THE MANILA TIMES | JULY 27, 2019

Govt debt eases to P7.86T in June

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SATURDAY, JULY 27, 2019

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Duterte vetoes SoT bill Broadened scope and definition of banned labor-only contracting cited

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RESIDENT Rodrigo Duterte has vetoed the Security of Tenure (SoT) bill, Malacañang announced on Friday.

The rejection came even if the President had certified the bill, one of his campaign promises, as urgent months ago.

In his veto message dated July 26,

Duterte said while he still “stands by his firm commitment to protect the workers’ right to security of tenure,” he had to veto the bill because it “unduly broadens the scope and

definition of prohibited labor-only contracting, effectively proscribing forms of contractualization that are not particularly unfavorable to the employees involved.”

“Indeed, while labor-only contracting must be prohibited, legitimate job contracting should be allowed, provided that the contractor is well capitalized, has sufficient

investments and affords its employees all the benefits provided for under the labor laws,” the message read.

“Businesses should be allowed to determine whether they should outsource certain activies or not, especially when job-contracting will result in economy and efficiency in their operations, with no detriment to

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Vaulting over an endless argument by dropping a name First word

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OBSERVER YEN MAKABENTA

RESID E N T Duterte had an opportunity in his fourth State of the Nation Address (SONA) to vault over the endless disputation in the South China Sea dispute, and leave in the dust his principal critics and opposition on the issue.

äObserverA4

‘Pastor, these are our representatives’

RESPECT President Duterte

places a medal on the coffin of one of the slain Negros Oriental police officers during his visit to their wake.

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OW IN MY LINE that OF SIGHT Taguig Rep. Alan Peter Cayetano has been elected Speaker by his peers, he should resign as chairman of the government’s Philippine SEA Games Organizing Committee (Phisgoc) and the Phisgoc Foundation, a private entity.

AP PHOTO

RAMON T. TULFO

äIn my line of sightA5

LETTERS TULFO’S ALLEGATION OF CORRUPTION HOGWASH

IN Ramon Tulfo’s article on Thursday titled, “Self-purgation should start with the Cabinet,” he claimed that a certain Felicito Mejorado (Mejorado) came to him to complain about the delay in the release of P272.07 million allegedly owed to Mejorado as cash reward for informing the Bureau of Customs on a smuggling operation in Mariveles, Bataan in 1997.

Mejorado allegedly told Tulfo that the claim of reward has been pending with my office for one year.

äFull Letter on A6

Four in 10 Pinoys want sanctions on China crew

P4.5B in DoH’s 2018 infra projects ‘deficient’ THE Commission on Audit (CoA) has noted “deficiencies” in connection with various Health Facilities Enhancement Program (HFEP) infrastructure projects.

The projects had contract costs totaling P4.5 billion, based on CoA’s audit report on the Department of Health (DoH) for 2018.

Of this amount, P1,479,612,220.45 pertained to projects that were “[n]ot completed within specified contract time.”

The audit commission said in part that “without closer monitoring, time lags were not promptly addressed, which resulted in

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What’s inside

DOJ ASKED TO JUNK SEDITION RAPS VS ROBREDO NewsA2 REVELRY

PARTY-LIST CONGRESSMAN HELD FOR BOMB JOKE NewsA8

Street dancers perform during the 14th Waterlily Festival in Las Piñas City on Friday. PHOTO BY DJ DIOSINA

NEARLY 4 in 10 Filipinos want the Philippines to pursue sanctions against the crew of a Chinese vessel that rammed a Filipino boat off the coast of Recto (Reed) Bank in the South China Sea (SCS or West Philippine Sea), according to the latest Pulse Asia survey released on Friday.

The poll, conducted from June 24 to 30 among 1,200 adults nationwide, showed that 36 percent of respondents said they would like the government to ask China to sanction its citizens who abandoned the Filipino crew of F/B Gem-Ver 1, who were later rescued by a Vietnamese vessel.

This is the most preferred option in Metro Manila at 46 percent; the rest of Luzon, 45 percent; and the poorest classes D and E, 34 and 36 percent, respectively, Pulse Asia said.

The same survey found that 26 percent believed that Beijing, not just the Chinese crew, should pay for damages incurred by F/B Gem-Ver 1 and

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‘MAYWEATHER ENVIOUS OF PACQUIAO’

SportsD1

JAVI BENITEZ AND HIS ACTIONPACKED CHOICES EntertainmentE1

Most Filipinos ‘trust’ US, Japan but ‘distrust’ China, Russia 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

MOST Filipinos trust the United States and Japan, while a bigger number have shown distrust of Washington’s rivals, China and Russia, according to the latest Pulse Asia survey released on Friday.

The survey, conducted from June 24 to 30 among 1,200 Filipino adults nationwide, showed that 89 percent of

Filipinos trust the US, while 79 percent trust Japan.

A majority of Filipinos also expressed trust for Australia (76 percent), Canada (71 percent), Malaysia (63 percent), the United Kingdom (56 percent), Indonesia (56 percent) and

ä’Trust’A8

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P51.05 TO $1

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SME FIRST CIRCLE

H o n g Ko n g 0 . 6 9 %

Govt debt eases to P7.86T in June

BY MAYVELIN U. CARABALLO

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HE national government’s outstanding debt fell to P7.868 trillion in June due to net repayments of both domestic and foreign loans and foreignexchange fluctuations, the Bureau of the Treasury (BTr) reported on Friday.

In a statement, the Treasury bureau said the amount was a 0.6-percent or P46.894-billion decrease from May’s P7.915 trillion.

“Of the total stock, 32.7 percent were sourced from external markets, while 67.3 percent were borrowed domestically,” it added.

Domestic borrowings totaling P5.294 trillion — up 0.7 percent from

the May figure — accounted for the bulk of outstanding debt, while external debt dropped by 3.2 percent to P5.273 trillion.

Outstanding debt the year before stood at P7.016 trillion, with domestic and foreign obligations at P4.579 trillion and P2.437 trillion, respectively.

The higher domestic debt level in June “was caused by [the] net issuance

of government securities amounting to P38.94 billion,” the Treasury explained.

This was said to have been partially offset by the P490-million revaluation of onshore dollar bonds due to the peso’s appreciation in the month.

A foreign-exchange rate of P51.233 against the dollar was used for the latest data, compared with May’s P52.222:$1.

The exchange rate used a year earlier was P53.404:$1.

The decrease in foreign debt for the month was attributed to net repayment of foreign loans worth P39.65 billion and the stronger peso, which reduced the value of foreign debt by P50.36 billion.

“These were partially offset by the

The BRI is a peaceful development platform, “not a geopolitical tool,” he added. “China has no intention to seek any sphere of influence or gain any geopolitical advantage through the BIR.” “The BRI is a public good, not a private property. China initiated the very idea, but the BRI platform is owned and equally participated by all participating countries.”

According to Tan, the BRI is a bridge for understanding, not a source for confrontation.

“Our strategic goal is to connect diverse cultures and different civilizations for peaceful coexistence,” he said.

The countries along the Belt and Road are encouraged to step up friendly cooperation in the Silk and Road tradition by promoting extensive, cultural, academic,

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More cycling, better mobility

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O describe the potential of personal computers, Steve Jobs called them “bicycles for the mind.” For Jobs, computers enable humans to amplify their mental abilities--the same way bicycles allow humans to travel much faster and further with their own energy.

Bicycles may not be so visible on our streets, but they move many more people than one would expect. Just check out any bicycle rack in any commercial complex or office building in your city on a week day—they will be full of parked bicycles.

Bicycles are already the vehicle of choice for many who have fixed reporting hours, who have to be at work by a definite time.

A friend who travels from Cainta to Bonifacio Global City everyday (a 13.8-kilometer trip) used to endure a journey of 85 to 130 minutes using public transport (or about 75 to 90 minutes driving a car). When he shifted to using a bicycle, his one-way travel time was cut to 45 to 50 minutes, with greater predictability.

Using a bicycle also means lower travel cost, zero emissions, and health benefits from the daily exercise. Research studies have shown that people who bike regularly are happier, are more creative and have better mental health.

In a “livable” city, cycling should be one of the top mobility options—allowing commuters

ROBERT SIY to bike the first or last miles or to complete a journey entirely by bicycle. If there were a network of safe bake paths connecting different parts of a city, many more Filipino commuters, even car owners, would switch to using bicycles for their daily travel — a healthier, more efficient and climate-friendly mode of transport Reserving more road space for bicycles makes more efficient use of an important public asset. A 3.5-meter-wide lane of road devoted to cars moves, at most, 2,000 persons per hour; devoting the same road space to bicycles can move up to 14,000 persons per hour. The promotion of cycling also supports disaster preparedness. In an emergency, bicycles can provide personal mobility even when public transport services are unavailable or fuel supplies are cut.

Many of the world’s great cities have invested in bicycle-friendly infrastructure. New York City, with over 1,900 kilometers of bike paths, has the largest bicycle lane network in North America.

Bogota, Columbia boasts over 360 kilometers of cycle paths. Taipei, already with over 500 kms of

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B a n g ko k 0 . 7 5 %

BSP issues rules on managing risks

WALK ON BY

In this Dec. 17, 2018 file photo, a woman walks past Google offices in New York. Alphabet Inc., the parent company of Google, reported on Thursday (Friday in Manila) that its earnings reached $38.9 billion in the second quarter, beating analysts’ expectations and sending its shares soaring. AP PHOTO See story on B4

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UCPB CHIEF LEAVES POST MOBILITY MATTERS

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effect of third-currency appreciation amounting to P4.66 billion,” the BTr said.

Government-guaranteed debt, meanwhile, climbed by P439 million or 0.1 percent to P486.597 billion in June, but down 0.3 percent from the yearago figure.

The month-on-month increase, the Treasury said, was “due to the net issuance of domestic guarantees amounting to P5.92 billion and the effect of third-currency appreciation amounting to P0.24 billion.”

“However, these were tempered by the impact of peso appreciation amounting to P4.52 billion and net repayments on external guarantees amounting to P1.21 billion,” it added.

Belt and Road Initiative not a debt trap – official CHINA has described as “groundless” the fears raised by some critics that countries, including the Philippines, that availed of loans under its Belt and Road Initiative (BRI) would fall into a debt trap.

At the Belt and Road ChinaPhilippines Forum in Pasay City on Friday, Tan Qingsheng, deputy chief of mission at the Chinese embassy in Manila, said this, adding that Chinese President Xi Jinping proposed the BRI in 2013 to promote open and inclusive economic cooperation.

More than 160 countries and international organizations have signed agreements with Beijing on this cooperation.

“The so-called China debt trap is completely groundless. The BRI is a ‘pie’ for everyone to share, not a ‘pitfall’ that hinders development,” Tan said.

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SATURDAY JULY 27, 2019

Business Times

CURRENCY RATE

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UNITED Coconut Planters Bank (UCPB) President and Chief Executive Officer Higinio Macadaeg Jr. has resigned from his post, the state-controlled lender said on Friday.

It is “with deep regret that I am tendering my resignation as President of United Coconut Planters Bank effective upon acceptance hereof,” Macadaeg wrote in a handwritten letter, dated July 25, to President Rodrigo Duterte that was obtained by reporters.

UCPB confirmed Macadaeg’s resignation, saying it was” due to personal reasons.”

“His resignation will take effect upon acceptance by President Duterte,” it said.

The lender assured its clients and other stakeholders that there are procedures in place to

ensure an orderly transition, and that it will continue to provide and deliver its services to the public.

Macadaeg became UCPB chief in October 2016.

According to his profile on the bank’s website, Macadaeg is concurrently the chairman of UCPB Savings Bank; UCPB Leasing and Finance Corp.; and UCPB Securities Inc., Greenhomes Development Corp. and Balmoral Resources Corp.

He is also a director of UCPB Properties Inc., United Foreign Exchange Corp., United Coconut Planters Life Assurance Corp., UCPB General Insurance Company Inc., Coconut Industry Investment Fund Foundation, and Coconut Industry Investment Fund Finance and

Development Corp.

He joined the bank in 2003 as chief credit officer and credit and supervision group head. He was later promoted as executive vice president, and corporate and consumer banking group head in 2011.

He has 37 years of experience in banking. He held senior executive positions in Equitable PCI Bank, Metropolitan Bank and Trust Co., Solid Bank Corp., Standard Chartered Bank and Citytrust Banking Corp..

He took an advanced management training program at the Wharton School, University of Pennsylvania, and earned his Bachelor of Science in Management from the Ateneo de Manila University.

MAYVELIN U. CARABALLO

PSEi pushed out of bull territory anew PHILIPPINE shares fell out of the bull territory for the second time this week, with the local market mirroring a decline on Wall Street.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 1 percent or 82.38 points to close at 8,189.80. The wider All Shares, meanwhile, declined by 0.77 percent or 38.24 points to finish at 4,955.60.

Regina Capital Development Corp. head of sales Luis Limlingan said market players reacted negatively to the not-so-dovish stand of the US Federal Re-

serve in its monetary policy announcement on account of strong economic data.

The US central bank’s Federal Open Market Committee will convene on July 30 and 31, where a quarter-point rate cut is expected.

Wall Street’s three main indices were all in the red, with the Dow Jones dropping 0.47 percent, the S&P500 decreasing 0.53 percent, and the Nasdaq declining by 1 percent.

In Asia, only Shanghai finished firmer, up 0.24 percent.

Tokyo dropped 0.45 percent,

Hong Kong declined 0.58 percent, Seoul decreased 0.40 percent, Jakarta fell 1.19 percent, Singapore was down 0.86 percent and Bangkok shed 0.63 percent.

In Manila, sectoral results were mostly lower except for the industrial index, up 0.53 percent.

More than 1.2 billion issues were traded, valued at P5.6 billion.

Winners led losers, 91 to 90, while 58 issues remained unchanged.

ANGELICA BALLESTEROS

BANKS and quasi-banks (QBs) must conduct appropriate due diligence before making an investment and on an ongoing basis, according to monetary authorities’ newly approved risk-management guidelines.

In a statement on Friday, the Bangko Sentral ng Pilipinas (BSP) said its policymaking Monetary Board approved these guidelines on July 11.

“The conduct of due diligence reviews for new plain-vanilla instruments acquired for trading or short-term profit taking (i.e., to be held in the trading book) may be made at the option of the bank/ QB, as long as the resulting positions from the investments are still within the set limits,” it explained.

The central bank said the guidelines aimed to set out the regulatory expectations in managing risks arising from investment activities, considering the exposures of banks/QBs to a wide range of instruments. These include bonds issued by emerging economies, complex structured products and other tradable assets.

These also take into account the lessons learned during the 2008 global financial crisis and the relevant guidance set out in the Basel Core Principles for Effective Banking Supervision.

“Specifically, these require a bank/QB with significant holdings of securities issued outside the country to assess whether its capital is sufficient to cover the risks arising from the possibility that the relevant foreign government may impose currency conversion restrictions,” the BSP said.

It also said the guidelines were meant to be applied proportionately, depending on the profile of the bank/QB and its investments, aware of the fact that BSP-supervised financial institutions have different structures, complexities and ranges of investment activities.

MAYVELIN U. CARABALLO

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