Businessmirror January 25, 2019 by BusinessMirror

B.S.P. SEEN TO JUNK TIGHTENING STANCE AS GROWTH SLOWS IN ‘18 By Bianca Cuaresma @BcuaresmaBM

ALL-NEW ERTIGA Suzuki Philippines (SPH) rolled out its best-selling seven-seater MPV—the all-new Ertiga, at the Marriott Grand Ballroom in Pasay City on Wednesday. Gracing the launch were (from left) SPH President Hiroshi Suzuki, SPH General Manager for Automobile Keiichi Suzuki, Suzuki Ertiga chief engineer Satoshi Kasahara, and SPH Managing Director and Treasurer Norminio Mojica. Story on page A8. PHOTO BY RANDY PEREGRINO, BUSINESSMIRROR MOTORING

DEPT. OF SCIENCE AND TECHNOLOGY

PHILIPPINE STATISTICS AUTHORITY

2018 BANTOG DATA MEDIA AWARDS CHAMPION

HE Bangko Sentral ng Pilipinas (BSP) is likely to abandon its tightening cycle and move to a more accommodative monetary-policy stance for this year, after the Philippine economy registered a slower growth rate for 2018. Following the Philippine Statistics Authority’s (PSA) announcement of a growth slowdown for the Philippines last year, economists weighed in on the Central Bank’s next move in relation to the expansion print and agreed that the BSP is likely done raising its rates for the time being. In 2018, the Monetary Board moved for higher rates in the country as the growth of consumer prices started to accelerate. The rate hikes piled up to a total 175 basis points

and slashing reserve requirements to support growth. This projection is a stark contrast to what the BSP did in 2018, when it aggressively hiked its rates in back-toback meetings to pull down the then stubbornly rising inflation. “With the inflation specter nipped for the time being, the BSP will likely unload a string of easing measures to help buttress growth closer to the administration’s growth target of 7 to 8 percent,” Mapa said. “With liquidity conditions still relatively tight and the Governor’s pledge to slash reserve requirements [RRR] to single digits by the end of his term, we can see the BSP slashing RRR further in the first quarter followed by a possible policy rate cut in the second quarter to help bolster growth for the second half of the year,” the economist added. See “BSP,” A8

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Friday, January 25, 2019 Vol. 14 No. 107

Economic team lists risks as growth slows to 6.2% 6.7% T By Cai U. Ordinario

@caiordinario

HE reenacted budget and the 45day ban on government spending in preparation for the elections will delay the Duterte administration’s “Build, Build, Build” (BBB) program, according to the President’s economic team, highlighting more challenges as the country posted its slowest growth since 2015.

In a joint statement, the National Economic and Development Authority (Neda), Department of Finance (DOF), and the Department of

Budget and Management (DBM), said the slower-than-expected economic growth in 2018 and the delay in the BBB highlight the government’s

priorities in addressing uncertainties. On Thursday, the Philippine Statistics Authority (PSA) said GDP in the fourth quarter slowed to 6.1

The GDP full-year growth in 2017. The 2018 figure of 6.2 percent was the slowest since 2015 and below DBCC’s revised growth target of 6.5 to 6.9 percent. percent in 2018, from 6.5 percent in 2017. For the full year, GDP growth also decelerated to 6.2 percent in 2018, from 6.7 percent in 2017. It was the slowest full-year growth since 2015.

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Motoring e2

Hyundai Kona 2.0 GLS 6aT

Bold and captivating

Why I resigned as UCPB director Dr. Jesus Lim Arranza

Make Sense

EING a member of the board of directors of United Coconut Planters Bank (UCPB) has its perks. Moreover, it enabled me to continue working for the country’s coconut industry in general, and UCPB, in particular, not only because of my affiliation with former Ambassador Eduardo Cojuangco and as former president of CIIF, but also because, among the five people who were asked to come up with the solution to address the coconut crisis in the local market during the 1970s, I am now the only one living. This, of course, is another topic that I would one day discuss in my column.

ESPI TE t he fa i lure of Hanjin Heavy Industries and Constr uction Co.Philippines (HHIC-Phil) Inc., the National Economic and Development Authority (Neda) believes the country can still attract more investors to its shores this year. In a briefing on Thursday, Socioeconomic Planning Secretary Ernesto M. Pernia said increasing investments would be crucial if the government intends to meet its 7 to 8 percent full-year growth target this year. The President’s economic team said they are pushing for legislation, such as the amendment of the Foreign Investment Act, the Retail Trade Act and the Public Service Act, to boost investments in 2019. “No, it will not deter investors from coming to the Philippines. I think Hanjin is an isolated case. There are no other major investments that went sour like that. I guess financially healthy companies should have no problem coming here,” Pernia told the BusinessMirror in a phone interview on Thursday.

2017 EJAP JOURNALISM AWARDS

See “Growth,” A2

Hanjin ‘isolated’ case, PHL can still attract FDI–Neda

See “FDI,” A8

for the entire year alone. Earlier this month, the highlights of the most recent Monetary Board meeting of the BSP showed the country’s economic growth played a major role in the latest decision on December 13 to keep rates unchanged. “The Philippine business cycle— measured as the trend cycle of growth rate for industry and services—eased for the third consecutive quarter in the third quarter of 2018, but remained above the long-term growth trend,”the meeting highlights read, as discussed by the MB members last month. The PSA on Thursday announced that the country grew at 6.2 percent in 2018, its slowest pace since 2015. Fourth-quarter growth settled at 6.1 percent. ING Bank Manila economist Nicholas Mapa said the Central Bank’s theme for this year will be that of cutting rates

Continued on A7

Packagers struggle with ban on plastic By Elijah Felice E. Rosales

SOCIOECONOMIC Planning Secretary Ernesto M. Pernia (right) and Undersecretary Lisa Grace S. Bersales of the Philippine Statistics Authority brief journalists on the Philippine growth performance for the fourth quarter and full year of 2018 Report at the PSA office in Quezon City on Thursday. NONOY LACZA

No more Road Board, but will vehicle registration fees rise?

HE Duterte administration was asked to abort plans to increase vehicle registration fees following the abolition of the graft-tainted Road Board. Senate President Pro Tempore Ralph G. Recto on Thursday said, “Don’t make hike in car registration fees the sequel of Road Board abolition.” Recto issued the statement after learning about proposals conveyed

PESO EXCHANGE RATES n US 52.7720

by Executive officials to members of the Senate and the House of Representatives to increase the rate of what is officially called the Motor Vehicle User’s Charge (MVUC). Recto reported that one proposal indexes MVUC to inflation, which, he said, means that “it will be raised based on the inflation rates through the years.” The senator found this to be a “quite heavy imposition” on motor

vehicle owners. “Medyo mabigat kasi kung adjusted to inflation, using 2004 as base year, ’yung bayad sa rehistro ng bantam car at SUV ay parehong tataas by 72 percent.” He added: “Mayroon naman isang pahiwatig na 50 percent ang increase. Mayroong 100 percent ang increase.” Recto noted that “these, however, have not moved through the See “Road board,” A4

@alyasjah

ACKAGERS are struggling to cope with the shifting consumer preference for paper over plastic, but are confident their sales will continue to increase for as long as the economy is driven by consumption. Joseph Ross S. Jocson, outgoing president of the Packaging Institute of the Philippines, said the growing campaign to ban singleuse plastic is posing a challenge to the industry. This, he argued, resulted in several local governments prohibiting the use of plastic bags in supermarkets. “The challenge is actually with the plastic bag, [as] there are local government units who are ban-

ning single use,” Jocson said on the sidelines of the ProPak Philippines 2019 Expo. The packaging industry apparently took another hit when the government decided to rehabilitate Boracay last year and Manila Bay this month. Packaging—yet again—was faulted for the country’s environmental woes, Jocson lamented. “Now that there is more [environmental] awareness because of what happened to Boracay and [with] what is happening in Manila Bay, they always look at packaging as a culprit,” he added. The government, acting on President Duterte’s directive, will begin cleaning up Manila Bay on Sunday. See “Plastic,” A8

n JAPAN 0.4815 n UK 68.9941 n HK 6.7267 n CHINA 7.7709 n SINGAPORE 38.8429 n AUSTRALIA 37.6898 n EU 60.0862 n SAUDI ARABIA 14.0714

Source: BSP (24 January 2019 )

A2 Friday, January 25, 2019

News

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RJ open to more towers but Rio, Poe hit capping By Lorenz S. Marasigan

@lorenzmarasigan

AMON P. JACINTO, the presidential adviser for ICT, seems to have mellowed in his insistence on limiting to two the number of common tower providers for telecommunication firms in the Philippines, saying that he now agrees to even double the players, as long as there is a cap. However, even as his position on the matter changed abruptly—right after a Senate hearing on Thursday—Information Secretary Eliseo M. Rio Jr. believes that putting a cap on the number of players does not make sense. “I agree to increasing it as long as there is a cap for the first four years. It could be more than two, but not everyone can build. I might be agreeable to four, just like in Bangladesh,” Jacinto said in a chance interview. He noted that telcos should still be barred from building their own infrastructure—unless the tower companies declined to build infrastructure in a certain area—as the “problem on the lack of tower infrastructure stems from them.” Rio, however, failed to see Jacinto’s point, questioning how a cap could help the market improve. “Why put a cap on the number of players, when the global practice is an open market? No regulatory body has ever put

“What is ironic is, while were rushing the deployment of more towers, we are trying to limit the number of players to two. It’s quite suspect.”—Poe

a cap on tower companies,” he said. Rio added that opening the market to more players will help the whole industry as a whole, as this could lead to lower prices, translating to savings for both the telcos and even consumers, down the line.

‘Suspect’ policy gap

SEN. Grace Poe, who chairs the Public Services committee, supported Rio’s idea of opening up the market, saying that Jacinto’s two-tower company policy does not make sense on an industry perspective. “What is ironic is, while were rushing

Juvenile Justice. . . Continued from A8

And though we may be called the Lower House, we are certainly not moral pygmies, but rather principled giants in the fight for the rights of the powerless and the voiceless,” he added.

Anti-child abuse

MEANWHILE, Lagman said even at the reduced age of 12 as the threshold, the House Bill remains to be anti-child. “Neuroscientific research documents that the brains of children do not fully develop until their early 20s. Consequently, children between the ages of 12 and 15 do not have complete faculties for discernment to make them criminally culpable,” he said. “If children in this age bracket cannot vote, run for Sangguniang Kabataan positions, get married or secure a driver’s license, then why expose them to be confined, detained, jailed and charged with a crime?” he asked. For his part, Bayan Muna Rep. Carlos Isagani T. Zarate said that “lowering the minimum age of criminal responsibility from 15 years old to 12 years old will still not only gravely hurt but even harshly punish the children in the name of crime suppression and reduction.” “You don’t help victimized and marginalized children by branding them as criminals and limiting their options while growing up. This vile and callous retreat is in fact a clear indictment of the government’s failure until now to protect and advance the rights of our children, particularly those coming from the poor majority of our society. No less, this is still anti-poor and anti-child,” Zarate said. Oriental Mindoro Rep. Doy C. Leachon, the chairman of the House Committee on Justice, clarified the measure would not detain children. He also said children will not be mixed with criminals as children in conflict with law are going to be placed in Bahay Pag-Asa for reformation, and supervision over them will be transferred to the DSWD from the local government. He explained that the measure is “not anti-poor” and “not ruthless legislation,” but a “pro-children legislative measure,” as the bill provides for the confidentiality of records.

‘Factory of criminals’

EARLIER, Senior Deputy Minority Leader and Buhay Party-list Rep. Lito Atienza denounced the proposed lowering to 9 years old, calling it, “a product of obviously disoriented minds.” Atienza cited “conflicting statements,” with Leachon “saying he is proposing this law because children in conflict with the law are actually increasing in number.” This, while the police say the incidence of children becoming involved in crime is declining, he said. According to Atienza, “The issue here is that 9 years old do not have their own minds yet...Do you want your child who just happens to be involved in a wrongdoing, in a delinquency case, to be considered a criminal? Would you allow that in your own conscience and your own duties as parents? I appeal to my colleagues who are also parents and grandparents—let us not jeopardize our children’s future.” Atienza pointed out that right now, the government cannot even implement RA 9344, the original law which provides for the 15 years’ minimum age of criminal responsibility. “We have not started construction of the so-called reformatory “bahay pagasa’s” and houses to detain 15-year-old violators of the law.” The Philippines, he warned, “might end up being a factory of criminals.”

Growth. . .

Continued from A1

This is also below the Development Budget Coordination Committee’s revised growth target of 6.5-6.9 percent for 2018. “The reenactment of the 2018 budget as the basis for our spending this 2019 will likely have an impact on government spending in the near term. This implies that the government would not be able to quickly execute programs and projects under the proposed 2019 budget,” the economic team said. “The 45-day ban on state spending prior to the May 2019 elections could also further delay implementation of infrastructure projects,” they added. In order to address these concerns, the President’s economic team said it aims to address competitiveness issues such as improving transport, communications and logistics. The government, it said, will also be working toward the integration small and medium enterprises and large establishments.

Downside risks THE Neda, DOF and DBM will also be on the lookout for downside risks such as those coming from the US-China trade tensions, slowing global demand, higher tariffs, and protectionist policies that stifle investments and disrupt global value chains. The economic team said other risks include tighter financing conditions in emerging markets due to the strengthening of the US dollar and rising risk premiums, as well as heightened geopolitical tensions. The President’s economic team also does not discount inflation in 2019. They said this is why the government continues to pin its hopes on the passage and implementation of the rice tariffication law. The Neda earlier estimated that passing the law would lead to a reduction in rice prices nationwide of P2 to P7 per kilo. Further, the establishment of the Rice Competitiveness Enhancement Fund (RCEF) will be good for the farm sector. The RCEF will finance key interventions such as farm machinery and equipment to improve farm mechanization, rice-seed development, propagation and promotion, expanded rice credit, crop diversification and extension services. The economic team said that to pro-

the deployment of more towers, we are trying to limit the number of players to two. It’s quite suspect,” she said. Globe Legal Counsel Froilan M. Castelo noted that his group is supportive of Rio’s vision of having many tower companies in the country. “We want a multiplayer environment,” he said. Rio noted that the proposed policy of Jacinto will never come to light — at least not during his watch as the chief of the ICT department. Instead, he is currently implementing a faster way of deployment by signing memorandums of understanding with various tower companies that are known globally. So far, the government has signed five deals with tower companies, namely, IHS Towers, Edotco, Isoc Infrastructure, iSON Towers and China Energy Equipment. IHS is the the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East by tower count, while Edotco is a Malaysian tower company that also has operations in Bangladesh, Cambodia, Sri Lanka, Myanmar and Pakistan. Isoc, on the other hand, is a Filipino company that previously submitted an unsolicited proposal to the ICT department for the development of telco infrastructure across the country, and Singaporean company iSON Towers is a tower player in the Middle East, the Association of Southeast Asian Nations and Africa. China Energy has so far committed to invest up to $4.4 billion to build around 50,000 towers in the Philippines. tect lower-income households from TRAIN law’s adverse effects on consumption, the Unconditional Cash Transfers and fuel vouchers should likewise be implemented in a timely manner. “The Philippine economy has been strong and steady. For 2019, we call for a cohesive reform agenda for the country. As we near the release of the Socioeconomic Report 2018 and midterm updating of the Philippine Development Plan 2017-2022, we hope that the whole government will be on the same page in addressing the challenges of the different sectors.”

Growth drivers POTENTIAL growth drivers this year, meanwhile, would be the upcoming 2019-midterm elections and the preparations leading to the Southeast Asian Games in November. Further, the creation of the Bangsamoro Autonomous Region would likewise open up growth prospects both for the region and for the wider economy. In 2018, the Philippine economy’s growth was buoyed by the Services sector, which accounted for 48.3 percent of economic growth, followed by Industry with 28.6 percent and Agriculture with 6.8 percent. The Agriculture, Hunting, Fishery and Forestry grew 0.8 percent in 2018, while Industry expanded 6.8 percent and Services, 6.6 percent. The Industry sector, the fastest-growing production sector of the economy in 2018, was driven mainly by Construction, which grew 15.9 percent last year. Construction posted its highest growth in the fourth quarter of 2018 at 21.3 percent. On a full-year basis, public construction dominated the construction sector with a growth of 21.2 percent, while private construction only rose 12.9 percent in 2018. In the fourth quarter of last year, private construction expanded faster than public construction with a growth rate of 20.2 percent, while public construction posted its slowest growth for 2018 at 16.3 percent. On the demand side, household final consumption expenditure (HFCE) accounted for 57.3 percent of GDP in 2018, while government final consumption expenditure (GFCE) cornered 9.4 percent of GDP. HFCE grew 10.8 percent in the full year and 11.4 percent in the fourth quarter in 2018. GFCE also grew 16.8 percent and 16.6 percent in the full year and fourth quarter of 2018, respectively.

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3 soldiers hurt in raging battle vs IS group in Lanao del Sur By Rene Acosta

@reneacostaBM

OVERNMENT troops on pursuit operations on Thursday clashed with suspected Islamic State (IS) terrorists led by Abu Dar at a remote barangay in Lanao del Sur, leaving three soldiers wounded, military officials reported. The military believed that its forces also killed a number of terrorists during the firefight, which was still raging as of Thursday at Barangay Sumalindao in Sultan Dumalondong. Abu Dar, the military claimed, has taken over the reign of the IS in the country, replacing Isnilon Hapilon, head of the IS in Southeast Asia, following the latter’s death during the siege of Marawi City in 2017. Maj. Gen. Roseller Murillo, commander of both the Army’s 1st Infantry Division and the Joint Task Force Zampelan (Zamboanga and Lanao provinces), said elements of the 55th Infantry Battalion, which is under the 103rd Brigade, clashed with the IS members at around 8:10 a.m. on Thursday. “The armed encounter is the result of our relentless campaign against Maute-IS remnants and Abu Dar group,” said Murillo. The firefight between government forces and the IS was the first since a combination of local and international terrorists was booted out of Marawi City following its members’ defeat in 2017 wherein most of the top leaders, including Hapilon were killed. It was also the first time that the elusive Abu Dar was located and pinned down by security forces since he succeeded Hapilon as the local head of IS. Col. Romeo Brawner, commander of the 103rd Brigade, said the troops moved against the group of Abu Dar at around 6 p.m. on Wednesday and engaged them in a firefight on Thursday morning at Barangay Sumalindao. “[The] casualties were immediately extricated from the encounter site for medical treatment,” he said. Brawner said that they have been hot on the trail of Abu Dar and his men during the past weeks with the hope of getting the lone known remaining leader of the IS in the country.

Editor: Vittorio V. Vitug • Friday, January 25, 2019 A3

Palace eyes veto power option if Senate blocks funding for surveillance project

By Bernadette D. Nicolas

@BNicolasBM

ALACAÑANG warned on Thursday President Duterte may veto certain provisions in the 2019 national budget, which supposedly blocked the utilization of any amount intended for a public video surveillance and communication project with suppliers or service providers. Presidential Spokesman and Chief Presidential Legal Counsel Salvador S. Panelo issued the statement in a briefing after senators moved to block an initial P7.42-billion allocation in the 2019 budget bill for the China-supplied P20-billion video surveillance proposed to be installed by the Duterte administration in Metro Manila and Davao. Senate President Pro Tempore Ralph G. Recto said on Wednesday that senators have agreed to include two provisions in the 2019 national budget, which he noted “have the effect of law, guide the release of funds for overseas development aid and other foreign-funded activities,” including the so-called Safe Philippines video surveillance project. “Well, maybe, we understand the apprehensions of some senators, but necessarily

this government will not allow any security leaks. We will not agree to that,” Panelo said. But he said it is within the power of the President to veto parts of the bill. “Well, if the President will exercise his veto power, then that can be vetoed…,” he added. However, he said that he is still unsure if the President will indeed veto it, stressing such is just an option. According to Recto, the first provision under the Unprogrammed Fund section of the 2019 national budget, specifically states: “No amount appropriated herein shall be utilized for any project intended for public video surveillance and communication system with suppliers or service providers that are considered as serious risks to national security or interest or are

involved in cases regarding information leakage, computer or network hacking, and other forms of cyber espionage, whether in the Philippines, or in other countries.” He added that the second provision enumerates the foreign-assisted projects, which may draw from authorized appropriations for fiscal year 2019. “The Safe Philippines Project is not among the 13 projects listed,” the senator pointed out. Recto also voiced concerns that the “vetting and approval of the project has all the hallmarks of a behest transaction, lacking in studies, consultations, validation.”

and Development Authority, and they cannot provide any. He also admitted that he found it “mysterious” that a P7-billion plus amount was already earmarked as early as July, even as the supply contract was approved only in November. Records also showed that it was only on September 2018 that the Department of the Interior and Local Government, the partner agency, was able to transmit the approved budget cost for the Safe Philippines Project to the Department of Finance. Recto also noted that the Notice of Award was issued on November 16, 2018, to the chosen bidder,

Well, maybe, we understand the apprehensions of some senators, but necessarily this government will not allow any security leaks. We will not agree to that.... Well, if the President will exercise his veto power, then that can be vetoed….”—Panelo He also expressed disappointment, saying they have asked for documents from the lead appraisal authority, the National Economic

China International Telecommunication Construction Corp., adding that “the supply contract was signed three days later.”

A4 Friday, January 25, 2019 • Editor: Vittorio V. Vitug

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DOE assures sufficient energy supply amid PHL infra buildup

By Lenie Lectura

@llectura

HE Department of Energy (DOE) on Thursday cited ongoing activities to ensure the sufficiency of energy supply following concerns raised by former Sen. Juan Ponce Enrile of a possible looming energy crisis. “The Department of Energy appreciates the advocacy of former Senate President Juan Ponce Enrile,” said the agency when sought comment. The DOE said it continues to look for ways to build capacity for future requirements under the “Build, Build, Build” (BBB) program of the Duterte administration. Among the efforts of the DOE are: The crafting of policies for the further development and utilization of renewableenergy (RE) sources; Evaluating the possibility of harnessing nuclear energy; The ongoing amendment of the minimum inventory requirement for oil companies; The ongoing push for the establishment of a liquefied natural gas facility; and The energy efficiency and conservation policy. These efforts, the agency said, are meant to make the Philippines energy secure and equitable in the midst of ever-growing demand. “We need to generate inclusive and sustainable economic development and make the country globally competitive,” the DOE said. The DOE, through its Nuclear Energy Program Implementing Organization, has also been actively working on assessing the feasibility of including nuclear power into the country’s energy mix. It is openly considering the feasibility of introducing nuclear power in the race to provide uninterrupted, secure, reliable, sustainable and affordable electricity throughout the archipelago. “We are technology neutral because we want to explore all possible ways to bring affordable, secure and reliable power to Filipinos throughout the entire archipelago. I believe this is the time for us to take a leap and include nuclear power into our energy mix. We wouldn’t want to wait

until we are all crying for power before we actually do something,” said Energy Secretary Alfonso G. Cusi. Under the Philippine Energy Plan 20172040, a technology neutral policy is being pursued as the country seeks to attain energy security in the midst of growing energy demand. Also, the full implementation of RE policies was undertaken last year. These include the issuance of circulars on Green Energy Option Program and Renewable Portfolio Standards. For the natural gas industry, the agency has been actively attracting potential investments with the implementation of the Philippine Downstream Natural Gas Regulation. “In addition, the DOE remains committed to promoting energy efficiency measures to improve the country’s energy security,” it added.

that will affect the supply of crude, what do you think will happen here? In one week’s time, we will not have enough supply of power,” Enrile said. If he could be able to secure a comeback to the Senate, the former Senate President said that he would focus on the creation of sources of energy to ensure the Philippines would not be totally dependent on imported fuels for the bulk of its power requirements. “We must make sure that there would be enough supply for all our economic activities amid a surge in the costs of oil or even the lack of it,” said Enrile. Presently, the Malampaya Natural Gas Facility, which provides 30 percent of Luzon’s total supply of power, is estimated to run out of gas reserves by 2024. The DOE is pinning its hopes on the new contracting exploration program in its pursuit for energy independence and sustainability. It launched in November last year the Philippine Conventional Energy Contracting Program (PCECP). According to the DOE, the PCECP is a new mechanism as it offers a two-pronged approach unlike the earlier Philippine Energy Contracting Rounds wherein investors can only bid in areas determined by the government for exploration. It is a new and transparent petroleum service contract awarding mechanism that allows the government to develop and utilize indigenous petroleum resources under

We do not have any source of hydrocarbon. If a war happens in Russia or in the Middle East or in Africa or in Latin America that will affect the supply of crude, what do you think will happen here? In one week’s time, we will not have enough supply of power.” —Enrile Enrile urged government leaders to act fast to address what he described as a looming energy crisis, which may be worsened by the energy demands of the massive BBB program under the Duterte administration.  “We do not have any source of hydrocarbon energy in the country except Malampaya. If a war happens in Russia or in the Middle East or in Africa or in Latin America

a service contract with qualified local and international exploration companies. The PCECP also allows investors to nominate their own areas of interest. In this mode, applications could be submitted at any time of the year and would be subjected to a 60-day challenge period. Awarding of service contracts would be done either through the competitive selection process or via nomination.

BOC: ₧677-B goal for 2019 doable T HE Bureau of Customs (BOC) has expressed confidence that it will be able to hit its 2019 revenue collection target of P677 billion on the back of reforms that the agency will implement this year. Customs Commissioner Rey Leonardo B. Guerrero said the Department of Finance (DOF) has raised the bureau’s collection goal by 15.75 percent, or P677 billion, compared to last year’s goal of P584.881-billion ceiling. “For the target this 2019, our target for collection is P677 billion. This is the working target that was given to us by the DOF,” Guerrero said during the “Kapihan sa Aduana” news conference on Thursday at the BOC Headquarters in Manila. He expressed confidence that the bureau will be able to hit its target for this year, as reforms are further being implemented in the BOC, which is reinforced by his 10-point priority program. “We are confident of being able to hit this

target. In fact, we sat down with the teams in the BOC last year to form a strategy on how we will be able to meet the targets. Part of the strategy is rationalizing the distribution of targets to district collection [offices], to make sure that their targets are attainable as far as the their capability to collect is concerned,” he added. The Customs chief pointed out that the 10-point priority program is anchored on improving organizational efficiency, upgrading individual proficiencies and strengthening institutional capabilities. “We will also implement responsive and accurate monitoring and supervision system to measure the day-to-day collection performance,” he said. Customs Spokesman Atty. Erastus Sandino B. Austria also reported during the conference that the BOC has recorded revenue collections amounting to P592.869 billion as of December 28, 2018, surpassing its P584.881-billion

Road Board. . . continued from a1 legislative mill for lack of a determined push by the executive and a presidential certification that it is an urgent measure.” The Senate leader said he found the need to speak up to clarify the matter: “It’s best we raise this now, lest the talking points suddenly morph into, ‘the Road Board has been abolished, and therefore the registration fees for land transportation may now be increased,” he said in a mix of English and Filipino. Recto reminded policy-makers that “the abolition of the Road Board should not tempt the administration to push through with its plan to raise motor vehicle registration fees,

saying “the end” of the road board should not have the raising of car-registration fees as “its sequel.” As early as two years back, Recto recalled he warned of a “three-strike package” being planned by the then new government to be imposed on motor vehicle owners, including the additional excise tax on fuel, higher taxes on motor vehicles and adjusting the MVUC. “The first two have been effected through the TRAIN law,” he said. The Senate President Pro Tempore prodded the Duterte administration to consider the possibility of deferring the third imposition in the higher tax package since the

collection target for the year. “This is the first time that the BOC has exceeded its target in over two decades,” Austria said. Of the total collections, P743.787 million was reportedly collected from nontraditional means, particularly through auctions that were conducted in various ports in the country. In line with its border-security mandate, Guerrero said the BOC will be organizing its own Customs border-police force this year, which will comprise of 1,500 new recruits hired and trained by the bureau. “In terms of enforcement, our plan for this year is to organize our Customs border police force. This will be a 1,500-strong police force that will be securing all the ports in the country. Right now, we are relying on the Philippine Coast Guard...with our border police force [as] this will improve our border security,” Guerrero added. Rea Cu

gas tax should suffice. “ He estimated that if a vehicle consumes 1 liter per 5 kilometers, a motorist traveling 50 km would be paying a P144 gas tax. The Duterte administration should be content that P46.25 billion in MVUC collections can now be booked, rightfully, as tax, and they must be reflected as such in revenue reports, he added. “In fact, by putting this in the General Fund, there should be less pressure in increasing taxes,” Recto added, noting that for 2019, the government projected to collect, through the Land Transportation Office, P13.93B in MVUC. Butch Fernandez

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Trump to deliver State of the Union Address when govt shutdown is over

RESIDENT Donald J. Trump said he would deliver his State of the Union address when the partial government shutdown is over, clarifying his plans hours after House Speaker Nancy Pelosi blocked him from delivering the speech in the chamber while federal agencies are closed. “As the Shutdown was going on, Nancy Pelosi asked me to give the State of the Union Address. I agreed,” Trump said in the Twitter post. “She then changed her mind because of the Shutdown, suggesting a later date. This is her prerogative—I will do the Address when the Shutdown is over.” Trump added that he was no longer looking for “an alternative venue” for the speech, an option he had discussed with reporters earlier in the day. “There is no venue that can compete with the history, tradition and importance of the House Chamber,” the president said in one of the tweets. “I look forward to giving a ‘great’ State of the Union Address in the near future!” The address, usually delivered with considerable fanfare before both houses of Congress, Supreme Court justices, cabinet officers and other dignitaries, had been scheduled for next Tuesday. In a letter to Trump on Wednesday, the speaker said that when she invited the president to give the address, “there was no thought that the government would still be shut down.” “I look forward to welcoming you to the House on a mutually agreeable date for this address when government has been opened,” said Pelosi, a California Democrat. Her letter was in response to a letter from Trump saying that he intended to come to the House and give the speech despite her suggestion that he hold off until the funding impasse over his demands for money for a wall on the Mexican border had been resolved. The Democratic-controlled House and the Republican-controlled Senate must pass a joint resolution to allow

the president to deliver the State of the Union address. The measure is usually a formality, voted on shortly before the event. The House, however, won’t consider such a resolution, Pelosi said in her letter. The letters between the White House and the Capitol marked a further escalation of the feud between the two leaders. “The State of the Union speech has been canceled by Nancy Pelosi because she doesn’t want to hear the truth,” the president said at the White House earlier on Wednesday. The president last week denied Pelosi a military plane for an unannounced trip to visit US troops in Afghanistan a day after she suggested a delay in the speech. Pelosi then accused the administration of endangering her safety by leaking her plan to take a commercial flight to Afghanistan. A White House official, who refused to be identified, denied the administration leaked the information about the commercial flight. The acrimony has added to the difficulty of reaching an agreement to end the standoff, which began on December 22. Trump made his announcement a day before the Senate was scheduled to vote on two rival resolutions to reopen the government. One is Trump’s plan that includes $5.7 billion for border-wall funding. The other is a Democratic proposal to reopen agencies through February 8 while negotiations proceed on how to better secure the border. Each proposal would require 60 votes to advance in the Senate, which the GOP controls 53-47. Trump has promised to veto any measure that doesn’t fund the wall. Democrats likely have the votes to block his bill, while the Democratic proposal would need support from at least 13 Republicans to move forward. A failure to advance either bill would mean the shutdown, now in its 34th day, will continue. Bloomberg News

North Korea’s Kim praises Trump, expects ‘step-by-step’ nuclear talks

ORTH Korean leader Kim Jong Un lauded US President Donald J. Trump and said he expects nuclear negotiations to advance “step by step,” state media said, a sign the regime anticipates sanctions relief as the two leaders plan a second meeting next month. Kim made the remarks on Wednesday during a meeting with North Korean officials who visited the White House last week and spoke with Trump, according to the state-run Korean Central News Agency. Kim praised the US president’s “unusual determination and will for the settlement of the issue” and ordered “technical preparations” for the next meeting between the two leaders. “Kim Jong Un said that we will believe in the positive way of thinking of President Trump, wait with patience and in good faith and, together with the US, advance step by step toward the goal to be reached by the two countries,” the report said. The statement was the first official confirmation that Kim had agreed to a second summit. Tr ump sent a persona l letter through the delegation, KCNA reported, adding: “Upon receiving the good personal letter sent by President Trump, the Supreme Leader expressed great satisfaction.” The White House confirmed Trump responded to a letter he received from Kim. Trump, who once ratcheted up tensions by firing off insults on Twitter that included calling Kim a “little rocket man,” has had an old-fashioned correspondence with the North Korean leader as ties have warmed. The two have now established what Trump calls “ a very good relationship.” North Korea has long maintained that step-by-step negotiations—indicating a phased approach in which each side gives up a little at a time— were the only way to advance talks. The Trump administration, however, has balked at Kim’s demands for sanctions relief, vowing to maintain pressure until Kim commits to “final, fully verified denuclearization.”

In addition to potential sanctions relief, North Korea could also be seeking some long-stated goals, including the suspension of joint US-South Korean military drills and a peace treaty to replace the armistice that ended the 1950-1953 Korean War, said Vipin Narang, an associate professor of political science at the Massachusetts Institute of Technology. “The question is obviously what Kim’s next ‘step’ would be,” he said in an e-mail. The US and North Korea may agree on completing denuclearization and lifting sanctions by the end of 2020 during their second summit, South Korea’s DongA Ilbo newspaper reported, citing unidentified diplomatic sources. The two countries are close to reaching a comprehensive agreement that includes the timing of North Korea’s denuclearization and the US’s corresponding measures, the report said. Some seven months after Trump first shook hands with Kim in Singapore, North Korea has made no commitments to allow weapons inspections or dismantle its growing arsenal of warheads and intercontinental ballistic missiles. The two sides are expected to meet in Vietnam, Bloomberg News reported on Sunday, citing people familiar with the talks. Trump’s agreement to hold a second meeting with Kim had already been seen as an indication that the US was softening its position, after the North Korean leader threatened to walk away from talks if the American side didn’t ease off. South Korean Foreign Minister Kang Kyung-wha said last week that Seoul and Washington were discussing “corresponding measures” to reward Kim’s steps toward denuclearization. Earlier this week, Secretary of State Michael Pompeo told the World Economic Forum in Davos the private sector is poised to step in and boost North Korea’s staggering economy if it gives up its nuclear ambitions.

Bloomberg News

Friday, January 25, 2019

Showdown in Venezuela as US backs Maduro rival’s power claim

ARACAS, Venezuela— Venezuelans headed into uncharted political waters on Thursday, with the young leader of a newly united and combative opposition claiming to hold the presidency and socialist President Nicolas Maduro digging in for a fight with the Trump administration. Violence flared again on Wednesday during big anti-government demonstrations across Venezuela, and at least seven protesters were reported killed in the escalating confrontation with Maduro, who has been increasingly accused of undemocratic behavior by the United States and many other nations in the region. Juan Guaido, the new leader of the opposition-controlled National Assembly, turned up the heat by declaring himself interim president before a mass of demonstrators in Caracas. He said it is the only way to end the Maduro “dictatorship” in Venezuela, which has seen millions flee in recent years to escape sky-high inflation and food shortages. “We know that this will have consequences,” Guaido shouted to the cheering crowd, then slipped away to an unknown location amid speculation that he would soon be arrested. In a united and seemingly coordinated front, the US, Canada and another dozen mostly Latin American countries, including Brazil, Colombia and Argentina, quickly announced that they supported Guaido’s claim to the presidency. President Donald J. Trump promised to use the “full weight” of US economic and diplomatic power to push for the restoration of Venezuela’s democracy. “The people of Venezuela have courageously spoken out against Maduro and his regime and demanded freedom and the rule of law,” he said in a statement. Maduro fired back by breaking diplomatic relations with the US, the biggest trading partner for the oil-exporting country, and ordering American diplomats to get out of the country within 72 hours. Washington said it would ignore the order. The socialist leader, who so far has been backed by the military, as well as the government-packed courts and a constituent assembly, recalled the long history of heavy-handed US interventions in Latin America during the Cold War as he asked his allies for support. “Don’t trust the gringos,” he thundered to a crowd of red-shirted supporters gathered at the presidential palace. “They don’t have friends or loyalties. They only have interests, guts and the ambition to take Venezuela’s oil, gas and gold.” Russian officials reacted with anger to the opposition protests, with some placing the blame on the US Alexei Pushkov, chairman of the information committee at the Russian Federation Council, called Guaido’s declaration “an attempted coup” backed by the US. R u s s i a h a s b e e n prop pi ng up M adu ro w it h a r m s de l iver ies a nd lo a n s . M a du ro v i s it e d Mo s co w i n D e c e m b e r, s e e k i n g R u s s i a’s p ol it ic a l a nd f i n a nc i a l s up p or t . On Thursday, attention will shift to Washington, where diplomats at the Organization of American States will hold an emergency meeting on the Venezuelan situation. The debate promises to be charged, and the National Assembly’s newly picked diplomatic envoy will be lobbying to take Venezuela’s seat from Maduro’s ambassador. Meanwhile, many Venezuelans will be looking for Guaido to reemerge and provide guidance on the

opposition’s next steps. The armed forces’ top command, which has so far remained silent, is also expected to issue a statement, although nobody expects the general’s loyalties to Maduro to have shifted. The price of oil slipped for the third time in four days on Wednesday, an indication that international energy markets are not overly concerned yet that the situation in Venezuela— America’s third top oil supplier and owner of Houston-based Citgo — will disrupt global crude supplies. Tensions began ramping up earlier this month as Maduro took the oath of office for a second six-year term won in an election last May that many in the region contend was not free or

fair because his strongest opponents were barred from running. The 35-year-old Guaido, a virtually unknown lawmaker at the start of the year, has reignited the hopes of Venezuela’s often beleaguered opposition by taking a rebellious tack amid Venezuela’s crushing economic crisis. He escalated his campaign on Wednesday by declaring that the constitution gives him, as president of the congress, the authority to take over as interim president and form a transitional government until he calls new elections. Raising his right hand in unison with tens of thousands of supporters, he took a symbolic oath to assume executive powers: “Today, January 23, 2019, I swear to formally assume the powers of the national executive as president in charge of Venezuela.” The assault on Maduro’s rule came after large crowds gathered in Caracas waving flags and chanting “Get out, Maduro!” in what was the biggest demonstration since a wave of unrest that left more than 120 dead in 2017. There were no signs that security forces heeded Guaido’s call to join the anti-Maduro movement and go easy on demonstrators. Hours after most demonstrators went home, violence broke out in Altamira, an upscale zone of Caracas and an opposition stronghold, when National Guardsmen descended on hundreds

of youths, some of them with their faces covered, lingering around a plaza. Popping tear gas canisters sent hundreds running and hordes of protesters riding two and three on motorcycles f leeing in panic. Blocks away, a small group knocked a pair of guardsmen riding tandem off their motorcycle, pelting them with coconuts as they sped down a wide avenue. Some in the group struck the two guardsmen with their hands while others ran off with their gear and set their motorcycle on fire. Meanwhile, four demonstrators were killed by gunfire in the western city of Barinas as security forces were dispersing a crowd. Three others were killed amid unrest in the border city of San Cristobal. Amid the showdown, all eyes are on the military, the traditional arbiter of political disputes in Venezuela—and to which Guaido has been targeting his message. On Monday, a few dozen national guardsmen seized a stockpile of assault rifles in a predawn uprising that was quickly quelled, although residents in a nearby slum showed support for the mutineers by burning cars and stoning security forces. Disturbances flared up that night in other workingclass neighborhoods where the government has traditionally enjoyed strong support, and more violence was reported on Tuesday night. AP

A6 Friday, January 25, 2019 • Editor: Angel R. Calso

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editorial

The current economic growth

EADING up to the release of the gross domestic product (GDP) growth numbers, there is always anticipation. It is sort of like the Philippine Charity Sweepstakes Office lottery draw. Actually, it is more like a jueteng draw when no one really wins anything but you can argue about the numbers you did not pick. The government tells the target that is in mind for the GDP growth. That target should first include the words “we want/hope/are praying for...” There is nothing wrong with having a “target.” But that assumes that you can do something to “hit the target,” like shooting the ball on the basketball court. The growth objective that matters is that the economy grows faster— preferably twice as much higher—than the population. If you look back to 1988, the economy was not growing much faster than the population. Further, government debt was sucking so much money out of the economy that could have been used for expansion. Population growth fell below 2 percent, the debt-funded government budget deficit growth slowed, and government foreign debt started falling in 2004. Then—with the exception of the 2007/2009 global financial crisis —the economy started growing at a much faster rate than the population. The latest GDP data shows the economy expanded at 6.1 percent in the last quarter of 2018 for a yearly growth rate over 2017—at 6.2 percent. An economy is made of several pieces, so to understand what these numbers mean, you must understand the parts. Using constant 2000 prices, agriculture accounts for 6.8 percent of the total economy, as industry makes up 28.6 percent and services 48.3 percent in 2018. Growth of industry is almost five times as significant as agriculture, and the service sector has about 1.7 times the impact of industry. Regardless of which sector employs the most people and pays the most total wages, economic activity reflects where we spend our money. Agriculture grew by 0.8 percent for the year and services and industry came in at 6.6 percent and 6.8 percent, respectively. Agriculture grew by 1.6 percent in the fourth quarter but for all of 2018, it posted a 0.56-percent increase in output. Not good. Note that the GDP is based on “money” and prices. But overall actual agricultural production is dismal. Looking at what propelled the numbers in industry and services, we find consumer spending up for the year but was curtailed by higher prices. On a positive note, as inflation went down in the fourth quarter, consumer spending went up. The peso amount of consumer spending may have been higher because of inflation. However, this was not enough to offset the lower value of goods production. Further, investment in equipment and facilities was terrible in the fourth quarter, at the lowest level since early 2014. Again, this was due in part to higher prices because of inflation, worries about consumer demand because of inflation, and concerns that inflation would slow down economic growth. Inflation is always the “economy killer.” Another problem was the move by the Bangko Sentral ng Pilipinas raising interest rates, which made the cost of doing business higher by increasing the cost of borrowing money. Looking ahead, we may have seen the peak in the inflation rate. There is a strong probability that the US Federal Reserve will not be aggressive in raising its interest rates, if at all. The BSP may even reduce local interest rates, thereby giving the nation an economic boost in the months to come. The current economic growth is acceptable but hopefully it will be the lowest we will see for a while. We need inflation to go down.

‘Storytelling’ as tourism strategy Sonny M. Angara

BETTER DAYS

URING the Senate deliberations on the P3.37-billion budget of the Department of Tourism for 2019, Sen. Richard J. Gordon raised the idea that aside from master plans for the infrastructure development of our major tourist attractions, there should also be promotions programs that weave together and showcase the historical and cultural significance of the sites. In short, Senator Gordon urged our tourism officials to leverage stories about our country to attract more people to visit and boost our tourism industry. He cited how the route from Bataan all the way to Tarlac, passing through Pampanga, is a memorial to the Bataan Death March. Malolos, Bulacan, could be propped up further as the Constitution Capital of the Philippines, while Cavite could be made more attractive as revolutionary heart

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million; Malaysia’s 25.721 million; Singapore’s 12.051 million; Indonesia’s 10.407 million and Vietnam’s 7.944 million. This isn’t to say that we do not have great stories to tell. On the contrary, we have centuries’ worth of heritage and history. One narrative we have yet to showcase is our pivotal role in the Manila-Acapulco Galleon Trade. With ships leaving our docks for the Americas, carrying goods from up to 20 Asian countries, we played a decisive role in this veritable precursor to modern-day globalization. Boosting our tourism does entail huge investments in infrastructure—roads, bridges, airports and seaports, as well as hotels and other forms of accommodation. But it also demands us to look into our heritage—the stories we collectively hold as a nation. Sen. Sonny M. Angara was elected in 2013, and is now the chairman of the Senate Committees on Local Government, and Ways and Means. E-mail: sensonnyangara@yahoo.com|Facebook, Twitter & Instagram: @sonnyangara

Russia can’t decide whether it’s rich or poor

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of the country. In Manila alone, an expansive tourism story can be woven, starting from Intramuros and emanating to Chinatown, Quiapo, and Escolta on one side and to Manila Hotel, Rizal Park, the Oceanarium, all the way to Roxas Boulevard, on the other. I am reminded of the efforts of my late father, Sen. Edgardo J. Angara. He spearheaded the construction of a museum in Baler, Aurora,

to showcase how our hometown is the birthplace of President Manuel L. Quezon and the site of the historic siege of Baler, the last holdout of the Spanish Empire in the Philippines. Such narratives, coupled with the draw of prime surfing spots, pristine waterfalls and lush greenery, are helping draw tourists—both local and foreign—to Baler and the rest of Aurora province today. We couldn’t agree more with Senator Gordon’s points about using storytelling as a tourism development strategy, not least because it demands synergy and fosters linkages among business establishments, heritage groups, people’s organizations and the government. Grand narratives need communal action. One could argue that our lackluster ability to preserve, sustain and showcase grand narratives is part of the reason our tourism continues to lag behind our neighbors. According to the World Bank, we only recorded 5.361 million foreign tourist arrivals in 2017, compared to Thailand’s 29.923

Leonid Bershidsky

BLOOMBERG

S Russia a poor country or a rich one? Members of the elite are arguing about it, and the answer is important for the country’s direction after the Putin era ends.

Last week, Anatoly Chubais, architect of the painful economic reforms implemented after the collapse of the Soviet Union, made a controversial speech at an economic forum in Moscow. In it, he argued that Russia is one of the world’s least energy efficient economies, in part because power is cheap and nobody bothers to conserve energy. Chubais, who served under President Boris Yeltsin and now runs Rosnano, a government-funded innovation investment vehicle, is still a hate figure for many who see him as a ruthless neoliberal. So many interpreted his words as a call for energy price hikes, and he duly received a social-media bashing. But his comments about energy prices weren’t what triggered the most interesting debate. It was his statement that “Russia is a poor country, a significant part of the population lives in poverty or in extreme poverty.” That set off an angry reaction from Maria Zakharova, the Russian Foreign Ministry’s top spokesman and one of the most visible public faces of President Vladimir Putin’s administration. “Russia is an extremely rich country,” she wrote on Facebook. “As for why ‘a significant part of the

population lives in poverty or in extreme poverty,’ I’d like a detailed answer from a person who has been a member of the government and a top manager of key parts of the national economy and industry for decades.” This is, in part, an argument across generational lines: Chubais is 63 and Zakharova two decades younger. Her generation of apparatchiks see Russia as an enormously wealthy land for which no project is too big. Winter Olympics in a subtropical area at a cost of $50 billion? Sure! Soccer World Cup? Check. Ambitious bridges, pipelines, foreign military campaigns? No problem. There’s always money to help allies, hurt enemies and advertise the country’s greatness to the world. To the Putin-era generation, the wealth was always there; it was merely mislaid and misused in the early postSoviet years by incompetent or selfinterested predecessors. Chubais’s generation of civil servants see it differently. In a Facebook post, he responded, pointing out that in 1991: The average salary was $12 per month, the ruble wasn’t convertible into other currencies, private enterprise was a crime, Sberbank, which

held everyone’s savings, was bankrupt, the economy shrank by 10 percent to 12 percent a year, inflation was above 100 percent and the stores were empty. By the time Zakharova started her career, Chubais wrote, most of those problems had been overcome thanks to the creation of a market economy and resurrection of private property. Zakharova wasn’t convinced. She pointed out that she started at the Foreign Ministry in 1998, the year Russia defaulted on its domestic debt and devalued the ruble. “You haven’t answered my perfectly specific question, why people live in poverty in a rich country,” she wrote. Chubais parried with a sarcastic “surrender,” telling her: “I think you’re the best in your generation at twisting facts.” Zakharova ended the spat by sarcastically accepting the capitulation. But this was more than a rare public confrontation between senior Russian officials of different generations: The substantive argument isn’t over. Russia has to be governed two ways, as a poor country and as a rich one, because it is both. More than 19 million people, or 13 percent of the population, have incomes below the official subsistence minimum of about $150 a month. That’s extreme poverty by developed-world standards. On the other hand, Russia’s resource wealth is enormous; it doesn’t just have the world’s biggest natural gas reserves, but also Europe’s biggest population of Internet users and higher academic performance scores than half the developed world. Running the country as a rich one is what Putin has done in recent years, spending freely on massive projects, showcase events and power projection. This was an investment in national pride, a motivational exercise as much

as anything else. For Zakharova, a propaganda professional, this exercise is the meaning of her work; for Putin, it has taken precedence over more mundane goals. Even though economic growth has run out of gas, there are still plenty of resources available to the ruling elite to continue dazzling the world, or at least trying to. Everyone realizes the power and the glitter are, to some extent, illusory— but every big project causes a feeding frenzy, because the money is real to its recipients. For the rest, there’s an enormous and well-fed security apparatus that will keep them in check. Governing Russia as a poor country, one in which there isn’t enough of everything to go around, would be a completely different exercise. Concerns such as energy efficiency would come to the fore. So would tackling poverty and inequality. Big feelgood projects would need to be shelved so as to address Russia’s painfully low ranking by education spending. The government’s rhetoric would have to return to the 1990s, when the idea was for Russia to fight for normalcy rather than dominance. Humility— some would say self-humiliation— would be back. There probably exists a happy middle ground somewhere, but so far, post-Soviet Russia has only known the two extremes—focusing either on the bread or the circuses. Striking the right balance will be a key issue for the country’s elite in the post-Putin era. It will need to decide what kind of country has emerged from the three post-Soviet decades—an impoverished one, crying out for more efficiency in the face of scarcity, or a rich and proud one on a path toward greatness.

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Why I resigned as UCPB director

The Republic of Whatever Wisdom Tito Genova Valiente

ANNOTATIONS

Dr. Jesus L. Arranza

MAKE SENSE Continued from A1

N my April 26, 2018, letter to Department of Finance Secretary Carlos G. Dominguez III, I explained my reasons for resigning from the UCPB board, just as I also expressed the same reasons in my April 30, 2018, letter to UCPB President Higinio O. Macadaeg III. I am not against the privatization of UCPB. What I am against is the way the bank’s top management wants it done. Under UCPB’s current structure, the bank is considered a private entity by virtue of Presidential Decree (PD) 2029, which clearly provides that, a government financial institution such as UCPB, that was previously formed and incorporated under the corporation law but later aquired by the government and its subsequent privatization had already been announced, should continue to be treated as a private entity and not a government-owned and -controlled corporation (GOCC). I cannot understand, therefore, why the bank’s top management wants to convert the bank into a GOCC first before having it privatized, when under PD 2029, it can already be considered a private entity. Converting UCPB into a GOCC would not only complicate and lengthen the bank’s privatization process, but it would also affect its bankability with prospective investors. In one of the bank’s board meetings, the UCPB’s chief legal counsel was asked by the bank president to study the status of PD 2029 on the bank’s privatization. The chief legal counsel, however, claimed that said PD had already been repealed. But upon my strong suggestion, the services of private law firm Sycip, Salazar was engaged to conduct the research on PD 2029, and the law office’s report stated that PD 2029 has

not been repealed and is still in effect. On this light, I suggested that the findings of the Sycip, Salazar research on PD 2029 be included in the letter that the bank would submit to the Office of the Government Corporate Counsel. My suggestion, which was approved by the board, was not, however, included in the letter. As a GOCC, UCPB would already fall under government regulatory control, by agencies such as the Commission on Audit and Civil Service Commission, among others. Moreover, its privatization would already be governed by the Philippine Procurement Law, and the salaries of its officers and staff could also be reviewed for compliance to government-prescribed salary standards. As a private investor interested to acquire the bank, converting UCPB into a GOCC first before privatizing it would mean untangling the web of govenrment regulatory control on the bank before it can be fully operational as a private bank, when, under the law, it is now a private bank. I believe the UCPB should be able to get a better deal in its privatization, if it is offered lock, stock and barrel, including its building. Dr. Arranza is the chairman of the Federation of Philippine Industries and Fight Illicit Trade, a broad-based, multisectoral movement intended to protect consumers, safeguard government revenues and shield legitimate industries from the ill effects of smuggling.

Fund managers narrowly dodge a Brexit bullet By Mark Gilbert Bloomberg Opinion

N the long list of challenges facing the European fund management industry, one issue can be crossed out, at least for the immediate future—the risk that Brexit will pull up the drawbridge that allow firms to sell and manage investment products across European Union borders. The various regulatory bodies that oversee investment firms across the EU appear to be in agreement that the current arrangements will survive past March 29, when the United Kingdom is scheduled to leave the bloc. It’s a welcome—and unusual—outbreak of common sense as the Brexit process grows more convoluted with every passing day. In a speech in Dublin last week, Central Bank of Ireland Deputy Governor Ed Sibley said he is confident that the memorandums of understanding required to maintain the status quo between the UK and the EU will be implemented by the departure date. “Firms that delegate portfolio management to the UK can have sufficient confidence that this will continue to be allowed,” he said. That statement should bring a “sigh of relief” for the industry, according to Sean Tuffy, the head of market and regulatory intelligence for Citigroup Inc. in Dublin. Investment firms have lobbied successfully against changes to the rules governing Undertakings for Collective Investments in Transferable Securities, the EU’s €10-trillion ($11.4-trillion) equivalent of the US mutual fund industry, a business dominated by funds listed in Luxembourg and Ireland. Earlier this month, an attempt by the

European Securities Markets Regulator to roll its tanks onto the lawns of domestic regulators was rebuffed by the European Parliament. ESMA had sought more control over so-called delegation rights, which allow funds to be listed and sold in one nation while the portfolios are managed in a different country. Lawmakers made it clear that national watchdogs will remain the arbiters of what’s acceptable in outsourcing those activities. The world of finance, which barely featured in UK Prime Minister Theresa May’s proposals, has been quietly safeguarding itself from the consequences of Britain leaving the EU without a deal. Last month, Germany introduced draft legislation to allow UK-based institutions to continue to use their existing passporting rights through 2020. And there’s been a similar extension in the derivatives market that should help London to keep its central role, for now. The European Commission has agreed that financial firms across the bloc will be able to use London Stock Exchange Plc.’s LCH Ltd. clearinghouse for 12 months after Brexit. What can possibly explain this unprecedented attack of logic and practicality, given that the entire Brexit process has thus far been characterized on both sides by shortsightedness, mistrust and muddled thinking? Sibley, who handles regulation for the Irish central bank, gave a clue in his speech by referring to how London delivers “a very material amount of the financial services needs” of the EU. Barring a fund sold in Italy from being managed in London would deprive buyers of that investment product of the undoubted investment expertise that’s based in the city.

Friday, January 25, 2019 A7

HERE was an island-republic that was known for its unique attitude to life and law, to order and peace. The republic became famous for its location: it was in that part of the ocean, where its back was turned against a giant land populated by acquisitive creatures noted for naming all lands and seas, all moving creatures, even unmoving stones, as its own. The republic was closer to this behemoth of a land mass but, for whatever reasons—hey, there is that word—the land and its happy people tended to face another republic that was several miles away, across a vast ocean—a land that believed its people were white and blonde and tall and good-looking, when, in fact, those white ancestors occupied the land and drove the original settlers into the woods and were, thus, by residence, declared witches. To this land of milk and honey, the island-republic felt loved. This island-republic was noted for being a nation of happy people. In fact, there was a period when it was ruled by a couple who masked their ruthlessness with charm and good manners. I forgot to tell you that the island-republic cultivated a culture of charm and good manners. Anthropologists, when they were still free to roam the forests of this island-republic, discovered that the people living there and in the other areas of the republic did not possess the notion of evil. It was all charm and good manners, Sweetheart. The other half of this ruling couple—the queen—had cultivated a love for numbers. Well, you know what wise men can do with numbers, they could turn them into what shamans called “statistics.” These were numbers that were so wild they could live unhampered in anyone’s brain. This woman came up with the idea that her island-republic was where the region wore a smile. That bothered the other wise men and women. A smile was never part of any study on statistics. They fought that concept, for in this island-republic, wise men and women were always ready to go to any war with concepts. Instead of wild statistics, the island-republic legalized smiles as “numbers.” You count the numbers and the sum total stood for level of development. Wonderful, the people— mostly politicians—very close to the couple agreed. But one day, for whatever reason, the people got tired of the couple. The people drove their “king” and “queen” (for that was how this couple thought they were) to the land of supposedly white men and women with yellow hair. Another ruler came to power. She was a woman, kind and gentle. She carried a yellow banner, not so much to honor the land of white men with

yellow hair, but to pay tribute to an anthem composed by a white man with black hair. The song was really a tacky song but years had weird ways of turning trash into treasure. The song “Tie a Yellow Ribbon Round the Ole Oak Tree” was transformed into an anthem of hope, a battle cry. It even supplanted a maudlin song that was about a village who cried like a bird when it was caged. Historians—or those people who believed in the past and in colonial diaries called “archives”—were at a loss in describing how a flippant song could push people into fighting for freedom. There was no explanation. Wise men and wise women, after much lamentation and theorizings (for the two were interchangeable), looked at each other and uttered the

And so one day, like a breath of air, not necessarily fresh, the people placed on the throne a ruler who had no charm and no good manners. Tired of what they thought to be pretenses, the people or a majority of them, went wild with the man with no charm and good manners. word “whatever.” These wise men and women who taught in big schools began to popularize that word, “whatever.” It could be used anywhere and everywhere. It described why oil price could not be controlled. It explained why men called “priests” and not women ruled sites called “churches.” It explained why these priests who spoke of being poor as virtuous were really never poor. It helped ordinary people accept even the dumbest, and therefore most difficult, concept of servant-leader. It aided people to embrace deadly creatures called politicians. Now, politicians as people and as idea challenged even the most brilliant of philosophers. In the island-republic, politicians ruled the everyday life. They ruled eating and drinking. They ruled breathing and living. They ruled beauty even. The politicians were able to do this by passing what were called “laws.” These so-called laws were really senseless and stupid words stringed together to compose what appeared to be a landscape of sense and sensibility. Remember what I told you before? The people of

Fulfill the promise for the children Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

EAR brothers and sisters, the allies in Congress of President Duterte, led by Speaker Gloria Arroyo, wish to lower the age of liable criminals. Their aim is to change the current minimum age of criminal responsibility (MACR) of 15 years old to include nine-year-old children. This is not the lawmakers’ first attempt to label nine-year-old children who have committed acts against the law as criminals. It seems they have forgotten their promise back in 2017 to strengthen the Juvenile Justice and Welfare Act, instead of lowering the MACR. It was explained multiple times by different groups, including the Church, that the basis of restituting children who have committed acts against the law is not to lower the MACR. Instead, authorities should focus on reducing widespread poverty, solving poor children’s lack of access to education, and strengthening

this island-republic went for charm and good manners, for things that appeared nice on the surface. In reality, these laws were fatuous and flaky, insipid and inutile, irrelevant and insensitive to the reality out there. There was another problem, giant schools taught a course called “Philosophy,” which was mindlessly borrowed from worlds that did not exist anymore. These courses taught many men and women who became leaders and politicans that “reality” was something out there. It was an idea so difficult to comprehend and, in an island-republic, where everyone valued everyone who could show they understood anything even if they didn’t, this was tragic. Politicians were people who could convince other people they understood reality, when, in fact, they could not. These politicians who passed the laws were like the laws. They were handsome and dressed well. It did not matter what was behind the pocket squares; what mattered was the scent they exuded. The women, for there were women-politicians, were filled with pulchritude, for even that could be passed like a law. And so one day, like a breath of air, not necessarily fresh, the people placed on the throne a ruler who had no charm and no good manners. Tired of what they thought to be pretenses, the people or a majority of them, went wild with the man with no charm and good manners. All went well for a few days. People laughed at his jokes. And yet, people were being killed all around. But there were always laws to support the killing. And there were politicians—some still had manners and charm and some did not—and they were passing laws that helped in killing more people. No one knew what to do with the ruler, the politicians and the laws. All people could say was “whatever!” And then one day, a law was passed: Children who are bad should not be allowed to live beyond the age of 9! Why that age? Why not 15? Or 18? Nobody had any explanation. The politicians mustered enough charm and good manners and looked at each other and muttered: “Whatever.” The people who loved leaders with charm and good manners, without charm and good manners, stared into the horizon, with tears in their eyes and whispered: “Whatever.” But, there are gods, hmmm, okay, there is a God. One day, with the gnashing of teeth and the pulling of hair (why these images, I don’t know…whatever…) in the islandrepublic, that God looked down, cocked His mighty head, and bellowed: WHATEVER!

the implementation of the Juvenile Justice and Welfare Act. Lawmakers must also understand that according to the Juvenile Justice and Welfare Act, there are particular processes that lead children to break the law. There’s an alarming development where more and more children were accused of committing illegal acts. In the first six months of 2018, for example, over 5,000 children were documented to have committed illegal acts. But there’s another way to look at this development: The number of licensed social workers is getting scarce, according to govern-

ment data. These social workers are supposed to support and help these children. Worse, only 3 percent of the country’s social workers are licensed to provide services to both children and the elderly with cases of abuse and abandonment. According to the Juvenile Justice and Welfare Council, there’s a lack of funding among local governments for intervention programs for “children at risk” or children who are under circumstances that may lead to a life of crime. These include street children who are most at risk. Also, there’s a need to fund diversion programs that will help children in conflict with the law. The move to lower the MACR shows that most of our politicians lack understanding of restorative justice, which was endorsed by the Juvenile Justice and Welfare Act. The goal of restorative justice is to heal or mend not only the broken relations between children who have committed crimes and the victims of the crimes committed, but also the relations and relevance of the children to society. If these children are given sufficient guidance, they will be given new hope. In helping someone who has com-

E-mail: titovaliente@yahoo.com.

mitted a crime at a tender age to right his wrongs in a humanistic way, restorative justice will help preserve the innate dignity of the person. Instead of lowering the standard age of criminal responsibility, our politicians should fulfill their promise to improve the protection of poor children. Hopefully, they will see to it that the Juvenile Justice and Welfare Act gets the needed funds that allow agencies focusing on children in conflict with the law to do their jobs. As for the local government units, we must call upon them to provide a suitable budget for more appropriate programs. A good start would be providing funding for social workers who will help guide the children in conflict with the law. My brothers and sisters, care and guidance, not punishment and incarceration, are what these children involved in illegal acts need. Children are not criminals. Make it a habit to listen to Radio Veritas 846 Ang Radyo ng Simbahan in the AM band, or through live streaming at www.veritas846.ph and follow its Twitter and Instagram accounts @veritasph and YouTube at veritas846.ph. For your comments, e-mail veritas846pr@gmail.com.

2nd Front Page BusinessMirror

A8 Friday, January 25, 2019

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‘Implement Juvenile Justice Law before changing MACR’

By Jovee Marie N. dela Cruz

@joveemarie

AWMAKERS on Thursday said the government should first strongly implement the Juvenile Justice and Welfare Act of 2006 before asking Congress to pass the bill lowering the minimum age of criminal responsibility (MACR). Albay Rep. Edcel C. Lagman said the present Juvenile Justice and Welfare Act of 2006 must be fully implemented first but with the assurance of adequate funding for non-penal institutions and programs for children in conflict with the law. “We must not expose children to the adversities of prosecutory and judicial processes just because government has failed to implement the juvenile justice law,” he said.

“Lowering the minimum age of criminal responsibility will not result in lower crime rates. Data show that children commit only 1.72 percent of reported crimes, and most of them are poverty-induced crimes like theft. Poverty is the problem which must be addressed and solved,” he added. Earlier, Speaker Gloria Macapagal-Arroyo admitted that she was pushing for the enactment of the bill even in its original version of

“You don’t help victimized and marginalized children by branding them as criminals and limiting their options while growing up. This vile and callous retreat is...a clear indictment of the government’s failure until now to protect and advance the rights of our children.” —Zarate

a nine-year threshold because it is the priority of President Duterte. “The House of Representatives is a veritable chamber of regressive legislation after it reduced the minimum age of criminal responsibility from the present 15- to 12-year-old children even as it previously restored the death penalty. These two regressive measures are included in the priority legislative agenda of President Rodrigo Duterte, which he announced at the start of his incumbency,” Lagman said.

The House of Representatives on Wednesday approved on second reading the House Bill 8858 lowering the minimum age of criminal responsibility in the country from 15 years old to 12 years old. The bill is expected to be approved on third and final reading next week. For his part, Magdalo Rep. Gary C. Alejano said Arroyo cannot escape her responsibility by placing all the blame on the President. “As a representative of the people, she cannot possibly ignore the fact that whatever fate befalls this country and its people is a fate which she will be held accountable for,” he said. “I gently remind Speaker Arroyo that, as a coequal branch of the Executive Department, Congress is not the president’s rubber stamp. We must maintain our independence so we can protect the welfare of the people, especially the weak and underprivileged. See “Juvenile justice,” A2

Data gaps spur Cotabato COC audit Suzuki PHL By Samuel P. Medenilla @sam_medenilla

ARRED by the alleged inaccuracies in its entries, the certificate of canvass (COC) for Cotabato City will now undergo auditing from the National Plebiscite Board of Canvassing (NPBOC). In its session on Thursday, the NPBOC officially started the national canvassing of the Bangsamoro Organic Law plebiscite with the COC of Cotabato City. However, it has yet to declare the official results for Cotabato City after some of the members of the NPBOC—Commission on Elections (Comelec) Commissioners Luie Tito F. Guia and Rowena V. Guanzon—questioned the apparent discrepancies in the COC figures.

Inconsistent figures

GUIA asked why the COC contained

registered voters of only 39,027—lower than the actual 113,751 registered voters in the city. Guanzon noted the 24,994 No votes in the Certificate of Candidacy does not match the 22,507 No votes in the Summary of Votes. “If this is the [case], then you are lacking around 2,400 votes,” Guanzon said. Acting Cotabato City Election Rommel Rama attributed the so-called discrepancies to the errors committed by the Plebiscite Committees in their entries. “During the canvassing your honor, we witnessed some election returns have no entries particularly on the total number of registered voters, voters who actually voted and voters who actually did not vote,” Rama explained. “The canvassing officers are just adopting whatever figures appear on the election return,” he added.

TAIL-END OF A COLD FRONT AFFECTING BICOL REGION AND EASTERN VISAYAS NORTHEAST MONSOON AFFECTING THE REST OF LUZON as of 4:00 pm - January 24, 2019

Suspended canvassing

COMELEC and NPBOC Chairman Sheriff M. Abas ordered their Tabulation and Auditing Committee to audit the COCs and SOVs from Cotabato City to ensure all of the inaccuracies are addressed. The NPBOC has yet to receive any petitions from Cotabato City Mayor Cynthia Guiani-Sayadi. Guiani-Sayadi earlier said she will file a complaint over the Moro Islamic Liberation Front’s alleged intimidation of plebiscite voters. After concluding its canvassing for Cotabato City, the NPBOC immediately suspended its session, to be reconvened on 2 p.m. of Friday. Among the COCs expected to be canvassed during the sessions are those from the Isabela City and from the province of Basilan, which both arrived late afternoon on Thursday.

rolls out all-new Ertiga

UZUKI Philippines (SPH) rolled out on Wednesday its best-selling seven-seater MPV—the all-new Ertiga, at the Marriott Grand Ballroom in Pasay City. The all-new Ertiga bears an improved design of combined strength and fresher look in a compact body. The interior has a new layout, which is further highlighted with wooden trims for added elegance. Another notable upgrade and exclusive to the top spec model is the tablet-like 10-inch capacitive touchscreen infotainment system equipped with Bluetooth connectivity functions. The storage bay now has 40 liters of space compared to the previous model’s capacity and an improved 50:50 split luggage board. Ertiga’s power train is a new 1.5-liter KB15 petrol engine, which generates 103 hp at 6,000 rpm and 138 N-m of maximum torque at 4,400 rpm. It is paired to a four-speed automatic transmission exclusive to the GL and GLX models. The five-speed manual gearbox option is available for the GA and GL models with higher output compared to its predecessor. The all-new Ertiga is priced at P728,000 for the GA model, P848,000 for the GL MT version, P888,000 for the GL AT model and P978,000 for the top-of-line GLX. Randy S. Peregrino

Plastic. . .

BULLISH ON PHL Japanese high-technology firm Nidec-Shimpo’s Senior Vice President Hitoshi Inoue (left) explains how a high-precision speed reducer works to Sen. Richard J. Gordon and SBMA Chairman Wilma T. Eisma during the opening of the Nidec-Shimpo manufacturing plant at the Subic Bay Freeport on Wednesday. Japanese Ambassador Koji Haneda, who graced the opening, said investor confidence in the Philippines remains strong. Story on page B1. HENRY EMPENO

FDI. . .

Public Services Act

Continued from A1

Pernia said factors beyond the control of the government may have led to Hanjin’s woes. He said, however, that Hanjin cannot blame the global shipbuilding/logistics environment given that another shipbuilder in the Philippines is doing well. He said Tsuneishi Heavy Industries (Cebu) Inc. in Balamban, Cebu, is “doing very well” despite some experts saying Hanjin failed due to a slowdown in shipbuilding activities globally. Local economists such as former Socioeconomic Planning Secretary Romulo L. Neri, Ateneo Center for Economic Research and Development Director Alvin P. Ang and private economist Calixto Chikimaco all agreed with Pernia that Hanjin was an isolated case. They all pointed out that Hanjin’s troubles were not caused by Philippine-related factors such as the current business environment. These were mainly due to financial mistakes, Chikiamco said. “Hanjin’s problems have nothing to do with Philippine factors but more due to a decline in global demand for shipping and to Trump’s trade war,” Neri also said.

Poor subcontracting

HOWEVER, labor economist Rene Ofreneo said he could already sense Hanjin’s troubles as far back as three years ago when news about the number of its subcontractors came out. Ofreneo said Hanjin’s poor subcontracting practices and human-resource management was an indicator that the company “would not last long” in the Philippines. “This is the reason I would also say that cheap labor can be expensive in the long run. Because they committed quality [and] productivity, but you cannot do that by underpaying [employees] and by not complying with standards,”Ofreneo told the BusinessMirror. Neda Undersecretary for Planning and Policy Rosemarie G. Edillon said this is why the government is focusing on the affected Hanjin workers. Edillon told reporters that Hanjin workers must be taken care of. She said there are about 2,000 to 3,000 workers who were left after the beleaguered shipbuilder started scaling down its work force last year. She added that in terms of the economic damage to Subic or the region, the failure of Hanjin would not have a significant impact on the local economy. “Actually, there are no details yet on how to really go forward but in terms of priority objectives, the first priority will be the workers,” Edillon said.

Continued from A1

Establishments surrounding the popular sunset viewing sight were tasked to either connect to sewer lines or put up their own sewerage treatment plant in accordance with environmental laws. Informal settlers residing near the bay will also be relocated in housing sites to be identified by the government. In spite of the shifting consumer preference, packagers are optimistic their industry will continue to expand, as demand will always be present for as long as the economy is driven by consumption, Jocson argued. Consumption accounts for 70 percent of the economy. “[Packaging] correlates with population. It correlates with inflation. It correlates with income of the people. When the population grows, the demand for food rises, as well as the need for packaging. The industry keeps on expanding, and it never declined,”the business leader explained. He claimed the global value of packaging now stands at $1 trillion, which he said is proof that the industry remains firm in the face of adversity. Jocson added labels and packs make up at least 20 percent of total cost of every product—it is, therefore, virtually irreplaceable. “Actually, we see it as the third-largest industry because, as I have said, everything is packaged: from the food we eat to the commodities we purchase in the supermarkets,” he said. Packagers from all over the world on Thursday gathered at Pasay City for the ProPak Philippines 2019 Expo. The three-day business convention intends to present to enterprises the latest innovations on packaging and processing solutions.

MEANWHILE, Chikiamco said in order to make the Philippines an attractive investment destination for businesses, laws such as the Public Services Act must be amended. Ang cited efforts to improve the business climate such as implementing measures that would promote ease of doing business in the country. He added that the government must also prioritize the drafting of the implementing rules and regulations for the Anti-Red Tape Act of 2007. Ang said that, to this day, no IRR has been passed for the Arta. Ofreneo said a lot of factors can spell success or doom for prospective investors. But the Philippines has many advantages such as a large market size that will convince businesses that the country is a good place to invest in. Nonetheless, he said, Hanjin may have a negative impact in terms of convincing some investors. But when they investigate the causes of Hanjin’s troubles, they will find out that there are other factors at play, primarily the poor labor standards in the shipyard.

Focus on incentives

OFRENEO said the primary focus is to improve the country’s business climate, including discussions on incentives. These discussions are now being highlighted due to the Tax Reform for Attracting Better and High-Quality Opportunities (Trabaho) bill now pending in Congress. European Chamber of Commerce of the Philippines Executive Director Florian Gottein earlier said that removing incentives under the Trabaho bill will be counterproductive for the economy. However, Ang said this is the primary concern when it comes to the Trabaho—proper and efficient communication between the government and investors. “That one [Trabaho bill] needs a good clarification and communication from the government. That refers to rationalization and not removal so it’s a matter of explaining,” Ang said. Apart from these, Pernia said efforts to increase investments this year also hinge on the creation of the entity arising from the Bangsamoro Organic Law. The government is still in the process of completing the plebiscite for the BOL, the second of which will be done in February 6. Pernia said the BOL will open Mindanao to investors and will increase Southern Philippines’s contribution to the country’s economic growth. However, he said, he could not yet say how well BOL can improve Mindanao’s economy or how much investments can come in after the plebiscite.

BSP. . .

Cai U. Ordinario

Continued from A1

Bank of the Philippine Islands (BPI) lead economist Emilio Neri Jr., also vouched for a possible cut in the banks’ reserve requirement ratio (RRR) for 2019, but said the BSP will not likely cut its main policy rates or the so-called reverse repurchase (RRP) rates soon. Neri also said the Central Bank will likely use its other monetary-policy tools to move to a more accommodative stance this year. “After just hiking its policy rate by nearly 200 basis points, the BSP will likely pick low-hanging fruits before considering reversing its course on the RRP. To alleviate the liquidity challenges faced by the financial system, the BSP will likely prioritize cutting the RRR by 2 percentage points or more in 2019 over a policy rate cut,” Neri said. “The other lower-hanging fruit the BSP will likely pick over a sudden RRP cut is non-sterilized purchases of foreign currencies in the spot foreign-exchange market. By keeping its policy rate attractive to portfolio flows, the BSP will not only be able to replenish its international reserves but can infuse much-needed liquidity in the funds market,” he added. Meanwhile, local markets showed mixed movement during the day’s trade after the announcement of the country’s slower growth rate.

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Editor: Efleda P. Campos

Congress can still revoke Mislatel’s 3rd telco license

By Lorenz S. Marasigan

@lorenzmarasigan

HOULD lawmakers decide to void the congressional franchise of Mindanao Islamic Telephone Corp. (Mislatel), which is close to fulfilling the post-qualification requirements for the third telco franchise, the government would have to go back to square one and conduct another round of auction for the third telco license. Information Secretary Eliseo M. Rio Jr. said this would be the likely outcome should solons subscribe to the idea that Mislatel’s franchise was ipso facto (as a direct consequent) revoked for not operating telco services from the time its congressional license was approved in 1998. “We will have to go back to square one if that’s the case, because we have no second placer during the bidding. Only Mislatel qualified during the prequalification phase,” Rio said on the sidelines of a Senate hearing on Thursday. Sen. Franklin M. Drilon questioned during a public hearing the validity of Mislatel’s franchise as it never provided telco services. He also questioned the ownership structure of the company,

which saw movements in terms of controlling entities, in the last three years. Citing certain provisions in the franchise of Mislatel, Drilon said any transfer of control in the company should be approved by Congress, and ipso facto void due to the non-utilization of the franchise since it was granted two decades ago. Mislatel President Nicanor Escalante clarified that the delayed utilization of the franchise was due to the peace-and-order problem in Maguindanao, its chosen area of operations. This very issue will be deliberated upon by lawmakers, who will then decide either to allow or void the franchise of Mislatel. Should they revoke it, Rio said, his office would have to restart

SEN. Grace Poe, chairman on the Committee on Public Services, field questions to Dennis Uy, CEO and president of Udenna Corp. during a public hearing on Mislatel. ROY DOMINGO

the whole process. “In such an event, we can tweak the terms of reference based on the concerns raised by the senators,” he said. Rio added that should there be a rebidding for the third telco license, it might take the government up to six months to complete the process. Mislatel—a group led by Udenna Corp. and China Telecom Corp. Ltd.—emerged as the only compliant bidder during the third telco license auction in November, after two other hopefuls failed to comply with the requirements on different counts. For now, Mislatel is focused on completing the post-qualification requirements of the auction. It has until February 17 to submit all the documents the National Telecommunications Commission (NTC) has required from it, based on the terms of reference. Once completed, the regulator may then award Mislatel its own certificate of public convenience

Envoy cites continuing Japanese investor confidence in PHL By Henry Empeño Correspondent

UBIC BAY FREEPORT—Japan Ambassador to the Philippines Koji Haneda said that Japanese investor confidence in Philippine business remains strong, as demonstrated by the expansion project of a Japanese high-technology company in this free port. Speaking during the formal opening of Nidec-Shimpo’s manufacturing plant at the Subic Techno Park here on Wednesday, Japan’s representative to the country also cited bilateral efforts to attract more Japanese investments into the country. “It has been a delight to see Japanese companies in the Philippines forging ahead in their respective fields. Nidec’s expansion demonstrates the continuing Japanese investor confidence in the Philippines’s business potential,” Haneda said during the ceremony. “Together with the Department of Trade and Industry [DTI] and the Subic Bay Metropolitan Authority [SBMA], we are finding every opportunity to complement the initiatives of the Philippine government to attract more Japanese investments,” he added. “The huge role of the DTI and SBMA in creating an enabling environment for business comes into play as local and foreign companies alike—such as Nidec—stay competitive, create jobs and drive economic growth,” the Japanese official said. Haneda’s pronouncements came after a report from the Japan Ex-

ternal Trade Organization (Jetro) indicated more Japanese firms in the country might suspend expansion plans due to issues on tax incentives and labor policies. The report said the number of Japanese firms that will expand business this year declined to 52 percent from 63 percent last year, and that those who would refrain from expanding rose to 46 percent from 35 percent. In his Subic message, however, Haneda expressed hope “that more and more Japanese companies will further fortify their presence in the Philippines, similar with what Nidec has now tremendously achieved.” The opening of the Nidec-Shimpo facility here is seen as an expansion project of Japan’s Nidec Corp., which has put up Nidec Subic Philippine Corp. here in 1996 to manufacture hard-disk drives. Nidec-Shimpo First Senior Vice President Hitoshi Inoue said the new Subic facility will manufacture for the first time a new line of robot components developed in Japan. He described the new products as gearless speed reducers for highprecision motion control applications that are “super silent, and with zero backlash and smooth rotation.” Inoue added that the components, which will be ideal for robotic applications in hospitals, schools and libraries, will be exported to Spain, the United States and Germany. He said the Subic plant will initially build the speed reducers at the rate of 10,000 to 25,000 units per month, and then increase production to 100,000 units per month at

the end of this year, and to 120,000 units per month by March 2020. Sen. Richard J. Gordon, who was also present in the ceremony, said Nidec’s new project “shows the trust and confidence of companies like Nidec in the capacity of Filipino workers, and in our government’s consistency in our rules and regulations.” “We should have more companies like Nidec in Subic,” he added. SBMA Chairman and Administrator Wilma T. Eisma noted Nidec-Shimpo’s operation here “will further promote Subic’s stature in high-end manufacturing, improve the proficiency of local workers in technology, and of course, bolster the local economy by increasing exports.” She also praised Nidec-Shimpo for sending local workers to Japan for training. Inoue said the firm had sent a total of 100 Filipino workers to Japan as the first batch of trainees to learn the technology involved in producing precision motors and speed reducers. Of these, 70 had finished the course, and Nidec had again sent another 46 trainees for the second batch. He added that Nidec intends to hire more personnel at the Subic plant on top of the 100 workers it will employ in the first year of operation. He said the Subic factory’s monthly product capacit y of 120,000 units is greater than the combined capacity of Nidec’s plants in Kyoto, which was at 30,000 units in 2018, and in Ueda, which is expected to reach 50,000 units in 2019.

and necessity and a swathe of radio frequencies, both of which will allow it to operate telco services across the Philippines. Based on its bid, Mislatel will cover roughly 37 percent of the whole Philippines with a minimum Internet speed of 27 Mbps through a P150-billion capital and operational expenditures budget during its first year of operation. Its five-year commitment entails P257 billion in total money spent, which should provide for an 84-percent coverage with a minimum Internet speed of 55 Mbps. The third telco is seen to break the duopoly of Globe and Smart, and introduce more competition in the hotly contested telco market.

Friday, January 25, 2019

Alpari Research sees strong peso this year By Rizal Raoul S. Reyes

@brownindio Contributor

HE Philippine peso will remain strong in 2019 unless there is a major movement in the price of oil in the world market. Tomasz Wisniewski, head analyst of Alpari Research and Analysis, said on Thursday the Philippine peso will appreciate to as much 49 to the $1 if it gets the necessary support mainly from external factors. “We feel positive for the Philippine peso in 2019. If the global economy slows down, prices of crude oil will drop because of the economic slowdown which, in turn, will have a positive impact on the peso,” Wisniewski told the media in a briefing held in Makati City. Assuming the inflation pressure is over, Wisniewski said it may spur the strengthening of the local currency which will be complemented by the lower price of oil. The inflation rate reached a high of 6.7 percent in October last year which dropped to 5.1 percent two months later, in December. “In 2018, the Philippine peso emerged as one of the weakest currencies in the Asean region. This can change in 2019, but for now, it is too early to tell. It is worth noting that a ray of hope showed up recently in the last quarter of the

year. It is promising and most probably, will help the Philippine peso in first few months of 2019,” he said. He said the local bourse market will also have a banner year in 2019, saying it is one of the darlings not only in the region, but in the world. Although the stocks are undervalued, Wisniewski said foreign investors welcome this development. Moreover, he said the rising demand for local shares should also boost the appetite in buying the local currency. “Once the Manila stock exchange is established as the local leader, the Philippine peso should gain at a faster pace than its other regional peers,” he said. “The price of oil is the most important factor in the weakening of the peso. The depreciation of the peso started when the prices of crude oil increased in the global market,” Wisniewski said. To get to the $1 to the 49 exchange rate, Wisniewski said, the peso has to break the 52 to the $1 rate. Even though the peso has gained strength in the past few weeks, Wisniewski said there is still a long way to go to reach that level. “ That represents weakness, which has most recently pushed the value of the Philippine peso lower. We will be more optimistic toward the Philippine currency when the price falls below 52 to the green buck,” he said.

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Friday, January 25, 2019

Editor: Efleda P. Campos

DOE chief pushes amendment to PNOC chapter

By Lenie Lectura

@llectura

NERGY Secretary Alfonso Cusi is strongly pushing for the amendment of the Philippine National Oil Co.’s (PNOC) charter so the state firm can perform its mandate. “I already submitted the amendment to Congress,” Cusi said. PNOC, being a governmentowned and -controlled corporation

(GOCC), could not implement vital projects on time because Congress must first approve its budget. For instance, PNOC was sup-

posed to take the lead in the liquefied natural gas (LNG) project, but Cusi said it’s been two years and yet PNOC has not secured approval from Congress. In 2017, PNOC’s budget request was deferred after asking for funds for its proposed LNG integrated facility. “I was hoping the lead was PNOC, that they will be able to do it. While they were doing it, they were looking for a partner. So, I said, why don’t they do it? But they couldn’t because they were still making studies and budget and that they have to present it. But

it’s been almost two years already,” Cusi said. “This is PNOC’s money and it still needs approval for use of its own money when it already has its own board.” Cusi is PNOC’s charman. The energy chief said a GOCC is created to “add value for the country, give opportunity to the people.” “They have assets, resources. They can use this to help improve the economic situation. That’s the purpose of GOCCs. They are not supposed to be the liability of the country, but is supposed to help, improve the lives of the people in this country,” Cusi

said. Signed on November 9, 1973, Presidential Decree 334 created PNOC due to a compelling need for the government to embark on measures that will help ensure a stable supply of petroleum products in order to sustain the growth of the economy and the social well-being of the nation. By 2030, PNOC should have provided vital energy resource/development and energy infrastructure, conducive to a clean environment and balanced and sustainable economic growth. PNOC’s mission, according to its

web site, is to develop and implement projects and programs in a financially prudent and responsible manner aimed at increasing the country’s self-sufficiency level in oil, gas and other energy resources. “Hypothetical situation. If an organization or unit is not doing its purpose, what do you do with it? If we can’t invest because our hands are tied and we just wait for rental proceeds, then PNOC is not living up to its mission anymore. Let’s change the fiscal policy. Let’s amend the charter. If we can’t, then let’s just abolish it,” Cusi said.

Ford posts quarterly loss amid struggles in Europe, China

EARBORN, Michigan— Ford Motor Co., which has struggled overseas and saw US sales fall last year, reported its first quarterly net loss in two years Wednesday. The Dearborn, Michigan, company said it lost $116 million, or 3 cents a share, in the fourth quarter, compared with a $2.52-billion profit a year earlier. It last posted a quarterly loss in the fourth quarter of 2016. The loss included an $877-million one-time charge to revalue global pension assets due to a late-year market slide. Ford made $3.68 billion for the full year, but that was only about half of what its net profit was in 2017. North America was its only profitable region. “It’s not a year that we were happy with,” Chief Financial Officer Bob Shanks told reporters. “I think the fourth quarter kind of continued in that theme.” The annual and fourth-quarter performances sent company executives scrambling to explain to Wall Street analysts why it was taking so long to restructure and roll out new products that could increase sales and profits. CEO Jim Hackett, who replaced the ousted Mark Fields in May

2017, acknowledged frustration with the speed of Ford’s $11-billion restructuring effort. “It is what it takes to build an industrial model that we’re talking about, to do it the right way, to not have it fall apart,” he said on a conference call with analysts. Shanks said the company has a good handle on its underperformance in China and Europe and said it is addressing problems. The company, he said, is trying to flatten its structure in the US to eliminate layers of bureaucracy, and those efforts will finish in April. Cost savings from Europe should start showing up this year, he said. Hackett said the company was slow to refresh its vehicles around the globe. “We were constipated in product development,” he said, adding that Ford has updated its vehicles and propulsion systems while cutting costs. Ford also is in the middle of a new product rollout largely in China and North America, and this month announced a restructuring of its European business that included layoffs and factory cuts. Redesigned vehicles coming in the US this year include the Ford Explorer large SUV, the Ford

Trading error blamed for $41-B drop in top Singapore stock

Escape small SUV and the Ranger midsize pickup truck, all in growing segments of the market. But because of an aging product lineup and the decision to start getting out of the sedan market as buyers switch to SUVs and trucks, US sales fell 3.5 percent last year. Ford lost 4 percentage points of market share for the year, yet its average sales price rose 14 percent to $40,746, according to the Edmunds.com auto pricing site. Without one-time items, Ford’s full-year profit was $1.30 per share, in line with the company’s recent guidance but short of Wall Street’s expectations. Analysts polled by FactSet expected $1.32 per share. Also excluding one-time items, Ford posted a profit of 30 cents per share from October through December. That fell just short of analyst estimates of a profit of 31 cents. The company made a pretax profit of $7.6 billion in North America for the year, down 6 percent f rom 2017. Sti l l, US unionized workers will get profit-sharing checks of $7,600 each in March. Its f inancia l ar m, Ford Credit, posted a $2.63-billion pretax profit, up 14 percent from 2017. But the automaker lost $1.1

ARDINE Matheson Holdings Ltd., the flagship investment firm of a 186-year-old conglomerate, plunged 83 percent before quickly recovering, with traders speculating that a fat finger error may have caused the dramatic drop. T he Singapore-listed stock sank in pre-market trading as about 167,500 shares changed hands at $10.99, compared with Wednesday’s close of $66.47. It soon recovered all those losses and ended up closing 0.5 percent higher on Thursday. The price action suggested that the plunge, which wiped out as much as $41 billion in market value, could have been caused by human error, ac-

billion before taxes in its AsiaPacific region including China for the full year. It also posted pretax losses of $398 million in Europe for the year, $678 million in South America, and $7 million in the Middle East and Africa. Revenue rose 2 percent for the year to $160.3 billion, topping Wall Street estimates of $155.77 billion on stronger prices that customers paid for Ford vehicles, the company said. Its pretax profit margin was 4.4 percent. The company predicts “potential improvement” in revenue and profit margins this year. Without $3.3 billion in headwinds of tariffs and extraordinary recall costs, including faulty Takata air bags, the company’s performance in North America improved, Shanks said. The costs likely are not recurring, he said. US tariffs—mainly on imported aluminum and steel—cost the company $750 million, while commodity costs unrelated to tariffs rose $1.1 billion. Ford also lost $750 million due to unfavorable currency exchange rates and it had $775 million in expenses linked to recalls, Shanks said. Ford’s shares rose about 1 percent in after-hours trading on Wednesday to $8.40. AP cording to four traders. “Looking at the price recovery, it looks like a fat finger at the moment until we have more updates,” said Marc Tan, a research analyst at KGI Securities Pte. The group is aware that an electronic trading error occurred and that “the exchange should have now stepped in to sort out the issues,” Jessie Tsui, a spokesman for the conglomerate, said by e-mail. A spokesman for Singapore Exchange Ltd. said the bourse is looking into the stock slide. T he Ja rd i ne M at he son group, founded in July 1832 in China and headed by the Keswick family, was one of the “hongs,” or trading houses that shaped the development of Hong Kong for more than a century. After moving its listing from Hong Kong to Singapore, the group has gradually shifted its business toward Southeast Asia. It also has investments elsewhere, including in Rothschild & Co. The conglomerate’s units operate a wide range of businesses ranging from running Pizza Hut restaurants in Asia to supermarkets and Mercedes-Benz dealerships in the region. The group, also known as Jardines, generated more than $83 billion in revenue in 2017 and earned $1.57 billion in underlying profit, according to its web site. Bloomberg View

MUTUAL FUNDS

January 24, 2019

NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D PER SHARE RETURN* RETURN STOCK FUNDS ALFM GROWTH FUND, INC * 266.68 -12.58% 6.57% 3.5% 5.73% ATRAM ALPHA OPPORTUNITY FUND, INC.* 1.4787 -9.33% 14.24% 3.53% 2.63% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC.* 4.1277 -13.79% 8.97% 1.81% 5.76% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP.* 0.9504 -6.77% N.A. N.A. 6.73% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC.* 0.8723 N.A. N.A. N.A. 6.29% FIRST METRO SAVE AND LEARN EQUITY FUND,INC.* 5.5454 -10.54% 6.11% 2.63% 5.2% MBG EQUITY INVESTMENT FUND, INC. * 122.87 3.4% N.A. N.A. 5.5% ONE WEALTHY NATION FUND, INC.* 0.8872 -13.84% -3.16% N.A. 6.58% PAMI EQUITY INDEX FUND, INC.* 52.5502 -10.88% 8.4% N.A. 6.8% PHILAM STRATEGIC GROWTH FUND, INC.* 545.74 -11.19% 6.36% 2.6% 6.02% PHILEQUITY DIVIDEND YIELD FUND, INC.* 1.3192 -9.11% 7.57% N.A. 5.2% PHILEQUITY FUND, INC.* 38.8259 -9.31% 8.95% 5.23% 5.99% PHILEQUITY MSCI PHILIPPINE INDEX FUND, INC.* **** 1.0466 N.A. N.A. N.A. N.A. PHILEQUITY PSE INDEX FUND INC.* 5.3044 -10.98% 9.34% 5.25% 6.97% PHILIPPINE STOCK INDEX FUND CORP.* 886.11 -10.78% 9.34% 5.28% 6.95% SOLDIVO STRATEGIC GROWTH FUND, INC. * 0.9073 -9.86% 5.78% N.A. 5.35% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC.* 4.292 -10.57% 8.69% 3.78% 5.74% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC.* 1.0202 -11.09% 9.07% N.A. 6.91% UNITED FUND, INC.* 3.6835 -7.58% 10.51% 4.16% 5.21% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC.* ***^ 118.4764 -10.45% 10.53% 6.37% 6.98% ATRAM ASIAPLUS EQUITY FUND, INC.** $0.9536 -19.54% 7.08% 0.02% 2.64% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC.* $1.1826 -11.2% N.A. N.A. 7.01% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC.* 1.7282 -10.2% 2.09% -0.34% 4.66% ATRAM PHILIPPINE BALANCED FUND, INC.* 2.2959 -8.8% 5.11% 1.56% 3.92% FIRST METRO SAVE AND LEARN BALANCED FUND INC.* 2.6429 -6.26% 2.75% -0.56% 3.9% GREPALIFE BALANCED FUND CORPORATION* 1.3598 -9.27% N.A. N.A. 4.26% NCM MUTUAL FUND OF THE PHILS., INC* 1.9082 -6.7% 4.26% 2.31% 3.53% PAMI HORIZON FUND, INC.* 3.6204 -10.34% 2.78% 1.24% 2.58% PHILAM FUND, INC.* 16.4101 -9.06% 3.06% 1.33% 3.16% SOLIDARITAS FUND, INC.* 2.1515 -6.64% 4.46% 3.38% 3.82% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC.* 3.8072 -7.87% 4.53% 2.3% 4.27% SUN LIFE PROSPERITY DYNAMIC FUND, INC.* 0.9633 -8.17% 4.01% N.A. 4.51% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC.* $0.03543 -1.56% 0.03% 1.72% 0.51% PAMI ASIA BALANCED FUND, INC.* $0.95 -13.01% 5.34% -0.87% 1.47% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC.* $3.4759 -8.19% 6.29% 1.47% 5.06% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC.* $1.0414 -8.34% N.A. N.A. 3.11% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC.* 344.49 2.07% 2.17% 2.06% 0.32% ATRAM CORPORATE BOND FUND, INC.* ^^ 1.8587 -1.65% -0.49% -0.37% -0.03% COCOLIFE FIXED INCOME FUND, INC.* 2.9808 5.44% 5.39% 5.27% 0.34% EKKLESIA MUTUAL FUND INC.* 2.1414 1.42% 1.7% 1.79% 0.51% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC.* 2.2232 0.14% 0.34% 0.53% 0.63% GREPALIFE FIXED INCOME FUND CORP.* P 1.5884 -1.72% 0.02% 0.3% 1.53% PHILAM BOND FUND, INC.* 3.8792 -4.12% -0.69% 0.12% -1.04% PHILEQUITY PESO BOND FUND, INC.* 3.5623 1.91% 1.13% 1.01% 1.29% SOLDIVO BOND FUND, INC. * 0.909 -1.38% 0.01% N.A. 1.84% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC.* 2.8123 0.85% 1.76% 1.41% 1.68% SUN LIFE PROSPERITY GS FUND, INC.* 1.5647 0.51% 1.38% 0.98% 1.61% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. * $449.62 0.93% 2.3% 3.07% 0.3% ALFM EURO BOND FUND, INC. * Є213.25 -0.28% 1.2% 1.57% 0.28% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC.** $1.1356 0.48% 1.15% 2.05% 0.87% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC.* $0.0249 -0.4% 0.82% N.A. 0.4% GREPALIFE DOLLAR BOND FUND CORP.* $1.6927 -4.14% -0.56% 1.07% 0.15% 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* $1.0386 -2.41% -0.66% -2.28% 0.1% PHILAM DOLLAR BOND FUND, INC.* $2.1943 -1.91% 1.02% 2.81% 1.06% PHILEQUITY DOLLAR INCOME FUND INC.* $0.0571247 0.15% 0.94% 1.83% 0.25% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC.* $2.8949 -3.58% 0.39% 1.8% 0.79% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC.* 121.34 3.02% 1.98% 1.64% 0.41% PHILAM MANAGED INCOME FUND, INC.* 1.1821 1.94% 0.76% 0.53% 0.02% SUN LIFE PROSPERITY MONEY MARKET FUND, INC.* 1.222 2.76% 2.31% 1.66% 0.25% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC.* $1.0175 1.84% N.A. N.A. 0.16% * - 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

Banking&Finance BusinessMirror

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ADB back in dollar bond market to raise $3.5 billion

By Cai U. Ordinario @caiordinario

N order to boost its ordinary capital resources, the Asian Development Bank (ADB) returned to the US dollar bond market to raise $3.5 billion from a five-year global benchmark bond. This is the Manila-based multilateral development bank’s first issuance in 2019 and is in line with its plans to raise $23 billion from the capital markets this year.

The bond has a coupon rate of 2.625 percent per annum payable semi-annually and a maturity date of January 30, 2024. It was priced at 99.498 percent to yield

14.9 basis points over the 2.625 percent US Treasury notes due December 2023. “The transaction was our first global benchmark outing of the year and the timing pleased our investor base,” said ADB Treasurer Pierre Van Peteghem. “We watched as the first wave of sovereigns, supranationals, and agencies supply was well absorbed by the market and secondary marks tightened steadily reflecting solid performance. The ADB’s decision to go out was duly rewarded with a strong order book that held together at the tightest pricing for a USD five-year global benchmark bond so far in 2019.” With over 80 investors taking part, the issue achieved wide primary market distribution with 44 percent of the bonds placed in Asia; 41 percent in Europe, Middle East, and Africa; and

Can associations be ‘disrupted’?

T depends, is one answer to the title above. I participated in an online forum recently with four other association executives from the United States and Canada, organized by AssociationSucsess.org, a North American internetbased publication and community of association professionals. It was an hour-long e-session in different time zones facilitated by Lowell Aplebaum, CEO and Strategy catalyst at Vista Cova in Washington, D.C., and the general topic was on challenges and opportunities for associations. Aside from Lowell and myself, the three other participants were Keith Segundo, president/CEO of Limitless Association Solution Resource, a Littleton, Colorado-based association management company with focus on credentialing; Renee Lewis, prog ram manager at t he Counci l of Engineering and Scientific Society Executives in Farmington Hills, Michigan; and Arianna Rehak, director at AssociationSuccess.org in Montreal, Canada. The e-meeting started with brief introductions of the participants and then quickly moved on to the topic at hand. Interestingly, the challenges discussed, such as disruptive technologies and emerging new membership models, as well as competition from nonassociation providers of associationrelated topics and learning programs, tur ned into oppor tunities rat her than threats. In fact, Keith made a statement that stuck in my mind to the effect that “associations are their own biggest threat.” His musing gave me three reflections based on my experience and knowledge of association management here in the country. First, this means that associations are not really threatened by disruption if they only stick to the notion of who they are and the purpose of their creation. By definition, an association is “an organization or group of individuals affiliated with one another who share a common purpose, interest, or mission and exist for the mutual enrichment and advancement of their membership.” By focusing on promoting and achieving their purpose and advocacy, I believe associations will continue to survive, be relevant and sustain themselves into the future. My second take on Keith’s statement is that associations of today may have emphasized too much on the “ business side of things,” i.e., generating revenue such as sale of conferences, training programs, pub-

Association World Octavio Peralta lications, etc., which is actually the aspect that faces disruption from new technologies and competitors. In short, associations can be disrupted from the fact that they provide products and services that can be delivered by others through many channels (print, online, in social media, etc.) but not necessarily on the advocacy and cause that they adopt and support. Third, associations are a threat to themselves only if they do not adapt to the current imperative on staying agile in terms of upgrading the skills of their board and management, of using technology as a tool to achieve their mission, and of innovating their services to their members. After all, associations exist because of their members. On the opportunity side, the Asian association landscape is changing fast, and catching up steadily with the West which for years has well-structured and fully developed association management and governance practices. Associations in Asia are also converging and there now exists the Asia-Pacific Federation of Association Organizations (Apfao) which consists of national “associations of associations” in Australia, Korea, and the Philippines, with Malaysia, China and Japan next on the line—spawning opportunities for education, credentialing, information exchange, and regional networking and partnerships. The contributor, Octavio “Bobby” Peralta, is concurrently the secretarygeneral of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), founder & CEO of the Philippine Council of Ass oc iat ion s and A s s oc iat ion Exec utives (PCA AE) and president of the AsiaPa c if i c Fe d e ra t io n of A s s o c i a t io n Organizations. The purpose of PC A A E—the “ass o c i a t i o n o f a s s o c i a t i o n s” — i s t o a d va n c e t h e a s s o c i a t i o n m a n a g e ment profession and to make associations well-governed and sustainable. PCA AE enjoys the support of ADFIA P, the Tourism Promotions Board, and the Philippine International Convention Center. Email: obp@adfiap.org

15 percent in the Americas. By investor ty pe, the A DB said around 54 percent of the bonds went to central banks and official institutions, 36 percent to banks, and 10 percent to fund managers and other types of investors. The transaction was lead-managed by Goldman Sachs International, J.P. Morgan, Mizuho Securities and RBC Capital Markets. A syndicate group was also formed consisting of Commerzbank, Danske Bank, Daiwa Capital Markets, Deutsche Bank and Wells Fargo Securities. T he A DB is comm it ted to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region.

Munti proclaimed ‘credit-free’ for settling ₧2-billion debt ahead of maturity

T’S official, Muntinlupa is now debt-free. As of January 2019, the local government unit (LGU) led by Mayor Jaime Fresnedi has been declared credit-free by its lenders—Development Bank of the Philippines and Land Bank of the Philippines. This came following the LGU’s full payment of a P2-billion loan contract between Fresnedi’s predecessor and the two lending institutions several years ago. Muntinlupa had a total of P1,012,034,593 in loans plus P175,188,499.72 in interest. Settlement for the aggregate amount is due until September 2021. Other unpaid obligations to complete the P2-billion debts include garbage services, gasoline suppliers and terminal fees. According to Muntinlupa Public Information Officer Tez Navarro, the LGU started to settle all its debts from 2013 until its completion just this month—two years prior to their maturity. She attributed this to Fresnedi’s initiative to set aside annual funds for the loans and efficient utilization of the city’s resources to settle all balances. Navarro noted that his effort was done without compromising the delivery of more inclusive and expansive services to the constituents. While the city government paid debts yearly, it continued to provide educational assistance to local students. From piloting a scholarship program to college students, the Muntinlupa Scholarship Program offered a more comprehensive bracketing that spans across all levels, including those taking up masters and doctoral degree, medicine and law. Currently, MSP caters to almost 60,000 local scholars. The LGU, likewise, strengthened its program for budding entrepreneurs by providing zerointerest loan assistance or the JRFP Financing Program-Tulong Negosyo. This project now serves more than 6,500 small-scale entrepreneurs, with credit assistance from P3,000 up to P150,000. Roderick L. Abad

Friday, January 25, 2019

Individually paying SSS members told to update contact information

HE Social Security System (SSS) is urging its individually paying members to update their contact information with the state-run pension fund to be able to receive their Payment Reference Number (PRN) via text message, which is required in line with the Real-Time Processing of Contributions (RTPC) program. The SSS issued a statement on Thursday, urging its self-employed, voluntary members, nonworking spouses, and overseas Filipino workers (OFWs), to provide and update their contact information to receive their PRN via text message. The RTPC program, which calls for the generation of a PRN before paying, instantly validates, transmits and acknowledges contribution payments of the member to their respective records in the SSS. SSS President and CEO Emmanuel F. Dooc said that having a PRN also helps the SSS member avoid delays in the processing of their benefit claims, among others. “We strongly urge our members who are not yet registered in the My.SSS facility so they could generate their PRN online, to provide

SSS their contact information for the issuance of PRNs via SMS. This way, they will be able to pay their monthly contributions and avoid delays in the processing of their benefit claims and other services,” Dooc said. To update their respective contact information, paying members may go to an SSS branch near them, register through a PRN inquiry facility of collection partners of the pension fund, visit the My.SSS web site, or apply through the SSS’s mobile application. There are 83,606 pensioners, 124,583 OFWs, 563,219 voluntary members, 7,005 household helpers, 4.13 million employed members, 225,057 self-employed, and 7,141 non-working spouses who are registered in the SSS web site and with registered e-mail addresses. Earlier, the SSS allowed members to pay their contributions without PRN, in line with addressing the clamor of members who have difficulty accessing the Internet. But it was pointed out that the method was only limited to those who have not yet received any PRN before. Rea Cu

Friday, January 25, 2019 • Editor: Dennis D. Estopace

Regions BusinessMirror

Davao City forecasts tourist arrivals this year to hit 2.8M By Manuel T. Cayon

@awimailbox Mindanao Bureau Chief

AVAO CITY—Upbeat that upcoming events would increase interest in the city, local officials revised target tourist arrivals for this year. The city information office on Tuesday said city tourism chief, Regina Rose Tecson, has raised the target to 2.8 million, expecting a big influx of local and foreign tourists “to the series of big events that had been lined up this year.” The tourism office initially set a

target of 2.5 million arrivals for 2019 shortly after it announced that 2.39 million visited this city last year. Tecson believes events that can create some pull include the Davao Regional Athletic Association meet on January 27 to February 2, the Ironman 70.3 triathlon on March 24,

and the Palarong Pambansa in April. She also expects the Araw ng Dabaw to generate interest from outsiders. The opening of new international routes connecting Davao City to different parts of the world, such as Xiamen, China and Hong Kong is also seen as facilitating the influx of a higher number of tourists. Last year, Cathay Dragon launched its Davao-Hong Kong flight on October 28, while Xiamen Air mounted the Davao-Quanzhou flight on December 18. Tecson noted the help that the city received from locals in terms of packaging the locale “as an enjoyable place to tour around and a safe place to stay.” “People have already witnessed that it is safe here; that is why people are coming back,” she said.

“Also, Dabawenyos posting good about Davao help a lot in promoting the city.” Last year, US nationals were the most frequent visitors here, at 21,324 visitors, followed by the Japanese with 12,800. The Chinese came third with 10,827. The rest were Koreans (8,936), Australians (7,117), Indians (6,509), Canadians (5,392), Singaporeans (4,985), British (4,287), United Arab Emirates nationals (2,703), Malaysians (2,449), Germans (2,398), Thais (2,338), Saudi Arabians (2,242), and Taiwanese (1,868). Tourist arrivals last year was higher by 18.92 percent compared to the previous year’s 2 million visitors. Tecson said domestic visitors comprised 89 percent of total arrivals.

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Negros Occidental to obtain DOF loan for employee housing

ACOLOD CITY—The Negros Occidental provincial government is seeking a loan from the Municipal Development Fund Office (MDFO) of the Department of Finance (DOF) to develop a housing subproject for its employees. The Provincial Board granted authority to Gov. Alfredo G. Marañon Jr. on Wednesday to negotiate for the loan, according to Second District board member Salvador Escalante Jr. The total project amount will be determined after the completion of the detailed engineering and development plan, he added. The housing project, which will rise on a 40-hectare property in Barangay Mansilingan, Bacolod City, will have 400 to 500 lots. Escalante, chairman of the committee on appropriation, budget and finance, said the provincial government will implement the project on its own instead of partnering with

a developer through a joint venture. “[This way,] we can make sure the project cost will be reasonable,” he said. Escalante explained the development will include roads and parking spaces, among others. Also on Wednesday, the Provincial Board approved a P50-million supplemental budget mainly intended for local government units (LGUs). Of the total amount, P48 million was allocated as aid for LGUs; the rest for the repair of a portion of the session hall. Escalante said the source of fund is the P50-million allocation previously intended for the purchase of an aircraft for monitoring and cloudseeding operations. “The initial plan did not push through so the fund was realigned for the aid requests of various cities and municipalities,” the board member said. PNA

General Santos City exceeds target for renewal of business permits by 1,500

ENER AL SANTOS CITY— The city government processed some 9,104 business permits during the annual renewal and registration of new businesses this month, surpassing its target for the period. Geraldine Zamora, head of the Business Permits and Licensing Division

(BPLD), said on Thursday the figure was about 1,500 more than the total business permits processed and approved by the local government during the nearly three-week activity. The City Treasurer’s Office and BPLD had targeted to process 7,000 to 8,000 business permits during the renewal and registration

period this year. “So far, so good. We did not only achieve our target but we even surpassed it,” she said in an interview. Zamora said they released a total of 8,625 business permits, comprising mostly of micro, small and medium enterprises (MSMEs), as of January 20.

She said the remaining 479 have made the cutoff and paid the corresponding fees but need to submit some required documents. Zamora attributed their accomplishment to the expanding economic activities in the city in the past several years. She said the city’s business and

investment scene remains vibrant as shown by the increasing number of commercial building projects and newly opened businesses. “It showed that our information campaigns have been very effective and more business owners are now aware that we are serious with our crackdown against unregistered

businesses,” she said. The city government seeks to generate at least P70 million during the renewal and registration period. Businesses are still allowed to process their permits after the January 20 deadline but will incur corresponding penalties and surcharges. PNA

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

Editor: Jennifer A. Ng • Friday, January 25, 2019

Govt sees slight hike in Q1 paddy output

NMILLED rice production in the first quarter will post a minimal increase despite a contraction in harvest area, according to the latest data released by the Philippine Statistics Authority (PSA). In the January 2019 round of its survey titled, “Rice and Corn Situation Outlook,” the PSA said rice output in the January-to-March period would settle at 4.645 million metric tons, 0.49 percent higher than the 4.623 MMT recorded a year ago. The projection was based on standing crop. The projected rice harvest from irrigated areas would expand by 1 percent to 3.618 MMT, from 3.582 MMT, according to the PSA data. Production from rainfed areas, however, could decline by 1.29 percent to 1.028 MMT, from last year’s 1.041 MMT. The PSA said harvest area in the first quarter would contract by 3.13 percent to 1.157 million hectares, from 1.195 hectares recorded in the same period last year. The contraction in harvest area

would be offset by the expected increase in yield, which would rise by 3.73 percent to 4.01 metric tons, from 3.87 MT in the first quarter of 2018. The PSA said production in 2018 fell by 1.1 percent to 19.07 MMT, from 19.276 MMT recorded in 2017. “Similarly, harvested area and yield were lesser by 0.2 percent and 0.9 percent than their respective levels in the previous year.” In the fourth quarter alone, the PSA said palay production last year fell by 2.2 percent to 7.16 MMT, from 7.32 MMT in 2017. “Harvest area contracted by 16,000 hectares from the previous year’s level of 1.864 million hectares. Yield per hectare dropped from 3.93 MT in 2017 to 3.87 MT in 2018,” the PSA report read.

MANY rice farmers in the Philippines continue to dry their grains along the road. Rice, a staple food of Filipinos, is grown in almost all regions of the country. The Philippine Statistics Authority said the Philippines produced 19.07 million metric tons of unmilled rice in 2018. LAILA D. AUSTRIA

The PSA noted “substantial” declines in the output of Cagayan Valley and Ilocos Region. Also, the reduction in harvest area was largest in the Autonomous Region in Muslim Mindanao (ARMM), followed by Ilocos region, Bicol region and Calabarzon. The production of corn, which is also an important staple for Fili-

‘Rice tariff bill will expose govt to serious social, political risks’

HE Federation of Free Farmers (FFF) urged President Duterte to veto the rice tariffication bill, as the current version of the measure could expose the government to “serious” social and political risks. Raul Q. Montemayor, national business manager of the FFF, also said the tariffication bill should focus only on the removal of volume restrictions on rice imports. “The economic thinkers are saying that a free market will ensure that rice prices will go down even within NFA [National Food Authority]. They could be correct, but what if they are wrong? What if importers collude to bring up prices? What if they refuse to import because prices are too high?” Montemayor said in a statement. “What if palay prices suddenly go down because of excessive imports? [Will] the government will be practically powerless in all these scenarios under the proposed bill?” he added. The group said the current bill should not have included provisions that changed the role of the NFA, as the pressing issue was the Philippines’s commitment to the World Trade Organization (WTO) to convert the quantitative restriction into tariffs. “The issue of what happens to the NFA and the role of the government in rice trade must be addressed separately and only after a comprehensive study and following genuine consultations with stakeholders,” Montemayor said. The FFF also asked Congress to correct specific provisions that will “severely tie the hands” of the government in addressing rice spikes and other emergencies in the future. According to the group, the tariffication bill will remove practically all restrictions on rice imports and will allow any importer to bring in unlimited volumes of rice from abroad, even during harvest. Under the bill, importers would only need to secure a food safety certificate from the Bureau of Plant Industry (BPI). “This is in contrast to the present system wherein the NFA Council limits the volume of importers based on the estimated gap be-

tween supply and domestic consumption,” the FFF said. “Even NFA’s power to import rice, if there is a domestic shortage will be removed, since the agency will only be allowed to buy from local farmers for its buffer stocks. The buffer stocks can be released only during calamities and emergencies,” it added. The current version of the bill, the group said, would remove the power of the NFA to monitor rice traders and apprehend unscrupulous ones as the agency’s power to issue licenses will be eliminated.

Inflation-buster

HOUSE Deputy Speaker Sharon S. Garin of Aambis-OWA Party-list called on the Palace to expedite the enactment of the bill, as this will help mitigate the adverse effects of inflation. The measure amending the Agricultural Tariffication Act of 1996 is now awaiting the President’s signature and it will automatically lapse into law after 30 days if it is not signed. The bill was submitted by the 17th Congress to the Palace on January 15. As a principal author of the House version, Garin said the measure strikes a balance in protecting the interest of the poor and marginalized, as well as the interest of the local farmers. “While it’s true that the current system is providing ample protection to domestic rice farmers, it also keeps the price of rice artificially high due to the limited supply,” she said. Senate Bill 1998 and House Bill 7735, also known as “Act Replacing the Quantitative Import Restrictions on Rice with Tariffs, Lifting the Quantitative Export Restrictions,” seeks to amend the Agricultural Tariffication Act of 1996 and allow the unimpeded importation of rice. The bill also seeks to establish a Rice Competitiveness Enhancement Fund which is set to have a P10 billion appropriation annually for six years. The RCEF will be used to provide different forms of assistance to farmers, including inbred rice seeds, development of rice farm equipment and skills enhancement. Jovee Marie N. Dela Cruz

PHL races to conserve ‘galunggong’

HE government, fishermen, and other stakeholders in the fisheries subsector are now working on a management plan that will prevent the decimation of round scad, or galunggong. Citing data from the Philippine Statistics Authority (PSA), the Bureau of Fisheries and Aquatic Resources (BFAR) said there was a consistent drop in galunggong production in the country’s landing centers and ports from 2007 to 2017. The future of galunggong stocks in Philippine waters was highlighted during the First National Galunggong Summit held at the PICC Forum in Pasay City. To counter and prevent galunggong stocks from further deterioration, the BFAR enacted conservation measures through the establishment of closed seasons for galunggong and small pelagics in Northeastern Palawan from November 1 to January 31, and in Davao Gulf from June 1 to August 31 every year. As of December, the attached agency of the

Department of Agriculture said there are 24 major fishing areas of galunggong around the country with Palawan as one of the top suppliers. The BFAR said the National Management Plan for Galunggong will help address the challenges that continuously beset the sector. The two-day summit, which started on Thursday, gathers major members of the galunggong supply chain—fishermen, local government units, national government agencies, nongovernment organizations and the scientific community—to generate inputs for the creation of a national management plan for galunggong. “Galunggong, one of the country’s economically important fish species, is an enabler of the Philippine fisheries sector. The industry alone generates livelihood and income to thousands of fishermen and a source of affordable fish protein for millions of Filipinos,” it said. Jovee Marie N. Dela Cruz

pinos, could expand by nearly 3 percent to 2.551 MMT, from 2.477 MMT, according to the PSA data. The projection was also based on standing crop. The PSA projected that white corn output could decline by 2.38 percent to 468,000 MT, from last year’s 479,000 MT. Yellow corn output is expected to expand by 4.28

percent to 2.083 MMT, from 1.997 MMT in the first quarter of 2018. The decline in white corn production would be caused by the contraction in harvest area, which could settle at 245,000 hectares from 263,000 hectares a year ago. Harvest area for yellow corn, however, may expand by 1.23 percent to 465,000 hectares, from

459,000 hectares. Total harvest area for corn could shrink by 1.8 percent to 709,000 hectares, from 722,000 hectares. Corn production in 2018 settled at 7.77 MMT, 1.8 percent lower than the 7.92 MMT recorded in 2017. Harvest area and yield declined to 2.51 million hectares and 3.09 MT per hectare, respectively, from yearago levels. In the fourth quarter alone, corn production reached 1.81 MMT, 10.8 percent higher than the 2017 level of 1.63 MMT. The PSA said harvest area during the period expanded to 612,000 hectares from the previous year’s record of 571,000 hectares. Yield per hectare improved by 3.5 percent to 2.95 MT, from last year’s 2.85 MT. “Cagayan Valley contributed the significant increment in production at 163,000 MT. It was followed by Cordillera Administrative Region, ARMM and Caraga with a combined increment of 42,000 MT,” the report read. The PSA said the positive growth for these regions, except ARMM, can be attributed mostly to the increases in harvest areas. Also, yield in Caraga and ARMM were up from the 2017 level.

B6 Friday, January 25, 2019

CELEBRATE CHINESE NEW YEAR AT WIDUS HOTEL AND CASINO CLARK

ELCOME the year of the yellow earth pig with an auspicious delight, as Widus

Hotel and Casino rolls out exciting promos and a gastronomic pleasure to usher in the most important holiday on the Chinese lunar calendar. Ta k e t he w ho l e family and kick s t a r t t h e j u b i l a nt ce lebr at ion w it h a long-standing Chinese tradition of dragon and lion dance per for mance, coin tossing and lighting of firecrackers at the W idu s g ra nd lobby entrance. Enjoy a splendid feasts of var ious

gour met dishes to br ing in good fortune, luck and prosperity to the festivity, as Widus’s seasoned culinary team dishes up a special lunch and dinner buffet menu at Salt Resto for only P999 net per person. Make the occasion truly u n f o r g e t t a b l e a n d c r e at e m o r e memories with your loved ones by booking a relaxing staycation with rates starting at only P6,400. Promotional package is inclusive of breakfast buffet and festive lunch buffet for two at Salt Resto, complimentary welcome drinks, free use of gym amenities, and swimming pool plus unlimited Wi-fi access. For inquiries and reservations, visit www.widus.com today.

A LUSH OF LOVE

Hearts flutter with joy this season of love, and Hotel Celeste definitely adds up to your romantic fever with its Valentine’s Day room package! Celebrate #CelestialLove with an overnight deluxe accommodation, a welcome drink and foot and leg massage, breakfast, four-course dinner for two, thirty-percent discount per bottle of wine and complimentary Wi-fi access, and share a lush of Cupid’s bow to your friends and loved ones from February 10 to 17. Booking period runs from January 15 to February 16. For reservations and inquiries, e-mail at info@hotelceleste.ph.

BPI WINS BIG AT FACEBOOK SOLUTIONS AWARDS 2018

ANJO WORLD FINALLY OPENS ITS GATES

NJO World, Cebu’s most anticipated theme park, opened its gates to the public last December 22 at Belmont One, Calajoan, Minglanilla, Cebu. Set to open in the first quarter of 2019 are the iconic and gravity-defying spinning roller coaster, 200-foot ferris wheel, boomerang, hip hop and bumper boats. From thrilling rides, such as a 25-meter drop

tower, boomerang (frisbee), hip hop (go-go bouncer), space shuttle and the Viking, to family and kiddie rides, such as Mr. Cup (teacups), Mr. Toad (jumping frog), London taxi (bumper cars) and the golden carousel, Anjo World will most definitely be the perfect place to be with family, friends and loved ones. Located within the Belmont One commercial complex, it features different themed continental zones all in one setting. Guests can talk a walk around

the busy streets of Europe, be dazzled in the colorful streets of Asia, embark on an American escapade or go on a jungle adventure in Africa. Anjo World showcases various rides and attractions that are imported from accredited manufacturers abroad, which are members of the International Association of Amusement Parks and Attractions, with ample parking spaces ready for 200-plus vehicles.

ANK of the Philippine Islands (BPI) bagged the Optimal Creative Champion award, one of three major awards, at the recent annual Facebook Solutions Awards. The bank’s win as Optimal Creative Champion demonstrates best-in-class execution of creative materials used for Facebook advertising in the Philippines, beating all other advertisers in the Financial Services category. BPI was commended for its best practice in Facebook advertising that optimizes mobile viewing, and delivers outstanding media and business results. “This is a great validation from Facebook that we are

taking the right steps in building our digital-marketing capabilities. We are inspired to continue to strive for excellence in the work that we deliver for our clients,” said Bunny Aguilar, head of BPI Institutional Brand Management and Digital. Aimed at recognizing the great partnership between Facebook, clients and their agencies, the Facebook Solutions Awards is an annual gathering of the Philippines’s top brands across various industry verticals. In photo are (from left) Winston Almendras, head of BPI Digital, Media and A&P; Tere Ibanez, head of BPI Institutional Branding and Creative Services; and Jan Montifalcon, head of BPI Digital and Social Media.

IT’S YOUR TIME TO #REIGNWITHPOWER

HILE some have managed to develop their own go-to makeup routines, there are still few women who are hesitant to step out of their comfort zones. Just in time for the new year, Australian cosmetics brand BYS teams up with none other than “Asia’s Songbird” Regine Velasquez for its Reign campaign—a bold call to “Be Your Own Expert” when it comes to your beauty look. A true do-it-yourself glam queen in every sense of the word, Regine’s confidence, playfulness and handson approach resonates perfectly with the spirit of BYS’ Reign campaign. You, too, can #ReignWithPower and Be Your Own Expert with these steps using BYS’s wide array of premium, affordable and easy-to-use makeup collections. Crème foundation. Formulated with jojoba oil to soften, hydrate and even out the complexion, this cream foundation allows for buildable coverage that sets to a luminous satin finish. The compact foundation comes with a sponge applicator for a convenient touchup. Peach 2 eyeshadow palette. Boasting of a highly pigmented powder formula with a rich color

payoff, the top row of this 12-piece palette features intense metallic shadows and stunning mattes on its bottom row, all of which promise longwearing, trueto-color pigment that’s formulated with Mica for a silky, smooth finish. 48 eyeshadow palette. Perfect for those who are just starting to explore makeup, the 48 eyeshadow palette features a staggering array of amazing hues with intense pigments. Liquid liner and Kohl pencil duo. Achieving a defined eye line with Kohl pencil duo definitely gives you an edge, having the best of both worlds. Contour trio. The BYS contour trio is ideal for a range of skin tones and face shape. With its lightweight powder formula, which blends seamlessly and enhances the skin tone, guarantees a fresh and flawless look with minimal effort. Miraculous lash mascara. Infused with Vitamin E to help replenish dry and brittle lashes and Vitamin B5 to strengthen strands, this mascara also features a custom-curved brush that ensures each lash is perfectly defined. What’s more is that the silicone bristles of the mascara, and extra dark and waterproof pigment all work to add volume and length for that glorious, yet natural, lash glamor! Velvet Lips. Another standout product from BYS’s extensive collections is the BYS Velvet Lips. This velvety liquid lipstick will instantly give you smooth matte lips for the rest of the day without making your lips feel tight or dry. Plus, it comes with a precision applicator that effortlessly coats lips with one simple swipe. BYS highlight contour stick. Get that stunning and illuminated look without the need for a spotlight with BYS highlight contour stick. With its crayon-like packaging and soft creamy formula that glides on smoothly, this highlighting contour stick will give you maximum control for precise application and easy blending, whether applied to the cheekbones, jawline and other key highlight points. BYS is solely distributed in the Philippines by IFace Inc. and is exclusively available at Watsons and SM Beauty Stores nationwide.

Sports BusinessMirror

| Friday, January 25, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

OSAKA IN FINAL DOWN UNDER

FASHION editor Anna Wintour is an avid tennis fan who has been at Melbourne Park this week. AP

‘Vogue’ editor joins push to rename Court Arena

AT 21, Naomi Osaka’s (right) suddenly on the verge of a second consecutive major championship after showing Karolina Pliskova to the door. AP

By Howard Fendrich

The Associated Press

ELBOURNE, Australia— Naomi Osaka never made it past the fourth round at any of the first 10 Grand Slam tournaments of her career. Now, still just 21, she’s suddenly on the verge of a second consecutive major championship. And the No. 1 ranking, too. Osaka moved one victory away from adding the Australian Open trophy to the one she collected fourand-a-half months ago at the US Open, using her smooth power to produce 15 aces and groundstroke winners at will while beating Karolina Pliskova of the Czech Republic, 6-2, 4-6, 6-4, in the semifinals on Thursday. “I just told myself to regroup in the third set and just try as hard as I can,” said Osaka, who saved four break points in the last set and finished the match with an ace at 115 mile per hour (185 kilometer per hour). A day after erasing four match points and a 5-1 deficit in the third set to stun Serena Williams in the quarterfinals, Pliskova could not produce the same kind of comeback. Instead it is Osaka, the only Japanese woman to win a major singles title, who will face two-time Wimbledon champion Petra Kvitova on Saturday. The winner will rise to the top of the Women’s Tennis Association rankings for the first time; Osaka is currently No. 4, and Kvitova is No. 6.

Two years ago, Kvitova missed the Australian Open, just weeks after her left hand was stabbed by an intruder at her home in the Czech Republic. Back at her best during what she calls her “second career,” Kvitova surged to a 7-6 (2), 6-0 victory against 35thranked American Danielle Collins after Rod Laver Arena’s retractable roof was closed as the temperature soared toward 105 degrees Fahrenheit (40 degrees Celsius). Kvitova reached her first major final since the December 2016 knife attack that led to hours of surgery on the hand she

holds her racket with—and first since winning Wimbledon for the second time in 2014. “I didn’t know even if I [was] going to play tennis again,” Kvitova said. “It’s been a long journey.” Against Collins, a two-time National Collegiate Athletic Association champion at the University of Virginia who was 0-5 at Slams until this one, Kvitova was more aggressive throughout, mixing big lefty forehands and well-timed pushes forward to the tune of a 30-9 edge in total winners. But the key to the outcome might very well have been what happened at 4-all after 35 minutes of action: That’s when the decision finally was made to close the 15,000seat stadium’s cover, drawing cheers of approval from broiling spectators. Kvitova probably wanted to applaud, too. “I was happier than the fans that the roof closed,” she said afterward. “I like to play indoors. It helped me a little bit.” She’s made clear over the years she is not a huge fan of playing in stifling heat. Not too many people truly are, of course, but Collins is OK with it and thought the roof should have stayed open. “I grew up in Florida and am used to it being really hot all the time. So I kind of embrace that very well,” Collins said. “Indoor tennis is a different game. Certainly had its effect.”

When play resumed after a five-minute delay, it went from being completely even to tilted in Kvitova’s favor. She dominated the tiebreaker and the second set to stretch her winning streak to 11 matches. Osaka, meanwhile, extended her Slam run to 13 matches while putting a stop to Pliskova’s 10-0 start to the season. And Osaka did it by accumulating a 56-20 advantage in winners—and by hanging tough when it all could have slipped away. She began the day having won 58 matches in a row after taking the first set, but that seemed in danger when Pliskova broke to end the second and had three break points to go up 2-0 in the third. But Osaka steeled herself there, erasing the first break chance with a huge forehand, the second with a down-theline backhand winner. On the third, another terrific backhand forced a forehand error into the net by Pliskova, who cracked her racket against the blue court. When Pliskova netted a return of an 83mph (133-kph) second serve to make it 1-all, Osaka tugged at the brim of her pink visor and let out a big exhale. The match would continue for another 28 minutes, but it basically was done, then and there. That stretch began a ninepoint, three-game run for Osaka, and she was on her way. She would face one last break point at 4-3, but saved it with a 108-mph (174-kph) ace.

ELBOURNE, Australia—Vogue editor Anna Wintour has added her voice to those calling for the renaming of Margaret Court Arena at the Australian Open because of the tennis great’s outspoken condemnation of same-sex marriage. Wintour is an avid tennis fan who has been at Melbourne Park this week and spent time in the stadium player boxes of Serena Williams and Roger Federer. She used a speech at an Australian Open function on Thursday to raise the issue. “I find that it is inconsistent with the sport for Margaret Court’s name to be on a stadium that does so much to bring all people together across their differences,” Wintour was quoted as saying by Melbourne’s The Age newspaper. “This much I think is clear to anyone who understands the spirit and the joy of the game. Intolerance has no place in tennis.” Tennis greats Billie Jean King and Martina Navratilova have criticized Court’s statements during previous visits to Melbourne Park, and recommended Tennis Australia officials rename the arena. Wintour said Court, who won a record 24

Grand Slam singles titles, was a “champion on the court” but that the arena—the No. 2 show court at the season’s first major—should be “meeting point of players of all nations, preferences and backgrounds” and “should celebrate somebody who was a champion off the court as well.” Now a Christian pastor in Western Australia state, the 76-year-old Court caused controversy in 2017 by saying the devil was to blame for young people questioning their sexuality and wrote a public letter urging Australians to vote against gay marriage “for the sake of Australia, our children and our children’s children.” Same-sex marriage has been legalized in Australia. Court has been a regular visitor to the Australian Open but didn’t attend last year’s tournament. In 2018 marriage equality proponents draped themselves in rainbow flags at Margaret Court Arena on the first day of the tournament to protest Court’s controversial views. The main show court at Melbourne Park is Rod Laver Arena, named after the only player to twice win a calendar-year Grand Slam. AP

NISSIN TAKES DOWN AD

A SPOKESMAN for Nissin Foods Holdings says that two animation clips, which went up earlier this month, are deleted from the company’s online site on Wednesday.

OKYO—One of Japanese tennis star Naomi Osaka’s main sponsors has taken down an online ad campaign that depicts her with pale skin after it was criticized as insensitive. Daisuke Okabayashi, a spokesman for Japanese noodle-maker Nissin Foods Holdings, said on Thursday that two animation clips, which went up earlier this month, were deleted from the company’s online site on Wednesday. “We as a company put human rights first, and our stance of valuing diversity is unchanged,” he said in a telephone interview. “Whitewashing has never been our intention.” The clips showed a light-skinned, doe-eyed woman in the trademark style of Japanese manga, or comics. Critics said the depiction does not reflect Osaka’s biracial background—Osaka has a Haitian father and Japanese mother. Okabayashi said the ads were approved by Osaka’s agent, but the company was later asked to take them down. He said the company continues to support Osaka and did not want the flap to be a distraction. Nissin became Osaka’s corporate sponsor in November 2016, joining a list of companies, such as Nissan Motor Co. and the watch brand Citizen, hoping to cash in on a level of stardom that’s rare among Japanese athletes. Osaka’s appeal has been growing in Japan since she beat Serena Williams in last year’s

US Open. She has been topping daily news coverage as she has advanced to the semifinals in ongoing Australian Open. This is not the first time Japan has been criticized for insensitivity to diversity issues, including race, nationality, gender and sexual orientation. Osaka’s visibility and natural charm are seen as contributions to Japan’s acceptance of racial and other differences. Baye McNeil, an American who has lived in Japan for more than a decade, said Japanese are often not aware of what may upset a global audience. His commentary in The Japan Times, a local English-language daily, was among the first to express outrage over the Nissin ad. “She looks totally like a white woman in the ad,” said McNeil, who writes and lectures about the problem of race in Japan. “It was very whitewashed.” Japanese companies need to take skin color seriously and become more inclusive if they hope to appeal to a global market, he added. “They are not thinking on that level,” McNeil said. “It may be painful, but Japan is going through growing pains right now.” Nissin’s ad was based on a manga and animation series called The Prince of Tennis, created by artist Takeshi Konomi. The ad showed characters from the work and also characters meant to depict Osaka and male Japanese tennis star Kei Nishikori, playing on a court. AP

Spo

Business

C2 Friday, January 25, 2019

OTTIE ARDINA finally turned in a round expected from a player of her caliber by shooting a four-under 67 in tough conditions for a twostroke lead over Thailand’s Punpaka Phuntumabamrung and Chonlada Chayanun in the second round of the International Container Terminal Services Inc. (ICTSI) Beverly Place Ladies Classic on Thursday in Mexico, Pampanga. Ardina rebounded from a one-over 72 start with a 32-35 card as the Ladies Professional Golf Association (LPGA) Tour-bound shotmaker found her range and rhythm on a day the erstwhile frontrunners struggled and faded with over-par cards at the short but tricky course made more daunting by its unreceptive greens. Ardina wasn’t spared of the ordeal, but the Canlubang ace made the most of her near-impeccable iron game to churn out the lone-under card and seize control at 139, two shots ahead of Phuntumabamrung and the come-backing Chayanun, who pooled identical 141s after a 71 and 72, respectively. “My irons were good, but I struggled with my putting. I missed at least five birdie chances inside seven feet and could’ve finished with a seven-under card,” said Ardina, who gunned down four birdies after 16 holes, then recovered from a three-putt mishap on the 17th with a closing birdie from 15 feet. “The greens are hard, and I had to adjust my approach shots,” said Ardina, whose sterling round proved more than enough to shove her to the lead and 18 holes away from snapping a long title spell on the ICTSIsponsored circuit she used to dominate ahead of her much-awaited stint in the LPGA Tour starting next month as a full-card holder. Chayanun, whose late charge netted her a 69 and a share of the first-round lead with compatriots Mookharin Ladgratok and Ornnicha Konsunthea on Wednesday, rallied against with three birdies in the last five holes in a big bounce-back from a four-over card. She salvaged a 37-35 card and tied Phuntumabamrung, who strung up nines of 34-37 at second. “I played really bad. Luckily, I was able

ARDINA MAKES MOVE

to recover at the back,” said the 26-year-old Chayanun, also due for a big win in the circuit organized by Pilipinas Golf Tournaments Inc. following a number of top 5 finishes. 2017 LPGT Order of Merit (OOM) winner Pauline del Rosario failed to get going for the second straight day, although her three-birdie, three-bogey effort got her past a number of rivals for solo hold of fourth place at 143, four shots behind. Princess Superal, the reigning OOM titlist, never recovered from a bogey-bogey misfortune from No. 3, dropping strokes on Nos. 11 and 17 against a lone birdie on the 10th to lay five strokes adrift at 144. Impressive with opening 69s, Konsunthea and Ladgratok spent the day trying to check their shaky games with the former bogeying the first hole and yielding two strokes on the next to drop off the leaderboard and the latter blowing it on a bogey-riddled backside stint. Konsunthea stumbled with another bogey on No. 13 but fought back with two birdies in the next three holes only to fade again with a double bogey finish for a 75, while Ladgratok made four bogeys in the last nine to drop to joint sixth at 145 with former top jungolfer Daniella Uy, who hobbled with a 73. Only 17 players advanced to the final round with Thais Nattapan Siritrai (76), Aunchisa Utama (77), Jaruporn P Na Ayutthaya (77) and Tiranan Yoopan (77) barely making the cut at 149.

THE Ladies Professional Golf Association Tour-bound Dottie Ardina finds her range and rhythm on Thursday. ROY DOMINGO

Perez-Bolick duel in Antipolo arena

CHAMP’S HOME Sen. Manny Pacquiao waves to his fans as he arrives from Los Angeles, California, on board Philippine Airlines flight PR113 at Ninoy Aquino International Airport Terminal 1 fresh from his successful defense of the World Boxing Association welterweight crown against American Adrien Broner on Sunday at the MGM Grand in Las Vegas, Nevada. NONIE REYES

VARGAS: WE’LL HOST BIGGEST GAMES EVER By Ramon Rafael Bonilla

HE Philippine Olympic Committee (POC) aims for the biggest edition of the Southeast Asian Games whose 30th edition will be hosted by the country from November 30 to VARGAS December 11 this year. POC President Ricky Vargas made the declaration during the POC General Assembly on Thursday at the Meralco Mini Theater, which was attended by 33 of 44 voting members. Vargas’s declaration came amid the “Unforgettable Games” goal set by the Philippine SEA Games Organizing Committee (Phisgoc) for the biennial multisport event the country is hosting for the fourth time after 1981, 1991 and 2005. But achieving the goal has encountered a temporary hump—Malacañang has yet to sign the General Appropriations Act for 2019, which remains hanging in Congress following accusations by lawmakers of insertions in the budget. A P7.5-billion budget has been appropriated for the Games that features 56 sports played in four hubs—Clark, Subic, Tagaytay City and San Juan, La Union. “Looking ahead, the coming Southeast Asian Games to be hosted by the country will showcase the renewed confidence and pride of our NSAs [national sports associations], which we had a glimpse of in the 2018 Asian Games,” Vargas said in his

report to the assembly. “This will be the biggest ever Southeast Asian Games in history. As hosts, we will be gracious. As competitors, we will be friendly, but, at the same time, ferocious for every medal at stake,”Vargas added. Vargas said he hopes the accomplishment in the Indonesia Asian Games—four gold, two silver and 15 bronze medals, a big leap from 1-3-11 record in Incheon 2014—would cascade to the SEA Games where the country is eyeing nothing less than topping the medal-tally board for a marked improvement for the fifth- and sixth-place finish by Filipino athletes in the last six editions of the Games. The Phisgoc, meanwhile, has been working on funds from private patrons as it awaits the approval of the national budget, according to POC Secretary-General Patrick Gregorio. The Philippine Sports Commission (PSC) has been tasked to disburse the funds to the Phisgoc as part of its mandate as a government agency. “When the money goes to the PSC, we will have the full responsibility,” PSC Chairman William Ramirez said. “ The POC vowed to keep a hands off policy on the budget to avoid getting embroiled in a similar corruption mess that struck its 2005 predecessor—the Philsoc or Philippine SEA Games Organizing Committee. “We will give the PSC what we need and let them purchase it for us,” Vargas said.

New sports complex up in Davao By Manuel T. Cayon Jenelieto Atillo, spokesman of the

Mindanao Bureau Chief

AVAO CITY—The city will showcase its newest sports complex during the Davao Regional Athletic Association (Davraa) meet that starts on Sunday. The meet will determine Davao region’s representatives to the Palarong Pambansa Davao City is hosting this summer. The new complex was carved out from the grounds of the Mindanao campus of the University of the Philippines—formerly the campus of the Mindanao State University. The facility replaces the city’s old and dilapidated sports center in the downtown area, which is no longer fit to hosts sports events. It’s now a public park.

regional Department of Education, said the complex is almost 100-percent complete. Swimming would be held at the region’s first world-class venue at the Davao del Norte Sports Complex in Tagum City, which hosted the Palaro three years ago. Atillo also guaranteed that the sleeping quarters for athletes and officials are fully equipped. Some 7,700 athletes, coaches and local government officials are expected to attend Sunday’s opening ceremony for the games that feature 21 sports. He said the Davraa is expected to attract 16,000 visitors. Classes have been suspended in public schools, which will be used as quarters for athletes, coaches and officials.

ORMER collegiate stars CJ Perez and Robert Bolick bring their rivalry in the pro ranks when Columbian Dyip and NorthPort collide in the Philippine Basketball Association (PBA) Philippine Cup on Friday at the Ynares Center in Antipolo City. The top picks in the rookie draft, the muchanticipated Perez-Bolick duel starts at 4:30 p.m. The confrontation is expected to steal the show from the main game featuring defending champion San Miguel against Meralco at 7 p.m. The Batang Pier have won two straight—against NLEX (95-90) and Blackwater (117-91). Bolick, the No.3 pick, is shining for NorthPort. He scored 26 points in his pro debut and made 14 points in their next match. A product of San Beda, Bolick expressed his excitement in meeting his former collegiate foe, whom he fought twice in the Finals of the National Collegiate Athletic Association (NCAA). “I’m looking forward to this game, especially against CJ and Columbian,” Bolick said. “We’re already competing way back in the NCAA, and until now here in the PBA. For sure it will be fun.” Back in the NCAA, the Red Lions spoiled the historic 18-0 record of the Perez-led Lyceum Pirates in the elimination round with an emphatic win in the 2017 Finals. The Red Lions repeated over the Pirates in the previous season with Perez serving his one-game suspension in Game One of the Finals for applying for the Rookie Draft without officially informing the NCAA of his intention. That’s all part of history though for Perez, and he is more motivated to help Columbian, which drafted him first overall. “I’m not thinking of the rivalry. It’s just about my team,” he said. Dyip split its first two games. Perez fired 26 points to tow Columbian over San Miguel Beer, 124-118, but Phoenix spoiled the fun with a 108-98 win as the rookie star was held to 10 points. Ramon Rafael Bonilla

Maroon de Liaño draws attention

IGHTY Sports held its first practice on Wednesday night at the Urdaneta Village gym with the spotlight surprisingly falling on Juan Gomez de Liaño and not on the American imports. Even former Los Angeles Lakers star Lamar Odom heaped praised for the crafty University of the Philippines guard. “This kid can play and he is good,” said Odom of the star Fighting Maroon whose long bombs did not go unnoticed. Ginebra import Justine Brownlee and Chinese Basketball Association veteran Randolf Morris were also impressed with de Liaño’s deadly shooting as the apparel and accessories team backed by SMDC, Go For Gold, Oriental Group and Healtcube prepares for its second foray in the Dubai International Basketball Championship set from February 1 to 9. Coach Charles Tiu said the practice went well and was surprised everybody hit it off right away during their first meeting. “First practice was OK, I like that, and the guys were excited, lots of laughs. They were practicing well,” said the younger brother of former Rain or Shine star Chris Tiu. “’Hope we will do better next time.” “Juan looked very good. I was also impressed with his decision making. His overall game, including his shooting, was great,” Tiu added. “He can do things pretty well on the court.” Tiu’s only concern is that Harris and Odom—with the latter arriving in the morning—still didn’t have legs. “We hope we can address that, and I believe Coach Chris, Coach Jong [Uichico], Coach [Dean Casgtano] and Coach Woody [Co] have plans for them,” team owner Alex Wongchuking said. The team is leaving for Dubai next week. The other members of the squad are Jett Manuel, Joseph Yeo, TY Tang, Angelo Wongchuking, Santi Santillan, Justin Gutang, and Fil-Ams Jeremiah Gray and Roosevelt Adams.

orts

sMirror

NBA RESULTS Indiana 110, Toronto 106 Boston 123, Cleveland 103 Brooklyn 114, Orlando 110 Houston 114, New York 110 LA Clippers 111, Miami 99 Atlanta 121, Chicago 101 Charlotte 118, Memphis 107 Detroit 98, New Orleans 94 Philadelphia 122, San Antonio 120 Utah 114, Denver 108

HARDEN STREAK

EW YORK—James Harden has reached 30 points for the 21st consecutive game, passing Wilt Chamberlain for the fourthlongest streak in National Basketball Association (NBA) history. Harden’s three-pointer with about three minutes remaining in the first half of Houston’s game against the Knicks on Wednesday night gave him 32 points. The NBA’s leading scorer had already surpassed his average of 35.7 points by halftime, putting back the miss of his own shot to beat the buzzer and give himself 36 points and nine rebounds. Chamberlain still has all three streaks that were longer. His record is 65 straight 30-point games, and he also had streaks of 31 and 25 games. AP

Friday, January 25, 2019

SPOELSTRA MILESTONE M

IAMI—Erik Spoelstra still vividly remembers getting a short speech from his father, a sage piece of advice that came about a year into his time in the employ of the Miami Heat. “Don’t screw it up,” Jon Spoelstra said. Almost 25 years later, the mantra still applies. Erik Spoelstra coached his 850th game for the Heat on Wednesday night, passing team president and Hall of Fame Coach Pat Riley for the most in franchise history. Spoelstra is only the 13th person to coach at least 850 games with one National Basketball Association (NBA) franchise—it’s happened 14 times overall, with Don Nelson reaching that threshold with both Milwaukee and Golden State during his career. “My dad had been fired from a couple of different places and he knew the real NBA,” Spoelstra said. “He was saying it almost as such an exaggeration... just find a way to hang on with this guy, this Hall of Famer. And I guess the lesson to that is, I’m still just trying to hang on, trying to work for him for as long as I possibly can.” New Orleans’s Alvin Gentry will coach his 1,000th career game on Thursday when the Pelicans visit Oklahoma City, making him the 31st NBA coach to

hit that milestone. Unless either Scott Skiles or Stan Van Gundy returns to an NBA sideline beforehand— they’ve coached 958 and 907 games, respectively— Spoelstra could be the next coach to join the 1,000-game club, sometime around the midpoint of the 2020-2021 season. Heat guard Dwyane Wade has spent virtually his entire career around Spoelstra, who was an assistant under Riley until moving into the top spot for the 2008-2009 season. That means he’s heard just about every quote Spoelstra has to offer over and over and over again, lines about “identity” and “competition” and insisting that in any circumstance “we have enough.” It took Wade a long time to understand why Spoelstra’s message rarely deviates from one year to the next. “He’s consistent,” Wade said. “If you’re a parent, you understand that my kids need consistency from me and my wife. They need routines, they need all these things. It’s the same thing. It’s a big day care that he has in that locker room and he’s consistent with his message and how we do things.” Among coaches with at least 10 years on the job, Spoelstra’s winning percentage—.595—is eighthbest in NBA history. By the time this season ends, he

should be in the top 30 for all-time wins. And he’s only 48, meaning his career might still have many, many more years left for him to add to his legacy. Plus, he realizes how fortunate he is to be in a place like Miami, where the leadership group led by Riley and managing general partner Micky Arison values stability. Among current NBA coaches, only San Antonio’s Gregg Popovich has been in his job longer than Spoelstra—who has seen 122 coaching changes in the league since Riley promoted him to the top spot on Miami’s staff. “This coaching profession is extremely dynamic,” Spoelstra said. “It’s complex, and I’m very grateful to have this opportunity with such an incredible organization. You don’t have it in pro sports. That’s why I try to do my very best and try to grow and get better and reinvent every year, because I don’t want to let them down.” That means he’s still listening to his dad’s suggestion, all these years later. AP

ERIK SPOELSTRA coaches his 850th game for the Heat on Wednesday night, passing team president and Hall of Fame Coach Pat Riley for the most in franchise history. AP

Ex-swimming champ sentenced for child rape, sexual abuse

ORDEAUX, France—A former French swimming champion and ex-manager of one of the country’s most successful hockey clubs was found guilty on Wednesday of child rape and sexual abuse and sentenced to 12 years in jail. Vincent Leroyer, 61, was found guilty of abusing five boys between the ages of six and 14 when he managed the Rouen Hockey Club from 1986 to 1996. His victims, now in their 30s and 40s, told the court how they have since struggled with addiction and a catalog of other difficulties.

The victims hugged each other after the guilty verdict and sentence was pronounced by the court. Leroyer was a French national champion, specializing in backstroke, in the 1970s before injuries derailed his career. He went on to manage the Rouen Hockey Club, which won five national championships during his tenure. The three-day trial highlighted how success as an athlete and sports administrator helped open doors that otherwise likely would have remained closed to the single man with no family or children of his own.

Prosecutors said he targeted families with marital difficulties and with fathers who were often absent for work and preyed on the children, with offers to help take kids to hockey games, for burger meals, on holiday and even to tuck them in at night. In summing up the case against Leroyer for the jury, prosecutor Martine Cazaban-Pouchet said: “It helped the families to have someone who said, ‘I’m available.’” She had asked for a prison sentence of 12 to 14 years. AP

Eustaquio stakes title vs Moraes

EAM Lakay stalwart and flyweight world champion Geje “The Gravity” Eustaquio takes on Brazilian submission monster Adriano “Mikhino” Moraes a third time in the ONE: Hero’s Ascent on Friday night at the Mall of Asia Arena. Eustaquio (11-6) is out to erase doubts of his split decision victory over Moraes (17-3, 9 submissions) in ONE: Pinnacle of Power last year where he captured the world flyweight championship. The mixed martial arts stars first met in 2014 with Moraes thumping the warrior from Baguio City. The rubber match is also Eustaquio’s first title defense since capturing the belt, and the 29-yearold vowed that the Team Lakay ace that won the title would be different to the one that will face Moraes inside the cage. “This time, there will be more surprises for Adriano Moraes,” Eustaquio said. Also fighting in the card is Eustaquio’s teammate—and fellow flyweight—Danny Kingad (8-1) who returns to the cage after almost four months of inactivity following his unanimous decision victory over Yuya Wakamatsu to face another Japanese, Tatsumi Wada (20-9-2). The fight will air live on ABSCBN S+A and S+A HD at 8:30 p.m.

God of awesome deeds

ESUS, You give life to our souls. In hope we pray: Animate us by Your spirit, Oh God. Accept our gratitude for the blessings of this day, and lead us to praise You always. Give integrity, respect and right judgment to those entrusted with authority. Encourage newly married couples, engaged partners, and partners and parents of young children. May God be gracious to us, look upon us with kindness and give us peace. 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

PENN BADGLEY HATES JOE By Jt Nisay

Badgley and Shay Mitchell, stars of the hit Netflix series You, visited the country to talk about the dynamics of the show, their characters, as well as their own ➜D2

SOMETHING LIKE LIFE: WHEN I WAS NINE D3

Friday, January 25, 2019

Cover Story BusinessMirror

Penn Badgley hates Joe BADGLEY and Mitchell take a break from doing press for You to enjoy a formidable serving of the local dessert halo-halo at The Peninsula Manila.

ROSS-LEGGED onstage, Penn Badgley hunches forward with a mic on hand, his blue eyes fixated on empty floor space, finding words, searching for any phrase, to accommodate a request he often receives. The crowd wanted to hear his honeyed, bedroom voice. Soon after assuming the pensive pose, the lips of the former Gossip Girl star begin to move. “I wouldn’t ordinarily eat such a confectionery treat,” Penn starts, instantly capturing the breath of the room, his sights still set on nothingness. “But you...” “You are so...” “Like a cloud...Like a blue...puff....” The actor just manages to deliver the final word of the impromptu dialogue before chuckling at the thought of what he came up with. “I’m an actor,” he said, smiling. “I’m not a writer.” Penn, light in a loose white shirt and cerulean frost jeans, repositions himself in the chair as the crowd of press members thanked him in applause for the vocal indulgence at The Conservatory of The Peninsula Manila. One has every reason to believe that the actor can deliver the same charm with his voice even by reading a grocery list; it’s a smooth and silvery tone that sounds like a warm hand on the cheek and a promise to the ear. At the same time, it does more than sweet talk. Penn’s voice is a gift, unwrapped at an early age, that got him voicing gigs at a children’s radio station, as well as Nintendo for sound effect noises to its “Mario Tennis” and “Mario Golf” video games. It’s also a trait that birthed in him musical aspirations as a kid hoping to make it in the entertainment industry, and enabled him to realize those same dreams as the current frontman of an indie pop band, the MOTHXR. Other than hearing the voice live at the event, perhaps what merited the rain of applause was the fact that the crowd could adore its sound, as well as its source guiltfree, without having to wrestle against the fact that the person speaking is actually Penn Badgley, crush of an entire generation of television viewers, and not Joe Goldberg, creep extraordinaire. In Netflix’s latest water-cooler hit series that is based on Caroline Kepnes’s best-selling novel of the same name, You, for which the actor visited the country recently for the first time on a promotional stop, Penn plays Joe, a twentysomething boutique bookstore manager who utilizes today’s interconnectivity in pursuing to extreme lengths the woman he falls in love with, Guinevere Beck, played by Elizabeth Lail. In portraying the stalking and murderous Joe, Penn

Today’s Horoscope By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Hartley Sawyer, 34; Alicia Keys, 38; Ana Ortiz, 48; Jenifer Lewis, 62. HAPPY BIRTHDAY: Step up matters that have been pending. This is your year to take care of unfinished business and to negotiate on your own behalf in order to set the record straight. Once you put everything in its place, doors will open and new and exciting opportunities will unfold. Love, romance and personal gains will also be focal points. Your lucky numbers are 6, 13, 19, 25, 31, 33, 44.

ARIES (March 21-April 19): Consider how to make the most out of what you’ve got to get ahead. The desire to reach a set goal and the initiative to take charge will encourage success. Love and romance will enhance your personal life. ★★★

TAURUS (April 20-May 20): You may not agree with everyone, but listen and assess what’s being said and done before you say no to someone or something that could be in your best interest. Don’t let stubbornness take over or you may lose out. ★★★

GEMINI (May 21-June 20): Thought should be followed by action. Trust in your ability to get things done, and don’t stop until you finish. A personal relationship should be looked at closely before you make a change or suggestion. Romance is highlighted. ★★★★★

the show. She said her previous shows touched on using technology and social media a bit, but You took those elements to another level, dissecting its worst bits along the way. For his part, Penn believes there’s nothing inherently wrong about social media as a tool. He stated his admiration for people like Shay, an Instagram figure with 22.4 million followers as of press time, who uses the platform responsibly both for herself and her followers. “The images that you’re seeing [on social media] are people’s highlight reels. It’s not reality,” Shay said. “It’s the best of the best moment of that day that’s been curated, perfected and filtered a million times. If you can go into it knowing that, then you can use it appropriately.” Prior to the press conference of the show, the second season of which has already been picked up as a global original, the two stars dug into a mound of halo-halo. Penn said the Filipino favorite perfectly describes his chemistry with Shay. “I love working and doing press with Shay,” he said. “Our humor’s quite different, but then we just really mix well...like the ingredients of a halo-halo. Unity in diversity.” ■

didn’t go for a “clinical portrayal of a psychopath,” but for an approach to someone closer to home. “I think what Joe was doing was quite normal, and that’s the most disturbing part,” Penn said. “He really isn’t doing anything that’s super high tech. He’s meant to represent things that are inside all of us, which is terrifying.” Together with Penn for the trip was Shay Mitchell, a Canadian-Filipino actress who plays Peach Salinger, among the closest friends of Beck who grows an adversarial relationship with Joe. “Well, they both sort of had an obsession for Beck, right? You took yours a little further,” Shay told Penn as they sat across each other onstage. Shay is known for playing sweet characters, such as Emily Fields in Pretty Little Liars, but admits finding a welcome challenge in portraying Peach, described as the “controlling queen bee” of Beck’s circle of privileged friends. “Peach in a way is the best person on our show,” said Shay, immaculate in a white ensemble and nude makeup, with a jawline as sharp as her eyes. “She sees things clearly, knows what she wants, and is extremely honest.” The role isn’t the only thing Shay had to adjust to in

CANCER (June 21-July 22): Dream big and don’t limit what you can do. A chance to negotiate on your own behalf will give you the leverage you need to get your way. Take a unique approach to whatever you do. Make an impression. ★★★

LEO (July 23-Aug. 22): Make travel plans or sign up for an event that interests you. Challenge yourself physically and offer a romantic suggestion to someone you love. You can make a difference if you take action and help those who have limitations. ★★★★

VIRGO (Aug. 23-Sept. 22): Refuse to get all wrapped up in someone else’s enthusiasm. If you get involved in something that hasn’t been thought-out, you’ll have regrets. Take the helm if you want to get things done right. ★★★

LIBRA (Sept. 23-Oct. 22): Think, communicate and get approval before you put your plans into motion. Getting the go-ahead will be the difference between success and failure. A change has to be good for all involved, not just you. Romance is on the rise. ★★★

Maricel Soriano returns to TV to TV drama via The General’s Daughter on ABS-CBN. The prime-time show sees Maricel pitting acting talents with Angel Locsin. I caught the pilot episode (according to Kantar Media, it scored a 38-percent rating) and it was there I got to know 2nd Lt. Rhian Bonifacio (Angel). She went on a critical mission to save a group of fishermen seized by Chinese coast guards in the West Philippine Sea but she faced peril in doing so. Luckily, her body was brought ashore to Elai (Arjo Atayde) and Nanay Isabelle’s (Maricel) home, who will give her refuge until she has fully recovered. As the show progresses, Rhian will know that everything she knows about her family is a lie. You see, growing up, Rhian was led to believe that her biggest enemy is the family of the de Leons led by Marcial de Leon. To please her parents, she enters the military as a spy, and eventually infiltrates Marcial’s personal life. As she gets closer to Marcial and his family, Rhian also inches her way toward the truth that will redefine her life—her true father is Marcial, and that her foster family only made her a pawn to kill their archnemesis. Aside from the lies she has to put up with, love will also be one of Rhian’s enemies as Franco (Paulo Avelino) and Ethan (JC de Vera) both fight for her affection. Rhian will also meet her biggest rival, Jessie (Ryza Cenon), the ex-girlfriend of Ethan, who will compete with Rhian to bring her former lover back into her arms. The General’s Daughter also stars Arjo Atayde, Ronnie Alonte, Loisa Andalo, Art Acuna, Anne Feo, Cholo Barretto, Kim Molina, Kate Alejandrino, Luz Valdez and Nico Antonio. It is under the direction of Manny Palo and Mervyn Brondial.

GAB FAB JET VALLE

@jetvalle

SAY Maricel Soriano, and you expect a lot: great acting, flawless skin, timeless charm and razor sharp wit, among others. The award-winning actress, who moved us in Saan Darating ang Umaga and Hinugot Sa Langit, is the same person who sparkled with electrifying dance moves in Maricel Live! back in the day. And those moves are actually what are etched in my mind forever of Maricel. Particularly in the movie Jack en Poy, where she shimmied to “Shake Body Dancer,” the steps of which are forever engraved in pop culture. Jack en Poy remains to be one of my favorite Pinoy movies of all time. In fact, I can watch it over and over again. The many times I’ve seen it on Cinema One, I dropped everything, still laughing at the zany antics of Jack (Maricel) and Poy (Roderick), childhood friends in a bizarre arranged marriage by their more bizarre parents. It is a fun movie filled with Jack and

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MARICEL SORIANO

Poy trading funny insults. I wish some movie producer would bring Maricel Soriano and Roderick Paulate together again in the big screen for some pure, unadulterated fun. But that doesn’t mean I am not excited for Maricel’s return

SCORPIO (Oct. 23-Nov. 21): Listen carefully and find out where everyone stands before you make a commitment to participate. You may prefer to go it alone if you aren’t comfortable with the suggestions someone makes. It’s OK to take a pass. Do your own thing. ★★★

SAGITTARIUS (Nov. 22-Dec. 21): Make changes for the right reasons. Don’t let emotional situations cloud your vision. Consider what’s best for everyone, and be honest with regard to your motives. Concentrate on home, family and domestic improvements. ★★★★

CAPRICORN (Dec. 22-Jan. 19): You know what you need, but before you get started, consider how the decisions you make will affect other people. Be open to suggestions but also aware of the cost involved to bring about the changes you want to make. ★★

AQUARIUS (Jan. 20-Feb. 18): Take control of what’s going on in your life. An opportunity is apparent, but you need to be free and clear of the past in order to move forward with precision and confidence. ★★★★★

PISCES (Feb. 19-March 20): Keep your thoughts to yourself. If you reveal personal information, it will be used against you. Do something that makes you feel good. Volunteer your time or do something creative that will lift your spirits. Avoid excess or indulgent behavior. ★★★ BIRTHDAY BABY: You are intuitive, smart and innovative. You are confident and strategic.

‘speak up’ BY ZHOUQIN BURNIKEL The Universal Crossword/Edited by David Steinberg

ACROSS 1 Out of bed 6 Brings to a close 10 “Zip-a-___-Doo-Dah” 13 Slug’s trail 14 Fully stretched 15 Navy’s horned mascot 16 Teenage infatuation 19 Device that responds to “Alexa” 20 Salty margarita glass part 21 Roots novelist 22 Butterfly catcher 23 First woman to run a major TV studio 26 Patella’s place 28 Piercing places 29 Concave belly button 31 Desktop computer choice 33 KC cuisine 36 Agile 40 Basic dog command 41 Gets on in years 42 ___ and dreams 43 Kermit’s greeting 45 Totally infatuated 46 Tropical tree

51 54 55 56 57

Cook known for his Apples Alternative to budget All-Star starting pitcher Polygon part 2017 TIME honorees...or 16-, 23-, 36and 46-Across, based on letters that bookend them? 61 For all time 62 Lack of hassle 63 Cheerleaders’ skirts, often 64 Society newbie 65 Triple play trio 66 Restless DOWN 1 Ghostly pale 2 Bad golf shot 3 Close, as a family 4 Blogger’s “I think...” 5 High-___ monitor 6 Moral guideline 7 Country singer Judd 8 Dynamic group 9 Busch Stadium cap letters 10 Midwife’s assistant 11 Stand in a studio

12 15 17 18 23 24 25 27 29 30 31 32 33 34 35 37 38 39 43 44 45 46 47 48 49

Alcohol type in antiknock Snatches Motley ___ “The Goddess of Pop” Vichyssoise vegetable Tilts a bit Sneaker string Actor Cage, to fans Mensa figs. Rapa ___ (Easter Island) Precious bar Springfield tavern owner “Just wait” Drone or queen Milk measures: Abbr. Diamond Head’s island Hoax Mountain drive hazard Base-clearing hit, informally Privy to Great happiness Examined before a heist Drab shade The Alienist novelist Carr Blue Ribbon brewer

50 52 53 56 58 59 60

Ranch units Thor actor Elba Far from tidy Thin phone cover Corp. honcho ___ de toilette Physicians’ org.

Solution to yesterday’s puzzle:

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Relationships BusinessMirror

Friday, January 25, 2019

Foodpanda joins #AyokoNgPlastik movement of WWF for their #GoGreen campaign

When I was nine SOMETHING LIKE LIFE

MA. STELLA F. ARNALDO

@akosistellaBM

HEN I was nine years old, I was in Grade 3 in Saint Theresa’s College. During recess, we would quickly line up at the vending machine to buy our orange drink, which we would slowly nurse with our sandwiches. (There was never a time we would be happy with those sandwiches, despite being lovingly made and wrapped by our mothers, or, in my case, my Lola Ding. Our classmates’ sandwich fillings were always far more interesting than ours.) As soon as we were done, we would rush to the playground trying to beat the other kids to the swings. Everything seemed to be a race in those days. We liked to outswing each other, and upon reaching the absolute maximum heights we could muster, we would jump off and try to land safely on our feet. If it were an Olympics gymnastics event, many of us would have gotten straight 10s from all the judges. Lunch was another matter altogether. Since we had a longer time to make mayhem, we would often spend those remaining lunch minutes peering over the wall into the windows of the National Orthopedic Hospital, which sat just beside our school. There was always that room with artificial limbs, but we would scare each other saying these were real limbs cut off from patients, then immediately run away screaming our heads off! When playing Chinese garter, we would hold our skirts by the hems so no one would be able to see our underpants as we went flying through the air, trying to go over the garter as it went higher and higher. The less active kids (read: serious nerds) would be more focused on playing jackstones or Chinese jackstones, with the colorful pillows stuffed with either mongo beans or rice. Part of our homeroom instruction was planting vegetables in plots assigned to our section. We planted kamote (sweet potatoes) probably because this was the easiest to grow, while I espied other sections and other batches trying to grow pechay (Chinese chard) or upo (bottle gourd). The leaves of the kamote are shaped like hearts, and they would grow in abundance all over our farm plots as they reached maturity. When they were fully grown, we would pick them and our teacher (or the canteen maybe) cooked us kamote que.

(Looking back, I would like to think this exercise was a result of our liberal teachers’ efforts to remove the common Filipino mentality, brought on by that song, “Planting rice is never fun...” and instilling in us some respect for farmers.) When we finally made our way home, we would often be glued to the children’s shows of the day— Sesame Street taught us English on weekdays through Big Bird, Oscar the Grouch, Ernie and Bert (who were not gay to us then, just best friends); and on weekends, we always had a secret wish to be part of the lucky few who got to hung out with Uncle Bob on GMA, or rode the go-karts in Tito Pepe’s Clubhouse 9. (True story: while driving along the road one day, Papa pointed out Uncle Bob to me in the other car. Of course, this got me all excited and I shouted his name so loud and waved crazily at him. He swiftly turned to our car and waved back at me, which gave me such immense satisfaction. My first celebrity sighting and one I would never forget!) At nine, I would play badminton with the househelp in our street, which didn’t get paved until decades later. Or insinuate myself with my older brothers while they pushed their matchbox cars on that yellow and red plastic highway connector set they built. But once we heard the kleng! kleng! of the Magnolia ice cream man walking by, pushing his yellow and blue cart, or the manong selling the binatog in his basket closed up with plastic to keep the flies and dust away, we would make a dash outside our gate while screaming for our Lola to buy us afternoon treats. Also most awaited was the vendor of sugarsprinkled ensaymadas, paddling slowly on his bike, as he squeezed the horn attached to his handlebars. I used to call the vendor “poot-poot,” because of the sound his horn made. Possibly the grandest thing that happened when I was nine was watching the first Miss Universe beauty pageant held in the Philippines. We were glued to our TV set as a parade of beauties walked along the stage of the newly built Folk Arts Theater. And Miss Universe 1973, our very own Margarita “Margie” Moran, crowned her successor, the gorgeous and glorious Amparito Muñoz of Spain. Despite the Miss Universe propaganda we were bombarded with, I don’t think anyone of my classmates ever aimed to become beauty titleholders. Many wanted to become teachers, doctors, lawyers, nuns and all I wanted to do was ride rocket ships to space. Nine-year-olds have simple joys and dreams. They don’t wake up in the morning intending to become drug couriers, or stealing cell phones from passersby, or pandesal from the neighborhood bakery. If at all, they are used by older people, those who are better equipped to determine the difference between right and wrong, to carry out these dastardly acts. Which

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standout pieces perfect for special occasions or a romantic night out. From My Diamond’s ring collection come two elegant and elaborately designed pieces: The Engagement Ring and the Half Eternity Ring which feature intricate twirls and a round shaped illusion diamond set in a classic prong. The rings are pieces in a collection that been inspired by design techniques that trace back to periods past, when master craftsmen painstakingly carved slender curls on bespoke jewelry commissioned by nobles. MY Diamond Vintage Style Tendril Engagement Ring and Half Eternity Ring

makes these nine-year-olds victims, not criminals. There is enough science and research to show that kids that young cannot discern the consequences of their actions. They often imitate their peers or their elders without thinking. And when placed in environments and situations where they have lessthan-savory people around them, they just do what they are told. Lawmakers should not punish kids by putting them in an even worse situation. They should, instead, attack the root cause of the problem—poverty. And for that, there are numerous economic measures that can be crafted to help uplift the poor, and give families living on the edge, in desperate, dire conditions, a helping hand. Let this be an appeal to all lawmakers to junk the bill lowering the minimum age of criminal responsibility to nine years old. There is no place in civilized society to punish the young for the sins of the elders. ■

AS the world continues to veer away from the use of plastics in exchange for more eco-friendly alternatives, foodpanda, the on-demand food delivery service in the Philippines, continues its #GoGreen initiative by partnering with the World Wide Fund for Nature Philippines, the 26th national organization of the WWF network, for its #AyokoNgPlastik movement. The movement aims to combat the over-usage of single-use plastics in the day-to-day lives of people by encouraging the use of more sustainable materials. Starting next month everyone has the option to join the movement when opting out for plastic cutlery and choosing to donate P1 or P5 per order to help WWF Philippines in their battle against plastic waste. “We at foodpanda believe the partnership with the WWF Philippines strengthens our vision for the #GoGreen campaign. I am excited for this collaboration, as we are talking about two pandas colliding and joining forces to help decrease the use of plastic,” says Iacopo Rovere, CEO for foodpanda Philippines. To date, foodpanda has almost 10 percent of their restaurant partners participating in the opt in/out cutlery across its three key cities: Metro Manila, Metro Cebu and Davao. By partnering with WWF Philippines, foodpanda will be able to increase the reach and impact of its #GoGreen campaign—not just for the environment, but for the businesses involved, as well, as it allows restaurant partners to save money from cutlery costs. “This partnership with foodpanda against the use of single-use plastics, they are the first food delivery service to join us in protecting the environment. Together with foodpanda, we will continue to paint the world green [and pink],” shares president of WWF Philippines, Jose Angelito Palma. With this partnership, foodpanda hopes to make a difference in the way plastic waste is perceived, and reduce the overall environmental impact of food packaging waste. If you already have easy access to cutlery, or if you do not need it for your meal, foodpanda encourages you to consider opting-out from cutlery to help reduce plastic usage and help WWF Philippines’s movement.

Motoring BusinessMirror

Henry Ford Awards Best Motoring Section 2007, 2008, 2009, 2010 2011 Hall of Fame

Editor: Tet Andolong

MODELS strut the catwalk during the Manila Fashion Collection Night.

SUZUKI Philippines President Hiroshi Suzuki (fourth from left) and Suzuki Philippines Managing Director and Treasurer Norminio Mojica (third from left) together with other executives and presenters celebrate their success in 2018 and their high hopes for the New Year during a party in House Manila, Pasay City.

Friday, January 25, 2019

Suzukiâ€™s record-breaking 10,200 Raider riders at the World Trade Center in Pasay City

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IPC stamps overall truck dominance HYUNDAI KONA 2.0 GLS 6AT for 19th consecutive year

BOLD AND CA

NPR85

N the recently released joint yearend sales report of the Truck Manufacturers Association (TMA) and the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) for 2018, Isuzu emerged as the top-selling brand in the lightduty truck (Category 3) segment, with total unit sales of 3,965 from January to December 2018, capturing 55.5 percent of the market share in that category. Isuzu, likewise, increased its market share in that category compared to 2017 sales figures, when it had a 53.7-percent share of the market. Isuzu Philippines Corp. (IPC), thus, continues its market dominance in the light-duty truck category for 20 consecutive years, dating back to 1999. The Isuzu brand also topped the overall Category 3, 4 (medium duty and buses) and 5 (heavy-duty trucks) segments in the Campi-TMA yearend 2018 sales report, extending its dominant streak to 19 consecutive years. IPC President Hajime Koso attributed the brand’s continued success to Isuzu’s global reputation as a world-class truckmaker, the adaptability and versatility of its trucks, and the full after-sales service of an extensive nationwide dealership network. This comprehensive suite of products and services embodies IPC’s commitment as a “professional partner” to its customers. “For decades now, Isuzu has been known globally for its durable and dependable trucks that can withstand any challenges in transport operations. And with our collaboration with local body builders, our trucks have also been creatively engineered and designed to be suitable for whatever purposes our customers demand. Equally important is the after-sales support we provide to our clients along with every purchase. This is the Isuzu Advantage.” The Isuzu Advantage is the sum of IPC’s different customer support

NQR75 A REAL head-turner exterior design

NE of Hyundai’s spectacular new models revealed at the last Manila International Auto Show (Mias) was the Kona subcompact crossover. Kona is the brand’s newest addition to the hotly contested vehicle segment. NLR85

programs bolstering its world-class lineup of vehicles. The first advantage is IPC’s roster of durable, reliable and fuel-efficient vehicles. The second is its nationwide dealer network that now counts over 42 outlets complete with servicing facilities. The third is the reliable and prompt nationwide parts availability. Finally, IPC’s team of expert service technicians and field support personnel are on call to provide technical assistance whenever and wherever needed. Koso added, “By being professional partners, IPC does not just supply world-class vehicles and treat our customers as mere clients, we treat them as partners. Their growth is essential to IPC’s growth,

the development of the Philippine transport sector and of the economy in general. Hence, we provide total support to our partners’ businesses with great products and after-sales support.” IPC’s after-sales support has been proven to be of world-class standards, with technical teams from IPC consistently winning in global competitions, the most recent just last December 6, when Team Pilipinas was hailed Grand Champions at the Isuzu I-1 Grand Prix World Technical Competition at the Isuzu Monozukuri Service Training Center in Fujisawa, Japan. To know more about Isuzu’s roster of light, medium and heavy-duty trucks, log on to www.isuzuphil.com.

PIONEER WINS ASEAN BUSINESS AWARDS

IONEER Adhesives Inc. took another step toward excellence in winning the Automotive Sector for Priority Integration Sector (PIS) Award in 2018 Asean Business Awards held recently at the Ritz-Carlton Hotel in Singapore. (From left) Prof. Annie Koh, ABA 2018 chairman; Mr. John Spakowski II, chairman and CEO of Pioneer Adhesives Inc.; Dr Mahathir, prime minister of Malaysia; Mr. Linus Goh, head of Global Commercial Banking at OCBC; and Mr. Wilf Blackburn, CEO at Prudential.

Story & photos by Randy S. Peregrino

Side by side with its big brother Santa Fe, both flaunted design breakthroughs representing Hyundai’s next generation of styling. For most of us, it was simply captivating, as well as a big leap compared to the stunning looks that the existing Hyundai models already have. With the Kona’s entry to the local market’s very competitive B-segment crossover arena, it will go up against the major players that have already proven its respective selling points. But when it comes to boldness and individuality in styling, this newcomer will definitely further stir up the competition. While we’ve seen a variant sporting a turbocharged petrol engine, for now Hyundai is offering the naturally aspirated version 2.0 GLS 6AT, which we tested for this month’s feature. Dressed in upbeat lime twist shade, we can’t get enough of this small sport-utility vehicle even by just staring at it. It is an absolute head-turner. Just like the all-new Santa Fe, Hyundai did a great job in coming up with the styling and distinctions coming from the brand’s new imposing design signature and individuality. While the Santa Fe oozes with sophistication, the Kona, on the other hand, dons an athletic look. It emphasizes the new three-dimensional grille with honeycomb pattern plus another slim one above it. These are matched with separated headlight design consisting of slender LED daytime running lights and detached projector type headlamps below. The fog lamps, meantime, are positioned at the chin area along with another grille design and metallic trim. All these complement the aerodynamic profiles on the bonnet. On the flanks is where you’ll find more flowing patterns and curvatures toward the end along with the sloping

roof line, dark window frames and trim at the C-pillar sections. You wouldn’t see enough chrome or metal finishes but rather more dark finishes, hence, the robust character. As for the equally gorgeous rear end, the separated light design concept extends. The brake lamps are positioned at the typical area while the signal and reverse lights are separately clustered just above the bumper border. But what really further highlights the overall exterior design are the unconventional and prominent black plastic panels all over. These trims not only reinforce the robust and athletic guise of the vehicle, but also add to its individuality. Supplementing the overall look are the multispoke with directional-design 17-inch alloys rims. Step inside and you’ll see the Kona’s utilitarian character coming from predominant hard plastic materials with some subtle piano black finishes. But the well-laid out dashboard has an ergonomic design. Somehow, we find the overall presentation quite indicative to that of the German automaker known for producing practical cars. We like how the sporty seats with fabric material, have multi-adjustments to find that perfect driving position. The steering with embedded controls also has tilt/telescopic adjustments. We also liked the minimal amount of silver accents inside found only in the right places. Then there’s the standard head up infotainment with telephony functions. We just wish that Hyundai would go touch-operated with bigger screens in the near future. On the other hand, there are more cup holders plus the separate USB and 12volt socket solely for gadget charging apart from the another USB outlet for accessing audio files. What is more,

EQUALLY striking rear end

UTILITARIAN and ergonomic dashboard

you can leave the key fob inside your pocket thanks to the smart key feature and the push start system. The 60:40 second-row benches can also be folded down in order to provide ample space for cargo. At the heart of this captivating small crossover is a 2.0-liter NU MPI Atkinson. Yes, that engine displacement is even more than enough to propel bigger cars. So just imagine having that advantageous power-toweight ratio at the vehicle’s disposal. Even better, it is mated to a smooth shifting six-speed automatic transmission with manual mode plus Eco

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APTIVATING THUMBS UP

n Bold exterior design n Quiet and steady ride n 2.0-liter engine n Impressive handling

THUMBS DOWN n Audio unit display size

SPECIFICATIONS n Vehicle Hyundai Kona 2.0 GLS 6A/T n Type Subcompact crossover SUV n Engine 2.0-liter NU MPI Atkinson,

inline four-cylinder, DOHC, 16 valves, petrol fed n Maximum power 1147hp at 6,200rpm n Maximum torque 179 N-m at 4,500rpm n Transmission six-speed automatic with manual shifting mode

DIMENSIONS n Length

4,165 mm

n Width 1,800 mm n Height

1,550 mm 2,600 mm n Tire size 215/55 R17 n Price as tested P1.118 million n Wheelbase

Shell garners most carmaker recommendations

T has been a remarkable year for Pilipinas Shell with six automobile manufacturers recommending Shell as their fuel of choice in the Philippines. These include: Mazda, Subaru, the Autohub Group—the local dealer of Mini Cooper and Vespa— Hyundai, Toyota Manila Bay and Toyota Talisay in Cebu. They add to Shell’s prevailing global partnerships with Ferrari, BMW-M and Ducati. And to wrap up a prolific year, Shell adds Isuzu Philippines Corp. (IPC) to its roster of affiliates through a memorandum of agreement signing ceremony held recently at Top of the Citi in Makati. In attendance were Pilipinas Shell President and CEO Cesar Romero, Pilipinas Shell Vice President for Retail Anthony Lawrence Yam, IPC President Hajime Koso and IPC Division Head of Marketing Joseph Bautista. With this agreement, Shell and IPC will be collaborating on various value-added offers to delight their loyal customers and help them have better journeys in the succeeding year. As IPC now rec-

Sport drive functions which control the shifting points. With substantial amount of maximum torque being transferred to front wheels, acceleration was evidently effortless and smooth even at the low-end range. But the torque registry became more aggressive toward the midrange. This enabled the vehicle to be quick on reaching cruising speeds and even tackled accents easily. The manual shifting mode allowed us to remain within the power band and squeezed more torque. This mode also became a plus factor in performing engine braking whenever needed. So we didn’t

have any complains in this department at all. On the road, we experienced fun in driving and fell in love more with the Kona. One of the vehicle’s highpoints is the quiet cabin. At times, you’ll only hear tire echoes depending on the tarmac condition. But everything was generally quiet with muffled engine noise. The ride definitely leans toward comfort with tolerable rebounds on certain road imperfections. The damping rigidity was just right in favor of handling and control. We were impressed on how the vehicle handled every bends with absolute

agility. Steering was also good with enough feedback. Safety-wise, there are multiple airbags (driver, passenger, front side and curtain shield), ABS (anti-lock brake system), Isofix child seat anchor, among others. Interestingly, it also has tire pressure monitoring system. The Kona 2.0 GLS 6A/T is one of those vehicles that you’ll appreciate both the looks and driving dynamics. It’s bold, captivating and absolutely fun to drive. Factor in the vehicle’s elements of individuality, it is more than worthy to stir up the subcompact crossover segment competition.

THE memorandum of agreement signing ceremony was led by IPC Division Head of Marketing Joseph Bautista (seated from left), IPC President Hajime Koso, Pilipinas Shell President and CEO Cesar Romero and Pilipinas Shell Vice President for Retail Anthony Lawrence Yam. Shown at the back are Pilipinas Shell Brands and Marketing team and IPC Corporate Communications team.

ommends Shell Fuels as the best partner for their vehicles, a Shell Welcome Kit will be given along with every new Isuzu vehicle purchase. Every customer who buys an Isuzu vehicle will also receive P5,000 worth of Shell fuel vouchers plus a welcome kit that contains P600 worth of additional Shell fuel vouchers and information booklet. “We highly value this partnership with the leading diesel-powered light commercial vehicles and trucks brand in the Philippines,”

Romero said. He noted that the two powerhouse companies already have an existing tie-up on commercial vehicles and fuels, but this is a first for retail. For his part, Bautista expressed confidence that the partnership is just the beginning of something bigger and better in the years to come. “With the synergy of these two global brands, we can come stronger for 2019 and beyond,” he said. For more information, visit www.shell.com.ph.

VULNERABILITIES IN CONNECTED ELECTRIC CAR CHARGERS COULD DAMAGE HOME NETWORKS

RESPONSIVE 2.0-liter NU MPI Atkinson petrol engine

HILE modern electric vehicles are tested constantly for vulnerabilities, some of their essential accessories, such as the battery chargers, often remain neglected. Kaspersky Lab experts have discovered that electric-vehicle (EV) chargers supplied by a major vendor carry vulnerabilities that can be exploited by cyber attackers, and that the consequences of a successful attack could include damage to the home electricity network. Electric vehicles are a hot topic as their development makes a vital contribution to environmental sustainability. In some regions, public and private charging points are becoming commonplace. The growing popularity of EVs led Kaspersky Lab experts to check widely available domestic chargers that include a remote access feature. The researchers found that, if compromised, the connected charger could cause a power overload that would take down the network it was connected to, causing both financial impact and, in the worst-case scenario, damaging other devices connected to the network. The researchers found a way to initiate commands on the charger and to either stop the charging processor or set it to the maximum cur-

rent possible. While the first option would only prevent a person from using the car, the second one could potentially cause the wires to overheat on a device that is not protected by a trip fuse. All an attacker needs to do to change the amount of electricity being consumed is obtain Wi-fi access to the network the charger is connected to. Since the devices are made for domestic use, security for the wireless network is likely to be limited. This means that attackers could gain access easily. For example, by brute-forcing all possible password options according to Kaspersky Lab statistics, 94 percent of attacks on IoT in 2018 came from Telnet and SSH password brute-forcing. Once inside the wireless network, the intruders can easily find the charger’s IP-address. This, in turn, will allow them to exploit any vulnerabilities and disrupt operations. All the vulnerabilities found were reported to the vendor and have now been patched. “People often forget that in a targeted attack, cybercriminals always look for the least obvious elements to compromise in order to remain unnoticed. This is why it is very important to look for vulnerabilities, not just into unresearched technical

innovations, but also in their accessories—they are usually a coveted prize for threat actors. As we have shown, vendors should be extra careful with connected vehicle devices and initiate bug-bounties or ask cyber security experts to check their devices. In this case, we were fortunate to have a positive response and a rapid patch of the devices, which helped to prevent potential attacks,” said Dmitry Sklyar, a security researcher at Kaspersky Lab. Kaspersky Lab recommends taking following security measures: n Regularly update all your smart devices to the latest software versions. Updates may contain patches for critical vulnerabilities, which, if left unpatched, may give cybercriminals access to your house and private life. n Don’t use the default password for Wi-fi routers and other devices, change it to strong ones and don’t use the same password for several devices. n We recommend isolating the smart home network from the network used by your or your family’s personal devices for basic Internet searching. This is to ensure that if a device is compromised with generic malware through a phishing e-mail, your smart home system won’t be affected.

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Lexus PHL a decade later

WILL never forget that night, the 14th of January 2009. It was a night when the sky was bathed in light by twinkling stars. It was a night when some of the guests in that star-studded gathering would proceed to become top leaders in the country. It was a night when Lexus, the lu x ur y car brand k now n only then to have existed with so much pride and class mainly in America, was launched at the Bonifacio Global City in Taguig by Toyota Motor Philippines. Francisco Duque was there, a second cousin of Raymond T. Rodriguez. Voltaire Gazmin was there, who guarded with hawk eyes the late Ninoy Aquino when the martyred senator was the No. 1 political prisoner at Fort Bonifacio during the dreaded martial law. And, yes, Noynoy Aquino was also there, then just a face dwarfed by a well-heeled crowd cologned in expensive perfume. I was also there, a mere midget in a world of giants. W hy this humble kid from the boondocks

was worthy of a precious invite from Danny “Sir John” Isla, the stout-hearted founding president of Lexus Manila Inc., remains a mystery that even Holmes, if not Copperfield, could not unlock to this day. Duque, then the secretary of health, had no inkling whatsoever that eight years later, his cousin Raymond would succeed the retiring Sir John as president of Lexus Manila. Noynoy would become president of the Republic in 2010 and guess who he would appoint as his defense secretary? Nobody but Gazmin. Isla retired in 2008 but not after catapulting Lexus from scratch to a lofty spot among the country’s leading top 3 luxury brands. He would repair shortly to Auckland, New Zealand, with his beloved Joy to be close to their children now settled there with their own families.

RAYMOND T. RODRIGUEZ

DANNY ISLA

SATORU SUZUKI

During the 10th Lexus anniversary last week, I could see Sir John almost teary-eyed as Satoru Suzuki, the Lexus Philippines president, was delivering his speech virtually detailing the brand’s glorious rise from the cellar to the top. He was seated next to me. After Suzuki’s speech, I clinked my whiskey glass to Sir John and gently said to him, “Mission accomplished, Sir John.” “All mine to give, Sir Paul,” he said. The following is Suzuki-san’s speech: “Our valued customers and guests; “our dearest friends from the media; “Ladies and Gentlemen; “Good evening, and an amazing new year to you all! “As we celebrate the New Year, we not only welcome the bright new horizons it brings—we also celebrate an important mile-

stone. This year, we celebrate Lexus Philippines’s 10th anniversary as an organization. “When we launched the Lexus brand in the Philippines back in January 14, 2009, with the inauguration of our first and only dealership, we did not expect to gain such traction immediately. We are humbled that after a decade of steady progress, Lexus Philippines is now recognized as one of the strongest luxury brands in the country. From a market share of 13 percent on our first year, our share has increased to 32.2 percent based on Campi’s initial industry report, making us second in the luxury automotive industry. “In an effort to cater to the needs of consumers all over the country, we have since then expanded our service operations to bring the Lexus experience outside our showroom. We are proud to say that from our dealership here

in Metro Manila, we have set up five Lexus Accredited Service Centers across Luzon, the Visayas and Mindanao regions. “Each of you here today deserves much credit for this growth, made possible through your unwavering loyalty and support. “In the past 10 years, the luxur y automotive has w itnessed sig nificant changes. Lexus has seen this as an oppor tunit y to grow. We rea lized that beyond great products, what ma kes a brand great is the ex per ience it br ings. A s such, Lexus has re d e f i ne d t he d e f i n it ion of lu xur y, and equated the brand to amazing ex per iences. “Since the launch of our ‘Experience Amazing’ campaign last 2017, we have introduced models with elevated levels of performance, design and craftsmanship, such as the LC, the LS, the ES, and very recently, the All-New Lexus UX, which marks the brand’s first-ever

introduction in the subcompact SUV segment. “But for us, Experience Amazing is more than just a tagline. It is a continuous endeavor to design innovative ways to excite and enrich lives. It is ever-present in our operations as we strive to translate this in the whole customer journey—from our products, our service, our facilities, and our team. We have a decade of good work behind us. And we promise to continue to augment the experiences we deliver in the years to come. “As Lexus Philippines commemorates ten years of creating amazing experiences, I would like to take this opportunity to express our sincerest gratitude for being a big part of this amazing journey. I am confident that with our strong brand, our strong product line-up, our strong customer-centered efforts, and your strong support— we will see the next decade through with equal success. “Once again, thank you very much! Please enjoy the rest of the evening.”

PEE STOP Will

another car be raffled off in today’s SMC Media Golf at Wack Wack? The yearly affair is by way of commemorating the birthday of RSA, the President of San Miguel Corp., the country’s largest conglomerate…. Our condolences to the loved ones of Henry Sy, the SM patriarch who passed away at 94 on January 19. It was just also very recently that Dr. George Ty, 85, the Metrobank founder and top Toyota mogul, had passed on.