BusinessMirror June 14, 2021 by BusinessMirror

‘Return to ‘19 GDP level only in late 2022’ By Bianca Cuaresma

T San Juan Mayor Francis Zamora sticks a “safety seal” on a business establishment at Greenhills Mall in San Juan City. The certification aims to assure the public of establishments’ compliance with the minimum public health standards set by the government in all private business establishments, selected public places and government offices. NONOY LACZA

@BcuaresmaBM

HE members of the Bangko Sentral ng Pilipinas’ (BSP) monetary board are expecting the country’s real gross domestic product (GDP) to return to pre-pandemic levels toward the latter end of next year. In the highlights of the most recent monetary board meeting published just last week, MB members said that based on the latest projected growth path of the country, real GDP is seen to return to its 2019 level by the third quarter of 2022. “The domestic economy contracted by 4.2 percent in the

first quarter of 2021, but could start to rebound from the second quarter of 2021 onwards,” the BSP monetary board meeting highlights read. “Meanwhile, the recovery in growth for the second half of 2021 and 2022 is expected to be supported by the implementation of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) and FIST laws as well as the overall recovery in global economic activity,” it added. The CREATE law was signed by President Duterte toward the end of March this year. The law cuts corporate income tax (CIT) rate—the highest in the Asean region—and rationalizes the

country’s fiscal incentives system. The FIST law, meanwhile, was implemented toward the end of March. The law allows for the establishment of corporations to invest in or acquire non-performing assets of covered financial institutions. The monetary board’s forecast is slightly more optimistic than Moody’s Analytics forecast, which was released last month. Moody’s Analytics said the Philippines isn’t forecast to return to pre-pandemic levels of output until the end of 2022. “This is in contrast with China, Taiwan, South Korea and

Vietnam, which have returned to previous output levels, while Indonesia and Thailand are on track to return this year. This makes the Philippines the clear lag gard in Asia,” Moody’s Analytics senior Asia pacific economist Katrina Ell and Moody’s associate economist David Chia said. T he Philippine economy plunged into recession in 2020 due to the disruption caused by the global health crisis. Last year, the country’s gross domestic product (GDP) shrank by 9.5 percent on average. The BSP monetary board is set to meet on June 24 for their fourth monetary policy meeting for the year.

GOVT DEBT SERVICE UP

n Monday, June 14, 2021 Vol. 16 No. 243

P25.00 nationwide | 2 sections 18 pages |

20% FROM JAN TO APRIL BUSINESS GROUPS WANT COMMERCIAL INFO ON EXEMPTIONS TO FOI ACT By Cai U. Ordinario

The SM Mall of Asia prepared its own contribution to the country’s Freedom Day celebrations ahead of the 123rd Philippine Independence Day on Saturday. It featured the most number of bottle lights the Liter of Light has ever produced in the country, while the iconic MOA Globe paid tribute to the Philippine National Flag. Liter of Light is a global, grassroots movement committed to providing affordable, sustainable solar light to people with limited or no access to electricity. CONTRIBUTED PHOTO

By Bernadette D. Nicolas

@BNicolasBM

HE national government spent 20 percent more for its debt service from January to April this year compared to a year ago.

The Bureau of the Treasury reported that the government’s debt service bill reached P585.79 billion as of end-April, higher than last year’s P488.32 billion. Amortization also outpaced interest payments during the period. Broken down, amortization in the first four months of this

year jumped by 25.84 percent to P436.12 billion from P346.56 billion in 2020. Meanwhile, interest payments from January to April this year rose by 5.58 percent to P149.68 billion from P141.76 billion a year ago. Continued on A2

PESO exchange rates n US 47.7280

@caiordinario

USI NE SS g roups e xpressed support for the passage of the Freedom of Information (FOI) Act but recommended an addition to the list of exemptions and shorter information request response. In a joint position paper, business groups including the Makati Business Club (MBC) and 19 other organizations said commercial and proprietary information should be added to the list of exemptions. The groups also recommended that instead of 15 working days, responses to FOI requests should be shortened to five working days. This is consistent, they said, with the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

“We acknowledge the laudable aim of the bills of promoting and strengthening the people’s right to information by allowing citizens to request from the government information involving public interest or government transaction at any given time and subject to limitations,” the groups said. Based on the position paper, commercial and proprietary information covered patents, formulation, packaging of products, intellectual property, production, testing methods, and the like. Meanwhile, reducing the number of response days for FOI requests would help improve the country’s “competitiveness and ease of doing business in the Philippines, which can contribute to better business conditions and lead to economic development.” Continued on A2

Drilon rejects Cusi bid to curb NGCP powers By Butch Fernandez

@butchfBM

ENATE Minor it y Leader Frank Drilon on Sunday shot down a proposal floated by Energy Secretary Alfonso Cusi for the government to take back some of the key functions in the power sector and reduce those of the National Grid Corp or at ion of t he Ph i l ip p i ne s (NGCP) as a way of averting more disruptions. “I don’t agree. I’ve long been with government, and I know

DRILON: “I don’t agree. I’ve long been with government, and I know how inefficient government is.”

how inefficient government is,” Drilon said in a radio interview at the weekend. The Minority Leader’s reaction was sought on the advocacy pitched by Secretary Cusi at last week ’s Senate Energy Committee hearing, for the State to take back some of the prerogatives of the NGCP, one of the energy players Cusi blamed for t he u nsc hedu led power outages in Luzon on May 31 till June 2. NGCP President A nt hony A lmeda had complained to

sen ators t h at t he y were be ing “ bullied ” by reg ulators for problems in the power sector that are beyond their control. See related story in Companies, B1. Officials of NGCP stressed that as they are just in charge of power tra nsmission, t hey have no control over generation companies (Gencos) that do not live up to their commitments to provide power and to adhere to strict schedules for maintenance shutdowns.

n japan 0.4365 n UK 67.6640 n HK 6.1506 n CHINA 7.4659 n singapore 36.0592 n australia 37.0035 n EU 58.1088 n SAUDI arabia 12.7275

Continued on A2

Source: BSP (June 11, 2021)

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A2 Monday, June 14, 2021

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Like a seed: Pondo ng Pinoy funds for poor now ₧450M

Try on that bathing suit, Lola, for vacation with favorite ‘apo’

By Samuel P. Medenilla

@sam_medenilla

HE funding for the Archdiocese of Manila’s antipoverty movement Pondo ng Pinoy (PnP) has now reached P450 million, a ranking Catholic Church official reported on Sunday.

Manila Apostolic Administrator Bishop Broderick Pabillo said in his homily they have been using the donated amounts to provide feeding programs, provide scholarships, and medicine and aid to the poor since 2004. “This year the Pondo ng Pinoy

is now on its 17th year. Through the donation of 25 centavos daily from the young and street people, it was able to gather P450 million,” Pabillo said. This was about P22 million higher than the P427.29 million PnP funding last year.

“It has been silently gathering the amount for these programs, which have brought hope to many people,” Pabillo said. The phenomenal response to PnP in just its first three years had drawn the admiration of the Vatican. In an earlier editorial, BusinessMirror said the fund campaign, with help from the communities in Catholic schools, had been richly rewarded because of the trust people reposed in the “collectors” [schoolchildren, parents, volunteers] adding that if government men could only consistently prove they are trustworthy, then perhaps the task of collecting taxes would not be so hard. Pabillo made the statement to stress how the acts of God could start from “small and humble beginnings.” He noted this was how the com-

munity pantries started, from just a single community three months ago, but is now replicated in 6,000 communities nationwide. “How many have been fed in these few months by the community? They [organizer] do not make much noise, like the seed slowly grows. God is working,” Pabillo said, citing the parable of the mustard seed. Pabillo also reminded Filipinos on how they could start great social changes from small gestures such as voting the right candidates come the 2022 National and Local polls. “Let us start from small things. We may have no money, technology, highly qualified people and highly paid people, but the acts of God start from small efforts especially if we leave it to God,” Pabillo said.

BUSINESS GROUPS WANT COMMERCIAL INFO ON EXEMPTIONS TO FOI ACT

Continued from A1

The business groups offered other recommendations such as the creation of an independent appeals and review system. This means that an independent FOI Commission should be created to address appeals and review FOI requests.

The FOI Commission, the groups said, will have exclusive jurisdiction to resolve appeals at “a reasonable timeframe” and under simple rules of procedure. The groups said this will “avoid curtailing the right to information with burdensome processes.”

Further, the businessmen said the government must also adopt a mandatory government disclosure framework; prohibit the use of the information for illegal or malicious purposes or to violate fair competition; and adopt a records management system. A

disclosure framework, the groups said, means mandating government agencies and other bodies to guarantee the disclosure of public information. This requires that all public information be uploaded on their websites and bulletins in a timely manner such as quarterly to promote transparency. In terms of using information for illegal or malicious purposes, the FOI Act should not only penalize the denial of access to information but also its misuse, the businessmen said. “The law must also give legal basis for a cause of action for damages in favor of aggrieved persons. This would guarantee against any abuse of the exercise of this right under the FOI Law,” the groups said. The businessmen also recommended that the government adopt a record management system to expedite the process of accessing information. Under this system, the groups said, the period for retention of documents and system of document classification shall be set by government agencies. Further, the proper preservation, retention and transfer of records shall be ensured, and that mismanagement which in any way would hamper access to information should be penalized. “ T he Business Communit y strongly supports the passage of the Freedom of Information Act. This proposed legislation has consistently been identified as a legislative priority by the Philippine Business Groups-Joint Foreign Chambers (PBG-JFC),” the paper stated. The foreign chambers that signed the joint position paper include the American Chamber of Commerce of the Philippines Inc.; the ANZCham Philippines; CanCham Philippines; and Dutch Chamber of Commerce in the Philippines, among others. Apart from MBC, the business organizations who signed the paper include the Financial Executives Institute of the Philippines; Integrity Initiative; Management Association of the Philippines; Philippine B u s i ne s s for Education; and Semiconductor and Electronics Industries in the Philippines Foundation Inc.

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

ENIOR citizens residing in the National Capital Region and four surrounding provinces (NCR-Plus), along with other areas under general community quarantine (GCQ), may now go on vacations with their families to leisure destinations in modified GCQ areas. In a Viber message, Tourism Secretary Bernadette Romulo Puyat said, “There are no age restrictions [for tourists], especially in MGCQ areas like Boracay Island. But of course, it depends on the LGU [local government unit] if it wants [to impose the age restriction].” She made this clarification following recent pronouncements by the spokesman of the National

Task Force Against Covid-19, Gen. Restituto Padilla, that senior citizens, even if fully vaccinated, were not allowed to travel to leisure destinations like Boracay, since the Inter-Agency Task Force on the Management of Emerging Infectious Diseases (IATF) has prohibited “interzonal movements.” On a radio program, he stressed, “This is the latest decision” by the IATF. However, IATF Resolution No. 120, clearly states, “The movement of fully vaccinated senior citizens in areas under [GCQ] and [MGCQ] shall be allowed, subject to the presentation of a duly issued Covid-19 vaccination card. Provided that no interzonal travel shall be allowed other than point-to-point travel under IATF Resolution No. 118-A s. 2021.” (Emphasis ours) Continued on A5

GOVT DEBT SERVICE UP 20% FROM JAN TO APRIL

Continued from A1

Amortization refers to the repayment of loan principal over time, while interest payment refers to a payment determined by the interest rate of an account. For April alone, total debt payments plunged by 56.66 percent to P64.29 billion from P148.34 billion in the same month last year. This was mainly because of the 68-percent drop in amortization to P40.47 billion from P126.46 billion in April 2020. On the other hand, interest payments in April this year went up by 8.86 percent to P23.82 billion from last year’s P21.88 billion. This year, the government sees its debt service expenditures reaching P1.79 trillion. Last year, the government’s debt payments reached a new record

high of P962.47 billion as it needed to keep up with more financial obligations to fund its war chest against the Covid-19 pandemic. The national government’s total outstanding debt continued to swell to a fresh record high of P10.991 trillion in April this year as the country resorts to more borrowings, again, for its pandemic response. This was up by 2 percent from P10.77 trillion reported at the end of the year’s first quarter, and it was also a 27.8-percent jump from P8.6 trillion of endApril last year. The national government has set a P3.03-trillion gross borrowing program this year, roughly the same amount it borrowed in 2020.

Drilon rejects Cusi bid to curb NGCP powers

Continued from A1 Cusi wanted legislation to be crafted to amend NGCP’s franchise so it could take back the responsibility to prepare the Transmission Development Plan (TDP) and remove the delegation of the governmental power to expropriate. The NGCP took over the management and operation of the power grid since 2009, but TransCo still owns the assets. In dismissing Cusi’s proposal— among several options— to reduce the powers of NGCP and transfer these to the government, Drilon said, State players “often have no sense of accountability to the people.” To avert more power outages in the future, Cusi on Thursday had asked lawmakers to allow his office to engage in power generation, grant authority to sanction violators, consider the use of nuclear energy and amend the franchise of the NGCP. Cusi told the Senate Committee on Energy to help the Department of Energy (DOE) in allowing government to be involved in power generation business, albeit “limited” so as not to compete with power generation companies (gencos). “It’s meant to augment energy supply when needed,” Cusi said. Senate Minority Leader said in a radio interview on Sunday, however, that what the situation simply requires is “closer supervision by the DOE.” For instance, Drilon asked, “there is a shortage of supply, but t he problem d id not l ie

with distribution. W hy is there supply shortage?” Drilon added: “As of now, we have data on how much will be needed five years from now,” adding: “Why not do something to encourage the private sector to put up generation units or power plants?” The Senate Energy panel chief, Sen. Sherwin Gatchalian, had repeatedly blamed red tape for stifling investor interest in setting up more power plants. At one point in last week ’s hearing, Cusi was blaming NGCP for the delays in completing infrastructure to allow for excess power in Visayas and Mindanao to be brought to Luzon. Drilon suggested they should stop finger-pointing and just find a way to solve the supply problem. “No more blame games. Let us find a way. To me, the solution is first, find out why the supply is short. Just one plant conking out and it inflicts grave effects on our economy. Where did the DOE fall short?” The Senate Minority Leader said he does not agree with suggestions to “return and let government run the power industry.” Drilon added, “To me, the system today needs to be fixed on how to ensure there will be enough reserve power supply. So that when a power plant breaks down, there is still enough supply.” Government should study “what incentives [can be offered] that will attract the private sector to put up new power plants.” He, however, warned that “after five years, without forward planning it would be more difficult for us.”

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A4 Monday, June 14, 2021 • Editor: Vittorio V. Vitug

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Assimilate informal workers to solve waste issues–PIDS By Cai U. Ordinario @caiordinario

NSTITUTIONALIZING the informal sector in waste management in cities and municipalities may lead to better management of solid waste as well as solve some issues related to poverty, a study by the government think-tank Philippine Institute for Development Studies (PIDS) revealed. The study by PIDS Senior Research Fellow Sonny N. Domingo and Research Analyst II Arvie Joy A. Manejar noted that junk shops serving as pseudo-Material Recovery Facilities (MRFs) and scavengers were instrumental in bridging the gaps in recyclables and market exchange. “Institutionalization of the informal economy has to be looked at as well and that strengthening of horizontal and vertical linkages, from collection hubs to linking with markets and industries,” Domingo said in a presentation of the findings of their study titled “An Analysis of Regulatory Policies on Solid Waste Management in the Philippines: Ways Forward.” “Formalization of informal work-

ers and settlers, looking at their welfare and then the eventual industry linkage for income generation activities (is needed), making the scheme sustainable,” he added. Based on data obtained by the researchers from organizations such as the Japan International Cooperation Agency (JICA), disposal site scavengers collected an average of 14.36 kilograms per capita per day of paper waste in Metro Manila, Metro Cebu, and Southern Mindanao. These informal workers also collected 1.45 kilograms per capita per day of aluminum waste nationwide; 12.28 kilograms per capita per day of other metal wastes; 16.6 kilograms per capita per day of plastic waste; and 19.97 kilograms per capita per day of glass waste. For street collectors, they collected an average of 3.11 kilograms per capita per day of paper waste; 0.5 kilograms per capita per day of aluminum waste; 7.06 kilograms per capita per day of other metals; 3.02 kilograms per capita per day of plastic wastes; and 2.69 kilograms per capita per day of glass waste. “Across all materials, it was evident that disposal site scavengers perform much of the collection tasks,

albeit informally in most cases. Protecting informal workers’ welfare may not only benefit the community, but it could also contribute to the operational viability of local SWM [solid waste management] programs,” the authors said in the study. As cities and municipalities move toward the formalization of its local waste management operations, the researchers said scavengers and dumpsite dwellers should not be displaced. Efforts to provide them with alternative housing and livelihood opportunities must be explored and that “the bounty of youth and manpower must be capitalized on to make waste management operations sustainable.” Meanwhile, the researchers also found that the Ecological Solid Waste Management Act (2001) or Republic Act 9003 was not fully cascaded given the weak regulatory governance and the current limited sub-national resource and infrastructure. They added that communities and barangays must be empowered to encourage better solid waste management practices by facilitating behavioral change locally when it comes to garbage disposal.

Further, the researchers recommended a need to revisit local government reliance on policy grounding since the autonomy granted to LGUs was “not working.” The government also needs to invest in infrastructure such as on “state-of-the-art” SWM facilities and sanitary landfill post-closure maintenance and operation, which should eventually be included in the Build, Build, Build. Efforts to address medical waste are also paramount. The researchers noted that due to the surge in Covid-19 cases, the country may have also experienced a spike in hazardous wastes. The researchers found that the San Lazaro Hospital in Manila City released between March and June approximately 29,473 kilograms of healthcare waste. These included but are not limited to “personal protective equipment, dressings, swabs, blood bags, urine bags, sputum cups, syringes, test tubes, and histopathological waste.” Domingo and Manejar said these figures were expected to increase in the succeeding months given the continued increase in the number of Covid-19 cases.

Lacson: Stop hate crimes with more police presence

EN. Panfilo M. Lacson on Sunday backed calls for increased police presence to prevent further incidents of anti-Asian hate in the United States, following the latest incident where a Filipina consular officer was verbally assaulted in New York. Lacson supported Consul General Elmer Cato’s calls for increased police presence especially in the subways; and for Filipinos to report hate crimes to the Consulate or via 911 if they witness or become victims themselves of such crimes. “Based on accounts initially cited by Consul General to New York Elmer

Cato, there have been at least 14 hate incidents involving members of the Filipino community so far this year, counting the latest incident. This is disturbing and has to stop,” said Lacson, who chairs the Committee on Foreign Affairs in the Commission on Appointments. When Lacson headed the Philippine National Police from 1999 to 2001, he ordered an increase in police visibility, particularly foot patrols— an action that helped decrease criminality, mainly due to the deterrent effect on criminals. “Hate crimes and racism have no place anywhere. As Consul General

Cato pointed out, the Filipino community can be part of the solution by reporting such incidents to the authorities for prompt action. This solution should be adopted by all Filipino communities abroad, not just in the US,” Lacson pointed out. Cato said the latest hate incident involved a colleague at the Philippine Consulate General in New York, who was verbally assaulted while aboard the B train on her way to the Consulate. The incident was reported to city police. “The unlucky Filipina diplomat must have encountered a reincarnated barbaric tyrant in that train,”

Lacson said of the latest incident on his Twitter account <https:// twitter.com/iampinglacson/status/1403881093497987076>. But Cato also said a few days earlier, a member of the Filipino community was assaulted and injured in a subway platform in New York City. A few months back, another Filipino got his face slashed in another hatecrime incident in the subway. “Consul General Cato must urge the New York police to leave no stone unturned to identify and charge the person or persons responsible. There must be closed-circuit television footage available somewhere,” Lacson added.

Group backs registration of 500,000 eligible voters By Roderick L. Abad @rodrik_28 Contributor

HE Junior Chamber International (JCI) Philippines officially launched its “#AmbagKo. Rehistro. Boto.” campaign targeting at least a fifth or half-amillion of still unregistered eligible voters to enlist and vote in the upcoming 2022 national polls. Based on latest data from the Commission on Elections (Comelec), there are 3.48 million voter registration applications filed between January 2020 and May 15, 2021. Of these, 1.5 million are new registrants; still short of the 4-million target by the Comelec. “We know that as of today there are still 2.5 million registrants; that’s short of target of the Comelec. What JCI would like to achieve is to contribute to the number of registrants to close the gap of 2.5 million. So if we could at least have more of like at least maybe 20 percent [or 500,000 registered new voters] contribution that would be very good,” Charie G. Ilon, former JCI Regatta local president, told reporters during the initiative’s virtual kickoff last Friday. Given the turnout of voters’ registration to date, the campaign targets the Millennials and Gen Zs, or those aged 18 to 35 years old numbering 40 million or 37 percent of the entire electorate eligible to vote next year that, according to the Philippine Statistics Authority and the Comelec, are pivotal in shaping the country’s future. “With the number alone, our generation of young voters [has] a strong role to play in choosing the right leaders that our nation needs. This responsibility that’s pressed upon the shoulder of our youth is something that JCI Philippines strongly believes in,” JCI Philippines National President Jude Acidre said. “And as an organization of young leaders, we would like to use to harness our strength and influence to call on and encourage our fellow young Filipinos to register and to vote.” To help boost the number of reg-

istrants, the “#AmbagKo. Rehistro. Boto.” campaign leverages on fun and informative content and activities, including a gamification and reward system. Filipinos who wish to participate their actions, such as registering to vote, spreading the news about #AmbagKo or sharing their photos using the hashtag can all be rewarded with exclusive vouchers that they can exchange for rewards from the campaign’s sponsors. They just need to register on JCI’s website and send the entries to automatically gain points and rewards. The campaign will run in two phases. The first is “Rehistro,” or register, which will roll out from June 2021 to October 2021, with focus on registration, providing information and guidance on how to enlist for next year’s polls. The “Boto,” or vote, from November 2021 to April 2022, will highlight how voting is one of the best ways to let the peoples’ voice be heard, stand up for what they believe in, and hope for the country; and, at the same time, provide information on the voting process and other useful guidelines. As a digital drive, it will combine influencer engagement and social media to reach more Filipinos, even onboarding local indie band Munimuni to write and perform the theme song “Ambag Ko.” “While the campaign will mostly be done online, JCI Philippines will do our best to engage with Filipino youth and every eligible voter wherever they are. We are mobilizing all JCI local organizations around the country to support the goals of the campaign and spread the word as much as they can in all their connections, with all the networks, with all the friends that we have as a unified organization,” Acidre stressed. Voter registration for the May 2022 elections started in September 1 last year and will run until September 30, 2021. Qualified voters may register from Tuesdays to Saturdays, 8 a.m. to 3 p.m. in Comelec offices. Registrants should accomplish their application form and set an appointment online through the Comelec web site.

DHSUD, DAR to construct houses for agrarian reform beneficiaries of 19 LGUs

HE national government will be constructing houses for farmers in various cities and municipalities across the country, according to the Department of Human Settlements and Urban Development (DHSUD). The DHSUD recently signed a Memorandum of Understanding (MOU) with the Department of Agrarian Reform (DAR) and 19 local government units (LGUs) to build houses for farmers under the BALAI Agrarian Reform Beneficiaries (ARBs)/Farmers Housing Program. DHSUD Secretary Eduardo D. del Rosario said the agency’s partnership with DAR is part of its mandate in capacitating the underprivileged, in this case the farmers.

“It is part of our responsibility to help informal settler families, especially the poorest of the poor, and capacitate them together with our key shelter agencies for them to be able to have a house of their own,” del Rosario was quoted in a statement as saying. The MOU also aims to uplift farmers’ morale and strengthen their emotional attachments to their farms. This could strengthen the country’s agriculture sector, the DHSUD said. Under the agreement, the LGUs are responsible for securing a property for the housing scheme. Land development will be shouldered by the DHSUD through the utilization of the balanced housing compliance.

The housing construction will be implemented in coordination with DHSUD key shelter agencies such as the Pag-Ibig Fund, the Social Housing Finance Corp. and the National Home Mortgage Finance Corp. A total of 19 LGUs that previously met requirements will benefit from the MOUs signed in celebration of the 33rd anniversary of the Comprehensive Agrarian Reform Program. DAR Secretary John R. Castriciones considered the signing of the MOU a “monumental” undertaking especially for the farmers who have been considered among the poorest in the country. Data from the Philippine Statistics Authority showed that between 2006 and 2015, fishermen and farm-

It is part of our responsibility to help informal settler families, especially the poorest of the poor, and capacitate them together with our key shelter agencies for them to be able to have a house of their own.

DHSUD Secretary Eduardo D. del Rosario ers were consistently tagged as the poorest sectors of the society with a 34 percent poverty incidence rate. “This is a milestone. I hope we would be able to sustain this. I hope

that in God’s grace, we will achieve our vision of uplifting the economic lives of our farmers. We must work hand in hand because in unity, there is strength,” the DAR chief said.

“This is a convergent effort. We need the cooperation of LGUs and other government agencies.” Bani, Pangasinan Mayor Gwen P. Yamamoto said the farmers deserve all the help that could be afforded to them for playing a vital role—which is to provide food on the table to every Filipino household—at the height of the pandemic. “Our farmers, the agrarian reform beneficiaries, in fact, are the ones who helped us overcome the hardship brought about by the pandemic by providing us food at a time when there was nothing left in the market,” Yamamoto said. The LGU of Bani is one of the signatories to the program. Cai U. Ordinario and Jonathan L. Mayuga

Senators keen to grill DOH on ₧82.5-B vaccines fund By Butch Fernandez

@butchfBM

UTERTE administration officials face grilling at the upcoming Senate inquiry set Tuesday as probers dig into the Department of Health’s P82.5-billion fund that Congress allocated for the government’s anti-Coronavirus (Covid) vaccine supply to contain the deadly contagion. In a radio interview over the weekend, Senate Minority Leader Frank M. Drilon indicated he has lined up probing queries on funding details’ disbursements to verify if additional allocation is needed to ensure enough vaccine supply to protect people from the killer virus. “We have many questions to ask but we need transparency,” Drilon said, reminding that it involves a big amount

of public fund. “Hindi maliit na pera ang kailangan natin. Ilan ba talaga ang kailangang bakuna? Ilan ang dumating? Ilan ang nabakunahan na? [This involves not a small amount. How many vaccines do we really need? How many arrived? How many have been vaccinated?]” Drilon recalled that lawmakers already set aside P82.5-billion to buy the Covid vaccines. “Do they need P25-billion more?” he asked quickly adding that “before that, the people need to be told how much was already spent? How was it used?” The Senator stressed the need for transparency in spending, reminding it involves public money that were in the form of loan. “Kailangan ang transparency sa paggasta. Pera ng taumbauyan ito. Inutang po ito.”

According to Drilon, the people, as well as the lawmakers, need to be clarified how the multibillion-allocation was disbursed. [“Kailangan maliwanagan ang taumbayan at ang Senado.”] “Sa ngayon, hindi maliwanag kung magkano na ang nagastos. Ilan ’yung na-donate at anong brand? [So far, it is unclear how much has been spent. How many were donated and what brands?]” Moreover, he affirmed that lawmakers are also keen to be updated on the multi-billion funding they approved for the drug supply purchase. “Marami tayong itatanong para magkaroon ng transparency. [We’re going to ask many questions to gain transparency.]” Drilon reminded the need for “full transparency and accounting” given the huge amount of people’s money involved.

“Ito ay kritikal para maging matagumpay ang vaccination program at magkaroon ng tiwala ang taumbayan na nasa tama ang paggastos ng pondo. [This is critical for the vaccination program to be successful and for the people to have confidence that the funds are being spent correctly.]” The Minority Leader maintained the need to “be careful in handling public funds especially since there elections are scheduled next year,” adding this was why he is calling for transparency. For instance, Drilon was keen to know how many are actually being targeted for inoculation, recalling earlier estimates ranging from 70 million to 90 million, adding this would be used as basis on how much funding is needed to arrive at the socalled “herd immunity.”

The Minority Leader added senators are also likely to ask which vaccine and under what brand have been purchased, how many were bought, at what prices and if the pricing were correct. “Importante ang presyo kasi marami na tayong nabili. Kailangan malaman ng taumbayan kung magkano ang presyo nito at kung tama ba. [The price is important because we have already bought a lot. The people need to know how much it costs and if it is right.]” He said all these need to be clarified. “Suriin natin. Tama ang sinabing allocation ay P82.5-billion. Ang P70-billion ay nasa unprogrammed fund. Maliban doon, mayroong programmed sa DOH at Bayanihan 2 kaya ang total ay P82.5 billion. Maliban dito may hinihingi na P25 billion.”

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Editor: Jennifer A. Ng • Monday, June 14, 2021 A5

PHL rice inventory hits 4-month high in April

By Jasper Emmanuel Y. Arcalas

@jearcalas

HE country’s rice inventory as of April 1 rose to a four-month high of 2.444 million metric tons (MMT), based on the latest data from the Philippine Statistics Authority (PSA).

In its monthly report, the PSA said the April 1 rice inventory was 3.2 percent or 77,000 MT higher than the 2.367 MMT recorded a year ago. “Month-on-month, rice stocks inventory also increased by 17.5 percent from its previous month’s level of 2.080 [million] metric tons [MT],” the PSA said in its report released recently. Historical PSA data showed that this is the largest rice inventory in four months since December, when it reached 2.766 MMT. The PSA said more than half or 59.9 percent of the total rice inventory as of April 1 was stored in households while commercial warehouses/ wholesalers/retailers accounted for 30.2 percent. The remaining 9.9 percent were stored in National Food

Authority (NFA) warehouses. Rice stocks in households grew by 17.9 percent to 1.464 MMT from last year’s 1.243 MMT while rice inventory in commercial warehouses/ wholesalers/retailers expanded by 4 percent to 738,160 MT from 709,550 MT. However, PSA data showed that rice stored in NFA warehouses declined by nearly 42 percent to 241,170 MT from last year’s 415,310 MT. “Rice stocks in the households and in the commercial warehouses/ wholesalers/retailers went up by 19.1 percent and 26.3 percent, respectively from their levels in the previous month. Meanwhile, rice stocks in NFA depositories dropped by -9.1 percent,” the PSA said. In the same report, the PSA said

A FARMER in Pangasinan displays threshed rice in this BusinessMirror file photo.

the country’s nationwide corn stock inventory as of April 1 declined by 3 percent to 713,680 MT from last

year’s 736,070 MT. “Compared with its level a month ago of 461,210 MT,

corn stocks climbed by 54.7 percent.” The PSA said about 36.2 percent of the corn inventory were from households while the bulk or about 63.8 percent were held by commercial warehouses/wholesalers/retailers. Corn inventory in households reached 258,170 MT while those in commercial entities were estimated at 455,510 MT. “Relative to the previous year’s level, corn stocks in the households went up by 51.2 percent. However, stocks in the commercial warehouses/ wholesalers/retailers dropped by -19.4 percent,” it said. “Month-on-month, stocks in households and in commercial warehouses/wholesalers/retailers grew by 28.3 percent and 75.2 percent, respectively.” The Philippines’s paddy rice output in the first quarter expanded by 8.57 percent year-on-year to a record 4.626 MMT. The figure surpassed the first quarter palay harvest record of 4.622 MMT in 2018 despite a 3.52-percent contraction in area harvested. For this year, the Department of Agriculture (DA) is targeting to increase unmilled rice output by 1 MMT to 20.4 MMT. The DA said this would allow the Philippines to achieve a 95-percent rice self-sufficiency level.

NIA inks deal with CT Rice exporters from India, Pakistan need Citimotors for acquisition to work on market linkages in PHL—report of ₧155.3-M equipment

ON-ASEAN exporters, such as India and Pakistan, would need to increase consumer awareness and build business relationships in the Philippines if they want to capitalize on Manila’s decision to lower rice tariffs. In its monthly global grain report, the United States Department of Agriculture (USDA) said the Philippines’s lowering of rice tariffs would only benefit countries like India and Pakistan because they offer “more competitive” prices. Last month the Philippines lowered its most favored nation (MFN) rates for rice imports to 35 percent from 40 percent for shipments within the minimum access volume (MAV) and 50 percent for those outside of MAV. This equalized the tariff rates slapped on shipments from Asean and non-Asean rice exporters. The move was meant to diversify the Philippines’s rice import sources amid the increase in the prices of

rice from neighboring Asean countries and threats of climate change to domestic production, government officials said. “The new policy on MFN tariffs is likely to have less impact on Western Hemisphere suppliers than other non-Asean exporters in Asia. Exports from the Western Hemisphere are expected to remain limited, as combined price, tariff, and transportation costs are higher than Philippines domestic prices,” the USDA report read. “Non-Asean countries, including India and Pakistan, have more competitive prices and the reduced tariffs would result in lower landed prices.” Taking advantage of lower tariffs would mean addressing “necessary market challenges,” such as consumer awareness and network connections, for Indian and Pakistan exporters, according to the USDA. “However, these non-Asean Asian countries would need to increase

consumer awareness and build business relationships in order to make significant gains in market share in the Philippines.” Despite India having the greatest potential to expand market share in the Philippines, the USDA said Vietnam would remain as the major rice supplier of the country. Given the tariff reductions, the USDA hiked its total rice import forecast for the Philippines this year to 2.1 million metric tons (MMT) from an earlier estimate of 2 MMT. The latest estimate of the USDA is 14.28 percent lower than the 2.45 MMT of rice imported by the Philippines last year. For this year, the USDA projected that the Philippines would remain as the second-largest rice importer for the second consecutive year. China would also remain as the world’s top importer of the staple for 2021. The USDA also forecast that the Philippines would still be the second-largest buyer of imported

rice next year. “The Philippines is expected to be the second-largest importer in 2021, and recently announced a change to its import tariffs that has the potential to shift its suppliers.” The BusinessMirror earlier reported that the country’s rice imports from January to May declined by 11.8 percent to 1.026 MMT from 1.163 MMT last year. Bureau of Plant Industry (BPI) data obtained and analyzed by the BusinessMirror showed that the volume of rice imports during the 5-month period was 137,141.602 MT lower than the previous year’s volume. Vietnam remained as the country’s top import source as it accounted for 91 percent of the total volume. However, rice imports from Vietnam during the January-to-May period declined by 3.2 percent to 937,309.55 MT from 968,329.885 MT recorded a year ago. Jasper Emmanuel Y. Arcalas

HE Nat ion a l Ir r igat ion Administration (NIA) announced that it signed an agreement with CT Citimotors Inc. for the acquisition of 95 units of light/transport and heavy equipment worth P155.31 million. NIA Administrator Ricardo R. Visaya said the equipment will be used to monitor and evaluate the status of the agency’s ongoing construction and operations and maintenance activities. The NIA said the deal was signed by Visaya and CT Citimotors Assistant Vice President Rodrigo G. Almendral last June 10 at the agency’s headquarters in Quezon City. “The purchase of light/transport and heavy equipment is part of the third tranche of the Agency’s threeyear re-fleeting program from CY [calendar year] 2017 to CY 2019,” NIA said in a statement.

For CY 2017, NIA purchased 34 units of light/transport vehicles and 17 units of heavy equipment. For CY 2018, NIA acquired 91 units of light/transport vehicles and 18 units of heavy equipment. Meanwhile, five units of heavy equipment and 91 units of light/transport vehicles were set for procurement in 2019. As of December 31, 2020, NIA said it maintained in operating condition 3,201 units of heavy, light/transport, other support, and special equipment in support to the operations and maintenance of irrigation systems nationwide. NIA said 622 units of equipment are non-operable or needing repair while 1,382 units of equipment are recommended for disposal. “Thus, the three-year re-fleeting program is expected to make NIA operations more efficient and reliable.”

Lumber prices post biggest-ever weekly drop with buyers balking

UMBER futures posted their biggest-ever weekly loss, extending a tumble from all-time highs reached last month as sawmills ramp up output and buyers hold off on purchases. Prices in Chicago fell 18 percent this week, the biggest decline for most-active futures in records going back to 1986. Lumber has now dropped almost 40 percent from the record high reached on May 10. Sawmills appear to be catching up with the rampant homebuilding demand in North America that fueled a months-long rally, bringing some

relief to a market beset by supply shortages and price surges. Buyers are balking at still historically elevated prices and awaiting additional supplies, setting off a cascading selloff, analysts said. “Activity yesterday was brisk to start, turned lethargic and ended quite subdued,” William Giguere, who buys and sells eastern spruce with mills for Sherwood Lumber in Massachusetts, said in a note Friday. “There was plenty of lumber available from the mills and enough ambition to sell. Missing was the sense of urgency from buyers.”

Many buyers only purchased if necessary, generally staying on the sidelines, CIBC analyst Hamir Patel said Friday, citing an assessment from Random Lengths. The closely watched trade publication reported further declines in several wood products that trade on the cash market, and pointed to an abundance of mill offerings, Patel said. United States lumber production has responded to the price rally by ramping up output by 5 percent over the past 12 months with another expected increase of 5 percent, or roughly 1 billion board feet, accord-

ing to Domain Timber Advisors LLC, a subsidiary of Domain Capital Group, in Atlanta, Georgia. Resolute Forest Products Inc. is spending $50 million to increase its lumber production, the company said Thursday. West Fraser Timber Co., the world’s biggest producer, said recently that it’s expanding capacity at five US mills, while rival Canfor Corp. has said it will invest around $160 million in a new sawmill in Louisiana.

Above-trend

STILL, while lumber prices may fi-

nally be pulling back from stratospheric highs, don’t look for a return to pre-pandemic levels any time soon, according to BMO Capital Markets. “‘Nosebleed’ prices won’t last, but strong demand, a limited supply response and a rising cost curve all point to above-trend prices for at least the next 12-24 months,” BMO analyst Mark Wilde said in a note. Lumber futures slid 5.6 percent in Chicago to $1,059.20 per 1,000 board feet on Friday. Prior to the rally that started in mid-2020,

lumber futures traded mostly within the range of $200 to $600 since 1992. With strong US home building expected to last for several years, lumber prices will likely remain above $500 per 1,000 board feet for the next five to eight years, said Scott Reaves, forest operations director at Domain Timber. “We’re at a new normal,” Reaves said in a phone interview. “We’re going to see this sustained level of housing demand and a new normal for a pricing floor in lumber.” Bloomberg News

“Our historical sites and museums in the NCR-Plus area may welcome visitors following the easing of quarantine restrictions. This is part of our efforts to restart tourism and leisure activities in a safe and steady manner, and to help bring back employment. Visitors are still urged to follow the minimum health and safety standards set for historical sites and museums to prevent a possible Covid-19 outbreak,” said Romulo Puyat

in a news statement. She added, “The historical sites and museums remind us of our rich culture and history and of the heroism of those who fought for our freedom.’’ She issued the statement as Filipinos commemorated Independence Day on June 12. “Revisiting our past brings us closer together as a people and draws us closer to a future free of the perils and uncertainty brought about by the pandemic.”

Try on that bathing suit, Lola, for vacation with favorite ‘apo’ continued from a2 Point-to-point travel means, while pit stops or stopovers are allowed for eating and personal necessities, no side trips shall be made to other tourism destinations. “So if you’re traveling from Manila to Baguio, for instance, you can stop on the way for a bite to eat, but you cannot stop and explore Pampanga, or go around Tarlac. It has to be direct, Manila to Baguio,” explained Romulo Puyat.

Point-to-point travel also applies to direct flights from say, Manila to Boracay (Caticlan), Manila to Panglao Island (Tagbilaran), among others. However, tourists still need to take an RT-PCR test and present a negative result for Covid-19, 72 hours prior to flying into the destination. “Filipinos like to travel as a family,” stressed the DOT chief. “So [pity] the grandparents [if they] are not [included], or the kids,” she said in

an earlier press conference. This is the second time Padilla made an erroneous announcement regarding age restrictions and leisure travel, citing an IATF decision. Before Holy Week, he said minors could not travel to leisure destinations, when actually they were allowed to travel with their families. Romulo Puyat took him to task for this, for which he later apologized. (See, “Task force okays saliva test

for Boracay tourists,” in the BusinessMirror, March 19, 2021.)

Guided tours still prohibited

THE IATF, last Thursday, also approved the reopening of historical sites and museums in NCR-Plus, which includes Metro Manila, Bulacan, Rizal, Cavite, and Laguna. These sites and facilities, however, are only allowed to operate at 20 percent of venue capacity. Guided tours remain prohibited.

The World BusinessMirror

Monday, June 14, 2021

Editor: Angel R. Calso

As UK summit ends, G-7 urged to deliver on vaccines, climate C

Biden asks G-7 leaders to call out and compete with China

Leaders of the G-7 pose for a group photo at the Carbis Bay Hotel in Carbis Bay, St. Ives, Cornwall, England on Friday, June 11, 2021. Leaders from left, Canadian Prime Minister Justin Trudeau, European Council President Charles Michel, US President Joe Biden, Japan's Prime Minister Yoshihide Suga, British Prime Minister Boris Johnson, Italy's Prime Minister Mario Draghi, French President Emmanuel Macron, European Commission President Ursula von der Leyen and German Chancellor Angela Merkel. AP Photo/Patrick Semansky

ALMOUTH, England—The Group of Seven leaders aim to end their first summit in two years with a punchy set of promises Sunday, including vaccinating the world against coronavirus, making huge corporations pay their fair share of taxes and tackling climate change with a blend of technology and money.

They want to show that international cooperation is back after the upheavals caused both by the pandemic and the unpredictability of former US President Donald Trump. And they want to convey that the club of wealthy democracies—Canada, France, Germany, Italy, Japan, the United Kingdom and the United States—is a better friend to poorer nations than authoritarian rivals such as China. But it was uncertain how firm the group's commitments will be on coronavirus vaccines, the economy and the environment when the leaders issue their final communiqué. Also unclear was whether all of the leaders would back the United States' call to chastise China for repressing its Uyghur minority and other abuses. UK Prime Minister Boris Johnson, the summit's host, wanted the three-day meeting to fly the flag for a "Global Britain," his government's initiative to give the midsized country outsized influence when it comes to global problem-solving. Brexit cast a shadow over that goal during the summit on the coast of southwest England. European

Union leaders and US President Joe Biden voiced concerns about problems with new UK-EU trade rules that have heightened tensions in Northern Ireland. But overall, the mood has been positive: The leaders smiled for the cameras on the beach at clifffringed Carbis Bay, a village and resort that became a traffic-clogged fortress for the meeting. The last G-7 summit was in France in 2019. The pandemic scuttled the planned 2020 event in the United States. The leaders mingled with Queen Elizabeth II at a royal reception on their first evening, and were served steak and lobster at a beach barbecue on their second. America’s allies were visibly relieved to have the US back as an engaged international player after the “America First” policy of the Trump administration. "The United States is back, and democracies of the world are standing together," Biden said as he arrived in the UK on the first foreign trip of his 5-month-old presidency. After the G-7 summit, the president is to have tea with the queen on Sunday, attend a NATO summit in

Brussels on Monday and hold talks with Russian leader Vladimir Putin in Geneva on Wednesday. At the G-7, Johnson described Biden as a “breath of fresh air.” French President Emmanuel Macron, after speaking one-to-one with Biden, said, “It’s great to have a US president part of the club and very willing to cooperate.” The re-energized G-7 made ambitious declarations during their meetings about girls' education, preventing future pandemics and using the finance system to fund green growth. Above all, they vowed to share vaccine doses with less well-off nations that urgently need them. Johnson said the group would pledge at least 1 billion doses, with half that coming from the United States and 100 million from Britain. World Health Organization Director-General Tedros Adhanom Ghebreyesus commended the vaccine pledge but said it's not enough. To truly end the pandemic, he said, 11 billion doses are needed to vaccinate at least 70% of the world's population by the middle of next year. “We need more and we need them faster,” Tedros said. Public health advocates said much more than just doses was needed, including money and logistical help to get shots into the arms of people in poorer countries. “It’s not enough to just get vaccines flown into capitals,” said Lily Caprani, head of Covid-19 vaccines advocacy for UNICEF. "We can't let them potentially go to waste or be at risk or be at risk of not being delivered. So it's a real end-to-end solution that's needed." The leaders' final communiqué is expected to formally embrace placing a global minimum tax of at least 15% on large multinational compa-

nies to stop corporations from using tax havens to shift profits and to avoid taxes. The minimum rate was championed by the US, and dovetails with the aim of Biden—and Johnson—to focus the summit on ways the democracies can collaborate to build a more inclusive and fair global economy and to compete with rising autocracies like China. Non-G-7 nations India, South Korea, Australia and South Africa were invited to attend as guests to bolster the group’s support for fellow democracies. The White House said the leaders had also agreed an infrastructure plan, the Build Back Better world plan, to help low and middle-income countries. The move is a response to China’s “belt and road” initiative, which has increased Beijing's influence in countries around the world. White House officials said Biden wants the G-7 leaders to speak in a single voice against the forced labor practices targeting China's Uyghur Muslims and other ethnic minorities. Biden hopes the denunciation will be part of a joint statement Sunday, but some European allies are reluctant to split so forcefully with Beijing. The summit was also supposed to focus on climate change and to set the stage for the UN climate conference being held in November in Scotland. Climate activists and analysts have said filling a $100 billion annual fund that is intended to help poor countries tackle the effects of global warming should be at the top of the G-7’s to-do list. Johnson's office said he met with UN Secretary General Antonio Guterres on Saturday and that the two agreed on the need for countries to step up and make ambitious commitments to cut carbon emissions and phase out the use of coal. But very little substance on the topic has so far emerged from the talks, to the frustration of environmental protesters who gathered nearby to make their message heard. Large crowds of surfers and kayakers took to the sea in a mass paddle protest Saturday to urge more action on protecting the oceans, while thousands chanted and beat drums as they marched outside the summit's media center in Falmouth. “G-7 is all greenwashing,” the protesters sang. "We're drowning in promises, now's the time to act." AP

Aid groups appeal to G-7 leaders for cash to get vaccines into arms

ALMOUTH, England — Rich nations must do more than just donate surplus vaccines if they hope to end the Covid-19 pandemic, according to public health experts and humanitarian groups that are calling for money, increased production and logistical support to help developing countries where the virus is still raging. The appeal came after UK Prime Minister Boris Johnson said he hoped leaders of the Group of Seven major industrialized nations will agree to provide at least 1 billion vaccine doses for poorer countries. The G-7 leaders, who are holding their annual meeting this weekend in Cornwall, southwest England, continue to debate other forms of aid to get lifesaving vaccine shots into arms. While almost half of the combined population of the G-7 nations has received at least one dose of vaccine the worldwide figure is less than 13%. In Africa, it's just 2.2%. Wea lt hy n at ion s mu st ac t quickly not just out of altruism, but to protect their own citizens,

because the virus will continue to mutate as long as it is allowed to spread unchecked, resulting in potentially more dangerous variants, said Lily Caprani, head of Covid-19 vaccines advocacy for UNICEF. “[This] requires political will and urgent action now,” Caprani told The Associated Press. “So I think all of us should be urging our leaders to do it, not just because it's the right thing to do, but it's the smart thing to do, and it's the only way out.” Johnson, who is hosting the G-7 summit, and US President Joe Biden opened the meeting by announcing that their countries would donate a total of 600 million vaccine doses over the next year. But International Monetary Fund economists recently estimated it would cost $50 billion to vaccinate 60% of the world's population by the middle of next year and that achieving that goal would generate $9 trillion in additional economic output by 2025. Those appealing for wealthier nations to do more to make vac-

cines available worldwide argue it would be a worthwhile investment in human capital. “If we do this, and everyone's saying it's the deal of the century, about 60% of those resources need to come from wealthy countries in the G-7,” said Robert Yates, director of the global health program at Chatham House, a London-based public policy think tank. Countries like the United States and Britain secured supplies of multiple Covid-19 vaccines while they were still in development, hoping to guarantee shipments of any successful candidates. That left them with enough doses to inoculate their entire populations two or three times over after regulators approved a number of shots. They are now under pressure to provide shots for low-income countries immediately and not wait until they have vaccinated younger age groups in their own countries. Cov id-19 poses the greatest risk to older people and those with underlying health conditions, who account for the vast

majority of those who have died from the disease. Ahead of the G-7 meeting, the IMF, the World Health Organization, the World Bank and the World Trade Organization said the group's top priority should be ending the pandemic and securing the global economic recovery. “The current approach to Covid-19 vaccination—using limited vaccine supplies to protect lowrisk populations in a handful of countries while low- and middleincome economies wait indefinitely for doses—doesn't make sense for anyone,” World Bank President David Malpass wrote last month. “A successful global vaccination effort must be equitable.” B ut v a c c i ne s a lone a re n' t enough to complete the task. Fragile health care systems in low-income countries need equipment, training and logistical support so they can mount the kind of turbocharged mass vaccination programs that have been successful in Europe and North America. AP

A R BIS BAY, Engl a nd— Leaders of the world’s largest economies unveiled an infrastructure plan Saturday for the developing world to compete with China's global initiatives, but they were searching for a consensus on how to forcefully to call out Beijing over human rights abuses. Citing China for its forced labor practices is part of President Joe Biden's campaign to persuade fellow democratic leaders to present a more unified front to compete economically with Beijing. But while they agreed to work toward competing against China, there was less unity on how adversarial a public position the group should take. Canada, the United Kingdom and France largely endorsed Biden's position, while Germany, Italy and the European Union showed more hesitancy during Saturday's first session of the Group of Seven summit, according to two senior Biden administration officials. The officials who briefed reporters were not authorized to publicly discuss the private meeting and spoke on condition of anonymity. The communiqué that summarizes the meeting's commitments was being written and the contents would not be clear until it was released when the summit ended Sunday. White House officials said late Saturday that they believed that China, in some form, could be called out for "nonmarket policies and human rights abuses." In his first summit as president, Biden made a point of carving out one-on-one-time with various leaders, bouncing from French president Emmanuel Macron to German chancellor Angela Merkel to Italian prime minister Mario Draghi as well as Japan's Yoshihide Suga and Australia's Scott Morrison, a day after meeting with British Prime Minister Boris Johnson as if to personally try to ward off memories of the chaos that his predecessor would often bring to these gatherings. Macron told Biden that collaboration was needed on a range of issues and told the American president that “it’s great to have a US president part of the club and very willing to cooperate.” Relations between the allies had become strained during the four years of Donald Trump’s presidency and his “America first” foreign policy. Merkel, for her part, downplayed differences on China and the Nord Stream 2 pipeline, which would transport natural gas from Russia to Germany, bypassing Ukraine. "The atmosphere is very cooperative, it is characterized by mutual interest," Merkel said. "There are very good, constructive and very vivid discussions in the sense that one wants to work together." White House officials have said Biden wants the leaders of the G-7 nations—the US, Britain, Canada, France, Germany, Japan and Italy— to speak in a single voice against forced labor practices targeting China's Uyghur Muslims and other ethnic minorities. Biden hopes the denunciation will be part of a joint statement to be released Sunday when the summit ends, but some European allies are reluctant to split so forcefully with Beijing. China had become one of the more compelling sublots of the wealthy nations' summit, their first since 2019. Last year's gathering was canceled because of Covid-19, and recovery from the pandemic is dominating this year's discussions, with leaders expected to commit to sharing at least 1 billion vaccine shots with struggling countries. The allies also took the first steps in presenting an infrastructure proposal called "Build Back Better for the World," a name echoing Biden's campaign slogan. The plan calls for spending hundreds of billions of dollars in collaboration with the private sector while adhering to climate standards and labor practices. It's designed to compete with China's trillion-dollar "Belt and

Road Initiative,” which has launched a network of projects and maritime lanes that snake around large portions of the world, primarily Asia and Africa. Critics say China's projects often create massive debt and expose nations to undue influence by Beijing. Britain also wants the world's democracies to become less reliant on the Asian economic giant. The UK government said Saturday’s discussions would tackle “how we can shape the global system to deliver for our people in support of our values,” including by diversifying supply chains that currently heavily depend on China. Not every European power has viewed China in as harsh a light as Biden, who has painted the rivalry with China as the defining competition for the 21st century. But there are some signs that Europe is willing to impose greater scrutiny. Before Biden took office in January, the European Commission announced it had come to terms with Beijing on a deal meant to provide Europe and China with greater access to each other's markets. The Biden administration had hoped to have consultations on the pact. But the deal has been put on hold, and the European Union in March announced sanctions targeting four Chinese officials involved with human rights abuses in Xinjiang. Beijing responded with penalties on several members of the European Parliament and other Europeans critical of the Chinese Communist Party. Biden administration officials see an opportunity to take concrete action to speak out against China's reliance on forced labor as an "affront to human dignity." While calling out China in the G-7 communiqué would not create any immediate penalties for Beijing, one senior administration official said the action would send a message that the leaders were serious about defending human rights and working together to eradicate the use of forced labor. An estimated 1 million people or more—most of them Uyghurs— have been confined in reeducation camps in China's western Xinjiang region in recent years, according to researchers. Chinese authorities have been accused of imposing forced labor, systematic forced birth control, torture and separating children from incarcerated parents. Beijing rejects allegations that it is committing crimes. Johnson, the summit host, also welcomed the leaders from "guest nations" South Korea, Australia and South Africa, as well as the head of the United Nations, to the summit to "intensify cooperation between the world's democratic and technologically advanced nations." The leaders planned to attend a barbecue Saturday night, complete with toasted marshmallows, hot buttered rum and a performance by a sea shanty troupe. India was also invited but its delegation is not attending in person because of the severe coronavirus outbreak in the country. Biden ends the trip Wednesday by meeting in Geneva with Russia's Vladimir Putin. The White House announced Saturday that they will not hold a joint news conference afterward, which removes the opportunity for comparisons to the availability that followed Trump and Putin's 2018 Helsinki summit, in which Trump sided with Moscow over his own intelligence agencies. Only Biden will address the news media after the meeting. Putin, in an interview with NBC News, said the US-Russia relationship had "deteriorated to its lowest point in recent years." He added that while Trump was a "talented" and "colorful" person, Biden was a "career man" in politics, which has "some advantages, some disadvantages, but there will not be any impulse-based movements" by the US president. AP

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www.businessmirror.com.ph

Monday, June 14, 2021

Israel to swear in government, ending Netanyahu’s long rule J ERUSALEM Israel is set to swear in a new government on Sunday that will send Prime Minister Benjamin Netanyahu into the opposition after a record 12 years in office and a political crisis that sparked four elections in two years. Naftali Bennett, the head of a small ultranationalist party, will take over as prime minister. But if he wants to keep the job, he will have to maintain an unwieldy coalition of parties from the political right, left and center. The eight parties, including a small Arab faction that is making history by sitting in the ruling coalition, are united in their opposition to Netanyahu and new elections but agree on little else. They are likely to pursue a modest agenda that seeks to reduce tensions with the Palestinians and maintain good relations

with the US without launching any major initiatives. Netanyahu, who is on trial for corruption, remains the head of the largest party in parliament and is expected to vigorously oppose the new government. If just one faction bolts, it could lose its majority and would be at risk of collapse, giving him an opening to return to power. The new government is promising a return to normalcy after a tumultuous two years that saw four elections, an 11-day Gaza war last month and a coronavirus outbreak that devastated the economy before it was largely brought under control by a successful vaccination campaign. The driving force behind the coalition is Yair Lapid, a political centrist who will become prime minister in two years, if the gov-

ernment lasts that long. Israel's parliament, known as the Knesset, will convene to vote on the new government at 4 p.m. (1300 GMT). It is expected to win a narrow majority of at least 61 votes in the 120-member assembly, after which it will be sworn in. The government plans to hold its first official meeting later this evening. It's unclear if Netanyahu will attend the ceremony or when he will move out of the official residence. He has lashed out at the new government in apocalyptic terms and accused Bennett of defrauding voters by running as a right-wing stalwart and then partnering with the left. Netanyahu's supporters have held angry protests outside the homes of rival lawmakers, who say they have received death threats

naming their family members. Israel's Shin Bet internal security service issued a rare public warning about the incitement earlier this month, saying it could lead to violence. Netanyahu has condemned the incitement while noting that he has also been a target. His place in Israeli history is secure, having served as prime minister for a total of 15 years — more than any other, including the country's founder, David Ben-Gurion. Netanyahu began his long rule by defying the Obama administration, refusing to freeze settlement construction as it tried unsuccessfully to revive the peace process. Relations with Israel's closest ally grew even rockier when Netanyahu vigorously campaigned against President Barack Obama's emerg-

ing nuclear deal with Iran, even denouncing it in an address to the US Congress. But he suffered few if any consequences from those clashes and was richly rewarded by the Trump administration, which recognized contested Jerusalem as Israel's capital, helped broker normalization agreements with four Arab states and withdrew the US from the Iran deal. Netanyahu has portrayed himself as a world-class statesman, boasting of his close ties with Trump and Russian President Vladimir Putin. He has also cultivated ties with Arab and African countries that long shunned Israel over its policies toward the Palestinians. But he has gotten a far chillier reception from the Biden administration and is widely seen as hav-

ing undermined the long tradition of bipartisan support for Israel in the United States. His reputation as a political magician has also faded at home, where he has become a deeply polarizing figure. Critics say he has long pursued a divide-and-conquer strategy that aggravated rifts in Israeli society between Jews and Arabs and between his close ultra-Orthodox allies and secular Jews. In November 2019, he was indicted for fraud, breach of trust and accepting bribes. He refused calls to step down, instead lashing out at the media, judiciary and law enforcement, going so far as to accuse his political opponents of orchestrating an attempted coup. Last year, protesters began holding weekly rallies across the country calling on him to resign. AP

Monday, June 14, 2021 • Editor: Angel R. Calso

Opinion BusinessMirror

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editorial

The ultimate oligarchy

he largest and most powerful international oligarchy met over the weekend. How large and powerful is this cabal? This consortium accounts for 58 percent of the global net wealth and almost 50 percent of the nominal global gross domestic product. They represent about 10 percent of the world’s population, but in the past that has been 80 percent. Fifty-six percent of global major weapons sales come from this oligarchy.

This group is virtually all Caucasian, European, and its activities are nearly unchecked by anything more than its own “self-regulation.” In March 1973, US Secretary of the Treasury George Shultz convened an informal gathering of finance ministers from West Germany, France, and the United Kingdom at the White House. In mid-1973, Shultz proposed the addition of Japan to the original four that agreed. The gathering of financial officials from the US, the UK, West Germany, Japan, and France became the “Group of Five.” In 1975, France hosted a summit now with the representatives of six governments: France, West Germany, Japan, the UK, the US, and the newly added Italy. US President Gerald Ford wanted an additional English-speaking head of state to be in attendance in 1976. Pierre Trudeau, the Prime Minister of Canada, was invited to join and the group became the Group of Seven. This past weekend, the heads of state of the G-7 met at a beach resort in Cornwall, UK. Invited guests—although definitely not part of the official leaders’ photograph—included Prime Ministers Scott Morrison of Australia, Narendra Modi of India, and Presidents Moon Jae-in of South Korea and Cyril Ramaphosa of South Africa. The agenda included a call for the G-7 to work on a global approach to ensure an equal distribution of Covid-19 vaccines. Negotiations over global corporate taxation were on, even as the US threatened tariffs on Europe in retaliation for their new digital sales tax. G-7 finance officials supported the need to regulate digital currencies. And climate change, of course. But the 800-pound panda at every conversation was China. “France’s Macron calls for agreement on financial aid to Africa,” as he would like the G-7 to sell its gold reserves to help finance aid for Africa. Canada’s Prime Minister Justin Trudeau will probably be on board since Canada does not have a single ounce of gold. They sold it all in 2016 and now has 18 percent less international reserves than the Philippines. “Biden urges G-7 leaders to create a unified front to counter China,” and to speak in a single voice against forced labor practices targeting China’s Uyghur Muslims. China spoke back: “On Thursday, Beijing passed a law designed to counter US and EU sanctions on Chinese officials and companies. Those involved in designing or implementing the sanctions could find themselves denied visas to China. Their property in China may be seized, and any commercial transaction they attempt with a Chinese institution can be blocked.” Finally, “G-7 rivals China with grand infrastructure plan. Known as the Build Back Better World [B3W] initiative, it provides a transparent infrastructure partnership” and digital technology and gender equity and equality. No details were mentioned how the plan would work or how much capital it would allocate. As of last year, more than 2,600 projects at a cost of $3.7 trillion were linked to China’s BRI. Maybe the G-7 is going to give its gold to Africa to pay off the loans Africa has taken from China and then the B3W initiative will build the infrastructure for free. Sounds like a win-win for everyone. Perhaps the G-7 could just send the Philippines a Manager’s Check. For the right price, we can self-identify as “African.” Since 2005

BusinessMirror A broader look at today’s business

Making the office safe again Atty. Jose Ferdinand M. Rojas II

RISING SUN

N many places around the world, offices are coming back to life one by one. It is gradual but some employers do want their teams, or at least a few of them, to report back and work from the office a few days a week. It may be the same in the Philippines, although some office workers here have been coming to work in the office for some time now. But for those who are reopening the workplace after a long time of non-use, there are things that the office administrator or office manager must do to ensure the workers’ safety. But first, a word on vaccines. Experts agree that vaccinated individuals have the option to keep wearing their masks for increased protection. Unvaccinated workers should be required to wear masks

Street Talk, 2022

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in the office and, if they are eligible, should get vaccinated as soon as possible. This should be our first step towards safety. Social distancing still works, especially in places where most people are not vaccinated and where local case rates are still high. Otherwise, experts suggest that it might be better to minimize the number of workers at any given time. Proper and regular handwashing remains to be one of the most effective ways to fight the spread of disease. And as far as cleaning surfaces

S 2022 draws near, we will again have a cacophony of voices promising us a better tomorrow. We cannot blame these candidates, as their promises of doing good once elected have always been the hallmark of our elections. Whether they fulfill these promises or not once elected is another matter. We can try to be different this time around. Why don’t we, for once, tell these candidates what we expect of them once elected, and give them a sort of our wish list? It can be general in nature or sectoral. For our purpose, let’s talk about transport. Admittedly, the Duterte administration’s Build, Build, Build program has accomplished much improvement; its infra accomplishment is definitely unprecedented. With this to begin with, let’s “build” on that, literally. What then is our wish list for our next president and legislators to consider in further addressing our transport concerns? 1. Evaluating the past transport programs: A thorough review of the transport related programs of the Duterte administration should be the beginning of the new transport leadership. Simply put: evaluate, continue the good ones, take out the bad ones, and fill the gaps. We have enough good programs. We just need to see it through. 2. Transport Equity: At the back of the minds of the new set of trans-

port leaders is the mantra of having transport for all, with the least in society being given more in terms of mobility. Transport policies then should be more equitable, within easy and affordable access for everyone. 3. Move to personal mobility: The recent rise of the bikes and other personal mobility devices needs to be sustained and strengthened. The new transport leaders should adopt the needed policies: more dedicated

To prepare the rooms for the workers, it is very important to clean the air, ventilation systems, and filters. Air out every room by opening windows for a long time to promote air circulation before allowing people to work inside. But even when workers have already occupied the space, it is still important to open the windows a few times a day to make sure there is enough fresh air coming in. and the physical office are concerned, soap and water are preferred over any chemical-based cleaners, which can be toxic. It is also important to check for mold growth and pest infestation before allowing people in. To prepare the rooms for the workers, it is very important to clean the air, ventilation systems, and filters. Air out every room by opening windows for a long time to promote air circulation before allowing people to work inside. But even when workers

Yes, we are just around the bend before 2022. Let us make sure that we are heard this time. Not just through the ballots but in terms of what we as the public need from our next set of leaders. This time around, let the people on the streets talk. Let it be Street Talk, 2022! lanes, safety measures, assistance and education. Personal mobility solves so many problems—congestion, pollution, affordability, and health, among others. 4. Defined and accessible bureaucracy: Define the directions and set that in motion with our bureaucracy. If it’s ease of doing business or anticorruption, then let that filter down to our district offices, not just in words. 5. Uplifting the dignity of transport workers and providing assistance—The pandemic has hit the transport sector really hard. The new transport dispensation needs to be more understanding of the sector’s plight more than ever. Continued assistance and possibly subsidy need to be included in all programs. 6. Make streets smart and accountable: The smart city programs embarked on before the pandemic need to be continued. Data driven solutions with less human interven-

have already occupied the space, it is still important to open the windows a few times a day to make sure there is enough fresh air coming in. Experts also recommend the use of high-quality air filters and air purifiers with HEPA filters to clean the air further. What they do not suggest are the air-cleaning devices—foggers, fumigators, ionizers, ozone generators, etc.—that introduce potentially toxic chemicals into the air to neutralize its harmful components, like coronavirus. Finally, the unused water pipes and the whole plumbing system must be checked for possible growth of harmful bacteria. Flushing may be helpful to get rid of most dangerous organisms. To do this, experts recommend letting faucets, showerheads, etc. run for 15 minutes to an hour before allowing people to use them. Inasmuch as we want to quickly go back to our old lives and some of our old ways of working, it makes more sense to prepare carefully to minimize risks. It may take more time and more expense, but it’s all worth the cost and time investment.

tion will equate to a more efficient and effective transport management. A forewarning—it would be best if a smart transport master plan be conducted so that time, resources and effort will not be wasted. 7. Cleaner air, safer roads: the drive for cleaner air and safer roads must remain as a priority of the incoming government. Modern public transport, electric vehicles with less GHG emissions, roadworthiness, consideration for the PWDs—the work for transport 2022 is definitely cut out. 8. Transport sense through education: Most of us still lack the needed knowledge to be out on the streets. Whether it be part of the school curriculum or required technical knowledge for those who will engage in transport, education, particularly road safety and commuter rights, must be given emphasis. 9. Pandemic-ready: Understandable that we were all, even the transport sector, caught unprepared when the pandemic hit us. But the next transport leadership must have a program for resiliency and continuity when the next pandemic or disaster comes. Such is not anymore an interim program but rather a standard one. 10. Connecting the country, the world—Mobility begins once we step out of our homes. What is needed is See “Orbos,” A9

Opinion BusinessMirror

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Musings on the amendments of the Accountancy Law Joel L. Tan-Torres

DEBIT CREDIT Fifth part of a series

hould the accountancy profession have an integrated and unified Accredited Profession Organization (APO)? This intent of the Professional Regulatory Board of Accountancy (BOA) is quite clear with its proposed revision of Section 30 of the Accountancy Act of 2004 (Republic Act 9298 or “Accountancy Act”). The present clause provides for an “Accredited Professional Organization where all registered certified public accountants who appear in the roster of certified public accountants [CPA] shall be united and integrated through their membership in a one and only registered and accredited national professional organization of registered and licensed certified public accountants.”

While the present law clearly enunciates for a “united and integrated” professional organization that all CPAs should be a member of, this was never implemented to the letter. The Philippine Institute of CPAs, the largest professional organization for CPAs, has never been able to gather a great number of CPAs to be its members. Various reasons have been cited for this failure, including the lack of implementing rules from the BOA to effectively implement the integrated organization provision of the law, lack of marketing or operational effort by PICPA, legal issues raised against PICPA, the “competition” from the various sectoral accountancy organizations, and others. Professional organizations, such as the Integrated Bar of the Philippines for lawyers, have managed to become the integrated and sole organization for all the licensed individuals in their profession. The proposed amendment suggests that all CPAs in the Philippines shall automatically become members of the integrated professional organization, without citing that PICPA shall be designated as such. I submit before PICPA, or any other organization, can claim to be the united and integrated organization or APO of CPAs, it should be able to justify such exclusive designation. Such organization should be able to present to BOA and all the accountancy stakeholders that it has the governance principles in place, operational and financial capacity to service the members, and the vision for enhancing the standing and welfare of the CPAs and the profession in the local and international community. Such organization should not be comfortable and confident that it should automatically be the integrated organization for reason that it is the biggest among the accountancy professional organizations. I also suggest that this organization should be provided by law with responsibilities and authority befitting the APO of all CPAs. These include the sole responsibility to discipline and penalize erring CPAs. All APOs, including PICPA, have already a system of handling complaints against or cases committed by erring CPAs. However, the process of assessment of such cases and the disciplining of its members are slow and not too effective. The integrated APO should be able to ex-

Orbos. . .

continued from A8

a cohesive transport program that connects our homes to the whole of the country and the rest of the world in a seamless, inclusive, sustainable manner that is good for the long term. Yes, we are just around the bend before 2022. Let us make sure that we are heard this time. Not just through

I support the move to institute amendments to the Accountancy Law on a united and integrated APO, but, with the additional responsibilities and authority befitting this organization. ercise is disciplinary mandate to the hilt. The BOA role in disciplining CPAs should be limited to instituting the penalty of dropping from the CPA rolls the erring accountants upon the recommendation of the APO. With this arrangement, the APO can gain the respect of the accountancy stakeholders and “fear” from erring CPAs. Another mandate of the APO that should be included in the Accountancy Law amendments is issuing accounting and auditing standards for practice. Presently, it is the BOA that issues resolutions to promulgate accounting or auditing standards or rules. Likewise, it is the BOA that implements the same rules. Finally, it is the same BOA that adjudicates legal or regulatory issues or questions pertaining to the standards. The BOA is all powerful under the present set up of being the legislator, implementor and judge of the rules. Check and balance principles require that there should be a separation of these three functions into different persons or entities. Following this principle, the role of legislation or standard setting should be assigned to an institution different from the one implementing the same, i.e., the BOA. Properly, the APO of the accountancy profession should be able to discharge this important task. I support the move to institute amendments to the Accountancy Law on a united and integrated APO, but, with the additional responsibilities and authority befitting this organization. To be continued Joel L. Tan-Torres is the Dean of the University of the Philippines Virata School of Business. Previously, he was the Commissioner of the Bureau of Internal Revenue, the chairman of the Professional Regulatory Board of Accountancy and partner of Reyes Tacandong & Co. and the SyCip Gorres and Velayo & Co. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979. This column accepts articles for publication from the business and academic community. Articles not exceeding 600 words can be e-mailed to jltantorres@up.edu.ph.

the ballots but in terms of what we as the public need from our next set of leaders. This time around, let the people on the streets talk. Let it be Street Talk, 2022! Thomas “Tim” Orbos is currently a transport policy advisor for an international organization and worked in government on transport and urban development matters. He is an alumnus of Georgetown University and the MIT Sloan School of Management. He can be reached via e-mail—tmo45@ georgetown.edu /thomas_orbos@sloan.mit.edu

End of days Siegfred Bueno Mison, Esq.

THE PATRIOT

ost of my PMA classmates, after occupying significant positions in the Armed Forces of the Philippines and in the Philippine National Police (PNP), have been given testimonial parades and retirement ceremonies to commemorate the end of illustrious careers. One by one, the end of their careers in the uniformed service came at a screeching halt, regardless of their contributions and capabilities, as soon as they reach the age of 56. Politicians, in similar fashion, due to constitutional restrictions, are faced with the end of their public service by 2022. While some can still qualify for reelection, others, like President Duterte, are looking at their last 380 days in office. Some of those Duterte appointees, save for a few protected by tenure, also face such eventuality. Unless reappointed by the next President, these public officials are now managing their “end game,” as in what to do next after the Duterte administration. I have a few friends, faced with a terminal illness, that are literally staring at the end of their days here on Earth. Faced with the end of a career or life, I wonder what is in the hearts and minds of mortals like us. I am in awe as to how some people, who, faced with this harsh reality, handle the end of days with some class and poise. Just recently, the irrefutably popular TV show America’s Got Talent showcased the authenticity of the crooner, as well as her ethereal voice. The song was an original composition, which exhibited the positive mentality and optimistic attitude of a person stricken by terminal cancer. During her performance in AGT, cancer markers were still ravaging her lungs, liver, and spine. Her physique could not hide her state of health, as she was visibly tired after she delivered an exceedingly great song, at least by my standards. Far from being a singer (more of dancer, I guess), I am usually attracted to the beat of the song

at first, but, as soon as I understand the lyrics, I play the song over and over again until I am hooked. “It’s Ok,” with the way it was composed and performed in AGT by a 30-yearold vocalist who goes by the name “Nightbirde,” is one admirable way of dealing with “end of days.” Confronted with news of terminal cancer in her lungs, liver, lymph nodes, ribs and spine from her doctors who gave her a 2 percent survival chance, Jane Marczweski aka “Nightbirde” did not sulk over such disturbing news. Instead, she relentlessly pursued her dreams of being a singer, saying “2 percent is not zero percent.” More than just getting a standing ovation and a golden buzzer from one of the judges in AGT, her performance, to me, was a clear expression that, during our darkest hours, a “bird” can sing with more spirit. Another friend of mine from law school, MRG, whose daughter is fighting a terminal cancer, does not sing but writes. These days, MRG writes with more spirit and inspiration as she quotes powerful biblical verses to share with the world how “end of days” can be faced with much trust and confidence. Nightbirde’s resilience and MGR’s confidence can be compared with the courage displayed by the Allied soldiers during the world’s largest seaborne invasion during World War II. Forming part of a bigger plan—the

Monday, June 14, 2021

Allied invasion of German-occupied Western Europe—these warriors were sent to the unfamiliar with the possibility of death along the beaches of Normandy, France on June 6, 1944. A good number indeed died along the coastline on D-Day; for some, only minutes upon setting foot in Normandy. I wonder what those soldiers thought the day before or a few seconds before dying. I suppose some of them, realizing the fleeting nature of life, thought about their loved ones moments before they breathed their last breath. Having been given the chance to know that their last days will be tomorrow or any day, Nightbirde and the Allied soldiers in Normandy equally armed themselves with boldness, refusing to give up in the darkest times of their lives. We should do the same. After all, nothing seems infinite in the worldly realm. One’s professional career will end with retirement, a politician’s term will have its expiry, and most definitely, one’s life will have a finish line. Greater anxiety and fear comes before us, not knowing what happens next after the “end of days.” Those stricken with life-threatening diseases or those in palliative care may well be calculating what to do in life with little time left here on earth. While not as serious as the end of one’s life, those nearing retirement or the end of their careers in government may also be calculating what to do before they step down. Some make a last hurrah, squeezing as much activities as they can on their last days, knowing fully well that they will never have that same power and influence. I was taught that the better attitude, when faced with our “end of days,” is to take the shield of optimism, be significant to others, and look at a legacy beyond our lifetime. The great martyr Stephen, in Biblical times, focused his eyes on Jesus Christ as he was being stoned to death. He called out, “Lord Jesus, receive my spirit.” Then he fell to his knees and cried out in a loud voice, “Lord, do not hold this sin against them”; and when he said this, he fell asleep.” (Acts 7:59-60). In his

final moments, Stephen exhibited a forgiving spirit and even asked God not to hold the sin of his attackers against them. Stephen’s last words and actions exemplified how grace and mercy ought to influence our heart and minds when faced with our “end of days.” One the most important teachings I recently learned was not to consider death as end of days but as a beginning of a new life. Believers should look forward to the fact of redemption and eventual reunion with our Heavenly Creator. Once we understand the value of eternity with Jesus, we can truly manage life’s darkest nights, similar to how Nightbirde and MRG are living each day with courage and significance. Both have stepped into a door of certainty; leaving behind their restless souls of sickness, problems, animosity, and most of all, fear. Armed with a new mindset that no earthly trial can overwhelm or overcome them, Nightbirde, my friend MGR, and most of those Allied soldiers, hopefully, during the great Normandy invasion, saw their “end of days” with optimistic delight! As we see the end in our horizon, regardless of our stage in life, let us remember the last words of a Japanese General after losing the Battle of Midway in June 1942. Since he and most of his men decided to go down with their sinking ship, he uttered, “Come, let us watch the sunset together.” Death is not an ugly truth but a beautiful reality. That’s why I love sunsets. For some, it’s the end of a day. But knowing that the same sun rises in the morning, for me, it’s a new beginning. A former infantry and intelligence officer in the Army, Siegfred Mison showcased his servant leadership philosophy in organizations such as the Integrated Bar of the Philippines, Malcolm Law Offices, Infogix Inc., University of the East, Bureau of Immigration, and Philippine Airlines. He is a graduate of West Point in New York, Ateneo Law School, and University of Southern California. A corporate lawyer by profession, he is an inspirational teacher and a Spirit-filled writer with a mission. For questions and comments, please e-mail me at sbmison@gmail.com.

Out-of-control shipping costs fire up prices from coffee to toys By Alex Longley, Catherine Bosley & Deirdre Hipwell Bloomberg Opinion

he skyrocketing price of shipping goods across the globe may hit your pocketbook sooner than you think—from that cup of coffee you get each morning to the toys you were thinking of buying your kids. Transporting a 40-foot steel container of cargo by sea from Shanghai to Rotterdam now costs a record $10,522, a whopping 547 percent higher than the seasonal average over the last five years, according to Drewry Shipping. With upwards of 80 percent of all goods trade transported by sea, freight-cost surges are threatening to boost the price of everything from toys, furniture and car parts to coffee, sugar and anchovies, compounding concerns in global markets already bracing for accelerating inflation. “In 40 years in toy retailing I have never known such challenging conditions from the point of view of pricing,” Gary Grant, the founder and executive chairman of the UK toy shop The Entertainer, said in a interview. He has had to stop importing giant teddy bears from China because their retail price would have had to double to add in higher freight costs. “Will this have an impact on retail prices? My answer has to be yes.” A confluence of factors—soaring demand, a shortage of containers, saturated ports and too few ships and dock workers—have contributed to the squeeze on transportation capacity on every freight path. Recent Covid outbreaks in Asian export hubs like China have made matters worse. The pain is most acutely felt on longer-distance routes, making shipping from Shanghai to Rotterdam 67 percent more expensive than to the US West Coast, for instance. Often dismissed as having an insignificant impact on inflation because they were a tiny part of the

overall expense, rising shipping costs are now forcing some economists to pay them a bit more attention. Although still seen as a relatively minor input, HSBC Holdings Plc. estimates that a 205 percent increase in container shipping costs over the past year could raise euro-area producer prices by as much as 2 percent. At the retail level, vendors are faced with three choices: halt trade, raise prices or absorb the cost to pass it on later, all of which would effectively mean more expensive goods, said Jordi Espin, strategic relations manager at the European Shippers’ Council, a Brussels-based trade group that represents about 100,000 retailers, wholesalers and manufacturers. “These costs are already being passed to consumers,” he said. Prices for customers are rising in other ways, too. For instance, anchovies from Peru have largely stopped being imported into Europe because with the higher freight costs they’re not competitive relative to what’s available locally, Espin said. Also, European olive growers can no longer afford to export to the US, he said. Meanwhile, shipping bottlenecks and costs are hurting the transport of arabica coffee beans, favored by Starbucks, and robusta beans used to make instant coffee, which are largely sourced from Asia. Few industry observers expect container rates to retreat much any time soon. Lars Jensen, CEO of consultant Vespucci Maritime in Copenhagen, said on a Flexport Inc. webinar last week that there’s “zero slack in the system.”

Closely held French shipping company CMA CGM SA, which raked in net income of $2.1 billion in the first quarter compared with $48 million in the year-ago period, indicated recently that it expects “sustained demand for the transportation of consumer goods” to continue throughout the year. Freight costs are more painful for companies that move clunky, lowvalue items like toys and furniture. “If they are bulky products it means you can’t get very many in the container and that will have a significant impact on the landed price of the goods,” said The Entertainer’s Grant. For some lower-value furniture makers, freight now makes up about 62 percent of the retail value, according to Alan Murphy, CEO of consultant Sea-Intelligence in Copenhagen. “You simply can’t survive on this,” he said. “Someone is bleeding very hard.” Companies are desperately trying to work around the higher costs. Some have stopped exporting to certain locations while others are looking for goods or raw materials from nearer locations, according to Philip Damas, founder and operational head of Drewry Supply Chain Advisors. “The longer these extreme shipping freight rates last, the more companies will take structural measures to shorten their supply chains,” Damas said. “Few companies can absorb a 15 percent increase in total delivered costs for internationally traded products.” Some firms in Europe are resorting to extreme methods, like using truck convoys to get products including automotive parts, bikes and scooters from China, said Espin at the European Shippers’ Council. Central bankers have so far been sanguine about the phenomenon, arguing that the rise in consumer prices tied to supply hiccups won’t last. European Central Bank President

Christine Lagarde said on June 10 that while supply-chain bottlenecks would push up production prices and the headline inflation rate is expected to rise further in the second half of this year, the effect will fade. Several factors explain the relative lack of concern. Shipping costs only constitute a small fraction of the final price of a manufactured good, with economists at Goldman Sachs Group Inc. estimating in March— when China-Europe rates were about half of current levels—that internationally they made up less than 1%. To top that, companies have annual contracts with the container lines, so the prices they’ve locked in are considerably lower than the headline-grabbing spot rates. Although the latest round of contract negotiations in May reflected the stronger spot market, HSBC trade economist Shanella Rajanayagam said that “the longer-term rates are much much lower than the spot rates, even if they are feeding through.” With the end of lockdowns consumer demand is likely to shift to services from goods, but “the risk of course is that higher shipping costs persist—especially given ongoing shipping disruption—and that producers become more willing to pass these higher costs on to consumers,” Rajanayagam said. While many economists note that even a full pass-through of higher shipping fares to consumers will have a marginal effect on headline inflation, Volker Wieland, a professor of economics at the Goethe University in Frankfurt and a member of the German government’s council of economic advisers, warns that they might not be sufficiently factored in. “Even if the order of magnitude is smaller than estimated, the dynamic builds over a year and has significant effects,” he said. “That means there’s a danger we’re underestimating the impact.”

A10 Monday, June 14, 2021

2nd Front Page A BusinessMirror Special Feature

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SASO: PUTTING FOR GOLD F

By Jun Lomibao

OR Yuka Saso, winning an Olympic gold medal in Tokyo and having the US Women’s Open title tucked in her belt are, in context, apples and oranges. “First, it doesn’t mean that [because] I won this [US Women’s Open], I can win a gold in the Olympics,” the International Container Terminal Services Inc. (ICTSI)-backed Saso said. “I still have a lot of work to do.” Saso trailed by five strokes with few holes left in the final round of the US Open on Sunday but, thanks to Lexi Thompson’s backside collapse, she clawed back in stunning fashion and topped one of the five majors in women’s golf. That conquest did not only catapult the Filipino-Japanese 13 rungs up to world No. 9, but also made her the first Filipino— male or female—to win a major golf championship. She, too, was one of the youngest to rule a major at 19. Saso will be facing practically the same field she stunned at the Olympic Club in San Francisco, including nine in the top 10 of the current Olympic rankings, but she prefers to be wary of her chances for the gold medal. She was quick to temper down expectations. “There’s a lot of tournaments coming up, so, I have to get back to work and focus on my next tournament and we’ll see what’s going to happen in the Olympics,” she said. Saso and fellow golfers Bianca Pagdanganan and Juvic Pagunsan in men’s play are already assured of playing in Tokyo by virtue of their world rankings. Pagdanganan is No. 41 and Pagunsan is No. 50 in the world rankings. The official announcement for the qualifiers in Olympic golf will be made on or after June 22. The top 60 golfers in the men and women divisions will qualify for the Olympics. “All three of them have a very real chance of podium finishes,” National Golf Association of the Philippines secretary general Bones Floro said. “Medals are within their reach.” Not even golf’s venue in Tokyo—the Kasumigaseki Golf Club in Saitama which is relatively familiar to Saso—could bend Saso into counting chicks before the eggs are broken. But she gave a peek of what’s on her mind. “This [US Open win] is just the start. I think it’s really a good win,” she said. “But it doesn’t stop here so I hope we can get more.” With Tokyo hosting the Olympics from July 23 to August 8—golf starts on August 4—Saso, and perhaps with the Japanese led by world No. 10 and Nasa Hataoka, who Saso beat in the playoff at the Olympic Club—could be enjoying a “home-court” advantage. Saso stressed several factors will determine the result in Tokyo, adding she needs to toughen up and be at her top form in the Olympics. She will face the same elite cast again in the Women’s PGA Championship set from June 24 to 27 at the Highlands Course in Atlanta. Also on the women’s majors list besides the US Open and PGA Championship are the ANA Inspiration, Ricoh Women’s British Open and the Evian Masters. Still reeling from that Women’s US Open win, Saso started to pave the way for big things to come that leads to her dream—and every Filipinos, too—of becoming world No. 1 and an Olympic gold medalist. Saso’s long-time supporter, ICTSI, headed by Chairman and CEO Enrique K. Razon, was all praises for her. “Her ICTSI family thanks Yuka for the pride and joy she gives the country. We commend her for her hard work, perseverance and dedication to training, and most especially for remaining humble despite her recent successes,” the ICTSI said in a statement. “She is and will continue to be a role model for the golfing community. May she also serve as an inspiration to our Filipino athletes in breaking through internationally,” the statement added. “ICTSI will continue supporting Yuka in her golfing career, and we look forward to more victories.” Besides Saso, Pagdanganan and Pagunsan, also Tokyo Olympics-bound are gymnast Carlos Yulo, weightlifters Hidilyn Diaz and Elreen Ann Ando, pole vault’s EJ Obiena, rower Cris Nievarez, jin Kurt Barbosa, skateboarder Margie Didal and boxers Eumir Marcial, Carlo Paalam, Irish Magno and Nesthy Petecio. The Philippines started participating in the Olympics in Paris 1924 and managed three silver and seven bronze for a total of 10 medals. No gold.

YUKA: FEET ON THE GROUND

YUKA SASO is the newest golf star in the world, in Asia and most specially in the Philippines. But deep in her heart and mind, she remains the Yuka Saso those close to her have known. Saso, according to National Golf Association of the Philippines secretary general Bones Floro, is that typically shy teenager who gets star-struck during certain occasions. And Vice Ganda, one of the popular comedian-hosts in the country, got Saso star-struck once. Floro narrated that in a half-time ceremony in a Philippine Basketball Association game in 2018 when Saso and the other Jakarta Asian Games gold medalists were recognized, she asked that she be photographed with Vice Ganda. “I readily obliged,” Floro said. “And when several PBA players asked for a photo with her, she was very accommodating but still showed how shy she was.” Floro said Saso is a simple, happy and generous young woman who loves K-Pop and follows Marvel Comics characters. “She’s no prima donna, that’s for sure, despite her celebrity status as the country’s fast-rising global women golfer,” Floro said. “Yuka remains the person that she is—selfless, considerate, humble and generous.” Saso likes Korean girl groups Twice and Blackpink—but isn’t exactly an absolute BTS fan. She also loves Sam Smith and Daniel Padilla, and her favorite films are Lucy, Transformers, The Avengers, Batman and Spiderman. “She is just an ordinary kid who loves cartoons,” Floro said. “She is a very happy and positive person, a very sweet girl.”

YUKA SASO gets a fist bump from Lexi Thompson and then raises the US Women’s Open trophy. AP

‘This US Women’s Open win is just the start ...It doesn’t stop here and I hope we can get more.’

Companies BusinessMirror

Editor: Jennifer A. Ng

Monday, June 14, 2021

‘ERC must scrutinize impact of AS policy on consumers’

By Lenie Lectura

@llectura

he National Grid Corporation of the Philippines (NGCP) said the Energy Regulatory Commission (ERC) should be allowed to review the Department of Energy (DOE) policy requiring 100-percent firm contracting for ancillary services (AS).

“We are hoping that the ERC should be, at the very least, consulted and given the opportunity to review the policy and study its full impact on consumers,” NGCP said. NGCP said it does not deny its obligation to secure sufficient AS. “This obligation is clear. We only ask that this be thoroughly studied, and the price impact be given primary consideration. With consumers already reeling from the economic effects of the pandemic, industry leaders should think before pushing a procurement strategy that can be, at best, described as anti-poor, and at worst, basis for charges of plunder.” The grid operator warned last week last week that consumers stand to suffer from soaring electricity rates should the DOE policy prevail. NGCP’s warning, it said, comes after the DOE’s insistence on the

dispatch of ancillary services as a response to thin operating margins and possible load dropping in the Luzon grid at various points this year due to multiple power plants on extended outage. Based on NGCP’s initial simulations, power rates can see an upsurge of P0.64 per kilowatt hour (kWh) for Luzon, P0.54 pesos per kWh for Visayas, and P1.39 pesos per kWh for Mindanao. For a household consuming 200kwh, this would mean an additional P128 in the electric bills of consumers from Luzon, P108 for those in Visayas, and P278 for those in Mindanao. The power transmission operator has repeatedly clarified that ancillary services are not meant to replace baseload plants or for any long-term or continuous use. Instead, ancillary services are a stop-gap measure, dis-

patched only to stabilize and balance the grid in cases of power supply and demand imbalance. In times when supply is sufficient, it is meant to run only long enough to bridge the gap between the loss of supply event, and the time that replacement power can be scheduled by the Independent Electricity Market Operator of the Philippines, Inc. (IEMOP), usually within the succeeding hour or two. It should not run for days, weeks, or months on end without violating the Electric Power Industry Reform Act and prevailing regulatory approvals. Under the DOE’s strategy, however, NGCP is being compelled to procure all of its ancillary services requirements under 100-percent firm contract, wherein AS providers will be paid for 24/7 availability, regardless of actual or absent utilization. NGCP currently contracts both firm and non-firm arrangements for its ancillary services. AS, it stressed, are services, not energy “reserves” that the grid can tap for extended periods of time should major power plants falter. Shifting from the current non-firm arrangements to a firm arrangement will not solve the current lack in supply, as they are taken from the same pool of power plant suppliers. “Shifting to firm contracting is not the solution to the power supply shortage. We get our power to support AS from the same pool of

generators, many of which went on unscheduled shutdowns, and whose current collective output is not enough to meet consumer demand. Signing a firm contract will not make a large capacity power plant magically appear with the stroke of a pen. The only thing that changes is the charging mechanism,” NGCP said. Moreover, the grid operator notes that many of the power plants asking for firm contracts run on diesel fuel. “Contracting diesel-run power plants for AS, especially if the diesel plants are decrepit and inefficient, will not only be counterproductive, it will drastically hike electricity rates. AS costs are pass-on costs that NGCP does not profit from.” Even as it is privately owned, NGCP comports its operations in full understanding that its transmission service is a public utility. “Yes, we are a private company, but we are fully cognizant of the public utility nature of our business. And as a public utility, we have a duty to the consuming public to ensure that our operations, including our procurement strategies, provide the best value for their hard-earned money.” NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and Vice Chairman of the Board Henry Sy Jr. and Co-Vice Chairman Robert Coyiuto Jr.

Lifting of power sector IPO rule bucked By Jasper Emmanuel Y. Arcalas @jearcalas

lawmaker on Sunday opposed a proposal to repeal the initial public offering (IPO) requirement for power generation companies (gencos), saying it is against the spirit of the Constitution. Surigao del Sur 2nd district Rep. Johnny Pimentel said scrapping the statutory requirement for new power gencos to conduct an IPO of at least 15 percent of their common shares and list on the Philippine Stock Exchange (PSE) is “highly regressive.” “Repealing the obligation would be highly regressive. We must stress that Congress crafted the rule in ac-

cordance with the specific mandate of the 1987 Constitution to increase the number of Filipinos owning shares in private enterprises,” Pimentel said in a statement. Without naming the senator, Pimentel noted that a lawmaker from the upper chamber of Congress proposed the scrapping of the IPO requirement for gencos to encourage more investments in the power sector. Last week, Sen. Sherwin T. Gatchalian called for the passage of Senate Bill 2217 which seeks to repeal Republic Act 9136 or the Electric Power Industry Reform Act which required all private gencos and distribution utilities to conduct an IPO.

Pimentel noted that under Article 12, Section 1 of the Constitution: “Private enterprises, including corporations, cooperatives and similar collective organizations, shall be encouraged to broaden their base of ownership.” He said the intention of the Constitution is to distribute new economic opportunities—new income and wealth—to as many Filipinos as possible, including small local investors. “In fact, we compel beneficiaries of congressional franchises, such as airlines and telecommunications firms, to offer at least 10 percent of their shares to the public precisely to give more meaning to the Constitution.”

Pimentel added that the constitutional mandate also prompted Congress to oblige crude oil refineries to sell at least 10 percent of their shares to the public under the Downstream Oil Industry Deregulation Law of 1998. “This is why ordinary Filipinos can now freely own shares in Cebu Air Inc. (Cebu Pacific) and Pilipinas Shell Petroleum Corp., among other firms that were previously held by a handful of private entities,” he said. “Share offerings are good for our middle class families, our capital markets and for our economy. They are also good for the offering corporations because they can easily raise fresh capital.”

DOE adds 2 firms to green energy suppliers list

he Department of Energy (DOE) has included two more renewable energy (RE) firms in its Green Energy Option Program (GEOP) list. Shell Energy Philippines Inc. and Green Core Geothermal Inc. are now qualified under the GEOP.

The GEOP is a voluntary policy mechanism that allows users consuming at least 100 kilowatts of power to source their supply from qualified retail energy suppliers that generate electricity from renewables. There are now a total of 12 RE

firms in the GEOP list. The others are Citicore Energy Solutions Inc., Aboitiz Energy Solutions Inc., Prism Energy Inc., Adventenergy Inc., Bacman Geothermal Inc., First Gen Energy Solutions Inc., SN Aboitiz Power-Magat Inc., SN Aboitiz Power-Res Inc., AC Energy Philippines

Inc., and Sparc-Solar Powered AgriRural Communities Corp. “The DOE is pushing for the Green Energy Option Program (GEOP), where clean energy advocates can source their clean power requirements through our Retail Electricity Suppliers,” Energy Secretary Alfonso G. Cusi said. Lenie Lectura

Dito aims to grow subscriber base D ito Telecommunity Corp. hopes to continue riding its subscriber base growth momentum throughout the year as it expands it coverage to over half of the country’s cities and municipalities this year. Rodolfo D. Santiago, the company’s chief technology officer, said the rate by which Dito’s subscriber base is growing is a “surprising” feat that can be sustained through its planned expansion to more areas. “We’re very aggressive in opening up add cities and municipalities. The potential subscriber base will increase as we expand our coverage. Judging from the three-month experience, if we sustain that pace of getting subscribers, it’ll be an amazing subscriber growth,” he said. Currently, Dito is close to hitting one million subscribers. This, Santiago said, is already a feat for the company considering that Dito is technically only available to 37 percent of the population. “This means that if we’re very strict in computing, that’s only about 30 million of the total population coverage, and 1 million of the 30 million is a very high number. Of the 30 million, only 40 percent of the population are mobile phone subscribers, so that’s about 12 million. So, 1 million of 12 million is about less than 10 percent. At this early stage, that’s a very good number,” Santiago said. Dito Chief Administrative Officer Adel B. Tamano said Dito was able to

attract close to 1 million subscribers despite the current restrictions. “We’ve done it during the time of Covid, lockdown—just to be able to build our network, do the launch, and hit 1 million subscribers in three months,” he said. Dito is currently available in 123 areas in the Philippines. It is set to expand its coverage to 51 percent of the population this year, one of its commitments to the government in securing the third telco franchise. A network audit is set for July 8 to determine if Dito is delivering its commitments for its second year of operations: 55 Mbps of average download speed with 51 percent network coverage and an 80-percent network reliability rate. Santiago noted that his group is ready for the second audit. “We’re about ready to complete the minimum 51 percent population coverage that is required by July 8. We’re just finalizing our preparations for our second-year audit.” Santiago, however, admitted that Dito has been having challenges in building its network in Metro Manila, as it faces backlash from home owners associations of villages. “There are areas even in the commercial areas already that would have some gaps,” he said. “We really wanted to fast-track and cover the whole of Metro Manila. But there are some restrictions that we are subjected to that we cannot do anything unless we are permitted.” Lorenz S. Marasigan

Pelco II, LPEC ink power supply deal

AMPANGA II Electric Cooperative (Pelco II) and La Pampanga Energy Corp. (LPEC) have signed a 15-year power supply agreement (PSA) that would provide a stable and secure power supply in the former’s franchise area. LPEC—a consortium of Vivant Energy, its wholly-owned subsidiary Amberdust Holding Corporation (AHC), and Gigawatt Power Inc.—will construct and operate a power generation facility with a total dependable capacity of 15 megawatts (MW) peaking power supply with ancillary service capability. The 3 x 5.76-MW

diesel-fueled power plant of LPEC will be constructed in Porac, Pampanga and will maintain grid stability and security in the franchise area of Pelco II. The power project will be able to address the peaking power supply requirements of Pelco II. Also, it will provide stable, reliable and quality power to its coverage area even during peak hours. “We look forward to becoming part of the recovery and growth of the Province of Pampanga by providing stable and reliable power to Pelco 2,” said Vivant Energy Corp. EVP and COO Emil Andre M. Garcia. Lenie Lectura

Companies BusinessMirror

Monday, June 14, 2021

PSE STOCK QUOTATIONS

June 11, 2021

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

ASIA UNITED BDO UNIBANK BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PB BANK PBCOM PHIL NATL BANK PSBANK RCBC SECURITY BANK UNION BANK BRIGHT KINDLE COL FINANCIAL FERRONOUX HLDG IREMIT MEDCO HLDG PHIL STOCK EXCH SUN LIFE

43.4 109.2 85.9 24.3 9.7 49.6 10.94 19.8 23.05 55.55 17.18 122 75.9 1.27 4.12 3.03 1.38 0.395 204 2,470

43.5 109.6 86 24.5 9.71 49.85 10.98 20 23.1 56 17.2 122.3 75.95 1.35 4.15 3.12 1.42 0.42 205.8 2,490

43.3 110.6 85.1 24.15 9.78 49.2 10.96 19.82 23.1 55.55 17.2 122.9 75.05 1.38 4.11 3.05 1.38 0.42 205 2,490

43.45 110.6 86 24.5 9.8 49.85 10.98 19.82 23.2 56 17.2 123.8 76 1.38 4.19 3.05 1.38 0.42 205.8 2,490

43.3 108.6 85 24.1 9.7 49.2 10.94 19.8 23 55.3 17.2 122 75 1.25 4.1 3.04 1.38 0.42 198.1 2,470

43.45 109.6 86 24.5 9.7 49.85 10.94 19.8 23.05 55.55 17.2 122 75.95 1.27 4.11 3.04 1.38 0.42 204 2,470

400 1,713,540 2,132,920 124,400 482,100 1,199,000 7,100 1,800 570,900 12,460 52,600 932,060 10,170 220,000 398,000 6,000 8,000 40,000 11,660 15

17,350 187,690,912 183,065,974 3,017,785 4,692,915 59,514,345 77,778 35,650 13,164,360 691,951.50 904,720 114,059,073 767,686.50 276,480 1,642,640 18,250 11,040 16,800 2,384,462 37,250

4,345 64,826,930 -35,874,060 -87,710 -3,258,047.00 28,098,750 -29,710 -83,230 20,640 -8,453,330 492,875.50 1,130,584 -24,900

INDUSTRIAL AC ENERGY 7.87 7.91 7.8 7.95 7.72 7.87 24,132,900 189,370,625 ALSONS CONS 1.37 1.38 1.38 1.39 1.37 1.38 1,535,000 2,114,590 23.35 23.4 23.4 23.8 23.25 23.4 4,091,300 96,015,650 ABOITIZ POWER BASIC ENERGY 0.77 0.78 0.78 0.78 0.74 0.77 99,208,000 75,036,160 30.55 30.7 30.2 31 30.2 30.7 414,800 12,723,175 FIRST GEN FIRST PHIL HLDG 68.75 69.45 69.25 69.45 68.75 68.75 92,000 6,355,073.50 MERALCO 279.8 280 280 280.4 278 280 116,580 32,626,222 15.1 15.2 14.96 15.24 14.96 15.1 3,993,900 60,641,692 MANILA WATER PETRON 3.31 3.33 3.29 3.35 3.29 3.31 1,333,000 4,430,600 4.09 4.2 4.18 4.2 4.18 4.2 19,000 79,600 PETROENERGY PHX PETROLEUM 12.7 13.08 13.1 13.1 12.8 13.1 171,300 2,207,594 20.55 20.6 20.6 20.85 20.55 20.55 250,900 5,176,250 PILIPINAS SHELL 11.36 11.4 11.6 11.6 11.3 11.4 106,200 1,206,320 SPC POWER VIVANT 14.52 15.04 14.52 14.52 14.52 14.52 700 10,164 6.39 6.4 6.49 6.52 6.31 6.4 4,000,500 25,708,637 AGRINURTURE AXELUM 2.94 2.98 2.95 2.99 2.95 2.98 433,000 1,282,290 70 75.55 75.6 75.6 75.6 75.6 350 26,460 BOGO MEDELLIN CNTRL AZUCARERA 13.06 13.52 13.5 13.52 13.5 13.52 6,900 93,258 CENTURY FOOD 23.5 23.7 23.1 23.7 23.1 23.5 1,310,600 30,785,705 16.64 16.68 15.98 16.7 15.98 16.68 1,431,200 23,561,298 DEL MONTE DNL INDUS 7.98 7.99 8.07 8.08 7.92 7.98 32,735,700 261,249,687 10 10.22 10 10.22 10 10 2,818,100 28,347,244 EMPERADOR SMC FOODANDBEV 72 72.5 72.5 72.7 71.65 72 278,330 20,064,964.50 0.63 0.65 0.62 0.65 0.62 0.65 4,000 2,570 ALLIANCE SELECT FRUITAS HLDG 1.42 1.44 1.45 1.46 1.42 1.44 6,763,000 9,716,480 GINEBRA 81.4 81.5 75 82.5 75 81.5 199,280 15,875,003 203.2 203.6 203.6 203.6 202.8 203.2 608,660 123,654,198 JOLLIBEE LIBERTY FLOUR 29.6 29.8 29.8 29.8 29.5 29.5 800 23,630 6.53 6.61 6.65 6.65 6.56 6.56 130,400 861,155 MAXS GROUP MG HLDG 0.31 0.315 0.29 0.32 0.29 0.31 14,800,000 4,524,200 MONDE NISSIN 14.04 14.06 13.92 14.1 13.8 14.04 6,237,200 87,118,870 7.97 8 8.06 8.06 7.97 7.97 141,600 1,132,341 SHAKEYS PIZZA ROXAS AND CO 1.05 1.06 1.04 1.08 1.04 1.05 591,000 623,630 4.5 4.51 4.51 4.55 4.51 4.51 8,000 36,130 RFM CORP ROXAS HLDG 1.47 1.5 1.5 1.5 1.5 1.5 3,000 4,500 0.143 0.144 0.136 0.154 0.136 0.144 146,610,000 21,553,260 SWIFT FOODS 145 146.1 145.3 147.2 144.2 146.1 656,120 95,865,650 UNIV ROBINA VITARICH 0.95 0.96 0.93 0.95 0.91 0.95 8,980,000 8,455,400 60 60.5 60.5 60.5 60.5 60.5 200 12,100 CONCRETE B CEMEX HLDG 1.32 1.33 1.33 1.33 1.29 1.32 4,159,000 5,427,490 3.04 3.08 3.01 3.08 2.95 3.08 1,971,000 5,953,680 DAVINCI CAPITAL EAGLE CEMENT 14.5 14.52 14.52 14.52 13.94 14.52 56,500 812,502 EEI CORP 7.5 7.6 7.5 7.64 7.4 7.64 739,800 5,546,174 6.6 6.64 6.45 6.6 6.2 6.6 3,333,100 21,652,099 HOLCIM MEGAWIDE 6.7 6.75 6.74 6.79 6.7 6.7 608,400 4,094,106 12.7 12.72 12.78 12.78 12.7 12.72 40,600 517,160 PHINMA TKC METALS 1.08 1.1 1.1 1.1 1.05 1.1 1,163,000 1,243,260 2.09 2.1 2.11 2.12 2.1 2.1 1,779,000 3,747,420 VULCAN INDL 1.8 1.81 1.78 1.84 1.78 1.81 256,000 467,060 CROWN ASIA EUROMED 1.92 1.95 1.95 1.95 1.92 1.93 56,000 108,320 4.15 4.3 4.14 4.14 4.14 4.14 3,000 12,420 LMG CORP MABUHAY VINYL 5.15 5.19 5.15 5.2 5.1 5.19 15,000 76,687 5.48 5.49 5.49 5.49 5.45 5.48 231,800 1,270,326 PRYCE CORP 20.6 21.85 21.1 21.8 21.1 21.8 1,700 36,770 CONCEPCION GREENERGY 4.14 4.15 4.11 4.19 4.02 4.14 14,134,000 58,688,090 10 10.08 10.1 10.28 9.96 10 608,300 6,117,725 INTEGRATED MICR IONICS 1.1 1.14 1.15 1.15 1.1 1.14 38,000 43,310 5.88 5.89 5.93 5.93 5.87 5.89 102,300 600,793 PANASONIC SFA SEMICON 1.36 1.38 1.38 1.39 1.35 1.36 514,000 701,060 CIRTEK HLDG 5.63 5.68 5.72 5.78 5.63 5.63 1,177,700 6,680,763

-54,285,746 -13,700 -25,321,190 -44,618,100 -3,305,990 -725,164 -5,171,842 -1,583,912 277,410 -13,100 3,840 -51,330 402,128 2,950 -4,050 -21,056,225 -915,044 -5,597,871 682,402 -14,269,453 2,052,370 -1,294,671.50 96,021,162 106,400 -300,000 -7,288,506 212,007 331,630 -36,130 400,070 30,114,831 37,600 493,990 18,010 -72,500 -711,750 21,008 171,942 -63,900 -48,380 159,960.00 822,548 -1,295,010 -333,078.00 90,130.00 -432,932

HOLDING & FRIMS ABACORE CAPITAL 1.07 1.08 1.06 1.08 1.03 1.08 10,343,000 10,977,540 ASIABEST GROUP 7.26 7.38 7.35 7.38 7.35 7.38 300 2,208 817.5 818 812 824.5 812 818 157,460 128,814,405 AYALA CORP ABOITIZ EQUITY 40.9 41 40.9 41 40.75 41 831,100 34,026,030 10.22 10.3 10.3 10.4 10.22 10.22 2,517,500 25,872,170 ALLIANCE GLOBAL AYALA LAND LOG 3.4 3.41 3.4 3.42 3.32 3.4 3,782,000 12,846,820 ANSCOR 6.81 6.9 6.8 6.9 6.8 6.9 2,300 15,670 1.02 1.03 1.08 1.08 1 1.02 19,907,000 20,484,650 ANGLO PHIL HLDG ATN HLDG A 0.72 0.73 0.74 0.74 0.71 0.73 857,000 619,510 800.5 1,339 1,351 1,351 1,350 1,350 20 27,010 BHI HLDG COSCO CAPITAL 5.38 5.39 5.28 5.39 5.28 5.39 683,600 3,665,729 5.96 5.97 6.05 6.1 5.95 5.96 6,047,300 36,271,098 DMCI HLDG 8.03 8.08 8.02 8.05 8.02 8.02 14,700 118,048 FILINVEST DEV FJ PRINCE A 2.97 3.04 2.99 2.99 2.99 2.99 4,000 11,960 0.27 0.295 0.29 0.3 0.265 0.295 1,750,000 489,650 FORUM PACIFIC GT CAPITAL 597 599 610 610 596 598 61,540 36,932,900 3.55 3.77 3.66 3.77 3.66 3.77 76,000 280,200 HOUSE OF INV JG SUMMIT 60.25 60.4 61 61 60.1 60.25 796,040 47,932,183 LODESTAR 0.91 0.92 0.9 0.94 0.87 0.92 1,975,000 1,772,570 13.1 13.48 13.3 13.5 13.08 13.1 1,939,900 25,760,944 LT GROUP MABUHAY HLDG 0.55 0.57 0.55 0.62 0.55 0.58 2,886,000 1,671,940 1.52 1.64 1.56 1.64 1.56 1.64 2,000 3,200 MJC INVESTMENTS METRO PAC INV 4.05 4.08 4.06 4.11 4.05 4.05 23,246,000 94,645,650 3.68 3.76 3.8 3.8 3.8 3.8 25,000 95,000 PACIFICA HLDG PRIME MEDIA 2.87 2.88 2.76 2.96 2.76 2.87 2,391,000 6,901,890 SOLID GROUP 1.19 1.21 1.19 1.19 1.19 1.19 30,000 35,700 1,004 1,019 1,005 1,019 1,001 1,019 109,115 110,245,975 SM INVESTMENTS SAN MIGUEL CORP 119 119.4 121 121.7 119 119 452,740 54,623,469 0.73 0.74 0.74 0.74 0.73 0.74 86,000 63,540 SOC RESOURCES SEAFRONT RES 2.11 2.44 2.07 2.11 2.07 2.11 3,000 6,250 TOP FRONTIER 130.9 134.1 131 134 126 134 14,980 1,962,524 0.27 0.275 0.275 0.28 0.265 0.275 300,000 82,500 WELLEX INDUS ZEUS HLDG 0.236 0.239 0.247 0.247 0.236 0.24 3,450,000 824,980

1,656,860 -56,066,805 8,343,950 -13,264,304 194,850 -13,600 -31,210 -40,856 5,122,777 -10,325,265 -14,427,881 8,900 -12,328,980 60,000 -31,875,360.00 574,190 4,569,435 -364,063 99,975 -

PROPERTY

ARTHALAND CORP 0.62 0.63 0.62 0.62 0.62 0.62 130,000 80,600 ANCHOR LAND 7.5 7.65 7.5 7.5 7.5 7.5 200 1,500 38.2 38.3 37.7 38.3 37.65 38.3 7,137,000 271,313,920 AYALA LAND ARANETA PROP 1.16 1.24 1.19 1.22 1.15 1.16 255,000 302,180 36.5 36.6 35.8 36.75 35.8 36.5 211,500 7,707,120 AREIT RT BELLE CORP 1.46 1.47 1.45 1.48 1.45 1.46 179,000 262,880 A BROWN 1 1.01 1 1.02 0.98 1 3,401,000 3,397,880 0.94 0.96 0.96 0.97 0.92 0.96 606,000 573,720 CITYLAND DEVT CROWN EQUITIES 0.124 0.128 0.126 0.129 0.123 0.128 48,770,000 6,103,620 6.75 7 6.69 7 6.69 7 18,500 127,547 CEBU HLDG CEB LANDMASTERS 7.13 7.14 7.06 7.13 7.05 7.13 6,474,300 45,959,451 0.43 0.435 0.425 0.435 0.425 0.435 27,200,000 11,672,200 CENTURY PROP 0.335 0.34 0.335 0.345 0.335 0.34 260,000 88,100 CYBER BAY DOUBLEDRAGON 12 12.06 12.12 12.2 11.9 12 1,294,700 15,571,644 1.93 1.94 1.93 1.94 1.93 1.94 9,909,000 19,153,790 DDMP RT DM WENCESLAO 6.73 6.75 6.75 6.75 6.73 6.73 119,400 804,986 0.29 0.3 0.295 0.3 0.28 0.295 1,990,000 581,300 EMPIRE EAST EVER GOTESCO 0.38 0.385 0.425 0.46 0.38 0.385 282,410,000 119,337,500 FILINVEST LAND 1.08 1.09 1.08 1.09 1.07 1.09 2,868,000 3,101,290 0.88 0.9 0.88 0.89 0.88 0.88 144,000 126,740 GLOBAL ESTATE 8990 HLDG 7.3 7.55 7.53 7.57 7.2 7.55 87,500 649,011 1.36 1.37 1.38 1.38 1.35 1.36 456,000 621,760 PHIL INFRADEV CITY AND LAND 1.87 1.88 1.94 1.95 1.85 1.88 2,431,000 4,588,200 3.21 3.22 3.18 3.23 3.18 3.21 49,643,000 159,490,670 MEGAWORLD 0.395 0.4 0.4 0.405 0.39 0.4 21,180,000 8,441,850 MRC ALLIED PHIL ESTATES 0.61 0.62 0.59 0.63 0.58 0.62 14,000,000 8,598,650 3.7 3.71 3.73 3.78 3.51 3.71 4,296,000 15,714,990 PRIMEX CORP ROBINSONS LAND 18.2 18.3 18 18.3 17.9 18.3 2,297,600 41,879,304 0.244 0.247 0.246 0.248 0.243 0.243 460,000 112,410 PHIL REALTY ROCKWELL 1.49 1.5 1.5 1.5 1.49 1.5 183,000 274,000 SHANG PROP 2.59 2.69 2.7 2.7 2.7 2.7 2,000 5,400 2.56 2.61 2.62 2.62 2.56 2.62 118,000 308,490 STA LUCIA LAND SM PRIME HLDG 36.7 37 37.45 37.65 36.65 37 4,640,900 171,219,880 3.82 3.95 3.85 3.95 3.8 3.95 9,000 35,150 VISTAMALLS SUNTRUST HOME 1.68 1.7 1.66 1.68 1.64 1.68 1,287,000 2,126,210 3.86 3.87 3.86 3.88 3.83 3.87 6,069,000 23,421,510 VISTA LAND SERVICES ABS CBN 11.34 11.4 11.54 11.54 11.32 11.34 145,800 1,662,066 GMA NETWORK 11.4 11.42 11.66 11.88 10.96 11.4 7,513,600 85,433,104 0.44 0.45 0.45 0.45 0.45 0.45 140,000 63,000 MANILA BULLETIN MLA BRDCASTING 9.79 10.56 10.58 10.58 10.58 10.58 100 1,058 1,841 1,845 1,825 1,850 1,812 1,841 189,270 345,901,615 GLOBE TELECOM PLDT 1,309 1,310 1,310 1,325 1,305 1,310 67,070 87,994,995 APOLLO GLOBAL 0.18 0.181 0.184 0.184 0.178 0.18 206,100,000 37,099,240 21.45 21.5 20.2 21.65 20.2 21.45 13,175,300 277,901,430 CONVERGE DFNN INC 4.07 4.16 4.24 4.26 4.01 4.08 1,788,000 7,256,210 9.6 9.61 9.6 9.74 9.58 9.6 3,654,000 35,135,808 DITO CME HLDG JACKSTONES 2.2 2.25 2.15 2.29 2.15 2.26 58,000 130,800 2.35 2.38 2.38 2.4 2.35 2.35 1,120,000 2,643,390 NOW CORP 0.435 0.445 0.44 0.455 0.43 0.445 9,460,000 4,163,600 TRANSPACIFIC BR PHILWEB 2.46 2.5 2.45 2.5 2.45 2.46 140,000 345,770 8.6 8.74 8.6 8.8 8.6 8.74 19,700 171,530 2GO GROUP ASIAN TERMINALS 14.58 15 15 15 14.6 14.6 14,200 208,794 3.1 3.12 3.1 3.14 3.07 3.1 982,000 3,046,200 CHELSEA CEBU AIR 49.8 49.85 49.4 49.9 49.4 49.8 608,700 30,254,440 INTL CONTAINER 150.5 151 150 152.5 149.4 151 1,374,560 207,502,306 16.8 18.08 18 18 18 18 1,100 19,800 LBC EXPRESS LORENZO SHIPPNG 1.03 1.1 1.1 1.1 1.1 1.1 23,000 25,300 5.59 5.6 5.54 5.65 5.52 5.6 3,099,700 17,358,227 MACROASIA METROALLIANCE A 2.28 2.3 2.36 2.36 2.21 2.3 161,000 363,320 2.3 2.37 2.3 2.3 2.3 2.3 1,000 2,300 METROALLIANCE B PAL HLDG 6.15 6.18 6.1 6.18 6.08 6.15 174,800 1,072,451 HARBOR STAR 1.19 1.2 1.2 1.2 1.18 1.2 184,000 219,000 0.135 0.136 0.117 0.135 0.117 0.135 1,898,820,000 243,207,400 BOULEVARD HLDG DISCOVERY WORLD 3.26 3.3 3.24 3.3 3.24 3.3 154,000 504,080 0.56 0.57 0.55 0.57 0.55 0.57 1,601,000 908,710 WATERFRONT CENTRO ESCOLAR 6.59 6.94 6.59 6.59 6.59 6.59 1,400 9,226 IPEOPLE 7.24 7.7 7.7 7.7 7.7 7.7 100 770 0.375 0.385 0.38 0.385 0.375 0.375 1,720,000 647,050 STI HLDG BERJAYA 5.19 5.26 5.26 5.27 5.19 5.19 8,200 42,714 7.24 7.26 7.18 7.28 7.18 7.26 913,700 6,616,447 BLOOMBERRY PACIFIC ONLINE 2.05 2.1 2.05 2.1 2.05 2.1 10,000 20,590 1.66 1.69 1.67 1.67 1.65 1.66 155,000 257,450 LEISURE AND RES 2.07 2.1 2.07 2.12 2.07 2.11 53,000 111,400 MANILA JOCKEY PH RESORTS GRP 1.92 1.93 1.9 1.94 1.89 1.93 2,090,000 3,990,280 0.43 0.435 0.43 0.44 0.43 0.435 1,350,000 585,550 PREMIUM LEISURE PHIL RACING 5.8 6 5.8 5.8 5.8 5.8 4,000 23,200 7.9 7.99 7.97 8.14 7.9 7.9 3,316,500 26,552,444 ALLHOME METRO RETAIL 1.35 1.37 1.37 1.38 1.34 1.37 425,000 581,510 PUREGOLD 39 39.1 38.8 39.25 38.8 39.1 1,725,700 67,339,665 51.05 51.95 52.8 53.2 51.05 51.05 1,840,310 95,467,765 ROBINSONS RTL PHIL SEVEN CORP 101.1 101.4 101.1 104 101.1 101.1 94,150 9,546,806 1.25 1.27 1.29 1.3 1.25 1.25 2,987,000 3,783,810 SSI GROUP WILCON DEPOT 18.98 19.02 19.2 19.2 18.98 19.02 550,400 10,472,902 0.39 0.395 0.395 0.395 0.385 0.39 370,000 144,750 APC GROUP 5.96 6.27 6.37 6.38 5.94 5.94 68,900 417,256 EASYCALL GOLDEN MV 380.2 431.4 412 431.4 412 431.4 2,200 923,874 5.5 5.58 5.5 5.58 5.5 5.58 2,100 11,710 IPM HLDG PRMIERE HORIZON 1.69 1.7 1.77 1.78 1.69 1.7 28,659,000 49,353,560

18,600 7,557,845 -24,400 3,507,745 -93,950 657,990 -34,560 91,147 1,223,856 -81,550 -20,400 -2,539,418 256,720 -478,575 2,813,850 361,110 -8,522 4,100 11,370 -42,514,480 101,450 -195,700 2,191,050 -17,802,232 81,000 2,620 -12,725,870 -1,394,740 145,649,585 18,562,960 -9,142,980 58,301,950 -5,437,370 -1,948,451 275,030 7,800 -40,480 7,894,960 -95,152,364 150,417 803,288 -7,130 7,595,200 -390,700 -415,423 8,300 196,170 2,380,131 276,700 16,629,710.00 -19,427,828.50 -16,152 -1,750,370 2,216,816 -62,250 18,030 1,349,000

MINING & OIL ATOK 9.92 9.99 10 10.1 9.86 9.99 269,700 2,692,472 -402,597 1.73 1.74 1.77 1.8 1.73 1.73 9,457,000 16,482,720 173,000 APEX MINING ATLAS MINING 7.34 7.38 7.07 7.38 7.07 7.38 1,910,900 13,965,251 -1,393,459 5.29 5.35 5.18 5.6 5.01 5.35 714,900 3,829,417 BENGUET A BENGUET B 5.13 5.3 4.96 5.48 4.96 5.21 677,000 3,495,750 COAL ASIA HLDG 0.31 0.32 0.305 0.32 0.305 0.32 630,000 196,650 2.8 2.86 2.87 2.87 2.87 2.87 15,000 43,050 43,050 CENTURY PEAK DIZON MINES 6.9 7.05 6.7 7.22 6.65 7.05 81,500 566,557 -12,180 2.53 2.54 2.51 2.55 2.51 2.53 1,028,000 2,606,860 611,060 FERRONICKEL GEOGRACE 0.35 0.36 0.35 0.36 0.345 0.36 2,320,000 819,050 10,650 0.165 0.167 0.173 0.174 0.163 0.165 106,710,000 17,968,250 LEPANTO A LEPANTO B 0.165 0.168 0.176 0.176 0.165 0.165 4,660,000 788,360 MANILA MINING A 0.012 0.013 0.013 0.013 0.012 0.013 71,400,000 904,400 0.013 0.014 0.013 0.014 0.013 0.014 25,500,000 347,200 -19,300 MANILA MINING B MARCVENTURES 1.26 1.28 1.28 1.29 1.25 1.26 731,000 923,440 60,480 1.46 1.47 1.5 1.5 1.43 1.46 571,000 831,250 14,400 NIHAO NICKEL ASIA 5.1 5.11 5.11 5.19 5.09 5.1 4,762,800 24,341,167 -2,026,458 OMICO CORP 0.4 0.42 0.39 0.41 0.39 0.41 430,000 172,200 1.05 1.06 1.05 1.06 1.03 1.05 1,649,000 1,724,710 10,500 ORNTL PENINSULA PX MINING 7.05 7.1 7.02 7.15 7.02 7.1 725,100 5,119,514 148,600 14.16 14.18 13.98 14.26 13.94 14.18 1,556,000 22,055,420 14,909,430 SEMIRARA MINING UNITED PARAGON 0.01 0.011 0.0098 0.01 0.0097 0.01 82,000,000 810,300 39,200 17.3 17.4 17.2 17.4 17 17.4 109,200 1,874,770 ACE ENEXOR ORNTL PETROL A 0.012 0.013 0.011 0.013 0.011 0.013 548,000,000 6,560,000 ORNTL PETROL B 0.012 0.013 0.012 0.013 0.012 0.012 6,000,000 72,100 70,800 0.012 0.013 0.012 0.013 0.012 0.012 33,900,000 410,300 PHILODRILL PXP ENERGY 8.02 8.14 8.08 8.18 7.8 8.02 951,900 7,570,768 621,089 PREFFERED HOUSE PREF B 100.9 101.5 101.4 101.5 101.4 101.5 8,690 881,985 AC PREF B2R 517.5 530 520 523 520 523 20,000 10,458,470 33 45 30 30 30 30 500 15,000 BC PREF A CEB PREF 48.2 48.35 48.2 48.3 48.1 48.2 221,000 10,653,075 -8,335,200 101.3 101.4 101.4 101.4 101.4 101.4 16,070 1,629,498 5,070 DD PREF FGEN PREF G 107.7 109.9 107.6 107.6 107.6 107.6 10 1,076 GTCAP PREF A 1,000 1,005 1,000 1,000 1,000 1,000 3,260 3,260,000 100.3 100.5 101.8 101.8 100.5 100.5 11,590 1,164,808 MWIDE PREF 2B PNX PREF 3B 103.2 106.8 106 107 103 107 1,920 200,050 1,003 1,008 1,007 1,008 1,002 1,008 8,030 8,076,240 PNX PREF 4 PCOR PREF 2B 1,035 1,037 1,035 1,035 1,035 1,035 10 10,350 1,115 1,119 1,115 1,115 1,115 1,115 65 72,475 PCOR PREF 3A PCOR PREF 3B 1,146 1,150 1,146 1,150 1,146 1,148 740 848,100 SMC PREF 2C 79.9 80 79.95 80 79.9 79.9 62,570 4,999,783 77.2 77.8 77.6 77.6 77.2 77.2 23,900 1,853,880 SMC PREF 2E SMC PREF 2F 79.1 79.75 79.75 79.75 79 79.75 1,020 80,625 78.1 78.4 78.8 78.8 78.8 78.8 30 2,364 SMC PREF 2H SMC PREF 2I 78.5 79.4 79.4 79.4 78.5 79.4 6,620 519,688 SMC PREF 2J 76 77 76 76 75.45 75.45 8,630 651,270 76 76.5 76.4 77 76 76 1,930 148,070 - SMC PREF 2K PHIL. DEPOSITARY RECEIPTS GMA HLDG PDR 10.58 10.66 10.66 11 10.32 10.66 331,800 3,545,222 -539,680 WARRANTS LR WARRANT 1.92 1.93 1.88 1.92 1.87 1.92 1,685,000 3,204,820 -15,360 SMALL & MEDIUM ENTERPRISES ALTUS PROP 17.24 17.26 17.2 17.58 17.18 17.26 20,900 360,712 ITALPINAS 2.39 2.43 2.38 2.43 2.38 2.43 510,000 1,219,100 5.41 5.59 5.67 5.67 5.41 5.6 27,000 148,390 16,260 KEPWEALTH MERRYMART 4.68 4.69 4.71 4.8 4.66 4.69 4,381,000 20,722,070 -382,090 EXHANGE TRADE FUNDS FIRST METRO ETF 104.5 104.9 104.3 105 104.1 104.9 12,740 1,333,183 156,619

www.businessmirror.com.ph

Major foreign players keen on offshore mining in PHL–group

By VG Cabuag

@villygc

he Offshore Mining Chamber of the Philippines (OMCP) said it has been receiving many expressions of interest from major world players in offshore mining to explore opportunities in the country.

Among them are Primetals Technologies of Austria; Duro Felguera of Spain; funders from Switzerland; international JORC and VALMIN professional practitioners from Singapore, Indonesia, Europe and Australia; and other offshore mining-related companies from Indonesia, Malta, Australia, China, Hong Kong and Japan. Among the Japanese companies are Nakanishi Shipbuilding, Kurimoto Iron Works, Kansai Design Co. and JTrade Co., the group said in a statement. OMCP said their interest was piqued after President Rodrigo Duterte issued Executive Order 130 which called for reforms in the country’s mining sector. The said EO opened up the mining sector as it lifted the moratorium on mineral

agreements. “In view of the above interest from abroad, the OMCP urged the Philippine government to approve offshore mining tenement applications only from legitimate offshore mining companies, with adequate capital, proven technical expertise, and demonstrated capability to engage and deploy offshore equipment for proper exploration, seabed scientific research, and sea bottom profiling facilities.” The group’s chairman Gary Olivar said the Mines and Geosciences Bureau of the Department of Environment and Natural Resources (DENR) may start a review of its mine tenement ownership systems and processes, with a view towards delisting inactive tenement claims. “Land banking can occur off-

shore as well as onshore, and must be curbed in the greater interest of spurring this new industry to contribute to the country’s recovery,” he said. One of its members, Cagayan Blue Ocean Offshore Aquamarine Services Corp., recently invested heavily in an Offshore Exploration Tugboat named “AHTS Noah”. The vessel is now docked in Manila Port from where it will soon be deployed in the waters off Cagayan and Pangasinan provinces for scientific offshore exploration, environmentally safe dredging of flood-stricken areas and widening of rivers and offshore areas. With specialized equipment like the HY600 HC cable dredge, “Noah” can see up to 100 meters below the sea crust for proper quantification of mineral resources under the ocean. Its capability to do sea bottom profiles under the seabed can identify objects to be avoided, like corals, cables, vintage bombs, sunken vessels, etc. The vessel can do efficient trenching of hardened magnetite iron deposits buried under the sea for millions of years, thus keeping

the seabed ready for continuing bulk export shipments in the future. It can also be used for anchor handling, fuel and water offshore logistical support, emergency facility for any contingencies, and other offshore marine services. The company is currently engaged by JDVC Resources Corp. and its parent Apollo Globa l Capital, a listed firm, for preparing the seabed, bulk sampling, efficient trenching of JDVC ’s offshore areas of operation, and all other seabed developmental stages preparatory to actual commercial production and export of magnetite iron. “The OMCP intends to establish the gold standard for best practices in offshore mining in the country,” the group said. “Its activities will include selfpolicing and CSR accountabilities of its members; custody of records of mine reserves for proper monitoring, effective payment of export excise taxes to the government, and correct payment of mineral reservation fees to DENR; and public information through seminars/ webinars and other programs.”

mutual funds

June 11, 2021

NAV

One Year Three Year Five Year

per share

Return*

Y-T-D Return

Stock Funds

STOCK-MARKET OUTLOOK

ALFM Growth Fund, Inc. -a

221.37

5.25%

-5.81%

-3.38%

ATRAM Alpha Opportunity Fund, Inc. -a

1.3436

25.86%

-4.25%

0.84%

2.33%

6.7%

-10.3%

-5.76%

-3.13% -3.46%

ATRAM Philippine Equity Opportunity Fund, Inc. -a 3.0348 Climbs Share Capital Equity Investment Fund Corp. -a 0.7761

Last week

Share prices closed higher last week as investors shrugged off negative developments, such as higher unemployment figures in April and the downward revision of the country’s GDP growth for the year. The benchmark Philippine Stock Exchange index (PSEi) gained 111.45 points to close at 6,907.79 points. Average value turnover, however, was only at P5.42 billion, with foreign investors accounting for just 39 percent of all the trades and were net buyers at P865.51 million. All other subindices closed in the green, led by the All Shares index that gained 66.06 points to close at 4,174.65, the Financials index rose 14.34 to 1,468.19, the Industrial index soared 210.73 to 9,302.40, the Holding Firms index added 104.57 to 6,959, the Property index was up 71.35 to 3,423.36, the Services index added 14.96 to 1,542.54 and the Mining and Oil index closed higher by a mere 1.04 to 9,457.55. For the week, gainers led losers 153 to 85 and 12 shares were unchanged. Top gainers were Ever-Gotesco Resources and Holdings Inc., BHI Holdings Inc., Boulevard Holdings Inc. Benguet Corp. A and B shares, Anglo Philippine Holdings Corp., Mabuhay Holdings Corp. and GMA Network, Inc. Top losers were Bright Kindle Resources and Investments Inc., Premiere Horizon Alliance Corp., Oriental Petroleum and Minerals Corp. B, Basic Energy Corp., NiHAO Mineral Resources International Inc. and SSI Group Inc.

This week

Share prices may continue its rise this week as optimism abounds due mainly to the delivery of more Covid-19 vaccines, which brought the national supply to over 12.5 million, enough to cover 9 percent of the population. Talks on next year’s elections are also starting to heat up as names of potential candidates for the top positions have cropped up. “Some level of skepticism should be expected soon. After all, should the PSEi hit the 7,000 to 7,200-points, it will be trading at 16 to 18 times the earnings,” broker 2TradeAsia said. “First semester earnings will be available soon, which should put more color into expectations.” Meanwhile, Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said investors will watch out for the government’s decision on the quarantine classifications of the National Capital Region Plus and areas placed under modified enhanced community quarantine after June 15. “Easing of the restrictions may generate positive sentiment in the market since it would allow more of the country’s productive capacity to be utilized which in turn would help in our economic recovery. Investors are also expected to watch out for developments with respect to our country’s Covid-19 vaccination campaign. If signs are seen that the vaccination drive is speeding up, then the positive bias seen in the market this past trading week could be sustained.” He said the market is expected to test the validity of its current level. If the PSEi is able to sustain its ground at 6,900 points, then it is seen to trade moving forward with the 6,900-point level as its support and 7,300-point level as its resistance. If it falls below 6,900 again, however, then the market is seen to trade with the 10-day exponential moving average of 6,776.08 as of June 11, as its immediate support and the 6,900-point level as its resistance, Tantiangco said.

Stock picks

Broker Regina Capital Development Corp. advised to trade the range on the stock of SM Prime Holdings Inc. (SMPH) as the stock’s range of between P35.95 and P38 per share remains intact. “The indicators still have some leftover bullishness, but the momentum now varies. The lingering buying pressure would likely keep SMPH range-bound for the rest. Recall that SMPH started its sideways consolidation in late May after being pushed above its key short- and long-term moving averages.” SM Prime shares closed at P37 apiece last week. Meanwhile, the broker gave the same recommendation on the stock of Megaworld Corp. (MEG), which has been trading sideways since early this month. “The indicators are uniformly bullish, but the momentum varies. MEG would likely sustain its sideways consolidation over the next few days,” it said. Megaworld shares closed Friday at P3.21 apiece. VG Cabuag

-2.57%

-5.51% n.a.

First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.7258 2.33%

-5.34% n.a.

-2.13%

First Metro Save and Learn Equity Fund,Inc. -a

-3.83%

-2.08%

-2.21%

First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.7021

-1.85%

-7.56%

-6.82%

MBG Equity Investment Fund, Inc. -a

97.26

-4.96% n.a.

-4.59%

PAMI Equity Index Fund, Inc. -a

45.2796

6.71%

-4.02%

-2.24%

-3.35%

Philam Strategic Growth Fund, Inc. -a

476.13

5.69%

-3.92%

-2.61%

-2.63%

Philequity Alpha One Fund, Inc. -a,d,5

1.0636

15.66% n.a. n.a.

-3.07%

4.8322

7.25% 19.12%

Philequity Dividend Yield Fund, Inc. -a

1.1383

6.96%

-3.88%

-1.92%

Philequity Fund, Inc. -a

33.8474

-3.48%

-1.2%

-2.65%

5.33% n.a. n.a.

-3.33% -3.18%

Philequity MSCI Philippine Index Fund, Inc. -a

0.8826

-2.56%

Philequity PSE Index Fund Inc. -a

4.6388

7.27%

-3.42%

-1.44%

Philippine Stock Index Fund Corp. -a

776.8

7.39%

-3.3%

-1.55%

-3.1%

Soldivo Strategic Growth Fund, Inc. -a

0.7041

7.14%

-7.61%

-4.83%

-2.06%

Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.5104

5.13%

-5.72%

-3.01%

-3.13%

Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.8873 6.8%

-3.65%

-1.71%

-3.31%

United Fund, Inc. -a

-3.63%

-0.65%

-2.23%

-3.08%

-0.94%

3.2451

6.72%

-7.59%

Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 104.2546

7.33%

-3.07%

Primarily invested in foreign currency securities ATRAM AsiaPlus Equity Fund, Inc. -b

$1.2709

31.41%

4.55%

8.43%

5.65%

Sun Life Prosperity World Voyager Fund, Inc. -a $1.7704

28.46%

10.53%

11.45%

5.83%

Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a

1.6804

6.83%

-0.87%

-1.26%

0.71%

ATRAM Philippine Balanced Fund, Inc. -a

2.2393

5.82%

-1.18%

-0.49%

-2.02%

First Metro Save and Learn Balanced Fund Inc. -a 2.5866

4.5%

-0.5%

-0.64%

-1.54%

First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1937

1.04% n.a. n.a.

NCM Mutual Fund of the Phils., Inc. -a

1.36%

1.9501

4.35%

0.69%

PAMI Horizon Fund, Inc. -a

3.6769

3.53%

0.01%

-0.45%

-2.94%

Philam Fund, Inc. -a

16.4976

4.17%

0.21%

-0.44%

-2.59%

Solidaritas Fund, Inc. -a

2.0567

4.33%

-0.84%

-0.26%

-1.79%

Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.5039 3.77%

-2.11%

-1.45%

-1.94%

Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.9834

2.28% n.a. n.a.

-3.83%

Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.9046

2.84% n.a. n.a.

-4.7%

Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.892

3.68% n.a. n.a.

Sun Life Prosperity Dynamic Fund, Inc. -a

5.22%

0.8769

-2.64%

-1.79%

-2.47%

-0.71%

-4.4% -1.22%

Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a

$0.03813

-1.04%

3.23%

1.35%

-2.53%

PAMI Asia Balanced Fund, Inc. -b

$1.1455

15.81%

2.52%

5.02%

-0.41%

Sun Life Prosperity Dollar Advantage Fund, Inc. -a $4.6947 21.58%

8.26%

8.32%

4.03%

Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.2134 11.44%

4.86%

4.6%

0.94%

Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a

371.69

1.95%

3.17%

2.46%

0.17%

ATRAM Corporate Bond Fund, Inc. -a

1.9186

-0.97%

1.09%

0.18%

0.96%

3.2265

1.33%

3.8%

4.36%

0.37%

Ekklesia Mutual Fund Inc. -a

2.2583

-1%

2.22%

1.38%

-1.64%

First Metro Save and Learn Fixed Income Fund,Inc. -a 2.4384 0.16%

3.22%

1.73%

-0.6%

4.1%

1.68%

-3.02%

Cocolife Fixed Income Fund, Inc. -a

Philam Bond Fund, Inc. -a

4.4947

-1.27%

Philam Managed Income Fund, Inc. -a,6

1.3252

2.8%

4.31%

2.8%

0.3%

Philequity Peso Bond Fund, Inc. -a

3.9739

1.25%

4.42%

2.34%

-0.68%

Soldivo Bond Fund, Inc. -a

-0.95%

1.0321

0.87%

4.24%

1.77%

Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.2074

1.67%

5.29%

2.73%

0.04%

Sun Life Prosperity GS Fund, Inc. -a

0.65%

4.54%

2.04%

-0.48%

1.7466

Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a

$485.63

2.72%

3.19%

2.31%

0.36%

ALFM Euro Bond Fund, Inc. -a

Є220.07

2.12%

1.15%

1.17%

0.41%

ATRAM Total Return Dollar Bond Fund, Inc. -b $1.1856

-2.29%

2.17%

1.22%

-7.4%

1.72%

0.95%

-2.26%

First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.026 PAMI Global Bond Fund, Inc -b

$1.0515

-1.59%

0.53%

-0.67%

-3.77%

Philam Dollar Bond Fund, Inc. -a

$2.5055

3.01%

5.35%

2.21%

-1.19%

Philequity Dollar Income Fund Inc. -a

$0.0629666

4.18%

3.54%

2.24%

1.04%

Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.1786 0.52%

3.29%

1.11%

-1.4%

2.53%

0.31%

Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a

130.21

1.9%

3.08%

First Metro Save and Learn Money Market Fund, Inc. -a 1.0523 1.17% n.a. n.a. Sun Life Prosperity Money Market Fund, Inc. -a 1.3046

1.79%

2.87%

2.57%

0.4% 0.62%

Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0573

1.26%

1.69% n.a.

0.47%

Feeder Funds Primarily invested in Peso securities Sun Life Prosperity World Equity Index Feeder Fund, Inc. -a,d,7 1.246 n.a. n.a. n.a.

10.3%

Primarily invested in foreign currency securities ALFM Global Multi-Asset Income Fund Inc. -b,d,2

6.38% n.a. n.a.

2.04%

a - NAVPS as of the previous banking day. b - NAVPS as of two banking days ago. c - Listed in the PSE. d - in Net Asset Value per Unit (NAVPU). 1 - Launch date is September 28, 2019. 2 - Launch date is November 15, 2019. 3 - Adjusted due to stock dividend issuance last October 9, 2019. 4 - Renaming was approved by the SEC last October 12, 2018 (formerly, One Wealthy Nation Fund, Inc.). 5 - Launch date is December 09, 2019. 6 - Re-classified into a Bond Fund starting February 21, 2020 (Formerly a Money Market Fund).

7 - Launch date is July 6, 2020.

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

www.businessmirror.com.ph

Banking&Finance BusinessMirror

Editor: Dennis D. Estopace • Monday, June 14, 2021

Finance chief urges GCG to improve system

By Bernadette D. Nicolas

@BNicolasBM

INANCE Secretary Carlos G. Dominguez III urged the Governance Commission for Government-Owned and -Controlled Corporations (GCG) to improve its system in evaluating state-run firms “to avoid errors in public policy-making process.”

Dominguez, who sits as an-exofficio member of the commission, issued the call after observing several instances of “incongruence” between the evaluation done by the GCG on government-owned and -controlled corporations (GOCCs) against those

made by agencies regulating these firms. For instance, Dominguez pointed out that the evaluation by the Insurance Commission (IC) “contrasts sharply” with GCG’s assessment. “The discrepancies could cause

confusion among the regulated and reviewed state enterprises. More seriously, they could bring forth errors in policies for the government,” Dominguez said in a speech during GCG’s 10th anniversary. “I therefore call on my colleagues in the Commission to work towards correcting this irregularity,” he added. Thus, Dominguez recommended that GOCC should refine its evaluation methods and include the findings of regulating agencies in assessing and rating GOCCs. Moreover, the country’s finance chief said GCG is “not very sharp in analyzing financial statements of GOCCs” as it rated some government insurance companies “very highly” despite not adhering to international standards of accounting and reporting. “This, I think, is a failure not only

of the COA [Commission on Audit] but also of the GCG. So, I urge you to strengthen your ability to analyze the financial statements of each and every GOCC,” he said. Dominguez also prodded GCG to make its review methodologies relevant to the industry sectors to help it identify factors peculiar to each GOCC “and, ultimately, come up with a scorecard that accurately measures the achievement of the vision, mission, and mandates of GOCCs.” In the same speech, Dominguez also commended GOCCs for introducing reforms in the public corporate sector that, he said, led the Office of the President to abolish 29 GOCCs since 2011. Among the reforms Dominguez said the GCG introduced included the “Corporate Governance Scorecard” and the institutionalization of a performance evaluation system.

The former assesses state enterprises while the latter enables GOCCs “to become performance-driven corporations anchored on good corporate governance.” “Since the creation of the GCG in 2011, we have brought order into what was once a largely unregulated sector in the government. Ten years ago, the GOCC sector was a mess. The functions and mandates of many public corporations were unclear or overlapped. They were, after all, defined by the politics of the day when they were created,” Dominguez said. He added the government corporate sector is an important tool for economic growth and development as the dividends collected from GOCCs also help the government fund priority programs and projects. “The Duterte administration’s policy of instilling fiscal discipline among our GOCCs allowed us to

collect an average of P57 billion in remittance annually from these firms. This is more than double the average annual collection of the past administration,” he said. “Their contributions proved to be very useful when we needed more money to fund the additional expenses to fight the pandemic.” For GOCCs to remain relevant, Dominguez said they must “meet the highest standards of corporate governance, become sustainable business units, be prudent in the use of the taxpayers’ money and [be] efficient in the deployment of their assets.” The Department of Finance has earlier proposed increasing the mandated dividend remittances of GOCCs to the national treasury from the current 50 percent to at least 75 percent of their net earnings in a bid to raise funds for a possible third economic stimulus program.

LandBank onboards 3.8M BIR slaps 12% VAT on zero-rated goods, services unbanked Natl ID holders T

HE Land Bank of the Philippines Inc. (LandBank) announced it has “ramped-up efforts to bring more unbanked Filipinos into the formal banking system, in support for the National Government’s financial inclusion agenda.” LandBank said that as of May 31, it has “onboarded a total of 3,794,882 unbanked National ID registrants for transaction accounts, of whom 1,071,177 have already received their LandBank agent banking cards.” “The cards, which were provided freeof-charge and with no initial deposit requirement, form part of the bank’s ongoing partnership with the PSA [Philippine Statistics Authority] to co-locate in the Philippine Identification System (PhilSys) rollouts nationwide and provide unbanked registrants with their own transaction accounts.” LandBank President and CEO Cecilia C. Borromeo was quoted in the statement as saying that “as we commemorate Independence Day centered on unity, LandBank continues to take part in the National Government’s whole-of-nation approach towards reaching and serving more unbanked and underserved Filipinos, helping them to be financially independent.” The LandBank said it gives cards to unbanked PhilSys registrants through the bank’s account opening booths at designated co-location areas. As of endMay, LandBank said it has co-located in more than 850 PhilSys registration centers in 32 pilot provinces nationwide. A cardholders can use the card to cash-in, cash-out and transfer funds at any LandBank branch or agent banking partner, the bank said. “They can also withdraw cash at Mastercard-accepting ATMs, perform cashless transactions, shop online and receive government subsidies digitally,” it added. In the future, the LandBank cards may be used as contactless cards to pay fares in public transport modes under the automatic fare collection system project of the Department of Transportation, the bank said. With its various efforts to boost financial inclusion in the country, LandBank is doing its share in reducing inequality, in helping to free the unbanked from poverty and in promoting inclusive growth,” the bank said. “Financial inclusion provides the unbanked opportunities to save, invest, and avail of affordable credit, leading towards their financial independence.” By banking the unbanked, LandBank enables government cash grants and pensions to be credited directly into their accounts through cashless fund transfers, the bank said.

Social protection

TOGETHER with the Department of Social Welfare and Development (DSWD), the LandBank has also distributed a total of 5.6 million cash cards to beneficiaries of social protection program nationwide as of May 31, the bank said. Of this total, 4.4 million cash cards were delivered to DSWD’s Conditional Cash Transfer (CCT) program benefi-

ciaries, the bank said. The remaining 1.2 million cash cards were distributed to Unconditional Cash Transfer (UCT) program beneficiaries, composed of 596,761 and 643,562 beneficiaries under the social pension program for indigent senior citizens and poor households in the DSWD’s database, respectively. Through the cash cards, beneficiaries receive their government subsidy in a timely, safe and convenient manner, the bank said. They can withdraw from LandBank’s ATMs, partner cashout agents, as well as from the ATMs of BancNet-member banks nationwide. They can also use their cards for cashless transactions through point-of-sale (POS) machines, the bank said.

Unbanked, underserved

THE LandBank said to reach more unbanked and underserved areas, it is also expanding its agent banking program by partnering with more cooperatives, rural banks, local government units, and micro, small and medium enterprises (MSMEs), among others, to help provide basic banking services. From the program’s full implementation in March 2020 up to May 31, 2021, LandBank said it has certified 111 “fullsuite agent banking partners,” or ABPs, operating in 48 unbanked municipalities and 159 underserved municipalities or those without a LandBank branch. These ABPs facilitate POS cash-out and cash-in services, fund transfers, balance inquiries, bills payment and account opening with electronic know-your-customer (eKYC) and issuance of LandBank agent banking cards. LandBank said it has also partnered with a total of 645 POS cash-out only agent banking cards as of end-May 2021, utilizing 959 terminals deployed in 130 unbanked municipalities and 829 underserved municipalities or those without a LandBank branch. These POS devices allow cash-out transactions not only for LandBank-issued cards but also for other participating BancNet ATM cards. From January to May 2021, a total of 1,665,112 cash-out transactions amounting to P8.19 billion were facilitated by LandBank’s ABPs. These represent increases of 4.5 percent and 11 percent year-on-year for volume of transactions and value, respectively, the bank said.

Banking technology

THE state-run bank said it also launched last May 12 the “Digital On-Boarding System Mobile,” or DOBS Mobile, which facilitates online savings account opening anytime, anywhere, in as fast as 10 minutes to 15 minutes—free-of-charge and with no initial deposit requirement—without the need to visit a LandBank branch. Powered by Artificial Intelligence, the LandBank said the DOBS Mobile allows interested clients to fill out application forms online, take a “selfie” and upload a valid identification card through the bank’s mobile banking app on their mobile device. This eliminates the need to visit and line up in branches to open an account and support the government’s health protocols during this pandemic.

HE Bureau of Internal Revenue (BIR) said it will be slapping a 12-percent valueadded tax on certain sales of goods and services previously subjected to zero-percent VAT. The BIR said in its Revenue Regulation (RR) 9-2021 that certain transactions that were previously taxed at zero rate are now subjected to 12 percent VAT after the conditions under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (Train) law “have been fully satisfied.” BIR Commissioner Caesar R. Dulay and Finance Secretary Carlos G. Dominguez III signed RR 9-2021, which was released on June 11, 2021. The new RR is set to take effect 15 days following publication in leading newspapers of general circulation. The following transactions considered as export sale that would be

slapped with a 12 percent VAT would now include sales of raw materials or packaging materials to a non-resident buyer for delivery to a resident local export-oriented enterprise to be used in manufacturing, processing, packing, or repacking in the Philippines of the said buyer’s goods and paid for in acceptable foreign currency and accounted for in accordance with Bangko Sentral ng Pilipinas’ (BSP) rules and regulations. Likewise, the sale of raw materials or packaging materials to export-oriented enterprise whose export sales exceed 70 percent of the total annual production would also be slapped with a 12-percent VAT. Also, those considered export sales under Executive Order 226, otherwise known as the Omnibus Investments Code of 1987, and other special laws, would no longer enjoy a zero-percent VAT.

The processing, manufacturing, or repacking goods for other persons doing business outside the Philippines, which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with BSP’s rules and regulations, would also be subjected to a 12-percent VAT after the BIR order takes effect. No longer zero-rated would be services performed by subcontractors and/or contractors in processing, converting or manufacturing goods for an enterprise whose export sales exceed 70 percent of the total annual production. Under the TRAIN law, the imposition of 12-percent VAT on specific transactions previously taxed under zero rate is only allowed upon satisfaction of two main conditions. One condition is the successful establishment of an enhanced VAT refund

Perspectives Thriving in an AI world

HEN Covid-19 upended the world, businesses doubled down on digital transformation and raced ahead using artificial intelligence (AI) to meet new challenges. Now, according to our research, many organizations appear to be experiencing Covid-induced AI whiplash. While nearly half of the executives surveyed by KPMG LLP (KPMG) at the start of 2021 say that they are concerned that their overall industry may be moving too fast with AI adoption, nearly all wish their own organization would move even faster. Executives also harbor a nagging feeling that everyone else is doing better than they are. Nearly eight in 10 say AI is to help businesses is still more hype than reality, and nearly two-thirds believe the US is trailing other countries in taking advantage of the technology. Impossible contradictions? We see a coherent narrative behind these findings. Faced with a stark reminder of what is possible with AI—Covid-19 vaccines developed in record time, for example—it is natural for many executives to worry that their own organization may not be keeping pace. And trite as it may seem, it is worth remembering that the grass usually looks greener on the other side. Executives also may be forgiven for viewing AI as overhyped if, as is too often the case, their organization has taken a piecemeal approach to the technology, proving use cases here and there only to find that scaling them across the enterprise can be an order of magnitude more challenging. The hurdles can be especially high at organizations that have yet to lay the necessary groundwork for AI, from data mastery to cultural transformation. The good news is that AI’s promise is nonetheless becoming more real every day. Forty-three percent of executives say AI is fully functional at scale within their organization, and nearly all are confident AI could help their own industry address its biggest problems. Most are educating

their workforces about AI and the vast majority believes their employees have the skillsets needed for its adoption. This year’s second annual survey was created to help AI leaders across industries and functions see how their counterparts are using AI to solve major industry problems; identify AI-related pain points, risks and challenges by industry; and show where businesses are focusing their AI agencies in 2021 and beyond Along with these survey insights, we sought to provide pragmatic guidance on the path towards realizing AI’s promise. We believe that promise starts with a comprehensive data strategy; a robust AI platform, infrastructure and data pipeline; and a talented workforce with full-stack AI, digital and related skillsets - or an external partner who can provide those capabilities at scale. It includes employee up-skilling, cultural change and deep involvement by the business, not just IT. Ethical use of AI, and, as our survey respondents indicate, guidance from the government on how AI will be regulated going forward. Finally, it requires a commitment to a new reality in which speed and innovation are imperatives. Having seen what is possible with AI, we can never return to pre-Covid 19 pace of AI adoption.

The excerpt was taken from the KPMG Thought Leadership entitled “Thriving in an AI world.” © 2021 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG global organization of independent member-firms affiliated with KPMG International Ltd., a private English company limited by guarantee. All rights reserved. KPMG in the Philippines is hosting an Innovation Summit in July where industry technology leaders and KPMG experts from audit and assurance, tax and advisory fields, will share their insights and demonstrate the latest trends to guide organizations and keep them ahead of the competition. This event is spearheaded by KPMG in the Philippines’s Lighthouse Group. With over 12,500 professionals working across different regions, KPMG Lighthouse is a recognized Center for Excellence for data, analytics, cybersecurity, regulatory-driven transformation, intelligent automation and emerging technologies.

system that grants refunds of creditable input tax within 90 days from the filing of VAT refund application with BIR. The second condition is that all pending VAT-refund claims as of December 31, 2017 were fully paid in cash by December 31, 2019. According to RR 16-2005 and RR 13-2018, a zero-rated sale of goods or properties or services by a VAT-registered person is a taxable transaction for VAT purposes but this shall not result in any output tax. However, the input tax on purchases of goods, properties, or services related to such zero-rated sale, shall be available as tax credit or refund. On the other hand, VAT-exempt transactions refer to the sale of goods and/or services and the use of lease of properties that is not subject to VAT (output tax) and the seller is not allowed any tax credit of VAT (input tax) on purchases. Bernadette D. Nicolas

Insurer notes ‘strong’ first trimester results

HE Insular Life Assurance Co. Ltd. announced last week that “the first trimester bodes well” after the insurer said it saw its insurance operation record phenomenal growth in all its business lines including agency distribution, corporate solutions and bancassurance channels. “Our sales metrics are very encouraging. Our first trimester results are giving us double digit growth in agency and group sales,” a statement quoted Raoul E. Littaua, who was recently promoted as president & CEO following a 2-year stint as head of agency distribution and bancassurance channel. The insurer said that during the first four months of the year, its overall first-year premium (FYP) soared 182 percent versus LITTAUA 2020. New business policies issued have likewise jumped 48 percent and corporate sales up 11 percent. “Our bancassurance performance has gone through the roof in the first five months of 2021 registering 499 percent growth in FYP as compared to last year,” Littaua said. “In terms of APE, this is equivalent to 332 percent on the heels of a 316-percent growth in policy count.” The company said its strong performance could be attributed to the increase in new policies and premiums from January to April.

The company also grew its agency force at the start of the year with the onboarding of new agencies and agents. “Our agency force, particularly in the Visayas and Mindanao regions also delivered a strong performance during the first trimester of the year,” Littaua said. The newly-minted Insular Life chief executive expressed confidence that this upward trajectory will continue for the rest of the year. Littaua also said the company is “on track to a big bounce forward after taking a hit from the effects of the pandemic last year.” “W hile the company has made extensive investment in industry-leading technology and digital readiness even before the pandemic struck, the priority was, and continues to be, the safety and well-being of our people,” he said. Littaua said the firm’s financial advisers “have adjusted well” this year. “They are maximizing our digital end-to-end platforms while learning to co-exist with the virus for the time being. And it has had a ripple effect,” he added. “By taking care of our own people, we have become an attractive destination for both seasoned and high potential FAs aside from prominent business partners.”

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Dispersed teams succeed fast, fail slow

By Marie Louise Mors & David M. Waguespack

The benefits of dispersed teamwork are well-documented. There’s plenty of research to show that bringing together teams across organizational or geographic boundaries allows companies to leverage diversity in people’s backgrounds, attitudes and capabilities. This diversity promotes improvement, creativity and innovation. Yet the same research has also recognized that communication problems, cultural misunderstandings or disagreements about when and where to meet may lead to coordination costs. In an effort to find out whether and under what circumstances the benefits of team dispersion would outweigh the costs, we examined 5,250 teams in an online community, many of which were distributed across different organizations and geography. The members of this community work for a variety of organizations, including large organizations like Microsoft and Cisco, and the teams we studied had voluntarily come together to work on establishing standards for the internet. The results of our study were surprising: We found that dispersed teams were more efficient than nondispersed teams, but only when the outcome of the project was successful. Conversely, co-located teams were quicker to abandon failing projects but were less efficient in working on projects that did succeed. In general, dispersed teams spent less time and went through fewer iterations before reaching success than the co-located teams. This suggests that team members are aware that it’s difficult to coordinate when people are located in different organizations or when they have to coordinate across geographic boundaries. So if the teams themselves choose when it’s worthwhile to work across boundaries, they are

likely to do so only on projects that they believe will be successful, and they will work harder to achieve success. In contrast, co-located teams don’t need to make an extra coordination effort to complete their project. They have fewer incentives to work efficiently. They may also be more willing to take a risk in selecting a project, as they will perceive lower coordination costs going into it. We also found that co-located teams moved on from failing projects more quickly than dispersed teams, which kept working for a longer period before giving up. This might be because dispersed teams feel more committed to what they believe to be good ideas or think that their superior team will overcome any hurdles. We also observed that dispersed teams invested more effort in projects early in the process, which could be making them prey to the sunk cost fallacy and risking an escalation of commitment. Studies also suggest that dispersed team members may find it more difficult to communicate around a failure or reach agreement on when it is time to abandon a project. In contrast, co-located teams may find it easier to meet up to discuss the progress of a project and agree when it is time to let it go. It may also be easier for nondispersed teams to get started on new projects, so they may be less reluctant to abandon failing projects. Research in entrepreneurship has shown the benefits of encouraging teams to take risk and embrace so-called fast failures, where teams fail often and quickly in order to learn. Our study suggests a qualifier to this recommendation: If teams are dispersed, they may not be very good at failing fast. And when dispersed teams hold on to failing projects, it is costly: When involved team members are un-

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ver the past year, we have all become used to working in dispersed teams. But now that it’s becoming possible to go back to the office and work side by side with colleagues, it’s natural to ask how much we will do so.

able to learn and move on quickly, they consume resources that could be freed up for investment in other projects. In other words, the real costs of dispersed teams lie with the failing projects that the teams are reluctant to abandon. So how can companies limit the costs of failure in dispersed teams? Dispersed teams may need help identifying upfront which projects are more likely to succeed or fail. Putting in place better coordination mechanisms may also help dispersed teams reach agreement on when it is time to abandon a project. Failing this, management may have to step in. In particular, the following interventions should be considered:

1. Screening: Dispersed teams may need support to ensure that they commit to projects that are really more likely to succeed. Actions to take could include scenario and risk planning, presenting ideas to colleagues or management before committing to projects, or putting in place situations that allow teams to seek critical input upfront. Such conversations may also make team members more open

to the fact that the project can fail and therefore leave them more ready to give up if it does.

2. Synchronous working: When dispersed teams coordinate across time zones, they often structure tasks so that they work on the projects at different times. This makes it simple—and when things go well, also efficient—to get the work done, but it also generates little opportunity for communication when work is actually done. And so discussions of problems that indicate that the project is failing likely get delayed. Dispersed teams may therefore need to put in place mechanisms whereby work is done on the projects with some overlap in time to allow for synchronous conversations. 3. Management intervention: Managers need to follow up more closely with dispersed teams than with co-located ones in order to ensure that progress is made and to look for indicators of when projects start to fail. Dispersed teams may also need more help in abandoning projects when they start to fail. With intervention at

Stop sabotaging your work force E

By Steve Glaveski

ighty-five percent of employees aren’t engaged at work, according to Gallup. Misalignments between strengths and values, lack of personal development, command-and-control management, shallow-level work and change-resistant cultures all play a part in employee disengagement. And this was before the pandemic forced more than half of the world’s highly skilled workers to go remote, where the physical disconnect can further deteriorate engagement. With the lines between work and home becoming more blurred, people have been working longer hours, despite the fact that “three to four hours of continuous, undisturbed deep work each day is all it takes to see a transformational change in our productivity and our lives,” according to Cal Newport, author of Deep Work: Rules for Focused Success in a Distracted World. Our great work-from-home experiment can offer us an opportunity to revisit how we work and design a better way.

Asynchronous communication

Matt Mullenweg, CEO of Automattic—the company that powers 35% of the world’s websites—knows a thing or two about remote work. His team of 1,170 employees is completely distributed. To make a remote workforce function smoothly, Mullenweg stresses the importance of asynchronous communication—getting back to people when it suits us rather than

in real time. That’s because when we’re able to move away from hyper-responsiveness, we create cultures built around written communication. This helps knowledge workers make more time for deep, meaningful work. Most newly remote organizations, however, are simply recreating the office online, with a constant barrage of emails, instant messages and back-to-back calls. Here are some ways in which managers can change that dynamic: n Value focus and outcomes above responsiveness; n Encourage employees to send instant messages and emails in batches; n Where possible, default to written communication instead of meetings.

Minimum viable processes

In his famous 1997 Amazon shareholder letter, Jeff Bezos wrote how there are two types of decisions: Type 1 and Type 2. Type 1 decisions are high stakes, costly and irreversible. Type 2 decisions are low cost and reversible. Most decisions are Type 2 decisions, and should be made quickly, but when we treat almost all decisions as Type 1 decisions, our cadence grinds to a halt. This tendency is encoded in many governance procedures, such as delegations of authority and approvals, which mitigate Type 2 mistakes at the expense of long-term growth. For example, the Singaporean company SingTel has made myriad big and bold bets, such as the acquisition of numerous startups, which ultimately failed due to Type

2 decisions around the management and operations of its acquisitions. Most recently, its videostreaming service Hooq was liquidated after suffering losses of U.S. $62.5 million. As Melissa Goh noted for TechinAsia, “the company has stringent approval processes in place to avoid costly mistakes—which, considering everything that has happened, is quite ironic.” How can managers avoid such costly mistakes in the future? Here are some suggestions: n Empower employees to make Type 2 decisions on their own; n Scale back key processes to the minimum level required to support both innovation and risk management; n Decrease both the number of steps required to get things done and the frequency of report submissions and meetings.

Self development

As I previously wrote for Harvard Business Review, the professional learning and development system is broken because it focuses on continuous professional education credits rather than on learning what can help us excel in our roles. Much of what we are taught is useless and quickly forgotten. As Daniel Pink wrote in Drive: The Surprising Truth About What Motivates Us, master y is a key driver of intrinsic motivation: If people don’t feel that they are learning anything of value at work, they’re likely to become disgruntled and search for greener pastures elsewhere.

To avoid that:

n Give people the opportunity to learn

skills that matter to them and their role today, rather than rolling out mandatory general courses; n Give people the opportunity to learn about topics of their own choosing that can position them to take advantage of future opportunities.

Values alignment

A key tenet of happiness is living in accordance with our values. This is why it's imperative for every company to hire people who are aligned with mission and culture. As Brad Stulberg, author of its Peak Performance, puts it, purpose is the world’s greatest performance enhancer. The data backs this: Deloitte reports that purpose-led companies have a 40% higher level of employee retention. Start by defining organizational values that mean something—above and beyond the generic integrity, trust and teamwork—and by hiring people who both share these core values. This will ensure you are surrounded by employees who truly believe in the mission of the organization.

Strengths alignment

It’s noble to address our weaknesses, but we each have our own dispositions toward excelling in certain areas. As Tom Rath, author of Strengths-Based Leadership, puts it, great leaders know their strengths. And Gallup Research found that we are six times more likely to be engaged at work

the right time, fast failures for dispersed teams can unfold so that resources are freed up quickly and can be redeployed on new projects. When it comes to co-located teams, management may need to pay attention to what projects are started, so as not to waste resources on projects with little potential. As managers contemplate the lessons from the giant experiment in dispersed working that the pandemic imposed, they need to examine critically just what worked and what didn’t. They should also remember that co-location and dispersion need not be mutually exclusive. Parts of a project may require co-location, while other components may not. Whatever the overall design, though, project managers need to ensure that the weaknesses of both working modes are properly addressed. Marie Louise Mors is a professor of strategic and international management at the Copenhagen Business School. David M. Waguespack is associate professor of management & organization at the Robert H. Smith School of Business & Ed Snider Center at the University of Maryland.

when we play to our strengths, and three times more likely to report an excellent quality of life. This is why you should seek to design roles keeping strength alignment in mind: It not only sets people up for immediate success, but also creates a motivating positive feedback loop. Automate and outsource any rudimentary, process-oriented functions to liberate time so people can apply their best selves.

Implementing change

Rather than setting up another committee and prompting a collective eye roll in your organization, take action to align your work force for a productive future. Get buy-in from decision-makers by framing changes around cost savings and employee retention. Designate one or several small projects to test these organizational changes. Use early successes to generate belief and genuine interest throughout the organization. Share what you learn with other teams, and continue to build upon the momentum. As Isaac Newton’s first law of motion states, an object in motion stays in motion. High-performance cultures not only bring out the best in our people, but attract the best people to the fold, giving organizations a significant competitive advantage. It’s time to stop sabotaging our organizations and people and start serving them. Steve Glaveski is author of Time Rich: Do Your Best Work, Live Your Best Life.

Style

BusinessMirror

www.businessmirror.com.ph

SKECHERS GOwalk 5 Jet Set

SKECHERS On The Go 600 Flawless

SPICE UP YOUR SUMMER WITH THESE SANDALS IF there’s a closet essential that every woman must have for summer, it’s sandals. They’re cool, comfortable, easy to slip on, and a total no-brainer when it comes to styling because they go with everything. So, whether you’re out on the street (for essentials only, we hope), going for your daily walk, or on a relaxing trip to the beach, you’re going to want these pairs from Skechers. Plus, it’s the perfect time to shop as Skechers is currently offering a buy-1-take-1-free promo on selected sandal styles and more available online, all their Skechers stores and major department stores nationwide. Minimalist fashion is making a comeback in fashion and we’re all for it. Camisole dresses, boxy crop tops, and loose monochromatic ensembles are popping up everywhere as the shift toward comfort dressing becomes the norm. If you want to channel your inner domestic diva, best you complete your ensemble with the Skechers GOwalk 5 Jet Set in Nat. This neutral colorway evokes simplicity but certainly does not lack in functionality. With its lightweight, responsive Ultra Goga cushioning, going about your everyday errands feels easier with these on. For any gal-on-the-go, a utilitarian sandal is a definite closet must-have and Skechers GOwalk 5 Jet Set in Black certainly gets the job done. If the little black dress is the go-to for any lastminute outing, then the little black sandal is there to complete that look. Style it casually or a bit dressy, this sandal will be your next wardrobe workhorse. Its Comfort Pillar Technology underfoot reacts to your every step for the ultimate comfort experience. More information can be found at www.skechers. com.ph.

Editor: Gerard S. Ramos

• Monday, June 14, 2021

Pride 2021: ‘Gender Mysterious’ CLOCKWISE: Pose with Sandra Bernhard, MJ Rodriguez and an extra playing a lesbian activist (FX); Jiggly Caliente as Jubilee by @artbycheyne; Jose Piñas (@joxepinas); Etcetera Etcetera (@etceteraetcetera); Omar Ayuso by @gorkapostigo; Bretman Rock (@bretmanrock); Spice Girls (@victoriabeckham); and In Between stars Migs Villasis and Genesis Redido (@stephencapuchino @blinbetween)

ERE’S the T: “[LGBT] Pride was not born of a need to celebrate being [LGBT], but our right to exist without persecution [and prosecution]. So instead of wondering why there isn’t a Straight Pride, be thankful that you don’t need one.” “‘We can disagree and still be friends’ doesn’t apply to racism, sexism, homophobia or transphobia.” And: “Remember before you make homophobic comments via your computer that you have to thank Alan Turing, a gay man, for your computer.” ■ ‘POSE’: The groundbreaking, aspirational and uplifting series that showcased a Black and Afro-Latin queer and transgender cast recently ended its threeseason run. Standouts: Pray Tell (Billy Porter) had his Annalise Keating Moment (slow removal of makeup in close-up), the AIDS Memorial Quilt, paying homage and throwing shade at Sex and the City, Blanca (Emmy nomination? she deserves), and Pray lip syncing to Diana Ross’ “Ain’t No Mountain High Enough,” and ACT UP and the women and lesbians who fought medical racism and inequity. The Filipino connection? Leyna Bloom as Pretentia and Jiggly Caliente aka Bianca Castro as Veronica of the House of Ferocity. ■ JIGGLY CALIENTE: The self-proclaimed Pinay plussized Barbie from New York is competing at RuPaul’s Drag Race All Stars 6 after a dismal time at Season 4. “Second chances are paramount, and I’m ready to rise to the runway! This is for every lil brown specially the brown Asian kids that are taught your skin tone isn’t beautiful. To my juicy kids that are told your weight isn’t attractive. You are beautiful and more than. I’m standing here proud of my skin ‘n weight. Stand tall in all your glory.” ■ BRETMAN ROCK: “Strength has no gender! It’s measured from within. I’m so excited to announce that I’m one of @nike faces for their #betrue campaign this year, truly such an honor to be seen and heard from Nike, it’s so surreal. You will accept us— actually idgaf if u do but you will respect us and most importantly you will tip the Drag Queens.” ■ ETCETERA ETCETERA: Drag Race Down Under is another level of campy spectacle. This brash “nonbinary finery” contender, exiting at seventh place, is not only “the future of drag” but also “the future of the human race.” She talked openly about about gender in the show to www.nine.com. au: “Especially in Australia, we have a culture of toxic masculinity, but also toxic femininity...just toxic gender culture! I’m glad to be someone with an Australian accent coming out saying, ‘Hey, even though we’re all tough and rough Down Under and drinking VB, it doesn’t make you any less powerful to admit you exist in a liminal space of gender identity.’

It doesn’t mean weakness, and you can be Australian and question your gender identity.” (See also Inti, the nonbinary indigenous stunner at Drag Race España.) ■ #LAROPANOTIENEGENERO: Math teacher Jose Piñas wore a skirt to school to support 15-year-old student Mikel Gómez, who was punished by his school for wearing the clothing in October last year. The teen explained (in a Tiktok video, of course) that he wore the skirt to challenge gender norms and support women’s liberation. This sparked a movement across Spain, called Clothes Have No Gender (#laropanotienegenero). “Twenty years ago I suffered persecution and insults for my sexual orientation in the institute where I am now a teacher,” Piñas tweeted. “Many teachers, they looked the other way. I want to join the cause of the student, Mikel, who has been expelled and sent to the psychologist for going to class with a skirt.” ■ ‘IN BETWEEN’: Before his boys love (BL) series premiered on YouTube last year, Genesis Redido, a rough and raw Aga Muhlach proudly declared: “I was born in a society in which one’s gender identity defines worth and power—a long-standing issue that affects us all, but not many of us are even aware that it exists. It is never too late to make a change; it

won’t be easy, but it can be done. This is your chance to take a stand and to have a voice in our society. I am an ally.” ■ ‘ELITE’S’ OMAR AYUSO. The Gossip Girl reboot, Mare of Easttown, Euphoria, Sex Education and Normal People have striking queer teen characters. The Spanish series Elite has the steamiest couple: Ander (Arón Piper) and Omar (Omar Ayuso). The openly gay Ayuso was tapped by Calvin Klein for its latest #proudinmycalvins campaign. He wrote of his coming out in 2013: “When I told my mother...I thought she would be shocked and make some big scene. She said, ‘Ok, I’ll get some tickets for The Sound of Music.’” ■ SPICE GIRLS: Posh Spice Victoria Beckham shared the Girls’s Pride and Wannabe Your Lover T-shirt, which benefits the @aktcharity, which works to combat LGBQT+ youth homelessness in the UK. “Pride to me is a celebration of being completely yourself and this year’s T-shirt is a reminder of that. The Spice Girls really championed accepting yourself and others, being kind, having fun and just living your best life! The LGBTQ+ community is so close to my heart and I’m so proud to be supporting Pride 2021 with the girls and akt again this year.” ■

Marian Rivera renews partnership with brand she calls home to call Rei a sister and I am honored to represent Beautéderm Home,” said Marian.

THERE is no doubt Marian Rivera Dantes is one of Philippine showbiz’s most beautiful faces, and being a wife to actor Dingdong Dantes and mom to two beautiful kids have not changed that. If anything, her new roles in life have only made her more beautiful and, in a way, more relatable. Like many moms in the country, Marian has stayed at home since the pandemic, choosing to take care of her family instead of working on new dramas and movies. She works at home when she can, taking on new endorsements, ambassadorships and even appearing in a virtual stage play. Marian recently renewed her ambassadorship for the fourth straight year with Beautéderm Home (@beautedermcorporation on Instagram), for which she is the face of the Reverie line of all-natural soy candles, room and linen sprays, and air purifiers. Reverie is a play on Marian’s maiden name, the name of Beautéderm Corp. President and CEO Rhea Anicoche Tan, and the concept of the brand’s desired effect to its users—“to drift away, dream and relax while basking in the extraordinary, sweet and beauteful scents of love of Beautederm Home.” The Reverie line of Beautederm Home includes Into The Woods (Bamboo Scent), Smells Like Candy (Cherry Scent), Time To Bloom (Fresh Rose Scent), Something Minty

(Eucalyptus Scent), and Rest & Relaxation (Lavender Scent), as well as two brand-new scents, namely, Matcha to Love and Take Me Away, all created—from formulation to individual packaging—in very close collaboration with Marian. “Marian and I have developed a very close friendship over the years since she first joined the family as brand ambassador of Beautéderm Home. Our relationship transcends business as we treat each other as sisters. We regularly talk to each other not just about work but about updates in our personal lives, as well,” said Tan. “We are really like family. Rei [Rhea] has been a

very good and supportive friend to me and I value our loving relationship very much. Beautéderm Home has been part of our daily essentials in maintaining a refreshing and relaxing ambience at home that I can really relax in with my husband and my children,” said Marian. Tan and Marian are currently collaborating in developing exciting new products under the Beautéderm Home line which are expected to be launched within the year as part of the brand’s celebration of its 12th year in the business. “It’s really a blessing to find true and lasting friendship in this industry, and I will always be happy

DO JADE ROLLERS AND GUA SHAS REALLY WORK? YOU can find gua shas and jade rollers everywhere— from Amazon to Shopee and Lazada. They cost anywhere from a hundred pesos to thousands. They were a big trend years ago and have come back in the past year as more people got into skin care. The origin of jade rolling on the face is China, where jade is a treasured stone because of its healing properties. The stone is also believed to bring people luck. The cold touch of the stone can help address inflammation on the face. Using jade rollers after you’ve applied your skin-care products also helps active ingredients penetrate the skin. For instance, if you are using an essence and then a serum before applying moisturizer, it can help if you use a jade roller in between the steps. A gua sha is also used by aestheticians for lymphatic massage. The thing is that for de-puffing the face, you’d need to spend at least 30 minutes on it before it actually works. The effect is also temporary. What is the difference between the two? Jade rollers promote blood circulation and lymphatic drainage, reduce puffiness and skin inflammation of skin and relieve facial and jaw tension. Gua shas also do the same thing plus they are believed to—with consistent use—have a lifting and contouring effect. Here’s the thing though: gua shas and jade rollers can actually work with consistent use (some experts recommend using them twice a day) if they are made of real jade. How do you know if they are genuine or fake jade? Anything that costs P500 and below is likely to be fake. Jade is a semi-precious stone. The price range depends on the quality of the stone used.

B6 Monday, June14, 2021

Cisco helps customers be Cloud Smart to deliver exceptional digital experiences complexity of managing hybrid and multicloud deployments.

Observability and Insights:

KARRIE Ilagan

ISCO (NASDAQ: CSCO) announced new ways it is helping customers accelerate digital transformations as they move more resources to the cloud. The hyper-connected, distributed world we live in now relies on cloud more than ever, and IT teams are facing challenges to provide people with optimal digital experiences wherever and whenever they need access. As a result, businesses are migrating to a cloud-driven operational model based on speed, insight and control to bridge the greater distribution of applications, users and tech staff. “The future of work is hybrid, but in the Philippines, that is already happening now,” said Karrie Ilagan, Managing Director of Cisco Philippines. “With lockdowns still in place, technology has become a necessity for organizations to be as agile and flexible for their distributed workforce to succeed, which can only be delivered through a cloud-first environment.”

Enabling Customers to Realize Better Outcomes from the Cloud

CISCO has made multi-billion-dollar investments over the past six years to build cloud into every aspect of its business, focusing on helping customers build complete cloud strategies with confidence across five key areas: Continuity, Insights, Security, Connectivity and Operations. During the company’s ‘Future Cloud’ event, Cisco showcased how it is advancing its cloud strategy across several of these areas to help businesses connect, secure and automate to deliver seamless digital experiences in today’s hybrid cloud world. “Today, a simple, intuitive user experience is how to achieve success in a digital world,” said Todd Nightingale, SVP and GM, Cisco Enterprise Networking and Cloud. “We are focused on helping our customers be cloud smart to advance their digital operating models to securely deliver new types of apps that live across on-prem, multiple clouds and

TODD Nightingale the edge. From infrastructure teams to the app developers, only Cisco can provide the level of observability and insight they need to orchestrate and manage applications and workloads no matter where they reside.” The new hybrid cloud innovations announced include:

Hybrid Cloud Operations:

INTRODUCING the new Cisco UCS® X-Series: Cisco’s Unified Computing System (UCS) is used in data centers by more than 50,000 customers worldwide. Fully integrated with Cisco Intersight, UCS X-Series is a first-of-its kind system designed for hybrid operations from the cloud and across the clouds. Blending the best of rack and blade systems and featuring revolutionary UCS X-Fabric technology, it’s built for workload versatility today and comes future-ready for the next decade of industry innovation in processors, accelerators and computing interconnects. Intersight Cloud Orchestrator: Provides a low-code, easy-to-use automation framework that simplifies complex workflows, so IT Ops can easily orchestrate infrastructure and workloads and accelerate delivery of services. Intersight Workload Engine: A powerful platform for modern, cloud native workloads. Builtonanopen-sourceKubernetesandKernelbased virtual machine (KVM) foundation using container-native virtualization, Intersight Workload Engine is a Cisco operating system for Hyperflex, featuring consistent SaaS management. Cisco Service Mesh Manager: A new extension to the Intersight Kubernetes Service, bringing deep observability and simplified management with policy-based security and intuitive visualization of services topologies across K8’s clusters on-prem and in the cloud. Cisco Cloud ACI: Available on AWS, Azure and now on Google Cloud with general availability in the Fall of 2021. The Cloud ACI common policy and operating model drastically reduces the cost and

INTEGRATION of ThousandEyes internet and cloud intelligence with the Cisco Catalyst 8000 Edge Series for SDWAN and Cisco Nexus 9000 switches for data centers to provide customers with valuable insights on network health and application performance, monitoring across campus, branch, data centers and every point of the WAN network between the user and applications. Intersight Cloud Orchestrator: Provides a low-code, easy-to-use framework to create and automate complex workflows so IT Ops can easily orchestrate infrastructure and workloads and accelerate delivery of services.

Industry Response:

“AS organizations increasingly rely on cloud applications sitting in multiple clouds, operating these hybrid IT environments becomes overwhelmingly complex. IT teams must monitor and optimize application experiences, working alongside developers. IT executives should view Cisco’s latest hybrid cloud innovations as a bold effort to position the company as a cloud-neutral enabler for businesses and addressing customers' challenges by providing hybrid cloud solutions that help make it easier to execute their cloud strategies.” — Stephen Elliot, Program Vice President, I&O, Cloud Operations, and DevOps, IDC “KBR takes a cloud-agnostic view for our customers and our own internal IT operations, ensuring that we place workloads in clouds where it makes the most sense for the customer, our business and the bottom line. Cisco’s new hybrid cloud innovations align closely with our views on cloud, our goals for IT automation, monitoring, infrastructure modernization, and elevating our sustainability with smaller carbon footprints.” — Jeff Hawks, KBR Information Technology, Director of Compute and Communications “Kaleida Health counts on Cisco for critical hybrid cloud technologies to help deliver high-quality care to patients, and to provide secure network access to electronic medical records, telehealth and other applications across nearly 80 sites. The latest innovations from Cisco, including UCS X Series, Cisco Intersight, Nexus Dashboard, and Nexus 9000 and ACI, will enable us to accelerate our digital initiatives as we expand to the cloud for elastic capacity and build a common operating model across our hybrid cloud environment.” — Tom Hull, CIO, Kaleida Heath

Treat Dad to meaty, sumptuous feast from Richmonde Hotels this Father’s Day

Richmonde Hotel Ortigas

IVE dad an indulgent treat this Father’s Day and throw a delightful home celebration complete with a sumptuous feast of assorted flavorful meats lovingly prepared by the kitchen teams of Richmonde Hotels.

Eastwood Richmonde Hotel

GO all in and serve up a delectable assortment of tasty meats for dad when you order Eastwood Café+Bar’s ALL MEAT PLATTER HOTBOX. With generous servings of bacon-wrapped Wagyu beef, roast chicken, braised beef belly, mixed sausages, and mashed potatoes, this takeaway party tray can easily satisfy up to 3 or 4 persons. You can even enjoy it steaming hot with just a pull of a string with its innovative packaging. The All-Meat Platter Hotbox is priced at PhP 3,950 nett and if dad wants wine with his meat, you can add a bottle of Barefoot Cabernet Sauvignon or Barefoot Moscato for only PhP 500. As an added treat for dad, get the chance to give him a bottle of Barefoot Moscato White Wine, a PikNik snack pouch, and a souvenir bag from Emperador Distillers Inc. all for free if you are one of the

first 15 customers to order for Father’s Day. This platter hotbox is available the whole month of June for pickup or delivery. Eastwood Richmonde can arrange for delivery within Metro Manila at a nominal fee but if you reside within the Eastwood City township, delivery is free. One day lead time is required for orders. For inquiries and advance orders, call +632 8570 7777 or +63 917 821 0333.

THE big man of the house deserves a hearty meal of tender meats on his special day. Order Richmonde Hotel Ortigas’ special FATHER’S DAY HOTBOX PLATTER and give dad a man-sized serving that’s perfect for his big appetite and is still good for sharing with the rest of the family. Let dad relish a variety of meaty dishes like Sangiovese braised beef short ribs, duxelles stuffed pork tenderloin, kielbasa, and brats packed in a selfheating box that makes food warming fast and easy. The Father’s Day Hotbox Platter is priced at PhP 2,800 nett and is good for 3 to 4 persons. To enjoy this meaty meal with red wine, just add PhP 500 and get a bottle of Gallo Merlot. This special family takeaway meal is available until June 30, 2021 for pickup and delivery within Metro Manila. Delivery is free within San Miguel Avenue, Pearl Drive, and Escriva. One day lead time is required. For inquires and pre-orders, call +632 8638 7777 or +63 917 534 4352.

TOYOTA EXTENDS AID TO SANTA ROSA CITY RESIDENTS. In its continuing support to the local community, Toyota Motor Philippines Foundation (TMPF) recently donated sacks of rice and grocery packages to indigent families whose livelihood is hampered by the consequences of COVID-19 pandemic in Santa Rosa City, Laguna. Among the beneficiaries are the 225 resident families in Barangay Pulong Santa Cruz, 108 faculty members and personnel of Pulong Santa Cruz Elementary School (PSCES), 158 families in the Toyota-City of Santa Rosa-Gawad Kalinga Village, and frontliners of the PNP Santa Rosa Sub-station. So far this year, TMPF has turned over 69 sacks of rice and 158 grocery bags to families and individuals. Being located within the 'NCR Plus' bubble, residents of Santa Rosa City, Laguna continue to endure maintained community restrictions and limited economic activities. TMPF, the humanitarian arm of Toyota Motor Philippines Corporation (TMP), supports the local government of Santa Rosa in its COVID-19 response through various corporate social responsibility initiatives to address basic needs in terms of health, safety, education and mobility. In photo is TMPF assistant vice president and operations manager Ronald Gaspar (fourth from left) during the turnover of grocery packages to representatives of Toyota-City of Santa Rosa-Gawad Kalinga Village.

P12 fuel, food, and more: The Limitless Freedom Sale

O celebrate its first annivesary, and the Philippine Independence Day, lifestyle rewards program LIMITLESS is offering non-expiring e-vouchers worth P500 and P100 for only P12 each. Celebrating both its first anniversary and the Philippine Independence Day, lifestyle rewards program Limitless is holding a oneday-only sale this June 12, 2021, offering e-vouchers for only P12 each. Applicable towards purchases for Phoenix fuels, Phoenix super LPG, Phoenix lubricants, FamilyMart, and Autoworx Plus, P100 and P500 e-vouchers will be on sale exclusively on the Limitless app. “The Limitless Freedom Sale is a celebration of the first anniversary of our brand, and, of course, a commemorative offering for the Philippine Independence Day. Last year, we launched the brand in the middle of the pandemic, and have been consistently offering perks and rewards to our members as we go through such an unusual time. Now, we offer even more value with this special online event,” said LIMITLESS brand manager Kenneth Ocampo. During the sale, customers may purchase as many vouchers as they want, however, only five pieces per voucher type will be allowed for every check-out. The vouchers, which can be used anytime, can be used by having the QR code scanned during transactions at Phoenix stations, Phoenix Super LPG Hubs, FamilyMart stores, and Autoworx Plus shops. “These digital vouchers offer great value, especially now that we adapt better to the new normal. Customers can avail of big discounts online so there’s no need to queue anywhere. Also, since they don’t expire, the vouchers can be used anytime, and can

TO celebrate its first annivesary, and the Philippine Independence Day, lifestyle rewards program LIMITLESS is offering non-expiring e-vouchers worth P500 and P100 for only P12 each. even be forwarded as gifts, said Phoenix Vice President for Integrated Marketing and Strategies Celina Matias. “We at Phoenix are glad to be part of this innovative sale as we find more ways to become an indispensable partner to Filipinos,” she added. Since it was launched last year, Limitless has held several promos and offers, including an online sale last December, which treated members to vouchers at 80% discount. Recently, it partnered with Coca-Cola for the #ShareLIMITLESSJoy campaign, which rewarded its members with Coke products for valid purchases. Aside from exclusive discounts and promos, LIMITLESS also offers rewards through points, which can be applied towards future purchases at partner merchants. It now has over 119,000 members nationwide, and a similarly growing network of partners. The app can be downloaded for free on the Apple App Store, Google Play Store, and Huawei App Gallery.

Happy client grateful for good deed, honesty of SM Lucena security personnel

SECURITY personnel of SM City Lucena again exhibited inherent honesty, much to the relief of the concerned client who forgot her wallet inside a mall tenant’s table. Lady Guard Liezl Satoya from Defense Security Agency Inc., detailed at the mall’s Entrance 4 noticed on Monday at 7.20 PM a Coach wallet lying on top of a table inside Buffalo Wings restaurant. She picked up the wallet and immediately turned it over at the Customer Relations Services office.

Upon checking, the wallet contains receipts, Watson’s card, LBC card and cash amounting to P3,259 and owned by a resident of Barangay Mayao Crossing, Lucena City. CRS officer Dexter Gadot contacted and reached the owner through her FB Messenger account and informed her about her found belonging. At 7:45 PM, the owner came to CRS office to claim her wallet, thanking Ms. Satoya and the SM Lucena’s security management for their thoughtfulness.

Marketing BusinessMirror

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Monday, June 14, 2021 B7

Brand affinity and the Jollibee effect U

PR Matters

By Abigail L. Ho-Torres

Cultural icon

JOLLIBEE is one of the country’s most recognizable cultural icons—so much so that foreigners visiting the country for the first time often include sampling some Jollibee fare in their itineraries. Even the late American chef, best-selling author, and TV personality Anthony Bourdain had his own Jollibee moments, featuring the fastfood chain twice, three years apart, on his food and travel documentary series Parts Unknown. He called Jollibee “the wackiest, jolliest place on Earth.” As iconic as the golden arches of global fast-food giant McDonald’s are, the adorable bee has been able to hold its own, especially in the Philippines and in places with a big Filipino population (and Filipinos are everywhere). Over the years, Jollibee has also gone global, fueled by demand from overseas Filipinos who miss the taste of home. Hark back to the days of your childhood, and you can surely recall a fond Jollibee memory or two. I have my share of Jollibee memories from different periods of my life: looking forward to days when my parents had extra money for a Jollibee lunch after a visit to Rizal Park; collecting toys and other Jollibee merchandise; enjoying Chickenjoy at least once a week for months with my choirmates—I have a loooong list. It’s safe to say that I have a strong affinity to the brand: a weird sort of relationship, as if with a childhood friend.

Brand affinity vs brand loyalty

AS consumers, we all have our preferred brands. We keep buying them because we feel that they give us the best value at a

People: Grab bolsters team to strengthen advertising capabilities in Southeast Asia

SINGA POR E— Grab, Southeast Asia’s leading superapp, announced the appointment of four media and technology industry veterans to its team to strengthen the technology, product and distribution capabilities of its advertising offerings. They will also broaden the presence of Grab’s advertising unit, GrabAds, across Southeast Asia to become a full-funnel advertising solutions provider that can help brands reach, engage and drive consumers to action at scale. “I am delighted to welcome David, Ashu, Margaret and Dave to the Grab team. With their wide-ranging expertise across advertising technology, product development and sales, I believe that they will strengthen our advertising capabilities and position GrabAds as an integrated

n The “not just me” response. This is not meant to point fingers or make excuses. The intent is to provide the public with more context and information about the incident— that it’s not unique to the brand, and it can happen to anyone.

NLESS you’ve been living under a rock, chances are you’ve already heard of the infamous “Toweljoy” incident. In gist: mom ordered some Jollibee Chickenjoy for her son, but instead got a hand towel masquerading as a piece of chicken, covered in glorious Chickenjoy batter and fried to golden perfection. If this had happened to any other brand —one that did not have a solid following and a strong affinity with its customers— the effects would have been devastating. While the incident drew a lot of negative comments and reactions, there also rose a groundswell of support from people who had good memories, happy memories, associated with the brand. Forgive me for not having any science to back up my research, but going through my Facebook feed alone, I saw a good number of friends’ posts recalling fond memories of and with Jollibee. While the Toweljoy incident is certainly a cause for concern, the love for the brand saw it through, and may even have momentarily bolstered demand for its products, especially the Chickenjoy.

full-funnel advertising solutions provider in Southeast Asia,” said Ken Mandel, Regional Managing Director and Head of GrabAds and Brand Insights. “Brands are continuously seeking creative ways to reach, engage and move consumers to action, and direct-to-consumer (DTC) platforms like Grab will be key in helping them find the right audiences. As Southeast Asia’s leading superapp, we have the ability to provide a unique entry point for brands to connect with consumers who transact frequently on the platform through GrabAds, and drive them to action using our rich first-party data from across transport, delivery and financial services. We believe there’s tremendous potential for brands to partner with us to unlock new consumer experiences on our platform and drive business impact online and offline,” added Mandel. David Baser joins Grab as Head of Advertising & Personalisation Technology. He will lead the company’s efforts to build technology capabilities that help people discover, engage, and connect with businesses across Southeast Asia. Formerly from Facebook, he was instrumen-

n Inoculation. Much like how a vaccine works, this entails releasing small bits of negative information ahead of an expected blow-up of an issue. Frame your message to make it appear that the crisis is not as bad as what’s being depicted in the media. n The “yes, but...” response. Admit to the transgression, but explain the reasons behind it. Leave little room for the public to blame the brand entirely and think that the mistake was deliberate. n Rebuttal. If the brand is really not at fault, be ready with a persuasive rebuttal—one that does not sound defensive. Staying silent, because you did not commit any wrong anyway, might cast doubt on the brand’s innocence. n Vilify the accuser. Discredit the source of an accusation to decrease the credibility of a claim. But use this with caution, and only when you are being falsely accused of a wrongdoing.

price point that we feel is reasonable. We keep buying them because we’re used to them. We keep buying them because old habits are hard to break. This, right here, is brand loyalty. Is this the same as brand affinity? Sort of, but not quite. While sometimes used interchangeably, there are some key factors that place brand affinity a notch higher than brand loyalty in the marketing totem pole: shared values, relationships, emotional attachments. In an article published on the MIT Sloan Management Review, authors Gita Johar, Matthias Birk, and Sabine Einwiller noted how affinity to a brand—in particular customers’ identification with a brand—can help cushion the impact of negative events. “Customer identification is one of the best forms of insurance against the possibly devastating effects a crisis can have for an organization. Identified customers show loyalty to their brand, share values with it, and feel emotionally attached to it,” the article stated. “However, if a transgression is very severe, identification might not buffer against the ill effects of a crisis, and the brand image takes a hit even among identified customers.”

They took to social media to post about their experiences as Jollibee crew members. Some recalled their first encounters with the brand, as little children tasting the ohso-sweet Jolly Spaghetti and “crispylicious” Chickenjoy for the first time. Some recounted family meals of various Jollibee staples, in-store or at home. Others expressed support for the brand, creating memes and posting statements on their social-media accounts. Some even went out and bought some Chickenjoy and other Jollibee specialties, with cravings triggered by all that talk of fried chicken/fried towel.

The power of brand affinity

n Come clean. If the brand is really at fault, admit the mistake and apologize for it. Be transparent. Keeping things under wraps will do more harm than good in the long run.

PR Matters is a roundtable column by members of the local chapter of the United Kingdombased International Public Relations Association (Ipra), the world’s premier organization for PR professionals around the world. Abigail L. Ho-Torres is AVP and Head of Advocacy and Marketing of Maynilad Water Services Inc. She spent more than a decade as a business journalist before making the leap to the corporate world.

n Polish the halo. Bolster the brand image immediately following the crisis. Don’t make excuses for what happened. Highlight the good to deflect attention from the bad.

We are devoting a special column each month to answer our readers’ questions about public relations. Please send your questions or comments to askipraphil@gmail.com.

WHEN the Toweljoy incident happened, Jollibee did not suffer as much of a backlash because of the strong relationship that consumers had with the brand. In an interesting twist, after the incident went viral, people reached into their memory banks and brought back—surprise, surpris—fond memories of the brand.

tal in leading the social media company’s advertising offerings, including leading the launch of Instagram’s self-service ads product and growing the Facebook Pages platform to support business transactions. Beyond advertising, David is also an expert on the intersection of privacy and technology, having led Facebook’s implementation of GDPR as well as its privacy team. Ashu Mathura, formerly from Criteo, comes on board as Head of Product, Ads at Grab. He will be responsible for the product strategy and expansion of Grab’s suite of marketing solutions to better support large and small advertisers to efficiently create, deliver and optimise their campaigns for measurable growth and impact. GrabAds is adding two media and publishing veterans to its team to further strengthen its offerings for brands looking to enhance their direct-to-consumer connections. Margaret Chang, one of Asia’s leading search marketplace experts, joins the GrabAds team from Yahoo! Ads as the Regional Head of Small and Mid-sized Business (SMB), while Dave Yang joins as the Regional Head of Direct Sales Organisation for GrabAds following successful

Not a free pass

THE cushioning effect of strong brand affinity should not be seen as a free pass for brands to relax. If anything, such brands should always be on their toes, to ensure that they don’t erode the relationship that they have been able to build with their consumers over the years. Should a crisis arise, however, Johar, Birk, and Einwiller in their MIT Sloan Management Review article enumerated some approaches that brands could use to remedy the situation and stem the loss of affinity to the brand.

stints at leading tech companies Facebook and Snap where he was heavily involved in the building and scaling of teams. Margaret and Dave w i l l be responsible for enhancing GrabAds’ ability to deepen partnerships with brands, agencies and SMBs in helping them reach, engage and move their target audiences to action effectively via ads on the Grab platform. Margaret will also play a key role in helping SMBs enhance visibility for their businesses across the Grab platform, and contribute to the company’s commitment to supporting the growth of Micro, Small & Medium Enterprises (MSMEs) in the Southeast Asia region. Established in 2018, GrabAds has evolved to become an integrated advertising solutions provider which provides advertisers with multiple channels, such as in-app advertising, branding and product sampling via the Grab fleet, for building awareness, engaging audiences and triggering action across the Grab platform. Through its advertising and technology capabilities, GrabAds aims to help people discover, engage, and connect with the best businesses in Southeast Asia. For

more information, visit GrabAds For Business. I hope that this body of work will inspire and be a catalyst for other brands to truly make a difference to the world. When all the work we produce is ingrained with a clear sense of purpose and potential for positive human impact, then everybody wins.

Events: Sun Life Philippines holds exclusive ‘Tiny Habits’ workshop centred on fitness

MANILA, PHILIPPINES — Members of Sun Life Philippines’ Bright Habit Starters community were recently treated to an exclusive workshop on Tiny Habits, the breakthrough method for building habits by world-renowned Behavior Scientist Dr. BJ Fogg. The interactive event carried a fitness theme and was conducted by certified Tiny Habits Coaches TJ Agulto and Claire Limof AHA! Behavorial Design.They shared tips on creating tiny habits in a continuous period of two weeks and also emphasized the importance of celebrating small wins. The event was followed by one-on-one coaching sessions to help the participants commit

n Denial. Issue a flat denial when the accusation is not true, when the target consumers largely identify with the brand, and when customers do not perceive the crisis to be severe.

In the case of the Jollibee fried towel incident, the brand immediately issued a statement when they got wind of the customer complaint. In the statement, the company admitted the mistake and detailed the steps that they would take to ensure that this would not happen again. It did not invalidate the individual complaint. Competent crisis handling coupled with an already solid brand can ensure longevity and success. Revel in those positives, but never let your guard down.

to their habits. This was supervised through the Bright Habits Chatbot, which prompted them to perform daily check-ins for two weeks. This led to the participants achieving 93% success rate in practicing their Bright Tiny Habits. Follow ing the successful launch, a second batch of participants is now undergoing the same program, this time with the goal of creating habits to improve their relationships. The Tiny Habits workshop is just one of the many perks enjoyed by the Bright Habit Starter community. Members are also provided with helpful tips, exclusive promos, and other activities designed to create a sustained behavior change in the present so they can reach their goals in the future. Launched just last March as part of Sun Life’s Ito Ang Araw Mo campaign, the community now has over 3,000 members. Those interested to be a part of the Bright Habit Starters Community simply have to join via Facebook https://www.facebook. com/groups/itoangarawmo. For updates on other Sun Life activities and offerings, follow @ SunLifePH on Facebook, Twitter, and Instagram.

Sports BusinessMirror

EALA WINS ANEW Teen tennis sensa-

| Monday, June 14, 2021 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

KREJCIKOVA CHAMP ON PARIS CLAY

ARIS—Thinking of her late coach the whole time, Barbora Krejcikova went from unseeded player to Grand Slam champion at a French Open full of surprises. Krejcikova beat 31st-seeded Anastasia Pavlyuchenkova, 6-1, 2-6, 6-4, in the final at Roland Garros on Saturday to win the title in just her fifth major tournament as a singles player. “It’s big achievement that nobody really expected,” said Krejickova, a 25-year-old from the Czech Republic who never won a Women’s Tennis Association (WTA) title of any sort until last month. “Not even me.” When it ended with Pavlyuchenkova’s backhand landing long on Krejcikova’s fourth match point, they met at the net for a hug. Then Krejcikova blew kisses, her eyes squeezed shut, in tribute to her former coach, Jana Novotna, the 1998 Wimbledon champion who died of cancer at age 49 in 2017. “Pretty much her last words were just enjoy and just try to win a Grand Slam. And, I mean, I know that, from somewhere, she’s looking after me,” Krejcikova told the crowd at Court Philippe

Chatrier, limited to 5,000 because of the coronavirus pandemic. “All of this that just happened, these two weeks, is pretty much because she is just looking after me from up there,” Krejcikova said, lifting her left hand toward the sky. “It was amazing that I had a chance to meet her and that she was such an inspiration for me. I just really miss her. But I hope she’s happy right now. I’m extremely happy.” Krejcikova is the third unseeded women’s champion since 2017 at Roland Garros. There were zero from 1968 through 2016. She now will try to become the first woman since Mary Pierce in 2000 to win the French Open singles and doubles titles in the same year. Krejcikova and partner Katerina Siniakova already own two Grand Slam doubles titles and reached Sunday’s final of that event. Pavlyuchenkova, a 29-yearold Russian, was playing in her first Grand Slam final in the 52nd major tournament of her career— the most appearances by a woman before reaching a title match. “Who could have thought, like, I would be in the final now? I think I’m just going to keep

PHL beach spikers leave for Thailand for Continental Cup

RONDINA PONS RODRIGUEZ and BARBON PHOTOS COURTESY OF PNVF

HE Philippine beach volleyball team left to Thailand yesterday (Sunday) to compete in the Asian Volleyball Confederation (AVC) Continental Cup, an Olympic qualifying event that offers two slots—top men and women finishers—in Tokyo. The two-day competition is the second phase of the continental tournament. It is set on Friday in Nakhon Pathom province.

This will be the country’s first international competition for a national volleyball team since the 2019 Southeast Asian Games and also the first for the Philippine National Volleyball Federation (PNVF) since its establishment in January. “We are hoping for a strong finish for our men and women beach volleyball teams in this Olympic qualifier,” PNVF President Ramon “Tats” Suzara said. “Our athletes

The magic of books RICK OLIVARES | bleachersbrew@gmail.com

BLEACHERS’ BREW I LOVE the smell of newly pressed books. Like a new-born baby, I slide my fingers on the cover like caressing a baby. There’s something about books. Aside from the printed words that come to life and the insights you gain from reading; the techniques of these wordsmiths, there’s a magic to them. How much more when it is your own? My eighth book… Homegrown: A Celebration of Xavier Sports just rolled off the presses. This was a

tion Alex Eala (left) and Russian partner Oksana Selekhmeteva pose with their trophy and one of the coaches at the Rafael Nadal Tennis Academy after ruling the French Open Girls’ Doubles tournament on Saturday at the expense of battled Hungarian Amarissa Kiara Toth and Russian Maria Bondarenko, 6-0, 7-5, in Paris on Saturday. It was Eala’s second doubles title in a major after last year’s Australian Open. COURTESY RAFAEL NADAL TENNIS ACADEMY

three-year odyssey. Oh, the writing was the easy part. Half the book lists every single person who represented Xavier during their time in the school. That in itself as well as collating all those championships was an arduous task. It isn’t the definitive history of Xavier School sports. If that were the case, it would take more than that to put everything together given also the lack of material. It is a tapestry of stories woven into a narrative of what it was like to don the colors of this small

BARBORA KREJCIKOVA goes from unseeded player to Grand Slam champion at a French Open. AP

on going the same, zero expectation, just working hard and doing my job,” said Pavlyuchenkova, who was treated for a left leg problem late in the second set that she revealed afterward arose during her third-round victory over No. 3 seed Aryna Sabalenka. “OK, of course,” Pavlyuchenkova said, “I believe in myself a little bit more maybe, yes.” Same for Krejcikova, who spoke frankly about feeling overwhelmed by stress before facing 2017 US Open champion Sloane Stephens in the fourth round. Krejcikova worried she wouldn’t win a game and was in tears until her sports psychologist talked her through it. Good thing, too, because Krejcikova beat Stephens 6-2, 6-0. That went alongside wins over No. 5 seed Elina Svitolina and No. 24 Coco Gauff before Krejcikova saved a match point in the semifinals against No. 17 Maria Sakkari. Now Krejcikova is the sixth consecutive first-time Grand Slam champion to collect the women’s championship at Roland Garros, where the red clay can frustrate players by diminishing the effectiveness of speedy serves and by creating odd bounces. AP

are adequately prepared for the competition, having set up a training camp in Pagudpud since last month.” Making up the two women’s teams are the pairs of Sisi Rondina and Bernadeth Pons and Dij Rodriguez and Babylove Barbon. Mer Jauculan and Gen Eslapor as reserves. The men’s squads are the Jaron Requinton and James Buytrago tandem and Jude Garcia and Anthony Arbasto duo. Ranran Abdilla and Philip Bagalay are alternates. Rondina, a veteran of the 2014 Continental Cup, along with Pons and Rodriguez clinched a bronze medal in the 2019 SEA Games. Dzi Gervacio was part of that team but won’t be going to Thailand because of a left knee injury. The PNVF thanked the Philippine Sports Commission under chairman William Ramirez for the training and participation of the team in the Thai tournament, as well as Ilocos Norte Goverschool that was based in San Juan and to go into athletic battle. It’s an oral re-telling of triumph and well, challenges. It celebrates pioneers and giants among men. As a youngster, I wanted to write for Marvel Comics and pen the adventures of Daredevil, Captain America, Spider-Man, the X-Men and Quasar. Yes, those five. Well, I think I am far from achieving that although I have penned my own independent Filipino komiks that have done well despite hardly any marketing push. Who knows? As for books? Wow. I’m still in disbelief after all these years. Every time I have a new book published, I think back to two books—John Feinstein’s A Season On the Brink (about the Indiana Hoosier’s 1985-86 college basketball season) and Jack McCallum’s

Unfinished Business: On and Off the Court with the 1990-91 Boston Celtics. These two books (along with the magazines Sports Illustrated, Rolling Stone, Creem and Jingle) had a huge effect on me during my formative years. An excerpt of A Season on the Brink was reprinted in an issue of Sports Illustrated, and I was blown away at the detail and the storytelling. I wondered during this era before the advent of the specialty shops if National Bookstore or Alemar’s would carry Feinstein’s book. But no. My favorite curio shop.… The Rastro… in Shoppesville, Greenhills—where I bought my issues of Sports Illustrated and other indie comics—carried it although it was a secondhand copy. I couldn’t care less. I bought it, devoured it, and re-

By Josef Ramos

BALDWIN RETURNS AS GILAS HEAD COACH BALDWIN

HE Samahang Basketbol ng Pilipinas (SBP) announced on Sunday Tab Baldwin’s appointment as head coach of the national men’s team that will see action in the third and final window of the International Basketball Federation (Fiba) Asia Cup Qualifiers in Clark, Pampanga. The federation made the announcement in a virtual press conference ahead of the qualifiers for Group A— Philippines, South Korea and Indonesia—which begins on Wednesday at the Clark and Angeles University Foundation University bubble. Baldwin will also coach Gilas Pilipinas in the Fiba Olympic Qualifying Tournament in Belgrade, Serbia, which kicks off on June 29 “I have accepted the opportunity and the challenge to be Gilas Pilipinas’s head coach at this time,” Baldwin said in a statement sent by Ryan Gregorio, Special Assistant to SBP President Al Panlilio. The 63-year-old American-Kiwi coached the national from 2014 to 2016 and earned a gold medal at the Singapore Southeast Asian Games and silver medals at the William Jones Cup in Taiwan and Fiba Asia Championship both in 2015. The SBP tabbed Baldwin as Gilas’s project director after 2016. He replaced Jong Uichico, who slid as one of his assistants, at Gilas’s helm. “I’m honored to continue working with this outstanding coaching staff as we strive to take these next steps to the direction we envision for 2023,” Baldwin said. “I’m hoping that my

international coaching experience and familiarity with our playing systems will be an additional asset to the team in the upcoming challenges the team is facing.” The Philippines plays South Korea on June 16, Indonesia on June 18 and South Korea again on June 20. The top two teams in the group will join host team Indonesia in the the Fiba Asia Cup in August. The 14-player national pool includes Ange Kouame, Dwight Ramos, Jordan Heading, William Navarro, Isaac Go, Tzaddy Rangel, Jaydee Tungcab, Mike Nieto, Justine Baltazar, Jason Credo, Carl Tamayo, Allein Bulanadi, Kenmark Carino, Geo Chiu and LeBron Lopez. The Fiba, meanwhile, gave the go signal Saturday on for recently-naturalized 6-foot-11 Kouame’s eligibility to play for the Philippines. Gilas, under Uichico’s watch, beat Thailand twice—93-61 and 93-69—in the second window played in Manama, Bahrain, last November. Counting the team’s victory over Indonesia, 100-75, in Jakarta, the Philippines is unbeaten in three games in the group. Bases Conversion and Development Authority Chairman and President Vince Dizon, Clark Development Corporation President and CEO Manuel Gaerlan and SBP executive director Sonny Barrios and director for operations Butch Antonio joined Gregorio on the virtual press conference panel at the Quest Hotel in Clark.

nor Matthew Manotoc for supporting the athletes’ training camp in Saud Beach in Pagudpud. The Philippines will face Japan, New Zealand and Sri Lanka in the women’s contest with the top two teams advancing to the

final phase from June 25 to 27. Requinton, Buytrago and Garcia also clinched a breakthrough bronze medal in the 2019 SEA Games. The Philippine men’s teams will face Australia, Japan, Kazakhstan and Lebanon. The No. 1 men’s team will also advance to the third and final round of the qualifiers. The teams will be accompanied by national coaches Paul Jan Doloiras (women) and Rhovyl Verayo (men) and PNVF board member and Beach Volleyball Commission chairperson Charo Soriano.

read A Season on the Brink about three times that year. Then the great SI writer Jack McCallum wrote Unfinished Business which was about the 1990-91 season of the Boston Celtics when they last challenged for a National Basketball Association title with three guys named LarryKevinRobert. Years later, when I got to interview Brian Shaw (who was on that 1990-91 Celtics team), I asked him about this book and he chuckled. Shaw said he was amazed that someone from this part of the world brought up that book as he had good memories of that year. Like A Season On the Brink, I was amazed at the level of detail and storytelling on Unfinished Business (I pestered National Bookstore into ordering this). The fly on the wall point of view that was riveting and tantalizing. One

that McCallum repeated in his most excellent and enjoyable book about the Phoenix Suns: Seven Seconds or Less. In most of my stories, I strove to be that fly on the wall. To tell stories of deep insight and compelling conflict. I applied the same to my weekly column, Bleachers Brew, in the pages of the BusinessMirror of which I have been doing for 15 years this year. I parlayed this into writing for magazines and the television reporting or analysis for several networks and even at one point, a radio show I had over the late NU107. When I look back at what I have written, I always think back to A Season On the Brink and Unfinished Business. I think of John Feinstein and Jack McCallum and how they inspired me to do this. And I am forever grateful.