICC to respect the Philippines sovereignty and acknowledge the capacity of the Philippines’ judicial system,” Azurin stressed.

R ights groups and various organizations alleged that thousands of Filipinos were killed in Duterte’s war against illegal drugs, which was carried out under former PNP chief now Sen. Ronald “Bato” dela Rosa.

A zurin said the PNP has always maintained that the country has a “robust, efficient and functioning criminal justice system with active legal proceedings and remedies avail-

able to address any claims of human rights abuses in the government’s anti-illegal drugs campaign.”

“ This is evidenced by ongoing investigations on all drug related deaths and cases of successful prosecution of some government personnel involved in related crimes,” he said.

In deciding to continue its probe, the ICC said it was not fully convinced that the government was undertaking “relevant investigations that would warrant a deferral of the Court’s investigations based on the complementarity principle.”

However, Azurin said the filing of cases against some policemen in relation to the anti-drugs campaign

Popcom bares fresh initiatives to control teenage pregnancy

By Cai U. Ordinario @caiordinario

SEXUALLY abusive relationships between teenage women and older partners as well as unprotected sex among the youth make teen pregnancy persist in the country, according to the Commission on Population and Development (Popcom).

In a televised briefing, Popcom Deputy Executive Director Lolito R. Tacardon said teenage pregnancies among 15 to 19 year olds have declined in the National Demographic and Health Survey (NDHS) and the Young Adult Fertility and Sexuality Survey (YAFS) to 5.4 percent from 8.5 percent and 6.7 percent from 13 percent, respectively.

T he Popcom also said teenage pregnancies persist because the knowledge of young people about sex is found to be “generally very poor.”

T he agency said very few young people correctly identified the time during the menstrual cycle when a woman is most likely to conceive if she has sexual relations.

Popcom added that the socioeconomic conditions of adolescents were also linked to their sexual behaviors, according to recent studies. Early pregnancies were more prevalent among poor adolescents as well as those who were less educated and living in rural areas.

A s a result, the PCG personnel arrested the five crewmen of Mirola and the 13 crewmen of the three motorized banca.

“M/V Mirola had already transferred up to 30,000 liters of diesel into the three vessels when it was caught,” the PCG said.

T he three motorized banca failed to show documents on the legitimacy of activity based on the ongoing investigation of the PCG.

T he PCG said the three vessels were not only involved in fuel pilferage in the waters of Manila, but also even in Bataan and Batangas.

Rene Acosta

However, Tacardon noted that while this data is good news, it did not cover pregnancy among younger teenagers. Data from the Philippine Statistics Authority (PSA) showed that over 2,000 10 to 14 year olds became pregnant.

“In general, teenage pregnancy is most commonly due to early unprotected sexual activities among the young people. Moreover, young people who are engaged in risky sexual activities usually have no sufficient protection from pregnancy,” Popcom said in an e-mail to the BusinessMirror . “Sexual abuse is also a troubling factor that Popcom is looking at.”

Who is ‘Luffy’? BI baffled on true identity of robber among 17 Japanese detainees

By Joel R. San Juan @jrsanjuan1573

THE Bureau of Immigration (BI)

on Monday admitted that the identity of a Japanese national tagged as a certain “Luffy” who reportedly behind a series of robberies in Japan has yet to be ascertained.

BI spokesman Dana Sandoval explained that there are 17 Japanese nationals currently detained in BI’s custodial facility, but there is no official confirmation yet who among them is Luffy.

My apologies we are unable to give a statement until his identity and further details about the case are confirmed by the appropriate agencies,” Sandoval said.

It might be dangerous or unfair for other detainees if we release info about them and they end up not being connected to this case,” the BI spokesman added.

Justice Secretary Jesus Crispin Remulla earlier released a briefer confirming that a certain Yuki Watanabe is under the BI’s custody following his arrest on April 19, 2021.

Based on the briefer, Watanabe is

also known as “Luffy” to the Japanese police, the alleged ringleader of a robbery group responsible for a series of robberies in Japan, and who reportedly give instructions to his cohorts through an encrypted messaging app while in detention in Taguig.

Watanabe has a summary deportation order dated May 28, 2021 for being an illegal entrant and a fugitive from justice in connection with the use of counterfeit official mark and theft charges filed against him in Japan.

His deportation, however, is on hold pending the resolution of the criminal case for violence against women and children (VAWC) filed against him before the Regional Trial Court of Pasay City.

T he DOJ said Watanabe will be deported after the dismissal of the case or service of sentence should he be found liable of the crime, whichever comes first.

A side from Watanabe, the DOJ also confirmed that Imamura Kiyoto, alleged member of the robbery syndicate, is currently under the BI custody and is facing summary deportation issued by the BI on Janu-

ary 30, 2020 for being a fugitive from justice in Japan in connection with theft charges.

K iyoto’s deportation has been on hold pending the resolution of the criminal case for violation of the VAWC law.

But, the DOJ said the BI has received through e-mail a copy of the January 25, 2023 order of the Makati RTC permanently dismissing the criminal case.

Remulla said the BI would implement the summary deportation order as soon as it secures the needed clearances and travel document of Kiyoto.

Meanwhile, Sandoval said the BI is expecting clarity on the case and identify of Luffy within the week.

Remulla admitted that the Japanese embassy has yet to confirm the identities of Japanese nationals under the BI’s custody who are involved in crimes committed in Japan.

“As to the question if there are people in detention who are responsible for crimes committed under Japanese jurisdiction, I can’t answer that. The only ones who can answer that are Japanese police authorities,” Remulla said.

[Other reasons include] changing attitudes, norms and values on adolescent sexuality among the young including issues such as virginity, etc.,” Popcom told the BusinessMirror

In order to address these, Popcom said the government issued in 2021, Executive Order No. 141, which declares as a national priority the implementation measures preventing adolescent pregnancies.

T his meant that government agencies, youth leaders and other stakeholders were tasked to identify and implement interventions related to reduce, if not eliminate, adolescent pregnancies, and improve adolescent reproductive health.

Popcom also implements the Adolescent Health and Development (AHD) program under the Philip -

pine Population and Development Program (PPDP).

T his includes the implementation of comprehensive sexuality education (CSE) in schools and in alternative learning systems (communities) using interactive and peer-to-peer communication strategies as well as setting-up information and delivery network (ISDN) among institutions.

T he Popcom also established functional and sustainable teen centers in every city and municipality; enable parents, youth leaders, and other adult groups to effectively guide adolescents in forming responsible sexuality; and optimize new information and communication technologies to reach out to adolescents in online and digital media (e.g. social media).

T he government also enables local government units, civil society organizations and private sector to improve access of adolescents to appropriate reproductive health information and services as well as develop and implement local policies and programs to prevent exposure of adolescents to risky behaviors (e.g. drinking, smoking, and drug use).

Popcom also implemented Social Protection Program for Adolescent Mothers and their Children (SPPAMC) that aims to protect and prevent unwanted pregnancies, sexual abuse and other social risks and vulnerabilities that deter adolescent mothers and their children from improving their conditions.

was proof that the justice system is working. There are administrative cases being handled by the PNP Internal Affairs Service and drug cases filed in court against drug personalities that rightfully describe the active stance of the PNP in addressing the drug problem in the country and at the same time internal discipline issues within the organization,” he said. T he PNP chief also said they are also fully cooperating with the Department of Justice in reviewing cases involving police personnel found liable for lapses on police operational procedures in anti-illegal drugs operations.

House panel OKs bill on PHL maritime zones

THE House Committee on Foreign Affairs approved on Monday an unnumbered substitute bill declaring the maritime zones under the jurisdiction of the Republic of the Philippines.

T he panel, chaired by Pangasinan Rep. Ma. Rachel Arenas, expeditiously passed the measure, which was already approved on third and final reading in the 18th Congress, through Section 48 of the House Rules. House Rule 10, Section 48 authorizes the committees to dispose of priority measures already filed and approved on third reading in the immediately preceding Congress.

T he proposed “Philippine Maritime Zones Act” would harmonize Philippine legislations with international laws, such as the 1982 United National Convention on the Law of the Sea (UNCLOS) that seeks to clarify the nature and status of the waters connecting the various islands of the Philippines and its adjacent seas.

T he bill declares the maritime zones of the Philippines in order to establish the legal bases by which social, economic, commercial, and other activities may be conducted thereat.

It also provides flexibility in enacting laws pertinent to the rights and obligations that the Philippines can exercise over its maritime zones.

T he measure also provides a general declaration of the maritime zones under the jurisdiction of the Philippines. The various maritime zones include internal waters, archipelagic waters, territorial sea, contiguous zone, exclusive economic zone (EEZ), and continental shelf.

SPEAKER Martin Romualdez on Monday clarified that William Vincent “Vinny” A. Marcos has been working as an intern at the office of Speaker Ferdinand Martin G. Romualdez since Monday last week.

I n a news statement, Romualdez said Vinny Marcos, President Ferdinand “Bongbong” R. Marcos Jr.’s youngest son, will undergo training in the legislative processes.

“ He will be mentored on the daily grind at the House of Representatives, including the role and interaction of various committees and departments on the legislative processes, as well as strategies to help expedite the passage of vital bills and other measures for the benefit of the Filipino people,” said the speaker.  R omualdez is expected to supervise and oversee his training, as the Speaker had done for Vinny’s eldest brother, House Senior Deputy Majority Leader and Ilocos Norte

First District Rep. Ferdinand Alexander Marcos.

For his part, House Minority Leader Marcelino “Nonoy” Libanan has clarified the circumstances surrounding his recent meeting with Vinny.

The truth is, we were advised that Mr. Vincent ‘Vinny’ Marcos had been designated special assistant to the Speaker, and the Speaker merely asked us to brief the young man on the role and work of the House minority bloc,” Libanan said.

We must stress that even if the majority and minority blocs have differing views, we in the House can all agree to disagree without being disagreeable,” Libanan said.

T he young Marcos, who is turning 26 years old in May, previously worked as a software engineer in Singapore before he returned home to help his father in the 2022 elections.

H e is a nephew of Romualdez, who is a first cousin of the President. Jovee Marie N. Dela Cruz

It claims the maximum extent of territorial sea (12 nautical miles), contiguous zone (24 nautical miles), EEZ (200 nautical miles), and continental shelf (200 nautical miles).

C agayan de Oro Rep. Rufus Rodriguez, one of the authors of the bill, said the proposal provides for the necessary flexibility in the passage of subsequent laws pertinent to the rights and obligations to which the Philippines is entitled to and may exercise over its maritime zones.

N egros Occidental Rep. Jose Francisco Benitez, also one of the authors of the bill, said it is necessary to remove all ambiguity by enacting a comprehensive maritime zone law that clearly establishes the legal regimes and geographical extend of these maritime zones in accordance with UNCLOS.

“ This [proposal] would not only demonstrate the adherence of the Philippines to international law, but would also remove any uncertainty on the part of its armed forces and civilian law enforcers as to which laws they may observe and over which area,” he said.

Lawmakers weigh in on proposal to amend Constitution via ConCon

Rep. Libanan on Vinny’s role in House: We can all agree to disagree without being disagreeable

Editor: Vittorio V. Vitug

DOE maps out options to sustain NPC operation in off-grid areas

By Lenie Lectura @llectura

due and demandable.

T he NPC Board and the DOE are working on effecting a P5 billion borrowing by the NPC with government financial institutions, which will require Special Authority from the President of the Philippines.

A ccording to NPC Business and Strategic Planning head Odette Rivera, the sovereign guarantee could “come in within the month and this would be part of our 2023 funding sources.”

T he DOE and NPC are also working with the Development Budget Coordination Committee (DBCC) to program funds that would support NPC’s funding deficit for this year, which amounts to P14.205 billion.

The future of innovation starts with a vision for better health-care systems

NPC is currently serving. Under the Electric Power and Industry Reform Act or EPIRA, NPC can cover its missionary subsidies by charging the consumers in those areas a missionary generation rate passed on as the UCME.

In a news briefing, the Department of Energy (DOE), NPC, and the National Electrification Administration (NEA) said Monday they are working on short- and medium-term measures as NPC faces this year a constraint in its Corporate Operating Budget (COB), which poses a major problem in sustaining its operations in off-grid areas.

A s mandated by the Electric Power Industry Reform Act of 2001, NPC powers up far-flung islands and communities not connected to the main grid. Along with new power provider subsidies (NPPs) or qualified thirdparties (QTPs) and with its 278 power plants and power barges and as operators of the transmission systems of six provinces, it provides electricity to around 1.3 million households in the countryside.

T he NPC’s approved and allocated funds for its fuel expenses and subsidies for NPPs and QTPs for 2023 are insufficient to cover the requirements for the entire year. This is attributed to the increased cost of fuel.  F uel prices, which accounts for almost 70 percent of NPC’s operational costs for both its Small Power Utilities Group (SPUG) plants and NPPs, are currently priced twice as much than the initially available funds.

A s of January 26, 2023, the NPC’s outstanding fuel payables for the operation of NPC-SPUG power plants and barges amount to P1.031 billion for billing months NovemberDecember 2022, while its payables to NPPs and QTPs amount to P5.508 billion, representing three to four months of unpaid billings, which are

T he NPC has secured last week the approval of the Department of Budget and Management (DBM) to use the prior year’s national government (NG) subsidy which amounts to P1.112 billion to cover NPC’s due and demandable fuel payables.

The prior year’s NG subsidy is a special provision in the General Appropriations Act (GAA) that authorizes the use of subsidy release for programs and projects to cover the additional funding requirements of activities or projects under the agency’s program.

T he NPC has also identified reimbursements for the advances it made for the maintenance of the Bataan Nuclear Power Plant (BNPP) from 2011 to 2023 in the amount of P367 million.

O ther contingency measures being considered are immediate approval of tariff applications before the Energy Regulatory Commission (ERC).

T he DOE anticipates that the ERC would act swiftly on the petition by the NPC on the Universal Charge for Missionary Electrification (UCME) of about P0.15/kWh.

T he proposed UCME rate is the commitment of NPC to ensuring the required volume of fuel that would be timely paid to suppliers, payment to NPPs and QTPs, and ensuring the continued operation of existing units.

If approved by the ERC, the proposal will help NPC to deliver its commitment to provide a reliable and sufficient power of supply and efficient operation of its plants and associated power delivery systems consistent with the specific programs in the missionary areas that

NPC is also working on its longterm sustainability plan to mitigate the impact of high fuel prices on its operations. This includes the accelerated hybridization of SPUG power plants with renewable energy resources, preparations for “UCME Graduation” through the interconnection of major island grids to the Main Grid, and preparations for “UCME Rationalization” through customer classification in the missionary areas.

“ We assure NPC customers that the government is undertaking remedies to ensure the delivery of its mandates despite several factors it cannot control,” said DOE Secretary Raphael Lotilla.

I f there will be no additional funding and as a last resort, the NPC will implement a reduction in SPUG operating hours and delay in UCME payments to NPPs/QTPs. The NPC SPUG plants that previously operates 24 hours a day could be shortened to 15 hours, from 16 hours to 12 hours, and from less than 16 hours to just five hours.

T he power-rationing proposal will reduce operations of 156 existing NPC-SPUG power plants that may affect about 450,000 households.

To avoid rotating power interruptions in the islands and off-grid areas, we are taking steps to fund a sustainable solution to address the financial woes that are crippling the operations of the NPC,” Lotilla said.

T he delayed payments to NPPs/ QTPs may result in power outages affecting about 835,000 households. Also, there is a possible year-long, daily power interruptions affecting a total of about 1.3 million households in the islands and off-grid areas as among the possible impact of increase in fuel prices and funding deficit this year.

NPC, along with the private sector through the NPPs and QTPs, is responsible for the power generation function in around 169 off-grid areas in the country, while the electric cooperatives and some local government units assume the role of distribution utility.

By Henry J. Schumacher

YOU will certainly ask the question why I am combining the future of innovation, which drives management in 2023, with better health-care systems. The main reason is that many companies are hampered by medical issues of their employees because of the pandemic that hit us in 2020.

Innovation strategies and business designs will have to take health care into consideration for a better future—a future that is better for the employees and the companies. This might seem like an obvious first step, but we still see far too many health-care issues.

T he aim is to help business to imagine a future in employee health care that is…

Inclusive

ALL the stakeholders in the innovation process should be included in the health-care systems, from the start, so that they all benefit. This is true not just for reinventing the big structural parts of the system, but also at the product and service level. Inclusive innovation will require new structures of cooperation among stakeholders (both public and private) so that the benefits go to those who need it most, rather than just to those who have the most money.

Accessible

HEALTH CARE will need to get closer to people, by bringing care closer to where they live and work, reducing the complexity of systems, products, and services, and reinventing the current business and care models to allow for more affordable treatments.

Proactive

FOR as long as any of us can remember, experts have advised that health care should be more focused on prevention than treatment. But

our health-care systems are still designed to treat sickness rather than to promote health. As a result, we have all been shaped to think of health as the absence of illness, rather than the consequence of taking preventive action. By now it’s clear that shifting to a focus on prevention requires behavioral shifts, not just among patients, but also from all the stakeholders. For corporate stakeholders, that includes being smarter about behavioral design as part of their innovation plans and strategies.

Augmented TECHNOLOGY can’t replace human interactions, but it can extend them and make them more efficient and effective. Technology has reached a point where it can allow us to reach everyone everywhere in real time and collect data in different forms. Science has also made significant progress in developing new treatments. What’s needed next? The capabilities to adopt these innovations so that they serve their intended purposes. This includes technology literacy, new ways of working, new infrastructure, and even new clinical protocols.

Holistic

THE design of improved healthcare systems, products and services should start with a better understanding of people in all their dimensions, not just the physical and clinical ones. Health-care systems, products, services, interactions, and experiences should all be designed with mental and emotional health as integral components. They should also account for social determinants (factors such as income, education, and employment) so that intended solutions compensate for existing gaps and consider these social and economic contexts from the start.

In conclusion: creating positive change in people’s lives within our organizations will make them active and motivated stakeholders in our important drive towards innovation, digitalization, data management, ethics focus, and integrity throughout our relationship with public and private partners.

Feedback is more than welcome; if assistance in introducing new healthcare systems is needed, we will link you up with experts; contact me at hjschumacher59@gmail.com

ENERGY rationing, additional budget, tariff applications, and government borrowings are some of the solutions drawn up by the government to sustain the operations and ensure the continued delivery of power supply by the National Power Corporation (NPC) in off-grid areas.

Sim Registration

A BusinessMirror Special Feature

Smart fully supports National Simultaneous SIM Registration

By Helen Magpantay Encarnacion Contributor

AS the three-day National Simultaneous

SIM Registration in remote areas started its first day roll out on January 25, 2023

Telecomm provider Smart and Talk ‘N Text expressed its “all out” support and commitment to the National Simultaneous Subscriber Identity Module (SIM) card Registration.

During the Business Mirror’s Coffee Club online forum held last January 25, PLDT’s First Vice President and Group Head for Corporate Communications Cathy Yang stressed that along with its full support to the National Telecommunications Commission (NTC) Simultaneous National SIM Registration, is Smart and Talk ‘Text’s complete commitment to protecting its subscribers’ information during the process.

Yang said that Smart is taking measures to ensure the protection and security of its subscribers’ information, saying that it “has already invested billions of pesos” and cited the Optical Character Registration technology that protects and encrypts each and every single individual’s personal information.

Smart portal

SHE explained that once personal data is entered, the information goes straight to the Smart portal and does not remain on phones or gadgets in company stores, registration booths and touchpoints.

However, Yang added that the public should also be on the lookout for their personal information by not giving personal information freely to other people.

As part of Smart’s effort to reach as many of its subscribers as possible, registration booths

and touchpoints were installed in city, municipal and barangay halls, government offices, public markets, transportation terminals, airports and other high foot traffic areas in the National Capital Region, Northern and Central Luzon, Southern Luzon and the Bicol Region. Simultaneously, SIM Registration touchpoints were likewise installed in the Visayas and Mindanao.

She added that registration booths will also be set up and operated in Datu Sinsuat, Maguindanao, Lamitan Basilan, and Bongao, Tawi Tawi until January 27, ending date of the first of a series of three-day National Simultaneous SIM Registration.

Not leaving anyone behind

YANG said that Smart is not “leaving anyone behind” in the SIM registration that’s why they are pouring their “energy” in identified remote areas, including Pasuquin, Ilocos Norte; Pangantucan, Bukidnon; Palo, Leyte; Malalag, Davao del Sur; Moalboal, Cebu, and, Atok, Benguet, among others.

She mentioned the challenges that Smart encounters especially in geographically isolated and disadvantaged areas as well as in conflict afflicted areas where careful coordination with the Armed Forces of the Philippines and the Philippine National Police is conducted to ensure the safety of its personnel.

She also emphasized that the registration is free and that all SIM cards must be registered be they 2G or 3G as long as their device is SIM-enabled.

As of January 23, Smart and Talk ‘N Text has already registered 11,543,990 Prepaid SIM cards and 900,156 Post Paid SIM cards bringing the total to 12,444,146 (17.8 percent of the total subscriber base) registered SIM cards. According to Yang, Smart registers an average of 400,000 to 500,000 SIM cards daily. It has some 70 mil-

lion subscribers all over the country.

When asked questions by online viewers such as if minors are allowed to register their SIM cards, she said that minors below 18 years old are not allowed to register. However, the parents could give their information instead. And once the minor turns 18, they can have their SIM cards registered. She added that having one’s own SIM Card may be considered a “Birthday Gift”.

More than 1 SIM

THERE are some who own more than one SIM card and Yang said that this is possible so long as every single SIM card is registered with true and correct information of the SIM owner. She warned that under the SIM Card Registration Act, heavy fines and imprisonment are imposed on violators.

On the subject of foreigners having to register their SIM cards, Yang said that tourists staying in the country for less than 30 days must register their SIM by providing their personal information (especially their nationality), date of exit and a copy of their departure plane ticket.

For foreigners staying for more than 30 days, their SIM may be registered with their personal information (especially nationality), their approved Extension of Stay permit and a copy of their revised return ticket. Meanwhile, foreign nationals working in the country may register their SIM using their Alien Employee Certificate.

Yang said that foreigners must protect their SIM cards and warned them to never give their SIM cards to other people because the foreigner/SIM registrant is liable should anything

untoward happen involving the SIM.

In the case of lost SIM cards, Yang said that lost SIM cards must be reported to *888 immediately so that the SIM will be blocked by the system. Then the owner must go to the nearest Smart and Talk N Text outlets for a free replacement of their SIM cards of the same registered mobile number.

Yang also added that subscribers should continue using their SIM cards lest they will be considered “inactive”,

Budgeted process

WHEN asked if subscribers shoulder the cost of the SIM registration, Yang said that the process is budgeted and that Smart considers it as an opportunity rather than a cost. She explained that

the SIM registration ensures that the billions of pesos the company invests in cybersecurity pays off. The biggest payback is their subscribers ‘protection and safety

Smart Communications is “aligned with the advocacy of customer protection for both adult and children online to prevent scammers and predators from pursuing mobile phoneaided crimes,” Yang emphasized.

Advocating “safe spaces online” Yang said that Smart and Talk N’Text advocate consumer protection and encourages the public to put all dubious messages in the spam folder and report them to the NTC.

For her part, Department of Information and Communications Technology (DICT)

Undersecretary Anna Mae Lamentillo said that the start of the three-day Simultaneous SIM Registration went very well in the identified 15 remote pilot areas. She mentioned that the National SIM registration is being conducted with the of help of the Inter Agency Task Force composed of the Department of the Interior and Local Government, Department of Justice, Department of Education, National Bureau of Investigation, Armed Forces of the Philippines and the Philippine National Police, among others. Responding to the question of what the different cellphone-related crimes and scams are, Lamentillo mentioned subscribers being informed of their winning promos and raffles; phishing of messages where subscribers are lured into giving out their personal information by purportedly reputable companies; kidnapping in armed conflict areas; and G-cash scams, among others. Saying that the DICT targets one million SIM subscribers a day, Lamentillo emphasized that the Simultaneous National SIM Registration will be conducted in other remote areas until the deadline on April 26, 2023.

Cathy Yang, PLDT

First Vice President, DICT Undersecretary Anna

Mae Lamentillo and BusinessMirror’s Anne Ruth Dela Cruz.

British prime minister fires party chairman over tax bill allegations

By Mike Fuller & Jill Lawless The Associated Press

Russia’s war in Ukraine accelerating shift away from oil and gas, BP says

By William Mathis

RUSSIA’S war in Ukraine will accelerate the shift away from oil and gas as countries around the world prioritize domestic renewable energy sources as a way to increase security of supply while also cutting carbon emissions.

That’s the conclusion from the latest annual energy outlook from the economists at BP Plc. The oil major sees a much sharper decline in demand for fossil fuels in 2035, compared with its analysis conducted before last year’s invasion.

“The increased focus on energy security as a result of the RussiaUkraine war has the potential to accelerate the energy transition as countries seek to increase access to domestically produced energy, much of which is likely to come from renewables and other nonfossil fuel,” said Spencer Dale, BP’s chief economist.

Russia’s war will also cause global GDP to be at least 2 percent lower by 2025, compared with the expectation a year ago, BP said. That means emissions will also be lower than previous projections.

The British oil major’s annual energy outlook posits three potential scenarios that differ in how

quickly climate action cuts carbon emissions. All of them see oil and gas demand declining as renewables grow and transport electrifies in the coming decades, but the pace of change is uncertain.

In BP’s most conservative scenario in terms of climate goals, global oil demand would still be around 73 million barrels a day by 2050, down 25 percent from 2019. To reach net-zero carbon emissions by that year, BP forecasts oil demand would need to be less than a third of that amount.

In all scenarios, the world would rely on the Organization of Petroleum Exporting Countries for an ever-greater share of oil supply, ranging from 45 percent to 65 percent by 2050. The group will prove to be resilient because it has lower costs than rival producers such as the US, BP said.

“The carbon budget is running out,” BP said in the report. “Despite the marked increase in government ambitions, CO2 emissions have increased every year since the Paris COP in 2015 (bar 2020). The longer the delay in taking decisive action to reduce emissions on a sustained basis, the greater are the likely resulting economic and social costs.” With assistance from Grant Smith/Bloomberg

China economy shows muted growth during holiday period

By Jill Disis

CHINA’S economy showed a few signs of improvement in January as the country charted a path through its second month without Covid Zero curbs, though a major holiday season kept a lid on some activity.

Bloomberg’s aggregate index of eight early indicators showed a slight uptick in activity in January. That compared with a contraction in December as the economy slowed in response to a massive Covid-19 outbreak.

January marked the first time that Chinese people were able to travel during the Lunar New Year holiday period without major restrictions since the pandemic began.

Early signs showed a rise in activity as more than 300 million trips were made during the holiday, nearly 90 percent of prepandemic levels, according to the Ministry of Culture and Tourism. Box office figures were higher, too, topping last year’s holiday.

Restaurant revenue spiked nearly 25 percent during the festival period from a year ago, according to a survey from the China Cuisine Association, while major retail and catering firms saw their sales jump nearly 7 percent year-on-year, state media CCTV reported citing figures from the Ministry of Commerce.

Consumption is seen as a much-needed driving force for the world’s second-largest economy this year, particularly as the global economy cools. China’s State Council said the nation needs to accelerate its consumption recovery, CCTV reported over the weekend.

The optimism was present in major onshore stocks even before the holiday began as investors cheered the reopening and fading outbreaks. After losing momentum in December, the CSI 300 Index regained traction this month, advancing about 8 percent ahead of the holiday week compared with the end of last month. As trading resumed Monday, the benchmark equity gauge was set to enter a bull market.

“High frequency data signal spending surged during China’s first unrestrained Lunar New Year celebration since 2019. The end of Covid Zero appears to have released

a flood of pent-up demand. Not all the data are positive, but most of them back our view that reopening will be rapid – and that consumer spending should provide key support to the recovery,” said Bloomberg economist David Qu.

Other indicators weren’t as positive, either as business activity slowed during the Lunar New Year season or as the global economy continued to struggle.

Confidence among small businesses was better in January than in December, with real estate, transport, accommodation and catering activity seeing a sharp rebound, according to Standard Chartered Plc.

Even so, the index measuring that confidence fell just short of expansion, Standard Chartered economists Hunter Chan and Ding Shuang wrote in a note this month. They added that a sub-index measuring manufacturing activity retreated “partly due to holiday effect.”

Car and home sales fell in the first weeks of the month. Additional data from China Real Estate Information Corp., which tracks 40 major cities, showed that residential sales by area declined 14 percent from a year earlier during the week that included the holiday, suggesting the sector remains a concern.

Factory-gate prices, meanwhile, remained in deflation—though not as deeply as in November and December.

E arly trade data from South Korea showed the global economy is continuing to struggle, with exports falling 2.7 percent in the first 20 days of the month. While the headline number was better than December’s 8.8 percent fall, there were some concerning aspects.

Shipmen ts to China fell 24.4 percent in the period, underscoring how long the road ahead is for the recovery of the world’s second-largest economy, even after it scrapped restrictions.

W hile economists have been upgrading their gross domestic product forecasts for 2023, they’ve also warned that disruptions and the Lunar New Year holiday will likely weigh on the first quarter before the rebound takes hold. With assistance from James Mayger and Yujing Liu/Bloomberg

Sunak had faced days of pressure to sack Nadhim Zahawi amid allegations he settled a multimillion-dollar unpaid tax bill while he was in charge of the country’s Treasury.

The prime minister acted after a standards probe found Zahawi had breached the ministerial code of conduct. It said he had failed to disclose details of his dispute with tax authorities and the fact that he had paid a penalty.

In a letter to Zahawi, Sunak said he had been forced to act to keep his promise that his government “would have integrity, professionalism and accountability at every level.”

Zahawi had acknowledged the tax dispute but argued his error was “careless and not deliberate.”

In his response to Sunak, Zahawi pledged to support the prime minister as a backbench lawmaker and made no reference to the ethics inquiry. He attacked the media— which first revealed his whopping tax bill, reported at almost 5 million pounds ($6.2 million)—and claimed some reporting did not reflect “legitimate scrutiny of public officials.”

Zahawi headed the UK Treasury from July to September 2022 in

the final months of Prime Minister Boris Johnson’s tenure, and was appointed Conservative Party chairman when Sunak took office in October.

Sunak has vowed to restore order and integrity to government after three years of turmoil under predecessors Johnson—brought down by ethics scandals—and Liz Truss, who quit within weeks after her policies rocked the UK economy.

Last week he asked the government’s standards adviser, Laurie Magnus, to investigate Zahawi’s tax affairs and said he would wait for the results before acting.

In a report released Sunday, Magnus found Zahawi had shown “insufficient regard” for the requirement “to be honest, open and an exemplary leader through his own behavior” in public life.

The investigation into Zahawi by HMRC, the UK’s tax office, centered on the sale of some 27 million pounds ($33.4 million) in shares in YouGov, an opinion-polling firm he co-founded. The probe began in April 2021, but Zahawi did not declare it when he was appointed Chancellor of the Exchequer more than a year later.

The Magnus report found there

should have been an understanding from the outset that the matter was serious. It said this was not reflected in public statements given by Zahawi, until he confirmed on January 21 that a settlement had been reached.

Zahawi said Sunday it had been “the privilege of my life” to serve in government. The 55-year-old, who came to Britain as a child refugee from Iraq, was vaccines minister in the first year of the coronavirus pandemic, and later served a nine-month stint as education minister.

The Zahawi episode was a test of the authority of Sunak, who is grappling with a staggering economy and a deeply divided Conservative Party. Standards inquiries are also underway into Johnson— over claims he secured a loan with the help of a Conservative donor who was later appointed chairman of the BBC—and Deputy Prime Minister Dominic Raab, who faces allegations he bullied staff.

The stories are fuel for opponents who accuse Sunak—a

former investment banker who is married to the daughter of an Indian billionaire—of leading a government of the wealthy that is out of touch with the struggles of ordinary people.

Last year, it was revealed that his wife Akshata Murthy didn’t pay UK tax on her overseas income, including 11.5 million pounds a year in dividends from Infosys, the Indian IT company founded by her father. The practice was legal, but it looked insensitive at best at a time when Sunak—who was then the UK Treasury chief—was raising taxes for millions of Britons.

Housing Secretary Michael Gove said Sunak had shown integrity in waiting for the facts before firing Zahawi.

“The electorate will have a chance to pass judgment,” he told Times Radio. “I hope and believe that by the time of the next general election, people will have seen that Rishi Sunak is someone who is deeply moral, deeply public spirited, and committed, above all, to public service.”

US urges donors to give far more as Somalia faces famine

By Cara Anna The Associated Press

MOGADISHU, Somalia—

The first US Cabinet member to visit Somalia since 2015 urged the world’s distracted donors Sunday to give immediate help to a country facing deadly famine, which she calls “the ultimate failure of the international community.”

The US ambassador to the United Nations, Linda Thomas-Greenfield, heard perhaps the starkest warning yet about the crisis: Excess deaths during what is now Somalia’s longest drought on record will “almost certainly” surpass those of the famine formally declared in the country in 2011, when more than a quartermillion people died.

This time, the world is looking elsewhere, many humanitarian officials say.

“Many of the traditional donors have washed their hands and focused on Ukraine,” the UN resident coordinator in Somalia, Adam Abdelmoula, told Thomas-Greenfield during a briefing in Mogadishu.

While the US ambassador declined to openly “name and shame” in her speech calling on donors for more help, saying “The countries know who we’re talking about,” the UN resident coordinator didn’t hesitate.

The European Union, for example, funded just 10 percent of the humanitarian response plan for Somalia last year, Abdelmoula told The Associated Press. The EU gave $74 million and the UK $78

million, according to UN data. Japan gave $27 million and Saudi Arabia $22 million.

The United States, meanwhile, funded roughly 80 percent, giving $1.3 billion to Somalia since the start of the 2022 fiscal year. The ambassador announced another $40 million on Sunday.

But the US “can’t continue to pay at that level, even if there were no Ukraine,” Thomas-Greenfield told the AP in an interview, adding that Washington would like to see countries in the nearby Gulf region, for example, donate more.

She spelled out the fatal risks in the weeks ahead if other nations don’t step up. “According to the UN, without contributions from other donors, critical food and nutrition assistance supporting 4.6 million people in Somalia will end” by April, Thomas-Greenfield said.

That will be just as a sixth consecutive rainy season in the parched country is expected to fail. The US is “deeply alarmed” by the dire situation, she told humanitarian officials.

The ambassador delivered her speech in the seaside diplomatic compound at Mogadishu’s international airport, where bunkerbound officials try to respond to the growing crisis compounded by the security threat posed to large parts of Somalia from al-Qaida’s East Africa affiliate, al-Shabab.

Tens of thousands of people are thought to have died in the drought that also affects parts of neighboring Ethiopia and Kenya. More than a half-million children

under the age of 5 in Somalia alone have severe acute malnutrition, according to the UN children’s agency. Millions of livestock essential to families’ health and wealth have died.

While the latest data assessment released last year found that Somalia had not met the benchmarks for a formal famine declaration, the UN and US have made clear that the limited humanitarian aid has only delayed the worst.

Almost 2 million hungry people in Somalia are at the crisis point where “bodies start to consume themselves,” a Western humanitarian official said, speaking on condition of anonymity because they were

not authorized to speak publicly. There are now 2.7 million more people in need than during Somalia’s last famine in 2011, the official added.

About 900,000 of them have been living in areas under control of the al-Shabab extremists, complicating efforts both to understand the drought’s toll and to reach people with help.

But the death toll from the drought remains unclear even as fears grow. “I don’t think any of us know the number,” ThomasGreenfield said.

The last Cabinet member to visit Somalia was John Kerry as secretary of state in May 2015.

LONDON—British Prime Minister Rishi Sunak fired the chairman of the governing Conservative Party on Sunday for a “serious breach” of ethics rules in failing to come clean about a tax dispute.

CONSERVATIVE Party chairman Nadhim Zahawi leaves the Conservative Party head office in Westminster, central London on Tuesday, January 24, 2023. British Prime Minister Rishi Sunak has fired the chairman of his ruling Conservative Party over a “serious breach” of the ministerial code. Pressure had been building on Nadhim Zahawi amid allegations he settled a multimilliondollar unpaid tax bill while he was in charge of the country’s Treasury. AP/ALASTAIR GRANT

editorial

US-China war: Is it inevitable?

RetIR ed US Army Lt. Gen. H.R. McMaster early this month warned that China is preparing its military for a war over taiwan. He said Chinese President Xi Jinping, who secured a historic third term last year, has made it clear he plans to retake taiwan. “Xi Jinping has made it quite clear, in his statements, that he is going to make, from his perspective, China whole again by subsuming taiwan,” McMaster said. “And preparations are underway.”

From Bloomberg: “An Air Force general said in an internal memo that the US and China risk going to war in two years and told officers under his command to prepare, including with target practice, NBC News reported. General Mike Minihan, head of the Air Force’s Air Mobility Command, said he has a gut feeling that the fight will happen in 2025, while saying he hopes he’s wrong, according to NBC. He said presidential elections in the US and Taiwan in 2024 would create an opportunity for China to move against Taiwan.”

President Joe Biden’s administration has repeatedly expressed concern about China’s military buildup and what the US views as a more aggressive Chinese stance toward Taiwan. A national security strategy presented by the administration in October called China the only US competitor “with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do it.”

In a new book—Danger Zone: The Coming Conflict with China—authors Hal Brands and Michael Beckley assert that China is at a perilous moment: strong enough to violently challenge the existing order, yet losing confidence that time is on its side.

“Numerous examples from antiquity to the present show that rising powers become most aggressive when their fortunes fade, their difficulties multiply, and they realize they must achieve their ambitions now or miss the chance to do so forever. China has already started down this path. Witness its aggression toward Taiwan, its record-breaking military buildup, and its efforts to dominate the critical technologies that will shape the world’s future,” the authors said.

Over the long run, they said the Chinese challenge will most likely prove more manageable than many pessimists currently believe—but during the 2020s, the pace of Sino-American conflict will accelerate, and the prospect of war will be frighteningly real.

Michael E. O’Hanlon is a senior fellow and director of research in Foreign Policy at the Brookings Institution, where he specializes in US defense strategy, the use of military force, and American national security policy. He said: “A war involving the US and China could not easily be contained. Neither Beijing nor Washington would accept defeat in a limited engagement. Instead, the conflict probably would expand horizontally to other regions and vertically, perhaps even to include nuclear weapons threats—or their actual use. It literally could become the worst catastrophe in the history of warfare.”

Will the Philippines be dragged into a US-China war?

President Marcos said he hoped to strengthen ties with Beijing on his first state visit to China since taking office. On the other hand, the President has embraced the country’s alliance with the United States, reviving the dormant Enhanced Defense Cooperation Agreement, which allows the US to deploy conventional forces to five select bases in the Philippines.

In November, the Marcos administration hosted US Vice President Kamala Harris on a visit to Palawan, where she underscored Washington’s support to its long-time treaty ally “in the face of intimidation and coercion in the South China Sea,” an obvious reference to China.

In an article published by cato.org—What Would a US War with China Look Like?—Doug Bandow said: “If conflict does break out, tamping or reversing Chinese aggression in the Western Pacific could require a massive use of force. This would be the first major conventional war between nuclear— a rmed powers. Both governments might find it difficult to eschew a resort to WMDs in such a conflict. Indeed, the very nature of the battleground would risk escalation. Chinese use of mainland bases would force the US to target them. And the PRC’s targets would at least be US possessions and bases in the Asia—Pacific, ensuring civilian death and destruction.”

The Philippines, having recently shored up its ties to Washington, will have difficulties staying neutral in case tensions escalate between the US and China over Taiwan. Let’s hope that the US and China can keep rising tensions from evolving into a shooting war, which would be extremely destructive and could result in the use of nuclear weapons.

Philippine economy at full throttle

demic restrictions led to revenge spending, a strong domestic demand and more jobs.

Manny B. Villar

THE EnTrEprEnEur

tHe Philippine economy can be likened to a money train—it keeps on expanding robustly and nothing for now can stop it from speeding ahead.

I am one of those least surprised about the economy’s performance in 2022. The solid gross domestic product growth of 7.6 percent in 2022 lends credence to reports that the Philippines emerged from the pandemic as one of the fastest-growing economies in Southeast Asia, if not the world, today.

The World Economic Forum (WEF) attended by President Ferdinand Marcos Jr. in Davos, Switzerland has identified the Philippines as a member of the “VIP Club” of Southeast Asian countries with bestperforming economies.

The Philippines achieved the growth through economic reopening and without seeing another surge in new virus cases. The Department of Health has even reported a steady decline in infections despite the hectic economic activities in the fourth quarter.

The government’s strategy to reopen the economy, while remaining vigilant on the health situation, has paid off. It lifted business confidence

and encouraged companies to invest in the future.

Our gross domestic product expanded 7.6 percent in 2022, faster than the 5.7-percent growth in 2021 and above the government’s target range of 6.5 percent to 7.5 percent for the year, per the national income accounts report of the Philippine Statistics Authority. The economic expansion is the fastest since 1976.

The services sector led the 2022 growth with 9.2 percent, followed by industry with 6.7 percent and agriculture with 0.5 percent. On the demand side, household spending grew 8.3 percent in 2022, while government expenditure increased 5.0 percent.  Wholesale and retail trade rebounded strongly, while manufacturing and construction contributed substantially to overall growth.

The full reopening of the economy in the last quarter of 2022, capped by the resumption of face-to-face classes, and the lifting of most pan-

The 7.2-percent expansion in the fourth quarter marked the seventh consecutive quarters of growth of above 7.0 percent based on constant 2018 prices. It put the Philippines in the list of fastest-growing economies in the Asia-Pacific region in the fourth quarter of 2022, exceeding Vietnam’s 5.9 percent and China’s 2.9 percent.

If we could sustain this pace of recovery, coupled with the appreciation of the peso and the deceleration of inflation this year, we could see further reduction in the unemployment and poverty rates and improvement in Filipinos’ quality of life. We may also achieve the upper-middle economy status by 2024, after the pandemic derailed our target in 2020 and 2021.

I am optimistic this growth narrative will draw the attention of foreign investors. President Marcos has actively promoted the Philippines as a promising investment destination in his meetings abroad. He expounded not only on the solid economic recovery of the Philippines, but also on the investment-friendly policies that are now in place, as well as the new Philippine Development Plan and the 8-Point Socioeconomic Agenda.

I believe the Philippines is ready for more foreign investments this year, with the start of major infrastructure projects that will improve mobility and transportation in the country.

We passed several laws to further open the economy to foreign capital in a bid to create more jobs for the Filipino people. Unemployment rate, meanwhile, dropped to 4.2 percent in November 2022, the lowest in 17 years. Foreign investments will augment local production and enable us to improve our exports. The ultimate goal, of course, is to become a net-exporting country to cure any deficiency in our balance of payments. If we could also boost agricultural production and lessen our food imports, we may be less vulnerable to price spikes in the world market.

We need to reinvigorate the agriculture sector to meet the growing demand of our population of about 110 million. Agriculture has lagged behind in the growth cycle over the years and now accounts for just a tenth of our gross national income.

The revival of the agriculture and fishery sector will determine how fast the economy will grow in the succeeding years. Agriculture’s contribution will hopefully bring down poverty incidence from 18.0 percent of the population in 2021 to a single-digit level by 2028, and make the economic growth more inclusive.

I have confidence we can achieve our economic goals by working as one nation and with one clear vision for the future.

For comments, send e-mail to mbv_secretariat@vistaland.com.ph or visit www.mannyvillar.com.ph

‘Third-Worldization’ OuTSIDE THE BOX

those institutions.

John Mangun

tHeR e are three kinds of people other than the terminally apathetic or intellectually dead. A small group has a genuine desire and is willing to give effort to identify and find solutions to a nation’s and a society’s problems. A larger cohort is willing to make sound judgments on the solutions offered and do what is needed to bring these answers to fruition.

There is another small faction that brings the meaning to the last option in the phrase—attributed to American revolutionary Thomas Paine—“Lead, follow, or get out of the way.”

These are the ones that are remarkably good at identifying real or even imagined problems that a country faces, but are often more interested in assigning the blame rather than finding solutions. And the solution, coincidentally, is often that “The People” should have elected a particular candidate to high office thereby proving “The People” are get-

ting what they deserve.

Once upon a time, there was the “First World,” nations that primarily, because of economic freedom that encouraged and supported creativity and initiative, had strong institutions that nurtured wealth creation.

The countries in the process of building the institutions necessary for that wealth creation belong to the “Second World.”

Lastly, there was the “Third World,” which, by incompetence and/ or malfeasance (and perhaps some bad fortune) in both the public and private sector, was never able to build

“Those institutions” include a fair and just judiciary, a legislature that provides laws that benefit everyone, and an executive that enforces the laws equally. It is also how all of them work together, including the private sector.

January 25th marked the fourth anniversary of the collapse of the Brumadinho mining reject dam in Brazil’s state of Minas Gerais, which killed 270 from a mudslide of 11.7 million cubic meters of mining waste.

Brazil is an exporting nation and benefited greatly from the 2000s commodities boom. The mining industries were accelerating without much rigorous oversight from the authorities, while everyone was benefiting from exports and inflows of foreign investment. Typical “Third World” defective practices. Or was it?

Countries like the Philippines learned from the 1970s and 1980s that a significant difference between “First” and “Third,” and maybe the root cause, was government/private sector debt. Is it all possible that a nation’s fiscal sickness, best exemplified by its government, hinders if not stops the establishment and evolution of strong national institu-

tions? Certainly, the people in charge matter greatly. But is it also possible that weak and “bad” institutions create bad decision makers? And what happens to a society when institutions are weak?

“Third-Worldization”: The conversion of a nation into a Third-World nation. A critical measure of fiscal health is the “Government Debt-toGDP Ratio.”

In 1993, the US Debt-to-GDP was 64.7 percent. It was 107 percent in pre-Covid 2019, and is currently 120 percent. In 1993, the Philippine Debt-to-GDP was 75 percent. It was 39.6 percent in pre-Covid 2019, and is currently “at a 17-year high of 63.7 percent.” In 2002, the ratio in the Euro Area was 68 percent; currently it is 94.2 percent. Are we witnessing “Third-Worldization?”

Few speak of it, but is there a breakdown of institutions and society in general as economies move in crisis towards failure? The thousand years of the Roman Empire did not disappear because of decadent emperors and barbarian invasions. It fell with the economic collapse of the government. The French Revolution was fueled first by grain riots as

North Korea could get a vital lifeline from arms sales to Russia

By Jon Herskovitz | Bloomberg Opinion

Russia’s hunt for weapons to fire at ukraine could provide a lifeline for North Korea, where even a relatively modest arms deal would help lift the country’s cash-starved and stagnant economy into growth.

The US made fresh accusations this month that Kim Jong Un is providing arms and ammunition to aid Putin’s war, including sending shells and rockets. While the Biden administration said the weapons won’t do much to alter the battlefield, the sales would open a new stream of revenue to a country isolated from much of world trade.

While North Korea has denied the US allegations of the arms transfers, any such deal would be well timed for Kim. His border closures during the pandemic pushed North Korea’s already anemic economy into one of its biggest contractions in decades.

North Korea’s economy failed to grow in 2021 and faced uncertain prospects last year, according to the Bank of Korea in Seoul, one of the few entities to produce regular assessments of the country’s outlook. Meanwhile, Kim’s seemingly lucrative forays into crypto-currency theft may now be facing a squeeze after the collapse of digital-asset exchange FTX.

One thing Kim does have in abundance is weaponry, especially the crude 20th-century artillery experiencing something of a revival on the frontlines of Ukraine. North Korea possesses untold stores of munitions to supply what the International Institute of Strategic Studies estimates is an arsenal of more than 21,600 artillery pieces, a force that has for decades held Seoul under the threat of Mariupol-like devastation.

“North Korea would grab with both hands an opportunity to get rid of aging stocks of legacy munitions at a significant markup,” weapons expert Joost Oliemans said. The regime has produced a “myriad” of older, towed artillery designs that are compatible with some Russian systems, said Oliemans, who co-authored the book The Armed Forces of North Korea.

The US hasn’t provided details on the amount of weapons it believes North Korea has sent to Russia. But the Biden administration said when it first made the accusations in September the Kremlin wanted to buy millions of rockets and artillery shells.

National Security Council spokesman John Kirby told a news briefing about a week ago there was evidence the Wagner Group, a paramilitary organization heavily involved in the effort to capture the eastern Ukrainian city of Bakhmut, was receiving deliveries of North Korean and equipment. He displayed two photographs that purported to show Russian rail cars traveling to North Korea.

“We obviously condemn North Korea’s actions, and we urge North Korea to cease these deliveries to Wagner immediately,” Kirby said, pointing out the benefits to Kim’s regime for the transfers. “Let’s keep it in perspective. This is not a burgeoning economy,” he said.

Some North Korean items on likely on Putin’s wish list would be 122-millimeter and 152-mm artillery rounds as well as 122-mm rockets, Oliemens said. The price for 122-mm rockets was about $6,000 a few years ago, he said, adding it was difficult to get prices for the items

Mangun.

VAT: Gross sales or gross receipts?

for services—recognition of output tax/input tax upon receipt/payment —instead of the other way around.

fulvio D. Dawilan

Tax Law for Business

i

North Korea might be sending.

A major deal could be worth hundreds of millions of dollars, Oliemens said, adding, “it would make sense for Russia to first acquire smaller batches first,” and assess their quality and effectiveness before committing to a larger purchase. It wouldn’t take much—payments totaling less than $320 million—to add 1 percent to North Korea’s gross domestic product.

A State Department spokesperson declined to comment on any potential economic boost that North Korea is seeing from munition sales to Russia, but said the US remained concerned that Pyongyang will deliver more military equipment to the Wagner Group.

Any weapons sales would mark a reversal in roles between the neighbors, since North Korea for decades relied on weapons from its former benefactor, the Soviet Union. Pyongyang has been banned from arms sales for more than 15 years under UN resolutions that Russia helped impose, although the country still sells arms to the likes of Iran, Syria and Uganda, according to the US Defense Intelligence Agency.

“There are both economic and political incentives for North Korea to supply arms to Russia, and the two may be intertwined,” said Naoko Aoki, an associate political scientist at the Rand Corp. in Washington.

North Korea’s need for hard currency is the most obvious economic reason but Pyongyang could be compensated in other ways, including fuel shipments, she said.

Russia has in recent months used its veto power at the United Nations Security Council to block additional sanctions on North Korea for its ballistic missile tests. North Korea is one of the few countries that have recognized the Kremlin-controlled “People’s Republics” in Donetsk and Luhansk in eastern Ukraine.

Kim Yo Jong, the powerful sister of North Korea’s leader, last week reaffirmed the country’s support for Russia in its struggle against the US and “its top-class stooges.” “We will always stand in the same trench with the service personnel and people of Russia who have turned out in the struggle to defend the dignity and honor of the state and the sovereignty and security of the country,” she said, according to the official Korean Central News Agency.

Russia and North Korea appeared to have resumed trade over their sole rail link late last year, according to satellite images published by the 38 North website. Any weapons sent by rail from North Korea could make their way across the Eurasian landmass and into Ukraine without the possibility of interdiction by third parties.

In addition to cash, North Korea may also be looking for debt relief and possibly technology transfers, said Victor Cha, the senior vice president for Asia at the Center for Strategic & International Studies think tank. Much of North Korea’s ballistic missile arsenal is believed to be based on Russian designs, such as the Iskander rockets that Moscow routinely lobs at Ukrainian targets. With assistance from Iain Marlow / Bloomberg

One of the more significant but contentious provisions of the proposed laws is related to the proposed harmonization of the rules on valueadded tax treatment of sales of goods and services. Based on the present law, there is a distinction between sales of goods and sales of services. For goods, VAT is levied, assessed, and collected on the gross selling price or gross value in money of the goods or properties sold. On the other hand, for sale of services, VAT is levied, assessed and collected based on gross receipts.

Thus, the output tax on sales of goods is required to be reported upon sale while the output tax on sale of services is required to be reported upon receipt. On the part of the buyer, the input tax for the purchase of goods needs to be recognized upon purchase while the input tax on purchase of services is to be recognized upon payment. It follows that the required documentations are also different—sales invoice for goods and official receipt for services.

The bills propose to harmonize the rules by providing a uniform treatment for sales of goods and services. And based so far on the proposed provisions of the bills,

the current rules for sales of goods shall be adopted for sales of services. This means that the output taxes on sale of services shall also be levied and collected upon sale. Consequently, the input tax on the part of the buyer shall be recognized upon purchase. It follows that the present prescribed documentation for services, which is the official receipt, shall be discarded and the sales invoice shall be required. In essence, the tax base/timing/documentation for the sale of services, which is currently based on gross receipts/official receipts, is being harmonized with the current tax base/timing/documentation for sales of goods/properties.

There is no disagreement that the treatment for VAT purposes for both sales of goods and services, including the prescribed documentations, should be uniform. This would harmonize the rules and avoids the confusions caused by the difference. The disagreement lies on which should be the basis/timing—upon sale/purchase or upon receipt/payment?

I believe that in harmonizing the rules, the rules for sale/purchase of goods should follow the current rules

N my article at the beginning of the year, i mentioned about the pending bills on taxation that are worthy of consideration and support. These include the Ease of Paying Taxes act. The bill was already approved by the House of Representatives and is now being discussed at the senate Ways and Means Committee.From a purely legal perspective, no rule is superior over the other. It is the law that fixes it, and whatever the law requires should prevail. In the present exercise, since the objective is to “ease the payment of taxes”, then the changes should lean towards the realization of that objective. And it is my belief that “gross receipts” as the reckoning for the recognition of VAT would better achieve that objective than “gross sales.”

Let me address some of the concerns of the opposite side. There is an argument that the reference to gross receipts, rather than the gross sales, is inconsistent with the accrual method of accounting. That is misplaced. In fact, the present practice —where the VAT on sale of services is based on gross receipts—clearly negates that argument. Also, the sales taxes, percentage taxes, and other business taxes before the adoption of VAT in our tax law traditionally referred to “gross receipts” as the basis for the payment of taxes on sales of services. Yet, consistency or inconsistency with the accounting rules had never been an issue. As I earlier noted, it is the law that fixes the rule, and whatever it mandates should be followed, regardless of its consistency or inconsistency with the accounting rules.

Also, the fear that the use of “gross receipts” would delay the payment of VAT is misplaced. If at all, this is only a timing concern that would only be felt in the first month of implementation. Once the collections are realized and the corresponding VAT is reported, the usual cycle for VAT reporting is restored. But even that temporary delay would have a minimal effect. Be-

ginning this year, the payment of VAT dues on a monthly basis is no longer required. VAT is now paid on a quarterly basis. That 3-month period is the usual term for sales made on credit. Sales and collection would therefore fall on the same period, and therefore the VAT is captured in the same period. Only when the collection flows in the following quarter will there be a quarter delay.

Turning now to the advantage of using the “gross receipts,” there are lots of them when it comes to ease in compliance. And let me just mention one. The payment of VAT based on sales is not necessarily final. There are transactions, movements and changes that may affect the modification of the amounts earlier reported. And I am referring to the sales returns, allowances and discounts. These need to be monitored by the seller and the buyer so that the adjustments can be made, and this requires a number of documentations. Obviously, that is not necessary for sale/purchase of services. That alone will ease the compliance burdens of taxpayers, and the checking by revenue officers.

I’ll end here, but I’ll be happy to share further if there are interesting changes in the bills. Again, let’s support this wonderful piece of legislation.

The author is the Managing Partner of DuBaladad and Associates Law Offices (BDB Law), a member-firm of WTS Global. The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at fulvio.dawilan@ bdblaw.com.ph or call 8403-2001 loc 310.

Tyre Nichols case revives calls for change in police culture

By Aaron Morrison, Claudia Lauer & Adrian Sainz The Associated Press

M

Investigation, accountability and charges.

This is often the most Black citizens can hope for as the deaths continue. Nationwide, police have killed roughly three people per day consistently since 2020, according to academics and advocates for police reform who track such deaths.

Tyre Nichols’ fatal encounter with police officers in Memphis, Tennessee, recorded in video made public Friday night, is a glaring reminder that efforts to reform policing have failed to prevent more flashpoints in an intractable epidemic of brutality.

Nearly 32 years ago, Rodney King’s savage beating by police in Los Angeles prompted heartfelt calls for change. They’ve been repeated in a ceaseless rhythm ever since, punctuated by the deaths of Amadou Diallo in New York, Oscar Grant in Oakland, California, Michael Brown in Ferguson, Missouri, and so many others.

George Floyd’s murder in Minneapolis in 2020 was so agonizing to watch, it summoned a national reckoning that featured federal legislation proposed in his name and shows of solidarity by corporations and sports leagues. All fell short of the shift in law enforcement culture Black people in America have called for—a culture that promotes freedom from fear, trust in police and mutual respect.

“We need public safety, right?

er, FedEx worker and father to a 4-year-old boy.

From police brass and the district attorney’s office to the White House, officials said Nichols’ killing points to a need for bolder reforms that go beyond simply diversifying the ranks, changing use-of-force rules and encouraging citizens to file complaints.

“The world is watching us,” Shelby County District Attorney Steve Mulroy said. “If there is any silver lining to be drawn from this very dark cloud, it’s that perhaps this incident can open a broader conversation about the need for police reform.”

President Joe Biden joined national civil rights leaders in similar calls to action.

“To deliver real change, we must have accountability when law enforcement officers violate their oaths, and we need to build lasting trust between law enforcement, the vast majority of whom wear the badge honorably, and the communities they are sworn to serve and protect,” the president said.

.

far back as 1529 in the French city of Lyon. Nazi Germany was directly created from Germany’s destroyed economy after World War One.

Which comes first—the loss of faith in government, moral decay, military tyranny, class war, and disease, or from economic stagna-

tion and then failure? In the West, are we seeing war, violent protest, and a huge cracks in the social order because economies are breaking? Or are we in Southeast Asia, formally all “Third World,” so much more welloff financially or just more civilized?

We need law enforcement to combat pervasive crime,” said Jason Turner, senior pastor of Mississippi Boulevard Christian Church in Memphis. “Also, we don’t want the people who are sworn to protect and serve us brutalizing us for a simple traffic stop, or any offense.”

The five Black officers are now fired and charged with murder and other crimes in the January 10 death of Nichols, a 29-year-old skateboard-

But Memphis, whose 628,000 residents celebrate barbecue and blues music and lament being the place where the Rev. Martin Luther King Jr. was assassinated, has seen this before. The city took steps advocates called for in a “Reimagine Policing” initiative in 2021, and mirrored a set of policy changes reformers want all departments to implement immediately, known as “8 Can’t Wait.”

De-escalation training is now required. Officers are told to limit uses of force, exhaust all alternatives before resorting to deadly force and report all uses of force. Tennessee also took action: State law now requires officers to intervene to stop abuse and report excessive force by their colleagues.

EMPHis, Tenn.—an unarmed Black man dies after a videotaped beating by police. The officers involved are fired. af ter a thorough review of the evidence, criminal charges are swiftly filed against the offending officers.Showing unusual transparency for a police department, the MPD now publishes accountability reports that include the race of people subjected to use of force each year. They show Black men and women were overwhelmingly targeted for rougher treatment in 2019, 2020 and 2021. They were subject to nearly 86 percent of the recorded uses of guns, batons, pepper spray, physical beatings and other force in 2021, the total nearly doubling that year to 1,700 cases.

Seven uses of force by Memphis police ended in death during these three years.

“I don’t know how much more cumulative Black death our community should have to pay to convince elected officials that the policing system isn’t broken — it’s working exactly as it was designed to, at the expense of Black life,” said Ash-Lee Woodard Henderson, co-executive director of the Highlander Research and Education Center, a Tennesseebased civil rights leadership training school.

The Nichols case—just one of the brutality cases to make national news this month—exposes an uncomfortable truth: More than two years since the deaths of Floyd, Breonna Taylor and Rayshard Brooks touched off protests, policing reforms have not significantly reduced such killings.

States approved nearly 300 police reform bills after Floyd’s murder, creating civilian oversight of police, more anti-bias training, stricter use-of-force limits and alternatives to arrests in cases involving people with mental illnesses, according to a recent analysis by the Howard Center for Investigative Journalism at the University of Maryland.

Despite calls to “defund the police,” an Associated Press review of police funding nationwide found only modest cuts, driven largely by shrinking revenue related to the coronavirus pandemic. Budgets increased and more officers were hired for some large departments, including New York City’s.

Still stuck in Congress is the George Floyd Justice in Policing Act,

which would prohibit racial profiling, ban chokeholds and no-knock warrants, limit the transfer of military equipment to police departments, and make it easier to bring charges against offending officers. Biden said he told Nichols’ mother that he would be “making a case” to Congress to pass the Floyd Act “to get this under control.”

The Rev. Al Sharpton said his eulogy at Nichols’ funeral on Wednesday will include a call for new laws. NAACP President Derrick Johnson also took Congress to task.

“By failing to write a piece of legislation, you’re writing another obituary,” Johnson said. “Tell us what you’re going to do to honor Tyre Nichols.… We can name all the victims of police violence, but we can’t name a single law you have passed to address it.”

Advocates want state and federal legislation because local changes vary widely in scope and effect and can be undone by a single election after years of grassroots activism. But some say strict regulations are just the start — and the video of Nichols’ agony proves it.

“Changing a rule doesn’t change a behavior,” said Katie Ryan, chief of staff for Campaign Zero, a group of academics, policing experts and activists working to end police violence. “The culture of a police department has to shift into actually implementing the policies, not just saying there’s a rule in place.”

The five officers charged—Tadarrius Bean, Demetrius Haley, Desmond Mills Jr., Emmitt Martin III and Justin Smith—were part of the so-called Scorpion unit. Scorpion stands for Street Crimes Operations to Restore Peace in our Neighborhoods.

The Memphis police chief, Cerelyn “CJ” Davis, disbanded the unit on Saturday.

“It is in the best interest of all to permanently deactivate the Scorpion unit,” she said in a statement. Associated Press reporter Noreen Nasir contributed from Memphis, Tennessee. Adrian Sainz also reported from Memphis. Aaron Morrison reported from New York, and Claudia Lauer from Philadelphia

A14 Tuesday, January 31, 2023

USDA UNIT HAILS PLAN FOR ETHANOL BLENDS

By Jasper Emmanuel Y. Arcalas @jearcalas

THE national government’s plan to allow higher ethanol blends of up to 20 percent on a voluntary basis would encourage local producers to expand their output and keep pump prices stable, according to an international agency.

T he United States Department of Agriculture Foreign Agricultural Service in Manila (USDA-FAS Manila) said the current plan of the government to allow higher ethanol blends in gasoline on a voluntary basis is better for the market, particularly in lowering pump prices.

T he USDA-FAS Manila said the voluntary higher blends of E15 and E20 would be facilitated through the approval of a Philippine National Standards (PNS).

Until local ethanol production scales up, a voluntary PNS for E20 would force imported refined petroleum products to compete with imported ethanol for 10 percent of the total blended gasoline pool and have the effect of both immediately lowering pump prices as well as providing a safeguard against future oil price and supply shocks,” it said in its Global Agricultural Information Network (Gain) report.

T he possibility of allowing

higher ethanol blends in gasoline would allow local producers to consider scaling up their current capacities, according to the Gain report.

“Ongoing consideration and opportunity of a potentially larger ethanol market has incentivized local producers to consider scaling current investments as well as explore nontraditional feedstocks,” it said.

T he USDA-FAS Manila estimated that the country’s total blended gasoline supply last year reached nearly 6.8 billion liters, “growing on average by 6 percent a year over the last decade.”

L ocal gasoline output accounts for 20 percent of the country’s total blended gasoline supply, represented by Petron, which remains as the sole domestic refinery.

Meanwhile, the Philippines sources its imported refined petroleum products from China, South Korea, Singapore, Malaysia, Brunei, among others. “ Whereas local and imported refined petroleum products compete openly on price, creating a market equilibrium price between the two, local and imported ethanol do not compete with one another nor with petroleum products. All local ethanol must be exhausted before ethanol imports are allowed,” it said.

Neda gives long-stalled land use bill a new push

By Cai U. Ordinario @caiordinario

PASSING

National Land Use

O n Monday, Neda Secretary Arsenio M. Balisacan told reporters on the sidelines of the formal launch of the Philippine Development Plan (PDP), that the Executive branch is working with Congress to craft and finally pass the Nalua.

B alisacan said this will allow the current administration to speed up right of way acquisition (Rowa), which is often the cause of delay in undertaking many infrastructure projects.

The absence of a national land use is contributing to that difficulty of building infrastructure. Since we do not have that land use, you get into crazy situations where suppos -

edly a highway that goes straight is moving (in another direction),” Balisacan said.

B alisacan said having a national land use law would guide the better planning of infrastructure projects and where they can best be located. He said the Nalua would be able to identify which lands are commercial and which are agricultural.

T he Nalua, Balisacan added, could also identify areas that cannot be built on or those that are protected by environmental laws.

H e believed that even if the Nalua has been in the pipeline for the past 50 years, there is

a chance that the law could be passed under this administration. Both houses of Congress, he said, have agreed to prioritize the crafting of the law.

“ The leadership of both Congress have indicated to us when we met during the first Ledac (LegislativeExecutive Development Advisory Council) and it is included in the list of priority legislation of the executive,” Balisacan said.

T he Nalua has been identified as the priority legislation of administrations for decades. How -

ever, the bill has yet to be passed.

L ast year, former Neda Secretary Karl Kendrick T. Chua said if the next administration wants to finally pass the Nalua, the government must adopt a “door-to-door approach” used by the Duterte administration in passing the tax reform program.

C hua and the architect of the country’s tax reform program said this approach would ensure that lawmakers are able to understand the impact of passing such a law.

H e said the Neda staff could carry on this mandate by explaining to each legislator and making as many presentations as possible.

C hua said there are currently many misunderstood portions of the proposed Nalua. He said some quarters are saying that land use will be the responsibility of one centralized agency in government. He said this was not true and that local government units (LGUs) still had jurisdiction over land use. However, land conversion of land from agriculture to other use has to be decided by a more centralized agency.

By Andrea E. San Juan

FOLLOWING the recent incident involving the Ninoy Aquino International Airport (NAIA), the seven members of the Joint Foreign Chambers (JFC) joined by other business groups called on the House and Senate to reconsider the bill creating the Philippine Transportation Safety Board (PTSB) and approve the same in the 19th Congress.

Other business groups that prodded the two chambers of the legislative branch to take another look at the bill creating the PTSB are the Safe Travel Alliance (STA) and the International Air Transport Association (IATA).  “

The recent incident involving the NAIA and the alleged faulty air traffic management system has brought air transportation safety—and transportation safety, in general—in the spotlight,” the business groups said in a joint statement on Monday.

T he business groups said the incident was a “strong reminder” of the need to pass legislation creating the Philippine Transportation Safety Board (PTSB).

I n a letter to the Senate Public Services and House Transportation Committees—amid ongoing congressional hearings on the NAIA incident—members of the JFC expressed support for the creation of the transportation safety board.

A ccording to the business groups, all investigations on transportation accidents are currently undertaken by the government agencies that have “regulatory powers” over the respective sector of the transportation industry.

B ecause most of these agencies are also tasked to regulate and/or operate the sector, the business groups said “there is an inherent conflict of interest in the performance of their duties as investigating bodies.”

A ccording to the bill that creates the PTSB, the transportation safety board seeks to be an “independent and impartial” transportation safety body patterned after

best practices in other countries that will address regulatory gaps in the transport safety bureaucracy; facilitate the enhancement of transportation safety measures and standards; and coordinate all the actions of relevant public and private entities towards the common goal of ensuring transport safety.

T he legislation was approved in both Houses in the previous Congress but was vetoed in  the early days of President Ferdinand “Bongbong” R. Marcos, Jr.’s presidency.

T he stakeholders expressed optimism that the current Congress can “refine” the bill so that the reasons cited for the veto can be addressed.

M arcos declined to sign the bill creating the PTSB in July, since it would have the same functions as the agencies under the Department of Transportation (DOTr) as well as the Philippine National Police (PNP) and the National Bureau of Investigation (NBI).

B eatrix “Trixie” Cruz-Angeles, the then  Press secretary of the President, had explained in a statement in July 2022 that creating a new body will only create “functional duplication, confusion as authority, ineffectiveness, and deficiency in the performance of the responsibilities.”

O nce enacted, the business groups said the new PTSB can commence its programs to prevent major transportation accidents which compromise the lives of the travelling public.

T he groups that called for the reconsideration of the bill are:

American Chamber of Commerce of the Philippines; Australian-New Zealand Chamber of Commerce of the Philippines; Canadian Chamber of Commerce of the Philippines; European Chamber of Commerce of the Philippines; International Air Transport Association; Japanese Chamber of Commerce and Industry of the Philippines, Inc.; Korean Chamber of Commerce of the Philippines, Inc.; Philippine Association of Multinational Companies Regional Headquarters, Inc. and Safe Travel Alliance.

SC voids SEC regulation on CPA accreditation

By Joel R. San Juan @jrsanjuan1573

THE Supreme Court has declared as unconstitutional the memorandum circulars issued by the Securities and Exchange Commission (SEC) requiring the accreditation of certified public accountants (CPA) acting as external auditors of corporations issuing registered securities and possessing secondary licenses.

In a 15-page decision penned by Associate Justice Ricardo Rosario, the Court en banc unanimously denied the petition filed by the SEC seeking the reversal of the March 20, 2018 decision of the Regional Trial Court (RTC) of Davao City, which declared Paragraph 3, Rule 68 of the Implementing Rules and Regulations of the Securities Regulation Code (SRC) and SEC Memorandum Circular No. 13-2009.

T he RTC nullified the said provisions for being contrary to Republic Act 9298 or the Philippine Accountancy Act, unconstitutional, and issued ultra vires or beyond SEC’s legal authority.

T he said provisions mandate that only an external auditor and his auditing firm accredited by the commission “shall be engaged by corporations covered by this Circular for the statutory audit of their financial statements.”

A fine ranging from P100,000 to P400,000 is also imposed by SEC against auditing firms or responsible external auditors who will be found violating the accreditation requirement.

However, the SC noted that the assailed regulations were issued based on several provisions of the SRC and the Corporation Code, which covers corporations.

T he said provisions, according to the SC, do not provide that such should extend to individual CPAs.

Thus, all other powers granted by the SRC provisions relied upon by petitioner flow from the SEC’s jurisdiction over corporations, and cannot be made to apply to individual CPAs,” the SC explained.

While petitioner may regulate corporations as well as the securities

market, such regulation does not extend to an authority to restrict, even in the slightest degree, the practice of accountancy,” the SC said.

T he SC added that the requirement being imposed by the SEC is an additional burden for the CPAs considering that they still need to secure a license to be able to practice accountancy.

“ Thus, the CPAs are left with no choice but to go through the accreditation process should they wish to conduct a statutory audit of corporate financial statements, when in fact, such is part of the practice of accountancy for which their CPA license already suffices,” the SC noted.

F urthermore, the SC said, the power to supervise the accounting profession and impose regulations on CPAs is exclusively delegated to the Professional Regulatory Board of Accountancy.

T he SC did not give weight to SEC’s argument that it executed a memorandum of agreement (MOA) with the board, which allows for the

accreditation with the SEC.

“

Moreover, a private agreement such as the MOA cannot operate to validate a transgression of a provision of law. Thus, the MOA is void and cannot serve as authorization for the petitioner to make the assailed issuances,” the Court added.

T he case stemmed from a petition for declaratory relief with prayer for preliminary injunction and temporary restraining order filed by 1Accountants Party List Inc. represented by its president Christian Jay Lim, who is also a certified CPA, as well as several other CPAs before the RTC.

T he petitioners argued that the said regulations were issued without authority by the SEC, violate RA 9298 and restrict the right of CPAs to practice accountancy.

T hey further argued that MC No. 13-009 violates their right to due process as well as their right to equal protection of the law.

T he trial court ruled in favor of the petitioners, prompting the SEC to elevate the issue before the SC.

the

Act (Nalua) would allow the country to make headway in Right of Way issues that need to be resolved to undertake infrastructure projects, according to the National Economic and Development Authority (Neda).

After airport fiasco, JFC pitches transport safety board anew

‘REGISTER ANYWHERE’ The Senate of the Philippines and the Commission on Elections, led by Senate President Juan Miguel Zubiri and Comelec Chairman George Garcia, formally signed the memorandum of understanding on the “Register Anywhere Project,” which seeks to provide a venue for voters to register or modify their existing registration without having to visit the Comelec office in their city or municipality. Senators Nancy Binay, JV Ejercito and Robin Padilla, Senate Secretary Renato Bantug Jr., Comelec Commissioners Socorro Inting and Rey Bulay witnessed the signing at the Senate building in Pasay City on Monday, January 30, 2023. ROY DOMINGO

BALISACAN

Editor: Jennifer A. Ng

Companies

Tuesday, January 31, 2023

DOE aims to scrap barriers blocking power investments

By Lenie Lectura @llectura

of the cap curtails new investments in the energy sector.

For instance, the philippine Independent power producers Association (pIppA) said the cap is not reflective of the real situation of the energy sector.

“As early as 2014, pIppA has been advocating the removal of the spC to provide proper price signal for additional investments in the generation sector,” the group had said.

Energy secretary Raphael Lotilla said one of the stumbling blocks is the secondary price cap (spC), a mechanism that puts a ceiling on traded power whenever prices shoot up in the Wholesale Electricity spot Market (WEsM).

“The secondary price cap has been imposed way back in 2013, but this has been difficult to lift at this time

because of the impact on prices. But we will have to deal with this if we want to attract more investments down the line,” said Lotilla during the ph ilippine de velopment pl an forum on Monday afternoon.

While the secondary price cap is being implemented to protect consumers from higher WEsM prices, the private sector said the imposition

Another stumbling block identified by Lotilla is the “general attitude of governments at all levels towards investments in energy.”

“When we had the typhoons in Luzon last time, a number of efforts to rehabilitate the transmission lines would not be effected immediately because some LGUs [local government units] refused to have the

lines rehabilitated for one reason or another.

We’ve got to make all sectors realized that they can’t be blocking power projects that are going to benefit the entire country if we are to see the sustainable development of our economy,” the energy chief said.

Lotilla underscored the importance of the private sector in the power sector. “It is government that sets the policies, but it is private sector that drives investments and operations in the upstream, midstream as well as in the downstream.

so, all our efforts have been directed at reforming a number of these policies that have been stumbling blocks to the entry of new investments. The policy of this sector is to have market-driven approaches,” he added.

Upson’s ₧4.8-B IPO gets PSE nod

By VG Cabuag @villygc

Upson International Corp., a retailer of personal computers and information technology products, has secured the approval of the philippine stock Exchange (psE) for its p4.88-billion initial public offering (Ipo)

The psE has granted the notice of approval for Upson to sell to the public up to 789.47 million in primary common shares and up to 98.68 million secondary common shares, with an over-allotment option of up

to 98.68 million secondary common shares, at up to p5.50 each.

According to the company, the price setting of shares will be on February 28. The offer period is from March 6 to March 10 while the tentative listing date is on March 16.

Upson operates a nationwide retail network of 200 stores as of september 30, with its brands like octagon Computer superstore, Micro Valley, Gadget King and octagon Mobile as well as concept and specialty stores like Acer, Hp, Brother and si lvertec in select locations.

“We are both thrilled and grateful

to have received the psE ’s approval for our planned initial public offering. This is a significant milestone as we look forward to sharing our growth prospects with everyone,” Upson president and CEo Arlene sy said.

Upson aims to raise gross primary proceeds of around p4.34 billion at its full offer price, which will be used to fund the expansion of its store network and for other general corporate purposes. The company plans to open 250 new stores or an additional 25,000 square meters of retail space from 2023 to 2027, with majority of

the store openings planned for the next three years, or until 2025.

The expansion includes adding warehouses and distribution facilities located in nine other areas nationwide. The nationwide logistics infrastructure that supplements its retail network is to ensure uniform pricing of its products across all its branches. our long-valued suppliers and clients have helped us grow to where we are today. Going public is Upson’s way of sharing our growth and our success with them through partnership,” sy said.

GMA n e twork Inc. said on Monday it opened the year on “a digital high” after edging out competitors in viewership and search ranking within the first two weeks of 2023.

Citing data from global video measurement and analytics platform Tubular Labs, GMA network said its official youTube Channel “has outperformed AB s - CBn ’s in terms of views,” tallying 167 million views versus its competitor’s 158 million views.

Its local news youTube Channel, meanwhile, logged 61.5 million views versus AB s - CBn s 35 million.

GMA network added that its official website generated an average of 3.7 million organic traffic for the first 15 days of the year.

“GMA’s online upward trajectory is driven by its original and buzzworthy content that consumers can easily access,” the listed broadcaster said. “With its strong online presence, GMA network further gears up this 2023 to reach more Filipinos beyond on-air platforms.” Just this month, GMA partnered with the Alliance for Creativity & Entertainment to further strengthen its effort against digital piracy. ACE is widely regarded as the world’s largest and most effective antipiracy coalition with over 50 current global members and GMA is its first member from the ph ilippines.

The network likewise launched its own anti-piracy advocacy campaign dubbed “ s t ream Responsibly. Fight p i racy” which aims to raise awareness among the public, especially the younger generation, on the value of creative works. The campaign also seeks to protect and educate the public about the potential harms of clicking pirated websites and apps. Lorenz S. Marasigan

IsUzU Gencars Makati received the dealer of the year Award (doyA) from Isuzu philippines Corporation (IpC) during the 2022 dealer of the year Awards night held on January 27, 2023 at the Grand Ballroom of Marriott Hotel in pasay City. This is Isuzu Makati’s third doyA following its back-to-back win in 2004, the first-ever doyA given, and 2005. It also placed 2nd in 2006 and 2010, and 3rd in 2009.

The dealer of the year Award is given by Isuzu philippines Corporation to recognize the hard work and exemplary sales and aftersales performance of Isuzu dealers each year.

Aside from the d oy A , Isuzu Makati, which has satellite branches in naga and Legazpi in the Bicol Region, also won 1st pl ace in the Excellence in pa rts o perations category

and 2nd pl ace in the Excellence in service o perations category.

In her brief message during the awarding ceremony, Isuzu Gencars, Inc. president Lerma o nacnac expressed gratitude to IpC for the recognition. she also acknowledged the hard work and cooperation of the whole Gencars team. “This would not have been possible without the help of our employees, our officers, and sales agents. This is the fruit of the hard labor, cooperation, teamwork, and collaboration of the group,” nacnac said, ending her message with a wish for the team to “consistently have a good performance for the years to come.”

Isuzu Gencars, Inc. Chairman d Edgard A. Cabangon, who also graced the awards night, likewise conveyed his heartfelt thanks to Isuzu philippines for its unwavering support to

the Gencars group through the years.

“We would like to say thank you, IpC for your support, dedication, and belief in the Isuzu Gencars group. Without your help and without your commitment, this award would never be possible,” said Cabangon.

In January 2015, Isuzu Gencars provided the custom Isuzu d -MAX popemobile used by His Holiness pope Francis during his visit to the philippines. Later in the same year, the company gifted His Holiness a second popemobile, which was sent to The Vatican.

Founded in 1978 by the late Ambassador Antonio L. Cabangon Chua, Isuzu Gencars has been a recipient of multiple dealer of the year Awards and recognition over the years. It is a member of the ALC Group of Companies, which is also headed by d Edgard A. Cabangon as chairman.

B1

Tanduay sustained growth momentum in 2022, says chief

TA n dUAy, a distiller under listed LT Group Inc., said its business continued to grow last year as it improved its operations and the distribution of its products.

“With the help of the management and marketing teams, we were able to bring Tanduay to more people. o u r research and development team, meanwhile, has been instrumental in our introduction of products to meet new market demands,” Tanduay p resident and Co o Lucio Tan III said.

The brand increased its nationwide share in the distilled spirits market to 30.7 percent as of september last year, up from 26.6 percent in 2021. It continued its domination in the Visayas and Mindanao, with a market share of 69.8 percent and 79.4 percent, respectively.

Also, it entered more European markets by inking partnership agreements with leading spirits distributors. Tanduay is now present in poland, Austria, the United Kingdom, Georgia, Armenia, Belgium, the ne therlands and Luxembourg. It reached Australia and Canada last year.

The brand, last year, established Tanduay Bars in the home arenas of its new partner teams in the national Basketball Association. These include the Fiserv Forum of the Milwaukee Bucks, the Target Center of the Minnesota Timberwolves and the Footprint Center of the phoenix su ns.

Tanduay remains as the only Filipino brand to have partnerships with leading n B A teams, which includes n B A champion, the Golden st ate Warriors.

Tan noted that the pandemic affected customers’ tastes and buying habits. d e mand for ready-to-drink

alternatives increased due to the lockdowns, according to d r inks International Magazine’s key trends for 2022. Customers have also gone online to purchase products. si nce Tan’s appointment, Tanduay has introduced three products locally in the past two years--the barrel-aged gin, Ginto; Tanduay cocktails; and Barman cocktail concentrates.

The brand has also established an e-commerce store, shots.ph, to make it easier for customers to buy authentic Tanduay products online.

Tanduay, the brand, has also achieved the feat of being named the World’s nu mber 1 Rum for five consecutive years by d r inks International Magazine, which gathers sales figures of different brands across the globe.

“It takes a lot of work, but the numbers are very rewarding. With Tanduay’s strong team culture, I know we can take the brand further and continue its winning legacy,” Tan said. VG Cabuag

Edgard

Cabangon (5th from left) holds the 2022 Dealer of the Year Award received by

The Department of energy (DOe) wants to remove “stumbling blocks” that prevent the entry of new investors in the Philippine

Low asking rates prompt full award of T-bills

By Jasper Emmanuel Y. Arcalas @jearcalas

The Bureau of the Treasury’s (BTr) auction committee successfully raised its total intended amount after fully-awarding all the 91-day tenor, 182-day tenor and 364-day tenor of T-bills that amounted to P5 billion each.

National Treasurer Rosalia V. De Leon said the Treasury was able to fully-award the auction because of the “strong demand” and “lower rates” across all tenors.

Treasury data showed that the average rates for all the three T-bills tenors were below the secondary

market benchmark levels.

The 91-day T-bills fetched an average rate of 4.152 percent, lower than its secondary market rate of 4.376 percent while the 182-day debt paper got an average rate of 4.875 percent as opposed to its 4.954 percent secondary market rate.

The 364-day T-bill, which had a secondary market rate of 5.395 percent, fetched an average rate of 5.354 percent during Monday’s auction.

Treasury data showed that all tenors of the T-bills were oversubscribed with total tender amounting

to P61.85 billion, 4.123 times higher than the P15 billion programmed amount for the auction.

The 91-day T-bills had a total offer of P16.58 billion, the 182-day T-bills fetched P17 billion while the 364-day T-bills had a total tender of P28.27 billion.

Monday’s auction was already part of the national government’s domestic borrowing program.

The government seeks to borrow P200 billion in February from the domestic market through the auction of T-bills and Treasury bonds (T-bonds).

(Related story: https://businessmirror.com.ph/2023/01/25/government-eyes-to-borrow-p200bvia-debt-mart/)

The Treasury has been off to a good start this year in terms of raising funds for the national government through local auctions of T-bills and T-bonds.

The Treasury has been able to achieve near full-award and fullaward of government securities as investors’ asking interest rates ease within or even below secondary market benchmark levels.

Why consider having non-life insurance BPI raises bond offer 4x from target on high demand

FiNANc i A L freedom as a goal becomes more challenging to achieve as we face a world characterized by volatility, uncertainty, complexity and ambiguity.

There are many risks that can end up ruining the best of plans. Political, economic, social, technological, environmental and legal developments affect people and personal finance. Hence, apart from knowing the value of saving and investing, having protection against risks is important. Protection can come in the form of nonlife insurance where we protect what we own.

A study by the Harvard Human i n itiative notes that the Philippines is one of the world’s most disaster-prone countries. it has major tectonic plates and is at the center of a typhoon belt. The common natural disasters that hit the Philippines are floods, typhoons, landslides, earthquakes, volcanoes and droughts.

Apart from deaths and injuries, many assets get damaged because of disasters. Unfortunately, the same study notes that the Philippines fares poorly in terms of population exposure and vulnerability to hazards. Protecting assets therefore becomes very important given the geographic vulnerability of the country to disasters.

o ne popular type of non-life insurance is home insurance. For many people, owning property is a cherished life goal. A home provides utilitarian value to families and it also provides a good potential source of passive income through rental revenue. i f a disaster strikes and the home is not insured, there is a big chance that savings will be drained and loans might be forthcoming. Nothing beats peace of mind.

Road safety is a challenge in the Philippines. The Metro Manila Accident Reporting and Analysis System revealed that there were 42,812 cases of damage to property in 2021 as a result of road crashes. o ne of the top causes of road accidents would be human error.

Apart from road accidents, damages to vehicles and theft can also occur. Thus, another popular type of non-life insurance will be auto insurance. A vehicle gives benefits like mobility and business opportunities like trading, delivery and ride-hailing services.

There are other popular types of non-life insurance. As travel resumes after the ill effects of the co-

v id-19 pandemic, travel insurance becomes valuable when it comes to travel emergencies and losses. As people resume onsite activities and become more exposed to the external environment, health insurance becomes valuable for matters like health maintenance and medical treatment. The pandemic made many businesses experience irregular operations. Business insurance helps in smoothening operations.

i n planning for non-life insurance, there are certain things that must be considered. o ne has to be able to prioritize assets according to importance. Not all assets have the same value to individuals. o nce the asset to be insured has been identified, there must be a conscious effort to include the payment of premiums in the monthly budget. i n terms of budgeting, payment for premiums can be done ahead of needs and wants. The envelope budgeting system can be applied where premiums have a dedicated envelope.

c hoosing the right non-life insurance provider is vital. Due diligence is necessary. Scouting the market helps. Financial performance gives information about the financial stability of the non-life insurance company. Qualitative information like the management team, customer service reputation and business plans provide insight about the agility of the company. o nce the non-life insurance provider is chosen, a study of benefits in relation to costs must be undertaken to ensure that net marginal benefit is positive.

Protection against life risks is a necessary step in ensuring that emergencies do not wipe out our finances. Non-life insurance will give us the opportunity to eventually save more and invest more for the long haul. As Filipinos become more financially-secure, the nation will find itself in a better economic position.

Gemmy Lontoc is a registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 100th RFP program this March 2022. To inquire, e-mail info@rfp.ph or text at 0917-6248110.

By Cai U. Ordinario @caiordinario

THE Ayala-led Bank of the Philippine islands (BPi) raised its bond offer to four times their initial target due to high demand.

The bank said the bond offer was increased to P20.3 billion from the initial P5-billion target to accommodate strong investor demand.

The Peso Fixed-Rate Bonds are due in 2024 and have a term of 1.5 years. The bonds are called BPi Rein-

forcing inclusive Support for MSMEs Bonds. BPi President and cEo Jose Teodoro K. Limcaoco thanked the bank’s investors “for their continued support and trust.”

Limcaoco said the investments in the BPi R iSE Bonds will help “empower micro, small, and medium enterprises to reach their full potential and succeed in their ventures.”

“The success of the bond offering brings BPi one step closer to realizing our vision of building a better Philip-

Aboitiz-owned bank credits ICT for high ’22 numbers

THE shift to mobile and digital banking boosted the performance of the Union Bank of the Philippines (UBP) in 2022.

in a disclosure to the Philippine Stock Exchange (PSE), the Aboitiz-owned bank reported a net income of P12.7 billion in 2022.

Unionbank disclosed that its net revenues reached a record high of P52.2 billion, a 16 percent increase year-on-year (YoY). in 2022, we witnessed a momentous shift in our business model. We have a solid balance sheet that continues to provide us above industry net interest margins,” said Executive Vice President and c hief Finance off icer Manuel R. Lozano.

“The shift in digital also allowed us to grow our fees coming from mobile fund transfers and payments. We were able to book the same bottomline as the previous year, but with less reliance on trading,” Lozano added.

Unionbank said its earnings result translated to a return on average equity of 9.7 percent. This took into consideration the impact of the P40 billion additional capital from the Stock Rights of fer last May 2022.

“Revenues mainly came from net interest income and feebased income, which compensated for the absence of trading gains,” Unionbank said.

The bank reported that its net interest income increased by 31 percent to P38.9 billion on account of higher margins and volume.

Net interest margins also expanded by 27 basis points to 4.9 percent driven by the higher proportion of consumer loans to total loans and the robust growth

of low-cost c A SA deposits or up to 29 percent year on year.

Strategic imperatives

THE bank added that fees and other income doubled to P13.4 billion largely due to the consolidation of the acquired citi consumer business, as well as growing digital customer transactions.

“At the start of 2022, we made a commitment to execute on key strategic imperatives. First, the seamless integration of the acquired citi consumer business, which includes customers and employees,” said Edwin R. Bautista, President and chief Executive of ficer.

“Second, the commercial launch of UnionDigital as one of the six digital banks licensed by the Bangko Sentral ng Pilipinas. We delivered on our promise and the market has rewarded us for it,” he added.

Unionbank reported that total assets reached P1.1 trillion, 31 percent higher than prior year. cu stomer loans jumped by 42 percent to P479.2 billion, resulting from the combined growth in UBP and citySavings consumer loans, as well as the acquired citi consumer business.

Total deposits went up by 25 percent to P711.3 billion due to the overall expansion of the retail customer base and the strong take up of cash management products from large corporations.

o u r recent stock performance, increase in stock trading volumes, and the strong commitment from our major shareholders on our Stock Rights of fering reflect shareholders’ trust in the value that will be created from the execution of our strategies,” Bautista said. Cai U. Ordinario

pines -- one family, one community at a time,” he was quoted as saying in a statement issued last Monday.

The BPi R iSE Bonds were issued under the lender’s P100-billion bond program, approved by its Board of Directors on May 18, 2022.

The bonds bear an interest rate of 5.75 percent per annum, payable quarterly, and are now tradable on the Philippine Dealing & Exchange corp. (PDEx).

The net proceeds of BPi’s offering

will be used to finance or refinance the business requirements of eligible Micro, Small and Medium Enterprises (MSMEs), consistent with BPi’s Sustainable Funding Framework. Sustainalytics, a multi-awarded global ESG research, ratings, and data firm, conducted the pre-issuance asset review of BPi R iSE Bonds. BPi capital corp. and iNG Bank N.V., Manila Branch, served as Joint Lead Arrangers of the offer. BPi capital was the Sole Selling Agent.

Hedge

funds

boost treasury shorts to record on doubts

HEDGE funds are betting this year’s stellar start for Treasuries is too good to last, quietly building up the biggest bearish bet on bond futures on record.

An aggregate measure of net-short non-commercial positions across all Treasuries maturities has hit 2.4 million contracts, according to the latest data from the commodity Futures Trading commission as of Jan. 24. The positions cover a multitude of investment strategies from outright bets to yield-curve wagers to relative trades to hedges, but the overall direction clashes with the narrative that a peak in rate hikes is near and a US recession will push investors back into bonds.

“The surge of bets against Treasuries may be driven both by the risk for a hawkish Federal Reserve meeting this week and also the longer-term concern that a soft landing would mean higher yields,” said chamath De Silva, a senior portfolio

manager for Sydney-based BetaShares Holdings. “if the US economy can thrive in the face of the tightest hiking in recent history then that should mean we end up with a higher neutral rate and a re-steepening of the yield curve.”

Treasuries roared out of the gates in January, flirting at one stage with their best start to a new year in more than three decades, on widespread anticipation the Fed is nearing the end of rate hikes as inflation eases and the US economy cools. A Bloomberg index of the bonds has climbed 2.3 percent so far this month, after falling 12.5 percent last year. investors are readying for the Fed’s latest policy decision this week—and key job-market data—in what is seen as the first big test of the Treasuries rebound. Money markets are wagering on 26 basis points of hikes on Wednesday with a further 33 basis points of increases expected before the peak is reached by the middle of the year. Bloomberg News

CEO leaves gambling firm after laundering failures

GAMBLiNG group 888 Holdings Plc suspended ViP customer accounts in the Middle East after discovering that its anti-money-laundering protocols weren’t followed and said its chief executive officer will step down.

The company started internal investigations after it found that “know your client” best practices and anti-money laundering procedures for its highest-value gamblers weren’t followed, 888 said in a statement on Monday. 888 said it believes the “process deficiencies” are isolated to its Middle East market and that the suspension of V iP activities will reduce revenue by less than 3 percent.

cEo it ai Pazner will leave the company immediately, 888 said in a separate statement. Pazner, who’s been at 888 for more than 20 years and cEo for four, didn’t

respond to requests for comment. The company didn’t expand on the reason for his departure and representatives for 888 didn’t immediately respond to requests for comment. Shares dropped 28 percent at 10:20 a.m. in London, their biggest intraday decline since 2006, and taking them to their lowest level since March 2020.

T he development could mean a hit to full-year earnings of between £30 million ($37.2 million) and £40 million if the region’s V iP customers don’t return, Goodbody analyst David Brohan said in a note to clients. it also raises the issue of liabilities related to historical revenue from these customers, he added. V iP customers are a small set of gamblers who typically spend a disproportionate amount and can receive special attention from operators. Bloomberg News

Bitcoin barrels toward historic January as crypto market jumps by $280 billion

BiTcoiN is set for its best January since 2013 on bets that monetary tightening and the crypto-sector crisis are both ebbing.

The largest token is up over 40 percent since the turn of the year, a first-month gain bettered only twice before when crypto was in its infancy.

Smaller coins like Solana, Axie infinity and Decentraland have doubled in value, part of a $280 billion January climb in digital assets overall, coinGecko figures show.

The rebound from last year’s deep rout is part of a wider revival in risk appetite on expectations that central banks will slow interest-rate hikes and perhaps even cut borrowing costs later this year as high inflation moderates.

The rally in virtual coins has weathered ongoing fallout from the collapse of Sam Bankman-Fried’s FTX exchange—such as the bankruptcy of crypto lender Genesis Global Holdco LLc and a spate of

layoffs across the industry.

January “feels like a month of new beginnings, with emerging clarity as to bankruptcy proceedings, corporate restructurings and market fundamentals pointing to the bottom being behind us,” wrote Noelle Acheson, author of the “cr ypto is Macro Now” newsletter.

Plenty of skeptics ST iLL there are plenty of skeptics who doubt if the rebound in the likes

of crypto and tech stocks will last. one risk is that the soft economic landing markets are hoping for is fanciful because rates must stay higher for longer.

The comeback of speculative assets like Bitcoin and the Ark innovation ETF “will likely reverse” if oil, wages and consumer-price increases shift the “soft landing” narrative temporarily in coming weeks into a “no landing” view, Bank of America corp. strategists led by Michael Hart-

nett said last week.

Federal Reserve c h air Jerome Powell may also remind investors that officials plan to keep rates elevated for some time. He’s due to speak after an expected downshift by the Fed to a quarter-percentagepoint hike this week.

Some corners of global markets are also flashing warnings. For instance, hedge funds have built up the biggest bearish bet on bond futures on record, clashing with

the narrative that a peak in rate hikes is near. For now, momentum is king. Rick Bensignor of Bensignor investment Strategies targeted $25,000 for Bitcoin in a note Monday, a level it last hit in August. Bitcoin was little changed at $23,700 as of 6:36 a.m. in London on Monday. it ’s on course for the best month since December 2020. Ether, the second-largest token, was steady at about $1,635. Bloomberg News

THE national government kicked off its February borrowing program with a full-award of P15-billion worth of Treasury bills (T-bills) as investors’ asking rates continue to fall amid stronger demand.

PerSonAl fInAnCe

Genesis Kelly S. lontoc

CELEBRITIES BORN ON THIS

DAY: Mario Williams, 38; Justin Timberlake, 42; Kerry Washington, 46; Portia de Rossi, 50.

HAPPY BIRTHDAY: Follow the path of least resistance. Explore the unfamiliar, and you’ll develop concepts that will make life easier. Invest time and money in what’s important to you. Keep moving toward your target with an open mind and positive attitude. Relationships will stabilize if you are willing to give and take. Don’t jeopardize your health; protect against illness and injury. Your numbers are 5, 11, 16, 28, 35, 38, 47.

ARIES (March 21-April 19): Turn an idea into something with moneymaking potential. Hone your skills and present what you have to offer. Recognize who needs your help and who intends to take advantage of your kindness and good nature before you commit.

★★★★

TAURUS (April 20-May 20): A proposal someone makes will tempt you. Rely on yourself, not others, if you want to get ahead. Set your own goals instead of trying to follow in someone’s footsteps. Don’t let someone’s bragging make you feel inferior. ★★★

Deconstructing the human element

February 3. Both exhibitions will be on view at the gallery’s Ayala Malls Manila Bay space in Parañaque City until February 23.

Arro is an Ilonggo modern realistic visual artist whose career spans over 20 years. Unceasing motion defines his vibrant art, where from the swirling and twirling of colors appears a recognizable image. There was a point when it was usually pop culture icons, from Marilyn Monroe to Madonna.

spirit.

It’s the human character that shines as well in Gerry Joquico’s piece, albeit in a non-human form. Firmly seated on a barber’s chair in Kwentong Barbero Serye Cuatro is a dog, a common subject of the figurative artist, alongside people.

ONE deviates from human figures forming from abstraction, while the other charges into its image and very essence at all angles.

In the latest exhibition lineup of Art Elaan (www. artelaan.com), Cezar Arro’s brand of expressionism gives life to a new set of creatures. Opposite his oneman presentation is a group show comprised of six artists that explore what makes us human.

Arro’s solo, titled Chimerical, and the group exhibit, titled Cogito, ergo sum, featuring Clark Manalo, Gerry Joquico, Dennis Capellan, Martin Ampuan, Jaime

In his ongoing presentation, Arro moves to the highly fanciful. He submits to the whimsical as we no longer see a human face. In its place is a hodgepodge of creatures, each finding their way through the jungle of Arro’s gestural strokes. This captivating madness goes full bloom in Garden Veil Fanciful

While Arro’s Chimerical steers clear of humans, Cogito, ergo sum tackles the concept of humanness. What, if anything, makes us who we are?

For instance, social realist Clark Manalo captures the daily grind of his compatriots in Navotas. His works further accentuate their struggles through distortions: body parts geometrically sliced and scenes segmented. Often retained, however, are the subjects’ piercing gaze, signifying resilience, which also serves as Manalo’s salute to their indomitable

Meanwhile, Dennis Capellan’s more anthropomorphic subjects likewise embody the human element. This is shown in one of his sketches inspired by classical portraiture, titled Shelter, where the character clad in a period dress clutches a duckling in both hands, its head an open structure that houses a filled-up vase.

With more straightforward figurative depictions of people are Martin Ampuan, Jaime Gubaton and Edwin Ladrillo. There’s a sense of textured longing in Ampuan’s pieces, while Gubaton offers a hyperrealistic portrait of woman, often modeled by his wife and daughter. The subject’s mouth appears covered by a crumpled reflection. Then, Ladrillo whips up his dramatic scenes and engaging play on light. For more details on the shows, follow Art Elaan on Facebook and Instagram, or contact via (027) 728-6577, info@artelaan.com or inquiry.artelaan@gmail.com. ■

Antipolo-based artist holds nature-inspired exhibit at Araneta City’s Gateway Gallery

THE crashing of ocean waves on stolid rocks; the swaying grass on a windy hill; the dripping of myriad hues on the daybreak sky. Artworks that extol nature and the human experience are the main theme of the third art exhibit of Antipolo-based artist Joseph Espino at the Small Room of Gateway Gallery

Live Dreams: From Quartz to , Espino’s art exhibit is an assembly of works in various media that unravels God’s palpable handiwork, the natural world. Espino says that this incredible vision of wonder happens anytime and anywhere. We only need to listen and see

To acknowledge God and help in spreading the gospel, Espino signs his artwork with “John 3:16.” “I remember one afternoon going home when I saw this Bible verse in one of the nondescript walls along Edsa. It is one of the greatest messages of the Bible. Suddenly, at that moment, the spiritual experience became my source of inspiration for painting. All the things that we have, we owe to God: our wealth, our jobs, our family—and, yes, even our talent,” said Espino. A full-time artist, Espino has been working as a web and graphic artist for almost 30 years. He is a Cultural Center of the Philippines Grantee in Poetry, a two-time

third-placer in GSIS Art Awards, and an honorable mention in the Sculpture Category. Unlike other artists, Espino’s process in art-making is a bit quirky and disorganized as he developed a habit of doing various routines before facing the canvas such as puttering in the garden or simply meandering and waiting. From there, he gets motivated to start painting.

Joseph Espino’s Live Dreams: From Quartz to Mountains solo art exhibit is on view until January 31, at the Gateway Gallery on Level 5 of Gateway Mall in Araneta City. Entrance to Gateway Gallery is free of charge, and the catalog to the art exhibit is available upon request from Gateway Gallery.

GEMINI (May 21-June 20): Don’t give up when you should get moving. Home, family and getting things in order will help put your mind at ease. An emotional issue will escalate if you let anger lead the way. Use moderation and your imagination, and success will be yours. ★★★

CANCER (June 21-July 22): Make a financial move that lowers taxes. You can sell items you no longer use and ease the stress the changing economy brings. A partnership will prompt you to reevaluate prospects and protect what’s yours. Personal gain is apparent. ★★★

LEO (July 23-Aug. 22): By offering your services, you’ll position yourself for success. Be true to yourself and do the best job possible. Just take on what you can handle and do your best; your effort will improve your profile and credibility. Manage money wisely. ★★★★

VIRGO (Aug. 23-Sept. 22): Dig in and live up to your promises. Don’t expect someone to swoop in and take over. Plan strategically and execute your plans flawlessly, and progress will be yours. ★★

LIBRA (Sept. 23-Oct. 22): Inconsistency will be your downfall. Gather information and decide your next move based on your findings, feelings and what you want. Don’t feel the need to give in to someone trying to bully you. Honesty will clear up an emotional setback. ★★★★★

SCORPIO (Oct. 23-Nov. 21): Be a good listener. Size up situations and keep an open mind. Go directly to the source to avoid misinformation. You may need to visit someone in person to get a clear picture of their situation and how it affects you. ★★★

SAGITTARIUS (Nov. 22-Dec. 21): Leave nothing to chance. Ask for proof in writing in order to avoid disappointment. Saying yes to someone before you have all the facts will leave you in a precarious position. A job prospect looks inviting but difficult. ★★★

CAPRICORN (Dec. 22-Jan. 19): Go with the flow, find your rhythm and make your mark. Take care of business before moving on to something that’s more fun. Don’t let a money matter disrupt a friendship or your plans. Don’t trade in one set of problems for another. ★★★

AQUARIUS (Jan. 20-Feb. 18): A curious mind will lead to innovative options. Don’t be afraid to do things differently. Set a course that helps you expand your qualifications. A change at home will turn out better than anticipated. Believe in yourself. ★★★★★

PISCES (Feb. 19-March 20): Put your to-do list in order of importance and start working toward an end goal. The proper sequence of events will make your life easier and encourage others to participate. A friendship will be affected by your course of action. ★★

BIRTHDAY BABY:

You are curious, sensitive and intuitive.

You are determined and persistent.

The

by Anna Gundlach

Ryan Reynolds goes through range of emotions in FA Cup match

RYAN REYNOLDS went from joy to despair, and punch-the-air ecstasy to desolation.

The unlikely new love of his life—Welsh soccer club Wrexham put the movie star on an emotional roller coaster Sunday in a thrill-a-minute FA Cup match that had an ending not quite in the script.

Wrexham, the fifth-tier team bought by Reynolds and fellow Hollywood actor Rob McElhenney for $2.5 million in November 2020 on the recommendation of one of their writers, conceded in the fifth minute of stoppage time to draw 3-3 with Sheffield United.

Reynolds and one of his daughters flew in for the fourth-round match at the atmospheric Racecourse Ground in north Wales, about 28 miles south of Liverpool, and went through a whole range of emotions as the goals poured in at either end.

He’s getting used to it by now.

“I’m now so much in love with this sport that I actually hate it,” Reynolds, a Canadian-born actor best known for starring in the Deadpool movies, told the BBC before the match.

“Each match I’m pacing around like a caged lion.”

With 71 places between the teams in English soccer’s pyramid, Wrexham came close to a big upset to add to a long line in its history. The team beat then-English champion Arsenal in the third round in 1992 and also reached the quarterfinals in the 1996-97 season, when it was in the third tier.

This was the biggest occasion since Reynolds and McElhenney, an American actor and director who was the creator of TV show It’s Always Sunny in Philadelphia took over.

Fans serenaded Reynolds, who was in one of the directors’ boxes and was standing for most of the game, with a chant of “There’s only one Ryan Reynolds” near the end of the match—when Wrexham was 3-2 ahead and looked like completing a win against an opponent that was down to 10 men at that point.

Reynolds was seen walking across the field and to the locker room after the final whistle to speak to the players.

And he has a sequel to look forward to: Wrexham and Sheffield United will meet in a replay next month. Wrexham beat another second-tier team, Coventry, in the previous round.

The new Hollywood owners are using Wrexham for a behind-the-scenes TV series called Welcome To Wrexham, which is on Disney+.

Reynolds said he hopes to lead Wrexham into the Premier League.

“The plan is now, and has always been, the Premier League,” Reynolds said. “I can’t really put a date on that. But if it’s theoretically possible to go from fifth division to Premier League, why wouldn’t we do it?” AP

Dreamscape delivers anew with ‘Dirty Linen’

Many are happy to see the iconic Tessie Tomas back on the screen doing what she does best, that of being a top-notched thespian. Tomas’s last TV series was way back in 2018, a show called The Blood Sisters which was also produced by Dreamscape. For her grand TV comeback, Tomas is more than excited to play the pivotal role of the family matriarch Doña Cielo Fiero.

cool and not feel that she is carrying everything on her shoulders.

“I need to just have fun and be chill and always prepared in doing my job. We are a happy set and I am just fortunate, at this stage in my career, to be working with some of the most respected actors in our industry, many of whom I hold in high esteem,” she mused.

THE pilot week of the new drama series Dirty Linen drew so much interest among local televiewers and many continue to be glued to their TVs to find out what this new show is all about.

Produced by Deo Endrinal’s Dreamscape Entertainment, the same team that gave Filipinos almost seven years of Ang Probinsyano, considered the longest running soap opera in recent years, Dirty Linen boasts of a stellar cast that includes highly acclaimed veteran actors, like Tessie Tomas, Angel Aquino, Joel Torre, John Arcilla, and Janice de Belen pitting talents with the the younger generation of dependable actors like Janine Gutierrez, Zanjoe Marudo, JC Santos, Christian Bables, Seth Fedelin and Francine Diaz. The show has strong women characters and many are happy that Dreamscape went through a meticulous casting process to pick the better actors to breathe life into these characters.

“I was overjoyed when I received a phone call one morning with the offer to do Dirty Linen. I had just flown back to the Isle of Man from Manila at the time and the first thought that came to mind was how to tell my husband Roger that I would have to fly to the Philippines again to work on a new series. In my heart, I knew that all will be smooth and my dear husband will understand and allow me to work on this project. Of course he did, because he saw how excited I was,” enthused Tomas, who admitted that she missed acting so much and was quietly wishing that a good project would come along. Tomas describes her character as tough, taunting, tenacious and threatening. “Doña Cielo has many layers, that is why it is a very good character study for an actress. She is at the core a mother, someone so strong that she is able to camouflage her true feelings. That is quite difficult and the challenge is to make my character always believable, always real.”

The central character of this revenge-drama series is played by Janine Gutierrez, a third-generation actor from some of the most illustrious showbiz families. She feels elated to have been given such daunting acting assignment but feels that she needs to play it

Award-winning actors Angel Aquino and Janice de Belen are also entrusted with good roles that befit their respective talents.

Aquino plays the daughter of Tomas who seems so well put together on the outside but her core thirsts for amour, attention and appreciation. “When Deo offers you a project, that means he is giving his trust to you, and I am always grateful for every project and every role that he offers me through my manager. This story of Dirty Linen is very brave for Dreamscape to put it out there. I hope the audience will be glued to the new series and follow the characters we play, many of whom are so twisted and dysfunctional that make them so interesting.”

De Belen describes her character as very determined and dauntless. “The narrative of this series is so rich and riveting, the characters are complicated, the scenes are very intense. I am just happy to be part of Dirty Linen.” From the year 2020 alone, Dreamscape has already produced 10 new widely followed TV series, and the groundwork has also started with a new collaboration between ABSCBN and GMA, a series titled Unbreak My Heart, to be aired on GMA this year. n

‘Rick and Morty’ creator dropped by Hulu after abuse charges

LOS ANGELES—Hulu on Wednesday became the second television company to cut ties with Rick and Morty creator Justin Roiland after felony domestic abuse charges against him were revealed.

“We have ended our association with Justin Roiland,” 20th TV Animation and Hulu Originals said in a statement.

Roiland cocreated and provides voices for the streaming outlet’s animated show Solar Opposites, and is also a producer and actor on its animated Koala Man Both shows will continue without him.

On Tuesday, Cartoon Network’s Adult Swim

Network to strengthen anti-piracy efforts

LEADING broadcast company GMA Network announced recently that it has strengthened its anti-piracy capabilities by partnering with the Alliance for Creativity & Entertainment (ACE).

Widely regarded as the world’s largest and most effective anti-piracy coalition, ACE currently has over 50 global members, with GMA as its first member from the Philippines.

Attending a partnership signing event held on January 19 were GMA Network’s first vice president and head of international operations Joseph T. Francia, first vice president for legal affairs Atty. Lynn P. Delfin, and GMA New Media president and chief operating officer Dennis Augusto L. Caharian.

Joining them virtually as well were GMA Network’s executive vice president and chief financial officer Felipe S. Yalong and senior vice president for

programming, talent management, worldwide, and support group, and president of GMA Films Atty. Annette Gozon-Valdes.

division, home to the animated sci-fi sitcom Rick and Morty, made the same move, saying in a brief statement that they have ended their association with Roiland.

“Squanch Games,” a video game developer Roiland cofounded, said on Twitter later on Tuesday that he had resigned from the company.

Roiland, 42, was charged in Orange County, California in January of 2020 with two counts of felony domestic violence against a former girlfriend that he was living with. He has pleaded not guilty and is awaiting trial.

The charges went unreported until NBC News ran a story on them earlier this month.

Roiland’s attorney and publicist did not immediately reply to emails seeking comment.

Roiland provided the voices of the two title characters, a mad scientist and his grandson, in Rick and Morty He and Dan Harmon created the show that has run for six seasons and has been renewed for a seventh. Adult Swim has said the series will continue without him, but have not announced who the new vocal performers will be. AP

Association (MPA) and head of ACE, and Neil Gane, who represents ACE operations for the Asia Pacific region.

“Piracy continues to be one of the biggest problems in the entertainment industry globally,” said GMA Network CEO and chairman Atty. Felipe L. Gozon.

Representing ACE during the signing ceremony were Jan van Voorn, executive vice president and chief of global content protection for the Motion Picture

“The duplication and illegal distribution of movies, teleseryes, music, and other materials invalidate the hard work of those behind it. And as such, we are proud to join the Alliance for Creativity and Entertainment in its global campaign against digital piracy. GMA Network, through various initiatives on different platforms, is consistently taking the necessary steps to combat the illegal distribution of our shows movies, music, and other materials. And through our partnership with ACE, we look to further strengthen these initiatives to protect our content.”

“We are thrilled to welcome GMA Network to the Alliance for Creativity and Entertainment, and look forward to working with them to combat piracy and protect content creators—in the Philippines and around the world. ACE is building a strong global network of media companies and partners who are working together to eradicate the serious threat piracy poses to the creative economy,” shared van Voorn.

As part of its efforts to combat piracy, GMA Network has also launched its own anti-piracy advocacy campaign, dubbed “Stream Responsibly. Fight Piracy.” The campaign aims to encourage people, especially the younger generation, to be aware of what is right and wrong and help raise awareness of the value of creative works. It also aims to protect and educate the public about the potential harms of clicking pirated web sites and apps.

FROM left: GMA Network first vice president for legal affairs Atty. Lynn Delfin; ACE head for Asia Pacific Neil Gane; GMA Network first vice president and head of international operations Joseph Francia; GMA New Media president and chief operating officer Dennis Augusto Caharian; and executive vice president and chief of global content protection for the Motion Picture Association (MPA) and head of ACE Jan van Voorn (via Zoom).

New DBP President to broaden role in infrastructure financing

APROMINENT and seasoned banker has formally assumed the position as head of one of the largest government financial institutions in the country, vowing to strengthen and expand the Bank’s role in infrastructure financing to sustain the country’s growth momentum.

Michael O. de Jesus, the new president and chief executive officer of state-owned Development Bank of the Philippines (DBP), said that the bank will work closely with the national government in expanding the country’s infrastructure development program to raise the

Meralco readies additional 480 MW power supply

THE Manila Electric Company (Meralco) has started the Competitive Selection Process (CSP) for 480 megawatts (MW) of supply meant to address the increase in demand starting next year and the ongoing Malampaya gas supply restriction.

competitiveness of the local economy.

“As I take the helm of DBP, it is with high hope and confidence that this Bank will continue to boost and sustain our infrastructure push,” de Jesus said. “Together with our stakeholders, we will ensure that DBP fulfills its mandate of developmental financing especially infrastructure development, as this is a top priority of President Marcos Jr.”

De Jesus is a US-educated and trained banker and has extensive experience in corporate banking and finance. Prior to his appointment as the ninth DBP President and CEO, he was a senior executive of several toptier universal banks in the country.

DBP is the eighth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development. It has a network of 146 branches and branch-lite units, many of which are located in far-flung and underserved communities.

De Jesus said DBP would remain active in financing high-growth sectors such as telecommunications and public infrastructure, as well as those that promote food security, agriculture modernization, sustainable energy, and economic inclusivity.

He said DBP would also pursue digitalization to increase customer touchpoints and enhance client engagement, adding that “… the Bank will be more customer-centric to address the needs of its niche markets like local government units by leveraging on partnerships with established information technology (IT) providers and harnessing available and emerging IT applications…”

DBP is designated as the country's Infrastructure Bank since 2017.

UNIQLO, SM Foundation unveil four health centers in Bulacan

UNIQLO Philippines and SM Foundation, Inc. came together to upgrade four health centers in Bulacan – namely the Pulilan Rural Health Units (RHU) 1 and 2, as well as Baliwag RHU 1 and 3 last January 17, 2023.

The centers were improved to provide Bulakenos in the area easy access to health care services. These centers commonly treat skin rashes, urinary tract infections, upper respiratory infections, and other lifestyle illnesses such as hypertension and diabetes.

The facilities also provide family planning, maternal and child health care, and treatments to prevent or control acute respiratory infection, cardiovascular diseases, tuberculosis, diarrheal diseases, and AIDS/STD.

Baliwag RHU 3, meanwhile, has the capacity to perform childbirth delivery and minor surgeries.

They also springboard national health programs on leprosy, rabies, dengue prevention, immunization, and nutrition, making health services accessible to the community.

To respond to their specialized needs, the collaboration rebuilt the facilities and reconstructed its layout to aptly place a modern reception area, lounge, breastfeeding area, cold chain storage area, pharmacy, laboratory, treatment room, OPD consultation room, dental clinic, sputum collection area, and TB DOTS and Animal Bites Centers.

There are also nurses' rooms and doctors' consultation rooms to enable frontline health workers to provide medical care in a conducive environment.

The centers are fully air-conditioned and feature rooms equipped with new chairs and tables, cabinets, medicines, fixtures, medical tools, and assistive

devices such as wheelchairs.

Beyond this, SM Foundation and UNIQLO also provided Emergency GoKit+ to each of the centers to ensure they can readily respond to untoward incidents, such as accidents and calamities.

The four newly upgraded facilities are also fitted with Mobile Play Cabinets containing interactive toys and educational books. These cabinets are positioned in the lounges to welcome young patients in a child-friendly environment and give them a holistic healing experience.

During the event, representatives from SM Foundation and UNIQLO talked about the collaboration and their respective missions to uplift the lives of Filipinos, especially those in grassroots communities.

“Ang aming pilosopiya o gabay sa paggawa ng damit ay ang tinatawag na livewear. Ito po ang paniniwala na ang mga damit ay maaaring magbigay ng magandang

This came after the Department of Energy approved the Terms of Reference (TOR) for the two CSPs involving Meralco’s 300-MW peaking requirement from February 26, 2023 to July 25, 2023 and 180-MW baseload supply from February 26, 2023 to February 25, 2024.

Meralco said the timely approval of the

TOR would help the power distributor to ensure the availability of reliable, stable and least cost supply for its 7.6 million customers in the 2023 summer months.

The Meralco Third Party Bids and Awards Committee called on interested generation companies to participate in the CSP for two contacts.

Submission of Expression of Interest for either contract is until January 5, 2023 and the Pre-Bid Conference will be held on January 12, 2023.

The Bid Submission Deadline for the 180-MW contract capacity is on February1 , 2023 and February 2, 2023, respectively.

Sunshine Place brings back six-session Memoir Writing Workshop with Prof. Oscar Penaranda

SUNSHINE Place is bringing back its Memoir Writing Workshop, one of the most attended and well-loved workshops at the Senior Recreation Center!

The workshop is scheduled on Mondays from 10 am to 12 noon every Monday starting February 13, 2023. It will be a sixsession workshop to be conducted Prof. Oscar Peñaranda.

Prof. Peñaranda is an award-winning short-story writer, poet, essayist, playwright and educator. He is a recipient of Gawad Pambansang Alagad ni Balagtas Award, a prestigious award given by the Unyon ng mga Manunulat sa Pilipinas (UMPIL). He earned his B.A. in Literature & M. A. in Creative Writing from San Francisco State University. He helped found the San Francisco Chapter of the Filipino American Historical Society and was its first President.

This is the third Memoir Writing Workshop under Prof. Peñaranda.

Sunshine Place has published an anthology title Reflections in Light and Shadow that showcased the memoir pieces of participants to the prior workshops. The workshop has helped previous participants find their voice, tell their story and reach out to others through their essays and poems.

The class will cover the abstract/ concreteness of things through the senses, functions of language, parts of a word, sharing, assignments and consultations. At the end of the class the student writes on assigned topics, such as Coming of Age, Courtship, Characters in Your Life, to name a few. Workshop will be conducted via Zoom.

It is time for those who want to share their stories to learn how to find and channel their voice through this Online Memoir Writing Workshop.

For inquiries please contact T. (632) 8564144 / 856-4162 and M. (+63917) 515-5656 or E. online.sunshineplace@gmail.com.

BDO strengthens its commitment to renewable energy by providing access to capital funding requirements

buhay sa pang araw-araw. Layunin naming mapaganda ang buhay ng mga Pilipino. Kami po ay tumutulong sa mga komunidad sa pamamagitan ng aming mga produkto at proyekto. Kaya kami ay nagagalak, sa tulong ng SM Foundation at SM Supermalls, ngayong araw na ito na ibahagi sa inyo ang mga health centers para mapanatili ang ating kalusugan lalo na sa mga panahong ito,” UNIQLO Vice President for Marketing Georgette Jalasco said.

“For us, social good goes beyond charitable giving. For us, it represents dedication to supporting our communities so they can achieve sustainable growth and development. It means giving them the opportunity to take hold of their own destiny, allowing them to move towards progress, and empowering them to have safe, healthy and productive lives,” SM Foundation Executive Director for Health and Wellness Connie Angeles said.

BDO Unibank Inc. (BDO) remains committed to a sustainable future as it continues to provide access to capital and funding requirements to clients’ significant projects to achieve their goals while preserving the environment. As a key contributor to help accelerate the Philippine economy, the Bank continues to engage and lend eco-friendly companies to fuel longterm development and business success while protecting the planet.

Surallah Power Generation, Inc. produces renewable biomass energy through its biomass-fired power plant in South Cotabato. It started out as a producer of veterinary products and animal feeds. When the company discovered that the agricultural waste is best recycled into biomass energy to create a sustainable energy source, they recognized the need for a reliable banking partner who will provide financing as they venture into the power plant business. Surallah approached BDO given its reputation as a pioneer in sustainable finance in the country. The partnership has been successful, and Surallah is now constructing its second biomass-fired power plant in Palawan.

“BDO is very supportive in our endeavor. The Bank provides technical advice on how to

efficiently and effectively manage and operate the power plant. Our credit facilities, lease lines and term loans are readily available and tailor-fit to our corporate requirements.” said Atty. Rio Balaba, spokesperson of Surallah.

Surallah’s power plant benefits various stakeholders. Farmers, farmers’ cooperatives and millers earn extra income by selling their agricultural waste such as rice and corn husks, as raw material for the biomass-fired power plant. Moreover, the residents and entrepreneurs are able to use more affordable electricity.

Biomass is a high potential renewable energy source for the Philippines given that 40 percent of the population is engaged in agriculture and the country has an abundance of organic agricultural waste. BDO has the leading expertise for biomass energy financing, having funded the first biomass power plant in 2013 and with 15 biomass projects in its portfolio with an installed capacity of 164 watts.

BDO continues to offer financial support to green companies and renewable energy projects to provide livelihood, uplift the lives of Filipinos and contribute to the nation’s progress while transitioning to a low carbon, environmentally responsible, and socially inclusive economy.

EXECUTIVE Secretary Lucas Bersamin (left) swears in DBP president and chief executive officer Michael O. de Jesus during rites held on January 11, 2023, at the Office of the Press Secretary in Malacañan Palace, Manila.

PROF. Peñaranda with participants of the Memoir Writing Workshop Batches 1& 2

THE Mobile Play Cabinet houses interactive toys and educational books.

Japan to lag again on diversity if women shut out of BOJ race

By Erica Yokoyama & Keiko Ujikane

JAPANESE Prime Minister Fu -

mio Kishida risks reinforcing the view that the country is not serious about addressing gender inequality if women are shut out of the new leadership set to take the helm of the Bank of Japan this spring.

Janet Yellen and Christine Lagarde have demonstrated that being female is no longer an insurmountable barrier to landing the top job at the Federal Reserve and the European Central Bank. Yet not a single woman’s name is doing the rounds as a potential replacement for Haruhiko Kuroda as central bank governor in the world’s third-largest economy.

At best, one of the two deputy governor positions may be filled by a woman for the first time, based on surveyed economists’ expectations. Kishida has said he will make his choices known in February.

While a female deputy governor would be a welcome step in the right direction, analysts and researchers see it as a bare minimum to show that policymakers are trying to change attitudes on diversity in a country that lags its peers.

“If a woman isn’t appointed, there’s the risk that progress on gender equality is delayed for another five years,” said Rie Nishihara, chief Japan equity strategist at JPMorgan Chase & Co. and a former analyst at the BOJ.  Kishida, who ran into criticism over a photograph showing his apron-clad wife apparently waiting on him at the dinner table during a 2020 leadership campaign, has shown little enthusiasm for promoting women in the workplace since he took office in October 2021.

While his former boss, the late Shinzo Abe, espoused the United Nations goal of seeking to have women take 30 percent of supervisory positions in all fields by 2020, that campaign ran out of steam and the time frame transformed into a vaguer commitment to reach the goal this decade.

Kishida currently has only two women in his 20-strong cabinet. In parliament, the latest lower house steering committee has no women at all, a composition that prompted a tweet last week by Banri Kaieda, the deputy house speaker.

The sharp gender imbalance runs through corporate Japan, and its bureaucracy too. Only 9 percent of board members on the country’s 3,795 publicly listed companies are women, according to a Tokyo Shoko Research Ltd. report last year.

The BOJ ranked 142nd out of 185 central banks on gender equality last year, according to a report from the Official Monetary and Financial Institutions Forum.

Even compared with other nations in Asia, there are fewer female leaders in Japan’s central bank, according to Tetsuya Inoue, a senior researcher at Nomura Research Institute.

“Japan may appear odd even to its Asian peers, as other central banks have had female governors and many women in senior positions,” Inoue said.

Female front-runners

STILL , expectations have grown that the BOJ is poised to get its first female deputy governor.

In a Bloomberg survey earlier this month, 23 out of 36 economists named Yuri Okina, a former BOJ official and chair of the Japan Research Institute, as one of the front-runners in the choice for deputy.  BOJ Executive Director Tokiko

Shimizu is seen as another possible successor to current deputy governors Masazumi Wakatabe and Masayoshi Amamiya. Shimizu has consistently broken through glass ceilings at the central bank.

The two female front-runners have different experiences and skill sets, and may bring varying types of change to the BOJ, according to Nishihara.

Okina’s deep knowledge of the financial industry and the economy may facilitate consensus building within the top leadership in the decision-making process, Nishihara said.

Shimizu’s international background may promote communication with global markets, she added.

Nishihara doesn’t rule out the possibility of the governor position going to a woman, but economists largely agree that the post will likely be taken by a man, with the majority betting on either Amamiya or former deputy Hiroshi Nakaso to replace Kuroda.

Pipeline problem

THE BOJ has a tradition of alternating the governor post between former finance ministry and BOJ officials. Both institutions have a low proportion of women in managerial positions.

Women account for only 34 percent of MOF’s career track jobs, and 22 percent at the BOJ. Of the top posts within MOF, only 2.6 percent are occupied by women, while only one of the 15 director general positions at the central bank is held by a female.

The appointment of a female governor at the central bank would send a strong message on gender diversity beyond the financial sector and drive social change, experts say.

“Role models such as central bankers are part of the broader process” to promote gender equality at all levels in the labor market and society, said Paola Profeta, professor of public economics at Bocconi University in Italy.

Diversity is important because “women give a different perspective and a different agenda which may turn out to be efficient and beneficial,” she said.

Diversifying viewpoints and communication approaches has changed the way central banks operate, according to Megan Greene, global chief economist at Kroll, citing examples of women in action at the Fed and the Riksbank.

“Take Janet Yellen—her focus on labor markets was different from what we’d seen before—or Anna Breman, who is a trailblazer on climate issues,” Greene said. “We need to build a pipeline of talent and ultimately a cultural shift.”

Some prominent female Japanese officials agree. Tokyo Governor Yuriko Koike—the first woman to win that post—said in an interview with Bloomberg TV that Japan must accelerate its efforts to have more female decisionmakers in all institutions, including the central bank.

The BOJ has made some headway. Women now account for 49 percent of all workers at the central bank, when including those in non-career track positions. The proportion of female managers also topped 15 percent last year, more than double the level a decade ago.

But progress is slow and Japan is far from keeping up with the steps forward seen in other countries.

“The role of the central bank is to set appropriate monetary policy for the entire nation,” said former Goldman Sachs vice chair and author of the “Womenomics” report Kathy Matsui. “It is imperative that the leadership of the bank fully represents the overall population, not just half.” With assistance from Jana Randow and Isabel Reynolds/Bloomberg

Historic crash for memory chips threatens to wipe out earnings

By Sohee Kim, Ian King & Lin Zhu

And yet, less than a year after memory companies made such pronouncements, the $160 billion industry is suffering one of its worst routs ever. There’s a glut of the chips sitting in warehouses, customers are cutting orders, and product prices have plunged.

“The chip industry thought that suppliers were going to have better control,” said Avril Wu, senior research vice president at TrendForce. “This downturn has proved everybody was wrong.”

The unprecedented crisis isn’t just wiping out cash at industry leaders like SK Hynix Inc. and Micron Technology Inc., but also destabilizing their suppliers, denting Asian economies that rely on tech exports, and forcing the few remaining memory players to form alliances or even consider mergers.

It’s been a swift descent from the industry’s pandemic sales surge, which was fueled by shoppers outfitting home offices and snapping up computers, tablets and smartphones. Now consumers and businesses are holding off on big purchases as they cope with inflation and rising interest rates. Makers of those devices, the main buyers of memory chips, are suddenly stuck with stockpiles of components and have no need for more.

Already, Samsung Electronics Co. and its rivals are losing money on every chip they produce. Their collective operating losses are projected to hit a record $5 billion this year. Inventories—a critical indicator of demand for memory chips—have more than tripled to record levels, reaching three to four months’

worth of supply.

Samsung looks to be the only one that will escape relatively unscathed, thanks to its heft and diversified business, but even the South Korean giant’s semiconductor division is headed toward losses. Investors will get a sense of the damage this week when the company reports quarterly earnings.

“Chip equipment companies’ sales are plunging by around 30 percent to 50 percent. This is not a normal situation,” said Greg Roh, head of technology research at HMC Investment & Securities.

The industry is suffering from a unique combination of circumstances—a pandemic hangover, the war in Ukraine, historic inflation and supply-chain disruptions—that have made the slump much worse than a regular cyclical downturn.

Micron, the last remaining US memory chipmaker, has responded aggressively to plummeting demand. The company said late last month that it will cut its budget for new plants and equipment in addition to reducing output. The rate at which the industry rights itself will depend on how quickly the company’s counterparts make similar moves, Chief Executive Officer Sanjay Mehrotra said.

“We have to get through this cycle,” he said. “I believe the trend of cross-cycle growth and profitability is still in place.”

Over in South Korea, Hynix has also slashed investments and scaled back output. The company’s inventory glut is partly the result of its acquisition of Intel Corp.’s flash

memory business—a deal struck before the industry’s decline.

All eyes are now on memory-chip king Samsung, which has thus far said little about the industry’s nearterm prospects. The world’s largest maker of chips, smartphones and display panels is set to report fourth-quarter earnings on Tuesday, followed by a call during which analysts are likely to question its capacity management plans.

The Korean tech giant has typically continued to spend during downturns, hoping to exit them with superior production and higher profitability when demand picks up. This time around, the market has been betting the company will tighten its chip supply, lifting its stock price in recent weeks.

Chip-manufacturing equipment maker Lam Research Corp. said last week that it’s seeing an unprecedented reduction in orders as memory customers cut and postpone spending. Executives at the company, which counts Samsung, SK Hynix and Micron as its top customers, declined to predict when such actions might help the memory market rebound.

“We’ve seen extraordinary measures within the memory market,” Lam CEO Tim Archer said on a call with investors. “It’s at levels that we haven’t seen in 25 years.”

It’s always been difficult for memory makers to handle spikes and troughs in demand. Bringing new factories online takes years and billions of dollars, so it’s hard to get the timing right.

The risks have prompted companies in the industry to get more conservative. They’re more focused

on profitability than trying to grow quickly and gain market share.

That’s especially true for socalled DRAM chips, where the three dominant suppliers—Samsung, Hynix and Micron—are reducing supply, said Shin Jinho, co-CEO of Midas International Asset Management. The other major part of the memory market, NAND chips, is more fragmented and is set to go through a more severe battle as the many contenders fight for survival, he said.

“The NAND market is experiencing fierce competition and the recovery will follow one quarter after the DRAM market recovery,” Shin said. “If the situation gets longer, eventually, we are going to see consolidation in the NAND market.”

The memory industry had mergers during previous downturns, and this one may be no exception. NAND makers Western Digital Corp. and Kioxia Holdings Corp. are progressing in their deal talks, people familiar with the matter said this month. Still, the companies already manufacture jointly and thus a merger won’t necessarily lead to reduced output.

The longer-term question is when customers’ demand will bounce back. China’s recent exit from Covid-related restrictions could be one catalyst to help the industry, as gadget makers will be able to bring manufacturing plants back to normal rhythm, said HMC Investment’s Roh.

“There will be pent-up demand for gadgets as well,” he said. “Our view is that memory will recover in the second half.” Bloomberg News

South Korea’s economic contraction strengthens case for rate hike end

By Sam Kim

SOUTH KOREA’S economy shrank for the first time since the beginning of the pandemic last quarter, an outcome that supports the view the central bank is likely done with interest rate hikes for now.

Gross domestic product contracted 0.4 percent from the previous three months as exports fell and consumer spending edged down, the Bank of Korea said Thursday.

The result matched a Bloomberg survey of economists. From a year earlier, the economy still expanded by 1.4 percent.

Bank of Korea Governor Rhee Chang-yong had flagged the possibility of a contraction earlier this month when he delivered a quarter percentage-point interest rate increase. Recent weakness in economic activity prompted markets to interpret the hike as the final move in the current tightening cycle.

Like the Bank of Canada, any lid on interest rates is likely to be conditional on inflation continuing to cool, though Rhee hasn’t gone as far as his counterparts in Canada in stating that point.

For 2022 as a whole, the economy expanded 2.6 percent from a year earlier, in line with an earlier BOK projection. The fourth-quarter setback for the economy

is an indication of the difficulty of taming inflation with higher borrowing costs while also trying to secure a soft landing amid a global slowdown.

“Rates, oil prices and inflation have all contributed to hurt consumption,” said Chang Jae-chul, chief economist at KB Kookmin Bank. “It’s a very difficult situation.”

Still, the temptation to resort to an extra budget to shore up the economy should be treated with much caution, Chang said.

O fficials and economists largely expect the economy to rebound without the need for a round of extra spending from President Yoon Suk-yeol’s government. Going forward, the strength of China’s economic recovery will likely be a key factor for exports, while developments in the property market number among the key areas of concern at home.

Finance Minister Choo Kyung-ho acknowledged Thursday that the economy faces a “very difficult period” in the first half of the year.

Korea serves as an early indicator of the state of the global economy as it depends heavily on international trade. The nation’s performance is closely bound up with that of major economies including China, the US and Japan.

Korea is also vulnerable to fluctuations in global commodity prices as it relies heavily

on imports of oil and food. As rates climbed worldwide, companies reined in investment, reducing demand for Korean products such as semiconductors, steel and displays.

An economic slowdown in China particularly hurt Korean exports last year. Policymakers are also concerned about the potential impact of growing US curbs on China over semiconductor exports, given Korea has large chipmaking facilities in the world’s second-largest economy.

“Exports and their impact on Korea’s growth are top of mind for policymakers,”

Duncan Wrigley, an economist at Pantheon Macroeconomics, said after early trade data showed an ongoing decline in overseas shipments last week.

“Korean exports will likely remain on a downward trend given the poor economic prospects in its major markets.”

While trade is in a downturn, consumption is weakening in Korea, especially after an October crowd-crush tragedy that killed more than 150 people in Seoul.

Household spending had been a key driver of economic growth for most of last year following the relaxation of virus regulations.

For this year, Korea’s economy is expected to grow slightly less than 1.7 percent, according to the central bank. Inflation is seen reaching around 3.6 percent, it estimates.

As the outlook darkens, the BOK is winding down its 18-month tightening cycle. The central bank’s hikes included two half-point moves last year as it sought to keep pace with the Federal Reserve’s aggressive tightening. The consensus among surveyed economists is for no more rate hikes this year.

Higher rates have strained Korea’s credit markets and a rare default by the local developer of Legoland Korea sent the corporate bond market tumbling last year. Deteriorating sentiment in property markets as house prices fall is another concern for policymakers. Consumption is likely to worsen if housing prices slide further and make people feel they are becoming poorer given the share homes have in their wealth, said Ahn Dong-hyun, a professor of economics at Seoul National University. That means the government will have to focus on ensuring a gradual slowdown for the real estate market this year.

“The most important thing for the government is to avoid a hard-landing,” Ahn said. Measures that would ease debt burdens for households would also help, he said.

The economy is more likely to return to growth in the current quarter than shrink as China regains momentum following the end of its Covid lockdowns, according to Rhee. Bloomberg News

THIS time was supposed to be different. The memory-chip sector, famous for its boomand-bust cycles, had changed its ways. A combination of more disciplined management and new markets for its products—including 5G technology and cloud services—would ensure that companies delivered more predictable earnings.

Baisa sustains run, Divinagracia prevails in Bacolod netfest

BRICE VINCENT BAISA

crushed the opposition with his brand of play to pose another twin victory as local ace Ma. Hannah Divinagracia topped the girls’ field in the Palawan Pawnshop-Palawan Express

Pera Padala (PPS-PEPP) National Tennis Juniors Championships at the Helvetia and Panaad courts in Bacolod City last Sunday.

B aisa, ranked No. 8 in 16-under play, trounced second seed Kurt Barrera, 5-3, 4-2, in the quarterfinals, routed No. 5 Kirby Ramacho, 6-1, 6-0, in the semifinals and upset top seed Ariel Cabaral, 6-2, 7-6(2), to clinch the crown in the Group 2 tournament presented by Dunlop.

The rising Puerto Princesa City star then held off Cabaral, 7-5, 3-6, 10-4, in the 18-under semifinals and repeated over Barrera, 6-2, 6-2, to match his two-title feat in the Iloilo City and Roxas City stops of the country’s longest-talent search put up by Palawan Pawnshop president and CEO Bobby Castro.

The top-ranked Divinagracia, on the other hand, stamped her class in 16-under division, foiling Jana Diaz, 6-2, 6-4, in the finals then as the No. 2 seed, rapped No. 1 Jufe-Ann Cocoy, 6-2, 6-3, in the 18-under title clash to share MVP honors with Baisa, who is expected to take the top spot in the boys’ top two age brackets when the new United Tennis Philippines (UTR) ranking is released next week.

The other winners in the tournament sponsored by Mayor Albee Benitez were Iloilo’s Francisco De Juan III, Clemente Barrera III from Tayasan, Negros Oriental, La Carlota’s Kathlyn Bugna, Ormoc’s Kenzo Brodeth and Queen Villa, also from La Carlota.

De Juan hacked out a tough 5-4(4), 4-5(5), 11-9 decision over Clemente Barrera to match his title feat in the 10-under class in Roxas City; Barrera got back at De Juan, 6-4, 6-2, in the 12-under finals; No. 2 Bugna toppled top seed Alexa Cruspero, 6-3, 6-4, in the girls’ 12-under championship; Brodeth repulsed

Andrian Rodriguez, 2-6, 6-1, 10-8, to snare the boys’ 14-under trophy; and Villa blasted Cruspero, 6-1, 6-2, in the girls’ 14-under finals of the event backed by ProtekTODO, PalawanPay, Unified Tennis Philippines and UTR.

DJOKOVIC RULES DOWN UNDER

MELBOURNE, Australia— Novak

Djokovic  climbed into the Rod Laver Arena stands to celebrate his 10th Australian Open championship and record-tying 22nd Grand Slam title Sunday and, after jumping and pumping his fists with his team, he collapsed onto his back, crying.

W hen he returned to the playing surface, Djokovic sat on his sideline bench, buried his face in a white towel and sobbed some more.

Th is trip to Australia was far more successful than that of a year ago—when he was deported because he was not vaccinated against Covid-19—although difficult in its own ways: a bad hamstring; some off-court tumult involving his father. Yet Djokovic accomplished all he could have possibly wanted in his return: He resumed his winning ways at Melbourne Park and made it back to the top of tennis, declaring: “This

Bachmann in PSA Forum

PHILIPPINE Sports Commission (PSC)

Chairman Richard Bachmann graces the Philippine Sportswriters Association (PSA) Forum for the first time on Tuesday.

B achmann will discuss the PSC’s plans and programs under his administration in the session that starts at 10 a.m. at the ground floor of the Rizal Memorial Sports Complex administration building.

B efore Bachmann takes centerstage, Philippine Obstacle Sports Federation president Atty. Al Agra opens the weekly forum as he talks about the association’s event in March, its recent elections and a proposed Masters Games for seniors.

T he special session is still presented by San Miguel Corp., Milo, PSC, Philippine Olympic Committee and Philippine Amusement and Gaming Corp.

P SA president Rey Lachica, sports editor of Tempo, enjoins members to attend the forum that’s livestreamed via the PSA Facebook page  fb. com/PhilippineSportswritersAssociation and aired on a delayed basis over Radyo Pilipinas 2, which also shares it on its official Facebook page.

Paris 2024 Games a hundred years of PHL Olympic campaign–Tolentino

PHILIPPINE Olympic Committee (POC) president Rep. Abraham “Bambol” Tolentino has remained in France to iron out in earnest the country’s campaign for next year’s Olympics. The reason for his enthusiasm and passion? The Philippines marks 100 years of participation in the Olympics in 2024 and, even more significantly, it will again be in Paris.

“It’s a century of Filipino athletes’ campaign in the Olympics,” said Tolentino, who earlier this week formally sealed arrangements for a pre-Olympic training venue at the Academos Sports Center in Moselle in the City of Metz.

probably is the, I would say, biggest victory of my life.”

Only briefly challenged in the final, Djokovic was simply better at the most crucial moments and beat Stefanos Tsitsipas, 6-3, 7-6 (4), 7-6 (5).

A s a bonus, Djokovic will vault from No. 5 to No. 1 in the Association of Tennis Professionals (ATP) rankings, a spot he already has held for more weeks than any other man.

“ This has been one of the most challenging tournaments I’ve ever played in my life, considering the circumstances. Not playing last year; coming back this year,” Djokovic said, wearing a zip-up white jacket with a “22” on his chest. “And I want to thank all the people that made me feel welcome, made me feel comfortable, to be in Melbourne, to be in Australia.”

The 35-year-old from Serbia stretched his unbeaten streak in Melbourne to 28 matches, the longest run there in the Open era, which dates to 1968. He adds trophy No. 10 to the seven from Wimbledon, three from the US Open—where he also was absent last year because of no coronavirus shots—and two from the French Open, to match rival Rafael Nadal for the most by a man.

O nly two women—Margaret Court, with 24, and Serena Williams, with 23—are ahead of him. Th is was also the 93rd ATP tourlevel title for Djokovic, breaking a tie with Nadal for the fourth-most.

I would like to thank you for pushing our sport so far,” Tsitsipas told Djokovic.

“ He is the greatest,” Tsitsipas said,

“that has ever held a tennis racket.”

D jokovic was participating in his 33rd major final, Tsitsipas in his second—and the 24-year-old from Greece also lost the other, at the 2021 French Open, to Djokovic.

O n a cool evening under a cloudfilled sky, and with a soundtrack of chants from supporters of both men prompting repeated pleas for quiet from the chair umpire, Djokovic was superior throughout, especially so in the two tiebreakers.

He took a 4-1 lead in the first, then reeled off the last three points. He led 5-0 in the closing tiebreaker and, when it finished, he pointed to his temple before screaming, a prelude to all of the tears.

Very emotional for us. Very emotional for him,” said Djokovic’s coach, Goran Ivanisevic. “It’s a great achievement. It was a really tough three weeks for him. He managed to overcome everything.”

D jokovic acknowledged all of the issues created strain for him.

It took an enormous amount of mental and emotional energy,” Djokovic said, “to really keep it tight, keep my focus.”

Keep in mind: It’s not as though Tsitsipas played all that poorly, other than a rash of early miscues that seemed to be more a product of tension than anything. It’s that Djokovic was too unyielding. Too accurate with his strokes, making merely 22 unforced errors, 20 fewer than his foe. Too speedy and flexible on the run (other than when, moving to his left, Djokovic took a tumble). AP

Chua, Aranas vie in 9-ball worlds

SOUTHEAST Asian Games gold medalist Johann

Chua and James Aranas flew to Poland on Monday to see action in the World 9-Ball Pool Championship that starts Wednesday at the Targi Kielce Exhibition and Congress Centre in Kielce.

C hua, 30, told BusinessMirror that they will be up against 128   players from all over the world in Poland.

It’s definitely tough tournament. We’ll be arriving there Tuesday so we only have one day to prepare,” said Chua, of Bacolod City. “All the best players are there, but I’m so motivated to win.”

The US’s Shane Van Boening will defend his

crown against tough opponents that include world No. 7 Wiktor Zielinski, No. 15 Konrad Juszczyszyn and No. 16 Mieszko Fortunski.

F ive Filipinos won the tournament. They are Efren “Bata” Reyes in 1999, Alex Pagulayan in 2004, Ronnie Alcano in 2006, Francisco “Django” Bustamante in 2010 and US Open champion Carlo Biado in 2017.

T he champion will bag $60,000, runner-up $30,000 and the two losing semifinalists $17,500 each. The losing quarterfinalists will receive $10,000 each and those booted out from the last 16 $6,000 each. Josef Ramos

“ Hidilyn Diaz [Naranjo] won for the country its first Olympic gold medal in Tokyo, and that was historic,” Tolentino said. “But how about a more historic centennial Olympic campaign?”

The Philippines debuted in the Olympics in Paris 1924 with David Nepomuceno as its sole representative in the 100 and 200 meters of athletics.

The country participated in 21 more Olympics after that and after Tokyo Olympics, has collected 14 medals—one gold, five silver and eight bronze medals.

Tolentino signed last Thursday with officials of the City of Metz led by La Moselle President Patrick Weiten the memorandum of understanding in a ceremony covered by the French media.

France3, one of France Television Group’s regional channels, RL or the Le Républicain Lorrain and Letz Go Metz were among the French media who diligently covered the ceremony. A v ideo clip of Diaz-Naranjo’s gold medal campaign in Tokyo as well as those of boxing silver medalists Nesthy Petecio and Carlo Paalam and bronze medalist Eumir Felix Marcial were featured on French television.

The Philippines was the first to sign a training agreement with Moselle, one of the hundreds of Pre-Games Training Centers for Paris 2024 that are certified by both the French organizers and the International Olympic Committee.

T he pre-Olympic training program, which covers two months before the July 26 to August 11, is also the first in POC history. We have the capacity to welcome, support and offer sports equipment commensurate with the Olympic challenges,” Weiten told the same media interview. “Every time a Filipino athlete performs on an Olympic Games site [as long as he is not in competition with a Frenchman], he will have the support of Moselle.”

Strong Group vs Syria in Dubai

THE Strong Group shoots for its third straight win when it faces Al Wahda of Syria early Tuesday in the 32nd Dubai International Basketball Championship at the Al-Nasr Club Hall in Dubai, the United Arab Emirates.

T he match is set at 1 a.m. with the Jacob Lao-owned team hoping for a sequel to its easy 93-76 win over Al Nasr of Libya Sunday in Group B eliminations.

The Syrians have yet to win in two games but Strong Group head coach Charles Tiu refused to take them lightly. For one, the Syrian club tapped a new import in the hope of turning its fortune around.

They lost to Al Nasr of Libya but they will have a new and big import for our game,” Tiu said. “So they’re a different team right now.”

Tiu, however, was delighted at how his locals—especially BJ Andrade,

Kevin Quiambao and Justine Baltazar—responded to his challenge after their so-so performances in the team’s scary 91-87 win over the national team of the host country Saturday. Good win for us, we prepared better and scouted our opponents well. We got our players to follow the game plan and were happy with our win,” Tiu said. “BJ gave us a big lift hitting the first three triples of the game, and I thought Kevin and Justine were huge for us.”

B esides relying on imports Renaldo Balkman and Shabazz Muhammad and Filipino-American Sedrick Barefield, Tiu is hoping his locals will again step up against the Syrians, saying the team, also supported by Mighty Sports and Acrocity, needs a good game in time for their crucial showdown with Dynamo of Lebanon. The Lebanese squad is also undefeated in two games.

THE Lakers’ LeBron James misses a shot against the Celtics’ Jayson Tatum late in the fourth quarter of their game Saturday. AP

NBA referees union admits foul on James in controversial play

THE National Basketball Referees Association said Sunday that LeBron James was fouled on the last play of regulation in the Los Angeles Lakers’ game against the Boston Celtics. The National Basketball Association (NBA) office also confirmed for the second time that a foul should have been called.

everyone else, referees make

the union wrote in its tweet.  “We made one at the end of last night’s game and

that is gut-wrenching for us. This play will weigh heavily and cause sleepless nights as we strive to be the best referees we can be.”

James got the ball about 35 feet from the basket, with 4.1 seconds remaining in what was a tied game at Boston on Saturday night. He split two defenders as he got into the lane, then went airborne and got past Jayson Tatum as well.

James laid the ball up with his left hand,  Tatum clearly made contact with

James’ shooting arm,  no foul was called and the game went to overtime. Had a foul been called, James would have gone to the freethrow line with an opportunity to put the Lakers ahead with 1.8 seconds remaining. AP

PHILIPPINE Olympic Committee (POC) president Rep. Abraham “Bambol” Tolentino is being interviewed by the French media at the La Moselle in the City of Metz.

BRICE VINCENT BAISA (second from left) and Ma. Hannah Divinagracia (third from left) pose with their trophies with Fr. Joji Ansula (left) and fellow Negros Occidental Tennis Association officer Nark Nicavera.

Department of Transportation@124

One vision and mission to build better more for the Filipino people

THE Department of Transportation (DOTr) was one of the government agencies established under the Malolos Constitution on January 21, 1899.

It is the primary policy, planning, programming, coordinating, implementing and administrative entity of the executive branch of government on the promotion, development and regulation of a dependable and coordinated network of transportation systems, as well as in the fast, safe, efficient and reliable transportation services.

The DOTr plays a crucial role in accelerating the country’s economic development. It provides the backbone for growth and enhances the country’s competitive edge by providing effective and efficient transportation infrastructure systems that narrow the geographical and physical divide, connecting the country, its islands and its people to the rest of the world.

Full speed ahead

AS IT celebrates its 124th founding anniversary, DOTr has committed to go full speed ahead to provide safe, accessible, comfortable, affordable transportation system for the Filipino people.

Since its dawn up to now, the DOTr has been indefatigable in its thrust towards delivering a fast, safe, affordable, comfortable and accessible transportation system across the country through the realization of the much-needed transport infrastructure projects, programs and initiatives,”

DOTr said in a statement posted on its website to celebrate the occasion.

“ With its one vision and mission as its wellspring, the department, under the captaincy of Secretary Jaime Bautista, is strongly driven to BUILD, BETTER MORE for the overall welfare, benefit and comfort of the riding public,” the statement continued.

Under the management of the DOTr are four sectors that cover the various projects being handled by the department. These sectors are Road Transport and Infrastructure; Railways Sector; Aviation and Airport Sector and the Maritime Sector.

EDSA Busway

ONE of the projects under Road Transport and Infrastructure Sector is the EDSA Busway. Bautista has vowed to continue improving the EDSA Busway operations to better serve the riding public. He added that improving the operations along the busiest thoroughfares in Metro Manila must conform to international standards.

The DOTr will continue to improve the services and infrastructure of the EDSA Busway. The EDSA Busway must conform to international standards. There’s a lot to do here,” Bautista said during the opening of the Tramo Station of the EDSA Busway last December 28, 2022.

The Tramo Station is the fourth EDSA Busway station opened since July 1, 2022. In August, two busway stations were opened – the Roxas Boulevard and Taft Avenue Bus -

way stations.

In November 2022, the DOTr opened the One Ayala Terminal that will serve as the Ayala Station for the EDSA Busway. The bus station is part of a transport hub, offering three terminals that serve South-bound buses, PUVs, and modern jeepneys that can accommodate over 300,000 passengers daily.

Three bays

EACH of the three bays of the One Ayala EDSA Busway station can simultaneously accommodate nine buses on queue, totaling 27 buses. The terminal facility is also equipped with restrooms, ample queuing area, seats for PWDs, senior citizens and pregnant women and bike racks.

Passengers who are northbound will have access to the station through the McKinley-Ayala Footbridge which is directly connected to the 2nd Floor of One Ayala Avenue. Bautista cited the increase in the volume of passengers patronizing the EDSA Busway as one of the reasons in improving its efficiency.

“As more passengers are being catered by the busway system, we need to improve its efficiency,” he said.

Dedicated median lane

A JOINT undertaking of the DOTr, Metro Manila Development Authority (MMDA) and Department of Public Works and Highways (DPWH), the EDSA Busway features the use of a dedicated median lane for buses with stations built at the median island, allowing for more efficient travel by avoiding conflict with connecting streets, driveways, commercial centers and curbside drop-off points.

The busway system has 17 median stations, four temporary curbside stations and an integrated terminal exchange (ITX).

The EDSA Busway system has reduced travel time from the Mall of Asia in Pasay City to Monumento in Caloocan from two to three hours down to only one hour and 30 minutes.

A s of December 2022, the EDSA Busway Project has been catering to an average of 389,579 passengers daily.

Other active projects under Road Transport and Infrastructure are Service

Contracting Program; Active Transportation; PUV Modernization; EDSA Greenways; Cebu Bus Rapid Transit; Davao High Priority Bus System; Integrated Terminals; Automated Fare Collection; Improvement of Service of the Land Transportation Office and the Land Transportation Franchising and Regulatory Board; Intensified I-ACT Operations and Expressway Projects.

Railways Sector ONE of the projects under the Railways Sector is the Metro Manila Subway Project. Tunneling and excavation work started on January 9, 2023 for the Metro Manila Subway Project (MMPS) and, according to Bautista, signified the DOTr’s

work signifies the point of no return.

We are going full speed ahead to complete the country’s first subway,” Bautista said during the launching of the MMSP’s tunnel boring machine (TBM). He was joined by President Ferdinand Romualdez Marcos, Jr. during the launch in Valenzuela City.

With this, actual construction for the MMSP will start as it will set in motion the operation and initiate its movement for excavation.

Bautista stressed the value of interconnectivity of the country’s

various transport infrastructure and said that there is an “urgent need” to provide a railway station at the Ninoy Aquino International Airport (NAIA) especially during the holiday rush.

“During the recent holiday rush when I inspected NAIA Terminal 3, I discovered the urgent need to provide a railway station as one of the multimodal land-based transport options for arriving passengers,” he explained.

Seven civil work contracts

THE MMSP’s Contract Package 101

(CP 101) is part of the seven civil work contracts of the project, and involves the construction of three underground stations in Quezon City and an additional semi-underground station in the northern-most part of the Valenzuela City depot.

Six TBM units will be utilized for CP 1010 to complete the excavation for the tunnels and will use a topdown construction method for the construction of the stations.

A round 1.2 million cubic meters of soil using cut-cover and the TBMs

are to be excavated for the partial operability (PO) section of the project or the equivalent of 500 Olympic size swimming pools. For the tunnels alone, the excavation will be around 711,000 cubic meters or the equivalent of 285 Olympic size swimming pools. The entire alignment will have a total excavated soil of about 7.42 million cubic meters or the equivalent of 2,500 Olympic size swimming pools. Billed as the Philippines’ “Crown Jewel” of mass transit system, the Continued on C2

Department of Transportation@124

CELEBRATING 124 YEARS OF SERVICE

MMSP will cut across eight cities that will stretch from Valenzuela City to FTI-Bicutan in Parañaque City with a spur line to NAIA Terminal 3 in Pasay City.

Other projects under the Railway Sector are the LRT-1 Cavite Extension, re-opening of LRT-1 Roosevelt Station; LRT-2 Libreng Sakay for Students Program; MRT Line 7; MRT Line 3; MRT Line 4; MRT and PNR Oplan Balik Eskwela; common station; North South Commuter Railway System – Malolos to Tutuban (N1), Malolos to Clark (N2)

and Manila to Calamba (N1); PNR South Long Haul; Mindanao Railway and Subic-Clark Railway and secured funding for the feasibility studies for additional railway projects in Bataan, Cagayan and Panay.

Clark International Airport

UNDER the Aviation and Airport Sector is the Clark International Airport. According to President Marcos, the opening of the New Terminal Building of the Clark International Airport in Clark Freeport in Pampanga last December 2022 is a strong signal that the

Philippines is open for business.

Marcos pointed out that the Philippines is an ideal place to invest and the government is ready to go the extra mile to nurture strong partnerships with potential investors wanting to put their money in the country.

“ The simple message that underlay all that we did was that the Philippines is here, we are a good place to invest, we are probably the most vibrant economy in Southeast Asia and we understand the requirements and the needs of our potential investors, and we will do everything

so that that partnership becomes to the advantage of both the private sector, the public sector, to the people.” Marcos said during the opening.

And this facility is essentially a very strong signal that yes, indeed, we are open for business. We just opened a new terminal. It is state-ofthe-art, and this is one of the things that we will continue to do in the future to bring you all to come and be partners with the Philippines to help the lives of our people to help the Philippine economy and para pagandahin ang buhay ng Pilipino, para pagandahin naman natin ang

Pilipinas,” the President added.

The opening of the 110,000 square-meter new terminal building is part of an effort to decongest the Ninoy Aquino International Airport (NAIA).

Equipped with state-of-theart facilities for safer and efficient travel, the facility was built to accommodate around eight million passengers every year, an improvement from the previous 4.2 million passengers a year.

It is also projected to create more jobs, promote vibrant tourism and advance socioeconomic activi-

ties in Central Luzon. Other projects under the Aviation and Airport Sector are the New Dumaguete Airport; New Manila (Bulacan) International Airport; upgrading and expansion of airports in Bohol-Panglao, Laguindingan, Bicol, Iloilo, Puerto Princesa, Davao, Bacolod, Kalibo, and Siargao under PPP.; turnover of the management of six airports to BARMM; NAIA Development PPP.

Modernization of Coast Guard

UNDER the Maritime Sector, Bautista

Continued on C4

Buses waiting for passengers at the One Ayala EDSA Busway Station.

The Roxas Boulevard EDSA Busway Station.

DOTr officials led by Secretary Jaime Bautista open the Tramo Busway Station.

President Ferdinand Romualdez Marcos, Jr. was present at the start of the tunneling and excavation work of the Metro Manila Subway Project in Valenzuela City.

Clark International Airport

President Ferdinand Marcosm Jr. and First Lady Liza Araneta Marcos grace the opening of the New Terminal Building of the Clark International Airport.

DRIVE HOME A BRAND-NEW CROSSOVER WITH THE CHERY HOP IN A TIGGO PROMO

Cash

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discounts as much as P130k, DPs as low as P28,888, monthly payments as low as P7,796

Department of Transportation@124

DOTr to conduct dry run on improved Active Transport Project along EDSA

THE Department of Transportation (DOTr) is set to conduct a dry run of the improved Active Transport Project along EDSA as part of its Active Transport Infrastructure Improvement Program after getting the green light from the Metropolitan Manila Development Authority (MMDA) last Tuesday, 24 January 2023.

I n an alignment meeting held at MMDA’s Makati Office, the MMDA, headed by General Manager Ret. P/Col. Procopio G. Lipana and Assistant General Manager for Operations Atty.

Victor Pablo C. Trinidad, unanimously approved DOTr’s request to carry out the dry run, which will include road configuration improvements, and widening of

pedestrian walkways and protected bi-directional bike lanes.

DOTr Undersecretary for Road Transport and Infrastructure Mark Steven C. Pastor and Assistant Secretary for Planning and Project Development Leonel Cray

P. De Velez led the presentation of the plans and its corresponding multi-sectoral benefits during the meeting, which was also attended

CELEBRATING 124 YEARS OF SERVICE...

vowed the continued comprehensive modernization of the assets and manpower of the Philippine Coast Guard. He said the DOTr will push for the PCG’s acquisition of assets and equipment as well as the inclusion of its officers in worldclass educational programs.

The Transportation Department will always support the continued modernization of the Coast Guard. We will continue to help the Coast Guard in pursuing their comprehensive modernization program,” Bautista said during the annual PCG New Year’s Call.

Given the inherently international nature of shipping and maritime transportation, attendance in worldclass educational programs from these prestigious institutions should not be taken for granted,” he added.

Apart from modern assets and well-trained personnel, Bautista called on the PCG’s role in the collective goal of providing accessible, affordable and safe transportation for all Filipinos.

Other projects under the Maritime Sector include Pasig River Ferry System; New Cebu International Port Project; Protection of Philippine territorial integrity and maritime entitlements; island connectiv-

by MMDA Traffic Engineering Center Director Neomie T. Recio and Physical Planning and Spatial Development Service Director

chael M. Gison.

Mi-

The project forms part of the DOTr and the Department of Public Works and Highways’ joint partnership aimed at enhancing the overall active transport infrastructure along EDSA – particularly in Santolan, Ortigas, and Shaw. Aside from improving the safety and comfort of pedestrians and bike lane users, the project bids to encourage private vehicle users to use non-motorized modes of transport, thereby improving traffic flow.

The DOTr is committed to executing the strategies set out in the Philippine Development Plan 2023-2028 which was approved by President Ferdinand Marcos, Jr. last December 16, 2022. In the PDP 2023-2028, pedestrians and cyclists will be accorded the highest priority in the hierarchy of road users.

The National Government firmly believes that the only way traffic congestion will be solved along EDSA and all other metropolitan areas in the country is through BUILDING BETTER AND MORE active transport and mass transportation systems.

ity through construction of various ports; adoption of compliance with international maritime instruments; enactment of maritime laws; updating a 10-year Maritime Industry Development Plan; Maintaining the Philippine Merchant Marine Academy (PMMA) as a premiere maritime school of the country; strengthening maritime transport security; lowering the logistics cost and enhancing cold logistics chain and development of a comprehensive port master plan. The DOTr remains relentless and unstoppable to fast-track the completion of transportation infrastructure projects and programs. As we march towards one vision and mission to build better more for the Filipino people,” the DOTr anniversary statement said. APD

from C1 Officers from the South Korean contractor POSCO Engineering and Construction Company accompanied Transportation Secretary

THE Department of Transportation will finish the North-South Commuter Railway Extension Project as scheduled. This was the assurance made by Transportation Secretary Jaime Bautista during his inspection of the Clark Depot at Mabalacat, Pampanga last January 23, 2023.

Jaime Bautista

National Railways (PNR). Accompanying Secretary Bautista at the inspection were DOTr Undersecretary for Legal Affairs Reinier Yebra, Undersecretary for Railways Cesar

Chavez, Assistant Secretary

Railways Jorjette Aquino, PNR General Manager Jeremy Regino and project contractors.

A snapshot of the plans for the Active Transport Infrastructure Improvement Program

As RE buildup goes on, govt, energy firms scramble to fill serious power gaps in ‘23

By Lenie Lectura

INDUSTRY stakeholders paint a bleak and very challenging power sector this year, but everyone is putting in place measures to mitigate the impact of tight power supply and thin power reserve  in Luzon this summer.

The Institute for Climate and Sustainable Cities (ICSC) said the possibility of rotating brownouts could happen in the second quarter of this year because of two reasons that were not included in earlier projections of the grid operator.

“The power outlook for 2023 is bleak. We at ICSC do not foresee much improvement in the supply from both coal and fossil gas power plants,” ICSC senior policy advisor Pete Maniego Jr. asserted.

He cited the weekly demand, supply, and operating margin 2023 report of the National Grid Corporation of the Philippines (NGCP), in which it cited sufficient operating reserves in the second quarter, specifically from April 24 to May 28, 2023. However, the ICSC said that the assumptions of these projected margins are very optimistic and might not reflect the actual operation of the grid.

He sees yellow and red alerts, with possible rotating blackouts, becoming possible again in the second quarter of this year “if these two considerations are not mitigated.”

He was referring to the forced outages of coal-fired power plants and the continued shutdown of the Ilijan gas plant.

Based on the operating margin projections, the ICSC said around 8,300 megawatts (MW) should be available for coal-fired power plants. However, the total installed coal capacity in Luzon grid is less than that.

“This means that new capacities should be available during this second quarter of 2023 to meet the 8,300 MW available capacity projected in the operational margin. Additionally, many existing coalfired power plants have experienced unplanned outages and exceeded their ERC (Energy Regulatory Commission)-mandated allowable outage limits in 2022.

“If the same unplanned outages occur during the second quarter of 2023, then this would significantly deplete the available capacity during this period,” the group warned.

Meanwhile, the shutdown of Ilijan power facility since June last year has led to a capacity deficit of 1277 MW in the Luzon grid, which has increased the frequency of red and yellow alerts. “If the full capacity of Ilijan power plants is not available by second quarter of 2023, then this would significantly reduce the available capacity,” it pointed out.

The 1,200 MW Ilijan plant has been on shutdown since June last year after the build-operate-transfer (BOT) arrangement between the government and South Premiere Power Corp. (SPPC), a subsidiary of SMC Global Power Holdings Corp., had lapsed. Ilijan could not source gas from the steadily-dwindling Malampaya gas field. It could run on diesel, but this would mean higher prices for consumers because of skyrocketing fuel prices in the world market.

“Fuel swap”

IN a meeting it called with First Gas Power Corp., SPPC, Manila Electric

Company (Meralco), and Malampaya consortium, the Department of Energy (DOE) emphasized a significant increase in yellow and possibly red alerts for 2023 if SPPC’s Ilijan plant does not operate.

At a recent webinar hosted by the Philippine Chamber of Commerce and Industry, Meralco First Vice President and Head for Regulatory Management Office Jose Ronald Valles said the DOE expressed full support for fuel swapping and committed to help with all government processes required to implement a fuel swapping arrangement.

Under the proposal, First Gas shall temporarily re-allocate an agreed volume of its Malampaya natural gas allocation under its Gas Sale and Purchase Agreement with the Malampaya consortium, which can enable SPPC’s Ilijan plant to operate and produce an agreed capacity.

“The target is for this to take effect starting February 26, 2023. Again, this will take effect with the endorsement of the DOE and approval of the ERC. The objective here really is to address any potential supply deficiency,” said Valles.

The parties met again early this year and discussed proposed salient provisions governing the arrangement and agreed in principle that the implementation shall commence only after ERC approval.

“The DOE continues to encourage power sector stakeholders to work together to explore all measures that could help consumers , particulary in Luzon, by ensuring adequate supply of power during the forthcoming summer months. At the same time, the possible arrangements cannot yet be confirmed,” said DOE Secretary Raphael Lotilla, who was referring to the proposed gas swap.

“The DOE continues to to call everyone concerned to cooperate in the common effort to assist the consuming public,” he added.

12 weeks of yellow alert LOTILLA could not stress enough the importance of additional power supply and reserves during summer months when demand is at its peak.

“We need every source of power to bridge that period,” Lotilla had said.

In its latest forecast that was based on the approved grid operating management plan (GOMP), the DOE said the Luzon grid may experience at least 12 weeks of yellow alerts.

A yellow alert notice means that there is insufficient operating power reserve in the grid.

According to DOE Undersecretary

Rowena Guevarra, the yellow alerts could be issued on March 12 to 18; March 26 to April 1; April 23 to 29, the entire month of May; June 1 to 10; August 27 to September 2; October 15 to 21 and; November 19 to 25. The said GOMP forecast factors in up to 600 MW of capacity under forced outages, she added.

If and when 420 MW of dieselfired power plants would be operated as needed, the NGCP may

issue the yellow alert notice for one week only or from April 30 to May 6. But again, diesel plants are more costly to operate.

Committed power projects

GUEVARA said, “we are more worried in summer” because of higher demand. This year, Luzon grid’s peak demand is expected to occur anytime between May 21 and 27 at 13,125 MW.

Based on DOE data, the total committed power projects as of November 2022 in Luzon from 2022 and beyond will result in an additional capacity of 9,168.17 MW capacity and 1,500 MW of Energy Storage System (ESS).  Of which, 926.82 MW of power generation capacity and 760 ESS are targeted for commercial operation this year.

Plugging gaps with RE

POWER firms vowed to continue and complete their committed power projects as soon as possible to help plug any deficit.

ACEN Corp. President Eric Francia said the company is currently building over 1000MW of solar and wind projects in the Philippines, of which around 700 MW is expected to start operations within the next 12 months. Francia said these projects would help alleviate some of the supply pressure, and help towards achieving the country’s renewable targets.

“For 2023, it will remain challenging especially given the declining output from Malampaya and the continued electricity demand growth on the back of economic recovery,” said Francia via email.

Aboitiz Power Corp. President Emmanuel Rubio said via viber that

the company’s power projects would considerably support the country’s need for reliable and stable power in many years to come.

“It comes at an opportune time that the latest addition to our thermal portfolio, the 1,336 MW GNPower Dinginin, is ready to deliver much-needed baseload power to support the country’s growing power needs.”

“Furthermore, our renewable energy assets continue to grow with over 1,000 MW of disclosed renewable energy projects from various indigenous energy sources like solar, wind, and geothermal,” Rubio pointed out.

Higher LNG price next year

ISIDRO Consunji, chairman and chief executive officer of integrated energy company Semirara Mining and Power Corp. (SMPC), also projected that power supply will be challenging this year while expensive gas prices are expected next year.

“I think 2023 is the most challenging, more than 2024 because in 2023, the LNG (liquefied natural gas) is not ready. So there may not be enough (supply),” said Consunji.

“For 2024, (LNG) is ready, so there will be no brownout, but it may be more expensive. I think 2024 is not so challenging because LNG is already there. The issue is price,” said Consunji, adding that LNG price is estimated to be 50 percent higher than coal. “So, we will have power, but it’s going to be more expensive than today. That’s the problem,” Consunji stressed.

The LNG projects of Linseed Field Power Corp. and FGen LNG Corp. are up for commissioning in the first quarter. Commercial operations are expected in the second quarter.

To help ease the impact of high fuel prices, Lotilla said his office continues to encourage the use of

renewable energy (RE). “It is a global market. Therefore, what happens in one part of the world affects the price we’re going to import,” he said.

Demand-side management

THE DOE has been pushing for demand-side management (DSM) programs for various sectors to soften the impact of any power supply tightness. These are initiatives meant to encourage consumers to optimize their energy consumption.

“We should not look at demandside management as only a bandaid solution. Instead, it should be a natural element embedded already in our entire management system,” Lotilla said. “If our consumption becomes more efficient, that means we will no longer have to run dieselfired power plants that are more expensive,” Lotilla said.

Still on the demand side, Meralco wants more of its large customers to sign up for its Interruptible Load Program (ILP).

The ILP is a demand-side management program led by the DOE and ERC wherein participants will be asked to temporarily de-load from the grid and use their generator sets when there is supply deficiency and power interruptions are imminent.

In this case, the ILP participants may run their facilities to allow more grid capacity to serve other customers.

According to the DOE, the DSM programs for various sectors focus on the utilization of efficient equipment and appliances, and the promotion and implementation of policies and programs that best fit each industry.

For the commercial sector, the utilization of energy-efficient equipment such as inverter-type air conditioners and LED lightings is promoted. Further, the promotion of the energy-labeling program will ensure informed decisions of households regarding the energy

performance and efficiency of all household appliances.

On the supply side, Meralco is conducting two biddings for shortterm power supply agreements to help shield its customers from volatile spot market prices in cases of supply deficiencies.

Meralco vice president and head of utility economics department Lawrence Fernandez said there is an ongoing 180 MW baseload supply and 300 MW peak supply CSPs (competitive selection process) for interim power supply agreements from February 26, 2023 to February 25, 2024 and February 26 to July 25, 2023, respectively.

“Hopefully, these will help protect Meralco customers from spot market prices,” Fernandez said.

Meralco services 7.6 million customers. While increasing demand for electricity brings good news since this shows that businesses are recovering, the power sector urgently needs to catch up to serve the growing demand. With high optimism and strong cooperation from the private sector, the DOE hopes it will be a brownout-free summer this year.

While the DOE has already flagged possible 12 weeks  of yellow alerts, Senator Sherwin  Gatchalian said the agency should ensure that the expected additional supply is attained before demand peaks during the summer months.

“A steady power supply is critical for the country to sustain its economic growth as it is anchored on our capacity to provide electricity supply when and where it is needed. Thus, the government must ensure that any additional requirement will be met with sufficient supply,” Gatchalian said.

He also urged the DOE to ensure that no maintenance shutdown of existing power plants will happen during the peak months to prevent any red alert status, which causes rotational brownouts.

“We need every source of power to bridge that period.” –Energy Secretary Raphael Lotilla, underscoring the importance of additional power supply and reserves in summer when demand peaks.

A TOURIST enjoying the Bangui Wind Farm in Bagui, Ilocos Norte. The wind farm uses 20 70-meter high 1.65MW wind turbines, arranged in a single row stretching along a nine-kilometer shoreline off Bagui Bay, facing the South China Sea. Photo by Bernard Testa

ENERGY Secretary Raphael P.M. Lotilla

ISIDRO Consunji, Chief Executive Officer, Semirara Mining Corp.

Outlook

Mission possible: PHL seeks FDI boost with eye on tourism, infra, FTA avenues

By Andrea E. San Juan

These strategies, moving forward, include integrating trade, investment and industries; promoting the local tourism industry, addressing the issue of the availability of power, infrastructure and logistics, and establishing a stronger relationship between the public and private sector.

But some quick, major fixes are needed.  Philippine Chamber of Commerce and Industry (PCCI)

President George T. Barcelon stressed that “some of the key areas on the infrastructure has to be addressed,” adding that whenever the Philippine delegation flies to other countries, the group can sense that investors are aware that power is an issue in the country.

Rebuilding through tourism

BARCELON said the country’s travel and leisure sector is exhibiting a “strong comeback” this year, so it deserves focus. The tourism sector in other countries have already opened up because Covid-19 has been “downgraded” to a flu-like pandemic. In fact, the recent trip of President Ferdinand R. Marcos, Jr. to Beijing has “achieved China’s support of our tourism and agricultural sectors,” Barcelon told the BusinessMirror in a chance interview.

Earlier last month, Trade Secretary Alfredo E. Pascual, told reporters that if the Philippines is “careful enough to manage the virus,” then the country can expect continuing inflow of both foreign and local tourists to local destinations.

“There seems to be a phenomenon of revenge-travel going on internationally and you see that also locally. So we expect that with our

young population, very mobile, very active, and our enterprising small businesses, we hope that all these together will keep the economy revving up and generating economic activities,” Pascual noted.

As for investments in the sector like resorts and hotels, Pascual considers this the time of “rebuilding,” meaning, many tourist spots that had capital at the start of the pandemic made use of it to upgrade their facilities. This is a “favorable” development, especially for the Philippines moving forward, he said.

For his part, Go Negosyo founder Jose Maria A. Concepcion III stressed that following the lockdown which created financial problems for micro, small, and medium enterprises (MSMEs) in the tourism sector, he met with Tourism Secretary Christina Frasco to discuss how they can help the small merchants “prepare for the tourism boom,” adding that the Philippines still has, by far, the “best beaches and one of the most welcoming people in the world.”

Concepcion also noted that with rebuilding the tourism industry, the biggest help the sector can get is for relevant agencies to make it easy for people to pass through the Ninoy Aquino International Airport (NAIA). He said, “The airport experience must be improved, not just for the tourists but also for the [overseas Filipino workers] OFWs who have only a few days to spend with their families here.”

Leveraging

FTAs

IN terms of how the Philippines attracts foreign investors, Department of Trade and Industry (DTI) Assistant

Secretary for Industry Development and Trade Policy Group (IDTPG) Allan B. Gepty said last week the Philippines should be consistent with how it attracts investments.

Gepty noted some “degree of inconsistency” with the country’s move to attract investments because internally, “you have passed all these economic reforms—amendment of [Public Service Act] PSA, [Foreign Investment Act] FIA, and amendment to the [Retail Trade Liberalization Act] RTLA, basically telling the whole world, our investors, that our country is open.”

And yet, he added, the Philippines has delayed its participation in the Regional Comprehensive Economic Partnership (RCEP) which he described as a “very important” free trade agreement (FTA).

According to a document uploaded on DTI’s web site Innovate, the regional trade pact not only provides access to a “broader” market base, but also brings “bigger source of investments and more advanced.”

In fact, Gepty said the RCEP regions account for 33 percent of global inward FDI, which he said is a “very important element,” meaning, the investment destination is in the RCEP region.

Integrating trade, investments, industries

THE country’s Trade chief had said the Philippines will bank on foreign capital to develop production capability for its export market.

The Philippines will pattern its strategy after Vietnam and Thailand, which relied on foreign investors to put up factories in their countries, hastening exports growth.

“Our export is linked to the integration of trade, export and the industry. Our ability to develop industry is limited because we need capital and technology,” Pascual said, partly in Filipino, in an earlier interview.

Pascual stressed that the word “investors” does not focus on money alone. Beyond financial support, there’s technology, management, and more important, market.

The integration of trade, investment promotion, and industry development is a strategic priority of DTI.

Global Value Chains

“FOR instance, we will integrate our production systems by linking manufacturing, agriculture, and services. We shall deepen our participation in global value chains (GVCs), and expand and diversify our exports, trade, and investment partners,” the Trade chief said.

For the Semiconductor industry, the Trade department said the country “aims to establish and strengthen trade and investments’ linkages with global industry players.” The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) recently went to the Consumer Electronics Show (CES) 2023 in the US to explore partnerships with academic and research institutions.

Recently, the Board of Investments (BOI) said global semiconductor players are looking at tapping the Philippine semiconductor industry to deepen the country’s role in the global semiconductor supply chain. The Semiconductor Industry Association (SIA) said while the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act encourages manufacturing in America, but rather than reshoring all manufacturing activities, it is more of

“rebalancing the supply chain.”

The BOI said in a news statement two weeks ago that several segments in the semiconductor supply chain such as assembly, testing, and packing are most “cost effectively” conducted outside of the US.

According to SEIPI president Danilo C. Lachica, the Philippines has a testing facility located in Cebu. He said this dramatizes what the industry means by the importance of being in the global supply chain for semiconductors.

Citing the Asean Investment Report 2020-2021, the Philippine Development Plan (PDP) 2023-2028,

stated that many foreign investors are “recalibrating” their investment portfolios in China, often with a view to relocate to Southeast Asia Notably, even before the pandemic, some multinational enterprises (MNEs) and many Chinese companies had moved operations to Asean because of rising costs in China. Since 2020, the report noted that the pandemic has made GVC resilience another reason to invest in Asean.

“The reasons for MNEs moving operations from China to Asean have been mixed: primarily rising costs, trade tensions and diversification of supply chains,” the report stated.

Headwinds of ’22 seen to persist, but telcos see silver lining in ‘23

By Lorenz S. Marasigan

And, despite players expecting this to persist this year, the industry’s largest players painted a rosy outlook for 2023, noting better customer experiences amid faster Internet speeds.

Marked by the changing of the guard in the national government, the year 2022 saw consumers tightening their wallets, as inflation continued to rise on the backdrop of a global crisis.

“Globe believes the biggest challenge for the industry is the decline in disposable income of customers, particularly the mass market segment, given that the country’s telecom market is predominantly prepaid. High inflation, the sharp depreciation of the Philippine Peso vis-a-vis the US Dollar, and supply chain disruptions caused the increase in prices of basic commodities and services. Combined with the high unemployment rate, all these factors affected the customers’ ability to avail of more telecom services as part of their digital lifestyle,” Globe Spokesman Yoly Crisanto said.

She noted that Globe was able to capitalize on its ongoing transition from a pure telco player to a digital services provider, leveraging the trend of digital transformation.

By building and upgrading more than 11,000 mobile sites and deploying 1.4 million fiber-to-the-home (FTTH) ports, Globe was able to grow its total subscriber base to more than 91 million customers as of endSeptember.

“Based on the foregoing, overall performance proves that connectivity remains an essential service for Filipinos,

notwithstanding the challenging economic climate and rapid changes in the industry. This is on account of the rapid rise in digital adoption among more Filipinos, which is in step with Globe’s pivot from its core telco business to a digital service platform,” Crisanto said.

For her part, PLDT Group Spokesperson Cathy Yang said that the organization was able to sustain growth despite the challenges thanks to its three revenue engines — consumer wireless, home, and enterprise.

“The PLDT Group sustained its performance against the backdrop of toughening economic headwinds and external challenges: first, Covid-19, then inflation and high interest rates. On top of that, the country has also been impacted by typhoons and other calamities,” Yang said.

PLDT strengthened its network of 77,200 base stations nationwide, built 1.29 million new FFTH ports, and expanded its fiber footprint to about 1.09 million kilometers, as of end-September.

Meanwhile, Dito Telecommunity Corp. Chief Administrative Officer Adel Tamano said “2022 was a milestone year for Dito,” constructing 6,328 integrated sites and laying out 28,000 kilometers of self-built and purchased backbone for fiber.

Continuing trend

FOR 2023, Yang expects the challenges last year to persist. However, this could be solved by adding more investments — not only on the private sector side, but also from the government.

“At this time that the consumer wallet is diminished—when consumer income is under threat and government finances are challenged—investments will emerge as a primary recovery tool. Hence, investments are needed, both by the government and the private sector to drive the economy forward,” she said.

Cristanto has a similar view. She said propping up the economy will help Filipinos regain their spending power, especially for telco-related and digital services.

“The biggest challenge is for the country’s overall economy to regain its prepandemic growth momentum which will hopefully result in more jobs and/ or business prospects for Filipinos, and increase their incomes, a portion of which to avail of more telecom services as part of their digital lifestyle,” according to her.

Crisanto noted that the outlook for the industry “remains promising” given the importance of connectivity and continuing digital adoption among more Filipinos.

“Likewise, in terms of per capita data consumption, the Philippines remains relatively under-indexed versus its regional neighbors. The fact that the Philippines has a young population, with the average age of Filipinos around 26 years, augurs well in terms of continuing digital adoption in the years to come. For its part, Globe continues to expand and increase the capacity of its network, and invest in adjacent businesses as part of its pivot to a digital service platform,” she said.

TOUGH economic headwinds that led to a diminishing consumer wallet were the toughest challenges that the telecommunications industry had to face in 2022.

AS economies continue to reopen, the Philippine government has since packed its investment promotion strategies in its bag for the mission of attracting foreign direct investments (FDI) in the global arena to leverage its strategic location in Southeast Asia.

TRADE and Industry Secretary Alfredo Pascual (from DTI website)

JOSE Maria A. Concepcion III, Go Negosyo founder PHOTO FROM JOEY CONCEPCION FB PAGE

IF the Philippines is “careful enough to manage the virus,” the country can expect continuing inflow of both foreign and local tourists to local destinations, according to Pascual. PHOTO BY BERNARD TESTA

D4

Tuesday, January 31, 2023

Reform-driven SC racing to make courts more responsive, legal system stronger

By Joel R. San Juan

STAKEHOLDERS in the judiciary and the public should expect the Supreme Court to break more traditions this 2023.   In fact, it started the year by holding its first en banc session in Baguio City on January 9, a practice that is usually done during the Summer Session but was stopped due to  the pandemic.

“We are truly starting the year trailblazing, which I believe is a testament to the Court’s willingness to tread new paths to achieve judicial reforms that will benefit the judiciary and the public in general,” Associate Justice Henri Jean Paul Inting said on the holding of the first 2023 en banc session in Baguio.

For his part, Associate Justice Rodil Zalameda told his fellow justices, SC officials and employees that the adoption of the Strategic Plan for Judicial Innovation (SPJI) by the Court en banc “is a milestone for the courts” as it does not only address the problems hounding the judiciary but also “takes out another tradition – bringing the previously insulated ‘gods’ of Padre Faura close to the people.”

The SPJI, promulgated by the Court en banc in October, may be considered its most significant accomplishment for 2022.

Chief Justice Alexander Gesmundo said the SPJI will be the blueprint of the judiciary in the next five years and is expected to hasten court proceedings, processes and resolution of cases.

The launching of the SPJI has paved the way for the SC magistrates to go out of the gates of Padre Faura, where they have been cloistered and referred to as “gods” for a very long-time.

Notably, the year 2022 may indeed be considered a year of many firsts for the SC.

For the first time in the history of the Philippine Bar, the SC conducted two Bar exams -- the 2020-2021 and 2020 Bar examinations.

After several postponements due to health issues brought about by the Covid-19 pandemic, the SC finally pushed through with the conduct of the 2020-2021 Bar exams last February 4 and February 6 in 29 designated testing centers nationwide.

It was the first time the Bar exams was held under a regionalized and digitalized setup – again, owing to pandemic-imposed health and travel restrictions.

On November 9, 13, 16, 20, the SC

successfully conducted the second Bar exams  under the same regionalized and digitalized system.

Rules on refugees, stateless ANOTHER first for the SC is the adoption of the Rule on Facilitated Naturalization of Refugees and Stateless Persons, which aims to simplify and reduce legal hurdles in obtaining Philippine citizenship, to  facilitate the assimilation and naturalization of refugees and stateless persons into Philippine society

The SC said the Rule is the first of its kind globally.

Other SC initiatives  in 2022 were  the promulgation of several rules and projects such as the Amendments to Rule 140 of the Rules of Court, which expanded the coverage of the Rule governing administrative disciplinary cases against members, officials, and employees of the judiciary; the Rules on Expedited Procedures in the First Level Courts, which were promulgated to simplify and expedite proceedings in the First Level Courts, the first tier in the Philippine hierarchy of courts, expanding its coverage and institutionalizing the one-step  appeal system; The Benchbook for Family Courts, which provides all trial courts specializing in Family Cases targeted guidance in handling  matters affecting women and children, protecting them from all forms of abuse and exploitation; The Benchbook for Commercial Courts, which responds to the needs of litigants with specific issues related to financial and commercial concerns falling within the cognizance of Special  Commercial Courts; and, finally, The Rule on International Child Abduction Cases, which provides an expeditious procedure to facilitate the prompt return of children who have been wrongfully removed or retained  across international boundaries.

Asked to cite the significant  cases that the Court promulgated in 2022, CJ Gesmundo stressed that the High Tribunal considers all cases brought before it important.

“We treat each and every case equally. To us, every case is significant because remember, as I have been saying all the time, our decisions are not focused on the litigants or persons involved in the case but on what and whether it would have a ripple effect on future cases,” the chief magistrate explained.

Nonetheless, he noted there were certain important cases that were

decided by the Court in 2022 which involve public interest.

“There were specific cases that aroused public interest and [were] highly controversial but to us all cases are equally important. Whether it is a simple civil case or criminal case, we treat them the same,” he added.  Protection writs

FOR the year 2023, Gesmundo said the justices will focus on resolving pending election-related cases and those that spur public interest such as the petition questioning the constitutionality of the implementation of the no-contact apprehension policy (NCAP) against erring motorists.

The SC failed to finish the oral arguments on the petition last December 6, setting its continuation on January 24, 2023.

The petitions were filed by transport groups and motorists, complaining about the huge traffic fines being imposed by local government units under the NCAP.

They are also questioning NCAP’s legality for lack of basis under   Republic Act 7924, which serves as the enabling charter of the Metropolitan Manila Development Authority (MMDA) and RA 4136 creating the Land Transportation Office (LTO).

They said ordinances of LGUs allowing NCAP are invalid since there are no existing laws passed by Congress that allow the implementation of such regulation.

They noted that RA 4136 allows only face-to-face apprehension of traffic violators and that traffic violations are a liability of the erring drivers and not the registered owners.

Meanwhile, one of the controversial  election-related cases pending before the SC is the petition filed by lawyer Romulo Macalintal seeking to compel the Commission on Elections (Comelec) to push through with the conduct of the barangay and the Sangguniang Kabataan (SK) elections this year.

CJ Gesmundo also said the SC through former Chief Justice Reynato Puno will push for the issuance of the Rules on Anti-Terrorism Cases to ensure human rights are protected alongside the interests of the State.

In December 2021, the Court had  declared all the provisions of the controversial Anti-Terrorism Act (ATA) of 2020 “not unconstitutional” except for specific portions of two of its provisions. The Court struck down as unconstitutional the qualifier to the provision in Section 4 of RA 11479 which defines terrorism.

That provision states that terrorism “shall not include  advocacy, protest, dissent, stoppage of work, industrial or mass action, and other similar exercises of civil and political rights  which are not intended to cause death or serious physical harm to a person, to endanger a person’s life, or to create a serious risk to public safety.”

But, the SC said the qualifier “which are not intended to cause death or serious physical harm to a person, to endanger a person’s life, or to create a serious risk to public safety” was  “overbroad and violative of freedom of expression.”

Also declared as unconstitutional was the second method for designation in Section 25 (Designation of Terrorist Individual, Groups of Persons, Organizations or Associations) paragraph 2 of RA 11479.

Paragraph 2 states: “Request for designations by other jurisdictions or supranational jurisdictions may be adopted by the ATC (Anti-Terrorism Council) after determination that the proposed designee meets the criteria for designation of UNSCR (United Nations Security Council Resolution) No. 1373.”

“The Court will not settle with just rendering a decision. We went a step further to ensure that the implementation of the Anti-Terrorism Law is properly done when it reaches the judicial process,” Gesmundo stressed.

“So we want to make sure that there are specific rules governing the anti-terrorism cases so that the rights of the people are respected. The right of the State is also equally protected,” the chief justice added. They are eyeing to release the draft of the rules by the first quarter of 2023.

“This is a Rule that we’re trying to promulgate right now. The committee is working on it but hopefully, first quarter of next year we can provide a draft and share it with the public and other stakeholders for consultation before finalizing these anti-terrorism law cases, the specific rules of procedures.”

Also, the SC is expected to finish the review of the writs of amparo, habeas data  and habeas corpus to further strengthen the said writs.

A Writ of Amparo is a legal remedy available to any person whose right to life, liberty and security has been violated or under threat while the writ of habeas data is a remedy available to any person whose right to privacy in life, liberty or security has been violated or under threat by the unlawful gathering of information about the person, his or her family and home.

A Writ of Habeas Corpus “is a writ directed to a person detaining another, commanding the former to produce the body of the latter at a designated time and place.”

It extends “to all cases of illegal and arbitrary detention by which any person is deprived of his liberty….”

Several human rights groups have pleaded with the SC to strengthen the so-called protection writs in light of the rampant red-tagging and terroristlabelling being done to activists, journalists and other sectors on various media platforms.

A Writ of Kalikasan is a legal remedy for the protection of one’s right to “a balanced and healthful ecology in accord with the rhythm and harmony of nature,” under Section 16, Article II of the Constitution.

The SC is also likely to come up with a Writ of Kalayaan within the year, meant to address jail congestion in the country.

Supreme Court Senior Associate Justice Marvic Leonen first suggested the “writ of kalayaan” in his separate opinion in 2020 on the case brought to the SC by political detainees seeking to be released on the ground that  their old age and

medical condition make them more susceptible to the Covid-19 virus.

Meanwhile, Associate Justice Jose Midas Marquez said the SC is eying to start the operation of the Office of the Judiciary Marshals in the first quarter of the year.

“We will be starting with the appointment of the Chief Marshal and the three deputy marshals who would be in charge of Luzon, Visayas, and Mindanao and thereafter, we will create the divisions,” Justice Marquez said.

“We don’t see any major challenges to the creation of the office by the first quarter,” the magistrate added.   Once operational, the OJM will look into the unsolved killings of more than 30 judges since 1999.

Under the law, the OJM is tasked to conduct threat assessments, investigations, and forensic analyses of crimes and threats committed against judiciary members and court properties.

The judiciary marshals will also investigate alleged corruption committed by justices,  judges and other court officials as directed by the Supreme Court.

It shall have concurrent jurisdiction with other law enforcement agencies to undertake investigations of crimes and other offenses committed against justices, judges, court officials and personnel, halls of justice, courthouses, and other court properties.

On the other hand, the SC is also expected to release the Rules on the conduct of virtual hearings and electronic testimony, in line with the Court’s decision to continue the use of videoconferencing even after the Covid-19 pandemic  — as part of its program to make the judiciary more technology-driven.

Dealing with dissension, internal and territorial threats are security focus

By

Rene Acosta

THE year 2023 opened with the Department of National Defense (DND) and the Armed Forces of the Philippines (AFP) greatly hoping that it would usher in something better for the defense and military establishments.

Indeed, it brought something, but one that they were not exactly hoping for – a resurgent unrest in the military, apparently spawned by the issues of delayed promotion and the full implementation of the law that was supposed to further professionalize soldiers.

Facing a risk that the “valid reasons” could transform senior officers once again into “coup plotters,” the DND and the AFP quickly moved to stem the root causes of dissension by asking the Commander in Chief to sign a record-breaking promotion and designation of senior officers.

The DND and the AFP, under a new secretary and a chief of staff respectively, also moved to amend Republic Act 11709 or the Act

Strengthening Professionalism in the Armed Forces of the Philippines, which among others, capped a three-

year term for 12 key positions in the military and raised the retirement age to 59 from 56 for senior officers.

While Defense Secretary Carlito Galvez Jr. and the AFP Chief of Staff General Andres Centino may have temporarily addressed the rumblings in the uniformed service, the professionalism in the AFP, now tied to RA 11709, will remain a challenge in the current year.

Pacifying the military and addressing internal security challenges from the communist New People’s Army and various terrorist groups operating in Mindanao, some of them allied with the Islamic State, as well as dealing with the territorial challenge from the presence of China in the Kalayaan Island Group (KIG) and West Philippine Sea (WPS) are the key constraints for 2023 by the DND and the AFP.

Threats of adventurism

GALVEZ has admitted that some senior officers, whose promotions and designations were previously delayed or stalled, have valid gripes, but he sought to play this down, calling it as

a “tampo” during a recent hearing of the Senate Committee on National Defense and Security, Peace, Unification and Reconciliation.

“We are listening to the concerns of our men and women in the AFP, who are understandably anxious over the perceived uncertainty in their careers under the new law,” the defense chief told senators.

The issue of delayed promotions and designations–at least 39 of which were signed and effected last week -fueled the fears of senior officers that the new military law will stall their promotions, if not force them out of the service.

There was apprehension that fixing a three-year term for the 12 key positions in the AFP–chief of staff, vice chief, deputy chief of staff, the chiefs of the Army, Air Force and Navy and the six area commands will prevent or stagnate the movement of officers in the military.

And if this happens, senior officers are prone or could easily be recruited to join a destabilization move, reminiscent of the wave that the AFP undertook from the time of the late former President Corazon Aquino up to the term for former

President Gloria Macapagal Arroyo.

RA 11709, which strictly enforced attrition in the military, also set a four-year fixed term for the superintendent of the Philippine Military Academy (PMA).

The inequity in retirement under the law — 59 years of age for senior officers from the rank of brigadier general and up, and 56 years of age or 30 years in service for enlisted personnel, junior and middle-grade officers — also makes the soldiers “restive.”

When the law was initiated and passed during the term of former President Rodrigo Duterte, its prime movers had admitted that it would really hit senior officers, especially those holding the rank of colonel in the AFP, since they have to be promoted, otherwise they would have to be removed or retired from the service.

Both Galvez and Centino knew the gripes of senior officers, and this is why they moved to amend the law even before it could be fully implemented.

During his “talk to the troops” in his visit to the Army headquarters, the defense chief ordered the military to “take care of our people, resources

and organization, as well as to keep the organization clean and maintain its integrity.”

“Stop being anxious; the DND and AFP have recommended the promotion system and retirement of enlisted personnel will no longer be governed by RA 11709. Your human resource development systems/ programs will be directly under the different major service commanders. When the [amended] law comes out, you will be excluded. Our prayer is for a smooth and quick ‘transition’ in 11709 in the management of our Armed Forces. We hope the amendments are done soon so your careers won’t be stalled,” Galvez said, speaking partly in Filipino.

For his part, Centino guaranteed the integrity of the body tasked to screen promotions and designations in the military.

“We can assure that during our watch we will always maintain the integrity of the board of the generals and the decision of the board of senior officers and that is the one what we are asking of our leaders . . .  to respect the traditions and also the mandated power of the board of generals and our senior officers,” Centino said.

Communist insurgency, territorial threats ASIDE from dealing with threats within its organization, the military will be preoccupied with ending the half-a-century old communist insurgency. The rebels, it claimed, now number a mere 2,000, with the remaining five guerrilla fronts merely operating in Leyte and Samar.

Duterte had ordered the military to end the insurgency during his term, and while the soldiers have failed to achieve this, they have managed to trim the rebel membership.

According to Galvez, they want to capitalize on this achievement by moving to end the insurgency once and for all under the administration of President Ferdinand “Bongbong” Marcos Jr.

The defense chief said they also want to deal with territorial integrity issues involving the KIG and WPS.

“The instruction of our beloved President is to keep our focus intact because we have two major focuses. One is to maintain the integrity of our country and second, is to eliminate already the different insurgencies that we have,” Galvez said.

CHIEF J ustice Alexander G. Gesmundo

THE Supreme Court PHOTO FROM WIKIMEDIA