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Tropical depression Samuel moving out without trail of destruction

NO MAJOR destruction was reported as tropical depression Samuel, which made two landfalls in the Visayas on Nov. 20 and 21, started to move out of the Philippine area. Weather bureau PAGASA, in its 5 p.m., Nov. 21 bulletin, said Samuel, moving with maximum winds of up to 45 kilometers per hour (km/h) near the center and gustiness of up to 60 km/h, was expected to be out by Thursday evening or early Friday. Typhoon warning signal #1 remained up yesterday in the following areas: Romblon; southern Occidental Mindoro; southern Oriental Mindoro; Palawan, including Calamian and Cuyo groups of islands; Guimaras, Iloilo, Capiz, Aklan, and Antique.

Regulated whale shark-watching policy put on hold

THE implementation of the new rules and regulations for whale shark-watching in Oslob, Cebu has been put on hold after local tourism workers and operators complained that the policy favors city-based tour guides. Cebu Vice Governor Agnes A. Magpale told reporters on Tuesday that she found the complaints “valid” and so she ordered that a “status quo” be maintained until further discussions are undertaken. In early Oct., following a consultative meeting, Oslob town stakeholders agreed to reduce the number of daily tourists who can go whale shark-watching to 800 from 1,000 as part of efforts to balance environmental protection with economic gains. Last week, however, Oslob Mayor Jose C. Tumulak, Jr. informed Cebu Governor Hilario P. Davide III that the new scheme has proven disadvantageous to local operators. — The Freeman

Cebu’s 10-year provincial waste management plan gets NSWMC nod

THE NATIONAL Solid Waste Management Commission (NSWMC) has recently approved the Solid Waste Management (SWM) Plan of the Cebu provincial government, which would be in effect until 2027. In a statement, the provincial government said the SWM Plan includes the establishment of a material recovery facility in every barangay and city level, composting of biodegradable waste to be used as organic fertilizers, recycling of non-biodegradable waste, wastes segregation and construction of sanitary landfill. Cebu Provincial Environment and Natural Resources Office Chief Jason P. Lozano said the plan serves as a guide for all localities in helping mitigate “the cruel effects of unregulated garbage that was among the causes of flooding in urban areas.” The provincial government provides assistance for planning and implementation, but Mr. Lozano stressed that people in the communities are the main stakeholders to a successful waste management program. “We are urging the public to cooperate with barangay officials regarding the garbage collection, because no one else can help them best but the people,” he said.

GenSan’s P35-M waste facility open for lessons to LGUs

GENERAL SANTOS City’s Central Materials Recovery Facility (CMRF), which can process up to 40 tons of waste per day, is open for visits by representatives of other local government units (LGUs), where they can pick up lessons on waste management. Mayor Ronnel C. Rivera, in a post on his Facebook page, said he wants to make GenSan City “a model for environmental and waste management for other LGUs.” The P35 million CMRF, located at the sanitary landfill in Barangay Sinawal, was built through a grant from the United Nations Industrial Development Organization (UNIDO) through the UN Development Programme-Global Environmental Finance (UNDP-GEF). UNIDO officials visited the site on Nov. 19. Environmental Management Bureau Region 12 Director Ma. Socorro C. Lanto said they are ready to assist LGUs that want to visit the GenSan CMRF, considered as the country’s first large-scale mechanized MRF. It can convert plastics into materials for concrete pavers and other by-products, bio-waste into organic fertilizer, and other sorted waste into materials with economic values. Mr. Rivera said the CMRF was designed by Filipino inventor and engineer, Bernabe M. Archeta.

Medical tourism, education seen key to Davao-Manado route reopening

DAVAO CITY — Medical tourism and nursing education in Davao City could spur the reopening of direct flights to and from Manado, the capital of Indonesian province North Sulawesi, officials said.
Indonesian Attaché Ely Syafitri Handayani, in a media forum, said Philippine Airlines (PAL) has already conducted a feasibility study on the route and is considering flights through its subsidiary PAL Express.
Endah R. Yuliarti Farry, consul for information and socio cultural affairs of the Consulate General of the Republic of Indonesia in Davao City, said one of the potential markets for the flights are Indonesian students who want to study nursing in the city.
“… (The) Philippines has a high quality in terms of education, in terms of nursing program. Or maybe they (Indonesian students) want to conduct international community service or on-the-job training in Davao City,” Ms. Farry said.
Davao City Chamber of Commerce and Industry Inc. (DCCCII) President Arturo M. Milan, in a separate interview, said the reopening of the Davao-Manado flights could also bring in Indonesian medical tourists.
“We need to be very strategic, for example Manado or North Sulawesi is nearer to Davao in terms of medical tourism rather than… Jakarta. That is the one that we should do on the medical tourism because we have more facilities in Davao than in Manado,” Mr. Milan said.
For passengers from the Davao side, Mr. Milan said tourism to Manado and onwards to other destinations such as Bali and Palau could be developed.
“I hope they (PAL) will also consider not only Manado but other destinations which are more attractive, because this is a missionary route, meaning it has to be developed. It will take some time. For me, they have to connect to Bali because it is a tourist destination in Indonesia… Tourists who want to go to Palau, they can pass via Manado-Davao route,” he said.
“On the business side, it is a long shot for me because we have common products. If ever there is one potential, it is tourism. It’s not really on trading but purely tourism,” he added.
The Davao-Manado route was previously served by several Indonesian airlines, including Wings Air, and two defunct operators, Bouraq Indonesia Airlines and Merpati Airlines. — Maya M. Padillo

Nation at a Glance — (11/22/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Philippine LGBT Chamber of Commerce to improve poor corporate SOGIE-inclusivity

Ranking among the top nations in terms of women empowerment, the Philippines has a global reputation for gender inclusivity. Similarly, one look at the local media landscape reveals how prominently LGBTQIA+ personalities are featured in Filipino entertainment. It must stand to reason then that the Philippines is a universally inclusive society.
Or does it?
A new study commissioned by the Philippine LGBT Chamber of Commerce revealed that, in the workplace, policies are often anything but inclusive. According to the first Philippine Corporate SOGIE (sexual orientation, gender identity and expression) Diversity and Inclusiveness Index, only 17 out of the 100 companies covered by the study have any policies, none of which homegrown.
Conducted by Cogencia Consulting, Inc. and published on Nov. 7, the study revealed that only 17% of the respondents — all foreign-headquartered companies in the business process outsourcing sector —  have anti-discrimination policies explicitly referencing measures to counteract gender discrimination.
These policies refer to explicitly prohibiting specific actions such as misgendering, “outing” (publicizing an employee’s SOGIE without their consent), and making use of slurs against LGBTQIA+ employees.
Among those 17 companies, only 10 actually implemented ways to track SOGIE inclusiveness educational programs. This means a vast majority of respondents had no means to actively support anti-discrimination efforts.
Brian U. Tenorio, the Chamber’s founder and president, noted that the study was not meant to represent the full reality of workplaces nationwide. Local companies aren’t hostile to SOGIE-inclusivity efforts, he said. But there is a general lack of concern for providing equal opportunities to all employees.
“[I think it’s safe to say] Philippine organizations do not accept or tolerate the LGBT. It’s unfortunate to say,” he said.

Carrot and stick

Filed in 2000, the SOGIE Equality Bill was meant to elevate the lives of LGBTQIA+ workers by establishing a legislative framework for anti-discrimination in the country. It was passed all the way through its third and final reading in the House of Representatives, but ultimately stalled in the Senate, where it sits dormant to this day.
“In the absence of laws, we cannot really demand the companies to be inclusive…. What we can do now is … to sort of incentivize the local companies and celebrate the ones that are doing the best practice out there,” said Evan A. Tan, vice chair for business and industry at the Philippine LGBT Chamber of Commerce.
“We can present data, we can present this (the SOGIE Index), we can show them that there [may be] economic loss,” he said. “[B]ut then again, if the company says ‘I don’t care,’ then there’s nothing we can do about that.”
While there are currently no local reports on how diversity impacts a company’s profit, the Chamber pointed to studies conducted overseas showing how diversity in various forms helps elevate a company’s productivity and profitability. Tenorio pointed out that diversity is an “intangible asset” and not a liability for companies.
“The more diverse [the companies] are, it [doesn’t mean they’re] gonna spend more money,” Tenorio said, referring to the claims that efforts to improve diversity in the workplace such as gender-neutral restrooms and programs.
“[W]hat it means, is you’re going to be more progressive and profitable in the long run.”
Companies with non-progressive policies won’t attract the best talents, Tan said. By virtue of their exclusivity, they shut out potential candidates, limiting their talent pools from the get-go.
“It’s safe to assume these companies suffer when they are not inclusive. That’s when you don’t attract the best talent …  [because] you’re kind of, separating them and they’re unable to contribute well in their organization. Definitely, there’s an impact,” Tan said.

Zero to 100

Starting next year, the Chamber will be embarking on a campaign to promote SOGIE-inclusivity among Philippine companies — starting with the 100 it surveyed in its study.
On the same day it published its report, the chamber launched #ZEROto100PH, an umbrella campaign for the projects the group will undertake next year. These include corporate educational programs to promote SOGIE-inclusivity efforts.
Having already piloted the program with one company, Tan says the Chamber is ready to scale up its operations with more volunteers. By the end of 2019, they hope to train their entire first batch of 100 companies.
With the lack of national legislation to enforce SOGIE-inclusivity, Tan says he understands that the road ahead is long yet. But progress is progress, and any steps towards full inclusivity are victories, no matter how small.
“I don’t think 100 companies will be able to be 100 percent inclusive [right away],” Tan said. “But [these are] actionable steps, baby steps towards achieving that, especially for the ones that have zero inclusion in their policies or practices.”

Tax amnesty, alcohol levy hike advance

A PLANNED general tax amnesty stepped closer to offer as the House of Representatives on Tuesday approved the measure on third and final reading a day after the Senate did the same, while a proposal to increase the tax on alcohol products bagged committee approval.
House Bill 8554, or the proposed “Tax Amnesty Act of 2018,” covers estate tax and general tax liabilities for taxable years up to 2017.
House Ways and Means Committee Chairperson Estrellita B. Suansing of Nueva Ecija’s 1st district had said during her sponsorship speech on Nov. 14 that the measure is projected to add P114.8 billion in revenues. The program, however, is designed more to bring more tax delinquents into the fold, thereby expanding the country’s tax base.
The bill will grant an estate tax amnesty at a six percent rate based on a decedent’s net estate, provided that legal heirs apply within two years from effectivity of the measure’s implementing rules and regulations. The general tax amnesty provision imposes a two percent rate based on an applicant’s total assets as of Dec. 2017. Interested parties will have a year from start of the program to apply.
The immunities and privileges under the amnesty package, however, will not be applied should it be proven that the declared estate value and total assets are understated by at least 30%.
Further, the bill will grant an amnesty on delinquencies under various stages of prosecution. Ms. Suansing had said in the same speech that this move intends to “decongest the dockets of BIR (Bureau of Internal Revenue), Regional Trial Courts, Court of Tax Appeals and the Supreme Court.”
The measure provides that tax assessments which have become final and executory; tax cases that are subject of final and executory judgment by courts; and pending tax evasion cases will have amnesty rates of 40%, 50% and 60%, respectively.
ALCOHOL TAX
Also on Tuesday, the House Ways and Means Committee approved its version of a tax reform that will raise the excise tax of alcohol products, which the Department of Finance (DoF) said will contribute just P7.8 billion in revenues.
“Our initial estimate on the revenue arising from the changes to the House bills on alcohol, in total for 2019, from the original P32 billion, we estimate that the substitute bill that is emerging is going to generate only P7.8 billion, that is 24% of the original,” Finance Undersecretary Karl Kendrick T. Chua told lawmakers in the committee.
He also noted that by 2022, the reform will yield collections of P60 billion, instead of the P173 billion projected for the original proposal the department had submitted to Congress.
The unnumbered substitute bill proposed that, effective Jan. 2019, distilled spirits will be levied a specific tax rate of P30 per proof liter, in addition to a 22% ad valorem tax of net retail price (NRP) per proof, excluding the excise tax and the value-added tax. The specific tax rate will be increased by P5 per year until 2022 and by seven percent every year beginning 2023.
This compares to the existing tax on distilled spirits that consists of a 20% ad valorem tax on NRP per proof and a specific tax per proof liter of P23.40 in 2019.
Moreover, sparkling wines will have an ad valorem rate of 15% based on NRP per liter, which is currently not imposed, and a P650 specific tax.
For still wines and carbonated wines containing 14% alcohol by volume, the excise tax will be P40 from P37.90 currently; whereas those containing more than 14%, the rate will be increased to P80 from P75.90.
The excise tax for sparkling and still wines will increase by seven percent every year, starting 2020.
For fermented liquors, the excise tax will increase to P28 from P25.42 in 2019, to P32 in 2020, P34 in 2021 and P36 in 2022. Rates will rise by seven percent every year starting 2023. — C. A. Tadalan

2019 budget bags final reading OK in House

THE HOUSE of Representatives on Tuesday approved on third reading the proposed P3.757-trillion national budget for 2019.
With 196 affirmative and eight negative votes, House Bill No. 8169, or the “2019 Fiscal Year General Appropriations Bill,” secured final-reading approval ahead of a Nov. 28 deadline, which Senate leaders said on Monday risks leading to a reenacted 2018 budget since senators will not have enough time to examine the spending plan for questionable insertions before Congress adjourns for its Dec. 15-Jan. 13, 2019 Christmas-New Year break.
“We’ll pass it today and then transmit to the Senate. So walang pagdududa, walang haka-haka na magkakaroon tayo ng (there should be no doubt, no speculation that we will have a) reenacted budget,” Majority Leader Rolando G. Andaya, Jr. of Camarines Sur’s 1st district had said in a press briefing earlier in the day.
’Yung nakita niyo sa diyaryo na Nov. 28 (The Nov. 28 third-reading approval deadline that you have read in the news) was the worst-case scenario which we have agreed upon with the Senate Finance Committee.”
The new budget gives state agencies a year to complete procurement of projects and other items in order to ensure they keep up with the spending program. — C. A. Tadalan

IMD World Talent Ranking 2018

THE PHILIPPINES’ ability to develop, attract and retain highly skilled professionals worsened in 2018 due to a persistent job-skills mismatch despite increasing investments in education, according to the annual survey of Switzerland-based business school International Institute for Management Development’s (IMD) research arm. Read the full story.
IMD World Talent Ranking 2018

Study finds Philippines’ talent competitiveness eroded

By Elijah Joseph C. Tubayan
Reporter
THE PHILIPPINES’ ability to develop, attract and retain highly skilled professionals worsened in 2018 due to a persistent job-skills mismatch despite increasing investments in education, according to the annual survey of Switzerland-based business school International Institute for Management Development’s (IMD) research arm.
The Philippines placed 55th out of 63 economies in the IMD World Competitiveness Center’s World Talent Ranking 2018 report published on Tuesday, down 10 rungs from 45th in 2017.
IMD World Talent Ranking 2018
The study takes into account three main factors to determine countries’ ranking. The investment and development factor measures resources used to cultivate homegrown human capital, the appeal factor evaluates the extent to which a country attracts and retains foreign and local talent, while the readiness factor looks at the quality of skills and competencies of a country’s labor force.
The report attributed the Philippines’ fall in rank to the “sharp drop” in the readiness category to the 37th rank in 2018 from 11th last year.
“This change is driven by a marked deterioration in every criterion related to the business community’s perceptions on the quality of education, as well as a decline in labor force quality,” the report explained.
The Philippines likewise declined to 38th rank from 34th last year in the appeal factor, but inched up in terms of investment and development to 62nd from the bottom spot last year.
Responding to queries via e-mail, IMD World Competitiveness Center director Arturo Bris noted that the Philippines’ labor force is not as equipped with skills that firms are looking for.
“It is true that Philippines is making progress in managing its talent pool, and indeed it is one of the two countries in SE (Southeast) Asia (together with Malaysia) which has improved the government investment in education as a percent of GDP (gross domestic product). However, in 2018 Philippines has witnessed a deterioration of its ability to provide the economy with the skills needed, which points out to a mismatch between the school curriculums and the demands of companies,” Mr. Bris said.
“The country needs to continue investing more and more in education. It currently invests 3.07% of GDP, but it is far from the world average of 4.7%. It also needs to make education more adapted to the economy. Which are the skills that the economy needs? Do companies partner with the public sector to help design curriculums?”
The report cited the Philippines’ overall strengths such as employee training, effective personal income tax rate, skilled labor, competent senior managers and language skills.
At the same time, it cited the country’s top weaknesses in the areas of total public expenditure on education, pupil-teacher ratio in primary and secondary schools, remuneration in service professions and labor force growth.
“If, as all the other countries in the region, Philippines facilitates the access to companies to foreign talent, and makes the country more attractive to foreigners, it will consequently make the domestic talent pool more competitive as well,” said Mr. Bris.

UA&P sees GDP growth picking up next year

By Melissa Luz T. Lopez
Senior Reporter
THE PHILIPPINE ECONOMY could grow faster in 2019 on the back of strong investments and spending related to the midterm elections, while slower inflation should help prod household consumption.
Economists at the University of Asia & the Pacific (UA&P) said in a briefing yesterday that faster gross domestic product (GDP) growth can be expected next year, together with a recovery of financial markets from the current slump.
UA&P professor Victor A. Abola said economic growth will rebound to above seven percent in the coming quarters as infrastructure spending remains “on track” and sustains above 20% year-on-year increases.
“I think growth can accelerate especially in light of the elections, which usually add 0.1-0.2% to GDP. Growth will be led again by the industrial sector, especially construction and manufacturing,” Mr. Abola said in the UA&P Year-end Business Economics Briefing.
The economics expert said Philippine gross domestic product (GDP) will expand by 6.8% in 2019, faster than the 6.5% expected this year although still short of the government’s 7-8% target.
The Philippine economy has so far grown by 6.3% from January-September.
Growth will remain investment-led while manufacturing and exports have also recovered over the past few months, Mr. Abola added. An expected rebound in the mining sector may also support greater domestic activity, following the recent decision of Environment Secretary Roy L. Cimatu to reopen some mine sites shut down in 2017.
Household spending will likewise lend a boost to overall growth after easing in the face of higher prices of consumer goods. Mr. Abola said inflation has peaked at 6.7% in September and October, and will drop sharply particularly during the second half of 2019.
From 5.2% this year, UA&P sees inflation lower at 4.3% in 2019, although still above the central bank’s 2-4% target band.
Food prices have stabilized or fallen, while oil prices are down by roughly 25% percent from October’s peak. An appreciating peso would also give peace to importers, and will support positive investor sentiment towards the Philippines.
FOREIGN INVESTMENTS
UA&P economists said loosening restrictions on foreign ownership and keeping tax incentives for companies are needed to keep investments coming in.
“My proposal is don’t scare investors. Do it on tax administration, and use the political power of President Duterte to scare off [tax evaders],” Mr. Abola said, referring to the second tax reform package proposed by the Department of Finance (DoF).
Awaiting Senate action is the Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) Act, which was passed by the House of Representatives in September.
The measure seeks to gradually reduce the corporate income tax rate to 20% from the current 30% by two percentage points every other year starting 2021, while fiscal perks will be revamped to a one-size-fits-all scheme for incentives capped at a certain number of years. This is to plug over P300 billion in annual foregone revenues, the DoF said.
“If it were true that our tax incentives are so attractive and we’re giving away so much, how come we are not getting foreign investors in troves? We have high costs, and we have to offset that by incentives,” Mr. Abola added.
Economist and Constitutional framer Bernardo M. Villegas said the bill is dead in the water due to little time left for Congress sessions and as lawmakers are cool to the measure.
In the same forum, World Bank senior economist Rong Qian said easing foreign ownership limits will improve competition and productivity, which in turn will support faster GDP growth.
The economy needs to grow by at least 6.5% annually over the next 22 years to realize the government’s goal of ending poverty by 2040, Ms. Qian added.
Mr. Villegas noted that this is doable for the Philippines, drawing confidence from the speedy rollout of infrastructure projects. He noted that big-ticket projects initiated by local governments could even boost GDP growth beyond the state’s 7-8% annual goal.
For financial markets, the economists expect the peso to end at P52.80 versus the dollar this year and to weaken to P54.20 in 2019. The bellwether Philippine Stock Exchange index is also projected to recover to the 8,100 level in 2019, up 12% from the expected 7,300 level this year.