BusinessMirror July 04, 2022 by BusinessMirror

‘Close borders, cut Omicron exposure risk’ By Cai U. Ordinario @caiordinario

LOSING the country’s borders is one of the most immediate courses of action the government must take to prevent the latest Covid-19 variant, Omicron, from reaching Philippine shores, according to local economists. T he new var iant is a threat, e s p e c i a l l y w it h t he hol id ay s coming up and more foreigners being a llowed to travel to the Philippines, De La Sa lle Universit y economist Mar ia Ella Oplas told BusinessMirror. The holidays usually bring in Overseas Filipino Workers (OFWs) who are eager to spend Christmas

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with their loved ones, while foreigners living in temperate regions usually want to relax in tropical countries like the Philippines. This year’s influx of OFWs is expected to be heavier since many of them were unable to come home for the holidays in December 2020. “My recommendation is to protect the borders. Do not allow people with a history of travel to countries with positive cases to enter,” Oplas said. “We should be more restrictive. [We have to be] more protective in terms of our measures.” Oplas said that while this will be a setback to some industries, this is a fair measure considering that this could help prevent placing the country in another strict lockdown,

n Monday, July 4,29, 2022 Vol. 17 Monday, November 2021 Vol.No. 17 269 No.52

which, she said, the economy can no longer afford. “It is better that we do protective preventive measures than get exposed again. We have a lot to lose,” Oplas said. “We should do it now so that we can open just before Christmas. If it gets contained, we can open it again.” Ateneo Center for Economic Research and Development (ACERD) Associate Director Ser Percival K. Peña-Reyes said closing the country’s borders would be effective but should still adhere to the standards set by the World Health Organization (WHO). What is needed, Peña-Reyes told this newspaper, is for travel restrictions to be put in place swiftly and

for government to be proactive in imposing them. Previous instances when the country had the opportunity to impose travel restrictions did not prevent the spread of Covid-19. That was mainly because the decision was not made immediately, he said. “Kung papatay patay [If we’re slow] and we get caught flat-footed, [that’s risky] We were too reactive instead of proactive before. We should learn from that,” PeñaReyes said. “It’s a delicate balancing act. We need to push testing and tracing to be properly informed of our decisions. Blanket/shotgun approaches could have dire consequences on the economy.” See “Omicron,” A2

P25.00 P25.00 nationwide nationwide || 22 sections sections 18 20 pages pages ||

NATL BORROWINGS NEDAGOVT DG: FISCAL, FOOD FOR 10TOP MOSPBBM DIP TO P2.75T WOES AGENDA T ByNicolas Cai U. Ordinario By Bernadette D.

@caiordinario

Omicron risk spurs revival of quarantine rules in PHL

@BNicolasBM

HE Marcos administration HE national intends to prioritize the government’s economic recovery; address gross the food crisis and fiscal concerns; borrowings as of and mobilizeshrank spending such as those end-October intended infrastructure, according by almost 6for percent to Socioeconomic Planning Secretary year-on-year to Arsenio M. Balisacan. P2.75 trillion.

“Given the current conditions, we have move fairly quicklyofand Latesttodata from the Bureau the so it has been, from thethe verygovernstart, Treasury showed that (upon theduring economment’sproclamation), gross borrowings the ic team was built up, (to) the 10-month period fell by 5.99get percent transition quickly from P2.92 happening trillion a year ago. so DayWith 1 weonly would allmonths hit the ground two left for running. Obviously, (this is) bethis year, the latest figure is already cause of sotomany equivalent 89.6 urgent percentthings of its that need to be addressed,” said P3.07-trillion borrowing program. Balisacan, who returned to borhis Broken down, gross domestic previous post January as director general rowings from to October of the National and Desettled at P2.23Economic trillion, down by velopment Authority (Neda). 5.08 percent from P2.35 trillion in 2020. The bulk of the amount was sourced from Fixed Rate Treasury Bonds (P1.19 trillion), followed by short-term borrowings from Bangko Sentral ng Pilipinas or BSP (P540 billion), Retail Treasury Bonds/PreBy Bernadette D. Nicolas myo Bonds (P463.3 billion), Retail Onshore Dollar@BNicolasBM Bonds (P80.84 billion). In the same period, there was subsidies were exalso a netEWER redemption of Treasury tendedtobyP43.94 the national Bills amounting billion. government to state-run Net debt redemption means corporations in the firstcomfive there were more debts repaid months of the year compared to pared to the amount borrowed dursame period last year. ing the period. Latest data from the Bureau Meanwhile, gross foreign borof theinTreasury showed rowings the same periodsubsialso dies received by governmentcontracted by 9.7 percent to P518.7 owned -controlled corpobillion from and last year’s P574.4 billion. rations from January This was(GOCCs) raised through global to May this year amounted to bonds (P146.17 billion), program P32.3 billion, plunging by 59.6 loans (P139.98 billion), euro-depercentbonds year-on-year from nominated (P121.97 billion), P79.94 billion in 2021. a project loan (P86.41 billion), and The national government yen-denominated samurai bonds (P24.19 billion).

By Samuel P. Medenilla @sam_medenilla

NTER NATIONA L concerns over the possible spread of the more infectious Omicron CoBalisacan, who is a known runvid-19 variant prompted the govning enthusiast, said in a virtual ernment to reimpose mandatory interview with BusinessMirror facility-based quarantine for all that this sense of urgency was made arriving passengers in the country. clear by the President to the entire Acting Presidential spokespereconomic team. son Karlo B. Nograles announced Foremost in the agenda, Balion Sunday that the Inter-Agency sacan said, is the economic recovTask Force for the Management ery. He said improving the country’s of Emerging Infectious Diseases GDP growth also means being on (IATF) suspended the implementrack to sustaining this growth and tation of its Resolution No. 150this means recovering from the A (s.2021), effectively imposing pandemic quickly. stricter protocols for all inbound See “NEDA,” A2 travelers. To note, IATF Resolution 150A had allowed fully vaccinated PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. non-visa travelers from Green List The country will celebrate the 158th birth anniversary of Filipino revolutionary areas to enter the country withhero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO out the need for facility-based quarantine as long as they secure HOPE AMID CLOUDS The skyline of the Metro Manila area continues to be dotted with ongoing construction projects for new structures, amid reportsnegative of rising prices of materials. Consumers are Reverse Transcriptionprovides subsidies to state-run NONIE REYES more optimistic than businessmen in the outlook for the third quarter and the next 12 months, according to the latest consumers confidence survey by the Bangko Sentral ngChain Pilipinas.Reaction Polymerase (RTfirms to fund operations not PCR) test within 72 hours prior covered by corporate revenues to their departure. or toBy finance programs Jasperspecific Emmanuel Y. Arcalas dating its registry following the them. This allows everyone to see programs as President Duterte “Except for countries classified or projects. @jearcalas enactment of the Coconut Farmwho are listed in the registry and if is expected to sign the industry as ‘Red,’ the testing and quarantine Cornering almost half of the ers and Industry Trust Fund law. farmer doesn’t see his name then he development plan in early 2022. protocols for all inbound internaamount of theORE total government By Bianca Cuaresma liability position grew by 34.8 The report a financial Broken down,inNFCs in the than 3 million Rosales explained that about shall coordinate with the PCA imRosales saidisthe PCA willstabilnot tional travelers all ports ofcounentry subsidies released during the @BcuaresmaBM percent to P1.3 trillion in the ity surveillance tool developed by try continued to post higher net coconut farmers and 500,000 coconut farmers and mediately,” he explained at a recent stop updating its list of coconut shall comply with the testing and period was the National Irri-regislast threewith months of farmers. 2021 from the International Monetary Fund borrowings from the for rest‘Yellow’ of the workers are now workers were added to the PCA’s dialogue coconut farmers and enjoined them to regquarantine protocols gation (NIA), regnet2.5 external P971.1 in the fourth quar(IMF) used to monitor the poworld (ROW) and othersaid, financial teredAdministration with the government’s 2018HE listPhilippines’s that had about million “On billion the other hand, if people ister in and order to reap the benefits list countries,” Nograles citing which gotwhich P15.26serves billion. liability position ter of 2020. tential vulnerabilities ofcoconut economic corporations istry, as the basis coconut farmers and farmwidened workers. would see names on the list and of the decades-long idled the provision(OFCs). of IATF Resolution Trailing were the in the fourth of last Thethink report on the net sectors and their relationships with the GG’s net finanfor the NIA number of National people to be The PCA’s nextquarter step is to conthey they are country’s not coconut levy fund. “We will not stop at 3.1 No.Meanwhile, 151-A. Food Authority with P3.24 bil-of the year owing largely to the expanexternal liability position part one another. cialHe liability alsowhich widened covered by the utilization duct an exclusion-inclusion profarmers or their details are is incormillion. We hope that more indinoted position Hong Kong, has lion,P75-billion National Housing Authority sion of the external of thethey Central Bank’s Philippine Accord ing to inthe BSP, the as the National Government (NG) coconut levy fund. cedure by net making the liability updated rect, can report it to the PCA viduals will register our coconut confirmed a case of the Omicron (P3.19Philippine billion), Bases Conversion the non-financial corBalance Sheet Approach, BSA is also useful identifying continued tap Coconut Authority positions farmers’ofregistry public, providfor immediate action,” hewhich added.is farmers registry,” heinsaid. variant, willtoalso falldomestic under theand Yeland(PCA) Development Authority (P2.17 porations (NFCs) and the general a presentation of the country’s fithe possible emergence of a fiforeign funding to support its proDeputy Administrator Roel ing everyone the opportunity to The PCA official noted that The updating of the coconut low list countries. billion) and Small Business Corpo(GG). of the list, Ronancial balance of sheets on a from nancialregistry crisis, specifically grams socio-economic M. Rosales said about 3.11 million government check the veracity the completion the initial list farmers is mandatedthose by Thefor suspension of the recovery rules for ration or SBCfarmers (P900 million). According whom-to-whom (wtw) basiswould using arising from asset-liability misgiven theList” extensive negative coconut and farm worksales added. to a report by the of coconut farmers registry Republic Act (RA) 11524 or the “Green countries willeffects be in rabe l ng P i lin ipipublic nas the balance sheet data of matchesIndustry and increasing balance of the pandemic. See “Subsidies,” A2 ers have been registered with the Ba ngko “The Sent list will posted be aggregate just in time for the expected Coconut Trust Fund Act. effect from November 28, 2021 to the country’s each sector the economy. sheet interlinkages. See “External liability,” A2 government since it started up- (BSP), spaces where peoplenet canexternal easily see See “3-M farmers,” A2 rollout of of coconut levy-funded December 15, 2021.

5-MO SUBSIDIES TO GOCCS PLUNGE 59.6% TO P79.94B

See “Borrowings,” A2

OVER 3-M FARMERS LISTED FOR P75-B COCO LEVY FUND

PHL’s net external liability position hits ₧1.3T in Q4

Continued on A2

PESO EXCHANGE RATES n US 55.9700 n JAPAN 0.4050 n UK 66.9535 n HK 7.0060 n CHINA 8.2044 n SINGAPORE 39.5667 n AUSTRALIA 37.9348 n EU 57.6251 n SAUDI ARABIA 14.6513 Source: BSP (July 1, 2022) PESO EXCHANGE RATES n US 50.4600 n JAPAN 0.4374 n UK 67.2329 n HK 6.4722 n CHINA 7.9013 n SINGAPORE 36.8968 n AUSTRALIA 36.2807 n EU 56.5758 n SAUDI ARABIA 13.4531 Source: BSP (November 26, 2021)

News

BusinessMirror

A2 Monday, July 4, 2022

Marcos open to signing new bill on Bulacan airport special zone

By Samuel P. Medenilla

awarded to agrarian reform beneficiaries, lack of a master plan for the specific metes and bounds of the economic zone, and for giving “blanket powers” to the BACSEZF authority for managing its technical airport operations. He also noted the BACSEZF was located in close proximity to the Clark Special Economic Zone in

Pampanga province, thus violating the government policy of building such economic zones in “strategic locations.” Angeles said Marcos “fully supports” the creation of the BACSEZF if Congress could come out with a law which will address his concerns. The immediate past Senate President Vicente Sotto III, in an interview with BusinessMirror, had advised advocates of the special zone to re-file a revised version in the 19th Congress, after addressing the key concerns embodied in the veto message. The BACSEZF would have been built near the P740-billion international airport in Bulacan, which is being constructed by the San Miguel Corporation (SMC). Angeles clarified that the veto of the HB 7575 does not affect the construction of the SMC airport. “The construction of the Bulacan international airport and aero city is not affected by the veto,” she said.

increase in the insurance, pension and standardized guarantee schemes attributed to HHs; and buildup of domestic currency holdings. Likewise, the other depository corporations’ (ODCs) net creditor position improved, brought about by the increase in the sector’s net

financial assets with the GG and non-residents. Similarly, the Central Bank’s (CB) net creditor position expanded on account of its higher net external assets. This development was supported by the year-on-year increase in the peso equivalent of the CB’s reserve assets.

@sam_medenilla

RESIDENT Ferdinand “Bongbong” R. Marcos, Jr. is still open to signing a new bill creating the proposed Bulacan Airport City Special Economic Zone and Freeport (BACSEZF). This after Marcos vetoed on Friday (July 1) House Bill 7575, which would have established the economic zone, due to its “defects,” the most serious of which were the “fiscal risks” from forgone revenues. In a statement issued on Sunday, Press secretary Beatrix “Trixie” Cruz-Angeles explained the legislation would have faced constitutional challenges had it passed into law in its current state. “Had the President not vetoed HB 7575, it would have lapsed into

law on July 4 or 30 days after the bill was sent by the legislature to Malacañang,” Angeles said. “Presidential Veto is the fastest way to cure the defects of HB 7575, especially the provision” which exempts financial transactions of the special economic zone and freeport from scrutiny by the Commission on Audit, she added. Aside from its lack of audit provisions, Marcos also flagged the bill for having no procedures for the expropriation of lands

External liability...

Continued from A1

Households (HHs), on the other hand, registered as the country’s highest net creditor, posting improvements in savings and investments as ref lected in the

following: increase in deposits with banks; expansion in the HHs’ holdings of equity and investment fund shares issued by other financial cor porations;

MARCOS

Subsidies... Continued from A1

Interestingly, the state-run Philippine Health Insurance Corporation (PhilHealth), which has been the top recipient of government subsidies since 2014, has yet to get its share of subsidies from the government since the start of the year even though the country is still in the middle of the Covid-19 pandemic. For this year, PhilHealth is set to receive its P79.99 billion subsidy under the P5.024-trillion 2022 national budget. Amid the Covid-19 pandemic, PhilHealth had the biggest share of subsidies last year with P80.98 billion or 43.8 percent of the total amount disbursed. For the month of May alone, government subsidies to GOCCs settled at P7.905 billion, crashing by 82.3 percent from P44.69 billion in the same month last year. Leading the list of top subsidy recipients for the month is still NIA with P6.26 billion, followed by the Civil Aviation Authority of the Philippines (P400 million), SBC (P200 million), Philippine Heart Center (P147 million), and Philippine Children’s Medical Center (P115 million). Amid the Covid-19 pandemic last year, GOCC subsidies dropped to P184.77 billion, the lowest level since 2018’s P136.65 billion. The Department of Finance earlier reported that cash dividends remitted by GOCCs since President Duterte took office in mid-2016 hit a record-high of P374.54 billion, the highest ever amount collected under any administration. This was also more than double the amount collected under the administration of the late President Benigno Aquino III at P164.81 billion and is also more than six times the equivalent of the P60.82 billion dividend remittances under the Arroyo administration, the Department of Finance (DOF) said on Wednesday. Under Republic Act 7656 or the Dividends Law, GOCCs are required to declare and remit at least 50 percent of their annual net earnings as cash, stock, or property dividends to the national government.

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Neda..

Continued from A1

One of the most serious wounds inflicted on the economy by the pandemic is due to education, he pointed out, as he stressed the need to address the losses in human capital development because the country’s long-term economic growth is at stake. His predecessor, Karl Kendrick T. Chua, earlier said online classes could result in production losses of P11 trillion over a 40-year period. Chua said in a Senate hearing that only 37 percent of the learning is absorbed via online classes in the Philippines, lower than the 52 percent estimated in the United States. “The need to fully recover is necessitated by the fact that the longer we linger, the more costly to the economy, to society. (This is) what I have been calling the economic and social scars created by the pandemic (that) were so deep and we would want to address that soon because otherwise that gets even aggravated,” Balisacan said. “The cost may not necessarily be appreciated now but definitely down the road, 5 years, 10 years from now when these children who are missing the human capital development will join the labor force, would not be as efficient or competitive as our neighbor’s children. So the long-term growth potential of the economy will be very much affected and we don’t want that to happen,” he stressed.

Looming food crisis

ANOTHER primary directive to Balisacan and the economic team is to address the “looming food crisis” as well as the sharp increase in commodity prices, foremost of which are oil prices. In order to address this, Balisacan said the government plans to provide assistance to the poor, despite the limited resources. This can be done through proper targeting which can be implemented through the National ID system. Balisacan said the Marcos administration intends to ramp up the implementation of the National ID in order to create a better targeting system through which assistance will be given to those who need it the most. By the end of April, some 10.5 million Filipinos or 33.7 percent of the target distribution had received their national IDs, according to the Philippine Statistics Authority (PSA). Based on the data, some 23.57 million PhilSys numbers have been generated as of May 5 and a total of 64.98 million have completed Step 2 as of May 4. He said having a good targeting mechanism in place will prevent the issues raised by Filipinos when it came to the ayuda during the pandemic. Balisacan said during the lockdowns, the government provided ayuda to all Filipinos, regardless of income status and their ability to purchase basic necessities. This, Balisacan noted, is “quite expensive” and added that a targeting system will be less costly and could reach

Steel...

more poor Filipinos through a digitized system such as the National ID. “We think that we can do better with limited resources if we can target those resources efficiently and one way of doing that is to get our processes in government digitalized quickly and an important element of that would be the national ID system,” Balisacan said. “So that we can have a way of delivering the assistance to the poor with the least leakage possible, and [we] can cover more poor.”

Priority for near-end infra

ON the spending side, Balisacan said the President wanted to prioritize Build, Build, Build projects that were nearing completion or already ongoing. He said these projects would receive priority funding from the government. However, when it comes to projects that are still in the pipeline, these will be reviewed. Balisacan said these will be re-evaluated based on the projects’ ability to generate jobs, which is the focus of the administration in the medium term (Full story here: https://businessmirror. com.ph/2022/06/30/job-focusedeconomic-blueprint-of-new-government-seen-to-cut-poverty/). Apart from job creation, Balisacan said, the projects will also be evaluated according to their perceived contribution to the country’s economic recovery; whether these are still viable; and how best to finance these projects. Six years ago, the BBB initiative was launched by the Duterte administration to usher in the “golden age” of infrastructure in the country. Finance Undersecretary Mark Dennis Joven said in an earlier briefing that the initiative is the “biggest and boldest” investment of its kind by the government. Joven said the total project cost of the BBB is P6.65 trillion and investment requirements of about P3.12 trillion. This has been undertaken not only to address the country’s infrastructure constraints but also lay the foundation so the Philippines can become an upper middle income country. Based on data shared by Department of Public Works and Highways (DPWH) Undersecretary Emil K. Sadain there were seven projects that have been completed and another 11 that could be completed by mid-2022. Sadain said, another 12 projects will be completed by the end of 2022. This means, the Duterte administration would have completed 18 of the 119 flagship projects contained in the current list. But, by the end of 2022, a total of 30 projects would have been completed. Sadain said this will leave 89 projects to be undertaken from 2023 and onward. This, they said, would be a good starting point for the next administration.

Continued from A10

Currently, SteelAsia has plants in Davao, Cebu, Misamis Oriental, Batangas and Bulacan. In March 2021, Yao said the Lemery Works steel plant is of national significance as it will reduce the country’s reliance on imports for important steel products needed for the government’s “ambitious” infrastructure program. SteelAsia said in its 2021 statement that constructing the plant’s steelmaking and steel section rolling production lines were suspended in 2020 due to lockdown measures amid the pandemic. Initially,

the country’s largest steelmaker said it is aiming to open for operations in Lemery, Batangas in 2023. The company broke ground in 2019. It is set to have a capacity of 1.1. million tons per year. The plant, according to SteelAsia’s 2021 statement, will produce infrastructure and heavy construction products such as H/I beam, sheet piles, heavy angles and channels. SteelAsia’s facility is seen generating at least 1,500 direct jobs and thousands more from ancillary industries and businesses, according to a statement in 2021.

State of calamity...

Continued from A10

Industry groups have been pitching various wish lists and action plans for Marcos to consider to address the problems of Filipino farmers and fishermen. The latest of these is a sevenpoint “Crisis Response Plan” bared by Bayanihan sa Agrikultura that outlined measures Marcos can undertake within the next 100 days to six months to avert “further decline” of the agriculture sector. Bayanihan sa Agrikultura, a coalition of nearly 100 agricultural

groups and associations, proposed the following measures: crafting of a social justice-anchored food sufficiency and trade policy, doubling of agriculture budget next year, revamp of agriculture officials, sustained stakeholders’ collaboration, review of certain laws such as the rice trade liberalization law, implementation of the Coconut Farmers Industry Development Plan and strengthening of partnerships with LGUs, civil society organizations and state universities and colleges.

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SC: ERC order on 2013 Meralco rates was to ‘protect consumers’ By Joel R. San Juan @jrsanjuan1573

HE Supreme Court (SC) has affirmed the order of the Energy Regulatory Commission (ERC) approving the request by the Manila Electric Co. (Meralco) for a staggered collection of automatic rate adjustments arising from generation costs for November 2013. In a 32-page decision penned by Associate Justice Jhosep Y. Lopez, the Court en banc held that the ERC’s decision to allow the staggered recovery of the adjustment charges while denying Meralco’s request for carrying costs was intended “to protect the interest of the consumers.” “States otherwise, the actions of the ERC were in accordance with the law and the rules, and results in a protection of the consumers who did not have to pay the adjustment rates in one bill,” the SC declared. “Accordingly, there can be no basis to ascribe grave abuse of discretion to the act of the ERC in issuing the December 9, 2013, letter-approval since all it did was to follow existing guidelines on the imposition of the generation rate,” it added. In a letter dated December 5, 2013, Meralco informed respondent ERC that the total cost of generation to be passed on to its almost-5 million captive customers amounted to P22.64 billion, equivalent to a generation charge for December 2013 billing of P9.1070 per kilowatt-hour (kWh). This is an increase of P3.44 per kwh from the P5.67 per kwh that was billed in the previous month.

Petitions consolidated

MERALCO attributed the abrupt increase in the generation cost to the supposed maintenance shutdown of the Malampaya facility. This facility supplies natural gas to three major power plants—Ilijan, San Lorenzo and Santa Rita—that, in turn, supply an aggregate capacity of 2700-megawatt (MW) electricity to franchise areas. Meralco further said that the shutdown of Malampaya coincided with the scheduled maintenance of two other plants—Pagbilao 2 and Sual 1—that also collectively contribute over 950 MW to its requirements. The company said because of the events, it was forced to buy expensive power from the Wholesale Electricity Spot Market. It also cited Section 2, Article II, of the “Guidelines for the Automatic Adjustment of Generation Rate and System Loss Rates by Distribution Utilities” (Agra Rules) in asserting that it was authorized to automatically reflect the full generation cost of P22.64 billion in its December 2013 billing to its customers. On December 9, 2013, respondent ERC approved Meralco’s request for a staggered collection but did not approve the power firm’s request to recover carrying costs. The ERC’s approval of the staggered imposition of the generation charge prompted the filing of several petitions that the Court ordered consolidated.

The petitioners include representatives from Party-list groups such as Bayan Muna, Gabriela Women’s Party, ACT Teachers Party-list and Kabataan Party-list, National Association of Electricity Consumers for Reforms, Federation of Village Associations and Federation of Las Pinas Homeowners Association.

Arguments vs ERC Ok

NAMED as respondents were the ERC, Meralco and the Philippine Electricity Market Corp. and power generation companies such as First Gas Power Corp., South Premiere Power Corp., San Miguel Energy Corp., Masinloc Power Partners Co. Ltd. and several others. In assailing the legality of the rate increase, the petitioners argued that the ERC committed grave abuse of discretion in approving Meralco’s proposal to pass on to consumers the increase in generation cost without complying with requirements. The groups noted that the proposal was approved without the conduct of a public hearing as required in the implementing rules and regulation of the Electric Power Industry Reform Act (Epira) or Republic Act 9136. They added that ERC’s approval of Meralco’s proposal to pass on to consumers the increase in the generation cost for November 2013 violates the Epira law. According to the petitioners, Section 43 of RA 9136 mandates the ERC to promote competition and penalize abuse of market power in the restructured electricity industry. They argued that the right of customers for due process has been violated when Meralco started increasing its rates without notice and public hearing. The petitioners added that no publication or public advisory in major publications of the rate increases.

Covid still one major cause of deaths in PHL–PSA data By Cai U. Ordinario @caiordinario

WO years on, Covid-19 remains one of the major causes of mortality in the country based on the first quarter data on deaths released by the Philippine Statistics Authority (PSA). Registered deaths due to Covid-19 accounted for a total of 6,770 deaths, or 7 percent of the total registered deaths from January to March 2022. Covid-19 with virus identified was the 6th-leading cause of death in the country with 5,031 cases or 5.2 percent of the total deaths while Covid-19 with virus not identified accounted for 1,739 or 1.8 percent of the total deaths, making it the 12th leading cause of death “By classification, Covid-19 with virus identified and Covid-19 virus not identified were both included in the 15 leading causes of death,” the PSA said. Based on the data, out of the 6,770

deaths due to Covid-19, 28.3 percent or 1,917 cases were recorded in the National Capital Region (NCR) in the January to March period. Of this number, 22.5 percent or 432 Covid deaths were recorded in Quezon City while 16.7 percent or 321 deaths were in the City of Manila in the first three months of the year. This was followed by Caloocan, Pasig, and Las Piñas which recorded 174 deaths or 9.1 percent of the total; 161 or 8.4 percent; and, 99 or 5.2 percent of the total Covid deaths in NCR in the first quarter, respectively. Apart from NCR, other regions nationwide that recorded the highest Covid deaths included Calabarzon with 1,138 deaths or 16.8 percent of the total Covid deaths recorded in the first three months of the year. This was followed by Central Luzon with 948 deaths or 14 percent of the total; Western Visayas, 450 deaths or 6.6 percent of the total; and Cagayan Valley, 410 deaths or 6.1 percent of the total Covid-deaths

in the first quarter. Meanwhile, the top three causes of death in the country from January to March of 2022 were ischemic heart diseases, cerebrovascular diseases, and neoplasms. “These were also the leading causes of death in the same period in 2021,” PSA said. From January to March of 2022, ischemic heart diseases were the leading cause of death with 18,601 cases or 19.2 percent of the total deaths in the country. Meanwhile, cerebrovascular diseases came in second with 10,044 deaths or 10.4 percent share of all causes of death in the first quarter of the year. Neoplasms, commonly-known as “cancer,” were the third leading causes which accounted for 8,926 recorded cases or 9.2 percent of deaths from January to March 2022. Deaths due to diabetes mellitus recorded 6,151 cases or 6.3 percent share, making it the fourth leading

IN dismissing the petitions, the SC held that ERC’s actions were in accordance with the provisions of the Epira and Agra Rules. It noted that Section 43(k) of the Epira gives the ERC the power to monitor and take measures to penalize market power, cartelization and anti-competitive or discriminatory behavior of any participant in the energy industry. “There is no dispute that this power, as well as all the other powers given to the ERC as a regulator, allows the ERC to review, confirm and verify the costs as imposed by Meralco,” the SC noted. On the other hand, Section 1, Article VIII of the Agra Rules gives the ERC the power and discretion to allow an exemption from the Agra mechanism, the High Tribunal said. “Considering that the ERC has not been shown to have violated any law or issuance in the December 9, 2013, letter-approval, a finding of grave abuse of discretion has therefore no leg to stand on,” the SC ruled. “Accordingly, declaring as null and void the ERC’s December 9, 2013 letter-approval for having been issued with grave abuse of discretion is clearly not warranted.”

hopeful that “beleaguered and tormented wives can soon be liberated from irretrievably dysfunctional marriages or inordinately abusive marital relations.” “Not being able to get out of a loveless, unhappy, even abusive, marriage is a human rights concern for women. The right of women to live free of physical, emotional, and psychological violence is a human right. The right of women not to live in fear is a human right. The right of women to remunerative work and economic independence is a human right. The right of women to autonomy in all aspects of their lives is human right,” the lawmaker added.

Jovee Marie N. Dela Cruz

cause of death, while deaths due to hypertensive diseases, which ranked fifth recorded 5,642 cases or 5.8 percent share. Last week, the Department of Health (DOH) on Friday reported that national and all regions in the country have registered continued rise in new Covid-19 infections in recent weeks with 88 percent of provinces, highly urbanized cities (HUCs), and independent component cities (ICCs) across all island groups showing an upward growth in cases. Health Undersecretary Maria Rosario S. Vergeire, however, stated in a report to the media on the Covid situation in the country as of July 1, these increases have “not” translated to increases in other metrics as average daily attack rates and hospital utilization rates remain at low risk in majority of these areas. For June 25 to July 1, the DOH said that there are 6,399 new Covid cases, placing to 3,705,649 the total number of cases in the country as of July 1.

All flood control projects operational –MMDA’s Melgar By Claudeth Mocon-Ciriaco @claudethmc3

In accordance with rules

Bill making divorce legal re-filed in 19th Congress

BILL seeking to legalize divorce in the country has been re-filed in the 19th Congress. In House Bill (HB) 78, Albay Rep. Edcel C. Lagman, the principal author of previous bills legislating absolute divorce, underscored that there are only two sovereign states in the world where divorce is illegal—the Philippines and the Vatican City. “The Philippines is the only country, aside from the Vatican, which remains to outlaw absolute divorce even as the Catholic hierarchy grants canonical dissolution of marriage,” he said. According to Lagman, all other Catholic countries recognize absolute divorce in varying degrees of liberality. But Lagman said he is finally

Editor: Vittorio V. Vitug • Monday, July 4, 2022 A3

CENTRAL BARK

A dog lover and her dog is seen here at the newly-opened Central Bark 2 park at the Bonifacio Global City commercial and business district, Taguig City. The park offers more than 800-square meters of space where dogs of all sizes can run and play to their heart’s delight. This new off-leash dog park has been designed with the dog’s enjoyment in mind, a statement from park operators said. To ensure everyone’s safety, well-trained park rangers are present at all times to supervise the canines as they romp and play around with other pooches. NONIE REYES

ACADEMICS FORWARD IDEAS FOR PUBLIC TRANSPORT DEVT By Rizal Raoul S. Reyes @brownindio

CADEMICIANS from the University of the Philippines called on the national government to consolidate governance on public transportation and adopt inclusivity by including small operators and commuters in the modernization of the sector. In a recent study, the Japan International Cooperation Agency (JICA) estimated pre-pandemic traffic congestion costs the Philippines approximately $25 billion per year or almost P 1.4 trillion, over 25 percent of the 2022 national budget. In a policy paper authored by UP professors, the study noted different administrations have attempted to solve the traffic problem with modicum success. The study proposes an option of creation of a unified public transport authority that would do away with the “labyrinth of government,” leading to inconsistent policies and programs. Cresencio M. Montalbo, University of the Philippines School of Urban and Regional Planning Professor, urged the Marcos administration to form a single entity for the planning and operations and monitoring of public transports. Today, however, he points out that the public transportation system is composed of at least eight agencies: the Department of Transportation

(DOTr); Land Transportation Franchising and Regulatory Board (LTFRB); Department of Interior and Local Government (DILG); and, the Metropolitan Manila Development Authority (MMDA). The study warned the traffic situation will be exacerbated if the country opens up its streets. In 2021, a TomTom International B.V. Traffic Index showed Metro Manila was the 18thmost congested city in the world and 6th-most congested city in Asia with a 43-percent congestion level. The index ranks urban congestion worldwide and provides free access to city-by-city information covering 404 cities across 58 countries on six continents. The Amsterdam-based company said that 43-percent average congestion level means that on average, travel times were 43-percent longer than during the baseline noncongested conditions.

Involvement, e-vehicles

FOR UP National College of Public Administration and Governance Professor Noriel Christopher C. Tiglao, modernizing the country’s transportation system goes beyond replacing archaic vehicles. Tiglao said it needs to involve bus and jeepney operators, drivers and commuters whose livelihood and incomes are affected. Moreover, he said there is a need to review and continuously take stock of the stakeholders’ responses and

even the commuters’ responses to the policy performance of the public utility vehicle modernization program (PUVMP). As part of the efforts of the UP Covid-19 Pandemic Response Team, UP Diliman built a mobile app called ‘Safe Travel PH,” Tiglao noted. He said this app helps users “to see the road and traffic incidence real-time.” The users are also “able to see the public transport utility vehicles and the estimated travel time and their occupancies.” The app also helps commuters report road and traffic incidents related to lockdown. Meanwhile, UP Electrical and Electronics Engineering Institute Professor Lew Andrew Tria said it is high time the Philippines should also think about going electric and start replacing conventional vehicles, especially in public transportation. Tria urged the government to take a serious look what several countries in phasing out conventional or internal combustion engine vehicles. “In some countries, they’re already targeting 2030 or even 2040 that they will go full electric. If we don’t think about going electric, we might be the last country to still use conventional vehicles (ICE) vehicles, and the danger of that is there will be no suppliers for us for these conventional vehicles, and we might end up with just surplus or old vehicles coming from other countries,” Tria explained.

FTER delays were flagged by the Commission on Audit (COA) in 2021, flood control projects have been “substantially completed” in 2022, the top official of the Metropolitan Manila Development Authority (MMDA) said last Sunday. Baltazar N. Melgar, head of the MMDA Flood Control and Sewerage Management Office (FCSMO) that “these flood mitigating projects are operational and serviceable this year.” “Now that we are slowly returning to normal following measures and restrictions to curb Covid-19, we are reassessing and recalibrating our processes to ensure timely completion of our flood control projects,” Melgar, who is currently the officerin-charge (OIC) of MMDA being its most senior highest-ranking career official, added. He further explained that the programmed 59 flood control projects in Metro Manila for 2021 were not completed or left unfinished due to several factors. These reasons, according to Melgar, include the following: delayed procurement process due to the Covid-19 pandemic; late or pending issuance of clearances from local government units and other concerned government offices; right-of-way issues; relocation of informal settler families; change in order due to additional items/ realignment of activities based on current situation/conditions on site upon implementation; and, restrictions on worker and equipment mobility brought by the pandemic, among others. According to Melgar, the COAreported “projects are only minor ones like pipe-laying, drainage and riverbank improvements and rehabilitation of waterways leading to agency-operated pumping stations.” He added that during the rainy season, all pumping stations of the agency are working at full capacity, with the necessary power and fuel in place. The agency operates 77 pumping stations in strategic locations in Metro Manila. Also, flood-mitigation activities aimed at de-clogging and cleaning up waterways such as creeks and esteros (estuaries) are conducted allyear-round with the aim of maximizing the conveyance capacity of open waterways and prevent flooding.

A4 Monday, July 4, 2022 • Editor: Vittorio V. Vitug

Economy BusinessMirror

www.businessmirror.com.ph

Housing sector moves to address rising cost of construction inputs A

1% population increase seen to temper rise in poverty rate

By Cai U. Ordinario @caiordinario

S construction material prices continue to increase, the Subdivision and Housing Developers Association (SHDA) said it is meeting with major suppliers and producers of construction materials and other inputs to help cushion the impact of soaring prices. The increase in the prices of wholesale construction materials in Metro Manila approached the double-digit mark in May due to more expensive fuels and lubricants, according to the Philippine Statistics Authority. (Full storyhere:https://businessmirror. com.ph/2022/06/28/wholesaleprice-hike-of-ncr-constructionmaterials-blamed-on-costlier-oilproducts/) Efforts to encourage developers to build more economic housing units, despite the spike in construction materials, include the recent increase in the price ceiling for these housing units to P2.5 million. The hike in the price ceiling was green-lighted by the Department of Human Settlements and Urban Development (DHSUD) and the National Economic and Development Authority (Neda).

“The housing industry is, likecan be developed. wise, affected by the increases in The DHSUD and Neda recently prices of all inputs to production; signed the joint approval on the adbut due to price controls, much of justment of the price ceiling for ecoproduction in socialized level has nomic housing from P1.7 million to been unprofitable and production P2.5 million. has been discouraged. This The resolution states is why the price-ceiling adthat for the projects with EXCLUSIVE justment, due some years existing licenses to sell, ago, is needed to encourage the new price ceiling will be housing production for our countryapplied to unconstructed economic men,” SHDA Chairman George Siy housing units, while unsold units told the BusinessMirror. have to sustain the old price ceiling. “SHDA has also been meeting “The economic incentives and with major suppliers and producers more attractive homes built that folof construction materials and other low the adjustments will definitely inputs to production to make special encourage more construction, as well arrangements for bulk purchase, as a wider market reach,” Siy said. bundling of products and other arHe also hopes that efforts to rangements to ease up the increase in simplify rules and regulation in the pricing of these materials and ensure permitting and licensing process; the steady access and supply,” he added. establishment of one stop processSiy said the costs of inputs to ing centers; and the digitization and production of housing units have all computerization in the transactions increased. This includes land, labor, with government offices continue to construction materials and the cost make housing more affordable for all. of doing business and the delays in Siy said with the current ecosysadjustments of prices have discourtem in housing sector permit and aged production. licensing processes, developers have But, he explained that the adto contend with 27 offices, 78 perjustments in the price ceiling for mits to surmount, 146 signatures housing will have positive reperto comply with and a total of 373 cussions for housing as more homes documents to produce.

Nonetheless, he said, the red tape and time frames have been reduced with the help of the DHSUD and the Anti-Red Tape Authority (ARTA). “We continue to monitor and provide feedback to the government in this regard, especially the experiences of the development at the regional levels and in their transactions with the other government agencies as well. Many improvements are still being discussed,” Siy said. Apart from these, he said there is a need to gain more access to sustainable funds for housing which will also affect private sector participation. He added that housing activities are also influenced by regulations and incentives extended to stakeholders, as well as costs. These include provisions of Republic Act 7279—or also known as Urban Development and Housing Act of 1992—on incentives for private developers and the corresponding recognition of adjustment levels by the Board of Investments of the Department of Trade and Industry. Siy said others on the list are the inclusion of housing initiatives in the Strategic Investment Priority Plan and the inclusion of these incentives in the DHSUD’s Housing Development Plan.

DOT resumes accreditation of tour operators to handle Chinese visitors By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE Philippines has reopened its doors to tourists from mainland China, once among the country’s top leisure markets. In a memorandum on June 28, 2022, then Tourism Officer-in-Charge/Secretary Edwin R. Enrile informed Department of Tourism (DOT)-accredited tour operators that visa issuance to Chinese tour groups would be resumed under Joint Circular 2015-001 of the Department of Foreign Affairs (DFA), Department of Justice and Bureau of Immigration (BI). “In view of the lifting of visa and entry-related restrictions in the country by the Inter-Agency Task for the Management of Emerging Infectious Diseases Resolution 165 2022, the [DOT] is resuming the acceptance of applications for endorsement to the DFA of DOT-accredited tour operators who wish to handle tour groups from the People’s Republic China. Accordingly, pre-pandemic visa requirements and procedures shall be reinstituted,” Enrile said. The Tourism Congress of the Philippines (TCP) welcomed the decision of the government to lift the restrictions on the entry of Chinese tourists. TCP President Jose C. Clemente III told the BusinessMirror that “reinstating the rules for visa issuances for Chinese tour groups will help generate more revenues for the tourism industry, which needs to

urgently reboot and recover.” “The Chinese used to be among the top arrivals in the Philippines and with their return, I would think they would take their rightful place again among the top foreign tourists in the country,” Clemente told this newspaper. Still, Clemente said: “We just have to continue to remind them and our other foreign guests, to strictly follow the minimum public health standards such as wearing of masks and constantly washing their hands with soap and water, or using hand sanitizers.”

Non-essential travel discouraged

MAINLAND China, however, continues to restrict the outbound travel of its citizens for “non-essential purposes” as it tries to prevent anew the spread of Covid-19. Its Ministry of Culture and Tourism reiterated last March 30 that Chinese travel agents still cannot sell outbound group tour packages. Data provided by the DOT showed though 7,249 arrivals from mainland China from April 1 to June 30. In 2019, prior to the pandemic, the Philippines received a historic-high 8.26-million foreign tourists. Mainland Chinese ranked second among the top tourist arrivals at 1.74 million, after South Koreans, which ranked first with close to 2 million visitors. In third place were Americans at 1.06 million. Filipino tour operators who want to apply to handle Chinese tour groups have to submit a notarized affidavit of guarantee addressed to the DOT Undersecretary of Tourism Regulation, Coordination and Resource Generation; a letter of guarantee addressed to the Philippine Consulate General; a copy of the Consulate Authentication with Red Ribbon; a signed and sealed Cooperation Agreement with a Chinese National Tourism Association-accredited travel agency valid not more than three years; and a copy of a valid accreditation certificate. Tour operators who want to renew their permits only have to comply with the first two requirements and submit a photocopy of previous letters of endorsements. “Once approved, DO shall provide a copy of the drysealed letter of endorsement to the DOT-accredited tour operator, the office of the Philippine Consulate or to the Embassy of the Republic of the Philippines in Beijing, the DFA-Office of Consular Affairs and BI,” Enrile said. The letter of endorsement is valid for six months from the date of its issuance; but shall in no case exceed the validity of the tour operator’s DOT accreditation.

He also said this new term will ONE-percent increase in the advocate for the Filipino families’ country’s population annuimproved quality of lives through ally will allow the administradecent living wages across the archition to attain its goal of a single-digit pelago, among others. poverty incidence by 2028, according “Key policies on family planning to the Commission on Population for all and a living wage policy which and Development (Popcom). addresses regional poverty thresholds Popcom Executive Director and will be pursued by Popcom from the Undersecretary for Population and start,” Popcom said in a mesDevelopment Juan Antosage to reporters last Sunday. nio A. Perez III, who was reEXCLUSIVE In April 2022, a study by appointed at the Popcom, the University of the Philipsaid this will form part of pines (UP) Population Institute found the proposed Philippine population that each Filipino worker is supporting and development program for the more than two consumers, making years 2022 to 2028. less room for savings and investment Perez told the BusinessMirror in their incomes, a major roadblock that this will be presented to the adin reaping the demographic dividend. ministration possibly next month, UP Demographer Michael Domidepending on the availability of nic C. del Mundo said the country’s other officials. support ratio is at 0.43 before the “This (1 percent) will be a level of pandemic. This is below the recompopulation growth that will be commended 0.5 support ratio that each patible with economic growth, we country must have in order to reap believe,” Perez told this newspaper the demographic dividend. over the weekend. “It means adding The demographic dividend, del around 1 million to the population Mundo said, is not only about bringannually (births minus deaths).” ing fertility rates down but also enBased on the latest Philippine suring that the population is able Statistics Authority (PSA) data, there to earn, consume, save and invest. were a total of 147,692 births in the According to the study, since the first quarter of 2022 while there were country’s average support ratio is a total of 97,042 Filipinos who died 0.43, which is still below the threshduring the period. old of 0.5, one effective worker is supGoing by the explanation of Perez porting 2.33 effective consumers or and using PSA data, a total of 50,650 simply put 100 effective workers in Filipinos have already been added to the country are supporting 233 efthe country’s population in the first fective consumers. three months of the year. The number being supported by In 2021, there were a total of each worker takes into consider1.31 million Filipinos born while ation the workers and two or more there were 853,074 who died durfamily members who are considered ing the period. This means a total non-productive consumers or those of 456,527 Filipinos were added to who could not economically supthe country’s population. port themselves. Meanwhile, Perez said this his Del Mundo explained some of the renewed tenure in the government non-productive consumers are those agency will enable the uninterrupted between the ages of 15 to 64 who are implementation of the country’s renot earning a living. In order to reap productive health and family planthedemographicdividend,eachworker ning programs and upholding sexual must be able to support himself or herand reproductive health and rights of selfplusonefamilymember. Cai U. Ordinario couples, individuals and adolescents.

Bill seeks to hike paid-up capital of Landbank, DBP By Jovee Marie N. Dela Cruz @joveemarie

EYTE Rep. Martin G. Romualdez has filed the first bill in the 19th Congress strengthening the capacity of the government financial institutions by increasing the paid-up capital of the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP). Romualdez authored House Bill 1, titled “An Act providing for Government Financial Institutions (GFIs) Unified Initiatives to Distressed Enterprises for Economic Recovery, or Guide.” This bill seeks to allocate P7.5 billion to Landbank and P2.5 billion to the DBP, according to the lawmaker. In the 18th Congress, the bill strengthening the three GFIs was filed by former Quirino Rep. Junie E. Cua. It was approved by the House but failed to pass through the Senate. “The proposed legislative measure seeks to strengthen the capacity of the Landbank and the DBP to provide the needed assistance to micro, small and medium enterprises (MSMEs) and other strategicallyimportant companies (SICs),” the bill’s explanatory note stated. “To this end, the [GFIs] are mandated to expand their credit pro-

grams in order to assist MSMEs to meet their liquidity needs. In particular, the [Landbank] and the DBP are mandated to expand their credit and rediscounting facilities to affected MSMEs in the agriculture, infrastructure, manufacturing and service industries,” it said. Under the bill, the term MSME “refers to any business activity or enterprise engaged in industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, must have value falling under the following categories: micro, not more than P3 million; small, P3 million to P15 million; and, medium, P15 million to P100 million.” The proposed “Guide” bill also increases DBP’s capital stock from P35 billion to P100 billion divided into one billion shares of P100 each to be fully subscribed by the national government. The President may increase the bank’s capitalization upon recommendation of its board and the concurrence of the Secretary of Finance. Landbank would be mandated to rediscount loans to eligible MSMEs.

Online lender sees ‘a lot of space’ in open banking By Rizal Raoul S. Reyes @brownindio

XECUTIVES at Digido Finance Corp., operator of financial mobile app “UnaCash,” are unfazed at the slow Internet connectivity in the country because of opportunities offered in “open banking.”

“Internet connectivity is a big deal; but there’s a lot of space to improve in open banking,” Digido Finance CEO Nikita Saigutin said during a recent news briefing in Makati City. “Definitely, it affects the transactions; but it’s the reality.” “Open banking” is the system of using third-party applications for access and management of consumer

banking and financial accounts. Saigutin said the company aims to capture the informal lending sector, popularly known as “5-6” money lending. He explained the move is part of the company’s plan to expand its presence in the country and reach out to the unbanked sector. Although a big number of the unbanked population are not

smartphone users, Saigutin expressed confidence the company can penetrate this sector as the digitalization of markets go into full swing. Right now, the financial inclusion gap remains to be a major challenge in the banking sector in the Philippines, he further said. In response, Digido Finance formed a partnership with over a hundred merchants, he added.

Agriculture/Commodities BusinessMirror

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Editor: Jennifer A. Ng • Monday, July 4, 2022 A5

Govt culls layers to prevent spread of bird flu By Jasper Emmanuel Y. Arcalas @jearcalas

HE Philippines culled nearly 300,000 birds, mostly chicken layers, to prevent the spread of avian influenza (AI) in the country, the latest government data showed. The Bureau of Animal Industry (BAI) said that as of June 24 a total of 286,934 birds were culled by the government, of which 66.38 percent or about 190,468 were chicken layers. BAI data showed that the government also culled 47,667 ducks, 27,574 quails, 750 native chickens and 575 other birds. The attached agency of the Department of Agriculture said a certain farm owner conducted a pre-emptive culling of 19,900 broiler breeders. The agency said the government has indemnified affected poultry farmers who received a total of P24.831 million. Based on its latest tally, BAI said bird flu cases in the country were confirmed in 95 barangays in 53 municipalities across 14 provinces in 8 regions nationwide. The BAI said 133,160 birds died due to the disease, bringing the total death count (mortalities and culled) to 420,094 birds. Chicken layer accounted for the

bulk of the recorded mortalities as of June 24 at 64,772 followed by quail at 55,616. As of June 24 there were 10 ongoing bird flu cases out of the 142 confirmed cases nationwide. The government has resolved 132 bird flu cases since the resurgence of highly pathogenic avian influenza (HPAI) in February. (Related story: https://businessmirror.com. ph/2022/02/22/phl-reports-newavian-flu-outbreaks-in-centralluzon-farms/) The BAI disclosed that the confirmed cases of AI subtype H5N1 were recorded in the provinces of Bulacan, Pampanga, Nueva Ecija, Tarlac, Bataan, Laguna, Camarines Sur, Sultan Kudarat, Benguet, North Cotabato, South Cotabato, Davao del Sur, Maguindanao and Isabela. “The new municipalities with recorded AI cases were Bacolor and Santo Tomas in Pampanga and the municipality of Lutayan in Sultan Kudarat,” BAI said. “Among the possible sources of infection and spread of the virus in the affected areas are the presence of migratory or resident wild birds, late or non-reporting of suspect cases (sick/dying birds) and illegal movement of infected birds from H5N1 infected areas as per disease

THIS BusinessMirror file photo shows trays of eggs gathered from a poultry farm in San Isidro, Isabela.

investigation conducted by veterinary authorities.” The BAI said farms of poultry raisers in the provinces of Davao del Sur, Laguna and Camarines

Sur have been cleared of bird flu, in accordance with existing rules and regulations. Under the government’s 2020 AI Protection Program Manual of Pro-

cedures, approval of repopulation in an infected farm takes place for about 90 days or more after pertinent control measures, such as culling, cleaning and disinfection, and

Iba Botanicals imports agarwood seedlings from India By Jonathan L. Mayuga @jonlmayuga

HE first batch of 25,000 live agarwood-producing tree seedlings imported from India arrived in the Philippines, according to the chief executive of Iba Botanicals. “With the arrival from India today by air, Iba Botanicals became the world’s first importer of live agarwood seedlings in full compliance with the Convention on International Trade in Endangered Species (CITES),” Ben Mead,

founder and CEO of Iba Botanicals, told the BusinessMirror. Agarwood is the most expensive forest product in the world. Agarwood chips, obtained from the heartwood of Aquilaria species like the Aquilaria Malaccensis or locally known as lapnisan which is a naturally-occurring species in the Philippines, can fetch up to $100,000 per kilo. However, lapnisan is also an endangered species which is why the Department of Environment and Natural Resources (DENR) strictly prohibits the harvesting from the

wild of agarwood or any of the byproducts of lapnisan. As a strategy to prevent its extinction in the wild, the DENR through its Biodiversity Management Bureau (BMB) is promoting the commercialization of Aquilaria trees. However, it requires those interested to venture into establishing agarwood production to secure all the necessary permits from concerned government agencies, particularly the DENR-BMB. Among the first to secure special permits to import and establish lapnisan in the Philippines is Iba Botani-

cals, which, as part of its advocacy, is promoting institutions and individuals to venture into agarwood production as the company’s partners. “We are planning to put up agarwood plantations in Lipa, Batangas, and in Mindanao,” said Mead. This year alone, Iba Botanicals has a permit to import 350,000 live agarwood-producing seedlings. In the next few months, the company said the seedlings will arrive in the country. Mead said they complied with strict regulatory requirements in importing the agarwood-producing

tree seedlings. “We had to secure permits from 8 different agencies in India, and 3 here in the Philippines,” he said. Iba Botanicals is a pioneer in the Philippine essential oils and natural extracts industries. Among its products are Ylang Ylang essential oils, Vetiver grass oil, and Elemi Essential oil. It is planning to produce agarwood chips and essential oils in the next few years while reselling its imported agarwood-producing tree seedlings to institutional and individual buyers.

Commodities hit July storm with Putin and Powell stirring fear

OMMODITIES are careering into a second half that promises as much turmoil as the first, with the world facing an escalating energy crisis, copper plunging on Fed-fueled recession fears, and Russian President Vladimir Putin delivering a shock for Shell Plc. Russia’s move to reshuffle ownership of the Sakhalin-2 gas plant spells trouble for Shell’s plan to offload its stake. An analyst in Japan warned it “could even trigger a panic” in liquefied natural gas markets—although Moscow said Putin’s decree isn’t a threat to supplies, and isn’t nationalization. Energy crises and central bank moves to crush inflation present powerful headwinds across markets, underscored by copper’s collapse Friday below $8,000 a ton. Next week’s minutes of the last Federal Reserve meeting should give more detail on the bank’s thinking. There’s also the United Nations’ annual report on food security, which comes ahead of an important month for the war-

torn wheat market.

Putin’s latest gambit

JUST as Europe’s fears over Russian gas supplies reach fever pitch, the man in the Kremlin unleashed another energy surprise. Putin delivered a bombshell for foreign investors in Sakhalin-2, including Shell as well as Japan’s Mitsubishi Corp. and Mitsui & Co. Rights to the project will be

vested in a new Russian company, with zero compensation for those who opt out. What exactly this means isn’t yet clear. But the move threatens to complicate Shell’s efforts to sell its 27.5 percent stake, and casts a cloud over the future of gas supplies to Japan, which depends on Russia for about 9 percent of its imported LNG. Expect to hear more on how Japan might go about replacing Russian gas imports

—a task that’s made tougher because Europe is doing the same.

an option Economy Minister Robert Habeck has so far resisted.

Nothing but trouble

Manic metals

EUROPEAN gas and power markets are in turmoil and the energy crisis has barely begun. The single biggest risk in coming weeks is that the Nord Stream pipeline—Europe’s key channel for gas from Russia— is not restarted after 10 days of maintenance that begin July 11. Regardless of the outcome there, Europe’s politicians are under intense pressure to act immediately to avoid even deeper troubles when winter arrives. The focus remains on heavy consumer Germany, which already raised its gas risk level to the second-highest “alarm” phase, tightening monitoring of the market and rebooting some coal-fired power plants. The next step could be more stringent steps to spur demand destruction. Allowing utilities to pass on higher costs to customers would speed rationing of supplies, but that’s

IF copper really is a barometer of the world economy, we should be getting worried. The metal used in electrical wiring just tumbled below $8,000 a ton for the first time since early 2021. The gathering drumbeat of warnings about a global recession is weighing on all metals, and China’s tentative recovery has so far prompted a collective shrug from investors. What next? Some steady, non-surprising data from major economies should help steady nerves. Investors will also scrutinize the Fed minutes on Wednesday for clues on what their July meeting might bring. But there’s not much in the short term that bodes well for copper, with the major risks pointing downward: further escalation in Europe’s energy crisis could trigger a deeper sell-off in coming weeks and put $7,500 a ton in view. Bloomberg News

sentineling, are completed. The DA has updated its guidelines on the movement of live poultry and non-poultry and poultry products and by-products following recent developments in the country’s AI situation. The DA issued Memorandum Circular (MC) 27 that outlined the new rules and regulations, which superseded MC 16. “To ensure supply chain continuity and local food sufficiency, the movement of different poultryrelated commodities will be allowed subject to additional safety measures to prevent the further spread of HPA1 to the remaining disease free areas in the country,” the DA said in MC 27. Under MC 27, the inter-island transport of live birds (poultry and non-poultry) from Region 5 and four other regions in Mindanao (Regions 9, 10, 11, 13) has been temporarily banned. MC 27 also stipulated that the movement of gamefowls, especially from bird-flu free regions in Mainland Luzon, is now allowed subject to AI testing rules. The DA has given its go-ahead to the limited movement of pigeons from bird-flu free areas in Mainland Luzon, Visayas and Mindanao subject to pertinent rules and regulations.

NIA inaugurates building in Zamboanga del Sur

FFICIALS of the National Irrigation Administration (NIA) inaugurated the agency’s new office building in Pagadian City in Zamboanga del Sur. NIA Administrator Ricardo R. Visaya said the new home of NIARegion 9 will rise on the 6,107.82 square meters lot donated by the Pagadian City government. Once completed, the three-storey with roof deck Administrative Building, with a total floor area of 966 sq. m., will accommodate the transfer of regional office personnel from Labangan, Zamboanga del Sur. Aside from its Administrative Building, the new regional office complex will have a three-storey Guest House and 442-square-meter Covered Court. The project has a total project cost of P150.173 million. Executive Order (EO) 429 was signed in 1990 reorganizing the administrative regions of Mindanao and designated Pagadian City as the regional government center and Zamboanga City as the commercial and industrial center of Zamboanga Peninsula to ensure the effective delivery of the field services of government employees. Pursuant to EO 429, Memorandum Circular 75 was inked in 2004, directing the transfer of all regional offices from Zamboanga City to Pagadian City, except the Department of Trade and Industry, Department of Labor and Employment, and Department of Tourism. Aside from Visaya, local government officials and officials of the Department of Agriculture in the region as well as officials and personnel of NIA-Region 9 attended the inauguration.

PSA asks DA to conduct study on rice classification T

HE Philippine Statistics Authority (PSA) has recommended to the Department of Agriculture (DA) the conduct of a study on rice classification to better capture consumer preferences. The survey also aims to determine the impact of consumer preferences on rice prices. The formulated rice classification system was presented by the DA Policy Research Service

(PRS) during the second quarter meeting of the National Banner Program Committee on Rice last June 24. Based on the actual samples of rice examined by the Philippine Rice Research Institute, National Food Authority, and PSA during their workshop, the working group concluded that it is easy to determine the ordinary rice from the special rice and the regularly milled from the well-milled. This is because

these labels are already being used in some markets. Meanwhile, no tags/labels are being used to classify the percentage of broken grains. As a result, the working group identified the following as the important variables to include in the rice classification: type of rice; milling degree; and percent of broken grains. Given that other government agencies also use different rice classification systems in serving their

mandates, the committee agreed to draft a policy resolution that recommends the harmonization of the rice classification systems used by the Bureau of Customs, Tariff Commission, PSA, and DA. A resolution also passed to ensure the broad-based participation of farmers in consultations regarding the rice tariffication law. Meanwhile, the Bureau of Soils and Water Management (BSWM) updated the Committee on the sta-

tus of the distribution of soil test kits (STKs) nationwide, as part of the implementation of the Philippine Council for Agriculture and Fisheries’ Resolution No. 19, Series of 2020. BSWM reported that a total of 810 soil test kits (STKs) were distributed in 154 municipalities in 2021 while 190 STKs were already disseminated in 38 municipalities this year. The distribution of STKs also

became part BSWM’s Balanced Fertilization Strategy (BFS). This science-based farming method focuses on the use of cost-efficient and proper combinations of organic and inorganic fertilizers to address the rising cost of fertilizer and sustain growth in rice productivity. The soft launching of BFS was held in six provinces—Nueva Ecija, Aklan, Capiz, Bohol, Samar, and Masbate.

The World BusinessMirror

A6 Monday, July 4, 2022

Russians press assault on eastern Ukrainian city By Maria Grazia Murru The Associated Press

YIV, Ukraine— Russian forces pounded the city of Lysychansk and its surroundings in an all-out attempt to seize the last stronghold of resistance in eastern Ukraine’s Luhansk province, the governor said Saturday. A presidential adviser said its fate would be decided within the next two days. Ukrainian fighters have spent weeks trying to defend the city and to keep it from falling to Russia, as neighboring Sievierodonetsk did a week ago. “Over the last day, the occupiers opened fire from all available kinds of weapons,” Luhansk Gov. Serhiy Haidai said Saturday on the Telegram messaging app. A river separates Lysychansk from Sievierodonetsk, and Oleksiy Arestovych, an adviser to the Ukrainian president, said during an online interview late Saturday that Russian forces had managed for the first time to cross the river from the north, creating a “threatening” situation. He said they had not reached the center of the city, but control over Lysychansk would be decided by Monday. Volodymyr Nazarenko, the second in command of the Svoboda battalion who was part of the June 24 retreat from Sievierodonetsk, said the Russians had “methodically leveled” the city. He described how Russian tanks targeted one building after another, moving on after each one was destroyed. “So they use these tactics where barrages of ammunition are used

Local officials stand in front of a damaged residential building in the town of Serhiivka, located about 50 kilometers (31 miles) southwest of Odesa, Ukraine, on July 2, 2022. A Russian airstrike on residential areas killed at least 21 people early Friday near the Ukrainian port of Odesa, authorities reported, a day after the withdrawal of Moscow’s forces from an island in the Black Sea had seemed to ease the threat to the city. AP Photo/Maxim Penko

to destroy the city and turn it into a burnt-down desert,” Nazarenko said from the relative safety of Bakhmut, a city to the southwest. He also said Russian troops “obliterated any potential defensive positions with constant artillery and burned down forests to prevent trench warfare.” Lu hansk and neighbor ing Donetsk are the two provinces that make up the Donbas, where Russia has focused its offensive since pulling back from northern Ukraine and the capital, Kyiv, in the spring. Pro-Russia separatists have held portions of both eastern provinces since 2014, and Moscow recognizes all of Luhansk and Donetsk as sovereign republics. Syria’s government said Wednesday that it would also recognize the “independence and sovereignty” of the two areas and work to establish diplomatic relations with the separatists. In Slovyansk, a major Donetsk city still under Ukrainian control, four people died when Russian forces fired cluster munitions late Friday, Mayor Vadym Lyakh said on Facebook. He said the neighborhoods that were hit didn’t contain any potential military targets. The leader of neighboring Belarus, a Russian ally, claimed Saturday that Ukraine fired missiles at military targets on Belarusian territory several days ago but all were intercepted by the air defense system. President Alexander Lukashenko described it as a provocation and noted that no Belarusian soldiers are fighting in Ukraine. There was no immediate response from the Ukrainian military. Belarus hosts Russian military units and was used as a staging

ground for Russia’s invasion. Last week, just hours before Lukashenko was to meet with Russian President Vladimir Putin, Russian long-range bombers fired missiles on Ukraine from Belarusian airspace for the first time. Lukashenko has so far resisted efforts to draw his army into the war. But during their meeting, Putin announced that Russia planned to supply Belarus with the Iskander-M missile system and reminded Lukashenko of how dependent his government is on economic support from Russia. Lukashenko on Saturday also claimed that two Belarusian truck drivers were killed in Ukraine. Ukraine said the truckers were at a gas station when it was hit by a Russian airstrike in March, but Lukashenko claimed the organs were cut out of their bodies to hide evidence that they were shot. Elsewhere in Ukraine, investigators combed through the wreckage from a Russian airstrike early Friday on residential areas near the Ukrainian port of Odesa that killed 21 people. Ukrainian Prosecutor-General Iryna Venediktova said the investigators were recovering fragments from missiles that struck an apartment building in the small coastal town of Serhiivka. They also were taking measurements to determine the trajectory of the weapons and “the specific people guilty of this terrible war crime,” she said. Larissa Andruchenko said she was in the kitchen making tea at about 1 a.m. when a blast blew the doors open. At first she thought the propane gas tank had exploded, and called her husband to the kitchen. “And right then the lights went

off and it was nightmare. The two of us are in the kitchen with glass flying, everything was flying,” she said. Ukrainian President Volodymyr Zelenskyy said three antiship missiles struck “an ordinary residential building, a nine-story building” housing about 160 people. The victims of Friday’s attack also included four members of a family staying at a seaside campsite, he said. “I emphasize: This is deliberate direct Russian terror, and not some mistake or an accidental missile strike,” Zelenskyy said. The British Defense Ministry said Saturday that air-launched anti-ship missiles generally don’t have precision accuracy against ground targets. It said Russia likely was using such missiles because of a shortage of more accurate weapons. The Kremlin has repeatedly claimed that the Russian military is targeting fuel storage sites and military facilities, not residential areas, although missiles also recently hit an apartment building in Kyiv and a shopping mall in the central city of Kremenchuk. On Saturday, K remenchuk Mayor Vitaliy Maletskyy said the death toll in the mall attack had risen to 21 and one person was still missing. Ukrainian authorities interpreted the missile attack in Odesa as payback for the withdrawal of Russian troops from a nearby Black Sea island with both symbolic and strategic significance in the war that started with Russia’s February 24 invasion of Ukraine. Moscow portrayed their departure from Snake Island as a “goodwill gesture” to help unblock exports of grain.

North Korea slams US-South Korea, S. Korea-Japan military cooperations By Hyung-Jin Kim The Associated Press

EOUL, South Korea — North Korea on Sunday slammed the United States, South Korea and Japan for pushing to boost their trilateral military cooperation targeting the North, warning that the move is prompting urgent calls for the country to reinforce its military capability. North Korea has long cited what it calls hostility by the United States and its allies as a reason to pursue a nuclear program. Sunday’s statement comes as North Korea’s neighbors say the country is ready for its first nuclear test in five years as part of its provocative run of weapons tests this year. “ T he preva i l i ng sit u at ion more urgently calls for building up the country’s defense to actively cope with the rapid aggravation of the security environment of the Korean Peninsula and the rest of the world,” the North Korean Foreign Minis-

try said in a statement, without elaborating how it would boost its military capacity. The statement took issue with a trilateral meeting among the US, South Korean and Japanese leaders on the sidelines of a NATO summit last week, during which they underscored the need to strengthen their cooperation to deal with North Korean nuclear threats. “The chief executives of the US, Japan and South Korea put their heads together for confrontation with [North Korea] and discussed the dangerous joint military countermeasures against it including the launch of tripartite joint military exercises,” the statement said. North Korea views US-led military exercises in the region, particularly ones with rival South Korea, as an invasion rehearsal, though Washington and Seoul have repeatedly said they have no intentions of attacking the North. During the recent trilateral

meeting, US President Joe Biden said he was “deeply concerned” about North Korea’s continued ballistic missile tests and apparent plans to conduct a nuclear test. South Korean President Yoon Suk Yeol said the importance of trilateral cooperation has grown in the face of North Korea’s advanced nuclear program, while Japanese Prime Minister Fumio Kishida said joint anti-missile drills would be important to deter North Korean threats. Earlier in June, the defense chiefs of the US, South Korea and Japan agreed to resume their combined missile warning and tracking exercises as part of their efforts to deal with North Korea’s escalating weapons tests. The North Korean statement accused the United States of exaggerating rumors about North Korean threats “to provide an excuse for attaining military supremacy over the Asia-Pacific region including the Korean Peninsula.” US officials have said Washing-

ton has no hostile intent toward Pyongyang and urged it to return to disarmament talks without any preconditions. North Korea has rejected the US overture, saying it would focus on buttressing its nuclear deterrent unless the United States drops its hostile policies toward the North, an apparent reference to US-led economic sanctions and its regular military training with South Korea. North Korea claimed the recent NATO summit proves an alleged US plan to contain Russia and China by achieving the “militarization of Europe” and forming a NATO-like alliance in Asia. It said “the reckless military moves of the US and its vassal forces” could lead to dangerous consequences like a nuclear war simultaneously taking place in both Europe and Asia-Pacific. Pyongyang has often released similar warlike rhetor ic and warned of the danger of nuclear war in times of heightened animosities with Washington and Seoul.

Editor: Angel R. Calso

U.N. condemns riots, protesters’ storming of Libya’s parliament By Samy Magdy The Associated Press

AIRO—A senior UN official for Libya on Saturday condemned the storming of the parliament’s headquarters in the east of the oil-rich country as part of protests in several cities the previous day against the political class and deteriorating economic conditions. Hundreds of protesters marched in the streets of the capital, Tripoli, and other Libyan cities on Friday, with many attacking and setting fire to government buildings, including the House of Representatives in the eastern city of Tobruk. “The people’s right to peacefully protest should be respected and protected but riots and acts of vandalism such as the storming of the House of Representatives headquarters late yesterday in Tobruk are totally unacceptable,” said Stephanie Williams, the UN special adviser on Libya, on Twitter. The Secretary-General is following with concern the demonstrations that were held in several cities in Libya, including Tripoli, Tobruk and Benghazi, on 1 July. Recognizing the right to demonstrate peacefully, he calls on all protestors to avoid acts of violence and on the security forces to exercise utmost restraint. UN Secretary-General Antonio Guterres called on all protesters “to avoid acts of violence and on the security forces to exercise utmost restraint,” UN spokesman Stephane Dujarric said. “The secretary-general urges Libyan actors to come together to overcome the continued political deadlock, which is deepening divisions and negatively impacting the country’s economy,” Dujarric said. Friday’s protests came a day after the leaders of the parliament and another legislative chamber based in Tripoli failed to reach an agreement on elections during UN-mediated talks in Geneva. The dispute now centers on the eligibility requirements for candidates, according to the United Nations. Libya failed to hold elections in

December, following challenges such as legal disputes, controversial presidential hopefuls and the presence of rogue militias and foreign fighters in the country. The failure to hold the December vote was a major blow to international efforts to bring peace to the Mediterranean nation. It has opened a new chapter in its long-running political impasse, with two rival governments now claiming power after tentative steps toward unity in the past year. The protesters, frustrated from years of chaos and division, have called for the removal of the current political class and elections to be held. They also rallied against dire economic conditions in the oil-rich nation, where prices have risen for fuel and bread and power outages are a regular occurrence. Protesters also rallied on Saturday in Tripoli and several towns in western Libya, blocking roads and setting tires ablaze, according to livestreaming on social media. There were fears that militias across the country could quash the protests as they did in 2020 demonstrations when they opened fire on people protesting dire economic conditions. Sabadell Jose, the European Union envoy in Libya, called on protesters to “avoid any type of violence.” He said Friday’s demonstrations demonstrated that people want “change through elections and their voices should be heard.” The US ambassador to Libya, Richard Norland, urged Libyan political leaders and their foreign backers to work for a compromise to hold elections. “It is clear no single political entity enjoys legitimate control across the entire country and any effort to impose a unilateral solution will result in violence,” he warned on Twitter following a call with Mohammad Younes Menfi, head of the Libyan presidential council. Libya has been wrecked by conflict since a NATO-backed uprising toppled and killed longtime dictator Moammar Gadhafi in 2011. The country was then for years split between rival administrations in the east and west, each supported by different militias and foreign governments.

Argentina’s economy minister resigns amid peso, diesel woes

UENOS AIRES, Argentina—Argentina’s economy minister resigned unexpectedly Saturday, dealing a fresh blow to the government of President Alberto Fernández as the country struggles with economic problems. Martín Guzmán stepped down after a week in which Argentina’s currency hit an all-time low against the dollar amid sizzling inflation and truck drivers staged protests over shortages of diesel fuel. No successor was immediately announced. “I write to you to present my resignation as economy minister,” Guzmán said in a seven-page letter addressed to Fernández that he published on Twitter that highlighted internal battles within the administration. Illustrating the tensions, Guzmán announced his resignation while Vice President Cristina Fernández was giving a high-profile speech in which she lambasted the government’s economic policies. The vice president, who is not related to Argentina’s leader, is a former president herself and the governing coalition has been splintering between their allies. The resignation came at the end of a week of economic turmoil. With the Argentine peso sliding against the dollar, the government on Tuesday made it harder to acquire dollars to pay for imports as the local currency reached new lows in the parallel market used by citizens and companies to bypass official channels. Argentina has suffered for years from a shortage of dollars, which stems partly from the distrust of Argentines in their own currency amid high inflation. Inflation is running at an annual rate of more than 60 percent and economists expect the rate to keep worsening. Work stoppages by truck drivers have disrupted economic activity, including the delivery to ports of grain, which is one of

Argentina’s Economy Minister Martin Guzman walks outside of the International Monetary Fund building during the IMF Spring Meetings in Washington, April 21, 2022. Guzman announced his resignation on Saturday, July 2, via Twitter. AP Photo/Jose Luis Magana

Argentina’s main imports. On Wednesday, the government said it was trying to increase the availability of diesel by allowing more biofuel to be mixed into the fuel and also by suspending the import tax on diesel. Argentina produces diesel but not in sufficient quantities for its needs and depends on imports, with world prices rising because of disruptions by the pandemic and the Russian invasion of Ukraine. Analysts say one of the reasons for the shortage is that it is not profitable for oil companies to import diesel because the government prevents them from charging what it costs to buy on the international market. In his resignation letter, Guzmán suggested that at least part of his reason for leaving was because he lacked political backing inside the government. “From the experience I’ve lived,” he wrote, “I consider it will be fundamental to work on a political agreement within the governing coalition so that the person who replaces me will have the centralized control of the necessary macroeconomic policy instruments…to face the challenges ahead.” AP

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Germany risks cascade of utility failures, economy minister says

ermany should prepare for deeper cuts in Russian gas supplies because President Vladimir Putin is pursuing a conscious strategy of driving up prices to undermine European unity, Economy Minister Robert Habeck said. “We aren’t dealing with erratic decisions but with economic warfare, completely rational and very clear,” Habeck, the deputy chancellor in Olaf Scholz’s government, said Saturday on a panel. “After a 60% reduction, the next one logically follows.” German leaders are stepping up warnings of impending turmoil and natural-gas shortages in Europe’s big gest economy, which relies on Russia for about one-third of its energy. Putin has gradually reduced supplies after European countries imposed sanctions in response to Russia’s invasion of Ukraine. German utilities are at risk of cascading failures that might require activating a legal clause that would allow them to pass on price

increases outside of contract commitments, Habeck said. Germany has refrained from activating the measure for now because it would lead to an “immediate price explosion” for consumers, he said at an event sponsored by the Die Zeit weekly. The government is working on an alternative, he said, without elaborating. “If one company were to fail, or other companies were to fail, it’s like a domino effect that would very quickly lead into a deep recession,” he said. European energy companies are facing a squeeze after Russia curbed f lows on a key gas link earlier this month, forcing utilities to buy fuel on the spot market at elevated prices. High power prices are increasingly prompting German factories and businesses to curb demand and the government has activated the second stage of a three-stage gas emergency plan. Russia has reduced shipments through Nord Stream by 60% and the pipeline is scheduled for a full shutdown this month for mainte-

nance. Germany has raised doubts that Nord Stream will resume supply after that. Russia’s goal is to keep energy prices high and “destroy the unity and solidarity of the country,” Habeck said. Germany’s government and energy giant Uniper SE are discussing stabilization measures. Finance Minister Christian Lindner said any additional government assistance would be in the form of a loan guarantee. Gas rationing—if it came to that—presents challenges because the grid often isn’t separated between residential and commercial customers, Habeck said. If a factory is connected to the gas network and a whole part of the city is connected to it, then this factory can’t be taken out of the network. “That will probably then be regulated at the expense of the factories that are not connected to a mixed network,” Habeck said. Household customers in Germany are protected by law from gas shutoffs. Bloomberg News

World’s 6th biggest economy hit by EM investors’ exodus

nvestors reeling from the brutal emerging markets selloff over the past six months again fled the rupee as India’s currency hit new lows, prompting the government to curb gold imports and oil exports to arrest a widening deficit. The government raised import taxes on gold, while increasing levies on exports of gasoline and diesel in an attempt to control a fast-widening current account gap. The moves sent Reliance Industries Ltd. and other energy exporters tumbling, bringing down the benchmark index by as much as 1.7%. The rupee fell again. T he act ions u nderscore how emerging economies, especially with twin current account and fiscal deficits, are increasingly facing pressures on their currencies as forceful rate hikes by the Federal Reserve accentuate outflows. Despite having the world’s fourth-biggest reserve pile, the rupee has hit a succession of record lows in recent weeks. The Indonesian rupiah, the other high-yielder in Asia, fell to its lowest in two years on Friday. Policy makers in many emerging markets face stark choices as they battle soaring inflation and capital flight as the Fed tightens policy: raise rates and risk hurting growth, spend reserves that took years to build to defend currencies, or simply step away and let the market run its course. New Delhi’s move also underscores the economic challenges faced by Prime Minister Narendra Modi’s government as inflation in the world’s sixth-largest economy accelerates and external finances worsen. The central bank has been battling to slow

the currency’s decline, and runaway rupee depreciation will worsen price pressures, and may spur more rate hikes that weigh on growth. The measures “aim to reduce the impending pressure on the current account deficit and thus the currency,” said Madhavi Arora, lead economist at Emkay Global Financial Services. “Complementary policy efforts from both fiscal and monetary side essentially reflect the looming pain on the balance of payments deficit this year.” While the Reserve Bank of India has been seeking to smooth out the rupee’s 6% decline this year, banks have reported dollar shortages as investors and companies rushed to swap the rupee for other assets or to pay for imports. The latest measures were spurred by a sudden surge of gold imports in May and June, the Finance Ministry said Friday.

Commodity pressures

The government raised the import duty on gold to 12.5%, reversing a cut last year. The higher taxes on shipments of gasoline and diesel sent shares of Reliance Industries, a key exporter, down by as much as 8.9%. India is the world’s second-biggest gold consumer and local futures rose as much as 3% in Mumbai, the biggest intraday jump in almost four months, due to the higher import costs. Finance Minister Nirmala Sitharaman said on Friday that India is seeking to discourage gold imports as it helps preserve foreign exchange. She added “extraordinary times” require such measures including the imposition of a windfall tax on fuel exports. “ T he cha llenges are emanat-

ing from the same source, which is higher commodity prices,” said Rahul Bajoria, senior economist, Barclays Bank Plc. “India can neither find supply onshore nor we will be able to cut back the consumption of oil. That makes the whole situation a lot more unpredictable both in terms of how this plays out and how long this continues for.” For the broader fuel market, a drop in Indian exports could further tighten global markets that are grappling with reduced supply from Russia and rising post-pandemic demand.

Big reserves

Friday’s measures highlight the central bank has a tough fight on the external front in coming months. RBI Governor Shaktikanta Das has said the central bank uses a multi-pronged intervention approach to minimize actual outflows of dollars and won’t allow a runaway rupee depreciation. And while investors have been put on watch over emerging-market stress by Sri Lanka’s struggle with a dollar crunch leading to hyperinflation, the RBI has close to $600 billion of foreign-exchange reserves. But those reserves are depleting as the central bank steps up its fight to stop the slide in the rupee amid capital outflows and a current account gap that is expected to double this year. “Investors should expect the currency to still depreciate,” said Arvind Chari, chief investment officer at Quantum Advisors Pvt. in Mumbai. “Will more taxes on exports impact corporate activity? Maybe not in the short term but it could in the medium to long term.” Bloomberg News

China’s foreign minister visits Myanmar amid opposition protest

ANGKOK—China’s top diplomat on Saturday arrived on his first visit to Myanmar since the military seized power last year to attend a regional meeting that the government said was a recognition of its legitimacy and opponents protested as a violation of peace efforts. Chinese Foreign Minister Wang Yi will join counterparts from Myanmar, Laos, Thailand, Cambodia and Vietnam in a meeting of the LancangMekong Cooperation group in the central city of Bagan, a Unesco World Heritage site. The grouping is a Chinese-led initiative that includes the countries of the Mekong Delta, a potential source of regional tensions due to an increasing number of hydroelectric projects that are altering the flow and raising concerns of ecological damage. China has built 10 dams along the upper stretch of the Mekong, the part it calls the Langcang. Military government spokesman

Maj. Gen. Zaw Min Tun told a news conference in the capital Naypyitaw on Friday that the attendance of the foreign ministers at the meeting was a recognition of Myanmar’s sovereignty and its government. He said the ministers will sign memorandums of understanding and contracts. He did not elaborate. It’s unclear whether Wang would meet Senior Gen. Min Aung Hlaing, the head of the military government. Myanmar’s military seized power from the elected government of Aung San Suu Kyi on February 1, 2021. It was quickly met by nonviolent nationwide demonstrations and triggered armed resistance that some UN experts now characterize as civil war. According to a detailed list compiled by the Assistance Association for Political Prisoners, 2,053 civilians have died in the crackdown on the resistance movement. Wang last visited Myanmar to meet with Suu Kyi just three weeks before

the military ousted her. China is Myanmar’s biggest trading partner and an old ally. Beijing has invested billions of dollars in Myanmar’s mines, oil and gas pipelines and other infrastructure and is its major arms supplier, together like Russia. Many in Myanmar suspect China of supporting the military takeover, and Beijing has refused to condemn the army’s power grab. China says it follows a policy of non-interference in other countries’ affairs. The foreign minister of Myanmar’s shadow government, which opposes the ruling military council, protested the Bagan meeting, saying any such efforts in partnership with Myanmar’s military violate the will of the people and undermine community building. The statement said that holding the foreign ministers’ meeting in Myanmar is in direct opposition to a peace plan by the Association of Southeast Asian Nations. AP

Monday, July 4, 2022 • Editor: Angel R. Calso

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editorial

Time for fiscal caution

hile recently we have not heard it often, “When the US economy sneezes, the Philippines catches a cold” was a mantra. But in fact, it was never true that the Philippines followed the US. If you look at the historical record, Bangladesh could talk about catching a cold from the Philippines as its economic growth lagged but tracked our economic peaks and valleys.

For the 21st century, Bulgaria was a better leading economic indicator for the Philippine GDP “Annual Growth Rate” than the US. The globalization reality is that everybody’s economy tracks everyone else’s and follows a worldwide general trend. The outliers are caused by war, big or small, and by incredibly bad government policies such as perpetually in Argentina and Zimbabwe, or suddenly as in the case of Sri Lanka. As most of the world is recovering from the Covid economic chaos effects even with the war in Europe, the US is not recovering. The GDP in the US expanded 3.50 percent in the first quarter of 2022 over the same quarter of 2021. By comparison, the Philippine GDP expanded by 8.3 percent in the first quarter of 2022 over the same quarter of 2021. The GDP “Annual Growth Rate” is an important number but gives a false impression, as it does not show the short-term economic growth trend. It is a year-on-year comparison. It is like saying that you have more net worth today than you had in the economic “snapshot” of 12 months ago. Now we need to look at the current trend of economic growth. “The US economy contracted an annualized 1.6 percent on quarter in Q1 2022.” Again, in comparison, “The Philippine economy grew by an annualized 1.9 percent in Q1 of 2022.” Two consecutive quarters of economic contraction is the definition of a “recession,” which both the US and the Philippines experienced in the first two quarters of 2020. In 2021, the Philippine economy was much more fragile than in the US as while the US was showing 6.7 percent growth, the Philippines saw a 0.2 percent reduction of economic activity in the second quarter of 2021. But in the second quarter of 2021, the Philippine was deep in Covid (10,000 new cases per day) with much of the country under Enhanced or Modified Community Quarantine. In the last two quarters of 2021 and still with Covid burning, we managed an average 3 percent growth. On July 28, 2022, the US will announce the first read on the second quarter 2022 GDP, and here is when it might get scary. The Federal Reserve Bank of Atlanta has been using a forecasting tool called “GDPNow” since 2011. “It is best viewed as a running estimate of real GDP growth based on available economic data for the current measured quarter.” The GDPNow track record is better than some, worse than others. However, pre-Covid, the overall error factor was 0.00 percent. “The GDPNow model estimate for real GDP growth in the second quarter of 2022 is negative 2.1 percent on July 1, down from negative 1.0 percent on June 30.” Bank of America, the second largest American bank, on July 1 revised down its estimate for GDP growth in the second quarter from 1.5 percent to 0.0 percent. Two successive negative growth quarters and it is officially a recession. However, Bank of America also said that it expects the economy to grow 2.3 percent for the full year this year. Fortunately, we do not depend on the US economy and the world is also becoming less reliant on Uncle Sam’s bank account. Yet the Philippine government must be cautious fiscally, both in granting new monetary investment incentives and with finding new ways to spend taxpayer money. Since 2005

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Travel trends

E see more people traveling now that there are fewer restrictions, but did we ever stop to think about what we learned from the pandemic in the areas of travel and tourism? And how may we apply these learnings so that this sector becomes more inclusive, sustainable, and resilient compared to how it was before Covid? Experts Sandra Carvao of the United Nations World Tourism Organization and Liz Ortiguera of the Pacific Asia Travel Association in Thailand shared their insights with the World Economic Forum (WE Forum) via its Our World in Transformation series.

Both experts agree that the travel and tourism sector will continue to focus on safety and wellness. One of the ways it is doing this is by creating standards on meetings-and-events as well as standards for tour operators. Through all of the steps mentioned above, the tourism and travel sector is being built to be more resilient, inclusive and sustainable so that it can continue playing its part in the economic recovery and social progress of all recovering nations.

According to the abovementioned travel and tourism experts, the younger travelers are more aware of the impact of their travel on the environment and the communities. The businesses, likewise, are making effort to reduce emissions, like the airlines, for instance. There is still, however, a great need to invest in solutions and technology so that the negative environmental impact can be further lessened. Another trend is the preference for domestic travel and local experi-

means the communities have to be at the core of tourism activities. They need to be consulted during the planning or design stage and engaged in the management of these activities. It’s very important that the local communities are empowered and that they benefit—including financially—from every travel and tourism program in their area. When they are involved, there is a greater chance that the locals’ cultural heritage may be accurately represented, promoted, and reinforced, leading to the creation of culturally

Atty. Jose Ferdinand M. Rojas II

RISING SUN

ences, which is probably due to travelers’ notion that it’s safer to travel within their own countries. Governments and businesses, therefore, need to study the domestic market more deeply to be able to offer fresh experiences and new products to domestic tourists. Travelers this time prefer to immerse themselves in the local communities, as opposed to spending time and money in overcrowded tourist spots. Communit y-based tour ism

R.I.P. BRT

The World Bank cited several reasons for the failure of the project to move forward. The reason of pandemic slowdown notwithstanding, noteworthy were the other reasons cited, namely: the “inexperience” of the BRT program management office, lack of general budget management allocation and inefficient procurement management.

For those who are unfamiliar with the BRT system, it basically refers to a public transport mode, in

rail system. Made popular in Bogota, Colombia in the 1990s, it became a preferred mode of transport for developing countries for the obvious reason that it is way cheaper than a rail system, not to mention that a BRT line fits the narrow road corridors in third world urban areas. For a quick comparison, a light rail costs $100 million/km; ground rail around $200 million/km, and a subway at a staggering $300 million/ km. A BRT, on the other hand, costs just $10 million/km. There are other

Thomas M. Orbos

STREET TALK ast week saw the demise of the Metro Manila BRT Line 1 project after the World Bank granted the Philippine government’s request to cancel its loan agreement amounting to $64 million. This is unfortunate considering that the BRT project could have greatly alleviated our current transport crisis in Metro Manila, especially in the perennial bottleneck of a corridor that is Quezon Avenue-España Boulevard, connecting the two most populated cities of Quezon City and Manila. The BRT project was projected to shelve half the present travel time from the two city halls of Manila and Quezon City, with a projected ridership of 300,000 passengers per day. This would practically almost equal the same ridership as that of the Metro Manila subway (370,000), which costs a staggering 100 plus times more ($7 billion). Unfortunate because the cancellation could have been avoided.

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this case, made up of specially built buses that operates on a fixed line, similar to a train but without the

authentic activities. Tourists also love to engage in what is called creative tourism, or the creation of experiences wherein they can directly participate, like an art workshop with the local art group, or a weaving lesson from the community weavers, etc. According to surveys on social media, activities like these are more likely to be shared online, further driving marketing and promotion for the community. On the technical side, local governments can help the communities with the digitization of their systems so that tourists will have an easier time finding accommodation, for instance. Both experts agree that the travel and tourism sector will continue to focus on safety and wellness. One of the ways it is doing this is by creating standards on meetings-andevents as well as standards for tour operators. Through all of the steps mentioned above, the tourism and travel sector is being built to be more resilient, inclusive and sustainable so that it can continue playing its part in the economic recovery and social progress of all recovering nations.

advantages. BRTs are faster to construct, easier to maintain and easier to expand, lessen or modify, which means the BRT can adjust to current traffic trends if need be. However, this does not mean that we can do away with rails. In the transport ecosystem, both rail-based and roadbased transport systems are needed, having their inherent strengths that complement each other. In fact, successful railway lines in major corridors worldwide are linked to road transport such as trams and buses, making travel seamless and therefore more beneficial for commuters. Going back to the cancellation of the BRT project, the World Bank cited several reasons for the failure of the project to move forward. The reason of pandemic slowdown notwithstanding, noteworthy were the other reasons cited, namely: the “inexperience” of the BRT program management office, lack of general budget management allocation and inefficient procurement manageSee “Orbos,” A9

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Statutory and regulatory ‘Designated Survivor’ accounting in the Siegfred Bueno Mison, Esq. electric power industry THE PATRIOT

Alfredo J. Non

DEBIT CREDIT Part Five

This is a continuation of my discussion of the major differences between the statutory and regulatory accounting rules that govern the energy power industry

The two Aspects of the Regulatory Asset Base (RAB) While RAB is the general term used to refer to the regulatory assets used in the delivery of efficient regulated energy services, it may also be referred to based on two aspects as: The Physical Aspect—which is the tangible aspect or the actual physical assets itself; and The Investment or Financing Aspect—refers to the funds used to finance the acquisition of the property and equipment, which could be a combination of debt and capital. The above can be illustrated by using the statutory accounting equation of: ASSETS = DEBT + CAPITAL A more refined illustration would be: UTILITIES + WORKING CAPITAL = DEBT + CAPITAL (including Retained Earnings) It is preferable to view the RAB based on these two aspects to eliminate certain confusions that result with the use of only one—the physical aspect of the RAB. Currently, the Optimized RAB is used in the roll forward balances and in the computation of Depreciation or return of capital. Under the Performance Based Regulation, Return On Capital (ROC) also uses the RAB as the base upon which to apply the WACC to arrive at the OC. It is expected that the total debit and total credit in the above equation will always be equal. However, for regulatory accounting purposes, this will not be the same. Therefore, it will be better that the ROC will be obtained by using the physical assets aspect as the basis and, that the ROC will use the Financial or Investment Capital concept as the basis. This way, the gearing ratio, applicable interest rates and, other adjustments will be properly recognized. In this regard the Commission, the Distribution Utility (DU) and the external auditor should agree to the use of a common template to consider the different adjustments to be made to arrive at the two different RAB balances, which should be periodically reconciled. For a better understanding of the reconciliation, explanations should

Financial and regulatory accounting would be appreciated better if there is proper coordination between the auditors and the regulator to ensure that the different practices between the two are properly recognized and, if significant, should be disclosed in the financial statements for a better understanding of the affairs of the Distribution Utility. be provided for each of the items that appear in the reconciliation template. For example, while donated assets may be excluded from the RAB in computing ROC, it may be included in the RAB in computing depreciation so that depreciation funds may be accumulated if the condition of donation puts the DU as responsible for replacement. Financial and regulatory accounting would be appreciated better if there is proper coordination between the auditors and the regulator to ensure that the different practices between the two are properly recognized and, if significant, should be disclosed in the financial statements for a better understanding of the affairs of the Distribution Utility. After all, there is commonality in objectives between the regulator and the auditor with respect to communications and proper reporting to the public. To be continued Alfredo J. Non is a CPA by profession and a former Partner at SGV & Co. He served as Commissioner of the Energy Regulatory Commission till he completed his term in 2018. He also served as Director and Executive Officer of several private companies and a former professor in Financial Management at the Ateneo Graduate School of Business. This column accepts articles from the business and academic community for consideration for publication. Articles not exceeding 600 words can be e-mailed to jltantorres@up.edu.ph

one are the days of red versus pink versus white. As the 17th president, Ferdinand “Bongbong” Marcos Jr. will have to sustain his campaign slogan of unity. As to his erstwhile main rivals, former Vice President Leni Robredo, former Senator Panfilo Lacson, former Mayor Isko Moreno, and former Senator Manny Pacquiao, they are now part of the private sector. Yet, a day after President Marcos Jr. took his oath of office to serve as Chief Executive for six years, Atty. Leni Robredo launched the supposedly largest network of volunteers.

ICE, France—Tourism is booming again in France—and so is Covid-19. French officials have “invited” or “recommended” people to go back to using face masks but stopped short of renewing restrictions that would scare visitors away or revive antigovernment protests.

From Paris commuters to tourists on the French Riviera, many people seem to welcome the government’s light touch, while some worry that required prevention measures may be needed. Virus-related hospitalizations rose quickly in France over the past two weeks, with nearly 1,000 patients with Covid-19 hospitalized per day, according to government data. Infections are also rising across Europe and the United States, but France has an exceptionally high proportion of people in the hospital, according to Our World in Data estimates. French government spokesperson Olivia Gregoire has said there are no plans to reintroduce national

regulations that limit or set conditions for gathering indoor and other activities. “The French people are sick of restrictions,” she said Wednesday on channel BFMTV. “We are confident that people will behave responsibly.” France’s parliamentary elections last month resulted in President Emmanuel Macron losing his majority in the national legislature, while parties on the far right and the far left that had protested his government’s earlier vaccine and mask rules gained seats. After the prime minister this week recommended that people resume wearing masks on public transportation, commuter Raphaelle Vertaldi said, “We need to deal

If there is any beauty in these recent political developments, it could be the realization that we find ourselves thrown into a “new frontier.” Filipinos are now living in an era, startling though foreseen not by anyone but by our Almighty God. Each one of us is deemed a designated survivor—marked for righteousness, waiting for that precious moment to own our new standing.

of God in Christ. This is our standing. 2 Corinthians 5:17 reinforces the truth of owning our identity with, “Therefore, if anyone is in Christ, the new creation has come; The old is gone, the new is here!” It is up to us to accept that status of being a designated survivor and live a new life following the path of righteousness. We carve our own path and create our own “state” of being. As to the “standing” of PBBM, he is the new Philippine president. But as to his “state”—what he will think, say, or do is a different matter. Whether he remains to evade taxes, whether he continues to lie about indisputable facts such as builder of the windmills in Ilocos, whether he keeps his promise of P20 per kilo of rice, will be seen within his residential term. His standing as president is permanent, yet his state fluctuates. And his standing cannot be impacted by his state. Regardless of what he does or not do, he will remain as president, unless removed for causes provided in our Constitution. Parallel to the life of a believer, we are the righteousness of God in Christ and this is our standing. We could wrestle with our standing, question our identity, and fight with a throng of critics, but our standing is who we are, it is permanent. Our state is what we do, how we behave, what our problems are, what our mood is. Our state can never redefine our standing. Therefore, we should rejoice for we have been earmarked for righteousness. We have been “designated survivors” like the one true leader who survived all persecutions here on earth until he sacrificed his life for us on the Cross.

She organized her formidable crowds of supporters in her unsuccessful bid to lead government to establish the newly-registered Angat Pinas, Inc. Public Servant Bongbong will lead a government machinery laden with so much debt with the help of technocrats in his Cabinet, while Private Citizen Leni will lead a non-government organization laden with thousands of volunteers who committed to help the country, albeit outside the government bureaucracy. Said respective positions may have fallen into their laps providentially as all of us are sometimes thrown into situations to serve in ways we never expect. Past the many deliberations and disputes that ripped even familial relationships apart, we all find ourselves in a different era of leadership, but with same political families. It seems to be a discernible Filipino peculiarity to always lay the burden, if not the responsibility, upon a leader. More often, we expect the personin-charge to do all the work for us. A significant number of my friends and colleagues still raise their eyebrows in doubt whether President Marcos Jr. (PBBM) will succeed in putting food on every Filipino household’s table, or giving Juan de la Cruz a stable job, or making this nation great again in the eyes of many. Much is expected. The hammer of blame stands ready in the background, especially from the opposition.

PBBM now carries the weight of this country on his shoulders, expecting some blows from dissenters at any given time. This looming scenario reminded me of a speech delivered by a fictional US President in the TV drama Designated Survivor. The protagonist Tom Kirkman faced a set of bully-Governors who did not see any hope in his leadership as he was thrust into the presidency by sheer accident. In that brief moment of “interrogation,” the fictional US President declared: “I think I can effect change and promote unity.” He proceeded by asserting the “depth of my love for this country,” that he “cannot do this alone nor can I waste any more time fighting with you.” He accentuated his speech with: “We need to move forward fighting TOGETHER, or I step down.” These words have some semblance with what PBBM said during his campaign. Similar words also colored the aura of his inaugural address on June 30. Despite echoing statements of unity and love for his country, President BBM will likely face a similar scenario with bully-“governors” or local government leaders who remain skeptical of his leadership abilities. But as what Tom Kirkman articulated, PBBM cannot do this alone. Instead of striving for unity among a divided Filipino society, he would be better off by dismissing the opposition as the enemy. He

should see no pink or white Filipinos anymore. As to Atty. Leni, being an ordinary citizen may not have been expected by most. But she appears to survive “in style” after a beating at the 2022 polls. With her volunteer program, Angat Pinas, Inc., whose advocacies in education, health, food security and community engagement, among others, Leni transformed her largest volunteer network into a nongovernment organization. Instead of choosing to fight and further divide, she chose to help government by being relevant outside the government. Notwithstanding her relegation from Public Servant Leni to Private Citizen Leni, she has no plans of not finishing what she started—to make a better Philippines, a dream that she shares with PBBM and the rest of the populace. If there is any beauty in these recent political developments, it could be the realization that we find ourselves thrown into a “new frontier.” Filipinos are now living in an era, startling though foreseen not by anyone but by our Almighty God. Each one of us is deemed a designated survivor—marked for righteousness, waiting for that precious moment to own our new standing. The “designation” already materialized, our standing in Christ has by now been fortified by his death on the cross. The Bible lays witness to this in 1 Corinthians 1:30, which says, “But by His doing you are in Christ Jesus, who became to us wisdom from God, and righteousness and sanctification, and redemption.” Meaning, we are the righteousness

Orbos . . .

On a good note, though, the BRT preference in the Philippines is now being championed by several local government administrations with assistance from the national government as well as the private sector. For the LGUs, you have Cebu and Davao as LGU BRT pioneers, although the Cebu BRT project, also with World Bank funding, had been much delayed as well. For the private sector, San Miguel Corporation is leading the way, incorporating the BRT component in most of its present and future road infrastructure projects such as the Pasig River Expressway. We also still have the rudimentary BRT line, the Edsa Car-

ousel, which, I can proudly state, I had a hand in its conceptualization when I was still in government. For those who comment negatively that the Edsa carousel should have been better planned; you may fall off your seats to know that there was once an Edsa BRT project proposal with funding from the Asian Development Bank, but it was also canceled. Without pointing fingers at whom to blame for the BRT cancellation, at the very least, we must learn from this situation and avoid such a debacle in the future. Administrations come and go, and they are remembered in a major way with the infrastructure that they have

built. That is why the San Juanico Bridge of Marcos, Sr., the several Edsa flyovers of Cory Aquino, the nautical highway of GMA and the massive Build, Build, Build program of Duterte stand out in our consciousness. In the same manner, in that very corner near the Welcome Rotonda at the border of Quezon City and Manila, we will continue to wonder in the next succeeding years how it could have been much more convenient for commuters had we succeeded in seeing through the completion of the BRT line.

measures, including an indoor mask mandate in some cities, but nothing that would curb economic activity. French tourism professionals expect a booming summer season despite the virus, with numbers that may even surpass pre-pandemic levels as Americans benefit from the weaker euro and others rediscover foreign travel after more than two years of a more circumscribed existence. On the French Riviera, a slow economic recovery began last summer. But with attendance at gatherings still capped, social distancing rules and travel restrictions in place a year ago, most visitors to the area were French. A tour guide and electric bicycle taxi driver in Nice described her joy at seeing foreign visitors again. During France’s repeated lockdowns, she transported essential workers, and took people to hospitals, to care for elderly relatives or for PCR tests. Now, passengers on her bike from the US, Australia, Germany, Italy or beyond reach for the hand disinfectant taped to the barrier between

the passenger and driver’s seats. She said she still diligently disinfects the bike before each ride, “like it’s 2020.” A retired couple from the UK visited France this week on their first trip abroad since pandemic travel restrictions were lifted. They started with a cruise down the River Rhône —face masks were mandatory on the ship—and ended with a few days on the Mediterranean. “It’s been delightful from start to finish,” said Ros Runcie, who was in Nice with her husband, Gordon. “Everyone is so pleased to see you, everyone is really polite and nice to visitors.” Sue Baker, who was traveling with her husband, Phil, and the Runcies, observed: “It feels very much like pre-2020.” Asked about the possible return of French mask rules, Phil Baker said, “Masks are a bit uncomfortable, especially in the heat.” But his wife added, “If it means we can still go on a holiday, we’ll put them back on without hesitation.” Le Deley reported from Boussy-Saint-

continued from A8

ment. All of which could have been addressed adequately similar to how the subway project was pursued. Change of priorities, lack of political will, other mode preferences, politics? Whatever the reasons, the cancellation is a loss to all of us suffering commuters, especially those taking the Quezon Avenue-España Boulevard corridor. There is also the loss of taxpayer’s money for the government time and resources spent for this project under the past two administrations.

With hospitalizations up, France weighs return to masks By Barbara Surk & Jade Le Deley | The Associated Press

Monday, July 4, 2022

with the virus, but we can’t stop living because of it.” Vertaldi, who was boarding a train in Boussy-Saint-Antoine south of Paris, said she opposed mandatory mask use but would cover her mouth and nose again, if the government requires it. Hassani Mohammed, a postal worker in Paris, didn’t wait for the government to decide. He masks up before his daily commute. With his wife recovering from surgery and two children at home, he does not want to risk contracting the coronavirus a third time. “I realized that the pandemic does not belong to the past,” Mohammed said. Masks have been contentious in France. Early in the pandemic, the French government suggested masks weren’t helpful. It ultimately introduced some of Europe’s toughest restrictions, including an indoor and outside mask mandate that lasted more than a year, along with strict lockdowns. A Paris court ruled Tuesday that

French tourism professionals expect a booming summer season despite the virus, with numbers that may even surpass pre-pandemic levels as Americans benefit from the weaker euro and others rediscover foreign travel after more than two years of a more circumscribed existence. the French government failed to sufficiently stock up on surgical masks at the start of the pandemic and to prevent the virus from spreading. The administrative court in Paris also ruled that the government was wrong to suggest early on that masks did not protect people from becoming infected. The government lifted most virus rules by April, and foreign tourists have returned by land, sea and air to French Mediterranean beaches, restaurants and bars. In the meantime, French hospitals are struggling with long-running staff and funding shortages. Local officials are contemplating new

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

The author may be reached at tmo45@georgetown.edu

Antoine, France.

A10 Monday, July 4, 2022

DOLE, DMW CRAFT NEW JOINT ADVISORY FOR SMOOTH SHIFT By Samuel P. Medenilla @sam_medenilla

O ensure the smooth transition for the creation of the Department of Migrant Workers (DMW), the agency will come out with a new joint advisory with the Department of Labor and Employment (DOLE) to finally iron out the operational changes between the two departments. The new issuance is expected to delineate the tasks and operations of DOLE and DMW amid the ongoing transition process for the creation of the latter. In a press conference last Friday, Labor Secretary Bienvenido E. Laguesma disclosed he will be meeting again with his DMW counterpart, Susan “Toots” V. Ople this week for the completion of the new joint advisory they will issue. “Probably by next week we can finalize the joint advisory which will give clarity and guidance to our affected OFWs [overseas Filipino workers], who previously got service from the Department of Labor and Employment but will now be accommodated by the Department of Migrant Workers,” Laguesma said. Last December, Republic Act No. 11641, which created the DMW to exclusively handle the affairs of OFWs by absorbing existing agencies. Four of the affected agencies, namely, the Philippine Overseas Employment Administration

(POEA); Philippine Overseas Labor Offices (POLO); the National Reintegration Center for OFWs (NRCO), and National Maritime Polytechnic (NMP) are part of DOLE. The said DOLE offices will be subsumed under DMW once it is fully constituted. In the months following the formation of DMW, there were reported disruptions and stakeholder confusion in the processing of OFWs due certain acts made by Ople’s predecessor in the ongoing transition period. Laguesma said these matters are expected to be resolved by the new joint advisory. Among the matters to be clarified by the new advisory will be the funding of the DMW, which currently remains with DOLE until the former is fully constituted. “Remember the funds are still with the Department of Labor and Employment and we are still accountable for it. We have to sort this out with the DBM [Department of Budget and Management] to ensure a smooth transfer,” Laguesma said. It will also address to which government office the labor attaches will report to as well as the handling of the pending appeal in POEA decisions, which were previously handled by the Secretary of Labor. “We already have a draft of the possible advisory to address the said issues,” Laguesma said.

Declare a state of calamity on food crisis, PBBM urged

By Jasper Emmanuel Y. Arcalas

@jearcalas

OME agriculture industry leaders are urging President Ferdinand Marcos Jr., concurrent and Agriculture Secretary, to declare a nationwide state of calamity due to food security problems to allow him to promptly address the country’s food supply challenges. Philippine Chamber of Agriculture and Food Inc. President Danilo V. Fausto said a state of calamity due to food security problems would allow Marcos to intervene in the utilization of local government unit (LGU) funds toward boosting food supply and temper rising prices. Fausto explained that such a declaration would also be beneficial during the implementation of Mandanas-Garcia ruling, which is expected to boost the funds of the LGUs by about P230 billion. “The national government has no money. The state of calamity on food security or sufficiency would allow [Marcos] to direct the LGU funds toward food production, for

the farmers’ needs,” Fausto told the BusinessMirror. “A portion of LGU funds can be used in various measures needed in their respective value chains such as value processing, stockpiling, cash assistance, warehousing. It would facilitate faster improvement of food production,” he added. Philippine Maize Federation Inc. President Roger V. Navarro concurred with Fausto, arguing that the declaration of a state of calamity will allow prioritization of food security by LGUs over other concerns. “There should be proper targeting for each LGU to monitor, evaluate their performance. Targets or

projections are paramount to calibrate expectations and LGU’s [key performance indicators],” Navarro told the BusinessMirror. United Broiler Raisers Association President Elias Jose Inciong said the declaration of a state of calamity due to food security problems might be “uncomfortable” to some but such action “should be seriously considered” to address pressing issues of the agriculture sector today. “I would have a very open mind. Some are uncomfortable with such a declaration but given the circumstances, it should be seriously considered and kept,” Inciong told the BusinessMirror. “There is a caveat to a state of calamity and it should be clear to everyone. It is not just a matter of increasing the budget but proper implementation of laws like AFMA and judicious use of funds,” he added. During a state of calamity, prices of basic necessities in concerned areas would automatically be frozen at their prevailing prices or placed under an automatic price control, according to Republic Act (RA) 7581 or the Price Act of 1992. Under RA 10121, the government, including LGUs, may utilize the calamity fund, which includes

the quick response fund (QRF), during a state of calamity to provide immediate “relief and recovery” programs to affected citizens. A declaration of a state of calamity would also encourage all government agencies and LGUs to support the national government, such as mobilization of “necessary” resources, to address the calamity at hand. Last year, former President Duterte extended the state of calamity nationwide due to the Covid-19 pandemic until September 12 of this year. Duterte also declared a year-long state of calamity nationwide due to the African swine fever outbreak, which lapsed last May 10.

No need–Tanchuling

RICE Watch Action Network Executive Director Hazel Tanchuling is lukewarm to the idea of a state of calamity declaration, arguing that Marcos’s presidential powers would already be sufficient to address the “crisis” in the agriculture sector. “Since he is the President, I don’t think he needs additional or special powers to address the crisis in agriculture. He is more than capable to act with his current dispensation as President,” Tanchuling told the BusinessMirror. See “State of calamity,” A2

HIT THE GROUND RUNNING Valenzuela Vice Mayor Lorena Natividad-Borja presides on Friday, July 1, at the 9th City Council Inauguration (inaugural session) held at the New Valenzuela City Hall. NONOY LACZA

SteelAsia’s melt shop, 1st in PHL, due 2024 By Andrea San Juan

TEELASIA Manufacturing Corp., the country’s largest steelmaker, will start operating the country’s first industrial-scale melt shop in 2024 using the latest green technology from Tenova. In a statement, SteelAsia said the 600,000-ton plant, located in Lemery in Batangas, will use local scrap metal to produce high-grade billets which will be raw material for building and ports construction, shipbuilding, among other projects. SteelAsia President Benjamin Yao said the melt shop will formalize and organize the collection, consolidation and recycling of scrap metal throughout the country, cre-

ating a business subsector with opportunities for individuals and small businesses like junk shops. Aside from generating business opportunities and thousands of jobs, it will also save the country precious dollars currently used to import billets. “This is part of the vision of SteelAsia to put in place an integrated steel industry, the backbone of a country’s industrial base. SteelAsia, the largest steel producer in the country, already has six operating plants and has lined up several more in a multibillion-dollar plan to keep the country abreast of its neighbors,” said Yao. To minimize the carbon footprint of the project, SteelAsia will use the latest green technology of Tenova, a global leader in steel and

mining technology. Its Consteel Evolution technology saves energy, decarbonizes steel production, and reduces environmental impacts through efficient energy recovery and pollution control innovations. SteelAsia is the f lagship steel manufacturing company in the Ph i l ippi nes, supply i ng more than 80 percent of the steel bar requirements for land, air, sea, power, a nd com mu n ic at ion s infrastructure. It is the preferred supplier of the Philippines’s largest contractors and property developers. SteelAsia has often professe d a commitment to help in achieving a more developed and industrialized Philippines. See “Steel,” A2

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Shell, NAC unit to develop renewable energy projects By Lenie Lectura

@llectura

merging Power Inc. (EPI), the renewable energy (RE) arm of Nickel Asia Corp. (NAC), and Shell Overseas Investments B.V. of Netherlands have teamed up to pursue RE projects in the Philippines. EPI and Shell signed a deal to jointly develop, own, operate, and maintain onshore RE projects in the Philippines. They will put up an investment company in the Philippines in which EPI and Shell will have equity ownership

of 60 percent and 40 percent, respectively. The target is to put up one gigawatt (GW) of RE capacity by 2028 with ambitions to contribute up to 3 GW into the country’s renewable capacity by initially rolling out a se-

ries of projects in Luzon and Visayas. The focus will be on utility scale solar photovoltaic (PV) while evaluating opportunities in onshore wind and energy storage systems. Based on industry data, a gigawatt of solar PV can supply the annual daytime consumption of over 1.2 million homes in the country. A Filipino household typically consumes 200 kilowatt-hours a month. “The joint venture has the full support of EPI’s parent company, NAC. This partnership would allow both companies to boost the supply of renewable energy in the Philippines and is in line with NAC’s vision to become the premier ESG investment in the country,” NAC President and CEO Martin Antonio G. Zamora said.

This joint venture is an opportunity to provide integrated value to customers through exploring synergies with retail electricity supplier Shell Energy Philippines Inc. “Working with partners and developing new collaborations is key to accelerate the energy transition. This Shell-EPI partnership will leverage on Shell’s technical expertise and integrated solutions as a global energy company and EPI’s strong presence in the Philippines. Together, we can power progress for the Philippines through sustainable energy for industries and homes,” said Lorelie Q. Osial, Country Chair of the Shell Companies in the Philippines.

DFNN, Nautilus ink data center deal By VG Cabuag @villygc

ublicly listed DFNN Inc., which provides technology solutions to gambling firms, said it signed a deal with Nautilus Data Technologies to collaborate and jointly assist each other in projects involving the development of a data center in the Freeport Area of Bataan. DFNN signed memorandum of understanding (MOU) with Nautilus. The MOU will focus on the use, supply, implementation and application of their respective businesses and related products and services. “This much awaited collaboration between DFNN and Nautilus could not have come at a more opportune

time when digital transformation is at its peak having been triggered by the pandemic and its restrictions on consumer movement and preferences,” the company said. Nautilus created a water-cooled data center design, setting a new standard for energy efficiency, environmental sustainability and global scalability. Data centers cooled by Nautilus offer advantages, including energy savings, water conservation, environmental sustainability and rapid global scalability. “Connecting the entire technology ecosystem is of great importance in creating value to both business and stakeholders. In this case, providing for a sustainable data center will ensure resiliency in the face of

rapid growth and demand,” DFNN COO Ricardo F. Banaag said. As the operation of Starlink will commence in the third quarter, DFNN said it expects customers’ need for high-availability and resiliency in their applications will skyrocket. “Therefore, a data center fully equipped from power, network and cooling for additional tolerance to datacenter failures is an imperative if we want to be truly competitive in the current global business environment,” the company said. Starlink is the satellite internet service operated by SpaceX or Elon Musk’s Space Exploration Technologies Corp. “With President Ferdinand R.

Marcos Jr.’s thrust of digitalization, building the country’s first green data center is a critical component of a sustainable technology ecosystem that will ensure the speedy growth and evolution of the technology sector which will hold the backbone of the digital economy,” DFNN said. Nautilus is a global pioneer in data center technology, leading a fundamental shift in the data center industry. Its water cooling technology was validated with the launch of Project Nautilus, the world’s first successful waterborne data center operation. The company was founded by Arnold Magcale, a Filipino-American United States Navy veteran and a recognized technology industry expert.

PLDT, Google launch Internet safety drive

HONE giant PLDT Inc. and multinational technology company Google have partnered to raise awareness about online safety for Filipino children. They launched over the weekend the “Be Internet Awesome” website meant to educate children and families about online safety and digital citizenship. Their partnership underpins PLDT Group’s commitment to customer-centricity and doing business responsibly, officials said Saturday. “This collaboration reinforces our child protection advocacies and responsibility to keep online spaces safe for all. As we strengthen customercentricity, we not only find ways to simplify technology and elevate the

quality of experience for customers of all ages, but also strive to put their safety and well-being in the way we design and develop our products and services,” said Alfredo S. Panlilio, President and CEO of PLDT and Smart Communications, Inc. Google’s “Be Internet Awesome” program is a global effort designed to teach children about online safety and digital responsibility. The program provides modules, online games, and other materials that teachers, parents and guardians can use to educate kids about digital citizenship and literacy. These learning materials were piloted in more than 20 schools last year. From the initial reach of over 2,000 students, Google and the De-

partment of Education had engaged over 12,000 students from grades 4 to 8 across Metro Manila and nearby areas towards the end of 2021. The “Be Internet Awesome” program is part of the many efforts of Google to help keep people safe online. “We are glad to have found a likeminded partner in PLDT who champions the same values when it comes to protecting kids online. Through PLDT and more potential partners in the future, we hope to scale Be Internet Awesome and provide more families with a practical way of teaching digital safety and wellness to their children so they can become responsible, confident explorers of the online world,” said Bernadette Nacario, Country Di-

rector of Google Philippines. PLDT said it has institutionalized a pioneering child safeguarding policy that applies to the telco’s entire workforce and extends to its engagement with customers, communities, business partners, and others. It has invested over P2-billion in its cybersecurity defenses, under which the telco has deployed a child protection platform that detects and prevents domain and content-level access to child sexual abuse materials within its network. The group also secured alliances with sectors and child protection entities such as UNICEF, the Internet Watch Foundation, Canadian Centre for Child Protection, International Justice Mission, and SaferKidsPH. Lenie Lectura

Cebu Pacific resumes flights to Australia By Lorenz S. Marasigan @lorenzmarasigan

UDGET carrier Cebu Pacific said on Sunday it has expanded its Asia Pacific footprint with the resumption of its flights to Australia. With the easing of travel restrictions in the Philippines and Australia, Cebu Pacific has resumed its thrice weekly flights between Manila and Sydney. “With this route resumption, we are pleased to fly once again to and from this destination after more than two years. We know that many are excited to visit Sydney’s attractions like the Sydney Opera House, Harbour Bridge, Bondi beach, Taronga Zoo and many more,” said Xander Lao, Chief Commercial Officer at Cebu Pacific. He added: “This also allows Filipinos to reunite with friends and family. We will continue working on boosting seamless connections across our network to address demand.” Sydney requires arriving tourists to present printed copies of their Covid-19 Vaccination Certificate upon check-in. Travelers must also complete and submit their Digital

Passenger Declaration form at least 72 hours before departure. Coming home, boosted Filipinos no longer need to take a Covid test pre-departure. As countries continue to reduce Covid-19 measures, Cebu Pacific plans to revitalize its international network. Its domestic network has already been restored to 100 percent of its pre-pandemic capacity. Last month, the airline announced that it will ramp up its flights to Singapore from Manila and Cebu. In an advisory, Cebu Pacific said it will double the daily frequency of its Manila-Singapore operations starting July 1, while its thrice weekly Cebu-Singapore route will reopen on July 15. “We are delighted to continue ramping-up our international flight frequencies, not only in Manila, but also in Cebu. We know majority of the traveling public have been looking forward to travel internationally again, especially since a lot of countries have eased their restrictions. We continue to work towards the expansion of our international network while we maintain operating over 100 percent of our pre-pandemic domestic capacity,” Lao said.

Tesla deliveries dipped in Q2

esla Inc. delivered 254,695 cars worldwide in the three months to June, snapping a two-year streak of quarter-on-quarter gains, as a Covid-related shutdown at its factory in Shanghai crimped production. The results, posted Saturday, missed a forecast of 261,181 vehicle deliveries based on an average of analyst estimates compiled by Bloomberg. That is less than the record 310,048 cars Tesla delivered in the previous three months, but above the 201,250 from the same quarter a year ago. Tesla faces “ongoing supply chain challenges and factory shutdowns beyond our control,” it said in a statement. The delivery data is a closely watched indicator for Tesla since it provides insights

into the electric-car maker’s likely financial performance. The figure also is widely seen as a barometer for EV demand generally, since the Austin, Texas-based company has led the market for battery powered vehicles.

‘Very tough quarter’ Chief Executive Officer Elon Musk had warned of a “very tough quarter” in an internal memo that was seen by Bloomberg. But the Shanghai shutdown may have made the most recent quarter’s tally something of an outlier. Musk said earlier this year that he expects production in the third and fourth quarters will be “substantially higher” and that Tesla is on track to expand production to more than 1.5 million vehicles this year. Bloomberg News

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PSE: Initial public offerings to hit record high this year

By VG Cabuag

@villygc

he Philippine Stock Exchange Inc. (PSE) said the number of companies going public may hit record high this year, but the amount could still be lower than the previous year, when Monde Nissin Corp. conducted an initial public offering (IPO). PSE President and CEO Ramon S. Monzon said the bourse already had eight IPOs in the first half, which matches the number of offerings for the entire 2021. Of the eight companies that conducted their IPOs, 5 were listed on the main board while three joined the small, medium and emerging board.

Listed firms that debuted in the first half were Haus Talk Inc., Figaro Coffee Group Inc., Citicore Energy REIT Corp., Bank of Commerce, CTS Global Equity Group Inc., Raslag Corp., VistaREIT Inc. and Balai ni Fruitas Inc. “Given the lineup of maiden offers in the next half of the year, we

may see a 26-year high in terms of the number of IPOs in a year,” Monzon said. The amount of capital raised from the sale of primary and secondary shares in eight IPOs, one stock rights offering and four private placements during the first half of 2022 reached P61.92 billion, lower by half compared with the previous year. The fund raising amount in the same period last year was P122.46 billion, boosted by Monde, the largest IPO in PSE history that raised P55.89 billion. “The record fund raising in 2021 will be difficult to break because of the sizable amount that was generated by the Monde Nissin Corp.’s IPO. We have a robust pipeline of public offerings in the second half and if all of these materialize, capital raising may still reach the P200 billion mark,” Monzon said. “To sustain the listing activities at the PSE, we now have in place rules on initial listing through a preferred shares offering that gives companies the flexibility to tap the equities market by selling

preferred shares instead of common shares. The lock-up rule has also been amended recently to give select entities an early exit mechanism when a company they invested in goes public. This frees up capital of alternative investment funds to reinvest in other target firms and increases the number of available shares to IPO investors.” In terms of trading activity, the daily average value turnover as of June 30 was at P7.52 billion, down by 16 percent year-on-year. Foreign investors were net sellers during the January to June period at P40.73 billion, lower than the P77.86 billion net foreign selling registered in the same period in 2021. The benchmark PSE index closed at 6,155.43 points on the last trading day of the semester and posted a 13.6-percent decline year-to-date. The All Shares Index and five of the six sectoral indices also registered year-to-date losses of between 10 percent and 17 percent. Only the Mining and Oil index ended in the green, as it was up by 17 percent year-to-date.

STOCK-MARKET OUTLOOK Last week

Share prices fell for the fourth straight week as investors continued to sell their holdings even during the inauguration of the country’s new president last June 30. The benchmark Philippine Stock Exchange index fell 52.21 points to close at 6,165.35 points. For the year, the main index is now down by 13 percent or 957.28 points. The main index rallied for two straight days at the start of the week but gave up all of its gains during the two successive trading days, including the 147.76 point retreat on Thursday, during the inauguration of Ferdinand R. Marcos Jr. as the Philippines’s 17th President. Daily average trading for the week was still low at P4.95 billion, as many just stayed on the sidelines. Foreign investors, which made up about half of all the trades, were net sellers at P2.26 billion. Other sub-indices ended mixed, with the broader All Shares index that gained 2.49 points to close at 3,340.12 points, the Financials index fell 49.26 to 1,451.44, the Industrial index rose 267.78 to 9,053.01, the Holding Firms index retreated 130.92, the Property index lost 31.38 to 2,838.21, the Services index added 37.45 and the Mining and Oil index soared 459.89 to 11,322.50. For the week, gainers managed to edge out losers 127 to 101 and 29 shares were unchanged. Top gainers were ACE Enexor Inc., Megawide Construction Corp., PXP Energy Corp., SFA Semicon Philippines Corp., Keppel Philippines Holdings Inc. A, Cirtek Holdings Philippines Corp. and Ionics Inc. Top losers, meanwhile, were Araneta Properties Inc., Bright Kindle Resources and Investments Inc., Prime Media Holdings Inc., Far Eastern University Inc., Roxas Holdings Inc., Filipino Fund Inc. and Philweb Corp.

This week

Share prices may continue to decline this week as investors are still bracing for the rate hikes by the United States Federal Reserve, which could raise rates by another 75 basis points, and by the Bangko Sentral ng Pilipinas which could implement a 50 basis point increase. Broker 2TradeAsia said there will be bargain hunting for this week as investors will choose safe stocks that could provide maximum value over the long-term, if they can stomach the erratic movements over the short- to medium-term. It said investors are waiting for the release of inflation figures for June, which could reach 8 percent. This could mean more selling activities at the stock market in the coming days. “The recent fare hike for public transport effective July 1 will, however, pack a punch in the August (inflation) print,” the broker said. Meanwhile, Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said the market could move with a bearish bias due to the lingering downside risks to the local economy. “Investors are also expected to watch out for the peso which is already at the 55 per US dollar level. A further depreciation is also seen to weigh on the market,” he said. Chartwise, the market’s support is seen at the 6,100 - 6,150 range. Resistance is seen at the 6,350-6,400 range, he said.

Stock picks

Broker Regina Capital Development Corp. advised to buy when its support price holds on the stock of Philweb Corp. (WEB) as it sank 20 percent to its closing price of P4.85 from its 52-week high of P6.15 per share. “Such market action caused a divergence among indicators,” it said. “The market is looking for a good base for WEB to consolidate. At this point, P4.65 is still a good candidate for that. If this level doesn’t hold, another support awaits at P4.00,” it said. Philweb shares closed Friday at P5.05 apiece. Meanwhile, it gave the same recommendation on the stock of Monde Corp. (MONDE) as the bears found its way again to the company after it sunk 3.64 percent during intra-day trade last week. “Hence, investors who seek to take a position on MONDE may do so if the support at P12.80 continues to hold,” it said. Monde shares closed last week at P13.04 apiece. VG Cabuag

www.businessmirror.com.ph

SPEX transfers helicopter base to El Nido hangar

hell Philippines Exploration B.V. (SPEX) said over the weekend that it is set to complete the transfer of its helicopter base from Puerto Princesa to the newly-inaugurated aircraft hangar of INAEC Aviation Corp. inside Lio Airport in El Nido and begin hangar operations soon. By transferring the Malampaya helicopter base to the new 825-square-meter INAEC Hangar E2 in El Nido, the flight time for the transport of personnel to and from the offshore platform will be significantly reduced by over 70 percent. “The relocation of the helicopter base from Puerto Princesa to El Nido offers significant benefits to Malampaya. Flight time is reduced from 55 minutes to 15 minutes, which means improved safety, reliability and efficiency of our operations,” said Kiril Caral, SPEX Managing Director. The strategic position of INAEC Hangar E2 in El Nido also provides easier access to search and rescue resources including support from the Joint Task Force Malampaya, a composite team of the Philippine Air Force and the Philippine Navy with support from the Philippine Coast Guard. This will help improve the security of the Malampaya offshore crew, especially in cases of offshore emergencies with shorter response times.

In 2013, INAEC partnered with SPEX and PHI International for the helicopter transport of Malampaya personnel from Puerto Princesa to the offshore platform. Costing P45 million, the construction of INAEC Hangar E2 began in April 2021 and was completed in March of this year. Meanwhile, Pilipinas Shell Petroleum Corp. (Pilipinas Shell) and Northern Star Energy Corp. (Northern Star) have agreed to transform Northern Star’s existing sites in the area, into Shell branded Mobility stations. “This partnership will allow us to reach more customers and communities in La Union, Ilocos Sur, Ilocos Norte, Abra, and Mountain Province, in line with our commitment to serve the growing and evolving energy needs of every motoring customer and pedestrians alike,” said Randy del Valle, Pilipinas Shell Vice President for Mobility. The oil firm has been shifting its retail business model from gas stations to mobility sites, which have more customer-centric offerings. More than just a fuel site, the Shell Mobility station is a “destination that promises to create better customer journey experiences with an expanded range of products, full vehicle servicing, and even retail/ lifestyle and food offerings targeted to each local market.” Lenie Lectura

mutual funds

July 1, 2022

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 198.02 -10.65% -9.48% -6.11% -15.05% ATRAM Alpha Opportunity Fund, Inc. -a 1.3199 -6.99% -7.23% -3.66% -20.69% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.7105 -11.42% -13.06% -8.71% -16.29% Climbs Share Capital Equity Investment Fund Corp. -a 0.6905 -11.01% -10.3% n.a. -8.72% -9.73% n.a. -16.03% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6473 -14.43% First Metro Save and Learn Equity Fund,Inc. -a 4.4858 -8.12% -6.62% -4.06% -13.45% First Metro Save and Learn Philippine Index Fund, Inc. -a 0.6637 -7.2% -9.18% -6.94% -15.27% MBG Equity Investment Fund, Inc. -a 76.17 -24.37% -14.48% n.a. -19.34% PAMI Equity Index Fund, Inc. -a 40.6673 -10.48% -8.32% -4.64% -15.5% Philam Strategic Growth Fund, Inc. -a 424.97 -10.85% -8.2% -4.68% -15.12% Philequity Dividend Yield Fund, Inc. -a 1.2139 5.69% -3.2% -1.23% -10.5% Philequity Fund, Inc. -a 31.0213 -8.84% -7.52% -3.69% -15.23% Philequity MSCI Philippine Index Fund, Inc. -a 0.8014 -9.51% -8.84% n.a. -14.87% Philequity PSE Index Fund Inc. -a 4.2101 -9.56% -7.69% -4.02% -15.13% Philippine Stock Index Fund Corp. -a 701.42 -10.02% -7.77% -4.08% -15.34% Soldivo Strategic Growth Fund, Inc. -a 0.6235 -12.32% -12.68% -6.95% -17.15% Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.1574 -10.52% -10.28% -5.43% -16.37% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.7985 -10.31% -8.05% -4.34% -15.46% United Fund, Inc. -a 2.9595 -8.56% -7.7% -3.19% -13.9% Primarily invested in Peso securities (units) Philequity Alpha One Fund, Inc. -a 0.9974 -8.18% n.a. n.a. -14.22% Philippine Stock Index Fund Corp. -a 854.13 n.a. n.a. n.a. n.a. Exchange Traded Fund (shares) First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 94.5506 -9.66% -7.57% -3.7% -15.18% Primarily invested in foreign currency securities (shares) ATRAM AsiaPlus Equity Fund, Inc. -b $0.941 -26.48% -2.08% -1.06% -16.47% Sun Life Prosperity World Voyager Fund, Inc. -a $1.4615 -19.41% 4.1% 4.66% -20.85% Balanced Funds Primarily invested in Peso securities (shares) ATRAM Dynamic Allocation Fund, Inc. -a 1.5234 -9.09% -4.45% -2.97% -9.96% ATRAM Philippine Balanced Fund, Inc. -a 2.0599 -8.06% -3.99% -2.65% -9.71% First Metro Save and Learn Balanced Fund Inc. -a 2.4633 -5.4% -2.68% -1.23% -8.46% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a 0.1902 -2.56% n.a. n.a. -9% NCM Mutual Fund of the Phils., Inc. -a 1.8476 -5.7% -1.75% -0.53% -8.38% PAMI Horizon Fund, Inc. -a 3.367 -8.63% -3.66% -1.95% -10.57% Philam Fund, Inc. -a 15.0763 -8.72% -3.84% -2.03% -10.5% Solidaritas Fund, Inc. -a 1.9261 -6.56% -3.74% -2.07% -9.21% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.2282 -8.21% -6.14% -3.01% -11.49% Sun Life Prosperity Dynamic Fund, Inc. -a 0.8372 -5.23% -5.79% -2.63% -12.26% Primarily invested in Peso securities (units) Sun Life Prosperity Achiever Fund 2028, Inc. -a 0.8868 -10.11% -4.64% n.a. -10.41% Sun Life Prosperity Achiever Fund 2038, Inc. -a 0.7996 -11.87% -7.85% n.a. -15.34% Sun Life Prosperity Achiever Fund 2048, Inc. -a 0.7863 -12.14% -8.25% n.a. -15.8% Primarily invested in foreign currency securities (shares) Cocolife Dollar Fund Builder, Inc. -a $0.03309 -13.26% -3.98% -1.63% -12.78% PAMI Asia Balanced Fund, Inc. -b $0.9314 -18.27% -2.17% -0.88% -12.72% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.9548 -17.03% 1.8% 2.9% -17.64% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,2 $1.014 -15.6% -1.66% 0.04% -15.4% Bond Funds Primarily invested in Peso securities (shares) ALFM Peso Bond Fund, Inc. -a 373.04 0.18% 2.12% 2.25% -0.34% ATRAM Corporate Bond Fund, Inc. -a 1.89 -1.98% -0.17% -0.06% 0.28% Cocolife Fixed Income Fund, Inc. -a 3.2295 0.02% 1.93% 3.28% -0.45% Ekklesia Mutual Fund Inc. -a 2.1672 -4.25% -0.29% 0.56% -3.74% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.3983 -1.75% 1.23% 1.6% -1.14% Philam Bond Fund, Inc. -a 4.1842 -6.77% 0.02% 0.47% -4.81% Philam Managed Income Fund, Inc. -a 1.3202 -0.26% 2.83% 2.8% 0.08% Philequity Peso Bond Fund, Inc. -a 3.8801 -2.56% 1.77% 2.18% -2.16% Soldivo Bond Fund, Inc. -a 1.0072 -2.8% 2.32% 1.6% -2.04% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1278 -2.68% 1.87% 2.48% -1.87% Sun Life Prosperity GS Fund, Inc. -a 1.6932 -3.21% 0.97% 1.8% -2.16% Primarily invested in foreign currency securities (shares) ALFM Dollar Bond Fund, Inc. -a $481.28 -1% 1.66% 1.77% -1.69% ALFM Euro Bond Fund, Inc. -a Є210.64 -4.31% -1.05% -0.1% -4.26% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.0753 -9.68% -3.15% -0.83% -10.68% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.0243 -6.54% -1.72% -0.49% -6.54% PAMI Global Bond Fund, Inc -b $0.8971 -14.61% -6.2% -3.62% -12.29% Philam Dollar Bond Fund, Inc. -a $2.2074 -11.94% -1.96% -0.2% -11.9% 0.91% Philequity Dollar Income Fund Inc. -a $0.060735 -3.59% 1.21% -2.5% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $2.7503 -13.32% -3.74% -1.78% -13.95% Money Market Funds Primarily invested in Peso securities (shares) ALFM Money Market Fund, Inc. -a 132.16 1.42% 2.29% 2.54% 0.74% First Metro Save and Learn Money Market Fund, Inc. -a 1.0637 1.02% 1.58% n.a. 0.57% Sun Life Prosperity Peso Starter Fund, Inc. -a,1 1.3258 1.56% 2.13% 2.48% 0.78% Primarily invested in foreign currency securities (shares) Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0639 0.59% 1.15% n.a. 0.31% Feeder Funds Primarily invested in Peso securities (units) ALFM Global Multi-Asset Income Fund Inc. -a 43.1012 n.a. n.a. n.a. n.a. Sun Life Prosperity World Equity Index Feeder Fund, Inc. -a 1.2087 -5.68% n.a. n.a. -12.6% Primarily invested in foreign currency securities (units) ALFM Global Multi-Asset Income Fund Inc. -a $0.8064 -18.55% n.a. n.a. -16.87% a - NAVPS as of the previous banking day. b - NAVPS as of two banking days ago.

c - Listed in the PSE.

d - in Net Asset Value per Unit

(NAVPU). 1 - Renaming was approved by the SEC last July 8, 2021 (formerly, Sun Life Prosperity Money Market Fund, Inc.). 2 - Adjusted due to stock dividend issuance last November 25, 2021.

"While we endeavor to keep the information accurate, the Philippine Investment Funds Association (PIFA) and its members make no warranties as to the correctness of the newspaper’s publication and assume no liability or responsibility for any error or omissions. You may visit http://www. pifa.com.ph to see the latest NAVPS/NAVPU."

www.businessmirror.com.ph

Banking&Finance

Salceda weighs in on BSP actions to tame inflation By Jovee Marie N. dela Cruz @joveemarie

ouse Committee on Ways and Means Chairman Joey Sarte Salceda pointed to first-quarter broad money data as an admonition to those calling for monetary authorities to adopt a more hawkish stance on inflation. “The decision of the central bank on whether to increase rate hikes should be predicated on just two things: whether the country’s inflation is caused by excess liquidity in the Philippine markets and whether the rate hike relates to the causes of inflation in the Philippines. For now, the answer is largely no,” Salceda said in a statement. “So we should not self-inflict a pain that is, in all likelihood, going to be futile for addressing price concerns.” According to Salceda, year-onyear, the Q1 broad money—a tool that measures the amount of money circulating in the economy—only expanded by 7.7 percent, while gross domestic product (GDP) expanded by 8.3 percent. That means, Salceda said, “the real economy, for now at least, is still growing faster” than money supply. “Money supply then, isn’t the problem with prices, as we can clearly see with the main factors: transport, fuel and energy and food,” the economist-lawmaker said. “Between inflation with growth and inflation with slower growth due to an untimely or unnecessary rate hike, I would prefer inflation with growth.” With this, Salceda said he would discourage those who call on the Bangko Sentral ng Pilipinas (BSP) for

more aggressive action on policy rates. “I would instead call for just enough policy rate adjustments to expand our room for action should inflation momentum accelerate further. But for now, inflation is mostly not the financial sector’s fault. So financial sector action will hardly make a dent,” he added. “The key is still to produce enough food, find cheaper energy and solve transport bottlenecks. No BSP action will be a good substitute for these three priorities,” he said.

Costly, futile

THE lawmaker said economic managers should instead “focus on the constraints in the real economy and to shield the poor from the worst effects of inflation.” Salceda recalled his that during his time as an investment banker, “I sparred with some officials of the BSP on the central bank’s actions to support the peso during the years that immediately presaged the Asian financial crisis.” He further explained that monetary policy action should relate directly to the cause of the economic incident being addressed. “Otherwise, it will be costly and almost certainly futile.” Salceda also said he supports a “Bayan Bangon Muli” package that is more “inflation-busting” than focus on more spending. He said he would be filing a version “that is more focused on inflation-busting powers of the President and programs to remove supply constraints.” “That is the need of the time,” Salceda added.

PRE-DISASTER AID This Tuesday, June 14, 2022, photo shows (from left) Social Welfare

Undersecretary Felicisimo C. Budiongan, Unicef Philippines Deputy Representative Behzad Noubary, Land Bank of the Philippines Inc. Senior Vice President Marilou L. Villafranca and Unicef Chief of Social Policy Anjanette T. Saguisag, during the signing of a memorandum of understanding on June 14, 2022, in Quezon City for the distribution of multi-purpose unconditional cash transfers in typhoon-prone communities in Catanduanes and Northern Samar under the United Nations Central Emergency Response Fund for Anticipatory Action. CREDIT: Landbank of the Philippines Inc.

Moody’s affirms BPI, Metrobank’s ratings By Bianca Cuaresma @BcuaresmaBM

NTERNATIONAL credit watcher Moody’s Investor Service over the weekend affirmed the ratings of Bank of the Philippine Islands (BPI) and Metropolitan Bank & Trust Co. (MBT), with both outlooks remaining on stable. Moody’s said both banks remain at a Baa2 long-term deposit rating, with a stable outlook which means that the banks’ credit profiles will remain robust over the next 12 months to 18 months. “The rating affirmations of both BPI and MBT reflect the banks’ strong capitalization, which provides adequate buffer against financial shocks; strong funding and liquidity, supported by leading domestic franchises,” Moody’s said in its report. The ratings agency also expressed expectations that the banks’ asset quality and profitability will improve over the next 12 months to 18 months. Moody’s said both banks’ nonperforming loan (NPL) ratios will likely decline to around 2 percent by the end of 2023, in tandem with a rebound in economic activity in the Philippines. “Significant loan concentration to the domestic corporates remains a key risk factor for both banks,” Moody’s said. For return on assets of both banks,

the ratings agency forecasts improvement to around 1.2 percent over the next 12 months to 18 months, as net interest margins widen with rising interest rates and provision expenses decline with the improving asset quality. However, the capital ratio for both banks is seen to decline as loan growth recovers. Moody’s said this will remain at a “still-strong” level of around 15 percent over the next 12 months to 18 months. “Their funding structures will remain strong due to their strong deposit franchises. Both banks are largely funded by low-cost sticky customer deposits. Liquidity will remain adequate,” Moody’s said. The credit watcher said the likelihood of support from the Philippine government (Baa2 stable) will remain very high for both BPI and MBT, given their systemic importance, as reflected by their system market shares by total assets of 10.9 percent and 11.3 percent, respectively, as of December 31, 2021. “The BCA [baseline credit assessment] and long-term deposit ratings of both BPI and MBT are already at the same level as the sovereign rating,” Moody’s said. “Given the stable sovereign outlook, an upgrade of the banks’ BCA and ratings is unlikely. Both banks’ BCA and long-term ratings could be downgraded if the sovereign rating is downgraded.”

BusinessMirror

Editor: Dennis D. Estopace • Monday, July 4, 2022

PHL gross savings markedly reduced in past 2 yrs–PSA

By Cai U. Ordinario

@caiordinario

ILIPINOS’ savings have been significantly reduced in the past two years of the pandemic, according to data released by the Philippine Statistics Authority (PSA).

Based on the “Consolidated Accounts,” the PSA said the country’s total Gross Savings reached P3.88 trillion, a contraction of 12.4 percent from the previous year’s P4.43 trillion. Compared to pre-pandemic levels, BusinessMirror calculated that total gross savings contracted 36.91 percent from the P6.15 trillion in 2019. “The ‘Consolidated Accounts’ presents a summary of transactions

and relationships among the various flows of the economy. Included in this report are production, consumption, income, gross accumulation and economic transactions with the rest of the world,” the PSA said. The contraction in gross savings was largely due to the dissaving of households, including “Non-profit Institutions Serving Households” (NPISHs) and general government. Dissaving is the action of spending

more than one has earned in a given period. The PSA data showed the dissaving of households and NPISHs was P622.229 billion, a 222.18-percent increase in 2021 from the negative savings of P193.131 billion in 2020. Compared to the pre-pandemic or 2019 savings of households and NPISHs, the negative savings in 2020 represented a decline in savings of 283.64 percent while the dissaving of 2021 was a plunge of 691.64 percent compared to the period before the pandemic. Meanwhile, general government dissaving reached P490.624 billion in 2021 and P364.127 billion in 2020. In 2019, general government savings amounted to P538.171 billion. Compared to 2020, the negative savings grew 34.74 percent in 2021. But when compared to 2019, the dissaving in 2021 contracted 191.17 percent while the figure for 2020 was

a 167.66 percent decline. PSA data showed that only financial corporation savings grew in the past two years. Financial corporation savings reached P1.457 trillion in 2021, a 3.45 percent increase from the P1.408 trillion posted in 2020. The data also showed that the 2021 savings of the sector also grew 39.38 percent when compared to the pre-pandemic period of 2019. In 2021, the PSA said the country’s “Gross National Disposable Income” was valued at P21.51 trillion, registering a growth of 4.2 percent from the previous year. Among the factors of production, “Gross Operating Surplus” remained to have the highest share of 55.7 percent in 2021. This was followed by “Compensation of Employees” at 36.7 percent and “Taxes Less Subsidies on Production and Imports” at 7.6 percent.

COA to DOT: Covid no excuse for unutilized funds By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror

ESPITE constant complaints of the low allocation of funds for tourism promotions, the Department of Tourism (DOT) was cited by the Commission on Audit (COA) for not fully utilizing its budget in 2021. In its latest audit report, the COA noted that only P2.1 billion, or around 75.3 percent, of the DOT’s total budget of P2.79 billion for 2021, was obligated. Of the obligated amount, only 65.5 percent was utilized and disbursed by the government agency, leaving an undisbursed balance of some P724.5 million. In particular, among the unutilized balances COA pointed out were: the P34.14 million for tourism development planning (48 percent of total); P10.28 million for tourism industry training (41.8 percent); P9.13 million for tourism standards regulation, accreditation and monitoring (30 percent); P147.2 million in market and product development (49.3 percent); and, some P291 million for the branding campaign (67.2 percent). All these were programs by the DOT-Office of the Secretary

(Osec). The DOT attributed the underutilization of funds to Covid-19 travel restrictions and community quarantines, reduced expenses due to the use of online platforms, no suppliers for goods/services bidded out, among others. But COA averred, “[Considering] that the DOT has been operating under the pandemic for two years, the restrictions and new work setup brought by the Covid-19 pandemic should no longer be the main reason for the inability of the Department to maximize the utilization of the budget. The Management should already have addressed these challenges.”

‘Inefficient planning’

THE audit agency added that “the low utilization of funds reflects the inability of the Management to ensure efficient planning, procurement and implementation of the ‘Target Program, Projects and Activities’ for CY [calendar year] 2021.” Last year, the DOT was allocated a budget of some P3.2 billion, of which total allotments and obligations amounted to P2.79 billion and P2.1 billion, respectively. The unobligated amount at some P688,000 was reverted to the Bureau of Treasury.

Despite the supposed inefficient planning of the DOT, COA said the agency exceeded most of its targets set out in its project accomplishment report. The audit agency observed that the DOT management “set out realistic physical targets within the current absorptive capacity of the agency taking into consideration the prior years’ performance.” The COA rendered a qualified opinion on the tourism agency’s finances last year, “due to the unsubstantiated financial statements of DOT Regional Office 4-A [Calabarzon] and accounting deficiencies of some [P7.2 million] affecting the reliability of account balances…” The audit agency also cited lapses in the grant and liquidation of cash advances such as: some P164 million in past-due unsettled cash advances for operating DOT tourism attaché offices abroad; some P9.8 million by the DOT-Osec and DOT Region 1 (Ilocos); and, P898,366.17 by the DOT-Region 13 (Caraga), among others.

Lapses noted in liquidation

THE DOT management was told to exert effort to know the whereabouts of the retired/resigned officials with the unliquidated

amounts, return the unused portion of these cash advances, or impose sanctions such as relieving them of their positions in the case of some Tourism Attaches, or have the erring officials refund the amount that was disbursed to them. Some P3.8 million in expenses made by the DOT-Osec and regional offices were also found to be irregular, unnecessary and expensive, the largest amount at P53 million attributed to an irregular charging of budget for financial assistance to the Pacific Asia Travel Association. “The amount was charged against the budget for ‘Traveling ExpensesForeign,’ rendering the transaction irregular in nature not being with its intended purpose,” the COA said. Some P49.2 million in disbursements were also not supported by documents to prove their validity. The largest amount at some P44 million was attributed to the salaries for job order staff at the DOT-Osec from January to November 2021, which were not supported by daily time records and accomplishment reports. As of December 31, 2021, the COA reported unsettled disallowances and suspensions amounting to P493.34 million and P4.91 million, respectively.

Perspectives Staying competent through developing digital skills

TILIZING tools is very important now that we have incorporated modern skills into our everyday lives. With the emerging technology that has been changing businesses and organizations, obtaining digital skills is a must. Companies have been challenged to prepare their employees to be equipped with the necessary skills to stay competent and efficient.

Digital transformation

TO remain competitive in today’s world, gaining robust digital skills is now a requirement for businesses. We have been shifting to remote work or hybrid work modes and this has exposed employees to digital skills they never ought to learn while in office, or at least they never bothered to do so. According to reports, revenue growth, market share and customer satisfaction have all increased. The basics of digital processes, data encoding and interpretation of data, how digitization can impact businesses are some of the things an employee must do to close the digital skill gap. This also includes building awareness around technology with the proper use of tools and

applications. In the context of their job role, the employee is expected to have knowledge and understanding of technology, no matter what level they are at.

Investing in digital literacy

LEADERS play a critical role in digital upskilling in the organization. Working with business leaders to help employees speak the “language of data” fluently, data education strategy would be helpful. Helping employees learn the basics is the start. Organizations realize the value of investing in digital literacy. Data fluency includes the tools and systems to create and analyze data. It also promotes faster and more confident decision-making for the company to access the relevance of data to research and visualization of ideas. In order to embrace an analytics mindset and a data-driven culture in the company, understanding the context of data and analysis is needed to deliver meaningful business insights through the following: n Assessing current skill gaps, identifying talent development needs for specific roles and functions through data analysis;

n Understanding the challenges that employees experience on the job to create trainings that address needs; and, n Meeting with employees to grasp a better understanding of how digital skills can be properly utilized to overcome challenges, to improve inadequacy of skill development and to provide better business outcomes.

Designing relevant skills training to optimize success

PRODUCTIVITY enhancement and problem-solving are what individuals need to stay competitive as these will help them excel in their field. Upskilling allows the Learning and Development team to personalize training to specific job roles and functions. The training content must be easily understood and grasped by learners for immediate practice of the skills they are about to obtain. Moreover, skills should be connected to performance management like data analytics, coding or machine learning. Monitoring progress and recommending training are done by managers when necessary and evaluation of employees based on how they know their skills is part

of regular performance reviews. Employees would stay motivated to learn and develop the necessary skills through skills development. This would enable them to engage in the process of learning and would also allow them to explore different key roles and responsibilities outside of their job description. In line with this, employees would develop a career that is holistic, significantly increasing employee engagement. Optimizing workflows, building efficient business processes and understanding data to expand business growth are only some of the few advantages of digital upskilling. It will allow employees to stay knowledgeable with a digital mindset to innovate solutions and reach greater heights in the business world. The excerpt was taken from the KPMG Thought Leadership publication: “Upskilling for a modern world” (kpmg.us). © 2022 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG global organization of independent member-firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. For more information on KPMG in the Philippines, you may send a message via social media or visit www.home.kpmg/ph.

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Why Sri Lanka’s economy collapsed and what’s next

By Krishan Francis & Elaine Kurtenbach The Associated Press

it without the wherewithal to pay for imports, let alone repay billions in debt. Meanwhile the Sri Lankan rupee has weakened in value to about 360 to $1. That makes costs of imports even more prohibitive. Sri Lanka has suspended repayment of about $7 billion in foreign loans due this year out of $25 billion to be repaid by 2026.

ri Lanka’s prime minister says the island nation’s debt-laden economy has “collapsed” as it runs out of money to pay for food and fuel. Short of cash to pay for imports of such necessities and already defaulting on its debt, it is seeking help from neighboring India and China and from the International Monetary Fund. Prime Minister Ranil Wickremesinghe, who took office in May, was emphasizing the monumental task he faces in turning around an economy he said is heading for “rock bottom.” Sri Lankans are skipping meals as they endure shortages, lining up for hours to try to buy scarce fuel. It's a harsh reality for a country whose economy had been growing quickly, with a growing and comfortable middle class, until the latest crisis deepened.

How serious is this crisis?

T he gover nment owes $51 billion and is unable to make interest payments on its loans, let alone put a dent in the amount borrowed. Tourism, an important engine of economic growth, has sputtered because of the pandemic and concerns about safety after terror attacks in 2019. And its currency has collapsed by 80 percent, making imports more expensive and worsening inflation that is already out of control, with food costs rising 57%, according to official data. The result is a country hurtling towards bankruptcy, with hardly any money to import gasoline, milk, cooking gas and toilet paper.

Political corruption is also a problem; not only did it play a role in the country squandering its wealth, but it also complicates any financial rescue for Sri Lanka. Anit Mukherjee, a policy fellow and economist at the Center for Global Development in Washington, said any assistance from the IMF or World Bank should come with strict conditions to make sure the aid isn’t mismanaged. Still, Mukherjee noted that Sri Lanka sits in one of the world’s busiest shipping lanes, and so letting a country of such strategic significance collapse is not an option.

How is it affecting real people?

Tropical Sri Lanka normally is not lacking for food but people are going hungry. The UN World Food Program says nearly nine of 10 families are skipping meals or otherwise skimping to stretch out their food, while 3 million are receiving emergency humanitarian aid. Doctors have resorted to social media to try to get critical supplies of equipment and medicine. Growing numbers of Sri Lankans are seeking passports to go overseas in search of work. Government workers have been given an extra

What is the government doing about it?

A man waits to buy kerosene oil standing by a line of empty canisters placed outside a fuel station amid shortage of cooking gas in Colombo, Sri Lanka, Thursday, June 23, 2022. Sri Lankans have endured months of shortages of food, fuel and other necessities due to the country’s dwindling foreign exchange reserves and mounting debt, worsened by the pandemic and other longer term troubles. (AP/Eranga Jayawardena)

day off for three months to allow them time to grow their own food. In short, people are suffering and desperate for things to improve.

Why is the economy in such dire straits?

Economists say the crisis stems from domestic factors such as years of mismanagement and corruption. Much of the public's ire has focused on President Gotabaya Rajapaksa and his brother, former Prime Minister Mahinda Rajapaksa. The latter resigned after weeks of anti-government protests that eventually turned violent. Conditions have been deteriorating for the past several years. In 2019, Easter suicide bombings at churches and hotels killed more than 260 people. That devastated tourism, a key source of foreign

exchange. The government needed to boost its revenues as foreign debt for big infrastructure projects soared, but instead Rajapaksa pushed through the largest tax cuts in Sri Lankan history. (The tax cuts were recently were reversed.) Creditors downgraded Sri Lanka’s ratings, blocking it from borrowing more money as its foreign reserves sank. Then tourism flatlined again during the pandemic. In April 2021, Rajapaksa suddenly banned imports of chemical fertilizers. The push for organic farming caught farmers by surprise and decimated staple rice crops, driving prices higher. To save on foreign exchange, imports of other items deemed to be luxuries also were banned. Meanwhile, the Ukraine war has pushed prices of food and oil higher. Inflation

was near 40% and food prices were up nearly 60% in May.

Why did the prime minister say the economy has collapsed?

Such a stark declaration might undermine any confidence in the state of the economy and it didn't reflect any specific new development. Wickremesinghe appeared to be underscoring the challenge his government faces in turning things around as it seeks help from the IMF and confronts criticism over the lack of improvement since he took office weeks ago. He's also fending off criticism from within the country. His comment might be intended to try to buy more time and support as he tries to get the economy back on track. The Finance Ministry says Sri Lanka has only $25 million in usable foreign reserves. That has left

Wickremesinghe has ample experience. This latest is his sixth term as prime minister. So far, Sri Lanka has been muddling through, mainly supported by $4 billion in credit lines from neighboring India. An Indian delegation was in the capital Colombo on Thursday for talks on more assistance, but Wickremesinghe warned against expecting India to keep Sri Lanka afloat for long. “Sri Lanka pins last hopes on IMF,” said Thursday's headline in the Colombo Times newspaper. The government is in negotiations with the IMF on a bailout plan and Wickremesinghe said Wednesday he expects to have a preliminary agreement with the IMF by late July. The government also is seeking more help from China. Other governments like the U.S., Japan and Australia have provided a few hundred million dollars in extra support. Earlier this month, the United Nations began a worldwide public appeal for assistance. So far, projected funding barely scratches the surface of the $6 billion the country needs to stay afloat over the next six months. To counter Sri Lanka’s fuel shortage, Wickremesinghe told The Associated Press in a recent interview that he would consider buying more steeply discounted oil from Russia to help tide the country through its crisis.

A world apart, Lebanon and Sri Lanka share economic collapse By Zeina Karam & David Rising The Associated Press

ebanon and Sri Lanka may be a world apart, but they share a history of political turmoil and violence that led to the collapse of once-prosperous economies bedeviled by corruption, patronage, nepotism and incompetence. The toxic combinations led to disaster for both: Currency collapse, shortages, triple-digit inflation and growing hunger. Snaking queues for gas. A decimated middle class. An exodus of professionals who might have helped rebuild. There usually isn’t one moment that marks the catastrophic breaking point of an economic collapse, although telltale signs can be there for months — if not years. When it happens, the hardship unleashed is all-consuming, transforming everyday life so profoundly that the country may never return to what it was. Experts say a dozen countries— including Egypt, Tunisia, Sudan, Afghanistan and Pakistan—could suffer the same fate as Lebanon and Sri Lanka, as the post-pandemic recovery and war in Ukraine spark global food shortages and a surge in prices.

Roots of crisis

The crises in Lebanon and Sri Lanka are rooted in decades of greed, corruption and conflict. Both countries suffered a long civil war followed by a tenuous and rocky recovery, all the while dominated by corrupt warlords and family cliques that amassed enormous foreign debt

and stubbornly held on to power. Various popular uprisings in Lebanon have been unable to shake off a political class that has long used the country’s sectarian power-sharing system to perpetuate corruption and nepotism. Key decisions remain in the hands of political dynasties that gained power because of immense wealth or by commanding militias during the war. Amid the factional rivalries, political paralysis and government dysfunction has worsened. As a result, Lebanon is one of the most backward Middle East countries in infrastructure and development, including extensive power cuts which persist 32 years after the civil war ended. In Sri Lanka, the Rajapaksa family has monopolized politics in the island nation for decades. Even now, President Gotabaya Rajapaksa is still clinging to power, although the family dynasty around him has crumbled amid protests since April. Experts say the current crises in both countries is of their own making, including a high level of foreign debt and little invested in development. Moreover, both countries have suffered repeated bouts of instability and terrorist attacks that upended tourism, a mainstay of their economies. In Sri Lanka, Easter suicide bombings at churches and hotels killed more than 260 people in 2019. Lebanon has suffered the consequences of neighboring Syria’s civil war, which flooded the country of 5 million with about 1 million refugees. Both economies were then hit again with the onset of the coronavirus pandemic.

Tipping points

Lebanon’s crisis began in late 2019, after the government announced new proposed taxes, including a $6 monthly fee for using Whatsapp voice calls. The measures set a spark to long smoldering anger against the ruling class and months of mass protests. Irregular capital controls were put in place, cutting people off from their savings as the currency began to spiral. In March 2020, Lebanon defaulted on paying back its massive debt, worth at the time about $90 billion or 170% of GDP—one of the highest in the world. In June 2021, with the currency having lost nearly 90% of its value, the World Bank said the crisis ranked as one of the worst the world has seen in more than 150 years. In Sri Lanka, with the economy still fragile after the 2019 Easter bombings, Gotabaya pushed through the largest tax cuts in the country’s history. That sparked a quick backlash, with creditors downgrading the country’s ratings, blocking it from borrowing more money as foreign exchange reserves nosedived. On the brink of bankruptcy, it has suspended payments on its foreign loans and introduced capital controls amid a severe shortage of foreign currency. The tax cuts recently were reversed. Meanwhile the Sri Lankan rupee has weakened by nearly 80% to about 360 to $1, making the costs of imports even more prohibitive. “Our economy has completely collapsed,” the prime minister said Wednesday.

Upended lives

Before this latest descent, both Lebanon and Sri Lanka had a middleincome population that allowed most people to live somewhat comfortably. During the 1980s and 1990s, many Sri Lankans took jobs as domestic workers in Lebanese households. As Sri Lanka began its postwar recovery, they have been replaced by workers from Ethiopia, Nepal and the Philippines. The recent crisis forced most Lebanese to give up that luxury, among others. Almost overnight, people found themselves with almost no access to their money, evaporated savings and worthless salaries. A month’s salary at minimum wage isn’t enough to buy 20 liters (5 1/4 gallons) of gasoline, or cover the bill for private generators that provide homes with a few hours of electricity a day. At one point, severe shortages of fuel, cooking gas and oil led to fights over limited supplies—scenes now replicated in Sri Lanka. Cancer drugs are often out of stock. Earlier this year, the government even ran out of paper for new passports. Tens of thousands of professionals, including doctors, nurses and pharmacists, have left the country in search of jobs. Similarly, Sri Lanka is now almost without gasoline and faces an acute shortage of other fuels. Authorities have announced nationwide power cuts of up to four hours a day and asked state employees not to work on Fridays, except for those needed for essential services. The UN World Food Program says nearly nine of 10 Sri Lankan fami-

AN anti-government demonstrator holds a national flag and runs across tires that were set on fire to block a main highway during a protest against a ruling elite they say has failed to address the economy's downward spiral, in the town of Jal el-Dib, north of Beirut, Tuesday, January 14, 2020. AP/Bilal Hussein lies are skipping meals or otherwise skimping to stretch their food, while 3 million are getting emergency humanitarian aid. Doctors have resorted to social media to seek critical supplies of equipment and medicine. Growing numbers of Sri Lankans want passports to go overseas to search for work. In addition to the political and financial turmoil, both countries have faced disasters that worsened their crises. On August 4, 2020, a catastrophic explosion s truck Beirut's port, killing at least 216 people and wrecking large parts of the city. The blast, widely considered one of the largest non-nuclear explosions in history, was caused by the detonation of hundreds of tons of ammonium nitrate that was stored in a warehouse for years. The dangerous material was housed there apparently with the knowledge of senior politi-

cians and security officials who did nothing about it. There was widespread outrage at the traditional parties’ endemic corruption and mismanagement, which were widely blamed for the calamity. Sri Lanka faced a disaster in early 2021, when a container ship carrying chemicals caught fire off the coast of the capital of Colombo. It burned for nearly two weeks before sinking while being towed to deeper waters. The burning ship belched noxious fumes and spilled more than 1,500 tons of plastic pellets into the Indian Ocean, which were later found in dead dolphins and fish on the beaches. Fishing was banned in the area because of health risks associated with the chemicals in the water, affecting the livelihoods of some 4,300 families, who still have not received compensation.

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• Monday, July 4, 2022

The art and craft of fashion either defy gravity or succumb to it. There were dresses in marvelous states of suspended animation or others which manifested her organic fluid draping of fabric cascading sinuously over the body,” he added. “In creating a garment, she would apply two elements to her process: architecture and sculpture. The architecture would surface in the building of the form, the scaffolding, construction and the engineering that would support this masterpiece,” Higgins explained. “Always thinking in three dimensions, her final touch would be molding and manipulating the fabric onto the human form, transforming the wearer into an elegant human sculpture. Today, Slim’s body of work serves as testament to how clothing and textile can form just as powerful a narrative as any other artistic medium.” n

N June 29, the National Commission for Culture and the Arts (NCCA) and the Cultural Center of the Philippines paid tribute at the CCP to eight “extraordinary Filipino artists whose vision, imagination and dedication make manifest the genius and fire of the Filipino soul.” Earlier conferred the Order of the National Artists (Orden ng mga Pambansang Alagad ng Sining) by outgoing President Rodrigo Duterte, the exemplary Filipinos are Gemino Abad (Literature); screen Superstar Nora Aunor, writer Ricardo Lee and director Marilou Diaz-Abaya (Film and Broadcast Arts); opera singer Fides Cuyugan-Asensio (Music); choreographer Agnes Locsin (Dance); actor/director Tony Mabesa (Theater); and fashion designer/educator Salvacion Lim-Higgins (Fashion Design). “We honor our new National Artists whose constant and remarkable creativity guides us through the chaos, crises and challenges that unremittingly batter us, and infuses us with renewed strength, fortitude to move forward, hope to carry us, new ideas to energize us,” NCCA chairman Arsenio Lizaso said in his welcome speech. “As we go through the pandemic, widespread disinformation, and mediocrity that pervades and threatens to be the norm, their works emerge to be all the more important and crucial. This recognition is vital in guiding us toward what is truthful, excellent, liberating and edifying.” While musical and dance performances, film clips and dramatic excerpts were shown to highlight the works of the other National Artists, an exhibit of the couture creations Lim-Higgins, also known as Slim, was mounted at the CCP Lobby. The fabulous dresses include her earliest works from the late 1940s up to her last collection in 1990, the year she died. “Slim has always been my first choice for National Artist for Fashion. In fact, I think this award is so very much delayed! No other local designer had that discipline and mastery of clothes construction as she did,” says Dom Martin Hizon-Gomez, OSB, who, when previously known as the couturier Gang Gomez, honed his skills after he graduated at the Slim’s Fashion and Arts School in 1968. “Her exhibit at the National Museum many years ago already established her superior credentials and discipline. No amount of exquisite ornamentation can make up for a poorly constructed dress. I’m happy to say that since I studied at Slim’s before I went to New York to study fashion design, I felt well-equipped and prepared,” Dom Martin continues. “In fact, looking at my first works at Mayers School of Fashion Design, my teachers always asked where I studied fashion design before. I am most grateful to Slim’s for that important foundation, which still helps me now in designing liturgical vestments for the [Monastery of the Transfiguration in Malaybalay, Bukidnon].” Fresh out of Slim’s, young designer Dinnes Obusan won the bronze medal at the 2020 TernoCon, a ternomaking contest headed by lifestyle brand Bench and

MASTERFUL CONFECTIONS OF HER IMAGINATION

Salvacion LimHiggins creations. PHOTO OF MARK HIGGINS BY PAUL SUGANO

VISIONS OF SPRING-SUMMER 2022

the CCP. “As an alumnus of Slim’s, I am so happy and very proud because I have learned so much in fashion and dressmaking because of her and her school. Studying most of her work inspires a lot of students, and so I am who I am because of her,” shares Obusan. “The most important values and lessons that I learned from her and that I still apply up to now is being hardworking, meticulous, and putting love and effort in every creation that I make.” The gold-medal winner of TernoCon 2020 is also a Slim’s product, Hannah Adrias. “We’ve been waiting for this day to come because she deserves this. We are so proud and honored to be a Slim’s graduate. She was the standard. Her school produced some of the best designers known not only here in the Philippines but also worldwide, designers I look up to,” Adrias says. “What we are taught in school is called the Slim’s Method. Her precise way of drafting, cutting, and sewing garments, we are still using now. It still teaches us the value of hard work in

every piece we make and reminds us that there’s no shortcut to making a well-crafted garment.” Unlike the Nobel Prize, the Kennedy Center Honors (generally) and dames and knighthoods, the Order of National Artists can be given posthumously. So Lim-Higgin’s son, Mark Higgins, accepted the honor for her. “A truly great masterpiece, whether it is a painting or a sculpture, a novel, a piece of music or dance, is timeless. Something that is decades or centuries old can still inspire generations after it was created because it was original, beautiful and exquisitely crafted. The fact that my mother’s work still resonates with so many people today is an indication of that,” Higgins said. Observing her work while he was growing up is what made Higgins realize that fashion is actually both an art and a craft. “The art lies in the vision and the craft is in the application. The art is in the dream, the craft is in making it real. She would create these masterful confections of her imagination that would

GLOBAL fashion brand Max Mara imagines a writer—a smart, sulky, Beat Generation intellectual tapping out the story of a long hot summer on an old-school typewriter. It’s a sophisticated account of romance, intrigue, moral conundrum and elegant ennui, played out against a background of smart villas, secluded beaches, fast cars, boats, chic restaurants and casinos. Françoise Quoirez was such a writer. An ungovernable teenager, a devotee of Proust, Stendhal, Gide and Camus, she was twice expelled from school (once for hanging a bust of Molière). Under the nom de plume Françoise Sagan, her imaginary summer materialized as Bonjour Tristesse, the literary masterpiece which rocked the societal status quo. And the film of the book, directed by Otto Preminger, was hailed as a supreme cinematic achievement. The story’s protagonist, Cécile, gets to enjoy all the hedonistic and glamorous pastimes the author would have lived out on a real vacation. Max Mara dissects the sartorial persona of a Cécile: the bourgeois rebel. Sagan’s own style, easy beatnik chic, points to workwear classics—the fisherman’s smock, the laborer’s jacket, the mechanic’s overalls and carpenter pants are reimagined with prêtà-porter finesse. In crisp gabardine, canvas, impeccable poplin and boxfresh denim, they feature precise contrast top stitching. Tank tops and boyish sandals with chunky crêpe soles complete the bad girl look; chiffon embroidered with wispy feathers is a diaphanous counterpoint. The color palette runs from sand to tan, to navy to black, but there are pops of orange and yellow too. “We’re all existentialists now,” declare the pundits of modern philosophical thinking. Certainly, over the last year and a half, we’ve learned a thing or two about exploring our inner freedom, just like Sagan. To Max Mara, that sounds like exactly the right mix of high powered cerebral acrobatics and voluptuary indulgence for a very fine summer.

MAX Mara Spring-Summer 2022. Max Mara is now in the Philippines at Greenbelt 3, Ayala Center, Makati City

Products with azelaic acid, centella asiatica from Filipino brand ELLANA was probably the first Filipino brand to come up with mineral foundations. Most of my beauty friends swear by their powder foundations. It was just too bad that all their face bases are a bit too light for my yellow-toned skin but in terms of texture and longevity, I like their mineral powder foundation way better than Bare Minerals. I am very sweaty and Bare Minerals has a tendency to cake and clump on certain areas of my face when I sweat. Again, what works for one person may not work for another, so Bare Minerals may be okay for some but it cannot go the distance for me because I’m super sweaty. Ellana is not just about mineral makeup. I just scored some good deals on Ellana skin-care products at Shopee’s Local Beauty Festival with up to 73-percent storewide discounts and 15-percent off vouchers for a minimum spend of P1,250. Because I got P2,009 worth of products, I got a free Kallista Duo Flat-top Kabuki Brush and Eyeshadow Brush. There were also Php99 flash deals. The reason why I checked out Ellana on Shopee (bit. ly/3R38AwF) was because of the Clear Skin+ Clarifying Serum, which has 10 percent azelaic acid and extracts of centella asiatica and green tea. My skin might lack in moisture because of my age but some parts are still oily and I also have a lot of redness. Azelaic acid has antibacterial and antiinflammatory properties so it can be used by those with rosacea and acne.

I also got the Ellana Stay Fresh Moisturizer, which instantly mattifies skin and temporary blurs the look of pores. It has niacinamide to brighten dark spots and fight breakouts, while Pentavitin offers lightweight 72-hour hydration. Other ingredients include centella asiatica and green tea extracts that work together to heal any active blemishes; olive squalane that leaves skin hydrated, plump and soft; and vitamin B5, which moisturizes skin. I also got the Ellana Loose Mineral SkinShield concealer, which is buildable, lightweight, and protects against sun exposure with SPF16. The concealer’s ingredients include brightening and balancing minerals. It lasts for up to eight hours and is best for normal to oily skin. The one I bought on impulse was the Ellana Glass Skin Glow Cooling 3-in-1 Facial Mist. This is a setting

spray/face mist/illuminating primer hybrid that helps you achieve an instant “glass skin” effect, as it brightens and smoothens the skin. The mist’s ingredients include Mandarin Clear by Ichimaru Pharcos Japan (Citrus Nobilis Fruit Extract), which is clinically tested to strengthen proteins in the epidermis; Rosa Centifolia Flower Extract that soothes skin; glycerine, which helps skin retain moisture; and mica, which has shimmering properties that allow it to reflect light from the face and create an instant glow. I would not necessarily use this as a spray for the entire face but just apply it to certain areas. I love how Ellana has evolved, considering that people buy more skin care these days than makeup. Also, if any beauty enthusiast is reading this: Please, patronize beauty brands because the pandemic has really been challenging for them. I know, I have so many products at home but I continue to buy makeup and skin care to give as gifts because I really want to help these brands so they can stay on in the Philippines. These brands provide jobs to Filipinos, particularly makeup artists. I know that makeup and skin care are not necessities but for some of our countrymen, they make their money by making people more beautiful. So, please, buy from the local and international brands if you can. You can give the products as gifts, like I do.

THE Ellana Clear Skin+ Clarifying Serum is perfect for those with skin redness and acne. PHOTO BY JULIANA MAXINE VASQUEZ

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The coronavirus chronicles: What kind of worker are you?

PR Matters

O you “work to live” or “live to work”? Research at Yale, Jessic a St i l l m a n mentions in an article in Inc.com., says that people can be divided into those who see work either as a job, as a career, or even as a calling that is central to their identity. That is why when employers are looking for a type, but hire another, big problems arise. Global Management consulting firm Bain & Company recently spent a year surveying 20,000 workers in 10 countries, including the US, Germany, France, Italy, Japan, China, Brazil, Indonesia, and Nigeria, as well as conducting interviews with more than 100 employees. Stillman highlights the report in her article, New Report: There Are 6 Types of Workers. Understanding Them Can Help You Beat the Great Resignation. She mentions that Bain concluded that there are six worker orientations or what they call archetypes, each with its own strengths and weaknesses. “These archetypes help us better understand what it takes for different individuals to find a sense of purpose at work,” the report says. In short, “if you know who you are dealing with, you’re better placed not only to hire the right person for the right role, but also to help your existing team

Esports: Globe Prepaid equips budding esports content creators at GoESPORTS Game On Training Camp

MANILA, PHILIPPINES—Esports and content creation are becoming two of the biggest passion points of today’s youth, some even venturing to build a career out of it. With this, Globe Prepaid endeavored to hit the sweet spot with the GoESPORTS Game On Training Camp, a Virtual Hangouts event enabling budding esports content creators to harness their talents and make a mark in the gaming scene. As Globe Prepaid remains committed to fuel the passion of esports in the country, its very own GoESPORTS Game On Training Camp featured master classes on Shout-

casting 101, to Scriptwriting, to Spontaneous Speaking. This gave 18 participants the rare opportunity to learn from some of the Esport industry’s best talents when it comes to casting and content creation skills —giving them the tools they need to turn their gaming passion into their profession. The training camp, hosted on the Globe Prepaid Virtual Hangouts passion portal, featured distinguished mentors Archer Perez and BossLucio from the undisputed gaming and esports entertainment leader in Southeast Asia, Tier One. The pair, along with other industry giants, led sessions on the fundamentals of shoutcasting, streaming, video editing, content planning, and even dealing with online bashers. “Learning from the pros provides rich knowledge that is based on years of experience doing the craft, so we teamed up with the best in the industry who can teach and inspire our participants by sharing their own journeys both in esports and content creation,” said Givielle

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stick around.” So, what a re t hese a rc he types? Here’s how the Bain report describes them, along with the strengths and weaknesses of each type.

1. Operators

Operators are traditional workto-live types who find meaning and self-worth primarily outside of their jobs. When it comes down to it, the reports say, “they see work as a means to an end. They’re not particularly motivated by status or autonomy, and generally don’t seek to stand out in the workplace.” Preferring stability and predictability, “they have less interest in investing to change in their future compared to other archetypes.” At the same time, they are one of the “team-minded archetypes, and often see many of their colleagues as friends.” Strengths: Team players. Weaknesses: Not proactive. Easily disengaged

2. Givers

The authors of the report describe Givers as employees who “often gravitate towards caring professions as medicine and teaching, but also can thrive in other lines of work where they can directly interact with others.” As such, “they find meaning in

Florida, head of Globe Prepaid. Participants, all between the ages of 16 and 25, also enjoyed gaming action as popular gamers Yskaela and OhMyV33nus went head-to-head on Mobile Legends Bang Bang while Boss Lucio and Archer Perez casted their stream. Those inside the Globe Prepaid Virtual Hangouts passion portal likewise got the chance to vote for their chosen player, and one lucky voter won P3,000 GCash credits at the end of the game. Of course, the event couldn’t end without a meet-and-greet with BossLucio, Archer, Yskaela, and OhMyV33nus after the brawl. As a bonus to all their newfound learnings and their official Tier One certification, top Game On students became part of the AMPLFY Academy, a developmental program created for aspiring AMPLFY talents. They were also awarded with top-tier streaming/casting gears worth P40,000, including the latest Logitech Gaming Wireless Headset, HyperX Quadcast Microphone and

work that directly improves the lives of others, and are the archetype least affected by money.” While their empathetic nature makes them natural team players with deep personal relationships at work, at the same time, “their more cautious nature means they tend to be forward planners, who are relatively hesitant to jump at new opportunities as they arise.” Strengths: Selfless, help build trust within an organization. Weaknesses: Sometimes impractical or naïve.

3. Artisans

As their name implies, the report says Artisans “seek out work that fascinates or inspires them. They are motivated by the pursuit of mastery, and enjoy being valued for their expertise.” At work, Artisans “desire a high degree of autonomy to practice their craft and place the least importance on the camaraderie of all the archetypes.” Although they may find a higher purpose in work, “this is more about passion than altruism.” Strengths: Well-positioned to solve the most complex of challenges Weaknesses: Can be aloof and lose sight of bigger objectives

4. Explorers

Free-spirited explorers, the report says, “value freedom and experiences. They tend to live

Glorious Model O mouse. They will also showcase what they learned from the training camp as they take part in Tier One and Globe Esports events. These students who made it to the finals are: Lemuel Ian Manuel, Dan Levi Cuevas, Angel Aboy Maloloy-on, Pia Izella Magtibay, Lark Arielle Lo, James Bennette Strachan, and Eliana Saceda. Capping the GoESPORTS Game On Training Camp was “The Final Round,” a hybrid event held recently at XYLO at The Palace and streamed via GGWP Facebook page, Globe’s Twitch account and Globe Prepaid Virtual Hangouts passion portal. Opening the program, Tier One CEO Tryke Guiterrez shared his insights and personal experience on what it takes to make it in the Esports industry. He stated, “I think this platform really allows a lot of new players to come in, train, and learn from—what you need to be able to acquire in terms of skills and everything else when it comes to gaming. Isapuso niyo yung lahat ng natutunan niyo.”

in the present and seek out careers that provide a high degree of variety.” Explorers “place a higher-thanaverage importance on autonomy. They are also more willing than others to trade security for flexibility.” As their name implies, they often explore multiple occupations during their lifetime, and tend to adopt a pragmatic approach to professional development, obtaining only the level of expertise needed. Strengths: Will enthusiastically throw themselves at whatever task is required of them. Weaknesses: Can be directionless or lack conviction

5. Strivers

Strivers “are motivated by professional success, and value status and compensation. They have a strong desire to make something of themselves.” In short, it’s all about them. They are the very driven colleagues who “tend to define success in relative terms, and thus can be more competitive and transactional in their relationships than most other archetypes.” The report describes them as “forward planners who can be relatively risk averse, as they opt for well-trodden paths to success. Strivers are less willing to tolerate less variety so long as it is in service of their long- term goals.” Strengths: Disciplined and

Guiterrez added, “At the end of the day, you need to be able to pave your own path and be yourself. Try to find your identity and be a source of positivity for the gaming space because this is an industry that a lot of people look down on. So hopefully you can become ambassadors of the industry and create a better future for gaming and Esports.” Guiterrez was also joined by Tier One Talent Rojean Delos Reyes, and training camp mentors Archer Perez, Boss Lucio, and Odin Tayco. The night kicked off in a heated 3v3 tournament in Mobile Legends where the finalists showcased everything they learned in Virtual Hangouts’ GoESPORTS Game On Training Camp. Audiences watching at home were encouraged to vote for their favorite trainees who were crowned at the end of the night. Shoutcasting the match were fellow trainees Lemuel Ian Manuel for round one where the red team succeeded in destroying the enemy’s base. The second brawl of the night was shoutcasted by another fellow

transparent. Weaknesses: Their competitiveness can degrade trust and camaraderie within teams.

6. Pioneers

Pioneers, the report says, “are on a mission to change the world. They form strong views on the way things should be and seek out the necessary control necessary to achieve that vision.” The most risk-tolerant and future-oriented of all the archetypes, they identify profoundly with their work. Their vision, which can be altruistic, but is distinctly their own, matters more than anything. And they are willing to make personal sacrifices accordingly. Strengths: Infectious energy that can bring about lasting change. Weaknesses: Can be uncompromising and imperious. PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier association for senior professionals around the world. Millie Dizon, the Senior Vice President for Marketing and Communications of SM, is the former local chairman. We are devoting a special column each month to answer the reader’s questions about public relations. Please send your comments and questions to askipraphil@gmail.com.

trainee James Bennette Stratchan where the match went overtime, surpassing the typical 10 minute mark, and saw blue team coming out victorious. For the grand finale, Tryke Guiterrez together with Globe Prepaid Portfolio Head Anna Baldos, awarded James Bennette Stratchan as the Content Creator Winner, while they crowned Eliana Saceda as the Shoutcasting champion. The two finalists went home with a mentorship and certification courtesy of Tier One Entertainment plus a new set of streaming gear, to kick off their top tier talent journey. “It’s really great to see the future of the Esports industry pursuing their passions, forming bonds, and enjoying experiences that can help them own their future through Globe Prepaid,” said Florida. Head on over to globevirtualhangouts.ph where you can further fuel your self-discovery through engaging events like the Virtual Hangouts GoESPORTS Game On Training Camp.

Sports BusinessMirror

Editor: Jun Lomibao

SWIATEK’S 37-MATCH STREAK ENDS

ANOTHER MEET, ANOTHER GOLD E By Josef Ramos

RNEST JOHN “EJ” OBIENA booked another gold medal-winning leap—his second in a week—at the Jump and Fly in Hechingen, Germany, on Sunday. But his 5.80-meter performance that earned him the top of the podium wasn’t his goal in the meet which he also ruled last year. “I was just able to manage and I really don’t think that I rebounded. It’s an ugly performance because I haven’t fully recovered yet,” said Obiena, who was quarantined for eight days in mid-June after getting infected with Covid-19 in his base of Formia, Italy. He did beat the virus with a gold medal at Täby in Sweden last week, but wasn’t a hundred percent at the Bauhaus-Galan in Stockholm before the weekend where he finished sixth behind pole vault king Armand Duplantis who added more height to his world record. “There’re a lot of things to be done,” added the 26-year-old Obiena, who was joined on the podium in Germany by his hotel roommate Huang Bokai of China (5.50 meters) and Vincent Hobbie of Germany (5.10). The Tokyo Olympian missed matching his Asian record by a centimeter in the Täby meet and

ERNEST JOHN “EJ” OBIENA wins anew in Germany. managed only 5.73 meters at the Stockholm Diamond League where Duplantis raised the bar to 6.16 meters. He did 5.85 meters in ruling the Jump and Fly event in June last year in Mössingen, Germany. Obiena has won 13 gold medals so far since last year. These include the 5.93-meter Asian record he achieved at the Golden Roof Challenge on September 12, 2021, in Innsbruck and his successful defense of the Southeast Asian Games title in Hano last May. In the 32 international competitions since 2021, Obiena also bagged five silvers and one bronze.

Barangay Ginebra San Miguel, 82-85. “When I was in college in 2015 under former Knights coach Aldin Ayo in Team B, we were trained to do our very best at any given situation. I’m just applying that now,” he said. “Nobody was paying attention to me when I was drafted so I’m exerting all efforts. I just want to show what I’ve got.” Ular is a double-digit threat for the Bossing, having scored his career-high 19 points and 15 rebounds in a 90-89 victory over the Meralco last Thursday at the Smart Araneta Coliseum, a win the Bossing snatched on thanks to former Bolts guard Baser Amer’s jumper in the dying seconds. Josef Ramos

ROOKIE Renato Ular’s no pushover.

Tagudin hosts Ilocos Sur triathlon

UNDREDS of multi-sport enthusiasts from all over the country are expected in the Municipality of Tagudin for the Ilocos Sur Triathlon and Duathlon set July 23 and 24. The event is a joint project of the Municipality of Tagudin headed by Mayor Roque Verzosa, Jr., Chili Grass

and the Triathlon Association of the Philippines (TRAP). The races will be for standard (10km run/40-km bike/5-km run) and sprint (5-km run/20-km bike/5-km run) duathlon on July 23. The next day, it will be standard (1.5-km swim/40-km bike/10-km run)

A trip down memory lane AT the eastern end of Liberty Avenue that cuts across all the streets of Barangay Socorro from Edsa is Murphy. Well, the whole place was known as Murphy after Camp Murphy, the original name of Camp Aguinaldo when the Americans held base there. By the 1970s and 1980s and

IMBLEDON, England—Topranked Iga Swiatek was unbeaten since February and sure seemed unbeatable, compiling 37 consecutive match wins and six consecutive tournament titles. She’s never quite been as comfortable on grass courts as other surfaces, though, and a mistakefilled Saturday sent Swiatek out of Wimbledon in the third round with a 6-4, 6-2 loss to 37th-ranked Alize Cornet of France. “I know I didn’t play good tennis. I was pretty confused about my tactics,” said Swiatek, a two-time French Open champion who has never advanced past the fourth round at the All England Club. “For sure, it wasn’t a good performance for me.” It was not just the match’s winner that was unexpected. It was also just how one-sided this one-hour and 33-minute encounter was. “This kind of match is what I’m living for, it’s what I’m practicing for every day,” Cornet said. “It really drives me. I knew I could do it. Somehow, I had this belief.” No woman had won as many matches in a row as Swiatek since Martina Hingis also put together a run of 37 in 1997.

But right away, it seemed, this would not be Swiatek’s day. “I didn’t know what to do,” she said. Neither, several hours later, did fourth-seeded Stefanos Tsitsipas, who grew frustrated by what he called a “circus” atmosphere and “bullying” tactics by Nick Kyrgios, who cursed and argued his way to a 6-7 (2), 6-4, 6-3, 7-6 (7) victory. Kyrgios repeatedly berated chair umpire Damien Dumusois and insisted that Tsitsipas should be defaulted for hitting a ball into the stands near fans after dropping the second set at No. 1 Court. There was some simultaneous contentiousness across the way at Centre Court, too, although to a much lesser degree, as 22-time major champion Rafael Nadal beat No. 27 seed Lorenzo Sonego, 6-1, 6-2, 6-4. Nadal objected to Sonego’s elongated grunts and called him up to the net to discuss it—Sonego objected to that sort of face-to-face confrontation. Afterward, Nadal apologized, saying he shouldn’t have tried to engage his opponent that way. On a chilly, windy afternoon at No. 1 Court, Swiatek quickly fell behind 3-0 and of Cornet’s first 14 points, nine came via unforced errors off the racket of the 21-year-old player from Poland. Only one came via a winner

IGA SWIATEK’S never quite been as comfortable on grass courts as other surfaces, though, and a mistake-filled Saturday sends her out of Wimbledon in the third round. AP produced by Cornet herself. Normally so crisp with her shots, calm with her demeanor, Swiatek was not exactly at ease in either sense. After one missed forehand return, she swatted the toes of her right shoe with her racket. AP

AFF Women’s Championship kicks off

Tarlac’s Ular weaving wonders for Bossing ROM a nobody to the biggest steal of the draft, rookie Renato Ular isn’t done creating wonders for coach Ariel Vanguardia and the Blackwater Bossing in the Philippine Basketball Association Philippine Cup. The former Letran workhorse, picked by the Bossing at 13th overall—first in the second round—in last month’s draft, was responsible for Blackwater’s giantkilling ways over TNT Tropang Giga, NorthPort and Meralco. But despite enjoying a three-game winning streak that put them at solo third with a 4-1 win-loss record, Ular said they’re just getting started. “We’re not done yet,” the 27-year-old small forward told BusinessMirror on his way back to Manila from his native Tarlac City on Sunday. “Our focus remains one game at a time—that’s our concern.” “We’re not thinking of the team standings. It’s still 4-1 and we haven’t achieved anything yet,” he said. “There’s still a lot of work to do.” Ular, the youngest son of a brood of four of agricultural fertilizer trader Ely and Teresita, is averaging 14.4 points and 7.2 rebounds in his first five games with Blackwater, which so far lost to

mirror_sports@yahoo.com.ph | Monday, July 4, 2022 B7

FTER an absence of over two years, big-time international football action returns to the country Monday as the 12th Asean Football Federation (AFF) Women’s Championship kicks off at the heritagerich Rizal Memorial Football Stadium and two other venues. It will be a grand homecoming for the World Cup-bound Filipinas, bronze medalists in the last 31st Vietnam Southeast Asian Games, who will finally have the chance to play in front of hometown fans against topranked Australia in ushering Group A action to cap a trio of matches tomorrow. Aside from the Australians,

the Pinay booters, who arrived last Tuesday after more than a week of training in Europe, are also bracketed in the same group with Indonesia, Thailand, Singapore and Malaysia. Comprising Group B are defending champion Vietnam, Cambodia, Laos, Myanmar, Timor Leste, whose matches start on Tuesday, in the competition organized by the Philippine Football Federation. “We welcome our Philippine national women’s team and the other competing countries in the 12th AFF Women’s Championship. We look forward to exciting and thrilling action from our players in the spirit of fair play sportsmanship,” PFF president Mariano Araneta Jr. said. “Let us all support the Filipinas by coming over to watch and inspire them play at the Rizal Stadium in the next few days,” Araneta said in urging

local fans to pack the arena. “With the exploits of the Filipinas in the last Vietnam SEA Games football competitions still fresh in our memories, local football fans will finally be able to cheer and root for their soccer heroines in the flesh,” noted PFF general secretary Atty. Edwin Gastanes. National team manager Jeff Cheng likewise appealed to all Filipinos to support the PH women’s squad, saying: “This might be one of the rare occasions that we will get to see our Filipinas perform in front of a hometown crowd. Let us enjoy them while we can.” The AFF Women’s Championship is the 12th edition of the premier regional tournament for women that was last held in 2019 Chonburi, Thailand won by Vietnam, which nipped the host squad 1-0 in the finals.

Dutchman Jakobsen outsprints Van Aert to win Tour stage 2

YBORG, Denmark—Dutch rider Fabio Jakobsen overtook Wout van Aert right on the line for his first stage win on his debut Tour de France, while Van Aert took the yellow jersey for the first time on Saturday. Jakobsen had showed his prowess on the Spanish Vuelta, winning five stages, and clinched his first success in this race with a late burst to nick victory from Van Aert. It has been a long road back for Jakobsen. Two years ago, he was in an induced coma. He needed five hours of surgery on his skull and face after being sent flying through roadside crash barriers by Dylan Groenewegen near the finish line of the Tour of Poland. “Today it’s ‘incroyable’ as we would say in French. It’s been a long process step by step. A lot of people have helped me come back so this victory is to pay them back,” Jakobsen said. “I’m happy I still enjoy racing and I can win. The team kept me in good position in front at the end of the bridge.” It was a second win in two days for the Quick-Step Alpha Vinyl team after Yves Lampaert’s win in Friday’s time trial. Van Aert took the yellow jersey with a six-second bonus for finishing second, to lead Lampaert by one second overall. “It’s a great pleasure for me to wear the jersey. I’ve tried to get it many times. I’m very happy and proud,” Van Aert said. He also has the green jersey for best sprinter and is Primož Roglič’s teammate on the Jumbo-Visma team. “We have big ambitions,” Van Aert said. Two-time defending champion Tadej Pogačar stayed third overall and was eight seconds behind Van Aert. Pogačar remained nine seconds ahead of his main rival Roglič, who is eighth overall. They both finished in the main pack and did not take time off each other. Roglič was the Tour runner-up in 2020 and has won the past three Spanish Vueltas. AP THE Netherlands’ Fabio Jakobsen (left) crosses the finish line ahead of second place and new overall leader Wout Van Aert, wearing the best sprinter’s green jersey (right) and third place Mads Pedersen (center) in the second stage. AP

and sprint (750-meter swim/20-km bike/5-km run) triathlon. Each event will have its own awarding ceremony. At stake in the event supported by Smart, Asian Centre for Insulation Philippines, FINIS, ATAW Marketing, Standard Insurance, NLEX Corporation and Fitbar are cash prizes of P15,000, P10,000 and P5,000 for the top three finishers in the standard elite category for men and women in both disciplines.

well, to this day, when you say “Murphy”—or “Marphy” as others mis-pronounced it—it pertains mostly to the public wet and dry market. On days when I didn’t have football practice or I wasn’t in the Ateneo helping out with disaster relief work, I would go with my mom to market at Murphy or at Farmer’s Market. I hated it at first because it calloused my hands from carrying all these heavy bayongs filled with meat and vegetables. A classmate of mine teased me that no girl would want to hold hands with me because it was getting calloused. Obviously, I got frightened that I would end up as the last Filipino virgin. One day, while carrying the bayongs at Murphy, I spied a newsstand that sold Atlas Sports Weekly, Sports Flash, Champ, Jingle and Song Hits. And there was this poster of Sharon Cuneta. Yes, it sold for three pesos. And I bought what I could with the P20 I had. As for the Ate Shawie poster? I hung it underneath the top bunk of our double decker bed. Come on, who didn’t have a crush on Sharon then? I did.

I would even go pick up my sister at St. Paul’s Pasig just for a glimpse of Sharon. Well, I had that crush on her until Jackie Lou Blanco came along (remind me to tell you about my Jackie Lou Blanco story when I was in high school). But this isn’t just about Sharon and Jackie Lou. The sports magazines were life changing. Through the sports magazines, I entered a different world. I learned about local sports and the various personalities related to them. I read everything about our Philippine Basketball Association (PBA) players, tennis players, golfers, and then some. The sportswriters—Joaquin Henson, Henry Liao, Ajay Pathak, Ronnie Nathanielzs, Al Mendoza, Recah Trinidad, Tessa Jazmines, and many others became my writing gods next to comic book writers like Stan Lee, Steve Englehart, Marv Wolfman, Chris Claremont and others. And from the newspapers, I would cut out my favorite columns and paste them into a scrapbook. I had that for years and only lost them during Typhoon Ondoy. I wondered if I could be a sportswriter one day so I could

write about the Crispa-Toyota rivalry. Imagine years later when I have become exactly one and I remember those days. I grin from ear to ear. My entire family rooted for Crispa. I was the sole Toyota fan and had to endure countless taunts from my parents, uncles and aunts. Aside from Sharon and Jackie Lou, the walls of my bedroom were adorned by posters (that I bought from the Ateneo Grade School cafeteria) of players like Sonny Jaworksi and that King Eagle himself, Francis Arnaiz. I even had U-Tex’s Fritz Gaston but that was because he played for Ateneo. I had no Crispa players on my wall let me be clear about that. But if that were to happen today, I would because you learn to appreciate more. Those posters were sold at the Ateneo for five bucks. And like the Shawie poster, a princely sum back then. I write about this today because for the first time in ages, I found myself taking a detour to Murphy to avoid the traffic. The deluge of memories was welcome. And although there aren’t any more sports magazines sold on the newsstands (I checked), passing by still made my day.

ExecutiveViews BusinessMirror

B8 Monday, July 4, 2022

www.businessmirror.com.ph

JORGE VILANOVA

Accidental hotelier finds his way to Bagac, Bataan By Anne Ruth Dela Cruz

middle of a province.” He told his staff that Covid-19 would be over soon and that everyone had to get down to work. “In terms of the Filipino people, as I said before, I think it was an instant love match. We matched immediately. We wanted the same things. What I what to say is that I have never felt so much eagerness, so much interest, push and enthusiasm in making this happen because the staff feel like it is their home and they feel like this is a family thing. In terms of motivating people, absolutely zero problems,” Vilanova said.

‘I

T was actually a matter of chance.” That was the reply of Jorge Vilanova, Consultant and General Manager of Las Casas Filipinas de Acuzar in Bagac, Bataan, and a native of Spain, when asked how he got into the hospitality business. In an interview with BusinessMirror, Vilanova related that he had to go back to Costa Rica to wait for the processing of his residence papers that would allow him to work in the United States after his college graduation. While waiting for the papers, he was told to look for a job. “My father said, listen, you finished high school and you finished college. I cannot have you sitting at home all day just watching TV while you are waiting for your papers. So, get your butt out there and get a job,” Vilanova recalled with a smile.

Family friend

At that time, they had a family friend who owned a small hotel in downtown San Jose in Costa Rica. It had 56 rooms and it was, he said, a “one man band operation.” He worked as the bellboy, reception clerk and many other tasks all at the same time. “So when my papers came in and I was allowed to go back to the US, I went to Miami to live with my family and the first thing I thought was, okay, I would like to do this. I wanted to start working at Hyatt and then from there I started moving up, moving up,” he said. “That’s the gift. I love it and the reason why? I don’t know why but I am very happy and I will do it again. I don’t know if I could do anything else but work in the hospitality business. I was 22 years old at that time,” Vilanova said. Since then, Vilanova has worked in hotels and consultancy firms in Havana, Cuba; Dominican Republic; Croatia; Venezuela; Spain; Brazil; Bulgaria; Dubai, UAE; Bangkok, Thailand and Montenegro. To date, the Philippines is the 13th country that he has worked in.

I am not a boss. I am a leader. I would like to show the way, lead the way as well and I believe that everything has to be combined with team efforts.

Gaining trust

He added that just because the management of Las Casas announced his appointment as Consultant and General Manager does not mean that he would automatically gain the trust of the staff. He knew it was important for him to walk the talk. ‘I am not a boss. I am a leader. I would like to show the way, lead the way as well and I believe that everything has to be combined with team efforts. Yes, I am the GM and consultant of the property but I have a lot of talent around me who have been here for years. They know exactly what you know,” Vilanova said. At the end of the day, Vilanova said his job is to make sure that they will succeed in their tasks because if the staff succeeds, “that’s when the hotel succeeds,” Vilanova said. When asked about his favorite Filipino dishes, Vilanova said it was Pancit, Kare Kare and, in occasions the famous Chicharron. “I am amazed with the Filipino gastronomy, of how you mix your components because in Europe, you will never think of doing this. I mean you don’t mix shrimp paste with pork. Under western standards, that’s a no-no. But here, I don’t know how but it mixes magically,” Vilanova said.

Enjoy the sun

Freelancing

He pointed out that during his projects as consultant he worked for independent hotel groups, hotel owners and SME. This working arrangement has brought him to many countries, including South East Asia. “I don’t know why but I felt fascinated, overwhelmed by the beauty of the region, by the people, by the culture. So when I saw this ad on the Internet that Las Casas was looking for a general manager in the Philippines, I did not think twice. I sent my CV and asked if they were interested in expats and Ms. Jovy, who is now the head of Corporate Marketing and Sales, said yes. She said she would take a look at my CV and voila, here I am,” Vilanova said. With plane ticket and contract in hand, Vilanova was supposed to start working at Las Casas on September 7, 2021. At that time, however, the Philippines, specifically the National Capital Region and the province of Bataan, was placed under Modified Enhanced Community Quarantine (MECQ). This meant that no flights were allowed into and out of the country. “I was told then that the only way I could get into the Philippines was through a special business visa which entailed more paper work. So, I started sending papers to the Philippines, to the Las Casas office in Manila which started preparing the letters that I needed for the Department of Tourism and the Department of Foreign Affairs and they gave me two months extra to work on my papers. And of course, what else was I supposed to do but wait,” he said.

Researching on the Philippines

While waiting for his papers to be processed, Vilanova spent the time researching and learning more about the Philippines. Since he is from Spain, he knows that the Philippines is a country that is close to Spain’s heart, we share history and culture, with Spanish words in the Tagalog language (did you know

that Tagalog, and Spanish, are the only alphabets that have the letter “Ñ”?), similarity in the last names, the names of towns and even the food. “I am a foodie guy and I love food and beverage and I can see the names and the recipes, the chicharron, flan, lechon, arroz caldo and a long etcetera. These are things that

amazed me and made me so anxious to get here because I knew I would be able to connect,” he said. “I heard about the legendary smile of the Filipinos. There was something that I read in some place that Filipinos learn to sing before they learn to talk. And it’s true. It is just a metaphor but it really reflects the attitude and the spirit of

the Filipino, and your culture, and when I landed here, it was no surprise. I met exactly what I was reading about,” he added. Vilanova finally arrived in the Philippines at the end of October 2021 and buckled down to work. The first order of business was to come up with a recovery plan for Las Casas “which was in the

Vilanova has also grown to like Bataan where he gets “to enjoy the sun, the quietness of the resort in the beach.” “That’s something that is priceless for me. I enjoy this and I feel very comfortable here. If I don’t have any business calls in Manila, I would rather stay here in Bagac. It is perfect. Even the rainy season is okay. I have no complaints about this,” he said. As for his plans for Las Casas, Vilanova said some parts of Las Casas are currently being renovated with the hope of attracting more tourists in the coming months. For now, the place is highly dependent on Filipino tourists which, he noted, has been “improving spectacularly.” “The Filipino market is responding very well. We are in a privileged situation, two or three hours away from Manila and I am not even going into the uniqueness of this project called Las Casas Filipinas de Acuzar. It is a resort like no other in the, I would say, the region,” he said. Last year, Las Casas was awarded the 2021 Historic hotels Worldwide Best Historic Hotel in Asia and the Pacific by Historic Hotels Awards of Excellence. Las Casas is one of more than 300 hotels and resorts worldwide that is recognized by Historic Hotels worldwide for preserving and maintaining its historic integrity, architecture and ambiance. “It is a privilege that we got this award. I think that this is going to be our year and hopefully the Chinese market opens up soon. We are talking about 150 million passports here so that is a biggie for us. But until then, we are proving that we are moving in the right direction,” he said.