BusinessMirror July 18, 2023

By Lenie Lectura @llectura

THE Energy Regulatory Commission (ERC) is set to release an order that would effectively increase electricity rates brought about by a 2022 Supreme Court decision that nullified the agency’s 2014 order regulating the prices in the Wholesale Electricity Spot Market (WESM) for November to December 2013 supply months. We have already made the compu-

tation. I don’t want to release a number yet, but we are actually finished. It was Iemop [Independent Electricity Market Operator of the Philippines] that made the simulations. It is likely that we will have a two year, threeyear spread,” said ERC Chairperson Monalisa Dimalanta. T he amount that could be passed on to customers based on previous estimates when the SC released its July 2022 decision is estimated at anywhere from P17 billion to P22.4 billion.

“ Yes, it’s a huge amount. Definitely, it can’t be implemented in one year or two years. So, it’s likely a three-year spread,” said Dimalanta, while adding that implementation could start next year.  It may be recalled that the ERC capped the WESM prices in those two months of 2013 to address the abnormal spike and unreasonable prices of electricity imposed by power generation companies (gencos), which were being probed for alleged price manipulation in the spot market dur -

ing the maintenance shutdown of the Malampaya gas facility. From an estimated P24 billion, the impact to consumers brought about by very high WESM rates was reduced to P7 billion because of the ERC order. WESM is the country’s trading floor for electricity.

However, the SC said that the ERC order was issued even if the agency was still in the process of completing its findings on the possible abuse of market power.

BusinessMirror

REMITTANCES INCH UP BY 2.9% IN MAY TO $2.78B

By Raadee Sausa

THEremittances made by overseas Filipino workers (OFWs) in May reached $2.78 billion, higher by 2.9 percent than the $2.70 billion registered in the same month last year, data from Bangko Sentral ng Pilipinas (BSP) showed on Monday.

In a statement, the BSP attributed the increase in personal remittances in May to higher remittances sent by 1) land-based workers with work contracts of one year or more and 2) sea- and land-based workers with work contracts of less than one year.

For the first five months of the year, personal remittances grew by 3.1 percent to $14.46 billion, from $14.02 billion posted in the comparable period in 2022,” it said.

O f the personal remittances from OFWs, cash remittances coursed through banks rose by 2.8 percent to $2.49 billion in May 2023, from the $2.43 billion recorded in the same month last year, data showed.

C ash remittances expansion in May 2023 was traced to the growth in receipts from land- and sea-based workers.

On a year-to-date basis, cash

remittances reached $12.98 billion, 3.1 percent higher than the year-ago level of $12.59 billion,” the BSP said.

T he growth in cash remittances from the United States (US), Singapore, and Saudi Arabia contributed mainly to the increase in remittances in the first five months of 2023.

Country sources

MEANWHILE , in terms of country sources, the US accounted for the highest share of overall remittances during the period, followed by Singapore, Saudi Arabia and Japan.

T here are some limitations on the remittance data by source.

A common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the US.

See “Remittances,” A2

‘ASIAN

EMERGING MARKETS TO BENEFIT FROM GOODS TRADE’

By Andrea E. San Juan

UNITED Kingdom-based

think tank Oxford Eco -

nomics said that while global trade has surpassed the prepandemic expectations, emerging markets in Asia might be among those that will stand to benefit from goods trade as these markets have maintained their new exporting records.

“

Global supply-chain pressures are now lower than precrisis and global trade volumes remain well above precrisis levels. Goods trade benefited emerging markets [EM] in the last year or two, with terms of trade rewarding commodity traders and major manufacturing hubs, especially in EM Asia, maintaining their new exporting records,” Oxford Economics said in its Research Briefing on Monday.

T he think tank showed that

EMs benefited the most from the increased global goods trade of the post-pandemic era. Meanwhile, advanced economies’ (AEs) spending spree during the initial

phase of the pandemic recovery certainly played the biggest role.

It noted that increased merchandise exports persisted for the EMs even now that most of the “consumer bonanza” is over.

Meanwhile, the think tank said while emerging markets business sentiment “rebounded” strongly in 2023, it’s largely thanks to China’s reopening.

H owever, while short-term leading indicators suggest this is “likely to persist” a while longer and it might be EMs that currently stand to benefit relatively from goods trade, it’s only the advanced economies’ healthy demand that makes it possible.

A ccording to the Philippine Statistics Authority (PSA), the country’s export earnings posted a positive growth for the first time in six months in May 2023, with electronic products accounting for 57.5 percent or the largest share in the country’s exports pie.

T he People’s Republic of China was the country’s top export and import destination.

See “Asian,” A2

ARTA

THE Anti-Red Tape Authority

(ARTA) said it is “all geared up” for the full implementation of Executive Order (EO) No. 18, a measure meant to fast-track and streamline processes for strategic investments.

ARTA is all geared up for the full implementation of EO No. 18 to improve ease of doing business in the country and to promote economic development,” ARTA Secretary Ernesto V. Perez said in a statement on Monday.

T he EO, signed by President Ferdinand R. Marcos Jr. on February 23, 2023, was launched last July 13 in Pasay City.

T he country’s anti-red tape watchdog said it is “confident” that the measure will help the Philippines achieve its goal of becoming a “top investment

destination in the region.”

Perez stressed, “We are ready to take on the job of promoting foreign direct investments and streamlining the government approval and registration processes for strategic investments.”

A RTA bared its mission under EO No. 18. To ensure that government processes are efficient, effective, and accessible to all, it noted, “a timeline of 3-7-20 is imposed to the implementation of EO No. 18 to secure that all simple transactions are responded in three working days, while complex transactions are responded within seven working days, and highly technical transactions are responded by 20 working days.”

vows faster strategic investments flow in EO 18

Mayon evacuees suffer from acute respiratory infections

By Claudeth Mocon-Ciriaco @claudethmc3

Albay province.

I n a press briefing, Health Undersecretary Enrique Tayag said there is an increasing incidence of cough, colds and sore throat among the evacuees.

However, he said, there is no outbreak of respiratory infections in the evacuation centers.

O n Sunday, the Philippine Insti-

tute of Volcanology and Seismology (Phivolcs) recorded a total of 184 volcanic earthquakes. “Kung mapapansin niyo po itong reporting namin ay wala kaming sinasalaysay na sakit, syndromic surveillance po kasi ito [If you notice, in our reporting we are not citing incidence of disease, because this

there are no active Covid cases in evacuation centers after the four cases recorded on July 14 are already negative of the virus.

Meanwhile, Tayag said the local government of Albay will begin administering bivalent Covid vaccines in evacuation centers.

O fficials in the Bicol Region “reported to us that they will also mount inoculation drives in evacuation camps and they will use bivalent vaccines,” Tayag said, partly in Filipino.

Covid cases

M oving forward, Perez said, “We are committed to working with the DTI, the BOI, and other stakeholders to ensure the successful implementation of EO No. 18. We believe that this EO will help us attract more foreign direct investments and create jobs for our countrymen.”

U nder Section 10 of EO No.

18 (series of 2023), the anti-red tape watchdog is assigned as a member of the Technical Working Group (TWG) which shall act on complaints and take appropriate actions, consistent with its respective mandate, against third-party business consultants engaged by foreign and local investors who act in violation of Republic Act No. 9485, also known as the Anti-Red Tape Act of 2007, as amended.

A RTA, created under Republic Act No. 11032, or the Ease

is a syndromic surveillance],” Tayag explained.  If it is a suspected Covid, the DOH official said, the person will be tested.

A s of Monday, Tayag also said

of Doing Business and Efficient Government Service Delivery Act of 2018 (EODB Law), is tasked with streamlining and digitalizing all government processes to reduce red tape and promote ease of doing business in the country.

A ccording to the Board of Investments (BOI), EO 18 is a government-wide response to enhance the ease of doing business in the country by “expediting, streamlining and automating” government processes for

MEANWHILE , the DOH reported that 1,938 new Covid cases were logged from July 10 to 16, higher by 23 percent compared to the previous week. The average cases per day stand at 277. There were 26 deaths recorded which occurred from July 3 to 16.

strategic investments. Its outstanding feature is the provision for simultaneous processing of applications whereby National Government Agencies [NGAs] and Local Government Units [LGUs] that receive applications for permits and licenses are mandated to process the same with the presumption that the relevant documents from other agencies have already been issued and where the applicant firm shall execute an affidavit of undertaking that it has secured the relevant documents from specific NGAs or LGUs and that it shall submit the complete documentary requirements within 30 working days,” BOI said in a statement on Thursday.

T he BOI is the single point of entry for all projects qualified as Strategic Investments, EO 18 noted. A ndrea E. San Juan

Asian...

Continued from A1

C hina accounted for the highest export value amounting to US$1.07 billion, or a share of 16.6 percent to the country’s total exports during the month.

Other top export markets are the United States with US$1.01 billion or 15.7 percent of the total; Japan with US$930.56 million or 14.4 percent; Hong Kong with US$665 million or 10.3 percent, and Netherlands with US$346.65 million or 5.4 percent.

Meanwhile, China was also the country’s biggest supplier of imported goods valued at US$2.60 billion or 24 percent of the country’s total imports in May 2023.

R izal Commercial Banking Corporation (RCBC) Chief Economist Michael Ricafort stressed last week that “Trade deficit/ Net imports already among the narrowest in more than a year, thereby partly supporting the stronger peso exchange rate recently [peso among the strongest in 2 months]; also after relatively lower global oil and other commodity prices amid risk of recession in the US.”

R icafort said, “still relatively higher prices/inflation and interest rates/borrowing costs, locally and globally, also partly weighed on demand for some imports that helped narrow the trade deficit/net imports.”

A s for the exports growth, he said exports recovered to sixmonth highs after the pickup in electronic/semiconductor exports, which are the country’s largest exports. The growth in exports may be attributed, he said, to the easing of prices, “especially lower prices of global oil and other major commodities that reduced the input costs of exporters.”

A lso, remittances coursed through money couriers cannot be disaggregated by actual country source and are lodged under the country where the main offices are located, which, in many cases, is in the US.

T herefore, the US would appear to be the main source of remittances because banks attribute the origin of funds to the most immediate source.

C hief economist Michael Ricafort of Rizal Commercial Banking Corp. (RCBC) said that “remittances for the month of May [slightly faster against 1.8 percent a year ago—but the continued growth nevertheless is still a good signal for the economy] to $2.494 billion, [is] still among the lowest volume in a year or since May 2022.”

He added that the continued slowdown in OFW remittances data may also have to do with the still relatively higher prices in major host countries for OFWs that fundamentally reduced the remittances sent back to the Philippines.

The recent slowdown in OFW remittances,” he said, is “also partly because of the weaker peso exchange rate against the dollar compared to year-ago levels [about 10-percent peso depreciation compared to levels before the Russia-Ukraine war started in February 2022] that also partly reduced the need to send more OFW remittances because of higher conversion rate for the dollar against the peso,”

T he SC added the ERC failed to notify the affected parties about its probe, which violated the gencos’ right to due process.

“ The March 3, 2014 order acknowledged that it was based on an unfinished investigation, and yet it included a fallo (decision) voiding the Luzon WESM prices and imposing regulated prices instead,” the SC had said.

T he same SC decision upheld the ERC order allowing the Manila Electric Company (Meralco) to implement a staggered collection of automatic rate adjustments arising

V illafuerte allayed fears that the MIF could deplete the resources of its two main fund sources—the Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP)—and trim the outlays of these two government financial institutions (GFIs) that would otherwise go to sectors such as agriculture and industry.

T he Maharlika Investment Corp. (MIC), which will handle the MIF, has an authorized capital stock of P500 billion; and its initial paid-up capital will be P125 billion—P50 billion from the LandBank, P25 billion from the DBP, and P50 billion from the NG.

T he NG will source its MIF funds from the dividend contributions of the Bangko Sentral ng Pilipinas (BSP), the NG share of  Philippine Amusement and Gaming Corp. (Pagcor) earnings, and proceeds from the privatization

Prioritizing food events

SPEAKING at the launch, OIC-Undersecretary for Tourism Development Verna Buensuceso said: “We at the Department of Tourism, through our National Tourism Development Plan 2023-2028, prioritize projects like this to highlight the country’s unique narrative and cultural offerings. And part of what makes a Filipino distinct is the food we prepare, eat and serve. With a rich blend of Spanish, American, Chinese, Indian and Malay influences, Filipino food has won the hearts of people from all over the world and has even received recognition from international food connoisseurs.”

S he said the agency was “committed to sustaining this momentum

Ricafort added.

For his part, Michael Enriquez, chief investment officer at Sun Life Investment Management and Trust Corp., said that “although the remittance figure grew, it is still below the recent high registered in December.”

One aspect that may have contributed to this is the higher inflation from the source countries” which is “already affecting the amount available for remittance,” he added.

C hina Banking Corp., chief economist Domini Velasquez, meanwhile, said that cash remittances were up 3.1 percent from a year ago.

We think that continued growth in remittances was helped by slowing inflation in host countries, which gave overseas Filipinos more disposable income to send home,” she said.

“ Improvements in digital banking services and platforms also likely encouraged remittance inflows. Moving forward, we expect remittance growth to remain modest,” Velasquez added.

T he economist also said that resilient labor markets in advanced economies will continue to support inflows, but an economic slowdown remains a key risk.

However, continued recovery in sectors such as tourism will ensure a stable source of income from OFWs.

“For instance, higher demand for cruise tourism could lead to steady remittance inflows from some seabased OFWs,” Velasquez said.

from generation costs for November 2013.

M eralco informed the ERC  that the total cost of generation to be passed on customers amounted to P22.64 billion, equivalent to a generation charge for December 2013 billing of P9.1070 per kwh, which is an increase of P3.44 per kwh from the P5.67 per kwh that was billed in the previous month.

T he SC voided the ERC order to impose regulated prices during the same period in 2013 pending result of its investigation over allegations of market power abuse.

or sale of government assets.

A s pointed out by economic managers, Villafuerte said the P50-billion and P25-billion contributions of the LandBank and DBP, respectively, to the MIF are relatively small, considering that LandBank has P1.3 trillion in investible funds while DBP has P850 billion.

T hese GFIs’ contributions make up just 3 percent of the LandBank’s P1.3-trillion investible funds and 2.7 percent of the DBP’s investible funds, he said. The final congressional version of the enrolled MIF bill submitted to Malacañan Palace for the President’s approval and signature actually resulted from the agreement by members of the bicameral conference committee last May 31 for the House to adopt Senate Bill (SB) 2020, in lieu of reconciling it with HB 6608.

throughout the year, making the Manila Food & Wine Festival not just an event, but a catalyst for continuous growth and progress in our food and wine industry.”

Among the special guest merchants and innovators from the F&B industry at the launch were: Luisita Rum, Sebastian’s Ice Cream, Esguerra Kurobota, Destileria Limtuaco, Karabella Dairy, Macaron Macaron, and Mooncakes by the Hungry Chef, etc. There will also be collaborations between many of the country’s popular chefs in separate dining events in Tagaytay, Antipolo, and hotel restaurants in Makati and Manila. For more information and updates on events, The Manila Food & Wine Festival is on Facebook. Ma. Stella F. Arnaldo

THE Department of Health (DOH) on Monday reported that at least 1,624 residents who were temporarily evacuated suffered from acute respiratory infections amid the continued unrest of Mayon Volcano in

• Editor: Vittorio V. Vitug

By Samuel P. Medenilla   @sam_medenilla

PRESIDENT Ferdinand R. Marcos Jr. on Monday revealed that the proposal of the United States (US) for the country to become a transit point for Afghan nationals is facing “major obstacles.”

In an in terview with reporters after the signing in Pampanga of the memorandum of agreement (MOA) on the establishment of Kadiwa ng Pangulo in local government units (LGU) nationwide, the President has yet to decide on the said offer from the US government. “ We have made some progress, but there’s still some major obstacles to us being able to do it, but we continue to consult with our friends in the US,” the Chief Executive said.

H e noted the matter has become complicated since it involves not only political consideration, but also security concerns.

Last mon th, Marcos announced he is open to studying the proposal of allowing

Police bust dreaded Madriaga kidnap for ransom syndicate in Cainta, Rizal

By Rene Acosta @reneacostaBM

THE Water Resource Management Office (WRMO) of the Department of Environment and Natural Resources (DENR) is looking at an integrated water resources management approach at the national and regional levels going all the way down to barangay level to address the perennial problem of water supply shortage in the country.

DENR Secretary Maria Antonia YuloLoyzaga stressed this point in reaction to issues on the challenge of water supply shortage brought about by the increasing population and water consumption by an expert panelist during the Multi-Stakeholder Forum on Reclamation on Monday.

In particular, Yulo-Loyzaga was reacting to the presentation made by JanJaap Brinkman, director of Deltares Singapore, who said massive reclamation, including the construction of the Manila Bay bridge that will connect Cavite to Bataan, will cause people to move near Manila Bay areas, further stressing the already limited water resources available for the current population.

Brinkman led the team that crafted the Manila Bay Sustainable Development Master Plan and has worked on projects globally, including more than 10 years in Indonesia.

Brinkman’s team formulated different options to deal with the sinking and sea level rise in Jakarta.

In his presentation, Brinkman said while huge investments were poured in reclamation projects in Manila Bay, environmental challenges and problems caused by these projects become the sole responsibility of the government.

Brinkman underscored the need for a cumulative impact assessment that will address the projected population growth in the Manila Bay region, which was among the highlights of the Manila Bay Sustainable Development Master Plan.

An expert in water resources, climate change, drought, and flood risks management, Brinkman was particularly concerned about the projected population growth in Manila Bay, especially because of the urban expansion through land reclamation.

In response, Yulo-Loyzaga bared the DENR-WRMO’s effort to address the water issues.

“There is an effort...where the DPWH [Department of Public Works and Highways], DILG [Department of Interior and Local Government], Neda [National Economic and Development Authority], and LWUA [Local Water Utilities Administration] as well as MWSS [Metropolitan Waterworks and Sewerage System] to actually begin to cohesively manage water resources in the different regions, especially in Metro Manila and its surroundings,” the DENR chief said.

On Angat, she said there is a very intensive public and private cooperation at this moment between the two service providers, Maynilad and Manila Water, and MWSS.

“That is an ongoing dynamic discussion to provide water for NCR [National Capital Region]. T here is also a plan for the Bulacan area to actually have its own sustained water resources and not just rely on the share of Angat. We know that at this point,

about 1,000 US-bound Afghans to pass through the country.

H e reiterated that while the country is willing to accept refugees, the concerned Afghans are not considered as such.

The said Afghans helped the American forces during their war in Afghanistan and are now at risk of persecution from the Taliban and seeking to be resettled in the US.

Several government officials opposed the entry of the Afghans into the country since it might provoke retaliatory action from local Taliban supporters and some questions on the vetting process to be used by the US in relocating the Afghans.

Marcos said the assessment on the proposal would continue indefinitely.

Well, we have not given ourselves a deadline [to complete the study]. What we are talking about is that we’re trying to see what are the problems, what are the issues arising and so doing we are trying to find ways to remedy those issues that we feel are something that we have to deal with,” the chief executive said.

THE Philippine National Police-AntiKidnapping Group (AKG) busted one of the most dreaded kidnap-for-ransom (KFR) groups operating in the country with the arrest of all of its members during an operation in Cainta, Rizal.

The PNP said members of the Madriaga kidnapping syndicate were nabbed during an operation over the weekend as the group was planning to reassemble for another kidnapping job.

The operation resulted in the arrest of Ramil Lagonoy Madriaga, 55, resident of San Andres, Cainta, Rizal, who is reportedly the leader of the Madriaga kidnap-for-ransom

group and AKG’s fifth most wanted person at the national level. Also arrested were the other members of the group identified as Marcaida Patano, 53, resident of San Roque, Iriga City in the Bicol region; Ervyn Bernados, 32; Ronald Alivio, 44; and Richard Babagay, all of Cainta, Rizal.

Madriaga and his group members were arrested based on warrants of arrest for kidnapping for ransom that were issued by Regional Trial Court, Branch 21 Judge Alma Crispina Collado Lacorte in Manila.

“The Madriaga KFR group stands as among the most perilous criminal syndicates in recent police records and has been under thorough investigation for several months,” the PNP said in a statement.

“Infamous for their audacious acts of

violence and their involvement in a series of abhorrent crimes throughout the region, this group’s activities have caused the loss of innocent lives, including the tragic demise of a respected officer from the AKG during a confrontation with the criminals,” it added.

Meanwhile, PNP chief General Benjamin Acorda Jr. and Department of Information and Communications Technology (DICT) Secretary Ivan John Uy signed a memorandum of understanding (MOU) on Monday that fostered cooperation and innovation by the two agencies in the areas of information and communications technology.

“This MOU serves as the cornerstone of a dynamic and mutually beneficial partnership between the PNP and the DICT, working hand in hand to establish a harmonized

and seamlessly coordinated ICT system. This collective understanding will not only foster integration, interoperability, and interconnection between our respective systems and applications but also ensure their reciprocal enrichment and interdependence,” Acorda said.

On the other hand, Uy said the partnership between the PNP and the DICT holds the potential to revolutionize the approach to public safety and security.

“This collaboration represents a significant step towards our commitment to leveraging the potentials of information and communication technology or ICT in order to enhance the capabilities of law enforcement agencies and promote a safer society,” the DICT secretary said.

GATCHALIAN FLAGS BI FAILURE TO BLOCK ENTRY OF FOREIGN FUGITIVES IN POGOS

By Butch Fernandez @butchfBM

SENATOR Sherwin Gatchalian awaits

an explanation from the Bureau of Immigration (BI) for failing to block the entry into the country of foreign fugitives known to engage in various criminal activities, such as human trafficking and various online scams using Philippine Offshore Gaming Operators (POGO) as a front.

The senator recalled that just last June, police authorities conducted a raid

El Niño persists and rainfall continues to fall below expectations and that the agriculture sector will suffer the most, particularly in Pampanga and Bulacan,” Yulo-Loyzaga said. She added the integrated water management approach is high on President Ferdinand R. Marcos Jr.’s agenda and assured participants that the DENR-WRMO is already addressing issues raised by the resource speaker.

In her opening remarks, Yulo-Loyzaga said reclamation is an environmental issue that must be addressed from a lens that considers the “intersectionality” between ecological dynamics, socioeconomic and building environments, and the costs and benefits of such activities.

“Reclamation decisions must consider the interaction between land, air, and sea and the multitude of environmental factors from physics and chemistry of water, biodiversity, the demand for resources of food, power, and water,” she said.

During her talk, the DENR chief underscored the Manila Bay mandamus ruling, where the Supreme Court ordered 13 agencies with DENR as lead agency are mandated to clean, rehabilitate, and preserve the waters of Manila Bay and to restore and maintain its water sewer level fit for commercial propagation of shellfish and spawning area for milkfish.

The DENR chief also highlighted the country’s vulnerability to extreme weather events and multiple hazards like earthquakes, which should also be considered in implementing reclamation projects.

The Multi-Stakeholder Forum on Reclamation invited international experts as guest speakers to get valuable inputs from the experiences of other countries.

Mr. Obaid Ali Humaid Al Shamsi, a biologist from the Ministry of Climate Change and Environment of the United Arab Emirates (UAE) talked about UAE’s practice on reclamation projects, particularly on reforesting surrounding areas with mangroves and implementing coral farming.

Mr. Hiroyuki Kudo, First Secretary of the Embassy of Japan in the Philippines who worked at the Ministry of Land, Infrastructure Transport and Tourism and was involved in planning, budgeting, and design of airport and port projects discussed the interventions made for the reclamation in building the Haneda Airport, which underwent a series of large-scale expansions.

He also discussed the good practice of Kansai Airport, a fully reclaimed airport with two 4,000-meter runways and two passenger terminals that opened in 1994.

David Perkey, Program Manager, US Army Corps of Engineers (USACE), a research scientist for the US Army Corps of Engineers and worked as a manager for the USACE Regional Sediment Management Program, discussed about the Regional Sediment Management (RSM) program.

RSM, a systems approach using best management practices for more efficient and effective use of sediments in coastal, estuarine and inland environments for healthier and more resilient systems, was applied by USACE in reclamation projects.

Jonathan L. Mayuga

at Xinchuang Network Technology in Las Piñas, turning over seven foreign fugitives to the BI. One month earlier, seven foreign fugitives were also identified at the raided CGC Technologies in Sunvalley Corporation in Pampanga. Both Xinchuang and CGC were POGO-accredited service providers.

“Paanonakakalusotangmgapuganteng ito papasok ng bansa na kinukuha pa ng mga lisensyadong kumpanya ng POGO?” Gatchalian asked.

Based on police reports, the foreign fugitives, including individuals from

China and Taiwan, are wanted for assorted crimes, such as fraud, theft, drug trafficking activities, human trafficking, and online scams, among others.

“POGOs corrupt the system kaya maraming palusot ang nangyayari,” Gatchalian griped, warning that “by allowing these fugitives to enter the country, some BI personnel might have also been tainted by POGOs and the individuals involved should be properly investigated.”

The senator suggested, “The meticulous

MARCOS MOURNS DEATH OF 39 SOUTH KOREA FLOOD VICTIMS

PRESIDENT Ferdinand R. Marcos Jr. on Monday mourned for the 39 people who perished from the recent floods and landslides in South Korea.

“We extend our deepest condolences to the people of South Korea for the devastating loss of 39 lives resulting from the recent floods and landslide,” Marcos

said in a brief post in his Facebook and Twitter accounts.

His post in Twitter was viewed by 4,481 users as of 4 p.m., while the reposted message in Facebook received 632 shares and 133 comments.

T he said fatalities as of Monday were the result of the heavy monsoon downpour,

which hit parts of South Korea, causing floods and landslides since last week.

S even of the recorded deaths were from a flooded tunnel, two were from a collapsed building, while five others were from houses buried by landslides.

T he torrential rains also led to the evacuation of 1,500 people.

Makati mayor worries over fate of 300K residents of District 2

MAKATI Mayor Abby Binay expressed her apprehension on Monday over the welfare of over 300,000 residents affected by the Supreme Court decision in favor of Taguig.

In a video message aired on the city’s official Facebook page, the mayor assured the residents that she and the city government of Makati will be coordinating and working with the appropriate departments and agencies of the national government to address their plight.

“In the coming days, the city government and I will coordinate and work with the concerned national government agencies,” Mayor Abby said in Filipino. ”We will find a way for Makati to continue to be of assistance and service to you,” she added.

T he mayor also said the dispute with Taguig is not about the Bonifacio Global City (BGC) or politics but the welfare of Makatizens in the 10 barangays covered by the decision.

“It is painful, especially for me, to be separated from over 300,000 Makatizens who have been with us throughout the city’s recovery and progress,” she said.

The mayor expressed concern over the future of thousands of public school students.

“I am worried for the future of thousands of youth and students who will not be able to graduate from our public elementary and high schools in Makati, and at the University

of Makati. They will no longer receive the unique benefits and incentives that only Makati is giving. What will happen to them now?),” the mayor lamented. She also expressed concern over the health benefits of Makatizens in these barangays.

“I am concerned for the sick who are being cared for at our health centers and at the Ospital ng Makati or OsMak; they who enjoy benefits and quality but free health care that are given only in Makati. What will happen to them?,” she asked.

Ma yor Abby, who has always had a soft spot for the elderly, also lamented the plight of senior citizens.

“I am worried for our senior citizens who are receiving annual cash allowances and other special benefits from Makati that help meet their needs. How will they cope now?,” she said. It is them I am most concerned about. It feels like I have lost children, parents, and grandparents. I have nurtured and taken care of them from the very start,” she added.

The mayor said that in 2022 alone, Makati set aside over P9 billion for the welfare of District 2 residents.

“We do not regard these as costs. It is the right of every Makatizen, as taxpayers and residents of Makati, to share in the city’s progress,” the mayor said.

The mayor also expressed her disbelief over statements that Taguig is prepared to

FUTURE PLANNING: LIFE IN 2024 AND BEYOND

waste. They also will maintain experiments with emerging technologies that show growing value as they move into 2024.

Life in the 2030s

WHILE planning for 2024, it may make sense to look at life in the 2030s.

provide over 300,000 residents of the 10 barangays the same services and benefits they are receiving from Makati. She cited Taguig’s announcement that graduating senior high school students from these barangays can now avail themselves of their scholarship program.

The mayor, however, pointed out that based on their guidelines, they would not be able to immediately award the scholarship to over 3,000 Makatizen senior high school graduates set to enter college this year, since they do not meet the basic requirement of three-year residency in Taguig. Those who are 18 years of age must also be registered voters of Taguig, she added.

“Is it not clearly just an empty promise?,” she said.

Mayor Abby pointed out that Taguig has not been providing its residents the same quantity and quality of services enjoyed by Makatizens when it claims to collect substantial revenue from BGC establishments.

“I suppose these can be given to Taguig residents, considering the hefty revenues the local government claims to have been generated from BGC. But why haven’t they done it? Shouldn’t the residents of Taguig get to share in the city’s prosperity?,” the mayor said.

The mayor reassured residents of the 10 barangays that she and the city

want to be dominated by AI in future? To

what extent will AI drive job losses, changes in work from home? How will Filipinos gain strong Internet connectivity to service clients all over the world?

There are some trends revealed in latest global surveys on consumer attitudes towards health and wellness.

The future of wellness

scrutiny shown by immigration officers towards outbound Filipino passengers, including demanding numerous documents such as birth certificates and transcript of school records, should also be applied to suspicious inbound passengers to prevent the entry of criminal elements.” G atchalian, chairman of the Senate Ways and Means Committee, has been calling for the expulsion of POGOs, warning that the existence of POGOs greatly contribute to the deterioration of peace and order in the country.

Marcos said the country is ready to provide aid to the South Korean government as it deals with its recent calamity.

“ The Filipino people are with you, offering our steadfast support during this challenging time,” the Chief Executive said. Earlier this month, he reiterated his interest to enter into a deeper bilateral cooperation with South Korea as one of the country’s top trading partner.

Samuel P. Medenilla

government are ready to help them, and

they will remain Makatizens.

“My fellow Makatizens, let us unite and join hands. We will not give up. I will not give up. As your Mayor, I promise that I will see this through until the end, I will not abandon you. Just keep on holding on. No one should let go,” she said.

Public school students of Makati are taken care of from head to foot. They receive free uniforms, school shoes, the AB sneakers, school bags, raincoats, thermal flasks, socks, dental hygiene kits, and even dengue kits. The kids also receive free vaccination, dental cleaning, and free nutritious snacks on school days. Graduates also receive cash incentives from the city.

The Makati Health Plus Program or Yellow Card gives members free access to all the services of Ospital ng Makati, including outpatient, emergency, and inpatient care, 24/7 outpatient and diagnostic services at Makati Life Medical Center, and free medicines that include maintenance medicines for lifestyle diseases.

Under the Blu C ard program, senior citizens receive yearly cash allowances, centenarian cash gift, birthday cakes, free movies, and burial assistance, among other benefits.

The Supreme Court recently awarded to Taguig 10 residential barangays in Makati’s second district with an estimated population of 300,000. These are Barangays Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo, Pitogo, Rizal, Northside and Southside.

be focused on more and more.

The future of exciting shopping

By Henry J. Schumacher

headwinds coupled

unexpected

For many companies—and many industries—the Covid-19 pandemic set off a period of head-spinning change. They realized they could move faster than they ever thought possible. They went digital in a matter of days, not years. They offered new services almost overnight. If companies sustain this newfound speed and agility, it’s conceivable that more innovation will happen in the next 10 years than in any previous decade in modern history. Life in the 2030s could vastly differ from today.

THE wellness market is booming. Consumers intend to keep spending more on products that improve their health, fitness, nutrition, appearance, sleep, and mindfulness.

The future of your digital strategy

IT’S critical to think about your digital strategy in a broad sense. From a channel perspective, are you well set up to succeed especially in e-commerce. From a marketing perspective, are you leveraging the power of social media and influencers?

BY 2030, we may see a completely different store experience. It’s about capturing that concept of discovery, whether through services, classes, or just a curated, exciting, and gamified experience that brings consumer in—for example, being able to see 3-D versions of your face and being able to apply color cosmetic products to it so that you then could simply hit the buy button and have the products sent to your home. Basically, we can touch this exciting shopping already today.

The future of Integrity

trickier

Leaders must temper their overly optimistic predictions for budget increases with discipline and precision.

Those who come out on top in 2023 will prioritize investments that maximize revenue growth, profitability, and resilience while cutting spending in areas prone to

Visualizing the future

THE demand for natural and “clean” products is steadily growing; sustainability is becoming a key driver. Digital and social channels are becoming significantly more influential.

Generative Artificial Intelligence (AI) is hitting us and makes us shiver. How much do we

The future of data partnerships

DATA is going to be the key. Having a way to tie these different data systems together is probably the best secret. Interconnectedness of data and data partnerships are going to be the real opportunities. Data security is playing a bigger role by the day. Personal security has to

THE future we are heading into—short-term, mid-term, long-term—cannot be without Integrity. Integrity must be part of the learning process for young people, it must be part of the working process and business process for the private sector, and it must definitely be part of government’s processes—national and local. Let’s all commit to contribute to the creation of a great future!

I am aware that there are plenty other ideas regarding the future but have space limits; if you have ideas regarding today’s subject, send it to me at hjschumacher59@ gmail.com

‘Major obstacles’ hinder proposed hosting of Afghan refugees–PBBM

WRMO eyes national, regional integrated water resource management down to barangay level

ECONOMIC

with

trends in employment will make planning and budgeting for 2023

than normal.

Govt widens digital services with eLGU, eReport launch

By Samuel P. Medenilla @sam_medenilla

THE public can now expect faster processing of transactions with local government units (LGU) and prompt

emergency response with the two new additions in the government’s growing digital services, President Ferdinand R. Marcos Jr. revealed on Monday.

The President led the launch of the Electronic Local Govern -

ment Unit System (eLGU) and the Peoples Feedback Mechanism (eReport) in Malacañang, which he said would help in his administration’s drive to streamline public service.  Both systems were developed

by the Department of Information and Communications Technology (DICT) and the Department of the Interior and Local Government (DILG) to help “promote transparency, innovation and efficiency” in government operations.

“These programs mark the paradigm shift in a way that government and citizens interact with one another,” Marcos said.  Under the e-LGU, users can process their business permits and licenses, local tax, local civil registration, real property tax, and barangay clearance.

“In partnership with ARTA [Anti-Red Tape Authority], this will complement our efforts in eliminating unnecessary layers of bureaucracy as well as making government transactions easier and more efficient,” Marcos said.  Meanwhile, the eReport will allow its users to report any concerns to the Philippine National Police and the Bureau of Fire Protection.

“I am optimistic that this system will be used to help curb criminality, lawlessness and ensure immediate responses to various incidents across the country. Thereby

making our communities safer and more secure for everyone,” the Chief Executive said.

He urged government agencies and other LGUs to continue to coordinate with the DICT on how they digitalize more of their operations, which will be integrated in the eGov PH Super App—the multi-sectoral application for all government institutions, which was launched last month.

To facilitate the greater use of the government’s digital systems, Marcos called on the DICT, DILG and LGUs to efficiently implement Executive Order No. 32, which streamlined the permit processing for the construction of telecommunications and Internet infrastructures.

“Let us continue to transform the way we serve the Filipino people. Let us usher in a future fueled by digital empowerment and inclusive progress,” Marcos said.

Teves Jr. moves for dismissal of criminal charges over killing of Degamo, 9 others

By Joel R. San Juan @jrsanjuan1573

THE Department of Justice

(DOJ) has already submitted for resolution the preliminary investigation into multiple murder charges filed against suspended Negros Oriental 3rd District Rep. Arnolfo Teves Jr. in connection with the killing of Negros Oriental Governor Roel Degamo and nine others last March 4.

FFW urges lawmakers to hasten passage of pending wage hike bill

By Patrick V. Miguel

FOLLOWING the P40 wage hike that took effect on Sunday, labor group Federation of Free Workers (FFW) called on Congress for the passage a pending legislative measure to increase minimum wage by P150.

W ith the recent Pulse Asia nationwide survey indicating 97 percent of respondents in favor of the P150 increase of minimum wage, Senate President Juan Miguel “Migz” F. Zubiri assured that the Senate will make a “stand” with the issue.

L ast May, the Senate labor panel approved “on principle” a proposal for a P150 minimum wage hike.

The FFW urges Congress to fast track the P150 daily wage hike across the nation and appeals to other regions to promptly enact their regional wage orders,” the labor group said in a statement.

O ther labor organizations reacted to the P40 wage hike, filing an appeal on July 3 to increase the minimum wage hike.

T he National Wages and Productivity Commission (NWPC) has yet to resolve the appeal, but is expected to resolve it within 60 days from the filing date.

A Filipino family requires a monthly income of P42,000 to lead a decent life, said former Socioeconomic Planning Secretary and National Economic and Development Authority Director General Ernesto Pernia in 2018.

PRESIDENT Ferdinand R. Marcos Jr. said his next State of the Nation Address (SONA) will be “very simple” and would cover updates on the commitments he made last year.

Marcos made the pronouncement in an interview with reporters after witnessing the signing of the memorandum of agreement (MOA) on the establishment of Kadiwa ng Pangulo in local government units (LGU) nationwide in the City of San Fernando in Pampanga on Monday.

“It’s just a performance report for Filipinos to see if the many pro-

I n an interview after the preliminary investigation conducted on Monday, lawyer Andrei Bon Tagum, counsel of Degamo’s widow and Pamplona Mayor  Janice Degamo, said Teves opted to file a motion to dismiss the case instead of a counteraffidavit to refute the charges.

“ They just submitted a motion to dismiss, questioning the jurisdiction of the panel of prosecutors.

It is prejudicial to the general rule that a motion to dismiss is not allowed. They should have submitted a counter-affidavit,” Tagum said.

S ince Teves’s camp did not submit a counter-affidavit, the case is now submitted for resolution on the basis of evidence submitted by the National Bureau of Investiga -

tion (NBI) and on the affidavits of several witnesses, including the extrajudicial confessions executed by some of the suspects despite their recent recantations.

In his 26-page motion to dismiss filed through lawyer Ferdinand Topacio, Teves argued that the case against him should be dismissed due to lack of evidence to support a finding of probable cause.

Teves said the extrajudicial statements of the 10 accused implicating Teves in the Degamo slay case has been rendered worthless following their recantations.

He noted that the accused executed their affidavits without assistance of counsels of their own choice.

“Conversely, their respective affidavits of recantation were prepared

with the assistance of counsels of their own choice, subscribed and sworn by them before the special panel in compliance with the strict requirement… of the Rules of Court,” Teves said.

W ith the recantations of the other suspects, Teves insisted that there is no more evidence that would link him in the Degamo slay case.

“ Here, the extrajudicial admissions themselves have already been recanted and no other pieces of evidence, direct or circumstantial, is extant to corroborate the same extrajudicial confessions on the alleged conspiracy and the participation of Teves Jr.,” the motion stated.

“ Therefore, the recanted confessions of the 10 suspects, which was the sole evidence against Teves Jr., have no probative value and are

By Lenie Lectura @llectura

nouncements and words, which were made [in the last SONA], have any significance [for them],” Marcos said.

T he Chief Executive said he is still preoccupied in completing his SONA speech and that he has yet to decide on what to wear for the event.

“I want to explain to people that we have made significant progress. We can see the difference now, not only in terms of how the systems work, how the government works. It is also how we are seen or judged in the international community. That’s

equally important,” Marcos said.

The President is set to deliver his secondSONAonMonday,July24,2023.

Days prior to the event, Marcos was still busy initiating some of the projects and commitments he made during his SONA last year.

inadmissible as evidence against him,” it added.

Topacio earlier denied that his client had a hand in the recantations of the other suspects.

A side from the Degamo murder case, Teves is also facing preliminary investigation before the DOJ for multiple murder charges in connection with the 2019 killing of former Negros Oriental Board Member Miguel Dungog and two others, as well as complaints of illegal possession of firearms.

Teves, who has denied any involvement in the Degamo killing, has yet to return to the country since he left last February 28 to undergo stem cell treatment in the United States, citing alleged threats to his life.

are exempted because the circular cannot be retroactive.

OIL firms will implement a hefty fuel price increase this week.

T hey said in separate advisories that gasoline prices will go up by P1.90 per liter, diesel by P1.80 per liter, and kerosene by P2.10 per liter.

The upward adjustment will take effect for Shell, Caltex, Petron, Total, Unioil, PT&T, Phoenix, and Seaoil at 6 a.m. July 18, Tuesday.

Cleanfuel, meanwhile, will implement the increase at 4:01 p.m.

O ther oil firms are expected to make similar announcements during the day.

The price hikes are due to Russia’s announcement that it is cutting oil production in a bid to support prices.

L ast week, oil companies implemented a decrease of P0.20/liter for gasoline. The price of diesel and kerosene went up by P0.75/liter and P0.50/liter, respectively. These price adjustments resulted in a year-to-date net decrease of P2.95/liter for diesel and P5.50/liter for kerosene.

Gasoline, on the other hand, has a net increase of P5.65/liter.

Oil firms adjust their pump prices every week to reflect movements in the world oil market. Lenie Lectura

By Rene Acosta @reneacostaBM

THE commitment of the US to boost the country’s defense capability is inching towards its implementation as officials from both sides wrapped up a three-day meeting where an assistance roadmap has been initially drawn.

The meeting last week between the two countries has provided the impetus for the realization of the US assistance, especially in the areas of interoperability and capability, according to military public affairs office chief Lt. col. Enrico Gil Ileto.

I leto said members from both sides met for the Philippines and US Security Sector Assistance Roadmap (PH-US SSAR) Working Group Workshop where US military aid for the country has been initially identified and discussed.

I leto did not say the proposals and recommendations that were made by the working group, whose meeting was wrapped up by the presence of Kidd Manville, country director for the Office of the US Secretary of Defense and Major Gen. Jeffrey Hechanova, the

Armed Forces of the Philippines

(AFP) Deputy Chief of Staff for Plans and Brig. Gen. Leo Edward Caranto, assistant deputy chief of staff for logistics.

Th e three-day workshop held in the country was spawned by the agreements made during the 2+2 Ministerial Meeting by then Department of National Defense Officer-in-Charge Carlito Galvez Jr. and Department of Foreign Affairs Secretary Enrique Manalo with US Secretary of Defense Lloyd Austin III and US State Secretary Anthony Blinken held last April 11 in Washington, DC.

D uring the inaugural ministerial meeting, the US and the Philippines agreed to develop a long-term plan to address the AFP’s defense capability requirements and to further enhance joint interoperability between the US and the Philippines under the 1951 Mutual Defense Treaty (MDT).

Currently, the Philippines and the US are holding two bilateral military training in Luzon and Visayas involving their Air Force and Marine forces, with American troops utilizing some of their state-of-the-art assets and equipment in the war games.

A mong the said activities was his inspection of the site of the Clark Multi-Specialty Medical Center (CMSMC) in Clark Freeport Zone in Pampanga last Monday and the expected signing of the law creating the Maharlika Investment Fund on July 18, 2023.

ENERGY and consumer advocacy groups on Monday filed a petition against the Department of Energy (DOE) for allegedly exempting the power supply agreements (PSAs) forged in Mindanao from the conduct of competitive auction.

Samuel P. Medenilla

PHL, US outline security, defense aid road map in SSAR workshop

S eparately, the Philippine Navy will also start today its naval training with the Australian Navy, while the Philippine Army (PA) is holding an exercise with the Indonesian Army in Manado, Indonesia.

The PA has just concluded in Central Luzon its Salaknib exercise with the US Army in the Pacific (USARPAC).

A ccording to Ileto, the US SSAR with partner countries usually involves the provision of support, training and assistance in order to strengthen their security sectors, including defense forces.

“ This partnership aims to promote stability, build capacity and enhance the effectiveness of the partner country’s security forces,” he said.

I leto said the recommendations made during the PH-US SSAR working group meeting would be deliberated, refined and approved by the Mutual Defense Board—Security Engagement Board (MDB-SEB) co-chaired by the AFP chief of staff and the commander of the US-Indo Pacific Command.

The next MDB-SEB meeting is scheduled to take place in September in Manila.

T he groups, in a statement, said they filed before the Court of Appeals (CA) a petition for certiorari seeking to overturn the agency’s directive that exempted PSAs executed before June 30, 2015 from the competitive selection process (CSP).

A s of press time, the DOE said it was still verifying if it issued a circular on CSP exemption.

L ed by the Bukluran ng Manggagawang Pilipino (BMP) representatives Ka Leody de Guzman and Luke Espiritu, the petitioners said that under Electric Power Industry Reform Act of 2001 (EPIRA), power distribution utilities have the obligation to supply electricity in the least cost manner to its consumers.

Ayon sa EPIRA, ang batas na gumagabay sa industriya ng kuryente, dapat lahat ng kontrata o PSA ng kuryente ay dumaan sa proseso ng least cost, o pinakamababang halaga. Hindi kasalanan ng mga mamamayan na kahit noong 2001 pa ipinasa ang EPIRA, noong 2015 lang nagkaroon ng regulasyon ang DOE,” said de Guzman in the statement.

T he groups said it took several years before the DOE issued the CSP circular.

P ower for People Coalition convenor Gerry Arances questioned DOE’s alleged failure to carry out its mandate.

“At the center of the discussion is a DOE circular laying out the CSP. The DOE then said that PSAs submitted to the ERC [Energy Regulatory Commission] before June 30, 2015, when the circular took effect,

B ut there is no retroactivity involved—the law took effect in 2001 and the DOE failed to follow it. Why is it giving a free pass to all these Mindanao PSAs, causing so much unnecessary suffering for Mindanaonons over high power rates? Furthermore, there are other issuances from the ERC prior to this circular which mandated all PSAs undergo the CSP,” said Arances. Espiritu, who is also the legal counsel of P4P, stressed that PSAs that underwent CSP resulted in cheaper power rates compared to negotiated power deals.

The whole point of a PSA is to get a stable supply that insulates consumers as much as possible from high prices. The contracts that did not undergo CSP locked Mindanao consumers into years of exorbitant electricity prices.

The fact that these rates are even higher than WESM [Wholesale Electricity Spot Market] illustrates how preposterously expensive they are. Almost all these PSAs were signed with coal power plants and deprived consumers of the benefit of renewable energy. Hydroelectric power in Mindanao is cheaper by P11 per kilowatt hour, but it was not even considered,” said Espiritu. D e Guzman urged the CA to take urgent corrective action, given the number of years since these PSAs took effect. “Masyadong matagal nang pinabayaan kumita ang mga malalaking kumpanya ng kuryente sa paraan na hindi alinsunod sa batas at interes ng mga mamamayan. Umaasa kami na makikita ng CA ang hustisya sa aming petisyon at ipagkaloob ito sa lalong madaling panahon para maipamalas sa lahat na hindi gatasan ang mga gumagamit ng kuryente. Isang serbisyo publiko ang kuryente, at dapat una lagi ang interes ng tao sa pagpapalakad ng industriya ,” said de Guzman.

Government urged to tap UP scientists to develop flood, drought-resistant crops

WITH the country’s farmers facing the threats of the El Niño phenomenon, a lawmaker on Monday urged the government to tap educational institutions like the University of the Philippines (UP) to produce crops that can survive extreme weather conditions that lead to extended droughts and damaging floods.

H istorically, AGRI Party-list Rep. Wilbert T. Lee said the El Niño has caused severe droughts that lead to water supply issues and subsequently, crop failure.

We should all be deeply concerned about the looming threats of El Niño and its potential negative impact on our agricultural productivity, particularly rice production,” said the lawmaker from Bicol in a statement.

In addition to this, extreme weather events such as floods further exacerbate the challenges faced by our farmers. To address these challenges, we must utilize cuttingedge scientific approaches and maximize the wealth of knowledge in our state educational institutions

and science centers,” he added.

I n its first El Niño advisory, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) on July 4 announced that “recent Pagasa climate monitoring and analyses indicate that the unusual warming of sea surface temperatures along the equatorial Pacific that was established in March 2023 has further developed into a weak El Niño, which show signs of strengthening in the coming months.”

To address this urgent issue, the lawmaker said the government should consider harnessing the expertise and resources of state educational institutions and science centers in a concerted effort to advance agricultural genomics research.

By doing so, we can work towards developing drought and flood-resilient strains of rice that will safeguard our food security and mitigate the adverse effects of climatic uncertainties,” said Lee. The lawmaker said that recent

UP initiatives should be maximized by government to benefit Filipino farmers constantly threatened by droughts and typhoons.

L ee said one of these is a recent $14.95 million agricultural genomics agreement between the UP and the Korea International Cooperation Agency (KOICA) to conduct the project, “CapacityBuilding for Higher Education and the Establishment of Agricultural Genomics Research Center at the University of the Philippines Los Baños.” Jovee Marie N. Dela Cruz

Marcos says PHL achieves ‘significant progress’ in 1st year of his presidency

Groups question DOE move allegedly exempting Mindanao PSAs from CSP

16.

Singapore arrests Transport minister and property tycoon in graft probe

By Chanyaporn Chanjaroen, Faris Mokhtar & Philip J. Heijmans

SINGAPORE said it arrested

Transport Minister S. Iswaran and property tycoon Ong Beng Seng last week in a graft probe that has challenged the city-state’s reputation for clean governance.

Both were arrested on July 11 and subsequently released on bail, the Corrupt Practices Investigation Bureau said in a statement late Friday in response to queries by Bloomberg News. Their passports were impounded, but Ong was allowed to travel overseas on Friday after a request was approved.

The probe came to light earlier this week when Prime Minister Lee Hsien Loong ordered Iswaran to go on leave. Billionaire Ong, the managing director of Hotel Properties Ltd., was asked to provide information on his interactions with Iswaran, according to a com -

pany statement to the Singapore stock exchange Friday.  While officials have yet to spell out the scope of their investigation, it’s the first time since 1986 that a Singapore graft probe has involved a senior minister. It comes at a particularly tricky time for the ruling People’s Action Party, which has long championed its corruption-free image. The party has faced a series of controversies in recent months as it navigates a leadership transition and voter unhappiness over rising living costs.

“When it comes to corruption, I think it’s a mother of all issues,”

said Bilveer Singh, deputy head of the department of political science at the National University of Singapore. “The pressure on the prime minister to act and get to the bottom of it is so strong.”

Singapore is preparing for a presidential election to be held in September, allowing its citizens to vote on a largely ceremonial role. A general election must be held by 2025. The ruling party, which has been in power since Singapore’s independence in 1965, is also laying the groundwork for a new generation of leaders to take over. Deputy Prime Minister Lawrence Wong is being primed to succeed Lee, who has been premier since 2004.

“We will be upfront and transparent,” Wong said in a Facebook post earlier this week. “We will not sweep anything under the carpet, even if they are potentially embarrassing or damaging.”

Iswaran and Ong would have interacted over the years as a matter of course, with the minister’s roles in trade and transport intersecting with the property tycoon known for helping bring the Formula One Grand Prix to Singapore. Iswaran, 61, has long championed

the Singapore F1 night race in his various capacities.

The corruption agency, which reports directly to the prime minister, hasn’t specified what wrongdoing was involved. No charges have been filed, though Iswaran has been barred access to official resources and government buildings.

The country’s senior public officials are among the world’s best paid, a strategy Singapore’s political leaders say has helped to stave off corruption. Ministers earn about S$1.1 million ($822,000) a year, according to the Public Service Division’s website. The citystate is ranked as the fifth-least corrupt country in the world, according to the Transparency International Corruption Perceptions Index.

Ong is cooperating with the CPIB and posted bail of S$100,000 ($76,000), his company said Friday. He was to travel from Friday and will surrender his passport to CPIB when he returns to Singapore, according to the statement, which didn’t specify his exact whereabouts. Shares of Hotel Properties slumped as much as 7

percent, the largest intraday drop since March 2020, before closing 2.6 percent lower.

Subjects on bail can make requests to travel overseas, the CPIB said Friday.

“CPIB will assess such requests on a case-by-case basis,” it said. “CPIB assessed and acceded to Ong’s request to travel overseas” while his bail quantum was increased, the agency said.

Ong, the media-shy Malaysiaborn businessman, was instrumental in bringing the Formula One Grand Prix to Singapore and is a key player in some of the island’s most significant corporate moments. Last year, a consortium led by Ong and units of state investment firm Temasek Holdings

Pte won a bidding war to buy the property assets of the city’s main publisher. In 2003, Ong and tycoon Oei Hong Leong were engaged in a tussle over steel-miller NatSteel Ltd.

Ong is worth about $1 billion, according to the Bloomberg Billionaires index.

This isn’t the first time Ong has been entangled in controversies surrounding politicians from

Singapore’s ruling party. In 1996, Prime Minister Lee, then a deputy prime minister, and his father Lee Kuan Yew, were cleared in an inquiry over claims of impropriety related to discounted purchases of four high-end apartments developed by Hotel Properties.

Ong’s business has a portfolio of nearly 40 hotels and resorts across 15 countries including the Four Seasons in Singapore and the Maldives, according to its website.

It also builds luxury condominiums and owns malls.

Iswaran will remain in Singapore during his leave, according to a statement from the Prime Minister’s Office.

The long-time PAP stalwart was elected as a member of parliament in 1997 and was appointed to the cabinet in 2006. As transport minister, his key focus is to rebuild Singapore as an air hub in the aftermath of the pandemic and boost the nation as a maritime center. He’s also Singapore’s minister-in-charge of trade relations. With assistance from Natalie Choy, Ishika Mookerjee, Philip J. Heijmans, Ranjeetha Pakiam, Joyce Koh, Low De Wei and Shamim Adam/Bloomberg

Russia halts wartime deal that allows Ukraine to ship grain in a hit to global food security

trade and economic development at the University of St. Gallen in Switzerland.

He noted that rising interest rates meant to target inflation as well as weakening currencies “are making it harder for many developing countries to finance purchases in dollars on the global markets.”

While analysts don’t expect more than a temporary bump to food commodity prices because places like Russia and Brazil have ratcheted up wheat and corn exports, food insecurity is growing.

from a peak of 4.2 million metric tons in October to 1.3 million metric tons in May, the lowest volume since the deal began.

Exports expanded in June to a bit over 2 million metric tons, thanks to larger ships able to carry more cargo.

Kremlin spokesman Dmitry Peskov announced halting the deal in a conference call with reporters, adding that Russia will return to the deal after its demands are met.

“When the part of the Black Sea deal related to Russia is implemented, Russia will immediately return to the implementation of the deal,” Peskov said.

It’s the end of a breakthrough accord that the United Nations and Turkey brokered last summer to allow food to leave the Black Sea region after Russia invaded its neighbor nearly a year and a half ago. A separate agreement facilitated the movement of Russian food and fertilizer amid Western sanctions.

The warring nations are both major global suppliers of wheat,

barley, sunflower oil and other affordable food products that developing nations rely on.

Russia has complained that restrictions on shipping and insurance have hampered its exports of food and fertilizer—also critical to the global food chain.

But analysts and export data say Russia has been shipping record amounts of wheat and its fertilizers also have been flowing.

The agreement was renewed for 60 days in May amid Moscow’s pushback. In recent months, the amount of food shipped and number of vessels departing Ukraine have plunged, with Russia accused of limiting additional ships able to participate.

The war in Ukraine sent food commodity prices surging to re -

cord highs last year and contributed to a global food crisis also tied to conflict, the lingering effects of the Covid-19 pandemic, droughts and other climate factors.

High costs for grain needed for food staples in places like Egypt, Lebanon and Nigeria exacerbated economic challenges and helped push millions more people into poverty or food insecurity.

People in developing countries spend more of their money on meals. Poorer nations that depend on imported food priced in dollars also are spending more as their currencies weaken and they are

forced to import more because of climate issues. Places like Somalia, Kenya, Morocco and Tunisia are struggling with drought.

Prices for global food commodities like wheat and vegetable oil have fallen, but food was already expensive before the war in Ukraine and the relief hasn’t trickled down to kitchen tables.

“The Black Sea deal is absolutely critical for the food security of a number of countries,” and its loss would compound the problems for those facing high debt levels and climate fallout, said Simon Evenett, professor of international

Singapore House speaker resigns in another blow to ruling party

By Faris Mokhtar & Philip J. Heijman

SINGAPORE’S ruling People’s Action Party was rocked by two unexpected resignations, including that of parliament speaker Tan Chuan-Jin, further fueling one of the biggest political crises in the city-state’s history.

Once seen as a potential prime ministerial candidate by political observers, Tan, 54, stepped down from positions in government and the party, Prime Minister Lee Hsien Loong said in a statement Monday. He is the second parliament speaker to resign for having an inappropriate relationship in just over a decade.

His resignation is the latest in a series of scandals to send shockwaves through Singapore, including a graft probe on a cabinet minister and investigations into pricey rentals by two other members of Lee’s administration. This comes at a precarious time for the PAP, which is navigating a leadership succession in its nearly

six decades of power and battling voter unhappiness over rising living costs.

“I have accepted Mr. Tan’s resignation from the People’s Action Party,” Lee said in a statement on Monday. “His resignation is necessary, to maintain the high standards of propriety and personal conduct which the PAP has upheld all these years.”

Political analysts are describing the developments as a shock and a crisis for the PAP, which has been laying the groundwork for a new generation of politicians to take over, led by Deputy Prime Minister Lawrence Wong. The PAP is heading for a national vote by 2025 and there’s a presidential election in September.

“This would mean that Lawrence Wong will have his hands full as he mitigates this political minefield,” said Felix Tan, political analyst at Nanyang Technological University in Singapore.

“Just when we thought we had about enough political intrigue,

we now have yet another slew of political kerfuffle that is seemingly going to engulf Singapore.”

In his resignation letter, Tan said he made a mistake in parliament for using “unparliamentary language” and he apologized to an opposition lawmaker. Tan earlier said he was muttering to himself but his “private thoughts” were caught during a recording of the parliament hearing.

“For me personally, this recent episode has added to the hurt I have caused my family,” Tan wrote in the letter published by the Prime Minister’s Office. “I have let them down. We have spoken about my personal conduct before.”

Lee later told local media Tan had an inappropriate relationship with a fellow PAP lawmaker Cheng Li Hui, who has also resigned.

“It is painful to do this to our friends and comrades-in-arms, and it can also be politically embarrassing and costly,” Lee said. “But the PAP has to maintain party discipline and standard of

conduct.” The resignations on Monday may shake voter confidence after last week’s arrest of Transport Minister S. Iswaran and property tycoon Ong Beng Seng in a graft probe that’s challenged the city-state’s reputation for clean governance.

In June, Foreign Minister Vivian Balakrishnan and Home Affairs and Law Minister K Shanmugam were cleared of wrongdoing by the anti-corruption bureau for their rental of colonial houses near a highend lifestyle hub. Lee ordered the review after the opposition asked if the ministers had paid below-market rates.

“It seems here now that when it rains, it pours,” said Eugene Tan, a law professor at Singapore Management University. “This is a significant crisis, I would use the word crisis. This combination of developments would undermine public trust and confidence in the PAP.” With assistance from Aradhana Aravindan/Bloomberg

The U.N. Food and Agriculture Organization said this month that 45 countries need outside food assistance, with high local food prices “a driver of worrying levels of hunger” in those places.

The Black Sea Grain Initiative has allowed three Ukrainian ports to export 32.9 million metric tons of grain and other food to the world, more than half of that to developing nations, according to the Joint Coordination Center in Istanbul.

But the deal has faced setbacks since it was brokered by the U.N. and Turkey: Russia pulled out briefly in November before rejoining and extending the deal.

In March and May, Russia would only extend the deal for 60 days, instead of the usual 120. The amount of grain shipped per month fell

Ukraine has accused Russia of preventing new ships from joining the work since the end of June, with 29 waiting in the waters off Turkey to join the initiative. Joint inspections meant to ensure vessels only carry grain and not weapons that could help either side also have slowed considerably.

Average daily inspections have steadily dropped from a peak of 11 in October to about 2.3 in June. Ukrainian and US officials have blamed Russia for the slowdowns.

Meanwhile, Russia’s wheat shipments hit all-time highs following a large harvest. It exported 45.5 million metric tons in the 2022-2023 trade year, with another record of 47.5 million metric tons expected in 2023-2024, according to US Department of Agriculture estimates.

The earlier figure is more wheat than any country ever has exported in one year, said Caitlin Welsh, director of the Global Food and Water Security Program at the Center for Strategic and International Studies.

Russia blames Ukraine for attack on key Crimea military supply bridge that kills 2

TRAFFIC on a key military supply bridge connecting Crimea to Russia’s mainland came to a standstill Monday after one of its sections was blown up, killing two people and wounding their daughter. Russian officials blamed the attack on Ukraine, but Kyiv officials didn’t openly admit it.

The strike on the 19-kilometer (12mile) Kerch Bridge was carried out by two Ukrainian sea drones, Russia’s National Anti-Terrorist Committee said.

Ukrainian officials didn’t claim responsibility for the attack, which is the second major strike on the bridge since October, when a truck bomb blew up two of its sections.

The bridge is a conspicuous symbol of Moscow’s claims on Crimea and an essential land link to the peninsula, which Russia captured from Ukraine in 2014. The $3.6 billion bridge is the longest in Europe and is crucial for enabling Russia’s military operations in southern Ukraine during the almost 17-month-long war.

Russia has expanded its presence in Crimea since its full-scale invasion of Ukraine in February 2022. Occasional acts of sabotage and other attacks against Russian military and other facilities on

the peninsula have occurred since, with the Kremlin blaming Ukraine. The attack on the bridge comes as Ukrainian forces are trying to press a counteroffensive in several sections of the front line. It also happened just hours before Russia, as expected, announced it is halting a deal brokered by the United Nations and Turkey that allows the export of Ukrainian grain during the war.

Natalia Humeniuk, a spokeswoman for the Ukrainian military’s Southern Command, said the explosions on the bridge could be a Russian provocation. But Ukrainian Ukrainska Pravda and RBC Ukraine news outlets said the attack was planned jointly by the Security Service of Ukraine (SBU) and the Ukrainian Navy and involved sea drones.

Kyiv didn’t initially acknowledge responsibility for last October’s bombing either, but a senior Ukrainian official eventually confirmed it. In what appeared to be an indirect acknowledgment of Ukraine’s involvement in Monday’s explosion, Ukrainian Security Service spokesman Artem Degtyarenko said in a statement that details of what happened would be revealed after Ukraine has won the war. AP

Putin says Russia has ‘sufficient stockpile’ of cluster bombs as Ukraine receives its own supply from US

By Elise Morton & Felipe Dana

The Associated Press

KYIV, Ukraine—Russian President Vladimir Putin said in an interview published Sunday that Moscow has a “sufficient stockpile” of cluster munitions, and warned that Russia “reserves the right to take reciprocal action” if Ukraine uses the controversial weapons.

In his first comments on the delivery of cluster munitions to Ukraine from the US, Putin said that Russia hasn’t used cluster bombs in the war with Ukraine so far. But the use of cluster bombs by both Russia and Ukraine has been widely documented, including by The Associated Press and international humanitarian organizations, and cluster rounds have been found in the aftermath of Russian strikes.

“Until now, we have not done this, we

have not used it, and we have not had such a need,” he said.

Rossiya TV reporter Pavel Zarubin published excerpts of the interview to his Telegram channel Sunday before a scheduled broadcast on Sunday night. The Pentagon said Thursday that cluster munitions provided by the United States had arrived in Ukraine.

The munitions, which are bombs that open in the air and release scores of smaller bomblets, are seen by the US as a way to get Kyiv critically needed ammunition to help bolster its offensive and push through Russian front lines. US leaders debated the thorny issue for months, before President Joe Biden made the final decision last week.

Cluster bombs have long been criticized by humanitarian groups, and some US allies, because those used in previous conflicts have had a high “dud rate,” meaning that they often leave behind unexploded

bomblets that can harm civilians long after a battle has ended.

Proponents argue that Russia has already been using cluster munitions in Ukraine and that the weapons the US is providing have been improved to leave behind far fewer unexploded rounds. Ukraine has promised to use them only away from densely populated areas.

The Ukrainian military said in a regular update on Sunday morning that over the previous 24 hours, Russia had launched two Iranian-made Shahed exploding drones, two cruise missiles and two antiaircraft guided missiles, in addition to 40 airstrikes and 46 attacks from multiple rocket launchers.

The Ukrainian General Staff wrote that Russia continues to concentrate on offensive operations in Ukraine’s industrial east. Donetsk regional Gov. Pavlo Kyrylenko said Sunday that two residents of the region were

killed on Saturday, and one other person was wounded.

The mayor of Kharkiv, Ihor Terekhov, said seven people were injured in a Russian attack Sunday evening on the city, Ukraine’s second largest.

Ukrainian Deputy Defense Minister Hanna Maliar said Sunday that fighting in eastern Ukraine had “somewhat intensified,” amid a slow counteroffensive in which Ukraine has made small territorial gains.

Writing on Telegram, she said that Russia had been “actively attacking” in the direction of Kupiansk in the northeastern Kharkiv region for two consecutive days, and that Ukrainian forces were “on the defensive” in the area.

“There are fierce battles, the positions of both sides change dynamically several times a day,” she wrote.

Maliar wrote that Ukrainian troops were trying to hold onto their positions on the northern flank around the destroyed city of

Bakhmut, but reported that Ukrainian forces were “advancing daily” on the southern flank. Ukraine has been trying to encircle the city since losing control of it to Russia in May.

Putin claimed that the Ukrainian counteroffensive had been futile, in another excerpt published by Zarubin.

“All attempts by the enemy to break through our defenses ... they were unsuccessful during the entire offensive. The enemy is having no success!” Putin said.

Elsewhere in the country, two boys, ages 8 and 10, were wounded when an explosive device left by Russian forces detonated in the southern region of Kherson on Sunday, according to the Ukrainian Prosecutor General’s Office.

Regional Gov. Oleksandr Prokudin said that Russia had launched 69 shelling attacks against the Kherson region. A 59-year-old man died on Saturday when attempting to disarm a round in the regional capital, also

called Kherson.

Yurii Malashko, governor of the neighboring, partly occupied, Zaporizhzhia region, said Russia had attacked 13 populated areas in the region, wounding seven people in the town of Stepnohirsk.

Moscow-installed authorities in the Russia-occupied Crimea on Sunday reported “a massive and prolonged” drone attack overnight targeting Sevastopol, the peninsula’s largest port, which hosts Russia’s Black Sea Fleet. According to the Moscow-installed governor of Sevastopol, Mikhail Razvozhaev, air defense systems shot down all of the drones and there was no damage.

Vyacheslav Gladkov, the governor of Russia’s Belgorod region, said that a woman was killed Sunday by shelling in the town of Shebekino near the border with Ukraine.

Elise Morton reported from London.

LONDON—Russia said Monday it has halted an unprecedented wartime deal that allows grain to flow from Ukraine to countries in Africa, the Middle East and Asia where hunger is a growing threat and high food prices have pushed more people into poverty.

WORKERS load grain at a grain port in Izmail, Ukraine on April 26, 2023. The fate of a wartime deal designed to move food from Ukraine to parts of the world where millions are going hungry is unclear as it faces renewal Monday, July 17, 2023. AP/ANDREW KRAVCHENKO

California’s Death Valley sizzles as brutal heat wave continues

By John Locher, Adam Beam & Seth Borenstein The Associated Press

DEATH VALLEY, California—

US-China climate talks reopen with pledge to take ‘big steps’

By Jennifer A. Dlouhy

UNITED STATES Climate Envoy John Kerry opened the first major climate talks with Chinese officials in almost a year, as both sides pledged to work for tangible results despite deep tensions between the superpowers.

China is seeking “substantial” dialogue this week, the country’s climate envoy Xie Zhenhua said Monday, as officials gathered at the Beijing Hotel. Those talks could also make a contribution “to improving our bilateral relations,” he added.

Kerry said he hoped the two sides would take “some of the big steps that will send a signal to the world” about how seriously China and the US take the common threat to humanity. “I hope we can work with the greatest purpose we have ever worked to try to get this done,” he added.

Negotiations between the world’s top two greenhouse gas emitters on how to tackle global warming were suspended last year, in the wake of then US House Speaker Nancy Pelosi’s controversial visit to Taiwan. Their renewed communication comes amid a broader Biden administration push to restore high-level dialogue.

Kerry is the third senior US official to visit Beijing in five weeks. While US Secretary of State Antony Blinken and Treasury Secretary Janet Yellen mostly left China with pledges to keep talking, climate appears to be an arena where the two sides can make breakthroughs.

“China and US share similar ideas and have a similar past in addressing climate change,” Xie said, speaking through a translator. Together, the two nations have made progress, he said, citing agreements in 2014 and 2021, and collaboration at UN climate summits.

Xie said he and Kerry have agreed to have “candid and friendly” battles as they discuss challenges on climate and the green transition over the next three days.

Laying groundwork

KERRY, a former US secretary of state who was tapped to be the US special presidential envoy for climate two years ago, arrived in China on Sunday for three full days of talks.

The negotiations are aimed at laying the groundwork for potential pronouncements at the UN General Assembly in September, the Asia-Pacific Economic Cooperation leaders summit in California and the UN climate summit in Dubai.

“It is imperative that China and the United States make real progress in the little more than four months,” before the UN talks, Kerry said Monday. “The world and the climate crisis demand that we make progress rapidly and significantly.”

Talks are set to proceed on multiple tracks, covering ambitions in addressing climate change, a new loss and damage fund for compensating climate victims and on arenas for possible bilateral collaboration. Those areas could include deploying more wind and solar power and handling the intermittent nature of those electricity sources, according to senior US State Department officials, who requested anonymity to discuss private details.

“In too many parts of the world emissions are going up,” said Kerry. “It is imperative that we work together—not competitively, but cooperatively—in order to reduce the impacts of unabated coal power in the world.”

H e also urged both nations to partner to rapidly reduce carbon dioxide and other greenhouse gases such as methane.

China is by far the world’s largest installer of solar and wind and already on track to beat President Xi Jinping’s clean power targets, yet the nation is also continuing to expand its massive fleet of coal-fired plants under efforts to bolster energy security.

“We need to partner in order to accelerate the reduction of these emissions and, my friend, we cannot allow the continued building of unabated coal-fired power plants,” Kerry told Xie, adding that the US also had more to do on its own energy transition. The envoys, who had a one-on-one dinner Sunday, have held about 55 personal meetings in recent years, the two men said.

Experts in climate diplomacy and USChina relations stressed that even a formal statement from Xie and Kerry’s discussions that commits to keep talking—and to revive a joint working group they agreed to form in November 2021—would represent progress.

Bloomberg News

Temperatures in Death Valley, which runs along part of central California’s border with Nevada, reached 128 degrees Fahrenheit (53.33 degrees Celsius) on Sunday at the aptly named Furnace Creek, the National Weather Service said.

The hottest temperature ever recorded on Earth was 134 F (56.67 C) in July 1913 at Furnace Creek, said Randy Ceverny of the World Meteorological Organization, the body recognized as keeper of world records. Temperatures at or above 130 F (54.44 C) have only been recorded on Earth a handful of times, mostly in Death Valley.

“With global warming, such temperatures are becoming more and more likely to occur,” Ceverny, the World Meteorological Organization’s records coordinator, said in an email. “Long-term: Global warming is causing higher and more frequent temperature extremes. Short-term: This particular weekend is being driven by a very very strong upper-level ridge of high pressure over the Western US.”

Furnace Creek is an unincorporated community within Death Valley National Park. It’s home to the park’s visitor center, which includes a digital thermometer popular with tourists. On Sunday afternoon, dozens of people gathered at the thermometer—some wearing fur coats as a joke—hoping to snap a picture with a temperature reading that would shock their friends and family.

That digital thermometer hit 130 degrees at one point on Sunday, but it’s not an official reading. The National Weather Service said the highest temperature recorded on Sunday was 128 F (53.3 C)—a high that was unlikely to be surpassed as the sun went down.

A few miles away at Badwater Basin—the lowest point in North

America at 282 feet (85.95 meters) below sea level—tourists took selfies and briefly walked along the white salt flats ringed by sandy-colored mountains as wisps of clouds crawled overhead. Meteorologists say that thin cloud cover most likely kept temperatures from reaching potential record highs.

William Cadwallader lives in Las Vegas, where temperatures reached 116 F (46.67 C) on Sunday, nearing the all-time high of 117 degrees. But Cadwallader said he’s been visiting Death Valley during the summer for years just to say he’s been to the hottest place on Earth.

“I just want to go to a place, sort of like Mount Everest, to say, you know, you did it,” he said.

The heat wave is just one part of the extreme weather hitting the US over the weekend. Five people died in Pennsylvania on Saturday when heavy rains caused a sudden flash flood that swept away multiple cars. A 9-month-old boy and a 2-year-old girl remained missing. In Vermont, authorities were concerned about landslides as rain continued after days of flooding.

Death Valley’s brutal temperatures come amid a blistering stretch of hot weather that has put roughly one-third of Americans under some type of heat advisory, watch or warning. Heat waves are not as visually dramatic as other natural disasters, but experts say they are more deadly. A heat wave in parts of the South and Midwest killed more than a dozen people last month.

Residents in the western US have long been accustomed to extreme temperatures, and the heat appeared to prompt minimal disruptions in California over the weekend. Local governments opened cooling centers for people without access to air conditioning

to stay cool. The heat forced officials to cancel horse racing at the opening weekend of the California State Fair as officials urged fairgoers to stay hydrated and seek refuge inside one of the seven airconditioned buildings.

Temperatures in Phoenix hit 114 F (45.56 C) on Sunday, the 17th consecutive day of 110 degrees or higher. The record is 18 days, set in June 1974. Phoenix is on track to break that record on Tuesday, said Gabriel Lojero, a meteorologist with the National Weather Service.

Heat records are being shattered all over the US South, from California to Florida. But it’s far more than that. It’s worldwide, with devastating heat hitting Europe along with dramatic floods in the US Northeast, India, Japan and China.

For nearly all of July, the world has been in uncharted hot territory, according to the University of Maine’s Climate Reanalyzer.

June was also the hottest June on record, according to several weather agencies. Scientists say there is a decent chance that 2023 will go down as the hottest year on record, with measurements going back to the middle of the 19th century.

Death Valley dominates global heat records. In the valley, it’s not only hot, it stays brutally warm.

Some meteorologists have disputed how accurate Death Valley’s 110-year-old hot-temperature record is, with weather historian Christopher Burt disputing it for several reasons, which he laid out in a blog post a few years ago.

The two hottest temperatures on record are the 134 F in 1913 in Death Valley and 131 F (55 C) in Tunisia in July 1931. Burt, a

weather historian for The Weather Company, finds fault with both of those measurements and lists 130 F (54.4 C) in July 2021 in Death Valley as his hottest recorded temperature on Earth.

“130 degrees is very rare if not unique,” Burt said.

In July 2021 and August 2020, Death Valley recorded a reading of 130 F (54.4 C), but both are still awaiting confirmation. Scientists have found no problems so far, but they haven’t finished the analysis, NOAA climate analysis chief Russ Vose said.

There are other places similar to Death Valley that may be as hot, such as Iran’s Lut Desert, but like Death Valley are uninhabited so no one measures there, Burt said. The difference was someone decided to put an official weather station in Death Valley in 1911, he said.

A combination of long-term human-caused climate change from the burning of coal, oil and natural gas is making the world hotter by the decade, with ups and downs year by year. Many of those ups and downs are caused by the natural El Nino and La Nina cycle. An El Nino cycle, the warming of part of the Pacific that changes the world’s weather, adds even more heat to the already rising temperatures. Scientists such as Vose say that most of the record warming the Earth is now seeing is from humancaused climate change, partly because this El Nino only started a few months ago and is still weak to moderate. It isn’t expected to peak until winter, so scientists predict next year will be even hotter than this year.

B orenstein reported from Washington and Beam reported from Sacramento, California.

Heavy rains swamp Northeast again as flash flooding claims at least 5 lives in Pennsylvania

The Associated Press

WASHINGTON CROSSING, Pa.—Heavy

rains pounded an already saturated Northeast on Sunday for the second time in a week, spurring another round of flash flooding, cancelled airline flights and power outages. In Pennsylvania, a sudden flash flood late Saturday afternoon claimed at least five lives.

Officials in Bucks County’s Upper Makefield Township in Pennsylvania said torrential rains occurred around 5:30 p.m. Saturday in the Washington Crossing area, sweeping away several cars. At least five people died and two children, a 9-monthold boy and his 2-year-old sister, remained missing, authorities said.

Other parts of the East Coast were experiencing heavy rain, including Vermont. Authorities there said landslides could become a problem Sunday as the state copes with more rain following days of flooding.

“There are flash flood warnings throughout the state today. Remain vigilant and be prepared,” Vermont Gov.

Phil Scott said.

Sunday’s strong storms led to hundreds of flight cancellations at airports in the New York City area, according to the tracking service FlightAware. More than 350 flights were canceled at Newark Liberty International Airport in New Jersey alone, while more than 280 flights were canceled at Kennedy International Airport in New York.

Hundreds of flights were delayed.

The National Weather Service issued flash flood warnings and tornado watches for parts of Connecticut, western Massachusetts, Vermont and New Hampshire. A tornado warning was issued for an area along the Massachusetts-New Hampshire border.

Thousands of power outages also were reported.

New York Gov. Kathy Hochul urged people to stay home Sunday until the storms passed.

“Here comes the rain. It just seems unrelenting this year,” she said. “You have to avoid unnecessary travel.... A flash flood doesn’t give you warning...and in those moments your car can go from a place of safety to a place of death.”

Hochul said 5 inches (13 centimeters) of rain fell within two hours in Suffolk County on Long Island. The state saw $50 million in damages from last week’s storms. Disaster declarations will cover more than a dozen New York counties.

Manchester, New Hampshire, the largest city in northern New England, opened its emergency operations center in response to severe weather. Manchester Mayor Joyce Craig and other officials urged residents to stay inside.

Flooding forced Tweed-New Haven Airport in Connecticut to close Sunday. The small airport, which offers daily commercial flights from one carrier, Avelo Airlines, said in a Twitter post that the terminal was closed until further notice. Several flights were delayed.

Flash flooding was reported in New Haven, Hartford, Waterbury and other Connecticut towns, leaving many roads impassible. Connecticut Gov. Ned Lamont said he was headed to Bristol, home of ESPN, to view flooding.

In northern New Jersey, some roads were

closed Sunday as crews worked to repair stretches of concrete that buckled under heavy rain and flooding. Local creeks washed over passageways and a rockslide blocked Route 46. Thoroughfares were a mess of water and rocks covered in brown sludge.

In Pennsylvania, a sudden, torrential downpour turned deadly in Upper Makefield Township.

Fire Chief Tim Brewer told reporters the area got about 6 1/2 to 7 inches of rain (about 18 centimeters) in 45 minutes.

“In my 44 years, I’ve never seen anything like it,” he said. “When the water came up, it came up very swiftly.”

About 4 to 5 feet of water washed over the road and three of an estimated 11 cars were swept away. All three were later recovered and no one was found inside, Brewer said. Eight people were rescued from the cars and two from the creek, he said.

The two children who remained missing Sunday are part of a Charleston, South Carolina, family visiting family and friends. They were on their way to a barbecue when

their vehicle got stuck in the flash flood, Brewer said.

“As they tried to escape the fierce floodwaters, Dad took his 4-year-old son while the mother and the grandmother grabbed the two additional children, aged 9 months and 2 years,” he said. The father and son were “miraculously” able to get to safety. “However the grandmother, the mother, and the two children were swept away by the floodwaters,” Brewer said. The mother was among those later found dead.

“We continue to look for the two children. We are not going to give up,” Brewer said.

About 150 people were searching the creek during the night and 100 were involved Sunday. Brewer said earlier that officials were treating the effort as a rescue “but we are fairly certain we are in a recovery mode at this time.”

Gov. Josh Shapiro vowed aid from state emergency and transportation officials.

“All hands are on deck,” Shapiro said.

In North Carolina, floodwaters were blamed for the death of a 49-year-old woman whose car was swept off a road in Alexander

County late Saturday night. A man who was in the car with her was rescued.

And as far south as Miami, soccer fans sought shelter from a torrential downpour as they waited for an event presenting international superstar Lionel Messi one day after the team signed him through the 2025. Meanwhile, recovery efforts were underway in Vermont from recent days of heavy precipitation.

The Vermont Agency of Transportation said 12 state roads remained closed while 12 were partially open to one lane of traffic and 87 have been reopened that were previously closed.

The agency said 211 bridge inspections have been completed this week in damaged areas and there are four state bridges closed and four town structures closed.

T he Associated Press writers Ron Todt in Philadelphia; David Collins in Hartford, Connecticut; Patrick Whittle in Portland, Maine; and Leah Willingham in Charleston, West Virginia; contributed to this report.

Long the hottest place on Earth, Death Valley put a sizzling exclamation point Sunday on a record warm summer that is baking nearly the entire globe by flirting with some of the hottest temperatures ever recorded, meteorologists said.

JOHN KERRY greets Xie Zhenhua ahead of talks in Beijing on July 17. JENNIFER A. DLOUHY/BLOOMBERG

Our ace in the global maritime industry

The Philippines relies on shipping to link more than 7,000 islands. Shipping also connects the country to international commerce and trade. Our maritime industry, which employs hundreds of thousands of Filipinos, is one of the most critical sectors of the economy, and a vital component in attaining socioeconomic progress and inclusive growth.

As the global maritime sector stands at the crossroads of a post-pandemic world, facing challenges of transitioning to “green” shipping in mitigating climate-change impacts, as well as ensuring the world’s mariners are well prepared for a future of increasing automation, a Filipino—the first Asian—has taken over the helm of the World Maritime University. (Read, “Filipino at helm of global school for maritime leaders,” in the BusinessMirror, July 9, 2023).

Professor Maximo Q. Mejia, who assumed the World Maritime University presidency in June, said the WMU will play a crucial role in helping provide the leadership and strategic direction in the application of new technologies, equipment and systems, along with the corresponding training and upskilling of seafarers globally.

Mejia said there are hypothetically 1.5 million seafarers to be affected in this transition, which is focused on sustainability, decarbonization and environmental protection in the maritime sector. Based on WMU studies, the transition “basically means there will be a realignment of jobs so there will be more skills required.”

There is already a shortage of seafarers, and it will continue to grow, said Mejia, adding that the shortage pertains to “skilled, qualified and highly skilled” seafarers. It takes four years to get a certified officer, “and we’re not producing enough of them.”

Mejia observed there are now fewer seafarers from economically prosperous countries like Japan and Norway, which used to produce many of them. He also said “geopolitical turbulence” is another factor, citing Myanmar’s case where the number of seafarers declined after the military takeover two years ago.

His vision is to expand the seafaring pool of women mariners, who comprise merely 2 percent of the sector, and most of them are not even involved in operational occupations in seafaring. “I think we’re not doing enough to make it interesting and enticing to them. We have to do more,” he said.

Based on latest government data, the Philippines deployed 489,852 seafarers last year. This is 15,917 less than the 505,769 deployed in 2019 before the pandemic caused a significant decline in the country’s seafarer deployment in 2020 and 2021.

President Ferdinand R. Marcos Jr. said in a recent dialogue with seafarers’ organizations—with Mejia and other WMU officials among the attendees—that he is hopeful the Philippines will remain the “Seafaring Capital of the World,” considering that one out of five crew members on ocean-going vessels is Filipino.

Mejia said few people may realize it, but the Philippines has the fourth-largest shipbuilding industry in the world, next to China, Korea and Japan. Although there is a big gap between the Philippines and the “Big Three,” he thinks that the “government can do much more to help promote the Philippines, now that Japanese, Korean and Australian shipbuilders have already set up their own operations in the country.”

According to Mejia, the so-called “European standard” has become not only fundamental, but also “very essential” to the Filipino mariners’ certificates. It is considered the global standard based on the International Maritime Organization’s Standards of Training, Certification and Watchkeeping, the set of rules and standards adopted in its 1978 convention to determine the knowledge and skills mariners need to safely perform their jobs at sea.

His advice to seafaring countries like the Philippines is to “continue to be proactive,” noting that it is the responsibility of governments to make sure that they comply with international standards so that their seafarers can be deployed anytime.

In the long term, there is really a need to continue educating Filipino seafarers to prevent a repeat of sanction threats from the European Maritime Safety Agency. The Philippines was once on EMSA’s “White List,” Mejia said the Philippines is now on the right track, “but we have to keep up the tempo,” especially after narrowly averting this year a ban on Filipino seafarers boarding EU-flagged vessels. There’s an urgent need for the Philippines to develop our maritime curricula, along with the upscaling of programs to strengthen the country’s position as the “Seafaring Capital of the World.” Fortunately, the Philippine maritime industry has an ace in Mejia, the World Maritime University president who can help upgrade our maritime schools to become world-class institutions that can compete with the best in the world.

Our young population

Manny B. Villar

THE EnTrEprEnEur

The Philippines is known for its young and productive labor force, but recent data suggest the country may also join its Asian neighbors with large graying population in the coming years.

Although we are still decades away from the problem besetting other Asian economies such as Japan, China, Hong Kong, Taiwan, Korea, Singapore and Thailand with large elderly population, we should take advantage of our still relatively young labor force to boost productivity and achieve demographic dividend before it is too late.

The Asian Development Bank estimates that by 2050, one in four people in Asia and the Pacific will be over 60 years old and that the number of persons with ages over 60 would triple between 2010 and 2050 to reach nearly 1.3 billion people.

The Philippines has always been identified as one of the countries with the youngest mean age in the world at 25 years, compared with Japan’s 48 years or the United States’ 38 years. Recent data suggest the trend may change in the coming years.

Per the Philippine Statistics Authority, the Philippines is now in a

“demographic transition” because of its declining level of fertility from 2.7 children per woman in 2017 to 1.9 in 2022. The number of registered live births in the country fell to 1.36 million in 2021 from 1.53 million in 2020 and 1.79 million in 2012.

The trend suggests that despite our large number of men and women in marriage age today, many choose to stay single. Our current fertility rate of 1.9 children per woman is now below the replacement level of 2.1 children per woman, which is needed to replenish the population in the years to come.

The Commission on Population had noted that the Philippine “population pyramid” was constricting at the bottom and increasing at the top, as the population of senior citizens doubled in the last 20 years. This is because the population now has a lower level of fertility, as evidenced by the decline in numbers of children under five years old.

The structural change in mean age could be a boon for the country if the young population becomes effective workers. They can turn into a lost generation, however, if they are not employed or are underemployed, according to POPCOM.

To sustain the stability of our pension system, the labor force should be bigger than the number of retirees or pensioners.  Per PSA data, our aging index—the percentage of persons aged 60 years and over per 100 persons under the age of 15 years—increased 4.2 points from 23.4 in 2015 to 27.6 in 2020. This means there is one person aged 60 years and over for every four children under 15 years old.

The percentage of Filipinos under 15 dropped from 37 percent in 2000 to 30.7 percent in 2020, while Filipinos 60 years of age and older comprised 9.2 million or 8.5 percent of the population in 2020, or double the 4.5 million or 5.9 percent registered in 2000.

This is why it is crucial for the government and the private sector to harness the skills of our young labor force at this stage. We need to create more jobs for the fresh graduates so that they can join the labor force and become productive members of society and build enough savings for their needs when they grow old.

The National Economic and Development Authority agrees that to achieve the goals of the Philippine Development Plan 2023-2028, we should maximize the country’s demographic dividend by investing in lifelong learning, job creation and

How to have happy shareholders

John Mangun

OuTSIDE THE BOX

One of the first “rules” I learned as a new York stockbroker back in the 1970s was that you never turn down free food or free drink and the best place to find those was at a listed company’s Annual Shareholders Meeting.

Back in the good old days of the ’90s, ASMs were different. The San Miguel Shareholders Meetings under Andres Soriano III, held at the then Westin Philippine Plaza hotel, were fiestas. One “little-old-lady” shareholder always complained during the question period about how her Magnolia ice cream was too sweet, and she wanted the recipe changed. Soriano always treated her with great respect.

Amid rumors that he had stolen the company money and moved to the bars of Bangkok, Andrew Tan stood tall at a Megaworld standing room only meeting at the Manila

The same company officials that bend their knees for the bankers that approve loans apparently forget that shareholders are silent, passive company partners. The shareholders who put their money on the table for corporate expansion and for company acquisitions should be treated with at least the same respect as the bankers and customers.

increasing employability.

Neda Undersecretary Rosemarie Edillon made the point during a highlevel meeting for the celebration of the World Population Day to mark the global population topping the 8-billion mark.

Neda underscored the importance of eradicating poverty, promoting lifelong learning and transformative education, providing accessible healthcare, ensuring gender equality and fostering sustainable economic growth.

Because of its expanding working population, the Philippines is expected to become the top economic performer in the region this year. The Asean+3 Macroeconomic Research Office (AMRO) sees the Philippines growing 6.2 percent in 2023, faster than the performance of other Association of Southeast Asian Nations and their three major trading partners. The government forecasts an annual growth of 6 percent to 7 percent in 2023 and 6.5 percent to 8 percent from 2024 to 2028. At this pace, the Philippines may become an uppermiddle-income economy in two years and a prosperous nation by 2040, as envisioned by Ambisyon Natin 2040. A stronger education system, meanwhile, will equip our young population for the next decades of progress. I have no doubt that we as a nation will see this through.

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

The same company officials that bend their knees for the bankers that approve loans apparently forget that shareholders are silent, passive company partners. The shareholders who put their money on the table for corporate expansion and for company acquisitions should be treated with at least the same respect as the bankers and customers.

Peninsula to confirm shareholders’ confidence. One time, before the meeting started, I was looking at a display of a company’s new canned food products. A man approached me and asked what I thought of the labeling. I told him that in-house products that had an identity separate from the mother company were a good idea. I also told him I was making good profits trading the company’s stock.  It was at this meeting when the company presented what was to be ultimately its final tragedy—Coastal Mall. The man was Uniwide founder Jimmy Gow.

Maybe it is because I am a “Boomer” whose clients had to wait three days for an official hard copy confirming a trade execution. Perhaps it is the result of the Internet, but companies that have listed in the past 10 years do not seem to care much about their shareholders.

There is no doubt that shareholders big and small can be a pain in the butt for corporate officials.

The shareholder complaining about Magnolia ice cream may have a justified opinion, but that cannot be the basis for corporate decision-making as long as hundreds of thousands of other consumers are buying the product. But that is not the point.

Further, because listed corporation leaders are often clueless about how the stock market works, they forget that the reason their stock holdings put them on the list of the “Richest Filipinos” was because the shareholders bought the stock and therefore increased the price. The reason the value of the CEO’s one billion shares went from P50 billion to P10 billion was because the stock market—the shareholders—did not think the stock was worth P50.00 a share.

A business, be it a sari-sari store or a multi-billion revenue corporation, has only one purpose—to make a profit. However, a listed company has another purpose—to increase shareholder value, meaning shareholders making money owning the

Dollar’s busted bull run has bears calling end of an era

By Alice Atkins & Carter Johnson

IT just may have been the week that broke the dollar.

The greenback’s worst slump since November has a bevy of strategists and investors saying a turning point is finally at hand for the world’s primary reserve currency. If they’re right, there will be far-reaching consequences for global economies and financial markets.

The US currency is teetering at the lowest level in more than a year after signs of cooling inflation bolstered bets that the Federal Reserve will soon stop hiking interest rates. Dollar bears are looking even further ahead, to what they say are inevitable rate cuts, something the market consensus sees happening at some point in 2024.

Local business tax on association dues

atty. rodel C. unciano

Tax Law for Business

investors getting burned by premature bets on Fed rate cuts that would sink the dollar. That was the case early this year, when the currency seemed to be on the verge of a protracted downtrend only to stabilize as US economic data drove home that the Fed wasn’t about to stop hiking.

IT is now undisputed that association dues, membership fees, and other charges collected by a condominium corporation from members are not subject to income tax and value added tax. This was the clear ruling by the Supreme Court in the First E-Bank Tower case (GR 215801). In fact, it is now clear under the amended provisions of the Tax Code that association dues, membership fees, and other assessments and charges collected by homeowners associations and condominium corporations are exempt from VAT.

The Bureau of Local Government Finance had in fact opined in one occasion that from the definition of gross sales or receipts in the LGC, passive income such as interest income from savings and time deposits are not subject to LBT.

poration is not selling its service to the condominium owners nor are the condominium owners buying goods and/or services from the condominium corporation when the dues are paid.

For the bears, the threat is that dynamic repeats itself, especially with the Fed likely to tighten further as soon as this month.

As regards the imposition of local business tax (LBT), the Supreme Court in another case (GR 154993) has long declared that condominium corporations are generally exempt from local business taxation under the Local Government Code (LGC), irrespective of any local ordinance that seeks to declare otherwise.

“Our call for the dollar to enter a multi-year downtrend is partly based on the fact that the Fed’s tightening cycle will morph into an easing cycle, and this will pull the dollar down even as other central banks cut as well,” Steven Barrow, head of G-10 strategy at Standard Bank, said in a note on Friday.

The Bloomberg dollar gauge was little changed in early Asian trading Monday. It tanked 2 percent last week, the biggest weekly drop since the five days through November 11.

It’s hard to overstate the potential ripple effects from a long-term greenback slide. It would reduce import prices for developing nations, helping ease their inflation pressures. A greenback reversal also stands to bolster currencies like the yen, which has been tumbling for months, and upend popular trading strategies tied to a weaker yen. More broadly, a softer US currency would tend to boost American firms’ exports at the expense of their counterparts in Europe, Asia and elsewhere.

The Bloomberg dollar index’s 2 percent decline last week also contributed to gains in greenback-priced commodities such as oil and gold.

Many investors have been waiting for a downtrend in the dollar for months and the selloff has fund managers from M&G Investments to UBS Asset Management bracing for an outperformance in the likes of the yen and emerging-market currencies.

“The most likely path forward is the dollar remains weak throughout the coming months,” said Peter Vassallo, a fund manager at BNP Paribas Asset Management. He’s betting on gains for the Australian dollar, New Zealand dollar and Norwegian krone.

“The prevailing downwards trend in the dollar is primed to remain intact while the real yield curve flattens. One of the best leading indicators for the dollar, for instance, is the real yield curve. The intuition is the dollar is driven at the margin by the real return of foreign investors into US yields,” said Simon White, Bloomberg macro strategist. Of course, there’s a long history of

At Invesco Asset Management, Georgina Taylor isn’t prepared to reduce her dollar exposure just yet. Still firmly in data-watching mode, she’s not ready to conclude the battle to tame inflation is over.

“The interest-rate differential story is wavering but I wouldn’t give up on the dollar,” she said, given that the absolute difference in real yields remains high.

US economic resilience is the reason Michael Cahill at Goldman Sachs Group Inc. expects any dollar downturn will likely be shallower than in past cycles. Dollar support could crumble, however, if the Fed calls an end to its inflation fight even as the European Central Bank is compelled to keep rates higher for longer.

“The biggest risk that could lead to more dollar downside is that the inflation picture diverges,” said Cahill, a G-10 FX strategist. The bank forecasts the dollar will weaken to $1.15 per euro in 2024, from about $1.12 now, and that the yen will strengthen to 125 per dollar, from roughly 139 now.

Dollar bears can also lean on valuation measures. The currency’s strength has been particularly pronounced against the yen, to the point where the real effective exchange rate has Japan’s currency trading near its lowest level in decades.

“From a valuation perspective, the dollar is still very overvalued,” said Paresh Upadhyaya, director of currency strategy at Amundi Asset Management. “I think markets are going to start to fade that.”

He points to the US’s twin deficits—its trade and budgetary shortfalls—as structural headwinds. But he also has in mind another dynamic that market watchers often cite, the dollar smile theory.

The thinking there is that the greenback typically gains when the US is either in a severe slump or a robust expansion—and falters in times of moderate growth.

“If the US engineers a soft landing, that is probably the best case for a weaker dollar you can ask for,” Upadhyaya said. With assistance from Nour Al Ali / Bloomberg

However, to date, some local government units (LGUs) still attempt to collect LBT from association dues collected by condominium corporations.

taxpayer’s gross sales or receipts for the preceding calendar year. And as defined under the LGC, gross sales or receipts for local business tax purposes, refers to the total amount of money or its equivalent representing the contract price, compensation or service fee, including the amount charged or materials supplied with the services and deposits or advance payments received for the services performed or to be performed.

It is undisputed that a condominium corporation is not engaged in trade or business. A condominium corporation is not designed to engage in activities that generate income or profit. While a condominium corporation is allowed to collect association dues, the same is purely for the benefit of the condominium owners. It is necessary to effectively oversee, maintain, or even improve the common areas of the condominium. Association dues, fees, and other charges do not constitute profit or gain. The expenditures incurred by the condominium corporation on behalf of the condominium owners are not intended to generate revenue nor equate to the cost of doing business.

However, it is not unthinkable that the unit owners of a condominium corporation would band together to engage in activities for profit under the shelter of the condominium corporation. If said fact is established such as when portions of the condominium project are leased out as barber shops, drug stores, beauty shops, or other corner enterprises, then the condominium corporation may already be subjected to LBT (CTA EB 2404). Housing shortage is a big problem in this country. The non-imposition of tax on association dues is certainly a great sigh of relief to condominium dwellers.

The Local Government Code of 1991, which is the mother of local tax laws in the Philippines, authorizes the imposition of LBT based on the

From this definition, it is apparent that only receipts representing income from business activity may be subjected to LBT. Absent any business activity geared for profit, there is no basis for the imposition of LBT.

Clearly then, association dues do not arise from performance of trade or business. When a condominium corporation manages, maintains, and preserves the common areas of the building, it only does so for the benefit of the condominium owners. It cannot be said to be engaged in trade or business. In collecting such fees, the condominium cor-

Addressing traffic congestion at Lapuz Wharf

By Dr. Herman M. Lagon

LAPUZ, the newest district in Iloilo City, is currently grappling with a pressing issue that significantly impacts the daily lives of its residents and motorists. The Lapuz Wharf, a vital gateway for Iloilo-Guimaras and Iloilo-Palawan RORO (Roll-on/ Roll-off) trips, is infamous for its severe traffic congestion, causing inconvenience and hardships for travelers and the people of Lapuz, especially those residing, working, and passing through Barangays Lapuz Norte, Loboc, Mansaya, and Bo. Obrero. It is long overdue for the local government, particularly the Public Safety and Transport Management Office, to take immediate, more concrete action and provide much-needed relief to those affected.

The limited space at Lapuz Wharf, which serves as a vital connection to numerous industrial and commercial establishments and a gateway for over 20,000 residents, presents significant challenges for motorists and passengers, especially during peak hours when congestion is at its worst. The lack of adequate, efficient, and consistent traffic management exacerbates the problem, worsening the severity of the congestion, making it imperative to address this issue promptly and implement proactive measures to alleviate the traffic woes at the busy harbor.

A potential solution is to consider relocating or appropriating the port movements to the nearby Brgy. Libertad area, where no public jeepneys and buses pass. This

strategic move could alleviate traffic congestion by redirecting the flow of vehicles and passengers. Furthermore, clearing the area of vendors and expanding the road infrastructure to the wharf with wider lanes and additional entry and exit points would enhance traffic flow and reduce congestion. Another practical approach would be to implement trip schedules during off-peak hours, such as after 8 p.m. to 5 a.m. during weekdays, and weekends, especially on Sundays. By staggering the flow of vehicles during these times, the strain on the road network during peak periods can be reduced. Investing in advanced traffic management systems, such as intelligent transportation systems, would also be beneficial. These sys-

tems would optimize traffic flow and provide real-time information to motorists regarding alternative routes, parking availability, and updates on congestion. Strict and consistent enforcement measures should be implemented to combat the issue of vehicles parking on the streets, which exacerbates congestion. Establishing designated parking areas or structures near the harbor would encourage motorists to park in designated spaces instead of occupying the roads.

In addition to the previously mentioned solutions, additional viable long-term measures may be explored to address traffic congestion at Lapuz Wharf. A comprehensive urban planning strategy incorporating a grid road network or an alternative route can significantly facilitate smoother traffic distribution and reduce congestion on Lapuz’s main roads. This way, traffic can be better dispersed, easing the burden on congested areas.

It is also worth considering the relocation of the wharf to less congested areas, such as Brgys. Ticud, Ingore, or Hinactacan in Lapaz District, Brgys. Balabago or Bitoonon in Jaro District, or a reclaimed coastal area in Villa Arevalo District. A careful study of this possibility could be undertaken, exploring approaches like Build-Operate-Trans-

fer or Public-Private Partnership, similar to the successful implementation on public markets in Iloilo City. Relocating the pier to a less congested location would not only alleviate traffic congestion but also provide an opportunity to develop improved infrastructure and facilities, ultimately creating a more efficient and convenient experience for both residents and motorists alike. By implementing both short-term and long-term solutions, the authorities have a strong opportunity to effectively tackle the traffic congestion at Lapuz Wharf. There is a high level of confidence in our local government, which has demonstrated a sincere commitment to elevating the city’s reputation globally, that it will soon take proactive measures and prioritize the well-being and convenience of both Lapuz residents and motorists. Through collaborative efforts and a resolute “political will,” Lapuz can and will overcome its traffic challenges, creating a more efficient and prosperous district that benefits everyone.

Dr. Herman Lagon fondly describes himself as a “student of and for life” who, like many others, aspires to a life-giving and why-driven world that is grounded in social justice. He is a physics and math professor of ISUFST, an educational leadership student of USLS, a retired Principal of Ateneo, and an alumnus of UP, UI, and WVSU.

China’s murky $9-trillion debt corner faces funding squeeze

By Lorretta Chen

stock either through a share of the profits through dividends or price appreciation.

I said on ANC Market Edge this week that I do not care that Metro Pacific Investments Corp. (MPI) is delisting. “The move reflected concerns about the conglomerate’s share price. By going private, MPIC could take a longer-term view without worrying about how they might impact quarterly earnings.” Good choice.

Speaking of “longer-term view,” prior to the delisting announcement price increase, the stock was trading at nearly 30 times earnings and at less than 50 percent of its 2016 high so maybe it’s more than stock buyers concerns about quarterly earnings. And MPI pays a dividend of less than

2 percent. Stock buyers deserve “shareholder value.” If more company officials had more personal contact with shareholders like in the good old days, they might appreciate and take more seriously their obligation to their silent partners. Happy customers mean more sales. Happy shareholders mean more stock buying. More stock buying means higher stock prices.

Happy shareholders need to firmly believe that the company is doing all that it can even during difficult times to increase shareholder value not for the next quarter but for the next years. That belief is not going to be found through Zoom or a press release.

THE $9 trillion of Chinese local government bonds that helped drag the rest of the world out of the 2008 financial crisis are a growing risk this time around.

The bonds funded an economic boom in China more than a decade ago, as local authorities borrowed heavily to invest in everything from roads to subways. But one of China’s biggest state-run investors advised asset managers overseeing its money to sell some of the debt, Bloomberg News recently reported, intensifying pressure on the securities. It’s left authorities with the tricky balancing act of defusing a huge risk to the country’s lenders without triggering defaults and destabilizing the financial system. Any implosion of bonds from local government financing vehicles would ripple through the local banking system, further pressuring overall growth in the second largest economy in the world.

Goldman Sachs estimates that 34 trillion yuan ($4.75 trillion) of local government debt sits on the balance sheets of banks it covers. The potential headwinds to growth would hit an economy whose recovery after the pandemic has already been relatively tepid.

The increased risk is highlighted by the jump in the average coupon on LGFV yuan bonds to 4.39 percent in the first six months of the year from 3.94 percent last year despite the fact that China is easing monetary policy.

‘Far-ranging impact’

“THE direct impact of LGFV default would be borne almost completely by domestic investors, but the indirect impact should be far-ranging,” said Brock Silvers, managing director at private equity firm Kaiyuan Capital.

“If China’s downturn eventually runs longer or deeper because the old playbook has finally expired, the impact of LGFV profligacy will then be felt on a global economic scale.”

The latest developments add to

hurdles for strained local governments in China. A nationwide property slump slashed their income from land sales while public spending jumped during the pandemic.

The author is a partner of Du-Baladad and Associates Law Offices (BDB Law), a member-firm of WTS Global. The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at rodel.unciano@ bdblaw.com.ph or call 8403-2001 local 140. Mangun.

In a survey published last month, investors across Asia said the ballooning levels of municipal borrowing were the region’s number one financial risk this year. One of the concerns is that the money raised by the LGFVs was used on projects that typically don’t earn enough returns to cover their debts, leaving many reliant on refinancing or injections of government cash to stay afloat.

Adding to the difficulties, many LGFVs have been essentially shut out of the free trade zone bond market after recent guidance from the People’s Bank of China, a significant blow to the vehicles because they were the most prevalent issuers of those securities.

Tight grip

T HE guidance shows that Beijing “continues to hold a tight grip on

local debt risks and they wouldn’t want a financing channel that lacks regulatory oversight,” said Sherry Zhao, senior director, international public finance at Fitch Ratings. It’s also left issuers from poorer provinces in particular with fewer financing options at a time when investors are souring on risk. That’s left them facing higher borrowing costs just as the average maturity for onshore LGFV bond issuance falls to the lowest since the data series began in 1999, reinforcing the pressure on regulators to defuse the trouble.

“As you get closer and closer to the center of China’s government guarantees, LGFVs are right there on that border line,” said Logan Wright, head of China markets research at Rhodium Group LLC in New York. “They’re important because if you start questioning the commitment to LGFVs, then what else are you questioning government credibility to defend?” With assistance from Wei Zhou, Taryana Odayar and Dan Wilchins / Bloomberg

A12 Tuesday, July 18, 2023

Global woes won’t dent MIF investment draw, solon says

By Jovee Marie N. dela Cruz @joveemarie

TIMING is right for the Philippines to set up its Maharlika Investment Fund (MIF) amid fears that headwinds could thrust much of the world into nearrecession levels, a senior lawmaker insisted on Monday, the eve of the expected signing of the controversial MIF into law.

At a time when the Philippines has received an investment or credit rating upgrade, President Ferdinand Marcos Jr.’s expected signing Tuesday of the MIF law will undoubtedly provide the country with a new growth stimulant, according to Camarines Sur Rep. and National Unity Party (NUP) president LRay Villafuerte.

Despite warnings by some economists that this is the worst time to be courting investments as problems slash outputs in much of the developed world, Villafuerte said the MIF will clear the way to an alternative, potentially huge source of investment funds that would enable the national government to spend much bigger on public infrastructure and its other big-ticket programs to

shore up the President’s “Agenda for Peace and Prosperity.”

A principal author of the MIF law, Villafuerte explained that, “The 19th Congress, in writing this MIF measure, sought to fit up government with a new funding stream for investments other than the traditional sources of funds, namely, the General Appropriations Act (GAA) or national budget, official development assistance (ODA) from our overseas partners and the business sector via the public-private partnership (PPP) mode.”

He added: “The establishment of the MIF, which our economic managers expect to be up and running before 2023 is over, is timely at this time when the Philippines has secured a higher investment-grade

PHL govt won’t allow ICC probe if it junks our appeal–Remulla

By Joel R. San Juan @jrsanjuan1573

THE Department of Justice

(DOJ) maintained on Monday that it will not allow any investigation that the International Criminal Court (ICC) might conduct in the event it decides to reject the Philippine government’s appeal against the resumption of its probe into the bloody anti-illegal drug campaign during the Duterte administration.

Justice Secretary Jesus Crispin Remulla, in an interview with mediamen, said Philippine authorities will also not comply if the ICC issues warrants of arrest against individuals subject of its investigation.

“No. They won’t do anything here. They have nothing to do here. What are they going to do? Invade us? Do they want to come here just like a colonizer?” Remulla said.

We do not want other countries interfering with the justice system in the Republic of the Philippines … It’s enough. We are a free country, we have our own system of implementing our laws,” the DOJ secretary added.

E arlier, Solicitor General Menardo Guevarra said if the Philippines loses its appeal, the  ICC  prosecutor will be authorized to resume his investigation into the anti-drug war situation in the country.

T he ICC prosecutor, according to Guevarra, may also seek the issuance of summonses or warrants of arrest against certain individuals.

T hose who will be indicted, according to the chief government counsel, would have to get their own defense lawyers as the OSG represents only the State.

“ Regardless of the outcome of our appeal, the Philippine government will continue to focus on its own investigation and prosecution of alleged abuses in connection with the war on drugs,” Guevarra said.

However, Guevarra maintained that the government “will defend

MLA FESTIVAL TO FOCUS ON LOCAL

F&B INDUSTRY

F&B valued at P108.4B

status even as the world economy is going through a rough patch that experts fear could slash global output to near recessionary levels.”

He was referring to the recent warning by the International Monetary Fund (IMF) that the global economy could suffer a pronounced growth downturn this year to 2.5 percent to 2.8 percent from 2022’s 3.4 percent, because of the precarious phase of stubborn inflation, slow recovery from the pandemic, prolonged Russia-Ukraine war, increasing trade tensions, and interest rate hikes by central banks, among others.

For Villafuerte, one bright spot for the Philippines amid the downtrend in the global economy is Fitch Ratings’ revision or upgrade last May of its Philippines’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to “Stable” from “Negative” and affirmation of its “BBB” rating. This, he said, “reflected the credit watcher’s confidence that our country is heading for strong medium-term growth after the pandemic, on the back of its sound economic policy framework.”

V illafuerte said the MIF will serve as a growth driver for the domestic economy by attracting private investments despite external headwinds that heighten

global economic and financial uncertainties and threaten the Marcos administration’s near- and medium-term agenda for inclusive and sustainable development.

Moreover, with the MIF as a new source for investment funds, the government can spend much more on its priority projects without resorting to additional foreign borrowings, he pointed out.

I n becoming a new investment fund source for high-impact, economically viable programs and projects, he said “the MIF would help the NG prevail over two drawbacks that threaten to handicap the Marcos administration’s agenda to sustain the robust economic growth path post-pandemic, create jobs and attack poverty, and keep the Philippines on its AmBisyon Natin 2040 path of becoming a prosperous middle-class society in less than two decades.”

A nd these two main challenges to high and inclusive growth, he said, are, “One, the government’s presently limited fiscal space as a consequence of the immense public spending on Covid-19 response that the preceding Administration have had to resort to; and second, the economic slowdown across the world.”

See “Global,” A2

FILIPINO food has been having a moment in the United States and a few other countries in the West, a development long predicted by food critic Andrew Zimmerman and the late chef and travel feature host Anthony Bourdain.

B ut international travelers are still not visiting the Philippines for its cuisine. According to a survey commissioned by the Department of Tourism (DOT) in 2021, the Philippines ranks poorly in food exploration/cooking classes compared to its other Southeast Asian neighbors. Malaysia and Singapore ranked the highest in this category.  (See, “They won’t visit PHL for history and culture,” in the BusinessMirror , May 26, 2023.)

O rganizers of The Manila Food and Wine Festival, launched on July 14, hope to change that. Co-organizer Spanky Hizon Enriquez said in his opening remarks at the Westin Sonata Manila ballroom on Friday that the festival “hopes to position the Philippines as a center for food and culinary tourism in Asia.” The festival, originally to conclude on July 27, has been extended to “midAugust as  more restaurants want to participate,” he told the BusinessMirror

THE Manila festival, he added, was patterned after the recent Cebu Food and Wine Festival, and will have interations in other provinces. “The goal is to create a clear and conscious effort to come up with elevated events that will strengthen the world class ambitions of restaurants/ hotels, and inspire the rest to do the same,” he said.

Enriquez, who is also founder of the Restaurant Owners of the Philippines, stressed, “We survived the gauntlet of the pandemic, and these events will serve to sustain the momentum of recovery of the food and beverage industry, particularly the restaurants. We were all set to have a ‘Golden Age’ in 2020 until Covid hit. Now is the time to bring that to fruition.”

A bout 32 percent of the 5.35-million workforce in the country’s tourism industry are accounted for by hotels and restaurants, according to the Philippine Statistics Authority. The same data also showed the tourism direct gross value added of the F&B-serving industry reached P108.36 billion in 2022, though this was still 41 percent off the prepandemic level of P183.4 billion.

PBBM vows wider medical care access

and assert the sovereignty of the Republic at all times.”

For Remulla, any indictment of the ICC would only be “political.”

He said if the ICC really wants to hold accountable any individual, then it should pass any evidence to the government since the Philippines has existing domestic mechanisms to deal with the issue and prosecute any offender.

He said the ICC should do its investigation on countries with no existing mechanism to conduct their own probe, adding that Manila has a perfectly working institution to investigate and prosecute criminal offenses.

The ICC is for countries with no existing laws and they are really needed there. It is not meant to interfere in a country such as the Republic of the Philippines that has an existing system,” he said.       E arlier, the DOJ said investigation on the drug war-related deaths is ongoing, and that there are 290 cases under different stages of investigation, prosecution, and trial.

In March 2023, the Philippine government asked the ICC-Appeals Chamber to abandon the January 26 decision of the Pre-Trial Chambers (PTC) authorizing the resumption of the investigation on the abuses and deaths related to the anti-illegal drug of the Duterte administration.

T he OSG maintained that the ICC has lost jurisdiction over the country following the  withdrawal of its membership in 2019 upon the directive of then President Duterte.

It also asked the ICC to suspend, pending the resolution of its appeal, the implementation of the PTC’s decision that allowed Prosecutor Karim Khan to resume the probe in the Philippine’s bloody anti-illegal drug campaign.          However, this was denied by the appeals chamber in a ruling issued on March 28, 2023.     The ICC’s decision on the Philippine government’s appeal is scheduled to be announced today (Tuesday).

By Samuel P. Medenilla @sam_medenilla

PRESIDENT Ferdinand R.

Marcos, Jr. vowed on Monday to make medical care more accessible in underserved communities through the capacity building for local government units (LGU) and the construction of new facilities such as the Clark Multi-Specialty Medical Center (CMSMC).

“ That is why it is a fundamental part of the services that this government will bring to our people.

It is not a privilege to have healthcare,” Marcos said during the site inspection for the CMSMC at the Clark Freeport Zone in Pampanga.

It is a right and that is how we will approach this problem and that is how we will continue to make our healthcare system better for all Filipinos in whatever capacity that we are able to do,” he added.

C iting the important role played by the healthcare sector during the pandemic, the President said he will prioritize making health services available at the local level through his administration’s Health Facility Enhancement Program (HFEP).

This is part of a larger system of healthcare provision that we are putting together to service our kababayans [citizens] so that they don’t have to wait [or] get very very sick before they go to the big

hospitals. We are bringing healthcare down to the people,” the chief executive said.

T he comprehensive HFEP includes establishing the “Botika de Barangay” or barangay pharmacies program, rural and barangay centers, as well as medical special centers such as the CMSMC.

Philippine Amusement and Gaming Corporation (Pagcor) Chairman and CEO Alejandro H. Tengco said the construction of the CMSMC will cost about P10 billion and is expected to be completed by 2028.

T he medical complex, to be built on a 5.7-hectare property along Prince Balagtas Avenue in Clark Freeport Zone, will include a heart center, lung center, kidney center,

and children’s hospital.  “ We will establish primary healthcare facilities and specialty centers nationwide,” Marcos said.  We will not stop until every Filipino can say they have good access to quality healthcare,” he added.

He noted the important role of the private sector and international funding agencies in assisting the government to upgrade or build more local healthcare services like in the case of CMSMC.

T he project is being built with the cooperation of Pagcor, Clark Development Corporation (CDC), Bases Conversion and Development Authority (BCDA), and the Razon-led Bloomberry Cultural Foundation Inc.

PRESIDENT Ferdinand R. Marcos Jr. leads the briefing and site inspection of a multispecialty medical center project at the Clark Freeport Zone in Pampanga on Monday, July 17, 2023. The project aligns with the Chief Executive’s vision to enhance healthcare access in provinces and highly urbanized cities across the country. With the President is Philippine Amusement and Gaming Corporation (Pagcor) Chairman and CEO Alejandro H. Tengco and Bloomberry Resorts Corp. Chairman and CEO Enrique Razon. A joint effort by Pagcor and the Bloomberry Cultural Foundation Inc., the initiative is meant to fulfill Pagcor’s socio-civic commitment to bringing essential government services closer to the people. PHOTO COURTESY OF PAGCOR

Editor: Jennifer A. Ng

Companies

B1

Tuesday, July 18, 2023

Fruitas sets ₧500-M capex, revives expansion plans

By VG Cabuag @villygc

Fruitas President and Ceo Lester Yu said the company is investing P100 million for the opening of 100 additional stores this year, P150 million for the expansion of its commissary, and up to P200 million for acquisitions and development of new concepts. “We expect to keep putting in

strong performances in the upcoming quarters through a combination of organic growth and contribution from recent acquisitions,” he said.

“To promote sustainable growth and profitability, we will continue to invest in our brands, channels, customers, and employees. The

company is also in various stages of discussion with additional prospective targets which fit our portfolio.”

The firm aims to grow its net income by 30 percent this year after tripling profits to P19.2 million in the first quarter from last year’s P6.4 million.

Fruitas said it expects to further boost its topline and bottomline with the addition of the Ling nam brand to its portfolio.

As of end-March, Fruitas had a network of more than 800 stores, and has added about 10 additional locations since then.

The group has identified a number of areas for the expansion of its network both inside and outside of Metro Manila, one of which is the recently announced Ling nam res-

Wilcon asks DTI to address ICC certificate backlog

taurant in Zamboanga, which will open in the third quarter of 2023.

Fruitas’ purchase of legacy brand Ling nam through Lingnam Food Inc., an indirect wholly-owned subsidiary of the company, was completed on March 1.

The firm said its entry into the Asian casual dining space thru Ling nam will diversify its revenue base.

At the same time, Fruitas is executing several initiatives to maximize synergies with Ling nam.

Among these initiatives are the sale of products from Fruitas’ other brands in Ling na m restaurants, opening of kiosks and stalls under the Ling nam brand and the sale of Ling na m products alongside the group’s other brands in digital channels.

McDonald’s stores tap Converge

By Lorenz S. Marasigan @lorenzmarasigan

Converge ICT Solutions Inc.

said on Monday it has partnered with golden Arches Development Corp. (g A DC), the master franchisee of McDonald’s in the Philippines, to provide more of its stores with fiber connectivity.

McDonald’s Philippines has been a client of Converge since 2015. It has since tapped Converge to power nearly 40 percent of over 700 McDonald’s restaurants across the country. our continued partnership with McDonald’s Philippines exemplifies

our mission with Philippine businesses: to digitally transform their operations to elevate their competitive edge and customer service as they expand their businesses. We are glad to walk hand-in-hand with McDonald’s Philippines in their digital transformation journey and cement their reputation as a technologyenabled fastfood giant,” said Converge Ceo and Co-Founder Dennis Anthony Uy.

Converge also supported McDonald’s Philippines’ digital transformation journey, the development of nX Tgen stores. These stores feature split counters, digital menu boards,

self-order kiosks. nearly 60 percent of all McDonald’s Philippines’ branches are considered n X Tgen outlets. “Converge provides a wide range of options that allows us to determine the most optimal connection at each Converge-enabled restaurant. This in turn provides a better experience for both our customers and employees,” said McDonald’s Philippines President and Ceo Kenneth Yang.

As of April, Converge has a pure fiber footprint of over 646,000 kilometers with 8 million ports across the Philippines, reaching 15.9 million homes or a total of 60 percent

of Filipino households.

In May, Converge announced that it plans to grow its prepaid subscriber base to 3 million in as early as three years, with the segment expected to become much bigger in base than postpaid fiber broadband.

In a press briefing, Converge President grace Uy said the group will put “prime focus” on expanding the company’s new service called Surf2Sawa, the company’s prepaid fiber-to-thehome (FTTH) sachet plan, which targets the lower-income markets. For 2023, Converge hopes to reach 120,000 prepaid subscribers by endDecember.

By Andrea E. San Juan @andreasanjuan

Con S T r U CTI o n supplies

retailer Wilcon Depot Inc.

is urging the Department of Trade and Industry (DTI) to look into the backlog of import commodity clearance (ICC) certificates, saying it is one of the company’s “operational pain points.”

rosemarie B. ong, Wilcon’s senior executive vice president and Coo, said the delays in the issuance of ICCs prevents the firm from moving its products and serving the local market.

According to the website of DTIBureau of Philippine Standards (BPS), importers of products covered by the BPS mandatory certification are required to obtain ICC before they can distribute their products in the Philippines.

“The ICC certificate and the corresponding ICC stickers are issued to an importer once its imported products have shown conformance to relevant standards through inspection, verification, and product test-

ing by the BPS Testing Laboratory or BPS-recognized testing laboratory,” BPS said.

ong noted that a Wilcon store that houses thousands of stock-keeping units will have to secure ICCs for each product category.

“our sector does not sell fastmoving goods. We have tiles, sanitary wares, and (we stock goods) for two, three or every 5 years because our products don’t become obsolete and they never go out of fashion.”

The Wilcon executive made the plea during a recent forum organized by the Makati Business Club (MBC), with Trade and Industry Secretary Alfredo e Pascual as its guest.

She said the company has written to the DTI chief to inform him about the difficulties it encounters in securing ICC certificates.

“All of us want to comply. However, I think the issue we’re facing is that...it takes (the DTI) a while to issue a certificate. We need the certificate to be able to move our products.”

For his part, Pascual vowed to look into the matter and to review the process of securing the ICC certificate.

European stocks fall on China slowdown

EUroPe A n stocks and oil re-

In T ernATIonA L Container Terminal Services Inc. (ICTSI) said on Monday its cargo handling operations at the La Plata Port adjacent to Buenos Aires in Argentina has received the inaugural call of Zim Integrated Shipping Services’ Patagonia e x press Service (PeS).

The said service connects Argentinian trade to the United States and the Caribbean gu lf, among other destinations.

“We are pleased to receive the Contship Key at TecPlata and start this new connection with the north American gulf coast. This strategic alliance with ZIM enables us to offer new services and logistics distribution to our clients.

We are confident that this service will strengthen TecPlata’s position as a strategic trade port on the east Coast of South America,” TecPlata Ceo Juan Pablo Trujillo said.

The service links Argentina to the Caribbean and the US gu lf Coast through the ports of Kingston, a major Caribbean hub, and Houston in the gu lf of Mexico.

PeS made the inaugural call at TecPlata with the arrival of the 1,000-TeU boxship Contship Key.

Trujillo said with its present network set up, the service expected to call TecPlata every 45 days.

He added that the maritime service from La Plata to Kingston and Houston provides a “reliable and efficient connection” for Argentinian foreign trade, offering commercial opportunities that promote economic growth in the region. Lorenz S. Marasigan

By Lenie Lectura @llectura

EnergY Secretary r aphael Lo-

tilla is hopeful that the latest Court of Appeals (CA) decision that allowed the power units of SMC global Power Holdings Corp. to adjust its locked-in power rates will not have an adverse impact on the committed liquefied natural gas (Lng) projects.

“We anticipate while there are possible effects, I don’t think this, in the long run, is going to affect the other projects. The situation is evolving and we continue to monitor the situation. I am hopeful this is not going to delay or interact the Lng projects.

As you know, the Philippines now has two storage and regassification for Lng and one of them is actively

connected with or related to the Ilijan power plant that SMC is operating,” said Lotilla during a television interview on Monday.

SMC global Power, which received a favorable decision from the appellate court, recently took delivery of the country’s first-ever Lng cargo that will fuel its Ilijan power plant.

The CA has upheld the position taken by the units of SMC global Power that the grant of the fuel price adjustment is the least cost option rather than buying replacement power from the spot market or other suppliers.

“We expect that by August or September this will be fully functional, although it already started to contribute to the supply for the country as early as around June,” added Lotilla.

The CA granted the petitions filed by South Premiere Power Corp.

(SPPC) and San Miguel energy Corp. (SMeC) to annul the 2022 orders issued by the energy r egulatory Commission (erC) that rejected the generation companies’ plea for electricity price increase.

The CA ruled that the erC acted “with grave abuse of discretion” by denying the petitions of SPPC, SMeC and the Manila electric Company (Meralco) for a rate hike of around P0.30 per kwh due to higher fuel costs. The erC will appeal the case.

“Most probably, it is going to appeal that particular decision to the Supreme Court,” Lotilla said.

“It is important we look at the stability of contracts…between distribution utilities and power generation firms. We don’t want to undermine that because then everything else will be unstable,” he added.

treated, while bonds rallied as more evidence pointed to a slowdown in China’s economy.

Lv MH and Hermes International lost more than 4 percent, leading declines among French luxury stocks and dragging the CAC 40 Index down 1.3 percent. Cartier owner r ichemont sank 9 percent after reporting an unexpected drop in sales from the Americas.

After a week of historic stockmarket gains, investors started Monday on a downbeat note after data that showed China’s growth for the second quarter missed estimates.

The narrative that Chinese shoppers coming out of Covid lockdowns would be able to carry the global economy, despite rising US and european interest rates is looking increasingly shaky as economic reports continue to signal slowing momentum. “China growth weakness has been brewing in the background for months,” said Pooja Kumra, senior european rates strategist at Toronto Dominion Bank. “Clearly growth has not been able to keep pace with expectations.”

The MSCI ACWI of stocks worldwide dipped 0.1 percent on Monday after surging 3 percent last week. Shares in mainland China were the worst performers in Asia.

With its heavy dependence on the Chinese import market, european stocks are especially vulnerable. Companies tied to energy and raw materials together make up about 12

percent of the Stoxx europe 600, and consumer discretionary industries account for 11 percent. JPMorgan Chase & Co. strategists expect further weakness in the region driven by lower bond yields as well as earnings disappointments.

Bonds extended a rally as investors looked to hedge any downturn in stocks and the economy. The yield on the 10-year Treasury fell five basis points to 3.77 percent.

Crude futures dropped 1.5 percent as traders weighed disappointing Chinese economic data and restarting Libyan supplies against signs of a tightening market.

In other commodity markets, wheat futures jumped after ru ssia terminated a grain-export deal, jeopardizing a key trade route from Ukraine, one of the world’s top grain and vegetable oil shippers. e l sewhere, Activision Blizzard Inc. rallied 4 percent in US premarket trading after a US appeals court on Friday denied a Federal Trade Commission bid to pause Microsoft Corp.’s acquisition of the company.

The next pressure point for markets will be earnings, with hundreds of companies reporting over the next few weeks. S&P 500 firms are expected to post a 9-percent drop in profits in the second quarter, making it the worst season since 2020, according to data compiled by Bloomberg Intelligence. In europe, it may be even worse, with a projected 12-percent slump. Bloomberg News

Food and beverage retail operator Fruitas Holdings Inc. said it is allotting P500 million for capital expenditures (capex) this year as it is reviving its expansion plans.

DOF banks on infra, fiscal devt for growth

By Raadee S. Sausa

“Smart, sustainable and resilient infrastructure, with its high multiplier effects, will serve as the center-

of our growth strategy,” Finance

organized by the British Chamber of Commerce of the Philippines (BCCP).

Tiuseco said that it was in March when President Ferdinand R. Marcos Jr. approved 194 high-impact infrastructure flagship projects (IFPs) on irrigation, water supply and flood management, digital connectivity, health, power and energy, and agriculture.

the North-South Commuter Railway (NSCR).

According to the National Economic and Development Authority (Neda), “the indicative total cost for the 194 IFPs is P8.30 trillion, and these projects are financed through various sources.”

nectivity sector also has the highest share at P6.90 trillion or 83.12 percent of the total cost for all projects,” the note read. “On the other hand, the water resources sector has a total cost of P679.42 billion or 8.18 percent.”

A

JUAN had a business idea. He followed all the necessary steps in starting a business and opened his store a few months after.

Weeks passed by and he realized that he wasn’t making any profit. He calculated that for every P1,000 he spends, he only earns P900. Not wanting to continuously lose P100 until he goes bankrupt, he closed his store and went on with his life.

But then Pedro had the same business idea.

He followed the same steps in starting a business and opened the same store at the same location a few months after.

Weeks passed by and like Juan, he realized he wasn’t making any profit. For every P1,000 he spends; he only earns P900. But unlike Juan and many others who quit too early, he kept his business.

He renegotiated for lower costs from his suppliers. He offered customers better service. He made the quality of his products better. He initiated effective marketing strategies.

He believed that any improvement, no matter how small, will eventually sum up and make his business better.

Weeks passed by and then he realized he was now making money. That is, for every P1,000 he spends; he earns P1,100.

Do you think he stopped there? No.

He renegotiated for even lower costs from his suppliers. He offered customers even better service. He made the quality of his products even better. He initiated more effective marketing strategies.

Weeks passed by and he realized that for every P1,000 he spends; he was now earning P1,250.

Do you think he stopped there?

No.

He continued to find ways to improve every aspect of his business because again, he believes that any improvement, no matter how small, will eventually sum up and make his business better.

Don’t quit too early. Become better. Keep improving. Be like Pedro, not Juan – that’s how you make your business succeed.

Pedro’s journey didn’t end with his initial success. He understood that the business landscape is constantly evolving and to stay ahead, he needed to continue pushing the boundaries of his business.

With his newfound profitability, Pedro reinvested a portion of his earnings back into the business. He allocated funds to research and development, seeking innovative ways to enhance his products and services. Pedro understood that staying stagnant was not an option if he wanted to maintain his competitive edge.

Additionally, Pedro recognized the importance of building a strong team. He carefully selected talented individuals who shared his passion for growth and were committed to delivering excellence. He fostered a positive work environment that

during a forum

Undersecretary Maria Luwalhati C. Dorotan-Tiuseco said

simple story of a successful business

fitz Gerard Villafuerte

encouraged collaboration and creativity, knowing that his team’s dedication would directly impact the success of his business.

Pedro also embraced technology and the power of digital transformation. He invested in modernizing his operations, implementing advanced software systems to streamline processes, enhance efficiency, and better serve his customers. By embracing e-commerce and online marketing, Pedro expanded his reach beyond his physical store, tapping into a global customer base.

Furthermore, Pedro understood the value of building strong relationships with his customers. He actively sought feedback and listened to their needs, constantly striving to exceed their expectations. Pedro utilized social media platforms and online communities to engage with his customers, creating a loyal following and fostering a sense of community around his brand. As Pedro’s business continued to grow, he didn’t lose sight of his commitment to social responsibility. He implemented sustainable practices within his operations, reducing waste and embracing environmentally friendly solutions. Pedro also gave back to his community, supporting local charities and initiatives that aligned with his values.

Pedro’s relentless pursuit of improvement and adaptation led to remarkable long-term success. His store became a trusted destination for customers seeking quality products, exceptional service, and a genuine connection. Word of mouth spread, attracting new customers and solidifying Pedro’s position as a market leader.

Pedro’s story serves as an inspiration for aspiring entrepreneurs. It highlights the importance of resilience, continuous learning, and an unwavering commitment to excellence. Success in business is not a destination but a journey of constant evolution and growth.

So if you find yourself facing challenges and setbacks in your entrepreneurial endeavors, remember Pedro’s example. Embrace every obstacle as an opportunity for improvement. Continually innovate, invest in your team and technology, prioritize customer satisfaction, and stay true to your values. With determination and a growth mindset, you too can create a thriving and enduring business that stands the test of time.

Fitz Villafuerte is a registered financial planner (RFP) of RFP Philippines. To learn more about personal-financial planning, attend the 103rd RFP program this September 2023 To inquire, e-mail info@rfp.ph or text at 0917-6248110.

Some of these projects include the following: Tarlac-Pangasinan-La Union Expressway (TPLEX) Extension Project; Metro Manila Expressway C6; Ninoy Aquino International Airport (NAIA) Expressway; and,

According to a Neda briefing note, the 194 IFPs are distributed across different sectors, with the physical connectivity sector having the highest number of IFPs at 119 projects, followed by the water resources sector with 44 projects.

“In terms of cost, the physical con-

Meanwhile, the government will bank on the strategies laid out the Medium-Term Fiscal Framework to reduce the fiscal deficit, promote fiscal sustainability, and enable robust growth.

“To further liberalize highgrowth sectors, the Philippines opened up its renewable energy [RE] sector to full foreign ownership in

order to speed up the transition to a sustainable energy mix and raise the share of RE in the power generation mix to 35 percent by 2030 and 50 percent by 2040,” Tiuseco added. She said that companies engaged in solar energy, wind energy, hydroenergy and tidal energy projects can now invest in the Philippines’s RE sector.

Furthermore, the amendments to the Retail Trade Liberalization Act (RTLA), Foreign Investments Act (FIA), and the Public Service Act (PSA) relaxed foreign restrictions on investments in the country.

Association touts credit card’s role in MSME sector

THE Credit Card Association of the Philippines (CCAP) believes credit cards can be “a powerful tool” for micro-sized, small-scale and medium-sized enterprises (MSMEs) to gain ready access to funds and manage their finances.

“However, there is still a need to raise awareness on the use of credit cards for business,” Credit Card Association of the Philippines (CCAP) Executive Director Alex G. Ilagan was quoted in a statement as saying.

“We know that MSME owners often mix their personal and business finances. They use their personal credit cards to pay for bills or purchases related to their business, enabling them to manage tight cash flow situations,” Ilagan said through the statement the CCAP issued last

Monday. “Credit cards can be more than that.”

He added that credit cards can serve as available credit line for MSMEs looking for a convenient source of working capital without the need to formally apply for a business loan “which can be a tedious process and may even require putting up collateral that they do not have.”

“MSMEs can also use credit cards to pay for things they need to seamlessly run their business, such as purchasing equipment and supplies and paying for utility bills, among others,” Ilagan said.

Some CCAP member companies issue special types of credit cards for MSME needs such as purchasing or procurement card, distribution card, corporate card for travel

and entertainment and fleet card for fuel credit, the CCAP statement read.

Based on CCAP’s quarterly survey of its members comprising the 17 major credit card issuers in the country, there are a total of 11.8 million credit cards issued in the Philippines as of the first quarter of 2023.

Of the total, 65 percent are considered as “transactors” who pay their total outstanding balance in full every month while only 35 percent are “revolvers” who pay only the minimum amount or any amount less than the full outstanding balance, the CCAP said citing data from the Bangko Sentral ng Pilipinas (BSP).

Ilagan said MSMEs must know the billing cycle for proper money

management.

“There is a 30-day monthly billing cycle and 21-day payment grace period provided by credit card issuers so MSMEs can enjoy interest-free credit for up to 51 days from the date of transaction,” he added.

“Best to use your card just right after the billing cut-off date indicated in the billing statement because it will allow you to enjoy the longest interest free credit float,” the CCAP official said.

“A credit card can help MSMEs manage their funds and cover their business’ short-term financial needs, but it cannot be used for long-term goals such as business expansion which demands higher capital and is best funded through a bank loan,” Ilagan said. Raadee S. Sausa

Customs seizes ₧350-M worth of smuggled products

THE Bureau of Customs (BOC) has seized an estimated P350million worth of used clothing (ukay-ukay), mosquito coils, fake goods and other suspected smuggled imported goods in Bulacan recently.

The Letter of Authority (LOA) issued by Customs Commissioner Bienvenido Y. Rubio was implemented

on July 13 by a team led by Intelligence Officer 3 Alvin Enciso of the Customs Intelligence and Investigation Service-Manila International Container Port (CIIS-MICP).

Rubio said that the allegedly smuggled goods inside the warehouses would amount to more or less P350 million.

Enciso said that “several warehouses were found to contain smuggled goods after we served the LOA to the warehouse administrator and respective warehouse representatives.”

Intelligence Group Deputy Commissioner Juvymax R. Uy said that the warehouses have been sealed

Inflation impacts youth in Q2

METRO Manila’s middle-class Gen Zs and Millennials have expressed growing concern over the impact of inflation during the second quarter of 2023, according to a survey conducted by the Manila branch of the Nomura Research Institute Singapore Pte. Ltd.

The survey, which was conducted from May to June, revealed that a staggering 94 percent of respondents felt the effects of inflation during this period.

The rising costs of essential goods and services, such as food, transportation, fuel, and utilities, have forced these young adults to make cuts in their non-essential spending, including leisure and entertainment expenses. Among the respondents, 60 percent reported that the continuous price increases had the greatest impact on their food and beverage expenses, followed by transportation and fuel costs at 15 percent, and utilities, such as electricity, water, and internet bills, at 14 percent. Additionally, an overwhelming 83 percent of participants stated that they had reduced their spending on non-essential goods, while 79 percent found it necessary to cut back on leisure and entertainment expenses.

The survey also highlighted the financial challenges faced by this demographic. Approximately one-third of respondents (32 percent) reported being unable to save over the past 6 to 12 months. For those who managed to save, 44 percent saved a lower percentage of their income. The persistent inflationary pressures have led 38 percent of respondents to adjust their savings goals by either reducing the target amount or delaying their timelines. Similarly, 47 percent of participants had to make similar adjustments to their savings plans.

To cope with the financial strain, a significant number of respondents have turned to loans. Of the surveyed individuals, 71 percent reported having outstanding loans. In an attempt to augment their incomes, 43 percent of respondents resorted to taking out additional loans in the past year.

Among those who already had loans, 58 percent had to cut back on other expenses to meet their loan obligations, while 19 percent were forced to delay payments. The survey also revealed that 41 percent of respondents possessed credit cards.

Personal loans were the most prevalent type of loan, accounting for 30 percent of respondents, followed by alternative installment loans and salary loans, each representing 19 percent respectively.

Regarding investments, 52 percent of respondents had existing investment portfolios. Among these, mutual funds and stocks were the top investment products, chosen by 18 percent of participants each. However, due to the inflationary pressures, 12 percent of respondents had to partially liquidate their holdings for increased liquidity, and a minimal 1 percent sold off their entire investment portfolio. Given the challenges posed by inflation, respondents have adopted a diverse array of coping strategies. A notable 94 percent expressed concerns that continuous price increases would persist over the next 6 to 12 months. Consequently, 91 percent of participants felt the need to explore additional income streams. To adjust to the current economic situation, 86 percent of respondents planned to continue cutting back on expenses, while 73 percent intended to reduce their spending on entertainment and leisure activities.

In terms of savings, 34 percent of participants expressed plans to increase their savings allocations to better prepare for the future, while 33 percent aimed to maintain their current savings pattern. However, 16 percent of respondents planned to reduce their monthly savings allocation due to inflationary pressures.

The survey also shed light on borrowing habits, with 46 percent of respondents indicating that they were less likely to take out loans, while 28 percent stated they were more likely to acquire additional loans.

Regarding investments, 12 percent expressed a desire to explore risky investments in the hopes of achieving high returns over the next 6 to 12 months. Meanwhile, 40 percent were considering more conservative options. Notably, 30 percent stated that they would choose to stay away from investing altogether, while 18 percent aimed to maintain liquidity.

The online survey conducted by the NRI Singapore-Manila Branch included 295 adults from Metro Manila, consisting of 92 Gen Zs and 203 Millennials from the middle-class. The participants had monthly individual income ranges of P13,000 to P41,000 and P41,001 to P163,000.

As inflation continues to impact the daily lives and financial well-being of Metro Manila’s middleclass Gen Zs and Millennials, it is clear that they are actively seeking ways to navigate these challenges and secure their financial futures.

and the team temporarily placed padlocks. “Ongoing inspection is being conducted on the subject warehouses,” Uy said. “This is to be followed by inventory of the goods, which would be conducted by our assigned Customs examiner and witnessed by CIIS and ESS agents.” Raadee S. Sausa

Dollar’s busted bull run ‘end of an era’

IT just may have been the week that broke the dollar. The greenback’s worst slump since November has a bevy of strategists and investors saying a turning point is finally at hand for the world’s primary reserve currency. If they’re right, there will be far-reaching consequences for global economies and financial markets.

The US currency is teetering at the lowest level in more than a year after signs of cooling inflation bolstered bets that the Federal Reserve will soon stop hiking interest rates. Dollar bears are looking even further ahead, to what they say are inevitable rate cuts, something the market consensus sees happening at some point in 2024.

“Our call for the dollar to enter a multi-year downtrend is partly based on the fact that the Fed’s tightening cycle will morph into an easing cycle, and this will pull the dollar down even as other central banks cut as well,” Steven Barrow, head of G-10 strategy at Standard Bank, said in a note on Friday. The Bloomberg dollar gauge was little changed in early Asian trading Monday. It tanked 2 percent last week, the biggest weekly drop since the five days through Nov. 11.

It’s hard to overstate the potential ripple effects from a long-term greenback slide. It would reduce import prices for developing nations, helping ease their inflation pressures. A greenback reversal also stands to bolster currencies like the yen, which has been tumbling for months, and upend popular trading strategies tied to a weaker yen. More broadly, a softer US currency would tend to boost American firms’ exports at the expense of their counterparts in Europe, Asia and elsewhere. The Bloomberg dollar index’s 2 percent decline last week also contributed to gains in greenback-priced commodities such as oil and gold.

Many investors have been waiting for a downtrend in the dollar for months and the selloff has fund managers from M&G Investments to UBS Asset Management bracing for an outperformance in the likes of the yen and emerging-market currencies.

“The most likely path forward is the dollar remains weak throughout the coming months,” said Peter Vassallo, a fund manager at BNP Paribas Asset Management. He’s betting on gains for the Australian dollar, New Zealand dollar and Norwegian krone.

Of course, there’s a long history of investors getting burned by premature bets on Fed rate cuts that would sink the dollar. That was the case early this year, when the currency seemed to be on the verge of a protracted downtrend only to stabilize as US economic data drove home that the Fed wasn’t about to stop hiking.

For the bears, the threat is that dynamic repeats itself, especially with the Fed likely to tighten further as soon as this month.

At Invesco Asset Management, Georgina Taylor isn’t prepared to reduce her dollar exposure just yet. Still firmly in data-watching mode, she’s not ready to conclude the battle to tame inflation is over. Bloomberg News

THE Department of Finance

(DOF) believes infrastructure development and fiscal reforms would release the economy from fetters to growth.

piece

Wilwayco’s electric ‘Jeepney Unicus’: King of the road makes its final stop

finally resulting in an outcome, stern and conclusive. At the same time, it resembles TV color bars and static. This, of course, alludes to electricity, or the very idea that ultimately ended the decades-long travels of the traditional jeepney, which evolved from military vehicle post-World War II to everyday public transport.

TODAY’S

By Eugenia Last

CELEBRITIES BORN ON THIS

DAY: Chace Crawford, 38; Priyanka Chopra, 41; Kristen Bell, 43; Vin Diesel, 56.

HAPPY BIRTHDAY: Lift any barriers holding you back and prepare to forge ahead enthusiastically. Act, live up to your promises and influence those searching for a better lifestyle. Don’t make unnecessary physical changes or give a false impression to the people you want to impress. Be yourself, follow through with your plans, and let your charm and intelligence win the respect and support you require to reach your goal. Your numbers are 6, 13, 17, 25, 36, 40, 44.

ARIES (March 21-April 19): Let your actions send an encouraging message to others to pitch in and help. Get involved in an event that makes you feel passionate about a cause and hopeful about the future. Mix business with pleasure, and you’ll connect with someone interesting. ★★★★★

TAURUS (April 20-May 20): Reevaluate along the way, and you’ll make better decisions. Concentrate on what’s necessary instead of taking on too much and falling short of your goal. Timing and expertise will be essential if you want to be successful. Put your energy where it counts. ★★

GEMINI (May 21-June 20): Mingle with people who share your interests. The information you pick up will help you restructure how you want to move forward. Change only what benefits you. Don’t take a risk with your health or assets. ★★★★

CANCER (June 21-July 22): Place more faith in yourself and what you can do to make a difference. How you navigate your way through conversations and responsibilities will encourage others to offer suggestions and hands-on help. ★★★

different perception at every glance. The same applies to the featured pieces in this show.

LEO (July 23-Aug. 22): Think before taking on too much, or overstepping your boundaries will result in backlash. Live up to your promises, and you’ll reach your expectations. Handle money, health and contracts with discipline and a no-nonsense attitude. ★★★

SPECULATION fueled the original jeepneythemed exhibition of Edwin Wilwayco in 2018, where the master abstract expressionist pondered in bright colors the grim future of the country’s de facto cultural icon. Five years later, the artist revisits the concept in his upcoming solo at Artes Orientes, now afforded the finality of the subject’s fate.

In Jeepney Unicus—which opens this Saturday, July 22, at the gallery’s space in Serendra, BGC—Wilwayco retains the exhibition’s central imagery and not much else. Replacing the gestural strokes in the 2018 exhibit that inspires spontaneity are kinetic lines: zipping in sharp sequences, appearing much more defined and definitive.

Perhaps the change reflects the idea of assumption

Earlier this year, the government’s public utility vehicle (PUV) modernization program went into overdrive. Calls for a jeepney phaseout rang loud with the pronouncement of transforming the public transport system by way of “making it more dignified, humane, and on par with global standards.” That meant pushing for brand-new, environmentally friendly vehicles powered by electric motor, leaving its traditional, diesel-fueled counterparts in the terminal for good.

Taking cue from this development on the concept he has parked for half a decade, Wilwayco decided to take these vehicles for one last spin in his canvas. In Jeepney Unicus, the artist pays homage to the peculiar subject, celebrating its uniqueness as the title alone suggests.

Wilwayco bathes his jeepneys in transcendent tonality while setting them off to perpetual motion. As we have come to understand with his art, no part of the frame is left motionless. Something happens in all points and corners at all times, giving the viewer a

In Jeepney Unicus #4 Quadriptych, for instance, the stripes speed past in prismatic burst, as they do in Jeepney Unicus #3 Diptych. Like a seasoned driver, Wilwayco shifts gears when the moment calls for it, with these lines losing their force, dispersing and floating skyward, accompanied by a strip of symmetric pattern and geometric shapes in Jeepney Unicus #11, Jeepney Unicus #12, and Jeepney Unicus #13. These symbols recur in other pieces, with the canvas segmented by bold demarcations and defined fields of greens of blues. Does it represent how these old jeepneys are cornered and ultimately shelved to make way for their modern counterparts?

Then, in what is clearly Wilwayco’s most distinctive portrayal of the vehicle in the show, away from the curved and caricatured version, Jeepney Unicus #31 presents us the abstract expressionist as we know him best.

There are measured drippings, vigorous brushstrokes and compelling tones that vary yet engage with each other, creating a visual wonder that brings the concept to another gear.

While jeepneys, as we know them, may soon cease to exist, Wilwayco attempts in this show to immortalize the king of the road, in hopes of ensuring its reign be transcendent. ■

InLife launches campaign to support the arts, inspire Filipinos to dream big

THE country’s first and largest Filipino-owned life insurer, Insular Life (InLife, www.insularlife.com.ph) is embarking on a new campaign to support Filipino arts.

InLife chief marketing officer Gae

L. Martinez said InLife’s new campaign is rooted in the understanding that people have an inherent love for dreaming and expressing themselves.

“The arts provide a platform to

showcase the ideal and the impossible. From a single dream, we can create infinite possibilities. There are those who dream bigger dreams such as the artists we look up to. InLife believes in the Filipino artists’ dreams and their capacity to create the good in life,” Martinez said.

As part of this campaign, InLife recently organized an exclusive concert, titled Harmonies in Life, for

members of its Amorsolo Circle. The concert featured Sharon Cuneta and renowned composer Louie Ocampo.

InLife has also partnered with Ayala Foundation to support a sixmonth exhibition at the Ayala Museum of a long-lost painting by National Hero Juan Luna.

Titled Splendor—Juan Luna: Painter as Hero, the exhibition sheds light on Luna’s artistic genius and the cultural

significance of his work.

“By nurturing Filipino talent and celebrating artistic expression, InLife aims to create a thriving environment where the arts can flourish and contribute to the cultural fabric of our nation. InLife recognizes that the arts serve as a platform to inspire Filipinos to dream big, cultivate their creativity, and aspire for a lifetime for good,” Martinez said.

VIRGO (Aug. 23-Sept. 22): Take control before situations get blown out of proportion. Exaggeration will lead to confusion and disappointment. Size up situations, do your research and adjust whatever has the potential to lead to trouble. Be responsible, and nurture meaningful relationships to avoid an argument. ★★★

LIBRA (Sept. 23-Oct. 22): You’re in a favorable position. Embrace opportunities that come your way. Set up an interview or start something new, and you’ll head down a unique path. Enjoy time spent with loved ones or those who share the same things as you. ★★★★

SCORPIO (Oct. 23-Nov. 21): Share the information you verify to avoid repercussions. Don’t force your will onto others or succumb to temptation or indulgent behavior. Be true to yourself and those you want to remain in your life. Protect your position, reputation and health. ★★

SAGITTARIUS (Nov. 22-Dec. 21): Stay calm, relaxed and collected, and you’ll make headway. Don’t take the bait if someone tries to coerce you into an argument. Stick to the facts and use restraint to avoid being put in an uncomfortable position. Choose peace and love over chaos. ★★★★★

CAPRICORN (Dec. 22-Jan. 19): Make domestic changes that lower your overhead and encourage you to initiate a strict budget. A partnership looks promising if you divide responsibilities equally. Make your intentions clear, and you’ll find out where you stand. ★★★

AQUARIUS (Jan. 20-Feb. 18): Talks will lead to trouble, and false information will cause emotional setbacks and disrupt your plans. A straightforward approach regarding love, romance and your lifestyle will help alleviate the effects of making a costly error. Romance is favored. ★★★

PISCES (Feb. 19-March 20): Try something exciting. A creative venue will spark your interest and encourage you to take the plunge and start a new adventure. Expand your plans to include a means to turn what you enjoy doing into a profitable endeavor. ★★★

BIRTHDAY BABY:

You are fun-loving, generous and talkative. You are energetic and persistent.

‘chemical bond’ BY DYLAN SCHIFF

The Universal Crossword • Edited by David Steinberg/Anna Gundlach

Solution

GMA e Arns recoGnition froM vArious AwArd-GivinG bodies here And AbroAd

LeADING broadcast company GMA Network continues to reap honors from various award-giving bodies here and abroad. the network’s GMA Integrated News website, GMA News online, further cements its strong presence in online journalism, representing the country at the SoPA 2023 Awards for editorial excellence and earning honors at the 10th Paragala central Luzon Media Awards.

At the recent Society of Publishers in Asia (SoPA) Awards for editorial excellence 2023, GMA News online took home the excellence in Infographics (regional/Local) for its graphics for Eleksyon 2022

GMA News online’s graphics for the Eleksyon 2022 web site stood out among the other finalists, including two entries from chinese magazine Sixth Tone.

the Eleksyon 2022 website was developed by GMA New Media specifically for the Philippine national elections last year. It featured three separate apps with visually captivating graphics that enhanced the user experience and made election-related information easier to understand.

GMA News online likewise took home three awards at the SILAK: the 10th Paragala central Luzon Media Awards held on June 9.

In the Digital News Website category, GMA News online won the voice of Society Award, highlighting the platform’s contribution to diversifying news content and information in the mainstream media and enacting positive change in society. Also in the Digital News Website category, GMA News online received the crisis coverage Award for its continuous service as a reliable source of accurate and relevant information. GMA News online also won the eye of the Nation Award for its commitment to providing Filipinos with accurate and pertinent information about daily events. Award-winning broadcast journalists Howie Severino and Kara David likewise added their many laurels. Severino was conferred with the Paragala Panlipunan Award in the News and current Affairs category. this recognition is a testament to Severino’s exceptional journalistic craft, which embodies conscience, competence, and compassion. Severino, who was recently engaged as the GMA Integrated News’ editor at large for GMA News online, is one of the hosts of the long-running documentary program I-Witness and the popular podcast The Howie Severino Podcast

Meanwhile, David was honored with the Paragala Panghuwaran Award in the outstanding Media educator category. David, who hosts award-winning GMA Public Affairs shows I-Witness, Brigada, and Pinas Sarap, was recognized for using her media platforms to raise awareness and educate different generations about various issues in the country.

Last but not the least, GMA Integrated News reporter Bernadette reyes received the crisis coverage Award in the Journalist category for her consistent efforts in gathering and disseminating information through various media channels during times of crisis.

Show BusinessMirror

Movie and TV stars join picket lines in fight over the future of Hollywood

By Andrew Dalton The Associated Press

Lasso

LOS ANGELES—Ted

Rosario Dawson, and other top movie and TV actors joined picket lines alongside screenwriters on Friday on the first full day of a walkout that has become Hollywood’s biggest labor fight in decades.

A day after the dispute brought production to a standstill across the entertainment industry, Sudeikis was among the picketers outside NBC in New York pressing for progress following the breakdown of contract talks with studios and streaming services. Dawson, star of the film Rent and the series Ahsoka, joined picketers outside Warner Bros. studios in Burbank, California.

Lord of the Rings star Sean Astin marched with chanting protesters outside Netflix’s offices in Hollywood. Also present at Netflix were Unforgiven actor Frances Fisher and Fran Drescher, who is president of the Screen Actors Guild-American Federation of Television and Radio Artists.

The actors’ arrival energized the picket lines outside Netflix, where music blared and the sidewalks were packed with demonstrators.

Elsewhere, Once Upon a Time Goodwin stood with protesters at Paramount Pictures.

The famous faces of Oscar and Emmy winners will likely be seen with some regularity on picket lines in New York and Los Angeles, adding star power to the demonstrations outside studios and corporate offices.

The walkout is the first double-barreled strike by actors and screenwriters in more than six decades.

In recent weeks, many actors made a show of solidarity with the 11,500 writers, who walked out in May. On Thursday, 65,000 members of the actors’ union formally joined them on strike.

The two guilds have similar issues with studios and streaming services. They are concerned about contracts keeping up with inflation and about residual payments, which compensate creators and actors for use of their material beyond the original airing, such as in reruns or on streaming services. The unions also want to put up guardrails against the use of artificial intelligence mimicking their work on film and television.

Many on the picket lines took aim at Disney chief executive Bob Iger, who said on Wednesday that the damage the strikes will do to the entertainment economy is “a shame.”

“I think that when Bob Iger talks about what a shame it is, he needs to remember that in 1980, CEOs like him made 30 times what their lowest worker was making,” actor Sean Gunn, who starred in Guardians of the Galaxy, said outside Netflix.

Now Iger “makes 400 times what his lowest worker is. And I think that’s a shame, Bob. And maybe you should take a look in the mirror and ask yourself, ‘Why is that?’”

No talks are planned, and no end is in sight for the work stoppage. It is the first time both guilds have

things are looking good for rayver

He was cast in amazing roles in drama series, like Asawa Ko, Karibal Ko; Nagbabagang Luha was also entrusted hosting chores in and The Clash

Now after only five years, Cruz is in the network’s “leading men” pool, and a much sought-after host and performance artist, too. And because he is a hardworking young man who is also popular as a team player and a most pleasant coworker, blessings continue to pour into his life.

walked off sets since 1960, when then-actor Ronald Reagan was SAG’s leader.

“What we won in 1960 was our health and pension plans and the existence of residuals. That was the most important strike in LA union history, and now we’re on strike together again, and honestly, this strike is even bigger,” Adam Conover, host of the TV series Adam Ruins Everything and member of the Writers Guild negotiating committee, said outside Netflix. “We’re going to win. If you are gaining momentum like we are, 70-odd days into a strike, you are going to win.”

Conover was one of many picketers, including Sudeikis, who are members of both unions.

The Alliance of Motion Picture and Television Producers, which represents employers including Disney, Netflix, Amazon and others, has lamented the walkout, saying it will hurt thousands of workers in industries that support film and television production.

The actors’ strike will affect more than filming. Stars will no longer be allowed to promote their work through red carpet premieres or personal appearances. They cannot campaign for Emmy awards or take part in auditions or rehearsals.

The strike triggered cancellations of red carpet events scheduled for next week for Special Ops: Lioness, starring Zoe Saldaña and Nicole Kidman, and Christopher Nolan’s Oppenheimer

A Haunted Mansion premiere event at Disneyland on Saturday was set to go on as planned, but with no actors in attendance to promote the film.

Los Angeles Mayor Karen Bass said it was clear that the entertainment industry “is at a historic inflection point.” She urged all parties to work around the clock until an agreement is reached.

“This affects all of us and is essential to our overall economy,” Bass said in a statement.

The writers’ strike had already stopped much of television production, and the actors joining them immediately led to a shooting shutdown for many major films, including Deadpool 3, Gladiator 2 and the eighth installment of Tom Cruise’s Mission Impossible series. All are scheduled for release next year.

The writers’ strike also shut down late-night talk shows and Saturday Night Live, as well as several scripted shows that have either had their writers’ rooms or production paused. Many more are sure to follow them now that performers also have been pulled. n

so excited when we were told that we would headline

The lovebirds actually started shooting in 2020 but the pandemic had to put the movie on hold. “I never doubted that we would finish this project when the time was right, and true enough, when the situation started to normalize, we started shooting again. And setting biases aside, I was so impressed by Julie Anne and what she gave to her role in this movie.”

GMA resident artist Rayver Cruz told us in a past interview that he always trusts his intuition.

“The batting average is quite high when I trust my instincts. It is something that I cannot put into words or accurately describe. It’s like this feeling, like a voice that tells me to go ahead, or to take a few steps back, you know...it’s hard to explain. But in the many major decisions of my life, especially those that are careerrelated, it always works out well when I trust my instincts,” he said.

When Cruz made the big jump from his former studio to GMA Network in 2018, not a few raised their eyebrows. But he was ready to take his brave leap so he followed his heart, and things has been on an upswing for this actor-dancer-singer-host ever since.

The unplanned detour in the romantic aspect of his life also added to the premium of the brand he has slowly worked hard for all these years. Cruz kept relatively quiet when his five-year relationship with actress Janine Gutierrez ended, and he remained elusive when his feelings started to develop for his The Clash co-host Julie Ann San Jose, who eventually became his girlfriend.

Now, their relationship continues to bloom and grow, much to the delight of their friends and followers. The couple even has a movie coming up, Rod Marmol’s The Cheating Game cinemas on July 26.

“I’m excited about this movie, the first movie venture of GMA Public Affairs. It’s about secrets that a couple tries to keep hidden but these eventually surface to complicate the relationship. The script is intelligently written, that’s why Julie Ann and I were

Cruz turns a year older on July 20, and he can feel that it will be another good year. “I remain grateful for all the blessings I have been receiving. My brother Rodjun [Cruz] is doing well and he has started his own small, happy family. My older brother Gino [Ilustre] is making a comeback, and is getting good senior character roles for both TV and film, and I’m glad he is also with us in GMA. My intuition tells me that it will

When showbiz colleagues tease Cruz’s girlfriend and refers to her as Mrs. Cruz, she automatically blushes and lets out a big smile, and Cruz also always breaks into a wide grin. “I have fallen so deeply in love with Julie Anne, and of course there’s no one else I’d like to be Mrs. Cruz than her, God-willing, someday

So as long as Rayver Cruz continues to trust his instincts, and plays his cards right, we are sure that

Actor Jason Sudeikis (center), walks a picket line with striking writers and actors, Friday, July 14, 2023, at NBc Universal Studios in New York. AP rAYver crUz

MGB XIII TO HOLD FIRST RESILIENT MINING WEEK

says Engr. Artemio E. Valeroso, AVP–Resident Mine Manager of Taganito Mining Corporation (TMC), an affiliate of Nickel Asia Corporation (NAC).

THE Mines and Geosciences Bureau Region 13 (MGB XIII), in collaboration with the Philippine Society of Mining Engineers-CARAGA (PSEM Caraga) and the Chamber of Mines-Caraga Region (CMCRI), is set to host a groundbreaking event that will bring together various mining companies in the CARAGA region.

Taking place during National Disaster Resilience Month, the first-ever Caraga Resilient Mining Week (CRMW), anchored on the theme “Responsible Mining: Pathway to Community Resilience,” will serve as a platform for mining industry leaders to discuss their climate change plans and programs aimed at promoting the resilience of communities in mining areas.

“As the mining capital of the Philippines, CARAGA has a responsibility to lead the way in sustainable and responsible mining practices. This event marks a significant milestone as the first-ever gathering that will unite mining companies to

discuss and address climate change with a common goal of ensuring the resilience of communities where mining operations take place,” says Engr. Larry M. Heradez, MGB XIII Regional Director.

Moreover, the event aligns with the efforts initiated by DENR Secretary Maria Antonia Yulo-Loyzaga towards responsible mining that reinforces the urgent need for balance between mineral extraction, environmental stewardship through application of Environmental Protection and Enhancement Program (EPEP), and the development of mining communities by implementation of Social Development and Management Programs (SDMP) in the mining sector.

“We are excited to participate in the CARAGA Resilient Mining Week and share our best practices in climate change adaptation. This event provides a valuable opportunity for industry stakeholders to learn from each other and contribute to the overall resilience of our communities,”

The event will feature high-level panel discussions, expert presentations, workshops, and interactive sessions, providing a conducive environment for knowledge sharing, collaboration, and the development of innovative solutions to foster strong partnerships among mining industry stakeholders, government agencies, and local communities, ultimately enhancing the sustainability of mining operations in the region and help create resilient communities.

“We believe that by working together, we can achieve a harmonious coexistence between mining activities and the environment. The CARAGA Resilient Mining Week is a significant step forward in promoting responsible mining practices and ensuring the well-being of our communities,” says Engr. Francisco J. Arańes Jr., President of the Chamber of Mines— CARAGA Region.

The CARAGA Resilient Mining Week is scheduled to take place from July 24 to July 29 in Surigao City. The event promises to be an unparalleled opportunity for mining industry leaders, experts, and stakeholders to engage in meaningful dialogue, exchange best practices, and reinforce Caraga as the center for responsible mining that contributes to building the resilience of the communities.

Sojitz Fuso PHL’s all-new Automated-Manual Transmission Canter is now in the Philippines

Carrying a weight equivalent to 50 percent of its payload capacity (or 1,000 kg cargo), the all-new Canter FE71 demonstrated actual delivery situation, as well as achieving reliable results. It was observed and certified by Automobile Association Philippines (AAP) last June 28, 2023.

SFP continues to emphasize its brand promise of “Economic Efficiency” with the recent release of impressive fuel economy figures which can add as unique selling point for customers to consider before purchasing.

KMC announces partnership with the Philippine National Rugby Team

KMC, the leading provider of flexible office solutions in the country, is thrilled to unveil its upcoming partnership with the Philippine National Rugby Team (known as the Volcanoes) through the Philippine Rugby Football Union (PRFU).

KMC Solutions recognizes the importance of fostering meaningful relationships within the communities it serves. Through this partnership, KMC hopes to contribute to the success of the Volcanoes in inspiring more individuals to engage in the sport.

KMC extends its support to the team by offering monetary sponsorships as well as office spaces for PRFU’s staff on its newly launched site in Ortigas—KMC Jollibee Tower. This will provide the PRFU with a professional and private space for important meetings, strategic planning, individual work sessions, and other tasks in preparation for their training and competitions. To foster a deeper appreciation for the sport, KMC will also be organizing the muchanticipated “Rugby Day” for its employees to learn and experience the sport firsthand with the KMC community, promoting camaraderie within and beyond the office.

“KMC believes in the power of sports to unite teams, promote a healthy lifestyle, and inspire teamwork. We are extremely proud to

announce our partnership with the Philippine Volcanoes. Through this collaboration, we aim to support the national team in their endeavors and help boost the visibility of rugby union in the Philippines,” said Gian Reyes, Vice President of Marketing at KMC Solutions.

“We are thrilled to partner with KMC Solutions, a company that shares our vision for promoting sports and youth development,” said Ada Milby, President of the PRFU. “This partnership represents a significant milestone in our journey to make rugby more accessible and popular across the country. With KMC Solutions’ support, we are confident that we can create a positive impact on the lives of young athletes and build a strong rugby community in the Philippines.”

The partnership between KMC Solutions and Philippine Volcanoes demonstrates the shared goal of both organizations that emphasizes community engagement and creating opportunities for everyone’s personal and professional growth.

Thomas Cragg, Vice President of Sales at KMC, says, “We are excited to deepen our commitment to Philippines Rugby, supporting its grassroots initiatives and player development. Together, we aim to nurture the sport, empower athletes, and build a strong foundation for the future of rugby in the Philippines.”

SM Foundation refurbishes health facility for the

Philippine Navy

THE renovation of health facilities, an important component of the health and medical advocacy of SM Foundation, does not only cover barangay health centers.

It includes the rehabilitation of military health stations where both uniformed and civilian personnel and their dependents are given medical attention.

SOJITZ Fuso Philippines Corporation (SFP), the general distributor of FUSO, and one of the primary commercial vehicle distributors of brand-new trucks, buses and modern PUVs, recently launched the automated-manual transmission (AMT) line of the Canter FE71 at the Filinvest Tent, Alabang, Muntinlupa City.

Canter has been in the service for 60 years since it was launched way back in 1963 and has been an essential vehicle for many businesses, transporting products or people from one place to another.

SFP has introduced some changes in terms of both safety and technology. The all-new Canter FE71 is engineered with a 4P10-KAT2 3.0L 4-inline Direct Injection Diesel Engine and complies with Euro 5 emission standards. Apart from the AMT line, the all-new Canter FE71 will now have a natural 11-footer option. Accordingly, with these newly available options, this dependable light-duty truck will now come in four variants such as 10ft. Manual Transmission (MT), 10ft. AMT, 11ft. MT, and 11ft. AMT.

The upgraded Canter FE71 comes with advanced safety features as a standard for better vehicle control. The existing front and rear disc brake comes with a modern Anti-Lock Braking System (ABS) and Electronic Brakeforce Distribution (EBD) that provides another level of safety and assurance.

This is also the first time SFP is introducing the DUONIC® automated-manual transmission for the FUSO Canter light-

duty truck, in the Philippines. The all-new Canter FE71 is equipped with a six-speed dual-clutch transmission that is designed for smoother performance, better acceleration, and fuel efficiency for a more comfortable driving experience.

On the exterior, the all-new Canter FE71 still features a modern cab design featuring the V-line concept, angular headlamp shape, and horizontal character line in the front fascia emphasizing the clean look and creating a sense of forwarding motion. It still shows off its Reinforced Impact Safety Evolution or R.I.S.E Body that guarantees stronger and safer cab-over-engine (COE) concepts.

The all-new Canter FE71 also maintains an easy-to-tilt cab with a wide tilt angle, allowing unrestricted vehicle maintenance access to the engine bay.

In the interior, the all-new Canter FE71 incorporates a new meter cluster with a multi-information display that presents average and instant fuel consumption data.

The tilt and telescopic adjustable steering wheel and dash-mounted gear shift ensure smooth operation and makes it easier for the driver to find a more comfortable driving position.

The all-new Canter FE71 AMT achieved an impressive fuel consumption figure of 11.6km per liter over nearly 356 kilometers while simulating the actual road environment with a mixture of different actual driving conditions, regulated road speed limits, and light to-no traffic system.

Noriyuki Sekita, SFP EVP for Sales and Marketing mentioned in his speech, “This will not be possible without our real VIPs— our customers. FUSO values every customer from the inquiry stage until successful purchases and after-sales services, whether big or small; we aim to participate in each of their successes through efficient and reliable FUSO products. This event marks a new level of innovation of Japanese quality, thus a milestone for FUSO.”

“The all-new Canter FE71 is the epitome of excellence in the commercial truck segment, setting the industry standard for performance, reliability, and customer satisfaction. Beyond the technical specifications and features mentioned lies a deeper significance. The FUSO Canter FE71 is not just a vehicle; it is a partner—an integral part of countless businesses, large and small, that rely on it to keep their operations running smoothly. It is a vehicle that enables dreams to become a reality, businesses to thrive, and communities to prosper.” says SFP President & CEO, Yosuke Nishi.

Besides offering durable and reliable commercial vehicles, SFP also provides comprehensive aftersales support and a fleet program for valued customers. SFP will continue to work hand-in-hand with its dealer partners to attend to every client in their business needs.

Canter has recorded top sales for SFP among the full product portfolio and is expected to strengthen its presence nationwide with the launch of the all-new Canter FE71.

To learn more about pricing and complete details, you may visit your preferred FUSO dealership near you or contact us by filling-out this form www. fuso.com.ph/contact-us

Last July 10, 2023 a refurbished Naval Station Apolinario Jalandoon Medical Dispensary (NSAJMD) in Puerto Princesa City was inaugurated and formally turned over to the Philippine Navy, a major service of the Armed Forces of the Philippines by SM Foundation.

The NSAJMD in the Naval Installation and Facilities West is the Philippine Navy’s Military Treatment Facility that dispenses medical and healthcare services to all Philippine Navy personnel, their dependents, and authorized civilians within the Naval Installation and Facilities West and in the area of responsibility of the Naval Forces West.

Following standards set by the Department of Health, the upgrade covered both the exterior and interior of the health facility.

Walls were repainted to provide a cheerful and conducive environment to healthcare workers and patients. Inverter-type of air conditioner units and refrigerator were installed to reduce power consumption. LED lights were likewise used. Aside from the medical dispensary makeover, SM Foundation donated furniture including hospital

Executive Director Connie Angeles and Capt. AILEEN BERNADETTE VELASCO.

beds and medicines for its pharmacy.

Other military medical facilities that have been renovated by SM Foundation include the Philippine Military Academy Fort del Pilar Station Hospital, Camp Evangelista Station Hospital Annex,Edwin Andrews Air Base Hospital, BGen Benito N. Ebuen Air Base Hospital, Philippine Air Force General Hospital, Air Force City Hospital in Clark, Fernando Airbase Station Hospital in Lipa, the Convalescence, Orthopedic & Heroes Ward of the V, Luna Hospital, now the AFP Hospital and Camp Evangelista Station Hospital Annex in Cagayan de Oro City, among others.

The NSAJMD is the 194th SM Foundation Wellness Center to date. It is the 39th military facility renovated by SM Foundation and the second in Puerto Princesa City following the 2018 turnover of a renovated Camp General Artemio Ricarte Station Hospital.

Experience how to live like ‘Barbie’ in Barbie Land at SM MOA Atrium

WELCOME to Barbie Land!

To give everyone a chance to live their Barbie dream, SM Mall of Asia, Toy Kingdom and RichPrime launched the Barbie Land Experience at the SM Mall of Asia Atrium last July 10, 2023. The pinktastic installation will be available until July 21, and is open for free to all Barbies, Kens and humans too!

The Barbie Land Experience features a twostorey Barbie Dream House, with a music room that features songs from the official Barbie the Album soundtrack released by Warner Music Philippines, a vanity room and, of course, her pool. And what’s a dream house without some fabulous fashion? Also on display in Barbie

Land are Barbie’s outfits.

Aspiring Barbies and Kens can also have their photos taken in Barbie box standees found on the Land.

And for a sweet treat, there is a Krispy Kreme donut cart with a sampling of Barbie™ doughnuts!

The Barbie Movie Doll Collection will be on display and available for purchase from Toy Kingdom. For those seeking to make a #Barbiecore fashion statement, Barbie apparel and the Barbie Movie shoe collection from Superga are in display to give you inspiration.

Don’t miss the Barbie Land Experience at SM Mall of Asia!

IN the photo are, from left, Thomas Cragg (VP for Sales, KMC), Amanda Carpo (Co-Founder, KMC), Ada Milby (President, Philippines Rugby Football Union), Michael McCullough (CEO, KMC), Gian Reyes (VP for Marketing, KMC), and Acee San Juan (General Manager, Philippines Rugby Football Union)

IN the photo are, from left, CDR Norman Elumba, Commodore Alan Javier, SMFI

Google’s AI chatbot trained by humans who are overworked, underpaid and frustrated

By Davey Alba

Ensuring that the response is wellsourced and based on evidence, however, falls to thousands of outside contractors from companies including Appen Ltd. and Accenture Plc, who can make as little as $14 an hour and labor with minimal training under frenzied deadlines, according to several contractors, who declined to be named for fear of losing their jobs.

The contractors are the invisible backend of the generative AI boom that’s hyped to change everything. Chatbots like Bard use computer intelligence to respond almost instantly to a range of queries spanning all of human knowledge and creativity. But to improve those responses so they can be reliably delivered again and again, tech companies rely on actual people who review the answers, provide feedback on mistakes, and weed out any inklings of bias.

It’s an increasingly thankless job. Six current Google contract workers said that as the company entered an AI arms race with rival OpenAI over the past year, the size of their workload and complexity of their tasks increased. Without specific expertise, they were trusted to assess answers in subjects ranging from medication doses to state laws. Documents shared with Bloomberg show convoluted instructions that workers must apply to tasks with deadlines for auditing answers that can be as short as three minutes.

“As it stands right now, people are scared, stressed, underpaid, don’t know what’s going on,” said one of the contractors. “And that culture of fear is not conducive to getting the quality and the teamwork that you want out of all of us.” Google has positioned its AI products as public resources in health, education, and everyday life. But privately

and publicly, the contractors have raised concerns about their working conditions, which they say hurt the quality of what users see. One Google contract staffer who works for Appen said in a letter to Congress in May that the speed at which they are required to review content could lead to Bard becoming a “faulty” and “dangerous” product.

Google has made AI a major priority across the company, rushing to infuse the new technology into its flagship products after the launch of OpenAI’s ChatGPT in November. In May, at the company’s annual I/O developers conference, Google opened up Bard to 180 countries and territories and unveiled experimental AI features in marquee products like search, e-mail and Google Docs. Google positions itself as superior to the competition because of its access to “the breadth of the world’s knowledge.”

“We undertake extensive work to build our AI products responsibly, including rigorous testing, training, and feedback processes we’ve honed for years to emphasize factuality and reduce biases,” Google, owned by Alphabet Inc., said in a statement. The company said it isn’t only relying on the raters to improve the AI, and that there are a number of other methods for improving its accuracy and quality.

To prepare for the public using these products, workers said they started getting AI-related tasks as far back as January. One trainer, employed by Appen, was recently asked to compare two answers providing information about the latest news on Florida’s ban on gender-affirming care, rating the responses by helpfulness and relevance. Workers are also frequently asked to determine whether the AI model’s answers contain

verifiable evidence. Raters are asked to decide whether a response is helpful based on six-point guidelines that include analyzing answers for things like specificity, freshness of information, and coherence.

They are also asked to make sure the responses don’t “contain harmful, offensive, or overly sexual content,” and don’t “contain inaccurate, deceptive, or misleading information.” Surveying the AI’s responses for misleading content should be “based on your current knowledge or quick web search,” the guidelines say. “You do not need to perform a rigorous fact check” when assessing the answers for helpfulness.

The example answer to “Who is Michael Jackson?” included an inaccuracy about the singer starring in the movie “Moonwalker”—which the AI said was released in 1983. The movie actually came out in 1988. “While verifiably incorrect,” the guidelines state, “this fact is minor in the context of answering the question, ‘Who is Michael Jackson?’”

Even if the inaccuracy seems small, “it is still troubling that the chatbot is getting main facts wrong,” said Alex Hanna, the director of research at the Distributed AI Research Institute and a former Google AI ethicist. “It seems like that’s a recipe to exacerbate the way these tools will look like they’re giving details that are correct, but are not,” she said.

Raters say they are assessing highstakes topics for Google’s AI products. One of the examples in the instructions, for instance, talks about evidence that a rater could use to determine the right dosages for a medication to treat high blood pressure, called Lisinopril.

Google said that some workers concerned about accuracy of content may not have been training specifically for accuracy, but for tone, presentation and other attributes it tests. “Ratings are deliberately performed on a sliding scale to get more precise feedback to improve these models,” the company said. “Such ratings don’t directly impact the output of our models and they are by no means the only way we promote accuracy.”

Ed Stackhouse, the Appen worker who sent the letter to Congress, said in an interview that contract staffers were being asked to do AI labeling work

on Google’s products “because we’re indispensable to AI as far as this training.” But he and other workers said they appeared to be graded for their work in mysterious, automated ways. They have no way to communicate with Google directly, besides providing feedback in a “comments” entry on each individual task. And they have to move fast. “We’re getting flagged by a type of AI telling us not to take our time on the AI,” Stackhouse added.

Google disputed the workers’ description of being automatically flagged by AI for exceeding time targets. At the same time, the company said that Appen is responsible for all performance reviews for employees. Appen did not respond to requests for comment. A spokesperson for Accenture said the company does not comment on client work.

Other technology companies training AI products also hire human contractors to improve them. In January, Time reported that laborers in Kenya, paid $2 an hour, had worked to make ChatGPT less toxic. Other tech giants, including Meta Platforms Inc., Amazon.com Inc. and Apple Inc. make use of subcontracted staff to moderate social network content and product reviews, and to provide technical support and customer service.

“If you want to ask, what is the secret sauce of Bard and ChatGPT?

It’s the entire Internet. And it’s all of this labeled data that these labelers create,” said Laura Edelson, a computer scientist at New York University.

“It’s worth remembering that these systems are not the work of magicians—they are the work of thousands of people and their low-paid labor.”

Google said in a statement that it “is simply not the employer of any of these workers. Our suppliers, as the employers, determine their working conditions, including pay and benefits, hours and tasks assigned, and employment changes—not Google.”

Staffers said they had encountered bestiality, war footage, child pornography, and hate speech as part of their routine work assessing the quality of Google products and services. While some workers, like those reporting to Accenture, do have health care benefits, most only

have minimal “counseling service” options that allow workers to phone a hotline for mental health advice, according to an internal website explaining some contractor benefits.

For Google’s Bard project, Accenture workers were asked to write creative responses for the AI chatbot, employees said. They answered prompts on the chatbot—one day they could be writing a poem about dragons in Shakespearean style, for instance, and another day they could be debugging computer programming code. Their job was to file as many creative responses to the prompts as possible each work day, according to people familiar with the matter, who declined to be named because they weren’t authorized to discuss internal processes.

For a short period, the workers were reassigned to review obscene, graphic and offensive prompts, they said. After one worker filed an HR complaint with Accenture, the project was abruptly terminated for the US team, though some of the writers’ counterparts in Manila continued to work on Bard.

The jobs have little security. Last month, half a dozen Google contract staffers working for Appen received a note from management, saying their positions had been eliminated “due to business conditions.” The firings felt abrupt, the workers said, because they had just received several e-mails offering them bonuses to work longer hours training AI products. The six fired workers filed a complaint to the National Labor Relations Board in June. They alleged they were illegally terminated for organizing, because of Stackhouse’s letter to Congress. Before the end of the month, they were reinstated to their jobs.

Google said the dispute was a matter between the workers and Appen, and that they “respect the labor rights of Appen employees to join a union.” Appen didn’t respond to questions about its workers organizing. The Alphabet Workers Union—which has organized both Google employees and contract staffers, including those at Appen and Accenture—said it condemned how the new workloads around AI made job conditions for workers even more difficult.

Emily Bender, a professor of computational linguistics at the University of Washington, said the work of these contract staffers at Google and other technology platforms is “a labor exploitation story,” pointing to their precarious job security and how some of these kinds of workers are paid well below a living wage. “Playing with one of these systems, and saying you’re doing it just for fun—maybe it feels less fun, if you think about what it’s taken to create and the human impact of that,” Bender said.

The contract staffers said they have never received any direct communication from Google about their new AI-related work—it all gets filtered through their employer. They said they don’t know where the AI-generated responses they see are coming from, nor where their feedback goes. In the absence of this information, and with the ever-changing nature of their jobs, workers worry that they’re helping to create a bad product.

Some of the answers they encounter can be bizarre. In response to the prompt, “Suggest the best words I can make with the letters: k, e, g, a, o, g, w,” one answer generated by the AI listed 43 possible words, starting with suggestion No. 1: “wagon.” Suggestions 2 through 43, meanwhile, repeated the word “WOKE” over and over.

In another task, a rater was presented with a lengthy answer that began with, “As of my knowledge cutoff in September 2021.” That response is associated with OpenAI’s large language model, called GPT-4. Though Google said that Bard “is not trained on any data from ShareGPT or ChatGPT,” raters have wondered why such phrasing appears in their tasks.

Bender said it makes little sense for large tech corporations to be encouraging people to ask an AI chatbot questions on such a broad range of topics, and to be presenting them as “everything machines.”

“Why should the same machine that is able to give you the weather forecast in Florida also be able to give you advice about medication doses?” she asked. “The people behind the machine who are tasked with making it be somewhat less terrible in some of those circumstances have an impossible job.” Bloomberg News

ISRAEL QUIETLY EMBEDS AI SYSTEMS IN DEADLY MILITARY OPERATIONS

By Marissa Newman

THE Israel Defense Forces have started using artificial intelligence to select targets for air strikes and organize wartime logistics as tensions escalate in the occupied territories and with archrival Iran.

Though the military won’t comment on specific operations, officials say that it now uses an AI recommendation system that can crunch huge amounts of data to select targets for air strikes. Ensuing raids can then be rapidly assembled with another artificial intelligence model called Fire Factory, which uses data about military-approved targets to calculate munition loads, prioritize and assign thousands of targets to aircraft and drones, and propose a schedule.

W hile both systems are overseen by human operators who vet and approve individual targets and air raid plans, according to an IDF official, the technology is still not subject to any international or state-level regulation. Proponents argue that the advanced algorithms may surpass human capabilities and could help the military minimize casualties, while critics warn of the potentially deadly consequences of relying on increasingly autonomous systems.

“If there is a mistake in the calculation of the AI, and if the AI is not explainable, then who do we blame for the mistake?” said Tal Mimran, a lecturer of international law at the Hebrew University of Jerusalem and former legal counsel for the army. “You can wipe out an entire family based on a mistake.”

Details of the army’s operational use of AI remain largely classified, yet statements from military officials suggest that the IDF has gained battlefield experience with the controversial systems through periodic flareups in the Gaza Strip, where Israel frequently carries out air strikes in response to rocket attacks. In 2021, the IDF described the 11day conflict in Gaza as the world’s first “AI war,” citing its use of artificial intelligence to identify rocket launchpads and deploy drone swarms. Israel also conducts raids in Syria and Lebanon, targeting what it says are weapons shipments to Iran-backed militias like Hezbollah.

In recent months, Israel has been issuing near-daily warnings to Iran over its uranium enrichment, vowing it will not allow the country to obtain nuclear weapons under any circumstances. Should the two enter into a military confrontation, the IDF anticipates that Iranian proxies in Gaza, Syria and Lebanon would retaliate, setting the stage for the first serious multi-front conflict for Israel since a surprise attack by Egypt and Syria 50 years ago sparked the Yom Kippur War.

AI-based tools like Fire Factory are tailored for such a scenario, according to IDF officials.

“What used to take hours now takes minutes, with a few more minutes for human review,” said Col. Uri, who heads the army’s digital transformation unit and who spoke at the IDF headquarters in Tel Aviv on the condition that only his first name be used for security reasons. “With the same amount of people, we do much more.”

The system, these officials stressed, is designed for all-out war.

Expanding intelligence?

THE IDF has long made use of AI, but in recent years it has expanded those systems across various units as it seeks to position itself as a global leader in autonomous weaponry. Some of these systems were built by Israeli defense contractors; others, like the StarTrack border control cameras, which are trained on thousands of hours of footage to identify people and objects, were developed by the army. Collectively, they comprise a vast digital architecture dedicated to interpreting enormous amounts of drone and CCTV footage, satellite imagery, electronic signals, online communications, and other data for military use.

Dealing with this torrent of information is the purpose of the Data Science and Artificial Intelligence Center, run by the army’s 8200 unit. Based within the intelligence division, that unit is where many of the country’s tech multi-millionaires, including Palo Alto Networks Inc.’s Nir Zuk and Check Point Software Technologies Ltd founder Gil Shwed, did their mandatory military service before forming successful startups. According to a spokesman, the Center was responsible for developing the system that “transformed the entire concept of targets in the IDF.”

The secretive nature of how such tools are developed has raised serious concerns, including that the gap between semiautonomous systems and entirely automated

killing machines could be narrowed overnight. In such a scenario, machines would be empowered to both locate and strike targets, with humans removed entirely from positions of decision-making.

“I t’s just a software change that could make them go to not being semi but to being completely autonomous,” said Catherine Connolly, an automated decision researcher at Stop Killer Robots, a coalition of non-governmental organizations that includes Human Rights Watch and Amnesty International. Israel says it has no plans to remove human oversight in coming years.

Another worry is that the fast adoption of AI is outpacing research into its inner workings. Private companies and militaries that do not disclose proprietary information develop many algorithms, and critics have underlined the built-in lack of transparency in how algorithms reach their conclusions. T he IDF acknowledged the problem, but said output is carefully reviewed by soldiers and that its military AI systems leave behind technical breadcrumbs, giving human operators the ability to recreate their steps.

“Sometimes when you introduce more complex AI components, neural networks and the like, understanding what ‘went through its head,’ figuratively speaking, is pretty complicated. And then sometimes I’m willing to say I’m satisfied with traceability, not explainability. That is, want to understand what is critical for me to understand about the process and monitor it, even if I don’t

understand what every ‘neuron’ is doing,’” said Uri.

T he IDF declined to talk about facial recognition technology, which has been strongly criticized by human rights groups, although it did say it has refrained from integrating AI into recruitment software out of concern that it could discriminate against women and potential cadets from lower socioeconomic backgrounds.

The main advantage of integrating AI into battlefield systems, according to some experts, is the potential to reduce civilian casualties. “I think that there’s an efficiency and effectiveness benefit to using these technologies correctly. And within good functioning technological parameters, there can be very, very high precision,” said Simona R. Soare, a research fellow at the London-based International Institute of Strategic Studies. “It can help you with a lot of things that you need to do on the go, in the fog of battle. And that is very difficult to do on the best of days.”

“There are also many things that can go wrong, too,” she added.

Ethical concerns

WHILE Israeli leaders have outlined their intention to make the country an “AI superpower,” t hey’ve been vague on the details. The Defense Ministry declined to comment on how much it’s invested in AI, and the army would not discuss specific defense contracts, though it did confirm that Fire Factory was developed by Israeli defense contractor Rafael. Further obscuring the

picture is that, unlike during the nuclear arms race, when leaking details of weapons’ capabilities was a key aspect of deterrence, autonomous and AI-assisted systems are being developed by governments, militaries, and private defense companies in secret.

“We can assume that the Americans and even the Chinese and maybe several other countries have advanced systems in those fields as well,” said Liran Antebi, a senior researcher at the Israel-based Institute for National Security Studies. But unlike Israel, “they have, as much as know, never demonstrated operational use and success.”

For now, there aren’t any limitations. Despite a decade of UN-sponsored talks, there is no international framework establishing who bears responsibility for civilian casualties, accidents or unintended escalations when a computer misjudges.

There’s also a question of testing and the data that these systems are trained on,” said Connolly from the Stop Killer Robots coalition.

“How precise and accurate can you know a system is going to be unless it’s already been trained and tested on people?”

Such concerns are why Mimran, the law lecturer at Hebrew University, believes that the IDF should exclusively use AI for defensive purposes. During his tenure in the army, Mimran manually vetted targets to make sure that attacks complied with international law. That taught him that, regardless of technology, “there is a point where you need to make a value-based decision.”

“And for that,” he said, “we cannot rely on AI.” Bloomberg News

GOOGLE’S Bard artificial intelligence chatbot will answer a question about how many pandas live in zoos quickly, and with a surfeit of confidence.

6 meters-plus key to Obiena’s Olympic gold medal bid–Petrov

meters club, Petrov said the Filipino’s Paris program has yet to start.

The [Olympic] program is not yet started. This Asian Games will finish very late [September] so we start in November and he must rest before preparation for the indoor next year and for the indoor season in February,” he said.  Petrov said Obiena must focus on his physical, technical and mental recovery to help him achieve his Olympic goal.

“ We must go higher. This year we are close to Duplantis, but we will try and we prepare, not only for physical and technical but also for recovery for mental,” he said. “Pole vault runs for three hours, you must wait, you must keep your energy, some games you lose, some sets you lose and you recover.”

By Josef Ramos

BANGKOK—Ernest John “EJ”

Obiena must jump more than 6 meters to give world and Olympic champion and record holder Armand Duplantis a tough competition for the gold medal at the Paris Olympics next year.

“He [Obiena] can jump 6 meters, but I saw that 6 meters is not enough for next year for the Olympic Games,” Vitaly Petrov said on the sidelines Sunday of the Asian Athletics Championships at the Supachalasai National Stadium after his ward Obiena retained his men’s pole vault gold medal at 5.91—a new continental area record.

“This year, we changed some in the program, some in the technical for the preparation, methodology, understanding maybe necessary to jump 6.10 to 6.15 in the Olympics,” added Petrov, whose roster of champions include twotime world champion and 1988 Olympic gold medalist Sergey Bubka of Ukraine, two-time world champion and 2008 Olympic gold medalist Yelena Isinbayeva of Russia, 2004 Olympic bronze medalist and 2003 world champion Giuseppe Gibilisco of Italy and two-time world champion and Olympian Fabiana Murer and Rio 2016 winner Thiago Braz da Silva, both of Brazil.

A lthough Obiena has been jumping successfully since the indoor season and having joined the elite 6

Sports

Duplantis owns the world records at 6.21 (outdoor) and 6.22 meters (indoor) but was upstaged by Obiena, who cleared 5.91 meters to the Swede’s 5.81 meters for the gold at the Diamond Wanda League in Brussels last September 3.

B efore that, Obiena cleared 6 meters on June 11 at the Bergen Jump Challenge in Norway.

Obiena and Duplantis also earned their qualification for Paris at 6.05 and 5.82 meters, respectively, in BauhausGalan last July 2 in Stockholm. The qualifying height is 5.82 meters.

Petrov said Paris is a pressure to Obiena.  “

Why do you always put an Olympic gold medal on him? It’s not easy. We just prepare for good competition,” he said. “The Olympic gold now is a difference of 22 centimeters, we try to do maximum results as possible.”

Petrov shunned commenting on Russia’s war against his homeland, saying he hasn’t been home for a long time and already lives in Formia, Italy. He has a daughter in London and two in Italy and has one grandson and three granddaughters.

At 77 years old, Petrov’s looks resilient like his wards.

Why do I look young? I have young athletes around, speak with young boys, stay with young people, rest and holiday in Formia,” he said.

“I have five Olympic medals but not only for one country, I am now going for a sixth medal also in a different country, the Philippines.”

A nd on Obiena, he said: “I must work out because this boy will kill me.… I must.”

PHILIPPINE Olympic Committee and PhilCycling president Abraham “Bambol” Tolentino welcomes Philippine Sports Commission chairman Richard “Dickie” Bachmann on a foggy Sunday morning during the Asian BMX Freestyle and Racing Championships Sunday at the Tagaytay City BMX and Skateboard Park.

Tolentino eyes Asian championships anew, UCI BMX World Cup in 2025 in Tagaytay City

THE PhilCycling has offered an early bid to again host the Asian BMX Championships in 2025 as a prelude to its bigger target of the Philippines becoming the first Asian country to host an International Cycling Union (UCI) BMX World Cup in the same year.

Cycling head and Philippine Olympic Committee president Rep. Abraham “Bambol” Tolentino made the offer to Asian Cycling Confederation (ACC) secretary-general Onkar Singh and UCI management committee member Datuk Amarjit Singh of Malaysia on the final day of the 2023 Asian BMX Championships for Freestyle and Racing at the Tagaytay City BMX Park on Sunday.

With the success of this year’s Asian BMX championships, Tagaytay City is declaring its bid not only for the continental championships but also for the UCI World Cup in 2025,” said Tolentino, who’s also the mayor of Tagaytay City.

CLOSE to 300 youngsters from all over the country are seeing action in the Palawan Pawnshop-Palawan Express Pera Padala (PPS-PEPP) Rep. Marlyn Alonte-Naguiat national juniors tennis championships starting Wednesday at the Brent Tennis Center in Biñan, Laguna.

A ll but one in nine age-group divisions will feature 32-player draws, underscoring the tremendous response of those bidding in the 10-unisex all the way to the premier

More than 200 athletes and officials from nine Asian countries— including riders as young as 9 years old who competed in the Challenge events—converged for the threeday championships that was the last qualifier for the cycling discipline for the Paris 2024 Olympics.

For the country to host the World Cup, Tolentino said the current BMX track has to be modified.

Innovations on the current BMX track would be implemented, especially on raising the start ramp from its present 5-meter height to the world championships and World Cup standard of 8 meters,” he said.

Plans to build a V-shaped start ramp—5 meters and 8 meters— would be implemented soon, he said.

But hosting the Asian championships and the World Cup would have to be in the first five months of the year when the rains—and the Tagaytay fog—are scant,” he said.

B8 | Tuesday, July 18, 2023

mirror_sports@yahoo.com.ph

Editor: Jun Lomibao

TRANSFER OF POWER

WIMBLEDON, England—A poor start left Carlos Alcaraz a single point from a twoset hole against Novak Djokovic in the Wimbledon final.

Th at sort of deficit is daunting for anyone, let alone a 20-yearold in his second major final, and against anyone, let alone Djokovic, someone who hadn’t lost at Centre Court in a decade, someone seeking a fifth consecutive championship, and record-tying eighth overall, at the All England Club. Someone who won the year’s first two Grand Slam tournaments and 23 over his career.

A h, but Alcaraz, last year’s US Open champ, wanted this shot at Djokovic, someone he called “a legend of our sport.” Said it would make winning Wimbledon that much more special. And so Alcaraz managed to come through in that tiebreaker as choruses of “Car-los!

Car-los!” from the stands competed with cries of his older, more experienced, more accomplished foe’s two-syllable nickname, “No-le! No-le!” And then Alcaraz came through in a 32-point, 25-minute masterpiece of a game soon thereafter. And, crucially,

1-ranked Alcaraz marked himself as the star people have been predicting he would be, transforming potential

streak at the All England Club all in one fell swoop by edging him 1-6, 7-6 (6), 6-1, 3-6, 6-4 in an engaging, back-and-forth final on Sunday. Alcaraz claimed his first title at Wimbledon and second Grand Slam trophy overall.

Didn’t get down, didn’t give up,” said Alcaraz, the third-youngest man to win the grass-court major in the Open era, which began in 1968, after Boris Becker and Bjorn Borg. “We made great rallies, great points. It was a long, long match. Long sets. It was the mental part that allowed me to stay there.” e is the first man outside the elite quartet of Djokovic, Roger Federer, Rafael Nadal and Andy Murray to win Wimbledon since 2002 and, to many, this symbolized a transfer of power in men’s tennis.

“I haven’t played a player like him. Ever,” said Djokovic, quite a statement from a guy who competed against Federer and Nadal for so long and in so many remarkable matches.

He’s proven,” Djokovic said, “that he’s the best player in the world, no doubt.”

The age gap between Alcaraz and the 36-year-old Djokovic, who

Oh boy! Men to compete in artistic swimming in Paris

FUKUOKA, Japan—Snicker if you wish. Guffaw for good measure. Bill May and other male synchronized swimmers—now called artistic swimmers—have heard the putdowns before.

But they’re getting the last laugh.

Men have competed in synchro at the lower levels for decades. Now they’re being included in the Olympics, meaning next year’s Summer Games in Paris.

“ I think it’s a huge opportunity for the sport to grow and attract more men,” May told the Associated Press at the World Aquatics Championships. “By keeping men out you’re limiting the sport. By including men you’re going to see an upshift in the popularity and the numbers.”

M ay looks like a lean bodybuilder. He was among the first men to compete when synchro was included

in the worlds for the first time in 2015. And he worked for 17 years at Cirque du Soleil doing waterthemed shows. He has come out of competitive retirement for a chance to compete at the Olympics.

There has always been that misconception that it’s a femaleonly sport, or that it’s for wimps, or that it’s not a difficult sport,” the 44-year-old May said. “Anyone that has anything negative to say about the sport—boy, female, anyone. Just try it and you’ll know it’s the most difficult sport in the world.”

Th is is not the synchronized swimming that your parents or grandparents watched—the water ballet that made few waves below the flowery rubber caps and permanent smiles, It’s estranged from the sport introduced at the 1984 Los Angeles Olympics.

2K jins in national championships

AROUND 2,000 jins, including collegiate stars, will compete in the 46th Smart/ MVP Sports Foundation National Taekwondo Championships on July 22 and 23 at the Music Hall of SM Mall of Asia in Pasay City. The Philippine Taekwondo Association (PTA) said among the participants in the association’s

Record field in Alonte jr netfest

18-under class of the Group 1 tournament presented by Dunlop.

O nly the girls’ 18-under will have 16 entries but the battle for top honors and ranking points is expected to be tight as in the rest of the competition.

To accommodate the record 272 entries in the event serving as part of the country’s longest talent-search,

playing times and days have been extended, according to organizer Jonathan Bernardo, also the personin-charge of the PPS-PEPP Committee on Tennis in the Calabarzon area.

Quezon City’s Chloe Mercado, fresh from her feat in the Lanao del Norte swing of the nationwide circuit put up by Palawan Pawnshop president and CEO Bobby Castro, gains the No.

biggest tournament for the year are the stars of various chapters from 20 different regions with National Capital Region (NCR) fighters looming as top favorites in the twoday tournament.

Teams from the University Athletic Association of the Philippines and National Collegiate Athletic Association are also fielding

2 seeding as she gears up for a title collision with No. 1 Jane Diaz with Sandra Bautista and Alexi Jarata both seeking to crowd the fancied bets in the centerpiece girls’ division.

K ale Cyd Villamar, on the other hand, is all primed for battle with the likes of Vince Serna and Kendrick Bona as the Kapatagan, Lanao del Norte bet takes the No. 3 seeding in the boys’ 18-U play that also includes Ariel Cabaral, Reign Maravilla, siblings Frand and France Dilao and Marben Alimarin.

ceremony, was the widest in any men’s Slam final since 1974.

So Alcaraz had youth on his side, which he also did, of course, when they met in the French Open semifinals last month. That one was extraordinary for two sets before Alcaraz cramped up and faded. This time, he had the stamina and the strokes to get past Djokovic—and the belief that he could win. A fter Alcaraz made nine unforced errors in the opening set to Djokovic’s two, showing signs of the nerves that hit him in Paris, things began to shift Sunday. At 4-all in the second set, Djokovic slipped on a worn patch behind the baseline under the Royal Box, flinging his racket away as he fell. At the next changeover, Djokovic flexed one leg by bending it over the other, then plopped his left heel on the net for additional stretching.

They would head to a tiebreaker, Djokovic’s dominion: He had won all six such set-enders he played at Wimbledon leading up to the final, and 15 straight in Grand Slam action.

Unflustered by a warning from chair umpire Fergus Murphy for taking too much time to serve, Djokovic pulled ahead 6-5. A set point.

But two netted backhands by Djokovic put Alcaraz within a point of that set.

“ The backhands kind of let me down,” Djokovic would say later. AP

swimming. When I first started I wanted to quit so many times. Growing up my peers would ask why I’m doing a female sport, why am I being like a girl and degrade me for doing what I love to do.”

One aspect of Adam Andrasko’s job as the head of USA Artistic Swimming is recruiting men. He said there are about 100 participating in the United States, up from 25 just four years ago. There hasn’t been a good foundation of growth,” Andrasko said.

“You haven’t had the farm system.”

The acrobatic team event, in particular, features lifts, throws and flips, and diving routines launched off the shoulders of teammates treading water below. It’s gymnastics on water and concussions are a risk.

I nterested men often confront the stereotypes.

B eginning in elementary school, 18-year-old American Kenny Gaudet dreamed of being a synchronized swimmer. He made it, but it wasn’t easy.

It makes me emotional just to think about the problems we all went through and the struggles we all had just to get a chance to swim and do what we love,” said Gaudet who competed at this year’s worlds.

So much bullying. So much slander. So much hate,” he added. “Just because of my gender, just because I’m a male in artistic

their top bets in the competition that is also sponsored by the Philippine Sports Commission, Philippine Olympic Committee and Milo.

Events on tap are Advance and Novice with the seniors, juniors, cadet and grade school divisions for male and female.

I n order to eliminate human error, the PTA will

A few countries at the world championships have male swimmers including the United States, Japan, Germany and China. Spain and Italy also have top competitors. There aren’t a lot of countries with strong males,” in the international competition, Andrasko said, noting men often lack the flexibility to compete. “So you might not see a lot of males swimming in the Olympics. I’m concerned it goes to the Olympic Games and we don’t see a male participating. I definitely have that fear.”

To this point,” he added, “women are still far better at this sport than a man.”

A nother fear, apparently unfounded, is that women might resent the men competing in the sport. Men will compete in only team events at the Olympics. Teams have a maximum of eight members—with a limit of two men—which means men might crowd out some women. There is no requirement for men to be included.

A sked about any acrimony, two-time American Olympian Anita Alvarez replied: “No, not at all.”

be utilizing the KPNP technology as Protector and Scoring System, apart from the implementation of the Instant Video Replay system. E liminations start at 9 a.m. with the official opening ceremony set at 1 p.m.  that will be highlighted by a show from the Philippine Demonstration Team.

VITALY PETROV strikes a pose with his medalwinning wards in Bangkok—(from left) Saudi Arabia’s Hussain Alhizam (silver), Ernest John “EJ” Obiena (gold) and China’s Huang Bokai (bronze).

THE US team, including Bill May, competes in team acrobatic of artistic swimming at the World Swimming Championships in Fukuoka, Japan, Saturday. AP

MORE than 2,000 jins are competing in the national championships.

CARLOS ALCARAZ wields the stamina and the strokes to get past Novak Djokovic—and the belief that he could win. AP