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JAPANESE FIRMS AWAIT TAX PERKS’ FATE By Elijah Felice E. Rosales

ORE Japanese firms based in the Philippines will hold off expansion plans this year over the looming overhaul of tax incentives and issues on labor policies, according to a report by the Japan External Trade Organization (Jetro). The number of Japanese firms that will expand business this year declined to 52 percent from 63 percent last year, the Jetro report read. Those that will hold on to their capital and refrain from expanding rose to 46 percent from 35 percent. The survey cited issues on tax in-

TRAINEES do their tasks in a Japanese car-manufacturing company in Laguna in this BusinessMirror file photo. A report by the Japan External Trade Organization (Jetro) said that more Japanese firms based in the Philippines will hold off expansion plans this year over the looming overhaul of tax incentives and issues on labor policies. NONIE REYES

DEPT. OF SCIENCE AND TECHNOLOGY

PHILIPPINE STATISTICS AUTHORITY

2018 BANTOG DATA MEDIA AWARDS CHAMPION

@alyasjah

centives and labor reforms as crucial to the decision of Japanese enterprises whether to expand operations. “Rising wage and ongoing labor issues are likely to reduce the advantage of [the country] as an investment destination. Many of [Philippine] respondents highly appreciate current tax incentives, while they are [concerned] about complicated taxation procedures,” the report read. Japanese firms operating in the country apparently want the current menu of incentives, particularly the 5-percent tax on gross income earned paid in lieu of all local and national taxes, to be retained, Jetro Manila Executive Director Takashi Ishihara

See “Japanese firms,” A4

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A broader look at today’s business

Wednesday, January 23, 2019 Vol. 14 No. 105

High prices to crimp PHL GDP growth in ’19, ’20 H By Cai U. Ordinario

@caiordinario

IGH commodity prices will continue to be a challenge for the Philippine economy and will prevent the government from hitting its GDP growth targets this year and in 2020, according to the United Nations Conference on Trade and Development (Unctad).

In its World Economic Situation and Prospects 2019, Unctad said full-year growth will average 6.5 percent this year and slow to 6.4

percent in 2020. These are below the government target of 7 to 8 percent annually until 2022. In 2018, Unctad said growth

may average 6.3 percent. The Philippine Statistics Authority (PSA) will be releasing full-year and Continued on A2

...The economy faces the risk of persistently high inflationary pressures, prompting a more aggressive stance on monetarypolicy tightening, thus further constraining private consumption.” —Unctad

Israeli firms keen on green tech investments–DOF By Rea Cu

told reporters. “There are many respondents [who] appreciate the current set of incentives. They appreciate the incentives, [and] many respondents answered [they have] concerns about taxation [in the future],” Ishihara said. Uncertainty over the fate of tax perks granted to economic zone firms are put at risk under the proposed Tax Reform for Attracting Better and Highquality Opportunities, or the Trabaho bill as it has been christened by the House of Representatives. Pending deliberations in the Senate, the Trabaho bill will gradually reduce corporate income tax to 20 percent

@ReaCuBM

HE Department of Finance (DOF) has reported that Israel is looking to establish a financial protocol measure with the Philippines, as some companies from Israel have expressed interest in investing in the New Clark City. Finance Secretary Carlos G. Dominguez III has welcomed Israel’s proposal to establish a financial protocol with the Philippines to promote bilateral trade and investments, as discussed in a recent meeting with Israeli Ambassador Rafael Harpaz, the DOF said in a statement on Tuesday. Harpaz cited the need to establish a financial protocol with the Philippines, especially now that at least 10 Israeli companies have expressed interest in investing in New Clark City in Pampanga, which is being showcased by the Duterte administration as the country’s first smart and green metropolis. “It is something we can look into,” Harpaz said. He also pointed out that Israel has already concluded and signed financial protocols with some countries in the region. The Philippine government has invited Israel to explore partnerships in line with the technology and constr uction sectors of the country to enhance the government’s capability in implementing big-ticket infrastructure projects under the “Build, Build, Build” (BBB) program, as well as applying digital innovations to expand the financial access of unbanked Filipinos. See “Israeli firms,” A2

CHINA GROWTH SLOWS, I.M.F. CUTS FORECAST FOR WORLD ECONOMY

AVOS, Switzerland— The world economy absorbed more bad news on Monday: The International Monetary Fund cut its growth forecast for 2019. And China, the world’s second-biggest economy, said it had slowed to its weakest pace since 1990. The IMF cut its estimate for global growth this year to 3.5 percent, from the 3.7 percent it had predicted in October and down from 2018’s 3.7 percent. The fund cited heightened trade tensions and rising interest rates. “After two years of solid expansion, the world economy is growing more slowly than expected and risks are rising,” said IMF Managing Director Christine Lagarde, as she presented the forecasts at the World Economic Forum in

By Butch Fernandez @butchfBM

DOPTING Senate President Pro Tempore Ralph Recto’s amendment, senators agreed to set aside P68 billion in the proposed 2019 national budget to bankroll unfunded laws set for enactment, including Universal Health Care, Bangsamoro, rice tariffication and the Coconut Modernization Law. In moving to amend the budget bill, the Senate version provides funding for these new laws that were not yet passed when the Executive crafted the 2019 bud-

PESO EXCHANGE RATES n US 52.7250

get proposal for Congress’s consideration. In a statement, Recto noted the lawmakers “waited for the Executive to propose funding for laws they themselves advocated.” He added: “In the absence of such, the Senate, in bipartisan fashion, decided to appropriate funds for landmark measures which were in danger of becoming unfunded mandates in their crucial first year of implementation.” Recto confirmed that the Senate version had alloted P18 billion for Universal Health Care; P10 billion for the Coconut Modernization law; P10 billion for Rice Tarrification Law and P30-billion for the

Bangsamoro Organic Law. “I am proud to sponsor the budget augmentations which were carried in the Senate version of the 2019 General Appropriations Bill,” the Senate President Pro Tempore added. He surmised that “the other branch may have forgotten to fund these laws,” adding, “the Senate did not. We uphold these as sacred promises to our people which should be redeemed with funding.” At the same time, Recto acknowledged the role of Senate Finance committee chief Loren Legarda, for “supporting and shepherding the passage of these sponsored amendments of mine.”

Davos, Switzerland. The IMF is not alone in its pessimism. The World Bank, the Organisation for Economic Co-operation and Development and other forecasters have also downgraded their world growth estimates. Among the key concerns is the Chinese economy. The country is slowing just as its leadership tries to turn it into a more modern economy by reducing its reliance on manufacturing and exports, and increasing consumer spending. The country reported on Monday growth of 6.6 percent in 2018, the weakest since 1990. Demand for Chinese exports weakened last year and the IMF expects, China’s growth to decelerate again this year—to 6.2 percent. See “World economy,” A2

‘Rice tariff law to curb govt’s ability to blunt hikes from hoarding’

T Senate allots P68 billion for unfunded laws

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By Jasper Emmanuel Y. Arcalas

SPANNING 9,450 hectares, the New Clark City is being touted as the first smart, green and resilient metropolis in the country. It is one of the big-ticket projects of the Bases Conversion and Development Authority. Israeli firms interested in offering green technology and digital solutions are among the latest parties interested in New Clark City. ARTIST’S PERSPECTIVE COURTESY OF BCDA

2017 EJAP JOURNALISM AWARDS

@jearcalas

HE government will not be able to intervene in the market when retail prices of rice shoot up due to hoarding and manipulation once the rice tariffication bill is enacted into law, House Deputy Speaker and former Agriculture Secretary Arthur Yap warned on Tuesday. Yap, in a statement sent to the BusinessMirror via SMS, said the National Food Authority (NFA) will “lose its power” to sell rice in the market as it has been reduced to a buffer-stocking agency under the bicameral committee-approved Senate Bill (SB) 1998. Due to this, Yap added that the NFA could not stabilize rice supply and retail prices in the market at times of shortage and disruptions. The bill, which has been ratified by both chambers of Congress, is now awaiting the signature of President Duterte. “People say that the situation of traders preying on the market through supply and price manipulation will now be remote since total importation will ensure that market forces will be the balancing force employed to keep the market in check. Well, in an ideal and per-

“In an ideal and perfect world, despite the Philippines being a logistics-challenged archipelago, that may be true. But how we operate in real life is another matter to consider. Let us just be forewarned that without the NFA’s market intervention power, then that is the possibility.”—Yap

fect world, despite the Philippines being a logistics-challenged archipelago, that may be true,” he said. “But how we operate in real life is another matter to consider. Let us just be forewarned that without the NFA’s market intervention power, then that is the possibility,” he added. Nonetheless, Yap pointed out that the rice tariffication bill, which converts the country’s quantitative restriction on the staple into tariffs, is a “step in the right direction.” Furthermore, Yap explained that there’s also a need to maintain the NFA’s regulatory power over imports, as the payment of duties by importers is sufficient to monitor the volume of rice entering the country. See “Rice tariff,” A2

n JAPAN 0.4807 n UK 67.9994 n HK 6.7206 n CHINA 7.7581 n SINGAPORE 38.8026 n AUSTRALIA 37.7458 n EU 59.9431 n SAUDI ARABIA 14.0585

Source: BSP (22 January 2019 )

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A2 Wednesday, January 23, 2019

Creation of Bangsamoro body to spur devt of South–Neda

By Cai U. Ordinario

@caiordinario

HE National Economic and Development Authority (Neda) believes the creation of the Bangsamoro Autonomous Region (BAR) will be able to boost the economy of the Autonomous Region in Muslim Mindanao (ARMM) and other provinces to be included in the new region. In a statement on Tuesday, Socioeconomic Planning Secretary Ernesto M. Pernia said the ratification of the Bangsamoro Organic Law (BOL) through a plebiscite and the creation of BAR would increase investments in the region. This bodes well for the new region, which includes the ARMM, the poorest region in the Philippines. The ARMM’s poverty incidence is at 47 to 60.4 percent of the population or around 1.74 million to 2.24 million poor Filipinos as of 2015. “Given that the BOL provides a lot of opportunities to increase the budget for BAR, we expect to see more programs and infrastructure projects in the region,” Pernia said. The latest Philippine Statistics Authority data from the 2016 Annual Survey of Philippine Business and Industry showed only 103 establishments with total employment of 20 or more are based in ARMM. As a result, ARMM had the least labor productivity nationwide with only P175,900 in 2016. The average total labor productivity nationwide

₧70B The amount that the national government will be investing for the fiscal year of 2019 as assistance to the Bangsamoro region

was at P964,352 in that year. Pernia said as the new Bangsamoro government is vested with powers over political and fiscal matters, the public financial management and delivery of services in the region would improve. He said the national government will be investing around P70 billion for the fiscal year of 2019 as assistance to the region. This does not include compensation for the members of the Bangsamoro Transition Authority, benefits and entitlements of affected ARMM regional government employees, disposition of personnel and assets, initial

Senators endorse power rate reduction scheme

WELVE senators have so far endorsed a Senate committee report to enact remedial legislation “reducing electricity rates by allocating the net national government share from the Malampaya natural gas project for payment of the stranded conract costs and stranded debts of the National Power Corp. [NPC].” To be known as the “Murang Kuryente Act,” Senate Bill (SB) 1950 was submitted for plenary consideration by the Committees on Energy and Finance, with Senate President Pro Tempore Ralph G. Recto and Sen. Sherwin T. Gatchalian as coauthors. The Recto-Gatchalian bill asserts the policy of the State to “protect public interest by ensuring the provision of reliable, secure and affordable supply of electric power to consumers.” It added that “ Toward this end, the State shall implement policies and programs to ensure

transparent and reasonable prices of electricity to consumers by minimizing the universal charges for stranded contract costs and stranded debts.” Section 4 of SB 1950 provides that “all proceeds of the Net National Government Share from the Malampaya Fund shall be allocated solely for the payment of Stranded Contract Costs and Stranded Debts transferred to and assumed by the Power Sector Assets and Liabilities Management Corp., pursuant to Section 49 of Republc Act 9136, otherwise known as the Electric Power Industry Reform Act (Epira), including all anticipated shortfalls in the course of payment of such liabilities after applying the PSALM’s collections from privatization of the NPC’s assets, independent power producers’ contracts and proceeds from operations on existing assets.” See “Power rate,” A4

fourth-quarter 2018 GDP growth data on Thursday. “In the Philippines, GDP growth in 2018 was affected by a slowdown in household spending due to a rapid increase in inflation,” Unctad said. “Growth will be mainly driven by strong government spending and infrastructure investment. However, the economy faces the risk of persistently high inf l at iona r y pressures, prompting a more aggressive stance on monetary-policy tightening, thus further constraining private consumption.”

Unctad projects that inflation in the Philippines will average 4 percent in 2019 and 3.2 percent in 2020. In 2018, Unctad said the country’s inflation, which averaged 5.2 percent, was one of the primary reasons for the slowdown in GDP growth. The high inf lation affected household consumption last year. In the third quarter, household final consumption expenditure slowed to 5.2 percent, from 5.9 percent in the second quarter and 5.4 percent in the third quarter of 2017. “The Philippines experienced a rapid increase in consumer prices,

Prelude to SEAG: Clark’s spots wow Asean diplomats By Ashley Manabat Correspondent

C COMELEC Commissioners Al Parreño (from left), Sheriff Abas and Luie Tito Guia preside at the convening of the National Plebiscite Board of Canvass in Manila on Tuesday morning to process the results of the January 21 vote on the Bangsamoro Organic Law. The board’s first session was brief, and adjourned after it was learned the ballot boxes had not been flown in on time. The board will reconvene on Wednesday. NONIE REYES

funding to carry out requirements of the transition, and additional development programs and projects subsidized by the national government. Pernia also underscored the planned major infrastructure projects in the region amounting to P22.15 billion for FY 2019 alone and P40.85 billion for 2017-2022, based on the Public Investment Program, as of September 2018. “Connectivity and social infrastructure should be the primary concern of the Bangsamoro Transition Authority and the new leaders of the BAR to address pressing issues, most importantly access to basic services,” Pernia said. As part of the creation of the new region, the Bangsamoro Economic and Development Council will be established to serve as the planning, monitoring, and coordinating agency for all development plans, programs and projects of the Bangsamoro government. A repre-

sentative of the Bangsamoro government will also sit as a member of the Neda Board. Pernia said that with the new Bangsamoro government vested with powers over political and fiscal matters, the public financial management and delivery of services in the region would improve. “Neda also acknowledges that the plebiscite is a historic moment for Mindanao. The agency looks forward to the success of this initiative to further this administration’s thrust of inclusive development established on a strong foundation of peace and security,” Pernia added. The first part of the plebiscite in the ARMM, Cotabato City and Isabela City took place on January 21. It will be followed by another plebiscite on February 6 in Lanao del Norte, except Iligan City, and North Cotabato, as well as local government units that petitioned to be included.

World economy. . . The IMF left its prediction for US growth this year unchanged at 2.5 percent—though a continuation of the partial 31-day shutdown of the federal government poses a risk. The IMF trimmed the outlook for the 19 countries that use the euro as their currency to 1.6 percent from 1.8 percent. Germany got a big downgrade from the IMF, the result of weaker demand for German exports and problems in the country’s auto industry. Britain’s messy divorce from the European Union and Italy’s on goi n g f i n a nc i a l st r u g g le s also pose threats to growth in Europe. Emerging-market countries are forecast to slow to 4.5 percent, from 4.6 percent in 2018. That is partly a result of China’s deceleration, which pinches developing countries that supply it with raw materials such as copper and iron ore. “China’s growth slowdown could be faster than expected especially if trade tensions continue, and this can trigger abrupt sell-offs

Continued from A1

in financial and commodity markets”—something that happened when Chinese growth sputtered in 2015, said IMF chief economist Gita Gopinath. Under President Donald J. Trump, the United States has imposed import taxes on steel, aluminum and hundreds of Chinese products, drawing retaliation from China and other US trading partners. “Higher trade uncertainty will further dampen investment and disrupt global supply chains,” Gopinath said. Rising interest rates in the US and elsewhere are also pinching emerging-market governments and companies that borrowed heavily when rates were ultra-low in the aftermath of the 2007-2009 Great Recession. As the debts roll over, those borrowers have to refinance at higher rates. A rising dollar is also making things harder for emerging-market borrowers who took out loans denominated in the US currency. AP

High prices to crimp PHL GDP growth in ’19, ’20 Continued from A1

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fuelled by agriculture supply bottlenecks, higher excise taxes on several goods and an increase in the cost of oil imports,” Unctad said. Unctad said the members of the Association of Southeast Asian Nations (Asean), including the Philippines, will continue to experience resilient domestic demand. The Asean is expected to post a growth of 6.3 percent in 2018 and 6.5 percent in 2019 driven by strong government spending and infrastructure investments amid rising inflation. Meanwhile, Unctad said the global economy will continue to

grow at a steady pace of around 3 percent in 2019 and 2020. Unctad also said amid the rise in global trade tensions, global trade growth moderated over the course of 2018, from growth of 5.3 percent in 2017, to 3.8 percent. UN Secretary-General António Guterres cautioned, “While global economic indicators remain largely favorable, they do not tell the whole story.” He said the World Economic Situation and Prospects 2019 “raises concerns over the sustainability of global economic growth in the face of rising financial, social andenvironmental challenges.”

LARK FREEPORT—Asean diplomats arriving in official embassy staff cars, as well as two busloads of cadet foreign service officers from the Department of Foreign Affairs (DFA), started visiting key areas in this free port, particularly Aqua Planet, over the weekend as a prelude to the upcoming Southeast Asian Games (SEA Games) on November 30. Dr. Irineo Alvaro Jr., president/ CEO of BBI, personally welcomed the delegates as the visit coincided with the official relaunching of Aqua Planet, which was closed for months for maintenance and safety checks. “Excellent!” exclaimed Brunei Darussalam Ambassador Hajah Johariah binti Haji Wahab. “We will definitely come back here. The kids are so excited,” she added. “It’s good that they brought us here so that we know what we can expect in Clark,” the envoy remarked. Vietnam Ambassador Ly Quoc Tuan was seen observing the facilities of the water park while Alvaro led a rolling tour of the park. The charge d’ affairs of Myanmar with his son in tow also expressed elation as they marveled at the facilities of the waterthemed park. The ambassadors of Cambodia, Thailand and Indonesia were also with the group. Among the other visitors were Korean Andy Jongsun Jeon, who was also amazed at the sprawling water park. “We have half the size of this in Korea located about 200 kilometers from

Israel firms. . . Continued from A1

Green tech, digital solutions

HARPAZ welcomed Dominguez’s proposals and offered Israel’s assistance in improving the Philippines’s capacity to utilize green technologies in implementing infrastructure projects, as well as digital solutions to improve the Bangko Sentral ng Pilipinas’s (BSP’s) cyber security system. “There are ample opportunities for bilateral cooperation between the Philippines and Israel in the technology and construction sectors. We have invited Israeli experts in these fields to visit the Philippines to explore possible cooperation arrangements,” Dominguez said. Recognizing Israel’s status as one of the world’s most active hubs of technology innovation and green or eco-friendly construction, Dominguez said the Philippines can learn much from Israel’s expertise

Rice tariff. . . Continued from A1

“We must allow free private-sector imports of rice, period,” he said. “The tariffs [that] importers will pay will allow the government to monitor the taxes paid and who is doing the importation—so we need not be worried about not knowing who and how much is being imported,” he added. However, Yap said certain provisions of the rice tariffication bill, particularly the utilization of the proposed Rice Competitiveness Enhancement Fund, could have been polished for better development of the sector. “Also, the rice tariffication fund could have been improved to include irrigation funds to develop more rice lands, but now that that has not been included, we just need to

Seoul, which has both outdoor and indoor areas,” he said. Foreign Affairs Assistant Secretary Elmer G. Cato said the visit is part of the cultural diplomacy efforts of the Office of Strategic Communications and Research. “This is our first cultural tour for 2019,” Cato said. “In the next few months or weeks, we will be able to bring in more diplomats to see the development inside Clark because we have to take into account that Clark will be hosting the SEA Games,” he explained. “So, there is interest, especially from our Southeast Asian neighbors to come and see what’s here,” he added. “The Clark Development Corporation was kind enough to host breakfast and a cultural program at the Nayong Pilipino for our guests,” he said as he took the opportunity to thank top executives of the government corporation led by its president/CEO Noel F. Manankil. “This was hatched in New York when we met there,” Alvaro said. “It was his [Cato’s] idea to introduce Central Luzon, particularly Clark, to people in the Asean,” he said. “Normally they know Manila, but they are not aware that there is this Clark that is a vacation haven,” he added. Cato said the visit is also “part two” of the DFA-Aqua Planet partnership, which initially had members of the Scout Rangers regiment that liberated Marawi visit the water park with their families last year. Two Genesis Transport buses, courtesy of Patricia MoisesAfuang, brought the delegates to this free port.

in these fields to ensure that the BBB program is implemented efficiently by optimizing the use of labor and other resources. Dominguez said he has also asked BSP Deputy Governor Chuchi G. Fonacier to meet with Israeli officials to discuss ways of tapping Israel’s technological innovations in cyber security, as the Philippines increasingly uses electronic payments systems to facilitate trade and expand the financial access of unbanked Filipinos. Total bilateral trade between the Philippines and Israel amounted to $170.57 million in 2018. In September 2018, the two countr ies sig ned these three ag reements dur ing President Duterte’s state visit to Israel: the memorandum of agreement on the temporary employment of home-based Filipino caregivers; memorandum of understanding on scientific cooperation; and memorandum of intent on the collaboration on promotion of bilateral direct investments. be aware that cropping intensity of our rice lands should be included as a priority in our drive for greater food security for our people,” he said. Yap’s statements came after business groups and economists urged President Duterte to immediately sign the rice tariffication bill. Farmer groups have been pushing for its veto as they want to retain the market and regulatory powers of the NFA. Citing Sen. Cynthia A. Villar, Agriculture Secretary Emmanuel F. Piñol earlier pronounced that the NFA would continue to sell affordable rice in the market even after the rice tariffication bill is signed into law. Under SB 1998, there is no clear language or provision that stipulates that the NFA will continue its present market intervention role of selling affordable rice.

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Wednesday, January 23, 2019 A3

Palace: PHL to appeal US ban on Filipino workers

By Bernadette D. Nicolas

@BNicolasBM

HE Philippine is likely to seek reconsideration of the oneyear ban imposed by the US Department of Homeland Security (DHS) on Filipino workers to obtain H2-A and H2-B work visas due to “severe” overstaying and humantrafficking concerns.

H2-A visas are given to foreign agricultural workers in the US, while H2-B visas are granted to nonagriculture workers. Presidential Spokesman and Chief Presidential Legal Counsel Salvador S. Panelo said that, while the Palace respects the decision the Philippine government would appeal the move, especially so if the basis for such is insufficient. “If that is the law in the US and if there were violations, then we have to respect if they have basis for that. We will only react if our workers are being mistreated, maltreated or be-

ing discriminated against. And if they violated the laws of the US, then they have to face the music,” Panelo said. “What we can do first is we need to know whether there is basis for their decision. If we can see that there is none, then we will ask for a reconsideration—but that’s the job again as I said of Department of Foreign Affairs and the United States ambassador,” he added. According to the notice posted in the Federal Register, nearly 40 percent of H2-B visa holders from the Philippines overstayed in 2017.

“DHS and the DOS [Department of State] are concerned about the high volume of trafficking victims from the Philippines who were originally issued H2-B visas and the potential that continued H2-B issuance may encourage or serve as an avenue for future human trafficking from the Philippines,” read the notice posted last January 18. There was also a fourfold increase in H2-A visa applications from Filipinos between fiscal years 2015 to 2018. Moreover, the DHS added, the US Embassy Manila issues the “greatest

number of T-derivative visas which are reserved for certain family members of principal T-1 nonimmigrants [certain victims of a sever form of trafficking in persons].” “The Philippines’s continued inclusion creates the potential for abuse, fraud and other harm to the integrity of the H2-A or H2-B visa programs,” it added. The ban is effective from January 19, 2019, to January 18, 2020. Aside from the Philippines, the DHS has also removed Ethiopia and Dominican Republic from the H2-A and/or H2-B eligibility lists for 2019.

End of era: Yes vote paves SC consolidates 3 petitions vs martial law in Mindanao way for birth of BARMM By Joel R. San Juan @jrsanjuan1573

By Manuel T. Cayon @awimailbox Mindanao Bureau Chief

OTABATO CITY—Resident analysts watching the Bangsamoro plebiscite up close said the current trending on yes votes is a clear signal to expeditiously take up the task of starting the transition process. “It’s the end of an era [for]…ARMM [Autonomous Region in Muslim Mindanao], [and the beginning for] the BARMM [Bangsamoro ARMM],” said noted political analyst Ramon Casiple. For the Moro Islamic Liberation Front (MILF), Casiple said, it would also be about facing its task of transitioning, from a revolutionary organization to the democratic governance. Lawyer Camilo Montesa, a longtime development official for a United Nations’s agency, said the yes vote has taken an early lead in the counting in the precincts as of late Monday night, hours after the close of the plebiscite. As of midafternoon Tuesday, the yes votes lead by a still uncomfortable margin at 20,579 votes as against 18,247 no votes in the hotly contested Cotabato City. The yes votes were expected to be overwhelming in the ARMM areas, except for Sulu, whose governor, Abdusakor Tan II, filed a petition at the Supreme Court to stop the plebiscite. Montesa said the conclusion of the plebiscite with a trending yes across the ARMM sent the transition process in motion. “We are entering a situation where a whole set of actions begins for the transition of the current ARMM to the BARMM,” Montesa said. How the BARMM would eventually fare “is another thing.”

Decommissioning

MONTESA said a crucial issue would be the decommissioning and normalization process. “It’s not only about completing the plebiscite as a political exercise.” “It’s about moving forward to the next important phase of the peace process, normalization,” he added. Both the government and the MILF should immediately sit down and discuss decommissioning the armed combatants of the MILF and transitioning them to normal civilian life, he added. TheMILFhasnotpubliclydisclosethe numberofitsfighterscalledtheBangsamoro Islamic Armed Force. Montesa said

it could between 40,000 and 50,000.

May midterm polls

CASIPLE said the conduct and result of the plebiscite “definitely would impact on the image of local politicians, as well as strategizing their campaign” especially in the contested non-ARMM areas of Cotabato City and Isabela City of Basilan. “If the yes won in these areas but politicians campaigned no, what strategy would they adapt?,” he said. And with the MILF in lead role to ratify the Bangsamoro Organic Law, “it has now also become a big political entity,” Casiple said. “I can’t say it can change the rules. But it will form part of the rules to be made,” Casiple said.

Threats

COMELEC Spokesman James B. Jimenez said, meanwhile, that the agency has not received any complaint yet from hotly contested Cotabato City. He also took exception from allegations that Comelec may have leaked data or have sustained a breach in its system to explain why teachers have received threats through their personal mobile phone accounts. “It’s very hard to isolate the Comelec as source data that allowed this attempt,” Jimenez added. He assured the Comelec would exert efforts to make sure that the culprits of threat messages would be identified. At least one school, Canizares National High School had their teachers getting text messages telling them not to report to poll duty. Fifteen teachers eventually did not report. “Generally it was peaceful across the ARMM except in Cotabato City, Jimenez said. “We are looking at a successful canvassing here,” he added.

Intimidation

IN Manila, however, Comelec Chairman Sheriff M. Abas said the result of the plebiscite in Cotabato City may be put into question amid reports of mass intimidation of voters in the area. He said the poll body is now ready to accommodate complaints against people behind the reported intimidation. “It could be a preproc [proclamation] or [election] protest,” Abas told reporters. He noted they have got at least seven “raw” reports of such incidents from their field office in Cotabato City of grenade throwing and commotion during the January 21 plebiscite. With Samuel P. Medenilla

HE Supreme Court on Tuesday ordered the consolidation of the three petitions assailing the constitutionality of the third extension of the imposition of martial law and the suspension of the privilege of the writ of habeas corpus in the entire Mindanao region. This was confirmed by Court Administrator and Spokesman Jose Midas Marquez following the Court’s regular en banc session on Tuesday. The Court has also directed the Office of the Solicitor General (OSG) on behalf of the respondents to file its comment on the two new petitions. T he t wo new petitions were filed by former Commission on Elections Chairman and

Constitutionalist Christian Monsod and the Makabayan-bloc in the House of Representatives led by the Bayan Muna party-list group. These two petitions are now consolidated with the first petition filed by opposition legislators led by A lbay First District Rep. Edcel C. Lagman. Named respondents in the petitions were both Houses of Congress, the Departments of National Defense (DND) and Local Government (DILG), the Armed Forces of the Philippines, the Philippines National Police, National Security Adviser Hermogenes Esperon Jr., and Executive Secretary Salvador C. Medialdea. It can be recalled that the Court has moved from January 22 and 23 to January 29 the conduct of the oral arguments on the issue following the

filing of more petitions questioning the legality of martial-law extension until December 2019 under President Duterte’s Proclamation 261. The petitioners argued that the extension of martial law is unconstitutional as it failed to satisfy public safety requirement under the 1987 Constitution. They noted that based on its review of President Duterte’s letter to Congress seeking a third extension of martial law in Mindanao showed the absence of vital facts that would prove that public safety has been seriously threatened to require the continued implementation of martial law and the suspension of the writ of habeas corpus. Furthermore, the petitioners claimed that Congress failed to exercise its power and duty to

Banac named new PNP spokesman as Santos takes AFP-Eastmincom By Rene Acosta @reneacostaBM

HILIPPINE National Police chief Director General Oscar D. Albayalde designated on Tuesday Senior Supt. Bernard Banac as the new spokesman of the PNP and acting chief of the public information office (PIO). Banac succeeded Chief Supt. Benigno Durana Jr. who had been named as the acting director of the PNP’s Directorate for Police Community Relations. Banac, a member of the Philippine Military Academy “TanglawDiwa” Class of 1992, was formerly the assistant chief of the Supervisory Office for Security and Investigative Agencies (SOSIA) based in Camp Crame. As the spokesman and chief of the PIO, Banac performs the dual functions as the “mouthpiece” and “publicist” of the PNP leadership. “My marching orders is to effectively communicate the programs and policies of the PNP with utmost transparency and of great service to the public,” Banac told members of the PNP Press Corps upon assuming the new post. Banac obtained his master’s degree in development management from the Asian Institute of Man-

agement in 1999. The new PNP spokesman also underwent various local and international police and military trainings and courses in Washington and Louisiana in the United States, Kosovo, Ivory Coast and Thailand. Banac was erstwhile chief of staff of the PNP Engineering Service and senior executive assistant to the chief PNP in 2015 and 2016. He commanded the Sorsogon Police Provincial Office as provincial director in 2013 and had served as a company commander of the Special Action Force as a field grade officer in 1992. Banac is a veteran of United Nations Peace-keeping missions where he served as Operations and Planning Officer in the UN Mission in Kosovo (UNMIK) in 2009 and technical adviser, UN Police Arms Embargo Cell in Abidjan, Ivory Coast in 2005. The spokesman of the PNP is the official mouthpiece and publicist of the PNP on public information matters involving internal security and general peace and order and accomplishments of the PNP. He is also considered as a personal staff officer of the PNP chief and holds the concurrent capacity as chief of PIO, the lead implementor of the PNP media relations policy.

At Camp Aguinaldo, meanwhile, Maj. Gen. Felimon Santos Jr. has assumed command of the Armed Forces of the Philippines Easter n Mindanao Command (AFP-Eastmincom) based in Davao City in the continuing designations in the military. Santos, former commander of the Army’s 7th Infantry Division based in Fort Magsaysay, Nueva Ecija, replaced Gen. Benjamin Madrigal Jr. following the latter’s earlier designation chief of staff of the Armed Forces. Madrigal presided over the installation of Santos as his successor in his former post. Santos is not new in Mindanao as he had been involved in a wide range of peace and security programs in the area before. An adept military officer, he was assigned to strategic military offices dealing with operations, intelligence and civil-military operations. Santos is a member of the Philippine Militay Academy Class of 1986 and spent most of his junior years with the 39th Infantry Battalion, a unit deployed in various provinces in Mindanao. He had once headed the 11th Intelligence Service Unit based in Davao City.

Millers’ group cites risk of allowing entry of foreign ‘subsidized’ sugar By Jasper Emmanuel Y. Arcalas @jearcalas

HE country may stand to lose substantial investments if the government allows the entry of “subsidized” sugar abroad, according to the Philippine Sugar Millers Association Inc. (PSMA). PSMA Executive Director Cocoy Barrera told the BusinessMirror that sugar millers are “very concerned” with the recent statement of Budget Secretary Benjamin E. Diokno that the government wants to “deregulate” the industry within the year. “Our efforts [in growing the economy] are being disregarded in the state-

ment. If you liberalize the industry by importing substantial volume of subsidized sugar, then you’re sweeping aside the farmers, the workers and the investments made toward [the sector’s growth]. There will be definitely some detrimental effects to the industry,” he said in an interview. “We are going to ethanol and [power] cogeneration. Those investments are not minuscule, these are tens and hundreds of millions—and all of these are dependent on sugar production. We will lose them—not only sugar, not only milling—but also other allied sectors,” he added. Diokno recently issued a statement that the government is planning to lib-

eralize the sugar industry by opening the sector further to imports. Diokno argued that locally produced sugar is “very expensive” compared to those produced abroad. However, Bar rera ex plained that the government has already “relaxed” some importation measures relating to the sugar industry, such as the application of importers and traders. Furthermore, he added that it would be “unreasonable” and “unwise” for the government to allow importation of sugar when the local sector is at its peak of its milling season as it would flood the market with supply and result in lower

farm-gate prices. Two of the Sugar Regulatory Administration (SRA) board members said over the weekend that the farm-gate price of sugar went down immediately after Diokno made his pronouncement during a news briefing last week. The board members Roland Beltran, who represents the milling sector, and Dino Yulo, who represents the planters’ sector, noted that the drop in prices came at a wrong time as the industry enters the peak of its milling season. They argued that the farm-gate price of sugar has significantly dropped from P1,693 per 50-kilogram

bag in September to P1,575 per bag as of January 6. With this, the they pointed out that the “high retail prices of refined sugar is not attributable to sugar farmers and millers.” “The sugar industry—its farmers, mill and workers, are partners of the government for development. They provide investment, employment and revenue in the countryside. It is unfair to subject them to this insecurity,” they said. In a separate statement recently, Yulo urged the Department of Trade and Industry “to help monitor and curb sugar prices in the market because of the great disparity between the retail prices of sugar and mill-gate prices.”

check the martial-law powers of the President. The Mindanao region was first placed under martial law by President Duterte in May 2017 to flush out terrorists belonging to the Daesh-inspired Maute Group who took over several barangays in Marawi City. The siege ended with the killing of Abu Sayyaf leader Isnilon Hapilon and Maute group leader Omar Maute five months after. The implementation of martial law extended by Congress, first was from July 22 to December 31, 2017, and the second was from December 31 last year to December 31, 2019. On December 12, Congress voted 235-28 with one abstention to reextend the martial law in the region up to the end of this year.

DOLE chief eyes mediation option in brewing Clark airport labor row By Samuel P. Medenilla @sam_medenilla

ABOR Secretary Silvestre H. Bello III on Tuesday said he is mulling over the issuance of an Assumption of Jurisdiction (AOJ) in the brewing labor dispute at the Clark International Airport Corp. (CIAC) if it worsens into a full-blown labor strike. In a phone interview, Bello said they are closely monitoring the case, since it will affect commuters if the work stoppage pushes through. “I am prepared to assume jurisdiction if the conciliation does not succeed. I would be compelled because it…involves public service,” Bello told the BusinessMirror. Bello noted said the CIAC management had expressed its willingness to grant some of the demands of the Samahan ng mga Manggagawa sa Diosdado Macapagal International Airport (SMD). “Actually they are willing to grant the request of the labor group, except they are have to get the clearance of the GCG [Governance Commission for Government-Owned or -Controlled Corporations],” Bello said. The labor secretary usually issues an AOJ in cases that involve national interests. It allows the labor chief to directly handle negotiations between the two disputing parties. SMD members threatened to hold a strike amid its ongoing labor dispute with the CIAC management. SMD has 174 members all working at the CIAC. The dispute stems from the alleged unfair labor practice committed by CIAC in the privatization of its gateway’s operation and maintenance, which resulted to the displacement of some SMD members. SMD filed its strike notice at the Department of Labor and Employment (DOLE) on December 14, 2018, but it has yet to complete its strike vote to hold the work stoppage.

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Ex-DFA chief del Rosario to govt: Don’t set aside arbitral ruling on South China Sea By Elijah Felice E. Rosales @alyasjah

HE country’s former top envoy on Tuesday warned the government that it will lose the trust and confidence of the people should it continue to shelve FORMER President Benigno S. “Noynoy” Aquino III (third from left) receives a copy of the book The South China the arbitral ruling favoring MaSea Arbitration: Understanding the Awards and Debating with China authored by Dr. Alfred Robles Jr. (fourth from nila’s maritime claims in the South left) at the De La Salle University (DLSU) campus in Manila on Tuesday. With them on the stage are Bro. Ray China Sea. Suplido, DLSU president; former Foreign Affairs Secretary Albert F. del Rosario; Senior Associate Justice Antonio Former Foreign Affairs SecreT. Carpio; and Bro. Bernard Oca, FSC, DLSU chancellor. ROY DOMINGO tary Albert F. del Rosario urged the Duterte administration to enforce the country’s landmark victory over China at the Permanent Court of Arbitration. The ruling, issued in 2016, affirmed Philippine claims in the South China Sea. The statement was issued at the launching of the

book The South China Sea Arbitration: Understanding the Awards and Debating with China, which was authored by international relations scholar and De La Salle University professor Alfredo C. Robles Jr. “Since nearly nine out of 10 have taken the view that the Philippine government must advance to enforce the tribunal outcome, Filipinos are clearly rejecting the government’s actions to shelve the tribunal results. When confronted by a bullying Goliath, no Filipino would naturally want to be described as a willing victim nor as an abettor,” del Rosario argued. “In terms of allowing our government to acquiesce to the dictates of Goliath, it is about losing entirely what is most important to our people,” he added. In a recent survey released in November last year, it was reported that 84 percent of Filipinos oppose the government’s apparent inaction to China’s intrusion in claimed terri-

tories. Moreover, the survey showed that 87 percent of the population believe the Philippines must regain control of the islands occupied by China in the South China Sea. The book, del Rosario said, is an account, not only of the process and technical details of the landmark win, but also of the policy thrust of the government to put the ruling aside in favor of warmer relations with Beijing. “It is about our government’s decision to shelve the arbitral victory in order to avoid China’s displeasure and ire, with the expectation of significant amounts of investments and aid for our ‘Build, Build, Build’ infrastructure program. It is about our additional silver platter offerings to Goliath of our country’s strategic assets, which would effectively result in providing a stronger position of domination against the Filipino people,” del Rosario said. In his conversation with Ro-

SC orders DBM to file comment on release of P42.7-B salary hike for state workers By Joel R. San Juan @jrsanjuan1573 & Jasper Emmanuel Y. Arcalas @jearcalas

HE Supreme Court on Tuesday directed Budget Secretary Benjamin E. Diokno to comment on the petition seeking to compel his agency to release the fourth tranche of salary increase for government workers amounting to at least P42.7 billion. The order was issued by the Court during its regular full court deliberations on various cases, which is being held every Tuesday. The petition was filed by House Majority Floor Leader Rolando G. Andaya Jr. and several government workers, who named Diokno and his department as respondents. The petitioners sought the issuance of a writ of mandamus with prayer for preliminary mandatory injunction to compel Diokno to perform his ministerial duty to release the funds for the fourth tranche of increase and adjustments as provided under Executive Order 201 (Modifying the Salary Schedule for Civilian Government Personnel and Authorizing the Grant of Additional Benefits for Both Civilian and Military Uniformed Personnel) starting January 2019. The petitioners insisted that the Department of Budget and Management (DBM) has no legal basis to withhold the release of funds despite the delay in the passage of the 2019 General Appropriations Act. They pointed out that there are available alternative sources of funds for the fourth trance of salary increases even with the reenactment of the 2018 budget. One of the possible sources of the funds, according to the petitioners, is the Miscellaneous Personnel Benefits Fund (MPBF). The MPBF has a total amount of P99.44 billion, which is more than enough to cover the salary adjustment for the fourth tranche.

Budget measure

MEAWHILE at the House, newly-installed House Committee on Appropriations Chairman Andaya vowed the speedy passage of the 2019 budget, as he expressed confidence that both chambers of Congress would find a middle ground on the disagreeing provisions of the budget measure. Andaya said lawmakers are now working overtime to pass the 2019 national budget after the measure entered the bicameral conference committee phase. “This refutes the repeated lies peddled that the House wants a re-enacted budget when all our actions prove that we want a new one,” he said in a news statement issued on Tuesday. Andaya said lawmakers from the House and Senate met on January 22, Tuesday “to set the ground rules for an orderly, transparent and speedy bicameral conference on the 2019 national budget. “The meeting came less than a day after the Senate passed its version of the 2019 national budget on January 21. “As to their amendments, we are confident in finding a common ground that will benefit the people and fund the progress that they deserve. No healthy difference on policy questions is irreconcilable,” he said. “I have made my position clear. The House contingent will push for full transparency in the bicameral conference deliberations. We know that our senators want the same,” he added. The members of the House contigent to the meeting were Reps. Ma. Carmen S. Zamora, Rodante D. Marcoleta, Edcel C. Lagman, Federico S. Sandoval II, Jose Antonio Sy-Alvarado, Yedda Marie K. Romualdez, Corazon Nunez-Malanyaon, Arthur C. Yap, Jesus D. Romualdo and Minority Leader Danilo D. Suarez.

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Moreover, it provided that “upon final resolution in favor of the national government of any ongoing dispute over the Net National Government Share, the amount shall be allocated solely for the purpose specified in this Act.” The bill further provides that the Net National Government Share from the Malampaya Fund shall be remitted to a Special Trust Fund to be administered by PSALM; provided that “the amounts herein allocated shall be included in the General Appropriations Act. At the same time, the Department of Budget and Management shall provide timely release of the amounts allocated and appropriated to the PSALM in accordance with its debt and independent power producer payment schedule. “When the Stranded Contract Costs, Stranded Debts and anticipated shortfalls in the course of the payment of such liabilities are fully paid before the termination of the corporate life of PSALM, the net National Government Share shall accrue back to the Special Fund used to finance energy resource development and exploitation programs” provided in existing laws. The bill further provides that the Murang Kuryente Act shall take effect 15 days from date of publication in the Official Gazette or in at least two newspapers of general circulation. Butch Fernandez

bles, former President Benigno S. Aquino III said the arbitral ruling provided the government a better position to claim South China Sea and make use of its resources. However, Aquino admitted that the change in foreign-policy direction from his administration to President Duterte’s paved the way for China’s taking over crucial parts of Philippine waters. He sighed at the “crisis” the country is facing right now—from the takeover of islands owned by the Philippines to the influx of Chinese workers in the country. China has yet to recognize the ruling that found no legal grounds for it to claim historic rights over islands and waters covered by its so-called nine-dash line. Instead, the expansionist superpower went on to “militarize” South China Sea by building structures and facilities there. The President has yet to enforce the arbitral ruling to force China out of Philippine waters.

Moody’s keeps stable outlook for both BDO and Metrobank

OODY’S Investor Service (Moody’s) has affirmed the “Baa2” local and foreign deposit rating for two leading banks in the Philippines: BDO Unibank Inc. (BDO) and the Metropolitan Bank and Trust Co. (Metrobank). In a report issued on Tuesday, Moody’s affirmed BDO and Metrobank’s Baa2 baseline credit assessments (BCA) maintaining a stable outlook for both banks. According to its report, the affirmation of BDO’s Baa2 deposit and senior unsecured debt rating is based on the bank’s BCA of Baa2, and that Moody’s expects a very high probability of the bank receiving systemic support from the Philippine government in times of need. It pointed out that its rating for the bank took into account BDO’s domestically focused, prominent, and growing franchise, stable asset quality and loss absorbing buffers; sufficient capital levels that exceed the regulatory minimum; stable profitability, supported by a gradual expansion in net interest margins; and robust funding and liquidity profile. Furthermore, BDO’s funding and liquidity profile was reported to remain a key credit strength, as it has one of the highest shares of low-cost current-account and savings account deposits of around 70 percent as of end-September 2018. BDO reported its total assets as of end-September 2018 to reach P2.9 trillion or $55.7 billion. For Metrobank, Moody’s also said that the bank’s Baa2 deposit rating is underpinned by its Baa2 BCA and the expectation of a very high probability of support from the government of the Philippines. The rating reflects the bank’s strong franchise in the corporate and consumer segments of the domestic market as the second-largest bank in the Philippines by assets; robust capital and liquidity; stable asset quality, which reflects the bank’s discipline and prudence in growing its business; and relatively high credit risk concentration, exposing the bank to single-name credit events or industry-specific cyclicality. “Metrobank’s funding and liquidity remain robust, reflected by its large base of current and savings deposits, which account for 62 percent of the bank’s total deposits as of the end of September 2018, as well as its large stock of liquid assets primarily in the form of cash and Philippine government securities,” Moody’s said. The bank reported its total assets of P2.1 trillion or $40.5 billion as of end-September 2018. Rea Cu

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in 2029 from 30 percent. In exchange, it will restructure the menu of incentives that locators can avail themselves of. Japanese firms are also concerned with issues on wages and labor reforms, after all 17 wage boards adjusted the basic pay rates from P8.50 to P56 in different periods last year, including an increase of P25 in the Metro Manila daily wage. Wage increase rate in the Philippines might be slower than those of Vietnam and Indonesia, the Jetro report read, but salary in Indonesia got more competitive in the face of the rupiah’s depreciation against the dollar. Numerous Japanese businesses are reportedly cutting down administrative costs to compensate for rising expenses. The survey, conducted in October to November of last 2year, covered responses from 127 Japanese firms doing business in the country, of which 69 are manufacturers. It was part of the annual Jetro study that assessed business conditions of Japanese enterprises in Asia and Oceania. The previous report only had 73 respondents—46 manufacturers and 27 nonmanufacturers.

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Wednesday, January 23, 2019 A5

Govt fully awards ₧20B in maiden T-bonds issue

By Rea Cu

@ReaCuBM

HE Bureau of the Treasury (BTr) on Tuesday fully awarded P20 billion in its maiden issuance of 20-year Treasury bonds (T-bonds), as investors showed stronger appetite for longer-dated securities.

National Treasurer Rosalia V. de Leon told reporters bids for the government security amounted to P50.921 billion at a coupon rate of 6.750 percent. “So far, so good for all the auctions for the start of the year,” de Leon said. “Now, we are also seeing the shift of appetite toward the long-end because they are trying to maximize their yields. And even inflation is expected to

trend downward.” The strong demand for T-bonds prompted the auction committee to open its Government Securities tap facility as well as its over-the-counter (OTC) window on Tuesday. The auction committee offered P10 billion in its tap-facility auction instead of the initial P20 billion for the 20-year T-bond. “We can open up to P20 billion for the offer size for the auction, [but]

we are just upsizing to P10 billion; we’ll see,” she added. The Treasury’s 10 market makers are the only institutions allowed to partake in the auction under the tap facility while tax-exempt government-owned and -controlled corporations can submit their bids under the OTC window. On Monday, the auction committee also opened its tap facility for the 364-day Treasury bills

(T-bills), awarding the full P8-billion offering at an average annual rate of 5.969 percent. Bids for the one-year T-bill amounted to P30.133 billion. Meanwhile, de Leon also said that the government has already secured approvals for a panda bond issuance this year both from the Monetary Board and Office of the President. “The panda bond is already on the table,” she said.

A6 Wednesday, January 23, 2019 • Editor: Angel R. Calso

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editorial

Helping Philippine poultry raisers fly

ORE than a year after a bird-flu outbreak almost decimated poultry farms in Central Luzon and sent chicken prices tumbling down, raisers are once again facing a calamitous situation. What’s killing their business this time, however, is not entirely unavoidable like natural calamities such as strong typhoons. The culprit is the supply glut caused by a host of factors, including the bad timing of imports. Agriculture Secretary Emmanuel F. Piñol said poultry raisers were forced to sell their live broilers below break-even levels following the free fall in prices. For example, production cost ranges from P80 to P85 per kilogram. But because of the supply glut, poultry growers are being forced to sell live broilers for as low as P38 per kg. (See, “DA: Low prices may cause chicken shortage,” in the BusinessMirror, January 9, 2019). One of the prescriptions of the Department of Agriculture is for affected poultry raisers to increase their farm-gate price by at least P10 per kg every week until it reaches breakeven. On the part of the government, Piñol said the Food Terminal Inc. will negotiate with poultry raisers for the purchase of chicken at a level that is higher than the prevailing farm-gate prices. The government is also planning to tweak the schedule of arrivals of chicken imports under the minimum access volume of the World Trade Organization (WTO). (See, “Stop ‘nitpicking’ on broiler raisers, DA chief tells PCC,” in the BusinessMirror, January 17, 2019). The timing of the arrival of chicken imports was a major factor behind the glut seen in recent weeks. Of the 18 million kilos of chicken in local cold storages, government data indicated that 16 million kilos were imported. It is possible that the shipments of imported chicken arrived in the Philippines in the middle of harvest. Thus, proper scheduling of the arrival of imports is a good idea to allow producers to plan accordingly. The export market would have been a viable alternative for poultry raisers, but they remain unable to take full advantage of this. The cost of shipping to other countries may be onerous for small players, but the government can consider playing the role of consolidator to export chicken from small players in bulk. Currently, only the “big players” can tap the export market as they have the financial capacity to shoulder the shipping cost. The inability of small players to tap the international market is lamentable considering the trade deals that Manila has forged with other governments in recent years. There are countries that are ready to buy Philippine chicken products, but small players must be given technical assistance so they can comply with the stringent requirements in these markets. The government must also start encouraging value adding among small players. For the longest time, poultry raisers have been used to selling whole dressed chicken. As the domestic market is no longer exclusive to them given the commitment of the Philippines to the WTO, poultry raisers must be assisted in developing new chicken products aside from tocino. This can only be done if the government will throw its full support behind research and development (R&D) activities for the farm sector. While it is preferable for the private sector to invest in R&D efforts for the poultry sector, investments are scarce because Philippine agriculture is simply unattractive to businessmen. This administration has acknowledged that agriculture would remain as one of the top concerns of the government. The next step should be to identify viable strategies that would help solve the ills plaguing the sector.

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A doctor in the Senate? Susan V. Ople

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E met online months before the filing of certificates of candidacies. He “waved” at me, and I “waved” back. He asked for time to meet with me, declaring his intent to run for the Senate. I said, yes. Despite all best intentions, the meeting never happened. Well, until last Saturday. Doc Willie Ong and his wife, Doc Liza, were waiting for my coanchor, Fort Jose, and I, at the lobby of our radio station’s DWIZ 882 office in Pasig City. They were seated quietly, just a husband and wife team, no other members signifying even a skeletal entourage. I found their simplicity as a couple endearing. In Doc Willie, I remember the simple, humble and most lovable Juan Flavier, the senator and doctor from the barrios. Sen. Flavier knew how to make fun of his height, and had a very loving and warm presence. He gave my father, the late Senate President and Foreign Affairs Secretary Blas Ople, stern reminders to stop smoking. As Bulakenyos who came from humble beginnings, Flavier and Ople became the best of friends. I happily note that the son of Ka Johnny Flavier, Dr. Jondi Flavier, is among Doc Willie’s endorsers. In a Facebook post, Jondi wrote: “We salute the efforts of our senators but

we need more voices, [and] maybe another physician in the Senate to push for the health laws needed by our people. I would like to think that dad would say, ‘Let’s DOH it’ again. Mabuhay po kayo at manatiling matapang, Doc Willie!” The first question I asked the 55year old doctor as my guest on Global Pinoy on Saturday was, why the Senate? Why not run for a party-list as an entry point to Philippine politics? He replied that he has spent 25 years of his life as a doctor catering to poor patients, with an active media presence for 12 years and a four-year stint at the Department of Health (DOH) as a consultant. This long track record opened his eyes to the need for public health reforms, and the Senate was the best platform for that. Doc Willie also draws inspiration from Malaysia’s strong leader, Dr. Mahathir bin Mohamad, who practiced medicine prior to joining the Malaysian parliament. It was

the 93-year-old Malaysian prime minister who once said that doctors make for good politicians because they are focused on the health of the communities. As a doctor, Doc Willie prides himself for his good listening skills. “I listen intently to the needs of my patients, and study their health concerns. As a doctor, I cannot be too emotional, otherwise I might prescribe more than is required.” It is that kind of mental discipline and rigor that the senatorial bet would like to offer to the people. So what can a Doc Willie Ong contribute to the legislative agenda of the Senate? He would like to strengthen the oversight functions of the Senate over public health spending and medical infrastructure development. “As a doctor catering to poor patients, I know which medicines are still overpriced and beyond the financial capability of indigents.” He cited cancer drugs in the Philippines as being five times more expensive compared to the same brands in other countries. Doc Willie also noted that local medicines to treat depression are quite expensive. “We need to make it easier for patients, especially young people, to avail themselves of treatment for mental conditions such as depression.” He also would like to push for a scholarship program for doctors in the barrios with a 50-50 sharing between the DOH and local governments. “If we relocate doctors from Metro Manila to the barrios, their

services would likely be temporary. If we invest in scholarships for medical students from the most remote areas, they have higher chances of going back and serving their communities.” He also mentioned the lack of drinking water, unbridled pollution, heavy traffic and unsafe food as contributing factors to poor public health. “There are children who die every day because they have no access to safe drinking water, while constantly exposed to unsafe food. Pollution is also a contributing factor to respiratory ailments, and the stress due to heavy traffic can cause heart attacks.” Such quality of life issues will be high in the doctor’s agenda. “I cannot promise to have all kinds of solutions. I do promise that, in claiming a seat in the Senate, my primordial concern would always be the health needs of our poorest patients. Meanwhile, I have developed 1,700 videos on a variety of ailments and written 5,000 articles all uploaded and discoverable online, to help our people.” Indeed, the doctor has 9 million followers on his Facebook page. Now, if only each of these followers get at least five members of their families and friends to vote for Doc Willie, then this good doctor may just be the surprise winning candidate of 2019. Susan Ople heads the Blas F. Ople Policy Center and Training Institute, a nonprofit organization that deals with labor and migration issues. She also represents the OFW sector in the Inter-Agency Council Against Trafficking.

There’s a golden shelter from recession risks at these mines By David Stringer, Ranjeetha Pakiam & Danielle Bochove Bloomberg Opinion

HERE’S a better potential haven than gold for investors spooked by the risk of a recession this year—midsized producers who’ve outperformed both bullion and the rest of the mining industry. Companies including Canada’s Kirkland Lake Gold Ltd. and Australia’s Northern Star Resources Ltd. have scope to extend gains and should be in focus for investors looking for a safe harbor, according to Joe Foster, New York-based portfolio manager for the $600-million Van Eck International Investors Gold Fund. Kirkland Lake, Northern Star and two rivals have the best returns in the Bloomberg World Mining Index over the past 12 months—a period during which both the gold price and the equity benchmark have declined. “Gold responds to global financial risk and so, if you believe that, the best way to play gold is with these gold stocks,” Van Eck’s Foster said in an interview. “They carry leverage to

gold, and in a good gold market, they will outperform.” Spot bullion began rallying in the last quarter and is forecast to end this year higher, according to analysts’ estimates compiled by Bloomberg. The metal will climb to $1,425 an ounce, a price level not seen in more than five years, as geopolitical tensions fuel central bank purchases and recession fears boost demand for defensive assets, Goldman Sachs Group Inc. said this month. Gold’s traditional status as a haven asset has been called into question in some recent periods of volatility. Bullion remained largely unmoved for much of 2018 as US-China trade tensions unfolded, with investors fleeing instead to the dollar. Producers too have also disappointed in the past. A Bloomberg Intelligence index of senior gold equities lost more than three-quarters of its value from late 2011 through the end of 2015 as companies reeled from failed deal making and a tumbling price of the metal. Still, gold equities are “an attractive option for a diversified portfolio, especially if we are moving into a period of higher market volatility,” said Stephen Land, portfolio manager for

the Franklin Gold & Precious Metals Fund, which manages about $1 billion and holds producers including B2Gold Corp., Newcrest Mining Ltd. and OceanaGold Corp. Northern Star fell 0.7 percent in Tuesday trading in Sydney to trim its advance in the past 12 months to 53 percent, as Evolution rose 0.5 percent. Kirkland climbed 1 percent Monday in Canada. “The market has ascribed much higher multiples to those companies which have been able to pay off debt and show growing cash balances,” Land said. Current strong performers will need to continue to innovate to retain a premium, with most competitors now embracing a similar playbook, he said. Investors are seeking out strong management, or operational teams, regardless of the industry, and should be drawn to the gold sector in any search for a haven, Northern Star’s Executive Chairman Bill Beament said in an interview. “It’s a no-brainer—the leverage to an increasing gold price is so much larger for equities compared to bullion itself,” Beament said by phone. “There’s also now a genuine choice of high-quality gold companies outside

of the majors, and it is certainly an option if you want to park money— we’ve shown that the returns can be pretty spectacular.” Midsized producers have improved their record in boosting efficiency in recent years, and some are poised to reap more benefit than larger rivals from a rising gold price because they have more ability to grow production, according to Rick Rule, president and CEO of Sprott US Holdings Inc., a subsidiary of Toronto-based Sprott Inc., which had C$10.1 billion ($7.6 billion) under management as of September 30. A coalition of investors, including firms backed by billionaires John Paulson and Naguib Sawiris, have also praised companies, including Kirkland, Northern Star and Evolution Mining Ltd., because top managers have a high ownership-to-pay ratio, a metric the group sees as an indicator of superior performance. Gold producers are also in line for a potential further boost from the sector’s wave of deal-making that’s seen the largest companies, Barrick Gold Corp. and Newmont Mining Corp., strike separate deals to acquire rivals in recent months.

Opinion BusinessMirror

www.businessmirror.com.ph

As Trump’s guardrails come down, Davos elite braces for tumult

World economy wobbles

THE president enters the second half of his term accompanied by an endof-year meltdown in markets and the International Monetary Fund’s (IMF) warning that “escalating trade tensions” are the biggest risk to global growth. He does so without restraining influences like Defense Secretary James Mattis, whose departure last month over Trump’s abrupt decision to pull US troops from Syria reinforced the sense that his foreign policy is ever more beholden to the pursuit of “America First.”

Three camps

FACED with that reality, world leaders are increasingly falling into one of three camps in their approach to the president, according to Stephen Walt, a professor of international affairs at Harvard University: following Trump’s lead, resistance—however futile—and trying to make the most of his policy vagaries. Yet lacking any consensus against Trump, Walt sees many leaders as engaged in a waiting game to try and sit him out. “There is no longer this idea that he’d be reined in by the establishment and that you’d have a fairly normal administration,” said Walt. “People are now fully aware that he’s extremely impulsive and erratic, and will continue to challenge the status quo. That means something different depending where you are.” Leaders from all three camps will be present in Davos: those from traditional US allies such as Canada and Germany who are resisting as far as possible in the hope they can wait Trump out; rivals from China and Russia who thought they could exploit the opportunities but have found him too erratic; and those in countries like Israel, Hungary and Brazil who have benefited from the environment around Trump’s rise. Among the forum’s headline attractions is German Chancellor Angela Merkel, who can be expected to build on her New Year’s address denouncing nationalism and populism that reinforced her status as a Trump adversary. Yet, she and Macron were unable to prevent Trump from quitting the Iran nuclear deal or the Paris climate accord. Germany is in the firing line if he follows through on his threat to impose punitive tariffs on imported cars.

Euro vs dollar

MBAs distinguished from SLAs Dennis B. Funa

INSURANCE FORUM

By David Wainer | Bloomberg

N 2018, Davos was basking in a robust global economy as Donald J. Trump pledged that “America is open for business.” One year on, the US government is partially shut and the market ebullience that greeted the president’s corporate tax overhaul is a distant memory.

TRUMP’S attacks on allies and persistent questioning of the value of the transatlantic alliance have accelerated European efforts to gain

In the 12 months since he visited the World Economic Forum in the Swiss Alps, Trump has launched a trade war with China, slapped tariffs on Europe, weighed in on Prime Minister Theresa May’s Brexit deal, expressed understanding for France’s “Yellow Vest” protests against President Emmanuel Macron and threatened to “devastate” Turkey’s economy. greater autonomy, including moves to boost the role of the euro and reduce dependence on the US dollar. Until that happens, however, allies in Europe remain vulnerable, said Erik Brattberg, director of the Europe Program and a fellow at the Carnegie Endowment for International Peace in Washington. “They talk the talk of becoming more strategically autonomous, more sovereign in their foreign policy,” said Brattberg. “But the answer from Europe will be passive. They will not be able to assert themselves.” Then there are swathes of the globe whose leaders are emboldened by Trump. Israel’s Prime Minister Benjamin Netanyahu, who benefited from the US decision to move the American Embassy from Tel Aviv to Jerusalem, will be in Davos, as will Italy’s prime minister, Giuseppe Conte, whose populist coalition government shares Trump’s hard line on migration. Also in town will be new Brazilian President Jair Bolsonaro, the leader of Latin America’s largest nation, dubbed by some the Latin Trump. From the right to bear arms to a disdain for multilateralism, the ideological ties run deep. In Davos, Bolsonaro wants to present Brazil as reinvigorated with a more open economy; his team plans to lay out priorities including privatizations and lower taxes.

‘No illusions’

STILL, as the IMF makes clear, increased tariffs are the main drag on the global economic outlook, and an improvement hinges on resolution of the US trade conflict with China, along with “the resulting policy uncertainty.” China’s delegation to Davos this year is led by Vice President Wang Qishan. Trump’s decision last week to pull the whole US government delegation means Wang won’t get to meet with Treasury Secretary Steve Mnuchin and discuss the trade conflict. For all his bluster, diplomats point to the fact that Trump has not radically altered the American-led web of alliances. He renegotiated trade deals with Canada, Mexico and South Korea that left much of the substance intact, and his complaints about Europe’s defense spending, China’s trade practices and Iran’s regional role could have been championed by other Republican presidents. Yet for Russia, Trump’s unpredictability has led to worsening ties. The president’s abrupt cancellation of an expected meeting with Vladimir Putin at the Group of 20 summit in Argentina last year—the third such snub for the Russian leader in 12 months—was the last straw, with Russian government officials lamenting that the president’s aides are playing him as they like. “Moscow is ready for more disturbing moves in all possible directions,” said Fyodor Lukyanov, head of the Council on Foreign and Defense Policy, a research group which advises the Kremlin. “There are no illusions about Trump left.”

Wednesday, January 23, 2019 A7

UTUAL Benefit Associations (MBAs) need to be distinguished from Savings and Loan Associations (SLAs). Under Republic Act (RA) 10607, otherwise known as the amended Insurance Code, a mutual benefit association is a “society, association or corporation, without capital stock, formed or organized not for profit but mainly for the purpose of paying sick benefits to members, or of furnishing financial support to members while out of employment, or of paying to relatives of deceased members of fixed or any sum of money, irrespective of whether such aim or purpose is carried out by means of fixed dues or assessments collected regularly from the members, or of providing, by the issuance of certificates of insurance, payment of its members of accident or life insurance benefits out of such fixed and regular dues or assessments x x x.” On the other hand, under RA 8367, otherwise known as the “Revised Non-Stock Savings and Loan Association Act of 1997,” a savings and loan association is a “nonstock, nonprofit corporation engaged in the business of accumulating the savings of its members and using such accumulations for loans to members to service the needs of households by providing long- term financing for home building and development and for personal

finance.” SLAs are classified as a branch of the thrift banking system. Some have referred to it as “specialized banks.” As a financial institution, it is similar to banks in providing members with residential mortgages. Both are membership based, and both only cater to its members. In its formation, Non-stock Savings and Loans Associations (NSSLAs) must have “at least five but not more than 15 members of a well-defined group

as provided herein may form an Association under this Act.” MBAs have no minimum membership, but to be classified as a micro-MBA it must have 5,000 members. SLAs are directly regulated by the Bangko Sentral ng Pilipinas and are classified as nonbank financial intermediaries under the BSP Manual of Regulations, while MBAs are regulated by the Insurance Commission.

Difference

A DIFFERENCE between an MBA and an SLA are the primary and incidental purposes. The primary purpose of MBAs is to provide financial support to its members and provide services akin to insurance. The primary purpose of SLAs is the accumulation of savings, making it akin to banks, and providing loans to its members. While there may be similar services, such as the granting of loans by MBAs to its members, they are merely incidental.

Nature of Savings and Loan Associations

SLAs were originally referred to as “building and loan associations.” In its original concept, money was lent so that a member could build or purchase his own home. In other words, it was a home-financing institution. The first SLA was established in the 1830s and the first was the

China wants to dominate the Internet By Emily de La Bruyere & Nathan Picarsic Bloomberg Opinion

OR the past year, the United States and China have been engaged in a wide-ranging trade war. Nominally, the dispute concerns intellectual-property violations, forced technology transfers and other unfair practices. In reality, though, this clash is a symptom of a much larger strategic showdown—one in which Chinese President Xi Jinping seeks “decisive victory.” Aided by technology, China is embarking on a new kind of geopolitical strategy. As the Chinese Academy of Sciences explained, the goal is to build a “ubiquitous and universally used information network system.” In doing so, China hopes to bolster its national champions, increase the world’s reliance on Chinese technology and erode US strategic advantages. It also wants to gain control over global data and information exchanges, thereby claiming leverage to advance its interests. America and its allies must recognize this threat and prepare to respond forcefully. China’s government has long controlled its commercial sector. Stateowned companies dominate many industries, while even ostensibly private firms are required to put the government’s interests first. Favored businesses receive state support in a domestic sandbox. Beijing deploys protectionist policies in areas of the economy thought to be strategically valuable. Increasingly, that means technology. For instance, the oft-cited “Made in China 2025” initiative stresses the

need to foster Chinese companies in high-tech fields such as robotics, aerospace and information technology in the hopes of competing with Western tech giants. The subsidies and protectionist measures that support the plan are a major point of contention with the US. But China’s true ambitions are larger. In the longer term, it seeks an all-encompassing advantage in what it perceives to be a zero-sum race for technological dominance. Its strategy to achieve this goal is twofold. First, China is importing ideas and innovation from overseas. Sometimes that means overtly siphoning technology and trade secrets. Sometimes it’s subtler. For instance, China’s state champions have built corporate R&D hubs in Silicon Valley, hoping to harvest breakthroughs in fields, such as selfdriving cars, cloud computing and deep learning. The stream of lowcost knowledge that those hubs acquire has been essential to building up China’s domestic tech industry.

Second, China is using the technologies it exports to collect data from abroad. Alipay, Alibaba’s mobile-payments business, is swooping up vast amounts of transaction data as it expands globally. Mobike and Ofo want to dominate data-rich bike-share markets overseas. Chinese surveillance systems are ubiquitous in Africa, while businesses and hobbyists around the world fly DJI drones—even though they may be sending sensitive information back home. Soon, your phone might connect to a Chinese 5G network, while your mapping or fitness apps might be sending their data to Beijing. Collecting data, though, is just the start. China wants to lace all these systems together in what Xi calls the “network great power strategy.” The idea is to make Chinese technology a foundation for the global flow of information and transactions—and thus to expand the Chinese Communist Party’s leverage, influence and power worldwide. As the Academy of Sciences put it, China hopes to use this network first to conduct “social experimentation and analysis,” then to “predict, develop and control real events.” Consider it a global operating system with geopolitical ambitions. Other countries are aware that they need to counter this potential threat. Several are considering bans on Chinese tech companies such as Huawei and ZTE. Last year the US blocked Ant Financial from merging with MoneyGram, a tie-up that would’ve

Oxford Provident Building Society in Frankfort, Pennsylvania. Soon, the SLA industry flourished. In 1932 the Federal Home Loan Bank Board was created in the US to regulate the SLA industry. The Garn-St. Germain Depository Institutions Act of 1982 allowed SLAs to invest in other types of loans besides home loans. With the collapse of the SLA industry in the 1980s due to unsound realestate lending, known as the Savings and Loan Crisis, the US Congress passed the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 which, among others, created the Office of Thrift Supervision to replace the FHLBB. Today, the NSSLA industry is “a constructive component of the Philippine financial system” and “has contributed and is contributing to the workings of the economy.” Its total assets have reached P80.4 billion at the end of December 2008. In the 2017 Financial Inclusion Survey, it was found that in 2017, only 0.3 percent of Filipinos save their money in Nonstock savings and loan associations, down from 0.4 percent in 2015. More Filipinos, 4.0 percent, save in informal groups such as the paluwagan. Dennis B. Funa is the current insurance commissioner. Funa was appointed by President Duterte as the new insurance commissioner in December 2016. E-mail: dennisfuna@yahoo.com.

given it a foothold in the data-rich US payments market. But there’s an asymmetry at work: Where China’s approach is deliberate and strategic, the West’s response has been disjointed and reactive. The US and its allies need a more comprehensive response. For starters, they should develop new investment-screening protocols to protect critical fields. These should be established on the same principles as other exportcontrol mechanisms, such as the Wassenaar Arrangement, but with a mandate broad enough to match China’s ambitions. For example, they could examine limited-partner stakes in US-based funds, as well as direct investments in operating companies. Free-trade agreements could institutionalize such a system by incorporating common definitions for covered transactions, and rewarding allies and partners that resist China’s attempts at coercion. A provision in President Donald J. Trump’s renegotiated Nafta deal—discouraging participants from signing agreements with “nonmarket” economies—offers a good template. China can claim inherent advantages in this competition, namely scope and scale. And coordination among US allies and partners—with a range of interests and vulnerabilities—won’t be easy. But cooperating to constrain China’s ambitions, and to protect free competition and open networks, has never been more essential.

Arab states should beware of easy foreign capital By Karen E. Young Bloomberg Opinion

HE taps of foreign capital are about to open on some states in the Middle East, thanks to their inclusion in key emerging-market indexes. Over the next year, Saudi Arabia and Kuwait are expected to join Egypt, the United Arab Emirates and Qatar in the MSCI EM index. At the same time, Saudi Arabia, Qatar, the UAE, Bahrain and Kuwait are expected to join Oman in the J.P. Morgan Emerging Market government bond index. Kuwait was classified as “secondary emerging” status in 2018 in FTSE’s Russell index, and Saudi Arabia is expected to be included in March. Inclusion in these indexes will send tens of billions of dollars pouring into their debt and equity markets, requiring little effort by their governments. But this easy money may hinder economic reform, making growth in 2019 less about liberalization, good governance

and markets ruled by law, and more about capital simply going where indexes tell it to go—where the state is large, with large natural-resource revenues and risk-averse foreign policies, so long as equity and debt markets are integrated into global financial flows. Access to this capital will encourage governments to continue to finance their deficits with international debt issuance, while doing little to spur more organic growth in local private companies. While governments have done some groundwork in order to achieve index inclusion, by regulating their capital markets and exchanges, the harder structural reforms of opening economies and creating a level-playing field for business are far from accomplished. Among the losers will be young entrepreneurs trying to compete with stateowned or state-linked companies, and new firms seeking venture capital. This is bad news for a generation of young Arabs still seething over the grievances that motivated the 2011 Arab uprisings—the

lack of economic mobility, the entrenchment of systems of elite privilege and access, and poor prospects for employment in the private sector. Which countries will attract the largest share of the index-linked capital flows? Some regional favorites are already emerging, and they are not necessarily the states that are working toward real economic reform. Instead of rewarding diversification efforts, index-inclusion may have the effect of leaving some behind. Inflows to Dubai, a beacon of economic openness in the region, are relatively flat, while neighbors seen as safe havens, or at least as low-hanging fruit, are receiving more. Kuwait and Egypt are seeing a greater inflow of foreign capital. Saudi Arabia has been subject to intense variability, the result of the 2017 corruption purge and the backlash over the murder of Jamal Khashoggi. As of October last year, Kuwait had received more than $700 million in net foreign inflows in 2018, more than any

previous year, according to research by EFG-Hermes SAE. This was led by passive inflows from FTSE trackers. Other reasons for increased investment were a low debt-to-GDP ratio, a national budget that breaks even at a low price for oil, a government program to increase infrastructure investment, and (compared to some of its neighbors) a problem-free foreign policy environment. The inflows into Egypt are also related to resource-revenues (specifically, the development of natural gas production for export), improved tourism and the sheer size of the consumer market. Saudi Arabia’s inclusion is expected to drive $16 billion in passive inflows, starting in March. For investors, the inclusion of resource-rich Arab states in emergingmarket indexes will increase their vulnerability to fluctuations in energy prices. Sovereign debt from countries of the Gulf Cooperation Council now accounts for 30 percent of emergingmarket issuance.

From success in selling shoes to building business empires... We thank you for being an inspiration; a role model in valuing diligent work and having a heart for the common Filipino.

The Cabangon family, ALC Group of Companies, and the management and staff of the BusinessMirror salute a man of vision and courage.

Henry Sy Sr.

Chairman Emeritus and Founder, SM Group December 25, 1924 - January 19, 2019 His remains lie in state at The Heritage Park until Wednesday, January 23. Interment will be on Thursday, January 24.

Editor: Efleda P. Campos

Companies BusinessMirror

Wednesday, January 23, 2019

CURRENT DEBT STANDS AT P449.94B

PSALM settles ₧78.66-B obligation by end of 2018

By Lenie Lectura

@llectura

HE Power Sector Assets and Liabilities Management Corp. (PSALM) trimmed its financial liabilities by P78 billion last year.

lion,” PSALM said. The state firm explained that for every P1 devaluation to the US dollar, there is an P8-billion increase in PSALM’s financial obligations and forex losses incurred. Under t he E lec t r ic Power Industr y Reform Act (Epira), PSALM is the government agency tasked to repay the debts of the National Power Corp. (NPC). Funds in settling PSALM’s assumed financial obligations are sourced from collections from its power generation, privatization proceeds and universal charge. The bulk of PSALM’s financial

obligations are foreign denominated, with a huge portion based in US dollars. Any devaluation of the peso against the US dollar from time to time contributes to the surge in financial obligations. The commissioning of new power plants at that time also led to the spike in the debts’ interests. It i s pro j e c t e d t h at w it h PSALM’s continuous privatization efforts—including the sale of real-estate assets, collection of universal charge and power-generation proceeds—its financial obligations will further decrease substantially when the corporate life of PSALM ends in 2026.

In 2018, the state firm settled a total of P78.66 billion for maturing obligations broken down into P31.5-billion debts, P29.07 billion in IPP lease obligations and P18.08 billion in interest and other charges. After this, PSALM’s outstand-

ing balance stood at P449.94 billion as of end-2018. The state firm also recorded P25 billion in foreign-exchange losses. “With peso depreciation in 2018 versus end of 2017, total forex impact is around P25 bil-

House committee okays, on 2nd reading, bill reducing power cost by 57¢

Aboitiz debuts water business at 2019 IWA Conference

HE House Committee on Energy approved on Tuesday a consolidated bill that would reduce power costs in the country by at least 57 centavos per kilowatt-hour (kWh) by using Malampaya funds to subsidize the National Power Corp.’s (NPC) stranded debts contract costs of electricity. Party-list Rep. Carlos Roman L. Uybarreta of 1-CARE, vice chairman of the House Committee on Energy, said he expects the House of Representatives to pass the consolidated bill, dubbed as the Murang Kuryente Act, on its third and final reading before Congress adjourns session. Congress is set to take a break starting February 6 to pave the way for the midterm senatorial election. “If all goes well, the House can have the Murang Kuryente Act passed on second reading this week and third and final reading the following week before the House adjourns on Wednesday, February 6,” Uybarreta said in a statement. The technical working group, headed by House Energy Committee Chairman Lord Allan Jay Q. Velasco, consolidated three bills—House Bill 8082, HB 8327 and HB 8352—presented during the panel’s January 22 meeting. Uybarreta and Velasco are principal authors of HB 8082, known as Murang Kuryente Act. Uybarreta told the committee hearing that members of the energy sectors have given their support for the measure. “There could be a 57-centavoper-kWh cut in electricity billings when the Malampaya subsidy becomes effective. The technical working group has completed its task; the House Energy Committee unanimously approved it,” he said in a statement. Under the Electricity Power Industry Reform Act of 2001, or the Epira law, “stranded contract costs of NPC or distribution utility” refer to the excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of such contracts in the market. The same law also defines stranded debts of NPC as “any unpaid financial obligations of NPC which have not been liquidated by the proceeds from the sales and privatization of NPC assets.” In electricity billings, the stranded cost is part of the universal charges, Uybarreta said. Jasper Emmanuel Y. Arcalas

ERC to resolve 640 PSA applications by mid-2020

HE Energy Regulatory Commission (ERC) is doubling efforts to resolve over 600 pending applications for power supply agreements (PSA). ERC Chairman Agnes Devanadera said the agency is targeting to resolve over 640 PSA applications in 18 months. “We are studying how to fasttrack and address the backlog…. We have targets and every commissioner has an ad-hoc committee that’s why we are moving forward. We are better organized,” Devanadera said. The ERC, composed of four commissioners and one chairperson, is the regulatory body performing the combined quasi-judicial, quasi-legislative and administrative functions in the electric industry. “We have pending rules, and since we have new commissioners, we have to hear their side and their comments so our timeline is also affected. We are very active for 2019, so that we will be able to deliver as much as our work now is on housekeeping,” she said. The ERC chief is also hoping the PSA applications of the Manila Electric Co. (Meralco) would be resolved soon. “The commission is a collegial body so the consensus, right now— the sense of the commission—is to wait because the case in the Supreme Court has been included in the calendar several times already. It’s moving, so we are hoping the SC will dispose of that,” she said. Meralco and its power-generation arm, Meralco PowerGen (MGen),

await the long-delayed approval by the ERC of seven PSAs filed three years ago and which have already undergone all the necessary ERC processes and public hearings. T hese seven PSA s, however, also await resolution at the SC. Earlier, a consumer group asked the SC to block ERC approval of the 20 -year PSAs between Meralco and a number of powergeneration companies covering 3,551megawatts (MW). Devanadera had said the seven PSAs are not just pending before the SC, but the division endorsed these to the en banc. This means that the entire SC will hear the case instead of a division. “Since these are being heard at the en banc we might as well wait for it,” she said. She said that if there had been no case filed at the High Tribunal, then the ERC would have long issued a resolution on Meralco’s PSA applications. “Out of deference, both to Congress and to the Supreme Court, we have not acted on Meralco’s PSAs,” the ERC chief said. The SC case stemmed from allegations that ERC officials gave due preference to Meralco by extending the deadline for compliance of the competitive selective process (CSP). The ERC had reset the CSP’s effectivity date from November 6, 2015 to April 30, 2016, exempting the PSAs from undergoing transparent and public bidding ordained in the CSP. It was alleged the ERC moved the deadline allegedly to accommodate Meralco. Lenie Lectura

CPG, Dennis Uy to develop Clarkfield, Pampanga property By VG Cabuag

@villygc

A ABOITIZ InfraCapital Water Business Head Roman Azanza III (center) with National Water Resources Board Executive Director Dr. Sevillo David Jr. (second from right) at the “Efficient 2019” conference. Joining them are (from left): Apo Agua Stakeholder Relations Officer Aldwin Chester Dumago, Apo Agua General Manager Cirilo Almario and Lima Water General Manager Dave Valeriano.

BOITIZ InfraCapital Inc., the fifth leg and newest business venture of the Aboitiz Group, is optimistic on the opportunities the water space has to offer. Aboitiz InfraCapital Water Business Head and Apo Agua President Roman V. Azanza III said the company is beefing up its water portfolio in the next few years and will continue to provide innovative infrastructure solutions that will help sustain the country’s economic growth. The business unit made its debut at the recently concluded “10th Specialist Conference on Efficient Urban Water Management” held at a hotel in Pasay City. Dubbed “Efficient 2019,” the

conference organized by the International Water Association (IWA) was attended by global water experts, thought leaders and practitioners from 27 countries. Environment Secretary Roy Cimatu was one of its keynote speakers. Aboitiz InfraCapital’s subsidiaries include Apo Agua Infrastructura Inc. (Apo Agua), expected to be one of the largest bulk-water projects in the country with a sustainable water source. It is envisioned to provide more than 300 million liters of water per day to over a million Davao residents. “Our Apo Agua project is unique in the Philippines. It’s basically the conjunction of water and power. It’s called the water-energy nexus. So, we’re actually using the water we

tapped from the Tamugan River to power a 2-megawatt [MW] hydroelectric plant sufficient to supply all the power needs of our water treatment plant,” Azanza said. Also included in the company’s water portfolio is Lima Water Corp. (LWC), which provides end-to-end bulk-water service from production to wastewater treatment. It provides industrial and potable water with an 8,700-cu.m. supply capacity to 600 hectares of industrial land. “We have a minority investment with the Balibago Waterworks of [Pampanga]. They’re actually one of the top five water players in the country,” Azanza noted, adding the company serves 150,000 households in 50 water distribution franchises in the Philippines.

GCash, Qwickwire partner to facilitate real-estate payments By Lorenz S. Marasigan @lorenzmarasigan

LOBE Fintech Innovations Inc. (Mynt), the digital finance services arm of Globe Telecom Inc., has partnered with Qwikwire, a cross-boarder payments platform in Southeast Asia, to facilitate real-estate payments via GCash. Under the deal, GCash users may opt to pay for their real-estate dues via the digital money app, saving them from the hassle of

paying through post-dated checks, bank deposits, or through brokers and property developers. “In the next two to three years, I firmly believe that there will be a significant change in how we do payments here in the Philippines. In the same way that most Filipinos skipped having a landline in their households and went straight to owning mobile phones, I think we can go from a society where most doesn’t have a bank account to turning their smartphones into a mobile wallet,” Qwikwire CEO Ray Re-

fundo said on Tuesday. Specifically, the deal will directly benefit customers of property developers DMCI, Century Properties, Italpinas and Revolution Precrafted, among other clients. “Without a doubt, GCash and Qwikwire can perform better than the traditional payments system, since the convenience and accessibility the partnership will create for the customers are based on the latest available technology in the country,” said Anthony Thomas, president of Mynt.

NTONIO-LED Century Properties Group Inc. and Global Gateway Development Corp., a company led by Davao businessman Dennis Uy, will jointly develop a parcel of land in Clarkfield in Pampanga. The companies said it will turn 2.6 hectares out of the 177 hectares of Clark Global City into a mix of residential and office buildings. CPG is the developer of the former property of the International School in Makati. This is CPG’s first development in Clarkfield, a former military base currently being transformed into the country’s next central business district. “We are proud of this joint-venture partnership with GGDC. We look forward to sharing our expertise from 33 years in the real-estate business and bringing our experience from past successes to this project,” CPG Chairman and CEO Jose EB Antonio said. “Century Properties is one with GGDC’s vision of building a green and efficient model city in the North. Our new project together will certainly make a great addition to Clark Global City’s iconic master plan. We are very optimistic about the growth of Clark as the country’s pre-

mier aerotropolis. We hope this is only the first of a series of projects.” The real-estate company is banking on the phenomenal growth of Central Luzon, which has the highest number of occupied housing units; and also Clark, which has emerged as the secondlargest market for office after Metro Manila. With a buildable area of more than 109 hectares, Clark Global City is planned to host office buildings, retail outlets, academic centers, sports centers, an urban park, an iconic tower, in integrated resort and casino, and modern support services and amenities. Clark Global City was previously envisioned as an aviation-focused logistics park exclusively developed by GGDC. When Uy took over in 2017, it renewed its lease agreement over the estate to run until 2085 and amended the master plan with a vision of developing the area as the next CBS by maximizing allowable building heights and floor area ratios, opening additional access points, downsizing the lot cuts to the needs of the market, and welcoming local partners in developing the leasehold. The development has since received strong interest from locators.

Laguna Water signs JVA with Pagsanjan Water District

AGUNA Water, a public-private partnership between the provincial government of Laguna and Manila Water Philippine Ventures, recently signed a joint venture agreement (JVA) with Pagsanjan Water District (Pagwad). In a statement released through Manila Water, under the agreement, Pagwad grants Laguna Water the exclusive right to implement the design, construction, rehabilitation, operation, maintenance, financing, expansion, and management of water supply services and sanitation services in the former’s service area. During the signing of the joint venture, Pagwad General Manager Engineer Alex Paguio said Laguna Water has always been the water district’s partner in addressing concerns on their water services. He said the partnership will help realize its

vision to provide the municipality of Pagsanjan and its environs with safe, clean and potable water supply. Aside from improving the water operations, the joint venture will make sanitation and environmental services, such as septage management, available and accessible to its concessionaires, thus, ensuring the protection of the environment and promoting good health and well-being of communities. With the authority to operate the water and used water services of Pagwad, Laguna Water commits to deliver 24/7 water supply that is compliant with the 2017 Philippine National Standards for Drinking Water. The JVA is also seen to reduce water losses and increase water pressure through various network rehabilitation projects. Jonathan L. Mayuga

Companies BusinessMirror

Wednesday, January 23, 2019

PSE STOCK QUOTATIONS

January 22, 2019

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

ASIA UNITED 59.5 59.6 58.2 59.6 58.2 59.5 7170 423055 BDO UNIBANK 131.5 131.8 131.7 131.8 130 131.8 1765320 232184314 BANK PH ISLANDS 92.5 92.8 91.9 92.8 90.4 92.8 2377040 217680662.5 CHINABANK 27.85 27.95 27.95 28.1 27.85 27.85 143800 4022265 CITYSTATE BANK 5.75 7.59 5.03 7.59 5.03 7.59 400 2780 EAST WEST BANK 12.5 12.56 12.68 12.68 12.32 12.5 356800 4455272 METROBANK 82.15 82.5 82.3 82.5 81.3 82.5 2359690 194061863 PB BANK 12.04 12.4 12.02 12.06 12.02 12.04 1800 21672 PBCOM 21 21.5 21.5 21.5 21.5 21.5 100 2150 PHIL NATL BANK 45.4 45.5 45.7 45.75 45.5 45.5 160500 7325060 PSBANK 59.65 59.7 59.25 59.85 59.25 59.7 17250 1029403.5 PHILTRUST 116 121 120.8 121 120 120 340 41082 RCBC 26.9 27 26.7 27 26.7 27 58900 1589205 SECURITY BANK 174.9 175 177.6 178 174.1 175 547750 95912527 UNION BANK 64.55 65 64.5 65 64.5 64.55 16990 1097788 BRIGHT KINDLE 1.44 1.48 1.48 1.48 1.44 1.48 39000 57330 BDO LEASING 2.27 2.3 2.33 2.33 2.3 2.3 161000 371070 COL FINANCIAL 16.18 16.2 16.18 16.2 16.18 16.2 10300 166666 FERRONOUX HLDG 4.6 4.77 4.61 4.77 4.6 4.77 67000 308810 MEDCO HLDG 0.455 0.465 0.455 0.455 0.455 0.455 20000 9100 NTL REINSURANCE 0.97 0.99 1.04 1.04 0.97 0.99 835000 828670 PHIL STOCK EXCH 179.4 179.9 179.1 179.9 179.1 179.4 2110 379233 SUN LIFE 1800 1815 1805 1805 1800 1800 415 747250 VANTAGE 1.15 1.17 1.17 1.17 1.17 1.17 4000 4680 INDUSTRIAL ALSONS CONS 1.36 1.37 1.38 1.4 1.37 1.37 257000 353950 ABOITIZ POWER 36.8 37.7 37.8 38.15 36.8 36.8 1369700 51356910 BASIC ENERGY 0.239 0.241 0.248 0.249 0.239 0.239 1670000 407150 FIRST GEN 19.5 19.6 19.9 20 19.5 19.5 1059400 20815950 FIRST PHIL HLDG 75.8 75.9 75.95 77.3 75.9 75.9 413880 31715908 MERALCO 368 371.4 363 371.4 363 371.4 273840 100937832 MANILA WATER 27.15 27.2 27.5 27.5 27.2 27.2 1103500 30299830 PETRON 7.75 7.76 7.78 7.84 7.75 7.75 1785300 13890165 PETROENERGY 3.73 3.78 3.73 3.78 3.73 3.78 45000 169700 PHINMA ENERGY 1.22 1.23 1.27 1.27 1.22 1.23 22800000 28292880 PH RESORTS GRP 6.86 6.93 6.98 7 6.75 6.93 614500 4232161 PHX PETROLEUM 10.8 10.98 10.82 10.98 10.8 10.98 10700 115618 PILIPINAS SHELL 46.6 46.7 47.3 48 46.5 46.7 1828000 85634140 SPC POWER 6.28 6.3 6.53 6.53 6.25 6.3 218100 1372885 AGRINURTURE 16.2 16.22 16.36 16.4 16.2 16.22 852700 13893092 CNTRL AZUCARERA 16.3 17 16.32 16.32 16.22 16.3 1800 29342 CENTURY FOOD 15.16 15.46 15.1 15.5 15.1 15.48 42700 657570 DEL MONTE 6.41 6.69 6.62 6.7 6.4 6.4 33000 219345 DNL INDUS 11.66 11.76 11.76 11.76 11.5 11.76 6681700 77877772 EMPERADOR 7.31 7.32 7.49 7.54 7.31 7.32 184100 1358532 SMC FOODANDBEV 92.85 93 91.75 93.35 91.5 93 683180 63511275.5 ALLIANCE SELECT 1.09 1.1 1.1 1.12 1.09 1.1 4234000 4642570 GINEBRA 27.5 28 26.85 28.05 26.85 28 554300 15223815 JOLLIBEE 324.6 325 325 325 322 325 566250 183803708 LIBERTY FLOUR 46.05 50 49.95 50 49.95 50 10200 509990 MACAY HLDG 10.04 10.56 10.56 10.56 10.56 10.56 2000 21120 MAXS GROUP 12.2 12.3 12.48 12.68 12.3 12.3 551100 6883622 MG HLDG 0.173 0.179 0.176 0.179 0.175 0.179 120000 21110 PEPSI COLA 1.43 1.44 1.4 1.44 1.4 1.43 9533000 13504530 SHAKEYS PIZZA 12.14 12.2 12.26 12.5 12.14 12.2 494900 6086362 ROXAS AND CO 1.86 1.87 1.85 1.86 1.82 1.86 190000 350060 RFM CORP 4.7 4.71 4.71 4.71 4.71 4.71 2000 9420 SWIFT FOODS 0.125 0.132 0.126 0.132 0.124 0.132 1460000 183560 UNIV ROBINA 144.4 145 144 145 143.2 145 618170 89332397 VITARICH 2.04 2.05 2.11 2.11 1.98 2.04 14552000 29773850 VICTORIAS 2.32 2.35 2.32 2.32 2.32 2.32 63000 146160 CONCRETE A 62 64.7 64.55 64.7 62 64.7 2890 186213 CONCRETE B 73.05 77.95 70.05 73 70.05 73 70 5080.5 CEMEX HLDG 2.39 2.4 2.39 2.53 2.35 2.4 36330000 89067220 DAVINCI CAPITAL 6.4 6.57 6.49 6.49 6.36 6.4 63500 406686 EAGLE CEMENT 15.62 15.78 15.74 15.86 15.62 15.62 427200 6728600 EEI CORP 8.49 8.5 8.07 8.65 8.07 8.5 2158100 18,301,852( HOLCIM 6.19 6.21 6.2 6.3 6.16 6.19 415800 2581112 MEGAWIDE 17.5 17.58 17.5 17.86 17.36 17.5 2901500 51136728 PHINMA 9.07 9.2 9.07 9.07 9.07 9.07 4000 36280 TKC METALS 0.87 0.9 0.9 0.91 0.87 0.91 26000 22880 VULCAN INDL 1.6 1.61 1.55 1.62 1.55 1.6 5450000 8750280 CHEMPHIL 134 140 140 140 140 140 50 7000 CROWN ASIA 1.76 1.77 1.8 1.8 1.77 1.77 110000 195280 LMG CHEMICALS 4.31 4.4 4.31 4.31 4.3 4.3 10000 43030 MABUHAY VINYL 3.02 3.15 3.14 3.15 3.05 3.15 41000 128990 PRYCE CORP 5.85 6 5.85 5.85 5.85 5.85 100 585 CONCEPCION 41.4 41.45 41.4 41.4 41.4 41.4 500 20700 GREENERGY 2.19 2.2 2.22 2.22 2.15 2.2 3927000 8584630 INTEGRATED MICR 11.8 11.84 12.14 12.14 11.6 11.8 3584700 42480568 IONICS 1.77 1.78 1.77 1.8 1.76 1.77 607000 1076560 PANASONIC 5.7 5.84 5.82 5.85 5.82 5.84 51400 299838 SFA SEMICON 1.44 1.48 1.46 1.49 1.43 1.48 155000 223850 CIRTEK HLDG 31.1 31.3 31.05 31.3 30.9 31.3 73100 2278480 HOLDING & FRIMS ABACORE CAPITAL 0.65 0.66 0.71 0.71 0.65 0.65 28706000 19232970 ASIABEST GROUP 27.1 27.45 28 28.1 26.8 27.5 30600 831425 AYALA CORP 910.5 911 925 929 903 911 886380 807936330 ABOITIZ EQUITY 65.95 66 66.75 68.9 66 66 1362490 91095310.5 ALLIANCE GLOBAL 14.02 14.06 14.08 14.16 13.98 14.06 12669700 177906896 ANSCOR 6.5 6.55 6.5 6.5 6.5 6.5 12000 78000 ANGLO PHIL HLDG 0.76 0.8 0.8 0.8 0.76 0.8 2229000 1695020 ATN HLDG A 1.55 1.56 1.55 1.59 1.52 1.56 38834000 60480950 ATN HLDG B 1.53 1.56 1.56 1.59 1.54 1.56 4741000 7426490 COSCO CAPITAL 7.44 7.45 7.25 7.44 7.25 7.44 1340700 9863152 DMCI HLDG 11.98 12 12.3 12.38 11.98 12 5721700 68964816 FILINVEST DEV 12.6 12.62 12.3 12.6 12.12 12.6 1067800 13230690 FORUM PACIFIC 0.213 0.238 0.238 0.238 0.238 0.238 40000 9520 GT CAPITAL 1035 1045 1039 1045 1022 1045 65835 68368095 HOUSE OF INV 5.92 6 5.92 6 5.92 6 8000 47400 JG SUMMIT 66.3 66.85 67.1 67.2 66 66.85 2514180 167921733.5 JOLLIVILLE HLDG 5.5 5.83 5.5 5.5 5.5 5.5 15000 82500 LODESTAR 0.61 0.62 0.63 0.65 0.6 0.61 67000 41410 LOPEZ HLDG 5.72 5.74 5.69 5.93 5.69 5.74 1555500 9060651 LT GROUP 14.62 14.8 14.82 15 14.6 14.62 1617300 23951866 MABUHAY HLDG 0.61 0.62 0.62 0.62 0.61 0.61 215000 132150 METRO PAC INV 4.89 4.93 4.96 5 4.86 4.93 24365000 120198760 PACIFICA 0.036 0.038 0.038 0.038 0.036 0.036 9300000 335400 PRIME ORION 2.48 2.49 2.56 2.56 2.48 2.49 1203000 3016960 PRIME MEDIA 1.15 1.18 1.15 1.18 1.15 1.18 45000 53070 SOLID GROUP 1.41 1.43 1.43 1.43 1.4 1.43 108000 153780 SM INVESTMENTS 972.5 976 970 982.5 970 976 188100 183488700 SAN MIGUEL CORP 168.2 170 162.5 170 161.2 170 2258200 378499551 SOC RESOURCES 0.83 0.84 0.77 0.83 0.77 0.83 298000 238670 TOP FRONTIER 260 269.8 260 269.8 259.8 269.8 7160 1879534 WELLEX INDUS 0.25 0.255 0.26 0.26 0.25 0.255 1930000 489850 ZEUS HLDG 0.219 0.225 0.225 0.225 0.225 0.225 10000 2250 PROPERTY ARTHALAND CORP 0.87 0.88 0.87 0.9 0.86 0.88 1209000 1059330 ANCHOR LAND 10.62 11.28 11.48 11.48 10.62 10.62 2000 22154 AYALA LAND 44.65 44.7 45.25 45.25 44.4 44.7 10702600 478682640 ARANETA PROP 1.68 1.7 1.67 1.68 1.67 1.68 71000 119090 BELLE CORP 2.62 2.63 2.49 2.7 2.49 2.63 4383000 11,483,130( A BROWN 0.81 0.82 0.85 0.85 0.82 0.82 1598000 1314550 CITYLAND DEVT 0.87 0.9 0.88 0.9 0.88 0.9 10000 8900 CROWN EQUITIES 0.241 0.244 0.25 0.25 0.24 0.241 23620000 5729480 CEBU HLDG 6.3 6.39 6.05 6.3 6.05 6.3 12500 76862 CEB LANDMASTERS 4.17 4.19 4.2 4.2 4.18 4.18 230000 964630 CENTURY PROP 0.45 0.455 0.465 0.465 0.45 0.45 9610000 4360050 CYBER BAY 0.36 0.385 0.37 0.4 0.36 0.36 1280000 468450 DOUBLEDRAGON 20.65 20.7 20.95 21.5 20.7 20.7 517800 10852950 DM WENCESLAO 8.75 8.77 8.74 8.88 8.74 8.75 307800 2711820 EMPIRE EAST 0.495 0.51 0.495 0.5 0.495 0.495 300000 148600 EVER GOTESCO 0.116 0.122 0.116 0.116 0.116 0.116 100000 11600 FILINVEST LAND 1.56 1.57 1.63 1.64 1.56 1.56 20200000 32399790 GLOBAL ESTATE 1.19 1.2 1.22 1.22 1.19 1.19 987000 1185430 8990 HLDG 8.7 8.8 8.78 8.8 8.7 8.8 404800 3541588 PHIL INFRADEV 2.21 2.22 2.19 2.25 2.15 2.22 7681000 16920280 KEPPEL PROP 3.82 4.81 4.82 4.82 4.82 4.82 2000 9640 CITY AND LAND 0.79 0.8 0.8 0.8 0.8 0.8 332000 265600 MEGAWORLD 5.25 5.26 5.34 5.35 5.24 5.25 28509900 150505264 MRC ALLIED 0.425 0.435 0.43 0.435 0.425 0.435 21870000 9370200 PHIL ESTATES 0.455 0.465 0.47 0.475 0.455 0.455 530000 245100 PRIMEX CORP 3.22 3.23 3.39 3.39 3.17 3.23 1075000 3488510 ROBINSONS LAND 23 23.1 23 23.25 22.65 23.05 1247400 28681140 PHIL REALTY 0.41 0.42 0.42 0.42 0.415 0.415 370000 153650 ROCKWELL 2.01 2.02 2 2.02 2 2.02 72000 144040 SHANG PROP 3.12 3.13 3.13 3.13 3.13 3.13 15000 46950 STA LUCIA LAND 1.35 1.38 1.38 1.38 1.35 1.38 657000 894880 SM PRIME HLDG 39.2 39.45 39.7 39.7 38.8 39.45 12354300 486278115 STARMALLS 6.41 6.44 6.1 6.65 6.05 6.41 1094500 6985124 SUNTRUST HOME 0.7 0.73 0.7 0.7 0.7 0.7 2000 1400 PTFC REDEV CORP 38.55 43.95 43.9 43.95 43.9 43.95 1100 48320 VISTA LAND 5.87 5.89 5.91 5.95 5.87 5.88 5720600 33789451 SERVICES ABS CBN 24.3 24.45 23.9 24.5 23.9 24.45 311600 7574060 GMA NETWORK 5.88 5.89 5.9 5.9 5.8 5.88 123200 721099 MANILA BULLETIN 0.345 0.37 0.35 0.35 0.35 0.35 30000 10500 GLOBE TELECOM 2090 2094 2080 2094 2052 2094 21855 45682390 PLDT 1230 1240 1228 1249 1220 1240 65090 80194045 APOLLO GLOBAL 0.04 0.041 0.041 0.041 0.04 0.041 39700000 1591300 DFNN INC 7.1 7.38 7.3 7.39 7.3 7.39 1200 8778 IMPERIAL 1.87 1.99 1.87 1.87 1.87 1.87 5000 9350 ISLAND INFO 0.127 0.13 0.127 0.13 0.126 0.129 4710000 600820 ISM COMM 6.11 6.12 6.03 6.15 5.93 6.11 4292100 25945847 JACKSTONES 3.13 3.19 3.13 3.13 3.13 3.13 5000 15650 NOW CORP 3.67 3.68 3.82 3.85 3.64 3.68 2469000 9199750 TRANSPACIFIC BR 0.44 0.445 0.445 0.455 0.44 0.44 37720000 16867550 PHILWEB 3.12 3.13 3.2 3.2 3.1 3.13 1217000 3808140 2GO GROUP 13.92 13.96 13.88 14 13.86 13.92 52500 730490 ASIAN TERMINALS 14.04 15 14.98 14.98 14.98 14.98 1300 19474 CEBU AIR 82 82.4 82.6 83.4 82 82 189490 15679929.5 CHELSEA 6.65 6.66 6.67 6.7 6.63 6.65 795500 5296827 INTL CONTAINER 106.8 107.5 107.8 109 106.8 107.4 1255010 134666003 LORENZO SHIPPNG 0.81 0.82 0.84 0.84 0.81 0.81 49000 39760 MACROASIA 17.52 17.64 17.54 17.76 17.5 17.64 441500 7768906 METROALLIANCE A 2.06 2.07 2.03 2.07 2 2.07 256000 521350 METROALLIANCE B 2.05 2.25 2.06 2.06 2.05 2.05 6000 12330 PAL HLDG 9 9.05 9 9.05 8.9 9 32200 289545 HARBOR STAR 3.02 3.03 3.01 3.05 2.98 3.02 1822000 5496620 ACESITE HOTEL 1.34 1.37 1.33 1.33 1.32 1.32 25000 33080 BOULEVARD HLDG 0.053 0.054 0.054 0.054 0.052 0.053 45520000 2415520 GRAND PLAZA 10.34 11.98 11.98 11.98 11.98 11.98 100 1198 WATERFRONT 0.73 0.74 0.75 0.75 0.72 0.73 4503000 3266250 FAR EASTERN U 893 959.5 893 893 893 893 6000 5358000 IPEOPLE 10.7 11.16 11.16 11.16 11.16 11.16 700 7812 STI HLDG 0.76 0.77 0.76 0.77 0.75 0.77 3637000 2762880 BERJAYA 3.21 3.25 3.02 3.27 3.01 3.25 1739000 5470090 BLOOMBERRY 10.34 10.36 10.3 10.48 10.22 10.34 2808000 29000600 PACIFIC ONLINE 9.44 9.63 9.43 9.6 9.43 9.6 4300 41076 LEISURE AND RES 3.25 3.3 3.3 3.3 3.23 3.25 555000 1807080 MANILA JOCKEY 4.94 5.09 4.96 5.1 4.95 5.09 69400 344137 PREMIUM LEISURE 0.92 0.93 0.94 0.94 0.92 0.92 7133000 6607260 TRAVELLERS 5.51 5.52 5.5 5.52 5.49 5.51 510700 2810231 METRO RETAIL 2.69 2.7 2.75 2.79 2.7 2.7 2313000 6276540 PUREGOLD 44.95 45 45.75 45.75 44.8 45 2470700 111304800 ROBINSONS RTL 83.5 84 85.65 85.65 83.5 84 104680 8801153.5 PHIL SEVEN CORP 117 121 120 121 116 121 220410 26667740 SSI GROUP 2.38 2.39 2.49 2.49 2.36 2.38 8767000 21082950 WILCON DEPOT 13.22 13.32 13.3 13.7 13.22 13.22 764200 10223114 APC GROUP 0.45 0.455 0.45 0.46 0.44 0.455 4750000 2154600 EASYCALL 15.84 15.88 16.5 16.5 15.24 15.84 179400 2837102 GOLDEN BRIA 340 343 330 355 325.2 340 14040 4800246 IPM HLDG 7.3 7.38 7.38 7.38 7.25 7.25 6000 43860 PRMIERE HORIZON 0.6 - 0.6 0.6 0.6 0.6 62140000 37284000 SBS PHIL CORP 7.58 7.8 7.61 7.8 7.58 7.8 225600 1755535 MINING & OIL ATOK 14.2 14.68 14.88 14.88 14.2 14.68 9900 143572 APEX MINING 1.6 1.62 1.62 1.63 1.6 1.6 565000 908010 ABRA MINING 0.002 0.0022 0.0021 0.0021 0.0021 0.0021 656000000 1377600 ATLAS MINING 2.8 2.88 2.79 2.88 2.79 2.8 249000 704380 BENGUET A 1.32 1.38 1.3 1.33 1.3 1.33 21000 27540 BENGUET B 1.26 1.5 1.26 1.26 1.26 1.26 3000 3780 COAL ASIA HLDG 0.29 0.305 0.29 0.3 0.29 0.3 50000 14900 CENTURY PEAK 2.02 2.03 2.03 2.05 2 2.03 744000 1506260 DIZON MINES 7.79 7.8 7.86 7.95 7.74 7.8 6300 49252 FERRONICKEL 1.52 1.53 1.54 1.57 1.48 1.52 8511000 12899780 GEOGRACE 0.22 0.221 0.219 0.222 0.215 0.22 540000 117130 LEPANTO A 0.121 0.122 0.12 0.121 0.12 0.121 550000 66510 LEPANTO B 0.122 0.127 0.122 0.122 0.122 0.122 20000 2440 MANILA MINING A 0.0071 0.0076 0.0075 0.0075 0.0074 0.0074 12000000 89300 MARCVENTURES 1.17 1.22 1.22 1.22 1.17 1.17 190000 224040 NIHAO 1.02 1.06 1.02 1.06 1.02 1.06 3000 3100 NICKEL ASIA 2.54 2.55 2.53 2.57 2.5 2.54 2968000 7520300 OMICO CORP 0.65 0.69 0.69 0.69 0.69 0.69 67000 46230 ORNTL PENINSULA 1.01 1.02 1.03 1.03 1.01 1.02 380000 388260 PX MINING 4.2 4.21 4.2 4.27 4.18 4.21 2775000 11703000 SEMIRARA MINING 24.45 24.5 24.3 24.75 24.25 24.45 698200 17092005 UNITED PARAGON 0.0067 0.007 0.0068 0.0068 0.0067 0.0067 265000000 1775600 ORNTL PETROL A 0.012 0.013 0.012 0.013 0.012 0.012 28100000 337300 PHILODRILL 0.012 0.013 0.012 0.013 0.012 0.012 120800000 1472500 PHINMA PETRO 3.65 3.79 3.65 3.65 3.65 3.65 17000 62050 PXP ENERGY 14.98 15 15.36 15.36 15 15 1676300 25360044

PREFFERED HOUSE PREF A AC PREF B2 ALCO PREF B DD PREF SMC FB PREF 2 GTCAP PREF B LR PREF MWIDE PREF PNX PREF 3A PCOR PREF 2B SMC PREF 2B SMC PREF 2C SMC PREF 2D SMC PREF 2F SMC PREF 2G SMC PREF 2H SMC PREF 2I

95 494.8 99.05 97.2 971 900 1.01 100.5 100.5 980 74.8 76.2 73.3 74.5 73.2 74 73

PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR GMA HLDG PDR

20 5.68 1.94

SMALL & MEDIUM ENTERPRISES ITALPINAS 5.02 XURPAS 1.47

118.5

-73780 13550 -427255490 54110527 63754464 65000 1902540 2023726 -4575222 -11386164 32784455 74610715.4997 588199 -6899608 -7415880 125000 84896515 252927060 53000 30539705 3,331,009.9997) -908600 237500 12412 683350 846350 175750 5709300 724462 260370 9640 32000 120288611 107500 -60150 -25800 15722985 252260730 -17767736 21054280 15734070 -41000 -689481 -317210 974850 -1118990 8344 1498 5116666.5 24064567 -206014 -10800 -107730 73000 377130 348810 252390 131280 -198409 -61245855 1400835 107650 58510 -3170056 222000 -

96 498 101 98.45 971 900 1.02 100.8 100.9 1000 75.3 76.75 73.9 74.8 74 74 73.35

96 495 100 97.2 971 900 1.02 100.5 100.9 1000 75.3 76.75 73.5 74 73 74 73.3

96 498 100 97.2 971 900 1.02 100.8 100.9 1000 75.3 76.75 73.9 74.8 73 74 73.3

410 13090 53230 590 100 200 22000 240 10 520 500 220 26980 4540 210 13500 7020

39360 6516786 5325813 57410.5 97100 180000 22440 24129 1009 520000 37650 16885 1993671 337560 15470 999000 514666

20.3 5.76

20.25 5.68

21.2 5.78

19.14 5.68

20 5.77

936700 107600

18871513 614668

-8489875 -403447.0003

1.95

1.94

1.99

1.91

1.94

289000

558330

5.05 1.48

4.9 1.57

5.07 1.57

4.9 1.46

5.05 1.47

355000 11128000

1773740 16735020

-25000 346050

118.9

119

118

118.5

7580

898863

HMR brings in Portwest brand amid govt’s ‘BBB’ program By Roderick L. Abad

Contributor

@rodrik_28

ETAIL chain HMR Trading Haus officially launched Portwest, a premium quality and highly durable workwear, in the Philippines at the height of massive infrastructure developments in the country led by President Duterte. Portwest Regional Sales Manager for Middle East and Africa Nigel Player-Bishop said the entry of their brand in the domestic market is timely to such government initiatives. “Everyone [companies and developers] taking part in these grandscale industrial projects should be equipped with the right tools to help ensure efficiency and, more

importantly, safety of all workers involved,” he said. “It’s best that Portwest is a perfect partner to enable the Filipino market to rise up and reach ultimate success with this ‘Build, Build, Build’ program,” added Ria Enriquez, brand manager of HMR. In a sideline interview during their kickoff event held recently at HMR Pioneer in Mandaluyong City,

she told the BusinessMirror that the Irish workwear and personal protective equipment (PPE) brand is changing the game of how occupational safety and health standards compliance is upheld in the country. With over 110 years of experience, Portwest has a wide array of products addressing the safety needs of different businesses and industries. While they can carry the brand’s entire line of offerings being the official partner and distributor here in the Philippines, the executive said they have preselected items based on the demographics of their customers. “So far, we have optimistic response. The items that we did buy to sell off the rack ran out already. People have been buying them because they recognized the quality and the need for quality PPE,” Enriquez said of the positive market reception of Portwest since its soft launch in mid-December last year. The brand manager also revealed they already have a lot of deals in the

pipeline with major players in the construction, real estate and telecommunication industries, as well as in the government sector. “I see this growing and expanding beyond our expectations,” she said. “The market [players] recognize the need and the importance of quality PPE. It means they do pay attention to the safety and the welfare of their workers.” Por t west ’s safet y c lot hing range—high-visibility workwear, flame-resistant and anti-static workwear, safety footwear and PPE—is available for pre-order at all 25 HMR stores nationwide, with merchandise showrooms at its outlets in Pioneer, Mandaluyong and Sucat in Muntinlupa. “We’re looking at two more locations in the north and in the south [of Luzon], where the industrial sector and development projects are strong. We will announce that soon. I think by the second quarter, we’ll see it expanding more,” Enriquez said.

MWSS assures full compliance with SC mandamus on Manila Bay rehab T HE Metropolitan Waterworks and Sewerage System (MWSS) fully supports the plan to rehabilitate Manila Bay and is working to ensure full compliance with the Supreme Court’s continuing mandamus among its private water concessionaires. MWSS Administrator Reynaldo V. Velasco met separately with officials of Manila Water Corp. and Maynilad Water Services Inc. to discuss ways to fast-track the two concessionaires’ compliance with a 10-year-old Supreme Court order. Velasco is asking the two private water concessionaires to adjust their targets for the years 2022-2037. MWSS is among 13 government agencies named in the SC continuing mandamus to report once every three months on the progress of the government cleanup of Manila Bay to make it swimmable. Aside from the SC’s continuing mandamus, the rehabilitation of Manila Bay is in accordance with the Philippine Clean Water Act of 2004, or Republic Act 9275, whose coverage includes water quality management in all bodies of water, including the “abatement and control of pollution from land-based sources.” “This is a welcome move by all parties concerned led by Environment Secretary Roy Cimatu. As I have always emphasized in various

fora, cleaning up Manila Bay is everybody’s concern to include ordinary Filipinos who must embrace selfdiscipline as a way of life,” Velasco said in a statement. He added: “The two concessionaires have agreed to fast-track their road map [in] full compliance [with] the SC mandamus.” Velasco admitted that at present, only 15 percent of water consumers are connected to sewer lines and as provided in the concession agreement, full sewer and sanitation coverage should be 100 percent by 2037. “There was much focus on securing delivery of efficient potable water system over the last 22 years from only 53-percent coverage to 97-percent coverage in Metro Manila and adjoining provinces, such as Rizal and Cavite,” Velasco said. On sewer coverage alone, Manila Water started only with 3 percent in 1997, when it took over the East Zone, he said. “Now it has 20-percent coverage for facilities, which is [a] seven times increase. Maynilad is now operating its P1.7-billion sewage-treatment plant in San Dionisio, Parañaque, as part of its stepped-up support for the Manila Bay cleanup,” Velasco said. To implement its wastewater management program, Manila Water, the East Zone concessionaire, has its Used Water Master Plan. Jonathan L. Mayuga

-47000 42000 100000 2099380 2346830 1008730 7474845 -110392

96 495 100.9 98.45 971 900 1.02 100.5 100.9 1000 75.3 76.75 73.5 74 74 74 73.3

EXHANGE TRADE FUNDS FIRST METRO ETF

16441835.0004 10309504 -2427297.5 8936306 3675575 -7234501 -2458110 -165824 -31975695 5647 2515926 449938 -98280 2069456 -879650 36860854 -13300 2829740 46679072 -3095162 -4144410 -1433472 -1860 25970448 2014490 -27011540 -1687192 3,692,841.9999) -560064 -2296598 -55620 27000 1642090 -4166244 -24460 -905175

96 498 101.9 98 980 905 1.02 100.8 100.9 1020 75.3 76.75 73.85 74.8 74.9 74.3 73.3

WARRANTS LR WARRANT

198135 38870016 -20011886 -2557955 -1769120 54521694.5 535165 1079365 401799 -516398.5 156946 -321821 125750 -

Editor: Efleda P. Campos

FWD LIFE INSURANCE OPENS IMUS CITY BUSINESS HUB Pan-Asian

insurer FWD Life Insurance recently opened its new business hub in Imus City, Cavite. Formally unveiling the company’s newest office are executives of FWD Life Philippines (from left) Head of Marketing Roche Vandenberghe, Chief Distribution Officer John Johnson, President and CEO Peter Grimes, and Chief Financial Officer Jasper Cheng. The new business hub is located at G/F VMI Building, Emilio Aguinaldo Highway, Palico 1, Imus City, Cavite.

MUTUAL FUNDS

January 22, 2019

NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D PER SHARE RETURN* RETURN STOCK FUNDS ALFM GROWTH FUND, INC * 266.85 -11.82% 6.59% 3.85% 5.8% ATRAM ALPHA OPPORTUNITY FUND, INC.* 1.4789 -9.29% 14.25% 3.63% 2.64% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC.* 4.1372 -12.93% 9.05% 2.21% 6% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP.* 0.9562 -5.87% N.A. N.A. 7.38% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC.* 0.8762 N.A. N.A. N.A. 6.76% FIRST METRO SAVE AND LEARN EQUITY FUND,INC.* 5.5775 -9.28% 6.32% 3.01% 5.81% MBG EQUITY INVESTMENT FUND, INC. * 122.79 4.13% N.A. N.A. 5.44% ONE WEALTHY NATION FUND, INC.* 0.8893 -13.05% -3.08% N.A. 6.84% PAMI EQUITY INDEX FUND, INC.* 52.6706 -9.94% 8.49% N.A. 7.04% PHILAM STRATEGIC GROWTH FUND, INC.* 547.38 -10.33% 6.47% 3.08% 6.34% PHILEQUITY DIVIDEND YIELD FUND, INC.* 1.3253 -7.98% 7.74% N.A. 5.69% PHILEQUITY FUND, INC.* 38.9666 -8.24% 9.08% 5.65% 6.37% PHILEQUITY MSCI PHILIPPINE INDEX FUND, INC.* **** 1.051 N.A. N.A. N.A. N.A. PHILEQUITY PSE INDEX FUND INC.* 5.3166 -9.96% 9.43% 5.77% 7.22% PHILIPPINE STOCK INDEX FUND CORP.* 888.12 -9.76% 9.42% 5.84% 7.2% SOLDIVO STRATEGIC GROWTH FUND, INC. * 0.9086 -9.07% 5.83% N.A. 5.5% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC.* 4.2984 -9.51% 8.75% 4.14% 5.9% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC.* 1.0226 -10.07% 9.16% N.A. 7.16% UNITED FUND, INC.* 3.69 -6.83% 10.57% 4.52% 5.4% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC.* ***^ 118.7241 -9.43% 10.61% 6.93% 7.2% ATRAM ASIAPLUS EQUITY FUND, INC.** $0.9693 -17.13% 7.66% 0.41% 4.33% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC.* $1.1878 -10.14% N.A. N.A. 7.48% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC.* 1.7295 -9.55% 2.12% -0.15% 4.74% ATRAM PHILIPPINE BALANCED FUND, INC.* 2.2976 -8.42% 5.14% 1.77% 4% FIRST METRO SAVE AND LEARN BALANCED FUND INC.* 2.6533 -5.3% 2.88% -0.4% 4.3% GREPALIFE BALANCED FUND CORPORATION* 1.3609 -8.68% N.A. N.A. 4.34% NCM MUTUAL FUND OF THE PHILS., INC* 1.9098 -6.05% 4.29% 2.68% 3.62% PAMI HORIZON FUND, INC.* 3.6261 -9.75% 2.83% 1.62% 2.74% PHILAM FUND, INC.* 16.4333 -8.54% 3.11% 1.7% 3.3% SOLIDARITAS FUND, INC.* 2.15 -6.12% 4.43% 3.54% 3.75% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC.* 3.8079 -7.16% 4.54% 2.43% 4.29% SUN LIFE PROSPERITY DYNAMIC FUND, INC.* 0.9641 -7.48% 4.04% N.A. 4.6% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC.* $0.03544 -1.58% 0.04% 1.7% 0.54% PAMI ASIA BALANCED FUND, INC.* $0.9561 -12.2% 5.57% -0.69% 2.13% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC.* $3.4825 -7.63% 6.35% 1.57% 5.26% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC.* $1.0433 -8% N.A. N.A. 3.3% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC.* 344.31 2.03% 2.15% 2.01% 0.27% ATRAM CORPORATE BOND FUND, INC.* ^^ 1.8583 -1.99% -0.5% -0.4% -0.05% COCOLIFE FIXED INCOME FUND, INC.* 2.981 5.5% 5.4% 5.28% 0.34% EKKLESIA MUTUAL FUND INC.* 2.1408 1.5% 1.69% 1.74% 0.48% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC.* 2.2227 0.16% 0.34% 0.32% 0.61% GREPALIFE FIXED INCOME FUND CORP.* P 1.5873 -1.7% N.A. -0.31% 1.46% PHILAM BOND FUND, INC.* 3.8756 -4.23% -0.72% -0.17% -1.13% PHILEQUITY PESO BOND FUND, INC.* 3.5619 1.61% 1.13% 0.81% 1.27% SOLDIVO BOND FUND, INC. * 0.9085 -1.47% -0.01% N.A. 1.78% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC.* 2.8091 0.83% 1.72% 1.13% 1.56% SUN LIFE PROSPERITY GS FUND, INC.* 1.5632 0.5% 1.35% 0.67% 1.51% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. * $449.27 0.78% 2.27% 3.05% 0.22% ALFM EURO BOND FUND, INC. * Є213.01 -0.37% 1.16% 1.54% 0.17% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC.** $1.1338 0.15% 1.09% 2% 0.71% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC.* $0.0249 - 0.4% 0.82% N.A. 0.4% GREPALIFE DOLLAR BOND FUND CORP.* $1.6922 -4.36% -0.57% 1.06% 0.12% MAA PRIVILEGE DOLLAR FIXED INCOME FUND, INC. N.S. N.S. N.S. N.S. N.S. MAA PRIVILEGE EURO FIXED INCOME FUND, INC. ЄN.S. N.S. N.S. N.S. N.S. PAMI GLOBAL BOND FUND, INC* $1.0369 -2.78% -0.72% -2.33% -0.07% PHILAM DOLLAR BOND FUND, INC.* $2.1931 -2.27% 1% 2.8% 1.01% PHILEQUITY DOLLAR INCOME FUND INC.* $0.0571051 0.11% 0.93% 1.84% 0.22% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC.* $2.8916 -3.76% 0.35% 1.77% 0.68% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC.* 121.32 3.04% 1.97% 1.64% 0.4% PHILAM MANAGED INCOME FUND, INC.* 1.1818 1.94% 0.75% 0.51% -0.01% SUN LIFE PROSPERITY MONEY MARKET FUND, INC.* 1.2218 2.77% 2.31% 1.66% 0.23% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC.* $1.0173 1.82% N.A. N.A. 0.14% * - NAVPS AS OF THE PREVIOUS BANKING DAY ** - NAVPS AS OF TWO BANKING DAYS AGO *** - LISTED IN THE PSE. **** - RE-CLASSIFIED INTO A BALANCED FUND STARTING JANUARY 1, 2017 (FORMERLY GREPALIFE BOND FUND CORP.). ***** - LAUNCH DATE IS NOVEMBER 6, 2017 ****** - LAUNCH DATE IS JANUARY 08, 2018 ******** - RENAMING OF THE FUND WAS APPROVED BY THE SEC LAST APRIL 13, 2018. ********* - BECAME A MEMBER SINCE APRIL 20, 2018. ******* - ADJUSTED DUE TO CASH DIVIDEND ISSUANCE LAST JANUARY 29, 2018

www.businessmirror.com.ph | Editor: Angel R. Calso

The World

Oil halts gains as economic risks assessed against Opec+ curbs

il halted gains near a twomonth high as investors weighed concerns over outlook for the global economy against the Opec+ coalition’s performance on pledged output cuts. Futures in New York fell 0.7 percent from the close on Friday, when it added 3.3 percent. Bullish signals from the Organization of the Petroleum Exporting Countries and its allies on supply curbs have eased investor fears of a glut. Still, trade and political tensions are weighing on prices. Chinese President Xi Jinping signaled fresh concerns about the implications of a slowing economy while the International Monetary Fund (IMP) cut its global growth forecast. Oil’s off to the best start in 18 years after a slump in the last quarter as Opec and its partners bega n new product ion curbs aimed at removing 1.2 million barrels a day from the market through June. A drop in the number of rigs drilling for oil in the US to the lowest since May have also eased worries about a glut from record-breaking shale flows. Yet, concerns linger after China’s economy expanded at the slowest annual pace since 1990. “Concerns about excess supply have been eased for the time being thanks to Opec’s production cuts, led by Saudi Arabia,” said Kei Kobashi, a senior analyst at Sumitomo Corporation Global Research Co. “Now, the demand side is called in question. People are trying to figure out how much China’s and the world’s crude demand will fall.” West Texas Intermediate (WTI) crude for February delivery, which

expires on Tuesday, was at $53.43 a barrel on the New York Mercantile Exchange, down 37 cents, at 4:36 p.m. in Tokyo. The more active March contract fell 35 cents to $53.69. There was no settlement on Monday because of the Martin Luther King Jr. holiday in the US. All transactions will be booked on Tuesday. Brent for March settlement declined 42 cents to $62.32 a barrel on the London-based ICE Futures Europe exchange. The contract rose 4 cents to $62.74 on Monday. The global benchmark crude was at an $8.57 premium to WTI for the same month. The IMF on Monday lowered its forecast for the world economy for a second time in three months. The lender now predicts global growth of 3.5 percent this year, down from 3.7 percent expected in October and the weakest in three years. The fund warned fresh trade tensions would spell further trouble. Meanwhile, Xi urged the Communist Party needed greater efforts “to prevent and resolve major risks,” according to the official Xinhua News Agency. He made the remarks on the same day that China reported its quarterly economic growth fell to 6.4 percent, the weakest since 2009. Opec last week published output targets by country in the first half of 2019 in an effort to quash skepticism over production curbs. Still, International Energy Agency data suggested the group’s compliance jumped in December while non-Opec’s adherence rate fell to the lowest since they started such cuts in 2017. Bloomberg News

French data watchdog slaps Google with $57-M fine under new E.U. law

ARIS—France’s data privacy watchdog fined Google €50 million ($57 million) on Monday, the first penalty for a US tech giant under new European data privacy rules that took effect last year. The National Data Protection Commission said it fined the US Internet giant for “lack of transparency, inadequate information and lack of valid consent” regarding ad personalization for users. It’s one of the biggest regulatory enforcement actions since the European Union’s (EU) General Data Protection Regulation, or GDPR, came into force last May. The rules are aimed at clarifying individual rights to personal data collected by companies, which are required to use plain language to explain what they’re doing with it. Even though many tech multinationals like Google are headquartered in the US, they still have to comply with the new rules because they have millions of users in Europe.

The commission said Google users were “not sufficiently informed” about what they were agreeing to as the company collected data for targeted advertisements. Users have to take too many steps, “sometimes up to five or six actions,” to find out how and why their data is being used, the commission said. Google’s description of why it’s processing their data is “described in a too generic and vague manner,” it added. The company’s infringements “deprive the users of essential guarantees regarding processing operations that can reveal important parts of their private life,” the commission said. The commission acted on complaints by two data protection advocacy groups, NOYB.EU and La Quadrature du Net, filed immediately after GDPR took effect. Google said in a statement it is “deeply committed” to transparency and user control, as well as GDPR consent requirements. “We’re studying the decision to determine our next steps,” it said. AP

China demands U.S. drop Huawei extradition request with Canada

EIJING—China on Tuesday demanded the US drop a request that Canada extradite a top executive of the tech giant Huawei, shifting blame to Washington in a case that has severely damaged Beijing’s relations with Ottawa. Foreign Ministr y Spokesman Hua Chunying said Meng Wanzhou’s case was out of the ordinary, and Canada’s extradition treaty with the US infringed on the “safety and legitimate rights and interests of Chinese citizens.” Hua said China demands that the US withdraw the arrest warrant against Meng and “not make a formal extradition request to the Canadian side.” Hua’s remarks come after more than 100 academics and former diplomats signed a letter calling on China to release two Canadians detained in apparent retaliation for Meng’s arrest. They also follow a report by the Canadian newspaper Globe and Mail that the US plans to formally request Meng’s extradition to face charges that she committed fraud by misleading banks about Huawei’s business dealings in Iran. China detained former Canadian

diplomat Michael Kovrig and Canadian entrepreneur Michael Spavor on December 10 in an apparent attempt to pressure Canada to release Meng, who was arrested last December 1 at the request of US authorities. Meng is Huawei’s chief financial officer and the daughter of its founder, Ren Zhengfei. Huawei has close ties to China’s military and is considered one of the country’s most successful international enterprises, operating in the high-tech sphere where China hopes to establish dominance. The letter signed by academics and former diplomats said the arrests of the two will lead to “less dialogue and greater distrust, and undermine efforts to manage disagreements and identify common ground. Both China and the rest of the world will be worse off as a result.” More than 20 diplomats from seven countries and more than 100 scholars and academics from 19 countries signed. Meng is living under house arrest in her Vancouver mansion while her case is under deliberation. Kovrig and Spavor are being held in Chinese jails and have yet to be granted access to lawyers, according to those who have contact with them. AP

BusinessMirror

Wednesday, January 23, 2019

Survey shows CEO pessimism on economy after upbeat 2018

AVOS, Switzerland—A survey of hundreds of corporate leaders shows “a record jump in pessimism” about the world economy, with sentiment doused by trade spats, a global downturn and fading benefits from US President Donald J. Trump’s tax cuts. Consulting firm PwC says the latest edition of its annual survey of CEOs found 30 percent feel grow th w ill decline this year, a sixfold increase from a year earlier—when 57 percent were optimistic. The survey, released on Monday

on the eve of the World Economic Forum opening in Davos, Switzerland, tallies responses from more than 1,300 CEOs worldwide and is billed as a good predictor of economic results. In an interview, PwC Chairman Bob Moritz said: “There’s

a not-surprising increase in the amount of pessimism from the CEOs and the global economy as they look at the next 12 months.” He said “confidence is waning” amid rising trade tensions and protectionism. Thirty-five percent of CEOs cited the perennial concern about overregulation as the top threat to their businesses. But “policy uncertainty”—a new metric introduced this year—came a close second, the survey found. T he sur vey of CEOs in 91 ter r itor ies was conducted online, in person and by phone last September and October. The souring mood was perhaps most pronounced about the United States: The survey found a 41-percentage-point drop in CEOs choosing the US as a top market for growth, and optimism

among North American executives dropped the most sharply—from 63 percent to 37 percent. Moritz suggested that the US dominance in world affairs isn’t what it once was, noting how the center of gravity of capital markets had been the US over nearly the last half-century. “Now you’ve got it shifting a little bit more east” to China and other parts of Asia, he said. The Trump administration’s salvos over trade with China and other key trading partners have taken a bite: PwC found that 98 percent of US CEOs and nine in 10 Chinese counterparts voiced concerns about the US-China trade issues. Moritz also pointed to uncertainty about Brexit, saying simply: “You never know where these things are going to go.” AP

Brexit forces finance companies to leave London

wo key markets are movi n g out of t he Un ite d Kingdom as Brexit forces finance firms to put more of the region’s trading infrastructure on the continent. CME Group Inc. will move its foreign-exchange forwards and swaps venue, which has trading volumes of about $15 billion a day, from London to Amsterdam, while Cboe Global Markets Inc. will shift most European equities trading to its market in the Dutch capital after Brexit. The latest moves follow CME’s decision last year to move its €200-billion-a-day ($227 billion) short-term financing market to Amsterdam. As trading venues shift activity to the continent to comply with requirements that European trading is conducted on

an approved European market, Cboe is heading toward Amsterdam to protect liquidity. “We are splitting rather than duplicating stock trading to avoid a fragmentation in liquidit y, which could disrupt the market,’’ David Howson, chief operating officer at Cboe Europe, said in an interview. Firms trading European equities on Cboe’s markets—currently the continent’s busiest—will have to connect to the Amsterdam venue. Cboe handles €7 billion ($8 billion) of European stock trades every day. Its London business will continue to oversee €3 billion of daily Swiss and UK stock trades. Transaction fees that currently generate tax revenue for the UK Treasury will in future go to the Dutch authorities.

Cboe will test its enlarged Amsterdam market in February and March, according to Howson, and the vast majority of clients are preparing to trade there. About 10 people will be located in the city, a mixture of secondees and new staff, he said.

Gaining currency

CME’s FX division EBS, which it acquired as part of the takeover of NEX Group Plc. last year, handles about $15 billion of forwards and swaps trades per day on its trading venue, according to people familiar with the matter. A CME spokesman said that the company’s Amsterdambased multilateral trading facility will begin trading forwards and swaps on March 18. The UK is currently on track to leave the

European Union on March 29. EBS’s spot FX market, one of the world’s biggest with $76 billion of trades a day, will remain in London, the spokesman said. FX forwards and swaps allow companies to protect themselves against future swings in the value of currencies. With Brexit developments likely to move the pound against the euro this year, CME expects its market for these derivatives to grow. CME’s fixed-income division BrokerTec announced late last year that it would move its €200-billion-per-day European repo market and its smaller European government bond market to Amsterdam in time for Brexit. CME and Cboe are both still awaiting reg u lator y approva l from the Dutch Authority for the Financial Markets. Bloomberg News

Tokyo court rejects ex-Nissan chairman Ghosn’s bail request

OKYO—A Tokyo court has rejected for mer Nissan Chairman Carlos Ghosn’s latest request for bail, more than two months after his arrest, prolonging a detention that has drawn international scrutiny of Japan’s justice system. The decision by the Tokyo District Court came a day after Ghosn promised to wear an electronic monitoring ankle bracelet, give up his passport and pay for security guards approved by prosecutors to gain release from a Tokyo detention center. The court announced its decision in a statement. His family said they will appeal. Ghosn, 64, has been in custody since November 19. He had a bail hearing Monday. A Tokyo court rejected an earlier request for bail last week. Ghosn, who led Nissan Motor Co. for two decades, has been charged with falsifying financial reports in underreporting his compensation from Nissan over eight years, and with breach of trust, centering on allegations Ghosn had Nissan temporarily shoulder his personal investment losses and pay a Saudi businessman. Ghosn has said he is innocent, explaining that the alleged compensation was never decided, Nissan didn’t suffer losses and the payment was for legitimate services. His wife Carole Ghosn appealed for his release through Human Rights Watch earlier this month, saying Ghosn’s treatment has been harsh and unfair. Her views echo widespread criticism of Japan’s criminal justice system both inside and outside Japan. Suspects who insist

In this file photo, then-Renault-Nissan CEO Carlos Ghosn speaks during a press conference held at Auto China 2016 in Beijing, China. A court in Tokyo on Tuesday rejected Ghosn’s latest request for bail, made more than two months after his arrest, prolonging a detention that has brought Japan’s harsh justice system under international scrutiny. AP/Ng Han Guan

they are innocent get held longer. Suspects are held in a cell and routinely grilled daily by investigators without a lawyer present, although lawyers are allowed to visit. Ghosn’s lawyer Motonari Ohtsuru has acknowledged Ghosn’s

release may not come until the trial, which may be six months away. A date for the trial has not been set. Nissan officials say an internal investigation has found that Ghosn had schemes to hide

his income and that he used company money and assets for personal gain. A special committee Nissan set up after Ghosn’s arrest to strengthen governance held its first meeting on Sunday. Seiichiro Nishioka, a former judge and cochairman, told reporters after the meeting that Ghosn had shown questionable ethics, and too much power within the company had been focused in one person. The committee’s findings are due by late March. Ghosn’s pay was long a sticking point in Japan, where executives generally get paid far less than their American and other Western counterparts. Ghosn insisted he deserved his higher pay because of his achievements, saying he could have left for another job. Nissan was on the verge of bankruptcy when alliance partner Renault SA of France sent in Ghosn to help revive it in 1999. Under Ghosn’s leadership, Nissan turned itself around and became one of the most successful auto groups in the world. Ghosn also helped Nissan pioneer ecological auto technology. The Nissan Leaf is the top-selling electric car. AP

B4 Wednesday, January 23, 2019

SM scholars launch own program AUTOKID TRUCK SOLUTIONS INTRODUCES JAMES DEAKIN AS BRAND AMBASSASOR

‘W

E’re honored and thrilled to have James Deakin represent the Autokid brand. We believe that he is the perfect fit for the brand, as he is a great authoritative hero in the transportation industry in the Philippines— something that we’ve always strived to be. We strongly believe in empowering our customers with the right truck-related products and services for their business,” Marvin Tiu Lim, president of Autokid Truck Solutions, said in the media presentation and contract signing held on January 17 at the Prime Hotel in Quezon City. Manila-based American automotive journalist James Deakin is known for his no-holds-barred

WO weeks before he passed away, SM patriarch Henry Sy Sr., together with his wife Felicidad Sy, eldest daughter Tessie Sy-Coson and youngest son Harley, honored the alumni of SM Foundation with a homecoming celebration. The alumni gifted him with the “Scholars for Scholars” project and handed over to SM Foundation Executive Director Debbie Sy a seed fund of P104,000 as their initial contribution to the foundation’s scholarship program. They said this is their way of sharing the same generosity that they once got from the Sy family. Later, the movement’s founders—Loida de Vera, Ellyson Bala, Emylou ManitCaldazo, Novelyn Deboso-Denoso and Jeffrey Manhila—distributed voluntary pledge forms to encourage other graduates to do the same. The alumni came from all over the country and from abroad, and to pay tribute to their benefactors and vowed to pay forward with their own scholarship. The Iloilo alumni said they have been thinking of doing the fund-raising and sponsoring Iloilo-based scholars themselves. Already, some have been sponsoring a student or two to high school and in college. Now enjoying the fruits of their

scholarship and sharing thier blessings to others are Fritz Mendez, Batch 2014, accounting technology, currently employed at Banco de Oro; Arthur Sequena, Batch 2007, computer engineering, teaching at Iloilo City Community College; Jeff Moises Hontoria, Batch 2018, accounting technology, an elected Sanggunian Kabataan chairman in Balabag, Iloilo; and Medelyn B. Giner, Batch 2013, accounting technology, working with the Land Bank of the Philippines. B aguio alum ni also c am e in f ull f o r c e. They ar e R o t her J o n B o b i les ( B SIT) , M i guel M ar t i nez ( B SEC E) , R i t c he F lo r es ( B SF M A ) , M ar k J o sep h A lc o z er ( B S A c c o unt anc y ) and A r vin J ay Gaw, who eac h shar ed ho w t hei r educ at i o n has t o t ally t r ansf o r m ed t hem int o r esp o nsi b le c i t iz ens o f t heir c o m m unit y . Ma. Cristina Cabandi attended the reunion on an extended family Christmas vacation in the Philippines. Cabandi, a mathematics graduate, teaches abacus on a part-time basis, as she attends to her growing family in Georgia, United States. She intends to go back to full-time teaching in the near future. Photo shows de Vera and her team presenting the Scholars for Scholars tree to the Sy family.

commentaries on the state of transportation and traffic in Metro Manila. Autokid believes he is the fitting automotive expert to represent the company. Autokid Truck Solutions aims to advance the trucking industry with its top-of-the-line products and truck-repair services. Autokid Premium Trucks cater to those investing in brand new trucks for demanding business needs. There are tractors, transit mixers, cargos and dump trucks from leading brands, like Dongfeng, Foton and Howo. Autokid also carries Truckstop, its comprehensive truck parts and accessories center. There’s a wide range of brand new and original spare truck parts for many brands, including those under their Premium Trucks line and other brands, like Isuzu, Mitsubishi and Hino, among others. Autokid houses its own Service Care center. Located at Autokid Santa Rita in Guiguinto, Bulacan, it offers truck-repair services so that businesses can go further. To k now more about its line of products and services, visit https://www.autokid.com.ph. Also read about different trucking solutions at https://www.autokid. com.ph/blog. In photo are (from left) Kevin Mchale Yao, Autokid chief executive officer; Lim; Deakin; and Eric Daryl Lim, Autokid vice president.

THIS TSITSIPAS’S NO FLUKE M

ELBOURNE, Australia—Lest anyone get the idea that Stefanos Tsitsipas’s upset of Roger Federer was a fluke, the 20-year-old from Greece followed it up by beating No. 22 seed Roberto Bautista Agut, 7-5, 4-6, 6-4, 7-6 (2), at the Australian Open on Tuesday to become the youngest Grand Slam semifinalist since 2007. “That was a great win. It got people’s attention,” Tsitsipas said about his fourth-round stunner against two-time defending champion Federer on Sunday. “My biggest challenge was to stay concentrated, stay focused,” in order to show that the previous victory “didn’t happen accidentally.” Cheered on by a loud, flag-waving contingent of Greek fans inside and outside Rod Laver Arena, Tsitsipas again displayed his varied skill set, with 22

aces, 30 more winners than unforced errors (68-38) and a nose for getting to the net. He was down a break in both the first and third sets before turning them around against Bautista Agut, whose run to the quarterfinals included victories over Andy Murray, a three-time major champion, and Marin Cilic, the 2014 US Open champion and the runner-up to Federer at Melbourne Park a year ago. “Well, he’s a good player, no? He’s very complete. He has a good forehand and backhand. He’s serving well,” Bautista Agut said about Tsitsipas. “I think he knows the game. He knows how to play.” Now the 14th-seeded Tsitsipas gets to continue the

best showing of his career, one that marks him as perhaps the sport’s next big thing. And make no mistake about it: He is a millennial, through and through, even promoting his 27,000-follower YouTube channel during his on-court interview. “Guys,” he told the crowd, “if you haven’t subscribed, please subscribe.” No man as young as Tsitsipas had been this far at any Grand Slam tournament since Novak Djokovic at the 2007 US Open or at the Australian Open since Andy Roddick in 2003. “It all feels like a fairy tale, almost. I’m just living the dream, living what I’ve been working hard for,” said Tsitsipas,

who dropped his racket, fell on his back and covered his face with his hands at match’s end. “I mean, I feel a bit emotional but not too much because I know I worked hard to get here.” Seated in his courtside guest box were his parents and two siblings, along with Patrick Mouratoglou, who is Serena Williams’s coach and serves as a mentor to Tsitsipas. Now they’ll turn their attention to his next opponent, either 17-time major champion Rafael Nadal or another up-andcoming member of the sport’s new generation, 21-year-old American Frances Tiafoe. Nadal and Tiafoe were scheduled to play their quarterfinal on Tuesday night. AP

Sports BusinessMirror

| Wednesday, January 23, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

SMASHIN’ RACKETS By Howard Fendrich The Associated Press

ELBOURNE, Australia—Way behind in a match he soon would lose, Alexander Zverev leaned forward in his Australian Open sideline seat to repeatedly, and violently, crack his racket against the court with a reverberating Thwack—one, two, three, four, five, six, seven, eight times in all, before throwing down the offending, and now-mangled, piece of equipment. Caused quite a, well, racket. “I heard it,” said Zverev’s opponent Monday, 2016 Wimbledon finalist Milos Raonic. “I don’t think I looked over. I think it was pretty clear what was going on.” It certainly was not unusual. Smashing, spiking, bouncing or otherwise harming rackets is the most public form of anger, um, mismanagement in professional tennis, done all the time by all kinds of players, whether they are men or women, famous or unknown, seeded or otherwise, winning or losing. Over the first week of the Australian Open, Naomi Osaka, Dominic Thiem, Ryan Harrison and Daniil Medvedev, just to name a few, joined Zverev in producing GIF-worthy outbursts. For better or for worse, racket-breaking is as inescapable an element of the sport as forehands and backhands, often revealing frustration, sometimes reversing the course of a contest, usually resulting in a fine of thousands of dollars, and even—as was the case with Serena Williams during her US Open final loss to Osaka last September— occasionally costing a player a point (in Williams’s case, because of an earlier warning). “I love it!” exclaimed Henri Leconte, the 1988 French Open runner-up. “I mean, sure, it’s not good for kids to see,” he said. “But sometimes, it’s very important to show emotion.... In my generation, we had so many players who did that: John McEnroe was doing it a lot; Goran Ivanisevic was breaking rackets. Sometimes, when you see your opponent doing that, you say: ‘Oh, he’s really upset. That’s good.’ But if you were playing McEnroe, you were in trouble, because he played better afterward.” Current players will cite McEnroe or Andy Roddick or Marat Safin, among others, when the subject is raised. They’ll talk about all-time classic displays, such as three-time major champion Stan Wawrinka’s signature move of bending a racket in half over his knee, the way a Major League Baseball slugger might try to break a bat. Or Marcos Baghdatis reaching into his bag for additional rackets during a changeover at the 2012 Australian Open (in a match against Wawrinka), until he’d slammed four and discarded them. Or Benoit Paire and his multiple-racket, sittingthen-standing tantrum (in a match against Baghdatis) that drew $16,500 in fines, more than double his prize money from last year’s Washington tournament.

STEFANOS TSITSIPAS resumes his giant-killing ways in Melbourne. AP

GERMANY’S Alexander Zverev smashes his racket in frustration during his fourth-round match on Monday as Spain’s Pablo Carreno Busta does the same but with his bag also in frustration after losing to Japan’s Kei Nishikori. AP

“If we see a guy break a racket, someone will say to me, ‘Ah, yours was better,’” said Baghdatis, the 2006 runner-up in Melbourne. “There are worse things. For me, it’s something that it’s fun to see. It’s good for tennis. There is some character, and it should be like that,” he said. “You have a bad day at the office, [and] you have a fight with your wife. You have a fight with your brother, your mother, your sister, your father. It’s the way life is. Sometimes you have bad days, and it just comes out.” Leconte is hardly the only one who wonders about what sort of example is being set for children who are watching, especially those who play tennis. “It’s become all too commonplace. And it seems like other players see it happening and they think, ‘Oh, this is OK to do.’ I think it’s bad modeling, and the rackets are obviously expensive,” said Tracy Austin, the 1979 and 1981 US Open champion. “Emoting is good. We want to see personalities. But actually being

destructive is not helpful for anybody.” Ernests Gulbis, a former top-10 player known for raising racket abuse to an art form, says he wishes he could avoid ever doing it again. He also admits that’s not likely. “Sometimes the emotions just take over. It’s a fight. It’s like a gladiator fight. It’s not like you’re lying in bed and can just be relaxed,” Gulbis said. “Emotions just come out. I’m against it, personally, because you can fix your problems on court in a different way. But to be honest, sometimes it helps.” That’s a popular take. “It made me feel better. I was very angry, so I let my anger out,” Zverev said on Monday. Didn’t do him a bit of good on the scoreboard, though. He was trailing Raonic, 6-1, 4-1, when he destroyed his racket at a changeover, then proceeded to drop the next two games and the third set, too. But Osaka, who’ll play in the quarterfinals Wednesday, did appear to get a boost from her racket fling while losing the opening set of what became a three-set victory. “For me, I tend to keep a lot of things

bottled up. I just felt like, in that moment, sort of releasing it was easier than just keeping it inside,” Osaka said, “and then maybe I would have dwelled on it for longer.” Top-ranked Novak Djokovic is a firm believer that the direction of a match can change with a well-timed to-do. So the 14-time Grand Slam champion is hardly shy about chucking the tool of his trade when the inspiration strikes. “At times in my career, these kind of situations, when I would scream or throw a racket, it would kind of wake me up and help me to just kind of free myself from that pressure that is just building throughout the match,” Djokovic said. “But there are times when it doesn’t help.” Crowd reactions vary. Fans are sometimes seen begging a player to hand over a messed-up racket as a keepsake. Yet when Djokovic shattered a frame by pounding it against the French Open’s red clay last year, spectators whistled and booed. “I’m not proud of doing that, to be honest. I don’t like doing that,” he said. “But at times, it happens.”

Tennis trailblazer Li Na sees some similarities with Osaka

ELBOURNE, Australia—Li Na saw much of herself in a young player on the women’s tour early last year. The two-time Grand Slam champion didn’t hesitate to identify Japan’s Naomi Osaka as the player with a bright future. So Li, set to be inducted into the International Tennis Hall of Fame in July along with fellow former Australian Open champions Mary Pierce and Yevgeny Kafelnikov, was not surprised when Osaka won the 2018 US Open. The 21-year-old Osaka has reached the quarterfinals at the Australian Open this week. “When I first saw Naomi Osaka play, I thought she was really calm, very mature on court,” Li said in comments translated during a news conference at the Australian Open. “She was so focused on her game itself, no pressure, point by point. That quality and the player’s focus really impressed.” Li said it was a loss to Kim Clijsters in her first Grand Slam final on Rod Laver Arena that became the catalyst for her major title breakthrough on the same court three years later. “The most memorable here in Australian Open was the 2011 women’s final. Although I lost, that gave me confidence inside of myself to say I could to do it,” she said. “I was one step away to be coming champion of the Grand Slam.” Li would lose another Australian singles final two years later to Victoria Azarenka, again after winning the opening set, before she eventually

lifted the trophy by sweeping aside Dominika Cibulkova in straight sets in the 2014 final. As a mother—she had a daughter in 2015 and a son the following year—Li marvels at how Serena Williams and Azarenka juggle their tennis commitments while traveling the world with young children. “Yeah, I can’t imagine, like Serena or Azarenka, at the same time they play, then care about the family,” she said. “I couldn’t do that.” Li was a trailblazer in women’s tennis, becoming the first player from China to win a Women’s Tennis Association title—in 2004— and the first from Asia to win a Grand Slam singles title when she won the 2011 French Open. She also won the Australian Open in 2014 after losing two previous finals here. Todd Martin, International Tennis Hall of Fame chief executive, credits Li’s international emergence as a powerful influence on the sport. “I think the Hall of Fame is not just a body that recognizes the greats of the game, it’s the steward of the history of our sport,” Martin said. “If you look forward 50 years, 100 years, 200 years, one can only imagine that the sport will continue to thrive, and it will be a massive sport in China and throughout Asia.” AP

LI NA will be inducted into the International Tennis Hall of Fame in July. AP

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C2 Wednesday, January 23, 2019

NO STOPPING KLAY L BOXING icon Manny Pacquiao smiles as he watches the Golden State-Los Angeles Lakers National Basketball Association game on Tuesday. AP

Pacquiao’s LA home robbed

OS ANGELES—A spokesman for boxer Manny Pacquiao says the famed fighter’s Los Angeles home was robbed at about the time he was in the ring with rival Adrien Broner in Las Vegas. Spokesman Mike Quinn confirmed the burglary to NBC News. Los Angeles Police Department Public Information Officer Tony Im said a burglary occurred around 4:15 p.m. on Saturday. He said suspects ransacked the location and took property, and that nobody was home at the time. Im declined to specify the address or name of the property owner. The 40-year-old Pacquiao dominated over Broner, who is at least a decade younger, shutting down talk of possible retirement for the native of the Philippines. Pacquiao retained his welterweight title against Broner. AP

OS ANGELES—Nothing could stop Klay Thompson, certainly not the Lakers’ defense. The Golden State Warriors made sure of it, too, setting screens and calling plays for the star guard, who tied a National Basketball Association (NBA) record by making his first 10 attempts from three-point range on his way to scoring 44 points in a 130-111 victory on Monday night. “I’ve never hit 10 threes in a row in a game. That’s hard to do,” Thompson said. “I just happened to be on tonight and I’m happy I was able to do it in front of my family.” The Warriors equaled a season high with their eighth consecutive victory. The two-time defending champions won their seventh straight road game, too. “They’re starting to find their stride, not just against us, but against the league,” Los Angeles Coach Luke Walton said. Thompson stopped and popped from everywhere, finishing 10 of 11 from beyond the arc and 17 of 20 from the floor overall. “We kind of sold out to look for Klay, to be honest,” Kevin Durant said. “When you’re knocking shots down like that, you have to

continue to feed him until he goes cold and tonight I didn’t see that in sight.” Thompson had 23 points in the third quarter, connecting on seven threes as the Warriors stretched their lead to 36. He hopped and let his right arm hang in the air after hitting his seventh while Golden State fans at Staples Center cheered. He finally missed from deep late in the period. “We had two, three guys flying at him,” Walton said. Durant added 20 points and Stephen Curry had 11 points and 12 assists, going 2 of 10 from three-point range for the Warriors. “We had 41 assists tonight, so the ball was moving and Klay was just spectacular,” Coach Steve Kerr said. Emblematic of his quiet offensive night, Curry came dribbling in alone for a fast-break dunk, but slipped and fell, drawing gasps from the crowd. He scrambled to his feet, got the ball back and put up an air ball. “That was funny,” Thompson said. “That’ll definitely be on ‘Shaqtin a Fool.’” Ivica Zubac led Los Angeles with 18 points. Brandon Ingram added 17 and Kyle Kuzma had 16.

The Lakers were without their primary ballhandlers and playmakers in LeBron James, Lonzo Ball and Rajon Rondo. They fell to 5-9 without James, whose left groin strain has forced him out for the longest stretch of his 16-year career. Coming off a split in two straight overtime games, the Lakers kept it close in the first half, trailing 65-55 at the break. Golden State had just six threes at halftime. But Thompson fired up a

three-pointer—the first of Golden State’s nine in the third quarter—and the Warriors went on to outscore the Lakers 45-25 to lead 110-80 going into the fourth. Golden State’s sharpshooting silenced the crowd and allowed the Warriors to sit four of their five starters in the fourth, leaving DeMarcus Cousins in for a bit until he also went to the bench. Cousins had eight points, nine rebounds, five assists and four fouls in his second game for the Warriors since being out nearly a year with a severe knee injury. The Warriors have made 141 three-pointers to 93 for opponents during their eightgame winning streak. AP

KLAY THOMPSON ties a league record by making his first 10 attempts from three-point range on his way to scoring 44 points on Monday night. AP

Bucks’ Antetokounmpo’s slam wins Round 1 of rivalry with Hawks’ Doncic

ILWAUKEE—Giannis Antetokounmpo and Luka Doncic never really squared off in their first head-to-head matchup, with the enormous exception of one game-deciding moment. The established All-Star drove the lane. The rising All-Star had no chance to stop him. There will be plenty of Giannis vs. Luka moments before their National Basketball Association (NBA) careers are all said and done, but the first one came on Monday and it absolutely went Antetokounmpo’s way. His dunk over Doncic with 2:50 left was a punctuation mark of sorts in Milwaukee’s 116-106 win over Dallas, a game that featured a top international candidate for Most Valuable Player this season against the very likely international rookie of the year. Antetokounmpo finished the dunk with a stare-down of Doncic. If there was a message in

there, Antetokounmpo wasn’t saying. “Just a dunk,” Antetokounmpo said. “It was a momentum play.” Doncic—to the 19-year-old’s credit—was poised enough afterward to acknowledge that he’s still got a lot of room to grow before he consistently gets to Antetokounmpo’s level. “He’s a great, great player,” Doncic said. “He’s talked [about as] an MVP of this league. He’s becoming one of the best players in this league.” The dunk didn’t certify that. But it did ensure the game didn’t slip away. Antetokounmpo led everybody with 31 points, and grabbed 15 rebounds. Doncic became the second teenager in NBA history with a tripledouble—finishing with 18 points, 11 rebounds, 10 assists—and still wasn’t impressed with himself, because it came in a loss and in a game in which he

shot 6 for 17 from the floor. “A tripledouble from a rookie is pretty impressive,” Bucks Coach Mike Budenholzer said. The Bucks gave Antetokounmpo a quick rest with about five minutes left in the fourth, up by 11. A minute later, Dallas was within six. Thus ending the rest and setting the stage for the monster dunk. Milwaukee called time to get Antetokounmpo back into the game, and moments later he found Malcolm Brogdon on an impressive pass from the high post for a reverse layup. Doncic got Brogdon—a tough defender—to bite on a shot fake and turned that into a three-point play with 3:05 left, only to have Antetokounmpo drive the lane for the over-Doncic slam on the ensuing Milwaukee possession. Game over. There was time left, but the dunk sealed this one. “I am happy for my triple-double,” Doncic said. “But I would prefer the win for sure.” He’ll have plenty more chances, and odds are, the world will be watching many of them. Greece and Slovenia are allies, officially, but Antetokounmpo won Round 1 of this basketball showdown. He prevailed despite Doncic’s triple-double—that came with him at 19 years, 327 days old, just 10 days older than Markelle Fultz was when he had one last season. AP

Oklahoma City 127, New York 109 Chicago 104, Cleveland 88 Milwaukee 116, Dallas 106 Washington 101, Detroit 87 Orlando 122, Atlanta 103 Brooklyn 123, Sacramento 94 New Orleans 105, Memphis 85 Boston 107, Miami 99 Philadelphia 121, Houston 93 Portland 109, Utah 104 Golden State 130, LA Lakers 111

Rockets trading Melo to Chicago

ILWAUKEE—Carmelo Anthony is going to Chicago, albeit only on paper. Where he’s going next remains unclear. A person with direct knowledge of the matter said the Houston Rockets are trading Anthony and an undisclosed amount of cash to the Bulls in a deal that is expected to be completed on Tuesday. The person spoke to The Associated Press on condition of anonymity on Monday because the trade still needs league approval. When that comes—the only reason why it didn’t happen on Monday is because the NBA office was closed to commemorate the Dr. Martin Luther King Jr. holiday— Anthony will have a new team, though still won’t be back on the floor. The Bulls have no plans to play Anthony and will look to either trade him before the February 7 deadline or ultimately waive him and make him a free agent. The trade ends a short-lived saga in Houston for Anthony, who averaged 13.4 points in 10 games with the Rockets. He has not played since November 8. Anthony was traded by Oklahoma City to Atlanta in July, a move that preceded the Hawks releasing him to sign with the Rockets. The Bulls, technically, will be Anthony’s fourth franchise in seven months, with likely one more to come before long. “We just had to see how things worked out,” Rockets Coach Mike D’Antoni said in November when the team said it was parting ways with Anthony. “And the way we play probably wasn’t conducive to his game, and he was trying to make the necessary sacrifices and it wasn’t fair to him as a Hall of Fame player to play in a way that wasn’t good for him, wasn’t good for us. It just wasn’t a fit.” Anthony is a 10-time All-Star who has averaged 24.0 points and 6.5 rebounds per game in his career. He was the No. 3 pick in the star-studded 2003 draft class that also included No. 1 LeBron James, No. 4 Chris Bosh and No. 5 Dwyane Wade. AP

Three-leg triathlon sprint series unfurl in Cebu, Davao, Subic Bay

JEREMY GO (left), vice president for Marketing of Powerball and Logistic Corp. and Wilfred Uytengsu, Sunrise Events Inc. founder, address Tuesday’s launch of the Sunrise Sprint Series. NONOY LACZA

TITLE FAVORITES JAPAN, AUSTRALIA IN QUARTERS

HARJAH, United Arab Emirates—Title contenders Japan and Australia scraped through tough last-16 games at the Asian Cup on Monday, joined by the host team UAE. Japan advanced to the quarterfinals by beating Saudi Arabia, 1-0, while defending champion Australia needed penalties to get past Uzbekistan. Takehiro Tomiyasu scored for Japan with a header in the 20th minute and the Saudis created few chances despite having more than 75 percent of the possession against a defensefirst Japan team. “In our team, we share the same idea that even when our opponent keeps the ball, if we carefully defend at the end line, we should be able to defend without any problem,” defender Yuto Nagatomo said. “Our opponents held the ball for long periods, but our view was that we let them hold the ball.” Japan, which is looking to win a record fifth Asian Cup title, will next face Vietnam, the

NBA RESULTS

lowest ranked of the six teams to qualify so far for the quarterfinals. Saudi Arabia has not reached the quarterfinals in 12 years. Coach Juan Antonio Pizzi’s contract was due to expire after the tournament and he said it hadn’t been renewed. “No one has talked to me from the Saudi federation about that,” the Argentine coach said. “We played most of the time today in their half and we controlled the ball and had position, but we lacked the final touch and determination to transfer the position into goals.” Official attendance figures put the crowd at just 6,832 as the Asian Cup continued to be notable for banks of empty seats and echoing chants. Australia struggled to create chances as a drab game against Uzbekistan ended 0-0 after extra time, before winning the shootout 4-2. On his return from a hamstring injury, Mathew Leckie scored the winning penalty. Shooting second for Australia, Aziz Behich saw his penalty saved but goalkeeper Mathew

Ryan—shifting from side to side on his line to distract Uzbekistan’s penalty takers—stopped two Uzbek shots to put Australia ahead and allow Leckie to seal the win. Uzbekistan almost scored early on when Ryan kept out Eldor Shomurodov’s shot, while Australia wasted second-half opportunities by shooting straight at goalkeeper Ignaty Nesterov. Defeat in the last 16 would have marked Australia’s worst Asian Cup result. Australia is partway through a rebuild under Coach Graham Arnold after veteran players such as Mile Jedinak and Tim Cahill retired from international football following last year’s World Cup. Since joining the Asian confederation in 2006, Australia has played eight games in the knockout stages, with five of those going to extra time. Australia’s quarterfinal opposition will be the UAE after the host side beat Kyrgyzstan, 3-2, after extra time. Kyrgyzstan missed a string of chances at 2-1 down in the second half before Tursunali Rustamov’s stoppage-time header sent the game to extra time. The UAE took the win after Ahmed Khalil’s penalty, awarded for a shove on a teammate, but narrowly avoided penalties only when Kyrgyzstan hit the crossbar with 10 seconds remaining. AP

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Wednesday, January 23, 2019

Leaders Phoenix, Columbian clash

SUPERAL

HOENIX tries to extend its grip of the top spot when it clashes with fellow unbeaten Columbian Dyip in the Philippine Basketball Association Philippine Cup on Wednesday at the Smart Araneta Coliseum. The Fuel Masters, who started the conference with two straight wins, battle the CJ Perez-led Dyip at 4:30 p.m. Both winless in two games, sister-teams NLEX and TNT hope to break the bad spell as they shoot for their first victory in their encounter at 7 p.m. Phoenix survived two overtimes to lead the all-Filipino conference along with NorthPort. In their recent dumping of the KaTropa, 84-93, Matthew Wright showed the way with his 23 points with seven coming in the extra period. Alex Mallari added 15 points, while Calvin Abueva chipped in 14 points and 12 rebounds. Last season’s Rookie of the Year Jason Perkins also had a significant contribution of 11 points and 15 rebounds. Phoenix bucked a slow start and also weathered the career-night of TNT’s Roger Pogoy who exploded for 30 points, including a three-pointer with less than a minute to play that sent the game to overtime, 83-83. Coach Louie Alas hopes that the streak continues. “We’ll be happier if we get our third win,” Alas said. Perez, the top overall pick, carried Columbian in a stunning debut over defending champion San Miguel Beer, 124-118, last Friday. The former Lyceum of the Philippines University star tallied 26 points that went with five rebounds. Ramon Rafael Bonilla

FACE-OFF IN MEXICO

HE cream of the country’s crop set off for a three-day battle of shotmaking and putting with some of the leading Thai players out to extend their reign in the Ladies Philippine Golf Tour (LPGT) as the International Container Terminal Services Inc. (ICTSI) Beverly Place Ladies Classic unfolds in Mexico, Pampanga, on Wednesday. Ladies Professional Golf Association (LPGA) Tour-bound Dottie Ardina, reigning LPGT Order of Merit (OOM) champion Princess Superal and former OOM winners Cyna Rodriguez and Pauline del Rosario launch their respective bids in four separate flights against crack Thai rivals in what promises to be an explosive start in the P750,000 event serving as the third leg of the seventh LPGT season. Though Yupaporn Kawinpakorn, who

also won the last LPGT stop at Pradera Verde, won’t be around to defend her crown she won by three over Chihiro Ikeda last year, the Thais remain a tough bunch to beat with Aunchisa Utama and Ornicha Konsunthea joining Ardina and South Korean Bang Choeun in the 8:30 a.m. flight. Pimpadsorn Sangkagaro and Jaruporn P Na Ayuthaya slug it out with del Rosario and another South Korean Lee Ji-hyeon in the 8:20 a.m. group just after Superal tees off with Chonlada Chayanun, Numa Gulyanamitta and Mookharin Ladgratok at 8:10 a.m. Rodriguez, meanwhile, hopes to come out strong against Narisara Kerdrit and Saraporn Chamchoi in the 8 a.m. group firmed up by the presence of two-time LPGT Champion Tour winner Lee Jeonghwa, also of South Korea. Focus will also be on Ji Hyeon, who will be

PHILRACOM HONORS CLUBS SINGAPORE DUATHLON CHAMP Standard Insurance’s Duathlon

Team sweeps the recent Singapore Duathlon National Championship with Emmanuel Commendador (20) and Monica Torres (05) emerging as the men and women champions in the Elite divisions. Joey de los Reyes (19) and Robeno Javier (14) places second and third, respectively. On the other hand, placing fourth and fifth are John Topia (without bib) finishes fourth and Jarwyn Banatao (21) winds up fifth. The team has been training under Triathlon Association of the Philippines’s coaching program with Coach Melvin Fausto and Coach Bernie Llentada in preparation for the 30th Southeast Asian Games the country is hosting in December at the Subic Bay Freeport Zone.

Tiu hopes Odom, Brownlee in top form for Dubai hoops

O For Gold has partnered with race organizer Sunrise Events Inc. for the Sunrise Sprint Series which will start on April 28 in Cebu City. The series will feature a 750-meter swim, 20-kilometer bike and 5-km run race for athletes aged 15 and older. The series’ age groups are patterned after the Ironman. After Cebu, the event will go to Davao on July 7 and Subic Bay on November 3. “Sprint triathlons require short training time. They are also considerably cheaper to join than their longdistance counterparts,” Sunrise Events Inc. founder Wilfred Uytengsu told Tuesday’s press conference at the Manila House. “They are more spectator-friendly because of the shorter duration of the races.” There will also be an open category where elite athletes could vie for top honors and inclusion to the Go For Gold team. “Go For Gold will continue to support grassroots and development program in our search for young and promising athletes who will represent the country abroad,” Powerball and Logistics Corp. Vice President for Marketing Jeremy Go said. “The search for excellence is a continuing and long-term process, especially in sports.” Ramon Rafael Bonilla

OACH Charles Tiu is hoping that former Los Angeles Lakers star Lamar Odom and Barangay Ginebra resident import Justine Brownlee are in their fighting form when Mighty Sports sees action in the 30th Dubai International Basketball Championship next week. “That’s what I’m wishing for when I’ll see them on Wednesday as they will be up against teams who have been playing together for years. We have little time to prepare,” Tiu said. “Given the situation and toughness of the competition, there’s a possibility that they will play extended minutes on the floor.” Brown arrived on Tuesday while Odom is due on Wednesday as the team—co-owned by Alex Wongchuking—holds its first official practice together on Thursday for the February 1 to 9 tournament in Dubai. Odom, 39, has been posting his training regimen on Instagram while Brownlee looks good in his video message to the team backed by SMDC, Go For Gold, Healthcube and Oriental Group. “We will play almost every day so it’s

Pacquiao ready for rematch AL MENDOZA | alsol47@yahoo.com

THAT’S ALL VETERAN judge Dave Moretti and I had identical scores in the recent Pacquiao-Broner fight. We both saw Pacquiao the winner by 117-111. I was tempted to give all 12 rounds to Pacquiao but the generous bit in me nudged me to give Broner Rounds 4, 6 and 10. Grudgingly. In those three rounds, Broner never really made a clear dent on Pacquiao’s armor. But the few times the challenger had sneaked in some counter shots convinced me—grudgingly again—to hand him my three precious yesses. In lopsided fights like that one, the human side of a judge could sometimes prevail. What’s one or two, or even three rounds, spared to the loser? They’d be crumbs, anyways. Harmless. But the Associated Press was ruthless. It gave all 12 rounds to Pacquiao for a crushing 120-108 shutout win. I tend to believe in AP’s judgment. Broner didn’t really connect clearly virtually all throughout the

fight. In one round, he had but only shot hitting its mark. It was that one-sided, indeed. And why the two other judges gave identical 116-112 scores in favor of Pacquiao, I’m also a bit perplexed as that meant Broner won four rounds in their scorecards. Did Tim Cheatham and Glen Feldman watch another fight? Anyways, the fight almost became a bore if not for the seventh and ninth rounds where Pacquiao almost knocked Broner out. On both times, Pacquiao jarred Broner with his crushing left, followed by a barrage of blows that drove the challenger almost hopelessly helpless against the ropes. How Broner survived the punishment, I credit it to his staying power and a granite-like chin. A big factor, of course, was Broner’s age: just 29. At 40, Pacquiao’s power might be diminishing, the reason his rain of punches didn’t have that old sting that had stopped 39 foes previously?

important that they [Americans] have the stamina,” said Wongchuking noting the team will play against the best from the Middle East, including Lebanon and Jordan. Wongchuking added that the Filipino community in the premier city of oil-rich United Arab Emirates is now abuzz with the team’s arrival and vowed its all-out support just like what it did two years ago. Besides Brownlee, also part of the team two years ago were Rain or Shine guard Chris Tiu and center Beau Belga and former amateur standout Kiefer Ravena. Beefing up the squad are Chinese Basketball Association veteran Randolf Morris and FilipinoAmericans Jeremiah Gray and Roosevelt Adams. Also joining the team are former Philippine Basketball Association star Joseph Yeo, Gab Banal, University of the Philippines playmaker Juan Gomez de Liaño, De La Salle’s Santi Santillan, College of Saint Benilde’s Justin Gutang, National University’s Troy Rike and ex-Ginebra player Jet Manuel. Veteran Coach Jong Uichico and Woody Co will be Tiu’s assistants. Maybe. But in fairness, Pacquiao still had the champion’s sturdy knees and the winged feet 24 years after he turned pro. Which brings me to the meat of this piece: That with his convincing 61st win against Broner in this his 70th fight, Pacquiao is more than ready for that rematch against Floyd Mayweather Jr. Mayweather may be coy of that possibility at the moment but if I know him, he’s just biding his time. When the price is right, he’d snap out of his shell pronto. He’s not called “The Money” for nothing. And if you come down to it, time is of the essence as Mayweather is turning 42 on February 24 (Pacquiao turned 40 last December 17). Thus, Mayweather must make that rematch with Pacquiao soonest—this year would be best— as Father Time is fast catching up with them. Next year could be too late. Or do they want to serve us commodities with near expiry dates—if not totally expired gladiators? Let’s do it. Now. THAT’S IT It is quite surprising that not a single soul was left to stand watch over Pacquiao’s plushy house in Los Angeles while the champ was defending his crown in Las Vegas against Broner. A huge defensive lapse, indeed, giving thieves the luxury of ransacking Manny’s mansion at will. How much was stolen, the police have yet to make an official accounting.

HE Philippine Racing Club Inc. (PRCI) and Manila Jockey Club (MJC) led the honorees at the 2019 Philippine Racing Commission (Philracom) Awards at the San Lazaro Leisure and Business Park recently in Carmona, Cavite. Manila Jockey Club Chief Operating Officer Atty. Peter Sagala received the club’s award as Racing Club of the Year (Based on Total Amount of Horse Prizes), while PRCI’s Racing Manager Antonio Alcasid Jr. accepted the trophy as Racing Club of the Year (Based on Total Gross Sales of the Day). SC Stockfarm Inc.’s Oliver Velasquez was named Philracom Stakes Races Horse Owner of the Year, while the stable’s star horse Sepfourteen was recognized as the Top Earning Horse of the Year. Leonardo Javier Jr. was declared Horse Breeder of the Year and Narciso Morales Top

hard-pressed to prove her worth as a pro after shocking the elite field to rule the kickoff leg of the new LPGT season in Baguio as an amateur last October. Ikeda, on the other hand, is up against former LPGT leg winner Wannasiri Sirisampant and Pattraporn Kratururk with Brunei Darussalam’s Valerie Tan completing the four-player group in the 54-hole tournament organized by Pilipinas Golf Tournaments Inc. The Thais won five of the 12 LPGT tournaments last year with Chamchoi, Sirisampant and company eager to score a follow-up to Kawinpakorn’s two-stroke victory over compatriot Pimpadsorn Sangkagaro at Pradera last December. Ardina placed a distant third but the Canlubang ace, who placed second in the

Symetra Tour last year to earn full playing rights in the world’s most lucrative circuit, is out to stop the Thais’ run and build some confidence and momentum as she heads to the LPGA Tour in Australia next month. Forty-eight players, including six amateurs, will slug it out for the top 15 plus ties slots in the first 36 holes. Others tipped to contend are Daniella Uy, Marvi Monsalve and Gretchen Villacencio and Thais Saruttaya Ngam-usawan, Sarinee Thitiratanakorn and Tiranan Yoopan. Heading the amateur cast in the event, backed by Custom Clubmakers, Meralco, K&G Golf Apparel, BDO, Sharp, KZG, PLDT, Empire Golf and Sports and MY Shokai Technology Inc., are The Country Club mainstays Mafy Singson, Arnie Taguines, Samantha Dizon and Eagle Ace Superal along with Laurea Duque and Marianne Bustos.

Earning Horse Owner of the Year. Ruben Tupas bagged the most awards as Philracom Stakes Races Trainer of the Year and Top Earning Trainer of the Year. He also accepted the award for the Philracom Stakes Races Horse of the Year—Smart Candy—which tied with Pride of Laguna, owned by Emmanuel Santos. O’Neal P. Cortez and Jessie B. Guce won the Top Earning Jockey of the Year and Stakes Races Jockey of the Year, respectively. The 11th Manila Horse Power Organization Inc. Anniversary Racing Festival was declared as the Most Successful Racing Festival of the Year with the trophy being awarded to Ferdie Eusebio. “These awardees stood out for the industry during a trying year. They were the bright spots and they deserve all of the accolades,” said Philracom Chairman Andrew Sanchez, who was joined by his

commissioners in the ceremony. The ceremony was held before the 2019 Philracom Commissioner’s Cup graced by Budget Secretary Benjamin E. Diokno. Later, using its Horse of the Year award as an inspiration and motivation, Sepfourteen added another win—the Commissioners’ Cup in a down-to-the-wire victory over longtime rival Electric Truth. The tandem of jockey JA Guce and Sepfourteen played catch up from the start before turning the tide in the last 500 meters. The Javier-owned Electric Truth gave Sepfourteen a scare after rushing from behind in the last 300 meters, slowly closing the gap before coming up short in seizing the lead. The Santa Clara Stockfarm-raised Sepfourteen bagged P900,000, including the P50,000 breeder’s purse and trophies, while Electric Truth took home P337,500. Third-placer Pangalusian Island pocketed P187,500 and Mandatum earned P75,000 for fourth place. BUDGET Secretary Benjamin E. Diokno (third from left) leads the awarding of winners— trainer Chito Santos (back, right) and jockey JA Guce (back, center). They are joined by (from left) Manila Jockey Club (MJC) Manager Ding Magboo, Philippine Racing Commission Commissioner Don Bagatsing, Lucky Lea Forbes, Chairman Andrew Sanchez, Commissioners Bienvenido Niles Jr. and Jose Santillan and MJC Assistant Manager J-Fel Cuevas (back left).

By Barry Wilner

The Associated Press

ANSAS CITY, Montana—The last thing the National Football League (NFL) would ever want is for an officiating mistake to decide the Super Bowl. On Sunday, the league might have made enough errors to determine both teams that will play in the championship game in two weeks. The most egregious gaffe came in the National Football Conference (NFC) title game in New Orleans. The Saints were in position to put away the Rams when Tommylee Lewis blatantly was interfered with inside the Los Angeles five-yard line by cornerback Nickell Robey-Coleman. Not only did Robey-Coleman hit Lewis early, he did so helmet to helmet. Next weekend, we’ll hear about RobeyColeman being fined for the collision—even though, incredibly, no flag was thrown. “Came to the sideline, looked at the football gods and was like, ‘Thank you,’” RobeyColeman said. “I got away with one tonight.” Such a big one that it kept the Rams alive. Instead of a first down and the chance to run down the clock before making a field goal, or score a touchdown for a bigger lead, the Saints wound up with Wil Lutz’s 31-yard kick. That made it 23-20 with 1:41 left in regulation, plenty of time for the Rams to march to Greg Zuerlein’s tying 48-yard field goal. “Greg The Leg” won it with a 57-yarder in OT. His heroics almost certainly never would have happened had the call on Robey-Coleman been made. And the fact the defender led with his head into Lewis’s helmet at a time when the NFL is adamant that it’s doing everything to get such hits out of the sport should be even more maddening. “They felt like the players—the player— arrived at the same time that the ball did,” Saints Coach Sean Payton said, trying to be diplomatic when he had every right to rant and rave. “They didn’t feel like it was an interference call. “Look, it’s a tough way to lose a game, especially when you’re in a position like that to win it. It’s all the more reason why we need more replay. We lose a chance to go to the Super Bowl with a call like that, it’s just disappointing. But, credit the Rams. They did a good job, made the plays in the end when they needed to.” Plays that wouldn’t have existed if Bill Vinovich’s crew got it right. An argument often is made, and rightly so, that plays seen in slow motion become clearly illegal, but at full speed in an increasingly fast and physical game, they look OK. That contention has no place here; even at warp speed, RobeyColeman’s hit was obviously a penalty. NFL Senior Vice President of officiating Al Riveron “couldn’t believe” no penalty call was called on the play, Payton said. “It’s tough to get over it,” Payton said. “My problem with it is, I just don’t know, if we were playing pickup football in the backyard... it was as obvious a call—and how two guys can look at that and arrive at their decision? It happened though.”

IT BOILS DOWN TO OFFICIATING Sports BusinessMirror

| Wednesday, January 23, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

KANSAS City Chiefs tight end Travis Kelce (87) spins in the air as he is tackled by New England Patriots defensive back Jonathan Jones (31) during the first half of their American Football Conference Championship on Sunday. AP

Ex-French swim champ on trial for child sex abuse

ORDEAUX, France—A former French swimming champion is on trial in Southwest France for the alleged rape and sexual abuse of young boys and adolescents during the decade he ran an ice hockey club in Northern France. Vincent Leroyer told a jury as his three-day trial got under way in Bordeaux on Monday that he acknowledged “nearly all” of the accusations against him except for the allegation he raped a boy. Leroyer, who turns 61 on Tuesday, is accused of sexually abusing five boys ages six to 14, and raping one of them when he managed the ice hockey club in Rouen from 1986 to 1996. His alleged victims, now in their 30s and 40s, listened silently as the court heard that Leroyer

befriended the boys’ parents and allegedly molested them at their homes or during sleepovers at his house. The court president said some of the evidence drew a portrait of Leroyer behaving like a “predator” who “wove his web” around boys’ families, befriending parents to get access to their children. Leroyer was a French national backstroke champion during the 1970s but an injury kept him out of the 1978 world championships. He later worked for French swimming apparel maker Arena. The child rape charge carries a maximum sentence of 20 years, while child sex abuse is punishable by a jail term of up to 10 years. The verdict is expected on Wednesday. AP

CALL it what you want, it seems like destiny plays a role when Mikaela Shiffrin wins what could very well turn out to be Lindsey Vonn’s (left) last race. AP

READY TO PLEAD GUILTY Cristiano Ronaldo arrives at the court in Madrid on

Tuesday and is expected to plead guilty to tax fraud. The Juventus forward arrives in a black van with his wife Georgina Rodriguez, walks up some stairs leading to the court house and stops to sign an autograph. The charges stem from his days at Real Madrid. AP

A few things happened in Kansas City, too, where the Patriots won 37-31, also in overtime. These had more to do with replay, with two critical calls going New England’s way in the fourth quarter. The first, which required a lengthy video review, involved Julian Edelman muffing a punt. The original call was that the bouncing ball touched him. Replays, even in stop motion, seemed inconclusive, which means the call should stand. But Riveron and his staff in New York saw enough evidence that Edelman never made contact with the football. Even Kansas City’s laid-back coach, Andy Reid, became highly demonstrative with the overturned decision. Who could blame him considering how many dozens of such calls stick with what on-field officials determined? The Chiefs, perhaps in a dose of poetic justice, soon after intercepted a pass that went off Edelman’s hands. But later in the quarter, Chris Hogan attempted a onehanded catch on third down. Reid challenged, and replay indicated far more evidence the ground helped Hogan make the catch than the previous review showed Edelman whiffed on the ball. No matter. The catch was upheld, and six plays later, Sony Michel scored a touchdown. Chiefs linebacker Dee Ford also went offside on the Patriots’ final drive in regulation, negating an interception by Charvarius Ward that could have clinched a win. But there was little controversy there. The league has been under heavy scrutiny and drawn massive criticism about its officiating in the last few years. The perception is that the NFL needs full-time officials, which might help somewhat, and in part is being done. However, the deeper issues are too many rules and tangents to those rules; points of emphasis that get hammered in, then seemingly are discarded; and officials who struggle to keep up with the speed of the sport. The league prizes experience, but when one of its most experienced crews blows a call so blatant that even the perpetrator acknowledges he caught a break, the storm of protest will rage. Rightly so.

ORTINA D’AMPEZZO, Italy—A passing of the torch moment. A generational transformation marked by a veteran’s tears and the unbridled joy of youth. Call it what you want, it seemed like destiny played a role when Mikaela Shiffrin won what could very well turn out to be Lindsey Vonn’s last race. In the space of about a half hour on Sunday, Vonn broke down emotionally after she failed to finish a World Cup super-G on knees so worn down that she describes them as “bone on bone,” then Shiffrin came down nine racers later and won her first speed race at the premier stop on the women’s circuit. Shortly after the normally reserved Shiffrin unleashed an unusual hands-over-her-head celebration, Vonn announced that she was considering moving up her retirement. “As a fan of ski racing and as an American, if Lindsey’s not there it’s awesome to see another American girl on top,” said retired US racer Daron Rahlves, who was in attendance. “But I know it’s burning inside for Lindsey.” After collecting herself, the 34-year-old Vonn went over and embraced the 23-year-old Shiffrin, who was standing in the leader’s box. “I just told her, ‘Congratulations and awesome skiing. It was a well-earned victory today,’” Vonn said. Not too long ago, it was a moment that Shiffrin could only have dreamed of.

SHIFFRIN SHOWS SHE’S READY TO TAKE OVER FROM VONN? “When I was younger she was someone I looked up to like crazy,” Shiffrin said. “I was doing book reports on her. I was one of those fans.” Lately, Shiffrin has had a front-row seat to observe Vonn’s perseverance. At Shiffrin’s first world championships in Schladming, Austria, she watched as Vonn tumbled head first into one of the ugliest and most damaging crashes of her career—the one that eventually kept Vonn out of the 2014 Sochi Olympics. Shiffrin, by then an Olympic champion like her idol, was also there when Vonn, 33 at the time, won a bronze in the downhill at last year’s Pyeongchang Games, becoming the oldest female medalist in Olympic history for Alpine skiing. “The speed that she has is just in her—more speed than everyone else—it lives in her bones,” Shiffrin said. “Managing that with the injuries that she’s had and the mentality she always has to push 1,000 percent...I’ve always been watching that.” While Vonn returned this weekend from a left knee injury—she hyperextended it and sprained a ligament in November—her right knee is permanently damaged from previous crashes. She has also suffered fractures near her left knee, broken her ankle, sliced her right thumb, had a concussion and more. Vonn was planning on retiring in December but her results this past weekend—her best finish in three races was ninth— prompted her to consider leaving the sport earlier.

“There’s only so much I can handle and I might have reached my maximum,” Vonn said on Sunday. US team Spokesman Megan Harrod said on Monday that Vonn “is going to take the next couple/few days to think about how she will proceed and process everything, and then decide about how she will move forward based on that.” Vonn has 82 World Cup victories—best all-time among women—and four fewer than record-holder Ingemar Stenmark, who raced in the 1970s and 1980s. “She took Alpine racing to the next level,” said Tina Weirather, the Liechtenstein racer who is the daughter of two skiing champions and who finished second on Sunday. “Her mentality was something we had never seen before. She was never afraid to say that she’s the best and she wants to be best.” Shiffrin also had a desire to be the best from a young age, and it was a relief for her to notice when she first came on tour that Vonn has the same determination. “I used to apologize for that because it was almost like I had more intensity than all the other girls. When I saw Lindsey like this it was confirmation that this philosophy I had was working and it would work and I have to stay on this track,” Shiffrin said. “That was a really cool feeling and something that made a difference for me.” With Shiffrin well on her way toward a third straight overall World Cup title—Vonn won four overalls—she’s well prepared to take over the spotlight from Vonn. AP

Living God

EAR God, Your Word is a lamp to our feet and a Light to our path. With hope in Your saving Word we pray: Oh God, come to our aid. Lead those who suffer mental illness to find and receive treatment and support. Help us to ensure adequate health care and financial support for pregnant women, and others whose needs are less. Transform the hearts of those who are tempted to hurt themselves or others. May God order our days and nights in the Peace of 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

SUI GENERIS: STICKS AND CARROTS D4

Wednesday, January 23, 2019

OXFORD SUSPENDS RESEARCH FUNDING FROM CHINA’S HUAWEI

Net�lix’s solid 4Q eclipsed by projected slowing US growth

By MiChaeL LiedtKe The Associated Press

AN FRANCISCO—Netflix’s video streaming service added more subscribers than ever during the crucial holiday season, but the company signaled its growth is slowing in the United States as it begins to roll out double-digit price increases in its biggest market. The slightly disappointing forecast issued on Thursday for the opening three months of the new year overshadowed a solid earnings report covering the final quarter of last year—a key period for Netflix because subscriptions to its service are a popular holiday gift. Netflix ended December with 139.3 million paid subscribers, slightly better than analysts had anticipated, according to FactSet. Of that total, 58.5 million were in the US, in line with what Netflix had projected. Management predicted the company will gain another 8.9 million subscribers from January to March, but only 1.6 million are expected in the US That is down substantially from an increase of 2.3 million paid US subscribers at the same time last year. That downturn in the US raised alarms because Netflix is starting to raise its prices in the country by 13 to 18 percent this quarter, a move that the company is making to help pay for its rising programming costs as it competes for exclusive series and films against

Amazon, Hulu, AT&T and Apple. By charging more, Netflix can continue “a virtuous cycle where you’ve got the more investment you’re putting in, the more people are finding content that they love and the more they have value in the service,” said Ted Sarandos, the company’s chief content officer, during a Thursday webcast. But the higher US prices also threaten to cause some existing subscribers to cancel the service and discourage potential new customers from joining. That phenomenon could undercut the subscriber growth that propels Netflix’s stock price more than any other factor. Netflix’s shares fell nearly 4 percent to $340 in Thursday’s extended trading after the earnings report and forecast came out. Even so, the stock remains above its levels before the company announced the US price increase earlier this week, a sign that more investors believe management is doing the right thing for the company’s long-term financial health as it continues to burn through more cash than it is bringing in. “The fact that investors reacted negatively to what amounted to a strong performance indicates the extent to which Netflix has set a high bar,” said eMarketer analyst Paul Verna. Netflix had a negative cash flow of $1.3 billion in fourth quarter, bringing its total for all of 2018 to a negative $3 billion. The Los Gatos, California, company expects burn through another $3 billion this year as it continues to

spend heavily for the rights to popular programming, such as the film Bird Box, which the company said has been watched by 80 million households since its December 21 debut on the streaming service. Netflix also released other insights into how many people are watching its service. That’s a departure for a service that has fiercely guarded the data it regards it as a competitive advantage that helps guide its decision on the types of entertainment likely to resonate with its audience. The change could be an attempt to reassure investors that its free-spending ways are paying off. The company estimated it accounts for about 10 percent of the time spent watching television in the US. Besides Bird Box, Netflix also released projected viewership numbers on two other pieces of programming, You and Sex Education, both of which it expects to be watched by 40 million households during their first month on the service. Even as its burns through cash, Netflix remains profitable under accounting rules. It earned $133.9 million, or 30 cents per share, for the fourth quarter, a 28 percent decrease from $185.5 million, or 41 cents per share, at the same time in the prior year. The earnings per share exceeded the average estimate of 24 cents among analysts surveyed by Zacks Investment Research. Revenue for the past quarter climbed 27 percent from the previous year to $4.2 billion, in line with analysts’ estimates. n

Facebook’s privacy lapses may result in record fine FACEBOOK, headed by CEO Mark Zuckerberg (photo), may be facing the biggest fine ever imposed by the US Federal Trade Commission for privacy violations that breached a commitment to protect the personal information of its social network’s 2.2 billion users. AP

SAN FRANCISCO—Facebook may be facing the biggest fine ever imposed by the US Federal Trade Commission (FTC) for privacy violations involving the personal information of its 2.2 billion users. The FTC is considering hitting Facebook with a penalty that would top its previous record fine of $22.5 million, which it dealt to Google in 2012 for bypassing the privacy controls in Apple’s Safari browser, according to The Washington Post. The story published on Friday cited three unidentified people familiar with the discussions. In an automated response, the FTC said it was unable to comment, citing its closure due to the US government shutdown.

Facebook declined to comment. The potential fine stems from an FTC investigation opened after revelations that data mining firm Cambridge Analytica had vacuumed up details about as many as 87 million Facebook users without their permission. The FTC has been exploring whether that massive breakdown violated a settlement that Facebook reached in 2011 after government regulators had concluded the Menlo Park, California, company had repeatedly broken its privacy promises. The FTC decree, which runs through 2031, requires Facebook to get its users’ consent to share their personal information in ways that aren’t allowed by their

privacy settings. Since the Cambridge Analytica controversy erupted 10 months ago, Facebook has vowed to do a better job corralling its users’ data. Nevertheless, its controls have remained leaky. Just last month, the company acknowledged a software flaw had exposed the photos of about 7 million users to a wider audience than they had intended. The FTC’s five commissioners have discussed fining Facebook but haven’t settled on the amount yet, according to The Post. Facebook’s privacy problems are also under investigation in other countries and the target of a lawsuit filed last month by Washington, D.C., Attorney General Karl Racine. AP

LONDON—Oxford University says it is suspending research grants and funding donations from Huawei amid growing security concerns about the Chinese telecom giant. It’s another setback for Huawei’s image in Europe, an important market for the company, which has been effectively blocked in the United States over concerns its technology poses a cybersecurity risk. It’s now facing increasing scrutiny in Europe, where it is expected to play a major role in building new fifth-generation mobile networks. The university decided on January 8 that “it will not pursue new funding opportunities” with Huawei or related companies, it said in a statement on Thursday. The decision, which applies to both funding of research contracts and philanthropic donations, was made “in the light of public concerns raised in recent months” surrounding the company’s United Kingdom partnerships. Two existing research projects worth a combined £692,000 ($895,000) will continue, it said. “We hope these matters can be resolved shortly and note Huawei’s own willingness to reassure governments about its role and activities,” the university said. Huawei said it was “not informed of this decision” and awaits the university’s full explanation. Britain’s defense secretary and its intelligence chief both voiced concerns last month about Huawei’s involvement in the country’s rollout of 5G networks. Huawei’s troubles are expanding elsewhere in Europe. The company fired its sales director in Poland last week after authorities there arrested him on charges of spying for China. The Czech Republic has warned against using Huawei equipment because of security fears and Norway is rethinking the company’s role in its telecom networks. Huawei Founder Ren Zhengfei said in a rare interview this week that his company would never share secrets about its customers and their communications networks. Ren’s daughter, who is also the company’s chief financial officer, is fighting a US request that she be extradited from Canada on charges related to Iran sanctions violations. AP

iTUNES MOVIES & TV SHOWS AND SUPPORT AIRPLAY 2 COME TO SAMSUNG SMART TVs

SAMSUNG Electronics Co. Ltd. announced during the recently concluded CES 2019 that it will offer iTunes Movies and TV Shows, and Apple AirPlay 2 support on 2019 Samsung Smart TV models beginning this spring. Support on 2018 Samsung Smart TVs will be made available via firmware update. In an industry first, a new iTunes Movies and TV Shows app will debut only on Samsung Smart TVs in more than 100 countries. AirPlay 2 support will be available on Samsung Smart TVs in 190 countries worldwide. With the new iTunes Movies and TV Shows app on Samsung Smart TVs, customers can access their existing iTunes library and browse the iTunes Store to buy or rent from a selection of hundreds of thousands of movies and TV episodes—including the largest selection of 4K HDR movies. iTunes Movies and TV Shows will work seamlessly with Samsung’s Smart TV Services, such as Universal Guide, the New Bixby and Search, to create a consistent experience across Samsung’s platform. With AirPlay 2 support, Samsung customers will be able to effortlessly play videos, photos, music, podcasts and more from Apple devices directly to Samsung Smart TVs, including QLED 4K and 8K TVs, The Frame and Serif lifestyle TVs, as well as other Samsung UHD and HD models. “We pride ourselves on working with top industry leaders to deliver the widest range of content services to our Smart TV platform,” said Won-Jin Lee, executive vice president for visual display business at Samsung Electronics. “Bringing more content, value and open platform functionality to Samsung TV owners and Apple customers through iTunes and AirPlay is ideal for everyone.” “We look forward to bringing the iTunes and AirPlay 2 experience to even more customers around the world through Samsung Smart TVs, so iPhone, iPad and Mac users have yet another way to enjoy all their favorite content on the biggest screen in their home,” said Eddy Cue, senior vice president of Internet software and services at Apple.

Wednesday, January 23, 2019

Pet Corner BusinessMirror

‘A Dog’s Way Home’: Perfect treat for dog lovers JONAH HAUER KING (left) and Ashley Judd, with dog Shelby, portraying Bella, in a scene from Columbia Pictures’s A Dog’s Way Home.

By Lindsey Bahr The Associated Press

OW much of a sweet tooth do you have when it comes to movies? It’s a question you might want to consider before stepping out for A Dog’s Way Home, W. Bruce Cameron’s adaptation of his book about a dog who finds her way back to her owner across 400 miles of Colorado terrain, because this is one sugary concoction. Not that it’s ineffective—I dare even non-dog lovers not to get a little misty eyed at the inevitable conclusion—it’s just very, very, very earnest, like a PBS Kids morning show meets a cute puppy pics slideshow with much higher production value. Bryce Dallas Howard provides the honeyed voice for the heroine, Bella, a stray who lives happily with some dogs and cats under an abandoned property until animal services snags about half (including her mom). She soon gets adopted by a kind college-aged kid across the street, Lucas (Jonah Hauer-King), who works at the VA and lives with his mom, a war vet who has depression, played by Ashley Judd. Bella is a very cute pup who grows into a very cute dog with limited grammar and comprehension skills that never quite evolve past that of a 4-year-old (i.e., “I’m ready to do ’go home!”). She also happens to be enemy No. 1 of the city of Denver after she falls on the wrong side of a ban on breeds designated as pit bulls, and impounds them on sight. “I know, it’s stupid,” explains an employee at the animal shelter admirably succinctly. Another character, Olivia, played by Alexandra Shipp of Love, Simon describes it as “basically racism.” This movie really has it in for Denver’s Ordinance Section 8-55. Once the authorities get word of Bella, and impound her once, her cozy existence with Lucas and his mom comes to an end and she goes to live, for a time, with some relatives of Olivia’s who live in New Mexico. But the dutiful and deeply nostalgic Bella decides to take things into her own hands and find her way back to Denver and Lucas. Directed by Charles Martin Smith, of such animal adventures as Dolphin Tale and Air Bud, A Dog’s Way Home is actually surprisingly intense. Bella goes

A SUPER-PREMIUM brand of pet foods, Equilibrio unveiled its new line of products to pet owners and veterinarians recently at the Summit Galleria Cebu in Cebu City. Gathering a total of 75 vets, business partners, and pet owners, the event showcased Equilibrio’s comprehensive suite of products packed with nutrients that are scientifically formulated to meet the needs of cats and dogs. During the event, Equilibrio also highlighted its commitment to advocating responsible pet ownership. “As a pet food brand, we are not just about giving pet owners the essential nutrients that their cats and dogs need, but also about helping them become responsible fur-rents,” said Johanna Emata, marketing manager of Neovia Philippines (www.ph.neovia-group.com). “We are excited to finally introduce these Premium Pet Foods here in Cebu, dedicate to providing excellent nutrition for our cats and dogs.”

Today’s Horoscope By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Tiffani Thiessen, 45; Mariska Hargitay, 55; Gail O’Grady, 56; Richard Dean Anderson, 69. HAPPY BIRTHDAY: Honesty will play a big role in how your life unfolds this year. Begin with self-evaluation, followed by an assessment of those you associate with. Look at your attributes and consider how to utilize your talents in order to reach your goals. You can get ahead if you follow proper protocol and concentrate on what it is you are trying to achieve. Your lucky numbers are 3, 14, 21, 29, 36, 40, 43.

ARIES (March 21-April 19): Take care of your responsibilities before someone complains. You are best to keep busy and to avoid lengthy conversations. Wasting time will leave you feeling unsatisfied, as well as make you look bad. HHH

TAURUS (April 20-May 20): Strive for excellence. How you approach your work and deal with others will make a difference to the way things unfold. Mingle with people who can help you get ahead. An emotional plea will pay off. Recognition will be yours. HHHHH

GEMINI (May 21-June 20): Put the changes you want to make into motion. Own what you do and say, and stand by your promises. How you handle others will make a difference, so refrain from using emotional manipulation, even if it’s tempting. HH

CANCER (June 21-July 22): Do things your way. Take a different route to get to where you want to go. Experience new people, places and pastimes, but don’t lose sight of who you are and what you are striving to become. HHHH

LEO (July 23-Aug. 22): Don’t let the changes going on around you throw you off your game. Concentrate on what you need to accomplish and use your skills and experience to reach your goals. HHH

VIRGO (Aug. 23-Sept. 22): Don’t let someone disrupt your world. Look inward and make changes that will help you be at your very best. Don’t share your thoughts or plans with anyone. Keep passwords and personal information secret. Walk away from indulgent people. HHH

dumpster-diving one day with a pack of mangy dogs she comes across, she witnesses poachers killing a cougar, befriends a CGI baby cougar, steals food from quite a few people and establishments, survives an avalanche, a freeway and even lives alongside a homeless man for a while. She is laser-focused on getting back to Lucas, however, and even the good

situations she comes across (like living in the very stylish and expensive home of a couple who take her in) aren’t enough. Although it might be a stretch to categorize this as a movie, A Dog’s Way Home is harmless enough and a nice little adventure that’s fit for the whole family. But you might want to have the tissues ready. n

New state-of-the-art dog monitor learns and reports unique activity and behavior patterns PROMOTING RESPONSIBLE PET OWNERSHIP THROUGH PET FOOD

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CAMBRIDGE, England—Pet product specialist Sure Petcare has launched Animo (youtu.be/PREvQwNoGEE), the lifelong activity and behavior monitor which learns and accurately interprets the unique behavior and activity patterns of a dog. The monitor delivers insights into a dog’s activity and sleep, as well problem behaviors such as shaking, scratching and barking, helping owners to understand the changing needs of their pet over its lifetime. Worn on a dog’s collar, Animo is suitable for all dogs. At just 22 gram Animo is lightweight, waterproof and uses a standard coin cell battery which lasts for six months. Using the Sure Petcare - Animo app via Bluetooth Low Energy (BLE), Animo monitors: n ACTIVITY. Set daily activity goals and view activity reports. n SLEEP QUALITY. Hour-by-hour sleep quality throughout the night; a poor night’s sleep can be an indication of discomfort. n CALORIES. Track calories burnt and compare to recommended targets. n BEHAVIOR TRACKING. Displays incidents of increased barking, scratching or shaking. n CONNECT WITH FAMILY AND FRIENDS. Share access

to the app with all caregivers. “Animo gives dog owners a window into their dog’s day: not only to tell them what he gets up to when they’re not around, but more important to spot changes in behavior and activity over time, which may signal changes in their pet’s health and well-being,” said Nick Hill, founder of Sure Petcare. “Combining Antelliq’s world-leading animal monitoring expertise, our pet industry experience and the advice of world-renowned dog behaviorists, Animo’s suite of algorithms begins to learn the animal’s unique patterns of movement; accurately interpreting them and reporting their corresponding activity and behavior types to the owner via our smartphone app. Animo tells owners more about their dog than they’ve ever known before.” Jon Bowen, behavior specialist at the Royal Veterinary College, said: “Because we spend so much time with our dogs, we think we know how they feel, but the reality is that we often miss things. Using monitoring we can get a much greater insight into what is really going on with our dogs, so we can spot the first signs of a problem. Products like Animo have a real advantage, because if we are going to take action based on what a monitor tells us, we need to have real confidence in the quality of information.” AP

LIBRA (Sept. 23-Oct. 22): Focus on personal and physical changes that will make you feel good about the way you look, who you are and the relationships you want to nurture. Make a point to distance yourself from those who bring you down. HHHHH

SCORPIO (Oct. 23-Nov. 21): Open your mind and listen to what others say. Once you have all the facts, make a decision based on what you feel you can live with and walk away from anyone or anything you don’t consider to be good for you. HHHH

SAGITTARIUS (Nov. 22-Dec. 21): Change begins within. Consider what you want and how best to get it while sticking to a set budget and not jeopardizing your position or your reputation. Don’t believe everything you hear, and stick to the truth to avoid backlash. HH

CAPRICORN (Dec. 22-Jan. 19): Push for what you want. Look at the logistics behind a moneymaking endeavor and consider who is involved before you promise anything. Emotional deception regarding contracts and money will unfold if you are gullible or too trusting. HHHHH

AQUARIUS (Jan. 20-Feb. 18): Take care of matters that could hold you back. Update documents and contracts that need to be addressed, and take care of any health issues quickly. Question anyone who shows signs of inconsistency or tends to exaggerate. HHH

PISCES (Feb. 19-March 20): Take better care of yourself. Do whatever it takes to limit excessive behavior, and concentrate on a better fitness routine that will encourage you to distance yourself from bad influences and people who are emotionally draining. HHH BIRTHDAY BABY: You are patient, innovative and courageous. You are ambitious and playful.

‘one-off’ BY ANDREA CARLA MICHAELS & ALAN ARBESFELD The Universal Crossword/Edited by David Steinberg

ACROSS 1 McMahon and Asner 4 Lady in a chocolatier’s logo 10 Nightlife spot 14 Stroke gently 15 Lean toward 16 First-rate 17 Bullfight cheer 18 Baseball film DVD that’s missing the last scene? 20 Fashionable 22 Nanny animal 23 Third Greek letter 24 Celebratory slap that doesn’t quite connect? 26 Socialist Marx 27 Tirade 28 Frantic scramble 31 Rap or rock 34 Rower’s need 35 4-Down suggestion 36 Near-miss remark that’s a clue to 18-, 24-, 50- and 58-Across 41 Santa ___ winds 42 Fitting

3 Alpha’s opposite 4 44 Crumb catchers 47 2017 World Series champ, slangily 49 At one’s ___ and call 50 Mostly get rid of? 54 Lacking a partner 56 Oktoberfest quaff 57 “Spare tire” 58 Slightly early marital restlessness? 61 Elected officials 62 Innovator’s spark 63 Gossiped 64 Vote of support 65 Org. 66 “I’m all ears!” 67 Roseanne’s husband DOWN 1 Many, many years 2 New ___, India 3 Shrek! author William 4 It aptly bookends “Google Maps” 5 Mount Hood locale 6 Deeply religious 7 “My concern is...” 8 Blow off steam

9 Sleeve tattoo spot 10 Duck, to a French chef 11 Appear imminent 12 E pluribus ___ 13 Second Greek letter 19 “Omigosh!” 21 Comedian Rock 25 Come to grips with 26 Corn syrup brand 28 “Geez!” 29 Like bachelor parties 30 Queen on Mount Olympus 31 Thom ___ shoes 32 Elbow-wrist connection 33 Political platforms? 34 A giant among Giants 37 Target of a heist 38 FedEx alternative 39 Fortune 500 abbr. 40 “Later!” 45 Nairobi resident 46 Slurpee kin 47 Simmer with anger 48 Old Toyota 50 Voltaire, theologically

1 Long Greek story 5 52 Literary uncle 53 Buddy who played Jed Clampett 54 Myanmar’s locale 55 Eye shades? 56 Wooden train maker 59 Stir in 60 “Good” cholesterol letters Solution to yesterday’s puzzle:

Show BusinessMirror

www.businessmirror.com.ph

Wednesday, January 23, 2019

BLIND SPOT BRUCE C.

FREELOADERS

THE designer is among the most famous in the Philippines but he is infamous for one other thing: being a moocher. The designer and his boyfriend are known for going out with friends to posh and expensive places and leaving before the final bill is presented. The couple just doesn’t do it here but even when they’re abroad. And we’re not talking about simple meals here, okay? Such meals usually involve at least P10,000. The couple also like expensive wines and liquor, so if you know them, you best be careful when you’re on a night out. And even if they’re around for the final bill presentation, the couple usually just leaves a thousand or two on the table and acts as if nothing happened.

EATING HIS WORDS

AMONG the six offerings of the annual Chinese film festival at Shangri-La Plaza is A Tale of Three Cities, starring Ching Wan Lau as Charles Chan and Wei Tang as Lee-Lee Chan.

13th Spring Film Festival to feature wartime love story of Jackie Chan’s parents

By Jt Nisay

HE 2015 war-romance film inspired by the knotty love story of the parents of Asian Hollywood superstar Jackie Chan is among the six selected offerings in the upcoming 13th Spring Film Festival. Titled A Tale of Three Cities, the film follows Ching Wan Lau as Charles Chan and Wei Tang as Lee-Lee Chan in a gripping chase of fated lovers that spanned two wars and three places in over 20 years. The film was shown in a recent exclusive press screening for the annual Chinese filmfest, which will run free of charge from January 30 to February 5 at the posh, five-theater cineplex of Shangri-La Plaza called Red Carpet. According to Lala Fojas, Shangri-La Plaza executive vice president and general manager, the Spring Film Festival has served as a vehicle for the public over the past 12 years to appreciate the richness and the

artistry of the Chinese film industry. “This year’s edition will present a curated lineup for audiences to appreciate Chinese culture and arts, both in terms of modern day, as well as traditional China,” she said of the festival, which is presented in partnership with the Ateneo Ricardo Leong Center for Chinese Studies and in cooperation with the Film Development Council of the Philippines (FDCP), Ateneo Celadon, CHInoyTV and Credit Suisse. The other films in this year’s slate are I Belonged to You, the romance title that won Best Film in the 30th Tokyo International Film Festival; Lost in White, a crime thriller that centers on a dead body pulled out of an icy river; and Detective Chinatown, a comedic story that follows a budding Chinese Sherlock Holmes. Rounding out the list are The Third Way of Love, which tells the tale of star-crossed lovers; and Lost in Hong Kong, a story of a former artist dealing with the realities of life. In a message by Liza Diño, the FDCP chairman

emphasized the role of film to serve as a bridge for people of different countries and cultures to understand, accept and recognize one another. “The Spring Film Festival highlights that through films, we will realize that there are so many ways in which we are similar, and those that make us different from each other are something to celebrate rather than divide,” she said. The Spring Film Festival, which kicks-off ShangriLa Plaza’s Chinese New Year Celebrations, is just one of many such events that the luxury mall in Mandaluyong City stages every year, along with the International Silent Film Festival, Eiga Sai, Cine Europa and the Danish Film Festival, among others. Fojas said their rich collection of cultural offerings and activities show their strong commitment in catering to a “very discriminating market.” “They really appreciate the arts and culture,” she said. “Film festivals are a means by which we’re able to provide them with their lifestyle needs.” n

AT the height of his fame, the actor said he would never franchise a restaurant which he is endorsing. That’s because his onscreen partner has a franchise of such a restaurant and he doesn’t like his partner. “I don’t want her to say I’m trying to be like her,” he would tell his friends. Well, guess what? The actor, who is no longer as popular as he was then, now has a franchise of the restaurant and it is in his hometown. We wonder if he will keep it a secret from his erstwhile partner?

NO BOUNDARIES

THE disgraced actor once had a semiretired celebrity helping him. The latter even agreed to let the disgraced actor stay in his house and in the marital bedroom, as the family’s abode is not big. The disgraced actor stayed there with his girlfriend at that time. But guess what? The actor was abusive and even asked the semiretired celebrity for permission to have sex in the shared bedroom. Since then, the celebrity has stayed away from the actor, as have many others who have helped him. The actor is just too much, even for the kindest people.

BITTER EX

A SENIOR actor and his ex-wife have been separated for quite some time but when the latter got married, he was despondent. The actor is lucky that his kids love him so they took him abroad for a vacation. He is also sad that his ex married a good-for-nothing guy. Now, the senior actor has his eye on a former beauty queen who has a child with a controversial actorpolitician. It’s not clear if the beauty queen likes him back, as she is reportedly looking for someone with money as the father of her child is a deadbeat.

THE Manila Symphony Orchestra

THE MANILA SYMPHONY ORCHESTRA PRESENTS ‘THE TITAN’

PENN BADGLEY and Shay Mitchell of Netflix Original series You take questions from the media.

FANS and the media gathered for a meet-and-greet with the stars of You.

Stars of Netflix hit series ‘You’ wow Manila LOVERS of the new Netflix Original series You were in for a treat as its two leading actors recently visited Manila for an exclusive press event and special meetand-greet with select fans. Now streaming on Netflix, You is an American psychological thriller series developed by writer, producer, and film director Greg Berlanti and American writer and producer Sera Gamble, and produced by Warner Horizon Television. The story follows a New York bookstore manager, Joe Goldberg (Penn Badgley), who falls in love and becomes obsessed with a customer named Guinevere Beck. Shay Mitchell plays Peach Salinger, Beck’s best friend. Partners from the Philippine press and the

entertainment industry flocked to The Peninsula Manila for an exclusive sit-down panel, “In Conversation with YOU,” with the show’s biggest stars, American actor Penn Badgley and FilipinoCanadian actress Shay Mitchell. The latter has made a name in American prime-time TV by playing strong female personalities. During the special tête-à-tête with the media, the pair discussed the success behind You while delving into the show’s impact on audiences who use social media—including its effects, both good and bad. To celebrate their special stay in the country, Netflix hosted special events for the entire week for the enjoyment of fans. The meet-and-greet between

Badgley and Mitchell was held at Greenbelt 5 in Makati City in which superfans spent a day in conversation with the stars. Customers of Globe Telecom (www.globe.com.ph) can catch You plus other electrifying Netflix show titles while on the go through the official Netflix app. Globe Prepaid customers can subscribe to their favorite promos like GoSAKTO90 and GoSURF50. TM customers who subscribe to EasySurf50 and up will get an additional 2GB for free to GoWATCH their fave shows anytime, anywhere from Netflix and other streaming services. It’s never been this easy stream the best entertainment from legitimate sources.

THE Manila Symphony Orchestra presents their Season Finale concert, The Titan, on January 30, 8 pm, at the Cultural Center of the Philippines (CCP) Main Theater featuring rarely performed pieces: Mahler’s “Symphony No. 1 ‘Titan’” and Ravel’s “Piano Concerto in G Major.” The US-based Filipino pianist Victor Asuncion will share the stage with MSO as guest soloist under the baton of Prof. Marlon Chen as guest conductor. Victor Asuncion, hailed by The Washington Post for his “poised and imaginative playing,” has performed in concert halls around the world as a recitalist and concerto soloist. He played his orchestral debut at the age of 18 with the Manila Chamber Orchestra and his New York recital debut in Carnegie’s Weill Recital Hall in 1999. He has worked with conductors, including Sergio Esmilla, Enrique Batiz, Mei Ann Chen, Zeev Dorman, Arthur Weisber, Corrick Brown, David Loebel, Leon Fleisher, Michael Stern, Jordan Tang and Bobby McFerrin. He has also performed with esteemed artists such as Lynn Harrel, Zuill Bailey, Andres Diaz, Antonio Meneses, Joshua Roman, Cho-Liang Yan and many others. Joining in this stellar collaboration is internationally awarded youth orchestra, the Manila Symphony Junior Orchestra. They won the first prize in the 12th Summa Cum Laude International Music Festival held at the Golden Hall of the Musikverein in Vienna, Austria, and went on to perform in concerts in Venice, Florence and Rome. MSO’s new concertmaster and violin prodigy, Diomedes Saraza Jr., also joins MSO in the season finale concert. Tickets are now available at www.ticketworld.com.ph, or call 891-9999.

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Wednesday, January 23, 2019

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USE POST-HOLIDAY SALES TO TREAT YOURSELF By COUrtney JesPersen NerdWallet MUCH like Santa, you spent this holiday season delivering gifts to your family members and friends. But now that the flurry of tinsel and wrapping paper has settled, it’s time to be your own Santa. Don’t worry, no dropping through a chimney required. Just the gift-giving— and, OK, maybe the cookies, too. That’s right: Now it’s time to buy a few gifts to give to yourself. Done the right way, treating yourself can be enjoyable and within your budget. Here’s why it’s a good time to look out for No. 1. YOU CAN GET WHAT YOU WANT WAS your heart set on something that didn’t appear under the tree? Now’s your opportunity to get your hands on exactly what you had in mind. And since the post-Christmas period features deals on a variety of products, you’re likely to find what you want at a discounted price. The price-tracking app Paribus historically has seen price drops in categories, such as home décor, gaming systems, cell phones and clothing in the two weeks after Christmas. “Sometimes, we’ll see that retailers are trying to get certain products off the shelf as the Christmas season comes to a close,” says Jenna Kaye-Kauderer, head of Paribus. That’s the case with holiday decorations, wrapping paper and winter clothing, for example. There’s no need to go crazy and buy everything that’s on sale at the end of December and beginning of January. But if you’re eyeing a new pair of knee-high boots, or another item that’s been discounted, consider spending some of the Christmas money or gift cards you may have received. IT COULD MAKE YOU FEEL BETTER COULD shopping for yourself—and scoring deals—make you happy during the winter season? It’s possible. Scott Rick, an associate professor of marketing at the University of Michigan’s Ross School of Business, has researched consumer spending habits. He says people experience different levels of distress when spending money and buying gifts. “Tightwads,” for example, kick themselves for not buying things they actually wanted to buy, he says. “Spendthrifts” are the opposite. They overspend, but still end up unhappy. Rick says there’s a happy medium between these two. “There’s this middle ground of what we call unconflicted consumers, who have some distress when they spend money... just enough to keep them sort of in line,” Rick says. “They don’t completely deprive themselves,” he says. “They don’t go nuts. They are happier, on average, than most tightwads and spendthrifts.” So forget postholiday blues. The freedom of buying some gifts for yourself, within reason, could actually be beneficial. IT CAN BE PART OF A BALANCED BUDGET ALLOWING room for self-spending is also part of a healthy budget. “You don’t want to sacrifice your whole life until retirement just eating ramen noodles or never buying something for yourself,” says Robert P. Finley, a certified financial planner and the principal of Virtue Asset Management in Illinois. Finley says it’s important to consider your emotional and mental well-being. “I think it’s more than acceptable to buy yourself presents, especially around the holidays, or even not the holidays, as long as you’re not running up your credit cards to a very high amount and taking on a lot of debt just to try to make yourself feel better,” he says. As long as you keep your spending within realistic boundaries, you shouldn’t have to feel overly restricted. The 50/30/20 budget is a helpful guideline. According to this model, you can spend up to 50 percent of your takehome income on needs, 30 percent on wants and 20 percent on savings and debt repayment. Gifts for yourself would fall within the 30 percent portion—as long as you’re not way off in the other categories. So go ahead and buy that sherpa blanket that wasn’t under the tree. It would look so good on your couch.

Sticks and carrots SUI GENERIS CARLO ATIENZA

biblisko@gmail.com

HAVE always been an adapter. I take pride in doing what I can do to make it easier for the people I work with. It probably helps that I am a people pleaser, and it comes naturally to me to volunteer what I can to make other people’s load easier. I am not being a doormat. I just find that people work easier when they know they are safe with me. It probably also helps that I used to be a teacher, which helped me accept different personalities and temperaments, not to mention talking to parents with different predicaments. When I became a manager, one of the biggest challenges I faced was keeping my team engaged. Employee engagement is one of the major issues faced by leaders today. It is the discretionary effort put in by an employee that shows their commitment to their deliverables, and dedication to finish more than what was expected. The question of how to make your employees do more than what is required on paper is a balance of sticks and carrots. As a leader, we can easily get lost in the numbers and think of employees as just statistics. We measure productivity and ensure everybody on the team is efficient and meets their deadlines. Nothing wrong about that. It is actually expected because as leaders, we are charged to be efficient and deliver results. Because of these demands, a leader might face such pitfalls as regarding employees are just statistics and forget that they are also people. There are a number of things I discovered which I can do to improve my team’s engagement without drilling down what is required of them. Here are some of what I have learned. I learned from previous mentors to think in terms

of emotional banks. As you deposit goodwill to your employees, they will do more than what is expected of them even if you don’t ask. You do this by being genuinely interested in their lives. One of the most unexpected one-on-one discussions I had was with my team member Lisa (not her real name). I noticed she had not been coming in on time, and when she was at work, she seemed to be drawn out and tired. She had not been meeting her deadlines, and it seemed even the quality of her work had become impacted. I decided to talk to her. In our discussion, we began talking about revisions to her materials and timelines, and I asked her what I could do to help. When I saw that she was distracted, I asked her how she really was—and then she burst out crying. It turned out that her father was in critical condition and her family was having trouble dealing with it financially and emotionally. I set aside our discussion for the meantime and asked her what happened. Between sobs, she told me the trials they had been going through. After that talk, it became easier for her to understand that while we all have personal emergencies, she still also needs the job for her family. It was already enough for her that she was able to share to me her burden. She knew I understood where she was coming from, but she also knew what was expected of her. It became easier talk to her and help her meet her deliverables. When you show genuine care for employees, it becomes easier for you to ask for help especially during crunch time. Not everyone will have a personal crisis like Lisa, but you can still show you care for them through other means. One of the most effective methods is bringing food. Filipinos love to eat and my team is no exception. When a project is not yet finished and the team is on the brink of doing overtime, we would buy food as a hint to do overtime—and as a way of acknowledging their efforts. But even if they do not do overtime, I still make it a point to bring food once in a while, because I don’t want them to equate food with overtime. This investment pays off dividends in the end because happy employees make productive employees. Alongside showing genuine concern, your

team also needs to know you’re a human being. Oftentimes as leaders, we project an aura of independence and unyielding seriousness that our people forget we also have emotions. Humanizing yourself to your people does not necessarily mean confiding your darkest secrets. Having lunch or sitting down with them during their breaks is enough to dispel any notion that you only think about the business. It also opens more lines of communication because you get insights into what motivates them. It becomes easier for you to encourage them because you know what drives them. Richard Branson got it right when he said, “Take care of your employees and they’ll take care of your business.” Taking care of the company also means knowing when to call out team members. Most managers know the principle of “praise in public, correct in private,” which basically means to give people room to save face. In Filipino culture, this is especially important when dealing with our team members. When we talk to them in private, you have to understand that they will not listen to you unless they have a good working relationship with you. They need to understand that you are correcting them for their own good and not to embarrass them. And they will only understand that if they know you mean well. It will help them improve on their own. But there are also instances when you have to make everyone accountable as a team. When a team member’s work affects the entire team’s deliverables, it becomes a burden for the rest of the team. While you are the leader and the ultimate responsibility rests on you, the other members can share the responsibility. When everyone is willing to help a team member without sacrificing their own deliverables, it becomes easier for the team member to pull his own weight without having to drag everyone down—that is one indicator that your team is engaged. People do not know how much you know, until they know how much you care. This truism is especially true for leaders. When our team do not see us as leaders who will take care of them, they will eventually look for one. Let us not wait for that to happen. Start talking to your team. You might be surprised what they are willing to do to get the job done. n

Philippines’s well-loved Filipino brand FAST-FOOD giant Jollibee remains the most awarded quick service restaurant in the country, as its industry-leading marketing campaigns in 2018 won the approval of experts and audiences from around the world. Reaping the most awards and recognitions for the chain was its game-changing brand “love” campaign with creative agency McCann World Group Philippines, the #KwentongJollibee Valentine Series, which captured millions of hearts when it was launched in February 2017. The trilogy that encouraged viewers to celebrate the joys of love with the now iconic “Vow,” “Crush” and “Date” stories remains one of the most viral campaigns in recent history, and started the trend of heartfelt brand stories told in long-form videos in the Philippines. It was one of the campaigns which shone brightest at the 2018 APAC Effie Awards in Singapore as Jollibee went home with two Golds, one Silver and two Bronze trophies. The brand also bested other companies from

all over Asia to win the Brand of the Year (2nd place) and Marketer of the Year (3rd place) honors. The Effie Awards recognizes the region’s most outstanding marketing communication works that brought results in meeting strategic objectives. Kwentong Jollibee also received the Bronze recognition for Tangrams Effectiveness at Spikes Asia 2018 for its innovative digital marketing strategy that stood above the rest of Asia Pacific brands. The campaign was, likewise, shortlisted as one of the best for having driven results in Asia at the WARC Prize for Asian Strategy. Moreover, it was also one of only three campaign finalists from the Philippines at the New York Festivals International Advertising Awards 2018, earning a short list spot in the Creative Marketing Effectiveness category. The brand’s winning streak for its Valentine series continued with its 2018 lineup— “Homecoming,” “Signs” and “Status”— taking the spotlight during the YouTube Ads

JOLLIBEE collected a slew of honors at the 2018 APAC Effie Awards in Singapore.

Leaderboard Philippines for first semester of 2018. All three videos, along with the Alex Wassabi for Jolly Crispy Fries, made it to the list of the most watched YouTube ads in the country during the period. This is the first time in the history of the YouTube Philippines Leaderboard that a brand dominated their semesterly ranking by claiming

four out of the ten spots. “For us in Jollibee, we always want to create campaigns that are relevant and engaging for our market. We are constantly thinking outside of the box and challenging ourselves to deliver unforgettable and effective digital marketing and PR campaigns that will help further drive sales and foster brand love,” said Francis Flores,

Jollibee brand chief marketing officer and Philippine Marketing head. “We share the international recognitions that we have received with the Filipinos who love the brand. These awards are a proof that the Philippines can indeed compete with foreign brands when it comes to world-class advertising, PR and marketing.”

www.businessmirror.com.ph • Editor: Tet Andolong

BusinessMirror

Wednesday, January 23, 2019

BE RESORT, MACTAN Cebu’s timeless tropical retreat

BE RESORT, MACTAN reinvents itself as a contemporary tropical getaway offering modern meeting facilities, new dining and leisure experiences, all coupled with bespoke Cebuano hospitality from a dedicated team.

By Leony Garcia

EN years after its launch as an off-the-wall beach haven in Punta Engaño, Mactan Island, Cebu, BE Resort, Mactan reinvents itself as a contemporary “Instagramable” tropical getaway now bringing to the table more modern meeting facilities, and offering new dining and leisure experiences, all coupled with bespoke Cebuano hospitality from a dedicated team.

The resort’s new aesthetic combines the use of wood, earthy hues, and indigenous patterns that reflect the Cebuanos’ love of their homegrown crafts and world-class

quality. These designs are reflected in the resort’s ever-evolving lobby and hallways, the new function venues, all the way to the three different room types: the

standard BE Cool; the premium BE Chic; and the BE Classy suite category. Three new function venues were added to BE Mactan’s amenities. The Talima, Nalusuan, and Hilutungan—named after islands and bodies of water surrounding Mactan. The fourth function venue boasts of floorto-ceiling glass windows that frame a breathtaking view of the beach, a tribute to one of the most famed expeditions of all time—Kontiki. Marrying a love of world travel and exploration while patronizing one’s own, is the new design inspiration the resort pursued. The picturesque surroundings continue to capture the hearts of blossoming debutantes and blushing brides as the beach serves as blank canvass for memorable celebrations–be it birthdays, weddings, or corporate events. Other facilities include a fitness studio and billiards room, a gift shop, a kiddie wading pool, and an infinity pool. The revamped Salt Restaurant & Bar serves local flavors with global

flair, with some regional favorites from Ilocos, Negros, Panay, and Cebu. The restaurant’s indoor and outdoor spaces, coupled with a far-stretching canopy can seat close to 200 diners. Salt’s sophisticated, Mediterranean-inspired interiors is carried over into the new addition to BE Resort Mactan’s dining repertoire, The Deck, an al fresco lounge overlooking the Hilutungan channel that allows a glimpse into the Mactan community’s idyllic coastal lifestyle and the nearby watersports and activities. Increasingly favored by millennials looking to retreat from the hustle and bustle of the city, as well as families seeking a value-laden staycation, BE Resort Mactan offers a tasteful, timeless tropical adventure made for everyone to enjoy and remember. Visit www.beresort-mactan.com and follow BEResortMactan on Facebook to know more. For inquiries and reservations, call (032) 236 8888 or contact info@beresorts.com.

BE RESORT, MACTAN’s new aesthetic reflects the Cebuanos love of their own indigenous crafts and world-class quality.

THE resort offers three room types – the standard BE Cool; the premium BE Chic; and the BE Classy suites.

THE Deck is an al fresco lounge overlooking the Hilutungan channel that offers a glimpse into Mactan’s idyllic coastal lifestyle and water activities.

THE revamped Salt Restaurant & Bar serves local flavors with global flair and regional favorites from Ilocos, Negros, Panay, and Cebu.

Business

E2 Wednesday, January 23, 2019

When ‘fringe real estate’ becomes prime Amor Maclang

FIRST DIBS IN REAL ESTATE

OWORKING spaces used to be the primary purview of tech start-ups, emerging businesses and freelancers, but in the Philippines, what used to be a fringe real-estate phenomenon is now a mainstream and has become the preferred choice of many big corporations who have chosen a more relevant and agile work environment. Certainly in the Philippines, coworking has taken over some of the prime real-estate spaces in the Philippines and every major developer is now hosting a coworking space that caters to this burgeoning demographic. ArthaLand has Common Ground and Daiichi has Spaces. Very recently, Acceler8 by UnionSpace, a pioneer in this space, is opening another coworking space in Rockwell Makati this January. This workspace is made possible by a partnership with Phinma Properties, one of the leading real-estate developers in the country. Acceler8 has decided to work with Phinma Properties for this upcoming center to expand and reach out to a wider demographic outside their usual sphere. With this new center, Acceler8 is hoping to work with corporations, multinational companies, expats in the Rockwell area and students from Ateneo graduate school and law school. When asked about this decision to partner with a coworking brand,

Julian Concepcion, president of Phinma Properties, said, “We understand that employees need spaces and connections to empower them to collaborate and innovate. We believe that flexible office spaces are a response to the changes in market demand around shifts of how people live and work.” Bianca Cruz, general manager for Acceler8, has expressed her excitement with the partnership, as well: “Coworking as a concept is relatively new to Asia, but we have been one of the first companies to hinge on the fast-growing business of flexible office spaces. We provide business solutions such as serviced office suites, coworking seats, virtual office plans, meeting rooms, spaces to hold events and much more. We are excited to work and learn from one of the top developers in the country Phinma Properties and see how we can grow the industry together.” This partnership with huge and established conglomerate is not new to Acceler8. In 2017, this coworking brand has worked with Ayala Land

ACCELERA8 Makati

ACCELER8 by UnionSpace in Phinma Properties

Offices in managing their coworking brand, Clock In—a first in the flexible workspace industry in the

Philippines. Acceler8’s work with Clock In has been an astounding success. They have reached 100-percent

BGC property earns LEED Gold certification

ONIFACIO Stopover Corporate Center, an office building owned and controlled by the Fort Bonifacio Development Corp. (FBDC), was awarded a Gold certification by the US Green Building Council under its Leadership in Energy and Environmental Design (LEED) program. The LEED certification is a globally recognized standard of sustainability achievement that provides independent validation of a building’s quality and green features. It assesses compliance to standards on energy conservation, water usage, air quality, building materials used and construction process, among others. Bonifacio Stopover Corporate Center only applied for a silver LEED certification but achieved gold. It earned the accolade because it has optimized energy performance achieved by minimizing the operation of its elevators, lightings and air-conditioning units throughout the day; enhanced com-

missioning by checking and passing the equipment air emission; observed proper waste management through segregation and multiple recycle bins; managed water use by installing sensors to lavatories, urinals and toilets; and provided alternative public transport access on site like the BGC Bus. “BGC [Bonifacio Global City] is committed to designing and building sustainably. We are honored to be recognized as one of the leaders in the green building movement and are enjoining others to do the same,” said Christine Novera, manager for Business Development, Property Planning and Office Leasing (FBDC). Sustainability is in BGC’s master plan. Apart from ensuring that the city remains a densitycontrolled environment where utilities and traffic flow determine the intensity of development, it continuously creates and implements projects that keep the city green and future-ready.

occupancy in just two months; that means all the serviced office suites and coworking seats in their centre have been sold. With Phinma Properties and Acceler8 working together, work and working will now have a different meaning. The comfort and welcome of a home and the seriousness of work come together in this coworking space. Tedious and long days at work will be replaced with more relaxed and more productive days because of the collaborative atmosphere that coworking spaces bring. More than bringing a renewed meaning to work, Acceler8 also aims to create real and lasting connections that last outside the confines of the workspace. Part of our mission is to cultivate a workplace that is highly conducive for work as well as for networking and socializing, which is why they aim to bring this culture to the neighborhood of Rockwell. A healthy, positive work environment is of prime importance to Acceler8 since the beginning, which is why Mari Ugoy, senior marketing manager for Acceler8 is very excited to bring our workspace to Rockwell Makati. She has worked closely with the communities in Finman and Paseo, and she is very eager to start a new community in Rockwell. “Besides leasing out the offices, I find that the most challenging yet rewarding part of opening a new facility is being able to bring the people in it together. As one of the more collaborative workspaces present in the Rockwell Makati area, we look

forward to welcoming students taking up different disciplines and businesses of different sizes and natures to make up the dynamic of our community,” Ugoy said. It’s especially thrilling to know that we get to empower start-ups and SMEs [small and medium enterprises] with a prestigious address without having to hold them back with initial capital constraints and long-term commitments. Not to mention the regional reach they have access to as a member of Acceler8. They can expect the same collaborative work space and network of contacts in our other SEA locations in Malaysia, Indonesia and Thailand,” she added. Acceler8’s upcoming workspace is in the busiest, most prestigious neighborhood in Makati: Rockwell Center. This neighborhood houses some of the most reputable companies in the Philippines like Nestle Philippines, Eatigo and Wyeth Philippines, among other household names. The professional environment of the Rockwell neighborhood is a perfect incubator for small companies and businesses trying to network with more people in their chosen industries. Apart from its professional environment, Rockwell is also known to some as a place for leisure and relaxation. Rockwell is home to the famous Power Plant Mall, one of the more high-end malls in the Philippines. The Rockwell neighborhood is a one-of-a-kind environment as it brings together professionalism and leisure in one place. This is perfect for on-the-go individuals who like to have a good mix of both in their lives. The ecosystem in Rockwell goes perfectly well with one of Acceler8’s missions, that is, to create real and lasting connections in the workplace. Acceler8 has two other workspaces in Makati, 111 Paseo in Legaspi Village and Finman Center in Salcedo Village. This center in Rockwell will be housing 24 serviced office suites, three meeting rooms, a suite for dedicated desks and a spacious, ultramodern coworking area. Like its other centers, Acceler8 designed this flexible workspace in Rockwell to inspire collaboration and partnership between the coworkers. The latest Acceler8 center will be offering discounts and limited-time preopening rates to their serviced office and coworking plans. For the first time as well, they are extending special rates to Ateneo graduate school and law school students for their workspace in Rockwell.

sMirror

Wednesday, January 23, 2019 E3

The Digital Property Seeker Series 2019: 2018 real-estate market overview

HE Digital Property Seeker Series of 2019 consists of data collected from the Lamudi platform.

They comprise of five categories, namely: n House n Condo n Foreclosed properties n Land n Apartment Each category is made up of four sections: Most Searched Location, Age, Gender and Area of Residence of property seekers, with each containing three data indicators. These are Sessions, Pageviews and Leads. Sessions is a group of user interactions with your web site that takes place within a given time frame. A click is equivalent to one session, which lasts for 30 minutes. Time in excess of 30 minutes is considered as a new session. Pageviews are the recorded pages that were visited while Leads are the inquiries made. Based on the data collected from January to December 2018, Quezon City consistently made it to the top 5 across all categories. In fact, it was ranked the highest with the exception of the Condo category. It did, however, place second to Makati City for the Most Searched Location and Area of Residence categories. Quezon City garnered the most interest. When it came to Age group, it was the 25- to 34-year-old bracket that held the top spot regardless of category. The 35 to 44 Age group would have been the second placer in all of the categories with the exception of one; it came in third after the 18- to 24-year-old bracket in the Apartment category. The Gender section was unanimous with Female property seekers, exceeding their Male counterparts. There was a commanding lead in each category except for Land. They came within a few percentage points of each other for the three indicators. Female property seekers, however, still led in that category.

Introduction

THERE were many notable highlights and trends that defined the real-estate industry in 2018, most of which focused on Metro Manila. According to JLL, “The Metro Manila property market is seen to maintain an upward trajectory despite the recent headwinds in the Philippine economy. The real-estate market remains to be resilient, exhibited by the modest performance on the demand side, and the Philippines maintain positive investment environment from credit rating agencies’ view.” Other parts of the country were also highly involved in the real-estate industry’s robust growth. Several residential and infrastructure projects were being built in different cities and based on our recent study about the Emerging Cities 2018: Condo Market, the cities like Iloilo City, Clark (Pampanga) and Davao City had one of the top leverages we have seen last 2018. These are poised to play their own significant roles in the year ahead. Similarly, with the present administration’s “Build, Build, Build” program gaining momentum, various real-estate developers are already formulating their strategies around it. The areas where the 75 flagship infrastructure projects of the BBB will be constructed are expected to bring about significant economic growth within their respective regions, encouraging both the local government and private businesses to invest in such areas. The BBB is projected to cost above P8 trillion and is envisioned to create more jobs that would eventually result in inclusive growth for the country. The real-estate office condo segment also figured prominently in 2018. This was boosted by the Philippine Offshore Gaming Operators and business-process outsourcings. Colliers reported that Pogos represented 25 percent of office take-up by the third quarter of 2018. BPOs, which can be further divided into knowledge-process outsourcing (KPO) and voice, took up 26 and 16 percent respectively. Together with

the non-BPO traditional office requirements, these companies kept vacancy rates below 5 percent within such period. Rental rates rose by 13 to 18 percent in Metro Manila on the strength of high demand. Property prices continue to increase as well and there are more office spaces in the pipeline for 2019. This bodes well for the residential realestate segment which would be crucial in providing good housing options in these locations. Lamudi’s search data studied the interest of property seekers in residential properties contained in its platform, providing adequate evidence on which locations are garnering the most interest and where it’s coming from.

MOST SEARCHED LOCATION CITY

SESSIONS PAGE VIEWS

LEADS

QUEZON CITY

20.79% 17.68% 16.78%

PARANAQUE

10.03%

LAS PINAS

9.22% 10.40%

6.41%

6.30%

7.58%

CEBU

3.07%

4.17%

3.41%

PASIG

3.83%

3.44%

3.77%

OTHERS

55.87% 59.19% 58.05%

House

THE Most Searched Location for the House category was the country’s largest city. Quezon City outperformed other Metro Manila areas for all three indicators. It had more than double Sessions (visits) at 20.79 percent than second ranking Parañaque City at 10.03 percent. Pageviews comprised 17.68 percent and 9.22 percent, respectively, for the top 2 cities. It had slightly different ratios when it came to Leads performing 16.78 percent against Parañaque’s 10.40 percent. These indicators clearly show that Quezon City is the most popular location for Houses among property seekers. Rounding out the top 5 are Las Piñas, Cebu and Pasig. With the exception of Cebu, these locations provide more affordable options for those working within the immediate vicinity of Metro Manila’s main CBD’s. Those choosing to set up their residence in these areas could easily access the vastly improved public transportation network promised by the BBB. Cebu also stands to benefit from the BBB’s infrastructure projects. It has three major bridges that will connect it to Bohol and Negros. This will be complemented by an expressway, as well as a bus rapid transit system. The indicators show that it is slightly ahead of Pasig in terms of Pageviews. Conversely, Pasig narrowly beats Cebu when it comes to Sessions and Leads. They are less than 1 percent apart in all three instances. Property seekers from the 25- to 34-year-old age bracket have expressed the highest interest. All indicators have them surpassing the 35-percent mark. Females showed a convincing majority over their male counterparts, which was collectively at 60 percent region. According to The Outlook 2018: Lamudi’s Comprehensive Look in the Philippine Real Estate, millennials are still the most curious, accounting for the biggest chunk of our page visit. This market grew up in the age of digital devices and Internet access that make searching and buying properties more convenient for them. When it came to Area of Residence, it was again Quezon City on top. Parañaque and Las Piñas which previously occupied second and third place for the Most Searched Location were, however, replaced. Data showed that users from Makati and Ma-

nila respectively took their spots. Cebu and Pasig were similarly placed in the fourth and fifth spots.

MOST SEARCHED LOCATION SESSIONS

PAGE VIEWS

MAKATI CITY

17.80%

18.58% 21.68%

QUEZON CITY

15.37% 14.17% 12.20%

TAGUIG

10.91% 11.86% 12.58%

MANILA

11.68%

CITY

MANDALUYONG 10.68%

OTHERS

LEADS

10.15% 9.69% 9.33%

9.94%

33.56% 35.91% 33.90%

Condo

THE top 5 dominate the Most Searched Location for this category. They represent more than 60 percent of searches among all the possible cities to be selected. Beyond that, the aggregate of Other cities represented a mere 33.56 percent (Sessions), 35.91 percent (Pageviews) and 33.90 percent (Leads). ItisnosurprisethatMakatioccupiestheNo.1 spot. The city is home to the country’s premier business district. Office workers could simply walk to their workplace from their condo. What is revealing about this data is the placement of Quezon City at No.2. The increased conveniences of public transport has made it easier to come from this location with the Metro Rail Transit and Light Rail Transit lines intersecting in Cubao, a main junction. Coming in third is Taguig, which was expected to rank higher, though nevertheless is among the top 3 for Condos. The rapid developments in the BGC area are one of the reasons why condo developments are high in demand. Multiple world-class corporations are also located in this area. It didn’t come as a surprise that Metro Manila cities occupied the top spots among Most Searched Locations as cities in the Metro generally cater to the demand for both luxury and midrange condos. According to the 2018 Market Snapshot by JLL, “Conditions in the residential condominium market remained solid with local and foreign high net-worth individuals leading the demand for the luxury price segment while mid-income earners and OF families taking up units in the midrange segment.” The 25- to 34-year-old Age group comprised the highest percentage of searches. They tallied 44.34 percent (Sessions), 45.43 percent (Pageviews) and 50.66 percent (Leads). The Leads generated are an especially strong indicator of this Age group wanting to experience condo living. Females, likewise, outnumbered males in the Gender category. The males only had 37.14 percent (Sessions), 40.61 percent (Pageviews) and 34.79 percent (Leads). In the Area of Residence category, property seekers came mostly from Makati. They totalled 24.62 percent (Sessions), 23.59 percent (Pageviews) and 30.28 percent (Leads). A close second place, however, were users from Quezon City. They totalled 24.36 percent (Sessions), 20.50 percent (Pageviews) and 21.81 percent (Leads). It is possible that those presently staying in condos in Makati or Quezon City are looking to upgrade. The two cities are, likewise, in the top 2 for the Most Searched Locations in this category.

Foreclosed property

THE Most Searched Locations are more evenly distributed, with Other cities constituting the bulk of the inquiries at 76.83 percent (Sessions), 80.34 percent (Pageviews) and 79.35 percent (Leads). Quezon City, however, is once again at the top. It is joined by three cities from Cavite province: Dasmariñas (second place), Bacoor (third place) and Imus (fifth place). Las Piñas at fourth place completes the top 5. This indicates that interest in Foreclosed properties is not concentrated in just a few cities which shows that investors are

considering locations in different parts of the country.

MOST SEARCHED LOCATION CITY QUEZON CITY

DASMARINAS BACOOR

SESSIONS

PAGE VIEWS

LEADS

6.96%

7.05%

7.03%

5.57%

3.62% 2.56%

4.18%

3.67%

4.29%

3.30%

3.14%

3.80%

IMUS

3.16%

2.18%

2.98%

OTHERS

76.83% 80.34% 79.35%

LAS PINAS

The top Age group is the 25- to 34-yearold bracket. It comprised 37.54 percent (Sessions), 37.07 percent (Pageviews) and 44.74 percent (Leads) of the total. There were more investors willing to invest in Foreclosed properties than any Age group. The next was the 35- to 44-year-old bracket, making up less than half at 19.93 percent in Leads. Females, once again, represented close to two thirds of searches when it came to Gender. Their numbers totalled 61.66 percent (Sessions), 59.83 percent (Pageviews) and 65.36 percent (Leads) respectively. Most potential investors definitively come from Quezon City. It represents a stronger showing of 22.49 percent (Sessions), 18.43 percent (Pageviews) and 23.49 percent (Leads). Compared to its Most Searched Location output, Quezon City’s Area of Residence results conclusively shows where most property seekers in foreclosed properties come from. It does not however top the Others cities portion. Users of the platform coming from various parts of the Philippines posted the highest ranking for the Area of Residence portion. It represented 47.19 percent (Sessions), 56.87 percent (Pageviews) and 43.81 percent (Leads) of the tally.

MOST SEARCHED LOCATION SESSIONS

PAGE VIEWS

LEADS

QUEZON CITY

8.83%

7.83%

9.26%

TAGAYTAY

3.32%

3.11%

2.54%

3.13%

2.64%

3.00%

SANTA ROSA

3.05%

2.07%

2.81%

DAVAO

2.55%

2.48%

2.23%

OTHERS

79.11% 81.88% 80.16%

CITY

ANTIPOLO

Lot

SIMILAR to the Foreclosed Properties category, the Others cities section provided convincing numbers. It represented 79.11 percent (Sessions), 81.88 percent (Pageviews) and 80.16 percent (Leads) of the total. Quezon City, however, still held the top spot. It is joined by Tagaytay, Antipolo, Santa Rosa, Laguna, and Davao. The five cities mentioned only make up about 20 percent of the total. With the exception of Quezon City, it appears property seekers are looking to invest in land outside of Metro Manila. While it is not conclusive, these searches could be in response to the government’s initiatives to decongest Metro Manila. Those coming from the 24- to 35-yearold bracket remain the highest Age group out of the six. They generated 29.33 percent (Sessions), 31.09 percent (Pageviews) and 33.98 percent (Leads). It was more evenly balanced when it came to Gender, with Males trailing Females by a smaller margin. They comprised 47.60 percent (Sessions), 48.16 percent (Pageviews)

and 43.27 percent (Leads) of the total. Lot property seekers coming from Quezon City continued to place at the top of the Area of Residence section, representing 22.14 percent (Sessions), 18.67 percent (Pageviews) and 23.69 percent (Leads) of the tally. In addition to Quezon City, most of the potential investors in the top 5 came from Metro Manila. These are the cities of Makati, Manila and Pasig. Users coming from Cebu however registered at fourth place. Cebu is second only to Metro Manila in terms of population. Property seekers collectively coming from the country’s most densely populated areas top this category.

MOST SEARCHED LOCATION SESSIONS

PAGE VIEWS

QUEZON CITY

24.71%

21.88% 19.90%

MAKATI

11.95%

13.09% 14.11%

MANILA

7.53%

8.14%

8.36%

CEBU

5.42%

8.04%

7.28%

PASIG

6.01%

5.81%

5.67%

OTHERS

44.39% 43.04% 44.68%

CITY

LEADS

Apartment

THE Most Searched Location under the Apartment category is Quezon City. It garnered 24.71 percent (Sessions), 21.88 percent (Pageviews) and 19.90 percent (Leads) among the cities reviewed. This is more than 10 percent the amount of the second placer, Makati City. The rest of the top 5 are Manila (third), Cebu (fourth) and Pasig (fifth). It generally implies that Apartment living in metropolitan areas would naturally rank high in this category. Apartments are a less costly alternative to houses and in some cases, condos. It is a logical choice for those who are living and working in major metropolitan areas. When it came to Age, the 25- to 34-yearold bracket convincingly held the top position. It constituted about half of the total property seekers. At 47.41 percent (Sessions), 48.78 percent (Pageviews) and 51.41 percent (Leads), it overtakes the next Age group by a wide margin. Female Apartment seekers by far outnumbered Males in the Gender section. They represented 70.58 percent (Sessions), 67.86 percent (Pageviews) and 69.47 percent (Leads). It was only in the Apartment category in which Females commanded the biggest lead. For Area of Residence, Quezon City once again held the No.1 spot. It tallied close to a third of the numbers at 29.89 percent (Sessions), 28.13 percent (Pageviews) and 30.08 percent (Leads). This is followed by Makati (second), Manila (third), Cebu (fourth) and Pasig (fifth). However, Quezon City did not hold a commanding lead as it did over Makati in the Most Searched Location section.

OUTRO

WITH more of the infrastructure projects of the BBB program materializing, expect more rising property developments would be influenced by it. Metro Manila will continue to have its fair share of highprofile projects though there will likely be increased developments in the provinces, especially in Cebu, Davao and Iloilo. However, it will not be smooth sailing the whole way. Colliers has identified certain challenges ahead for the industry, including rising interest rates and inflation, private construction delays, uncertainty with the second package of the Comprehensive Tax Reform Program, and rightof-way issues on infrastructure projects. But with solid market performance in 2018 and growth in the property sector’s various segments and emerging hot spots, in addition to positive trends such as green building and sustainability, property investors and developers alike can look forward to a favorable year ahead.

Entrepreneur BusinessMirror

E4 Wednesday, January 23, 2019

AFFI sets its sights on millennial, generation Z franchisees in 2019

By Rizal Raoul S. Reyes

@brownindio

Contributor

HE Association of Filipino Franchisers Inc.(AFFI) aims to attract more aspiring Filipino entrepreneurs into its fold, especially the millennials and generation Z, to venture into business as franchisees of existing tried-and-tested businesses or by coming up with innovative business concepts.

“We formed a partnership with the Junior Philippine Institute of Accountants [JPIA] to entice younger people to join the franchising business,” AFFI Chairman Eric Caeg said during a recent media interview at the launch of the 17th Franchise and Business Expo with the theme, “Galing ng Pinoy: Local is the new Focal,” to be held at the World Trade Center from February 1 to 3, 2019. Caeg also said the group continues to mentor micro businesses and encourage overseas Filipino workers and even those who are employed locally to give franchising a try as it does not require a huge capital, easy to operate and is less risky. Meanwhile, Joyce Uy, AFFI presi-

dent, said the group hopes to encourage more Filipinos to become entrepreneurs by introducing innovative business concepts as this is one way a franchised business can survive, grow and excel amid competition. AFFI President Jorge Noel Wieneke II , on the other hand, said that many people only think of the “beauty side” of the business when the reality is it is hard to go into business. “You have to master yourself and persevere,” he stressed. If someone wants to go into franchising, Wieneke advised that the individual must be a good follower because the franchising system has a set of rules to follow. “If you are a good follower, franchising is for you,” he said.

If you are a good follower, franchising is for you.”—Wieneke

TOP officials of the Association of Filipino Franchisers Association pose for a souvenir snapshot during a recent event. (From left) Jorge Noel Wieneke II, vice president for membership; Marie Joyce Co-Yu, president; Willen Ma, treasurer and Enrique Pablo Caeg, chairman.

However, Wieneke said, franchising gives independence and flexibility because unlike the typical 8 a.m. to 5 p.m. job, a franchise owner has the freedom to decide on his plan of action in running the business and the flexibility to work around his own schedule. According to government data, 70 percent of the total work force belongs to the micro, small and medium enterprises sector. He said the government provides financial and technical assistance to this sector. There are also some banks that devote windows specifically for MSME. He said a franchisee is given

strong support when starting a business. Moreover, the franchisor will provide trainings to the franchisee in running the business. The franchisor’s proven system will serve as a guide in managing the franchise. Wieneke cautioned the public who want to go into franchising not to fall into people offering buy one, take one franchises worth P25,000 as this type of franchise does not have a backup and long-term plan. “People behind that business are not genuine franchisees but just want to sell franchises,” he said. “At this point, nobody is saying

it is illegal but the challenge is their sustainability,” he added. When a person plans to go into franchising, Wieneke said, he or she must first consider if the brand is strong and earning. AFFI said they have 221 members composed of more than 16,000 outlets, 36 percent of which are company owned and 64 percent under franchise. These businesses have remained in business for an average of 10 years, providing employment to more than 96, 000 Filipinos. More than 300 exhibitors, from food retailers to service providers, are expected to grace the event.

MRC Allied takes the green shift in power generation, waste disposal

N these changing times, business leaders and entrepreneurs are rethinking their policies to remain relevant—and commercially viable, of course—in the constantly changing economic landscape. For MRC Allied President and Chief Executive Officer Augusto Cosio Jr. there are three elements to strongly focus on aside from the annual revenues. These include the environment, stakeholders in the community and the employees. “On our part, MRC Allied, we are concentrating on renewable energy, development of smart cities, solar energy and environmental stewardship,”Cosio, who has a wide exposure in the global capital markets after working in Hong Kong and Singapore for global investment banks such as Deutsche Bank and BNP-Paribas, told the BusinessMirror in a recent interview. In these times of climate change and global warming, MRC Allied plays a vital role in helping the Philippines contribute and achieve a sustainable and green future by engaging in solar energy development projects. MRC Allied will pursue solar development projects through its subsidiary Menlo Renewable Energy Corp. (MREN) and other affiliates. The 60-megawatt (MW) Naga Solar project in Naga City, Cebu, is on its pre development phase and can possibly be an electricity supplier to the Visayas grid and/or offer its production to the business sector within and around Southern Cebu. Recently, MRC Allied Inc., in collaboration with Sunray Power Inc. and Menlo Renewable got a service contract for a 100-MW Solar Project inside the New Clark City in Tarlac, a new development project of the Bases Conversion and Development Authority. The P11.75-billion project will potentially serve the energy requirements of the locators and facilities of NCC. Moreover, MRC has acquired a 15-percent stake in the 50-MW Sulu Electric Power and Light Philippines Inc. solar project in Palo, Leyte, for $5 million, or P255 million. Although, MRC has an option to increase its stake, it will figure out along the way on whether it is wise to raise its stake in Sepalco solar project.

Cosio, who served as president for the First Metro Asset Management Inc. for nine years, is currently thinking if it will exercise its option to increase its 15 percent stake to a majority shareholding to potentially gain control over the company. In terms of recycling waste into fuel, MRC is serious in raising the bar to go green. Cosio said the company recently had a meeting with a Japanese company for a potential exploration of a new technology on waste to energy. The technology converts biodegradable garbage and sewage waste into a combination of liquid, solid and methane gas. “We will be aiming for the low hanging fruit,” he pointed out. “The beauty of the project is that it is subsidized by the Japanese government and is scalable,” he added. Cosio said the device is housed in a 20foot container and backed up by another container of the same size that will store the waste. Each container can process up to 4 tons of garbage. He also asked the opinion of the company’s engineers to verify if the project is feasible. After evaluation, they said it can possibly be a good project. However, Cosio said, we will still check whether this is a potential investment in the future. It does not stop at recycling garbage into fuel. MRC Allied is also interested to bringing into the country a technology that can compact plastic waste. Cosio said this is a very timely move as the Philippines has been recently ranked third biggest behind China and Indonesia as source of plastic waste found in the ocean, according to a 2015 report on plastic pollution by the Ocean Conservancy charity and the McKinsey Centre for Business and Environment. Moreover, the report said the Philippines produce 2.7 million tons of plastic waste annually and 20 percent of that goes into the oceans. “Again, it falls into the purview of social responsibility, investing in saving the environment,” he explained. “There’s money to be made in that kind of investing,” Cosio added.

MRC Allied also wants to help the farmers in Nueva Ecija increase their income by introducing a solar-PV installation for rice mill buildings. The long-term implication of the project is that the cost of rice milling will drop to a very low level that will result in lower cost of production and an increase in income for farmers. Cosio said MRC Allied plans to form a partnership with an agricultural company which can provide the requirements for them. As far as their properties are concerned, Cosio said, they don’t have the ideal location as compared to the country’s property titans. To offset the disadvantage, Cosio said, they had to think of an alternative to make them profitable. That led MRC Allied to weigh whether it is worthwhile to venture into solar energy and possible waste-to-energy development in the future. The move into the green initiatives is a perfect timing for MRC Allied as the country is seeking to have more private sector-led initiatives anchored on sustainability. “As entrepreneurs, we have to use existing resources to transform it into productive business,” Cosio pointed out. Cosio is a known advocate for investing and the development of the Philippine capital markets. He is a passionate crusader for investment literacy among Filipinos, a regular resource speaker for the Philippine Stock Exchange Certified Securities Specialist Program and for capital market topics at the University of Asia and the Pacific. In the First Metro Group, Cosio had spearheaded The Capital Market Seminar Series conducted regularly by First Metro Securities Brokers and First Metro Asset Management Inc. (Fami) in their offices in Makati, Binondo, Cebu and Davao. Until June 2018, he had been the president for nine years of Fami—the First Metro Asset Management Inc.—a multi-awarded fund management company with around P11 billion of assets under management. In his previous employment, Cosio, together with the First Metro Investment Corp., steered the creation and the listing of the first Exchange Traded Fund or ETF in the Philippine Stock Exchange. Rizal Raoul S. Reyes

VILLAR

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Villar to NE graduates: Be your own boss

ABANATUAN CITY, Nueva Ecija—Sen. Cynthia A. Villar on Friday called on graduates to pursue an entrepreneurial career that would get them an opportunity to employ people, instead of seeking employment. In her speech as guest during the graduation ceremony at the staterun Nueva Ecija University of Science and Technology (NEUST) here, Villar noted the “harsh reality that many graduates face now—the lack of job opportunities.” “Hindi naman kaila sa ating lahat na malaking problema pa rin ngayon ang unemployment at underemployment [We are all aware that there is still a big problem on unemployment and underemployment],” she said. However, graduates should never be discouraged; instead they should be ready to face the challenges that await them, she said. “Unemployment rate is still high. Pero hindi lang naman paghahanap ng trabaho ang option na available sa inyo. [Looking for a job is not the only option available to all of you] There is always the option to go to entrepreneurship—to be an entrepreneur, to employ people instead of getting employed,” the senator said. She narrated how she and former Sen. Manny Villar, her husband, started their business with minimal capitalization before getting a low-interest loan. Villar, who has been advancing the cause of farmers, has authored the Open Learning and Distance Education Act of 2014 and the Ladderized Education Act of 2014, both to give the youth wider access to education. She also passed the Universal Access to Tertiary Education or Republic Act 10931. Acknowledging the sacrifices of parents just to send their children to school, she said, “I share the mixed emotions of mothers and fathers here today. Parents work hard to provide their children with good education, because we believe it is valuable inheritance—something that cannot be taken away by anyone, something that cannot be diminished but rather even enhanced.” Villar commended the NEUST, headed by its President Fely Jacoba, for excellent performance. PNA

World’s most valuable start-up takes a hit from China’s ad revenue drop

YTEDANCE Ltd., the world’s most valuable start-up, barely met its 2018 revenue target after a sharper-than-projected slowdown in Chinese advertising growth, people familiar with the matter said. The company told investors to expect revenue of 50 billion yuan ($7.4 billion) to 55 billion yuan during its most recent fund-raising, the people said, asking not to be named because the matter is private. It reached the lower end of the target, the first time in years it hasn’t beaten its forecast, because it delayed monetizing new functions and China’s slowing economy dampened spending on ads, the people said. Six-year-old Bytedance secured a $75-billion valuation in the most recent fund-raising, vaulting it ahead of Uber Technologies Inc. in the global rankings, after attracting backing from SoftBank Group Corp., KKR & Co. and General Atlantic. The social-media giant is nurturing a raft of apps including news aggregating service Toutiao and short video platform Tik Tok, helping it create an Internet experience that’s a cross between Google

news and Facebook. Bytedance declined to comment on its revenue in an e-mailed statement. Founded by 35-year-old Zhang Yiming, it started life as a producer of apps for sharing jokes before creating its signature service in Toutiao, which means “headlines.” It then spent years building up its user base and improving its recommendation systems. The company has since evolved into a multifaceted empire spanning Tik Tok—known as Douyin locally—and other platforms for everything from humor to celebrity gossip. Tik Tok and Douyin had a combined 500 million users as of July. But Bytedance isn’t immune

YIMING

to a slowdown in the world’s second-largest economy, as most of its revenue is generated from ads. The company’s heavy reliance on advertising means it is confronted with the same question that plagued Facebook early in its life, whether it will generate consistent profits. The company, however, is splurging on marketing to get build its brand, plastering its name across subways in Japan and a skyscraper in Dubai. In November, it sought a syndicated loan with a base size of $500 million and a greenshoe option that allows it to boost the amount to up to $1 billion to fund expansion, people familiar said at the time. Bloomberg News