BusinessMirror June 20, 2022

‘Close borders, cut Omicron exposure risk’

By Cai U. Ordinario @caiordinario

C

LOSING the country’s borders is one of the most immediate courses of action the government must take to prevent the latest Covid-19 variant, Omicron, from reaching Philippine shores, according to local economists.

T he new var iant is a threat, e s p e c i a l l y w it h t he hol id ay s coming up and more foreigners being a llowed to travel to the Philippines, De La Sa lle Universit y economist Mar ia Ella Oplas told BusinessMirror.

The holidays usually bring in Overseas Filipino Workers (OFWs) who are eager to spend Christmas

w w

with their loved ones, while foreigners living in temperate regions usually want to relax in tropical countries like the Philippines. This year’s influx of OFWs is expected to be heavier since many of them were unable to come home for the holidays in December 2020.

“My recommendation is to protect the borders. Do not allow people with a history of travel to countries with positive cases to enter,” Oplas said.

“We should be more restrictive. [We have to be] more protective in terms of our measures.”

Oplas said that while this will be a setback to some industries, this is a fair measure considering that this could help prevent placing the country in another strict lockdown,

n Monday, June 20, 255 Monday, November 29,2022 2021Vol.Vol.1717No.No.52

which, she said, the economy can no longer afford.

“It is better that we do protective preventive measures than get exposed again. We have a lot to lose,” Oplas said. “We should do it now so that we can open just before Christmas. If it gets contained, we can open it again.”

Ateneo Center for Economic Research and Development (ACERD) Associate Director Ser Percival K. Peña-Reyes said closing the country’s borders would be effective but should still adhere to the standards set by the World Health Organization (WHO).

What is needed, Peña-Reyes told this newspaper, is for travel restrictions to be put in place swiftly and

for government to be proactive in imposing them.

Previous instances when the country had the opportunity to impose travel restrictions did not prevent the spread of Covid-19. That was mainly because the decision was not made immediately, he said.

“Kung papatay patay [If we’re slow] and we get caught flat-footed, [that’s risky] We were too reactive instead of proactive before.

We should learn from that,” PeñaReyes said. “It’s a delicate balancing act. We need to push testing and tracing to be properly informed of our decisions. Blanket/shotgun approaches could have dire consequences on the economy.”

See “Omicron,” A2

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

NATL GOVT BORROWINGS EXPERTS WEIGH IMPACT OF U.S. RECESSION PHL FOR 10 MOS DIP TOON P2.75T W T

By Cai U. Ordinario

By Bernadette D. Nicolas

n

@caiordinario

Omicron risk spurs revival of quarantine rules in PHL

HILE Americans have started to see mortgages HE national government’s rise, local economists gross said the impact of the US Federal borrowings as of Reserve decision to increase end-October shrank interest will have global by almost rates 6 percent repercussions year-on-year to and the Philippines could again be sucked into another P2.75 trillion. whirlpool of recessions. @BNicolasBM

Latest data from the Bureau of the International have Treasury showedwire thatagencies the governpolled and a consensus ment’seconomists, gross borrowings during the emerged there 70-percent 10-monththat period fellisbya5.99 percent chance the US will again from P2.92 trillion a yearenter ago. into a recession. local left econoWith onlyHowever, two months for mists believe this may be far worse this year, the latest figure is already as a global recession is not far equivalent to 89.6 percent of beits hind, given theborrowing weak economic reP3.07-trillion program. covery thegross pandemic.

Brokenfrom down, domestic borAteneofrom de January Manila Economics rowings to October Department Chairperson Alvin by P. settled at P2.23 trillion, down Ang, is currently in the trillion United 5.08 who percent from P2.35 States completing a study grant, in 2020.

The bulk of the amount was sourced from Fixed Rate Treasury Bonds (P1.19 trillion), followed by short-term borrowings from Bangko Sentral ng Pilipinas or BSP (P540 billion), Retail Treasury Bonds/Premyo Bonds (P463.3 billion), Retail

By Butch Fernandez Onshore Dollar Bonds (P80.84 bil@butchfBM lion). In the same period, there was also a net redemption of Treasury CCEPTING Russia’s ofBills amounting to P43.94 billion. fer redemption to export cheap oil Net debt means thedebts Philippines is a there wereto more repaid com“complicated” move that could pared to the amount borrowed durcause more problems than the ing the period. desired blunting inflation’s Meanwhile, gross of foreign borimpact, Sen. Franrowings in according the same to period also cis Tolentino. contracted by 9.7 percent to P518.7 While conceding that Rusbillion from last year’s P574.4 billion. sian was oil israised priced lower than most This through global others in the world market that bonds (P146.17 billion), program has seen steady spikes —driven loans (P139.98 billion), euro-deby the Ukraine-Russia conflict nominated bonds (P121.97 billion), since loan February—Tolentino said a project (P86.41 billion), and the incoming samurai administration yen-denominated bonds (P24.19 billion).

said mortgages in the US have already started to rise and this would likely lead to a recession as early as the first quarter of 2023.

“The high interest rates will pull the breaks. The impact on the Philippine economy (will be) more on interest rates (but the) global recession is almost there. (It’s) just a matter of timing,” Ang told BusinessMirror. “There is very little elbow room (now).”

See “Experts,” A2

See “Borrowings,” A2

@sam_medenilla

I

DAVAO Mayor Sara Zimmerman Duterte-Carpio, the daughter of the outgoing populist president of the Philippines, takes her oath before Supreme Court Associate Justice Ramon Paul Hernando (left) as vice president during rites in her city on Sunday, June 19, 2022. Also in photo are her mother Elizabeth Zimmerman and Philippine President Rodrigo Duterte. AP PHOTO/MANMAN DEJETO

By Manuel T. Cayon

@awimailbox Mindanao Bureau Chief

ers from the same camp.

Joining Sara onstage as she took the oath was her mother Elizabeth Zimmerman, who had long been separated from the President.

She took oatheveryone of office to before them.

This her allows see Supreme Court Associate who are listed in the registryJustice and if Ramon Paul Hernando. farmer doesn’t see his name then he Thecoordinate vice president-elect did shall with the PCA imnot issue any statement as to mediately,” he explained at a recent why she held earlyfarmers. inauguradialogue with an coconut tion, butthe insiders said it in“On other hand, if was people tended to allow invite the would see namesher onto the list and big names Philippine they thinkinthey are not politics, coconut such as or the Marcoses and forfarmers their details are incormer GloriaitMacapagalrect,President they can report to the PCA Arroyo.

This would allow for immediate action,”also he added. her The to attend the inauguration of PCA official noted that her partner, Jr., the tandem completion of theMarcos initial list although was also anticipated of coconutitfarmers registry would she was in likely take vacation be just timetofor theaexpected after a hectic campaign. rollout of coconut levy-funded

Major Gen. Nolasco Mempin, commander of the 10th said there was no report of any attempt by any group to disrupt the inauguration as 3,700 security forces were spread outastoPresident the borders of the programs Duterte Region and the southern part isDavao expected to sign industry of Caraga Region eastern part development plan and in early 2022. ofRosales Region said 12. the PCA will not Marciana an ofstop updating Paredes, its list of 64, coconut ficer ofand theenjoined senior citizens’ assofarmers them to regciation in Barangay 37,benefits told the ister in order to reap the BusinessMIrror the BBM-Sara of the decades-long idled coconut tandem of the levy fund.was “Wethe will“idol not stop at asso3.1 ciation because knew how they million.

We hopewe that more indiran the referring viduals willgovernment,” register in our coconut mainly to Sara Duterte’s farmers registry,” he said.management of the city.

The updating of the coconut She said “it would be good if Bongfarmers registry is mandated by bong Marcos” would11524 also visit Republic Act (RA) or Davao the City sometime observe firstCoconut Industryand Trust Fund Act. hand how city wasA2 managed Seewell “3-Mthe farmers,”

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

of Ferdinand Marcos Jr. would do well to study thoroughly the possible fallout from buying

By Jasper Emmanuel Y. Arcalas from Moscow. @jearcalas Among others, it would unsettle the Philippines’s ORE than stand3 million ing among coconut the hundreds of and farmers countries that signedare the UNregisworkers now resolution condemning Rus- regtered with the government’s sia’sistry, February invasion which 24 serves as theofbasis Ukraine urgingofit people to pullto be for theand number outcovered its forces. by the utilization of the Tolentino added thatlevy China P75-billion coconut fund. and India, whichCoconut continue to Philippine Authority buy(PCA) Russian oil, did not sign Deputy Administrator Roel theM. resolution andabout thus3.11 would Rosales said million notcoconut have that dilemma. farmers and farm workContinued on A4 ers have been registered with the government since it started up-

M

NTER NATIONA L concerns over the possible spread of the more infectious Omicron Covid-19 variant prompted the government to reimpose mandatory facility-based quarantine for all arriving passengers in the country.

Acting Presidential spokesperson Karlo B. Nograles announced on Sunday that the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) suspended the implementation of its Resolution No. 150A (s.2021), effectively imposing stricter protocols for all inbound travelers.

To note, IATF Resolution 150A had allowed fully vaccinated non-visa travelers from Green List areas to enter the country without the need for facility-based “so that he would implement quarantine as longalso as they secure the same program”. negative Reverse TranscriptionA similar Chain sentiment was aired Polymerase Reaction (RTby Marivic Patolot,72 54,hours of Sanprior AnPCR) test within tonio Agdao.

She who also wished to their departure. the“Except Marcos-Duterte tandem would for countries classified continue thetesting “ayuda” program “esas ‘Red,’ the and quarantine pecially poor, and the protocolsfor forusallthe inbound internamany lost their in the pantionalwho travelers in alljob ports of entry demic.” shall comply with the testing and In her speech, the vicefor presidentquarantine protocols ‘Yellow’ elect told the people as well the list countries,” Nograles said,as citing VIPs who graced event: “Thank the provision ofthe IATF Resolution you coming to my inauguration,” No.for 151-A. sheHe said. noted Hong Kong, which has “I am a aproud a confirmed case ofDavawenya, the Omicron proud she variant,Mindanawan,” will also fall under thesaid Yelin lowthe listvernacular, countries. drawing lusty cheers the crowd.

“I rules may not Thefrom suspension of the for be the best andcountries the brightest “Green List” willleader, be in but no from one can defeat my effect November 28,spirit 2021 as to aDecember Filipino,” 15, she2021. declared.

Sara Duterte takes early oath in Davao as 15th VP

PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass.

The country will celebrate the 158th birth anniversary of Filipino revolutionary hero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO

BUYING CHEAP RUSSIAN OIL’S ‘COMPLICATED’–TOLENTINO

A

By Samuel P. Medenilla

D

AVAO CITY—This city’s Sara Zimmerman datingmayor its registry following the Duterte-Carpio took an enactment of the Coconut Farmearly oathIndustry of officeTrust on Sunday as ers and Fund law. the country’s 15th vice that president Rosales explained about in500,000 the old San Pedro farmers Street backcoconut and dropped theadded historic SanPCA’s Peworkersby were to the dro Cathedral the tower clock 2018 list thatand had about 2.5 million that witnessed growth coconut farmersthe andcity’s farm workers. sinceThe the PCA’s 1930’s.next step is to conHer an father, President Rodrigo duct exclusion-inclusion proDuterte, as the cedure as by well making theincoming updated president, “Bongbong” farmers’ Ferdinand registry public, providMarcos Jr., attended the rites. ing everyone the opportunity to Bongbong Sara’s of victory in the check theand veracity the list, RoMay 9 elections sales added. had been billed as the first time the two top positions “The list will be posted in public of spaces the land are held by political leadwhere people can easily see

Continued on A2

PESO EXCHANGE RATES n US 53.3720 n JAPAN 0.4034 n UK 65.9411 n HK 6.7993 n CHINA 7.9612 n SINGAPORE 38.5859 n AUSTRALIA 37.6112 n EU 56.3288 n SAUDI ARABIA 14.2250 Source: BSP (June 17, 2022) PESO EXCHANGE RATES n US 50.4600 n JAPAN 0.4374 n UK 67.2329 n HK 6.4722 n CHINA 7.9013 n SINGAPORE 36.8968 n AUSTRALIA 36.2807 n EU 56.5758 n SAUDI ARABIA 13.4531 Source: BSP (November 26, 2021)

News

BusinessMirror

A2 Monday, June 20, 2022

PHL external debt ‘manageable’ despite rising in Q1, insists BSP

T

By Bianca Cuaresma

@BcuaresmaBM

HE Philippines’s external debt remains “manageable” according to the Bangko Sentral ng Pilipinas (BSP), despite rising in the first quarter of the year.

In a report released over the weekend, the BSP said the country’s external debt—which refers to all types of borrowings by Philippine residents from non-residents—stood at $109.8 billion as of end-March 2022, up by $3.3 billion or 3.1 percent from the US$106.4 billion level as of end-December 2021.

BSP Governor Benjamin Diokno said the level remains manageable as the country recorded a 27.5-percent external debt to gross domestic product (GDP) ratio as of end-March 2022.

“The ratio remains one of the lowest as compared to other Asean member countries. The low EDT to GDP ratio indicates the country’s sustained strong position to service foreign borrowings,”

Diokno explained.

The BSP attributed the rise in the debt level during the first quarter of 2022 to net availments of $3.5 billion, mainly by the National Government (NG) and private non-banks.

The NG raised $2.3 billion from official creditors to fund its Covid-19 pandemic response programs and infrastructure projects as well as $2.3 billion from the issuance of global bonds under its 2022 Commercial Borrowings Program.

On the other hand, non-bank private sector borrowers sought external credit of $995 million, primarily to augment their working capital and finance their projects.

Prior periods’ adjustments of $1.7 billion further contributed to the in-

crease in the debt stock, while the transfer of Philippine debt papers issued offshore from non-residents to residents of $1 billion and the negative foreign exchange (FX) revaluation of $841 million tempered the rise in the debt stock.

Broken down, the maturity profile of the country’s external debt remained predominantly medium- and long-term (MLT) in nature with the share to total at 87.2 percent. On the other hand, short-term (ST) accounts comprised the 12.8-percent balance of debt stock and consisted of bank liabilities, trade credits and others.

“This means that FX requirements for debt payments are still well spread out and, thus, manageable,” the BSP said.

Public sector exter na l debt increased to $67.4 billion as of endMarch 2022 from US$63.9 billion as of end-December 2021. About 87.3 percent of public sector obligations were NG borrowings while the remaining $8.5 billion pertained to loans of government-owned and controlled corporations, government financial institutions and the BSP. Private sector debt, meanwhile, slightly declined from US$42.5 billion as of end-2021 to $42.4 billion as of endMarch 2022, with share to total likewise decreasing from 39.9 percent to 38.6 percent.

The contraction was due to a $2-billion decrease in the liabilities reported by banks, and an increase in resident investments in Philippine debt papers issued offshore of $663 million.

In ter ms of cur renc y mi x, t he countr y’s debt stock remained largely denominated in US Dollar (55.4 percent) a nd Japanese Yen (9.2 percent).

Multicurrenc y loans from the World Bank and Asian De ve lopment Bank represented 20.8 percent of the total.

T h e 14 .7 percent balance pertained to 14 other currencies, including the Euro, Philippine Peso and Special Drawing Rights.

www.businessmirror.com.ph

Experts...

Continued from A1

Hard-hit sectors

ANG said for the Philippines, the primary sectors that will experience the impact of the recession will be trade, tourism, and, to a certain extent, the Business Process Outsourcing (BPO) industry. Trade and tourism performance could again weaken as a result of a recession in the US and globally.

In April, the United States was the country’s third top trade partner with total trade reaching $1.64 billion. Imports reached $687.76 million while export earnings from the US reached $955.17 million, leading to a trade surplus of $267.41 million for the month.

University of Asia and the Pacific (UA&P) economist Cid L. Terosa said that in 2020, the US and the Philippines traded at least $19 billion in goods and services. Besides being the Philippines’s third largest trading partner, the US is one of the country’s largest foreign investors.

Philippine Statistics Authority (PSA) data also showed imports from the United States reached $2.97 billion in January to April 2022 while exports reached $3.95 billion during the period. This also results in a trade surplus of $979.76 billion.

Department of Tourism (DOT) data showed 211,816 American tourists arrived in the Philippines. This was an 80.1-percent contraction from the 1.064 million US tourists who visited the country in 2019.

For the BPO industry, Ang said, the impact would not be significant given that the industry offers basic services, including for US-based clients.

The IT & Business Process Association of the Philippines (IBPAP) earlier projected a potential growth of 5.5 percent in revenue and 5 percent in headcount in Compound Annual Growth Rate (CAGR) between 2020 and 2022. “’When the US sneezes the whole world catches (a) cold,’ we used to say. But we already have ‘sinat’ (low grade fever) because of the pandemic and the food and oil crisis. We are trying to prevent a debt-induced recession. If you’re up to your knees in mud, another inch higher or lower hardly matters to what you need to do,” National Scientist Raul V. Fabella told BusinessMirror.

While Ang does not believe that Overseas Filipino Workers and the remittances they send to their families will be impacted, Terosa disagrees saying that remittances may still be affected.

“Recession in the USA next year or Q1 (first quarter) 2024 will derail the full economic recovery to prepandemic levels of the Philippines,” Terosa said. “Remittances from overseas Filipinos in the US reached around $13 billion in 2021. All these will be negatively affected if the US economy will fall into a recession.”

Preparing for the inevitable

MEANWHILE, Ateneo Eagle Watch Senior Fellow Leonardo A. Lanzona Jr. told BusinessMirror there is already “a high probability that a global recession may happen.” Surviving this will really depend on the country’s ability to find new markets and develop local resources, he said.

The agriculture sector is one “viable option” for the Philippines but, Lanzona said, investing in agriculture will not be enough because this sector cannot absorb all the Filipinos who will experience joblessness as a result of the recession.

The overall priority for the government, particularly the incoming administration, is to develop industries and attract investments.

Lanzona said this will hinge on the country’s ability to adopt digital technologies.

“We need to further develop the services sector and digital technology in a way that will reduce the costs of industrialization. In the short

term, programs that will promote productive employment and skills development will be vital,” Lanzona told this newspaper.

For his part, Terosa said surviving the crisis means the Philippines should strengthen the foundations for sustainable domestic economy-led growth. This will involve sustaining infrastructure development and stimulating the local business environment.

Terosa noted that the country needs to mobilize domestic sources of economic growth such as domestic consumption spending and capital formation. “Macroeconomic stability has to be the prime concern of the government.”

If the US enters a recession, he said, “the rest-of-the world will experience varying degrees of economic slowdown as well. Hence, the Philippines cannot rely on the external environment to cushion the impact of a US recession.”

Blaming Russia-Ukraine war ‘oversimplification’

ONE way to survive what is to come is for the next administration to finally address inequality, according to Freedom from Debt Coalition (FDC) President Rene E. Ofreneo.

Ofreneo told BusinessMirror in an email that it would benefit the next administration to consider what civil society organizations have been recommending: a wealth tax.

The FDC President and former dean of the University of the Philippines School of Labor and Industrial Relations (SOLAIR) said blaming a recession in the US as well as the Ukraine-Russia war would “oversimplify” the situation, particularly of countries like the Philippines.

Ofreneo said the debt bomb has already and is still exploding in the global south. Some of these countries include Zambia, Argentina, Sri Lanka, and Pakistan.

The country’s level of indebtedness, he said, is not sustainable. Ofreneo said the Philippines’s debt reaching P13 trillion or 70 percent of GDP indicates a need to find a better path other than more borrowings, relying on Foreign Direct Investments, and austerity measures.

“Growing the economy by having more FDIs? But have they not read the news? FDI declining, GVCs being disrupted, trade wars protectionism on the rise. Why don’t they show the performance of the CREATE law, which is supposed to generate a high level of foreign investment? Weak outcome but great savings for the MNCs and big corporations. In short, more inequality,” Ofreneo said. He was referring to the Corporate Recovery and Tax Incentives for Enterprises law enacted last year.

Wealth tax

“THIS brings us to the correctness and validity of the call of the FDC and the Nagkaisa Labor Coalition: wealth tax to save the economy, wealth tax to reduce the regressivity in the tax system, wealth tax to save both the poor and the rich. Will PBBM heed their call? Hopefully, he will, because it is a key to the survival of the economy and the PBBM Administration,” he added.

Earlier, civil society groups estimated that legislating a progressive annual wealth tax on the “super rich” would swell the country’s revenues by $9.2 billion annually.

In a study by the Fight Inequality Alliance, Institute for Policy Studies, Oxfam, and Patriotic Millionaires, the estimate is based on a wealth tax of 2 percent on wealth over $5 million; 5 percent on wealth over $50 million; and 10 percent over $1 billion.

A less progressive wealth tax would still yield a significant amount at $6.3 billion annually. This is based on tax rates of 2 percent on wealth over $5 million; 3 percent on wealth over $50 million; and 5 percent over $1 billion.

In the Philippines, the study stated, there are 6,685 individuals with a net worth of $5 million or more, with wealth totaling $164 billion. There are 365 individuals with $50 million or more with combined wealth of $91.45 billion.

Between 2016 and 2021, the number of individuals with wealth over $50 million increased from 295 to 365, with combined wealth increasing from $75.36 billion to $91.45 billion, a gain of 21.36 percent, adjusted for inflation.

There are 16 billionaires with a wealth total of $45 billion. Throughout the pandemic, beginning in mid-March 2020, the wealth of the Filipino billionaire class increased by $11.68 billion. The study said billionaires saw their wealth increase by 35.1 percent during the pandemic while 3.7 million people are estimated to have been pushed into extreme poverty in 2020 alone.

The Nation BusinessMirror

www.businessmirror.com.ph

‘Elected official’s post limit refers to consecutive terms’

By Joel R. San Juan @jrsanjuan1573

T

HE Supreme Court (SC) has dismissed the petition seeking to compel the Commission on Elections (Comelec) to strictly enforce the term limits on elective officials, particularly those in Congress, and to declare as unconstitutional the reelection of termed out senators and congressmen.

In an 18-page en banc decision penned by Associate Justice Marvic Mario Victor F. Leonen, the Court declared that contrary to the claim of the petitioners, what the Constitution clearly prohibits is the reelection for more than two or three consecutive terms of senators and members of the House of Representatives.

T he SC cited its r uling in Socrates v. Commission on Elections, which held that what the Constitution prohibits is the “immediate reelection” for a fourth term following three consecutive terms for members of the House or third term following two consecutive terms for senators.

“Clearly, the prohibition and term limit refers to consecutive terms. While the provisions do not textually provide the terms ‘hibernation, hiatus, or rest period,’ the usage of the word “consecutive” indicates that the term limit and prohibition only applies to reelection for an immediately subsequent term. The interpretation of petitioners is an extra-textual reading of the Constitution,” the SC explained.

Petitioners’ argument

THE petitioners composed of a group of lawyers and private individuals led by Vladimir Alarique T. Cabigao argued that Sections 4 and 7, Article VI of the Constitution barred senators from serving more than two consecutive terms while the members of the House of Representatives cannot serve for more than three consecutive terms.

The term of office of the senator is six years while the members of the House are elected for a term of three years.

However, the petitioners said based on the records, the Comelec had allowed several senators to serve for more than two consecutive terms, in violation of Section 4, Article VI of the 1987 Constitution.

The petitioners noted that these termed out officials were allowed to run for public office again after having respite or hiatus.

Thus, the petitioners said, the Court must issue a mandamus to compel the Comelec to perform its ministerial duty under Article IX-C, Section 2(1) of the Constitution to

“enforce and administer all laws and regulations relative to the conduct of an election, plebiscite, initiative, referendum, and recall. “ The petitioners also asked the SC to compel the Comelec to deny the certificates of candidacy (COCs) of senators, members of the House of Representatives and local elective officials in the upcoming May 2022 elections and in future elections for having served beyond their term limits.

Comelec’s duty

HOWEVER, the SC emphasized that it is the ministerial duty of the Comelec to give due course to COCs. “Here, respondent cannot be compelled through a writ of mandamus to deny due course to [COCs] precisely because the duty of respondent is to give due course to the certificates if they are filled out in due form. The petitioners’ prayer to motu proprio deny due course to the certificates of candidates is contrary to the mandate of the respondent,” the SC noted.

The SC said the legal remedy for the petitioners is to file a petition to deny due course to or cancel a COC once the COCs are filed.

“The number of terms and the corresponding period already served by the candidate are not contents of a [COC]. If the petitioners believe that there are candidates in the next elections who are ineligible based on the constitutional term limits, their recourse is to file a petition under Section 78 (Omnibus Election Code),” the SC pointed out.

‘Failure to enforce’

AMONG those who served as senators for more than two consecutive terms, according to the petitioners were: Edgardo J Angara, served as senator in 1987, 1992, 2001, 2007; Juan Ponce Enrile in 1987, 1995, 2004, 2010; Aquilino Pimentel Jr. in 1987, 1998, 2004; Teofisto Guingona Jr., in 1987, 1992, 1998; Miriam Defensor-Santiago in 1995, 2004, 2010; Gregorio Honasan in 1995, 2007, 2013; Rodolfo Biazon in 1992, 1998, 2010; Loren Legarda in 1998, 2007, 2013; Vicente Sotto III in 1992, 1998, 2010, 2016; Franklin Drilon, in 1995, 2001, 2010, 2016; Panfilo Lacson in 2001, 2007, 2016; Francis Pangilinan in 2001, 2007, 2016; Lito Lapid in 2004, 2010, 2019; Ramon Bong Revilla Jr. in 2004, 2010, 2019; Pia Cayetano in 2004, 2010, 2019; and, Aquilino “Koko” Pimentel III in 2007, 2013, 2019.

The petitioners also named 31 former and current members of the House who also benefitted from “Comelec’s failure to enforce the term limit on elective officials.”

‘Transport crisis worsening, govt intervention needed’

By Lorenz S. Marasigan @lorenzmarasigan

T

HE transport crisis is worsening and the government must beef up its intervention initiatives in order to arrest the problem, according to commuters’ organization The Passenger Forum (TPF).

Primo Morillo, the convener of the group, said the transport crisis started even before the skyrocketing fuel prices, which also exacerbated the issue, forcing public utility vehicle (PUV) drivers to stop plying their routes due to losses from operations.

“We are now in a transport emergency. It is obvious that whatever the government is doing is definitely insufficient to our gigantic problems in the transport sector,” he said.

Morillo said the provisional increase in jeepney fares was just a

band aid solution that does not have a lasting effect.

“The government’s approval of an increase in jeepney fares proved ineffective in solving the income problems of PUJ drivers and operators. And we know that with inflation, it is not wise to hike fares drastically,” he said.

The fuel subsidies, Morillio said, are also insufficient. As of last week, a total of 232,586 beneficiaries of the 264,578 total beneficiaries received their fuel subsidies.

“We have heard of diesel subsidies but it also seems to be insufficient.

It seems that it is just right for the government now to form an emergency task force that will quickly look for ways to solve our transport woes,” he said.

Morillo suggested for the government to form a task force dedicated

By Butch Fernandez

By Claudeth Mocon-Ciriaco @claudethmc3

T

HE Department of Education (DepEd) issued a statement last Sunday reiterating its support to Vice President-elect Sara Duterte following her inauguration last Saturday.

“We are enthusiastic to welcome VP [Duterte] to DepEd as the incoming Education Secretary and work with her in proactively addressing the challenges in basic education,” the DepEd said adding the agency is “one with the nation” in congratulating Duterte.

Outgoing Secretary Leonor Magtolis Briones said that she and her team are eager to assist Duterte in ensuring a “smooth transition” of priority education programs and policies.

Briones said these policies include the “Basic Education Development Plan” (BEDP) 2030.

The outgoing DepEd chief added that the BEDP can help the incoming administration in implementing further reforms.

The DepEd also called on stakeholders, including teachers, nonteaching personnel, field officials, parents and partners, to unite and collaborate anew under the leadership of Duterte “for the benefit of the Filipino children.”

U

UNITED States Embassy in the Philippines Chargé d’Affaires ad interim Heather Variava (second from right) visits Clark International Airport and the FedEx Clark Gateway in her trip to the Clark Freeport and Special Economic Zone to highlight US support for economic development in the region. PHOTO COURTESY CLARK DEVELOPMENT

of the area’s residents.

“As President [Joe] Biden said during the launch of the Indo-Pacific Economic Framework, the future of the 21st century economy is going to be largely written in our region—the Indo-Pacific,” Variava said. “This is

to addressing the transport crisis.

“We really hope that though we are in a period of transition, the outgoing and the incoming government still see the wisdom in creating a dedicated, albeit temporary, government body to solve this crisis. And while we’re at it, we further hope that they will study long-term solutions that will veer us away from the fossil fuel-dependent, car-centric system we have right now,” he said.

Fueling the transport crisis, he noted, is the “car-centric design of the country’s transport system and the lack of helpful infrastructure for pedestrians and commuters.”

“While we have these observations since we have started our organization, the transport crisis made more people aware how problematic our system really is, from its car-centrism to the apparent abandonment

of commuter interests in our policies and infrastructures,” he said.

Prioritizing road-widening and elevated highways, he said, must be stopped and that government officials should “start thinking like a commuter.”

“They must be able to see things from the perspective of a commuter. Only then will they realize that adding more train lines and PUV routes is way better than another skyway, that a wide road is just useful if they will allot exclusive lanes for bikes and public transport, and that the interconnectivity of our public transport system must be implemented,” he added.

Earlier, another commuter group Move as One Coalition presented a ten-point action plan that the government may follow to arrest the transport crisis.

DepEd Two courts grant medical furlough for Sen. de Lima ‘enthusiastic’ to welcome T Duterte @butchfBM

WO branches of the Muntinlupa Regional Trial Court granted detained opposition Senator Leila M. de Lima a medical furlough to undergo major surgery as prescribed by her doctors.

In a statement issued last Sunday, de Lima conveyed her gratitude to the judges handling her cases. This was after the courts issued last Wednesday (June 15) separate Orders from Judge Abraham Joseph B. Alcantara (Branch 204) and Judge Romeo S. Buenaventura (Branch 256) allowing her to take a medical furlough for surgery and confinement at Manila Doctors Hospital.

In her motion before the Muntin-

why we are grateful for the investment that are being poured into the Philippines by American businesses, which support our longstanding commitment to the shared prosperity of our two nations.”

Variava also visited major infra-

lupa Trial Courts, de Lima affirmed she was diagnosed with Pelvic Organ Prolapse Stage 3 and was advised by her doctor to undergo surgery “at the soonest possible time.”

“I thank the Courts for their compassion and swift action in allowing me to address my urgent medical needs—from granting my motion for medical furlough for routine checkup last April and my recent motion that would allow me to undergo a major surgery,” she said.

Earlier, de Lima was also confined at the Manila Doctors Hospital for “roughly 28 hours,” from April 5-6, after her Very Urgent Motion for Medical Furlough was granted by the same Muntinlupa Courts.

In turn, the detained senator as-

sured the Court “she will not be staying in the hospital longer than what is called for or necessary” and that “there will be proper observance of the health and safety protocols, as prescribed under the IATF guidelines, on her part and that of everyone who will be accompanying her during the medical furlough.”

Citing her doctors’ advice, de Lima explained in her motion that “the preparation for the surgery and the recovery time would entail, at least, a 120-hour confinement in order to fully observe and evaluate the status of Accused De Lima’s recovery, and to assess if her heart condition is being affected, considering that she had a suspected Transient Ischemic Attack (mild stroke) last April 2021.”

Church group seeks mining moratorium

By Samuel P. Medenilla @sam_medenilla

C

ARITAS Philippines called for another nationwide mining moratorium to hold accountable firms, which are engaged in “irresponsible mining.”

Caritas Philippines National Director and Kidapawan Bishop Jose Colin M. Bagaforo said the suspension will give the government more time to screen existing local mining firms to determine if they are compliant with government regulations.

“We pray that with the collective voice and actions, the national gov-

CDA Variava visits Clark Freeport Area to highlight US investments

S Embassy in the Philippines Chargé d’Affaires ad interim (CDA) Heather Variava visited the Clark Freeport and Special Economic Zone last June 17 to highlight the impact of US support for economic development in Central Luzon.

Variava went to the FedEx Clark Gateway, the US shipping and logistics company’s major investment in the Clark Freeport. This 17,000-square-meter facility supports the Philippines’s growing ecommerce demand and small-andmedium-sized industries that are helping drive the country’s economic recovery from the Covid-19 pandemic. FedEx already employs hundreds of Filipinos at the facility and plans to expand operations further in the coming years.

In a meeting with the American Chamber of Commerce, Variava discussed the impact of US investments in Central and Northern Luzon. US companies create thousands of local jobs, enhance the region’s economic development, and conduct charitable activities that help improve the lives

Editor: Vittorio V. Vitug • Monday, June 20, 2022 A3

structure projects, including the new Clark International Airport Terminal and the Malolos-Clark railway project, which will transform transportation in the Metro Manila and Clark regions. The Malolos-Clark railway project, funded by the Asian Development Bank (ADB), will create thousands of local jobs, ease traffic congestion and reduce auto emissions by tens of thousands of tons.

The US is the largest shareholder in the ADB and supports the Philippines’s efforts to improve environmental outcomes through greenhouse gas emissions reductions.

Variava also expressed her support for the Philippine Disaster Relief Foundation (PDRF), which leverages resources and knowledge from the Philippines’ business community to respond to natural disasters, such as last year’s devastating Typhoon Odette. The US, through the US Agency for International Development, supports PDRF’s activities to improve the preparedness and resilience of Metro Manila and other disaster-prone regions across the Philippines.

ernment of the Philippines, through the Office of the President and the Department of Environment and Natural Resources (DENR), will heed the call of its people to make the moratorium against mining the country a national policy, and make all parties involved in irresponsible and unlawful mining face justice,” the prelate said.

The head of the social action arm of the Catholic Bishops’ Conference of the Philippines (CBCP) made the appeal amid the latest protest of the Diocese of Marbel against the Tampakan copper-gold mine in South Cotabato.

He lauded the said efforts, which was led by Marbel Bishop Cerilo Alan U. Casicas and Fr. Jerome M. Millan.

“We encourage and join the people of South Cotabato in demanding for public accountability and carrying out regular scrutiny of government transactions related in particular to environmental actions,” Bagoforo said.

Aside from the Diocese of Marbel the City Council of General Santos City also voiced out through a resolution last month its opposition against the open-pit mining in Tampakan due to its potential harm to the environment.

Maynilad wrestling with algal bloom harming water plants

By Jonathan L. Mayuga

M

AYNILAD Water Services Inc. announced it is implementing various measures to fight the algal bloom in Laguna de Bay that, the firm said, is adversely affecting its water production capacity at the firm’s Putatan Water Treatment (PWT) plants.

The company said it has been dosing Laguna de Bay—its primary raw water source—with treatment chemicals to control algal build-up.

The firm added it is using a “silt curtain” to minimize algae intrusion into Maynilad’s treatment facilities plus clean-up of the dissolved air flotation treatment process of the PWT plants.

Maynilad added it will undertake medium-term and long-term interventions to address the raw water quality issues in Laguna de Bay. One of these is the plan to dredge the portion of the lake encompassed by its silt curtain where it plans to

install several units of ultrasonic algae control equipment around the treatment plants.

In June 2019, Maynilad’s water production was affected by an algal bloom in Laguna de Bay, when the maximum algal bio count reached 13,230 counts per milliliter (mL).

While the company has since invested in additional treatment technology to address such algae proliferation, it was still constrained to reduce production this time around, as the algal bio count in June 2022 reached an unprecedented peak of 72,722 counts/mL. Algal blooms arise from shifts in the nutrient balance of the lake water resulting from chemical, industrial or agricultural wastes and leachates.

And while the company has been pouring investments into treatment technology upgrades and interventions, its water production will continue to be affected unless more drastic measures are taken to protect Laguna de Bay.

Economy BusinessMirror

A4 Monday, June 20, 2022 • Editor: Vittorio V. Vitug

www.businessmirror.com.ph

‘US disinflationary effort to impact PHL recovery’

By Jovee Marie N. Dela Cruz @joveemarie

A

N economist-lawmaker has warned that the country’s economic recovery could be undermined by a “massive disinflationary effort” in the United States, saying the Philippines should have coordinated fiscal and monetary policies to mount a strong defense.

In a statement over the weekend, House Committee on Ways and Means Chairman Joey Sarte Salceda said the “massive” 5-percent disinflation by US monetary authorities is a “key risk” to the economic recovery of the Philippines.

Salceda said this massive disinflationary effort in the US seeks to curb the rise in prices of goods and to bring its liquidity levels to its prepandemic trajectory.

“We have to watch out,” the law-

maker said. “The United States will, at some point, have to undertake larger disinflationary efforts than the 75 basis points in policy rate hikes that it conducted last week.”

Salceda explained that it appears that the US will have to undertake measures similar to what it undertook in the early 1980s under then chairman of the Fed, Paul Volcker, which brought prices back to more normal levels, but also hit the global economy hard.

Two things

THE lawmaker said he’s particularly concerned about two things.

The first, Salceda said, is the US May inflation rates that “were the highest since 1981, at the height of Volcker-era policies to combat inflation.”

“Second, the US has added $6.3 trillion in liquidity since January 2020. In other words, about a third of all liquidity circulating in the US

economy was created just during the pandemic,” he said.

Describing it as the biggest forward risk to the Philippine economy, Salceda said coordinated fiscal, monetary policies and efforts in both the financial and the real sectors of the economy are needed as country strong defense.

“That is the fastest money ever grew in US history. And it is causing massive demand spikes without the corresponding growth in productive capacity, raw material, or technology and innovation. Of course, it was bound to cause price hikes,” he added.

“For mature economies like the US, the bedrock of the economy is price stability. So, they will be forced, at some point, to kill that new money, to siphon it off of circulation,” the solon said.

Volcker-era policies

SALCEDA explained that due to

Volcker-era policies in the US in the 1980s, US economic growth was negative, causing the slowest Philippine growth in ten years, at just 3.4 percent in 1981, presaging the eventual economic difficulties of the mid-1980s.

“It’s going to cause a global storm, because you will probably need to kill around 20 percent of all financial assets in the US economy. That is the largest definancialization the global economy will experience, in nominal terms, ever,” Salceda added.

“And that kind of money murder will certainly affect at least some assets in the country and will also make borrowing harder for our private sector, which has around $43 billion in external debt,” he added.

The Cambridge University has said that definancialization “means reining in the excessive role of financialized motives, markets, actors and institutions.”

Still, Salceda said the Philippines is very strong due to comprehensive fiscal reforms and investment and trade liberalization reforms.

“My point is: this is going to be a global storm.”

The lawmaker pointed to growth levels in the first quarter.

“But an economic supertyphoon like this will still hit us. And that will have implications on growth, investment, borrowing costs for the economy,” Salceda added. “No matter how strong the house is, or how clean the living room is, or how good the cooks are. We will still be flooded outside.”

‘Agriculture will save us’

THE senior lawmaker said agriculture is the most important sector in this regard.

“We can still fortify the house better and we can still make sure we have food for everyone when the

storm hits. It will help ensure that at least, when the crisis hits, everyone has something to eat. It will also help keep prices down while we are still in this inflation stage and it is a potential economic growth buffer once the disinflation stage begins,” Salceda added.

The lawmaker recalled that during former president Gloria Macapagal Arroyo’s anticipatory economic stimulus in January 2008, prior to the Global Financial Crisis, agriculture was atop the priorities funded.

“That helped us avoid negative growth when the rest of the world economy was shrinking,” Salceda said.

“Agriculture will once again save us. But we have to act in the early days of the administration, including us in Congress. Having spent most of my pre-political career in the capital markets as an analyst, my view of this is that trouble is coming sooner rather than later,” he added.

PPA chief: Short-term disaster response plans boost resilience Gaming sector boosts tourism jobs in 2021

By Andrea E. San Juan

T

HE Philippine Ports Authority (PPA) has urged the government to craft short-term disaster response and management plans to strengthen the country’s port resilience in the face of climate change.

“The consequences of climate change will increasingly hit ports worldwide, affecting the businesses and people who depend on them,” the United Nations Conference on Trade and Development (Unctad) said in a news statement.

According to Unctad, this is especially true for island nations including the Philippines, which rely on ports for almost all trade.

When a severe storm damages

a port serving one of the Philippines’s 7,000 islands, it cuts off the local population’s lifeline for days or even weeks, the intergovernmental body said.

“Disaster response and management plans have to be included in the business continuity plans and these plans have to be regularly updated,” PPA Assistant General Manager Hector E. Miole said.

Miole emphasized that the country’s port authority would traditionally plan for the next 50 years. However, in the changing environment, “we need to have shorter terms for planning—maybe only 10 or 20 years.”

A good forecast system, he said, can help port authorities handle severe storms better by allowing

them to plan for how disasters will affect different ports and devise ways to maintain operations.

Port managers of other countries also unveiled their respective strategies to combat climate change.

For his part, Luis Ibarra, president of the Las Palmas Port Authority, said the port’s sustainable strategy includes using offshore wind power, more onshore power supply technology—which helps reduce carbon dioxide and other emissions—and planting algae in the port’s waters to capture carbon dioxide (CO2).

The Port chief of Las Palmas noted that they are adapting to new challenges and realities.

The port managers agreed that advancing digitalization and cybersecurity is key to strengthening port resilience. In addition to streamlining aspects of maritime trade, such as customs clearance processes, digital technologies allow ports to minimize human interaction while remaining operational in times of pandemic.

In fact, for Ghana Port Authority’s director general Michael Luguje, “Covid-19 showed us the importance of having reached at least a certain level of digitalization. Otherwise, many ports would have been shut down and the economy would have suffered even more.”

Although increasing the use of digital technologies has improved shipping processes and made ports more resilient to the effects of Covid-19, it’s still not spared from certain risks such as cyberattack.

By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror

R

EOPENING of gaming establishments last year helped the recreation, entertainment and cultural services industry recover their workers last year, lifting overall tourism employment by almost five percent.

According to the latest Tourism Satellite Accounts released by the Philippine Statistics Authority (PSA), more than 100,000 workers in the recreation, entertainment and cultural services industry went back to their jobs last year, or a 45.3 percent gain that resulted in a 335,000 workforce. Aside from casinos, other establishments in said industry include museums, art galleries, botanical gardens and zoos, amusement parks, etc.

Government lowered the Covidrisk status in Metro Manila to Alert Level 3 in late October, which allowed casinos, horse racing, cockfighting, lottery and other gaming establishments to operate at 30-percent capacity.

The retail trade on tourismcharacteristic goods industry also saw jobs growing by 20.3 percent to 429,000 workers. These are retailers who produce goods specific to our country like food delicacies and other souvenirs.

Overall, the PSA said “employed persons in the tourism industries

registered 4.9 million in 2021, which was higher by 4.6 percent than the 4.68 million in the previous year.”

Jobs in the sector accounted for 11.1 percent of the total employment in the country. (See, “Travel firms’ return to operations boosts 2021 tourism rebound,” in the BusinessMirror, June 16, 2022)

Below pre-pandemic levels

WHILE the uptrend in tourism jobs is welcome news, this was still below the pre-pandemic 5.7 million employed in 2019, which grew by 5.36 percent from the previous year. Tourism jobs also accounted for a much higher 13.5-percent share to total employment in 2019.

Of the total tourism workforce in 2021, the largest chunk was accounted for by the passenger transport industry at 1.87 million, and the accommodation, and food and beverage (F&B) industry at 1.4 million. Jobs in the passenger transport increased by 0.1 percent, a reversal in the 14.4-percent contraction in 2020, while the accommodation and F&B slipped by 3.5 percent, although an improvement from the 240-percent fall in 2020.

Other industries that gained employees were travel agents, tourism operators and tour guides, which grew by 13.6 percent to 43,000, and the miscellaneous industries such as spas, money changers, etc., which rose by 11.3

percent to 800,000.

Welcome news

THE growth in the Tourism Direct Gross Value Added (TDGVA) of 9.2 percent in 2021, was also slower than the 10.8 percent expansion in 2019. Thus, despite the P1 trillion TDGVA last year, the sector’s contribution to the local economic output, as expressed in gross domestic product (GDP), was only 5.2 percent compared to the 12.7 percent contribution in 2019, where TDGVA was measured at P2.5 trillion.

The Philippine Hotel Owners Association expressed enthusiasm over the latest the PSA tourism data.

“We welcome the news coming from the PSA that shows the positive growth rate in the country’s TDGVA,” PHOA Executive Director Benito C. Bengzon Jr. told the BusinessMirror. “We hope that tourism’s recovery will maintain a steady course, so we can soon return to the pre-pandemic levels.”

As per PSA data, travel agencies and other reservation services grew the fastest at 38.4 percent, while the accommodations services slipped by 10.8 percent.

These were, however, massive improvements from the 82-percent contraction and almost 90 percent plunge for the travel agencies and accommodations sub-sectors in 2020.

New govt faces myriad risks, but there’s room for hope–BBM Econ Team And while massive spending was necessary as part of government’s pandemic response, which resulted in higher debt-to-GDP ratio, Diokno is confident debt will go down to 60.4-percent in 2024, two years into the Marcos administration.

Diokno said, “It is worth emphasizing that our current level of debtto-GDP ratio is well below the figure for other economies, some of which

have debts over 100 percent or even 200 percent of their GDP.” Philippine debt stood at 63.5 percent of GDP at the end of first quarter 2022.

As for provisional advances of $10.3 billion that the BSP extended to the national government at the height of the health crisis in 20202021, Diokno said these were fully paid before the maturity schedule on

June 11, 2022.

Diokno also noted the Philippines will continue to attract foreign investments with the current administration’s enactment of the amended Retail Trade Liberalization Act, Foreign Investments Act, and Public Services Act. As an added boost to the reform momentum, the tax system Marcos will inherit is “much better,” according

to Diokno, after the Duterte administration reformed personal income tax and corporate income tax; increased taxes on cigarettes three times; increased tax on petroleum products; and imposed tax for the first time on sugary products.

President-elect Marcos’s development agenda will also be backed up by a “better state of infrastructure,” he said.

Buying cheap Russian oil’s ‘complicated’–Tolentino

The senator noted that the Philippines also buys oil and a host of other products from many of the countries that signed the UN resolution, and breaking the spirit of the resolution by importing oil from Russia could impact Manila’s trade relations with these countries.

Moreover, he noted, the Philippines exports workers to most of the signatory countries, and its move to deal with Russia—thus weakening the resolution that it signed – could also impact the standing of the OFWs. Signatory countries might take offense with Manila’s breaking the oil exports ban on Russia and tighten rules on OFWs they host.

“Tignan natin ang epekto naman kung

bibili tayo ng langis sa kanila. Halot lahat ng pumirma sa resolution hindi bumibili [ng langis] sa Russia [Let’s look at the consequence of buying Russian oil. Almost all who signed the resolution are not buying from them],” Tolentino said in a radio interview Sunday morning.

Moreover, he said, Russia has been expelled from the SWIFT system used by banks around the world to transact. “Hindi na tayo puedeng mag trade sa dollars” because Russia was for its invasion of Ukraine, a move that Moscow calls a special operation, not an invasion.

This, he said, means the Philippines must find another way to pay for oil imports should it accept Russian oil, noting, “wala naman tayong [we don’t

have] Russian rubles.”

He said there is a huge underlying message in Manila’s signing the UN resolution, noting in Filipino,“the UN community made a big demand of Russia—that it withdraw its forces before relations between them can return to normal.”

The senator underscored that Russian oil is cheaper “because no one is buying from them.”

However tempting their offer of oil exports may seem, the situation is “masalimuot [complicated],” the senator stressed.

Asked if, given the risks of buying Russian oil, whether the Philippines should consider internal fiscal options like temporarily suspending excise tax

continued from a10

continued from a1

and VAT on oil products, Tolentino agreed that is worth reviewing.

The new administration, he said in Filipino, “can check our revenue collection. How much is the impact on revenue if we temporarily remove excise tax and VAT from the equation?”

It is also important to study “what will be lost. What happens to the spending power of government?” The impact on plans for pursuing further the Build Build Build and badly needed social services should be studied well in reviewing the forgone revenue option, he added.

The immediate priority, he concluded, is to deal with “the impact of inflation—the weakening purchasing power of our people.”

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

Editor: Jennifer A. Ng • Monday, June 20, 2022 A5

By Jasper Emmanuel Y. Arcalas @jearcalas

T

HE country’s pork production this year would remain flat at 1 million metric tons (MMT) as pig producers remain “hesitant” to rebuild stocks amid the continuing threat of African swine fever (ASF), an international agency said.

The United States Department of Agriculture Foreign Agricultural Service in Manila (USDA-FAS Manila) said in a report it published recently that local pork producers are still awaiting development related to a vaccine against the fatal hog disease.

“FAS Manila maintains 2022 pork production at 1 million MT. Industry is continually hesitant to rebuild stocks despite the government’s best efforts to encourage repopulation amid the continuing threat of ASF infection and the absence of a locally-available vaccine,” the agency said in its latest Global Agricultural Information Network (Gain) report.

Because of this, the Philippines will rely more on imported pork products to plug the domestic supply shortfall and temper rising prices for the second consecutive year.

“FAS Manila increases the 2022 pork import forecast to 400,000 MT from USDA’s 375,000 MT, following the issuance of Executive Order (EO) No. 171, Series of 2022,” the USDAFAS Manila said.

However, the USDA-FAS Manila notedthatthePhilippinegovernment’s decision to extend lower tariff rates on pork imports would only provide “minimal”and “brief” relief to consumers sans an expansion of the country’s minimum access volume (MAV).

“Unlike in 2021, no changes were made to the minimum access volume for pork, which remains at 54,210 MT (February 2022 to January 2023),” the USDA-FAS Manila said. The Philippines expanded its pork MAV last year by 200,000 MT. “The government’s relative halfmeasure to improve market access

BUSINESSMIRROR FILE PHOTO

Report: Pork output likely to stay flat this year

in 2022 compared to 2021 is likely to offer only minimal and brief relief to consumers given the relatively still high in-quota duty rate and no expansion of the in-quota volume.”

Local pork prices are expected to rise due to higher feed and fuel prices that will drive hog raisers’

production costs, according to the USDA-FAS Manila.

“Following the expiry of more favorable market access conditions in early 2022, frozen pork inventories in accredited cold storages steadily declined, which led to an overall tightening of available supply and

further contributed to an increase in pork prices,” it said.

The USDA-FAS Manila increased its pork consumption forecast for the Philippines this year to 1.399 MMT compared to USDA’s 1.374 MMT. The latest pork consumption estimate by the USDA-FAS Manila, however, was 4 percent lower than last year’s 1.458 MMT. “While measures to-date are only expected to partially blunt pork inflation, Philippine pork consumption has proven to be relatively inelastic, with households already spending roughly 40 percent of expenditures on food.”

In the same report, the USDAFAS Manila maintained its production forecast for chicken at 1.36 MMT, slightly higher than last year’s 1.343 MMT. “Through the first quarter, production is up 13 percent year-over-year with large poultry farms still relatively unaffected from highly pathogenic avian influenza (HPAI),” it said.

“Meanwhile, several local government units continue to impose restrictions that go above and beyond the Philippines’s national Avian Influenza Protection Program, which has further restricted the availability of live chicks.”

The USDA-FAS Manila noted that chicken prices are likely to “remain elevated” due to ongoing avian influenza restrictions and rising production costs.

“FAS Manila holds 2022 chicken meat consumption estimates given conditions are progressing as earlier expected,” it said.

“MDM [mechanically deboned meat] demand remains particularly robust as it increasingly represents a key raw material for the processed meat industry and as the public seeks ways to save budgetary outlays on increasing food costs.”

The USDA-FAS Manila said total chicken meat imports this year would slightly decline to 420,000 MT from 437,000 MT last year.

PhilRice conducts survey on fertilizer Innovative partnerships key to global food security–FAO use of farmers in Central Visayas I

T

HE Philippine Rice Research Institute (PhilRice) said it recently conducted a random survey of rice farmers in Region 7 to evaluate changes in their fertilizer application and its effect on yield.

PhilRice, an attached agency of the Department of Agriculture (DA), said farmers were also asked about their fuel use. The agency said it launched the survey to determine whether a spike in the price of fertilizer and fuel might prompt farmers to reduce the use of inputs to accommodate basic needs, such as food.

“Specific questions include quantifying the changes in the area planted as well as in the effect of yield following the farmers’ responses if adjustments were made to the quantity of fertilizers applied to rice,” PhilRice said in a statement.

The survey channeled through the Provincial Agricultural Techni-

cal Coordinating Offices in the four provinces of Central Visayas randomly picked 60 farmers for each province in the region, 30 farmerrespondents for the irrigated, and another 30 for the rainfed areas.

According to Chona Maleza, rice focal, after the data collection, a report on the analysis of the potential effect of the increasing fertilizer and fuel prices on rice production and performance will be generated by PhilRice.

“The result will aid the policymakers in making the right strategy and support for the rice farmers in Central Visayas,” said Maleza.

The DA is promoting “balanced fertilization” by combining inorganic and organic fertilizer to sustain productivity and mitigate the impact of the rising cost of fertilizers.

Meanwhile, 84 corn farmers from Sara and 25 from Estancia, Iloilo recently received their P3,000 fuel

discount cards from the DA. The DA noted that the effect on the agriculture and fishery sector of soaring oil prices has a sudden impact on the economic vulnerability of the farmers especially those that are dependent on petrol products in farm production.

It launched the Fuel Discount Program 2022 to assist affected corn farmers and fishers.

Qualified recipients of the fuel discount cards were those validated corn farmers listed in the Registry System for Basic Sectors in Agriculture, have operational farm machinery and equipment, and have a total area of 1 hectare and below. Cards were issued in partnership with Universal Storefront Services Corp.

The beneficiaries can use their cash card in their fuel purchase transactions in the designated Fuel Station Merchants.

NNOVATIVE partnerships, especially with academic institutions, will help promote global food security, according to Qu Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO).

“Fostering innovative partnerships for a food secure world is a top priority for the United Nations, as set out in the 2030 Agenda and its 17 Sustainable Development Goals (SDGs), Qu said during a speech at the University of Siena in Italy. The priority is “embedded in the FAO Strategic Framework 2022-31, which will guide our work over the next decade,” he added.

To reach this goal, “we need to build stronger, more strategic partnerships with civil society organizations, parliamentarians, Indigenous Peoples, academia and research institutions, and the private sector, and especially with the youth.” the FAO Director General said.

Academic and research institutions are critical partners in this area. FAO is currently collaborating with over 80 of them worldwide, 10 of which are in Italy.

FAO has a Memorandum of Understanding with the PRIMA Foundation, a network of research and innovation institutions involving 19 countries in the Mediterranean that promotes innovation, research, technology transfer and training support.

The University of Siena is at the heart of this, serving as the host of the Italian Secretariat of the PRIMA Foundation.

The FAO Director-General announced that as part of the campaign “Together for the SDGs” FAO is launching a web App called “Urban Actions” to inspire the public, especially young people, to learn about the 2030 Agenda and how they can help achieve the global goals in their own city.

Qu encouraged the new gradu-

ates to download the app from a “SDGs Wall” which has been in place in Siena for the last few days, and learn about the specific actions they can take.

“Together, we can make our urban areas more inclusive, safe, green and resilient to ensure they work with nature, and improve city living.”

He said Siena was making great efforts to be a sustainable city, demonstrating a balanced approach to protecting the local environment while stimulating economic growth through good urban planning, land usage, and rural and urban development.

Qu also invited his young audience to participate in the World Food Forum to be held from October 17-21 at the FAO headquarters in Rome. It is the second of its kind, which will be entirely focused on empowering young people to actively shape our agrifood systems and achieve the SDGs, he said.

Wartime harvest starts in Ukraine but silos are already stuffed

A

T Oleksandr Peretiatko’s farm in central Ukraine, the harvest is just days away. In normal times, the crops would be sent off to ports on the Black Sea for export around the world.

This year, Peretiatko’s freshly cut grain will be stuffed instead into massive polymer silo bags snaking across the 5,000 hectares (12,000 acres) of farmland — because there’s nowhere else to put it.

From a dramatic loss of export revenue to mine-riddled fields and exploding machinery, Russia’s invasion has taken a massive toll on Ukraine’s agriculture sector. Now, with ports remaining closed despite international efforts to reach a deal, harvests are getting underway with silos still loaded with last year’s crops.

Farmers are searching for alternatives to store the growing stockpiles while already worrying about how much they’ll be able to plant for the 2023 season. That means Ukraine’s ability to supply the world with muchneeded grain may be limited even once ports reopen—production is already expected to be sharply lower this year.

Grain quality and yields would also suffer if crops are left longer in fields because of a lack of storage.

“We’ll dream next year about the problems we’re facing right now,” said Dmitry Skornyakov, chief executive of HarvEast, which farms in eastern and northern Ukraine. “Because next year’s problems, trust me, will be much, much worse.”

Ukraine was among the biggest exporters of wheat, corn and sunflower oil before the invasion, and the shut-off of supplies sent shockwaves

through global agriculture markets, helping stoke food prices to a record and raising concerns about hunger around the world.

Ukraine’s government expects grain production to fall about 40% versus 2021, after farmers lacked fertilizer or left land unsown. Even so, it’s carrying a backlog of 20 million tons into the season that starts next month.

A fifth of its grain elevators have also been damaged or lost to territory occupied by Russian forces, according to Ukraine’s agriculture minister. That could leave farmers short of 10 to 15 million tons of storage by October.

“Next year’s problems, trust me, will be much, much worse” Some crops are now flowing out of the country via rail, road and river, but the routes are lengthy and wait times long. Ukraine’s wheat exports typically peak just after harvest and neighboring EU nations will be contending with their own crops at the same time, overwhelming logistics.

“It’s long, difficult, expensive—a very big problem,” Skornyakov said.

“In a month, we’ll get the new harvest. And I expect that it will become even worse.”

His company has been battered

by Russia’s attacks. Of the 127,000 hectares HarvEast farmed before the war, about 80,000 are in occupied areas. Another 9,000 hectares nearer Kyiv were riddled by mines, and half wasn’t cleared in time to be seeded.

A tractor exploded in one field.

On what’s still under its control, harvests of wheat and peas are nearing. The company has used silo bags

for the past decade, and will rely on them more than normal. Twenty to thirty percent of its crops were often sold directly from the field, an unfeasible prospect this season.

Read: Race Against Food Inflation Starts on Rusty Soviet Rail Tracks Ukraine should have room to store crops like wheat and barley, which are first to be harvested in summer, said Petro Melnyk, president of the Ukrainian Agribusiness Club. The bigger crunch lies in autumn for later-collected crops like corn.

Silo bags—which some farmers like him have used for several years—will undoubtedly help. Still, they won’t absorb the whole surplus and growers also need capacity to clean and dry grain, he said.

Plus, they can’t be used for some key crops like sunflowers, according to Skornyakov. The Ukrainian Grain Association said corn might be left longer in the fields, which could hurt quality and yields.

Ukraine has asked European partners for help preserving its next crops.

Mobile storage could add 15 million tons of capacity, its prime minister said. Other allies also pledged assistance, with US President Joe Biden saying it will build temporary silos in bordering nations like Poland.

Ukraine agribusiness company IMC has teamed up with other farms to ship in silo bags from Brazil, said chief executive Alex Lissitsa. Its elevators usually clear out in June, preparing to restock with the nearing wheat harvest. This year, they’ll still hold about 200,000 tons of last year’s corn, a third full.

Without a sales pickup soon, farm-

A WORKER operates a front end loader to move granules of phosphate fertilizer in a storage warehouse at the PhosAgro-Cherepovets fertilizer plant, operated by PhosAgro PJSC, in Cherepovets, Russia, on Thursday, December 2, 2021. BLOOMBERG NEWS

ers will have less funds to secure seed and inputs for winter-grain plantings that kick off as soon as August. Any production cutbacks could exacerbate tight world supplies even longer.

“That’s the beginning of the real global food crisis,” he said.

Fertilizer prices

THE fertilizer shortage that threw the agricultural sector into disarray and pushed food costs higher globally may be fading.

Crops across the world are dependent on nutrients from Russia, one of the biggest exporters, and the invasion of Ukraine four months ago roiled markets for the crucial chemicals. Ultimately, prices soared so high that farmers halted buying—and now the market has flipped. Fertilizer supplies are piling up from

Florida to South America. Ships are waiting to unload and companies are struggling to reduce stocks in ports and warehouses, according to people familiar with the matter.

In Brazil, warehouses are approaching maximum capacity because farmers are betting prices have farther to fall. As far back as March— just weeks after Russia invaded— North American potash reserves were at a six-year high, according to Bloomberg’s Green Markets and The Fertilizer Institute, as prices soared and farmers skipped applications.

Meanwhile, concerns that fertilizer supplies from Russia would be completely shut off haven’t panned out. Russian fertilizer sales are exempt from the sanctions imposed by the United States and the European Union in response to the war

on Ukraine, and some shipments are entering the US, according to cargo data tracked by Bloomberg. A ship carrying 12,000 metric tons of granular urea, a common nitrogen fertilizer, arrived from Russia with a bill of lading dated June 8. While the amount is relatively small, it confirms that the product has found a pathway to American shores.

The US government is even encouraging agricultural and shipping companies to buy and carry more Russian fertilizer.

Wholesale fertilizer prices are declining after soaring to multi-year highs. North American prices are the lowest they’ve been since January and a closely watched index for the continent is down 35 percent since touching a record in late March, according to Green Markets. Farmers are still awaiting lower prices as grains trend higher, expanding the arbitrage of delayed nutrient purchases.

Green Market’s North American weekly fertilizer price index dropped 4 percent this week, compounding last week’s 3 percent decline. Wholesale New Orleans urea fell to the lowest since August, while New Orleans ammonia inched higher by 2 percent amid rising overseas demand.

The slide in fertilizer prices—if it continues—may ease some of the concerns that farmers would skip applications of synthetic nutrients to save money, reducing crop yields and worsening food inflation and hunger in parts of the world. Still, it’s too early to tell whether prices will rebound if the war in Ukraine persists into a period when demand is seasonally higher. Bloomberg News

The World BusinessMirror

A6 Monday, June 20, 2022

US rejects China’s claims over Taiwan Strait as concerns grow

B

By Peter Martin & Jennifer Jacobs

iden administration officials have decided to reject a vague new assertion

by China that the Taiwan Strait is not “international waters” and are increasingly concerned the stance could result in more frequent challenges at sea for the democratically governed island, according to people familiar with the matter.

Chinese officials have made such remarks repeatedly in meetings with US counterparts in recent months, Bloomberg reported last week. That raises the prospect that China could be preparing a new challenge to US regional influence and military power in a key area of discord between the two countries.

China has long asserted that the Taiwan Strait is part of its exclusive economic zone, and takes the view there are limits to the activities of foreign military vessels in those waters. While China regularly protests US military moves in the Taiwan Strait, the legal status of the waters previously wasn’t a regular talking point in meetings with American officials.

The timing of the assertion is causing alarm within the administration, given that the global security environment is already fraught in the wake of Russia’s invasion of Ukraine.

In February, China and Russia suggested in a joint statement that they might support each other’s territorial claims in a way that one official said

Russia frees Ukrainian medic who filmed Mariupol’s horror

resembled a bid to carve out spheres of influence.

President Joe Biden has been briefed on the matter and his national security team is examining the Chinese claim to understand exactly what it entails, the people said. The team is looking at the language China has used to describe the strait in previous decades and is working with US allies to assess their interpretations of the language.

US officials are increasingly concerned that the claim may be a deliberate effort to muddy the legal interpretation of the sea around Taiwan in ways that could suggest that China regards it as an internal waterway, officials said. The administration has already conveyed its position to Beijing.

It’s unclear what China means by “international waters,” but the language may be intended to deter the US from sailing through the strait, a practice that Beijing has criticized as harming stability and sending the wrong signal to “Taiwan independence forces.”

T

ALLINN, Estonia—A celebrated Ukrainian medic whose footage was smuggled out of the besieged city of Mariupol by an Associated Press team was freed by Russian forces on Friday, three months after she was taken captive on the streets of the city.

Yuliia Paievska is known in Ukraine as Taira, a nickname she chose in the World of Warcraft video game. Using a body camera, she recorded 256 gigabytes of her team’s efforts over two weeks to save the wounded, including both Russian and Ukrainian soldiers.

She transferred the clips to an Associated Press team, the last international journalists in the Ukrainian city of Mariupol, one of whom fled with it embedded in a tampon on March 15. Taira and a colleague were taken prisoner by Russian forces on March 16, the same day a Russian airstrike hit a theater in the city center, killing around 600 people, according to an Associated Press investigation.

“It was such a great sense of relief.

Those sound like such ordinary words, and I don’t even know what to say,” her husband, Vadim Puzanov, told The Associated Press late Friday, breathing deeply to contain his emotion. Puzanov said he spoke by phone with Taira, who was en route to a Kyiv hospital, and feared for her health.

Initially the family had kept quiet, hoping negotiations would take their course.

But The Associated Press spoke with him before releasing the smuggled videos, which ultimately had millions of viewers around the world, including on some of the biggest networks in Europe and the United States. Puzanov expressed gratitude for the coverage, which showed Taira was trying to save Russian soldiers as well as Ukrainian civilians.

In a short video posted Saturday on Telegram, Taira thanked Ukrainian President Volodymyr Zelenskyy for his efforts to get her released. Addressing Ukrainians still held by Russia, with a catch in her voice, she said: “I know that everything will work out and we will all be home as I am now.”

Zelenskyy had announced Taira’s release in a national address.

China has ratified but the US has not, nations are entitled to territorial waters stretching 12 nautical miles from their coast. They may also claim an exclusive economic zone stretching another 200 nautical miles. Beyond that are the high seas. At its widest, the Taiwan Strait spans some 220 nautical miles.

Even if China were to use the same legal terms as other countries, it doesn’t interpret the associated rights in the same way as the US and its allies. China seeks to restrict what militaries can do in the area claimed as its exclusive economic zone, while the US and its allies have a much freer interpretation.

Foreign Ministry spokesman Wang Wenbin said at a news briefing in Beijing last week that China claims “sovereignty” over the Taiwan Strait.

“There is no such thing as international waters in international maritime law,” Wang said. “Relevant countries claim that the Taiwan Strait is in international waters with the aim to manipulate the Taiwan question and threaten China’s sovereignty.”

US-China relations are likely in the worst state since former President Richard Nixon’s historic trip in 1972 helped re-establish diplomatic ties between Washington and Beijing, Nicholas Burns, the US ambassador to China, said this month.

US National Security Adviser Jake Sullivan and China’s top diplomat, Yang Jiechi, met Monday in Luxembourg for more than four hours, in a sign that leaders are trying to keep high-level communications between the two sides open even as tensions increase. Biden told reporters on Saturday he’ll be talking to his Chinese counterpart Xi Jinping “soon,” without specifying a date. Bloomberg News

Wall Street and Fed botched calls for 2022

By Thyagaraju Adinarayan & Sagarika Jaisinghani

By Vasilisa Stepanenko & Lori Hinnant The Associated Press

The people said it also wasn’t clear yet whether China would take practical steps to enforce its position. Some previous Chinese claims, such as its proclamation of an air defense identification zone in 2013, have been only sporadically enforced. While China’s military has regularly probed Taiwan’s defenses with flights into the island’s own air defense identification zone in recent years, its maritime challenges have been more limited.

The White House and the Chinese embassy in Washington didn’t immediately reply to requests for comment.

The US is unlikely to be stopped by the more assertive language from China, whose claims over Taiwan have taken on a new focus after Russia invaded Ukraine in February. Some US officials believe that China is gauging the response in Washington to the Ukraine crisis as a proxy for how the US would deal with more aggressive action by Beijing against Taiwan.

US warships transit the Taiwan Strait several times a year while en route between the East and South China Seas, averaging about one trip a month since 2020. The US Navy has conducted at least five transits this year, according to data compiled by Bloomberg, and will probably continue to do so, seeing if Beijing will back its words with actions.

“The Taiwan Strait is an international waterway” where freedom of navigation and overflight “are guaranteed under international law,” State Department spokesman Ned Price said in an e-mail. “The United States will continue to fly, sail and operate wherever international law allows, and that includes transiting through the Taiwan Strait.”

Under the United Nations Convention on the Law of the Sea, which

Bloomberg News

S

o far 2022 has been a year where just about everyone on Wall Street got it wrong. As did the Fed, and a cadre of global central banks.

Back in December, strategists at the world ’s top investment firms like JPMorgan Chase & Co. predicted the S&P 500 would gain 5% in 2022.

Economists saw the US 10-year Treasury yield hitting 2% on average by the year’s end. And even Goldman Sachs Group Inc. lent credibility to the claims Bitcoin was on track to hit $100,000.

Yet six months later, an unprecedented conf luence of shocks has ended one the most powerful equity bull markets and sent safe-haven government bonds and other assets spiraling. The S&P 500 is down 23%, 10-year rates stand at 3.23% and Bitcoin has shed more than half its value.

The market has quickly turned from from “buy everything” to “sell everything,” with the multi-year “there is no alternative” (TINA) phenomena in equities now gone. Unforeseen events including the Russia-Ukraine war have contributed to the highest consumer prices in 40 years. And as a result, ultra-low interest rates and monetary stimulus—essentially the foundation of the post-pandemic rally—have evaporated as the Fed and its counterparts have sought to quell inflation.

“This is absolutely the end of TINA for the foreseeable future” said James Athey, investment director at abrdn in London. “With 8% inflation not much is attractive on a real basis.”

Even Jerome Powell, the central bank chairman, didn’t see the turbulence that was coming from inflation.

He expected price gains to decline to levels closer to the Fed’s longer-run goal of 2% by the end of 2022. But now

bond markets are flashing recession signals as the Fed’s aggressive rate hikes pose a risk to the economy’s growth.

“This time last year the Fed were themselves still expecting [rates] to be floored near zero at this point,” said Deutsche Bank strategist Jim Reid. In less than half a year, that needle now points to 3.5% by 2022’s end.

Bear with me

Even with the sharp declines, however, market gurus are keeping faith stocks will make a recovery by the end of the year.

Oppenheimer’s John Stoltzfus still sees the S&P 500 ending 2022 at 5,330 points, requiring a 45% rally in the next six months. A handful of others, including JPMorgan and Credit Suisse Group AG, have targets that require the index to rally at least 30% to be met. Wall Street strategists, on average, see the S&P 500 gaining 22% from Friday’s level in the latest Bloomberg survey.

To be sure, it’s anyone’s guess on when Russia’s war in Ukraine will end or the supply chain bottle necks due to China’s stringent Covid policies will ease, lifting price pressures in addition to the Fed’s policy tightening.

But for Max Kettner, chief multiasset strategist at HSBC Global Research, equities haven’t fully priced in a recession relative to other asset classes. “All in all, this means there is further weakness for risk assets in store over the summer months.”

The benchmark S&P 500 fell 51% from peak to trough between 2000 and 2002, and by 58% during the period of the global financial crisis.

Likewise, Morgan Stanley’s Michael Wilson—one of the few bearish voices in December—said the market’s more than 20% drop still doesn’t fully reflect the risks to corporate earnings.

Nowhere to hide

From the look of it, all one can do is stash cash under the mattress with

gold and US Treasuries—arguably the safest financial assets in the world— also sinking.

Stocks and bonds together are on track for their worst quarter ever.

Meanwhile, credit markets have also taken a battering.

So far this year the worldwide pool of the safest corporate debt has shed more than $900 billion, marking its worst first-half of a year on record, according to Bloomberg index data.

Measures of corporate credit risk are also spiking, with default-swaps insuring the debt of Europe’s highgrade firms sitting at the highest since April 2020.

Perhaps no other asset class has seen as wild of swings in 2022 as cryptocurrencies, however.

For all the calls for Bitcoin to hit $100,000 earlier this year and claims of it being an inflation hedge, the market for digital assets has been in a downward spiral.

Bitcoin has over lost two-thirds of its value since it touched a high of nearly $70,000 in November. Arguments the world’s largest cryptocurrency was akin to gold and an independent store of value have gone quiet.

Meanwhile, the crypto ecosystem of miners, traders and exchanges has been under growing scrutiny amid layoffs, freezes on withdrawals and liquidity problems.

It’s still not easy to get anything right in this market. There have been big rallies and big drawdowns, painting a bleak picture. But HSBC’s Kettner said this year’s trigger has been obvious.

“Just like investors were obsessed with the idea of ‘transitory inflation’ last year, the obsession of 2022 so far has been ‘peak inflation’,” he said. Inflation hasn’t turned out to be transitory, nor has it peaked yet.

As such, “the last few days have been brutal.” With assistance from John Cheng, Michael Msika, Hannah Benjamin, Tanzeel Akhtar and Ksenia Galouchko

Editor: Angel R. Calso

US opens Covid-19 vaccine to little kids; vaccinations begin next week

By Mike Stobbe

AP Medical Writer

N

EW YORK—The US on Saturday opened Cov id-19 v acc i nes to infants, toddlers and preschoolers.

The shots will become available next week, expanding the nation’s vaccination campaign to children as young as 6 months.

Advisers to the Centers for Disease Control and Prevention recommended the vaccines for the littlest children, and the final signoff came hours later from Dr. Rochelle Walensky, the agency’s director.

“We know millions of parents and caregivers are eager to get their young children vaccinated, and with today’s decision, they can,” Walensky said in a statement.

While the Food and Drug Administration approves vaccines, it’s the CDC that decides who should get them.

The shots offer young children protection from hospitalization, death and possible long-term complications that are still not clearly understood, the CDC’s advisory panel said.

The government has already been gearing up for the vaccine expansion, with millions of doses ordered for distribution to doctors, hospitals and community health clinics around the country.

Roughly 18 million kids will be eligible, but it remains to be seen how many will ultimately get the vaccines. Less than a third of children ages 5 to 11 have done so since vaccination opened up to them last November.

Here are some things to know: What kinds are available?

Two brands—Pfizer and Moderna—got the green light Friday from the FDA and Saturday from the CDC. The vaccines use the same technology but are being offered at different dose sizes and number of shots for the youngest kids.

Pfizer’s vaccine is for children 6 months to 4 years old.

The dose is one-tenth of the adult dose, and three shots are needed. The first two are given three weeks apart, and the last at least two months later.

Moderna’s is two shots, each a quarter of its adult dose, given about four weeks apart for kids 6 months through 5 years old. The FDA also approved a third dose, at least a month after the second shot, for children with immune conditions that make them more vulnerable to serious illness.

How well do they work?

I n st ud ies, v acc i n ated youngsters developed levels of virus-fighting antibodies as strong as young adults, suggesting that the kid-size doses protect against coronavirus infections.

However, exactly how well they work is hard to pin down, especially when it comes to the Pfizer vaccine.

Two doses of Moder na appeared to be only about 40% effective at preventing milder infections at a time when the Omicron variant was causing most Coovid-19 illnesses. Pfizer presented study information suggesting the company saw 80% with its three shots. But the Pfizer data was so limited— and based on such a small number of cases—that experts and federal officials say they don’t feel there is a reliable estimate yet.

Should my little one be vaccinated?

Yes, according to the CDC.

While Covid-19 has been the most dangerous for older adults, younger people, including children, can also get very sick.

Hospitalizations surged during the Omicron wave.

Since the start of the pandemic, about 480 children under age 5 are counted among the nation’s more than 1 million Covid-19 deaths, according to federal data.

“It is worth vaccinating even though the number of deaths are relatively rare, because these deaths are preventable through vaccination,” said Dr. Matthew Daley, a Kaiser Permanente Colorado researcher who sits on the CDC’s advisory committee.

In a statement Saturday, President Joe Biden urged parents to get them for their young children as soon as possible.

Which vaccine should my child get?

Either one, said Dr. Peter Marks, the FDA’s vaccine chief.

“W hatever vaccine your health care provider, pediatrician has, that’s what I would give my child,’’ Marks said Friday.

The doses haven’t been tested against each other, so experts say there’s no way to tell if one is better.

One consideration: It takes roughly three months to complete the Pfizer three-shot series, but just one month for Moderna’s two shots. So families eager to get children protected quickly might want Moderna.

Who’s giving the shots?

Pediatricians, other primar y care physicians and children’s hospitals are planning to provide the vaccines.

Limited drugstores will offer them for at least some of the under-5 group.

US officials expect most shots to take place at pediatricians’ offices. Many parents may be more comfortable getting the vaccine for their kids at their regular doctor, White House Covid-19 coordinator Dr. Ashish Jha said. He predicted the pace of vaccination will be far slower than it was for older populations.

“We’re going see vaccinations ramp up over weeks and even potentially over a couple of months,” Jha said.

Can children get other vaccines at the same time?

It’s common for little kids to get more than one vaccine during a doctor’s visit.

In studies of the Moderna and Pfizer shots in infants and toddlers, other vaccinations were not given at the same time so there is no data on potential side effects when that happens.

But problems have not been identified in older children or adults when Covid-19 shots and other vaccinations were given together, and the CDC is advising that it’s safe for younger children as well.

What if my child recently had Covid-19?

About three-quarters of children of all ages are estimated to have been infected at some point. For older ages, the CDC has recommended vaccination anyway to lower the chances of reinfection.

Ex perts have noted reinfections among previously infected people and say the highest levels of protection occur in those who were both vaccinated and previously infected.

The CDC has said people may consider waiting about three months after an infection to be vaccinated. Associated Press writer Zeke Miller in Washington contributed to this report.

The World BusinessMirror

www.businessmirror.com,ph

Monday, June 20 , 2022 A7

Massive floods leave millions homeless in India, Bangladesh

By Julhas Alam & Wasbir Hussain The Associated Press

D

HAK A, Bangladesh—Army troops were called in to rescue thousands of people stranded by massive floods that have ravaged northeastern India and Bangladesh, leaving millions of homes underwater and severing transport links, authorities said Saturday.

In India’s Assam state, at least nine people were killed in the floods and 2 million saw their homes submerged, according to the state disaster management agency. Lightning strikes in parts of neighboring Bangladesh have left at least nine dead since Friday.

Both countries have asked their militaries for help as more flooding looms with rains expected to continue

over the weekend.

In Sylhet in northeastern Bangladesh, on the banks of the Surma River, children sat on a window of an inundated house while other family members gathered on a bed inside their flooded home, some wondering how to make it through the ordeal.

“How can we eat (in this condition)?” said Anjuman Ara Begum, standing in the water inside her kitchen. “We are living on muri (puffed rice) and chira (flattened rice) and other things given by people. What else can we do? We can’t cook.”

Flights at Osmani International Airport in Sylhet were suspended for three days as floodwaters almost reached the runway, according to Hafiz Ahmed, the airport manager. The Sylhet Sunamganj highway also was flooded but motorbikes were moving along.

Water levels in all major rivers across the country were rising, according to the flood forecasting and warning center in Dhaka, the capital. The country has about 130 rivers.

The center said the flood situation is likely to deteriorate in the worsthit Sunamganj and Sylhet districts in the northeastern region as well as in Lalmonirhat, Kurigram, Nilphamari and Rangpur districts in northern Bangladesh.

The Brahmaputra, one of Asia’s largest rivers, breached its mud embankments, inundating 3,000 villages and croplands in 28 of Assam’s 33 districts across the border in India.

“We expect moderate to heavy rainfall in several parts of Assam till Sunday. The volume of rainfall has been unprecedented,” said Sanjay O’Neil, an official at the meteorological station

in Gauhati, Assam’s capital.

Several train services were canceled in India amid the incessant downpour over the past five days. In southern Assam’s Haflong town, the railway station was underwater and flooded rivers deposited mud and silt along the rail tracks.

India’s army has been mobilized to assist disaster response agencies in rescuing stranded people and providing food and other essentials. Soldiers used speedboats and inflatable rafts to navigate through submerged areas.

Last month, a pre-monsoon flash flood, triggered by a rush of water from upstream in India’s northeastern states, hit Bangladesh’s northern and northeastern regions, destroying crops and damaging homes and roads.

The country was just starting to recover when fresh rains flooded the

National Disaster Response Force personnel rescue flood-affected villagers in Korora village, west of Gauhati, India on Friday, June 17, 2022. AP Photo/Anupam Nath

same areas again this week.

Bangladesh, a nation of 160 million people, is low-lying and faces threats from natural disasters such as floods and cyclones, made worse by climate change. According to the U.N.’s In-

tergovernmental Panel on Climate Change, about 17% of people in Bangladesh would need to be relocated over the next decade or so if global warming persists at the present rate.

Hussain reported from Gauhati, India.

Biden falls while getting off bike after beach ride Huge crowds take to London streets to protest soaring costs

R

EHOBOTH BE ACH, Del.— President Joe Biden fell when he tried to get off his bike at the end of a ride Saturday at Cape Henlopen State Park near his beach home in Delaware, but wasn’t hurt in the tumble.

“I’m good,” he told reporters after US Secret Service agents quickly helped him up. “I got my foot caught” in the toe cages.

Biden, 79, and first lady Jill Biden were wrapping up a morning ride when

the president decided to pedal over to a crowd of well-wishers standing by the bike trail. Biden, who was wearing a helmet, took the spill when he tried to dismount, apparently falling on his right side and rolling on to his back before being helped up.

The president quickly collected himself and spent several minutes chatting with people who had gathered to watch him bike. Biden did not need medical attention and is “fine,” according to a White House statement.

Biden attended Mass at St. Edmond Catholic Church in Rehoboth Beach in the late afternoon. When he appeared after services, bystanders cheered and reporters shouted questions about how he felt. The president smiled and took three hops while making a motion with his hands like jumping rope.

The Bidens were spending a long weekend at their Rehoboth Beach home. They marked their 45th wedding anniversary on Friday. AP

L

ONDON — Thousands of people marched through central London on Saturday in a protest over the soaring cost of living in Britain.

Huge crowds flooded into the British capital for the rally to demand that the government do more to help people faced with bills and other expenses that are rising more quickly than their wages. Prime Minister Boris Johnson has been criticized for being slow to respond to the cost-of-living crisis. Inflation in Britain and across

Europe has been surging, as Russia’s war in Ukraine crimped supplies of energy and food staples like wheat.

Prices were already rising before the war, as the global economic recovery from the Covid-19 pandemic resulted in strong consumer demand.

Demonstrators carried banners with messages such as “Cut war not welfare.” T hey booed when they passed by 10 Downing Street, the prime minister’s residence, according to videos posted on social media.

Ben Robinson, who works for a housing charity in south London’s Brixton neighborhood, said the government doesn’t realize how bad things are going to be for the poor.

“We’ve got residents who are coming into our offices who are choosing between feeding their own kids, not themselves, their own kids, and paying rent and heating,” he said. “That is just not a choice that anyone should have to face, you know, in the fourth biggest economy in the world.” AP

A8

Monday, June 20, 2022 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Where is the Green Lantern?

W

E all have our favorite superhero from AntMan to Wonder Woman. There are two common factors about all these characters.

Each of them has a distinctive backstory and personality, and each one has his or her own version of superhuman powers.

However, one “superhero” is unlike all the others dating back to DC Comics’ Superman in 1938. That is because the Green Lantern, created in 1940, is in fact one of 13 individual superheroes.

“Each Green Lantern wears a ring that grants them a variety of possibilities. The full extent of the ring’s ability has never been rigorously defined, but two consistent traits are that it grants the power of flight and that all its effects are accompanied by a green light. Early Green Lantern stories showed the characters performing all sorts of feats with the ring, from shrinking objects to turning people invisible.”

The individuals who were chosen to be the Green Lantern all came from different backgrounds, including a railroad engineer, an architect, and a freelance artist. All take the place of their successors who fall one way or another in the line of duty as members of the Green Lantern Corps, an intergalactic law enforcement agency.

The position as “The Green Lantern” is more important than the individuals—Alan Scott, Hal Jordan, Guy Gardener, or Jessica Cruz.

Ezra Klein is an American journalist and political analyst. In 2014, he wrote a column titled “The Green Lantern Theory of the Presidency, explained.” His column was an apology as to why Barack Obama had failed to bring the “Hope and Change” that he had promised during his run for president.

According to Brendan Nyhan, the Dartmouth College political scientist who coined the term, the Green Lantern Theory of the Presidency is “the belief that the president can achieve any political or policy objective if only he tries hard enough or uses the right tactics.”

The Green Lantern is given a ring that lets its bearer create streams of green energy that can do all sorts of amazing things. The key is that its power is only limited by the wearer who must “be a person capable of overcoming fear.” In other words, the President is functionally all-powerful because he or she is the Green Lantern of the nation.

If the president cannot accomplish what was promised, then obviously he/she is not trying hard enough or not trying smart enough.

Intellectually, we know that there is not a single president, or person, for that matter, that has the power of the Green Lantern Corps. But do people vote for a candidate expecting that he or she will own the ring?

No one would expect a poll to accurately survey on the expectations voters had for the candidate of their choice. The best we can hope for is the “Approval” and “Trust” rating that comes after the election and throughout the term of office. Even asking if a candidate lived up to all the campaign promises is distorted because we are smarter than that. Further, we want to see the elected official to be working towards a goal that might not even be fully attainable anyway.

Maybe we want the Green Lantern in office even though we know it is impossible. But the Opposition—another word for election “losers”—likes to remind the voters that the sitting elected official is not the Green Lantern.

A closer look at the country’s manufacturing sector Atty. Jose Ferdinand M. Rojas II

RISING SUN

T

he manufacturing sector plays an important part in the country’s economic recovery. Once a year, the stakeholders gather together to review and discuss the manufacturing sector’s performance, study recent developments, and look at the present issues or concerns, as well as the ways to address them. The Manufacturing Summit is happening online this year with the theme: Shaping the Future of Philippine Industries: The Road to Resiliency through Innovation. You can register via https://bit.ly/mfgsummit2022 to attend the summit virtually, or watch the live-streamed event at fb.com/DTI.CIG on June 21 from 9:00 a.m. to 4:00 p.m.

Some of the topics to be presented and discussed include Economic Reforms for National Resiliency; Electric Vehicle Industry Development Act; Restructuring Fiscal Incentives; Science, Technology & Innovation (STI) and Advanced Manufacturing Policies, Digital Transformation and Future Skills Requirements, and STIcentered i3S, which stands for Inclusive Innovation Industrial Strategy.

This focuses on “building competi-

tive and innovative industries in the country, and strengthening their linkages in regional production networks and global value chains.”

The country has been on the road to industrialization and digital transformation. The Summit will look at the Philippines’ accomplishments and growth in this area, as well as the manufacturing-related policies we have recently adopted.

As the Duterte administration ends,

I

As a refresher, the 15-minute city concept means that almost all your daily activities can be confined to any point that is 15 minutes away from your residence. This will include where you shop or where you get basic services—your children’s school, your place of worship, your gym and recreation facilities, and, hopefully, where you work. As a result, there is better traffic and transport management and decongestion leading to communities and people becoming more efficient with their social and economic activities. This concept is now trending in many cities globally because of the pandemic. For us in the Philippines, we have the foun-

such as pedestrian lanes and bike lanes, or if indeed present, are occupied by vendors or used as tricycle terminals. Currently, there’s a P10.6 billion allocation from the national government (DBM local budget circular No. 42 dated January 2022) that can be utilized by the local governments for bike and pedestrian infrastructure, but the fund is expiring on June 30. We hope that the new administration will renew this, or, better yet, increase the funds and expand the coverage.

Incentives for local businesses. Most of the businesses present in local communities are small and medium enterprises. We have the Barangay Micro-Business Enterprise Law (RA 9178) that should provide the needed incentives for local enterprises to include tax incentives, exemptions from wage impositions, special credit windows as well as technical and marketing assistance.

All good, but we all know that this has not trickled down to majority of

Thomas M. Orbos

STREET TALK

✝ Ambassador Antonio L. Cabangon Chua

Editor in Chief Associate Editor News Editor

T. Anthony C. Cabangon Lourdes M. Fernandez Jennifer A. Ng Vittorio V. Vitug

Senior Editors

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Dennis D. Estopace Angel R. Calso

Online Editor

Ruben M. Cruz Jr.

Creative Director Chief Photographer Chairman of the Board President Advertising Sales Manager Group Circulation Manager

Eduardo A. Davad Nonilon G. Reyes D. Edgard A. Cabangon Benjamin V. Ramos Aldwin Maralit Tolosa Rolando M. Manangan

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by brown madonna Press, Inc.–Sun Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

nnn

It’s nice to see some of the pre-pandemic activities come to life again as we gradually return to normal, or to live our new normal lifestyles. One of

As a refresher, the 15-minute city concept means that almost all your daily activities can be confined to any point that is 15 minutes away from your residence. This will include where you shop or where you get basic services—your children’s school, your place of worship, your gym and recreation facilities, and, hopefully, where you work.

BusinessMirror A broader look at today’s business Publisher

the conference will also highlight the gains of the last six years and discuss the use of technologies that can support the establishment of more resilient industries.

Stakeholders and participants are encouraged to share their ideas on how to move the industry forward as we implement the laws and strategies applicable to the said sector.

them is the annual free music event Fête de la Musique, which held two online editions in 2020 and 2021.

Finally, this year, the festival is back to physical setups.

There will be live celebrations all over the nation: Siargao Island stage (June 21), Makati Pocket Stages (June 24), Sofitel Manila Stage (June 23, 24), Cebu Island Stages (June 25, 26), Baguio Island Stage (June 26), Palawan Island Stages (June 26, 28), and the Main Stage in Puerta Real Gardens, Intramuros (June 25 at 4:00 p.m.). It’s not just going to be a showcase of music and musicians, but also of the country’s prime tourist destinations. This is aligned with the Fête’s partnership with the Department of Tourism (DOT).

Brought to you by the Alliance Francaise de Manille, the Fête is celebrated in 130 countries and showcases some of the country’s best musicians. This year, there will be a “generous French-Filipino cross-cultural exchange while also harnessing the healing power of music, forging new friendships, and building and supporting communities.” The 75th anniversary of Franco-Philippine bilateral relations is also being celebrated at the event.

The 15-minute city concept as a crisis mitigation measure

Since 2005

Founder

The country has been on the road to industrialization and digital transformation. The Summit will look at the Philippines’ accomplishments and growth in this area, as well as the manufacturing-related policies we have recently adopted. As the Duterte administration ends, the conference will also highlight the gains of the last six years and discuss the use of technologies that can support the establishment of more resilient industries.

write again about the 15-minute city urban development concept as I firmly believe that this is the way for cities to survive and sustainably deal with problems such as traffic congestion, pollution, rising costs of deliveries of goods and services, and the declining general health of the population, among others. Adoption of this concept becomes even more practical in times of crisis or calamity, such as the current pandemic when we were all forced into lockdowns. Even more relevant is how this concept will help mitigate our current transport situation, which is greatly threatened by the spiraling prices of gasoline. With our mobility affected, we will be dependent all the more on our communities—hence the 15-minute city concept coming into play. dation for this concept and this in none other than the barangays, our basic unit of government. And pivoting to this should come naturally for most of our urban centers. But as we all know, there is still much work to be done and areas of improvement that need to be addressed. Among these are: Local infrastructure for personal mobility. We now see bike and pedestrian lanes all over the metropolis more than at any time in our urban past, but these lane networks are more on the main road corridors.

Except for the gated villages and the central business districts, most barangays are bereft of infrastructure

the micro enterprises. Focus then should be on aggressively engaging this sector and boosting its capabilities utilizing this law.

Improving connectivity and other government services. Encouraging people to spend more time in their communities would need reliable and affordable broadband connectivity that would allow them to work from home without much difference from the available infrastructure in their offices or schools.

We were forced to do this during the pandemic despite the shortcomings of our telco providers. The government should push for better services and capacity to be at least at the minimum tier as that of our Asian neighbors. On another note, improving other government services on the local level such as securing of licenses, certifications, and payments will definitely encourage people to just stay within the confines of their communities.

The 15-minute cities are not just short term, knee jerk solutions that city administrators globally can turn to in times of crisis, such as during the pandemic. With the cost of transport going up, this concept should be our long-term goal and direction. It is also a lifestyle change for all of us, with the end objective of making it our norm in a future world where calamities will not be the exception but will be the norm.

The author may be reached at tmo45@georgetown.edu

www.businessmirror.com.ph

Opinion

Is Russia to blame for food and energy crisis?

Statutory and regulatory accounting in the electric power industry

BusinessMirror

By Lito U. Gagni

W

E are seeing attempts to place the responsibility on Russia for developments in the global food and energy markets and the growing problems there. But the situation with the global food market did not become worse yesterday or even with the launch of Russia’s special military operation in Donbas, in Ukraine. And it was well explained by the President of Russia Vladimir Putin on June 3, 2022 who answered questions from Rossyia 1 TV channel.

The Russian leader reminded that the situation took a downturn in February 2020 during the efforts to counter the coronavirus pandemic when the global economy was down and had to be revived.

The financial and economic authorities in the United States, according to President Putin, of all things, found nothing better than to allocate large amounts of money to support the population and certain businesses and economic sectors.

The money supply in the United States grew by 5.9 trillion in less than two years, from February 2020 to the end of 2021—unprecedented productivity of the money printing machines. The total cash supply grew by 38.6 percent.

Apparently, the US financial authorities believed the dollar was a global currency, and it would spread, as usual, as it did in previous years, would dissolve in the global economy, and the United States would not even feel it. But that did not happen. And that was the first step—and a big one—towards the current unfavorable food market situation, because, in the first place, food prices immediately went up.

The second reason, according to President Putin, was European countries’ shortsighted policies, in regard to energy. Many political players in the United States and Europe have been taking advantage of people’s natural concerns about the climate, climate change, and they began to promote this green agenda, including in the energy sector.

It all seems fine, except for the unqualified and groundless recommendations about what needs to be done in the energy sector. The capabilities of alternative types of energy have been overestimated: solar, wind, any other types, hydrogen power—those are good prospects for the future, probably, but today, they cannot be produced in the required amount, with the required quality and at acceptable prices. And at the same time, they began to belittle the importance of conventional types of energy, including, and above all, hydrocarbons.

What was the result of this? Banks stopped issuing loans because they were under pressure. Insurance companies stopped insuring deals. Local authorities stopped allocating plots of land for expanding production and

The crop yield depends on the quantity of fertilizer put into the soil. As soon as it became clear that our fertilizers would not be in the world market, prices instantly soared on both fertilizers and food products because if there are no fertilizers, it is impossible to produce the required amount of agricultural products. reduced the construction of special transport, including pipelines.

All this led to a shortage of investment in the world energy sector and price hikes as a result. The wind was not as strong as expected during the past year, winter dragged on, and prices instantly soared.

On top of all that, the Europeans did not listen to Russia’s persistent requests to preserve long-term contracts for the delivery of natural gas to European countries. They started to wind them down. This had a negative effect on the European energy market: the prices went up.

Russia has absolutely nothing to do with this.

But as soon as gas prices started going up, fertilizer prices followed suit because gas is used to produce some of these fertilizers. Everything is interconnected. As soon as fertilizer prices started growing, many businesses, including those in European countries, became unprofitable and started shutting down altogether. The amount of fertilizer in the world market took a dive, and prices soared dramatically, much to the surprise of many European politicians.

The crop yield depends on the quantity of fertilizer put into the soil.

As soon as it became clear that our fertilizers would not be in the world market, prices instantly soared on both fertilizers and food products because if there are no fertilizers, it is impossible to produce the required amount of agricultural products.

One thing leads to another, and Russia has nothing to do with it.

The collective West made a host of mistakes themselves, and now they are looking for someone to blame. Of course, Russia is the most suitable candidate in this respect.

Mr. Gagni is Special Projects Editor, Philippines Graphic Magazine

By Alfredo J. Non

Part three

I

continue my discussion of the major differences between the statutory and regulatory accounting rules that govern the energy power industry.

Depreciation IN both cases, depreciation represents the systematic allocation of costs over the life of the asset. For statutory accounting purposes, several methodologies are generally accepted (straight-line, accelerated, etc.). However, for regulatory purposes, straight-line is the predominant methodology and there is the concept of regulatory compact being observed.

Under this concept, the investor is given an additional benefit in return for his commitment to invest.

The investor is guaranteed a return of his investment. With inflation, the value of the asset over time decreases.

The depreciation fund—the accumulated cash generated by depreciation will not be at the same original value of the asset because it will be eaten up by inflation.

Because the investor is given the

benefit of recovering his investment in the asset in full, any effect of inflation on the value of the asset is allowed to be recovered either through a revaluation of the asset base upward (resulting in higher depreciation) or by using a nominal WACC on the historical value of the asset (where inflation is built in to the WACC), which means higher return on investment.

A difference in practice, therefore, can give rise to a difference in income recognition, deferred income tax and difference in amount and treatment of depreciation.

Creation of a Depreciation Fund

Commonwealth Act 146 and subsequent laws affecting the industry (as well as certain ERC pronouncements) require the investor to set up a depreciation fund in a separate bank account. The funds

Bloomberg Opinion

T

hroughout the entire Cold War and in the decades since, Russia was a stable supplier of gas to Europe. That changed this week.

Russia slashed gas supplies in apparent retaliation over Europe’s support for Kyiv. After its biggest moves yet to use energy as a weapon, gas rationing in the region is now a very real prospect.

The squeeze caused prices to surge, added pressure to the region’s economy and could strain European solidarity—all victories for the Kremlin that came as European leaders underlined support for Ukraine during a high-profile trip to the country.

With European utilities forced to tap reserves intended to cover needs for the winter, government controls of gas distribution could start within months. If Russia completely shuts its main link, the region could run out of supplies by January, accord-

ing consultant Wood Mackenzie Ltd. “It’s a serious situation, a tense situation,” Germany Economy Minister Robert Habeck said in an interview with ARD television on Thursday. “It’s a trial of strength between Western allies and Russia.”

The heightened alarm was triggered after the Kremlin cut flows by about 60 percent through the Nord Stream pipeline, which pumps gas straight to Germany. The diminished deliveries had a knock-on effect for France, Austria and the Czech Republic.

Germany’s Uniper SE, the biggest buyer of Russian gas in Europe, is receiving 60 percent less gas than ordered. Italy’s Eni SpA received just half of its requested volumes from state-owned Gazprom PJSC on Fri-

accumulated, including the earnings of the fund, are to be used only for asset replacement or acquisition.

Some players object to this requirement because they claim it is an inefficient way of managing available funds. It may be so, but the objective of the law is for the protection of the consumers against the ills of having more than enough funds—mismanagement of funds, which can lead to disruption of utility operations because of unavailability of the necessary funds for replacement.

In the past years, many Distribution Utilities (DU) are in violation of this law and have been fined for it.

They do not mind because the benefit to the owners can be much more than the fine to be paid. On an asset fund balance running in millions of pesos, a maximum fine of only P200,000 encourages non-compliance. Noncompliance means the depreciation fund is co-mingled with other investible funds. As such, the total income of the fund is reflected in the income statement as regular income and, under the rules, may be shared 50-50 between the owners and consumers.

But why comply if complying would mean 100 percent of the depreciation fund income goes to the fund

A9

and towards asset replacement and no share for the investors.

Unless the law is amended and/or the penalties increased, compliance is difficult to attain. If this continues, there is a continuous transfer of benefits from the consumers to the owners because the ultimate effect is to lower replacement cost.

And, because of the fund income, this ultimately means lower DU rates. Any DUs that violates the law should be audited in more detail because with the co-mingling of funds, what should have been used to lower the cost of replacement is included in operating income. This unnecessarily inflates the amount available for dividends.

To be continued Alfredo J. Non is a CPA by profession and a former Partner at SGV & Co. He served as Commissioner of the Energy Regulatory Commission till he completed his term in 2018. He also served as Director and Executive Officer of several private companies and a former professor in Financial Management at the Ateneo Graduate School of Business.

This column accepts articles from the business and academic community for consideration for publication. Articles not exceeding 600 words can be e-mailed to jltantorres@up.edu.ph

Biden’s optimism collides with mounting political challenges

By WILL WEISSERT & ZEKE MILLER | The Associated Press

W

ASHINGTON—Democrats are going to hold onto the House after November’s midterm elections. They will pick up as many as four seats in the Senate, expanding their majority and overcoming internal dissent that has helped stifle their agenda.

As the challenges confronting President Joe Biden intensify, his predictions of a rosy political future for the Democratic Party are growing bolder. The assessments, delivered in speeches, fundraisers and conversations with friends and allies, seem at odds with a country that he acknowledged this past week was “really, really down,” burdened by a pandemic, surging gas prices and spiking inflation.Biden’s hopeful outlook is in line with a sense of optimism that has coursed through his nearly five-decade career and was at the center of his 2020 presidential campaign, which he said was built around restoring the “soul of America.” In a lengthy Oval Office interview with The Associated Press on Thursday, Biden said part of his job as president is to “be confident.”

While presidents often try to emphasize the positive, there is a risk in this moment that Biden contributes to a dissonance between Washington and people across the country who are confronting genuine and growing economic pain.

Few of Biden’s closest political advisers are as bullish about the party’s prospects as the president. In interviews with a half-dozen people in and close to the White House, there is a broad sense that Democrats will lose control of Congress, and that many of the party’s leading candidates in down-ballot races and contests for governor will be defeated in an election Biden himself can do little to help.

The seeming disconnect between Biden’s view and the political reality has some in the party worried the White House has not fully grasped just how bad this election year may be for Democrats.

“I don’t expect any president to go out and say, ‘You know what, ‘We’re going to lose the next election,’” said Will Marshall, president and founder of the Progressive Policy Institute, which is in regular contact with the White House’s policy team. What might serve Biden well instead, Marshall said, would be “a sober sense of, ‘Look, we’re probably in for a rough night in November, and our strategy should be to remind the

Gas rationing is getting closer for Europe

By Isis Almeida, Anna Shiryaevskaya & Elena Mazneva

Monday, June 20, 2022

day, and France’s Engie SA and Austria’s OMV AG have been hit as well.

President Vladimir Putin upended decades of reliable energy relations by gradually curbing supplies in small steps since the war started in late February, and then accelerated the moves this week.

“This further reduction is to make storage-refilling challenging at the EU level and to test the EU’s fragile unity,” said Thierry Bros, a professor at the Paris Institute of Political Studies. “This will continue until the tap is completely shut off.”

Propelled by the tensions, European natural gas prices surged about 50 percent to the biggest weekly gain since the early stages of Russia’s war in Ukraine. The region has little alternative to Russia’s pipelines, especially for the critical winter months.

There’s little spare capacity from Norway and the Netherlands, and liquefied natural gas cargoes are expected to become tighter.

China, the world’s top importer of LNG in 2021, has cut back spot purchases this year after Covid-19 re-

strictions sapped demand. But usage is likely to bounce back this winter, pitting China against Europe for a dwindling amount of spare LNG. Repairs to a key Texas export terminal will further hamper supply.

On Friday, the European Commission recommended that Ukraine be granted candidate status, a day after German Chancellor Olaf Scholz, French President Emmanuel Macron and Italian Prime Minister Mario Draghi traveled to Kyiv and threw their weight behind the effort.

Even amid the show of support, gas was an issue. After meeting with Ukrainian President Volodymyr Zelenskiy, Draghi accused Russia of “lies” in blaming technical maintenance for lower Nord Stream deliveries. Italy may trigger an emergency gas plan as soon as next week if Russia continues to curb supplies, a move that may involve a bigger reliance on dirtier fuels.

Germany, which is at the first level of its own three-stage crisis plan, is considering a range of options to reduce demand such as allowing land-

country what’s at stake.’”

The White House is hardly ignoring the problem.Jen O’Malley Dillon, Biden’s 2020 campaign manager who now serves as one of his deputy chiefs of staff, runs the political team from the West Wing along with Emmy Ruiz, a longtime Texas-based Democratic political consultant.

O’Malley Dillon coordinates strategy among the White House, the Democratic National Committee and an array of outside party groups.

Cedric Richmond, a former Louisiana congressman who co-chaired Biden’s 2020 campaign and was one of his closest White House advisers, left for a job with the DNC in April.

“We understand that, you cannot govern if you can’t win,” Richmond said in an interview. “We are treating it with that sense of urgency.”

Returning to the White House is veteran strategist Anita Dunn. Biden turned to her during an especially low political moment in February 2020, giving her broad control of his thencash strapped presidential campaign as it appeared on the brink of collapse after a disastrous fourth-place showing in the Iowa caucus.

But where White House officials last year harbored hopes that voters could be convinced of Biden’s accomplishments and reverse their dismal outlook on the national direction, aides now acknowledge that such an uphill battle is no longer worth

fighting. Instead, they have pushed the president to be more open about his own frustrations—particularly on inflation—to show voters that he shares their concerns, and to cast Republicans and their policies as obstacles to addressing these issues.

In public, Biden has betrayed few concerns about his party’s fortunes this fall, opting instead for relentlessly positivity.

“I think there are at least four seats that are up for grabs that we could pick up in the Senate,” the president told a recent gathering of donors in Maryland. “And we’re going to keep the House.” Biden meant Ohio, Pennsylvania and Wisconsin, with potential longer shots in North Carolina or Florida possibly representing No. 4. Aides say the president is simply seeking to fire up his base with such predictions. But one laughed when asked if it was possible that Democrats could pick up four Senate seats.

The party’s chances of maintaining House control may be bleaker.

Biden has traveled more since last fall, promoting a $1 trillion public works package that became law in November, including visiting competitive territory in Minnesota, Virginia, Wisconsin, Michigan and New Hampshire. During a trip to Democratic Rep. Cindy Axne’s Iowa swing district, the president declared, “My name is Joe Biden. I work for Congresswoman Axne.”

lords to reduce heating in the winter and implementing an auction platform for companies to sell their consumption rights. Europe’s largest economy, which is reliant on Russia for more than a third of its supplies, has called for solidarity and urged people to save energy to thwart Putin.

“Everything depends on the EU gas-sharing mechanism between countries, and regulatory decisions on how to share available gas within countries,” Jonathan Stern, a distinguished research fellow at the Oxford Institute for Energy Studies.

“An early cold, windless winter would create early problems.”

In Germany, the network regulator, known as BNetzA, would implement rationing if the government declares a national gas emergency. The Bonn-based agency has said leisure venues would likely see reductions, while consumers and critical public services such as hospitals would be protected. Companies could face disruption.

“The current reductions of Russian gas deliveries can put all of us—

consumers as well as industry—in a very serious situation,” Klaus Mueller, BNetzA’s chief, said on Twitter.

“As long as we can, we must avoid this through gas savings and storage.”

The squeeze will unnerve economic policy makers as they try to contain record inflation. An additional increase in energy costs risks undermining efforts by the European Central Bank to rein in price increases by starting to raise interest rates next month.

Concern about economic growth is also picking up. Consumers are being squeezed by the rising cost of living, and the prospect of energy rationing and steeper gas bills could further dent confidence. For Germany’s outsized manufacturing sector, the issue exacerbates input shortages that have put it on the back foot.

In an effort to respond, Group of Seven officials are laying the groundwork for leaders to potentially discuss the introduction of a price cap on energy imports from Russia, according to people familiar with the matter.

A10 Monday, June 20, 2022

VISITING PINOY LAWYER SHOT IN PHILADELPHIA, ON LIFE SUPPORT

By Malou Talosig-Bartolome @maloutalosig

P

HILIPPINE authorities have asked Philadelphia police to speed up investigation, and render justice to the family of a 36-year-old Filipino lawyer visiting from the Philippines, who is on life support after unknown gunmen shot him and his mother while on their way to an airport Saturday.

The lawyer, identified as John Albert “Jal” Laylo, was hit in the head by one of six bullets fired at their Uber car, Consul General in New York Elmer Cato reported.

Information earlier relayed to Cato’s office said Laylo had succumbed, but Cato corrected this on Sunday evening.

“We have just been informed that Atty. John Laylo, the victim in Saturday’s random shooting incident in Philadelphia, remains on life support. He has not been pronounced dead, contrary to earlier information conveyed to the Consulate General of the Philippines in New York. We ask kababayan to pray with us so that he would be able to pull through,” Cato said in a Viber message.

In an earlier statement, the consul general had said: “We are also in touch with police authorities in Philadelphia who informed us that the case is being investigated and that no arrests have been made so far.”

According to Cato, the Con-

sulate General in New York first received an alert about the shooting from incoming Secretary of Migrant Workers Susan Ople.

“As soon as we were informed of the incident we reached out to relatives of the victim and authorities in Philadelphia. Deputy Consul General Arman Talbo, who was then in Philadelphia, was also instructed to proceed to the hospital where the shooting victim and his mother were taken.

“Based on information gathered by the Consulate, the victim and his mother, who were visiting relatives in Philadelphia, were on their way to the airport at around 4 a.m. to catch a flight to Chicago when shots were fired at Uber car they were riding in.”

Cato said the victim “was hit in the head by one of six bullets fired by suspect/suspects and was taken to a local hospital where he was declared in critical condition. The mother sustained minor wounds from shattered glass from the car window.”

Deputy Consul General Talbo and a leader of the Filipino Community in Philadelphia were able to talk to the mother, Cato said, adding he himself also assured the mother “that we are ready to extend the necessary assistance.”

The Philippine Consulate General in New York urged authorities in Philadelphia “to do what is necessary to bring the perpetrator of this crime to justice.”

PNS on meat product labels eyed amid non-compliance

T

By Jasper Emmanuel Y. Arcalas

@jearcalas

HE Philippines is crafting a national standard on meat labeling to address the issue of non-compliance with existing labeling standards for both locallyproduced and imported meat products.

The Bureau of Agriculture and Fisheries Standards, an attached bureau of the Department of Agriculture (DA), has started conducting public consultations on its prospective Philippine National Standard (PNS) on labeling of meat products (pork, beef and chicken).

The BAFS held its first virtual public consultation on the meat labeling PNS earlier this month after a series of meetings by the technical working group (TWG) on the new standard.

The prospective meat labeling PNS shall apply to both locallyproduced and imported meat products in accordance with the national treatment principle of the World Trade Organization, said Karen Kristine A. Roscom, Division Chief, of the Standards Development Division at BAFS. The meat labeling PNS shall only cover business-to-business transactions or movement of meat products, according to BAFS. This means that

the prospective meat labeling PNS will not cover labeling at the retail level.

“This standard applies to the labeling of fresh chilled and fresh frozen meat intended for trade, commerce, and further processing or fabrication,” read the draft PNS as of June 5, a copy of which was obtained by the BusinessMirror.

Under the draft meat labeling PNS, product labels must include the name of the product, net quantity, name and address of slaughterhouse/packer/country of origin, date of packaging/production, and lot identification code, among others.

The Meat Importers and Traders Association (MITA) lauded the BAFS’ efforts to craft a PNS on meat labeling, which the group noted would “contribute” to the “growth” and “modernization” of the country’s meat industry.

“We laud the government regulatory agencies, the academe, the industry stakeholders and other nongov-

ernment organizations in the TWG tasked with establishing a Philippine National Standard on Fresh Chilled and Fresh Frozen Meat–Product Standard-Labeling,” MITA Director Arnel Almira told the BusinessMirror.

“The TWG’s ongoing discussion is a healthy exchange of ideas based on science and internationally accepted standards. MITA is confident that the standard agreed by the TWG will contribute to the growth and modernization of the meat industry,” Almira added.

Long road ahead

THE BAFS noted that the establishment of the meat labeling PNS is still a long road ahead. The BAFS has tentatively scheduled its fifth TWG meeting on the working draft of the meat labeling PNS next month followed by a final stakeholder consultation in September.

The BAFS aims to conduct a finalization meeting for the final draft of the meat labeling PNS in October, with possible approval of the document by the Agriculture Secretary in November.

The BAFS emphasized that the meat labeling PNS, despite being approved by the agriculture secretary, shall remain voluntary unless pertinent government agencies issue corresponding orders adopting the new PNS. “The PNS will remain voluntary even if the DA secretary signs it.

What makes it mandatory is the is-

suance of a regulation in the form of a department circular,” Roscom said.

The issue of labeling is important to the country’s meat industry. It became one of the reasons for supply disruptions last year after the National Meat Inspection Service (NMIS) ordered strict labeling rules.

(Related story: https://businessmirror .com.ph/2021/08/11/ meat-labeling-rules-seen-affecting-food-supply/) The various NMIS orders on meat labeling caused panic among foreign suppliers, who could not immediately meet the new rules issued at short notice, forcing them to stop loading shipments bound for the Philippines.

Changes in labeling information, particularly adding specific details, were a logistical problem to exporters who have to create a label specific template for the Philippines, thus incurring additional costs. (Related story: https://businessmirror. com.ph /2021/08/04/tradersworry-over-label-rules-for-meatimports/) Fortunately, Agriculture Secretary William D. Dar intervened and ordered the NMIS to rescind its orders on meat labeling, averting further disruptions on the country’s meat supply. (Related story: https://businessmirror. com.ph /2021/11/01/govt-recalls-new-imported-meat-labelrules-amid-furor/

DOE asks New gov’t faces myriad risks, but there’s room for ERC help on hope–BBM Econ Team Luzon grid’s

T

HE incoming administration will be facing multiple challenges when it assumes office on June 30, but strong fundamentals and bright macroeconomic prospects provide room for optimism, according to a briefer gathered by President-elect Ferdinand “Bongbong” Marcos Jr. from his designated Economic Team.

“We have all heard encouraging statements from the incoming economic managers led by outgoing Bangko Sentral governor and incoming finance chief, Benjamin Diokno, that our new administration will be taking off from sound economic fundamentals,” said Marcos, referring to the briefer.

“It will not be an easy road ahead, but we are not without the necessary wherewithal and elbow room to manage the challenges,” he added.

Among the challenges Marcos will have to contend with are government’s Covid-19 exit strategy, soaring oil prices, accelerating inflation rate, effects of the war in Ukraine, and a looming worldwide food crisis.

While Covid-19 stalled the Philippines’s momentum from prepandemic annual growth by at least 6 percent, “now we have bounced back and returned to our robust growth path,” Diokno had said, in a speech in Manila on June 13.

“The International Monetary Fund shares the view about the Philippines’s favorable economic prospects vis-à-vis its peers. In its latest World Economic Outlook report, the IMF projects the Philippines to post the fastest growth in the region this year at 6.5 percent.”

Diokno explained the Philippine economy is outperforming neighbors, growing by 8.3 percent in the first quarter of 2022, exceeding Malaysia, Indonesia, Vietnam, Singapore, and Thailand.

He noted broad-based expansion in the first quarter of 2022, with agriculture, forestry, and

fishing growing by 0.2 percent; industry by 10.4 percent; and services by 8.6 percent.

Still reeling from the effects of the pandemic, the manufacturing sector is also performing aggressively with the S&P Global Philippines Manufacturing Purchasing Managers’ Index reaching 54.1 percent in May this year—the highest in over four years.

Consumer and business confidence are on an upswing: consumer sentiment is seen to hit 30.4 percent for the next 12 months, while business confidence index is expected to hit 69.8 percent for the same period after rising to 59.7 percent in the second quarter of 2022.

The Philippines’s foreign direct investments are “soaring,” with net inflow jumping by 8 percent to 1.71 billion US dollars in January and February 2022, after hitting a record high of 10.5 billion US dollars in 2021.

Gross international reserves (GIR) as of end-April 2022 stood at $106.8 billion, equivalent to 9.4 months’ worth of imports— thrice more than the minimum standard of 3 months which the Bangko Sentral ng Pilipinas (BSP) has to maintain.

A country’s GIR is deemed “adequate” when it can finance at least 3 months’ worth of the most immediate obligations: imports of goods and debt service.

D iok no f u r t her re por ted , “Household consumption increased by 10.1 percent, while government consumption grew by 3.6 percent; exports and imports also improved with 10.3 percent and 15.6 percent expansion, respectively.”

Employment has “significantly improved,” with 1.5 million jobs created from February to March this year, from an unprecedented 17.6-percent unemployment rate at the height of lockdowns in April 2020.

Continued on A4

power alerts

By Lenie Lectura @llectura

T

HE power interruption last Saturday has prompted the Department of Energy (DOE) to seek the Energy Regulatory Commission’s (ERC) assistance in addressing the incident.

The National Grid Corporation of the Philippines (NGCP) placed the Luzon grid on red alert Saturday afternoon, but this was lifted at 5:30 p.m. However, the grid was placed on yellow alert from 6 to 11 p.m. There was a “grid disturbance” that led to power interruption in several areas.

This prompted the DOE to instruct the NGCP to immediately resolve the transmission line issues, submit to the DOE the list of affected customers that experienced power interruption, and explain the details of the incident. The DOE has also initiated its coordination with the ERC in addressing this matter.

The ERC, for its part, said in a text message, through commissioner Atty. Rexie Digal, “There are submissions on this required from NGCP. We shall look into the reports.”

NGCP said it “monitored a grid disturbance which led to the tripping of the Hermosa-Limay 230kV Lines 1 and 2, causing multiple plant trippings.

The lines were subsequently restored at 2:35 p.m. and 2:44 p.m., respectively.

We are currently determining the root cause for the said outage.”

The Manila Electric Company (Meralco) confirmed that it had conducted Automatic Load Dropping (ALD) at 1:53 p.m. last Saturday, but said power was fully restored at 2:11 p.m. “[The ALD] was due to the decrease of an approximate 1200 MW in Meralco’s load affecting around 1.6 million customers in portions of Caloocan, Valenzuela, Malabon, Manila, Makati, Muntinlupa, Las Piñas, in Metro Manila; as well as parts of Bulacan, Rizal, Laguna, Batangas and Cavite,” Meralco said in a statement.

Companies

Editor: Jennifer A. Ng

Monday, June 20, 2022

B1

Grab aims to retain drivers via provisional fare hike

By Lorenz S. Marasigan

W

@lorenzmarasigan

ith only a third of the pre-pandemic fleet of Grab Philippines—or just about 25,000 drivers—operating today due to the skyrocketing prices of fuel, Grab is seeking an increase of P20 in base fare to retain existing drivers and entice more into its platform.

Grab Senior Director for Strategy and Operations Ronald Roda said on the sidelines of Grab’s 10th anniversary the super app’s petition is set to be heard with the Land Transportation Franchising and Regulatory Board (LTFRB) on June 29.

“With the increase in gas prices, it is much, much harder to attract drivers into the platform because

DOJ junks raps against Olivia Yanson

T

he Department of Justice (DOJ) has dismissed the case filed by the Yanson siblings against the group of their matriarch, Olivia Yanson, for taking over the operations of the country’s largest bus company.

Roy V. Yanson, Emily V. Yanson, Ma. Lourdes Celina Yanson-Lopez and Ricardo V. Yanson Jr.—dubbed the Yanson Four—filed charges of perjury, falsification of public documents and qualified theft against the group of their mother who is now in control of Rural Transit Mindanao Inc., Bachelor Express Inc. and Mindanao Star Bus Transport Inc. The cases, however, were filed by lawyer Sigfrid Fortun on behalf of the siblings. In a resolution dated April 27, Senior Assistant State Prosecutor Philip L. dela Cruz denied the motion for reconsideration filed by Fortun challenging the DOJ Resolution dated October 18, 2021, which already dismissed the charges filed by Fortun against Olivia and her camp, including Ginnette Y. Dumancas, Leo Rey V. Yanson, Anita G. Chua, Daniel Nicolas Golez, Rey Ardo and Charles M. Dumancas.

“Since the very complaint-affidavit executed by attorney-in-fact Atty. Sigfrid A. Fortun suffers from an inherent legal flaw or infirmity: hearsay and therefore inadmissible in evidence, there is no need to pass upon the other grounds raised by the former in his motion for reconsideration as the same adverse verdict must necessarily be rendered on said other arguments that are anchored on the same defective complaint-affidavit,” the DOJ said in its resolution.

The DOJ said that with the failure by the Yanson siblings as complainants to attend the preliminary investigation, the complaint-affidavit of Fortun should be “dismissed for being hearsay in nature.”

“A careful reading of the complaintaffidavit executed by Attorney-in-Fact Atty. Sigfrid A. Fortun would readily show that he did not attest that he was personally present during the events/ incidents/happenings material in his complaint affidavit like the alleged board meetings, stockholders meetings and the like. Such omission is fatal to his complaint as it is an elementary legal principle that hearsay evidence cannot be the basis of probable cause,” the DOJ said. VG Cabuag

they are afraid of what might happen. Not to mention the existing ones are complaining that they are kind of at the end of their patience as far as gas prices are concerned,” he said.

The pandemic took a toll on a lot of Grab drivers, some of whom had their vehicles repossessed by the banks because they defaulted on their mortgages. Others were also

discouraged by the high prices of fuel in the local market.

Grab drivers are estimated to have lost as much as 20 percent of their income due to the price of gas, Roda said.

To provide relief to drivers, Grab has reduced its cut on variable commission scheme for drivers, as well as providing a peak-hour incentive to drivers.

But these are not enough, Roda said. Hence, Grab is seeking a P20 increase in its base fare, which will result in an additional income of about P200 per day for drivers.

“P200 is about 2.5 liters of additional gasoline—that’s what we’re just asking now. It’s not a full price increase but something that is faster just to be able to help the community.

We want to be, in many ways similar to the jeepney asking, just give us a provisional one and we can work on a longer, more sustainable increase,” Roda said. The base fare of Grab currently sits at P40 for its four-seater

option and P50 for its six-seater service. Its minimum fare is at P80.

The P20 ask of Grab is “just enough to cover for the meantime the additional increase in prices for oil. Of course, we want to have a better dialogue to talk about the entire fare matrix but this is complicated,” he added.

Should the LTFRB approve the provisional increase in base fare, Roda said he expects “one, the existing drivers won’t quit, and second the supply will increase because they will be enticed to apply.”

The transport regulator has opened 8,000 slots to the transport network vehicle service (TNVS) community, and according to Roda these are “currently being filled up very, very slowly.”

With the current supply of Grab on the road, Roda said passengers now have 3 out of 10 chance of getting a ride immediately, as opposed to the 8 out of 10 chance before the pandemic.

B2

Companies BusinessMirror

Monday, June 20, 2022

NGCP seeks provisional authority to start CCIP

T

By Lenie Lectura

@llectura

he National Grid Corporation of the Philippines (NGCP) is seeking provisional authority to implement its Camarines Sur-Catanduanes Interconnection Project (CCIP) so that consumers would have access to a more reliable and competitive generation power source in the Luzon grid.

In its application filed with the Energy Regulatory Commission (ERC), the grid operator said Cat-

anduanes’ peak demand reached 15megawatts (MW) in 2020 while the total contracted supply in the

BusinessMirror file photo

same year was only at 10.18MW. As such, existing power plants in Catanduanes Island cannot accommodate and keep up with the growing demand of electricity, NGCP said.

“To address this, the implementation of a long-term solution for a reliable and competitive power supply must commence as early as possible. Considering NGCP needs 48 months to fully complete the CCIP, the implementation must commence immediately. Thus, the prayer for the issuance of provisional authority,” NGCP said.

The proposed CCIP involves laying down of submarine cables and the installation of overhead transmission lines. The interconnection, said NGCP, will sup-

port the load growth and power demand by the Catanduanes Island thereby pushing the socioeconomic development through the government’s economic plans and programs for the island in the near and long term.

Catanduanes is the 12th largest island in the countr y. Its economy is driven by agriculture, fishing, and tourism. Electricity demand is expected to grow within the next few years considering the development plans and programs of the government aimed to attract investors and which fosters economic progress in the province.

Catanduanes Island is being served by the First Catanduanes Electric Cooperative Inc.

STOCK-MARKET OUTLOOK Last week

Share prices fell last week, with the main index returning to the 6,300-point level, due to a huge selloff after major central banks in the world decided to raise their rates to combat rising inflation caused by supply issues.

The benchmark Philippine Stock Exchange index (PSEi) lost 198.48 point or 3 percent to close at 6,331.56 points.

The main index was down for most of the week, falling the most on Wednesday, regaining half of the losses the next day, but again giving up more points on Friday.

Most of the central banks are expected to raise their key rates after the United States Federal Reserve hiked its benchmark rates by 75 basis points, the biggest since 1994. The said move surprised the market since it was only expecting a 50 basis point increase.

Average daily value reached P6.68 billion, with Friday having the biggest value at P11.52 billion, compared with other days when it was only at around the P5 billion.

Foreign investors, which cornered 48 percent of the trade, were net sellers at P3.68 billion.

All other sub-indices ended in the red, led by the All Shares index that lost 116.88 points to close at 3,394.95 points, the Financials index was down 19.48 to 1,554.58, the Industrial index fell 292.75 to 8,795.17, the Holding Firms index retreated 239.92 to 5,788.01, the Property index declined 77.54 to 2,968.44, the Services index plunged 77.52 to 1,707.61 and the Mining and Oil index dropped 271.60 to 11,584.96.

For the week, losers edged gainers 183 to 46 and 19 shares were unchanged.

Top gainers were Filipino Fund Inc., Philweb Corp., Anchor Land Holdings Inc., Kepwealth Property Phils. Inc., Roxas Holdings Inc. and Double Dragon Corp.

Top losers were Macay Holdings Inc., Lorenzo Shipping Corp., MJC Investments Corp., ACE Enexor Inc., Megawide Construction Corp. and Altus Property Ventures Inc.

This week

Share prices may continue to fall this week as investors are expected go to safer havens as interest rates rise.

The market is bracing for the next move of the policy-making Monetary Board of the Bangko Sentral ng Pilipinas, which will meet this week.

“It will be interesting how the local central bank will communicate its future policy,” broker 2TradeAsia said.

The US Fed has committed to another interest rate hike of 50 to 75 basis points next month.

“Our view has always been to embrace rate adjustments in the context of the long-run, that is to strategize funds around changing risk premiums; the recessionary impact in the medium term is likely to be offset by a corrected inflation print anyway,” the broker said.

It said the PSEi’s price to earnings is under 14 times and some bargain hunting plays may occur this week until headwinds subside.

Immediate support for the main index is at 6,200 points and resistance at 6,500 points.

Stock picks

Broker Regina Capital Development Corp. advised to buy when its support price holds on the stock of JG Summit Holdings Inc. (JGS) after it was able to recover some footing following a massive sell-down on Wednesday.

“However, it concluded the recent session at P48.50 with a marginal gain of 0.83 percent but remained below its opening price of P49. This, coupled with the still increasing selling momentum, indicates that the bears are not willing to let go of JGS yet,” it said.

It gave a support price of between P47 to P48.10 for the stock.

JG Summit shares closed Friday at P48.25 apiece.

Meanwhile, it advised to buy on pullbacks on the stock of Aboitiz Equity Ventures Inc. (AEV) as its technical readings showed the bulls’ intention to bring AEV to higher price levels in the coming days.

“However, based on the indicators, it may still not be an easy task to do. The indicators are still filled with bearish sentiment. Simply put, the downward bias would likely limit AEV gains,” it said.

AEV shares closed last week at P48.65 apiece. VG Cabuag

www.businessmirror.com.ph

PSE STOCK QUOTATIONS

June 17, 2022

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

ASIA UNITED BDO UNIBANK BANK COMMERCE BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PB BANK PHIL NATL BANK PSBANK RCBC SECURITY BANK UNION BANK BRIGHT KINDLE COL FINANCIAL IREMIT MANULIFE PHIL STOCK EXCH

1,804,920 286,400,110 657,204 476,309,638.50 4,785,815 3,394,795 190,844,542.50 39,200 2,494,242 5,690 6,146,113 67,478,394.50 5,239,663.50 2,451,070 366,720 2,760 8,650 49,968

1,800,440 -76,097,088 -83,359 513,533 3,243,340 -1,140,001 -11,624,600.50 571,668.00 4,995,603 27,915,825.50 667,327.50 -

INDUSTRIAL AC ENERGY 7.3 7.35 7.35 7.45 7.25 7.3 18,347,800 134,112,329 ALSONS CONS 0.91 0.98 0.99 0.99 0.97 0.97 133,000 130,190 28.9 29 28.6 29.15 28.55 29 1,360,100 39,410,855 ABOITIZ POWER 1.61 1.62 1.74 1.74 1.62 1.62 11,039,000 18,302,670 RASLAG BASIC ENERGY 0.365 0.37 0.37 0.38 0.365 0.37 2,510,000 925,050 16.52 16.8 17 17 16.52 16.52 416,200 6,968,740 FIRST GEN 63 63.05 65 65 63 63 33,810 2,138,220 FIRST PHIL HLDG MERALCO 365 365.4 363.8 366.8 358 365 319,780 116,719,296 16.46 16.48 16.8 16.8 16.2 16.46 374,800 6,126,832 MANILA WATER 3.2 3.25 3.25 3.28 3.18 3.2 2,087,000 6,689,200 PETRON PETROENERGY 4.72 4.8 4.88 4.88 4.6 4.8 428,000 2,054,180 9.34 10 9.35 10 9.33 10 31,400 311,604 PHX PETROLEUM SYNERGY GRID 12.22 12.42 12 12.42 11.96 12.42 1,595,700 19,539,816 PILIPINAS SHELL 18.42 18.5 18.42 18.52 18.42 18.44 133,500 2,460,048 8.9 8.93 8.88 8.9 8.64 8.9 277,200 2,444,734 SPC POWER 1.55 1.56 1.55 1.56 1.52 1.56 41,641,000 64,153,820 SOLAR PH AGRINURTURE 4.52 4.6 4.57 4.64 4.53 4.6 650,000 2,988,170 2.22 2.3 2.3 2.3 2.3 2.3 50,000 115,000 AXELUM CENTURY FOOD 21.85 21.9 22 22 21.65 21.85 1,027,600 22,467,790 DEL MONTE 13.02 13.1 13.28 13.28 13.1 13.1 12,300 161,968 6.72 6.77 6.83 6.83 6.58 6.72 1,038,200 6,938,138 DNL INDUS 17.48 17.9 17.8 17.9 17.26 17.9 211,100 3,734,392 EMPERADOR SMC FOODANDBEV 49.2 53.05 56.15 56.15 49.2 49.2 765,270 38,634,530.50 FIGARO COFFEE 0.57 0.58 0.58 0.6 0.55 0.58 18,862,000 10,890,260 0.56 0.57 0.56 0.58 0.56 0.56 117,000 65,760 ALLIANCE SELECT FRUITAS HLDG 1.08 1.11 1.12 1.12 1.07 1.12 971,000 1,068,540 GINEBRA 101.2 101.3 104.7 104.7 101.2 101.3 44,910 4,593,198 192 195.7 198.2 198.2 192 192 852,320 165,511,519 JOLLIBEE KEEPERS HLDG 1.13 1.14 1.16 1.16 1.12 1.14 1,465,000 1,661,830 LIBERTY FLOUR 17.02 18.8 18.8 18.8 18.8 18.8 600 11,280 4.52 4.82 4.7 4.8 4.53 4.53 739,000 3,368,790 MAXS GROUP MG HLDG 0.116 0.117 0.117 0.117 0.117 0.117 280,000 32,760 MONDE NISSIN 13.32 13.36 13.7 13.8 13.36 13.36 10,722,800 143,785,622 7 7.04 6.9 7.05 6.9 7.04 83,900 587,409 SHAKEYS PIZZA ROXAS AND CO 0.52 0.54 0.53 0.56 0.53 0.55 1,082,000 588,750 RFM CORP 3.96 4 3.97 3.97 3.96 3.96 187,000 740,570 1.4 1.41 1.34 1.4 1.34 1.4 392,000 546,040 ROXAS HLDG SWIFT FOODS 0.095 0.099 0.099 0.099 0.095 0.095 70,000 6,730 UNIV ROBINA 96.9 97.6 96 97.6 93.25 97.6 2,905,920 277,915,554.50 0.61 0.62 0.6 0.63 0.6 0.62 198,000 123,340 VITARICH VICTORIAS 2.5 2.76 2.53 2.53 2.53 2.53 10,000 25,300 CEMEX HLDG 0.65 0.66 0.67 0.67 0.65 0.66 878,000 575,570 12.1 12.38 12.4 12.4 12.4 12.4 200 2,480 EAGLE CEMENT 3.21 3.25 3.3 3.3 3.21 3.25 222,000 724,860 EEI CORP HOLCIM 5.15 5.29 5.29 5.3 5.29 5.3 65,000 344,164 3.39 3.43 3.6 3.68 3.4 3.43 300,000 1,055,790 MEGAWIDE 19.12 19.68 19.74 19.74 19.74 19.74 200 3,948 PHINMA VULCAN INDL 0.8 0.81 0.8 0.81 0.79 0.8 925,000 737,490 1.74 1.79 1.75 1.75 1.75 1.75 255,000 446,250 CROWN ASIA 1 1.07 1 1.08 1 1 27,000 27,760 EUROMED MABUHAY VINYL 4.1 4.99 4.79 4.99 4.67 4.99 5,000 23,810 5.25 5.26 5.26 5.26 5.26 5.26 18,000 94,680 PRYCE CORP CONCEPCION 18.4 19.5 18.02 19.66 18.02 19.5 18,800 363,828 GREENERGY 1.67 1.68 1.66 1.71 1.65 1.68 9,671,000 16,343,130 6.25 6.3 6.4 6.46 6.3 6.3 42,400 268,168 INTEGRATED MICR 0.53 0.57 0.57 0.57 0.57 0.57 37,000 21,090 IONICS PANASONIC 5.72 6.02 6.02 6.02 6.02 6.02 100 602 0.96 1.02 0.99 1.04 0.93 1.02 274,000 267,920 SFA SEMICON CIRTEK HLDG 2.7 2.72 2.7 2.75 2.69 2.7 2,109,000 5,695,080

23,043,292 -10,744,850 -3,043,484 -1,996,999.50 -17,726,942 -89,870 1,405,240 8,884,458 -31,450 285,792 2,402,750 22,650 2,488,880 -4,233,744 578,206 -19,927,707 459,400 -13,200 -61,522,447 56,500.00 -3,266,020 -60,073,388 268,950 17,850 -71,280 -80,142,949 -162,800 2,480 -34,100 350,000 540 -7,577,460 -90,274 20,300

HOLDING & FRIMS

ABACORE CAPITAL AYALA CORP ABOITIZ EQUITY ALLIANCE GLOBAL ANSCOR ANGLO PHIL HLDG ATN HLDG A ATN HLDG B COSCO CAPITAL DMCI HLDG FILINVEST DEV GT CAPITAL JG SUMMIT LODESTAR LOPEZ HLDG LT GROUP METRO PAC INV PRIME MEDIA SOLID GROUP SM INVESTMENTS SAN MIGUEL CORP TOP FRONTIER WELLEX INDUS ZEUS HLDG

43.6 121 8.5 93.95 26.8 7.02 50.55 7 18.04 55.55 19.96 90.75 75 2.14 3.43 0.68 865 192.1

1.25 638.5 48.65 9.31 8.75 0.81 0.425 0.43 4.2 8.61 7.05 480 48.15 0.52 2.95 8.1 3.63 2.55 0.83 785 101.5 99.3 0.25 0.166

43.7 122 8.51 94.8 26.85 7.05 50.6 7.77 18.08 56.9 20.45 92.1 75.9 2.18 3.5 0.69 1,000 192.2

1.26 640 49.3 9.35 8.77 0.88 0.44 0.47 4.24 8.7 7.08 494 48.25 0.57 3.02 8.15 3.64 2.57 0.85 789.5 101.9 111 0.29 0.17

44.8 121.8 9 93.5 26.7 7.1 49.8 7 18.04 56.9 19.82 91.3 77 2.3 3.54 0.69 865 192.1

1.25 630 49 9.43 8.77 0.81 0.435 0.43 4.43 8.69 7.01 495 48.05 0.58 2.94 8.23 3.62 2.65 0.85 807.5 104.4 111 0.25 0.17

44.8 122.8 9 94.95 26.9 7.1 50.6 7 18.1 56.9 20.5 92.1 77 2.38 3.54 0.69 865 192.2

1.28 647.5 50.1 9.43 8.77 0.88 0.445 0.43 4.43 8.7 7.08 495.2 49.5 0.59 2.97 8.27 3.65 2.65 0.85 807.5 104.4 111 0.25 0.17

43.7 121 8.5 92 26.7 7 49.5 7 18.04 56.9 19.82 89.1 72.9 2.13 3.43 0.69 865 192.1

1.22 625 48.1 9.17 8.75 0.81 0.425 0.43 4.16 8.5 7.01 480 47.5 0.58 2.94 8.09 3.6 2.23 0.85 785 101.2 100 0.25 0.17

43.7 121 8.51 94.8 26.85 7.02 50.55 7 18.04 56.9 20.45 92.1 75.9 2.14 3.43 0.69 865 192.2

1.26 640 48.65 9.31 8.75 0.88 0.425 0.43 4.24 8.7 7.08 480 48.25 0.59 2.97 8.1 3.63 2.55 0.85 785 101.9 111 0.25 0.17

41,300 2,361,550 75,900 5,038,190 178,700 483,200 3,781,210 5,600 138,100 100 302,100 739,490 69,720 1,132,000 106,000 4,000 10 260

6,247,000 427,270 996,430 2,177,800 6,700 54,000 1,440,000 100,000 475,000 2,587,700 6,000 158,910 2,025,500 2,000 5,000 2,714,100 24,809,000 2,193,000 4,000 571,890 209,750 1,210 10,000 100,000

7,721,110 272,883,890 48,491,054.50 20,219,488 58,747 45,810 621,900 43,000 2,039,070 22,387,222 42,416 76,665,548 97,802,685 1,170 14,820 22,043,065 90,060,450 5,526,120 3,400 450,525,835 21,360,207 133,210 2,500 17,000

PROPERTY ARTHALAND CORP 0.52 0.56 0.53 0.53 0.52 0.52 16,000 8,440 ANCHOR LAND 5.61 7 8.98 8.98 6.69 7 5,100 38,269 27.8 28.05 28.1 28.25 27.8 27.8 10,137,100 282,565,990 AYALA LAND 3.32 3.36 3.5 3.5 3.28 3.35 2,121,000 7,067,470 AYALA LAND LOG ALTUS PROP 12.72 13.98 12.72 12.72 12.72 12.72 300 3,816 1.95 1.96 1.89 2 1.87 1.96 5,082,000 9,911,530 ARANETA PROP 36.15 36.2 37 37 36 36.15 640,600 23,221,905 AREIT RT A BROWN 0.75 0.79 0.75 0.75 0.75 0.75 5,000 3,750 0.69 0.7 0.69 0.69 0.69 0.69 28,000 19,320 CITYLAND DEVT CROWN EQUITIES 0.082 0.084 0.084 0.087 0.082 0.082 1,900,000 158,140 CEB LANDMASTERS 2.58 2.6 2.65 2.67 2.57 2.6 515,000 1,337,290 0.375 0.39 0.385 0.39 0.375 0.39 510,000 193,400 CENTURY PROP CITICORE RT 2.39 2.4 2.38 2.45 2.38 2.4 6,713,000 16,151,690 DOUBLEDRAGON 8.5 8.6 8.08 8.78 8 8.6 1,499,000 12,437,781 1.48 1.49 1.5 1.5 1.48 1.49 2,287,000 3,395,290 DDMP RT 6.76 6.78 6.78 6.78 6.73 6.78 32,000 216,800 DM WENCESLAO EMPIRE EAST 0.202 0.214 0.204 0.204 0.202 0.202 600,000 121,440 0.27 0.275 0.275 0.28 0.27 0.275 5,390,000 1,463,350 EVER GOTESCO FILINVEST RT 6.94 6.95 7.13 7.13 6.9 6.95 2,597,400 18,099,863 FILINVEST LAND 0.87 0.88 0.89 0.89 0.87 0.88 18,055,000 15,864,050 0.84 0.87 0.84 0.84 0.84 0.84 18,000 15,120 GLOBAL ESTATE 8990 HLDG 10.3 10.4 10.48 10.48 10.4 10.4 14,200 148,396 PHIL INFRADEV 1 1.03 1 1.02 0.99 1 465,000 470,740 CITY AND LAND 0.75 0.76 0.78 0.78 0.73 0.76 78,000 59,000 2.26 2.32 2.37 2.37 2.26 2.26 16,783,000 38,323,730 MEGAWORLD MRC ALLIED 0.2 0.201 0.206 0.208 0.201 0.201 1,870,000 377,520 MREIT RT 15.58 15.6 16.02 16.02 15.5 15.6 3,967,500 62,142,662 0.38 0.39 0.38 0.38 0.38 0.38 380,000 144,400 PHIL ESTATES PRIMEX CORP 1.95 1.96 1.97 1.97 1.95 1.96 364,000 714,390 RL COMM RT 6.5 6.52 6.58 6.58 6.4 6.52 6,889,500 44,914,370 17.1 17.38 17.5 17.5 17.1 17.1 885,300 15,149,460 ROBINSONS LAND PHIL REALTY 0.201 0.241 0.211 0.211 0.2 0.2 400,000 81,890 ROCKWELL 1.2 1.21 1.22 1.22 1.2 1.21 18,000 21,870 2.47 2.56 2.49 2.57 2.49 2.49 51,000 127,070 SHANG PROP STA LUCIA LAND 2.9 2.95 3.05 3.05 3.05 3.05 5,000 15,250 SM PRIME HLDG 37 37.75 36.9 37.75 36.7 37.75 150,875,400 5,689,299,910 3.36 3.54 3.59 3.59 3.59 3.59 1,000 3,590 VISTAMALLS SUNTRUST HOME 1.01 1.03 1.01 1.05 1.01 1.03 337,000 345,800 VISTA LAND 1.92 1.99 2.04 2.09 1.91 1.92 3,630,000 7,236,290 1.7 1.71 1.72 1.72 1.67 1.71 10,013,000 17,009,490 VISTAREIT RT

SERVICES ABS CBN 8.65 8.85 8.9 8.9 8.7 8.85 75,600 662,050 GMA NETWORK 11.88 11.9 11.8 12.1 11.78 11.9 519,700 6,189,702 0.34 0.36 0.345 0.345 0.345 0.345 20,000 6,900 MANILA BULLETIN GLOBE TELECOM 2,220 2,256 2,222 2,280 2,188 2,220 71,535 158,975,290 PLDT 1,838 1,864 1,756 1,864 1,740 1,864 178,475 326,502,165 0.041 0.042 0.041 0.042 0.041 0.041 97,100,000 3,985,900 APOLLO GLOBAL 20.15 20.2 20.4 20.85 20.05 20.15 11,976,400 242,723,485 CONVERGE DFNN INC 3.2 3.24 3.15 3.29 3.1 3.2 239,000 762,560 3.66 3.68 3.7 3.74 3.62 3.68 2,681,000 9,853,220 DITO CME HLDG 1.18 1.2 1.26 1.26 1.16 1.2 3,405,000 4,093,500 NOW CORP TRANSPACIFIC BR 0.29 0.3 0.28 0.3 0.28 0.3 4,630,000 1,352,500 6.81 7 6.81 6.81 6.81 6.81 100 681 2GO GROUP ASIAN TERMINALS 13.32 13.58 13.5 13.5 13.5 13.5 4,000 54,000 CHELSEA 1.34 1.38 1.35 1.39 1.34 1.39 106,000 144,800 42.5 42.55 41.95 42.55 41.1 42.5 106,900 4,496,950 CEBU AIR 193.4 194.9 181.3 194.9 180.1 194.9 2,935,060 561,890,244 INTL CONTAINER LBC EXPRESS 21.05 22.2 22.1 22.1 22.1 22.1 4,900 108,290 4.19 4.2 4.22 4.22 4.1 4.2 284,000 1,183,770 MACROASIA 5.6 5.69 5.88 5.88 5.6 5.6 11,200 63,465 PAL HLDG HARBOR STAR 0.87 0.89 0.96 0.96 0.87 0.87 408,000 359,080 BOULEVARD HLDG 0.084 0.085 0.089 0.089 0.084 0.084 140,370,000 12,106,190 6.54 6.79 6.82 6.82 6.79 6.79 200 1,361 CENTRO ESCOLAR FAR EASTERN U 530 540 530 530 530 530 300 159,000 BELLE CORP 1.21 1.24 1.22 1.24 1.2 1.24 526,000 636,130 5.9 5.94 5.9 5.95 5.8 5.94 4,137,100 24,414,485 BLOOMBERRY PACIFIC ONLINE 1.34 1.39 1.39 1.39 1.39 1.39 2,000 2,780 LEISURE AND RES 1.37 1.39 1.39 1.4 1.35 1.39 6,755,000 9,236,580 1.42 1.5 1.42 1.42 1.42 1.42 9,000 12,780 MANILA JOCKEY PH RESORTS GRP 0.89 0.9 0.92 0.92 0.88 0.9 3,134,000 2,795,930 PREMIUM LEISURE 0.395 0.4 0.4 0.4 0.395 0.4 1,870,000 743,600 4.7 4.72 4.79 5.01 4.56 4.7 20,640,000 100,557,890 PHILWEB ALLDAY 0.31 0.315 0.325 0.33 0.305 0.315 16,290,000 5,121,800 ALLHOME 4.47 4.5 4.6 4.6 4.37 4.47 1,173,000 5,245,870 1.38 1.44 1.44 1.44 1.44 1.44 1,013,000 1,458,720 METRO RETAIL PUREGOLD 30.95 31 32 32 30.95 31 537,000 16,691,270 ROBINSONS RTL 46.35 48 49.65 49.95 46.35 46.35 1,325,800 62,240,860 50 51 51 51 50 50 154,070 7,825,211 PHIL SEVEN CORP SSI GROUP 1.17 1.18 1.18 1.19 1.15 1.18 3,999,000 4,676,360 WILCON DEPOT 23.3 23.35 24 24 22.6 23.3 6,180,500 144,593,875 0.195 0.21 0.2 0.213 0.195 0.21 640,000 126,810 APC GROUP EASYCALL 3.88 4.69 3.88 3.88 3.88 3.88 1,000 3,880 IPM HLDG 6.7 7 7 7 7 7 1,300 9,100 0.58 0.6 0.68 0.68 0.56 0.58 4,146,000 2,501,410 MEDILINES PRMIERE HORIZON 0.425 0.43 0.46 0.46 0.42 0.43 5,260,000 2,270,050

MINING & OIL ATOK 6.9 6.99 6.6 7 6.09 6.9 317,900 2,010,700 1.48 1.49 1.55 1.55 1.47 1.49 4,120,000 6,128,670 APEX MINING 5.65 5.7 5.75 5.75 5.62 5.63 354,300 2,005,385 ATLAS MINING BENGUET A 6.45 6.5 6.7 6.7 6.5 6.5 290,700 1,917,197 6.66 6.67 6.7 6.7 6.66 6.67 34,300 229,260 BENGUET B 0.215 0.234 0.216 0.216 0.213 0.213 250,000 53,750 COAL ASIA HLDG CENTURY PEAK 2.65 2.75 2.74 2.75 2.74 2.75 25,000 68,550 2.3 2.31 2.38 2.38 2.3 2.31 3,088,000 7,151,060 FERRONICKEL 0.17 0.189 0.175 0.187 0.17 0.17 740,000 129,340 GEOGRACE LEPANTO A 0.134 0.136 0.14 0.14 0.134 0.136 7,150,000 966,220 0.0094 0.0097 0.0094 0.0097 0.0094 0.0097 11,000,000 103,700 MANILA MINING A MANILA MINING B 0.0092 0.011 0.0092 0.0092 0.0092 0.0092 5,000,000 46,000 MARCVENTURES 1.57 1.59 1.67 1.67 1.55 1.59 1,917,000 3,045,440 0.94 0.99 0.94 0.99 0.94 0.99 15,000 14,150 NIHAO NICKEL ASIA 6.55 6.56 6.84 6.84 6.53 6.56 4,864,600 32,002,713 ORNTL PENINSULA 0.69 0.7 0.71 0.71 0.68 0.7 790,000 544,250 4.18 4.19 4.33 4.33 4.19 4.19 815,000 3,435,690 PX MINING 35.55 35.7 34.5 35.7 34 35.7 2,253,700 79,103,515 SEMIRARA MINING UNITED PARAGON 0.0058 0.0062 0.006 0.0062 0.0058 0.0058 25,000,000 147,700 7.85 8 8.3 8.3 7.7 8 335,500 2,635,513 ACE ENEXOR 0.01 0.011 0.011 0.011 0.01 0.011 28,000,000 305,900 ORNTL PETROL A ORNTL PETROL B 0.011 0.012 0.011 0.011 0.011 0.011 2,700,000 29,700 PHILODRILL 0.0089 0.0091 0.0088 0.009 0.0088 0.009 3,000,000 26,800 4.45 4.72 4.5 4.5 4.45 4.45 34,000 152,150 PXP ENERGY

PREFFERED AC PREF B1 500 501 500.5 500.5 500.5 500.5 10,650 5,330,325 ALCO PREF D 502 505 505 505 505 505 350 176,750 104 104.5 104.5 104.5 104.5 104.5 4,890 511,005 BRN PREF A 41.6 42.95 42 42 42 42 4,900 205,800 CEB PREF DD PREF 97.95 99.5 97.7 99.5 97.7 99.5 3,310 324,000 103.9 104 105.8 105.8 103.9 103.9 83,960 8,738,142 EEI PREF B 100.3 105.1 100.1 105.9 100.1 105.2 15,240 1,528,293 FGEN PREF G PNX PREF 3B 99.5 100.5 98 100.5 98 100.5 4,180 414,500 975 980 978 980 975 980 20,930 20,407,360 PNX PREF 4 PCOR PREF 3A 1,048 1,050 1,050 1,051 1,050 1,051 9,485 9,968,335 PCOR PREF 3B 1,070 1,085 1,070 1,085 1,070 1,085 110 117,850 76.4 77 76.5 76.6 76.4 76.5 33,010 2,525,635 SMC PREF 2F SMC PREF 2H 75.1 76.15 76.2 76.3 75 75 24,000 1,807,600 SMC PREF 2I 76.05 78.45 78.45 78.45 77.95 77.95 5,010 393,029.50 72.2 74 74 74 72.15 72.2 14,150 1,025,471 SMC PREF 2K 54.1 54.5 54.5 54.5 54.5 54.5 11,710 638,195 TECH PREF B2D

PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 8.23 9 9 9 9 9 6,000 54,000 GMA HLDG PDR 11.48 11.7 11.7 11.7 11.5 11.5 10,000 115,040

WARRANTS TECH WARRANT 0.5 0.51 0.51 0.53 0.47 0.51 855,000 433,220

983,190 -49,235,995 -7,347,339 -393,449 5,250 -971,470 6,294,987 33,956 -40,229,556 -18,582,625 -8,940 -8,532,661 -44,834,410 -68,318,695 -9,237,223 -98,318,295 605,880 -3,840 -896,955 -5,300 -195,860 197,062.00 422,670 892,369 -2,867,310 117,002 -12,774,730 3,249,732 26,273,684 -451,976 1,200 517,300,355 -3,590 -4,200 -5,362,940.00 1,620,940 -45,627,470 1,182,500 520,700 -53,229,910 6,250 -218,580 208,850 -39,200 2,027,990 32,569,700 107,500 -13,690 19,490 5,270,215 -754,970 3,950 1,398,710 25,050 -163,130 -2,918,065 -40,236,765 407,595 2,699,860 -46,682,115 61,600 930 -57,076 67,000 68,550 -366,780 1,990 1,228,473 -159,210 25,645,545 18,000 61,000 -197,505 52,000 39,875 -638,195

SMALL & MEDIUM ENTERPRISES CTS GLOBAL HAUS TALK ITALPINAS KEPWEALTH MERRYMART XURPAS

0.88 0.96 0.75 2.25 1.24 0.31

0.9 0.97 0.76 2.99 1.26 0.325

EXHANGE TRADE FUNDS FIRST METRO ETF

97.4

97.55

0.9 1 0.77 3.1 1.28 0.325

0.92 1 0.77 3.1 1.28 0.325

0.88 0.95 0.75 3.1 1.2 0.3

0.88 0.99 0.76 3.1 1.26 0.325

5,229,000 145,000 315,000 1,000 3,330,000 660,000

4,727,310 140,000 236,930 3,100 4,145,250 210,200

54,000 8,090 286,250 -55,990 -29,600 -

98.4 98.4 97.25 97.55 24,580 2,405,939.50 440,572.50

www.businessmirror.com.ph

BusinessMirror

Monday, June 20, 2022

B3

B4

Banking&Finance BusinessMirror

Monday, June 20, 2022 • Editor: Dennis D. Estopace

www.businessmirror.com.ph

‘Sale of Naia bonds may fill ₧1-T financing gap’

I

By Cai U. Ordinario

@caiordinario

F the incoming administration is to survive the crisis that is to come, it should spend P1 trillion to address gaps in education, agriculture and the environment, according to former Socioeconomic Planning Secretary Romulo L. Neri.

Neri, former Director General of the National Economic and Development Authority (Neda), gave a list of recommendations to “address urgent and potentially disastrous issues.”

Neri said this amount can be financed through the sale of Ninoy Aquino International Airport (NAIA) bonds as well as other big- ticket projects such as those found in Clark as well as various reclamation projects.

“The P1-trillion NAIA bond may take time given the magnitude and complexity of the deal, but it could be initiated within the first 100 days,”

Neri told BusinessMirror in an email over the weekend.

“The alternative given the high rate of interest is to treat it as an advanced sale of property with the option for the government to buy back after 10 years with a floating rate structure embedded into the buyback price so as not to get stuck with a high interest rate over the long time period,” he explained.

Neri said the government needs to do an inventory of government properties for possible disposal.

This includes NAIA land, reclama-

tion projects, Clark/Subic, Military lands, upland development areas, Muntinlupa, and others.

Create values

THERE also needs to be upland area development, which could be considered new public assets for additional tax base.

“This development spending will stimulate economic growth particularly in rural areas and help in fiscal consolidation and the management of public debt as economic growth outstrips growth in debt stock,” Neri said.

Neri said the bulk of the funds or P450 billion should be allocated for school feeding programs needed for three years; farm-to-market roads worth P140 billion; and P100 billion to procure tablets for school children.

For the tablets, Neri said, these take into account 25 million public school students to be given tablets worth P4,000 each. These tablets should be more of a basic model in order for them to upload lessons.

The former Neda DG said P100 billion should be allocated to under-

take upland development. This takes into consideration a million hectares at P100,000 per hectare which will create property values and increase the tax base in these locales. “[This is a] possible PPP [Public Private Partnership] to supplement the government. Use of the AFP [Armed Forces of the Philippines] engineering brigade supported by heavy equipment financed by Jica [Japan International Cooperation Agency] and the US Eximbank,” Neri explained.

Allocation for education

ANOTHER P50 billion each should be spent for mangrove replanting; create a farmers’ loan guarantee fund; and another guarantee fund for micro, small and medium enterprises (MSMEs).

He said the mangrove replanting allocation will be paid partly in kind to avoid inflation in food prices in coastal areas. This targets the replanting of 200,000 hectares which can be financed by P250,000 per hectare and will create “possible carbon credit revenues.”

Neri also proposes that P35 billion

be allocated to purchase projectors for classrooms and P25 billion for laptops for school teachers to address education gaps.

This took into consideration 707,600 classrooms which would usually cost P50,000 each.

Laptops for public school teachers took into consideration 800,000 schoolteachers to be given laptops worth P30,000 each.

Neri said one option in financing is to offer this to a teacher as a loan relief if the teacher already owns a laptop, as well as funding support from financially capable local government units (LGUs).

“Timing wise, now is a good time to plan the deal. We can implement it when interest rates normalize.

Property prices tend to go up with inflation so no problem in waiting a bit until the proper time,” Neri said.

Improve productivity

HOWEVER, among these recommendations, Neri said the most urgent are those that address a potential food shortage.

This shortage, Neri said, could be due to scarcity and higher costs of

fertilizers like urea and potash due to the Ukraine war and Vietnam’s potential rice supply shortages due to drought.

“For agriculture, focus on expansion of irrigation areas [as oon as possible] and farm-to-market roads to improve food supply logistics and minimize food transport losses,” Neri said.

“Also, replanting mangroves to improve marine productivity and hillside terracing and gabion dams and water catchments to improve upland productivity,” he added.

Recently, the World Bank projected the Philippine economy to post slower growth in 2022 and in the next two years.

In its Global Economic Prospects (GEP) report, the Washington-based lender said the Philippines is expected to post a growth of 5.7 percent in 2022 and 5.6 percent in the next two years.

The GDP forecast this year is 0.2 percentage points lower than its forecast in January and the forecast for 2023 is lower by 0.1 percentage points. The growth estimate for 2024 is new.

Stopping fuel tax collection Okada Manila’s bank accounts frozen–TRLEI lawyer to cut govt revenues–DTI

O

UTGOING Trade Secretary Ramon M. Lopez said the suspension of excise tax on oil will reduce government revenues.

Lopez believes it’s better to retain the excise tax on oil even amid the oil price hikes. He added that the government should come up with alternative actions such as targeted subsidies for the vulnerable sectors.

“Ang aming posisyon po ay i-keep lang din po ‘yan at humanap ng iba pang paraan. In fact, ang ginagawa natin ngayon ay targeted subsidies sa mga tinatamaan, ‘yun ho ang mas kontrolado, mas specific ‘yung ginagawang expenditure program para doon sa suporta sa mga tinatamaan, naapektuhan ng oil prices,” Lopez added.

[Our position is to just keep that [excide tax on fuel products] and find another way. In fact, what we are doing now is targeted subsidies to those affected. This move is more controlled, more specific expenditure program to support those who are affected by oil prices.]

He further said that government should “adhere to long-term stability.”

Lopez added that the elimination of excise tax could look good now but the lack thereof could lead to even bigger problems, as more sectors will be affected.

He added that the suspension of excise taxes on oil could also result in a fiscal deficit.

“Ang posisyon din namin diyan, we adhere to long-term stability, maaaring maganda tignan na tanggaling ang excise tax sa ngayon pero mas malaki ang tama sa atin pag tinanggal ’yan at nabawasan ang revenue na kinikita diyan pang sweldo sa mga teachers, sa mga military, pulis, mga government

projects,” he said during a televised interview last Saturday.

Doubling subsidies

LOPEZ and other government officials have said that suspending excise taxes and the value-added tax on petroleum products would result to foregone revenues of P106 billion, or roughly 0.5 percent of the country’s gross domestic product this year.

Lopez’s proposal on subsidies is similar to that of Senate Energy Committee Chairman Sherwin T. Gatchalian’s recommendation. However, Gatchalian said the amount of subsidies given to the most affected sector are doubled and distributed as soon as possible.

Gatchalian said he is “in favor of increasing the subsidies, maybe 50 percent more to about 100 percent more, so that we will cover the increase in fuel prices in the last few days.”

Based on industry figures, pump prices in the National Capital Region are nearing the P90-per-liter level and are already at the P100-per-liter level in some provinces.

“We have to make sure that it is dispensed, given in a timely manner and use technology such as e-Wallets to give it to them,” Gatchalian said.

Finance Secretary Carlos G. Dominguez III also proposed that vulnerable sectors continue to be provided targeted relief—this would include extending a total of P33 billion in unconditional cash transfers—to the bottom 50 percent of all households, or about 74.7 million Filipinos.

While Dominguez noted that the amount isn’t enough, this is what government can afford as of this time “and to make sure that our finances going forward and, especially for the next administration, are still going to be healthy.”

O

KADA Manila’s bank accounts have been frozen, casting doubt on its operational stability after its cage money runs dry, a lawyer for Tiger Resort Leisure and Entertainment Inc. (TRLEI), which has opposed the “invalidly constituted board of Kazuo Okada,” disclosed at the weekend.

According to Atty. Estrella Elamparo, BDO Unibank, Asia United Bank (AUB) and Union Bank of the Philippines decided to freeze the accounts of Okada Manila due to the ongoing intra-corporate dispute in the operator of Okada Manila. With the status quo ante order (SQAO), banks have become more prudent and cautious in dealing with the financial requirements of Okada Manila, she explained.

Informed of the SQAO, BDO required the TRLEI board led by Hajime Tokuda and Byron Yip, and the board of Kazuo Okada led by Antonio “Tonyboy” Cojuangco and Dindo Espeleta to sign an agreement to dis-

burse the salaries of the employees of Okada Manila.

“Despite being on the right side of the law, the legitimate board of TRLEI decided to draft and sign the agreement, understanding that the welfare of the employees is at stake. However, the camp of Kazuo Okada was not keen on signing the agreement, imposing unreasonable conditions,” said Elamparo, a senior partner at TRLEI’s legal counsel Divina Law. The Kazuo Group insisted that they will never sign any agreement which bears the signature of Tokuda, according to a statement from TRLEI. The Kazuo Group’s stance against signing the agreement forced the banks to file interpleader cases, asking the court to require both parties to interplead between themselves, it added.

Elamparo said Okada Manila may choose to use the “cage money” or the revenues generated from the operations of the casino and hotel to

fund the operations and the salaries of Okada Manila’s employees. However, those funds can only go so far and are expected to run dry soon.

“The winds of change that will blow at Okada Manila reeks of disaster and misfortune. After their violent and illegal takeover, Okada Manila has no access to its bank accounts. We expect Okada Manila’s funds to dwindle in the coming weeks, putting not only guests at the losing end, but at the same time putting at risk its over 5,000 employees, many of whom rely on their salaries to meet their daily needs,” Elamparo said.

Elamparo added that Kazuo and his group should be transparent to the establishment’s employees, as no bank or any financial facility will deal with Okada Manila until the legal cases have been resolved by the courts.

Tiger Resort Asia Ltd. (TRAL) has forwarded to relevant agencies and partners a certification that puts

on record that it does not recognize Kazuo Okada or any of his appointed board members as new management.

With this, TRAL will not be in a position to infuse new capital to fund the daily operations and salaries of workers while legal proceedings are ongoing.

“No bank will engage with an entity under an ownership dispute,” Elamparo said. “Once Okada Manila’s funds start to run dry, they will have problems dealing with the operations of the integrated casino resort.” Without capital to fund its daily operations, there is no clarity on how Okada Manila will continue to operate, much more implement Kazuo Okada’s recent pronouncements of growth and sustainability.

“The legitimate board of TRLEI hopes that these issues will be resolved soon as they plan to move forward with its listing in Nasdaq through the merger with 26 Capital,” Elamparo said.

LandBank opens new Laguna corporate hub

S

ANTA CRUZ, Laguna—In line with its commitment to provide convenient and accessible services, the Land Bank of the Philippines Inc. (LandBank) officially inaugurated a three-story corporate center in the Province of Laguna to serve as a one-stop shop for the banking and financing needs of local stakeholders and customers.

Located in Barangay Bubukal in Santa Cruz, the LandBank Laguna Corporate Center houses the state lender’s major touchpoints and local offices to provide convenient access to a wide array of services.

“With the LandBank Laguna

Corporate Center, we are looking forward to stepping up our support to the whole Province of Laguna. We hope that this will serve as a landmark for various economic activities and a catalyst to expand areas for collaboration in support of the Province’s key sectors,” President and CEO Cecilia C. Borromeo said.

The LandBank Santa Cruz Branch on the ground floor of the building will service customers from the 26 barangays of Santa Cruz, as well as the 176 combined barangays of the nearby municipalities of Cavinti, Kalayaan, Luisiana, Lumban, Magdalena, Majayjay, Pagsanjan, Paete, Pila and Victoria.

The second floor houses the Landbank Laguna Lending Center to cater to the financing requirements of local farmers and fishers, micro, small and medium enterprises, cooperatives and local government units, among others.

Other LandBank field offices stationed in the building include the Property Valuation and Credit Information Department–Laguna, Laguna Accounting Center I and the Field Legal Services of Laguna.

The LandBank Laguna Corporate Center is situated in a less congested portion of the Santa Cruz National Highway and features a roomy inte-

rior and ample parking space to ensure a comfortable banking experience for customers.

LandBank currently operates a total of 19 branches and one lending center in Laguna, complemented by 86 automated teller machines (ATMs), and 17 agent banking partners that provide basic banking services on behalf of LandBank in the unbanked and underserved areas of the Province.

LandBank is the only bank present in all 81 provinces in the Philippines, with plans for continued expansion focusing on servicing the requirements of its diverse customer base nationwide.

Pagcor inaugurates 2-storey evacuation facilities in Aurora, Quezon provinces

R

ESIDENTS of Dingalan, Aurora now have a typhoon-resilient evacuation facility to turn to in times of calamities, following the inauguration of the municipality’s P50 million worth Multi-Purpose Evacuation Center (MPEC) last June 16. The two-storey structure was funded by the Pagcor.

Since its launch in 2020, Pagcor has allotted P3.5 billion for the project. Of this amount, P2.024 billion has been released for 73 sites. A total of ten MPECs in Aurora, Quezon Province, Tarlac, Albay, Capiz and the towns of Sagñay, San Jose, Tigaon and Ocampo in Camarines Sur were completed.

The rainy season poses a great threat to the municipality of Dingalan, which is often battered by destructive typhoons.

Locals, especially those from the

coastal communities of Barangay Matawe, Barangay Ibona and Barangay Umiray, often scurry to evacuate to nearby schools, which serve as temporary evacuation centers.

Ibona’s Barangay Captain Ricardo B. Balala Jr. said their situation is far from ideal because the classrooms, which they use as evacuation facilities during calamities, are not designed for such purpose.

When disasters such as hurricanes occur, we borrow Ibona Elementary School and Ibona National High School as evacuation centers for our residents in the risk area, Balala said in Tagalog.

According to Dingalan Mayor Shierwin H. Taay, the MPEC in their area is a realization of a long-time dream.

Apart from the inauguration of the MPEC in Dingalan, two newly-construct-

ed Pagcor-funded MPECs in San Andres, Quezon are now ready to provide safe shelter to locals who are often displaced by natural calamities after the inauguration of said evacuation facilities on June 11, 2022.

With a total of P77.90 million funding from Pagcor, the local government of San Andres was able to hasten the construction of a two-storey MPEC in Barangay Mangero and a covered court type evacuation center in Barangay Poblacion.

During the inauguration ceremony, Pagcor President and COO Alfredo C. Lim underscored the agency’s commitment to nation-building through its various corporate social responsibility programs.

“Being our flagship program, the MPEC project has been designed to help safeguard the lives and protect the

welfare of our less privileged [compatriots] who have no safe place to go during extreme weather conditions,” Lim said.

“This project has been made possible because of the dedication and commitment of our employees, who made Pagcor’s revenue generation efforts possible, even amidst the pandemic.”

Also, Pagcor Chairman and CEO Andrea D. Domingo expressed optimism that more MPECs will be completed in the coming weeks.

“I am confident that our partner LGUs will continue to fast-track the construction of these evacuation facilities before the typhoon season,” Domingo said. “We all know how vulnerable our country is to climate change and these evacuation facilities will serve as their safe havens.”

This June 11, 2022, photo courtesy of the Philippine Amusement and Gaming Corp. shows Pagcor President and COO Alfredo C. Lim (fifth from left), San Andres, Quezon Mayor-elect Ralph Lim (fourth from left) and other officials during the inauguration of the two-storey Pagcor-funded MPEC in the town’s Barangay Mangero. CREDIT: Pagcor

www.businessmirror.com.ph

Style

BusinessMirror

Editor: Gerard S. Ramos

• Monday, June 20, 2022

B5

The year of gender-fluid fashion FOREVER SUMMER

AFTER two years of staying in, it seems summer actually never left us. And it’s time to say hello to the warm weather, enjoy fun in the sun, and update your wardrobe with Forever 21’s new collection.

Women will love dresses in new patterns, fresh shades and lightweight fabrics in midi cami, short puff-sleeved and knit styles. Linen tops in floral prints and pastel colors make statements in high-rise mom shorts Guys can go casual and yet still look trendy in button-down shirts and draw string shorts in neutral shades and different patterns.

These and many more summer sensations can be found in Forever 21’s latest collection in Forever 21 stores located in SM City North Edsa, SM Megamall, SM Makati, SM Mall of Asia, SM Lanang Premier, SM City Clark and SM City Cebu.

The brand is also available via Lazada, Shopee and ShopSM.

T

HERE are monumentally stupid politicians in the US who are introducing legislation to make it illegal for children to be exposed to drag queens, falsely claiming that people who wear wigs, heels and makeup pose a danger to impressionable minds. Clearly, these idiots forgot how their Founding Fathers appeared when performing their civic duties.

I hope their small brains become deep-fried every time they see people of all classes defy gender norms when it comes to dressing, as it has been deemed that 2022 is “the year of gender-fluid fashion.” At the New York Spring/Summer 2022 presentations, the dominant theme was genderless design codes, with Helmut Lang showcasing a singular, unisex Spring 2022 collection.

In recent seasons, fashion is pushing—or reinforcing—gender neutrality forward, with genderless capsule collections that encourage genderfluid dressing in one’s daily life, and not just for fantastical red-carpet appearances. Needless to say, we love Billy Porter and Lil Nas X when they flaunt their flamboyance this way.

Hereabouts, it’s screen superstar Vice Ganda who exemplifies this nonbinary, gender-nonconforming boldness in extravagant dressing, usually in hautecouture creations by the boundary-pushing and gender-defying designer Jaggy Glarino.

Gender fluidity is not just Vice Ganda in a voluminous ballgown. It can also be Beatrice Luigi Gomez in an androgynous Francis Libiran Bespoke suit in wool brocade. The Miss Universe 2021 Top Five finalist wore this stunning ensemble as her first stepdown outfit as she was about to crown the next Miss Universe Philippines, a look reminiscent of the iconic tuxedo worn by Miss Universe 2007 Riyo Mori during her final walk.

Symone, winner of RuPaul’s Drag Race Season 13, didn’t wear an elaborate dress when she relinquished her crown to Willow Pill. The Ebony Enchantress wore a custom Swarovski crystal-encrusted deconstructed denim jeans, Louboutins and resinsaturated wet look T-shirt by Michael Schmidt Studios in collaboration with Marko Monroe and The House of Avalon.

That unexpected fashion statement reminded me of when Emma Stone, a year after she won her Oscar for La La Land, wore a pantsuit to present at the 2018 Oscars. She wore atypical Louis Vuitton satin coordinates.

Meanwhile, menswear is also blurring—or demolishing—the gender lines. The Thom Browne Swim 2022 is entirely unisex and can be mixed and matched. The designer explains his collection via a poem: “genesis...the creation of thom...hers is his...his is hers...for a dip...a stroke...a dive...half and half...for any and all...to swim... or not to swim...”

Raf Simons, the Belgian designer who is a staunch proponent of genderless design, reimagines the

CUT-OUTS are cool in this one-shoulder midi dress.

CUBAN collar buttonfront shirt and cargo drawstring joggers for a more relaxed summer.

EMMA STONE in Louis Vuitton (CELEBMAFIA), Beatrice Luigi Gomez in Francis Libiran (@FRANCISLIBIRAN8), Riyo Mori (@RIYOMORI_), Symone in Michael Schmidt Studios (@SANCHEZZALBA)

classic business uniform for the Spring/Summer 2022 season.

The Zurich-based VTMNTS, born under Vetements under the sole creative lead Guram Gvasalia, presented stomach-baring, cropped jacket ensembles, loose double-layer trousers, hot pants and thigh-high boots. “This collection is about gender equality. It’s about knowing who you are, and standing for your beliefs,” explains Guram Gvasalia. “It’s time for the minority to get the voice and become the majority.

Humanity is not mass production, each life counts, each human being counts. The world is changing, and so should fashion!”

For now, the beautiful embodiment and fiercest champion of gender fluidity in fashion is EnglishAmerican designer Harris Reed, who can be 6 feet 9 in 5-inch platform boots. Fresh from his graduation from Central Saint Martins, Anna Wintour asked him

to design a ball gown for Harry Styles for his Vogue December 2020 cover story.

“I’d like to eradicate the categories of menswear and womenswear,” Reed told Harper’s Bazaar in November 2020. “Fluidity offers an alternate way of being, crossing and merging masculine and feminine.”

For its April 2022 issue, Harper’s Bazaar UK features Reed wearing his creation in a special cover marking the Victoria & Albert Museum’s new exhibition, “Fashioning Masculinities: The Art of Menswear.”

In the cover feature, Reed writes: “Every single day is a fight when you’re the outlier. But it’s worth the fight. It’s hard to hear things like ‘Ew, that’s gross, why is there a man in a dress?’, or to make some people realise that wearing a blouse doesn’t mean that you’re anything more than someone who just wants to have fun with fashion.” n

Banish dry skin woes with lotions that work to address itching, tightness and flakiness FOR others it may be strange but every room in our house, including the dining and living areas, has a bottle or two of body lotion. All of us in the family, including our helper, has some form of skin problem ranging from skin asthma to atopic dermatitis. So lotion is really important to us.

We also don’t use regular drugstore or even highend lotions because those don’t serve the purpose or moisturizing our skin so it won’t itch or flake.

Whatever we end up using has to be something that will work for our our skin conditions.

So here are some of my favorite lotions: n HUMAN NATURE NATURAL COOLING LOTION: This is probably the only locally-made lotion we use. I know that there’s a lot of controversy about clean beauty brands because of the way they demonize certain skin-care ingredients, but Human Nature is one of the few such brands not to slap hefty price tags on its products. Anyway, this cooling lotion has menthol, sunflower oil, glycerin and cocoa butter to keep your skin hydrated. I love that the lotion doesn’t just sit on your skin for minutes while you desperately try to make it sink in. The skin easily absorbs this. I have not felt the cooling sensation promised yet but for days that my skin is normal and not acting up, I love this. n CUREL HYDRATHERAPY WET SKIN MOISTURIZER (ITCH DEFENSE): From October to January, when my skin (and those of people with many allergies) is at its most sensitive, I can only use this lotion. You’re supposed to apply this after you’ve showered while your skin is still wet and then you towel it off. This lotion has

ceramides so it’s perfect for dry skin. I dare say this is the best lotion in the world. It’s expensive but worth every cent. People like me who wake up at night to scratch their dry skin will know I am telling the truth about Curel Hydratherapy Wet Skin Moisturizer (Itch Defense). This lotion moisturizes your skin without making if t greasy and/or slippery. n LUSH DREAM CREAM: This lotion is a light emulsion that hydrates skin without leaving a sticky residue. I know so many people with skin problems who love this. Dream Cream, which comes in a pot, has Fair Trade and organic cocoa butter from the Dominican Republic, Peru and Sierra Leone; and rose absolute and rose water made from damask roses grown in Senir, Turkey. Curiously though, it smells like wet soil. I’m not saying the smell is a bad thing. I expected the scent to be overpowering based on the ingredients list, so the wet soil smell is a pleasant surprise.

n NIVEA DERMA REPAIR & CARE BODY LOTION: I have always loved the Nivea blue lotion, which is another staple in our house. Nivea Derma Repair & Care Body Lotion contains Dexpanthenol, which helps strengthen the skin barrier to prevent moisture loss as well as help in soothing rough and irritated areas.

One application is all you need to instantly calm irritated areas of the skin and provide 72-hour relief from very dry and tight skin. Dexpanthenol, by the way, is a skin medication used to prevent rough, itchy, scaly, and irritated skin. This lotion is more healing than moisturizing so if your problem is itching and flaking, then you should try this. This lotion is also dermatologically approved, with its ingredients carefully selected according to the strictest quality standards. It has a mild fragrance but it wasn’t bothersome at all. n SEBA MED UREA BODY LOTION: In 2020, I had a bad case of dermatitis on my hands because of frequent hand-washing and alcohol-rubbing. The dermatologist I consulted with online told me to use this. Unfortunately, this specific Seba Med lotion isn’t available in our drugstores so I got it on Amazon and it did help a lot with my hands. You just need to use it consistently for it to work. nnn LEVI Strauss Philippines Inc. recently launched its new store at SM Mall of Asia, one of the largest malls in the Philippines.

The Levi’s store offers a unique consumer experience with a tailor shop. The services include

hemming, fabric paneling, sewing of patches, embroidery, and a range of collectable pins and original patches for greater personalization.

The store also has a reimagined fitting room and digital in-store tools so customers can learn more about Levi’s various jean fits and styles.

Until June 26, get a free Levi’s upcycled denim sling bag for every purchase of Php3,500 or above net of discount.

PHOTO BY NATI MELNYCHUK ON UNSPLASH

Explainer BusinessMirror

B6 Monday, June 20, 2022

www.businessmirror.com.ph

Why is China denying Hong Kong was a UK colony?

By Ken Moritsugu The Associated Press

H

ONG KONG is preparing to introduce new middle-school textbooks that will deny the Chinese territory was ever a British colony.

China’s Communist rulers say the semiautonomous city and the nearby former Portuguese colony of Macao were merely occupied by foreign powers and that China never relinquished sovereignty over them.

It’s not a new position for China, but the move is a further example of Beijing’s determination to enforce its interpretation of history and events and inculcate patriotism as it tightens its grip over Hong Kong following massive protests demanding democracy in 2019.

“Hong Kong has been Chinese territory since ancient times,” says one new textbook seen by the AP. “While Hong Kong was occupied by the British following the Opium War, it remained Chinese territory.”

It is one of four sets of textbooks being offered to schools to replace those currently in use, all stating the same position, Hong Kong’s South China Morning Post newspaper reported earlier this week.

Was Hong Kong a colony?

Hong Kong was a British colony from 1841 until its handover to Chinese rule in 1997, with the exception of Japanese occupation from 1941 to 1945. Its colonial status was the result of a pair of 19th-century treaties signed at the end of the first and second Opium Wars, along with the granting of a 99-year lease in 1898 to the New Territories, which greatly expanded the size of the colony.

NEWSPAPER clippings of the Hong Kong handover ceremony in 1997 are displayed at the exhibition in the Hong Kong Museum of History, Friday, June 17, 2022. AP/Kin Cheung

C h ina’s Commu nist Pa r t y, which seized power during a civil war in 1949, says it never recognized what it calls the “unequal treaties” that the former Qing Dynasty was compelled to sign following military defeats.

In the late 20th centur y— with China unwilling to extend the lease on the New Territories, and the colony not viable without them—Britain entered into protracted and often contentious negotiations with Beijing over conditions for the return of Hong Kong to Chinese rule.

Ultimately, China took control of Hong Kong in 1997 under a “one country, two systems" arrangement that would keep the city's economic, political and judicial systems distinct from those in mainland China for 50 years. That was laid out in a 1984 Sino-British Joint Declaration registered with the United Nations, although China now refuses to recognize the agreement.

Has this issue come up before?

In 1972, just months after the China seat at the United Nations was transferred to Beijing from

but loses its right to determine its own future,” she said.

Why is Hong Kong changing textbooks now?

STUDENTS wearing face masks attend a Chinese national flag raising ceremony during the first day of the new academic year at a secondary school, in Hong Kong, on September 1, 2021. AP/Kin Cheung

the Republic of China government that fled to Taiwan during the civil war, the government acted to remove Hong Kong and Macao, which reverted to Chinese rule in 1999, from a UN list of colonies, effectively stripping them of their right to self-determination.

At a time when European nations had granted independence to other colonies, China feared the same could happen to the British and Portuguese enclaves it wanted back. “The settlement of

the questions of Hong Kong and Macao is entirely within China’s sovereign right and does not at all fall under the ordinary category of ‘Colonial Territories,’” China’s representative said at the time.

Mary Gallagher, who teaches Chinese studies at the University of Michigan, said then-Chinese leader Mao Zedong wanted to ensure that Hong Kong would remain part of China. “So Hong Kong moves between the Chinese empire and the British empire,

The new textbooks are part of broader changes to education following the 2019 protests, in which many students participated and some played leadership roles.

The texts are for liberal studies classes, which the government overhauled last year after pro-Beijing lawmakers and supporters said they encouraged opposition and activist thought.

The classes now focus on themes such as national security, patriotism and identity.

The textbooks promote the official view that the protest movement was the result of foreign agitation and threatened national security. The Beijing government used such arguments to pass a sweeping National Security Law for Hong Kong in 2020 curtailing free speech, criticism of authorities and political opposition.

Authorities have launched a National Security Education Day on April 15, with students encouraged to learn more about national secu-

rity and take part in educational activities that emphasize the importance of protecting China.

Where is this leading?

The new textbooks are part of a push to bring Hong Kong's institutional values more closely in line with those of mainland China, especially in the areas of politics and history. Increasingly, Chinese leader Xi Jinping is imposing his vision of strongly nationalistic and increasingly authoritarian rule on the region.

China has sought to eradicate any memory of the military's 1989 bloody suppression of student-led protests centered on Beijing's Tiananmen Square, citing pandemic concerns to ban once huge public commemorations in Hong Kong on the June 4 anniversary.

“The Communist Party has a monopoly of the truth and of history in China,” said Steve Tsang, a Chinese politics specialist at the School of Oriental and African Studies in London. “In the Xi approach to history, facts are merely incidental. Only interpretation matters. And only one interpretation is allowed.”

China's online ‘tank’ cake snafu raises Tiananmen questions

By Zen Soo

The Associated Press

A

N online snafu involving China’s most popular e-commerce livestreamer and a cake decorated to look like a tank has raised questions among some Chinese over the crackdown on pro-democracy protests in Beijing's Tiananmen Square in 1989.

The order to the People's Liberation Army soldiers to fire on unarmed civilians is a sensitive subject that has long been heavily censored by the ruling Communist Party.

Li Jiaqi, China’s most popular ecommerce livestreamer, is known for hawking everything from lipsticks to frying pans on his online show, where watchers can buy items directly at a discount.

He rose to popularity in 2018, gaining the nickname “Lipstick King” after he tried on 380 lipsticks during a seven-hour stream, and for selling 15,000 lipsticks in just five minutes during an online shopping festival.

But last Friday, Li’s online show, which draws tens of thousands of viewers, was cut short after a woman appeared on camera holding what appears to be a small white cake decorated with wafers and cookies to look like a military tank, according to screenshots posted on social media platforms.

The abrupt end left thousands of his fans confused. Li briefly became a trending search term in Chinese social media.

The show was on June 3, the eve of the anniversary of the June 4, 1989, crackdown on thousands of students gathered in the vast plaza at the heart of Beijing to demand greater democracy. Hundreds if not thousands of protesters are believed to have died.

One of the most famous photographs of the military crackdown, commonly referred to as “Tank Man,” shows a man holding plastic bags standing in front of a line of tanks, appearing to block their approach up Beijing's main east-west thorough-

fare, the Avenue of Eternal Peace, or Chang'an Avenue. All such pictures are censored in China.

Shortly after his stream was terminated Friday, Li posted on his Weibo platform, similar to Twitter, saying the stream ended early due to a “technical error.” A replay of the stream was also not uploaded.

Neither Alibaba nor Li's agency, MeiOne, has responded to requests for comment.

His absence has sparked a flurry of speculation among Chinese online, many of whom were born after 1989 and because nearly all mention of the crackdown is censored inside China, don't know much about what happened then.

Keywords and phrases linked to the incident are censored. Searches for “Tiananmen June 4” or “Tiananmen 1989” turn up no results on search engines and social media platforms in China.

“Who can tell me what happened to Li Jiaqi?” said one user on Weibo. “I can’t seem to find any information.”

By Monday, Chinese censors had wiped all photos of the tank-shaped cake and any clip of the live-stream from the Chinese internet. Li hasn’t appeared on another livestream session since.

Those aware of the Tiananmen Square massacre questioned, using cryptic allusions to June 4 to evade censors, if Li was aware of the sensitivity of showing a tank on a show like his.

“It has become Li Jiaqi’s fault for not knowing about an incident that he is not allowed to know, and now he must prove that he really did not know about an incident that he is unaware of,” commented a Weibo user with the handle MaxWell_2000, pointing out the Catch-22 nature of the situation.

The apparent effort to prevent people from seeing the show prompted some people to say they were learning for the first time about the Tiananmen crackdown.

“I didn’t know before, but now I think I know,” said one user on Wei-

IN this June 5, 1989, file photo, a Chinese man stands alone to block a line of tanks heading east on Beijing's Chang'an Avenue in Tiananmen Square. An online snafu involving China’s most popular e-commerce livestreamer and a cake decorated to look like a tank, referencing the iconic Tank Man photo taken during the 1989 student-uprising, has raised questions among some Chinese over the violent crackdown on prodemocracy protests in Beijing's Tiananmen Square on June 4, 1989. AP/Jeff Widener

bo, where self-censoring posts using vague language to refer to sensitive topics are commonplace to evade censors and prevent account suspensions. The apparent censoring of Li's show has had the contrary effect of drawing more attention to it and to what happened in Tiananmen Square

in 1989, said Shaun Rein, founder and managing director of China Market Research Group in Shanghai.

“For many Chinese users, taking Li offline at this time could have the opposite effect of bringing attention to an incident that nobody in China usually talks about,” said Rein.

Marketing BusinessMirror

www.businessmirror.com.ph

Monday, June 20, 2022 B7

Mentorship and lessons after college A

PR Matters

By Claire de Leon-Papa

RECENT luncheon with Ms. Zeny Iglesias, a former professor at St. Scholastica’s College, took me on a quick throwback to my college days in Mass Communication classes and my experiences as a Public Relations practitioner in various PR agencies. Oh, what a joy to see a beloved mentor beaming with pride that we are now in the same industry. I imagined, what could be more gratifying for a teacher than to see her student follow her career path? Indeed, it was such an exhilarating moment to speak to one of the persons I look up to among common circle of colleagues at work.

Speaking of schools, universities have been busy mounting graduation rites lately. Thankfully, our low-risk situation has enabled face-to-face ceremonies.

This year, another set of graduates is about to enter the socalled real world. A new batch, dreaming of making a mark in PR practice, is joining our league.

I asked myself, what could be the advice that I will give to the newly grads who are planning to try it out in PR or related industry?

As successes and failures have taught me, earning a diploma does not equate to finishing the race. The real world is a bigger classroom, with the hopefuls continuously challenged to unlearn and re-learn what had been taught in schools. At a certain point, it makes us realize that it is not just the daily lessons that matter. Grit, discipline, patience, not to mention humility, are traits that will earn us the badge of being deserving to be in the industry.

And this brings me back to the throwback moment when I look back and recognize some of the remarkable people who took the time and gladly taught valuable lessons about the profession that I have grown to love and respect. What makes them truly admirable is the fact that they were generous in teaching a starter like me to be able to wade through the gentle and harsh waves of obstacles that will come my way as I pursue my career. Undoubtedly, their nuggets of wisdom have served as a lighthouse that continues to guide my path to this day.

Following are just some of those lessons that I picked up and would be happy to share:

PR 101 “Public Relations is about creating relationships with your target public.”

—Max Edralin

The late Manong Max Edralin was a co-member in Tuesday Club and International Public Relations Association (Ipra), both by-invitation membership clubs composed of media, public officials and PR practitioners. I distinctly remember that whenever an opportunity presented itself, he would always strike a conversation with me and discuss the importance of understanding PR beyond the “pa-photo-photo opp” concept. PR after all is not just about publicity. It is knowing your target audience and mastering the science and art of delivering your message to them.

There were times when I encountered personalities who thought that PR is limited to making it to the headlines and photos being visible in publications. Lately, reaching a trending status in social media was also added as one of the measures.

While certain requirements

“Be straight to the point.”

—Charlie A. Agatep

Writing and possessing a keen eye for flawlessly written articles are part of the tasks of a PR practitioner. But this does not only include creating press releases. A PR does a lot of correspondence. Letters of invitation are often sent out to people holding high positions. Mr. Agatep was always very clear with his instruction that letters should be straight to the point.

Leave the flowery background and state the agenda immediately in the first part of the letter “because these people are busy and loaded with other equally important invitations.” Spare the recipient the unnecessary introduction.

My stint in Agatep and Associates taught me another lesson from Mr. Agatep—his Point A to Point B reminder. A good communicator must be clear and simple with his key message. In a press release, what exactly do we want to say? What message do we want to leave behind?

What kind of perception do we want to create? Oftentimes, communication plans are replete with grand executions, using technologies that are on-trend.

But it leaves the most important task: ensuring that the message that we want to convey is received well and that desired reaction is met.

As social media becomes more influential, when technology drives the daily lives of most of the public, when attention span retention is a constant hurdle, how are we going to take our key message from point A to point B? How often do we evaluate the impact of our communication campaigns beyond the numbers of likes, shares and comments on Facebook, or the size of the published article?

Passing the Torch

call for visibility and virality, PR is also practiced sans publicity.

Establishing trust and connection with your target market is far more lasting and credible. An excellent corporate PR campaign encapsulates the company’s vision, culture and DNA. It is seen and experienced, not just in press releases, but in how each employee represents the company from the top management to the rank and file, the maintenance of the standard of quality of products or services that cements customer loyalty from generation to generation, the engagements with communities that improve their lives, and the consistency of its advocacy. All of these are part of establishing relationship with your public.

It is not time-bound nor ad hoc.

Rather, it is living out the purpose of a company or leadership; it is in short, walking the talk.

“Tell me your idea in one short sentence.”—Tony Zorrilla

As a PR consultant once upon a time in Zorrilla, Zorrilla and Associates, the Mr. Zorrilla was quite critical of my thought process as an adviser to clients. He was my worst— and most caring—critic. He was quite strict in literally forcing me to streamline my thoughts in a split second. He said that clarity and speed are essential, most especially in times of crisis situations. As a consultant of a PR agency to local and multinational companies, he repeatedly explained that it is important to be constantly ready and onpoint in laying down risks and

opportunities to be able to draw the right solutions in an instant. “If you cannot state your thoughts in one sentence, then you obviously do not know what you are talking about.”

You can bet that it takes grit to be under the strict tutelage of Mr. Zorrilla. But just as how he predicted two decades ago, I am profusely thankful to him for being too patient with me in practicing every day. Clarity of mind and being able to communicate well are two traits that a PR person has to possess. To this day, it remains to be a constant challenge to streamline thoughts in the midst of influx of information offered by several platforms of communication, including but not limited to fake news and various forms of disinformation.

Simplifying several elements that may affect a corporate or a person’s reputation takes a lot of time and experience to master.

But it is an essential skill for a PR practitioner to swiftly weed out what is not significant and determine what the issue is really all about. In an era where anybody can be a journalist using the social media platform, speed and careful calibration of response is a 24/7 task.

“Always look beyond what your eyes can see.”

—Rey Anthony G. David

My first foray in PR was in Pro Solutions Inc. I vividly remember that I had a blast learning the ropes through ProSol. The list of clients and their requirements provided great expo-

sure for handling small and big events with media coverage.

To this day I still believe that one of the stepping stones in PR is being able to mount events from the ground up. A young practitioner has to have the energy to juggle various requirements in detail. Beyond the glitz and glamour of organizing themed press conferences, concerts, exhibits, launches, etc., the routine for preparation and setting up contingency plans are a must in any PR arsenal. Handling of events requires a mental checklist, discipline in keeping time, and flexibility for unexpected changes. Traffic nor force majeure are never an excuse.

Regardless of the situation, the show must go on, as they say.

In one of the first few press conferences that I organized, RAD, as we call Mr. David, said, “You should listen during presscons and interviews to be able to determine the news that will come out tomorrow.”

Oftentimes, event organizers are too busy paying attention to the physical requirements and flow of the activity but not to the angles of stories that are developing in the course of the discussion, which actually provide room for post-event efforts. Sometimes, a question from a journalist gives a hint for a possible follow-up interview or a new set of references that may provide more substance to his/her story. It is therefore important that events such as presscons are not only seen as a one-day affair but as a launch of continuous conversations.

AFTER a couple of hours of conversation with my college professor, there was a hanging question about considering the idea of “giving back” by rendering teaching hours in a chosen university.

Personally, there’s no doubt that teaching is a selfless way of reciprocating the patience, trust and support given by our professors.

I guess there is just a part of me that keeps on asking, “Do I deserve this privilege?”

Talking about teaching, it is with much anticipation that I would also like to share that mentorship in collaboration with schools is one of the main thrusts of Ipra Philippines of which I am a member. Together with my colleagues in Ipra, we look forward to exploring partnerships with heads of academic institutions to be able to support the new generation of PR practitioners in the country.

For now, we salute and honor the newly grads. Congratulations and best wishes, Batch 2022!

PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier association for senior communications professionals around the world. Claire de Leon-Papa is the Head of External Affairs and Social Partnerships of Unilab Inc. She is a member of Ipra-Philippines Chapter and the International Public Relations Association.

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

Sports

YULO’S IN COMFORT ZONE

BusinessMirror

B8

C

| Monday, June 20, 2022

mirror_sports@yahoo.com.ph Editor: Jun Lomibao

WARRIORS: 2022 DONE, 2023 HERE WE COME A

PARADE awaits in San Francisco to celebrate the champion Golden State Warriors. The National Basketball Association (NBA) draft is a few days away, with presumed top-three picks Jabari Smith, Chet Holmgren and Paolo Banchero set to take their first steps toward realizing their enormous potential. Free agency starts in less than two weeks.

The 2021-22 NBA season is over.

The 2022-23 NBA season seems like it’s already here.

The Warriors are back on the NBA mountaintop. Their win over the Boston Celtics in this season’s finals capped the league’s 75th anniversary celebration and ushered in an offseason that will, as always, start with tons of attention on player movement—or, in some cases, players not moving.

Two-time reigning MVP Nikola Jokic is eligible to receive a $260 million supermax extension from the Denver Nuggets—it’s basically a sure thing that it’ll be offered and accepted. Phoenix’s Devin Booker and Minnesota’s Karl-Anthony Towns are in line for $210 million extensions, neither of which will be surprises either.

Then there’s the class of younger players in line to secure their first post-rookie-contract paydays: Memphis’s Ja Morant, Miami’s Tyler Herro, New York’s R.J. Barrett and Cleveland’s Darius Garland are just some of the names in that group.

So, too, is New Orleans’ Zion Williamson, which will be an interesting case since he has been healthy enough to play in only 85

“When we get to that point, we’ll see,” James said when the Lakers’ season ended.

That point isn’t here yet. But it’s coming.

THE FAVORITES

THE Golden State Warriors—including Stephen Curry, holding his Finals MVP trophy; Klay Thompson and Draymond Green, holding the Larry O’Brien Championship Trophy, step off a plane at San Francisco International Airport on Friday. AP games over his first three pro seasons and is constantly questioned about his conditioning.

Zach LaVine, who is expected to remain with the Chicago Bulls, headlines the class of unrestricted free agents. Kyrie Irving, James Harden, Russell Westbrook and Bradley Beal all have player options for next season, all of them worth

between $34 million and $43 million.

And then there’s LeBron James, about to enter his 20th season—likely the one where he’ll catch Kareem Abdul-Jabbar and become the NBA’s all-time scoring leader—and soon to be eligible for a two-year extension with the Los Angeles Lakers that’ll be worth nearly $100 million for the 2023-24 and 2024-25 seasons.

ACCORDING to FanDuel Sportsbook, the Warriors are the favorites to win the 2023 title—just ahead of the Celtics.

Brooklyn is the third choice in odds posted immediately after Game 6 of this year’s finals ended, followed by Milwaukee and the Los Angeles Clippers—who get Kawhi Leonard back next season.

Phoenix, Miami, Philadelphia, Memphis and Dallas round out the top 10 in the odds posted by FanDuel.

Of course, take any prediction right now with a grain of salt.

When last season ended Brooklyn was the runaway favorite to win the 2022 NBA title. The Nets didn’t win a playoff game, getting swept by the Celtics in Round 1.

The second choice by sportsbooks after last season was the Los Angeles Lakers. They didn’t even make the playoffs and struggled by almost all possible measures.

For the record, the Warriors had top-five odds of winning this year’s title by most oddsmakers when last season ended at around 12-1. The Celtics were in the middle of the pack, at around 40-1. AP

RJ Abarrientos PhilCycling natl championships for road draws big field heads to Korea C

P

HILIPPINE basketball again lost a potential star after RJ Abarrientos signed up as an Asian import players quota with Ulsan Hyundai Mobis Phoebus in the Korean Basketball League (KBL).

Abarrientos was the second national team member after Ateneo’s SJ Belangel first opted to pursue a career on foreign soil.

A nephew of Philippine Basketball Association legend Johnny Abarrientos, the 22-yearold point guard gave up three years of eligibility with Far Eastern University in the University Athletic Association of the Philippines.

The 5-foot-11 Abarrientos played only one season in a Tamaraw uniform and averaged 13.8 points, 4.4 rebounds, 2.5 assists and 1.3 steals in Season 84 where FEU reached the Final Four with a 7-7 win-loss record in the eliminations.

FEU Athletic Director Mark Molina confirmed Abarrientos’s decision to play in the KBL but didn’t give any details.

Belangel signed a two-year deal with Daegu Kogas Pegasus.

Josef Ramos

LOSE to 600 riders across different categories and events registered for the PhilCycling National Championships for Road 2022 that hits the road on Tuesday (June 21) with Tagaytay City as main hub.

PhilCycling and Philippine Olympic Committee President Rep. Abraham “Bambol” Tolentino wasn’t surprised with the big turnout as cycling surged to necessity during the Covid-19 pandemic when public transport was restricted.

Because of the sheer number of entries, the PhilCycling will stage elimination heats in the Men Under-23 category which drew

the biggest number of entries at 198 riders. Four elimination heats consisting of a five-lap race each around the Tagaytay City Centrum will determine the 60 cyclists—15 from each heat—who will advance further in the championships.

The criterium races will kick off the four-day championships copresented by Standard Insurance, MVP Sports Foundation and Smart starting at 8 a.m. on Tuesday.

On Wednesday, the individual time trial races will be staged from Nasugbu in nearby Batangas to the Praying Hands monument finish on Isaac Tolentino Avenue. The road races (massed start) are scheduled

ARLOS YULO won two more gold medals in Doha on Saturday—proof that after his Olympic debut in Tokyo last year, he’s now comfortable competing on the world stage and contending for the top of the podium.

Yulo added the vault and parallel bars titles to the floor exercise gold and men’s all-around silver at the Ninth Senior Artistic Gymnastics Asian Championships at the Aspire Academy in the Qatar capital.

“He’s superb and nobody thought that he could beat the other countries,” Gymnastics Association of the Philippines President Cynthia Carrion-Norton told BusinessMirror on Sunday.

Yulo recorded a 14,884 points average to win the vault—the event he ruled at last year’s world championships in Kitakyushu, Japan.

South Korea’s Kim Hansol and Japan’s

Shiga Tachibana scored identical 14,417 points, but the Korean clinched silver after the tiebreak.

The 22-year-old floor exercise world champion in Stuttgart 2019 scored 15,167 points for his third gold in Doha in the parallel bars. Japan’s Tsuyoshi Hasegawa and China’s Yin Dehang tied for second with similar 14,700 points, but the Japanese claimed the silver medal.

Yulo, according to Carrion-Norton, was scheduled to fly home on Sunday with Japanese coach Munehiro Kugimiya and physiotherapist Jumpei Konno for a victory party on Tuesday that would celebrate his conquest in Doha and his five gold medal haul in the Vietnam 31st Southeast Asian Games.

Liverpool is hosting the world championships from October 29 to November 6. Josef Ramos

Team USA sweeps QC VNL leg, but gives up 1st set vs Thailand

T

By Josef Ramos

HE United States wound up unbeaten in the Quezon City leg of the Volleyball Nations League (VNL) but was forced to give up a set by an inspired Thailand side on Sunday at the Smart Araneta Coliseum.

The Thais gave the Americans a scare in a 17-25, 25-13, 25-23, 25-18 loss but earned enough bragging rights for putting a stain on the Olympic champion’s Philippine campaign.

“All the teams are incredible, we can’t take anything for granted,” US top player Ali Frantti said. “It’s going to be a battle. It’s going to be a grind each day.”

“It’s going to be harder and harder.

I think all the competition is good. You know, we will take it one day at a time and focus on what’s next,” added Franti, who scored 27 points with two blocks and 10 digs for the Americans, whose 7-1 won-lost record for 21 points moved them closer to a spot in next month’s Finals in Ankara, Turkey.

Kelsey Robinson had 11 points, 16 digs and seven receptions, middle blockers Chiaka Ogbogu and Anna Stevenson scored 10 points each and libero Justine Wong-Orantes collected 16 points for the US. One of the crowd favorites, Frantti was delighted with the reception

for Thursday (women) and Friday (men).

Races will be in Men and Women Elite, Under 23, Juniors (17-18) and Youth (16-under) in the championships staged in cooperation with Tagaytay City Mayor Agnes Tolentino, Eighth District of Cavite, Province of Cavite and the First District of Batangas as well as the municipalities of Laurel, Agoncillo and Talisay and the local Philippine National Police commands.

she and the Americans received from the almost 5,000 fans at the Big Dome on Sunday.

The US beat Bulgaria, Poland and China earlier in the week in straight sets.

The Thais only had a win to show for a 4-4 card in the Quezon City leg that has Mikasa, Ganten, Gerflor and Senoh as global sponsors and global suppliers, PLDT Home as presenting partner, Rebisco, MG Philippines, TOP Speed Insurance, Asics and Maynilad as official sponsors, Havas Ortega, The Look Company, Summit Outdoor Media, Marketing Media Ventures, Strong Media Advertising Solutions. 91.5 Win Radio, Philippine Olympic Committee, Philippine Sports Commission, City of Taguig, Quezon City and F2 Logistics as official suppliers.

Belgium beat Bulgaria, 25-22, 2523, 20-25, 20-25, 17-15, in a thrilling five-setter earlier on Sunday.

Britt Herbots had a 26-point outing for Belgium which stayed outside the relegation zone with its second straight victory and third overall in eight matches.

THE US’s Nia Reed imposes her will over Thailand’s Bundasak Jarasporn and Kokram Pimpichaya.

NONIE REYES

Coo elected bowling president

B

THERE THEY GO…Runners of various shapes, sizes and looks answer the starting gun in the 5K race at the Rizal Park on Sunday to kick off the inaugural Asics Rock ‘n’ Roll Running Series Manila which culminates in a first local night racing around the streets and landmarks of Manila for the 21K and 42K events.

What’s next, Blue Eagles?

WITH the departure of SJ Belangel for the Korean league, the Ateneo Blue Eagles’ chances of competing for another University Athletic Association of the Philippines (UAAP) men’s basketball title just greatly lessened.

Looking at it on a deeper level, the finals loss to the University of the Philippines had its germ from a few years ago.

In my opinion, it began following the Blue Eaglets 2018 championship.

Joaqui Manuel went to De La Salle and Dave Ildefonso to National University for two seasons before returning to Ateneo.

I recall one Blue Eaglets assistant commenting that this was the first time that he saw players not automatically moving up.

Then Kai Sotto opted out of his final year of senior high to pursue an National Basketball Association dream.

Then Francis Lopez followed suit.

When the global lockdown happened, Will Navarro opted out of his final year. Dwight Ramos opted to turn pro.

Then Eli Ramos left.

What was supposed to be a careful line of moving up and succession hurt the team eventually.

Imagine if Sotto and Lopez were in uniform. Imagine if Dave Ildefonso never left. He would have adjusted earlier like Thirdy Ravena did after his frosh season.

Of course, this is not to fault Kai. I am happy to see him pursuing this once-in-a-lifetime dream.

Before going to Season 84, only three players received

OWLING legend Olivia “Bong” Coo was unanimously elected president of the Philippine Bowling Federation (PBF) in a Pasay City Hotel over the weekend.

Coo, who took over Steve Robles, is the first female president of the association formerly called the Philippine Bowling Congress. She has a three-year term.

The 74-year-old Coo is a four time World Cup champion and a member of the World Bowling Hall of Fame and

significant minutes in previous years—Angelo Kouame, Raffy Verano and Belangel. The others received token minutes because the Nieto twins were still around. As was Thirdy Ravena, Isaac Go and Adrian Wong.

Raffy Verano has opted out of his final playing year following the departure of Gian Mamuyac, Tyler Tio, Jolo Mendoza and Troy Mallillin. I can’t fault Mallillin for leaving because well, he wasn’t used. It’s a good thing that Matthew Daves came on strong midway through the season because he was being sat.

All of a sudden, the ball will be thrust in Forthsky Padrigao’s hands. Where relief will come from is anyone’s guess. Now losing Eli Ramos hurts.

Everyone needs to grow up in a hurry.

Sure there are talented rookies coming in but there is no telling on how they will perform. The team now looks thin and lacking in experience. Furthermore, the Blue Eagles’ braintrust now has to contend with the same concern that besets the Philippine Basketball Association—players leaving for abroad and sports agents pointing them to greener pastures.

And is there any relief coming from the high school

Philippine Sports Hall of Fame.

Senate President Vicente “Tito” Sotto III was named chairman, Atty. Ed Santos vice president, Gina Avecilla secretarygeneral and Lorna Ferlaca treasurer during the elections held by the PBF board.

Another bowling legend, Rafael “Paeng” Nepomuceno, national men’s coach Biboy Rivera, Salome Lopa, Steve Hontiveros, Nikki Cheng and Jean Marie Farcuri were also elected to the board.

Josef Ramos

ranks? Or has the well dried up? For the first time, there doesn’t seem to be any prospect with that chance.

All these will change how the team is built and how it will recruit.

Make no mistake, in spite of all this, the Blue Eagles came within minutes of winning it all again. They aren’t in bad shape.

Yes, there are challenges, but aren’t there every year?

They will contend but the path to another finals appearance is harder.

I think people need to re-adjust their expectations.

Not winning a championship doesn’t mean the season was awash. It only is if you are super-stacked and yet, you don’t.

You cannot say that you are Ateneo and are expected to win every year. Well, excuse me. Every team has its own program and is actively working to make their team better.

If De La Salle made everything more competitive, Ateneo and NU pushed it to another level. And UP coming out on top makes the league the most competitive.

At the end of the day, it is good for college basketball and Philippine basketball as a whole.