BusinessMirror October 31, 2019 by BusinessMirror

Thursday, October 31, 2019 Vol. 15 No. 21

P25.00 nationwide | 11 sections 84 pages |

Parallel probes ongoing on rice import players

By Jasper Emmanuel Y. Arcalas @jearcalas & Cai U. Ordinario @caiordinario

HE government is now scrutinizing rice importation players, including farmers’ cooperatives, as authorities seek to fully realize the benefits of the rice trade liberalization (RTL) law. High-ranking officials interviewed by the BusinessMirror disclosed that parallel investigations have been launched by different agencies to ensure the proper implementation of the RTL law. Finance Assistant Secretary

PHL, China panel on oil, gas devt in 1st meeting By Recto Mercene

@rectomercene

HE Philippines and China convened in Beijing the 1st meeting of the PhilippinesChina Inter-Governmental Joint Steering Committee on Cooperation on Oil and Gas Development, with both sides expressing hopes of moving forward discussions on possible joint exploration activities as the need for new energy sources intensifies. The Department of Foreign Affairs said the Philippine delegation that went to Beijing for the October 28 meeting was led by See “1st meeting,” A2

PESO EXCHANGE RATES n

Antonio Joselito Lambino II said the Department of Finance (DOF) is closely monitoring revenue collections from rice-related transactions, particularly importation. This, Lambino noted, includes income taxes and tariff collections.

The finance department is doing this to ensure that rice tariffs are properly collected, especially since they are vital to bankroll t he go v e r n me nt ’s i nt e r v e n tions to improve local farmers’ productivity.

“The tax registration of the warehouse was the primary motivation for the raid. But because [the warehouses] contained rice, we checked the import status, [this being] imported rice. As of a few days ago...they were unable to present import documents.” —Lambino

Upskilling the nation’s saviors

Under the RTL law, tariffs in excess of P10 billion will be given directly to farmers. On the aspect of income taxes, the Bureau of Internal Revenue (BIR), an attached agency of the DOF, recently padlocked 11 warehouses in Guiguinto, Bulacan, for various tax violations, including non-registration and failure to pay See “Rice import,” A2

IN MEMORIAM A woman who makes a living cleaning tombs at the Manila South Cemetery in Makati paints one such grave on Wednesday (October 30), as the nation prepares for the 2019 observance of All Saints’ Day and All Souls’ Day. The Catholic Bishops’ Conference of the Philippines Vice President and Caloocan Bishop Pablo Virgilio David and environmental groups have urged the public to make it a “prayerful” and not “wasteful” occasion. NONIE REYES

Rene E. Ofreneo

LABOREM EXERCENS

HE Information Technology and Business Process Association of the Philippines (IBPAP) recently announced a massive reskilling and upskilling program for the country’s 1 million ICT workers, with an initial target of 100,000 trainees per year. Continued on A19

‘Plan to regulate shipping fees faces legal challenge’ By Elijah Felice E. Rosales

@alyasjah

HE gover nment ’s plan to regulate shipping fees through a joint administrative order (JAO) will only face legal challenge and eventually fail, as no single agency right now has the mandate to implement such policy, experts warned on Wednesday. In a study commissioned by the Wallace Business Forum, economist Epictetus E. Patalinghug of the University of the Philippines (UP) said the government should rethink its

plan of regulating shipping fees under a draft JAO. Such move, he argued, could work against the Philippines in a period when “the regulatory trend in international shipping is to promote deregulation and pro-competitive policies.” “The proposal to regulate shipping fees and charges of international shipping lines rests on the assumption that some shipping lines plying the intra-Asia routes impose excessive and questionable destination charges to the consignees,” Patalinghug said. See “Shipping fees,” A2

US 51.0440 n JAPAN 0.4688 n UK 65.6885 n HK 6.5114 n CHINA 7.2243 n SINGAPORE 37.4745 n AUSTRALIA 35.0366 n EU 56.7303 n SAUDI ARABIA 13.6106

Source: BSP (30 October 2019 )

News

BusinessMirror

A2 Thursday, October 31, 2019

‘Ghost’ of delayed budget to haunt growth data till Q3

By Bianca Cuaresma

@BcuaresmaBM

HE ghost of the delayed passage of the national budget for 2019 is expected to still haunt the country’s economic growth numbers up until the third quarter of this year, a local economist said. In his most recent commentary, Security Bank economist Robert Dan Roces said he projects the third quarter gross domestic product (GDP) to hit 5.8 percent. While this is a slight acceleration from the disappointing growth

numbers in the first and second quarter which averaged at 5.6 percent, it is still below the lower end of the government’s annual target range for the year which is at 6 percent to 7 percent. “Leading indicators suggest

an otherwise unremarkable recovery for the quarter as sluggish growth in capital goods and a slowing imports sector offset gains from higher household consumption on the back of slower inf lation, and a late surge in public spending seeking to play catch-up after getting derailed by the late budget,” Roces said. “Private investments which plunged in the second quarter will still be a source of weakness due to external uncertainties,” he added. In the highlights of the Bangko Sentral ng Pilipinas’s (BSP) latest monetary board meeting, the country’s monetary leaders admitted that slower growth in manufacturing activities due to weak external demand was exacerbated by the budget impasse and led to

the lower-than-expected growth in the first half of the year. The BSP’s latest move was to take advantage of the low inflation environment to cut its interest rates in an effort to spur economic growth in the country. For October inflation, Roces said he sees price growth to be at 0.8 percent for October. “The slow inflation rate may be attributed to essentially unchanged price levels in rice, electricity, and transport costs plus favorable yearover-year base effects. We expect inflation to remain below target until November,” he said. September’s inflation number was at 0.9 percent and the ninemonth average hit 2.8 percent. The government’s target range for the year is at 2 percent to 4 percent.

BOC seizes ₧3.7-M misdeclared stainless angle bars from China T

WO containers of misdeclared stainless angle bars from China with an estimated worth of P3.7 million have been seized by the Bureau of Customs (BOC) at the Port of Manila. In a statement, BOC Deputy Commissioner Raniel T. Ramiro said that the shipments filled with stainless angle bars were consigned by the Liuzhiga International.

Shipping fees. . . Continued from A1

“Granting, without accepting, that this hypothesis is true, the question to ask is how does this alleged practice arise in an industry that is considered competitive? And the most important issue is whether the burden and cost of the proposed regulations on the regulatory agencies and the requesting parties are far below the benefits,” he added. For Patalinghug, what the government should do is build regulatory capacity in a single agency that will be tasked to craft rules and regulations on charges that may be imposed by shippers, logistics service providers, customs brokers, cargo truck operators, terminal operators, as well as cargo yard operators. Patalinghug added the DTI should refocus the thrust of the JAO. Instead of prohibiting outright the imposition of surcharges, he said the order should contain monitoring guidelines specifying the criteria and procedures to be followed by shippers when imposing surcharges. “These rules may require carriers to publish their charges in advance, the condition that requires the imposition of surcharges, the timing of the imposition, the rules on adequacy of notice of implementation and the criteria for the termination of a particular surcharge,” the UP economist explained. In an interview with reporters at the sidelines of the forum where he presented his study, Patalinghug warned of possible legal challenges to the government if it proceeds with the issuance of the JAO without changing the regulatory powers of either the Bureau of Customs (BOC), Maritime Industry Authority (Marina) or the Philippine Ports Authority (PPA). “My point is, [there’s need to] create an arrangement for monitoring before imposing that, [just like] in the United States [where]

The containers arrived at the Port of Manila on October 19, 2019. “The Bureau’s intelligence unit has received a report from our reliable source that a certain shipment violated the Customs laws by gross misdeclaration in quality description of goods,” Ramiro said. The Intelligence Group-Customs Intelligence and Investigation Services (IG-CIIS) immedi-

the Federal Maritime Commission is doing that,” Patalinghug said. “It will be challenged because it is not in the Customs Modernization Act, giving functions to either Marina, or BOC, to regulate surcharges. That’s my problem with the JAO. It will surely face a legal challenge. That, unless they create a law giving a particular agency— BOC or Marina or PPA—because this [regulation of shipping fees] is another function, another responsibility,” he cautioned.

‘Check capacity first’

IN a separate interview, Ateneo Center for Economic Research and Development Director Alvin P. Ang said the government should strengthen the capacity of whatever agency will be tasked to regulate shipping fees. “You have to evaluate first who has the capacity to do it. The first is who can do it, before you do the JAO. This is one of the challenges here: we jump to the solution, but we’re not looking at the capacity. The government’s capacity is very limited,” Ang said. “In my opinion, you have to do an inventory of their [agencies’] capacity. That’s the critical part of any regulatory reform: look not at the regulatory process, but the regulatory capacity first. Only after that should you do regulatory reform,” he added. According to a joint study by the Department of Trade and Industry (DTI) and the World Bank, the Philippines has the highest logistics cost when pitted against regional manufacturing rivals Thailand, Vietnam and Indonesia. In the Philippines, firms spend 27.16 percent of their sales on logistics services: in Thailand, 11.11 percent; in Vietnam, 16.3 percent; and in Indonesia, 21.4 percent. As such, the DTI and the Departments of Transportation and of Finance are crafting a JAO that will regulate shipping fees to bring down trading cost.

ately coordinated with the Port of Manila District Collector Arsenia Ilagan to conduct an inspection on the shipment on Monday. During the spot check, the authorities found stainless angle bars and steel sheets, contrary to the declaration by the consignee. An alert order was immediately issued on Tuesday against the shipment pursuant to Section 1111 of the Republic Act 10863, otherwise known as the Customs

Rice import. . . Continued from A1

the annual registration fees. This includes not having any permits to have a warehouse. Lambino said six of the 11 warehouses had rice stocks and after the raid, the BIR found a total of 410,040 kilograms of rice, mostly imported from Vietnam and Myanmar. As of this week, he said, the BIR reported that the warehouses were unable to present any import documents to explain the amount of rice stored in the shuttered facilities. “The tax registration of the warehouse was the primary motivation for the raid. But because [the warehouses] contained rice, we checked the import status, [this being] imported rice. As of a few days ago, I checked, they were unable to present import documents,” Lambino said. Lambino explained that the operations that DOF-attached agencies conducted recently were in coordination with the Bureau of Customs and the Department of Agriculture (DA), particularly the Bureau of Plant industry (BPI). Authorities found out, he said, that the imported rice stored in the padlocked warehouses did not have any sanitary and phytosanitary import clearance (SPS-IC), which is a prerequisite for any rice importation. Lambino said the DOF supports the recent move of the Philippine Competition Commission (PCC) and the DA to start investigating rice traders in general. Recent ly, t he DA forged a memorandum of agreement with the PCC to closely work together against smuggling of agricultural products and other illegal trade practices. This will be in the forms of information exchange, investigation

Modernization and Tariff Act (CMTA). A Warrant of Seizure and Detention will be issued against the shipment for violation of Section of 1400 in relation to Section 1113 of the CMTA. “Further investigation is being conducted by the Customs prior to filing of appropriate charges against the personalities involved in the smuggling of goods,” Ramiro said. Jove Moya

and enforcement, and pushing for action plans through shared resources to limit and put a stop to anti-competitive practices.

DA’s CREST-O

LAST week, the DA said it has formed a “unified and integrated regulatory enforcement unit” that would address unlawful trade of agriculture and fisheries products in the country. The anti-smuggling unit called Compliance and Regulatory Enforcement for Security and Trade Office (CREST-O) was able to seized about 11,660 metric tons of smuggled rice stored at UPFC Logistics Cor p. warehouse in Guiguinto, Bulacan. The smuggled rice entered the country through a so-called phantom port in Pampanga, the DA said. The DA added that the shipments were linked to five Cooperative Development Authorityregistered cooperatives. “DA CR EST- O is cur rent ly checking the records of five Cooperative Development Authority-registered cooperatives that were reported to have been issued sanitary phytosanitary import clearance by the Bureau of Plant Industry,” it said. “It will be recalled that during the DOF-BIR Inspection of some 11 warehouses on October 3, one of the business establishments that was reported to be operating without the necessary permits from the BIR was UPFC Logistic Corp.,” it added. The DA said they are now digging deeper into the “mysterious importation of rice through the phantom port in Pampanga.” (This story is related to the BusinessMirror’s Broader Look today that reviews the involvement of rice cooperatives in rice importation especially after the government liberalized the industry. Please see pages A10-A11)

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Because dying is ‘as costly as’ living, bill grants funeral discounts for the poor

N the Philippines, dying has become as “costly as living itself,” a party-list group said, so it is pushing for the passage of a measure granting 50-percent discount from funeral services to indigent families, and granting free funeral services for extremely poor families nationwide. Bayan Muna Rep. Carlos Isagani Zarate, citing a survey done on funeral services by the UP School of Urban and Regional Planning in 2005, said the average funeral service package was P25,000, while memorial lots in public and private cemeteries cost an average of P50,000 for lot package including succeeding lease payments. “This is because most Filipinos already live lives of utter poverty and still die poor and indebted till the end. Funeral services generally are expensive, a stark and difficult reality confronting the large majority of impoverished Filipinos,” he added. “Decent funeral services include the transport of the corpse, provision of casket, embalming, interment and conduct to the church and/or to the cemetery,” he said. Traditionally, Zarate said most Filipino families hold the funeral wake at home. He said the lack of space in many residential areas, however, does not restrict the setting up of funeral wakes even on the sides of the street adjacent to a dead person’s residence. According to Zarate, there are also instances where a funeral wake lasts for more than a week only because there are not enough funds mainly gathered through

donations to cover for the burial expenses incurred. Under the bill, free funeral services shall be provided for Extremely Poor Families by funeral homes anywhere in the country. The said free services shall be a maximum of two per month per funeral branch, provided that said funeral service does not exceed the cost of the Funeral Home’s minimum funeral service package. Also, the bill grants a 50-percent discount on funeral services to indigent families by funeral homes anywhere in the country. Such would only be applicable, however, to At-Need funeral services and provided that the funeral service does not exceed the cost of the funeral home’s minimum funeral service package. The measure said funeral homes granting discounts or free services to indigent beneficiaries or extremely poor beneficiaries may reimburse the cost of the discount from any regional offices of the Department of Social Welfare and Development upon the approval of the regional director or convert the same as tax credits, for as long as a proper certification as to the veracity of the claim is certified true and correct by the DSWD. The bill said the tax credit may be used for a period not exceeding five years from the day the discount was given or from the date appearing in the official receipt. It said the amount necessary to implement the provisions of this Act shall be charged against the allocation in the General Appropriations Act of the DSWD. Jovee Marie N. Dela Cruz

Palace declares only half-day work for govt offices on Oct. 31

ALACAÑANG announced on Wednesday that government work will be suspended from 12 noon onwards on October 31. According to Memorandum Circular 69, the declaration of halfday government work will pave the way for government employees to properly observe All Saints’ Day (November 1) and to allow them to travel to and from different regions in the country. The circular was signed by Executive Secretary Salvador C.

1st meeting. . . Continued from A1

Foreign Affairs Undersecretary for Policy Enrique A. Manalo. The Chinese delegation was led by Vice Foreign Minister Luo Zhaohui. Bilateral delegations comprised officials from the respective foreign and energy ministries, and other relevant agencies. In accordance with the Memorandum of Understanding (MOU) on Cooperation on Oil and Gas Development forged earlier between the two governments, both sides confirmed the official establishment of the Oil and Gas Development Inter-Governmental Joint Steering Committee (referred to as the “Committee”). Both governments also discussed the Terms of Reference (TOR) on Oil and Gas Developments. “The Committee had a candid, in-depth and friendly exchange on cooperation arrangements under the MOU and agreed to further push forward communication and coordination on oil and gas development, with a view to achieving progress,” the DFA said. Both sides agreed to hold the Second Meeting of the Committee in the Philippines in early 2020.

Medialdea. However, those agencies whose functions involve the delivery of basic and health services, preparedness/response to disasters and calamities, and/or the performance of their vital services shall continue with their operations and render the necessary services. Malacañang left the discretion to suspend classes in private schools and work in private companies and offices to their respective heads or employers. Bernadette D. Nicolas

The exact date place has yet to be determined and mutually agreed upon through diplomatic channels. The TOR will determine the specific area covered by the agreement. President Duterte and other officials have mentioned a 60-40 sharing in favor of the Philippines in the exploration of Recto Bank (international name is Reed Bank; Chinese name is Liyue Tan) in Palawan. This is within the country’s 200-nautical-mile exclusive economic zone. Recto Bank is adjacent to Malampaya gas field, which accounts for 20 percent of the country’s power supply but is expected to be depleted in 10 years. In a press briefing at Malacañang last week, National Security Adviser Hermogenes Esperon Jr.said there has been an initial agreement of 6040 sharing scheme, but while this scheme is desirable, “it is not final.” Esperon said, “It could even go up to 61 or more. One percent is always substantial when you talk about such big investments.” The Philippines and China signed the MOU on joint exploration for oil and gas in the West Philippines Sea during the state visit in Manila of Chinese President Xi Jinping last year.

The Nation BusinessMirror

A4 Thursday, October 31, 2019 • Editor: Vittorio V. Vitug

Ban the sale of e-cigarettes, vapes–DOH exec

By Bernadette D. Nicolas

@BNicolasBM

HE Department of Health (DOH) is calling for an outright ban on the sale of e-cigarettes, or vapes, as soon as possible. Health Undersecretary Eric Domingo said on Wednesday that this is the best way to go to definitely improve health outcomes as he belied claims that vaping is a safer alternative to using cigarettes. “No, if the DOH have its way, we would go for an outright ban and I think there is a possible legal—I mean legislation that will be proposed sa senate and maybe in the house and we will support it, kasi

talagang safe, is no use of the product,” Domingo told reporters in an economic briefing at the Palace. While he said several countries had now decided to ban e-cigarettes, he said the country is currently taking a softer approach, which is regulation. “Dito sa atin right now, ang ano natin, kasi marami nang gumagamit, marami nang mga nagnenegosyo, it’s there. So regulation would be the

EQUITABLE RULES TO CURB YOUTH VAPING PUSHED

UIT for Good, a newly formed anti-tobacco advocacy group, is urging the government to enact fair regulation on electronic nicotine delivery systems (ENDS), or e-cigarettes, to keep these products inaccessible to youth or individuals below 18 years old. Dr. Lorenzo Mata, president of Quit for Good, cited the 2015 Global Youth Tobacco Survey where around 11 percent of young children between the ages of 13 to 15, have already experimented with ENDS, commonly known as e-cigarettes. “E-cigarettes have been specifically designed for adult smokers that are looking for viable alternatives to combustible cigarettes, not for experimenting or impressionable minors,” Mata stressed. And while the Department of Health shared concerns about ENDS being a prospective gateway to cigarette smoking, Mata shared a recent study conducted by public- health researchers from the Universities of Buffalo and Michigan that disproves this theory. Dr. Lynn Kozlowski, the study’s lead researcher, revealed that there is a lack of substantial evidence to show a link between e-cigarette use and subsequent tobacco use. She cites that many studies use erroneous measures to determine actual smoking. “Measures of ‘at least one puff in the past six months’ can mean little more than the experimenting vaper was curious how cigarettes compared,” Kozlowski said. E-cigarette flavorings are also reported to be an important consideration, especially as young people report using vape juices with only flavorings, not nicotine. Kozlowski, together with coauthor Kenneth Warner, cited a national survey by the University of Michigan entitled “Monitoring the Future,” a study that sought to understand the behaviors, attitudes, and values of American students and young adults, which shows that only 20 percent of the students surveyed used e-cigarettes juices that

had nicotine content. “To prevent, if not eliminate, the youth appeal of vaping products, a total ban on e-cigarette advertising is nonnegotiable. We strongly urge our government to ratify sound policies that will strictly require e-cigarette manufacturers and retailers, both on-ground and online, to refrain from conducting deceptive marketing activities, such as utilizing social media and celebrity influencers, and more important, to perform age verification measures prior to any transaction,” Mata declared. And despite incidences of illnesses and deaths in the United States purportedly linked to vaping, Mata said that it would be unwise to disparage the harm reduction potential of ecigarettes. He pointed out that in the United Kingdom where e-cigarettes have been available for about 10 years now, there has been no outbreak of vaping-related illnesses because it is being used as a smoking alternative by current smokers, and ENDS devices and liquids are subject to fair regulations and effective quality standards. In addition, vaping remains uncommon among youth. “New data released by Action on Smoking and Health [ASH] UK revealed that there are now half as many vapers in the country as smokers, comprised mostly by former cigarette users. Given this data, we find it very unfortunate that the gains of ecigarette products in switching adult smokers from the harms of continued tobacco use is being disparaged due to the illnesses caused by the use of tainted and illicit marijuana-based e-liquids,” he said. “If any, the growth of illicit trade in the country is indicative of the demand for e-cigarette products. If the government is truly committed to public health, the fair regulation of the category can help protect both vapers and nonsmokers from the dangers of unregulated vaping products. An outright ban of e-cigarettes is unreasonable and dangerous, as it will only force vapers, and even youth, to purchase from unscrupulous traders,” Mata said.

softer way, but for health outcomes, an outright ban would be the best talaga and will definitely improve health outcomes,” he said. The Food and Drug Administration (FDA) and the DOH issued an administrative order regulating vape products early this year. Domingo, who is also the officer in charge of the FDA, said they had actually started registering the products and sellers of vapes. But this was put into a halt when two companies sued DOH and FDA. “We received a temporary injunction from Pasig Regional Trial Court and Manila Regional Trial Court. So, right now, the regulation is on hold and we are fighting it out in Court,” he said. The Department of Finance and the DOH are pushing for the passage of the Package 2 Plus of the Com-

prehensive Tax Reform Program, which would increase excise taxes on alcohol, heated tobacco products, as well as e-cigarettes. The passage of the said measure is seen to help solve the funding gap that the government needs for the Universal Health Care (UHC) Program. When asked how will the outright ban on e-cigarettes affect the funding of UHC, Finance Assistant Secretary Antonio Joselito G. Lambino II said the possible ban would not affect the funding of the program as the projection for revenue collections for e-cigarettes is “relatively small” compared to regular cigarettes. “Pero kung tumaas ang consumption, tataas din ang collection. However, potentially according to the doctors, tataas din ang health cost to address the associated challenges. So

Groups hail latest study showing e-cigs, vapes help smokers quit

OCAL vaping groups lauded the latest study conducted by researchers from University College London (UCL) showing the use of e-cigarettes may help between 50,000 and 70,000 smokers in England quit every year. “The results of the UCL study affirm the findings of Public Health England and many other independent expert studies, which show that e-cigarette use is associated with improved quit smoking success rates and an accelerated drop in smoking rates across the United Kingdom,” said Vishal Daswani, vice president of the Philippine E-Cigarette Industry Association (PECIA). “This latest study adds to the growing body of research supporting e-cigarettes or vapes as a significantly less harmful alternative to cigarettes and a viable smoking cessation aid,” said Mark Czerwin Erana, president of the Vapers PH. The study entitled “Association of prevalence of electronic cigarette use with smoking cessation and cigarette consumption in England: a time series analysis between 2006 and 2017,” was published in the latest issue of the peer-reviewed scientific journal Addiction. It found that as use of e-cigarettes in quit attempts went up from

2011 onward, smoking cessation success rates likewise increased. When the increase in e-cigarettes use plateaued somewhat around 2015, the increase in quit success also levelled off. Based on this data trend, the UCL research team estimated that in 2017, around 50,700 to 69,930 smokers in England had stopped who would otherwise have continued smoking. The UCL research team used data from the Smoking Toolkit Study, a series of monthly cross-sectional household surveys of individuals aged 16 and older in England going back to 2006. Data were based on approximately 1,200 past-year smokers each quarter (total of 50,498 smokers) between 2006 and 2017. The team used time series analysis to assess the association between current use of e-cigarettes and use of e-cigarettes during a quit attempt with quit attempts, overall quit rate, quit success rate and average cigarette consumption. Statistical adjustments were made for seasonality, underlying trends, population level policies, spending on tobacco mass media and affordability of tobacco. The study was funded by Cancer Research UK, the world’s largest independent cancer research charity.

we have to assess all of those factors and be guided by medical research,” Lambino said. For his part, Domingo said banning all the “sin” products will give the government more savings in health-care costs. “Alam po ninyo kasi dito sa mga sin taxes actually, sa tobacco, sa alcohol at saka, iyong nakukuha natin na buwis dito, mas maliit kaysa sa ginagastos natin para gamutin iyong mga nagkakasakit,” he said. The government’s sin tax collection for tobacco is about P70 billion but the government spends P200 billion in curing the sick because of tobacco, he said. “So in fact if all of these products are banned the savings that we will have on health care will be bigger than the taxes that we will get. In the end, hindi tayo lugi,” he said.

FFW throws support behind Dimaampao’s SC appointment

LABOR group on Tuesday expressed its support for the appointment of Court of Appeals Associate Justice Japar Dimaampao as next associate justice of the Supreme Court. In a news statement, Federation of Free Workers (FFW) President Sonny Matula said Dimaampao will provide the needed Muslim perspective at the High Court. “CA Justice Japar B. Dimaampao is one of the most qualified magistrates in our land and his appointment as the second Muslim magistrate to the highest court will strengthen the Moro integration into Philippine society,” Matula said. The labor leader said Dimaampao will be the second Muslim justice since Justice Abdulwahid A. Bidin. He also vouched for Dimaampao’s qualification, whom he described as an “excellent academician” in many law schools and review centers. “A most sought-after bar rev iewer, he [Dimaampao] is a member of the University of the Philippines Law Center, Committee on Bar Examinations in Commercial Law and Taxation,” Matula said. Samuel P. Medenilla

Govt ready for Undas ’19 tourist surge–DOT chief

N anticipation of the surge of local and foreign visitors, Tourism Secretary Bernadette Romulo Puyat has ordered the main and regional offices to extend all assistance that may be needed by visitors. The tourism chief also lauded the initiative of the Department of Transportation in ensuring a seamless travel experience for all with the Oplan Biyaheng Ayos: Undas 2019. With this, May Malasakit Help Desks (MHDs) are now up in all transport hubs all throughout the country. MHDs shall serve as one-stop

shops for passenger assistance in airports, seaports, train stations and land terminals. Services to be provided include handling transport-related inquiries, complaints, and requests for assistance with TNVS/taxi booking; facilitating refund of terminal fees; providing attestation of cause of trip cancellation or delays; delivering emergency medical assistance; and accepting reports of possible security threats, among others. “This nationwide drive bodes we l l i n promot i ng domest ic travel,” Romulo Puyat said.

Domestic trips reached 111 million in 2018 as reported by the Philippine Statistics Authority. This year, there are 21 holidays and 10 long weekends, one of which is the All Saints’ Day on November 1. “ The forthcoming A ll Saints’ Day celebration is one of the long we e k e nd hol id ay s t h at vacation takers and travelers take advantage of. We expect this year’s domestic trips to approximate the 2018 level when there were 20 holidays and 13 long weekends declared,” the secretar y added.

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Govt to field research team at Benham Rise caldera

“I was told that calderas can be very relevant to development of hydro thermal systems. If this is true, then we have before us a special source of renewable energy.” —Esperson

By Samuel P. Medenilla @sam_medenilla

HE government on Wednesday said it seriously considering the deployment of research teams at the newly discovered enormous caldera at the Benham Rise to determine the available natural resources there. During the National Marine Summit 2019 at the Manila Hotel, National Security Adviser Hermogenes C. Esperon Jr. said they have marked the caldera as an area of interest for their exploration in the Philippine Rise located east of Luzon. He said they are looking into how the caldera, which has a 150-kilometer diameter, could provide the country with renewable source of energy. “I was told that calderas can be very relevant to development of hydro thermal systems. If this is true, then we have before us a special source of renewable energy,” Esperon said. He added the government is also interested to search for other valuable metallic ore like copper that could may also be present in the caldera. “That is why need a MSR [marine scientific research] there to now what resources are available there.... We have so much to learn with the discover in the said area,” Esperon said. Esperon said foreign researchers may also be of help in the onsite study of the caldera once they officially lift the ban on their entry in Philippine waters. The ban was imposed last year, Esperon said, after some foreign research ships exploring the Philippine Rise refused to give access to Filipinos on board their vessels and research. “Currently, there are no applications [from foreign researchers] yet,” Esperon said. The existence of the caldera, named Apolaki, became known to the public in the recently published research paper of three scientists, including the New Zealandbased Filipina marine geophysicists Jenny Anne Barretto. In a related development, Esperon said he is still waiting for the outcome of the meeting of the Philippine-China steering before giving out updates on the planned oil and gas exploration in the West Philippine Sea. “It may be concluded today [October 30] or tomorrow [October 31],” Esperon said.

House bill proposes permanent evacuation centers in every 2 or 3 barangays By Jovee Marie N. dela Cruz @joveemarie

S more quakes hit Mindanao and other parts of the country, a partylist group on Wednesday filed a bill establishing permanent evacuation centers in e ver y t wo to three barangays in the country. In House

Bill 5259, House Deputy Minority leader and Bayan Muna Rep. Carlos Isagani Zarate said there shall be created a permanent evacuation center located in the center of every two to three contiguous barangays nationwide to accommodate the population of the contiguous communities in times of disasters. With these earthquakes, Zarate urged the House leadership to fast-track its passage so that victims of calamities would have a secure and safe venue to recover from disasters. “These evacuation centers should be earthquake and disaster resistant so that the victims would be safer and

would not be confined in tent cities which are exposed to the elements,” said Zarate. “This is a departure from the common practice of using schools and multipurpose halls as evacuation centers but are still in danger prone areas. The evacuation centers proposed by HB 5259 should also be located in between baranggays so that more people can reach them at the soonest time and may also serve as the command center for disaster response,” he added. Under the bill, these evacuation centers shall be designed to withstand wind speed of at least 300 kilometers per hour and moder-

ate seismic activity of at least 8.0 magnitude. Evacuation centers should have the following essential facilities and equipment: Cubicles which could house at least five families; restrooms; centralized kitchen and laundry areas; a generator; sufficient water supply; Disaster Risk Reduction Management training facilities; and rainwater catchment system. The bill said evacuation centers should also have a clinic which will house sufficient and necessary medical equipment, as well as a counseling area; offices for Social welfare and Local Disaster Risk Reduction Management Council

personnel; appropriate natural ventilations; stockroom for relief goods; and such other physical provisions guaranteeing humane conditions for evacuees. It said upon completion of the permanent evacuation center, the National Disaster Risk Reduction and Management Council (NDRRMC) shall turn over the same to the respective local government units which shall then have the responsibility over the management, operations and maintenance of their respective permanent evacuation centers. Also, the NDRRMC and the LGUs shall enter a memorandum of agree-

ment to maintain the national-local coordination in ensuring that the standards and qualifications in the establishment and maintenance of the permanent evacuation centers are regularly met. It said the amount of P10 billion is appropriated to the NDRRMC as lead agency for the initial implementation of the proposed law. “The lead agency shall first prioritize areas that are identified as disaster prone. Thereafter, such sum as may be necessary for the establishment of permanent evacuation centers throughout the whole country shall be included in the General Appropriations Act,” the bill added.

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Survey shows 79% of Pinoys favor nuclear power option M

By Lenie Lectura

@llectura

OST Filipinos are in favor of utilizing nuclear power for electricity generation in the country, a survey conducted last May showed. Energy Secretary Alfonso G. Cusi revealed on Wednesday the results of the survey during the handover ceremony of the official Phase 1 mission report of the Integrated Nuclear Infrastructure Review (INIR) Mission to the Department of Energy (DOE). The agency earlier tapped the Social Weather Stations (SWS) to conduct a “perception” survey on nuclear energy in the Philippines. The DOE kept the results of the study private because, according to Cusi, the agency had to inform President Duterte ahead. “As part of informing the people, we have conducted a survey on the acceptability of nuclear with the Filipinos. We have engaged SWS. They made a survey last May. There was a Cabinet meeting last October 5, and I presented it. The report says 79 percent of the Filipinos favor nuclear. The only problem is, ang sinasabi ay not in my own backyard. Ang sinasabi dun sa survey also is 72 percent would follow, or would believe the decision of the President. So, ang pinakama-laking endorser ng nuclear would be President Duterte,” said Cusi during his acceptance speech. Cusi said the President asked him during the Cabinet meeting if a decision should be made immediately. “I said no and that we’ll give you time to really know more. That’s why we’re trying to send information on what nuclear is, objectively.” The proposed executive order on the adoption of national nuclear position to embark on a nuclear power program and a recommendation on an expanded

Nepio (Nuclear Energy Program Implementing Organization) has been submitted to the President. If and when signed, a legal framework must be crafted. The energy chief is hoping that a national policy on nuclear energy will be finalized before the term of Duterte ends. “Maybe the approval and preparation can be done within the administration, but not the nuclear plant,” Cusi said. On December 10, 2018, the INIR Mission Phase 1 was conducted in Manila, where the DOE presented its self-evaluation report, which outlined progress made relative to the 19 nuclear infrastructure requirement issues identified by the International Atomic Energy Agency (IAEA) in their Milestones Approach, a comprehensive and systemic guide for countries considering the introduction of nuclear power. INIRMissions are conducted by the IAEA to assist its member-states in evaluating the status of the 19 infrastructure requirements, to determine the possibility of introducing a safe, secure and sustainable national nuclear program. The Philippines would need to address and satisfy the 19 infrastructure requirements before it would be able to successfully embark on a full nuclear energy program, said the agency. “Our acceptance and concurrence to the Phase 1 Mission Report would require us to submit our Phase 1 National Action Plan, which would be our response to the recommendations made by the INIR Mission with regard to the 19 nuclear power program infrastructure issues.

DENR chief calls for litter-free ‘Undas’ By Jonathan L. Mayuga @jonlmayuga

“We can make the observance of Undas more meaningful if we keep the final resting place of our loved ones litter-free.” —Cimatu

S Filipinos troop to the cemetery to pay homage to their dearly departed in observance of All Saints’ Day and All Souls’ Day, Environment Secretary Roy A. Cimatu urged the public to keep memorial parks and public cemeteries clean and garbage-free. “We can make the observance of Undas more meaningful if we keep the final resting place of our loved ones litter-free,” Cimatu said in a news statement ahead of the weekend holidays. Showing respect for the dead, he said, also means keeping cemeteries clean. “Let us honor our departed loved ones the proper way and that is to leave them with our prayers and not with our trash,” Cimatu said. An estimated 30,000 tons of garbage is generated in the country every day, with 8,000 tons produced in Metro Manila alone. The volume shoots up especially

during annual celebrations, like Christmas and New Year, in this case, Undas which many consider a once-a-year opportunity to reunite with family. “The LGUs [local government units] need to step up their implementation of RA 9003 as people continue to generate huge volumes of garbage during Undas, practically turning graveyards into littering sites,” Cimatu said. At the same time, the environment chief called on administrators of memorial parks and public cemeteries to install properly labeled garbage bins to encourage visitors to segregate their trash. He also urged visitors to bring trash bags to be used for waste segregation, and to place their food in reusable containers instead of buying food packed on plastic and aluminum foils. Visitors were also advised to bring their own water containers or jugs instead of buying water in plastic bottles, and to avoid using plastic utensils. The use of banig or woven mats, and foldable tables and chairs will also limit the use of newspapers and plastic sheets for seating and eating. Cimatu also reminded LGUs of their duty to enforce Republic Act 9003, or the Ecological Solid Waste Management Act of 2000. “LGUs have the primary task of enforcing the provisions of RA 9003,” he pointed out. Under the law, a person caught littering could be fined from P300 to P1,000, or render community service.

To this end, we are set to meet with the IAEA next month to discuss further collaboration efforts. I am personally looking forward to the effective formulation and implementation of this Action Plan, which would have a great impact on our considerations in developing a national nuclear power program,” said Cusi.

The energy chief is looking forward to the day when the country would be able to finally introduce nuclear power as a possible addition to the country’s energy mix. Initially, there will be a study on the viability of small modular nuclear reactors to be deployed in small island provinces. “What we signed with coor-

dinating with Russian nuclear energy agency Rosatom [Russian State Atomic Energy Corp.] for the conduct of a pre-feasibility study. After which, there will be a feasibility study then construction. Right now, we are just in the stage wherein we agreed for the conduct of a pre-feasibility study,” said Cusi.

The modular nuclear reactors will have a capacity anywhere between 20 to 200 megawatts. “Imagine if you use crude, it needs to be replaced immediately once consumed. There will be a logistics nightmare since you want to serve these remote places, but with nuclear as fuel it will last for a year or so,” said Cusi.

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DTI may reimpose mandatory certification on plywood imports

By Elijah Felice E. Rosales

@alyasjah

HE Department of Trade and Industry (DTI) is planning to issue an order reinstating plywood in the list of products under mandatory certification after noticing an influx in imports ever since it got exempted from safety and quality checks in 2015. After meeting with plywood industry stakeholders, the DTI is now eyeing to draft a Department Administrative Order requiring plywood to undergo mandatory certification.

The DAO is in response to the jump in imported plywood from 2015 to 2019, or during the period the product is not tested for quality upon entry in the domestic market.

In a news statement on Wednesday, Trade Secretary Ramon M. Lopez said the objective behind the plan is to ensure safety for the consumers and level playing field for manufacturers. Data from the Bureau of Philippine Standards showed plywood imports for the first half jumped nearly fourfold to 32,758 metric tons, from 8,624 MT during the same period in 2015. A total of 194,826 MT of plywood was imported from July in 2015 to June this year, according to BPS records. “We saw the numbers in plywood. In a three-year period since plywood was removed from the list in 2015, imports have rapidly increased and these are not tested for standard

compliance. It’s good if these products comply with the standards,” Lopez said. “We are adding more products in the mandatory compliance since many of them were released from the list,” he added. “Since then, we saw import surges of these products and, since they are not subjected to mandatory testing, substantial products can come in.” Lopez disclosed substandard plywood can be sold at a cheap price, making it difficult for local manufacturers to compete in the market. This, in turn, could weaken the country’s manufacturing base and widen the trade deficit in the process. As such, the trade chief called on consumer groups to join the DTI in pushing for the mandatory compli-

ance standards to protect buyers and manufacturers from substandards. Under the proposed DAO, plywood products should comply with the BPS’s licensing scheme before they are issued PS Quality or Safety Certification marks for domestic manufacturers and Import Commodity Clearance for importers. Lopez explained the DTI’s decision to put certain products up for mandatory testing is part of the government’s campaign to ensure construction materials in the Philippines are of standard quality and safe to use. He added the regulation of building items is necessary to ensure the integrity of all construction in the country, whether vertical or horizontal, whether government or private.

₧2-B giant clams seized in GenSan 40 mining, gas, oil firms attend COMP’s ‘transparency’ workshop

ORE than 40 companies from mining, oil and gas sectors have participated in a beneficial ownership workshop organized by the Chamber of Mines of the Philippines (COMP) and the Department of Finance (DOF). The activity centered on the new requirement for corporations to declare their beneficial owners as part of the General Information Sheet (GIS) that all domestic corporations are mandated to file annually with the Securities and Exchange Commission (SEC). On July 26, 2019, the SEC issued Memorandum Circular 15, Series 2019 (MC 15) that revised the GIS to include a beneficial ownership declaration form, requiring all registered stock and nonstock domestic corporations to disclose their beneficial owners. The SEC issuance defines beneficial owners as “the natural persons who ultimately own or control or exercise ultimate effective control over a corporation.” It was approved as a policy measure to assist in the antimoney laundering efforts of government. PH-EITI, the government’s transparency initiative for the extractive sector, has likewise

required the reporting of beneficial owners of mining and, oil and gas companies, in line with an international campaign to counter or prevent the use of anonymous shell companies to hide or launder money and conceal potential conflicts of interest within the extractive sector. According to COMP Executive Director Ronald Recidoro, increased transparency in beneficial ownership enhances the confidence of local companies. “There is a global shift toward increased disclosure of beneficial owners, and COMP is committed to taking a lead role in this direction through the PH-EITI. We see the benefits of increased transparency in beneficial ownership—it can help prevent corruption and illicit financial flows, and can increase trust and accountability in the mining sector,” Recidoro said. Finance Assistant Secretary Ma. Teresa Habitan shared the challenges of beneficial ownership. “Beneficial ownership disclosure in the country is an enormous task, but we appreciate its value in curbing illicit financial activities. We are glad that the SEC is with us in this undertaking.” The revised GIS under SEC MC 15 states that corporations must fill out a beneficial information declaration form that asks for nine categories of beneficial owners and their information, including complete name, residential address, nationality, tax identification number, and percentage of ownership or voting rights.

A NATIONAL Bureau of Investigation agent checks the stockpile of taklobo (giant clams) found in a lot in Purok London, Barangay Bawing in General Santos City, on Monday afternoon (October 28, 2019). The confiscated giant clams, estimated at 120,000 tons, were valued at P2 billion. PHOTO CONTRIBUTED BY JUN PULIDO

ENERAL SANTOS CITY—Agents of the National Bureau of Investigation (NBI) seized about P2 billion worth of giant clams, locally known as taklobo in an operation at a seaside village here on Monday. Exzel Hernandez, NBI 11 (Davao) assistant director, said they found a stockpile of giant clams in a property in Purok London, Barangay Bawing, allegedly owned by a trader of the endangered marine species. Hernandez said they earlier received reports from local informants about the presence of piled giant clams in the area. A team from NBI 11, which is based in Davao City, launched the raid at about 3 p.m. on Monday along with augmentation

personnel from the NBI Sarangani/General Santos district office. The operation was backed by personnel of the Philippine Coast Guard station here and the Bureau of Fisheries and Aquatic Resources (BFAR) 12 (Soccsksargen). “We found a huge stockpile of giant clams upon reaching the site and we immediately confiscated them,” Hernandez told reporters, noting that the site was already abandoned when the team arrived and was thus not able to make any arrest. Jose Andrew Abello, BFAR-12 fishing regulation officer, said the recovered clams, estimated at 120,000 tons, reportedly came from various areas. He said these are sold in the area at P2,000 per kilogram and are reportedly used in making jewelry, cosmetic products and even medicines. Abello said the violators could face imprisonment of five years to eight years and a fine of P300,000 to P3 million. The BFAR had declared the catching and collection of giant clams as illegal because they are considered as among the endangered marine species, as listed by the Convention on International Trade in Endangered Species of Wild Fauna and Flora, and set in Fisheries Administrative Order 208. Under Republic Act 10654, or the Philippine Fisheries Code, the “fishing or taking, gathering, selling, purchasing, possessing, transporting, exporting, forwarding or shipping out” of giant clam is deemed unlawful. Hernandez said they were preparing the filing of charges against the owner of the property and others involved in the trading of giant clams, whom he declined to identify. However, Rey Benitez, Barangay Bawing chairman, confirmed in a radio interview that the clams were found in a property owned by the family of Abubakar Palalisan. But he said he had no prior information about the business activities of the Palalisans, whom he described as a big family in the area. “Based on reports from an informant, they are allegedly engaged in the stock buying of taklobo for over a year now,” he said. Benitez acknowledged that some residents previously applied for permits from his office for the trading of giant clams but he turned them down as it is prohibited by the law. PNA

Group urges MGB to halt mining in Mindanao By Jonathan L. Mayuga @jonlmayuga

NETWORK of mining and mining-affected communities on Wednesday urged the Mines and Geosciences Bureau (MGB) to stop all mining activities in Mindanao and conduct a quick assessment of the stability of mine areas following the recent earthquakes that hit the Mindanao region this month. In a news statement, the Alyansa Tigil Mina (ATM) said with the magnitude 6.6 earthquake in Cotabato affecting areas as far as Davao City and Iligan City, the structural and geological stability of mine areas and mine facilities must be established by the MGB to prevent potential disasters. The area surrounding South Cotabato, Davao del Sur and Sultan Kudarat, the group said, are areas of concern because of the earthquakes on October 16 and 29, 2019. This is the same area covered by the Tampakan Copper-Gold Mining Project, owned by Sagittarius Mines Inc. and the Tampakan Mining Group, ATM said. In a case review of the Environmental Impact Statement for the Tampakan Mining Project, environmental and mining experts have previously raised issues about the fault lines that will allegedly impact some of the mine facilities inside the mine area. ATM believes that the MGB should prioritize first a geologic assessment review before promoting additional mining projects in the region. Without this geologic assessment, the Tampakan Mining Project must continue to be suspended. MGB Director Wilfredo Moncano was quoted in media reports last October 25, 2019, that the Tampakan Mining Project is expected to operate in the near future, as Malacañang has ordered the reinstatement of its environmental compliance certificate, or ECC. Former Department of Environment and Natural Resources secretary, the late Gina Lopez, canceled the ECC of the Tampakan Mining Project last 2017, after failing to secure permitting requirements from local government and indigenous peoples. It is also in the interest of the mining companies and their operators that the safety and welfare of both their employees and communities around their mines are assured, the statement read.

Comelec proclaims Bañas-Nograles as new S. Cotabato rep

HE first district of South Cotabato will finally have its representative in Congress after the Commission on Elections (Comelec) proclaimed Shirlyn Bañas-Nograles as its new representative. Bañas-Nograles was proclaimed by the Special Board of Canvassers (SBOC) at the Comelec main office in Intramuros, Manila, on Wednesday. The three-man SBOC has the following members: Chairman Abigail Justine M. Cuaresma-Lilagan; Vice Chairman John Rex D. Laudiangco; SBOC Secretary Frizie Claire C. Calgoy. During the 2019 midterm elections, Bañas-Nograles garnered 194,929 votes. “We hereby proclaim the above named candidate as the duly elected member, House of Representatives of the First Legislative District of South Cotabato-General Santos City,” SBOC proclamation of Bañas-Nograles read. Comelec Commissioner Rowena V. Guanzon said Bañas-Nograles was proclaimed at the Comelec main office instead of the South Cotabato since all the necessary documents are already in Manila. Samuel P. Medenilla

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Low investments biggest ‘drag’ in PHL growth figures this year–economists By Cai U. Ordinario

@caiordinario

HILE the economy is expected to post a growth of above 6 percent in the last two quarters of 2019, economists still believe the country’s gross domestic product (GDP) this year will remain muted at below government targets. Economists said third quarter growth may reach 6 percent or, at best case scenario, at 6.3 percent. The upward trend may continue toward the October-to-December period, which is usually dubbed the strongest quarter annually. Ateneo Center for Economic Research and Development (ACERD) Director Alvin P. Ang told the BusinessMirror the primary drag to the economy this year is low investments. “I expect full year [GDP] to grow 5.7 percent due to lower investments and weak capacities to implement,” Ang told the BusinessMirror.

Ang said the weak performance of exports and imports also played a role in weakening the economy this year. But the “drop in investments” would have a bigger impact on GDP this year, he added. “Growth will be slower and, most likely, disappointing. Drivers will be investment and government spending. ‘Drag’ will be exports especially electronics and agriculture which can be negative,” former Socioeconomic Planning Secretary Romulo L. Neri also said. Data from the Philippine Statistics Authority (PSA) showed exports only posted a growth of 0.1 percent,

while imports contracted 2.8 percent in the January-to-August period. Investments, such as those committed to the Board of Investments (BOI), only posted a growth of 126.12 percent in January to August 2019. However, the P609.04 billion posted in the January-to-August period this year was only 61 percent of the P1-trillion target for the year. Government spending, meanwhile, was pegged at a total of P2.212 trillion, while it raised P2.091 trillion revenues. The fiscal gap of P120.4 billion, a report from CNN Philippines stated, is not even half of the P282-billion deficit target for the year. UnionBank Chief Economist Ruben Carlo O. Asuncion also said public infrastructure spending contracted 11.8 percent to P446 billion as of end-August this year from P505.6 billion last year. It added t hat gover nment spending only grew 6.9 percent in the second quarter of the year compared to 11.9 percent in the same period last year. “We believe growth may continue to pick up in the fourth quarter as the Bangko Sentral’s reduction of

the triple R earlier in the year start to gain traction, more so if publicsector spending manages to sustain its catch up,” BPI Lead Economist Emilio S. Neri Jr., however, said. “If so, the [fourth quarter] 2019 print will be an improvement, but probably not enough to nudge the full year performance toward the 6-percent to 7-percent growth goal,” he added. However, government spending has improved enough for economists such as Nicholas Mapa, senior economist of ING Bank to express confidence that third quarter growth may be better than expected. Mapa said economic growth may have reached 6.3 percent in the Julyto-September period this year. This is mainly due to the recovery from the budget impasse in the half of the year. He said government outlay grew 17 percent in the third quarter, a rebound from the 2.3-percent contraction posted in the second quarter. “Capital formation, which saw a meltdown in the second quarter [-8.5 percent] due to the aftershocks from BSP’s [Bangko Sentral ng Pilipinas] aggressive 2018 rate hikes may finally show early signs of recovery and show marginal growth after BSP’s moved quickly to reverse last year’s tightening cycle,” he added.

The economy will also benefit from low inflation as it boosts household consumption. Neri said this will allow the economy to post a 6-percent growth in the third quarter. He said the economy will also ramp up in overseas Filipino workers remittances growth, as well as double-digit growth in retail loans. On the production side, Neri said the rebound in the services sectors may have outweighed the drag from agriculture and manufacturing. “A slight turnaround in public sector fixed capital spending in

nomic Research Unit (ERU) expects growth to reach 6.1 percent in the third quarter and 6.4 percent in the fourth quarter. This will be driven mainly by domestic consumption. The third quarter Consumer Expectation Survey showed that the overall confidence index grew 4.6 percent, the best result since the fourth quarter of 2017. “Economic growth is expected to have been driven by robust remittances, improving employment, and benign inflation. Improvement in government spending is a criti-

Growth will be slower and, most likely, disappointing. Drivers will be investment and government spending. ‘Drag’ will be exports especially electronics and agriculture which can be negative.”—Neri late Q3 [third quarter] may have cut the drag from the delayed 2019 budget which was largely the reason behind the major collapse in overall capital spending in [second quarter of] 2019.” Meanwhile, UnionBank’s Eco-

cal growth driver. However, ERU still thinks that it will be difficult to reach the set government target,” UnionBank said. The government through the PSA will be releasing the third quarter National Income Accounts next week.

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Solon wants to slap more taxes on Pogos T By Jovee Marie N. dela Cruz

@joveemarie

HE chairman of the House Committee on Ways and Means on Wednesday filed a bill mandating the collection of a 5-percent franchise tax and a 15-percent income tax from Philippine offshore gaming operations (Pogos).

According to Albay Rep. Joey Sarte Salceda, the panel chairman, his proposal will give the government some P55 billion in additional revenue. Currently, Salceda said there are 52 registered Pogo hubs in the country. The Department of Finance (DOF), citing its initial list, said there some 138,000 foreigners working in Pogos. Of the figure, 54,241 have been given alien employment permits, while 83,760 are holding special working permits. Earlier, Salceda said this bill is the best measure “to control the potential wild gyrations” of Pogos in the Philippines. Moreover, Salceda said online gaming facilities have recently proliferated in the country, making it necessary to determine their taxability. “While the Bureau of Internal Revenue [BIR] has issued Revenue Memorandum Circular 102-2017 which clarified the tax treatment for these facilities and associated services, a law that settles questions of taxability, through amendments in the National

“A clear, definitive tax regime for Pogos will be a potent revenue source, as well as a means of placing these facilities under stricter oversight.”—Salceda

Internal Revenue Code, will once and for all address confusion on the taxation of this emerging industry,” he said. “Questions have emerged on whether Pogos do business in the Philippines, with implications on their tax status. As the services are rendered in the Philippines, this bill seeks to definitively answer that Pogos indeed do business in the country,” Salceda added. Salceda, an economist, said his bill also intends to clarify the taxability of Pogo employees. He said their employees’ income shall be subject to tax as Pogos are companies doing business in the Philippines. “A clear, definitive tax regime for Pogos will be a potent revenue source,

as well as a means of placing these facilities under stricter oversight. Failure to faithfully report revenues and expenses will now unequivocally constitute tax evasion,” said Salceda. “Codifying the tax regime for Pogos will provide the government a broader set of levers with which to monitor and oversee the industry and to stabilize the gyrations in tax revenue intake and enforcement,” he added. The bill seeks to amend Title II Chapter I Section 22 of the National Internal Revenue Code of 1997, as amended. Under the bill, the term “offshore gaming licensee” shall refer to the offshore gaming operator, duly licensed and authorized to provide offshore gaming services, which may be: a Philippine-based operator, a duly constituted business enterprise orgnanized in the Philippines and offshore-based operator, a duly consituted business enterprse organized in any foreign country, who will engage the services of the Pagcor-accredited service provider or support provider or any

special economic zone authority and tourism authority. The bill indicated that an alien, who is a permanent resident of a foreign country and who is employed and assigned in the Philippine by an offshore gaming licensee, shall pay a tax of 15 percent of the salaries, wages, annuities, compensation, remuneration and other emoluments, such as honoraria and allowances received from such licensee. “In computing the tax provided in this [proposal], P250,000 shall be the minimum gross annual income,” the measure read. Also, any income earned from all other sources within the Philippines by the alien employees shall be subject to the pertinent income tax. The measure calls for the slapping of a 5-percent tax on all offshore gaming companies on gross receipts derived from gaming operation covered by the law granting the franchise. Last year, Salceda said Pogos paid P300 million in franchise tax to Pagcor and P378 million in employee withholding tax.

Iloilo, Cebu airports among Asia’s best—poll By Recto Mercene

@rectomercene

WEB SITE devoted to grading airports that offers the most accommodating spots, especially for the backpackers, has included two of the Philippines’s airports as among the best in Asia this year. Making it in the sleepinginairports.net’s list of best airports in Asia for 2019 are the Iloilo International Airport and Mactan-Cebu International Airport (MCIA). Topping the list is Singapore’s Changi Airport. Iloilo airport, at 18th spot, is operated by the Civil Aviation Authority of the Philippines, while MCIA at the 16th spot, is operated by a private conglomerate. Completing the Best Airport in Asia for 2019 list are Seoul Incheon Airport, Tokyo Narita Airport, Osaka Kansai Airport, Taipei Taoyuan Airport, Hong Kong Airport, Kuala Lumpur Airport, New Delhi Airport, Jakarta Airport, Tokyo Haneda Airport, Mumbai Airport, Bangkok Suvarnabhumi Airport, Bangalore Airport, Ho Chi Minh City Tan Son Nhat Airport, Hyderabad Airport, Da Nang Airport, Islamabad Airport and Kunming Airport. Changi Airport also topped the overall Best Airport list, followed by Seoul Incheon Airport, Helsinki

Airport, Tokyo Narita International Airport, Osaka Kansai International Airport, Taipei Taoyuan International Airport, Vancouver International Airport, Munich International Airport, Hong Kong International Airport and Amsterdam Schiphol Airport. Making it in the worst airport’s list are Jeddah King Abdulaziz International Airport (Saudi Arabia), New York City LaGuardia Airport (United States), London Stansted

Airport (England), Juba International Airport (Sudan), Santorini International Airport (Greece), Cairo International Airport (Egypt), Addis Ababa Bole International Airport (Ethiopia), Dhaka Hazrat Shahjalal International A ir port (Bangladesh), Murtala Muhammed (Lagos) International Airport (Nigeria) and London Luton Airport (England). The web site, founded in 1996

ranks the best and worst airports from an annual survey and airport reviews submitted by readers rating their airport experiences. In the annual survey, travelers are asked to rate their airport experiences based on factors, such as comfort, services, facilities and things to do, food options, immigration/ security, customer service, navigation and ease of transit, cleanliness and “sleepability.”

‘Review privatization of utilities’ Rice self-sufficiency level fell By Samuel P. Medenilla

@sam_medenilla

LABOR group on Wednesday called on Congress the review the impact of decades of privatization of public utilities on consumers and national development. Partido Manggagawa (PM) Spokesman Wilson Fortaleza said lawmakers should initiative the assessment against the backdrop of current developments. “It is time for Congress to conduct a summation of our privatization experience, draw hard lessons from it, and bind the President to a judicious exercise of emergency powers when needed,” said Fortaleza. “We will not challenge our lawmakers to repent. But they may consider this demand for renationalization as institutional redemption to rectify decades of injustice,” he added. He said the burden of review lies with Congress since it legislated for the privatization of the Metropolitan Water and Sewerage System (MWSS) in 1997, oil deregulation in 1998 and power privatization in 2001. PM said the allowing the private sector to take over the said utilities did not improve its delivery to customers. “Some 10 million Filipinos are still without access to electricity, while nearly 7 million out of 105 million Filipinos rely on unimproved,

unsafe and unsustainable water sources, and more than 24 million lack access to improved sanitation,” said Fortaleza, citing news reports. PM issued the statement after President Duterte said he may utilize his emergency power to take over public utility to address the water crisis in Metro Manila. Fortaleza said his group will back Duterte’s pronouncement. The President made the pronouncement after water concessionaires Maynilad and Manila Water Co. announced rotational interruptions last week due to the low water levels at Angat and Ipo dams. Presidential Spokesman and Chief Presidential Legal Counsel Salvador S. Panelo described the possible government takeover of the water concessionaires as legal, but stressed that there should first be a declaration of a national emergency. The grant of emergency powers to the President for the purpose of addressing the water crisis, according to Sen. Panfilo Lacson, is feasible. Article XII Section 17 of the 1987 Constitution states that: “In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately owned public utility or business affected with public interest.

to 8-year low in 2018–report By Jasper Emmanuel Y. Arcalas

@jearcalas

HE country’s rice self-sufficiency ratio (SSR) fell to an eight-year low in 2018, as more imports flowed into the Philippines to plug the shortfall in domestic production, according to the Philippine Statistics Authority (PSA). The PSA said in its report published on Wednesday that the rice SSR of the Philippines fell to 86.17 percent last year, from 93.44 percent recorded in 2017. “This means that 86.17 percent of the total supply of rice was sourced from the domestic production,” the PSA report read. The PSA said rice SSR declined last year as domestic output shrank while the supply of imports went up. The country’s corn SSR also fell to an all-time low last year, according to the PSA. In 2018, the corn SSR was at 88.43 percent, lower than the 94.34 percent in 2017. “The drop in the SSRs of both commodities was attributed to the decreasing local production while there was a large increase in importation,” the PSA said. The country’s palay output last year slid to 19.066 million metric tons from 19.276 MMT in 2017, PSA data showed. Also, total corn production in 2018 contracted by 1.8 percent to 7.771 MMT from the 2017 record of 7.914 MMT. The PSA defines SSR as “the magnitude of production in relation to domestic utilization.” The SSR shows the extent to which a country’s supply of commodities is derived from its own domestic production. “A ratio of less than 100 percent indicates inadequacy of food production to cope with the demand of the population; equal to 100 percent indicates that food production capacity of the sector is just enough to support the food needs of the population; ratio of greater than 100 percent indicates that domestic production is more than enough to support the domestic requirements,” the PSA said. “The higher the ratio, the greater the self-sufficiency,” it added. Due to the decline in local production, the country’s import dependency ratio for rice and corn rose last year. The IDR, the PSA said, “indicates the extent to which a country’s supply of commodities came from imports.” “A high ratio implies greater dependency on importation,” it said. The country’s rice IDR rose to 13.83 percent from its 2017 record of 6.56 percent, the PSA said. “This indicates that 13.83 percent of the country’s supply of rice came from imports.” “Likewise, importation of corn went up as it recorded an IDR of 11.57 percent in 2018,” it added.

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Thursday, October 31, 2019

Pre- and post-rice trade lib law, b R By The BusinessMirror Broader Look Team

IGHT from the get-go, experts had projected the opening up of the Philippine rice market as the gateway to a better life for Filipinos: lower staple prices leading to slower inflation and lesser hunger. Indeed, the liberalization of the country’s rice industry allowed the unabated entry of cheaper imported staple. As figures released by the Bureau of Plant Industry (BPI) showed, about 1.614 million metric tons (MMT) of rice from seven countries entered the Philippine market, from March 5, when Republic Act 11203 (the rice trade liberalization law) took effect, to October 4. The BPI data showed over 208 rice importers were behind the volume of imports. Surprisingly, more than half of these are farmermembers of cooperatives or irrigators’ associations. The BPI data also revealed that, as of August 30, over 120 farmers’ cooperatives and associations applied to import rice since RA 11203, or the rice trade liberalization law, took effect. They accounted for 51 percent (about 1.427 MMT) of the 2.776 MMT applied volume for rice imports, BPI data showed. The BPI approved all of these applications with sanitary and phytosanitary import clearances (SPS-IC): the last piece of paper that allowed these groups to proceed with their importation.

From NFA scheme o dummy games

BUT one may wonder: why are Filipino rice farmers importing rice? Industry sources told the BusinessMirror this is not the first time rice farmers did. In fact, they have been doing it for years now, even with the pre-RA 11203 era. Mario Pilapil (not his real name), a long-time farmer-leader privy to the dealings of farmers cooperatives, told the BusinessMirror that importation of rice has been a regular “sideline” business for these cooperatives. Pilapil explained that these farmer groups learned the ropes of “importation” through the importation programs of the National Food Authority (NFA), the government’s grain trade overseer. Since the inception of the NFA’s “farmers-as-importers,” or FAI, program more than a decade ago, cooperatives were introduced to the business of importation, including its good side and its bad side, according to Pilapil. However, he said that big players started to prey on cooperatives when the country’s minimum access volume (MAV) for rice imports rose to 805,200 MT in recent years. The NFA’s cap on the allowable volume that every eligible importer could bring into the country gave birth to the dummy scheme, he added. Pilapil said a private trader— for example, one with a cap of 50,000 MT—connives with farmers organizations to corner additional volumes provided in the importation program. Farmers’ organizations, in previous NFA importation programs, were allowed to import a maximum of 5,000 MT.

Unscrupulous traders

PILAPIL said it was by tapping the allowed importation capacity of farmers’ groups that big rice industry players secured more control of the stocks coming into the country. Hence, this allowed these big players to easily calibrate the release of the staple in the market to maintain high profits, he added. Further, unscrupulous rice traders undertake such scheme to

take advantage of privileges provided to importer-cooperatives, such as leniency in documentary requirements and even tax exemptions, he added. These rice traders also serve as the financiers of the cooperatives so the latter can comply with government requirements for rice importation, such as bank statements, proof of warehouse and exporter networks. “The NFA is aware of this scheme but cannot do anything about it because there was no sanction for selling your import rights or permits that time,” Pilapil told the BusinessMirror. “It’s technically legal. They didn’t see anything illegal about it. You applied for the quota and sold your rights.” He further revealed that the dummy scheme cuts across the country; there is even a Mindanao cohort that engages cooperatives based in that island-group for such business transactions. To date, that group is still alive and working, Pilapil said. “Imagine, some of the cooperatives in Mindanao are in the mountains—way outside the city proper—and yet they are able to import,” he said. NFA documents confirmed that almost all of the rice-importing farmers’ cooperatives today were also participants in the agency’s MAV programs in the past years.

Source of income

THE BusinessMirror found out that government regulators were well aware, and even foresaw, that such unscrupulous scheme would be the inevitable fruit of the original NFA scheme. Former Agriculture Undersecretary Segfredo R. Serrano told the BusinessMirror the NFA created the FAI program so that rice farmers would have an alternative source of income in times of production shortfall. This was especially during the time that the country was way below self-sufficiency. Serrano explained during an interview at his home in Victoria, Laguna, that the FAI program had two key goals. The first is to allow farmers to engage in importation and earn additional money, which they could invest for competitiveness. The second goal was to expose farmers to the international market and, hopefully, appreciate price signals. “The intention of the program was to lessen the prejudice of importation to the principal sector that will be affected by the importation, which are the farmers,” he said. “Technically, the program also allows the farmers to exercise restraint and control over additional imported volumes,” Serrano added. “So if they see the market is being flooded with rice, they can choose not to import, hence, stabilizing prices.”

Inevitable monster

FORMER NFA Administrator Gregorio Tan Jr. told the BusinessMirror they had foreseen that farmers participating in the FAI program would just eventually sell their rights to bigger players since they don’t have the financial and operational capabilities. But, Tan pointed out, there was another possibility: farmers entering into joint-venture agreements with bigger players. “These possibilities were recognized. And these were accepted bottom lines,” Tan explained. “Since the farmers would be

THIS June 19, 2017, file photo shows an assortment of commercial rice on sale at a grocery store in Antipolo City. JUNPINZON | DREAMSTIME.COM

the ones adversely affected by rice importation, then why not give them the opportunity to make some money out of it? Whether selling rights or entering into joint venture,” he added. According to Tan, who headed the NFA from 2004 to 2006, they wanted the farmers to become the “gatekeepers” of importation so that they could influence the market in terms of supply and stabilize farm-gate prices.

No harm, no foul

THE issue of cooperatives as dummies were not a big issue back then, since the FAI was only a new program and the players were fewer compared to today, Tan said. Further, he said the purpose of the importation, which is to provide additional supply for the domestic market, wasn’t defeated— whether these be by legitimate cooperatives or by dummies. Tan said there were also penalties for unused import allocation since it would jeopardize the whole program and put the country’s supply at risk. “And maybe for these cooperatives, if there is no harm, then [there’s] no foul,” he said. “But now, I don’t see any reason why farmers would be the ones importing since it is an open market.” Serrano said connivance between unscrupulous rice traders and farmers cooperatives was inevitable. “Unfortunately, the issuances did not contain safeguards for abuse or misrepresentation. And this is a perennial problem in rulemaking,” he said. “When you provide for special privilege or flexibility for something, a positive action, in the absence of safeguards, leads to a lot of abuses,” he added.

Entrepreneurship

UNIVERSITY of Asia and the Pacific (UAP) Center for Food and Agribusiness Senior Management Specialist Senen U. Reyes explained that the aim of the FAI was to pave the way for farmers to become “agri-entrepreneurs.” Through this program, farmers organizations (FOs), multipurpose cooperatives and irrigators’ associations participated in the NFA’s out-quota rice importation program for the private sector. Reyes, who occupied various positions at the NFA prior to joining the academe, echoed Serrano’s view. He explained that, at that time, the government wanted to help farmers directly access the international market and give them exposure on the rice economy through importation. The primary loophole in the

program is the farmer organizations’ capacity or capability to import. Reyes said these groups, along with cooperatives, “may not have the financial capability and administrative skills to comply with the requirements.” “This flaw may have been taken advantage of by some private sectors who ‘assisted’ farmers organizations in qualifying for import permits,” Reyes told the BusinessMirror. He said there are anecdotes that some of these organizations are being given, “and became content with, a few pesos as fee per bag or lumpsum amount offered by private financiers.” Reyes explained there are two reasons why farmers’ organizations, multipurpose cooperatives and irrigators’ associations continued to import. For one, they may have already reached a certain level of maturity that allowed them to compete. For another, “the usual financiers/importers” continued to act as their backers. In return, Reyes said, these financiers are able to get the supply they need while hiding behind the tax perks enjoyed by the cooperatives.

Sans surges, smuggling

REYES said the total imports of cooperatives ranged from 50 tons to as much as 31,479 tons as of August 30, based on data from the BPI. He reckoned that based on their NFA import permits of 260 tons at $400 per ton, freight on board (FOB), this could mean at

least P5.2 million in cost for 5,200 bags of rice. This does not yet include insurance, freight, tariff, trucking and storage costs. Considering the costs of importation, Reyes said it would be imperative for the government to validate the credentials and capabilities of farmers’ organizations, multipurpose cooperatives and irrigators’ associations, in order to distinguish between those who are legitimate and those who do their business without suspicion. “It is unfortunate that farmers’ organizations and co-ops are being used, and this practice must be stopped. This is not something new. However, with the RTL [rice trade liberalization], it may not make sense to perpetuate this practice as importation is open to all interested parties without import volume and timing restrictions,” Reyes said. “Hopefully when the situation has normalized, import volume and price movements will be driven by supply and demand sans surges and smuggling.”

Spawned an industry

MONETARY Board Member Bruce Tolentino agrees with Reyes, saying that instead of empowering farmers, the system that allowed cooperatives to import rice “spawned an industry where the licenses were sold.” Tolentino said this was one of the reasons cited to justify the removal of NFA’s regulatory functions under the RTL law. He said

the NFA’s powers to grant licenses is one of the issues why the rice sector has “distorted” the rice trade. Unfortunately, these permits issued by NFA continue to be in effect. Prior to the passage of the RTL in January 2019, Tolentino, who used to be the Agriculture Undersecretary for Policy and Planning during the term of Finance Secretary Carlos G. Dominguez at the helm of the Department of Agriculture, said there were already licenses and permits issued and some have not been used. And these are still being honored by the Bureau of Customs. Nonetheless, he said, the numbers of these permits have already declined. As opposed to the sanitary and phytosanitary import clearances, Tolentino said, the primary goal was to ensure health and safety. The clearance did not grant any volume or attempt to impose price controls on rice imports. Tolentino said under an RTL regime, the SPSIC should not only be strict enough to protect Filipinos, but should also not become a barrier to trade. Otherwise, this would open the Philippines to trade disputes and complaints from its main trading partners at the World Trade Organization (WTO).

Practice continued

A PERSON privy to matters concerning rice importation among local cooperatives explained that many of these groups do not have the capacity to import and were

aderLook

sMirror

Editor: Dennis D. Estopace | Thursday, October 31, 2019

A11

big traders gaming farmer groups IMPORTER

APPLIED VOLUME (MT)

Farmers Association A

2,080

Farmers Association B

VALUE (in pesos)

37.856 million

ARRIVED VOLUME (MT)

VALUE (in pesos)

CASH BALANCE AT END OF YEAR (in pesos)

2,080 37.856 million

1,500

37,500 682.500 million

REVENUE, PROFIT OR GROSS INCOME

NET INCOME

REFERENCE YEAR (cash balance, revenue, net income)

6,000

26,461.16

2018 9,239.30

Irrigators Association A

8,000

145.6 million

2,000

36.4 million

1,300

16,000

2018

Irrigators Association B

26,860

48.89 million

16,280

296.3 million

488,653

8,500

2017

Irrigators Association C

20,125

366.28 million

16,510 300.48 million

1,300

1,291,177,225

7,595,831

2018

Irrigators Association D

44,880

816.82 million

11,920 216.94 million

56,708.99

367,415,406.03

3,886,766.01

2018

3,900

70.98 million

23.35 million

31,015,830

84,379,094

2018

73,710

1.34 billion

48,360 880.15 million

117,790,286.12

16,000

800

2018

82,628.60

1.5 billion

45,418 826.61 million

28,970,240

10,000

Scrap metal firm Davao-based Firm NCR-based Firm

1,227.90

2018

Importation volume (applied and arrived) was sourced from Bureau of Plant Industry Financial figures of importers were based on their papers submitted to the Securities and Exchange Commission Value of imports was estimated by the BusinessMirror at a conservative price of $350 per metric ton

However, there has never been any evidence proving this claim. Balisacan said it is possible that the transaction between cooperatives, rice millers and other farmers’ organizations was purely a “business deal,” which was legal.

Required tariffs

just “dummies” for Metro Manilabased traders. Renato Cruz, not his real name, said there are over 20 cooperatives who import rice in his province. However, many of them not only lack the funds to import large volumes of rice, but also do not own warehouses that can be used to store their purchases. Nonetheless, such practice is deemed within the law. Cruz said that in order to “purchase” rice, they declare their warehouses as “leased” properties and not part of the assets of the cooperative. This “legality” allowed these cooperatives to import rice under the MAV importation of the NFA. The farmer explained to the BusinessMirror that importing rice at the time of the MAV allowed cooperatives to earn substantially. Cruz further said that big traders in Metro Manila pay these farmers’ organizations, cooperatives and rice millers to earn P50 per bag of imported rice. The liberalization of the rice trade limited their earnings to around P3 per bag to P5 per bag. Despite the 90-percent to 94-percent decline in the payments they receive, Cruz said farmers continued the practice. It’s better than nothing, he said. At least under this system, they are able to make P100,000. Before, under the MAV, they were able to earn millions from Manila traders, Cruz added.

The co-ops’ ironic role

ACCORDING to Cruz, the cooperatives did not even know who these traders are simply because they also operated through middlemen. He said he has alerted the cooperatives for their role in the steep decline in rice prices: the very reason for the decline in their primary income, which is rice farming. Cruz said traders are just using cooperatives because these groups enjoy privileges granted to them by government such as tax exemptions. He said no less than the governor begged cooperatives to stop importing any more rice. Cruz added that cooperatives are also submitting legal documents

to financiers who use these to continue enjoying the privileges meant for cooperatives. He said officials of cooperatives also issue these financiers a Special Power of Attorney. Cruz said the cooperatives apparently only saw the income they could derive from such a scheme— and for them, whatever income that is, is enough, regardless of how much those big players who are using them are actually raking in. After all, he said, many of the co-ops were able to pay bank loans, build offices and even warehouses. While he does not believe that the cooperatives bought farm equipment such as tractors, Cruz said he also knew of some officials and members of cooperatives who were able to buy new cars. Further, Cruz said that despite the tons of imported rice being imported in the name of the cooperatives, only a small volume reach the province. Majority of their rice still come from local production.

Permit to import

ANOTHER source privy to rice importation, Ricardo Magsaysay (not his real name), said cooperatives have no financial capacity to import rice. He even received an offer to buy imported palay at P70 per sack to P100 per sack. Magsaysay said currently there is an “over-inventory of rice” due to the decision of the DA to grant cooperatives a permit to import prior to the passage of the RTL law. While this has translated to lower rice prices, many wholesalers are also reaping the benefits of the RTL. In his capacity as a businessman, he was only able to import a small amount of rice because he did not want to contend with low rice prices when it comes to commercial rice due to the “over-inventory of rice.” Meanwhile, a farmer in Luzon who requested anonymity said that the RTL and big-ticket infrastructure projects being built in his province are displacing farmers and robbing them of a decent livelihood. Arturo Pagkalinawan (not his real name) said that, with the harvest already small as it is and the

price of unmilled rice very low, many farmers may eventually resort to other means to earn their keep. Further, Pagkalinawan said farmers in his province are still unable to sell their palay or unmilled rice to traders and the government at this time. This was also a strong argument against any plans of the cooperatives in the province to import rice. This will be the cause of the “death” of their own local rice produce. Pagkalinawan said the prevailing system in their province still involves traders buying palay from farmers. These traders are the ones who bring these products to the market. The problem now is that under the RTL, what the government did was to encourage the proliferation of middlemen, instead of removing them from the equation. “For us farmers, there is no guarantee that we can still continue planting rice during the dry season because even in the wet season, we are not given any water allocation,” Pagkalinawan said in Filipino.

Edged out

PHILIPPINE Competition Commission (PCC) Chairman Arsenio M. Balisacan told the BusinessMirror there will likely be a large variation in the capacity of cooperatives, millers and other farmers organizations. This will affect their ability to import rice. Rice importation, he said, has a “thin market” where there are only a few players and, more often than not, volumes matter. The bigger player will always have an advantage because it can bring down retail costs compared to smaller players who import in smaller quantities. Balisacan, who was also an Agriculture Undersecretary for Policy and Planning prior to becoming head of the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca) and Socioeconomic Planning Secretary, said evidence is key to proving the capacity and capability of these cooperatives and other organizations to import rice. However, he said he has already heard allegations that some cooperatives are being used as dummies.

IT could also not be a competition issue outright because evidence should be established that these business deals actually had a hand in reducing competition in a sector, in this case, the rice sector. Asked whether some cooperatives could be dummies, Balisacan said in a mix of Filipino and English: “Yeah, well, we’ve heard that before but evidence is [something] I don’t have, not that I ask [for it] but it is possible that they were able to get an import quota and, since they are small, they don’t have the capacity to renew it themselves,” he said. “So they subcontract it to large firms who already are in business.” In general, Balisacan said the RTL law aims to promote more competition where consumers and even producers benefit. As long as firms have the capability to pay the required tariffs, they can import rice from anywhere in the world. The law also serves as a deterrent to firms or even cooperatives who intend to behave like a cartel or become a dominant player. “Now, anybody [who wants] to import could import provided that the tariffs are paid. And that import could serve as competitive pressure on anyone who wants to behave like a cartel or a dominant player.”

Overlords

RELIABLE government sources told the BusinessMirror that “four big groups” are into the dummy scheme of trading rice. These are in Pangasinan, Bulacan, Pampanga and Mindoro. BPI data analyzed by the BusinessMirror showed that Bulacan leads all provinces in terms of applied importation volume with 603,012.25 MT. This was followed by Pampanga at 274,388.83 MT, Tarlac at 127,075 MT, Occidental Mindoro at 104,703 MT, and Pangasinan at 69,830 MT. An import application by a farmer cooperative ranges from 50 MT to almost 70,000 MT. In terms of value, the BusinessMirror estimated this would be worth from P910,000 to P1.274 billion at a conservative average of $350 per MT. Serrano said it is not surprising that rice-producing provinces are also the ones leading the list of rice importers since farmers in these areas are already well-organized. “Farmers’ cooperatives are strong in production areas because they are the ones that are able to avail themselves of government assistance. In terms of resource and influence endowments, they are the ones that have the capability and power through their overlords,” he said.

Face sanctions

IF there are lapses in the system, particularly on how cooperatives conduct their daily routines, Tolentino said, this should be looked into and regulated by the Cooperative

Development Authority (CDA). Cruz said the local CDA in his province also threatened to impose sanctions on erring cooperatives, especially if they allow themselves to be used by unknown financiers. He said the CDA warned that if the cooperatives are found to have misdeclared their reports, they can be sanctioned. In July, the CDA warned dulyregistered cooperatives to take “extreme precautionary measures” in dealing with unscrupulous traders that are into illegal rice trade operations. The CDA added that cooperatives that allow unscrupulous traders to use their documents for illegal rice importation or smuggling shall face sanctions under pertinent laws. “All cooperatives engaging in rice importation are warned to take extreme precautionary measures not to be used by unscrupulous traders/importers in rice smuggling/illegal importation and other entities/persons to use cooperative documents such as Certificate of Registration and Permits including other acts not within the provision of RA 9520,” the CDA said in its public notice. “Please be reminded that such violation of law shall neither be tolerated nor condoned. The public is hereby advised to report directly any knowledge pertaining thereto to the [CDA] for appropriate action,” it added.

Taxes, exemptions

BASED on Article 8 of the RA 9520, “No cooperative or method or act thereof which complies with this Code shall be deemed a conspiracy or combination in restraint of trade or an illegal monopoly, or an attempt to lessen competition or fix prices arbitrarily in violation of any laws of the Philippines.” In terms of taxes and exemptions, RA 9520 provides that registered cooperatives that “do not transact any business with nonmembers or the general public shall not be subject to any taxes and fees imposed under the internal revenue laws and other tax laws.” For cooperatives that do transact with non-members and the general public, RA 9520 provides that if cooperatives were able to accumulate “reserves and undivided net savings” of under P10 million, they will not be taxed. But if they have, they will be charged with income taxes, value-added tax and other taxes stated in the law. However, cooperatives shall also be exempt from paying “all court and sheriff’s fees payable to the Philippine government for and in connection with all actions brought under this Code or where such actions is brought by the Authority before the court, to enforce the payment of obligations contracted in favor of the cooperative.”

Heavy price

SERRANO pointed out that it would be more difficult for the government to police the rice trade today since the industry has been deregulated. For one, the NFA has been stripped of its powers to inspect warehouses and revoke licenses of erring rice industry stakeholders. Serrano said the government, particularly the BPI, should do a detailed verification of the capacity of rice importers to ensure they are really a viable business for such venture. “There should be an investigation over the track records of these cooperatives. Check for indicators of operational capabilities such as capitalization,” he said. “If there is a disjoint between their capitalization and capacity, which could be proven by their books, they should be excluded from the importation,” he added. Sen. Francis Pangilinan, a former Presidential Adviser on Food Security and Agricultural Mod-

ernization, said the government should exert more effort in enforcing its police powers to weed out dummy cooperatives. Pangilinan said the government has all the tools and authority to conduct warehouse inspections and check the profile of current rice importers.

Enforce the law

PANGILINAN is recommending that government should “go after the dummies.” “Enforce the law against those who are taking advantage of the law, going around the law. Manipulation has corresponding penalties especially those who do profiteering,” he told the BusinessMirror “Revoke their licenses and business permits. File charges against them.” Pangilinan recalled the time when the government pressed charges against dummy cooperatives and traders in 2015 due to unscrupulous rice trade dealings. The NFA was then under Pangilinan’s office and attached to the Office of the President. In 2015, the National Bureau of Investigation discovered that some farmers’ cooperatives participating in the NFA rice importation acted as dummies for unscrupulous rice traders. The malpractice proliferated as traders wanted to corner bulk of the import volume and take advantage of cooperatives’ privileges such as tax exemption. Further, the malpractice led to the hoarding of rice stocks since the traders were in control of the imported volume.

Opposed to safeguards

DOCUMENTS obtained by the BusinessMirror showed that some farmers’ cooperatives, which are rice importers as well, opposed the move of the DA to impose safeguard duties on imports last month. During the DA’s preliminary safeguards investigation, eight entities—one rice miller and seven cooperatives—submitted a templated position paper expressing their opposition to the trade remedy. All of the eight position papers were submitted on the same day, September 24, and contained exactly the same comments. Five of the cooperatives are located in Pampanga, while one is in Mindoro and the other one in Bulacan. The rice miller is registered in Metro Manila. Government sources told the BusinessMirror they were surprised when they received the position papers, with some saying it was “disheartening” to some extent. “Why are these farmers’ cooperatives complaining about a measure that is aimed to protect them? So, the decline in farm-gate prices, due to higher imports, is a self-inflicted injury?” the person privy to the matter said.

Registered as importer

IN their position papers, the cooperatives and the rice miller argued that the imposition of safeguard duties would lead to “tightening of the supply of rice and spiraling of the prices of rice.” Further, they argued that it would “encourage smuggling, as others declare rice as other commodity and with government losing billions of pesos in customs revenues.” The BusinessMirror crosschecked the eight entities with publicly available BPI data and found out that all of them were registered with the agency as rice importers. In fact, the seven cooperatives alone applied for a total import volume of 94,308.33 MT, which has an estimated value of at least $33 million (or over P1.7 billion) from March 5 to August 30. As of October 4, BPI data showed that the seven cooperatives have imported already nearly 85,000 MT of rice, which is estimated to be worth $29.75 million or P1.547 billion.

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BusinessMirror

A12 Thursday, October 31, 2019

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PHL-Korea officials break ground for $6.3-M Mold Technology Support Center in Cavite By Jonathan L. Mayuga

@jonlmayuga

ECRETARY Fortunato de la Peña of the Department of Science and Technology (DOST) and Ambassador Han Dong-man on Wednesday led the ground-breaking ceremony of the $6.3-million Mold Technology Support Center (MTSC) in Barangay Bacao, General Trias, Cavite. Funded by the Republic of Korea via Official Development Assistance (ODA), the four-year program’s first phase involves the construction of a building that will house state-of-the-art equipment to be used in training and enhancing the skills of Filipinos in the latest die and mold technology. The groundbreaking is an offshoot of a memorandum of agreement signed between the Philippines, Republic of Korea and other project partners, which include the Korea Institute for Advancement of Technology (Kiat) and Korea Association of Machinery Industry (Koami). Also present during the event were Gi Tae Shim of Kiat, Hyeong Ki Choi, CEO and Executive Vice President of Koami, along with Philippine Economic Zone Authority (Peza) Director General Charito B. Plaza, Board of Investments (BOI) Director Evariste M. Cagatan and PDMA Inc President Hector U. Villanueva. The construction of the MTSC building is expected to be completed by June next year. By the end of next year, it is expected to start providing skills training in die and mold by that time, according to the DOST’s Metals Industry Research and Development Center (MIRDC), one of the MTSC project partners. The Korean ambassador to the Philippines, in his brief message, said the ODA grant is in response to the Philippine government’s appeal for support when President Duterte visited South Korea last year and again early this year. Funding the project through ODA, he said, is a good investment for Korea, noting that the Philippines has been a host to a good number of Korean companies. “We have more than 2,000 Korean companies here in the Philippines,” he said. He said the Republic of Korea is encouraging more Korean companies to

invest while encouraging those that are already in the Philippines to expand business operations. The Korean envoy said the Philippines and Korean companies can benefit from working together, which could help boost the economies of the Philippines and the Republic of Korea. More important, he said undertaking the project, particularly in Cavite, is Korea’s way of strengthening economic cooperation and relationship with the Philippines. In his speech, de la Peña said every year, the MIRDC conducts a survey of the metals, engineering and allied industries. “Through these surveys, we are able to know what the local companies are facing—both challenges and successes. But admittedly, there are certain concerns that seem to pin our local companies down,” he said. According to the DOST chief, a survey of the mold companies conducted by the DOST-MIRDC, in partnership with the Philippine Die and Mold Association, as part of the prefeasibility study of the MTSC project, showed the mold companies’ need for government intervention in terms of keeping a stable supply of trained manpower, technology upgrading and penetrating existing—and identifying potential— supply chain networks. “The MTSC project was designed with these requirements of the mold industry in mind,” he said. De la Peña said the Duterte administration does not limit its efforts to pursuing its vision but takes an active part in contributing to the achievement of the Sustainable Development Goals (SDGs), particularly SGD 9—Industry, Innovation, and Infrastructure, which aim to champion the advancement of the manufacturing sector—one of them is most important driver of economic development and employment. “When the MTSC facility is into

full-swing operations, we will see drastic changes in our ability to compete in the global market and in our ability to make lives better for many of our fellow Filipinos,” he said. According to de la Peña, the DOST is implementing four of the 10-point agenda of Duterte: to increase competitiveness and the ease of doing business, promote rural and value chain development, invest in human capital development, and promote science and technology to enhance innovation. “Through the MTSC facility, the local mold industry will have the opportunity to develop the most needed human resources, to contribute to the advancement of Philippine manufacturing, and contribute to the industrial cooperation between the Philippines and the Republic of Korea,” he said. Interviewed by reporters, de la Peña said the die and mold industry should take advantage of the establishment of the MTSC. “We need more skilled workers for the die and mod industry. We should have done this a long time ago,” he said. He thanked the Republic of Korea for the ODA and encouraged project partners to work together to sustain the gains of the partnership. Villanueva, president of PDMA Inc. which will run and manage the MTSC, said the training center will be a big boost to the entire manufacturing sector. “Without the die and mold industry, the manufacturing industry is nothing. The die and mold industry is the backbone of the manufacturing sector,” he said. According to Villanueva, the MTSC is the second training center to be established. The first was in Bicutan, Taguig, which is being managed by the MIRDC. He said with Korea’s funding support, the country’s die and mold industry will be on a par with other countries, like Korea itself, which is leading in terms of technology advancement and manpower development. Under the first phase, which started in June this year until 2022, he expects to produce more than a thousand experts in die and mold engineering technology. Right now, eight Filipino experts from the government and the private sector are currently enrolled in a 10week trainer’s training in South Korea. After the training, he said they will be conducting the training in the MTSC.

Key Calax section opens in time for ‘Undas’ exodus By Lorenz S. Marasigan @lorenzmarasigan

PCALA Holdings Inc. and the Department of Public Works and Highways (DPWH) met their shared goal of partially opening a portion of the Cavite-Laguna Expressway (Calax) on Wednesday. The opened segment of the thoroughfare runs from the Mamplasan Toll Barrier to the Santa Rosa-Tagaytay Interchange. “We all know that Undas is a time we all pay respects to family and friends who have passed on, and with November 1 falling on a Friday, I’m sure many of our fellowmen will take advantage of the time to do some family bonding and go on a road trip. I only see benefits in opening Calax even on a single lane basis to decongest Laguna Boulevard,

Aguinaldo Highway,”Public Works Secretary Mark A. Villar said. Currently, only 10 percent of the Mamplasan to Santa Rosa-Tagaytay Interchange segment remains incomplete. “We are at 90 percent completion, the remaining 10 percent of the works are being fast tracked while in operations, we hope to fully open before December steps in,” Villar said. The section will be opened from October 31 to November 2 from 6 a.m. to 10 p.m. After the Undas, it will also be opened from 6 a.m. to 6 p.m. from Thursday to Sunday and from 6 a.m. to 10 p.m. from Friday to Saturday. “This will only be temporary, until the remaining works for these first subsections are completed. The public is reminded to drive safely and observe relevant traffic rules while travelling along the partially opened lane,” Metro Pacific Tollways South

Corp. Roberto V. Bontia said. The road should be opened with different exits sometime before the year ends. Villar, who is the vice chairman of the Toll Regulatory Board (TRB), has said that the toll for the section could range between P4 and P5 per kilometer. “Upon issuance of the relevant certifications and permits from DPWH and TRB, full access to the completed lanes and other interchanges and 24-hour commercial operations shall be possible,” Bontia said. Calax is envisioned to be a fourlane,45-kilometerrollroadthatwillconnectthe Manila-Cavite Toll Expressway and the South Luzon Expressway. It will have eight interchanges—Kawit, Daang Hari, Governor’s Drive, Aguinaldo Highway, Silang, Santa RosaTagaytay, Laguna Boulevard, Technopark— and a toll barrier before Slex.

GOING BANANAS A lady banana trader in the upland village of Tucod, Cabarroguis, Quirino, classifies freshly harvested bananas according to sizes. Hillside banana farmers keep a sustainable supply of the upland crop delivered to local markets in neighboring provinces up north. The rest go to Metro Manila. CEASAR M. PERANTE

SC issues permanent TRO vs Sandiganbayan in bid to force PNB turnover of LOC proceeds By Joel R. San Juan

@jrsanjuan1573

HE Supreme Court has made permanent the temporary restraining order (TRO) it issued in 2007, enjoining the Sandiganbayan from implementing its resolution ordering the Lucio Tancontrolled Philippine National Bank (PNB) to turn over the proceeds of a $4.4-million letter of credit (LOC) subject of an ill-gotten wealth lawsuit against the Marcos family and business associate Vicente Chuidian. In a 15-page resolution, the Court held that “it becomes virtually impossible” for the PNB to comply with the order of the Sandiganbayan, taking into consideration the nature of a letter credit. “Our previous decisions ordering PNB to deposit the proceeds of the letter of credit to an interestbearing account is patently wrong in light of the very nature of a letter of credit,” the SC’s First Division held in a decision recently released. On August 6, 2007, the SC ordered Sandiganbayan to immediately enforce its order to compel PNB to remit to the anti-graft court the proceeds of the funds. In a 21-page decision penned by former Associate Justice Cancio Garcia, the SC’s Second Division denied for lack of merit the petition of the PNB assailing the anti-graft court’s resolution dismissing its appeal that it be released from the obligation to remit the disputed LOC. The High Court stressed that Chuidian, a former business associate of the late dictator, remains the lawful payee-beneficiary of the subject LOC, unless the government can prove in court that he has no right to claim the amount. In its November 6, 2007 ruling, the Sandiganbayan declared that it will no longer allow further postponement pursuant to directives from the SC warning PNB against noncompliance. This prompted PNB to elevate anew before the SC the matter, arguing that the November 6 resolution is void for having been issued with grave abuse of discretion amounting to lack or excess of jurisdiction. The bank also asked the Court to issue an order directing the Sandiganbayan to conduct an evidentiary hearing to determine the existence of the alleged proceeds of Letter of Credit SFD-005-85 and to issue a writ of prohibition permanently enjoining respondents from proceeding with any and all action relating to or in connection with the November 6 resolution. Court records showed Chuidian was tagged as an alleged dummy of former President Ferdinand Marcos and his spouse Imelda Marcos in several illegally acquired companies of the spouses. The allegations said he used such close relationship with the Marcoses to induce the officers of the Philippine Export and Philippine Foreign Loan Guarantee Corp. (PhilGuarantee), renamed as Trade and Investment Development Corp. (Tidcorp) and now Philippine Export-Import Credit Agency (PhilEXIM), the Board of Investments (BOI) and the Central Bank, to facilitate the procurement and issuance of a loan guarantee in favor of Asian Reliability Co. Inco. (Arci) in the amount of $25 million. Chuidian allegedly owned 98 percent of Arci. PNB issued the letter of credit to Chuidian in 1985 in exchange for his waiver of government guarantees on a $25-million foreign loan drawn by Arci. Despite receipt of the proceeds of the loan, Arci

defaulted ion the payments, compelling PhilGuarantee to undertake the same. Consequently, PhilGuarantee sued Chuidian before the Santa Clara County Superior Court. On November 27, 1985, however, PhilGuarantee entered into a compromise agreement with Chuidian. It was agreed that he would assign and surrender title to all of his companies in favor of the Philippine Government. In exchange, PhilGuarantee shall absolve Chuidian from all civil and criminal liability on his defaulted loans. The agreement also provided that in consideration of the purchase of Chuidian’s shares of stock in Dynetics Inc. and Interlek Inc., the Philippine Government shall pay Chuidian the amount of $5.3 million. Chuidian received initial payment in the amount of US$700,000. For the remaining balance, a Letter of Credit Agreement (L/C No. SFD-005-85) was executed between Dynetics, Inc. and PNB on December 12, 1985, in the amount of $4.6 million in favor of Chuidian, from which he would draw $100,000 monthly. Chuidian was able to make two drawings from the letter of credit in the amount of $200,000 before his assets, including L/C No. SFD-005-85, were subsequently sequestered by the Presidential Commission on Good Government (PCGG) on May 30, 1986. In siding with the PNB, the Court described a letter of credit as an engagement by a bank or other person made at the request of a customer that the issuer will honor drafts or other demands for payment upon compliance with the conditions specified in the credit. It added that through a letter of credit, the bank merely substitutes its own promise to pay one of its customers who in return promises to pay the bank the amount of funds mentioned in the letter of credit or commitment fees mutually agreed upon. It also noted that that the mere opening of a letter of credit does not involve a specific appropriation of a sum of money in favor of the beneficiary but merely signifies that the beneficiary may be able to draw funds upon the letter of credit up to the designated amount specified in the letter. “It does not convey the notion that a particular sum of money has been specifically reserved or has been held in trust,” the SC pointed out. In the case of PNB, the Court noted that there are certain conditions before PNB, as the issuing bank, can honor the drafts drawn by the beneficiary. Unlike in a regular bank deposit or time deposit, the Court noted, no account was created from which funds may be drawn. It said Dynetics Inc. did not surrender assets unconditionally to the custody of PNB, and neither did PNB credit any account of Dynetics Inc. “PNB’s own assets did not increase with the issuance of the letter of credit,” the Court said. Furthermore, the Court held that the letter of credit has been sequestered and placed under the control and custody of the PCGG since March 1986. The PCGG has also issued a freeze order directing PBP to stop further drawings against the letter of credit. “All the foregoing show that there can be no proceeds to speak of. It comes as no surprise, therefore, that PNB was constrained to file various motions before the Sandiganbayan, one of which is a motion to require deposit from Dynetics Inc./ Chuidian and/ or PhilGuarantee prior to deposit the proceeds of L/C SFD-005-85 with the Sandiganbayan because PNB felt helpless in complying with the directive,” the Court said.

Agriculture/Commodities

www.businessmirror.com.ph • Editor: Jennifer A. Ng

BusinessMirror

Thursday, October 31, 2019

A13

Meet the coffee farming poster boy of faraway Sultan Kudarat

By Samuel P. Medenilla

@sam_medenilla

enrose “Ben” Subasco’s grit to stick it out in the coffeefarming business despite the odds may have been the single biggest factor that gave his fledgling enterprise the boost it badly needs.

The former personal bodyguard said no less than his siblings expressed their skepticism when he told them in 2011 that he wanted to cultivate the 2,003 coffee trees planted in their 1-hectare family lot in Sitio Blakol, Barangay Masiag Bagumbayan, Sultan Kudarat. “[During that time] my siblings wanted to replace the coffee trees with corn since they think [a coffee venture] will not earn as much,” Subasco told the BusinessMirror in an interview. At that time, Subasco said they were only able to harvest coffee beans worth around P4,500. “My siblings said I could earn around P10,000 if I would plant corn,” Subasco said. However, a YouTube video of a coffee farmer, who was able to harvest 7 tons of coffee beans from his coffee plantation inspired Subasco to go full-stream ahead in coffee

cultivation.

Brewing success

It was no smooth sailing for Subasco on his plan to raise the profitability of their coffee plantation. Even after he started to regular weeding, pruning, and fertilizing in his coffee trees, their initial yield remained low. In 2012, his earning from the yield of his coffee trees slightly increased to P10,000. But it was only in 2013, on the third year of intense tending of his coffee trees, when the hard work finally paid off, when his earning multiplied by seven folds to P70,000 after he was able to har vest 200 kilograms of coffee beans. The following year, his harvest had more than double yet again reaching almost 500 kg.

Former bodyguard turned coffee farmer Benrose Subasco tends to his coffee farm in Sitio Blakol, Barangay Masiag Bagumbayan, Sultan Kudarat.

“It was at that time when my siblings finally decided that they would also start planting coffee,” Subasco said. Recognizing Subasco’s success, Nestle Philippines finally decided to extend technical aid

to help him further increase his harvest through techniques, such as desuckering, rejuvenation and detopping. This helped propel Subasco’s coffee bean harvest to 2.7 metric tons in 2017.

It takes a lot of hard work and consistency before you could really profit from planting coffee.” —Subasco

From his profit from the bumper harvest, Subasco was able to buy a new TV, refrigerator, motorcycle, sound system and a washing machine. “It takes a lot of hard work and consistency before you could really profit from planting coffee,” Subasco said.

Poster boy

Subasco’s success made quite a mark in his community by starting a coffee-farming craze. Many of his neighbors have now abandoned the planting of

corn and moved to growing coffee trees in the hope of replicating his success. Subasco said he was only too happy to share with them his experience. His efforts, however, drew unexpected response from his neighbors. Subasco shared how he tried helping in pruning the coffee trees of one of his neighbor, who even suspected him of trying to kill his trees. After much explanation, he said, the neighbor eventually believed him and followed his recommendation. “Now, he is the second-biggest producer of coffee beans in our area next to me,” Subasco said. Nestle took notice of Subasco’s influence in his community and named as one of the brand’s coffee ambassadors. Subasco now joins Nestle to help encourage more farmers to cultivate coffee. Currently, he is helping farmers in two barangays in selling their coffee. Inspired by his success, Subasco, said he is now planning to further expand his coffee plantation. “I am now eyeing a lot near our property, which have close access to unlimited water. This will allow us to coffee tree with even bigger harvests,” Subasco said. For Suba sco, t he t a ste of sweet success is only as good as his next venture.

Agriculture/Commodities

A14 Thursday, October 31, 2019 • Editor: Jennifer A. Ng

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‘Rice planters must get relief funds soon’

By Cai U. Ordinario

@caiordinario

Axelum coco processing plant expands

ICE planters will end the year on a happy note if lawmakers will immediately approve relief measures when Congress resumes session on Monday, according to the Action for Economic Reforms (AER). The non-government organization said proposals that seek to provide relief to the “plagued” rice industry may be taken up at the plenary of both chambers of the legislature next week. “If fate allows it, relief measures will be on their way to the rice farmers in time for the Christmas season,” AER said. While the implementation of the rice trade liberalization “caused disruption,” AER President Jessica Reyes-Cantos said this is expected in the short term. “The best way to help our farmers improve their rice production is to make the [rice trade liberalization law] work. The various mechanisms —quality seeds distribution, training, and mechanization—and the funding provided from tariffs will improve productivity and competitiveness of farmers in the long run,” Cantos said in a statement. “Returning to import controls, as Senator Villar and other legislators suggest, will again lead to complacency. The decades of quantitative restrictions [QR] did not actually protect our farmers; their productivity

even declined. The QR regime only bred waste, inefficiency and corruption,” she added. Cantos urged the government to immediately put in place a 2019 supplemental budget for conditional cash grants and palay procurement, and to allot funds for these until 2021. She said government must allot funds for short-term social protection measures for farmers, such as cash assistance, until 2021. Cantos said the government has sufficient fiscal space available to provide relief measures. Citing data from the Department of Finance (DOF), Cantos said tax effort stood at 14.7 percent in 2018, the highest since 1997. Data also showed that for the first semester of 2019, tax effort is at 5.6 percent. Rolling out these fiscal measures will give farmers time to realize the gains of Republic Act (RA) 11203, according to AER.

‘Don’t wait’

SEN. Francis N. Pangilinan said government must not wait for one to two

By VG Cabuag

FARMERS in Palawan are preparing to plant rice in this file photo.

years before using safeguard duties as a trade remedy against the surge of imports. “Anything that would help cushion the impact of imports on our rice farmers at this point should be put in place [immediately],” Pangilinan told the BusinessMirror in a recent interview. Pangilinan is one of the first senators that called for slapping safeguard duties on rice imports after the farm-gate price of unhusked rice fell

by an annualized rate of 30 percent. He also said imposing safeguard duties will only be inflationary if the government will not be able to punish the cartels that are hoarding rice. “They say if you increase the duties they would just pass it on. But the supply is already high and they are hoarding. The government should go after them [rather than forgoing safeguard duties],” said Pangilinan. More imported rice were shipped

to the Philippines after RA 11203 took effect on March 5. The law made it easier for traders to buy import rice by removing the QR on imports and transforming the National Food Authority into a bufferstocking agency. The National Economic and Development Authority said the law will add some 0.44 percentage points to GDP. The Neda based this on a 35-percent tariff rate on imports. With a report by Jasper Emmanuel Y. Arcalas

PHL purchases of Belgian potato products jump by 300% By Jasper Emmanuel Y. Arcalas @jearcalas

HE Philippines’s purchases of Belgian fries quadrupled to 30,000 metric tons last year, compared to some 9,000 MT it imported in 2010, according to an export group. Original Belgian Fries (OBF), an organization of Belgian frozen potato products suppliers, said Southeast Asian countries have become Belgium’s largest market for potatoes in the past decades. “The Asean region became a large target market for Belgian potatoes over the last decade, with Thailand, Malaysia, Indonesia, Vietnam, and the Philippines proving to be growing markets for potato products from

Belgium,” the group said in a statement on Wednesday. OBF also said fries and potatorelated products shipments to the Philippines in the first half of the year has already reached 18,703 MT. The Philippines accounted for 37.4 percent of the 50,000 MT of fries and potatorelated products shipped to Southeast Asian countries. The export group said the five largest Belgian suppliers are Agristo, Bart’s Potato Co., Clarebout Potatoes, Ecofrost and Mydibel. These familyowned businesses ship potato products all over the world, it added. To promote Belgian fries in the region, OBF said it supported the fiveday Back to Basic Challenge at Thaifex 2019 in Thailand. Every participant had to prepare two toppings and two

dips to combine with tasty, Belgianstyle fries. Belgian suppliers will also showcase their potatoes straight from the heart of Europe at the SIAL Interfood 2019 in Jakarta, Indonesia, from November 13 to 16. The United States is the Philippines’s top supplier of frozen fries as it accounts for almost 45 percent of total purchases during the reference period. During the January-to-August period, the Philippines purchased about 49,000 MT frozen fries from the US worth $46.878 million, Philippine Statistics Authority (PSA) data showed. Figures from the PSA also indicated that the Netherlands is the secondlargest exporter of frozen fries to the Philippines at 22,573.916 MT followed by Belgium at 21,350.561 MT.

Subsidies granted to agriculture, fishing enterprises up 65% in 2017–PSA report

UBSIDIES granted by the government to support the operation of agriculture, forestry and fishing establishments expanded by 65 percent in 2017, according to the Philippine Statistics Authority (PSA). Based on the preliminary data of 2017 Annual Survey of Philippine Business and Industry (ASPBI), total subsidies to the agriculture, forestry and fishing establishments reached P3.3 billion in 2017, higher than the P2 billion posted in 2016. These subsidies included financial assistance, tax exemption or tax privilege given by the government to aid and develop an industry. “Only 2 out of 9 industry groups were recipients of government subsidies, with support activities to agriculture and postharvest crop activities [97.5 percent or P3.25 billion] receiving the bulk of the subsidies,” the PSA said. The remaining 2.5 percent of the total subsidies amounting to P83 million was given to fishing activities. Other industries such as growing non-perennial crops and

perennial crops did not receive any subsidies. Data also showed that plant propagation, animal production, silviculture and other forestry activities, support services to forestry, and aquaculture also did not receive any subsidies. The total value of output generated by agriculture, forestry and fishing establishments with total employment of 20 and over reached P149.3 billion in 2017. Across industry groups, PSA said, the establishments engaged in the cultivation of perennial crops generated the highest value of output at P64.6 billion, or 43.3 percent of the total. This was followed by animal production with P46.5 billion, or 31.2 percent, and fishing with P14.1 billion or 9.5 percent. In terms of value of output, three regions topped the list, with a combined value of output worth P86.1 billion, equivalent to more than half of the total value of output. Davao region generated the highest output value, which expanded by

@villygc

27.5 percent followed by Northern Mindanao, 16.1 percent; and Soccsksargen, 14.2 percent. Based on the 2017 ASPBI, there were a total of 1,242 establishments in the agriculture, forestry and fishing sector. This was higher by 9.4 percent from the 1,135 total establishments for the sector in 2016. Across regions, Western Visayas had the most number of establishments at 21.2 percent followed by Central Luzon at 12.2 percent. Other regions with more than 100 establishments were Davao region, with 146 or 11.8 percent; Calabarzon, 139 (11.2 percent); and Northern Mindanao, 133 (10.7 percent). Data collected from the ASPBI provides information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2017. The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of November 15, 2017. Cai U. Ordinario

BLOOMBERG

OCONUT products manufacturer Axelum Resources Corp. on Wednesday said it has completed the expansion of the spray-drying line in its plant in Medina, Misamis Oriental. Axelum President Henry J. Raperoga said the P250-million project will increase the plant capacity to 20 metric tons per day from 10 MT. This will translate to an annual capacity of 4,800 MT. The expansion utilizes the latest agglomeration technology in spray-drying, Raperoga said. Agglomeration is a process that makes the powder more dispersible or soluble when introduced to liquid. “The new spray-drying line will allow us to develop new products from agglomerated—or instant—coconut milk powder,” he said, adding that one such product is organic coconut milk powder. Earlier this month, Axelum disclosed that it had secured a new order for organic coconut milk powder to be used as ingredient in a skin-care product or supplement. The initial order, which is for export, is for 170 MT, worth an estimated $1.3 million. Coconut milk powder is a hightechnology, higher-priced coconut milk variant that the company is introducing to address the pressing market demand for healthier products, it said. Raperoga said coconut milk powder has one of the highest margins among Axelum’s product offerings. “If raw material costs are allocated equitably across our products, coconut milk powder is one of the most profitable for the company,” he said. “Pound for pound, the selling price of coconut milk powder is three to four times that of our mainline product desiccated coconut. Coconut milk powder and desiccated coconut are produced from the same raw material. Thus, the addition of this new spray-drying line enables us to shift production to higher margin products,” he said. “In particular, the company is exploring the introduction and production of more gluten-free, dairy-free, and organic variants of existing product offerings,”he said.“The expansion will permit us to actively pursue the development of these products.” The company manufactured 2.4 million MT of coconut milk power in 2018, with exports reaching 1.3 MMT.

New York City moves to ban foie gras in stores

EW York’s City Council is on the verge of banning sales of foie gras in gourmet stores and restaurants, a move its members say will help end inhumane force-feeding of ducks and geese to obtain their fatty livers. The legislation is certain to be approved by a council vote Wednesday over the objections of farmers and restaurant owners who say it could kill about 400 jobs and wipe out a cottage industry. At least 29 of 51 members have signed on as sponsors. “It’s crazy,” said Ken Oringer, who serves about 100 pounds of foie gras a week at Toro New York, one of seven restaurants he owns in the United States, Thailand and Dubai. “We are talking about one of the classic fine dining experiences, a unique luxury from France made more affordable because these ducks are raised on local farms. The chickens these council members eat are raised a thousand times worse.” About $50 million a year in sales is at stake, with a total economic impact of about $150 million, said Marcus Henley, who manages one of two duck farms in upstate New York’s Sullivan County. About a

third of the market lies within New York City, and “if that’s removed, you have issues with overhead and other fixed costs, throwing into question the viability of the business,” he said. Henley says he’s repeatedly invited City Council members to inspect the farms without response. Ducks are fed a liquid corn-based mixture three times a day through a 6 inch tube five-eighths of an inch wide, Henley said. Meanwhile, animalrights advocates have distributed photographs he says are outdated showing birds force-fed through tubes shoved down their gullets. “They are completely misrepresenting our farming practices,” he said. Council members haven’t visited the farms because they doubt they would see the actual conditions under which ducks are raised, said Jeremy Unger, spokesman for Councilman Carlina Rivera, a Manhattan Democrat who chairs the Health Committee and has shepherded the bill toward passage. “Force feeding is an inhumane practice, plain and simple,” Rivera said in an e-mail. “Hundreds of veterinarians testified or submitted

testimony acknowledging this fact at our hearing on the bill, with the only veterinarian claiming that foie gras was humane turning out to be a paid consultant for foie gras producers.” The law, which would take effect in three years from enactment, would impose civil fines of between $500 to $2,000 on any food store or restaurant selling food derived from “the practice of forcing by any means food or supplements into the throat, esophagus, crop or stomach of an animal.” Each day’s continued violation would be treated as a separate offense, exposing the violator to additional fines. The foie gras ban is part of a package of bills described as animal-rights legislation scheduled for a vote tomorrow, including measures to tighten restrictions on horse-drawn carriage use in extreme heat and humidity. Mayor Bill de Blasio has said he’s sympathetic to the bills. California enacted a ban on foie gras in 2004. It took effect earlier this year after court challenges failed. Chicago enacted a ban in 2006, yet reversed it two years later. Bloomberg News

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Thursday, October 31, 2019 A15

DOE warns firms falsely claiming they’re legitimate downstream oil industry players

By Lenie Lectura

@llectura

NERGY Secretary Alfonso Cusi on Wednesday issued a stern warning against those claiming to be legitimate players of the downstream oil industry. “When they apply with the SEC [Securities and Exchange Commission], the SEC will ask them to produce an endorsement from DOE [Department of Energy],” Cusi said. He said the DOE is willing to give them an endorsement “so they can register as a corporation. But once they have registered as a corporation, they have to reregister with DOE.” However, if these firms have not even started operating, he added, “then they might be misrepresenting. They have to register with us so we can protect the public,” he said.

In a statement, the DOE explained that endorsements to the SEC issued by the DOE, through its Oil Industry Management Bureau (OIMB), merely serves to inform the SEC that the department does not object to the registration of companies wishing to engage in the downstream oil business. However, under the provisions of Republic Act 8479, otherwise known as the Downstream Oil Industry Deregulation Act of 1998, these SEC-endorsed companies must subsequently notify and submit documentary requirements to the DOE-OIMB

before being considered legitimate downstream oil players. Noncompliance with such will render all types of illegal activities and representations of these companies. “The department has uncovered one such company. We cannot give more details though, as an investigation is under way. And we don’t want to tip them off,” it said. Also, the DOE said it is an acceptable industry practice for legitimate downstream oil players to source their funds from loans approved by banks and other recognized lending institutions, or from equity contributions notified to and approved by the SEC and/or the Department of Trade and Industry. Therefore, other funding practices aside from the foregoing, especially those that are inviting investments through the promise of unbelievable profit returns, should be fully investigated to prevent fraudulent practices.

MAYNILAD: KALIWA DAM VITAL TO WATER SUPPLY

AYNILAD Water Service Inc. said on Wednesday it supports the government’s move to push for the completion of Kaliwa Dam, which several groups are protesting allegedly for the haphazard manner in which regulators gave it environmental clearance, and for the impending displacement of certain indigenous groups. In a statement, one of the two major private water concessionaires said it agreed with government planners that Kaliwa Dam “is a viable long-term solution to the supply shortage that has been affecting residents of Metro Manila.” Amid threats by President Duterte that he may order the temporary takeover of water utilities if they cannot avert the second water supply crisis for 2019, Maynilad insisted it has been doing its part “in implementing the necessary water infrastructure enhancements to meet the supply requirements of an ever-growing population.” The current supply shortage—the second since last March’s crippling disruptions that affected millions—is “primarily due to lack of rainfall over the Angat Dam, which is still the only primary raw water source for Metro Manila and nearby provinces,” Maynilad pointed out.

“As a water distributor, Maynilad can only distribute the water volume that it receives from existing raw water sources. The government has claimed responsibility for the development of raw water sources, but we have been working with them to expedite the process because we understand the urgency of meeting the supply needs of our customers,” the company added. Maynilad said it is currently maximizing the limited supply “so we can mitigate the impact of the current reduced allocation from Angat Dam. As an alternative source to Angat Dam, we have added 300 million liters per day to our water production capacity following the construction of our treatment facilities sourcing raw water from Laguna Lake. We intend to further boost this by another 150 MLD supply. We continue to aggressively implement our Non-Revenue Water reduction program, reactivate deep wells as needed and deploy mobile treatment plants to source additional raw water from dams in Cavite.” Administrator Emmanuel Salamat of the Metropolitan Waterworks and Sewerage System (MWSS) had said earlier that with the issuance of an environmental compliance certificate (ECC) by the Department of Environment and Natural

Resources (DENR), the next step is to wait for the signing of the loan effectivity of the project. “We will wait for the loan effectivity to be signed before we proceed with the project. There are conditions outlined in the ECC so hand in hand, we have to comply with the conditions set for by the DENR,” he said. Before the MWSS can award the contractor for the contractor to proceed with the design, the loan effectivity would have to be signed first, he said. He said the process will take around six more months to complete. By that time, construction is expected to begin. According to Salamat, the Kaliwa Dam Project is part of the mid-term program of the MWSS, which will address the demand requirements for the next three to five years, and possibly, extend up to 10 years. “Hand in hand with that, we are developing the short-term water security programs which include Laguna Lake and Wawa Project,” he said. Developing water sources like the Kaliwa Dam, he said, is an urgent requirement, to ensure water security for Metro Manila. Otherwise, he said Metro Manila will face even worse water shortage episodes in the future. With a report by Jonathan L. Mayuga

A16 A4 Thursday, October 31, 2019 • Editor: Vittorio V. Vitug

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‘Banks still awaiting further RRR cuts before lending‘

By Bianca Cuaresma

@BcuaresmaBM

ANKS are awaiting further cuts in their reserve requirement ratio (RRR) before disbursing loans to the productive sectors, a local economist said. In his recent research note, ING Bank Manila economist Nicholas Mapa said bank lending will continue to be “lackluster” despite the pump in liquidity brought about by the recent cuts in the banks’

deposit requirements. “Analysts have pointed to the dovish [Central Bank] Governor [Benjamin Diokno] and his dovish pronouncements throughout as the reason for sluggish lending growth

rates, as CFOs simply sign up for working capital but direct ambitious investment plans to the backburner as they ‘wait for rates to hit rock bottom,’” Mapa said. “Thus, we may continue to see bank lending remain in lackluster growth despite successive reductions to RRR as cash infusions simply revert to the national government coffers,” he added. Just recently, the Bangko Sentral ng Pilipinas (BSP) let out another cut in the banks’ RRR—a cut that will potentially steer the economy back to the 6 percent territory next year. The monetary board approved another 100-basis-point cut in the

banks’ RRR. The RRR is one of the BSP’s monetary tools. It is the portion of depositors’ balances that banks are asked to keep idle in the BSP’s vaults as reserves. “The reserve requirement reduction is in line with the BSP’s broad financial sector reform agenda to promote a more efficient financial system by lowering financial intermediation costs,” the BSP said. The cut lowered the universal and commercial banks’ RRR to 14 percent and the thrift banks’ RRR to 4 percent. The MB complemented the move with a reduction in the RRs for nonbank financial institutions with

quasi-banking functions (NBQBs). The reduction will be effective on the first day of the first reserve week of December 2019. Latest data from the BSP showed domestic liquidity—broadly measured as M3—grew 6.4 percent in August this year from its level in the previous year. The growth was slightly faster than the 6.7 percent in July. The growth led to a total cash supply of P11.9 trillion in the Philippines’s cash stream during the month. A growing cash supply is often beneficial for an expanding economy such as the Philippines, as it provides

fuel to productive sectors. However, an excessively slow growth in M3 could be detrimental to the country’s overall growth, especially if it is not enough to fuel the productive activities in the economy. “In short, RRR infusions have done little so far to bolster actual real economic activity with funds diverted back to the Bureau of the Treasury [and, eventually, the BSP’s Treasury single account] or with the BSP’s overnight windows,” Mapa said. Diokno earlier said his goal is to reduce the banks’ RRR to single digit by the end of his term.

DOH-FDA seeking DA advice on ASF actions PDIC sets November bidding

for P81-M closed banks’ assets

By Bernadette D. Nicolas @BNicolasBM

HE Department of Health and the Food and Drug Administration (DOH-FDA) said on Wednesday they will be asking the Department of Agriculture (DA) on what meat products it deemed necessarily banned amid the spread of African swine fever (ASF). Health Undersecretary and FDA Officer In Charge Eric Domingo said the interagency task force on ASF composed of different government agencies was scheduled to meet, also on Wednesday, to discuss the steps that they can take to mitigate the spread of the fatal hog disease. The first meeting of the interagency comes more than a week after the DA’s confirmation that ASF has spread to one area in Cavite and another area in Cavite as the government struggles to control the illegal trade of hogs from infected areas. “Definitely,” Domingo said, the DOH-FDA acts “on the recommendation of the Department of Agriculture.” The DA best understands the risk to animals and, for the DOH, the risk, they know fully well there is no risk “in terms of human health” and that “we know it’s not hazardous, there’s no problem,” Domingo said. DOH will be asking the DA for recommendations “as to which products need to be banned, what can be sold, and which should not be imported into the country,”

T Domingo said in a mix of English and Filipino. At the same time, Domingo said they will also ask for DA’s help on the proper disposal of the meat products. Asked if the spread of ASF has reached emergency levels, Domingo said: “Well, oo, ‘no, mukhang maraming provinces na kasi dito lalo nasa Luzon, tapos nagkakaroon na rin syempre ng problem ’yung mga hog raisers tapos ’yung manufacturers [Yes, in the sense that many provinces, especially in Luzon, have been affected; and then we have the problems of hog raisers and now the manufacturers].”

According to Domingo, swill feeding and improper disposal of ASF-affected pigs make it hard to contain the spread of ASF. “I think these are the two things that they [DA] are working on and, of course, [the movement of animals] between borders [of different provinces] and, at the same time, ayaw naman din natin mahirapan ang industriya at masyadong ma-limit naman ngayon na magpapasko [we don’t want the industry to unduly suffer and to be restricted, especially approaching Christmas],” Domingo said. He said the FDA will only follow the recommendations of DA

on the ban on pork imports from affected-areas. If the DA adds to the list of ASFaffected countries where it sees a hazard in importing products, including processed meat, “then the FDA follows their recommendations and then we add to the ban,” he said. To date, more than 20 barangays have been confirmed affected by ASF in the Philippines. The ASF is a fatal disease to hogs with a mortality of up to 100 percent, with no known vaccine yet, and no cure. However, the ASF poses no threat to human health.

HE Philippine Deposit Insurance Corp. (PDIC) is set to release a total of 46 closed banks’ assets consisting of residential and commercials lots with aggregate minimum disposal price of P80.9 million through a public bidding in November. According to the insurance firm, at least 30 residential lots, five commercial lots, 10 motor vehicles and a generator set are up for bidding. The assets are located in Metro Manila, Aklan, Antique, Bohol, Capiz, Cebu, Guimaras, Iloilo, Negros Occidental, Negros Oriental and Palawan. Each bid should be accompanied by a bond equivalent to at least 10 percent of the submitted bid, in cash or Manager’s Check issued by a reputable universal or commercial bank

and payable to PDIC. The PDIC said the winning bidder should pay the balance of the purchase price in full within 15 calendar days from the receipt of the Certificate of Award or not later than December 13, 2019. “We advise bidders to physically inspect the properties they are interested to buy, examine and verify the titles and other evidence of ownership, and determine any unpaid taxes, fees, charges and/or expenses before submitting their bids,” the firm said in a statement. Proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to uninsured depositors and other creditors in accordance with the rules on concurrence and preference of credits. Jove Moya

The ‘Magic of Chavit’: How the first shared telco infra became reality despite red tape By Lorenz S. Marasigan @lorenzmarasigan

RELIEF FOR TRAVELERS

Public Works Secretary Mark A. Villar (third from left), with Bases Conversion and Development Authority (BCDA) President Vince Dizon (from left), Santa Rosa, Laguna, Mayor Arlene Arcillas and Art Monge, MPCala vice president for Tollways Development, lead on Wednesday the partial opening of the 10-kilometer first segment of the Cavite-Laguna Expressway (Calax) stretching from the Mamplasan toll barrier to the Santa Rosa-Tagaytay Interchange. The DPWH and the tollways developer rushed the segment’s opening in time for Undas, or the observance of All Saints’ Day and All Souls’ Day. Story on Calax opening on page A12. ROY DOMINGO

OUGHLY three months from now, the first shared telco infrastructure in the Philippines will rise from the quaint town of Caoayan in Ilocos Sur, just a few kilometers away from the famed Historic City of Vigan. It will be a historic moment, says Department of Information and Communications Technology (DICT) Undersecretary Eliseo M. Rio Jr., as it will mark the new era for the Philippine telecommunications industry. Rio, who jump-started the common-tower initiative during his stint as de facto chief of the ICT department last year, explains that this initiative has long been needed since the Philippine tower density rate is one of the lowest in the world and has resulted in poor Internet services. “We are making history here, but really need to add more towers as soon as possible using this initiative,” he says. The government aims to build at least 50,000 common towers across the Philippines to improve its tower density rate, which is currently at 0.14 percent or one tower serving 4,000 subscribers. The government’s goal is to improve it to be on a par with neighboring countries like Vietnam, Indonesia and Thailand.

Building common towers will allow telco players to lease from tower operators instead of building their own infrastructure. Not only does it remove the capital needed to build and maintain a facility, it also cuts away the duplication of the same facility in one area. The first tower is currently being built by LCS Holdings Inc., a company owned and controlled by politician Luis Chavit Singson, who hails from Ilocos Sur. His group successfully complied with all the requirements needed for the tower build, including the over 28 permits from the national and local governments. Its first customer is Dito Telecommunity Corp., projected to be the third telco player in the countr y. Led by Davao-based businessman Dennis A. Uy, the company tapped Singson’s group, once its rival in the auction for the third telco license, for its telco infrastructure requirements. Dito Telecommunity Chief Technology Officer Rodolfo D. Santiago said that the group decided to pursue this initial phase of tower build with LCS Holdings because of the magic that is Chavit. “What’s the difference—the likes of Mayor Singson. He is very serious in having a very good business and that is not present before. Also, it’s the support of the government to

really make faster the rollout of towers because the government knows that without the push, this cannot happen,” he says. Singson, who has long been a politician, now sits as the mayor of Narvacan, Ilocos Sur. He is currently positioning himself as the next president of the League of Municipalities of the Philippines. His group’s hasty action toward clearing permits was unprecedented, given that incumbent telco players had been pointing a finger at government red tape as the culprit for the low tower density rate in the country. For the first tower, Singson’s group partnered with Thai tech group Ua Withya Public Co. Ltd. to build its first common tower in Ilocos Sur, but the group remains open to more partners, as it gears to invest billions of pesos in order to build as many as 70,000 towers in the next decade. “We have identified 6,000 sites now. We are in talks with small and big companies to build this. All in all, we are targeting 50,000, 60,000, or even 70,000 towers spread over 10 years,” he told the BusinessMirror. Singson’s list will involve the rollout plan of Dito Telecommunity, formerly known as Mindanao Islamic Telephone Corp., which aims to start offering telco services by 2020.

A18 Thursday, October 31, 2019 • Editor: Angel R. Calso

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Facebook News Tab: Newspapers’ lifeline?

OURNALISM plays a critical role in democratic societies. When news is properly sourced, it gives people reliable information. When it’s not, everybody loses an essential tool for making informed decisions. Sadly, news publishing became a precarious business with the advent of the Internet. Advertising revenue accounts for the lion’s share of newspaper income. When corporate advertisers started heavily relying on cheaper and more dynamic online advertising space, newspapers were left holding the bag. To add insult to injury, tech giants started using stories published by established newspapers. For example, news publishers have complained about the way digital giants like Facebook make use of their stories— mostly by displaying headlines and short summaries when users post news links. Truth be told: Over the course of its 15-year history, Facebook has ignored news organizations while gobbling their advertising revenue. Facebook CEO Mark Zuckerberg was even quoted as saying he wasn’t sure it “makes sense “ to pay news outlets for their material. In an online article—“How Facebook stole the news business”—author Josh Constine said: “Big news outlets stupidly sold their soul to Facebook. Desperate for the referral traffic Facebook dangled, they spent the past few years jumping through its hoops only to be cut out of the equation. Instead of developing an owned audience of homepage visitors and newsletter subscribers, they let Facebook brainwash readers into thinking it was their source of information.” Last week, in an apparent change of heart, Facebook announced plans to pay news publishers—at least some of them, initially—during the launching of “News Tab,” a new section in the Facebook mobile app that will display headlines from the Wall Street Journal, The Washington Post, BuzzFeed News, Business Insider, NBC, USA Today and the Los Angeles Times, among others. At an event on Friday in New York, Zuckerberg was asked why Facebook isn’t paying all publishers in the news section. He said the initial focus was on building a broad set of content and figuring how to compensate publishers with paywalls. The next step will be to add local and international sources to the tab, he said. News Corp. CEO Robert Thomson, who has been attacking Facebook for more than a decade, described the new feature as a potential lifeline for publications struggling to stay afloat in the digital news era. He suggested that News Tab could save some local newspapers from extinction. Not everyone likes the News Tab, however, Laura Bassett, cofounder of the Save Journalism Project—a nonprofit organization advocating for journalists in the digital era—says the News Tab is a “conveniently timed announcement that’s clearly meant to distract from Zuckerberg getting eviscerated on the Hill this week” and shift the conversation away from Facebook’s dismal track record when it comes to supporting journalism. Bassett is skeptical of publishers’ newfound praise for Facebook. “How can you call Zuckerberg the savior of journalism when he’s one of the ones that killed it?” she asked. “You can’t kill something, then revive it, and then get praised for that. It’s not going to bring back any jobs. It’s a drop in the bucket, frankly, compared with the damage they’ve done to journalism.” Since 2005

BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief Associate Editor News Editor

STRONG El Niño in 1965 and 1966 changed the world. This reoccurring climate phenomenon did not make the change all by itself, but was the beginning of the change that is still being felt today, some 50 years later. If you were a marine biologist with a keen eye and on vacation at the beaches of Peru at that time, you might have noticed a small crab in abundance that should not have been there. You would have immediately canceled your trip, and immediately returned to your home country. Upon your arrival you would have contacted a commodity futures broker and placed a “Buy” order that would have made you wealthy. The Peruvian anchoveta has been characterized as the most heavily exploited fish in world history, and most of the catch was for

making fishmeal used as an animal feed. The 1966 El Niño (and again in 1972) disrupted the breeding cycle by reducing the anchoveta food source and allowing crab predators to flourish. About the same time as the 1972 El Niño, an advancement was made in growing soybeans that significantly increases production. That was a good development as soybean meal was rapidly becoming the replacement of choice for the shortage of fishmeal. From about $2.30 a bushel in 1965, the price soared to $3.68 by the end of 1966. In 1973, the price

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peaked at about $12 because of demand and in spite of the first wave of increased production. Your profit on one soybean futures contract would have been about 4,000 percent. The Peruvian fisheries industry collapsed. The Black Death or Bubonic Plague of 1346 to 1353 killed somewhere between 75 million and 200 million people in Europe and Asia. Between 30 and 50 percent of the European population was wiped out. However, the resulting labor shortage ended serfdom and the feudal lords were forced to pay wages for farm labor. This created the first sustainable middle class in 1,000 years. No longer could the nobles offer food and free housing. They had to actually pay real money. And the “peasants” were able to save and build small businesses. That is capitalism. Serfdom is “socialism.” You cannot do anything about the cards that you are dealt but you have a choice on how to play the hand. Note that the African swine fever has killed as many as half of China’s pigs, an estimated 300 million, since the disease took hold 13

How long will this country endure the flawed 1987 Aquino Constitution? Cecilio T. Arillo

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Profiting during adversity

HIRTY-TWO years ago, President Corazon Cojuangco Aquino, whose government had been frequently associated with “miracles,” invoked the powers of a rebel government, abolished the 1973 Constitution, scrapped the Batasang Pambansa (Parliament), the Supreme Court, local government units, and the civil and military services. And to provide her government with democratic legitimacy, she arrogated power unto herself by handpicking 48 men and women, including prelates and suspected communists, and hastily framed her own Constitution, the substance and wordings of which, due mostly to the hatred of the late President Marcos and accommodations of the diverse political, social and economic interests of the framers, became the longest in Philippine history and probably in the world. It had 39,000 words and punctuation marks, ran 58 pages, and was four times longer than the brief but all-embracing US Constitution that

has already been amended 26 times. The 1935 Philippine Constitution, with 7,828 words and punctuation marks, was finished in nine months; the 1973 Constitution, consisting of 13,671 words and punctuation marks, was deliberated in a span of two years. The Aquino Constitution, by comparison, was completed in a record time of only four months. As a result, it had 97 open-ended and ambiguous provisions that were entrusted to Congress to provide the enabling law with equally nebulous phrases: “...as may be provided by law” or “as Congress may provide.” For instance, the Aquino Constitution, in Section 26, Article II,

Up to now, none of these imperfect provisions in the Aquino Constitution had been corrected or amended, resulting to an economy that can barely employ its own people and the repeated culpable violations of the Constitution. Worse, most Filipinos, particularly the youth, are still ignorant about the Aquino Constitution.

provides that: “The State shall guarantee equal opportunities for public service, and prohibit political dynasties as may be defined by law.” Because of inaction, dynastism became widespread ever since. Another provision in Section 28, Article II, also provides that: “Subject to reasonable conditions prescribed by law, the State adopts and implements a policy of full public disclosure of all its transactions involving public interests.” Again, by inaction, the Aquino administration had swept too many secrets under the rug and her regime was littered with numerous rugs bulging with dark and dirty transactions. Still another ambiguous provision

months ago. It is estimated that as much as 70 percent of China’s pigs will die, and China has half of all the world’s pigs. Effectively, more than one quarter of the world’s pigs have been wiped out by the disease. Once the African swine fever is “controlled,” it will take from four to six years to rebuild China’s herds. This is a global plague unlike anything we have ever seen before. This is putting a tremendous strain on the global protein supply as other sources will be substituted for pork and it will only get more severe. It is anyone’s guess what the eventual effect will be on the Philippines. However, there are always profit opportunities from adversity for those that are smart enough and creative enough to figure out how to survive and prosper. “It is better to light a candle than to curse the darkness.” Wrong. It is better to be the candle maker. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

is the mandate that the government pursues an industrialization policy, a policy that was no different from the infamous 1946 Bell Trade Act designed to preserve the Philippines as an agricultural country, a supplier of raw materials, a reliable source of cheap labor and a market for imported consumer goods. According to the Wikipedia, the free encyclopedia, the Act, also known as the Philippine Trade Act, linked the Philippine economy to the United States economy in several ways: n A system of preferential tariffs was established, undermining control over imports and exports by the Philippine government; n The Philippine currency, the peso, was pegged to the US dollar; n The Philippine government was obligated not to place restrictions on currency transfers from the Philippines to the United States; n US citizens and corporations were granted equal access with Philippine citizens to Philippine minerals, forests and other natural resources, despite provisions in the Philippine constitution to the contrary which the act required to be amended.[3] See “Arillo,” A19

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Upskilling the nation’s saviors Can we do a Zacchaeus? Dr. Rene E. Ofreneo

Msgr. Sabino A. Vengco Jr.

LABOREM EXERCENS

ALÁLAONG BAGÁ

Continued from A1

HIS is truly a welcome development, that is, industry initiating a program to promote industry competitiveness by investing on the enhancement of the skills of their workers. This is a marked departure from the generally poor response by many industries to the old development challenge: face competition, national and global, by upgrading the skills of the entire work force, including those of the rank-and-filers. If there are industry investments on skills development, the usual beneficiaries are the chosen few, meaning the executives and select personnel at the upper- and middle-level echelons of the corporate organization. Some of the elite employees are even given opportunities to study or train overseas. But training for the rank-and-file workers? Rarely. The widespread “Endo” culture in the Philippines cultivates a race to the bottom system of hiring, meaning those at the bottom of the labor market are simply treated as disposables, who can easily be replaced by other short-term hires. If skills training is needed for the ordinary workers, the usual industry attitude is: leave it to Tesda or other government welfare institutions. Training is treated as cost, not investment. Workers are treated, too, as cost items, not assets. And, definitely, not as social partners. The country’s failure to invest continuously on technology and skills upgrading and reskilling for all is one explanation why it has been left behind by Singapore, South Korea and Taiwan in the 1980s, by Malaysia and Thailand in the 1990s, by China at the turn of the millennium and now, probably, by Vietnam. The lack of technology modernization and skills upgrading/reskilling is vividly reflected in the failure of the electronics assembly industry, established as early as the 1970s, to climb to higher levels of development, as what Malaysia, Singapore, South Korea and Taiwan have successfully achieved, from the 1970s to the present. And yet, some economists and development planners are not mindful of the maldevelopment outcomes of the foregoing absence of government-industry investment on technology modernization and skills upgrading/reskilling. The manufacturing sector, once the envy of Asia in the 1960s, literally shrunk in the last four decades. It is worse for the agricultural sector, a large part of which is now comatose. These economists and development planners are still banking on the relative cheapness of Philippine labor as its “comparative advantage”, given the country’s large pool of unemployed and underemployed workers. Hence, they keep persisting on pushing for the old development framework dubbed as the labor-intensive export-oriented industrial (LIEO) program of the 1970s, which was rebaptized in the 1980s as simply the export-oriented (EOI) program backed up by a package of IMF-World Bank’s “structural adjustment loans” (SALs). The LIEO/EOI has been a colossal failure in terms of industry development and job generation. It has failed to generate quality jobs and better welfare for the work force. It is against this background that the migration of Filipino skilled workers in virtually all continents of the world has become a flood. In 1975, the late Labor Minister Blas Ople described the migration of skilled workers, initially to the petro-dollar-rich Middle East, as a “temporary program,” meaning it was being promoted by the government as a temporary program while the LIEO program of Neda still had to take off. The initial batch of migrant workers, numbering around 50,000 were then called as “overseas contract workers,” or OCWs. Today, the Commission on Overseas Filipinos (COP) put the number of overseas Filipino workers (OFWs) at over 10 million, or 10 percent of the country’s resident

population. Minister Ople turned out to be a better job developer compared to his counterparts at Neda. Are the migrant workers composed mostly of the unemployed, who are seeking greener pastures overseas? The answer is not necessarily so. The overseas labor market has always been selective—selective of workers with skills, with work experience and with talents or know-how. This is the reason why the Employers Confederation of the Philippines raised the alarm, as early as the late 1970s, over the impact of the brawn and brain drain on domestic industry. The operations of Philippine-based industry was (and still is) affected by the outflow of skilled workers and experienced hands, especially by those possessing the critical skills needed to sustain business, e.g., production engineers. This, in turn, exacerbates the inability of industry to upgrade, expand and modernize. Nevertheless, the hundreds of thousands of skilled workers who have migrated for work overseas in the last four decades have become the true saviors of the economy. They directly support the sustenance needs of at least one-fifth to one-fourth of the population. In turn, the consumption spending by the OFWs and families sustain the expansion of the services sector, including the businesses of the taipans who have been building mall chains, condominium and housing villages, and so on. The OFWs are the true saviors of the economy. These saviors have been joined in the last two decades by the skilled workers in the call center-BPO sector. The American, European and now, Australian-Asian, multinationals have discovered that the Filipino information and communications technology workers are as skilled and as tech-savvy, if not better, as those of their ICT workers in their home countries. The call center-BPO sector grew in the last two decades, with no or limited government role at the beginning, in 1997-2005 period. The sector grew around one single major attraction to the offshoring companies: the availability of skilled Filipino ICT workers. Thus, today, the economy is standing mainly on two legs: overseas labor migration and call centerBPO sector. Is this sustainable? The answer of ADB’s Norio Usui, in Taking the Right Road to Inclusive Growth (2012), is that this is not sustainable. Rebuilding the industrial sector, devastated by five decades of neo-liberal LIEO/EOI economics, is a must. However, if the two legs will crumble, the economy will easily slide downward along a disastrous slippery path, that is, if nothing is done. Right now, the overseas labor market is facing a number of sustainability challenges such as rising xenophobia in a number of labor-receiving countries, localization/Saudization in the Middle East, and so on. In the case of the call center-BPO sector, the technology revolution keeps evolving, generating new processes requiring changes in skills and know-how. To remain competitive, the sector indeed cannot stand still. The IBPAP decision to invest on reskilling/upgrading is truly timely and forward-looking.

F last Sunday we saw a tax collector pleasing in the sight of God because of his truthfulness and humility, now we encounter a chief of tax-collectors doing the right thing and receiving salvation as he came to know Jesus (Luke 19:1-10), the divine mercy that seeks out the lost and the condemned.

The chief tax collector and the good shepherd THE Jericho chief tax collector Zacchaeus must have been a very wealthy man. First of all he won the bidding for the taxes in the area, which means he paid the Romans in advance all the taxes due. Then he set out his agents to collect actual taxes from the citizenry, bloated to make him recoup his initial investment and literally to make a killing. Much resented by the public, Zacchaeus was ostracized as unclean due to his occupation and despised as in breach of the law. He was not counted as a son of Abraham; he may have many riches, but very few neighbors. And somehow he was drawn to Jesus. He wanted to know more and get closer to the

carpenter from Nazareth. A man of action, he ran ahead of the crowd and climbed up a tree to observe Jesus more clearly from his vantage point. He would allow neither his short stature nor the people to prevent him from seeing Jesus. Like a shepherd in search of his lost sheep, Jesus unerringly stopped at the spot where Zacchaeus was perched on a limb of a sycamore tree. Jesus also was drawn to Zacchaeus. Looking up he saw a man segregated from the rest and fenced off by the bars of the tree branches. Jesus summoned him out of that isolation with a self-invitation to Zacchaeus’s house. This was beyond anything Zacchaeus could have imagined happening to him when he set out to have a look at Jesus.

Thursday, October 31, 2019 A19

Getting close to Jesus, he discovered divine compassion and mercy. His home had been shunned by every decent person in society, and now this man of God volunteered to be his guest and sat at his table!

The conversion

THE experience of Zacchaeus with Jesus was radicalizing. He felt genuinely loved. But that was not what mattered to the on-lookers: to see Jesus giving some attention to this public sinner was shocking enough, to observe them in friendship was just too much. The audible disapproval of the public now made a difference to Zacchaeus who earlier in his life did not bother about their angry murmurings. As if awakened by the protest, he realized that his new bonding with Jesus could not be separated from his relationship with his countrymen. Moreover, he saw that his accountability for the past could not now be glossed over. To be included within the circle of the loved ones of Jesus was literally a new life for Zacchaeus. The encounter was a turning point; the chief tax collector unhesitatingly undertook what would do justice to the new centering of his life on Jesus and his turning away from his old values and priorities. Half of his possessions he was decided to give to the poor. He was immediately

Court turns off Peco power Val A. Villanueva

BUSINESSWISE

LOILO City Mayor Jerry Treñas has had enough. Citing his duty to protect the people of Iloilo, he acted on the “mounting” complaints against the Panay Electric Co. (Peco), which owns the aging electric posts that were blamed for a series of fires in the city. Treñas promptly referred these complaints about Peco’s inadequately maintained lines, power outages and hazardous electric posts to the Energy Regulatory Commission (ERC) and the Presidential Complaint Center (PCC). Peco has been the lone power provider in the province for 95 years until Congress discontinued its franchise in favor of MORE Electric and Power Corp. The mayor explains that the Bureau of Fire Protection of Iloilo City responded to four fire incidents involving Peco’s electric poles. He says that the poorly maintained Peco facilities are believed to have ignited the fires. Treñas believes the ERC, as a regulatory body, should act on the matter, and the PCC, as a liaison unit of government and private entities, should assist his aggrieved constituents. The situation makes the recent announcement of Peco’s Marcelo Cacho all the more absurd: that his company would be spending P1.1 billion to improve the city’s electricity distribution system. Even if Peco were to spend P1.1 billion on the distribution system, the

Arillo . . .

continued from A18

Filipino nationalists denounced the Bell Trade Act. Even the reliably pro-American Philippine President Sergio Osmena called it a “curtailment of Philippine sovereignty, virtual nullification of Philippine independence.” In 1955, nine years after passage of the Bell Trade Act, a revised United States-Philippine Trade Agreement (the Laurel-Langley Agreement) was negotiated to replace it.[3] This treaty abolished the United States authority to control the exchange rate of the peso, made parity privileges reciprocal, extended the sugar quota and extended the time period for the reduction of other quotas and for the

Had Marcelo Cacho made the announcement that Peco is spending P1.1 billion five years ago, he would have made sense. Now, it only comes out as a pathetic attempt to increase the value of whatever properties the company may be selling to MORE.

company can no longer distribute electricity in Iloilo City and its nearby municipalities because Congress has awarded the distribution utility (DU) franchise to MORE, late last year. In other words, Cacho is announcing an expansion plan for a business that no longer exists. It already lost the franchise: an authority under the Constitution that the State gives to any corporation to do a service business for the benefit of Filipino consumers. Cacho’s announcement would have made sense had the Court of Appeals (CA) upheld Peco’s petition questioning the expropriation of its distribution assets by MORE, a company owned by multibillionaire Enrique Razon Jr. Razon is also investing close to P10 billion in developing two Iloilo ports to serve as alternative cargo handling hubs in this part of Southeast Asia, as business increases between the Philippines and our neighbors, spurred also by the trade war between China and the United States. In a 17-page decision handed down by Associate Justice Alfredo Ampuan, the CA said it has no

jurisdiction over the case filed by Peco since only the Supreme Court has jurisdiction over cases of distribution utilities as provided in Republic Act (RA) 9136, or the Electricity Power Industry Reform Act (Epira). Ampuan said that even if the CA had jurisdiction over the case, Peco still failed to show that its business suffered from the expropriation of its distribution assets in Iloilo City because it already does not own the DU franchise since Congress gave it to MORE in a measure signed into law by President Rodrigo R. Duterte as RA 11212. Peco’s argument that MORE’s expropriation of its distribution assets will plunge Iloilo City into blackout also did not make sense since MORE, as the new franchise holder, is taking over Peco’s aged distribution assets, Justice Ampuan wrote. “As for Peco’s fear of having Iloilo City plunge into darkness, suffice it to say that MORE is actually averting the same by pursuing its obligations as the grantee of a Legislative Franchise to operate,” Justice Ampuan pointed out. In his decision, Justice Ampuan said that Congress granted MORE the distribution franchise

progressive application of tariffs on Philippine goods exported to the United States. Up to now, none of these imperfect provisions in the Aquino Constitution had been corrected or amended, resulting to an economy that can barely employ its own people and the repeated culpable violations of the Constitution. Worse, most Filipinos, particularly the youth, are still ignorant about the Aquino Constitution. Why? Because it failed to educate them about its meaning and implications despite the specific mandate of her Constitution in Article XIV, Section 3 that: “All educational institutions shall include the study of the Constitution as part of the curricula.” For instance, when the Aquino

regime campaigned for the ratification of her Constitution in 1987, her propagandists resorted to “glittering generalities” by ascribing her Constitution with some lofty ideals. Thus, some pro-charter propagandists in that one-sided campaign said that a “yes” vote for the Constitution was a “yes” for democracy, for freedom, for progress and for stability. What right-thinking person was not for democracy, or freedom, or progress or stability? Since many, if not all, of the voters were for these beautiful concepts, they voted “yes” to the Constitution although most of them had not read its provisions. Curiously, Aquino and her supporters, including some sectors of the Catholic Church, had vigorously

adopting the gospel teaching with his “elusive wealth” to make friends with the poor who would welcome him in heaven; he could not serve both God and mammon (Luke 16:9.13). And he was ready to make restitutions to those he wronged, willingly “four times over,” the full extent of the penalty for the theft of what meant life for someone robbed. Alalaong baga, Zacchaeus made a quick leap not only down from a sycamore tree, but up and out of his old life of greedy materialism. His faith and sincere transformation elicited from Jesus the glad confirmation of salvation promised to Abraham and His descendants now coming upon Zacchaeus’s house. The reconciliation extended to him by Jesus shows that indeed the Lord has come “to seek and to save what was lost.” But also that no one is to be excluded a priori from salvation, because even the lost can be rescued and even the worst of sinners can be converted. If only we can also do a Zacchaeus! For grafters and extortionists, taxcheaters and smugglers, worshippers of mammon and betrayers of their people, Zacchaeus is a saint waiting to be imitated. Join me in meditating on the Word of God every

Sunday, from 5 to 6 a.m. on DWIZ 882, or by audio streaming on www.dwiz882.com.

in Iloilo City as part of its powers under Epira, a law that restructures the electricity industry to make it more efficient, and ensure continuous and assured supply of affordable electricity to Filipino consumers. In a previous column, I already discussed how Congress ignored Peco’s application for the renewal of its DU franchise that expired early this year because of a cacophony of complaints from Iloilo consumers and businesses who went ballistic when the utility’s billing system exploded in a big mess prior to a Senate hearing. Consumers raged against being charged 1,000 percent higher than their previous bills. Instead of acting on Peco’s application for the renewal of its congressional franchise, the House of Representatives and the Senate approved instead a franchise for Razon’s MORE. RA 11212, which put into law MORE’s legislative franchise, gave Peco a temporary permit to continue its operations until MORE has completed the transition. MORE was granted the power of eminent domain to take over any Peco asset —including electric poles and other distribution resources—that would enable it to do the job assigned to it by Congress and Malacañang. Had Marcelo Cacho made the announcement that Peco is spending P1.1 billion five years ago, he would have made sense. Now, it only comes out as a pathetic attempt to increase the value of whatever properties the company may be selling to MORE. For comments and suggestions, e-mail me at mvala.v@gmail.com

opposed efforts to amend the flawed Constitution. Why is a good Constitution important? The answer is simple: it is very important because it affects the lives of all Filipinos, rich and poor. Their government is based on it, their rights and privileges are supposed to be protected by it, and their way of life largely depended on it. To paraphrase Floyd G. Cullop, a teacher: “To be ignorant of the Constitution is to be ignorant of all the things your country is...and of the truth its people have believed to be above all others in the relationship between human beings and government.” To reach the writer, e-mail cecilio.arillo@ gmail.com.

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PHL makes larger play for global MICE market By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE Philippines is making a play to corner a significant share of the international MICE (Meetings, Incentives, Conventions and Exhibitions) market, after its successful hosting of several international meetings and conferences over the years.

Tourism Undersecretary Benito C. Bengzon Jr. announced forthcoming MICE events that the Philippines will host, an indication, he says, of the growing importance of the country as a MICE player. Photo by TPB

This year’s MICECONnect attracted 115 local and international sellers and buyers who engaged in business-to-business meetings over two days. The Philippines is positioning itself as a major player in the global MICE market. Photo by TPB

In his speech welcoming participants to the recent MICECONnect 2019 opening in Manila, Undersecretary for Tourism Development Planning Benito C. Bengzon Jr. of the Department of Tourism (DOT) announced major MICE events that will be held in the country in the coming years, such as the FIABCI (International Real Estate Federation) World Congress in 2020; the International Congress on Sustainable Tourism in Fragile Ecosystems in 2020; the Ecotourism Travel Mart for 2020 and 2021;

the International Conference in Data Protection and Privacy Commissioners Conference in 2021; and the Kiwanis International Convention in 2022. He noted the Philippines has already proven its expertise in organizing and hosting large-scale conferences and meetings, making it an ideal destination for MICE. For one, the country hosted the Asean Summit in April and November 2017, and the Asia-Pacific Economic Cooperation (Apec) Summit in November 2015, the Asian Development Bank Annual

We are more than capable to mount large-scale events and conferences. Across Luzon, Visayas and Mindanao, you will find well-equipped convention centers that are strategically located around the vicinity of international and domestic airports; international chains and local five-star hotels providing convenient service for tourists.”—Bengzon Meeting of the Board of Governors in 2012 and 2018, and the like, which had participants of over 1,000 people. This was proof, he said, that “we are more than capable to mount large-scale events and conferences. Across Luzon, Visayas and Mindanao, you will find wellequipped convention centers that are strategically located around the vicinity of international and domestic airports; international chains and local five-star hotels providing convenient service for tourists.” Bengzon noted that these key areas offer not only the best tour-

ism products and services with vast opportunities for business, but also have “consistently growing local economies which have attracted investors to build hotel and meeting facilities. Complementing this are existing advantages such as an English-speaking work force, world-class facilities and ease of doing business in the country.” “This feat would not have been possible,” he stressed “without the concerted efforts of both the DOT and the Tourism Promotions Board. Both have been tirelessly coordinating and working closely with industry stakeholders to

Term deposit auction shows banks’ sustained interest to place excess liquidity with BSP By Bianca Cuaresma

ECs reduce system loss from 11.57% to 10.38% in first semester–NEA

@BcuaresmaBM

emand was sustained in the Bangko Sentral ng Pilipinas’s (BSP) term deposit auction on Wednesday, showing oversubscription in two out of the three offered tenors for the week. Results of the Central Bank’s term deposit auction for the week showed sustained interest among banks to place their excess liquidity with the BSP. In particular, bids for the seven-day term deposits were still oversubscribed by about P189 million as the total tenders hit P30.189 billion during the week. The volume offered was P30 billion. This was, however, lower compared to the P32.563 billion tenders in the previous week. The same is true for the 14-day term deposits, as the mediumterm offering remain oversubscribed during the week with total tenders hitting P22.925 billion. The volume offered was P20 billion for the week. This was, however, a decline from the P30.34 billion bids in the previous week as the volume of offering was larger at P30 billion in the previous week. For 28-day term deposits, the total tenders hit P28.979 billion on Wednesday, falling into the under subscription territory,

further develop the Philippine MICE landscape. And with the rolling out of the MICE Roadmap 2030, there will be significant improvements planned by the government in terms of policy, infrastructure, human resource and country promotion; but ultimately, our efforts would not have come to fruition without your invaluable support.” The DOT official said, aside from the MICE activities that can be held in the country, visitors can “‘experience the unique’… through experiential and immersive activities. These activities may be promoted as part of

even if the volume offered was reduced to P30 billion during the week. This week’s tenders fell from last week’s P37.686 billion. Earlier, BSP Deputy Governor Francisco Dakila said: “The TDF [Term Deposit Facility] offer at today’s auction was reduced to P80-billion [from P90 billion] allocated as follows: P30 billion, P20 billion and P30 billion for the

seven-day, 14-day and 28-day tenors, respectively. The reduction in the offer volume considered the higher cash demand expected this week due to the public holiday and the long weekend.” “There was a slight under subscription in the 28-day tenor, nevertheless, bid rates received continue to reflect healthy demand for the tenor,” he added.

The TDF is one of the BSP’s liquidity absorption facilities to management circulation in the economy. As banks bid to park funds in the BSP’s facility, the TDF effectively siphons off a part of this structural liquidity from the financial system to bring market rates closer to the BSP’s main policy rate.

incentive packages, included in official conference programs of MICE events, or even as part of a bleisure [business and leisure] trip, where delegates may extend their stay to see more of our beautiful country and learn about our culture and our people.” There were 115 participants in this year’s MICECONnect, which was held over two days at the grand ballroom of the Marriott Manila. Some 40 delegates later joined postevent familiarization tours to Palawan, Boracay, Cebu/Bohol, Davao, Bacolod/Iloilo, Tagaytay/Batangas. MICECONnect 2020 will be held in Davao City. Under the MICE Roadmap 2030, the DOT targets an increase in the gross value added of the MICE industry to P1.4 bi l l ion in 2030 f rom P415. 3 million in 2013; raise the GVA of MICE to 0.01 percent of the gross domestic product from 0.04 percent; improve the delegate expenditure per meeting to 19 percent, from 5.4 percent in 2016; and lift MICE revenues to some P25 billion by 2030 from P4.6 billion in 2016. The DOT also aims to increase the total number of usable space for exhibitions to over 170,895 square meters by 2030 from some 71,000 sq m in 2017, and targets an annual 3-percent rise in MICE arrivals, although the plan failed to give a baseline number of arrivals in 2016. The DOT recently launched its Meet You in Iloilo campaign, positioning Iloilo as a major MICE destination. It is investing some P20 million for 2019-2020 to promote the Iloilo MICE industry through road shows, travel markets, hosting, consultancy services, etc. Along with the local government investment and the private-sector resources, the campaign will likely receive a P50-million injection of funds. (See, “Public-private funding for Iloilo MICE campaign could hit P50 million,” in the BusinessMirror, October 11, 2019.)

lectric cooperatives (ECs) were able to bring down their system loss to 10.38 percent in the first semester of the year from 11.57 percent in the same period a year ago. The Energy Regulatory Commission (ERC) has set the system loss cap at 12 percent for ECs, which can be passed on to the consumers’ monthly electricity bills. The National Electrification Administration Infor mation Technology and Communication Services Department (ITCSD) reported on Wednesday that the system losses of the ECs improved by 10 percent during the period. The improvement, NEA said, resulted in a 13-percent growth in energy sales. The data showed that 96 ECs posted a within-the-cap system loss set by ERC, of which, 39 ECs registered single-digit system loss. Meanwhile, 15 ECs registered a system loss of 13 percent to 20 percent. “This is a clear indicator that electric cooperatives are fully committed and ready to compete with other power distribution utilities in the country. Lower system losses contribute to a reduction in power rates,” NEA Administrator Edgardo Masongsong said. “I hope they will strive to sustain the gains they have made, and do their utmost to further improve their services to their memberconsumer-owners and other stakeholders,” the NEA chief added. The 10 ECs that registered the

lowest system loss were Aurora Electric Cooperative Inc. at 2.03 percent; Batanes Electric Cooperative Inc. at 2.79 percent; Leyte II Electric Cooperative Inc. at 2.91 percent; South Cotabato II Electric Cooperative Inc. at 2.91 percent; and Misamis Oriental I Rural Electric Service Cooperative Inc. at 2.99 percent. The Dinagat Island Electric Cooperative Inc. posted a 3.74-percent system loss; Cebu III Electric Cooperative Inc. at 3.88 percent; Bohol I Electric Cooperative Inc. at 6.20 percent; Iloilo III Electric Cooperative Inc. at 6.27 percent; and Surigao del Sur I Electric Cooperative Inc. at 6.38 percent. In its report, NEA-ITCSD also said 14 regions registered reduction in their system losses and contributed to the decline in the overall level. This resulted to increased energy sales by 13 percent and revenues by 14 percent. Total energy sales of the ECs also improved, reaching 11,397 gigawatt hours in the first semester, up from 10,060 GWh in the same period last year. National gross revenue of the ECs grew from P98.741 billion in 2018 to P112.121 billion in 2019. The higher sales were also driven by the increased consumption of residential sector at 5,951 GWh, followed by commercial sector at 2,515 GWh, industrial sector at 1,634 GWh, public building at 588 GWh and other consumers at 709 GWh. Lenie Lectura

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House to tackle ABS-CBN franchise renewal before year-end–Cayetano By Jovee Marie N. Dela Cruz @joveemarie

MID issues between t he D ut e r t e a d ministration and A B S - C BN C or p., the leadership of the House of Representatives has vowed to hear the legislative franchise of the TV station before

the year ends. In an interview, Speaker Alan Peter Cayetano said the lawmakers will exercise fairness on the proposals extending for 25 years the franchise of ABS-CBN, which is set to expire on March 30, 2020. “There are issues with the media, but there are also challenges with social media... there are issues that we have to tackle; first

and foremost is the freedom of the press,” Cayetano said. “Maybe before the end of the year, probably the hearings will start,” he added. Currently, there are six bills filed to renew the franchise of ABS-CBN. Without giving further details, Cayetano said the House Committee on Legislative Franchises, chaired by Palawan Rep. Franz

Alvarez “needs to discuss some issues on franchise renewal” of the TV station. “Definitely, we’ll have hearings because there are issues that have to be resolved,” said Cayetano. During the 17th Congress, Alvarez’s panel failed to approve the franchise renewal. Continued on B2

WITH I.A.B.C.Manila Mayor Francisco “Isko Moreno” Domagoso addresses the regular General

Membership Meeting of the International Association of Business Communicators-Philippines on Tuesday in Makati City, and spoke on the theme “Trust and the Public Servant.” Also at the year-ender edition of the General Membership Meeting, EON President and COO, and IABC-PH Vice President Richard Arboleda presented the results of the latest Philippine Trust Index study. IABC-PH is chaired by Joe Zaldarriaga. ROY DOMINGO

Companies BusinessMirror

Thursday, October 31, 2019

DM Wenceslao’s 9-month income up 11% as residential sales pick up MUTUAL FUNDS

October 30, 2019

NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D PER SHARE RETURN* RETURN STOCK FUNDS ALFM ALFM GROWTH FUND, INC. -A 256.47 5.86% -0.38% -0.07% 1.69% ATRAM ALPHA OPPORTUNITY FUND, INC. -A 1.4918 8.64% 2.48% -0.08% 3.54% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC. -A 3.8948 3.47% -2.22% -1.96% -0.21% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP. -A 0.9494 10.34% N.A. N.A. 5.37% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC. -A 0.8692 9.02% N.A. N.A. 5.91% FIRST METRO SAVE AND LEARN EQUITY FUND,INC. -A 5.4413 9.09% 1.25% 0.32% 3.19% FIRST METRO SAVE AND LEARN PHILIPPINE INDEX FUND, INC. -A,6 0.8758 9.68% -2.74% N.A. 4.67% MBG EQUITY INVESTMENT FUND, INC. -A 113.7 3.97% N.A. N.A. -2.12% PAMI EQUITY INDEX FUND, INC. -A 52.4962 11.69% 1.86% N.A. 6.65% PHILAM STRATEGIC GROWTH FUND, INC. -A 545.29 11.48% 0.76% 0.39% 5.94% PHILEQUITY DIVIDEND YIELD FUND, INC. -A 1.3198 9.04% 1.74% 1.49% 5.25% PHILEQUITY FUND, INC. -A 38.8503 10.2% 2.6% 1.44% 6.05% PHILEQUITY MSCI PHILIPPINE INDEX FUND, INC. -A,1 1.0424 N.A. N.A. N.A. N.A. PHILEQUITY PSE INDEX FUND INC. -A 5.3385 12.95% 2.65% 2.41% 7.66% PHILIPPINE STOCK INDEX FUND CORP. -A 891.37 12.96% 2.56% 2.35% 7.6% SOLDIVO STRATEGIC GROWTH FUND, INC. -A 0.8984 9.51% 0.55% N.A. 4.47% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC. -A 4.3225 10.97% 2.18% 1.52% 6.49% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC. -A 1.0237 12.51% 2.44% N.A. 7.27% UNITED FUND, INC. -A 3.7261 11.35% 3.78% 3.03% 6.44% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC. -A,C 119.5065 13.25% 3.31% 3.38% 7.91% ATRAM ASIAPLUS EQUITY FUND, INC. -B $0.9818 8.04% 3.02% -0.2% 5.67% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC. -A $1.3092 11.41% 8.14% N.A. 18.46% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC. -A 1.5977 -0.79% -3.13% -3.47% -3.24% ATRAM PHILIPPINE BALANCED FUND, INC. -A 2.265 5.4% -0.73% -0.38% 2.53% FIRST METRO SAVE AND LEARN BALANCED FUND INC. -A 2.6606 8.71% 1.55% -0.89% 4.62% FIRST METRO SAVE AND LEARN F.O.C.C.U.S. DYNAMIC FUND, INC. -A,5 0.2368 N.A. N.A. N.A. N.A. GREPALIFE BALANCED FUND CORPORATION -A 1.3521 6.04% N.A. N.A. 3.66% NCM MUTUAL FUND OF THE PHILS., INC. -A 1.9724 9.88% 1.91% 1.4% 7.02% PAMI HORIZON FUND, INC. -A 3.8239 12.77% 0.93% 0.68% 8.35% PHILAM FUND, INC. -A 17.1164 12.02% 0.94% 0.59% 7.6% SOLIDARITAS FUND, INC. -A 2.1563 7.44% 1.18% 1.45% 4.21% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC. -A 3.9184 10.37% 2.04% 1.15% 7.32% SUN LIFE PROSPERITY ACHIEVER FUND 2028, INC. -A,D,2 1.0283 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY ACHIEVER FUND 2038, INC. -A,D,2 1.0164 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY ACHIEVER FUND 2048, INC. -A,D,2 1.0134 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY DYNAMIC FUND, INC. -A 0.9941 10.62% 1.56% 0.52% 7.86% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC. -A $0.03811 10.18% 2.12% 2.03% 7.96% PAMI ASIA BALANCED FUND, INC. -A $0.9992 9.41% 2.49% 0.05% 9.36% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC. -A $3.7829 9.67% 5.95% 3.54% 14.34% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC. -A,7 $1.108 7.74% 3.39% N.A. 10.25% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC. -A 355.54 4.14% 2.53% 2.28% 3.51% ATRAM CORPORATE BOND FUND, INC. -A 1.9227 3.95% 0.17% -0.1% 3.42% COCOLIFE FIXED INCOME FUND, INC. -A 3.0938 4.97% 5.23% 5.21% 3.95% EKKLESIA MUTUAL FUND INC. -A 2.2149 4.6% 1.85% 1.95% 4.02% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC. -A 2.345 5.99% 1.77% 1.53% 6.34% GREPALIFE FIXED INCOME FUND CORP. -A P 1.6087 2.41% 0.09% -0.05% 2.83% PHILAM BOND FUND, INC. -A 4.3315 13.94% 1.61% 1.65% 10.5% PHILEQUITY PESO BOND FUND, INC. -A 3.7487 8.21% 2.64% 1.52% 6.58% SOLDIVO BOND FUND, INC. -A 0.9551 9.27% 0.54% N.A. 7.17% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC. -A 3.0496 10.8% 3.73% 2.47% 10.26% SUN LIFE PROSPERITY GS FUND, INC. -A 1.6869 10.31% 3.17% 2.07% 9.55% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. -A $465.98 4.45% 2.07% 2.81% 3.92% ALFM EURO BOND FUND, INC. -A Є219.79 3.06% 1.26% 1.44% 3.35% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC. -B $1.2021 7.26% 2.29% 2.52% 6.79% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC. -A $0.0258 4.03% 1.06% 1.37% 4.03% GREPALIFE DOLLAR BOND FUND CORP. -A $1.7114 1.27% -1.4% 0.28% 1.25% PAMI GLOBAL BOND FUND, INC -A $1.0939 6.72% -0.08% -1.28% 5.56% PHILAM DOLLAR BOND FUND, INC. -A $2.3958 12.46% 2.05% 3.14% 10.36% PHILEQUITY DOLLAR INCOME FUND INC. -A $0.0602582 5.91% 2.05% 2.03% 5.72% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC. -A $3.1628 9.87% 1.57% 2.67% 10.12% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC. -A 125.1 4.21% 2.7% 2.12% 3.49% FIRST METRO SAVE AND LEARN MONEY MARKET FUND, INC. -A,3 1.0267 N.A. N.A. N.A. N.A. PHILAM MANAGED INCOME FUND, INC. -A 1.246 6.16% 2.5% 1.56% 5.42% SUN LIFE PROSPERITY MONEY MARKET FUND, INC. -A 1.2583 3.85% 2.83% 2.24% 3.21% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC. -A $1.0344 2.14% N.A. N.A. 1.82% A - NAVPS AS OF THE PREVIOUS BANKING DAY. B - NAVPS AS OF TWO BANKING DAYS AGO. C - LISTED IN THE PSE. D - IN NET ASSET VALUE PER UNIT (NAVPU). 1 - LAUNCH DATE IS JANUARY 3, 2019. 2 - LAUNCH DATE IS JANUARY 28, 2019. 3 - LAUNCH DATE IS FEBRUARY 1, 2019. 4 - LAUNCH DATE IS AUGUST 1, 2019. 5 - LAUNCH DATE IS SEPTEMBER 28, 2019. 6 - RENAMING WAS APPROVED BY THE SEC LAST OCTOBER 12, 2018 (FORMERLY, ONE WEALTHY NATION FUND, INC.). 7 - ADJUSTED DUE TO STOCK DIVIDEND ISSUANCE LAST OCTOBER 9, 2019. "While we endeavor to keep the information accurate, the Philippine Investment Funds Association (PIFA) and its members make no warranties as to the correctness of the newspaper’s publication and assume no liability or responsibility for any error or omissions. You may visit http://www. pifa. com.ph to see the latest NAVPS/NAVPU."

By VG Cabuag

@villygc

M Wenceslao and Associates Inc., a construction firm that is slowly expanding into property development, said its attributable net income reached P1.65 billion for the nine months of the year ending September, up 11 percent from last year’s P1.48 billion. Revenues rose 21 percent to P1.94 billion from last year’s P1.68 billion, as sales in the residential segment increased. Of the total revenues, P1.47 billion or 76 percent were recurring income, including rentals from land, buildings and other revenues such as common-use service area fees. By business segment, leasing of land increased 2 percent to P736.8 million, while rentals of buildings and other revenues related to leasing grew 7 percent and 10 percent to P594.3 million and P142.2 million, respectively. Sale of residential condominium units grew by almost six times to P422.7 million. “On the operations front, we are on pace to hand over our first residential project, Pixel Residences, to customers as scheduled. We also continue to market Mid Park Towers which is benefiting from the increased activity as nearby businesses open,” Delfin Angelo C. Wenceslao, the company’s CEO, said. As of October 30, total presales of Mid Park Towers was higher at P5.8 billion from P4.8 billion in July. The

office segment showed sustained growth, having a consolidated occupancy of 98 percent, it said. In addition to the company’s properties, Aseana City is witnessing an increased level of ongoing developments in the area. Ayala Malls Bay Area recently launched its flagship mall and multimodal transportation hub. Once fully completed, it will have an aggregate of 400,000 square meters of gross floor area including a 10-level office space and 350-room Seda Hotel. Sequoia Hotel, a 12-story businessman’s hotel with 175 guest rooms, also started operating, while a Nissan car dealership started site preparation. “These new developments underpin our vision to create a vibrant next-generation central business district that incorporates tourism and gaming concepts, recreational options and retail offerings,” he said. The company recently completed the sale of a 2,202 square meters of land in Aseana City for a total consideration of P935.85 million, exclusive of value-added tax.

Geopolitical tensions erode IMI’s income in 9 months

YALA-LED Integrated Micro-Electronics Inc. on Wednesday said its net income plunged to just $451 thousand during the three quarters of the year as its main market segments saw a steep slowdown, compounded by the geopolitical issues involving the trade war between US and China. IMI’s income for the period ending September was down 98 percent from last year’s $41.4- million profit. The company said it had a provision for nonrecurring deferred expenses of $5.2 million, which almost eroded its profit for the year. Consolidated revenues reached $939.6 million from January to September, some 7 percent lower than the last year. It said the lingering contraction in the automotive space, particularly in China, has brought down customer demand fore-

casts that led to challenged margins as new manufacturing lines are temporarily underutilized. Arthur Tan, the company’s CEO, said IMI will continue to endure the cyclical nature of the industry. “Despite market challenges and geopolitical uncertainties, technology and electronics remain to be the biggest drivers in the future of society. We remain committed to our long-term strategy of establishing ourselves in emerging technology platforms,” he said. “IMI is deeply embedded in the world’s key megatrends: mobility, smart energy and connectivity. I am confident that we have the right strategies in place, and that our experience, technological flexibility, and wide global footprint will enable us to seize the many opportunities ahead despite the headwinds affecting the entire industry,” Tan said. VG Cabuag

House to tackle ABS-CBN franchise renewal before year-end–Cayetano Continued from B1

According to Cayetano, it is Congress’s obligation to exercise fairness and “to bring out those real issues and to give the other side the opportunity to respond and determine who is right.” For her part, Batangas Rep. Vilma Santos, one of the authors of the bill renewing the franchise of ABS-CBN, said despite the growing popularity of social media, television still remains a preferred mass medium in provinces and other far-flung areas. “ABS-CBN has remained steadfast in its commitment to reach out to as many Filipinos as possible by delivering their quality core programs closer to our countrymen by taking advantage of

emerging broadcast technologies,” Santos said. Another author of the measure, Laguna Rep. Sol Aragones said while information may be taken or received from various sources, broadcasting is still the highest, widest and fastest medium from which Filipinos at home or overseas get their information. “In acknowledgement of the former and present contributions of ABS-CBN and its thousands of personnel in nation-building, the immediate renewal of its original franchise, which expires on March 30, 2020, is seriously and sincerely recommended, to ensure the continues and uninterrupted and improved and expanded, delivery of services to the Filipino people,” Aragones said.

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PSE STOCK QUOTATIONS

October 30, 2019

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

ASIA UNITED BDO UNIBANK BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PB BANK PBCOM PHIL NATL BANK PSBANK PHILTRUST RCBC SECURITY BANK UNION BANK COL FINANCIAL FERRONOUX HLDG NTL REINSURANCE PHIL STOCK EXCH SUN LIFE

54.55 155.5 99.05 25.2 12.28 67.45 12.7 20.6 43.85 57.6 117.4 25.65 205 59.9 18.44 4.53 0.89 173 1840

55 155.7 99.9 25.35 12.38 67.5 13.1 21.4 43.9 57.85 129.9 25.8 205.6 60.05 18.6 4.57 0.93 173.9 1865

55.75 153.8 99 25.4 12.26 67.4 12.98 21 43.95 58 117.4 26 204 60.1 18.5 4.52 0.94 174 1850

55.75 156 99.9 25.45 12.46 67.55 13.1 21 44 58 117.4 26.4 205.6 60.1 18.5 4.57 0.94 176.1 1850

55 151.1 98.5 25.1 12.26 66.75 12.98 20.6 43.9 57.6 117.4 25.65 201 59.9 18.4 4.48 0.88 173 1840

55 155.7 99.9 25.35 12.28 67.45 13.1 20.6 43.9 57.75 117.4 25.65 205 60.05 18.4 4.57 0.89 173 1840

3000 2074280 2473850 71800 896000 5858240 41600 300 72000 3130 70 4800 440450 17450 89500 341000 179000 650 150

165750 318992207 246171936.5 1815265 11059658 394473348 542110 6220 3162225 180828.5 8218 123685 90070154 1047565 1650000 1535540 161350 113131 276750

INDUSTRIAL

94062.5 147749142 87454957.5 582265 2068304 104376979.5 -558085 -110797.5 -41265 28842140 -827784 -130500 -

AC ENERGY ALSONS CONS ABOITIZ POWER BASIC ENERGY FIRST GEN FIRST PHIL HLDG MERALCO MANILA WATER PETRON PETROENERGY PHX PETROLEUM PILIPINAS SHELL SPC POWER AGRINURTURE AXELUM BOGO MEDELLIN CENTURY FOOD DEL MONTE DNL INDUS EMPERADOR SMC FOODANDBEV ALLIANCE SELECT GINEBRA JOLLIBEE LIBERTY FLOUR MACAY HLDG MAXS GROUP PEPSI COLA SHAKEYS PIZZA ROXAS AND CO RFM CORP UNIV ROBINA VITARICH CONCRETE A CEMEX HLDG EAGLE CEMENT EEI CORP HOLCIM MEGAWIDE PHINMA TKC METALS VULCAN INDL CHEMPHIL CROWN ASIA EUROMED PRYCE CORP CONCEPCION GREENERGY INTEGRATED MICR IONICS SFA SEMICON CIRTEK HLDG

2.8 1.28 38.8 0.242 24.9 78.95 346 19.84 5.02 4.11 10.82 33.8 7.33 12.9 3.81 90.75 14.86 5.35 8.53 6.99 90.5 0.67 47.5 231 48.5 9.53 13.2 1.71 11.2 1.91 5.36 150.6 1.31 65.4 2.54 15.14 10.3 14.42 17.74 9.12 1.07 1.12 113.1 2.1 1.59 5.4 30.4 2.27 7.91 1.46 0.98 7.99

2.81 1.29 38.9 0.249 25.4 79 347.4 19.9 5.03 4.38 10.98 33.9 7.35 13 3.83 98.95 14.94 5.59 8.57 7 92.45 0.68 48.45 232 49.95 10 13.32 1.72 11.22 1.92 5.38 151 1.32 68.6 2.55 15.4 10.34 14.6 17.78 9.39 1.1 1.14 119.9 2.11 1.71 5.41 31.95 2.29 7.92 1.49 1.03 8

2.79 1.29 39 0.249 25.4 79.5 350 19.92 5.04 4.28 10.82 33.9 7.35 13.2 3.69 96 15.18 5.5 8.6 7 91.2 0.67 47.4 231.8 48.05 8.72 13.2 1.74 11.2 1.86 5.42 153 1.28 65.35 2.52 15.14 10.3 14.28 17.78 9.39 1.12 1.12 113 2.1 1.59 5.4 32 2.34 7.92 1.46 1 7.9

2.82 1.29 39 0.25 25.9 79.5 350 20 5.06 4.39 10.98 34 7.35 13.56 3.91 98.95 15.2 5.5 8.61 7 92.45 0.68 48.5 232 48.05 10.48 13.36 1.74 11.48 1.98 5.42 153 1.32 68.65 2.55 15.4 10.36 14.6 17.78 9.39 1.12 1.14 113.1 2.1 1.59 5.41 32 2.34 7.92 1.53 1.03 8.09

2.79 1.28 38.05 0.245 24.9 78.9 346 19.84 5 4.11 10.82 33.75 7.34 12.9 3.68 96 14.86 5.32 8.53 6.99 89.6 0.67 47.2 227.8 47.2 8.72 13.18 1.7 11.2 1.83 5.36 150.9 1.26 65.35 2.52 15.04 10.2 14.28 17.52 9.36 1.07 1.12 113 2.1 1.59 5.4 31.9 2.25 7.9 1.45 0.99 7.86

2.8 1.29 38.8 0.25 24.9 79 346 19.84 5.03 4.38 10.98 33.9 7.35 13 3.81 98.95 14.86 5.35 8.53 7 92.45 0.68 48.45 232 48 10 13.2 1.72 11.2 1.91 5.38 151 1.32 65.35 2.54 15.3 10.3 14.6 17.78 9.39 1.07 1.14 113.1 2.1 1.59 5.4 31.95 2.29 7.92 1.48 0.99 8

3121000 154000 1166400 360000 2823200 167050 136490 129900 527400 101000 21900 835800 72300 461100 8169000 40 314700 6300 2511600 728300 266290 87000 27500 329130 1380 68400 23500 751000 24300 1668000 14000 2012150 10628000 210 2088000 184700 490100 290300 295800 7500 225000 943000 60 73000 1000 112700 519600 13166000 317800 704000 223000 211500

8750030 197970 45118910 88910 71748415 13198114 47394914 2584460 2647008 428030 239054 28298430 531055 6070058 31290670 3869.5 4713774 33925 21514340 5093387 24474760 58340 1326505 75828766 65646.5 672259 311146 1283540 272464 3163930 75440 304323214 13818190 14053.5 5297260 2826314 5045576 4227694 5238090 70302 242040 1058260 6782 153300 1590 608597 16625300 30215020 2515759 1043060 225640 1690297

-281000 -11447710 -7868215 -5960773.5 -6384388 -1003172 -536519.0002 217100 336100 282038 3554480 -1759150 10193293 -3645062 -592448 752095 33028974 131980 302870 -11858 -20355364 -1490250 -112860 1595232 -3047808 -4143002 -412170 1798520 1179083 -84858.9997

ABACORE CAPITAL ASIABEST GROUP AYALA CORP ABOITIZ EQUITY ALLIANCE GLOBAL AYALA LAND LOG ANSCOR ANGLO PHIL HLDG ATN HLDG A COSCO CAPITAL DMCI HLDG FILINVEST DEV GT CAPITAL HOUSE OF INV JG SUMMIT KEPPEL HLDG A KEPPEL HLDG B LODESTAR LOPEZ HLDG LT GROUP MABUHAY HLDG METRO PAC INV PACIFICA PRIME MEDIA SYNERGY GRID SM INVESTMENTS SAN MIGUEL CORP SOC RESOURCES TOP FRONTIER WELLEX INDUS ZEUS HLDG

0.81 12.8 864 54.6 11.6 3.59 6.52 0.72 1.12 6.75 8.25 13.16 893.5 5.62 76.2 5.09 5.26 0.49 4.31 13.2 0.57 4.79 0.037 1.44 395 1021 173 0.84 216 0.217 0.22

0.82 13.16 865 54.95 11.62 3.63 6.87 0.76 1.13 6.85 8.27 13.4 895 5.99 76.25 5.54 6.94 0.51 4.34 13.3 0.6 4.8 0.038 1.46 400 1027 173.9 0.87 218.6 0.226 0.225

0.84 13.5 874 55 11.88 3.66 6.89 0.72 1.12 6.88 8.18 13.1 888 5.62 76 5.11 5.9 0.51 4.33 13.34 0.57 4.79 0.037 1.42 400 1030 172.7 0.84 218 0.217 0.22

0.85 13.58 874 55 11.88 3.66 6.89 0.77 1.13 6.88 8.27 13.4 896.5 5.62 76.25 5.11 5.9 0.51 4.35 13.44 0.6 4.8 0.038 1.46 400 1030 174 0.84 218 0.217 0.22

0.81 12.78 858 54.5 11.6 3.58 6.52 0.72 1.11 6.78 8.17 13.1 873.5 5.62 75.55 5.09 5.1 0.5 4.3 13.18 0.57 4.77 0.037 1.42 400 1010 170 0.84 216 0.217 0.22

0.81 13.16 865 54.95 11.6 3.63 6.52 0.76 1.13 6.85 8.27 13.4 893.5 5.62 76.25 5.09 5.1 0.51 4.31 13.3 0.6 4.8 0.038 1.46 400 1027 173 0.84 216 0.217 0.22

21033000 13700 290370 593500 10920500 769000 3700 1199000 259000 2540800 10678100 6800 67440 2000 987530 3800 199000 4000 816000 1493600 4000 20834000 6800000 122000 10 696095 132990 12000 400370 210000 320000

17302680 179696 250809360 32585717 127756594 2778240 24547 886030 289500 17400205 87728290 89346 60184645 11240 75232811.5 19356 1016542 2020 3528350 19772920 2310 99810900 251700 176080 4000 709664245 22965989 10080 87280206 45570 70400

-1925270 -53265570 -4173883 -27355802 62180 1284833 -54979946 -1316 16409730 14746495 -2769530 13491874 -41749110 506641640 -6837642 4320 -

HOLDING & FRIMS

PROPERTY

ARTHALAND CORP 0.86 0.88 0.88 0.88 0.85 0.88 1272000 1090960 21500 AYALA LAND 49 49.55 49 49.55 48.8 49.55 5324000 262516200 50155250 ARANETA PROP 1.73 1.78 1.78 1.78 1.78 1.78 1000 1780 BELLE CORP 1.99 2 2.01 2.01 1.99 2 349000 697850 -588000 A BROWN 0.8 0.83 0.83 0.83 0.8 0.8 673000 543460 CITYLAND DEVT 0.84 0.87 0.87 0.87 0.87 0.87 1000 870 CROWN EQUITIES 0.201 0.206 0.201 0.21 0.201 0.201 2630000 533690 CEB LANDMASTERS 4.5 4.51 4.5 4.53 4.5 4.5 503000 2266640 -85310.0001 CENTURY PROP 0.59 0.6 0.58 0.6 0.58 0.6 13763000 8111730 -244310 CYBER BAY 0.465 0.47 0.465 0.47 0.465 0.47 300000 139950 DOUBLEDRAGON 20.25 20.4 20.45 20.5 20.2 20.25 307200 6244405 1577450 DM WENCESLAO 10.24 10.28 10.2 10.24 10.2 10.24 118700 1211900 1061639.9997 EMPIRE EAST 0.485 0.49 0.5 0.51 0.48 0.49 5962000 2914560 -63060 FILINVEST LAND 1.6 1.61 1.61 1.61 1.59 1.61 7280000 11663320 3572230 GLOBAL ESTATE 1.24 1.26 1.27 1.27 1.26 1.26 310000 392990 8990 HLDG 14.62 14.64 14.62 14.7 14.62 14.62 83300 1218314 -550054 PHIL INFRADEV 1.52 1.53 1.53 1.59 1.52 1.53 3472000 5363180 319810 MEGAWORLD 4.82 4.83 4.84 4.84 4.8 4.82 10775000 51,917,470( 8,824,200.0001) MRC ALLIED 0.29 0.295 0.29 0.295 0.285 0.295 7390000 2145500 17400 PHIL ESTATES 0.41 0.435 0.41 0.41 0.41 0.41 10000 4100 PRIMEX CORP 2.03 2.04 2.02 2.03 2.01 2.03 98000 197900 ROBINSONS LAND 25.5 25.65 25.8 25.8 25.15 25.5 1088400 27752735 -9591545 PHIL REALTY 0.375 0.385 0.38 0.38 0.38 0.38 20000 7600 ROCKWELL 2.27 2.3 2.3 2.3 2.3 2.3 2000 4600 SHANG PROP 3.21 3.28 3.21 3.28 3.21 3.28 7000 22590 STA LUCIA LAND 2.61 2.62 2.65 2.65 2.6 2.62 870000 2271080 -21360 SM PRIME HLDG 39 39.05 38.95 39.05 38.7 39.05 10102800 393399930 9940930 VISTAMALLS 5.43 5.51 5.32 5.53 5.32 5.5 22300 121271 VISTA LAND 7.67 7.73 7.68 7.73 7.64 7.73 4521500 34791680 -12202279 SERVICES ABS CBN 18.7 18.8 18.98 18.98 18.66 18.8 78100 1464966 GMA NETWORK 5.22 5.26 5.26 5.26 5.2 5.26 18400 96590 MANILA BULLETIN 0.405 0.415 0.42 0.42 0.41 0.41 70000 28800 MLA BRDCASTING 12.5 13.5 12.5 13.5 12.5 13.5 300 3950 GLOBE TELECOM 1835 1844 1843 1850 1835 1835 38745 71324225 -13797665 PLDT 1090 1095 1106 1106 1089 1090 103425 112990455 -14975170 DFNN INC 5.32 5.5 5.3 5.3 5.3 5.3 23000 121900 -106000 IMPERIAL 1.7 1.9 1.74 1.75 1.73 1.73 73000 126640 ISLAND INFO 0.106 0.11 0.107 0.11 0.106 0.11 120000 12840 ISM COMM 4.77 4.78 4.77 4.8 4.73 4.78 1720000 8180670 75660 JACKSTONES 2.31 2.47 2.32 2.32 2.28 2.31 31000 71430 NOW CORP 3.53 3.54 3.39 3.57 3.35 3.53 12150000 42567540 -16270 TRANSPACIFIC BR 0.32 0.325 0.32 0.32 0.315 0.32 2340000 747250 PHILWEB 2.99 3.03 3.03 3.04 2.99 3 554000 1661450 -131850 2GO GROUP 10.52 11 10.7 11 10.4 11 23400 252112 ASIAN TERMINALS 18.7 19.3 17.24 19.82 17.24 19.48 152900 2883232 1920915.9997 CHELSEA 6.62 6.65 6.69 6.7 6.61 6.65 562500 3734519 -86723 CEBU AIR 92.35 92.7 92.85 93.05 92 92.35 214680 19895915 -10226061 INTL CONTAINER 122 122.1 123.5 123.5 121.8 122.1 934550 114161970 -36614692 LBC EXPRESS 13.6 14.74 13.52 13.6 13.52 13.6 800 10858 -6800 LORENZO SHIPPNG 0.91 0.93 0.94 0.94 0.91 0.91 186000 169370 MACROASIA 19.04 19.06 18.8 19.04 18.7 19.04 472700 8953002 -1878 METROALLIANCE A 1.06 1.15 1.07 1.07 1.06 1.06 41000 43490 PAL HLDG 7.91 8.27 7.9 8.27 7.9 8.27 9900 80103 -6470 HARBOR STAR 1.58 1.6 1.58 1.6 1.56 1.58 568000 896200 ACESITE HOTEL 1.58 1.68 1.64 1.69 1.62 1.69 129000 214460 WATERFRONT 0.67 0.68 0.66 0.68 0.66 0.67 133000 88930 -2680 STI HLDG 0.68 0.69 0.69 0.69 0.67 0.68 3436000 2313830 -1681710 BERJAYA 2.38 2.45 2.34 2.49 2.34 2.45 167000 407190 BLOOMBERRY 10.12 10.14 10.14 10.18 10.04 10.14 8696100 88,064,282( 80,149,690.0003) PACIFIC ONLINE 2.7 2.76 2.73 2.73 2.71 2.71 59000 160290 5420 LEISURE AND RES 3.08 3.09 3 3.12 3 3.08 393000 1197670 -3060 MANILA JOCKEY 3.35 3.42 3.4 3.4 3.4 3.4 8000 27200 PH RESORTS GRP 4.88 5.19 5.15 5.19 5.15 5.19 2000 10324 PREMIUM LEISURE 0.67 0.68 0.69 0.69 0.68 0.68 321000 218300 -8160 ALLHOME 11.48 11.5 11.5 11.5 11.48 11.5 12845700 147651446 3463860 METRO RETAIL 2.42 2.44 2.45 2.45 2.4 2.44 243000 584170 2400 PUREGOLD 40 40.05 40.95 40.95 39.6 40 1340900 53627280 333379.9999 ROBINSONS RTL 75.9 76 77.1 77.1 75.9 76 1262810 96444042 -14951555 PHIL SEVEN CORP 144 144.9 144 144 144 144 490 70560 63360 SSI GROUP 2.59 2.6 2.63 2.64 2.56 2.6 1691000 4362670 -715360 WILCON DEPOT 16.52 16.86 16.98 16.98 16.52 16.52 351300 5864022 1099956 APC GROUP 0.52 0.53 0.49 0.53 0.49 0.52 19980000 10229600 -111400 EASYCALL 9.04 9.1 9.06 9.1 9.05 9.1 12300 111385 GOLDEN BRIA 425 430 430 430 425.2 430 210 89904 PRMIERE HORIZON 0.495 0.5 0.485 0.5 0.48 0.5 6220000 3057650 -65550 SBS PHIL CORP 9.05 9.35 8.92 9.05 8.92 9.05 42200 378559 MINING & OIL ATOK 12.3 12.34 12.02 12.5 12 12.36 14400 173586 APEX MINING 1.13 1.14 1.15 1.15 1.14 1.14 891000 1019890 -208149.9999 ABRA MINING 0.0017 0.0018 0.0017 0.0018 0.0017 0.0018 21000000 36000 ATLAS MINING 2.56 2.69 2.6 2.7 2.6 2.7 41000 108750 BENGUET A 1.12 1.2 1.12 1.12 1.12 1.12 22000 24640 DIZON MINES 7.68 7.83 7.82 7.85 7.68 7.85 900 6988 FERRONICKEL 1.88 1.89 1.83 1.92 1.78 1.88 67237000 124798540 45835120 GEOGRACE 0.206 0.21 0.214 0.214 0.206 0.206 30000 6260 LEPANTO A 0.104 0.106 0.105 0.105 0.104 0.104 1090000 113380 LEPANTO B 0.106 0.108 0.108 0.108 0.108 0.108 270000 29160 -29160 MANILA MINING A 0.0091 0.0093 0.0091 0.0091 0.0091 0.0091 21000000 191100 MARCVENTURES 1.17 1.19 1.21 1.21 1.13 1.17 319000 377180 NIHAO 1.04 1.07 1.07 1.08 1.04 1.07 60000 64040 NICKEL ASIA 4.07 4.08 4.1 4.15 4 4.07 12593000 51,320,230( 10,425,879.9996) OMICO CORP 0.475 0.56 0.475 0.475 0.475 0.475 150000 71250 4750 ORNTL PENINSULA 0.84 0.87 0.89 0.89 0.84 0.87 141000 122640 PX MINING 3.53 3.55 3.57 3.57 3.53 3.55 121000 429070 SEMIRARA MINING 23.1 23.35 23.2 23.35 23.05 23.35 583000 13559735 6636635 UNITED PARAGON 0.0058 0.0063 0.0058 0.0063 0.0058 0.0063 12000000 73100 ORNTL PETROL A 0.011 0.012 0.012 0.012 0.012 0.012 5000000 60000 ORNTL PETROL B 0.011 0.012 0.011 0.011 0.011 0.011 600000000 6600000 PHILODRILL 0.011 0.012 0.011 0.012 0.011 0.012 32700000 360400 PHINMA PETRO 10.6 10.68 10.62 10.86 10.5 10.68 390900 4179278 -92894 PXP ENERGY 12.6 12.64 13.6 13.7 12.6 12.6 3638700 47166016 -1284394 PREFFERED HOUSE PREF A 98.15 99.5 99.7 99.7 99.7 99.7 10 997 AC PREF B1 497.4 500 498 498 498 498 3000 1494000 ALCO PREF B 100.7 103.3 103.3 103.3 103.3 103.3 2000 206600 ALCO PREF C 101.6 105.9 101.5 101.6 101.5 101.6 5050 512580 DD PREF 100.5 101 100.5 101 100.5 100.5 91200 9165700 SMC FB PREF 2 992 998 992 992 992 992 7000 6944000 FGEN PREF G 108 109.5 109 109.5 109 109.5 25000 2731750 -1478250 GTCAP PREF B 962 971 951 951 950 950 100 95010 LR PREF 1 1.01 1 1.01 1 1.01 462000 463620 MWIDE PREF 100.9 101 101 101 100.9 101 6890 695220 PNX PREF 3A 101.1 102 102 102 102 102 10 1020 PCOR PREF 3A 1050 1051 1050 1050 1050 1050 10000 10500000 SMC PREF 2C 78 78.4 78.35 78.35 78 78 55570 4353020.5 SMC PREF 2D 75.15 75.8 74.9 75 74.9 75 21350 1601115 SMC PREF 2F 76.2 76.5 76.05 76.1 76.05 76.1 85200 6483710 -

PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR

17.76

17.8

17.76

17.8

24700

439552

WARRANTS LR WARRANT

1.52

SMALL & MEDIUM ENTERPRISES ITALPINAS 6.52 KEPWEALTH 11.4 XURPAS 0.95

1.57

1.58

1.57

1.58

9000

14140

6.67 11.46 0.97

6.59 11.24 0.94

6.7 11.64 0.96

6.5 11.24 0.93

6.67 11.46 0.96

68000 379800 5220000

447769 4370816 4958910

11400 -96000

EXHANGE TRADE FUNDS FIRST METRO ETF

119.4

-439552

120

119.8

120

119

120

4570

547803

www.businessmirror.com.ph

World Companies BusinessMirror

Thursday, October 31, 2019

Johnson & Johnson says new tests find no asbestos in recalled baby powder

ASHINGTON—Johnson & Johnson said on Tuesday that new testing of a batch of baby powder that was recently recalled did not show any traces of asbestos. Earlier this month the company recalled 33,000 bottles of its

talc powder after Food and Drug Administration testing revealed

trace amounts of the dangerous substance in a single bottle. But Johnson & Johnson said in a statement that dozens of tests by two outside firms did not detect any asbestos in the company’s product. It said the tests covered the bottle previously tested by the FDA and other samples from the same lot that was recalled. The FDA said, however, that it

AT&T says HBO Max streaming service to launch in May for $15

THIS May 14, 2014, file photo shows an AT&T logo on a store in Dedham, Mass. AT&T planned to announce details of its upcoming streaming service on Tuesday, October 29, 2019. AP PHOTO/STEVEN SENNE

T&T said on Tuesday that its HBO Max streaming service will launch in May for $15 a month, joining a crowded field. The company has said HBO Max will become the “workhorse” for its video business as cord-cutting of traditional TV expands. It hopes to migrate people who pay for HBO in different ways today to the new platform. The service grew out of AT&T’s $81-billion purchase of Time Warner, which AT&T overhauled and rechristened WarnerMedia. HBO Max will challenge Netflix alongsideDisney , Comcast and Apple. It will be the most expensive of the new services that have announced prices, which could make it challenging to expand its customer base. It is also the same price as HBO Now, the current HBO streaming service for people who don’t get the cable channel. Company officials expect existing HBO customers— those subscribing either via cable or HBO Now—to switch to HBO Max,

which will offer far more to watch. Some existing subscribers to HBO’s cable channel or HBO Now will get free access to HBO Max, AT&T said. The company said it will launch a version of HBO Max with ads in 2021, a new twist for a brand known for being ad-free. The company wants to reach 50 million subscribers in the US by 2025, and 75 million to 90 million worldwide. It expects HBO Max to be profitable starting in 2023. The service will offer movies and programs from HBO and the WarnerMedia library, including Friends, which it will pull back from Netflix. Other hits like The Big Bang Theory and South Park will also be available. It’s aiming for kids with Sesame Street and an Elmo talk show. And it will have superhero movies from DC. The service will also launch 50 original series in the first year, half targeted to younger adults and the remainder split between shows for

kids and for adults. The service won’t release a season’s worth of episodes all at once, as Netflix typically does. AT&T will bundle HBO Max with some unlimited wireless plans, as well as certain “premium” home TV and Internet plans to promote the streaming service. It will work with other cable and satellite companies to get them to offer the HBO Max service for their customers, too. It plans to invest roughly $2 billion into HBO Max in 2020 and about $1 billion annually for a few more years. (Netflix will spend $15 billion this year alone on shows and movies.) AT&T executives stressed an emphasis on quality. AT&T is looking to future-proof its video business, which has been shrinking as cord-cutting accelerates. Customers are departing its previous attempt at a new-TV tack, the online-cable substitute today known as AT&T TV Now, as AT&T sought to make it profitable and raised prices. AP

Prada agrees to take over four Milan stores in deal with co-CEO

RADA SpA will pay €66 million ($73 million) to its co-CEO to take control of four company stores in Milan, allowing the Italian fashion brand to clean up its corporate structure. The Hong Kong-listed company said it reached an agreement with cofounder Miuccia Prada Bianchi and a holding company she controls for the Milan stores, including its first-ever location that has operated since 1913. The move “will be an important step in further developing and extending the group’s brand identity,” according to a company statement. Designer Prada Bianchi has run

the Milan-based fashion house since the late 1970s with her husband and co-CEO Patrizio Bertelli. When Prada shares were floated in their 2011 Hong Kong listing, the brand’s founding Milan boutiques weren’t included in the deal as Prada Bianchi and her relatives were loath to loosen their grip on this nexus of the family’s prestige. The parent company reported €19.7 million of profit last year related to its franchise agreement for the Milan stores. Prada stock rose as much as 1 percent in early trading in Hong Kong on Wednesday. The shares have fallen more than 5 percent this year, trail-

ing the 3.6-percent gain for Hong Kong’s Hang Seng index. The Milan store agreement comes as investors have been waiting years for a turnaround at the high-end fashion house, known for its sleek handbags and sporty apparel. Earnings per share have tumbled more than 60 percent since 2014. Sales were flat for the first half of 2019 as Prada took a hit from efforts to bolster its exclusive image by limiting markdowns. The company said it also was slashing its wholesale business by half in a bid to gain greater control over its merchandise by selling more of it in Prada’s own stores. Bloomberg News

stands by its testing that found traces of asbestos. It noted that given the minuscule size of samples taken from a single bottle, different samples may yield different results. Talc is mined from mineral deposits that can be contaminated with asbestos. J&J says its powder is routinely tested to ensure there’s no asbestos.

The Johnson & Johnson recall came as the company fights thousands of lawsuits in which plaintiffs claim its baby talcum powder was contaminated with asbestos and that it caused ovarian cancer or mesothelioma, a rare cancer linked to inhaling asbestos fibers. At multiple trials, J&J’s expert witnesses have testified asbestos hasn’t been detected in the talc

in its baby powder in thousands of tests over the last 40 years. Several juries have reached multimillion-dollar verdicts against the company, nearly all of which are being appealed or have been overturned on appeal. Shares in Johnson & Johnson, which is based in New Brunswick, New Jersey, rose about 3 percent in after-hours trading Tuesday. AP

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Thursday, October 31, 2019

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Sony shutting down online-cable service PlayStation Vue

ONY is shutting down its pioneering online-cable alternative, PlayStation Vue, citing the high cost of content and the difficulty of reaching deals with networks. It launched Vue in early 2015 as a skinnier, cheaper version of cable or satellite TV delivered via the Internet. It was a test case for a TV alternative alongside Dish’s Sling TV, and, later, a slew of copycats from DirecTV, Google, Hulu and others. These services were initially heralded as the future of TV as cable cord-cutting ramped up. They offered popular TV networks for less than you’d pay a cable company. Signing up and canceling were easy, with no need for a cable guy to come to your house. But customer growth has slowed and even dropped for many of these services as prices rose and they added more channels, coming closer to their traditional TV counterparts. AT&T’s version, formerly known as DirecTV Now, today AT&T TV Now, has dropped customers for four straight quarters, losing more than 700,000 subscribers as it rolled off deep discounts. Research firm MoffettNathanson estimates the total market at about 8.4 million. There are about 86 mil-

lion traditional TV households. “The market is due for a shakeout,” MoffettNathanson’s Craig Moffett said of the online-cable substitutes, which initially charged customers less than they paid for their programming. When they raised prices, customers left. “It was a Catch-22 from the beginning. They were unrealistically priced.” Sony did not release how many customers Vue had, but it was seen as a small player. It will shut down in January. The industry’s latest hope for a successor to cable or satellite TV and a counter to Netflix has now shifted to streaming services, including new entries from Disney, Comcast and AT&T. Apple’s version launches Friday. Increasing competition for people’s dollars from all those services will put more pressure on the onlinecable services, said Pivotal Research’s Jeff Wlodarczak. “The only way to innovate in pay TV is to try to follow Netflix,” Wlodarczak said. “You can’t innovate in pay TV. It’s too firmly ensconced.” AP

IN this June 14, 2018, file photo, people stand online next to the PlayStation booth at the 24th Electronic Entertainment Expo E3 at the Los Angeles Convention Center. Sony is shutting down its pioneering online-cable alternative, PlayStation Vue, citing the high costs of content and the difficulty of network deals. AP PHOTO/DAMIAN DOVARGANES

Delta’s new Terminal C opens at New York LaGuardia Airport

EW YORK—Delta Air Lines’ new Terminal C is opening at New York’s LaGuardia Airport, part of an $8 billion project to modernize the entire facility. Democratic Gov. Andrew Cuomo joined Delta CEO Ed Bastian and other officials for a ribbon-cutting ceremony on Tuesday. Seven new gates will begin operating next Monday. The terminal will eventually have 37 gates across four concourses. Last December, a new concourse opened in LaGuardia’s Terminal

B, which serves American, United, Southwest and Air Canada. Cuomo said the progress contradicts naysayers who thought it would be impossible to rebuild the airport while still using it. Old facilities are being demolished only as new ones are completed. Other planned improvements include more tarmac space to reduce gate delays, restaurants and other amenities, new roads and rail service between LaGuardia and midtown Manhattan. The new Delta terminal will have

technology that helps pilots park their planes and automatically positions passenger boarding bridges. The facility is powered by a Con Edison substation, with major electrical equipment housed on the upper level to protect against flooding if there’s a major storm. Another feature is a system that makes ice at night, when energy demand is lower, and uses it to help cool the building during hot summer days. About 31 million passengers are expected to use LaGuardia this year. AP

Resurgence in Barbie sales helps lift Mattel’s Q3 results

E W YOR K— M at te l Inc., helped by the resurgence of Barbie and other iconic toys, on Tuesday reported third-quarter results that handily beat ana lysts’ forecasts and offered evidence that its multiyear turnaround is gaining momentum. Its stock soared 19 percent in after-market trading on Tuesday. Mattel said that it earned $70.6 million, or 20 cents per share, for the three-month period ended September 30. That compares with $6.3 million, or 2 cents per share, in the year-ago period. Earnings, adjusted for restructuring costs, were 26 cents per share. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 8 cents per share. The El Segundo, Californiabased toy maker posted revenue of $1.48 billion in the period, a 3-percent increase from $1.44 billion in the year-ago period. Five analysts surveyed by Zacks expected $1.42 billion. Barbie’s gross sales rose 10 percent. Mattel has been refashion-

ing the Barbie doll assortments to include different skin tones and body types. One Barbie uses a wheelchair. Hot Wheels gross sales rose 25 percent. The company also cited its successful launch of dolls based on the popular South Korean seven-member boy band BTS. “Our third-quarter performance demonstrates the continued momentum of our multiyear turnaround,” said Mattel CEO Ynon Kreiz in a statement. During a call with analysts after the earnings results, Kreiz said that Mattel hasn’t seen any impact from tariff increases on toys imported from China ahead of the December 15 deadline. “We have worked very closely with our retail partners to prepare for the potential implications of tariffs in the short- to midterm,” he said. In comparison, Hasbro’s CEO Brian Goldner said last week that the trade war is wreaking havoc on his company’s supply chain and creating confusion among retail customers for its toys. Hasbro said the uncertainty about tar-

iffs led to canceled orders in the third quarter and the company was unable to meet demand as it adjusted operations to accommodate companies that buy its toys and games. Mattel also said it completed an independent investigation into the allegation contained in a whistleblower letter disclosed in an August 8 letter. The letter questioned whether there were accounting errors in past periods and whether Mattel’s outside auditor was independent. The probe determined that the company’s income tax expense was understated in the third quarter of 2017 with no impact for the full year. The error was not disclosed to then-CEO Margaret Georgiadis. The probe also determined that Mattel has certain weakness in its internal control over financial reporting. The company announced that Chief Financial Officer Joseph Euteneuer, who became CFO in 2017, will leave the company after a transition period of up to six months. Mattel is conducting a search for its next CFO. AP

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Thursday, October 31, 2019 B2-1

Bill pushes transparent remittance fees

By Butch Fernandez

@butchfBM

HE Senate is mulling over passage of remedial legislation requiring full disclosure of the terms and costs of the money transfer service that overseas Filipino workers (OFWs) are made to pay by remittance agents and companies. I n filing Senate Bill 438, to be known as the Remittance Act of 2019, Sen. Ramon “Bong” Revilla

Jr. noted that OFWs dedicate all their labor and sacrifices for the betterment of their families, add-

ing that “the salaries, wages and earnings they send home are products of love and hard work.” In recognition of such valuable contribution to the economy, “this measure seeks to protect the hardearned money of our OFWs as it requires disclosure of charges and fees that would be paid for sending their money through remittance agents and companies.” At the same time, he added that the proposed law will “penalize price gouging or the exorbitant charging of fees for the transactions being made.” More important, Revilla clari-

fied, the remedial legislation requires remittance companies to disclose all finance charges and other fees on the money-transfer service and to strictly adhere to the terms and conditions of their remittance. The Revilla bill specifically requires remittance agents and companies to be duly registered, licensed and to have met all the requirements of the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Department of Trade and Industry and the Bureau of Internal Revenue. Continued on B2-2

GSIS earmarks P1.18B in loan transfer for members in Mandaluyong City govt

TATE pension fund Government Service Insurance System has allocated P1.18 billion in loan transfer for a total of 2,371 GSIS members in the City Government of Mandaluyong. This was after GSIS Chairman and Acting President and General Manager Rolando Ledesma Macasaet and Mandaluyong Mayor Carmelita “Menchie” Abalos signed on Monday in Mandaluyong City a memorandum of agreement (MOA) implementing the GSIS Financial Assistance Loan (GFAL) program for employees of the city government. GFAL supports the campaign of President Duterte to end “5-6” and other high-interest money lending schemes that take advantage of cash-strapped government workers, and leave them falling deeper into debts. This is

a kind of oppression, according to the President, which has to be eliminated. “We don’t want you to fall prey to loan sharks and become victims of 5-6. That is why we came up with GFAL. GFAL’s interest is only 6 percent per year which translates to only 0.5 percent per month, and payable for six years,” Macasaet said, addressing the employees of Mandaluyong after their flag-raising ceremony and the GFAL MOA signing in the city hall grounds. Macasaet added that GFAL will make life easier for Mandaluyong employees because of its low interest and longer repayment period that will increase their take-home pay and protect their future retirement benefit. GFAL is the balance-transfer and debt-

consolidation facility of GSIS that aims to help active GSIS members settle their outstanding loan obligations with lending institutions. Members may borrow up to a maximum loan amount of P500,000. If their loan balance is lower than the maximum amount, they may apply for the remaining credit as a Top-Up Loan. The proceeds of GFAL will be paid directly to the lending institution, while the Top-Up Loan will be released to the member. To qualify for GFAL, applicants must be permanent government employees with outstanding loan from lending institutions, government banks, or cooperatives accredited or recognized by their agency; have at least three years of periods with paid premiums; and have no due and demandable loan account with GSIS. In ad-

dition, they should not be on leave without pay at the time of application; have a take-home pay of not lower than P5,000 after deduction of monthly obligations; and have no pending administrative case or criminal charges. All GSIS offices are open every Saturday for GFAL transactions, including the conduct of a financial literacy seminar, which is a requirement prior to loan processing. Interested parties may visit the GSIS web site (www.gsis.gov.ph) or Facebook account (@gsis.ph); e-mail gsiscares@gsis.gov.ph; or call the GSIS Contact Center at 8847-4747, 1-800-8-847-4747 (for Globe and TM subscribers), or 1-800-10-847-4747 (for Smart, Sun and Talk ‘n Text subscribers).

BPI exec eyes 50% of clients in digital platform by year-end

N official of the Ayala-led Bank of the Philippine Islands (BPI) said he hopes that half of their account holders would shift to digital transactions by the end of the year. In a briefing on Tuesday, BPI Chief Operating Officer Ramon Jocson said they have 8.5 million accounts, 1.8 million of which have passbooks. Jocson said new account holders usually access the bank’s electronic channels once they open their accounts. “The challenge for us is for those who have accounts with us, ATM [automated teller machines] accounts that have not gotten to the branches yet to apply for an online account,” he said. Jocson, however, said that once the account holders realize the advantage of accessing the digital platform, “the adoption is quite fast.” “But it [the challenge] is really trying to reach out to them to involve them,” he said. “So our target right now is to get to at least 50 percent [of the account holders to use the digital platform] by the end of the year,” he added. Domestic banks are keeping up with technological innovations and changes in the financial landscape to ensure they are able to fully cater to their clients.

Asked how much BPI has allocated for their technology-related spending, Jocson declined to give specific figures, noting that “it is a part of our whole IT [information-technology] budget.” He said major banks in Asia allocate about 7.5 percent to 8 percent of their total revenues to IT budget. “We also allocate about the same level,” Jocson said, noting, however, that “within that, we now have to mix digital finances with that of other IT-related expenditures.” “We have to mix that because it’s very hard also to overspend,” he added. On Tuesday, the bank launched its digital ecosystem, which has two components—Open Banking and BPI Digital Platforms. BPI Chief Digital Officer Noel Santiago said open banking is “far reaching and with nearlimitless possibilities.” “We are capitalizing on this to grow our network of trusted partners so that clients can easily and conveniently transact via one app or web site,” he said. The bank has partnered with nine entities with 36 services, such as Lazada, GCash and PayMaya, to further aid their clients’ needs. It also launched its conversational banking app called “BEA of BPI,” which serves as a personal banker. PNA

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B2-2 Thursday, October 31, 2019

central bank sees Standard Chartered gains where Singapore economy in ‘fits and starts’ HSBC flagged disappointment S

TANDARD Chartered Plc. is showing strength where HSBC Holdings Plc. cited weakness.

Standard Chartered generated 19 percent more revenue in Europe and the Americas in the third quarter—regions HSBC flagged as disappointing this week as it vowed an overhaul. Standard Chartered’s results there, combined with a 2-percent increase in revenue from Greater China and North Asia, sent adjusted pretax profit up 16 percent, defying analysts’ predictions for a slight decline. The figures are a sign the London-based bank has put the worst behind it four years after

Chief Executive Officer Bill Winters took over to tackle issues ranging from a bloated cost base to government probes. The company said it’s sticking to a target to boost return on tangible equity to 10 percent by 2021, even as it faces “growing headwinds” from geopolitical tensions, slowing economic growth and lower interest rates. “Our strategy of the last few years has progressively created a stronger and more resilient business,” Winters said in a statement announcing results on Wednes-

day. “The continuing execution of that strateg y remains our priority, enabling us to face the more challenging external environment confidently.” The shares rose 3 percent at 1:02 p.m. as trading in Hong Kong resumed. Altogether, Standard Chartered said revenue climbed 7 percent, while costs were little changed from a year earlier. Adjusted pretax profit was $1.24 billion, beating the consensus analyst estimate compiled by the company for profit to slip to $1.06 billion. In Europe and the Americas, the company pointed to growth across treasur y, corporate finance and financial markets businesses. HSBC had f lagged declines in revenue in Europe and

North America, calling its performance there “not acceptable.” Notably, Standard Chartered said revenue also rose in Hong Kong. Prolonged protests in the city, Standard Chartered’s largest single market, have weighed on the local economy. The bank predicted costs will be higher in this year’s second half than in the first, as it plows money into growing business. The firm has been investing billions of dollars in technology as part of a digital strategy unveiled earlier this year. The lender won one of Hong Kong’s first licenses to open a virtual bank and opened online-only banks across Africa to attract new customers. Client adoption of digital channels “continued to improve,” the company said on Wednesday.

Deloitte: RBA call for infrastructure spending ‘has merit’

HE Reserve Bank of Australia’s (RBA) call for government to tap record-low borrowing costs in order to finance increased infrastructure spending is worth pursuing if projects outside major cities are targeted, Deloitte Access Economics says. RBA Chief Philip Lowe has urged state and federal authorities to ramp up investment in roads, railways and bridges to support economic growth and employment

as the central bank’s conventional interest-rate ammunition comes to an end. The federal government, which is striving to protect a forecast budget surplus, has pushed back and says major projects are already at maximum capacity. Lowe has conceded that spending in Sydney and Melbourne is close to full capacity, but has suggested instead that numerous smaller projects in regional areas could be funded. In a report

titled “Is more infrastructure the answer?” released on Wednesday, Deloitte partner Stephen Smith agreed. “There are some areas where governments can do more,” he said. “The current pipeline remains dominated by a series of large road and rail projects, mostly in Sydney and Melbourne, but there is still some capacity to deliver smaller scale projects outside the major capital cities.” “These are easier for contractors to coordinate and don’t tend to require the same amount of specialized skills and equipment to deliver,” Smith said in Deloitte’s quarterly investment monitor. “This helps to minimize labor and materials shortages and reduces the risk of delays and costoverruns.” The RBA has cut rates three times in the past five months to 0.75 percent as it tries to stoke the economy and rekindle inflation that has remained dormant for half a decade. It’s trying to drive down unemployment to spur wage increases to help fuel consumerprice gains; but policy-makers acknowledge that cheap money alone is insufficient, and have been seeking fiscal support from governments.

Treasurer unmoved

TREASURER Josh Frydenberg has been unmoved, arguing his tax rebates and current infrastructure pipeline is sufficient support. Frydenberg is trying to balance the government’s books for the first time since before the 2008

financial crisis and wants to keep any fiscal firepower up his sleeve in the event of a severe downturn. His rejections have seen Lowe become more circumspect in his public urging as the central bank accepts it will have to carry most of the burden in supporting growth. Australia hasn’t had a recession— defined locally as consecutive quarters of contraction—for 28 years. But t he annua l e x pansion slowed to just 1.4 percent in the second quarter, about half the economy’s speed limit and the weakest expansion since 2009. Outside tax and rate cuts, and a weaker currency, the RBA is hoping that a resumption of spending by mining companies will help to strengthen the expansion next year. Deloitte’s Smith notes that since the end of the mining investment boom in about 2013, there’s been a A$236-billion decline in the value of projects in the country’s north and west, while those in the south and east have risen by A$56 billion. Deloitte estimates that the value of definite projects—those under construction or committed—increased by A$8.4 billion over the third quarter. This has largely been due to a number of projects progressing through the planning stages in the mining and infrastructure sectors. “The value of planned projects —those under consideration or possible—increased by A$30.2 billion over the quarter,” he said, adding that planned work is now at its highest level since mid-2013. Bloomberg News

I NG A P OR E ’ S e c o no m i c growth will remain uneven through the end of the year, with weakness concentrated in trade and manufacturing, before halting its downtrend in 2020, the central bank said. The city state’s prospects are in line with the path of the global economy, which should “stabilize” next year, the Monetary Authority of Singapore said in its Macroeconomic Review on Wednesday. The domestic economy “could experience ‘fits and starts’ for the rest of the year, and into 2020,” the MAS said. MAS Managing Director Ravi Menon said in an interview last week t h at t he c u r rent c yc le should bottom out toward the end of 2019, as the downturn appears to be confined to the trade and manufacturing sectors. The central bank elaborated on that view in its report on Wednesday, showing inf lation will remain subdued while the labor market will soften. The MAS, which uses the exchange rate as its main tool, eased policy in October for the first time since 2016. The move was a “measured adjustment” given that economic growth, business costs and consumer prices are expected

to stabilize rather than decelerate further, the MAS said in its report. A “more aggressive easing of policy is unwarranted at this juncture,” it said, although risks to growth and inflation are tilted to the downside. The MAS reiterated it’s prepared to adjust policy if the outlook weakens significantly. The services industry remains resilient for now and will continue to be a key support for growth, the central bank said. The outlook for the trade sector is “uncertain,” with prospects also depending on a recovery in the global electronics cycle. Singapore’s labor market has weakened and wage growth will likely slow into next year, the central bank said. The latest data show retrenchments are on the rise, companies are cautious about raising wages, and unemployed people are taking more time to find new work. “Hiring sentiment has become more restrained amid the economic slowdown,” according to the report. “Looking ahead, domestic wage growth should ease as the labor market softens, even while sluggish demand could limit the pass-through of cost increases to consumers.” Bloomberg News

BOJ likely to hold fire, flag readiness to act

HE Bank of Japan (BOJ) is likely to save its limited policy ammunition for a clearer deterioration of economic conditions when it meets on Thursday, just hours after an expected interest rate cut by the Federal Reserve. That’s the view of a majority of economists surveyed by Bloomberg this month, despite the central bank’s call for a review of prices at the meeting. Since the BOJ’s September gathering, data for the world’s third-largest economy has continued to show domestic demand holding up while a USChina truce on trade has reassured markets. That has weakened the yen and cooled speculation of easing this week, even if the Fed lowers US rates. Still, a complete lack of action by Japan’s central bank could give the impression it is falling further behind a wave of rate cuts around the world. While the size of the BOJ’s stimulus program is far bigger in scale than those of its global peers, Gov. Haruhiko Kuroda’s challenge is to avoid sowing seeds of doubt over his willingness to take more action and the availability of effective ammunition should he do so.

One way the central bank could further demonstrate its readiness to act is by altering its guidance on policy to strengthen or lengthen its pledge to keep rates at rock bottom levels. Alternatively, the BOJ could come up with fresh wording to indicate its strong commitment to add stimulus if needed. Were the BOJ to pull one of its major policy levers this week, in what would now be a surprise outcome, it would probably lower its negative interest rate. Since the last meeting, Kuroda has repeatedly referred to lowering short-term rates if action to spur prices is needed. The BOJ is expected to release its policy statement early afternoon together with a quarterly economic outlook report. Kuroda usually holds a press conference after the decision at 3:30 p.m. “We think the costs of adding stimulus outweigh the benefits. If there are any changes, they won’t be dramatic—the BOJ could extend its forward guidance and add more operational flexibility to how it manages yields,” said Bloomberg economist Yuki Masujima. Bloomberg News

BILL PUSHES TRANSPARENT REMITTANCE FEES Continued from B2-1

It further mandates all remittance agents and companies to follow the exact real-time exchange rate at the beginning of the business day as posted in the Reference Exchange Rate Bulletin of the BSP. Revilla proposed that the BSP, in accordance with its rules and regulations, impose a flat rate transaction for senders from the Philippines. The bill also requires remittance agents and companies to include a waiver form for each transaction, clearly specifying the exchange rate provided for the currency, including the additional fees being deducted from the original remittance. It adds that if the recipient consents to the exchange from the original currency to Philippine peso, a signed acknowledg-

ment will have to be made. The Revilla bill requires remittance agents and companies to serve notice to the parties concerned that senders are generally not permitted to require that the money transfer be made in the original currency, except in specific countries where senders are given the option of receiving the money in original currency without any additional exchange fees being charged to the sender. Remittance agents and companies will also be required to disclose the list of companies, as determined by the BSP, which gives the option to require that money transferred be paid out to the recipient in the original currency sent. On the part of the senders and recipients, the measure requires them to produce at least one valid and legally acceptable

identification card. In addition, the bill provides that agents and companies receiving remittances from countries who give the option to specify that original currency be paid out to recipient shall be required to adhere to the contractual commitment entered into by the remittance agent and the sender. In cases where only Philippine currency is available and paid out to recipients in direct contradiction of the sender’s specified currency, or the currency of the originating country, remittance agents and companies shall be required to obtain an additional waiver from the recipient. Once enacted into law, the bill will impose punishment of six years to 10 years imprisonment, and a fine of P200,000 to P1 million will be imposed on those who

will violate the provisions of the bill. In addition to these penalties, Revilla also introduced a provision requiring restitution in cases where excessive amounts have been charged to a recipient by a remittance agent. Seeking early passage of the measure, Revilla pointed out that it is the declared policy of the State to protect its citizens from deceptive, unfair and unconscionable acts of remittance agents and money transfer companies. He noted that total OFW remittances made from April to September last year amounted to a total of P235.9 billion based on the records of the Philippine Statistics Authority, adding that majority or 52.8 percent of OFWs sent their remittance through banks, while the rest are through money transfer services.

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Fed prepares to pause after third rate cut

EROME POWELL may be getting ready to pause this year’s monetary easing campaign.

The Federal Reserve chairman and his colleagues are expected to cut interest rates a quarter point on Wednesday for a third straight meeting, to provide insurance against global risks, while signaling that the committee has probably done enough for now. The decision will be announced at 2 p.m. in Washington with Powell facing reporters 30 minutes later. Investors are pricing a 90 percent likelihood of a cut though economists surveyed by Bloomberg put the odds at 75 percent, betraying a bit more doubt that reflects divisions on the committee about the need to lower borrowing costs much further. While policy-makers all see risks from trade uncertainty and weakness abroad, some view the Fed’s reductions in July and September as already sufficient to offset those headwinds absent addi-

tional shocks. Powell will likely use his press conference to communicate that message of a pause while emphasizing flexibility if the economic outlook shifts significantly. “What they want to provide is a hawkish cut,’’ said Carl Tannenbaum, chief economist with Northern Trust Co. in Chicago and a former Fed researcher. “Expressing that properly will require some deft expression, which the Fed hasn’t always been able to provide.’’ Powell is following the playbook of a mentor, Alan Greenspan, who cut rates three times in midcycle adjustments in 19951996 and in 1998 to counter risks. September forecasts showed the FOMC saw interest rates hitting bottom this year before rising slightly in 2021. Investors are slightly more dovish and have fully priced in

another quarter point cut by mid-2020. The Fed will update its quarterly forecasts in December. The FOMC is divided between policy-makers who favor insurance against risks from a manufacturing slump, the trade war with China, Brexit and slower global growth, versus those who see domestic data largely supporting their outlook for solid growth. The latter camp includes Kansas City Fed’s Esther George and Boston’s Eric Rosengren, both likely to dissent again if the Fed

cuts rates on Wednesday. They have some company: The Fed’s September dot plot of interest rate projections showed five officials didn’t favor the cut delivered at that meeting and another five who saw no need for another cut this year. That creates the possibility of a surprise, and economists put 20 percent odds that the FOMC will decide not to cut on Wednesday. Any pause would also certainly be opposed by President Donald J. Trump, who’s pushed publicly for

ECB rekindles QE in Europe T

HE European Central Bank is about to start pumping money into bond markets again, after its previous efforts hauled yields down to record lows. At a pace of €20 billion ($22 billion) per month from Wednesday, the ECB’s latest asset-purchase program is likely to favor some markets over others. Investors and governments in the region’s most indebted nations—such as Italy and France—are set to be the biggest beneficiaries, simply because they have the most bonds left for the central bank to buy. Given that the ECB has already sucked up €2.6 trillion of bonds, funds may have to scrabble to pick up what’s left after the fresh buying. Yields on two-thirds of the region’s government debt are already below zero, meaning investors will have to believe bonds are set to rally further, or they will be left with negative returns. “The force bearing down on yields is not cyclical, it’s structural,” said Richard McGuire, head of rates strategy at Rabobank International. “Financial repression is going to become an increasingly powerful force.” Strategists are modeling just how long the ECB can buy bonds for under its current self-imposed limits, designed to prevent the institution having undue inf luence over national governments. The central bank has 14 months before it hits the 33 percent

threshold for Germany’s sovereign debt, but in countries such as Italy there is much more headway, according to Danske Bank A/S. In smaller nations, such as Finland, R abobank calculates that the ECB buying may only be able to continue until the middle of next year. That would mean it has to buy other assets or alter the parameters of the program, which has already stirred unprecedented divisions among policy-makers. Either of those options would lift bond prices. The ECB must also buy debt in proportion to the size of each nation’s economy and its population. But these limits have proved to be less binding, with the institution willing to diverge from them and buy above the so-called capital key when it comes up against a shortage of available securities. That has worked to the benefit of Italy and France, which are the two nations with the largest stock of debt in the euro area. Unless there are signs of a boost in bond supply—through governments borrowing more—this is unlikely to change soon. Indeed, once the biggest buyer in the market has finished, there’s barely anything left for others to buy, creating a scarcity that ramps up bond prices. Once the ECB is taken into account, and investors reinvest proceeds f rom mat u r ing bond s, Ger ma ny ’s fresh issuance is completely soaked up,

‘Central banks should act on climate change’

ENTR AL banks should pay more attention to climate change and income inequality, Patrick Honohan, a former governor of the Central Bank of Ireland, argued on Tuesday in a new paper from the Peterson Institute for International Economics. “If central banks applied, to their own bond purchases, the new approach to climate-related financial risk that they are pressing on private bankers, they would reduce their purchases of bonds issued by carbon-intensive firms,” wrote Honohan, who is now a nonresident senior fellow at the Washington think tank. His remarks contrast with a warning earlier on Tuesday from Bundesbank President Jens Wei-

dmann that giving preference to green bonds when conducting asset purchases would overburden central banks and could eventually endanger their independence. Honohan acknowledged that central bankers have traditionally been reluctant to focus on inequality and climate change when pursuing monetary policy goals. “This now should be corrected, through both deeper analysis of the channels of effect and consideration of side effects in the choice of policy mixes,” he wrote. Incoming European Central Bank President Christine Lagarde has also hinted that she may want to harness the institution’s asset purchase program to fight climate change. Bloomberg News

according to Barclays Plc. estimates. That helped to push the whole yield curve in the euro area’s largest economy below zero percent this year, sparking envy from US President Donald J. Trump over Germany’s ability to get paid to borrow for 30 years. It’s not just governments who are likely to benefit. More companies will get the chance to raise new debt—and get paid for doing so—if fresh QE keeps sovereign bond yields well below zero and spreads continue to tighten. A dozen companies have already sold negative-yielding bonds this year. Almost €400 billion of investmentgrade corporate bonds offer a negative return if held to maturity. Of course, it’s not just QE that investors will have to deal with. After the ECB cut its deposit rate in September, traders in money markets are pricing in a 60 percent chance of another 10-basis-point drop to -0.6 percent by October next year. Should a German recession come before that, then it may not matter how negative bond yields are—investors will have to buy to protect their portfolios. “The door is open to more negative interest rates,” said Rabobank’s McGuire, who is targeting a drop in peripheral euro-area yields versus their German peers. “As more investors are forced to seek higher ground, then these sovereign interest costs will fall.” Bloomberg News

World Bank: Weak economy to pull down energy, farm prices

ASHINGTON—A weakening global economy is pulling down the prices of energy and farm commodities.The World Bank says that energy prices will drop 14.6 percent this year and 3.1 percent in 2020, and that farm prices will fall 4.7 percent this year and eke out 0.6-percent growth next year. The forecasts are sharply lower than what the anti-poverty agency was predicting in April.Metals and minerals prices are expected to skid 5.2 percent this year and 1.4 percent in 2020.The global economy has been decelerating, weighed down by trade tensions and a slowdown in China, the world’s second-biggest economy.The International Monetary Fund expects the world economy to grow just 3 percent this year, down from 3.6 percent in 2018, and world trade to expand 1.1 percent. Both are the weakest numbers since the recession year 2009. AP

lower rates to rev up the economy. “This meeting will be very contentious,’’ said Jonathan Wright, economics professor at Johns Hopkins University in Baltimore, who previously worked at the Fed. “The overall data since the last meeting aren’t that negative, and a lot of FOMC participants, mostly nonvoting, will be unconvinced of the wisdom of cutting again.” The last time the Fed reduced rates three times while the economy was growing was in 1998. After the third cut, it sent a strong signal it was done, announcing that financial conditions following 75 basis points of easing “can reasonably be expected” to sustain the expansion. Wednesday’s statement might a l so sug gest “we h ave done enough,’’ said Stephen Stanley, Amherst Pierpont chief economist. “If they ease and want to send a pause signal, it will be up to Powell to flesh it out.’’ T he FOMC m ay c o n s i d e r tweaking its assessment of current conditions to slightly weaker wording, noting that the job creation has eased and inflation expectations have moderated, said

Lindsey Piegza, chief economist with Stifel Nicolaus in Chicago. One concern Fed officials may have with too strong of a pause signal is that it could f latten the Treasury yield curve, and an inverted yield curve—where short-term rates are higher than long-term ones—is traditionally viewed as a recession warning that could alarm investors. “The market is likely to increasingly question the Fed ’s resolve to prop up a faltering economy which could translate into lower rates on the longer end, perpetuating the need for further Fed action to stabilize the shape of the yield curve,’’ she said. The central bank was not seen making much news on its balance sheet following an October 11 announcement it would buy Treasury bills at an initial $60 billion a month pace to lift bank reserves in the system. The Fed has repeatedly called the measure, undertaken after sharp spikes in overnight money market rates, a technical step that did not alter the stance of monetary policy. Bloomberg News

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Thursday, October 31, 2019

B3-1

China promises no forced tech transfers, access to finance

EIJING—China on Tuesday promised more improvements in conditions for foreign companies including an end to officials pressing them to hand over technology—a key irritant in its tariff war with Washington. The announcement adds to a drumbeat of market-opening promises by the communist government, which is trying to make China’s cooling, state-dominated economy more productive. Beijing also will ease restrictions on foreign competitors in some newly opened finance

businesses, the Commerce Ministry said. Compl a i nt s a b out B e iji ng ’s t e c h nolo g y a m bit ion s he lp e d t o s p a r k it s t a r i f f w a r w it h P re s id e nt D on a l d J. Tr u mp. Trade negotiators are working out details of an October 11 agreement under which Trump

delayed a planned tariff hike on Chinese imports. Trump said Beijing agreed to buy more American farm goods in exchange, though China has yet to confirm details of its commitment. Business g roups welcomed the agreement as a possible step to breaking a deadlock in the 15-month-old conf lict, though the two sides have yet to report progress on their core disputes over Beijing’s trade surplus and technology policies. T hose i nc lude compl a i nt s from Washington, Europe and ot her t rad i ng pa r t ners t h at Chinese development plans are based in part on stealing or pressuring companies to hand over technolog y. Authorities will be banned from “explicitly or implicitly”

pressuring companies to give up technolog y, said a ministr y official, Ye Wei. T hat pledge, if ca r r ied out, b u i l d s o n a l aw e n a c t e d i n Ma rc h t hat proh ibits use of “administrative tools” to force compa nies to g ive up indus t r i a l secrets. Business g roups sa id t hat m ight leave of f ic i a ls f ree to use ot her leverage. “Administrative organs may not implicitly or explicitly force the transfer of technology by foreign investors or foreign-invested enterprises,” Ye said. T hat sti l l leaves open the q u e s t io n of fore i g n c o mp a nies that are required to work t hrough joi nt vent u res w it h Chinese partners. For such ventures to function, the foreign partner often must hand over

technolog y or teach a potential competitor how to develop its own. China is trying to appeal to foreign companies, some of which have postponed or shifted investments to other countries out of concern about the impact of US and Chinese tariff hikes. A ministr y statement a lso promised to “eliminate all restrictions on the scope of business” of foreign banks, securities companies and fund managers. It pledged to “remove the requirement on total assets” for establishing a foreign-owned bank. “We will move faster to open finance industries,” said a Deputy Commerce Minister, Wang Shouwen. Wa ng gave no det a i ls, but business g roups say h igh re qu irements for capit a l m ight

keep foreig n investors out of C h inese f ina nc i a l indust r ies. T he y say rest r ic t ion s on l icensi ng a nd operat ions a l so m i g ht d i s c o u r a g e p o t e nt i a l compet itors. Beijing has issued a ser ies of market-opening promises over t he past t wo yea rs inc lud ing abol ish ing l im its on foreig n ow nership of companies in auto m a nu fac t u r i ng , sec u r it ies, ba n k ing , insu ra nce a nd f ut u res t rad ing. Full foreign ownership of futures traders will be allowed as of January 1, follo w e d b y mut u a l f u nd c o mp a n ie s o n A p r i l 1 a nd s e c u r it ie s f i r m s on D e c e m b e r 1. Unt i l no w, fore i g n i nv e s t or s h av e b e e n l i m it e d t o o w n i n g 51 p e rc e nt of s u c h bu s i ne s s e s . AP

B3-2 Thursday, October 31, 2019

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Thursday, October 31, 2019

B3-3

Malaysia cuts foreign workers, sparking labor shortage fears

ALAYSIA is trying to overcome its reliance on low-skilled foreign workers as it tries to move up the economic ladder. But that’s hurting some key industries in the country. The country aims to reduce the number of overseas workers by more than 130,000 in five years, while getting companies to hire more highskilled Malaysians and turn to automation to become a more de ve lo p e d e conomy. Local businesses say they’re doing so, but still need lowskilled foreigners to fill jobs, like har vesting palm fruits and doing laundr y. Small and medium enterprises—which made up 38 percent of gross domestic product last year—along with manufacturers and plantations say they’re facing labor shortages that could threaten their growth. The biggest problem for SMEs is hiring enough workers to meet immediate sales orders, according to the Federation of Malaysian Manufacturers. Labor shortage is also among the main challenges for the plantation industry, IOI Corp. said. While Prime Minister Mahathir Mohamad has given up his goal of turning Malaysia into a high-income country by next year, he’s still pushing the

economy to rely more on hightech industries and less on resources. Restricting low-skilled foreign workers, who officially account for 15 percent of the labor force—the real number may be much higher—is one part of that move. Malaysia isn’t alone in its struggle to navigate immigration policy to benefit the economy. Singapore is opening the spigots slightly for higher-skilled foreign workers, especially in prized financial technology jobs, while issuing fewer work permits for low-skilled roles, such as in retail and hospitality. Similarly, Thailand has unrolled a “Smart Visa” to attract highly skilled foreign labor across 10 targeted industries. “Cheap foreign labor disincentivizes companies from investing in more productive capital and technology,” Malaysian Finance Minister Lim Guan Eng said in announcing wage subsidies this month. Local workers hired to replace foreigners will get incentives of as much as 500 ringgit ($120)

per month for two years, and their employers can get as much as 250 ringgit. The initiatives would create 350,000 jobs for Malaysians in five years, Lim said. The government will also impose a stricter levy system to reduce overseas workers and crack down on human trafficking by conducting sweeps and requiring companies to carry out more rigorous audits. L oc a l compa n ies l aud t he government’s move to reduce dependence on foreign workers as a promising long-term goal. In the short term, however, the adjustment is painful.

Dirty, dangerous

“SMES are constrained in their ability to grow” by how long it takes to approve foreign-worker applications, the Federation of Malaysian Manufacturers said in an e-mail. Local employees remain “the first choice of labor supply but in many cases, to no avail.” Most of the jobs taken up by overseas workers are considered dirty, dangerous and difficult— reasons locals shy away from such work, MIDF Research said in a note. IOI echoes the view, saying Malaysians prefer to work in the service industry and in cities, rather than rural plantations. The palm oil producer is turning to machines to reduce its dependency on foreign labor, and to boost productivity and cost efficiency. “But it doesn’t totally eliminate our need for foreign workers,” the company said. Bloomberg News

Oil dips as US stockpiles offset prospect of deeper Opec cuts

IL fell for a third day a s a n i ndu st r y re por t show ing r ising stockpiles at A mer ica’s largest cr ude storage hub over shadowed sig ns t hat Saud i A rabi a is w i l l i ng to m a ke deeper product ion c uts. F u t u r e s i n N e w Yo r k dropped as much as 0.7 percent after losing 2 percent over the previous two sessions. The American Petroleum Institute reported that inventories at Cushing, Oklahoma, rose by 1.22 million barrels last week, according to people familiar with the data. The kingdom is ready to reduce output more than agreed with other global producers, Nigeria’s petroleum minister said after a meeting with his Saudi counterpart, Prince Abdulaziz. A deteriorating global economy weakened by the US-China trade war has driven a 17-percent slump in crude since late

April. That’s put the onus on the Organization of the Petroleum Exporting Countries and allied producers to extend production cuts further to prop up prices, although there are questions over Russia’s participation. Saudi Arabia may need to consider deeper reductions with the UAE and Kuwait if Russia abstains, Citigroup Inc. said in a note. “ T he market is pay ing more attention to the level of American inventories, given that there are less concerns over geopolitical risks,” said K im Kwangrae, a commodities analyst at Samsung Futures Inc. Signs that Saudi Arabia and Russia are at odds over more output cuts are also weighing on prices, he said. West Texas Intermediate (WTI) for December delivery declined 32 cents, or 0.6 percent, to $55.22 a barrel on the New York Mercantile Exchange as of 7:27 a.m. in London. The con-

tract fell 0.5 percent on Tuesday. Brent for December fell 22 cents, or 0.4 percent, to $61.37 a barrel on the London-based ICE Futures Europe Exchange after closing little changed the day before. The global benchmark crude traded at a premium of $6.15 to WTI. The API report is in line with data released by Genscape Inc. earlier in the week, which showed inventories at Cushing rose by 1.5 million barrels. If confirmed by the Energy Information Administration figures due Wednesday, that would be a fourth straight week of gains at the storage hub. Meanwhile, nationwide stockpiles fell by 708,000 barrels last week, according to the API. The Opec+ grouping, which includes Russia, is due to meet in December to discuss whether to extend or deepen its current production-limiting agreement that expires in March. Bloomberg News

Saudi energy minister: Saudi Aramco’s public offering ‘soon’

IYADH, Saudi Arabia— Saudi Arabia’s energy minister says a planned initial public offering (IPO) of the state-run oil giant Saudi Aramco will happen “soon.” Speaking before the Future Investment Initiative summit on Wednesday, Prince Abdulaziz bin Salman told those

gathered in Riyadh that “the IPO will come soon.” He also references the kingdom’s powerful Crown Prince Mohammed bin Salman. Prince Abdulaziz said: “It will come in the right time with the right approach, and definitely with the right decision. And it will be a Saudi decision,

first and foremost. Specifically, Prince Mohammed’s decision.” On Tuesday, a Saudi-owned satellite channel believed to be closely linked to the Al Saud royal family said shares in Aramco would be traded on Riyadh’s Tadawul exchange in December. However, there have been repeated delays to the IPO. AP

B3-4 Thursday, October 31, 2019

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US to send security envoy, commerce secretary to Asean meet in Thailand R

Putin faces Syria money crunch after US keeps control of oil

ANGKOK—US national security adviser Robert C. O’Brien and Commerce Secretary Wilbur Ross will represent President Donald J. Trump at two regional summits in Thailand this weekend, the White House announced, a move that would widely be viewed in the region as a snub. The decision to send O’Brien, who is a presidential adviser and not a member of Trump’s Cabinet, is likely to be viewed in Southeast Asia as sign of a lack of engagement in the region at a time when China’s influence and investments are quickly growing. The announcement late on Tuesday comes just days before Thailand is due to host the 10-nation Association of Southeast Asian Nations annual summit and the accompanying East Asia summit. The summits include sideline meetings that involve the US and other major countries, including China, Russia, Japan and South Korea. O’Brien recently took on his role after national security adviser John Bolton was ousted by Trump. He earlier was Trump’s

chief hostage negotiator and is an established figure in Republican Party circles. Ross is leading a November 3 to 8 trade delegation to Bangkok and will speak at an Indo-Pacific Business Forum on Monday. Last year, Vice President Mike Pence attended the summits in place of Trump. Trump attended the summits in 2017 and President Barack Obama attended most of the summits during his time in office, though he sent Secretary of State John Kerry to the 2013 summit in Brunei Darussalam. China’s representative to the meetings will be its premier, Li Keqiang. Japanese Prime Minister Shinzo Abe is also attending. Asean’s meetings focus on enhanced trade and security in a region of more than 630 million

SOLDIERS jump from a helicopter during an emergency hostage situation exercise in Nonthaburi province, Thailand, on Tuesday. The 35th annual Association of Southeast Asian Nations annual leaders’ summit will be hosted in Thailand from November 2 to 4. AP/SAKCHAI LALIT

people. The grouping includes Brunei, Cambodia, Indonesia, LaoPDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The Thai government has been ramping up security in advance of the summits and warning of road closures. Bangkok residents will get two days of “special holidays” to help alleviate traffic congestion for the summits, which are being held in a neighboring suburb. Regional trade ministers were hoping to make progress toward completing a long-awaited freetrade agreement at the meetings. But officials are still working

out technical details and rules on market access, competition and investment for the planned Regional Comprehensive Economic Partnership. The countries negotiating the pact include Asean, and six of its dialogue partners: China, Japan, South Korea, Australia, New Zealand and India. It does not include the US. If all join, it will be one of the biggest regional trading blocs, covering some 45 percent of the world’s population and about a third of global GDP, with projected trade of more than $10.3 trillion, almost 30 percent of the world total. AP

Brexit ballot: UK lawmakers back December 12 election

ONDON—Britons will be heading out to vote in the d a rk d ays of December after the House of Commons on Tuesday backed an early national vote that could break the country’s political impasse over Brexit—or turn out to be merely a temporary distraction. Prime Minister Boris Johnson hopes electing a new crop of lawmakers will give his Conservative Party a majority and break the stalemate that blocked his plan to take Britain out of the European Union this month. This week the EU granted Britain a three-month Brexit extension until January 31. But after three years of inconclusive political wrangling over Brexit, British voters are weary and the results of an election are hard to predict. The House of Commons voted 438-20—with dozens of lawmakers abstaining—for a bill authorizing an election on December 12. It will become law once it is approved on Wednesday by the unelected House of Lords, which does not have the power to overrule the elected Commons. Even before the result was announced, the political parties were in campaign mode. Johnson—who has had to abandon his vow to lead Britain out of the EU on October 31 “do or die”—accused his opponents of seeking to frustrate voters’ decision to leave the EU and prolong the Brexit process “until the 12th of never.” “There is only one way to get Brexit done in the face of this unrelenting parliamentary obstructionism, this endless, willful, fingers crossed, ‘not me guv’ refusal to deliver on the mandate of the people—and that is to refresh this Parliament and give the people a choice,” Johnson said. The road to polling day opened up when the main opposition Labour Party, which had opposed three previous attempts by Johnson to trigger an election, changed its position.

IN this photo provided by the UK Parliament, Britain’s Prime Minister Boris Johnson talks during the debate on the Early Parliamentary General Election Bill in the House of Commons, London, Tuesday. After months of stalemate in Parliament, Britain appeared on course Tuesday for an early general election that could break the country’s political deadlock over Brexit. Opposition lawmakers backed in principle the government’s request to send voters to the polls in December—though Prime Minister Boris Johnson still faced a tussle over the exact date. UK PARLIAMENT/JESSICA TAYLOR VIA AP

Now that Brexit has been delayed, Labour leader Jeremy Corbyn said his party would vote in favor of an early election because the prospect that Britain could crash out of the EU without a divorce deal had been taken off the table. Brexit will form the unavoidable backdrop to the election, but the left-of-center Labour Party is calculating that voters will want to talk about issues such as health care, education and social welfare—all of which saw years of funding cuts by Conservative governments—more than about Brexit. The party’s position on the EU is convoluted, with a split between those who want to go through with Brexit and those who want a new referendum on whether to remain in the bloc. The strongly pro-EU Liberal Democrats have been eating away at Labour support in Britain’s big cities. “The choice at this election could not be clearer,” Corbyn said in a statement that did not mention Brexit. “A Labour government will be on your side, while Boris Johnson’s Conservatives—who think they’re born to rule—will only look after the privileged few.” The looming vote comes two and a half years before the next scheduled election, due in 2022, and will be the country’s first De-

cember election since 1923. Lawmakers rejected an attempt by the Labour Party to hold the election on December 9. The party argued the earlier date would mean more students could vote because universities would not have begun their Christmas holidays. Cabinet Office Minister Oliver Dowden said December 12 was preferable because it gave lawmakers a few more days to finish up parliamentary business, and retained Britain’s tradition of holding elections on Thursdays. Earlier, a last-minute hitch to the government’s plans emerged when opposit ion par t ies announced plans to try to amend the terms of an early election to lower the voting age from 18 to 16 and expand the voting base to include citizens of the 27 other EU nations who are living in Britain. The government said it would abandon the bill if that plan succeeded. The amendments were not chosen for a vote by parliamentary authorities, who judged that they would have fundamentally altered the legislation. Johnson took office in July vowing to “get Brexit done” after his predecessor, Theresa May, resigned in defeat. But the Conservative leader, who said just weeks ago that he would “rather be dead in a ditch” than postpone

the October 31 Brexit date, was forced by Parliament to seek the extension in order to avoid a nodeal Brexit, which would damage the economies of both Britain and the EU. Johnson plans to campaign as a leader who has a viable, strong Brexit plan for the country but who has been stymied by an antidemocratic opposition and a bureaucratic EU. He has argued that without an early election, the British government would be like the cartoon character Charlie Brown, “endlessly running up to kick the ball only to have Parliament whisk it away.” An election is a risk, though, not only for Johnson’s Conservatives but also for Labour. Opinion polls currently give Johnson’s Conservatives a lead, but there’s a strong chance that an election could produce a Parliament as divided over Brexit as the current one. Theresa May called an early election in 2017 with the aim of boosting the Conservatives’ majority and strengthening her hand in negotiations with the EU. The party ended up losing its majority in Parliament, and May failed to pass her key Brexit measures. Many voters are fed up with politicians from all sides after more than three years of Brexit drama, and all the parties are worried about a backlash from grumpy voters asked to go to the polls at the darkest, coldest time of the year. “We all know that a poll in December is less than ideal,” said Pete Wishart, a lawmaker with the opposition Scottish National Party. “But it is worth that risk in order that we remove this prime minister.” Meanwhile, the Brexit conundrum remains unsolved—and the clock is ticking down the new deadline of January 31. “To my British friends,” European Council President Donald Tusk tweeted Tuesday. “The EU27 has formally adopted the extension. It may be the last one. Please make the best use of this time.” AP

USSIAN President Vladimir Putin is facing an unwelcome new financial challenge in Syria after the US pullback enabled his ally Bashar al-Assad to reclaim the biggest chunk of territory in the country still outside his control. The US decision to keep forces in northeastern Syria to guard oil fields denies Assad access to desperately needed funds to rebuild the Middle East state after eight years of civil war. That’s adding to the urgency of United Nations-led talks between the Syrian government and opposition groups in Geneva starting on Wednesday, that Putin has said could be “decisive” in settling the conflict. While agreement is far from certain, the negotiations on constitutional changes could help unlock money from US allies in the Gulf and Europe, which have withheld aid because of Assad’s close ties to Iran and his refusal to loosen his grip on power by making space for opposition groups. “If we see some political progress there could be more interest in supporting reconstruction,” said Yury Barmin, a Middle East expert from the Moscow Policy Group, a consultancy. At the same time, the Syrian authorities “clearly feel they are winning,” he said. Russia’s military intervention in Syria since 2015 succeeded in shoring up Assad at a time when he was at risk of being overthrown in a rebellion backed by the US and its allies. The UN estimates reconstruction costs in Syria at $250 billion and the Syrian leadership can’t count on either of its two main backers, Iran and Russia, for significant financing. Saudi Arabia has softened its demand for Assad ’s immediate departure as the Russian role in Syria has grown increasingly dominant and the US presence has reduced. That accelerated when President Donald Trump last month ordered out US troops protecting Kurdish forces in northeastern Sy ria, leading to a Turkish offensive that forced the Kurds to turn to Damascus for protection by pledging loyalty to Assad. Russia and Turkey struck a deal last week for joint patrols of a border zone in northern Syria. The US then announced it was deploying forces in the vicinity of the oil-producing Deir Ezzor region to deny access to Islamic

State, as well as Syrian and Russian forces, a move the Defense Ministry in Moscow denounced as “international state banditry.” Defense Secretary Mark Esper warned on Monday of an “overwhelming” response to any threat to US forces there. The American maneuver came even as Trump thanked Russia for its assistance with the US raid that killed Islamic State leader Abu Bakr al-Baghdadi in the northwestern Syrian province of Idlib. House Speaker Nancy Pelosi complained that the White House had told the Kremlin about the operation in advance while keeping it secret from Congressional leaders.

Political process

RUSSIA, which has been preparing for an offensive to capture Idlib from jihadist control, may feel encouraged by the confirmation that Islamic State has taken root there, said Barmin of the Moscow Policy Group. But it’s unlikely to risk international condemnation by unleashing massive civilian casualties just as the political process in Syria is getting under way, he said. The work of the so-called constitutional committee, made up of 150 members from the government, opposition and civil society, is a “step in the right direction, a step along the difficult path out of this conflict,” UN Special Envoy for Syria Geir Pedersen said on Monday in Geneva. “It could be a door-opener to a broader political process.” Saudi Arabia will likely continue to keeps its purse-strings firmly shut until after the UN has overseen presidential elections in Syria that are due in 2021, said Abdulkhaleq Abdulla, a political expert based in the United Arab Emirates. While Saudi leaders view Russia as the best chance of countering Iran in Syria and the Syrian opposition is unlikely to win any real power, Riyadh still wants to see some international stamp of legitimacy before it considers contributing to the Syrian regime, according to Abdulla. “It’s going to be a long, long process for sure,” he said by phone. “Assad has to arrange for an election supervised by the UN and the outcome will then determine at what stage and what kind of Gulf help will be provided to Syria.” Bloomberg News

THREAT TO U.S. ELECTIONS NOT LIMITED TO RUSSIA IN 2020

ASHINGTON—Russia interfered in the 2016 election and may try to sway next year’s vote as well. But it’s not the only nation with an eye on US politics. American officials sounding the alarm about foreign efforts to disrupt the 2020 election include multiple countries in that warning. Concerns abound not only about possible hacking of campaigns, but also about the spread of disinformation on social media and potential efforts to breach voting databases and even alter votes. The anxiety goes beyond the possibility that US adversaries could directly affect election results: The mere hint of foreign meddling could undermine public confidence in vote—tallies a worrisome possibility in a tight election. “Unfortunately, it’s not just Russia anymore. In particular, China, Iran, a couple of others, studied what the Russians did in 2016,” said James Lewis, a cyber-security expert at the Center for Strategic and International Studies in Washington. US intelligence agencies reported Russian, Chinese and Iranian influence operations targeting last year’s midterms, and a senior FBI official recently singled out Beijing as a particular source of concern. Meanwhile, Microsoft recently reported that Iranian hackers had targeted an unidentified presidential campaign along with government officials, journalists and prominent expatriate Iranians. Any foreign effort to interfere in the 2020 election won’t necessarily mirror Russia’s attack in

2016, when Kremlin-linked military intelligence officers hacked Democratic e-mails and shared them with WikiLeaks to try to help Republican Donald Trump defeat Democrat Hillary Clinton. More likely are the social-media campaigns, like the Russian-based one that shaped public opinion in the 2016 election and divided Americans on hot-button topics like race and religion. Facebook announced recently that it has removed four networks of fake, state-backed misinformation-spreading accounts based in Russia and Iran. The company said the networks sought to disrupt elections in the US, North Africa and Latin America. A Senate Intelligence Committee report described Russia’s social-media activities as a “vastly more complex and strategic assault on the United States than was initially understood.” A recent memo prepared by the FBI and Department of Homeland Security warned that Russia may use social media to exacerbate divisions within political parties during primaries or hack election web sites to spread misinformation on voting processes. Concerns about foreign influence coincide with stepped-up enforcement of a law requiring the registration with the Justice Department of lobbyists, media organizations and other entities that do the bidding of foreign government. Special counsel Robert Mueller exposed through his investigation the unregistered, covert Russian campaign to spread disinformation on social media. AP

Sports BusinessMirror

| Thursday, October 31, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

STEPHEN STRASBURG and the Nationals match the Astros pitch for pitch, hit for hit—even home run celebration for home run celebration. AP

By Ronald Blum

The Associated Press

OUSTON—It’s been an unconventional road to Game Seven of the World Series for Stephen Strasburg and the Washington Nationals. Seizing the October spotlight he missed out on as a youngster, Strasburg pitched a gem into the ninth inning Tuesday night as the Nationals beat the Houston Astros, 7-2, to tie this Fall Classic at 3-3. Juan Soto ran all the way to first base with his bat following a go-ahead homer, the same way Houston slugger Alex Bregman did earlier. Yep, these Nationals have matched the Astros pitch for pitch, hit for hit—even home run celebration for home run celebration. Now, it’s onto a winner-take-all Game Seven on Wednesday night to decide the only Series in which the visiting team won the first six. “It’s weird, really. You can’t explain it,” Washington Manager Dave Martinez said. Adam Eaton and Soto hit solo homers off Justin Verlander in the fifth to help the Nationals overcome a 2-1 deficit. Anthony Rendon also went deep and drove in five runs. “Maybe they enjoy our park and maybe we enjoy their park,” said Rendon, who attended high school four-and-ahalf miles from Minute Maid Park.” We’re not going to ask questions.” Max Scherzer, revitalized by an injection of painkiller, is primed to return from an irritated nerve in his neck to start Game Seven for Washington in a Series that’s been all road, sweet, road. Scratched from his scheduled Game Five start only

FALL CLASSIC BOILS DOWN TO A GAME 7

hours before the first pitch, Scherzer was warming up in the seventh inning Tuesday before Rendon’s homer, then sat down as Martinez became the first manager tossed from a Series game since Atlanta’s Bobby Cox in 1996. “The cortisone shot worked. That relieved the pressure on the nerve, and then keep applying heat,” Scherzer said. “Our chiropractor, he does amazing work. He was able to go in there and make adjustments. We did two treatments of it and really freed up the neck.” Zack Greinke will start for the Astros, who led the majors with 107 wins and are seeking their second title in three seasons. “I wish it was in a National League park,” Greinke joked, cracking a smile about his affinity for hitting. Fired up after a disputed call at first base went against them in the seventh, the Nationals padded their lead moments later when Rendon hit a two-run homer off Will Harris. Martinez, still enraged at umpires, was ejected during the seventh-inning stretch, screaming as a pair of his coaches held him back while the crowd sang along to “Deep in the Heart of Texas.” Rendon added a two-run double off Chris Devenski in the ninth to just about seal it after Strasburg gutted through without his best fastball to throw five-hit ball for 8 1/3 innings. Washington pitching Coach Paul Menhart told Strasburg after the first inning that he was tipping pitches. Strasburg allowed only

three more hits. “Started shaking my glove, so they didn’t know what I was throwing,” Strasburg said. “It’s something that has burned me in the past, and it burned me there in the first.” Now the Nationals will attempt their ultimate comeback in a year in which they were written off time after time, hoping for the first title in the 51-season history of a franchise that started as the Montreal Expos and the first for Washington since the Senators in 1924. Visiting teams have won three straight Game Sevens in the Series since the Cardinals defeated Texas at home in 2011. “I don’t think there’s a person in the building that would have assumed that all road teams were going to win,” Houston Manager AJ Hinch said. “We’ve just got to make sure that last one is not the same.” Washington rebounded from a 19-31 start—the Nats were given just a 1.6 percent chance to win the Series on May 23—to finish 93-69. They rebounded from a 3-1 eighth-inning deficit against Milwaukee in the NL wild-card game, a two-games-to-one deficit versus the Los Angeles Dodgers in the Division Series and a 2-1, fifth-inning deficit in Game Six versus the Astros. Outscored 19-3 at Nationals Park while going one for 21 with runners in scoring position, the Nationals

WHAT TO EXPECT FROM MAD MAX? H

OUSTON—This is Max Scherzer’s shot. Hurting so much over the weekend that it seemed his season might be over, Mad Max instead gets the ball for a final time—in Game Seven of the World Series. “That’s what you live for,” the Washington Nationals ace said. Baseball fans, same thing. A matchup devoid of late-inning drama that’s threatening to set a record low for television ratings has suddenly turned into must-see TV. “Maybe not how we drew it up in terms of how we got there, but it doesn’t take away the opportunity we have to win the World Series,” Houston Astros Manager AJ Hinch said. Zack Greinke, acquired by Houston in late July for exactly these situations, starts Wednesday night for the Astros. “A little excited about it at the moment, but we’ll see,” Greinke said. The wild-card Nationals are trying to rewrite franchise history with their first championship. The 107-win Astros, aiming to build a legacy by taking their second crown in three years. A pair of teams that began spring training under sunny skies in February, working out side-by-side in

the complex they share in Florida, now meeting in late October under the retractable roof at Minute Maid Park for the biggest prize of all. So what to expect from Scherzer? Unable to pitch Game Five on Sunday night because of nerve irritation near his neck that required an injection, the three-time Cy Young Award winner is set to start this all-or-nothing showdown. “The cortisone shot worked. That relieved the pressure on the nerve,” Scherzer said. “Everybody has the belief in me and the doctors that I could get [it] right and be ready,” he said. Scherzer tossed in the outfield before Game Six—a 7-2 win by the Nationals—and even loosened up in the bullpen in the seventh inning Tuesday night. “Max is starting tomorrow,” Manager Dave Martinez said. “We got him up knowing that if the game is tied or we were up a run we might have to use him. He wanted to go down there, and just throw and get loose. We scored some more runs and I immediately shut him down.” Whether the Game One winner, known for his incredible intensity, will be able to cut loose at full force, we’ll soon see. “We don’t know if he’s healthy or not. We’re going to

find out in the first inning,” Astros star Carlos Correa said. If Scherzer returns and wins, it might well go down in sports lore, along with Curt Schilling’s bloody sock, Kirk Gibson hobbling around the bases and the night Willis Reed limped back on the court at Madison Square Garden. “They’d probably make a movie about it. I bet, if he could, he could come back from the dead,” teammate Adam Eaton said. The Nationals rallied to extend the only World Series where the road team has taken the six first games. So much for the home-field advantage. “Doesn’t look like there is one right now, but I hope there’s one tomorrow. We’re waiting until the last game to have it on our side,” Hinch said. Everyone available, probably. Astros ace Gerrit Cole, certainly. And maybe Justin Verlander after going five innings Tuesday night. “It’s a Game Seven, all hands on deck. If AJ asks, I’m sure I’ll figure out a way,” Verlander said. Houston played in the previous Game Seven of the World Series, when George Springer and crew hammered Los Angeles at Dodger Stadium in 2017. Road teams took the two prior Game Sevens, too— Joe Maddon’s Cubs at Cleveland in 2016 and Madison

got the strong outing they needed from Strasburg, who allowed his only runs in the first inning, struck out seven and walked two while throwing 104 pitches. “It was a mental grind out there, especially after the first,” Strasburg said. “Just got to keep fighting.” Strasburg was memorably shut down by the Nationals in September 2012 to protect his arm in his first full season following Tommy John surgery, and Washington was beaten by St. Louis in the Division Series. He improved to 5-0 with a 1.98 ERA in six postseason outings this October—five starts and one relief appearance—despite failing to get a swing and miss in the first two innings for the first time this year. Eight of his nine swings and misses overall came on breaking balls, and Strasburg escaped a two-on, two-out jam in the fourth by striking out Carlos Correa. After George Springer’s one-out double put runners at second and third in the fifth, José Altuve struck out on a curve in the dirt and Michael Brantley hit a hard grounder to second. “He has an uncanny ability to slow the game down when he’s under any duress,” Hinch said. Sean Doolittle got the final two outs as the Nationals bullpen headed into Game Seven relatively rested. Verlander dropped to 0-6 with a 5.68 ERA in seven Series starts, a blemish on his otherwise sterling career. “I didn’t really have great feel for the off-speed stuff,” he said. “The last inning just a poorly executed slider and then really just kind of a fastball up and in.” Martinez’s ejection came after Trea Turner was called out for interference when

Bumgarner and the Giants at Kansas City in 2014. Greinke gave up one run over 4 2/3 innings in his first World Series start when the Astros took Game Three. Acquired from Arizona at the trade deadline, the sixtime All-Star is 0-2 with a 5.30 ERA in four starts this postseason. Scherzer is 3-0 with a 2.16 ERA this postseason in four starts and one relief appearance. “For the people that followed this team the whole season, it had to be this way,” Nationals reliever Sean Doolittle said. “It was going to be this way. We’ve had a knack for kind of making things a little tougher than we needed to at times and drawing things out. We got off to the slow start but it just feels like it’s the most 2019 Nats thing for this to come down to Game Seven in the World Series.” AP THE three-time Cy Young Award winner Max Scherzer is set to start this all-or-nothing showdown. AP

he ran on the fair side of the foul line and knocked the mitt off first baseman Yuli Gurriel in the seventh following his slow roller. Washington was leading 3-2 at the time, and would have had runners on second and third with no outs. Martinez tried to protest the game. Joe Torre, MLB’s chief baseball officer, said the long delay that followed—just over 10 minutes—was caused by umpires at Minute Maid Park consulting with the replay room in New York to confirm the decision on the field was not subject to a protest. Rendon’s RBI single through a shifted infield put the Nationals ahead in the first, but Houston needed just four pitches to tie the score. Springer lined a double off the left-field scoreboard, at 112 mph off the bat the hardesthit ball of the Series, and advanced on a wild pitch before scoring on Altuve’s sacrifice fly. Bregman’s third homer of the Series put the Astros ahead on Strasburg’s 12th pitch. He carried his bat out of the batter’s box and tried to hand it to first base Coach Don Kelly, only for the bat to fall as Kelly stuck out his hand for a shake. Strasburg called Bregman’s antics “tired.” “I just let my emotions get the best of me and it’s not how I was raised to play the game,” Bregman said. “I’m sorry for doing that.” Eaton tied the score in the fifth when Verlander hung a slider. Soto, who turned 21 on Friday, followed with his third home run of the Series. Soto, too, flipped the bat at his first base coach, Tim Bogar. “I just thought it was pretty cool,” Soto said when asked if he was mimicking Bregman. “I wanted to do it.”

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Business

Thursday, October 31, 2019

BUKIDNON BOYS TOP 1ST MINDANAO CUP T

HE Bukidnon Football Association (BUFA) squeezed the best from its key players to blank Davao South Regional FA White, 4-0, and capture the First Mindanao Cup held recently at the Tionko Field in Davao City. The victory earned BUFA a ticket to the Luzon Cup in Tarlac late next month on top of the P30,000 worth of football equipment from grassroots football godfather Ricky Yanson, president of the Negros Occidental Football Association (NOFA) who organized the nine-aside tournament. Striker Kurbe Dairo of Our Lady of Lourdes Elementary School (OLLES) issued two superb assists and capped his game-long brilliance with a long-range rocket that more than guaranteed victory in the 40th minute. Also representing the Bukidnon squad besides OLLES were players from Manolo Fortich

Central School, Plantation Elementary School in Camp Philips and Del Monte School. Organized by the Davao South Regional Football Association and NOFA, the Mindanao Cup is a spinoff of the highly successful NOFA Invitational Cup in Bacolod City, an annual agegroup tournament since 2016. According to Yanson, the objective of the Mindanao Cup is to find hidden gems who could someday play for the national football team. “Our goal is to develop young Filipino talents who could hopefully play for our national team in the future,’’ said Yanson, who partnered with DSRFA President Engr. Henry Sabate to stage the tournament. Dairo navigated through the mayhem and found striker Cade Sanchez of Del Monte School for the ice breaker in the 37th minute. A minute later, Dairo sailed a pass from the corner to midfielder Prince Aseniero of

Plantation Elementary School who scored a one-touch goal at the center with no one there to stop him. Sanchez sealed their rivals’s fate with another rocket in the 47th minute as the Bukidnon boys effectively fended off attack after attack from Davao White’s Anthony Elorde, Carlos Donado and Mohammad Abutazil. Frustrating the host team was the stonewall defense built by Jim Fabela, Adriel Algador and goalkeeper Jun Melig. Bukidnon almost swept the individual awards with Dairo hoisting the MVP trophy, Melig being named as Best Goalkeeper, Algador as Best Defender and Aseniero as Best Midfielder. Jedd Gabriel Ceballos of Mt. Apo RFA was adjudged Best Striker after scoring a total of 14 goal in the entire tournament. Davao South RFA Red and Mt. Apo RFA

Davis books 40-20 game in Lakers’ rout of Grizzlies

OS ANGELES—Anthony Davis scored 40 points—including a franchise record 26 made free throws—and had 20 rebounds to help the Los Angeles Lakers beat the Memphis Grizzlies,

120-91, in the National Basketball Association on Tuesday night. It’s the fourth 40-20 game of Davis’s career and his first since 2016. The last Lakers player to

accomplish it was Shaquille O’Neal in 2003. Not a bad night for someone whose status was questionable two hours before the game due to a right shoulder injury suffered in Sunday’s win over

NorthPort’s Bolick out six months with knee injury

THE individual awardees—(front row, from left) Most Valuable Player Kurbe Dairo, Best Defender Adriel Algador and Best Midfielder Prince Aseniero of Bukidnon, Best Striker Jedd Gabriel Ceballos of Mount Apo and Best Goalkeeper Jun Melig of Bukidnon—pose with (back row, from left) Mindanao Cup Tournament Commissioner Noel Presto and Chairman Gary Zanoria, Coach Noel de Oca and Philippine Sports Commission Deputy Executive Director Atty. Guillermo Iroy. COURTESY BY JONARD TAN

wound up third and fourth, respectively, in the competition for boys 11 years old and below. The participating teams were Agusan del Sur FA, Bukidnon FA, Central Butuan District 1 Football Team of Butuan-Agusan del Norte FA, CdO-Little Me Academy FC of Cagayan de Oro-Misamis Oriental FA, Camp Kalaw Football Club of Golden Davao RFA, DavNor RFA, Davao Lola Mommy’s (White) and Davao Lola Mommy’s (Red) of Davao South RFA, Charlotte. Lakers Coach Frank Vogel said 90 minutes before tip-off that he wasn’t sure of Davis’s status. But the seventh-year forward did some shooting drills and was in the starting lineup. LeBron James added 23 points for the Lakers, who are off to their first 3-1 start since winning their first eight in 2010. The Grizzlies (1-3) led 65-59 with seven minutes remaining in the third quarter when the Lakers went on a 27-2 run to close out the quarter. Davis scored 16 during the rally, with all but two of the points coming at the line. The final 10 Lakers’ points in the quarter came via Davis free throws. Ja Morant led the Grizzlies with 16 points while Jonas Valanciunas added 14 points and 11 boards. In Miami, Jimmy Butler made his first four shots and scored 21 in his Miami debut, rookie Tyler Herro scored 29 and the Heat defeated Atlanta, 112-97, in a game where Hawks star Trae Young left early in the second quarter with a sprained right ankle. The 19-year-old Herro had a 19-point

Iligan City Football Academy of Iligan-Lanao del Norte-Lanao del Sur RFA, MRFA Sultan Jolongs FC of Maguindanao RFA, SOCSARGEN RFA of South Cotabato-Sarangani-General Santos RFA, Team MARFA of Mount Apo RFA, SWAT FC of Sultan Kudarat FA, Surigao United of Surigao del Norte and Dinagat Islands RFA, ZANDIFA-Dipolog of Zamboanga del Norte-Dipolog FA and Sta. Lucia Jumbos of Zamboanga del Sur-Pagadian FA. second quarter for Miami, while fellow reserve Goran Dragic scored 21. Bam Adebayo had 17 points and 10 rebounds for Miami and Kendrick Nunn finished with 17. Young left with 9:56 remaining in the first half, turning his ankle when he landed on the foot of Miami’s Justise Winslow. The reigning Eastern Conference player of the week—who had 102 points in Atlanta’s first three games—finished with five points in 11 minutes. John Collins scored 30 for Atlanta, including a career-best five 3-pointers, and Jabari Parker finished with 12 for the Hawks. Butler missed the first three games of the season while celebrating the birth of his daughter Rylee. He was 5 for 11 from the floor, and went 10 for 15 from the line. As a team, Miami was 33 for 45 from the line—compared with 16 for 24 by Atlanta at the stripe. Herro set a Heat record for points off the bench by a rookie, topping the mark of 28 set by Michael Beasley on March 4, 2009. And Herro and Dragic became the ninth Heat duo all-time to have 20-point games off the Miami bench on the same night. AP

Tokyo governor confronts IOC on moving marathon to Sapporo

OKYO—Tokyo Governor Yuriko Koike has told powerful International Olympic Committee (IOC) members she wants the Olympic marathon held in Tokyo and lashed out at what she called an “unprecedented” move to switch the race to the northern city of Sapporo. Koike spoke at a meeting Wednesday in which IOC officials opened three days of talks in Tokyo to discuss progress on the Olympics, which open in just under nine months. IOC officials announced the abrupt change about two weeks ago, switching to the cooler northern city. They said the move came after seeing runners collapse in extreme heat at the marathons at the world track and field championships in Doha, Qatar. Tokyo’s summer heat has been a major worry for Olympic organizers. Sitting on a table with top IOC official John Coates, Koike said “It is my wish for the marathon and race walk to be held in Tokyo.” Koike is openly challenging the authority of the IOC and its powerful President Thomas Bach, who has repeatedly called Tokyo “the best prepared Olympic in history.”

ORTHPORT’S star rookie Robert Bolick stares at a lengthy layoff after suffering a partial ACL tear in his right knee last week. Batang Pier management confirmed that the heavy contender for the Rookie of the Year award will be sidelined for six month after undergoing surgery on Wednesday. “Robert Bolick suffered a partial ACL tear in his last game against SMB [San Miguel Beer]. To address the ACL tear, Bolick opted to go through surgery rather than rehab to ensure full recovery,” NorthPort wrote on its official Twitter account. The product of the multi-titled San Beda Red Lions injured his knee while attempting a drive with eight minutes remaining in the fourth quarter. He never returned to action but the Batang Pier still won, 127-119. Bolick is averaging 12.9 points, five rebounds and six assists in the Philippine Basketball Association Governors’ Cup. He also turned heads with his strong showing with the Gilas Pilipinas in the Fiba World Cup in China last August. NorthPort will try to fill the void left by the 24-year-old player as the team braces for a late push in the elimination round. Currently in eighth place with a 3-4 won-lost record, the Batang Pier have four left games in the calendar. Christian Standhardinger, meanwhile, has started to prove his worth. The sophomore big man made an immediate impact right in his first outing for new team NorthPort in the Governors Cup and his breakout game for the Batang Pier came at the expense of his former team San Miguel Beer. Standhardinger has 18 points, five rebounds, seven assists and two steals as NorthPort outgunned Dezmine Wells and the mighty Beermen, 127-119, at the Astrodome. It was somewhat an emotional game for the 6-foot-7 Standhardinger as he was playing his first game since being shipped by the Beermen to the Batang Pier in a straight-up trade consummated two weeks ago. The 6-foot-7 Standhardinger didn’t mince words that his all-around effort was borne out of his desire to prove himself worthy against the team that went out of its way to make him the top overall pick in the 2017 PBA draft. “I have to prove to them that I think they made a mistake,” he said. “I got to be the player I can be and play my heart out to prove to the [San Miguel] coaching staff, to coach Leo that he could have played me more. I could have more. And now that’s how it is.” The hard work did pay off as Standhardinger was the runaway choice as the PBA Press Corps-Cignal Player of the Week for the period October 21 to 27. Ramon Rafael Bonilla ROBERT BOLICK opts to go through surgery rather than rehab to ensure full recovery.

Tokyo city officials were in a public feud with the IOC over its plans—made without consulting the city or local organizers—to move the marathons 800 kilometers north to Sapporo to avoid the capital’s summer heat. Koike is angry about it. Her allies say no change is needed and have raised questions about who will pay if the move goes through, and have not ruled out a lawsuit to recover damages. Taro Shirato and Hiroshi Yamada, members of Koike’s political party in the metropolitan legislature, told a news conference Tuesday that moving the marathon would cost at least ¥34 billion (about $310 million). The IOC said it is making the change, thinking first of athletes’ safety from Tokyo’s blistering summer heat. Koike’s allies offered a different take. Koike is one of Japan’s most influential politicians and just a few years ago was viewed as a potential candidate for prime minister. And she’s miffed about not being consulted. “Although they [IOC] talk about so-called athletes first, this can only be perceived as IOC first,” Shirato said through an interpreter. AP

Poblete lifts Fil-Chi five to victory

HE Filipino-Chinese Veterans Basketball Association (FCVBA) launched its title drive on winning note by blasting Asaba of Indonesia, 30-21, at the start of the Asean Veterans Basketball Tournament on Monday at Indoor Stadium 3 of the Chiang Mai Sports Complex in Chiang Mai, Thailand. Former Philippine standout Roberto Poblete made his FCVBA debut memorable by leading the team with 14 points—most he made in the third quarter where the Fil-Chinese seniors pulled away for good. Rain or Shine co-team owner Terry Que also contributed significant numbers with eight points and three assists as the Elmer Reyes-coached

FCVBA made its desire felt to regain the title it lost last year in Hatyai. “We hope we can build enough momentum from this win,” said Ironcon Builders owner Jimi Lim, who along with Que bankrolled the participation of the association’s 65-above team in the annual tournament. Former Crispa player Joel Gomez scored only two points in five attempts but his lone basket pushed FCVBA beyond Asaba’s reach as the Fil-

Chinese seniors took a 30-15 advantage with only three minutes remaining. The rousing win was a fitting gift to another former Crispa player Bong de la Cruz, who turned 67 on Monday. Also contributing to FCVBA’s cause were Andrew Ongteco, Achit Kaw, William Lao, Ching Ka Lee, Antonio Go and MICAA veteran Zotico Tan of Cebu. FCVBA will go for a two-game sweep of Group B eliminations when it takes on Sarawak of Malaysia on Thursday. Making up Group A are defending champion Hatyai, Pontianak and Zaap—all from host Thailand.

orts

sMirror

Thursday, October 31, 2019

‘BusinessMirror Golf’ a rousing success TESSA JAZMINES tessa4347@gmail.com

PART OF THE GAME

Katipunan Chronicles

BusinessMirror Publisher T. Anthony Cabangon is joined by the participants of the “BusinessMirror Golf Tournament” at the Mount Malarayat Golf and Country Club. BERNARD TESTA

AYMUND SANGIL emerged as low gross champion and Leo Gerardo Salud ran away with the low net trophy in the second edition of the “BusinessMirror Golf Tournament” (BGT) that gathered more than a hundred participants at the sprawling Mount Malarayat Golf and Country Club in Lipa City recently. Anthony Tan took the Class A honors, with Jun Arceo emerging as runner-up, while Francisco de Leon and Hermie Perez finished 1-2 in Class B of the tournament staged at Malarayat’s wellmanicured championship course made pictureperfect by a scenic mountain views and relaxing by a cool breeze Lipa City is known for.

A total of 106 golfers graced a day of fun on the greens, camaraderie and lots of prizes with BusinessMirror Publisher T. Anthony Cabangon hitting the ceremonial ball. Gracing the event were Jin-cheol Lee, director of Korean Cultural Center in the Philippines; Dr. Roland Schissau, Charge’ d’ Affaires of the German Embassy, and former Tourism Assistant Secretary Frederick Alegre. Businessmen and top executives from various industries, business partners and friends also joined the 18-hole event. Vic de Guzman ruled Class C with Adamson Go finishing second, while Roy Rafael Aclan

(champion) and Jay Ocampo (runner-up) topped the Senior division and Rolando Medina (champion) and Gerardo Elazegui (runner-up) dominated the Super Senior class. Ma. Cecillia Madriaga took the Ladies tiara followed by Caroline Magpantay and Feliciano Baron who were the Open titlist with Natalio Albana winding up as runner-up in the event backed by Mount Malarayat Golf & Country Club, San Miguel Corp., Autohub Group, Kampfortis Golf, The Turf Co., Megafiber/CranUTI (Whealth Co.), JJH Ventures/Japan Tobacco International, Sharp (Phils.) Corp., Eurotel, Camp John Hay (Manor

Hotel & Forest Lodge), Suzuki-Lipa (Lica Group), Forest Hills Golf & Country Club Inc. G&W Clubshares Inc. and Selah Hotel. Also supporting the tournament were Winford Manila Resort & Casino, Federation of Philippine Industries, Fundador, GScore, SeedWorks, UCC, King Sue Ham & Sausage, Meralco, Pagcor, Fierra de Manila Inc., Mega Prime, JAC Motors Philippines (Lica Group), RizGolf, Luneta Advertising, Udenna Group-Donatela Hotel, Eternal Gardens-Lipa, AMTI, Richmonde HotelOrtigas, Richmonde Hotel-Eastwood, Stevia (Glorious Industrial & Development Corp.), Tang, HINO Motors Philippines, XYN Smart Lifestyle,

Taal Vista, Las Casas Filipinas de Acuzar, Valera Consultancy & PR, McDonalds Charity, Business Express and ABI- Summit & Heineken. The Save the Children Philippines Inc. was the event’s beneficiary. After a challenging day at the fairways, participants enjoyed refreshments and a sumptuous lunch while awards and raffle prizes were given away. Each participant went home with a minor raffle prize and the division champions received premium home appliances and trophies. The 2020 Business Mirror Golf Tournament is set in October.

a sweep of the 14-game eliminations for an outright seat in the Finals. But for Ateneo Head Coach Tab Baldwin, they have more important things to to. “We understand that this is a significant accomplishment for a basketball team. But you know, the job is not yet done,” Baldwin said. “But it’s not going to be very difficult for us to get our focus on the playoffs when the stepladder takes place and see who comes out of it.” Because of the sweep, the stepladder semifinals will be enforced. No. 3 University of Santo Tomas and No. 4 Far Eastern University square off first to

determine which gets to play UP— which owns a twice-to-beat edge in the playoffs—for the right to face Ateneo in the race-to-two Finals. Ivory Coast center Ange Kouame scored 20 points and grabbed 12 rebounds along with five blocks to lead Ateneo. SJ Belangel added 14 points, while Wil Navarro and Thirdy Ravena had 13 and 11 points, respectively From a 21-20 lead in the first period, Kouame and Belangel took turns plowing through the hapless Maroons side for a 25-11 scoring blitz before the half.

Matt Nieto’s triple with 7:45 left in the final quarter widened Ateneo’s lead to 73-49. Kobe Paras topscored with 13 points and seven rebounds, while Bright Akhuetie chipped in 11 points and six boards for UP which took its fifth loss in 14 matches. Rey Suerte, meanwhile, unleashed 25 points to give University of the East a graceful exit—a 79-77 win over National University also on Wednesday. Suerte drilled a triple that made it 74-72 with 42.2 seconds left. A last-ditch effort from the Bulldogs went for naught as the Red Warriors showed composure in the waning moments to end the season at 4-10 won-lost, better than NU’s league-worst 2-12.

Also on Wednesday, De La Salle, behind Jamie Malonzo’s hot hands, beat Adamson University, 89-63, in another battle of eliminated teams. The Green Archers closed out with a 7-7 card, while Adamson University dropped to 4-10. The Fil-American forward Malonzo had a career-high 34 points built on seven triples. In women’s play, Ateneo leaned on its graduating seniors to score a wire-to-wire 62-46 win over also over a UP side at UST’s Quadricentennial Pavilion. Graduating Lady Eagles Katrina Guytingco and Alyssa Villamor each had 16 points in their last game as Lady Eagles, leading their team to a 5-9 card. UP closed out with a 1-13 record.

SWEEP BY BLUE EAGLES By Ramon Rafael Bonilla

TENEO sent a stern warning to anyone aspiring to steal its throne when it dealt No. 2 seed University of the Philippines (UP) an 86-64 thrashing in the University Athletic Association of the Philippines Season 82 men’s basketball tournament before a sellout crowd at the MOA Arena on Wednesday. The defending champion Blue Eagles waded in the first quarter before creating a giant splash starting in the second period to send the Fighting Maroons down to their senses. The result wasn’t only a rout of probably their worthiest opponent, but, more important,

Dragonboat, soft tennis, volley squads polish skills for SEAG

HE national teams for dragonboat, canoe and kayak, and soft tennis are entering the final phase of their preparations for the 30th Southeast Asian Games, hoping to hone further for their gold medal projections the country is hosting from November 30 to December 11. Head Coach Len Escollante said her paddlers are eyeing three of the six gold medals staked in dragonboat—the 1,000-meter and 200-meter mixed standard boat and 500-meter men’s four-seater. But to guarantee a successful campaign, the paddlers will hone their skills further in the International Canoe Federation Dragonboat World Cup in Ningbo, China. The team leaves for the event on Thursday. “I’m glad that this World Cup came at least a month before the SEA Games. At least we can see where we are right now in terms of preparation and which areas we need to improve on for the SEA Games,” Escollante said. Escollante said the Philippine Sports Commission (PSC), through Chairman William “Butch” Ramirez, is behind them all the way. “Chairman Ramirez and the PSC have been very supportive. They give everything we need from financial support to equipment and other assistance,” she said. The soft tennis team, meanwhile, entered the final phase of its preparations by competing in the 16th World Soft Tennis Championships in Taizhou, Zheijang Province, also in China. Led by Joseph Arcilla, Noel Damian Jr., Bien Zoleta-Mañalac and Princess Catindig, the 11-member team has high hopes of playing in the world tournament at a high level. Arcilla clinched bronze in the 2011 worlds,

a feat Zoleta-Mañalac duplicated in 2015. The team to the Taizhou worlds is composed of six men and five women who will vie in singles, doubles, mixed doubles and team events. Soft tennis is making a comeback in the SEA Games after an eight-year absence. The Philippines clinched a silver and five bronze medals in the 2011 Palembang (Indonesia) Games, the last time the sport was on the program. Joining Arcilla and Zoleta-Mañalac in the team are Catindig, Bambi Zoleta, Erdilyn Peralta, Damian, Mark Anthony Alcoseba, Mikoff Manduriao and Dheo Talatayod. They are coached by Divine Escala and Mike Enriquez. The national women’s volleyball team, on the other hand, gets a taste of competitive action when it vies in the Philippine Superliga Super Cup starting on Tuesday at the Filoil Flying V Centre in San Juan. The Nationals, who will be returning from a 12-day training camp in Tokyo on Friday, will face three other teams in a mini-tournament that aims to test their cohesiveness and readiness for the SEA Games. Besides the league’s two selection squads—Team Sparkle and Team Shine—the women’s team of Tsukuba University will also challenge the Nationals. Tsukuba is the reigning champion of the All-Japan Intercollegiate Volleyball Championship and is tipped to come up with a solid performance. “We organized this tournament to help the national team in its preparation for the Southeast Asian Games,” PSL Chairman Philip Ella Juico said.

PHILIPPINE Southeast Asian Games Organizing Committee (Phisgoc) Chairman and House Speaker Alan Peter Cayetano (second from left) make the “We Win As One” sign with (from left) Bases Conversion and Development Authority President Vince Dizon, Philippine Sports Commission Chairman Chairman William Ramirez and Phisgoc COO Ramon Suzara.

PHISGOC: WE ARE READY T

HE Philippines is ready to host the 30th edition of the Southeast Asian Games. This was the declaration of the Philippine Southeast Asian Games Organizing Committee (Phisgoc) top brass during the third and final Chef de Mission Meeting on Wednesday in Clark. Asked to grade the status of preparations of the organizing committee for this year’s Southeast Asian Games hosting, Phisgoc COO Ramon Suzara said, “We are almost there. In a scale of 1 to 10, we are at 9,” Suzara said. With Suzara in the meeting were Phisgoc Chairman and House Speaker Alan Peter Cayetano, Philippine Sports Commission Chairman and Team

Philippines Chef de Mission William Ramirez, and Presidential Adviser for Flagship Programs and Projects, and Bases Conversion and Development Authority’s President Vince Dizon. Cayetano thanked Ramirez for all the help the PSC has been extending to the organizing committee, stressing that “it is not easy because the chairman is juggling three tasks at the same time.” Seven out of 11 CDMs were present in the press briefing with the other four represented by their deputies. The Phisgoc also welcomed the Games’—set from November 30 to December 11 in multiple venues—new sponsors

Phoenix Petroleum and FamilyMart under the Udenna Corp., Nlex Corp., Philippine National Bank, Bombo Radyo, Filinvest City Alabang, China Bank and Ibarra Watches for Cronometradores Filipinas Inc. Cayetano underscored the importance of proper investing and cited how partnering with the Phisgoc serves as its partners’ investment not only as a business move but more on the growth of the Filipino people. “You are actually investing on our people,” Cayetano told the new sponsors. Suzara, meanwhile, introduced the newly appointed spokesman of the Phisgoc, Atty. Jarie Osias, who is also the committee’s director for legal affairs.

AS I write this piece, the undefeated Ateneo Blue Eagles faces the surging University of the Philippines (UP) Fighting Maroons in the last game of the University Athletic Association of the Philippines (UAAP) eliminations. Billed as the Battle of Katipunan 2.0, the contest is not really about a patch of Earth somewhere in between the hills of Loyola to the south of Katipunan Avenue and the mini rainforest that is UP Diliman toward the north. It is a battle, or shall we say, a comparison of systems and styles, of ideologies and outlook. Ateneo is the invincible, Grade A basketball team steeped in a way of play many call the Tab Baldwin system. It is a scientific, systematic, efficient system complemented by highly skilled, very disciplined, high-performing talents on its roster. Its game is nearly foolproof, and even when the team sometimes experiences turbulence, the vessel always rights itself, follows its projected path and arrives alive in the end. UP is the idol still contemplating its feet of clay. Touted as a highly talented team stacked with star performers, it is on paper the team to beat. What it is still working on, however, is very basic: chemistry. The challenge is akin to getting new shoes to feel comfy, or breaking in a new car. But if all the components merge, click and deliver, this team would be scary indeed, as UP star player Kobe Paras said. “We always come back and we always fight so I think that’s just how we are as a team. I just can’t wait for that day until we really click because that’s gonna be really scary,” Kobe said in a media interview. Record-wise, Ateneo has owned UP since the second round of Season 72 in 2009. (In the first round, the lowly Maroons defeated and stunned an Ateneo team that had Rabeh Al-Hussaini, Ryan Buenafe, Chris Tiu, Nonoy Baclao and Jai Reyes. Ateneo would go on to win the title that year.) Since then, Battles of Katipunan have been mere skirmishes as UP rode out lackluster and dismal seasons. And then came Season 81. That year, the Blue Eagles defeated the Fighting Maroons twice in the eliminations. It seemed expected. But UP made music with other teams, managing to book a seat in the Final Four and defeating twice-tobeat Adamson U in the semis. Still, when Ateneo faced UP in the Finals, UP looked like a surprise guest. The Eagles soared as per their nature, not even giving their Katipunan neighbors the opportunity to flex. Still, the UAAP Finals strangers won the hearts of the crowd, well beyond the UAAP circle—for their fighting heart, for their bruised past, for their incredible journey that brought them that far. In short, the Fighting Maroons lost the championship, but they won more than that. This year, in Season 82, the Blue Eagles and the Fighting Maroons are again avidly followed as the top and second seeds of the basketball tournament. The Eagles mastered the Maroons the first time they met on September 29, almost exactly to the day. But the Maroons, who have managed to hang on to second place all season long, are not quite the same team they were in September. This time around, they seem more cohesive, more fluid, tougher-minded and thinking as one. The Blue Eagles still are the superior team, the Grade A of the league and the standard to measure one’s worth against. But unlike the last two times they met, in Game One of the Season 81 Finals and in the first round of Season 82, these Fighting Maroons seem better poised to give a good fight, take the Eagles out of the comfort of their aerie and take them to the ground. It will be a game of contrasting styles: the disciplined, systematic and efficient Ateneo way versus the emotional, up and down game of UP capped by a cardiac finish. It will be interesting to observe the no-nonsense Ateneo machine take care of business with almost zero mistakes and cool expressions on the players’ faces. Compare that to the syncopated rhythm of the Fighting Maroons, their sometimes careless ways, and the choked up look on Jun Manzo’s face as he tries to devise new ways to turn the tide in UP’s favor. Think “near perfection” versus “very human.” That’s the underlying current of this Battle of Katipunan that has been responsible for sold-out tickets in venues where UP-AdMU games are played. This is the new rivalry that has captured the imagination of basketball lovers of the present age. The result of the games today will determine whether University of Santo Tomas and Far Eastern University knock each other out to play twice-to-beat UP before the winner of that next encounter plays waiting Ateneo; or whether top seed Ateneo plays fourth seed UST and third place FEU faces second place UP in the next stage of the semifinals. But by the time you read this, all of that will be moot and academic. A step ladder format or the usual oneversus-four, two-versus-three Final Four play will already be in place. Whoever won between UP and Ateneo yesterday will not really indicate whether Coach Tab’s system is superior to the familial, Pinoy style of Coach Bo and his tribe. Or the other way around. What it will show is that beyond systems, styles and philosophies, there are more intangibles at play that will affect the final outcome of every encounter. Hope you enjoyed yesterday’s Katipunan revolution. Now on to the next mountain!

NCAA: IT’S GAME TIME! T

By Ralph D. Russo The Associated Press

HE NCAA took a major step Tuesday toward allowing college athletes to cash in on their fame, voting to permit them to “benefit from the use of their name, image and likeness.” The nation’s largest governing body for college sports and its member schools now must figure out how to allow athletes to profit—something they have fought against doing for years—while still maintaining rules regarding amateurism. The NCAA Board of Governors, meeting at Emory University in Atlanta,

directed each of the NCAA’s three divisions to create the necessary new rules immediately and have them in place no later than January 2021. Board Chairman Michael Drake, the president of Ohio State University, said the NCAA must embrace change and modernize “to provide the best possible experience for college athletes.” But such changes will come with limitations, he said. “The board is emphasizing that change must be consistent with the values of college sports and higher education, and not turn student-athletes into employees of institutions,” Drake told The Associated Press. A group of NCAA administrators has been exploring

since May the ways in which athletes could be allowed to receive compensation for the use of their names, images and likenesses. The working group, led by Ohio State Athletic Director Gene Smith and Big East Commissioner Val Ackerman, presented a status report Tuesday to the university presidents who make up the Board of Governors. Smith and Ackerman’s group laid out principles and guidelines, endorsed by the board, to be followed as NCAA members go about crafting new rules and tweaking existing ones, including: Some college sports leaders fear allowing athletes to earn outside income could open the door to corruption.

“One of the most distinctive things about college sports is this whole recruitment process,” NCAA President Mark Emmert told the AP. “The whole notion of trying to maintain as fair a playing field as you can is really central to all this. And using sponsorship arrangements, in one way or another, as recruiting inducements is something everybody is deeply concerned about.” Ackerman and Smith said the challenges lie in determining what regulations need to be set in place; what markets athletes should be allowed to access; what entities and individuals they should be permitted to work with; and whether the schools

Sports BusinessMirror

| Thursday, October 31, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

GEARING UP England players embrace during a training session in Tokyo on Wednesday. England will play South Africa in the Rugby World Cup final on Saturday in Yokohama. AP

themselves could provide funds to athletes through licensing deals. The NCAA’s move came a month after California passed a law that would make it illegal for NCAA schools to prohibit college athletes from making money on endorsements, autograph signings and social-media advertising, among other activities. “California has made it clear that we won’t accept any arbitrary limitations on college athletes’ right to their name, image, and likeness,” state Sen. Nancy Skinner, who cosponsored the bill, posted in Twitter. The California law goes into effect in 2023. More than a dozen states have followed with similar legislation, some of which could be on the books as soon as next year. “This is another attempt by the NCAA at stalling on this issue,” said Ramogi Huma, executive director of the National College Players Association, an advocacy group. It’s hard to say exactly how much athletes could fetch on an open market for their names. It could range from a few hundred dollars for creating personalized video and audio greetings for fans through companies such as Cameo, to thousands of dollars for doing television advertisements for local businesses. NCAA rules allow for an athletic scholarship that covers tuition, room and board, books and a cost-ofattendance stipend. The cost of attendance is determined by the institution using federal guidelines and generally ranges from $2,000 to $5,000 per semester. Gabe Feldman, director of the Tulane University sports law program, said the NCAA has taken an important step by recognizing its rules are antiquated. “But the ultimate question is how are the rules modified to both allow college athletes to profit from their name, image and likeness, while also being consistent with the collegiate model,” Feldman said. The NCAA has said California’s law is unconstitutional, and any states that pass similar legislation could see their athletes and schools being declared ineligible to compete. But the board also said it hopes to reach a resolution with states without going to court. In addition to pending state laws, North Carolina Republican US Rep. Mark Walker has proposed a national bill that would prohibit the NCAA and its member schools from restricting athletes from selling the rights to their names, images and likenesses to third-party buyers on the open market.

McIlroy looking to end great year on big note S

HANGHAI—Already the FedEx Cup champion and Professional Golfers Association (PGA) Tour player of the year, Rory McIlroy has found plenty of motivation toward the back end of the year. Most of it is geared toward reaping rewards next year. McIlroy is coming off a tie for third last week in Japan, a tournament he was never going to win after a bad start. He still managed his 17th top 10 of the year out of 23 tournaments worldwide, inching a little closer to Brooks Koepka at No. 1 in the world. “I don’t think I’ll get there by the end of the year,” McIlroy said Wednesday at the HSBC Champions, the final World Golf Championships event of the year. “But if I play well the next few weeks, I’ll have a great platform going into next year.” He is the leading figure at Sheshan International, where the field is slightly weaker than years past because Koepka and Dustin Johnson, two regulars at the HSBC Champions, are home in Florida recovering from knee issues. Koepka will not play another official event the rest of the year. He withdrew from the CJ Cup in South Korea when his foot slipped on a piece of wet cement leaving

a tee box and he planted hard with his left knee, which had received stem cell treatment during his offseason. He chose not to play the Hero World Challenge in the Bahamas, and still to be determined is whether he plays the Presidents Cup. McIlroy has the HSBC Champions and the DP World Tour Championship in Dubai, with hopes of narrowing the gap. McIlroy started the year at No. 8 and moved up to No. 2 through his three victories, including The Players Championship and Tour Championship, along with runner-up finishes in two World Golf Championships. “I’ve achieved most things that I’ve wanted to this year,” McIlroy said. “Just want to finish the year off strongly because I feel the year that I’ve had deserves a finish like that.” What he didn’t achieve was winning a major, making it five years since his last major tile. He also has gone four years since capturing a WGC event, though he has performed well in them this year—runner-up to Johnson in Mexico and Koepka in Memphis, a bitter loss in the fourth round to Tiger Woods in Texas at the Match Play. Xander Schauffele is the defending champion at the HSBC Champions, and he’ll try to win again without much of a voice. Schauffele got sick during the ZoZo Championship in Japan last week and withdrew from the pro-am Wednesday to try to be in fighting shape. The field also features resurgent Hideki Matsuyama, who tied for third in South Korea and was runner-up to

Woods last week before a frenzied gallery in his native Japan; and Justin Rose, who also wants to finish the year strong for other reasons. Rose, who was No. 1 in the world for the opening two months of the year, has gone the opposite direction of McIlroy. He is at No. 8, and hopes to get back on track at the tournament where he rallied from eight shots behind to win in 2017. He is at No. 29 in the Race to Dubai, a long shot to win, although he was quick to point out that was the position he was in two years ago. He won in Shanghai, he won the following week in Turkey and nearly pulled it off in Dubai. “I’ve probably got to win the last three to challenge the guys that are doing really well, but that’s the situation I put myself in 2017 and I very nearly did it,” Rose said. “Looking forward to going back to the well and trying again.” One change this year for Rose is his travel schedule. Unlike 2017, when he played two weeks, flew home to the Bahamas and then returned to Dubai, he is going to London after two weeks to ease the wear-and-tear of travel. The HSBC Champions is the last chance for players

to audition as wild-card picks for the Presidents Cup, and most everyone on the bubble is here—Tony Finau, Patrick Reed, Kevin Kisner and Chez Reavie for the Americans, a longer list of International players from Sungjae Im and Byeong Hun An of South Korea, Adam Hadwin and Corey Conners of South Africa, Justin Harding and Erik van Rooyen of South Africa. Reavie is among 18 players who have gone to all three PGA Tour events on the Asia swing. AP

TIGHT PLAY Seattle Sounders midfielder Gustav Svensson (left) vies for a head ball against

Los Angeles FC defenders Walker Zimmerman (center) and Eddie Segura during the first half of their Major League Soccer Western Conference final Tuesday in Los Angeles. The Sounders won, 3-1. AP

RORY MCILROY: I’ve achieved most things that I’ve wanted to this year. AP

North Korean women’s team to skip competition in South

EOUL, South Korea—North Korea won’t send its women’s soccer team to a regional competition in South Korea in December amid strained ties between the two countries. The East Asian Football Federation said Wednesday that North Korea informed it in mid-September that it won’t take part in the 2019 EAFF E-1 championship in the southeastern city of Busan. “Given that North Korea told us it won’t participate in the event for broad, complex reasons, we believe North Korea’s football association wasn’t able to perfectly handle the matter by itself, so we don’t plan to impose punitive measures on it,” Park Yong-soo, the EAFF general secretary, said. South Korea’s soccer association said it also confirmed North Korea’s decision when association officials visited Pyongyang earlier this month for a men’s World Cup qualifier match between the two Koreas. Korean Football Association officials said North Korea gave no reason for deciding not to send a women’s team. The development is yet another sign of deteriorating sporting ties between the two Koreas amid lack of progress in a broader global diplomacy on North Korea’s

nuclear program. North Korea blocked fans and international media from attending the World Cup qualifier at an empty stadium in Pyongyang. There was no live broadcast of the match, which ended in a scoreless draw. Fifa President Gianni Infantino said he was “disappointed.” South Korea’s soccer association later sought a sanction for North Korea, sending a letter to the Asian Football Confederation and arguing that North Korea failed to uphold rules requiring host nations to grant visas and entries for traveling supporters and media without discrimination. Sports exchanges often mirror the status of political ties between the two Koreas, which remain split along the world’s most heavily fortified border for about 70 years. Last year, athletes from the two Koreas walked together during the opening ceremony of the Winter Olympics in Pyeongchang, South Korea and fielded a joint team in some events as their relations improved ahead of the start of the nuclear diplomacy. But North Korea boycotted the 1986 Asian Games and the 1988 Summer Olympics, both held in Seoul. AP

Shepherding God

EAR God, You guard us like a shepherd guards the flock. In faith we pray: Bring us to life by the light of the Gospel, oh God. Inspirit the baptized to study and embrace the social teachings of the Church. Heal those who suffer relationship wounds or the betrayal of a trust. Console the grieving and gladden them after their sorrows. May the word of God in all its richness dwell in our hearts and minds, through Christ, now and always. Amen. GIVE US THIS DAY, SHARED BY LUISA LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Life BusinessMirror

Balmy I Balesin

BY BenJAmin LAYuG

’D already heard about Balesin Island, off the eastern coast of Luzon, since way back in high school from my classmate Anthony Tordesillas whose father, the late Board of Investment Head Edgardo Tordesillas, acquired the island from Felipe “Baby” Ysmael in 1967, and set about building tourism

facilities on the island. A chance encounter with Anthony after high school elicited an invitation to visit the island with him but for reasons I can’t recall, I wasn’t able to join him. After Anthony’s passing in 2012, I thought the opportunity to visit this now members-only, private leisure getaway, now called Balesin Island Club, has finally passed me by. That is, until my wife Grace and her boss Engr.

REELING: WHAT QUESTIONS WOULD YOU ASK DA VINCI? D4

Thursday, October 31, 2019

Loy Ganzon were invited to a wedding there as godparents. We gladly joined them. From the Alphaland Aviation Lounge in Manila, we got to Balesin via a short 25-minute flight on board their 68-seater ATR 72-100, landing at the island’s aptly named E.L. Tordesillas Airport. From the Welcome

Continued on d2

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Thursday, October 31, 2019

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www.businessmirror.com.ph

Today’s Horoscope

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By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Justin Chatwin, 37; Mike O’Malley, 53; Dermot Mulroney, 56; Brian Doyle-Murray, 74.

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HAPPY BIRTHDAY: Be cautious when dealing with others. If you are insensitive or you overreact, it will cause a ruckus in your relationships with others. Aim for consistency, offering helpful suggestions and steering clear of any sort of meddling. You’ll be walking a fine line if you get involved in the affairs of others. Focus more on self-improvement, not changing others. Your lucky numbers are 7, 12, 15, 22, 31, 38, 43.

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ARIES (March 21-April 19): Don’t limit what you can do. Check your personal finances and talk to an expert about a purchase or investment. Reconnect with someone you enjoyed working with in the past and see what transpires. Don’t let a personal relationship ruin an opportunity. HHHHH

❶ BALESIN

Village’s beach, the longest in the island

❷ SPANISH

elegance at Costa del Sol

❸ THE Water Villa at Bali Village

❹ TOSCANA Village

❺ THE tastefully furnished villa Phuket Village

TAURUS (April 20-May 20): Don’t obsess over something. Once in a while you have to take a step back and enjoy what life has to offer. Look for the positives, not the negatives. A personal relationship should not be allowed to interfere with professional goals. HH

Balmy Balesin Continued from D1 Center, we were all brought to our respective villas via air-conditioned vans. The island’s name is a combination of two Filipino words: balete (local name for a banyan tree) and asin (local word for “salt”). Now Alphaland Corp.’s flagship project, Balesin Island Club is a 500-hectare, 5 kilometer long tropical island paradise with 7.3 kilometers of pristine white-sand beaches. Around 10 percent of the island has been developed to create this award-winning luxury resort. Balesin, master planned by EcoPlan of Miami, Florida, USA, to optimize ecological sustainability, was meticulously designed to be in perfect harmony with its natural surroundings. With the enhancement of everything in its environment uppermost in their mind without scrimping on luxurious, top-notch facilities, Alphaland adapted the “Three Pillar Innovation”— People, Planet and Profit. They reduced the amount of waste and ensured sustainable development via island-wide rain water harvesting (runoff from the 1.5-km. airport runway provides over 100 million liters of water annually), 80

percent water recycling (for landscaping during the summer), reverse osmosis plant, on-site eco-friendly transportation, organic farming and alternative sources of energy. The island’s coral reefs were also managed for diving and sustainable fishing. During the 14th United Nations World Tourism Organization Awards, the resort nabbed second place for Innovation and Excellence in Tourism—the first in the history of the Philippines. A world completely unto itself, this beauty of an island has seven themed villages patterned and inspired from the most alluring, world-class luxury beach destinations where everything—from architecture, interior design, landscaping and food—is recreated: Balinese for Bali Village, Greek for Mykonos Village, French (Riviera) for Saint Tropez Village, Spanish for Costa del Sol, Filipino at Balesin Village, Italian (Tuscany) at Toscana Village and Thai for Phuket Village. We all stayed at the latter. Our villa had a jacuzzi plus an outdoor deck with daybed, lounge chairs and tables, all facing a white-sand beach and the sunset. As we just stayed on the island for three days, we didn’t get to experience all the different cuisine the island had to offer but we did get to try breakfast at

c Balesin Sala (Balesin Village) and the Main Clubhouse (the centerpiece of the resort together with the stateof-the-art wellness facility), Spanish cuisine for lunch at Casa Grande (Costa del Sol) and, for dinner, Thai cuisine at Sawadee (Phuket Village) and Japanese cuisine at Sakura (Main Clubhouse). A scheduled afternoon tour, this time via an airconditioned bus, took us around the island, visiting each of the themed villages, the 14-suite Balesin Royal Villa (situated on a bluff with a view of Lamon Bay), the Family Picnic Grove and Organic Farm (where seafood and organic produce, for the restaurants, are cultivated at specially made fish pens and greenhouses, respectively), the Aviary (where we had intimate encounters with some exotic birds), and the Chapel across it (where the wedding was to take place). Aside from beaches, all the themed villages have swimming pools. My favorite is the dramatic indoor/outdoor Poseidon pool at Mykonos Village, with its infinity pool looking out into the ocean. Nearby are two outdoor jacuzzis. Aside from the air-conditioned vans, jeepneys and buses, the resort also uses electric golf carts to go around the island to reduce its carbon footprints. n

CLUB PARADISE PALAWAN NAMED GLOBAL WINNER IN 2019 WORLD LUXURY HOTEL AWARDS CLUB Paradise is a great destination for families

CLUB Paradise Palawan scored its most recent recognition as a Global Winner in the Luxury Family Beach Resort category in the 2019 World Luxury Hotel Awards held at the Arctic TreeHouse Hotel and SantaPark in Rovaniemi, Finnish Lapland, on October 12. The World Luxury Hotel Awards recognize establishments for world-class service excellence. Awards are presented on a country, regional, continental and global basis where winners are selected by public vote, providing true recognition that reflects the hard work and dedication exhibited by the staff. Established in 2006, the World Luxury Hotel Awards is one of the most coveted achievement in the luxury hotel industry. “True luxury is not easily attained. It takes a highly efficient and dedicated staff who are willing to go the extra mile and stop at nothing to ensure that every guest feels cared for, and no challenge goes unresolved. This is the definition of luxury. It is what makes the winners shine,” says World Luxury Awards

GEMINI (May 21-June 20): Use common sense when dealing with others. Whether at home or work, listen to what others have to contribute. Working with the popular consensus will give you more leverage to persuade others to see things your way. HHHH

CANCER (June 21-July 22): Making unnecessary purchases, trying to impress someone with your possessions or buying love will lead to a lack of cash. Be smart with your money and you’ll come out ahead. Take better care of your health through proper diet and exercise. HHH

LEO (July 23-Aug. 22): Practice moderation. Use common sense. If you make promises, you’ll end up backtracking when you realize how much it will cost you emotionally, financially or physically. Take a step back and reconsider what’s possible. HHH

VIRGO (Aug. 23-Sept. 22): Take on whatever role is necessary to get what you want. Make a change that will improve your life. Consider a move, picking up more skills or making sure you are current on the latest technology. HHH

LIBRA (Sept. 23-Oct. 22): Keep your emotions out of the workplace. Becoming too chummy with someone who can affect your income will backfire. Situations will escalate quickly if you are misleading or flirtatious. HHHH

SCORPIO (Oct. 23-Nov. 21): Pay closer attention to the way you look and how you do things. If you are in sync with how you feel and what brings you joy, you will know exactly what to do to inspire yourself to press forward. HH

i j

SAGITTARIUS (Nov. 22-Dec. 21): Times are changing, and opportunities are heading your way. Put a strategy together and pick up the pace. An aggressive approach to raising your income will lead to new opportunities. HHHHH CAPRICORN (Dec. 22-Jan. 19): Redesign your future. Look at what it is that makes you happy and head in that direction. Personal change should bring you closer to someone you love. A serious conversation will lead to a better lifestyle. HHH

k Marketing Director Michael Hunter-Smith, as he congratulated all the winners. Owned by the Discovery World Corp. and managed by the Discovery Hospitality Corp., Club Paradise Palawan’s exemplary facilities and its world-renowned Filipino hospitality have earned the recognition of World Luxury Hotel Awards for the third time. Located along the Unesco Biosphere Reserve, Club Paradise Palawan (www.clubparadisepalawan.com) is an exclusive island resort in Coron, strategically located

amid Coron’s tourist attractions and exhilarating dive sites. It’s a tropical paradise that offers pristine white sand beaches, rustic and charming accommodations, colorful flora and fauna, and a myriad of outdoor activities perfect for all members of the family. “We are honored to be a recipient of this prestigious recognition and, likewise, grateful to our dear friends, partners and guests for their continued support for the brand and genuine Filipino hospitality,” says Joegil Magtanggol Escobar, hotel manager of Club Paradise Palawan.

AQUARIUS (Jan. 20-Feb. 18): Don’t be fooled by someone’s actions. Emotional manipulation can lead you down a dark road. Stay away from pushy people, excess and overspending, and keep busy to avoid boredom. Common sense will help you when faced with temptation. HHH

PISCES (Feb. 19-March 20): Don’t compare yourself to others. Be happy for what you have and who you are. Use your skills to help get ahead by doing what’s right. A physical or emotional change you want to make should not be excessive or costly. HHH BIRTHDAY BABY: You are sensitive, caring and observant. You are charismatic and energetic.

‘animated characters’ BY JON MARKMAN AND JEFF CHEN The Universal Crossword/Edited by David Steinberg

ACROSS 1 (Not my mistake) 4 Drill leader: Abbr. 7 Summit 11 Vowel-shaped pipe part 13 Spa sounds 15 Cereal in a salty mix 16 L.A.’s longest-tenured mayor (see letters 4-5) 18 Garr of Tootsie 19 Model Sedgwick 20 Withstand 22 Collector’s goal 23 Circulatory ___ 25 Cuts’ protectors 27 Skier dubbed “La Bomba” (letter 1) 32 Six-pack contents 35 Notoriety 36 People put on pedestals 37 Chowder morsel 39 Indian coin 42 ___ Saint Laurent 43 Summer Triangle star 45 Jazz’s Fitzgerald 47 D.C. summer setting 48 Made-to-order shades (letters 9-10)

2 Annual Jewish meal 5 53 Chemical variant 57 Astronaut Jemison 59 Naval petty officer 62 Long dress 63 Grand Ole ___ 65 “She’s Not There” band, or another title for this puzzle (letter 10) 67 Puccini solo 68 Dohyo wrestling 69 Perceive 70 (Don’t open at the office) 71 www.cia.___ 72 College sr.’s test, often DOWN 1 Big rigs 2 Still being debugged 3 Digital storage medium, briefly 4 “No Ordinary Love” singer 5 Some square dance partners 6 Believer in a deity 7 Don’t just sit there 8 “Night before” is a homophone of one 9 French for “mother” 10 Way out

1 Beehive State natives 1 12 ___ paragraphs 14 Major restaurant supplier 17 Elbow-straining judo hold 21 Filmmaker hidden in “what a time” 24 Santa’s helper 26 Wine taster’s criterion 28 Australian bird 29 Drive away 30 Ran in the wash 31 Part of T.A.: Abbr. 32 “Back in Black” band 33 “Sacre ___!” 34 Font category 38 Allot 40 Yalie 41 Climate pattern whose name has a tilde 44 Hair fullness 46 Jaguar spots, e.g.? 49 Track competitions 50 Dudely embrace 51 Gloomy 54 Bangor’s state 55 Past partners 56 What 12-, 26- and 44-Down do from

their crossing resting places? (Read the starred answers’ indicated letters for a bonus!) 57 Eerie sound 58 Interest figs. 60 Office note 61 Sea of ___, shallowest in the world 64 Partner of “pitch” and “roll” 66 Taste enhancer, for short Solution to yesterday’s puzzle:

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Thursday, October 31, 2019

SURVEY: NUMBER OF KIDS WATCHING ONLINE VIDEOS SOARS

FROM left: Marcus and I at San Quintin, Pangasinan, at Manang Eyang’s burial site; Meagan and Marcus at our granduncle’s memorial site who was part of the guerilla movement during the Japanese war; Me, my dad and Marcus with our beloved amah as she supported Marcus during his Nursery graduation.

Memories, cemeteries and TUC Crackers MOMMY NO LIMITS

MAYE YAO CO SAY

mommynolimits@gmail.com

HESE next few days is All Saints and All Souls weekend for us. What is our view as parents on bringing our kids to the cemetery? Do we feel they are too young? Ever since I could remember, my visit to the cemetery would have me bowing with my burning incense to say thank you to my ancestors for giving me my family members, and to ask them to guide me in my studies. I think it was my grandaunt who imparted these thoughts to me. Back then, the family would spend hours in the Chinese cemetery folding special ritual paper for burning. We would offer our departed relatives their favorite food. We would stick colored papers with cooked paste. No one would schedule to meet there but always we would end up seeing each other within the visit. In all this, we would hear stories of our great grandparents’ general traits; how our grandparents’ lives were in China; or how life was when everyone— my grandparents, my grandfathers’ siblings, my dad and his siblings—were all living in Quiapo. Today is a bit different. We visit more than one resting site. Our rituals have become shorter. Families converge less. Regardless of the difference, what doesn’t change are the substance and stories imparted to the next generation. We still do the rituals. We still

seek for guidance. I get to share with my kids how lucky I was to have lived my childhood in an extended family setup. My dad gets to share his antics with his brother and the like. So, for this week’s article, I thought of honoring and giving gratitude to my loved ones who have gone ahead by sharing some of my memorable stories with them: 1. MY SA-KO PO (GRANDAUNT IN FUKIEN) AND I WOULD ALWAYS GO TO LUNETA PARK EVERY SUNDAY. One time she even allowed me to bring my bike. After our stroll, we would always have breakfast at Tasty Dumplings on Masangkay Street. I would have my pork chop bihon soup and she would have her fresh hot soy milk in a bowl with crunchy Chinese bread. I thank her for patiently pushing me, yet never once letting me feel inadequate. 2. I WAS MY ANGKONG’S (GRANDFATHER IN FUKIEN) SIDE KICK AS A CHILD. From giving me my first sip of scotch at five years old, to rewarding me with delicious hamburger whenever I helped out at Reliance Emporium, I thank him most for instilling in me to love the simplest things. One of my favorite memories of my angkong was when he flew back from Japan. He gave each one of us an umbrella. Mine was a blue one. Then he called me beside him and told me that he chose the strongest one for me. When my grandmother passed away last year, I found my angkong’s favorite TUC crackers from Germany. I included it in my offering during the wake and asked my amah (grandmother in Fukien) to give it to my angkong when she sees him. 3. MY NANNY MANANG EYANG AND I WOULD NEVER RUN OUT OF ADVENTURES. One time, she only had enough money for our jeepney ride from St. Jude in Malacañang to D. Tuazon in Quezon City. She knew I really wanted my red Chippy that day. So, she challenged me if I could walk long enough to minimize our jeepney rides. We did it! I thank

Manang most for never leaving me. She told me when I was 8 that she was offered by her sister to go to the US with her a few years before. She said she could not leave me. She and I felt so bad when she could not transfer with us when our family moved out of our grandparents’ place. 4. THE YEAR BEFORE I GOT MARRIED, I MOVED BACK TO MY AMAH’S HOUSE WITH MY YOUNGEST SISTER. I loved our nightly rituals. After dinner, we would watch his favorite Chinese show Ta Ai while she soaked her feet in warm water. Then it would be off to her bedroom. She would use her bamboo stick to tap her feet a fixed number of times, then rubbing her tummy also a set number of times to keep it slim. I thank my amah for being my best foundation of stability and family during my formative years. I think without her constant care, my view of family life would be very different today. As I said goodbye to her ashes after her cremation last year, a small dot of ash flipped to my wrist, I knew my amah was telling me that she will always be there to guide my family. 5. MY SISTER-FRIEND PRINCESSE AND I WERE ULTIMATE TEQUILA MATES IN OUR YOUNGER YEARS. In one of our trips to Boracay, we snuck out from our group of friends and both finished 20 shots each. I said goodbye to her last June, and I can never thank Princesse enough for being the most generous and loving big sister I could ever have. Why do I value my kids visiting the cemetery with me? In an inexplainable wishful effect of “osmosis,” I hope for my kids to feel the impact my departed loved ones have had in my life. As much as I still remember my specific well of tears for each of them, I also hope to continuously transform the loss into lifelong stories of gratitude to pass on to my kids. I hope it would serve as a challenge for them, as it has been for me, to do our beloved departed proud with the lives we are gifted to still live. n

THE number of young Americans watching online videos every day has more than doubled, according to survey findings released Tuesday. They’re glued to them for nearly an hour a day, twice as long as they were four years ago. And often, the survey found, they’re seeing the videos on services such as YouTube that are supposedly off-limits to children younger than age 13. “It really is the air they breathe,” said Michael Robb, senior director of research for Common Sense Media, the nonprofit organization that issued the report. The group tracks young people’s tech habits and offers guidance for parents. The survey of American youth included the responses of 1,677 young people, ages eight to 18. Among other things, it found that 56 percent of eightto 12-year-olds and 69 percent of 13- to 18-year-olds watch online videos every day. In 2015, the last time the survey was conducted, those figures were 24 percent and 34 percent, respectively. The margin of error was plus or minus 2.8 percentage points. Overall screen time hasn’t changed much in those four years, the survey found. The average tween, ages eight to 12 for the purposes of this survey, spent four hours and 44 minutes with entertainment media on digital devices each day. For teens, it was seven hours and 22 minutes. That did not include the time using devices for homework, reading books or listening to music. But the findings on video-watching indicate just how quickly this generation is shifting from traditional television to streaming services, often viewed on smartphones, tablets and laptops. Among the teens surveyed, only a third said they enjoyed watching traditional television programming “a lot,” compared with 45 percent four years ago. Half of tweens said the same, compared with 61 percent in the last survey. YouTube was their overwhelming first choice for online videos, even among the tweens who were surveyed three quarters of whom say they use the site despite age restrictions. Only 23 percent in that age group said they watch YouTube Kids, a separate service aimed at them and even younger children. And of those, most still said they preferred regular YouTube. “It puts a lot of pressure on a parent to figure out what they can reasonably filter,” Robb said. When presented with the findings, YouTube said that, in the coming months, it will share details on ways the company is rethinking its approach to kids and families. For now, Farshad Shadloo, a spokesman for YouTube, a subsidiary of Google, reiterated the company’s terms of use on age: “YouTube is not a site for people under 13.” Among other things, the company also cited its restriction filters and YouTube Kids. Even so, many children with online access are adept at getting access to regular YouTube or other streaming content—partly because their parents are overwhelmed, said Sarah Domoff, an assistant professor of clinical psychology at Central Michigan University who studies tech’s impact on youth and families. Those parents could certainly be doing more to track screen time, she said. But, as she sees it, filters on services such as YouTube also aren’t adequate. “It’s really hard to block out certain things unless you’re really standing over your child,” Domoff said. That’s especially hard to do when devices are portable. Some are skeptical about how much YouTube will really change a service that easily leads its users, young and old alike, down a “rabbit hole” of video content, much of it created by everyday people. “If your model is built on maintaining attention, it’s really hard to do something,” said Robb, of Common Sense Media. His advice to families: “Protect homework time, family time, dinner time and bed time. Have devicefree times or zones.” Domoff added, “There needs to be a game plan.” AP

Monster Minions invade Manila A MINION of Halloween fun unfolds this 2019 as the lovable characters from Despicable Me—Kevin, Stuart and Bob— invade SM Supermalls under the theme “Monstacular Fun with Minions.” SM Prime Holdings, the proprietor of SM Supermalls, and Universal Brand Development (UBD) recently kickedoff the first-ever Minions-themed Halloween activation in the Philippines with a launch party held last October 22 at SM North Edsa’s The Block Atrium. The launch also showcased the apparel line of the Minions in a mini-fashion show with a wide collection available for children, teens and young adults. As part of the biggest Halloween celebration this year, shoppers and fans are invited to participate in spooky games and activities such as DIY workshops until November 3 at SM Malls. “The SM Group is known to deliver a wide assortment of entertainment,

leisure, and retail opportunities for its patrons across the country. Strategic partnerships with IP owners like NBC Universal complements our overall goal to deliver one-of-a-kind experiences and exciting new content for our patrons,” said Myra Moñozca, vice president for licensing and partnerships at SM Lifestyle Inc. “Through this collaboration with NBC Universal and their extensive franchise portfolio, we’re able to bring more engaging activities with our mall and retail activations while providing new product offerings for all our consumers.” This unique Monster cross-over collaboration puts the spotlight on Illumination’s Minions from the hugely successful Despicable Me franchise over two epic weekends of Halloween Celebration at the SM Supermalls. The Minions are reimagined in this delightful “mash up” from out of a twisted

Halloween nightmare as Universal’s Classic Monster characters. Kevin is transformed into “Bride Kevin,” Stuart is “Mummy Kevin” and Bob is “FrankenBob,” among other Minion transformations. “Universal’s portfolio of blockbuster franchises include some of the most beloved and well-known in the Philippines—from the awe-inspiring dinosaurs of Jurassic World to Dreamworks Animation’s Shrek and Kung Fu Panda, to the thrilling sequences of the Fast & Furious franchise, Universal’s brands truly reach all Filipinos. We’re thrilled to collaborate with the SM Group, an industry leader in the Philippines for destination entertainment, to create opportunities for fans to engage with the studio’s most recognized characters and franchises,” said Jeff Daggett, vice president for consumer products Apac, NBCU

International, during the launch party. SM Supermalls, well-known for its passion to create an immersive shopping experience filled with family moments for everyone, has currently 37 mall atriums with Minion Monsters-themed merchandise, activities and photo opportunities to celebrate Halloween 2019. The extensive range of Minion

products also include accessories, houseware and other must-buy items designed for the Minions-at-heart. Shoppers and fans also get a chance to dress up in Illumination’s Minions Halloween costumes exclusively at SM City North Edsa and SM City Fairview. More information is available at www. supermalls.com.

Show BusinessMirror

Thursday, October 31, 2019

Texas man guilty of stalking, threatening Taylor Swift NASHVILLE, Tennessee—A 27-year-old Austin, Texas, man has pleaded guilty to stalking and sending threatening letters and e-mails to pop star Taylor Swift’s former record label. Federal prosecutors in Nashville, Tennessee, said in a news release the letters to Big Machine Label Group began in January 2018, with Eric Swarbrick asking the CEO to introduce him to Swift. Over time the letters became more violent and threatening. On three occasions Swarbrick drove to Nashville to personally deliver them. He also admitted to wandering the offices. Swarbrick sent at least 40 letters and e-mails before he was charged and arrested in September 2018. Swarbrick will remain in custody until he is sentenced in March. He faces up to five years in prison and a $250,000 fine on each of the two counts. AP

FROM left: Senior Vice President for Entertainment Group Lilybeth G. Rasonable; President and Chief Operating Officer Gilberto R. Duavit Jr., Julie Anne San Jose; GMA Network Chairman and Chief Executive Officer Atty. Felipe L. Gozon; Vice President for Business Development Department III Darling de Jesus-Bodegon; and Senior Assistant Vice President for Alternative Productions Gigi SantiagoLara

FOR JULIE ANNE SAN JOSE, THERE’S ALWAYS ROOM FOR MORE MULTI-HYPHENATE Julie Anne San Jose’s journey as a GMA star continues as she renewed her exclusive contract with the network on October 25. Present in the contract signing were GMA Network Chairman and Chief Executive Officer Atty. Felipe L. Gozon; President and Chief Operating Officer Gilberto R. Duavit Jr.; Senior Vice President for Entertainment Group Lilybeth G. Rasonable; Vice President for Business Development Department III Darling de Jesus-Bodegon; Vice President for Corporate Affairs and Communications Angel Javier Cruz; Senior Assistant Vice President for Alternative Productions Gigi Santiago-Lara; Senior Program Managers Mae Zambrano; Charles Koo; Ian Roxas; Ruth Mariñas; and GMA Artist Center Senior Talent Manager Daryl Zamora. Julie is among the homegrown talents of the network, as she was a product of the reality talent competition Popstar Kids in 2007. Being a GMA talent after more than a decade, the award-winning performer is looking forward to what’s yet to come in her career. “I’m very happy and blessed. Nagpapasalamat po ako kay Lord and sa GMA for giving me another opportunity to share what I have. I’m just very grateful, excited and looking forward to future projects here in my home network,” said Julie. Julie is part of the original mainstays of the popular weekly comedy musical-variety show Sunday PinaSaya, where she showcases her humorous side in the show’s various segments. She is also a proud Clash Master for the all-Filipino singing competition The Clash. Julie shared: “Nakakatuwa dahil lahat ng pinagdadaaanan ng Clashers na ia-apply nila sa pagpi-perform, that says a lot already and we’re grateful they’re able to share their hearts sa mga tao. For me kasi, the important thing is ’pag singer ka, kailangan may soul ka rin. That’s how people perceive you as an artist and doon nila makikita kung gaano ka ka-authentic pagdating sa craft mo.” After the success of her sold-out concert Julie Sings the Divas last July, she remained busy in pursuit of her music. She released a single, titled “Regrets,” earlier this year and on October 18, she launched a collaboration with Rico Blanco via the song “Isang Gabi.” A true testament to her journey as one of the top voices in the country’s music scene, Julie received recognitions at the 32nd Awit Awards where she took home the Favorite Album of the Year award for Breakthrough and the Favorite Collaboration Performance award for “Down For Me,” a duet with Fern. Indeed living her best life, Julie is now gearing up for another exciting project with digital music streaming platform Spotify. During the contract signing, Gozon shared how Julie constantly impresses him with her work, “Well, of course nagpapa-salamat tayo, talagang homegrown naman si Julie Anne at habang siya’y nadi-develop, lalong gumagaling kaya’t tayo ay natutuwa.” Rasonable shared, “Dito halos lumaki si Julie Anne at nag-blossom ang career, and now she’s hosting The Clash. Mapa-music, acting sa drama, comedy, she’s award-winning pa. Tahanan na n’ya ang GMA at kami bilang parang mga magulang na din niya dito, natutuwa sa lahat ng na-achieve na n’ya. I’m very proud.”

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What questions would you ask Da Vinci? STARRING and directed by Massimiliano Finazzer Flory from his screenplay, Being Da Vinci: The Impossible Interview utilizes the original texts by Leonardo Da Vinci.

REELING

TITO GENOVA VALIENTE

titovaliente@yahoo.com

NDEED, if one is facing Leonardo Da Vinci, what would you ask him? That condition is the simple premise of a film, titled Being Da Vinci: The Impossible Interview. The impossibility of the interview does not rest on the obvious—Da Vinci has long been dead—but on the fact that when he was living, he was a master of many disciplines. He was an artist, a fact that is the most popular that we know about him. But he was also an engineer and a scientist. He observed nature and presaged the modern naturalist. Then he was a philosopher. Those credentials and the achievements and skills that went with them would have challenged any interviewer. Where does one begin? Would Da Vinci be willing to be interviewed? Would he make an interesting subject? The film begins with two journalists—one from Milan and one from New York. They travel to Italy because the 500th anniversary of the death of Da Vinci was to be celebrated. There was, obviously, the need to revisit the genius of this man. The two journalists do not know each other. They go on a journey, which takes them to places where Da Vinci was born and to the place where he died. Even before reaching the most important places with links to the artist and his growth, the two journalists are shown feeling the presence of Da Vinci—as a shadow, as a fleeting figure, as a presence in the arts, the many arts the man contributed to civilization. Finally, in Clos Lucé, the final resting place of Da Vinci, the two journalists meet Da Vinci. What’s more, Da Vinci agrees to be interviewed. It is the charm of the film that the appearance of Da Vinci is presented so matter-of-factly. He is not a phantom. He is a real man, manifesting himself because the world still has many questions to ask. Certainly, when he was alive, much as he was already great, the questions would have been different. But after hundreds of years, the questions and the doubts have accumulated regarding Da Vinci—his intellect, his beliefs, his humanity. The film itself takes time to develop. In the Cine Europa screenings, audiences though timid called to attention the ponderous presentation of the artist’s life. And yet, it is exactly this meandering movement of the film that seduced the crowd—mostly senior high school and college students—in Ateneo de Naga to ask, as the film went on, the many questions being posed to Da Vinci. The two journalists are, in a sense, us. They are asking for us the many curious things we want to know about Da Vinci. Directed by Massimiliano Finazzer Flory from his screenplay, the film utilized the original texts by Leonardo Da Vinci. They were taken from Da Vinci’s journals and letters. So as the questions were asked, the filmmaker went to the answers that did come from Da Vinci. The Renaissance Man, the name given to him because he knew—and mastered to such a degree— both arts and sciences, was convincing even if we were to know later that the words being mouthed by “Da Vinci” were really his words. As Da Vinci, the director and actor Flory assumed one of the more popular images of the great artist, one that was taken from one of his self-portraits. It is both the bane and the boon of this production that the interviews were about the thoughts of Da Vinci on arts and life. There was nothing about the sordid aspects of his life, an aspect we all love to dig into when we have the chance to examine the lives of artists and geniuses. Perhaps, it is because of the celebratory nature of the project that the focus of the film is really on Da Vinci’s works. It is also a lesson to learn when making a biopic that there are many things about the life of a great man or woman that we can learn from even if we focus only on the “straight” facts about the person. During the screening in Naga for the third edition of Cine Europa, the audiences were interested about Da Vinci’s works, namely, The Last Supper and La Gioconda, or what we know as Mona Lisa. What is a Da Vinci film without Dan Brown? That question was not asked in the film but from the audience. This mention speaks more about how Da Vinci even up to now still impacts the life of the modern man. Intriguing for the said audience was the question whether Da Vinci believed in God. This is a crucial

query because while the Church was very powerful during the time of Da Vinci, the period also marked the strong beginning of Humanism. Man was at the center of creation. It thus added to the mystery of the man, Leonardo Da Vinci, that when asked about God, he spoke about motion and the cause of many things. Being Da Vinci: The Impossible Interview is a film by Flory in collaboration with Rai Cinema. It is based on a play written and performed by the same director and scriptwriter earlier in 2016.

The film, which was released in 2019, has received many awards in the United States: Best Indie Filmmaker-New York Film Awards, 2019; Best ActorLos Angeles Actors Awards, January 2019; Honorable Mention: Narrative Film-Los Angeles Film Awards 2019; and Best Narrative Feature-Festive International Film Festival 2019 Los Angeles. n Being Da Vinci: The Impossible Interview was part of Cine Europa, which was hosted by Ateneo de Naga for the third time in the Bicol region.

Envoys&Expats

www.businessmirror.com.ph | Thursday, October 31, 2019 E1

EXPAT EXECUTIVE

This German wants heritage site to be a byword in tourist destinations

By Tony M. Maghirang | Contributor

OR some, the past is more glorious and more attractive than the present.

Or, at least, that’s the main allure of Las Casas Filipinas de Acuzar, an expanding settlement of about 70 rebuilt Spanish colonial mansions, which is the current draw of Bagac in the province of Bataan. As one guest noted: “A visit to Las Casas is like seeing the past come alive in front of you in all its unbelievable grandeur and splendor.” Newly appointed President Paul Kerr of Hotels, Resorts and Sports at New San Jose Builders Inc., which owns and operates Las Casas, fully agrees. The German expat executive also thinks there’s more to Las Casas than just capturing and transplanting heritage structures from another time into the present era. In fact, the relics were carefully dismantled from their original locations around the country, and then reassembled

piece by piece in their current sites. “The Philippines has been my home for a decade-and-a-half now, and I am extremely passionate about selling the country as a tourist destination,” Kerr told Envoys&Expats. “Las Casas offers a new opportunity to do this at a whole [new,] different level. We’re not only showcasing the geographic beauty of the country, but also showing off culture, heritage, as well as native food and crafts. We’re presenting it to the world as a onestop shop for everything Filipino.” He also believes that the Philippines is unique in Asia. It’s more Hispanic than Asian in culture and identity. The Spanish influence in the Filipino, particularly, is a distinct asset that other people, especially foreign tourists,

need to see and appreciate. Even at a first encounter, Kerr projected a jovial, easygoing personality. He appeared to be quite the opposite of the typical perception that German nationals are serious and stern. The Las Casas executive broke into a winsome smile then said, “I guess that’s a bit of a myth. Actually, I’d like to think that we, Germans, have a good sense of humor. “[It’s just that] we like things done the proper way. Maybe we just like everything to be perfect, and strive for that whether we achieve [our goals] or not.”

Globe-trotter

KERR has the experience, skill set and motivation to up ante for Las Casas as an international tourist destination. Born and raised in Germany, he left home in his early 20s to work abroad. For his first foreign job, he flew to Dubai, which was still an underdeveloped city at that time. It was a culture shock for someone who grew up in the prosperous environs of Germany and Europe. The German first came to the

Philippines in 2004 with his former girlfriend (now ex-wife). They stayed in a resettlement area in Cavite, and the difference between the luxuries of the United Arab Emirates’s cosmopolitan lifestyle then and the relative poverty of his new surroundings came again as an eye opener for him. Still, during his stay in the area, Kerr had the epiphany of his life. He realized that, for all the things he thought were valuable and important in life, there are others who made do without them. He returned to the Philippines in 2007 to work in cruise ships that took him to about 130 countries around the world. Three years ago, he stepped off the luxury liner and started working as a manager in the El Nido Resorts in Palawan. Fast-forward to March this year, Kerr was appointed president of Hotels, Resorts and Sports at New San Jose Builders Inc., where Las Casas Filipinas de Acuzar came under his operational purview. The move from sea to land was a welcome break for him, since it provided the chance to go back to and live in the city, and be with his

family every night after work. (His previous stint with cruise liners put him far away and out of touch with his loved ones for months on end). Of course, Kerr faces bigger challenges now that he has taken on a Csuite job in the country that he now calls home. He thinks, in a nutshell, that Las Casas—with its special charms—is being undersold to the world, marketing-wise. The buck to turn things around now stops at his desk. He elaborated: “I think the main objective in my coming in onboard Las Casas is to put it on the [destination] map. We did a quick marketing analysis of the size of our potential clientele, and where we are in terms of market share. [What we found out was that] we need to push our ‘product’ a little bit more.” The German continued, “Basically, nobody in the country would ask, ‘What is Las Casas?’ If Filipinos haven’t visited us yet, at least they should know about us. That’s where we push for brand recognition first.” To add fresh flavor to the marketing pitch, Kerr said Las Casas launched its most recent attraction,

called HistoryLand. It’s a live interactive theatrical show that enhances the historic background behind the Hispanic mansions. Among its highlights are the reenactment of Jose Rizal’s execution and the Battle of Mactan.

Filipinos and guests

AS a professional, Kerr thinks that his long experience working with Filipinos prepared him for his current executive post. From the Middle East, where they form a large contingent of the expat community to the cruise ships where he once managed the food and beverage department, most of his team members were Philippine citizens. He’s grown accustomed to the quirks of the “brown overseas worker.” He explained, “Having worked with Filipinos in all sorts of locations around the world, I guess I’ve gotten used to the culture, the rituals, whatever else you want to call it. I’ve become very familiar with the Filipino, and some degree of patience helped a lot.” Continued on E2

Envoys& BusinessMirror

E2 Thursday, October 31, 2019

REDISCOVERING THE PHILIPPINES

Discovery tour lures young Pinoys Y OUNG Filipinos with a sense of adventure and a wish to reconnect with their Filipino roots are invited to participate in the second Diskubre Tour from January 3 to 13, 2020, that will feature mostly the best of the Bicol region. “Diskubre…” is an immersion tour for second-generation Filipinos and young foreign-born Filipinos. It aims to promote a deeper appreciation of Philippine heritage and invoke a spirit of giving back to the motherland. It is open to Filipinos and persons with Filipino lineage aged 18 to 40 years old. Younger participants are allowed, provided they are with their parents throughout

sharks in Donsol, appreciate the Bicolanos’ devotion to Our Lady of Peñafrancia, as well as experience life with the local communities and participate in their activities. During the tour, participants are expected to document their trip through social media, blogs or videos capturing the sights and their experiences to help promote tourism among their peers and spheres of influence. T he Ph i l ip pi ne Con su l ate General in New York, in partnership with The Filipino Channel’s Web series Discovering Routes, launched the previous edition in July 2018. It has since generated more than 20,000 views on YouTube. Participants, parents, and community organizations consider the program a worthy and valuable experience for the youth. This year’s tour, organized by the Department of Foreign Af-

the tour. Covering Manila and the provinces of Albay, Masbate, Sorsogon and Camarines Sur, this year’s tour will include historical and city exposure trips. Activities will include the opportunity to walk down the historic streets of Intramuros, ride an all-terrain vehicle and admire the beauty of the Mayon Volcano, swim with the butanding or whale

fairs’ Office of Strategic Communications and Research-Cultural Diplomacy Division, will be staged in cooperation with the Department of Tourism, the Bicol region’s local government units, as well as Philippine Embassies and consulates general around the world. Tour packages start at $1,090 each for three persons, $1,125 for two and $1,365 for one. The price covers accommodations, tours, transportation and meals, the services of an English-speaking guide, porter fee for two pieces of luggage, passenger accident insurance, taxes and service charges. Participants are expected to shoulder airfare, insurance and incidental expenses outside the tour program. For more information and to register for the tour, interested participants can visit travelwiseonline.com/diskubre. DFA

Denmark-to-PHL heritage tour launched for March 2020

OPENHAGEN—Albatros, a tour operator in Denmark, recently launched the first heritage and historic tour from Denmark to the Philippines. The 12- to 18-day tour scheduled in March 2020, features the cities and provinces of Manila, Clark, Baguio, Vigan, Sagada, Banaue, and includes an optional tour to Boracay. The tour aims to promote a deeper appreciation of Filipino heritage by exploring Unesco heritage sites, such as Vigan City, the Banaue Rice Terraces and Intramuros in Manila. It also includes a visit to coffee farmers, as well as a nature and cultural excursion to Sagada. The tour itinerary was formulated after a series of consultations among the embassy, the Department of Tourism office in London and Albatros. DFA

HERITAGE and history of the Philippines depicted in an announcement post. COPENHAGEN PE

CNN: Vigan is one of Asia’s most picturesque towns

This German wants heritage site to be a byword in tourist destinations Continued from E1

NTERNATIONAL news organization CNN has picked Vigan City in Ilocos Sur as one of the “most beautiful towns” in Asia for its heritage and architecture dating back to Spanish colonial era. In a statement, the Department of Tourism (DOT) welcomed the selection, agreeing that Vigan’s heritage and culinary offerings made it “a picture-perfect site and deserving of the spot” in CNN’s list. “The CNN citation of the City of Vigan means that sustainable tourism is not just about environmental protection, but also the preservation of the country’s history and culture,” Tourism Secretary Bernadette Romulo Puyat said. In the CNN list dated August 28, Vigan was described as “one of the best places to experience Spanish colonial era architecture in Asia.” Plaza Salcedo, including the white-andyellow Saint Paul’s Cathedral and Calle Crisologo, were cited as three must-visit areas in the city.

CNN also mentioned the capital of Ilocos Sur’s public market and pottery workshop that gives tourists an opportunity to craft traditional earthen jars. Vigan, established by the Spaniards in 1572, is a Unesco World Heritage City. Selected as one of the “New 7 Wonders Cities” in 2014, its attractions also include food adventures with its established culinary scene that features unique native dishes, such as bagnet, a deep-fried crispy pork belly dish; poqui-poqui, a mixed vegetables dish; and empanada, a flattened fried pastry with stuffed meat. Aside from Vigan, also included in the CNN 13 most picturesque towns in Asia are Hoi An in Vietnam, Yufuin in Japan, George Town in Malaysia, Luang Prabang in Lao PDR, Kampot in Cambodia, Phuket Town in Thailand, Sai Kung in Hong Kong, Zhouzhuang in China, Kota Gede in Indonesia, Galle in Sri Lanka, Mawlynnong in India, and Ghandruk in Nepal. Joyce Ann L. Rocamora/PNA

Through decades of interacting with various nationalities in his global journeys, the Las Casas executive felt that the Filipino is of the same caliber as that of other races. For him, it’s all about the work ethic of an individual, and then some. “Those who are ambitious and work hard, they do a good job,” he noted, “[Still, there are others] who work for their daily beer, and they go home and enjoy it.” “Filipinos, in general, have a lot of pride. I found out that, if you appeal to that sense of pride, they tend to be a little more productive.” It can’t be helped that there would be lapses, and even big worries, when dealing with a number of employees and guests—including their individual temperaments. In handling problematic situations involving people, Kerr goes by a motto: “Nobody gets up in the morning to ruin somebody else’s day.“ He said, “I try to treat everybody fairly and equally. Then, there are those who don’t follow suit, as that would always be the case.” Guests can also be a handful, especially those from developed countries. Kerr observed, “These days, they have a sense of entitlement that goes beyond the price of what they have paid.” Kerr goes on to say: “Every-

LAS Casas Filipinas de Acuzar’s Paul Kerr: I am extremely passionate about selling the Philippines as a tourist destination.

body should understand that we’re in the hospitality business. We will do everything in our power to make them feel welcome, comfortable, and ‘at home.’ If guests feel we did not provide the service, then we’re very, very sorry. That’s when we part ways.”

Las Casas’s CSR, GMRC

WITH big business comes corporate social responsibility. That said, Las Casas is showing a model for mutually beneficial relationships with the local rural community. Presently, there are three restaurants in the establishment: Filipino, Italian and Spanish. A new

one named Sipit will open before year-end. A substantial amount of the seafood and vegetables requirements at the food outlets in Las Casas come from local farmers. An ongoing cooperation program provides seeds and disposed food to be converted into organic fertilizer, so people with large backyards can grow vegetables. The harvest is then bought back by Las Casas at a lesser cost than the market price, allowing the locals to earn money with zero expense. Another project with the local community is termed GMRC— or simply, the classic practice of “good manners and right conduct”—for out-of-school youth. Each batch of around 30 students is trained in guest relations, in return for a daily allowance as incentive. Those who graduate from the project have the option to apply at Las Casas under a preferential hiring procedure. These initiatives help the Las Casas management know the people in immediate surroundings, while immersing itself in the locality from where the heritage hot spot can draw continuing support. Finally, Kerr shared that owner Jerry Acuzar views this immense heritage undertaking to be, first and foremost, a gift to the Filipino people, and a legacy for the next generations of Filipinos.

&Expats

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E&E FASHION

Bridal-wear brand to conquer aisles in PHL By Roderick L. Abad

Contributor

HICH bride doesn’t want to walk down the aisle in a stunning gown?

After all, a wedding dress represents a lifelong fancy of every brideto-be. It must be perfectly worn— from cut to fit, color, fabric and embellishments—on the very big day of her union with her gorgeous groom. She has to look elegant and lovely in that wedding dress as she enunciates the all-important declaration: “I do.” Finding that perfect bridal gown, though, can be an overwhelming and stressful experience for so many. That is why internationally renowned Filipino designer Puey Quiñones has brought home global fashion brand CocoMelody from Los Angeles, California. Having longed to provide the widest array of custommade gowns in the United States and other countries abroad, this is exciting news for the local market. “I want to bring it to the Philippines because I want to share something to [our brides. I know a lot of them] get stressed finding their dresses, and, sometimes, they get confused on what to wear. So here, I’ll make it easy. I’ll bring the collection [closer to them],” he said during the recent launch of CocoMelody Manila via an exclusive press preview of the

BRIDAL gown designs from CocoMelody

brand’s latest collection.

Dream dresses

COCOMELODY employs professional in-house fashion designers, with more than 100 sample makers and seamstresses who turn a dream wedding dress into reality. With so many styles, fabrics and silhouettes to choose from, brides can browse through stylish, highquality gowns in-store or online at their convenience. The brand’s impeccable service awaits soon-to-be-married clients in the physical store. There, they can try on the sample dresses, get

a sense of their look, feel and quality. For the busy customer, she may opt to shop online while on the go. Once selected, the dress is ordered to the bride’s specifications and will be delivered in two to three months. “It would be a big help to them to find their dress very quick and fast, stress-free and, at the same time, it will not break their budget,” said Quiñones, who is chief designer of CocoMelody and creative director for Asia-Pacific. “Our prices range from P30,000 to P200,000 only, and they’re custom-made. The quality is very good, because our tailors or seamstresses are trained in Paris.” Every year, CocoMelody creates around 100 pieces divided into two collections. For its Manila showroom, the brand brings in 30 pieces

catered to 24- to 35-year-old Filipina brides. The selections are more bearable and approachable in terms of silhouettes, and even classic and timeless. So expect that they are more feminine, soft and flowing with the use of French laces, aplique, soft tulles and brocade fabrics.

Classic to nonconformist

FROM a wide selection of readyto-wear bridal gowns, clients may choose the classic collection inspired by British royal weddings and old Hollywood films with the use of fine silk, Chantilly laces and stretch crepes. For the glamorous and luxurious brides, the Grace Luxury line befits their discriminating taste. Every single piece in this set of gowns looks dreamy, like what the

‘Hibla Exhibition’ culminates Asian tour in Singapore

princesses wear in fairy-tale books: mermaid themes, fluffy skirts and with intricate details. The Lily White collection is for the blithe and outgoing bride. It took inspiration from the motion of air: soft, flowy and easy. The gowns are embellished with delicate laces and illusion tulles. Made out of blush and pastel colors, these dresses are perfect for garden, beach, destination or even cliffside weddings. Romantic ones may choose the LB Studio designer wedding dress collection. With the vast use of lace and tulle, these dresses are made to perfection. No wonder, it’s one of CocoMelody’s most beloved offerings. The Fall Collection by Puey Quiñones meets brides’ expectations. It is where the designer flaunts the best

silhouette that will flatter the bride’s figure, as well as the personality to tailor each and every fit. The kind of dresses done under the Bohemian Nomad Collection would make her a standout from other brides. With its “boho” inspiration, the nonconformist set of bridal gowns for sure will fit her hippie style: avant-garde, yet universal. The brand also serves bridal and wedding parties within and outside of the US. It is also present in countries like Japan, Austria, Germany, South Africa and, now, in the Philippines. CocoMelody Manila’s bridal boutique store is at 208 Orbit Street in Bel-Air, Makati City. For inquiries, visit cocomelody.ph or call (02) 82755282 and (+63) 916-2163147.

Filipino designers featured in Tokyo fashion week

NATIONAL Museum of the Philippines Deputy Director General Dr. Ana Maria Theresa P. Labrador (left photo) delivers her welcome remarks; Aklan’s Raquel Eliserio demonstrates piña-seda weaving using a traditional loom. NATIONAL MUSEUM OF THE PHILIPPINES/DFA

DESIGNS from the collections of Bon Hansen Reyes (from left), Jace Quiambao and Antonina Amoncio. TOKYO PE

T AKLAN’S Carlo Eliserio (left photo) shows the scraping process to collect the fibers from a piña leaf. Participants attend the free embroidery workshop. NATIONAL MUSEUM OF THE PHILIPPINES/DFA

INGAPORE—In collaboration with the National Museum of the Philippines (NMP), the Office of Deputy Speaker Loren Legarda, the Nanyang Academy of Fine Arts, as well as the Textile and Fashion Federation Singapore (TaFF), the Philippine Embassy in Singapore successfully organized the Hibla ng Lahing Filipino Traveling Exhibition: Piña-Seda (Pineapple Silk Cloths from the Tropics) from August 29 to October 6 at NAFA’s Lim Hak Tai Gallery. The Hibla Exhibition showcases the Philippines’s traditional textiles,

namely the piña-seda, while celebrating the country’s indigenous artistry and heritage. The event also forms part of the 50th anniversary of the establishment of diplomatic relations between the Philippines and Singapore. Experts from NMP, embroiderers from Lumban in Laguna and weavers from Balete in Aklan made it a more interactive and hands-on educational experience for the public through exhibition materials on display, demonstrations, lectures and workshops. TaFF then hosted an embroidery

workshop and networking event on August 30 at the Cocoon Space, with members of TaFF from Singapore’s fashion and textile industry, as well as members of the Filipino community in attendance. The networking event even showcased a live demonstration of the scraping of a pineapple leaf to show fiber collection to produce a piñaseda fabric. Ambassador to Singapore Joseph del Mar Yap also hosted a unique showcase for the diplomatic corps at the Lim Hak Tai Gallery on September 4, where guests were given

a guided tour and demonstrations of the weaving and embroidery followed by a simple reception. NAFA also hosted several lectures, workshops and demonstrations for its students from various disciplines, including fashion and interior design. Singapore is the eleventh stop in the Hibla Exhibition’s international tour and the last one in Asia for this year. Since 2017, the exhibition had been to London, Lisbon, Madrid, Frankfurt, Washington, D.C., New York, Hawaii, Tokyo, Bangkok, Prague and San Francisco. DFA

OKYO—The Philippine Embassy in Tokyo supported young Filipino designers as they showcased their collection to an international audience during the “Asian Fashion Meets Tokyo” segment of the Rakuten Fashion Week Tokyo on October 15. Featured designers Jace Quiambao, Antonina Amoncio and Bon Hansen Reyes were the winners of the 2019 Bench Design Awards held in September in the Philippines. The runway collections reflected the designers’ visions of a genuinely global Filipino fashion. The Philippine clothing brand launched its Bench Design Awards in 2017 to shine the spotlight on undiscovered talents in the local fashion industry, in line with its vision of putting local fashion on the global map. Its collection also

took the baro’t saya to a new level through its young, hip and modern aesthetics. Quiambao’s collection, themed “A Lepidopterist’s Summer,” took inspiration from butterflies and incorporates traditional Filipino costumes into a modern style. Meanwhile, children’s books and fairy-tales inspired Amoncio’s set “Gunita” through hand-embroidered fabrics that highlight Filipino culture and values. On the other hand, Reyes’s assemblage “Inuod” depicted precolonial menswear, which aimed to disrupt gender norms. The Rakuten Fashion Week Tokyo is hailed as one of the world’s renowned fashion weeks, which shares the same league as those held in Paris, Milan, London and New York. DFA

Envoys&Expats BusinessMirror

E4 Thursday, October 31, 2019

EMBASSIES, EVENTS, ETC.

Indian navy ships dock for goodwill visit

HIPS from the navy of India made a call at the Port of Manila from October 23 to 26, for their goodwill visit, which comes as a part of the deployment of the said country’s eastern fleet to the Asean and West Pacific. According to its embassy in the Philippines, both vessels were “indigenously designed and constructed by Indian ship builders.” INS Sahyadri is a guided missile-stealth frigate, while INS Kiltan is an anti-submarine warfare corvette. As part of their docking, the ships’ crew members had extensive interactions with their Philippine Navy counterparts, including formal calls on the latter’s leadership, visits to each others’ crafts, as well as operational interactions, such as a table-top exercise in harbor and an exercise at sea. The crew members of both navies bonded over social interactions and sports events hosted by the Philippine Navy. Ambassador of India to the Philippines Jaideep Mazumdar and Commanding Officer Captain Ashwin Arwind hosted a reception in honor of the Armed Forces of the Philippines, attended by Philippine Army Vice Commander Maj. Gen Reynaldo Aquino, Philippine Fleet Deputy Commander Commodore Wilfredo

Burgonio Jr., Naval Staff Chief Commodore Rey de la Cruz, as well as a large number of dignitaries from the diplomatic corps and the local Indian community. Undersecretary for Defense Policy Ricardo R. David visited the ships on October 25. The embassy noted that the enthusiasm and warmth of activities conducted in Manila were “a true testimony of the strong bonds of friendship shared by both the countries and their navies. [The visit] of these ships to Manila, which came on the heels of the state visit of President Ram Nath Kovind, was much appreciated by various quarters of Philippine government, as well as the Indian diaspora in the country.” Prior to their arrival in Manila, the ships were deployed for engagements with Thailand, Cambodia, Malaysia and Japan. The ships departed on October 26, to continue with the next phase of their deployment where more engagements are scheduled with Vietnam and Indonesia.

RANKING official from the Embassy of Australia in Manila has underscored the wideranging relationship between Manila and Canberra, amid President Duterte’s suspension of loans from the latter. The Philippine government had earlier suspended negotiations and agreements from 18 countries, including Australia, which voted in favor of a United Nations resolution that sought a review on the country’s human-rights situation. Clare Duffield, the embassy’s political and public affairs counselor, declined to comment on the issue, but pointed out that the two nations’ ties and cooperation cover a wide range of areas. “[In the words of our ambassador], ‘Our relationship is broad and deep,’ because it [actually] is. It covers so many things: from education, economics and trade,” Duffield told reporters in an interview at the embassy in Makati City. “It really is a nice, broad relationship, genuinely based on some shared beliefs and shared values. Plus, commerce and trade [operate, despite of ] what’s going on, because they’re looking for good business opportunities,” she added. The diplomat also highlighted the people-topeople ties and the upcoming 75th anniversary of the two nations’ diplomatic relations in 2021. “I have to say that Australia’s relationship with the Philippines, its formal diplomatic ties go back nearly 75 years and out of that time we’ve done so many different things together,” she said. As the country commemorates the 75th Leyte Gulf Landings, Duffield said Australia also has its shared role in the campaign for the liberation of the Philippines from the Imperial Japanese forces. “We’re [nearing] the 75th of the Leyte landings during World War II, and what most people think of that is the American coming on their ships. The Australian Armed Forces were involved, and a number of our ships, and soldiers and sailors joined, as well,” she narrated. As the world settled in a relatively peaceful era, the diplomat said the two nations’ ties evolved in due course. “We’ve had this relationship for so long, and it has changed over time. War is not [a] happy time, but so we’re saying it forged our relationship. It really has grown and deepened,” the counselor said. Joyce Ann L. Rocamora/PNA

Embassy: Russia-African relations on the rise

PUTIN

OFFICIALS from the navies of the Philippines and India exchange pleasantries.

THE INS Sahyadri

PHL-Australia PHL, Japan hold 1st defense industry forum bond remains ‘broad, deep’ T HE Philippines and Japan renewed their cooperation in the field of defense during a forum on the two nations’ defense sectors. “The inaugural Philippines-Japan Defense Industry Forum aims to promote defense-equipment cooperation between our countries, with the goal of contributing to each of our countries’ respective mandates and responsibilities,” Defense Undersecretary Cardozo Luna said in his speech. Hosted by the International Cooperation Division of the Acquisition, Technology and Logistics Agency of Japan’s Ministry of Defense, the forum saw the attendance of defense industry and government stakeholders from the neighboring countries to discuss and exchange opinions, information and experiences about their policies and procedures in doing business, specifically in the procurement and export of

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OFFICIALS from the Department of National Defense, Japan’s Defense Ministry and other stakeholders discuss issues on strengthening defense cooperation between the two countries. DND PUBLIC AFFAIRS SERVICE/PNA

defense equipment, material and technologies. Luna pointed out that as the Philippines values the increasing and enduring defense alliance with Japan, the commitment to enhance its defense posture is further strengthened to guard against internal security issues

and external maritime threats. “We at the Department of National Defense fully support the recent amendment of Japan’s SelfDefense Forces Act that would allow the Japanese government and its Ministry of Defense the needed flexibilities for [its] military force to play a greater or increased role in

maintaining peace and stability in the Asia-Pacific region by exporting quality defense equipment to foreign countries like the Philippines,” Luna said. In March, the Philippines received spare parts for UH-IH “Huey” helicopters from Japan’s Defense Ministry, making it the first member-state of the Asean to receive excess Japanese defense equipment. Aside from improving ties between Manila and Tokyo, the event was also beneficial to the modernization program of the Armed Forces of the Philippines (AFP) while it “[transitions into] a credible and professional defense institution.” It also provides an opportunity for the Defense Acquisition System teams and technical working groups to learn and understand Japan’s defense technologies, thus expanding the “competitive alternatives for the AFP modernization projects.” PriamNepomuceno/PN

SFA: PHL-Indonesia EEZ pact shows bilateralism works

OREIGN Affairs Secretary Teodoro L. Locsin Jr. said the Philippines and Indonesia’s recent submission to the United Nations of the 2014 agreement that establishes the boundary between their overlapping exclusive economic zones (EEZs) showed that bilateralism works. In recalling his recent dialogue with former Australian Prime Minister Kevin Rudd about overlapping EEZs, Locsin said there is a way to settle the issue without surrendering claims. “I had no answer, then I remembered this: ‘Yes, Indonesia and I found it, but it took 14 years to happen,’” he said, referring to the two nations’ joint submission of the 2014 bilateral agreement on September 27. The secretary declared: “Sometimes, bilateralism works [when bilateral dialogue partners] show mutual respect.” He and Indonesian Foreign Minister Retno Marsudi submitted the official copy of the agreement and respective instruments of ratification to United Nations Undersecretary-General for Legal Affairs Miguel de Serpa Soares at the UN Headquarters in New York. The submission followed the ceremonial exchange of ratification instruments by the two foreign ministers at the 52nd Asean Foreign Ministers’ Meeting on August 1, which effectively put into force the bilateral maritime border delimitation agreement.

UNITED Nations Undersecretary-General for Legal Affairs Miguel de Serpa Soares (from left) receives from Indonesian Foreign Minister Retno Marsudi and Foreign Affairs Secretary Teodoro L. Locsin Jr. an official copy of the 2014 agreement establishing the boundary between the Philippines and Indonesia’s overlapping exclusive economic zones, and respective instruments of ratification. DFA

The agreement, first discussed in June 1994, was formally signed by the two states in May 2014, in Manila. President Duterte ratified such in February 2017, and the Indonesian Parliament, in April of the same year. The Philippines completed its two-step domestic procedure

in June when the Philippine Senate concurred with the executive ratification. Both countries are parties to the 1982 United Nations Convention on the Law of the Sea, or Unclos, and are entitled to EEZs of 200 nautical miles. Under the said convention, states have sovereign rights to explore and exploit, as well as conserve and manage natural resources, within their EEZs. The Philippines and Indonesia have overlapping EEZs in the Mindanao and Celebes Seas, as well as in the southern section of the Philippine Sea in the Pacific Ocean. According to the Department of Foreign Affairs, the National Mapping and Resource Information Authority of the Department of Environment and Natural Resources and its Indonesian counterpart, the Geospatial Information Agency and the Indonesian Navy’s HydroOceanographic Office, will meet soon to determine the actual delineation of the sea points and geodetic lines between the two countries. “The agreement is expected to benefit both countries, economically and politically, by promoting more bilateral cooperation to advance the common interest of managing and preserving the resources in the EEZ, [while] further strengthening maritime security cooperation between the two countries,” it said. Joyce Ann L. Rocamora/PNA

HE Embassy of the Federation of Russia in the Philippines recently disclosed that the relations of the transcontinental country and the states of Africa are positively progressing, as it shared a transcript of statements from President Vladimir Putin concerning the just-concluded Sochi Summit. In a discourse with state news agency TASS, the Russian strongman said that his country and African states have traditionally enjoyed friendly time-tested relations: “Our country has played a significant role in the liberation of the continent, [as we] supported the struggles of its peoples against colonialism, racism and apartheid.” According to the embassy, the summit in Sochi opened a new chapter in the relations between the Russian Federation and African countries, with participants bringing their ideas on ways to develop cooperation. The Russian city hosted the Russia-Africa summit, the first full-scale, top-level meeting where leaders of African states and heads of Africa’s major regional associations were invited to attend. Putin stated that relations between his country and Africa are “on the rise,” as both maintain a close political dialogue, which include issues on global and regional security. Ties between parliaments are expanding, while mutual trade is steadily growing and diversifying. As Africa increasingly becomes a “continent of opportunities” with its vast resources and potential economic attractiveness, Putin acknowledged that interest in developing relations with its countries is currently apparent not only in Western Europe, the United States and China, but also on the part of India, Turkey, the Gulf states, Japan, Korea, Israel and Brazil. He also observed that while there are promising prospects for investment and profit, competition could sometimes go beyond the bounds of decency. This was manifested when “a number of Western states [resort] to pressure, intimidation and blackmail against sovereign African countries,” with hopes of helping win back lost influence and dominant positions in former colonies. The Russian president emphasized that his country is “not going to participate in a new ‘repartition’ of the continent’s wealth,” but rather engage in a type of competition for cooperation with Africa, within the context of civility and compliance with international laws. “We, together with our African partners, are committed to [protect our common interests while] defending them against unilateral sanctions,” Putin averred. “Our African agenda is positive and future-oriented.”

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FOOD! GLORIOUS FOOD! EL Nido bay and Cadlao island at low tide, Palawan DMITRY PICHUGIN | DREAMSTIME.COM

It’s not just the beaches that’s putting the Philippines on the global map– travelers are wowed by the cuisine

By Ma. Stella F. Arnaldo Special to the BusinessMirror

VERYONE is now a food tourist or food traveler. We go to the provinces for work or vacation, or go on holidays abroad, and take photos not just of the beach or iconic landmarks of the places we are visiting, but the food we eat as well. Social media, especially Facebook and Instagram, are filled with posts upon posts of dishes here and around the world, with hashtags like #instafood, #foodporn, #foodie and the like. Our own experience speaks of the incredible array of Filipino dishes that we can offer up to the world. We go to Iloilo and have Pancit Molo, have some crispy lechon in Cebu, go to Vigan for the tasty hot empanada, or even in Manila, where some kwek-kwek with vinegar could be quite an adventure. The Philippines is incredibly ripe for food and gastronomy tourism, what with the late celebrity chef Anthony Bourdain and culinary expert Andrew Zimmern calling the cuisine the next big thing. The World Tourism Organization (UNWTO) defines gastronomy tourism as “a type of tourism activity which is characterized by the visitor’s experience linked with food and related products and activities while traveling. Along with authentic, traditional, and/or innovative culinary experiences, gastronomy tourism may also involve other related activities such as visiting the local producers, participating in food festivals and attending cooking classes.” According to the latest market report of the UK-based market

research company Technavio, the global culinary tourism market is projected to post a compounded average growth rate of over 9 percent from 2019 to 2023. The Asia Pacific region, to which the Philippines belongs, ranks third in terms of growth in food tourism, after Europe and North America. In the Philippines, spending by inbound tourists on food and beverage has been rising as well. From just P41 billion in 2012, F&B spending by foreign tourists has

grown to P116.84 billion in 2017, with its share in total inbound expenditure rising as well from just 21 percent in 2012 to 26 percent in 2017. (F&B expenditures fell slightly to P105.06 billion in 2018, with the slowdown in arrivals that year due to the closure of Boracay Island. Its share to total expenditures similarly slipped to 23.8 percent.) The Department of Tourism (DOT) took a serious crack at promoting the Philippines as the “center of gastronomy” in Asia, by hosting Madrid Fusion Manila—the local edition of the popular gastronomy congress in Spain— for the first time in 2015. Featuring Michelin-starred chefs and popular local chefs showing off their culinary expertise and food philosophies, MFM was held every year thereafter, until it was put on hold in 2018, due to funding problems. More than the educational opportunity, what stood out during the three-day event were the exceptionally curated lunches featuring Filipino chefs/restaurants using local ingredients, as well as a wide selection of food products from across the country sold at the adjoining trade fair. MFM truly shined a much-needed spotlight on the Philippines and its exotic cuisine. The impact on the local food scene was enormous and transformative. DOT Assistant Secretary Verna C. Buensuceso, who had helped mount the annual culinary extravaganzas, observed “more restaurants now serving Philippine cuisine and ingredients on their menu.” Also, “Filipino chefs are connecting more with their counterparts in other countries, doing collaborations with other chefs (four-hands dinners, etc.) that also help drive awareness about the Philippines and our cuisine,” as well as the development of “food tourism products like food crawls and bar crawls, pop-ups, Philippine cuisine tutorials (e.g., Travelling Spoon), market tours Continued on F2

LENOVO 5X27.5

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FOOD! GLORIOUS FOOD! Continued from F1

that are livening up the food tourism scene here in the Philippines.” The DOT continues to push the Philippines as a major food tourism destination, hand in hand with farm tourism. It currently holds a regular food and farm tourism event, Philippine Harvest, in partnership with the SSI Group at Central Square in BGC. A food and travel festival “Kain Na,” organized with the Ayala Malls, features food and farm tourism offerings of provinces and regions where the malls are located, aside from cooking demos by local resident chefs. She added, DOT offices abroad have also been constantly promoting culinary and farm tourism packages to their target markets, and in travel fairs abroad, promotional activities are undertaken highlighting Philippine cuisine, food and beverage products and produce. There are as well constant familiarization trips for foreign media and foreign tour operators to check out popular Filipino dishes in select destinations in the country. Tweaks in the DOT’s promotion efforts may have to be made, however. A number of tour operators report that there are still few foreign tourists coming in specifically for food tourism. Rajah Tours Philippines president Jose C. Clemente III said, “In some instances, we include [a food tour] in the tour programs they want to see from us. Like if they want to go to Banaue, we suggest doing a Pampanga Culinary Tour.” He thinks food tourism in the country has yet to fully develop because “we still don’t have an established ‘food route’, that we can use like we do with our other tours. Also, while Filipino food is gaining some traction abroad, there is still a need to put more effort in promoting it. We need ambassadors in the foreign culinary community to spread the word so that Pinoy cuisine becomes fashionable and thus, interesting.” He noted, “Philippine cuisine still seems a novelty abroad. And if it’s not available abroad, people don’t think about it unlike Chinese, India, Thai and other cuisines.” Clemente suggests DOT plan an international event along the lines of MFM, but “locally organized”. While we wait for more foreign tourists to beat a path to our country’s doors looking to taste the hundred and one ways we make our adobo as well as our other incredible dishes, BusinessMirror’s chef friends point us to their own favorite hole-in-the-wall restaurants or hidden gems in their province’s cuisines.

PAN de coco

Chef JP Anglo (Sarsa)

AN avid surfer, the Bacolod-born Anglo indulges in his hobby mainly in Siargao, Surigao del Norte, where the ubiquitous pan de coco is a favorite snack. These are sold in local panaderias by the roadside, in front of the church or a basketball court. What makes this pan de coco unique, he explains, is “they add coconut husk meat to cook the bread in the makeshift oven. It’s done by hand, they put gata [coconut milk] in it, and grated coconut, and because of the husk, it gives a nice aroma to the bread.” Baked fresh, and tasty all the way, the pan de coco costs P5 per piece, and, Anglo says, is a hit with many foreigners.

CHEF JP Anglo

LAS CASAS 6X23 KILAYIN Pampagueña

Chef Sau del Rosario (Cafe Fleur)

CHEF Sau del Rosario

ALTHOUGH trained in the classical French techniques, Del Rosario is a proud Capampangan and promotes his province’s native dishes especially when cooking for foreign diners. He says he takes comfort in restaurants like Maggs Canteen at the old public market in San Fernando. “It’s the best for me. It’s really hidden in the middle of the market and serves at least 30 different Capampangan dishes turo-turo style.” His favorite is the Kilayin Pampagueña, which he describes as similar to a kilawin as it uses vinegar for cooking, but is closer to bopis as it is made of pork lungs, throat, esophagus, liver and pancreas.

nities in a Time of Change

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Thursday, October 31, 2019

CHEF Pauline Gorriceta-Banusing

Chef Pauline Gorriceta-Banusing (Al Dente)

ALTHOUGH Gorriceta-Banusing specializes in Italian dishes, she is a major proponent of Ilonggo cuisine and is often invited to helm Ilonggo or Western Visayas food festivals at hotels in Metro Manila. The culinary delight she wishes to share is the sea urchin, harvested at one of the small islands in Islas de Gigantes, a growing attraction in Iloilo province. “There’s no specific eatery that sells them. Kids from the island will come swimming and offer these sea urchins (P20 per piece) while you are touring in the pump boat. They open it right in front of you and offer vinegar.” Continued on F4

SEA urchin

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FOOD! GLORIOUS FOOD! Continued from F3

CHEF Robby Goco

Chef Robby Goco (Green Pastures)

THE enfant terrible of the Philippine restaurant industry recommends a visit to the little known Pinakbet Farm in Caoayan, Ilocos Sur. “It’s a great concept, with eatall-you-can really fresh pinakbet, portioned roasted chicken, grilled pork belly, grilled tilapia, pandan rice and lemongrass juice all harvested for their farms. It’s a real farm-to-table experience! Great value pa.”

FRIED crabs

Chef J Gamboa (Cirkulo)

GAMBOA’S go-to restaurant is Mr. Sunmoon on Club Filipino Avenue in Greenhills, where his favorites are the fried crab and crab sotanghon. “It’s a small place with seats for just 50 people, and the owner is always there.” He adds, “for the fried crab, I think they lightly coat it in potato starch before frying. I recommend selecting 850-1,000gram male crabs, which are best enjoyed with chili onion and vinegar. For the crab sotanghon, female crabs are recommended as their fat (aligue) adds to the richness of the dish. The crabs are braised with sotanghon noodles, ginger, leeks, soy sauce and butter.”

PINAKBET Farm

CHEF J Gamboa

High tech, high touch: merging digitalization with brick and mortar I N its journey to be more digital, the Bank of the Philippine Islands (BPI) is using a ‘high tech, high touch’ approach to ensure that the bank gets to serve clients from all segments and give them a seamless omnichannel banking experience. As it invests heavily on technology to lower cost to serve, BPI is also focused on transforming its branches into avenues for high-value conversations. “While we provide the tools that allow our clients to do self-service with high tech, it is important that we have high quality face-to-face interactions with them as well. When clients visit the branch, we ought to make it worth their

BPI 10X27.5 while. It’s about combining high tech with high touch,” BPI President and CEO Cezar Consing said. BPI’s commitment to improve its physical network is evidenced by the flagship branches it recently inaugurated across Metro Manila. With

innovative designs that aim to cater to all types of clients and provide a more comfortable and enriching face-to-face interactions with branch personnel, the bank’s flagship branches are remodeled and refurbished old branches that embody the vision of a modern and more

digital BPI. These branches are bigger in size compared to regular ones and have more relationship managers for its preferred and private banking clients. The bank’s first-ever flagship branch was the Ayala Insular Life branch in Makati, with a

vast space of 680 square meters, inaugurated in 2017. It features a lounge for preferred clients, safety deposit boxes, trusted advice corner for meaningful conversations with relationship managers, and BPI’s newest electronic channels such as ATMs and CAMs (cash accept machines).

BPI also opened a flagship branch in Bonifacio Global City (BGC), the Bank’s first and biggest branch that sits at the heart of Taguig’s business district. Its facilities include a ‘preferred lounge’ along with three ATMs, enclosed conference rooms, and training rooms. Standing witness to BGC’s evolution into becoming a central business district in Metro Manila, the branch has skilled and experienced personnel ready cater to the dynamic clientele in the area. In August, BPI opened its Shangri-La Shaw branch, its biggest branch in northern Metro Manila. Catering to clients in Mandaluyong and Ortigas, two of the biggest business districts in the country, this flagship branch houses the first multi-purpose preferred center. This branch showcases the most modern and innovative designs that complement the Bank’s aim to provide trusted financial advice, and seamless and convenient client experience. Just last week, BPI inaugurated its newest flagship branch located at the heart of the Makati central business district. The old head office branch was transferred to the Makati Stock Exchange building and remodeled into an illustrious flagship branch, now called the BPI Makati Main branch. Groomed to be the go-to branch in the Makati area, the BPI Makati Main branch caters to all client segments – retail, preferred, private, and corporate banking – offer specialized banking services. With an area of almost 3,000 square meters – which will be further expanded by another 179 square meters by December 2020, this is BPI’s biggest branch in terms of size and deposits in the city. These flagship branches are proof that while the Bank aggressively ventures into the digital arena, BPI remains committed to growing and improving its physical network, albeit at a measured pace. With a majority of the Filipino population still unbanked, BPI recognizes the vital role that branches play not only in BPI’s mission to cater to the varying needs and preferences of its clients but also in the nation’s pursuit of greater financial inclusion. While going digital is the main anchor, BPI is not only focusing on the digital aspect in its transformation. The ultimate goal is for clients to have a seamless omnichannel banking experience which primarily entails harmonization of all its channels – digital or otherwise. Krista Ariola

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Digitally enabling regulations and practices PHL’s best hope for rising competitiveness

By Lorenz S. Marasigan

OLEG DUDKO | DREAMSTIME.COM

HIFTING from a set of “landline-era policies” to digitally enabling regulations and practices may help improve the Philippines’s ranking in competitiveness reports, all while creating a huge impact on both the macroeconomy and individuals. Continued on G4

PARKWAY CORPORATE CENTER

RIDES ON PH GROWTH MOMENTUM T

HE Philippines made it to the top 10 alongside countries such as Japan, Singapore, United Kingdom, and China, placing third best country in 2019 to invest or do business in, according to CEOWORLD magazine. Among the criteria the business executives considered in ranking investment potentials were: freedom, workforce, infrastructure, quality of life, and technological readiness. For global investors looking at the Philippines, Parkway Corporate Center—a well-planned and designed office condominium in Filinvest City, Alabang—offers a unique and appetizing opportunity to further boost the country as a business-friendly location with secured and strong financial future and high capital growth. Situated in the high potential garden business district in the Metro South, Parkway Corporate Center automatically presents an enticing proposition for businessmen and investors venturing in the Philippines.

Increasing land values

IT is located in Filinvest City—a premier central business district which has cemented its position as the new frontier in Metro Manila, commanding land values up to P572,000.00 per sqm net as of October 2019. It has also seen approximately 300% growth in land values over the last ten years. Moreover, its location is significant as it creates an overalll refreshing environment with Filinvest City being the first to register for a Leadership in Energy and Environmental Design-Neighborhood Development certification granted by the US Green Building Council. With the entry of global brands into the city, Parkway has been offering office spaces to accommodate investors, entrepreneurs and professionals looking expand their real estate portfolio.

FILINVEST PARKWAY 10X27.5

“The demand for office space in integrated business districts has been on an uptrend since the start of the decade. Offices here at Filinvest City enjoy the lowest vacancy rates compared to other central business districts. Demand is high, not only for BPOs, but also for traditional offices and corporate headquarters,” according to Sherilynne Santos, Parkway Corporate Center senior project development manager. As the city takes a big leap towards becoming a dynamic business hub, Santos also says, “Parkway Corporate Center buyers realize that their units will rise in value as more projects are put up in the city to address employees’ and residents’ needs for mobility and the desire to be in well-integrated live-work-play environment.”

Unique accessibility

THIS well-integrated live-workplay environment means business owners or investors are within proximity and have unique access to a wide-range of quality establishments: Festival Mall, Westgate Center, and Palms Country Club for retail; Botanika Nature Residences, Bristol at Parkway Place, Studio

City, West Parc, and The Levels for residential options; medical institution like Asian Hospital; several educational establishments like San Beda College Alabang, Far Eastern University, and De La Salle Medical and Health Sciences Institute. The international airport is also just a 30-minute drive away from Filinvest City. Located where traffic congestion is not commonplace unlike other CBDs, Parkway Corporate Center is easily accesible via SLEX exit coming into Filinvest City’s Spectrum District, or Metro Skyway, Alabang Zapote Road, and Daang Hari Road. Currently, construction of NLEX – SLEX extension is ongoing which will soon make travel time shorter. Major thorough fares make Parkway Corporate Center also make a convenient workplace to a competitive and best-educated labor force from neighboring areas like Las Piñas, Parañaque, Laguna, and Cavite.

Riding on the growth

PARKWAY Corporate Center is an ideal business office that creates a sense of community and lends credibility, stability, and professionalism to your corporate im-

age. Designed by top architectural firm H1 Architecture and Design, it promises to further support Filinvest City’s sustainable efforts. In fact, Parkway Corporate Center is the first LEEDv4 Certified under Core and Shell rating system in the

Philippines, making it an energy efficient and future-ready investment for businesses. Without a doubt, Parkway Corporate Center at Filinvest City continues to ride on the Philippines’ growth momentum for businesses

and investments with its futureready, premium grade office tower with flexible and combinable office units now ready for occupancy. To know more about Parkway Corporate Center, visit http:// www.parkwaycorporate.com.

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As Marawi rebuilds, DBP’s Islamic banking unit steps into the breach

By Rizal Raoul Reyes

L AMANAH Islamic Investment Bank of the Philippines (AIB), a subsidiary of the Development Bank of the Philippines (DBP), will play a vital role in the rehabilitation of war-torn Marawi City and the development of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). During the recent celebration of its 46th anniversary, AIB Chairman and Chief Executive Officer Alex P. Bangcola said the bank launched its General Islamic Investment Account (GIIA) and Trust Waqf Fund (TWF). Gracing the launch, Chief Minister Al-Hajj Murad Ebrahim of the BARMM pledged to support the bank. Moreover, Murad was impressed with the potentials of the bank and said it can be a valuable partner of BARMM in its pursuit of economic development, according to Bangcola. Being the country’s only Islamic bank, AIB will serve as the government’s arm in ensuring

poverty alleviation, especially in Muslim Filipino communities across the country, by delivering them the goodwill and simplistic Islamic banking and financing that are responsive, sensitive and suitable to their way of life. Moreover, Bangcola said AIB is mandated to provide Muslim Filipinos with Islamic banking and financial education that can help them improve their economic condition and make them a significant economic force of the nation. “According to the Bangsamoro Organic law (BOL), BARMM can invest in AIB,” Bangcola said. Aside from providing loans for development projects, Bangcola

ALEX P. BANGCOLA, chairman and CEO of AIB LYNDON JOSON/CORPORATE AFFAIRS DEPARTMENT, DBP

said AIB has provided loans for microfinancing in Marawi, particularly for the internally displaced persons (IDPs) from the Marawi siege. It has reopened its Marawi branch to serve the growing clientele for micro, small and medium enterprises (MSMEs).

Islamic banking

ISLAMIC banking, also known as non-interest banking, is a system

based on the principles of Islamic or Shari’ah law and guided by Islamic economics. Unlike conventional banking that earns profits from interests of the loans granted, Islamic banks earn profit through equity participation, which Islamic rules on transactions are called Fiqh alMuamalat. Typically, financial transactions within Islamic banking are a culturally distinct form of ethical

SHARP 5X27.5

THE sun begins to set in an area where government troops battled Islamic extremists in Marawi City, June 15, 2018. Muslim residents of the city devastated by a bloody militant siege celebrated the Islamic holiday of Eid al-Fitr in bullet-riddled mosques while many whose homes were leveled by the fighting prayed in tent shelters. AP/AARON FAVILA

investing. It does not allow investments in alcohol, gambling, pork, and other forbidden items. When Islamic bankers need more data and information, they tap learned scholars to verify some details on Islamic banking to ensure they would not deviate from the principles of the Quran and Islamic banking. Islamic banking is quite different from conventional banks,

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Thursday, October 31, 2019

CSI 10X7 according to Bangcola. Unlike conventional banks that make money by charging interest from their loans, Islamic banks share the profits with the borrower, in an exercise that is done on a negotiated basis. Meanwhile, Bangcola said AIB also shares in the loss of a business. For example, conventional banking requires collateral from the borrower, and the bank typically acquires the collateral if the borrower fails to settle the financial obligation. In Islamic banking, however, it is very rare that a borrower is required to provide collateral. “We share in the loss and the profit. In Islamic banking, a borrower is a partner and not a lender,” he said. Furthermore, Islamic banking also discourages the practice

of riba, a concept in Islam that discourages nefarious activities when conducting business and trade under Islamic law. Bangcola said AIB will soon liaise with the Saudi Arabia-based Islamic Development Bank for possible partnership in development projects in Mindanao and the BARMM. The Islamic Development Bank is the World Bank counterpart of the Islamic community in the world. Members include all the Arab oil-producing countries plus Malaysia, Brunei and Indonesia. “We could access the credit facilities of the financial institution. Currently, AIB is sorting the properties in the province,” Bangcola said. He said AIB is also going to be active in the rehabilitation of Marawi.

AIB plans to expand the Marawi Resort Hotel, the only hotel in the province and co-owned by AIB. It also plans to engage in other projects in Marawi, such as renewable energy and road development, among others. There is also the UN Habitat housing and livelihood project worth P300 million. As a lender, AIB is also involved in microfinancing in Marawi and other parts of Mindanao. Moreover, the bank also “provides assistance to lenders on how to manage their finances,” AIB special assistant to the chairman and CEO Sarima M. Punguinagina said. “Actually we are doing that in the Marawi branch. We assist them on how to avail themselves of our loans. As I’ve said earlier, it was very successful

and it is still ongoing,” she said. AIB started the two-year microfinancing program in all their branches—Cotabato, Zamboanga, General Santos, Cagayan de Oro and Davao, and even in Greenhills. “Actually, Islamic financing is not exclusive to Muslims as even nonMuslims can also avail themselves of the services of Islamic financing if the individual is living in a Muslim area. In fact, a big chunk of our budget was availed of by non-Muslims,” she said. Right now, she said, “we’re working on something in the BARMM because there are clients interested.” They reached out to a client in Port of Polloc that plans to put up a yellow corn facility in the area. “We have some clients in Zam-

boanga who are engaged in seaweed farming and some big projects in Tawi-Tawi. Islamic Development could be a possible funder for the project,” she said. To seek potential investors in infrastructure projects in Mindanao, AIB will put up roadshows this year in Brunei, Dubai and Qatar. AIB will present the projects to potential funders. “We brought project proponents to the tours.” The projects will cost at least P1 billion. Right now, AIB has a total of nine branches in the Philippines, and Bangcola believes it is a good number. “We plan to open more branches as soon as the need arises.” Meanwhile, the Bangko Sentral ng Pilipinas (BSP) is still wait-

n Islamic banking, it is very rare that a borrower is required to provide collateral. “We share in the loss and the profit. In Islamic banking, a borrower is a partner and not a lender.”—AIB Chairman and Chief Executive Officer Alex P. Bangcola

SM 6X30

ing for feedback from various sectors for the Shari’ah Governance Framework and the licensing of Islamic banks. One of the most important components of the Shari’ah Governance Framework includes requiring Islamic banks to establish an effective board of directors (BOD) and management oversight over their Shari’ah compliance. “The BOD shall be ultimately responsible and accountable for ensuring full conformity of the Islamic bank or Islamic banking unit with the Shari’ah principles. The BOD needs to be fully cognizant of the risk of Shari’ah noncompliance and its potential implications on the reputation and business of the Islamic bank or Islamic banking unit,” the BSP said.

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G4 Thursday, October 31, 2019

Continued from G1

This was the shared view of the Internet coalition Better Broadband Alliance (BBA) and the Department of Information and Communications Technology (DICT) Undersecretary Eliseo M. Rio Jr., who both agree that technology development will play a key role in improving the ranking of the Philippines in the next Global Competitiveness Report of the World Economic Forum. Grace Mirandilla-Santos, the convener of the alliance, said the development of the digital economy through better infrastructure has a significant impact in the economy. Citing reports from the World Bank and Ericsson, she said a 10-percent increase in broadband penetration results in a 1.38-percent increase in GDP, while a 0.5-Mbps broadband connection can help a household make as much as $800 per year in additional income. “Thus, the cost to the Philippine economy of poor Internet access and slow Internet speed can be enormous. The main culprit: using analog policy in the digital age,” she said. “Outdated policies have resulted in: 50 million Filipinos still offline; fixed and mobile broadband connections among the slowest in the world; and broadband services that remain unaffordable to a large segment of society, especially those living in the rural areas.” Due to commercial implications, mobile network operators tend to deploy telco infrastruc-

ture in urban areas and densely populated rural areas. But those facilities are not enough to provide speeds that are on a par with Asean neighbors. Often, the Philippines finds itself in the bottom three of Opensignal, Ookla and Akamai’s Internet connectivity reports for Asia and the Pacific. This, even as the country is deemed home to one of the most “social peoples” in the world . According to Mirandilla-Santos, this reality is the culprit behind the Philippines’s dropping in the Global Competitiveness Report of the World Economic Forum for 2019. The country ranked 64th out of 141 economies in the world, or eight places lower than its finish in 2018, indicating that the Philippines failed to create an enabling environment for improved human capital and productivity that is supported by an innovation ecosystem for wealth generation. The Philippines also had a poor ranking in ICT adoption, which is measured by the population’s subscription to mobile and fixed services and the rate of access versus the population. It booked a solid 20-percent difference to 50 points versus its peers in East Asia and the Pacific, including less developed nations.

Needed legislation

MIRANDILLA-SANTOS said her group is urging lawmakers to pass laws that will update the “landlineera” policies and promote digital connectivity. “In particular, BBA partners

strongly support the Open Access in Data Transmission bill, which is critical to establishing a forwardlooking and future-ready digital policy framework for the Philippines,” she said. Previously sponsored by former senator Paolo Benigno A. Aquino IV, the bill aims to create the space for different types of service providers to build and operate data networks. It proposes a simplified registration and qualification process in order to attract more players to invest in much-need data transmission infrastructure. It likewise encourages infrastructure sharing to make network deployment faster and more costefficient, promotes transparency in spectrum management, and mandates interconnection among operators. Aquino did not see the bill passed during his term, but Sen. Ralph G. Recto re-filed it in July this year.

Vision 2020 to aid in infra development

FOR his part, Rio, an undersecretary for the ICT department, agreed with the view of the Internet coalition, noting that his group has been voicing this out for quite some time now. “Our infrastructure are overwhelmed and congested. So we really have to improve our infrastructure so that we can at least improve our services,” he told the BusinessMirror. “Improving our infrastructure can definitely help us improve our ranking.” In terms of policies, Rio said the government has adopted Vi-

‘T

he cost to the Philippine economy of poor Internet access and slow Internet speed can be enormous. The main culprit: using analog policy in the digital age. Outdated policies have resulted in: 50 million Filipinos still offline; fixed and mobile broadband connections among the slowest in the world; and broadband services that remain unaffordable to a large segment of society, especially those living in the rural areas.”—Grace Mirandilla-Santos, Better Broadband Alliance sion 2020, an overarching plan to improve the physical infrastructure for the digital economy. Under the plan, the government aims to end 2020 with better Internet coverage, speed, and lower costs of services through critical infrastructure development programs, namely, the Luzon Bypass Infrastructure, the Dark Fiber Network, the National Broadband Network, the Free Wi-Fi in Public Places, and the Third Telco Initiative. Luzon Bypass Infrastructure, being constructed by the Bases Conversion and Development Authority (BCDA) in partnership with Facebook, will be a 250-kilometer cable network corridor that will provide a terrestrial bypass route for international submarine cable owners. It will have a capacity of two terabits per second, which is almost equal to the combined capacity of incumbent telcos.

The Dark Fiber Network, on the other hand, involves the utilization of the fiber backbone of the National Grid Corporation of the Philippines (NGCP) and the National Transmission Corp. for the use of the two energy companies’ dark fiber facilities that span 6,154 kilometers across Luzon, Visayas and Mindanao. Meanwhile, the National Broadband Network is the program for the development and deployment of a mixture of several Internet connectivity technologies, such as fixed line and mobile data, among others, all over the Philippines—including missionary areas. The Free Wi-Fi program, on the other hand, involves the deployment of Wi-Fi connectivity in public spaces such as schools, government offices, parks, hospitals and other locations all over the

Philippines to help connect Filipinos to the Internet. The ICT department targets to install a total of 8,073 operational live sites for the year 2019. Lastly, the third telco initiative pertains to the introduction of new competition in the telco market. Its adjacent program, the Common Towers Initiative, will play a key role in making sure that the third telco—and the incumbent players—will have sufficient towers to provide access and better services to more Filipinos. “Our goal is by 2020, we will have the infrastructure that we need,” Rio said. “We still have a lot of catching up to do, but our target is by 2020, we will enjoy faster speeds, better quality of service, improved coverage and lower costs.”

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Thursday, October 31, 2019 H1

Real estate soars high with PH’s ‘uninterrupted economic growth’ A By Leony Garcia

CCORDING to the Philippine Statistics Authority (PSA), the Philippine economy expanded by about 6.2 per cent in 2018. It was lower than the average annual growth rate of 6.6 percent from 2012 to 2017 but still places the country as among the fastest-growing economies in Emerging Asia. During Q4 2018, industry had the fastest growth, with 6.9 percent, followed by services (6.3 percent) and agriculture (1.7 percent).

The total number of foreign tourist arrivals rose by 7.7 percent to 7.1 million people in 2018 from a year earlier, according to the Department of Trade and Industry (DTI). South

Korea remained the country’s top tourism market with 22.3 percent share, followed by China (17.6 percent), the US (14.5 percent), Japan (8.9 percent) and Australia (3.9 percent).

The economy is expected to grow at a faster pace of 6.7 percent this year, amidst improving macroeconomic conditions and slowing inflation, according to ADB President Takehiko Nakao. The Philippine economy grew by an average of 6.3 percent annually from 2010 to 2016 with the previous administration’s socioeconomic reform including anti-corruption campaign which wowed foreign investors and caused consumer confidence to surge. The Philippines’ investment ratings were upgraded to investment grade by Moody, Standard & Poors’, and Fitch Ratings. The Philippines’ competitiveness improved sharply, with a Global Competitiveness Index rank of 47th out of 140 economies in 2015-16, up from 52 in 2014, 59 in 2013, and 65 in 2012. Today, favorable opportunities and a strong appetite for residential, office and commercial spaces continue to fuel optimism in the real estate sector. “In the current economic Continued on H2

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Real estate soars high with PH’s ‘uninterrupted economic growth’ Continued from H1

climate, the opportunity is for developers to expand their office, residential and hospitality footprints outside Manila. Developers should seize this opportunity to build more offices in key hubs outside Manila, and acquire land parcels near soon-tobe expanded regional airports. Hoteliers should continue facilitating intra-Asian demand, by implementing mobile payment platforms popular with Chinese and Korean tourists,” Colliers International Philippines said in its published report in August 2019. President Rodrigo Duterte’s ambitious US$180-billion "Build, Build, Build" program also makes a difference in the overall outlook both from local and foreign investors. BBB is designed to modernize the country’s infrastructure by rolling out 75 flagship projects, including 6 airports, 9 railways, 3 bus rapid transits, 32 roads and bridges, 4 seaports, 4 energy facilities,

10 water resource projects and irrigation systems, and 5 flood control facilities, among others. Nine of these projects are currently under construction, including the Clark Airport expansion; the first phase of the Metro Manila subway; the NorthSouth railway projects; the 130km first phase of the Mindanao railway; the Kaliwa water supply project; and the Cavite flood control project, among others. Some 28 projects are projected to be completed before the end of Duterte’s term in 2022. These projects are expected to sustain strong economic growth, raising annual infrastructure spending by about 3 to 7 percent of GDP until 2022. “We will make the next few years the golden age of infrastructure in the Philippines to enhance our mobility and connectivity, and thereby spur development growth. In other words, we are going to build, build and build," the president said.

The Rise of Emerging Cities

A lot of urban planners and developers have taken time to develop other cities and municipalities outside the metropolis to decentralize the political decisions, decongest the cities and democratize the resources giving way to the development of emerging cities. For highly respected urban planner and architect Felino Palafox Jr, principal of Palafox Associates, the emerging cities are Puerto Princesa, Zamboanga, Clark, San Fernando (Pampanga), Laoag, Vigan, Legazpi, Balanga, Batangas, Lucena, and Iloilo owing to their adequate infrastructure such as international airports and seaports that could develop bigger opportunities for trade and tourism to generate employment, a healthy workforce, and efficient land use. Davao and Cebu, of course, are way ahead of the group and should promote better mobility

Hamden Kitchen appliances up for grabs with Wilcon Depot Loyalty Rewards Promo

Danish Furniture Store Normann Copenhagen Opens 1st PH Branch in Uptown Bonifacio

HE kitchen is the heart of every home, and for some, cooking is a great stress reliever. Some feel at peace due to the joy of creating something out of scratch while others just love eating. But if there's one thing that we don't like about being in the kitchen, it's the scent of oil and smoke that sticks to our clothes that agitates us. Whatever the reason may be, one thing for sure is that we all want to cook with appliances that are safe and durable. Having awesome kitchen appliances like Hamden can inspire you to cook more and eat well. Hamden is a high-end brand that offers top-notch kitchen appliances ranging from gas burners, electronic hotplates, range hoods, and induction hobs. Hamden provides reliable, safe, and durable products that will surely make your cooking time hassle-free! Also, Hamden offers you sophisticated designs that are developed with the highest standards and superb quality features that meet your kitchen needs for traditional and convection cooking. Infact, you can win these amazing Hamden products that are perfect for all kitchen types when you join Wilcon

ORMANN Copenhagen, the Danish company that makes minimalist and Scandinavian-inspired furniture, currently has 80 plus branches worldwide and has spread mostly throughout Europe. They wanted to expand further after gaining success in Asia in recent years and finally opened its first f lagship branch in Southeast Asia at Uptown Bonifacio, Taguig City, Philippines. Established by Jan Andersen and Poul Madsen in 1999, they started out as a small store in Denmark with their homemade designs. Until such a time that they started their own branding and was then known for their longlasting quality furniture, and unique, innovative designs and collections - from chairs, tables, and sofas, to lamps and various home and office accessories. Normann Copenhagen is located at the UGF of One Uptown Residence, Uptown Mall, Uptown Bonifacio, Taguig City. For more information, you may call the Uptown Bonifacio Concierge at 7616-7613.

Depot Loyalty Rewards Promo. In celebration of the 42nd anniversary of the country’s leading home improvement and construction supply retailer, Wilcon Depot is giving away fifteen (15) Hamden kitchen appliances. 1 Million rewards points and ten (10) smartphones are also up for grabs this October! Have a major kitchen upgrade from Hamden with Wilcon's Loyalty Rewards Promo! There will be ten (10) lucky winners of Hamden Burner and Rangehood and five (5) winners of Hamden 4 Gas Burners. For a minimum spend of 5,000 single receipt in-store or online purchase, Wilcon customers are entitled to one electronic raffle entry. The promo runs until October 31, 2019. Customers can register at Wilcon website www.wilcon.com.ph and submit their entries until November 5, 2019. The winners will be randomly selected via an electronic raffle draw on November 12, 2019. So, what are you waiting for? Shop now at any Wilcon Depot and Wilcon Home Essentials store— with 55 outlets nationwide—or shop online from Wilcon's wide range of home improvement supplies by visiting shop.wilcon.com.ph and get the

chance to be one of the lucky winners of Hamden kitchen appliances. For more information and promo updates, visit www.wilcon.com.ph and follow their social media accounts on Facebook and Instagram at @ wilcondepot.ph.

Lamudi Honors Buyers’ Choice in The Outlook Awards

L Normann Copenhagen’s chair designs

The brand is known for its trendy and young Scandinavian design

EADING real estate platform Lamudi gathers the top real estate developers in the Philippines for The Outlook 2019: Philippine Buyers’ Choice Property Awards, a gala event co-presented by Philippine Daily Inquirer Property and Holcim Philippines to be held at the Makati Shangri-la on November 14, 2019. The event recognizes the real estate innovations developers designed in response to the changing needs of property seekers all over the country, with nominees shortlisted by a panel of judges and winners chosen through a survey with 10,000 active Lamudi property seekers. Lamudi’s preparations started in January, when nominations were opened to all developers in the Philippines until May 31st, provided their development has not won at The Outlook Awards before. There was no nomination fee to submit the name of a project, and no limits were imposed on the number of nominees in all award categories. The real estate platform asked selected judges to review all the nominations between June and July, using a predefined categoryspecific score sheet for each category as a guide in shortlisting the

nominees. The panel of judges will determine the winners of the Special Awards. The winners for the House, Condominium, Mixed-use, and Grand Awards categories will be determined via a 10,000-respondent survey involving active property seekers on Lamudi. The Outlook: Philippine Buyers’ Choice Property Awards, which is supported by the Subdivision and Housing Developers Association (SHDA), received an overall increase of 30% in the number of nominations in its third year, with

a 90% increase in the number of nominees from Visayas and Mindanao compared to 2018. Shortlisted by the panelists are nominees for Best Affordable Premium and Luxury Condo, Best Affordable and Premium House, Best Mixed-Use Development, Best Green Project, Best Innovation Project, Best Co-Living Project, Best CoWorking Space, Best Boutique Developer and Best Developer Awards. For more information, visit lamudi.com.ph/ outlook2019-awards. Leony Garcia

nities in a Time of Change

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by creating walkable and bikable streets complemented by robust mass transport systems. Then there is Clark Global City housing the new Clark International Airport with expected almost 8,000 average daily passenger volume from over 200 international and 400 domestic f lights. The new city is also home to several Grade A office towers, international hotel chains and upscale residential condominium projects of DataLand, Century Properties, and Udenna’s PH Resorts. This is not to mention the in-progress completion of the West Aeropark with five office towers, two of which is fully occupied by BPO companies while the rest are pre-leased by a Philippine Offshore Gaming Operator (POGO) company.

Emerging city by the bay

CURRENTLY building by the bay is D.M. Wenceslao and Associates Incorporated, the master developer of Aseana City, one of the largest undeveloped landbanks in Metro Manila, bordering Mall of Asia, PAGCOR Entertainment City along the shores Manila Bay fronting Parañaque City. “Basically, we are developing that whole area as a new city, to be a next-generation development,” the developer said. Located along Roxas Boulevard, the project offers a spectacular view of the world-famous Manila Bay’s beautiful sunset.

Thursday, October 31, 2019

Nearby is Aspire Corporate Plaza, a P2-billion office building to be completed by 2020. A project of GOLDEN BAY Fresh Landholdings, Inc., Aspire is touted as the “first and only property in the Macapagal Bay Area to sell office spaces. The 10-storey Aspire Corporate Plaza is aimed primarily at small and medium-sized enterprises. With an approximate total area of two hundred four (204) hectares, Aseana City offers a closer view to history as it’s in the vicinity of the walled city of Intramuros and country’s bastion of business achievement – Binondo, Makati and Ortigas.

Making PH cities liveable

IN the Philippines, investment opportunities for livable cities could give a prize of at least $82 billion and 4.4 million jobs by 2030,” Systemiq senior advisor Gail Klintworth said during the “Sustainable Cities Summit: Building Liveable Cities” held in October 17 at the Sofitel Philippine Plaza. Klintworth encouraged private sectors to follow United Nations’ Sustainable Development Goals (SDGs) as the "blueprint" to achieve a better and more sustainable cities and future for all by 2030. City mayors and private sector representatives took part in the Summit to discuss how to improve the state of local cities and make them more liveable. Mayors of the 145 cities in the Philippines together with

private sector professionals and practitioners discussed major issues in developing liveable cities – basic services, mobility, resilience, and GovTech. Aside from Klintworth, local and international experts were invited to share ideas and best practice around these key challenges and share how current digital trends and emerging technologies can bring about innovation in cities and communities. Launched at the Summit is the Dashboard and Liveable Cities Challenge. The Dashboard is a visual database of key indicators of all the cities in the Philippines, which will be useful for local chief executives, investors, and residents in assessing the competitiveness and liveability of cities. Meanwhile, the Challenge is a 90-day design competition where cities will have the opportunity to meet mentors and compete to pitch their design solutions to a panel of experts in early 2020. “Cities are the centers of economic growth and innovation, but the rate of urbanization and internal migration has created new challenges involving disaster resilience, mobility, and the delivery of basic services,” said Liveable Cities Challenge Chairman Guillermo M. Luz. “The Liveable Cities Challenge can help local officials develop comprehensive, replicable, and implementable solutions to improve the liveability of our metropolises, while strengthening local communities in the process.”

Golden Bay Landholdings Gives Back, Spreads Goodwill

GOLDEN BAY Landholdings Chief Operating Officer Jardin Brian Wong turns over the dump truck to Naic Mayor Junio C. Dualan and witnessed by officials of the local government unit of Naic, Cavite.

OLDEN Bay Landholdings, developer of the premier real estate project Aspire Corporate Plaza in the Macapagal Bay Area, Pasay City, recently donated a dump truck to the municipality of Naic in Cavite. The municipality is the neighboring site of Garden City, the next development project of Golden Bay Landholdings. Garden City will be a 6-tower condominium development with an

earthly charm environment that will promote and nurture balance in quality living. Executives of Golden Bay Landholdings believe in a strong and coherent publicprivate synergy to help fast track nation building. The company is actively doing its part by helping deserving and high-performing LGUs, NGOs and other organizations. The owners of Golden Bay Landholdings are the

same group behind the successful Golden Bay Fresh Seafood Restaurant along Macapagal Avenue. On its 10th year of operation, the company expanded its business to venture into the real estate property sector. It envisions itself as a full-service boutique real estate developer and property management company that will provide lasting value to the community it builds in.

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