THE MANILA TIMES | JULY 20, 2019 by The Manila Times

Monetary policy settings appropriate, says Diokno »Story on B1 HH

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SATURDAY, JULY 20, 2019

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Police, military in ‘Morong 43’ rights case walk

SPEAKERSHIP SHOWDOWN

THE Sandiganbayan Seventh Division has dismissed charges against police and military officers behind the illegal arrest and torture of 43 health workers, collectively known as the “Morong 43,” in Morong, Rizal, in 2010. Citing insufficient evidence, the anti-graft court in a resolution granted the demurrer to evidence filed by retired Lt. Gen. Jorge Segovia, retired Maj. Gen. Aurelio Baladad, then-2nd Infantry Division (ID) Chief of Staff

ä’Morong 43’A8

Business leaders give President ‘excellent’ rating

Duterte siblings battle Cayetano A

power scuffle may shake up the speakership race on Monday as Davao City Rep. Paolo “Pulong” Duterte and Taguig Rep. Alan Peter Cayetano are set to hold separate breakfast meetings with select congressmen right before elections for the top post in the House of Representatives.

ECONOMIST Gerardo Sicat, also a former National Economic and Development Authority chief and socioeconomic planning minister, on Friday said while “the economy has been experiencing consistent, sustained growth over the last few decades,” which can also be attributed to previous presidents, he acknowledged the

ä’Excellent’A8

BY GLEE JALEA

n Rep. Paolo ‘Pulong’ Duterte

n Rep. Alan Peter Cayetano

Multiple sources on Friday bared that they have received invita-

tions from the two lawmakers who will be hosting the meetings in separate areas of the

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First an autopsy, then resurrection under a human rights act by Congress First word HIS, I submit, is what is needed to correct the deplorable situation where the country’s principal human rights agency, the Commission on Human Rights (CHR), spends no time defending the human rights situation in the country, and is clueless before actions like the UN Human Rights Council resolution calling for an international investigation of human rights violations in the Philippines.

OBSERVER YEN MAKABENTA

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There goes Cayetano as House speaker; also Medialdea IN MY LINE AGUOF SIGHT IG Rep. Alan Peter Cayetano’s candidacy for Speaker of the House of Representatives is in peril after President Digong said there was corruption in the preparations for the holding of the 30th Southeast Asian Games to be held in the country in November this year. äTulfoA5

RAMON T. TULFO

FOR REEL

Actor Dingdong Dantes along with other ‘Kapuso’ actors Rocco Nacino, Paul Salas, Prince Clemente, Jon Lucas and Lucho Ayala brave a two-day rigorous training with the Special Forces of the Philippine Army in Fort Magsaysay, Nueva Ecija, for their roles in the Philippine adaptation of the hit South Korean drama ‘Descendants of the Sun.’ PHOTO COURTESY OF PHILIPPINE ARMY

Poll: Pinoys want SONA to tackle inflation, jobs, China MORE Filipinos want President Rodrigo Duterte to address salary rates, rising prices of basic commodities, job creation and the country’s relations with China during his fourth State of the Nation Address (SONA) on Monday, according to the latest Pulse Asia survey released on Friday.

Conducted through 1,200 face-to-face interviews with registered voters aged 18 and above from June 24 to 30, the survey showed that 17.1 percent of Filipinos are concerned with the increase in pay of workers, while another 17.1 percent want to know about the government’s plan in

reducing the prices of basic goods. Other topics Filipinos want to hear on July 22 are the creation of jobs or livelihood opportunities (15.2 percent), Manila’s relations with Beijing (9.2 percent), the assertion of Philippine sovereignty in the South China Sea or West Philippine

What’s inside

DOJ PANEL TO INVESTIGATE SEDITION RAPS VS VP ET AL

NewsA2

BY EDDIE G. ALINEA LAS VEGAS: “He can do whatever he wants. If he decides to fight, we’re ready for it. If he runs, we’ll chase him.” That is how Manny Pacquiao, according to training consultant Freddie Roach, will handle Keith Thurman when the two WBA welterweight belt

Antonio ContrerasA4

‘INTRAMUROS ON CANVAS’ MOVES ON MORALES, BARRERA PREDICT PACQUIAO WIN

SportsC1

äSONAA2

Pacquiao has answers to what Thurman brings to table

A REFRESHING NARRATIVE NAMED ISKO MORENO

PATIS TESORO JOINS SWEDEN’S PROGRESSIVE ‘FASHION REVOLUTION’ D3

Sea (6.1 percent) and the President’s policy in dealing with China (3.1 percent). Meanwhile, 7.8 percent of Filipinos still want to hear about Duterte’s war on illegal drugs, 5.9 percent hope the President would say something about improving the agricultural sector,

Today marks the last viewing day of The Manila Times’ ‘Intramuros on Canvas’ exhibit, featuring the works of 118 artists and their painted visions of the Walled City. Held at The Manila Times College Multipurpose Hall for several weeks, the well-received exhibit was curated by Jeff Consumo, who is best known as late president Cory Aquino’s art mentor. Consumo is also responsible for choosing 60 paintings from The Manila Times show that will move on for display among historical art works at nearby Intramuros Museum. Moreover, the curator’s Top 3 picks will receive an additional token from The Times. Intramuros on Canvas is presented in partnership with the Intramuros Administration. PHOTO BY J. GERARD SEGUIA

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REACH US AT: E-mail: newsdesk@ manilatimes.net Tel. Nos.: 524-5664 to 67 Address: 2/F Sitio Grande, 409 A. Soriano Avenue, Intramuros, Manila 1002

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MONEY TALKS

H o n g Ko n g 1 . 0 7 %

BY MAYVELIN U. CARABALLO

HE Bangko Sentral ng Pilipinas’ (BSP) monetary policy settings remain “appropriate,” based on economic developments in the last three months, Governor Benjamin Diokno said on Friday. In a message read by BSP Deputy Governor Francisco Dakila Jr. at the central bank’s 2nd Quarter Inflation Report briefing, Diokno said that given developments in the second quarter, the Bangko Sentral “deemed it appropriate to reduce the policy rates by 25 basis points on May 9.…” “Subsequently, at its meeting on June 20, the Monetary Board decided that a prudent pause was necessary and appropriate to allow the BSP to observe

tions, as well as income from its investments abroad. The January-to-June tally dropped to a $4.788-billion surplus from $5.193 billion in the first five months of 2019. It, however, erased the $3.257-billion shortfall in the same period last year. Despite the decline, the yearto-date tally remained higher than the central bank’s upwardly revised forecast of a $3.7-billion surplus for this year. “The surplus may be attributed partly to remittance inflows from overseas Filipinos during the first five months of the year and net inflows of foreign direct investments during the first four months of the year,” the Bangko Sentral explained. Personal remittances reached $13.707 billion in January to May,

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Singapore’s formula for mobility

O improve the mobility of Filipinos, we don’t need to look far for best practices. Singapore provides examples of good policies and approaches relevant for the Philippines. To write this column, I took a look at Singapore’s Land Transport Master Plan 2040 (LTMP 2040), prepared by its Land Transport Authority (LTA). Singapore sets targets in terms of measurable outcomes linked to commuters’ welfare. Here are a few from LTMP 2040: • By 2040, commuters should be able to travel within 20 minutes by walking, cycling or public transport to reach neighborhood centers where they can find shops, schools, parks and medical services • By 2040, nine out of 10 commuters should be able to reach their work places within 45 minutes during peak travel periods by walking, cycling or public transport • By 2040, nine out of 10 peak period journeys should be by walking, cycling or public/shared transport Having outcome-based targets enables planners to formulate appropriate projects and apply sufficient budgetary resources. It is also how performance and success are measured—in terms of tangible improvement in terms of commuter welfare. A master plan shouldn’t be just a collection projects; it should illustrate how

B a n g ko k 0 . 6 8 %

Monetary policy settings appropriate, says Diokno and assess the impact of its monetary adjustments during the second quarter,” he added. Diokno announced that headline inflation fell to the midpoint of the government’s 2- to 4-percent target range for the year to 3 percent in the second quarter from 3.8 percent in the first due to improved domestic food supply conditions, which significantly reduced food inflation. According to the inflation report,

the rate of the increase in food prices slowed to 3 percent in April to June after exceeding the upper end of the target of 4 percent for five straight quarters. The BSP chief said consumer sentiment for the second quarter weakened slightly due to expectations of higher prices of goods and household expenses, while the business outlook on the economy markedly improved during the period. During the three-month period, average Dubai crude oil prices rose by 6.1 percent from the previous quarter’s level “as a result of tighter global oil supply conditions,” he added. Diokno also pointed out that, at the same time, the purchasing managers index in May remained above the 50-point expansion threshold at 51.5

index points. “Economic activity also continued to be supported by growths in domestic liquidity and credit,” he said, noting that domestic liquidity and bank lending grew by 6.4 percent and 11.5 percent, respectively, that month. “Moreover, strong macroeconomic fundamentals, the sound banking system and firm economic growth prospects continue to support the domestic financial market,” Diokno added. He also reported that the peso appreciated during the quarter, in pact because of the generally dovish stance of the US Federal Reserve, as well as the credit rating upgrade the country received from S&P Global Ratings. In the report, the Bangko Sentral said

BoP position reverts to shortfall in June THE country’s balance of payments (BoP) position reverted to an eightmonth high deficit in June, trimming the year-to-date tally. The Bangko Sentral ng Pilipinas (BSP) reported on Friday that last month’s $404-million shortfall reversed May’s $928-million surplus, but added that it was smaller than the $1.177-billion deficit a year ago. It was also the largest shortfall since last October, when the payments position stood at a deficit of $458 million. “The substantial outflow in June 2019 stemmed from the principal and interest payments of the national government on its foreign exchange obligations,” the central bank said in a statement. These were partially tempered by the government‘s net foreign currency deposits and the central bank’s foreign exchange opera-

SATURDAY JULY 20, 2019

Business Times

CURRENCY RATE

MOBILITY MATTERS

ROBERT SIY improved commuter welfare will be achieved. Recognizing the close link between mobility, housing and land use, LTMP 2040 pushes for more compact, dense, multi-purpose neighborhoods, where jobs as well as basic services and amenities, including health care and education, are available. Shorter trips translate to more time left for productive activities, leisure and family. Nowhere in LTMP 2040 is there anything about improving the traffic flow or increasing the speed of cars. (Nothing like “Cubao to Makati in 5 minutes.”) It is all about making walking, cycling and public transport the preferred alternatives to using a private motor vehicle. Car use and ownership are controlled through a variety of measures. Singapore has an Electronic Road Pricing (ERP) system to discourage cars from entering the city center. Drivers have to pay the ERP charge, similar to a toll, whenever they enter the ERP area during operational hours. Singapore has a limit on the total number of cars that can operate in its territory—to have a car in Singapore, one has to bid for a

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äAppropriate B4

Credit rules tightened in Apr-June – bank poll

THE WRITE STUFF

This July 18, 2019 photo shows a worker at a pencil factory in the Sihong Economic Development Zone in China’s eastern Jiangsu province. AFP PHOTO

‘Pag-IBIG home loan rates lowest’ THE Home Development Mutual Fund (Pag-IBIG Fund) has retained the lowest-ever interest rates it has been offering under its home loan program in the last few years, it said on Friday. In a statement, Pag-IBIG said this came as its top executives reported double-digit growth in loan payments and members’ savings collections, which have allowed the state-run agency to address the record-high demand for its home loans. The agency maintained its subsidized rate of 3 percent per annum under its Affordable Housing Program, offered to members

earning not more than P15,000 a month for those in the National Capital Region and not more than P12,000 a month for those outside it. The rate for this loan program is the lowest in the market and has been in place since May 2017. Pag-IBIG also maintained its interest rates for loans up to P6 million under its Regular Housing Loan Program, where members may secure loans at a rate of as low as 5.375 percent per annum. The agency assured its members that these rates shall be maintained for at least the rest of the year. It uses the Full Risk-Based

Pricing framework in setting interest rates for its home loans. “We are keenly aware of the need to provide affordable housing, especially to low-wage earners. Because of the Fund’s strong financial standing, we assure our members that we can maintain our low interest rates for the rest of 2019 as we continue to heed President Rodrigo Duterte’s call to address the housing needs of Filipino workers,” said Secretary Eduardo D. del Rosario, chairman of both the Housing and Urban Development Coordinating Council and Pag-IBIG Fund Board of Trustees.

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Which fintech company do you need? SME FIRST T CIRCLE ECHNOLOGY has changed how we do things—from travel, to surgery, even how we brush our teeth. Right now, it’s also transforming how we deal with our finances through what is commonly called “fintech.” No, it’s not another smart device. Fintech, a simplified term for financial technology, is a range of solutions and finance services that automate many processes such as payment, remittances, lending and other business financing practices. This makes business transactions and financial activities faster and more convenient for both business owners and consumers.

Is fintech safe? Since the processes are done through the internet and mobile

CHRISTIAN NACORDA means, worries about data security and hacking cannot be avoided. Actually, many fintech companies are in a better position to address cybersecurity threats for the following reasons: Fintech applications, by design, work within and through data and online technology. Thus, the main focus is on how to improve the technology, including defenses against data breach, to function properly in the first place. Based on a PwC (PricewaterhouseCooper) report, the nature of online transactions forces fin-

tech firms to develop strict cybersecurity measures to counter new threats, raising their awareness levels and responding more quickly to secure the activities of their clients. Fintech applications are available around the clock—allowing clients to access their data and information as needed. With this open banking approach, transparency is improved, thereby reducing response times for customer feedback on customer service issues, including potential security threats. As you may have already noticed, data security affects much of what we do today—when we transact with government, access health care, and even when we do traditional banking. In fact, a 2018

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BANKS tightened credit standards on loans extended to companies and individual borrowers in the second quarter, the Bangko Sentral ng Pilipinas (BSP) has found. Results of the Second Quarter 2019 Senior Bank Loan Officers’ Survey (SLOS) indicated a net tightening of overall credit standards for loans to enterprises and households in April to June using the diffusion index (DI) approach. A positive DI indicates that the proportion of banks that tightened their credit standards is greater than those that did not (net tightening), while a negative DI indicates more banks eased

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PSEi rises on rate cut hopes THE stock market rose further on Friday, joining a global rally, over renewed hopes of a further rate cut from the US central bank. The benchmark Philippine Stock Exchange index (PSEi) grew by 0.15 percent or 12.02 points to close at 8,270.07, while the wider All Shares inched up by 0.03 percent or 1.73 points to finish at 5,010.71. “PSEi joined Asian markets in the green territory [on] hopes for more monetary policy easing from the [US] Federal Reserve (Fed),” online brokerage firm Philstocks Financial Inc. said. On Thursday, two Fed officials bolstered hopes of interest rate reductions in this month’s Fed meeting, saying that trade tensions between the United and China, a slowdown in global manufacturing, and a 2-percent inflation target should be enough to cut rates quickly and aggressively. On Wall Street, the Dow Jones inched up 0.01 percent, the S&P 500 rose 0.36 percent, and the Nasdaq was up 0.27 percent. Regional markets followed suit as Tokyo increased 2 percent, Shanghai added 0.79 percent, Hong Kong rose 1.04 percent, Seoul grew 1.35 percent, Jakarta climbed 0.65 percent, Singapore inched up 0.36 percent, and Bangkok jumped 0.77 percent. In Manila, sectoral results were

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