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FEF calls for agri sector upgrades to ease inflation

AN organization of retired economic managers said the government needs to make upgrades to the agriculture sector in order to ease inflation.
“Low agricultural productivity and anemic agricultural growth will increase the risk of a return to high inflation and will drag down the economy as it did in 2018,” the Foundation for Economic Freedom (FEF) said in a statement on Monday.
The agriculture sector posted output growth of 0.56% in 2018 due to adverse weather and inadequate irrigation.
However, the FEF said the drop in the agriculture sector’s growth should not be blamed on the weather as other ASEAN countries also experience the same disruptions.
“Climate change and weather disturbances cannot be blamed because our ASEAN neighbors are posting healthy growth rates despite similar weather disturbances,” FEF said.
The Philippine Statistics Authority said Tuesday, that inflation declined to 4.4% in January from December’s 5.1%.
FEF, whose fellows include technocrats like former Prime Minister Cesar E. A. Virata and Gerardo P. Sicat, the first director-general of the National Economic and Development Authority (NEDA), noted that poor agricultural activity will also drag down the economy.
“High food costs translate into high wages and uncompetitiveness of our manufacturing and export sectors. Agricultural products also serve as inputs into food manufacturing,” the FEF said.
“Therefore, high agricultural input costs mean high manufacturing costs and poor competitiveness.”
To enhance agricultural productivity, FEF proposed the amendment of the Comprehensive Agrarian Reform Law “to reverse the fragmentation of farmlands, make CARP lands bankable, and enable efficient farmers to expand beyond the legal ownership limit of five hectares.”
The FEF also noted that there should be a budget increase for research into climate-change resistant crops.
The group also proposed to liberalize sugar imports in order to force the sugar industry to become more competitive and to lower the input costs of the food export manufacturing sector.
The FEF also called for the proper use of the P10 billion competitiveness fund for rice farmers under the Rice Tariffication Law to increase their productivity.
FEF added that the government should make rural infrastructure a significant component of its flagship construction program and attract more foreign investment in shipping and ports to lower logistics costs for farmers. — Vince Angelo C. Ferreras

PAGCOR gaming revenue rises 18.3% in 2018

PAGCOR logo
THE Philippine Amusement and Gaming Corp. (PAGCOR) said revenue rose 18.3% to P67.85 billion in 2018.
According to its statement of comprehensive income posted on its website, PAGCOR said income from gaming operations in 2018 was P67.85 billion, against the year-earlier P57.34 billion.
Meanwhile, PAGCOR’s net profit rose 536% to P31.49 billion, boosted by a one-time gain.
PAGCOR President and Chief Operating Officer Alfredo C. Lim said net profit in the first half received a boost from the sale of a 16-hectare site in Entertainment City for P37.3 billion to Bloomberry Resorts Corp.
“Because of the sale of the property and the increase in revenue in our license fees and casino operations, we are exceeding our target,” Mr. Lim told reporters in August 2018.
“In [the] Bloomberry [deal], we made a lot of money there because we bought that for so much only and yet we were able to sell it at P37 billion, plus the expenses were shouldered by the buyer.”
Bloomberry is the owner and operator of Solaire Resort & Casino in Parañaque.
Overall, PAGCOR’s assets at the end of 2018 rose to P75.71 billion from P38.62 billion reported a year earlier.
At deadline time, PAGCOR had not replied to a request for further comment.
Last week, PAGCOR Chairman and Chief Executive Officer Andrea D. Domingo said in a Bloomberg report that she will ask President Rodrigo R. Duterte to relax a ban on new casino licenses as the country is losing out on opportunities amid a gaming boom in Asia.
In August, Mr. Duterte said there will be no more casinos apart from the current establishments after sacking officials of Nayong Filipino Foundation and shelving a $1.5-billion casino project. — Karl Angelo N. Vidal

Poe says Mislatel franchise validity up to courts

SENATOR Grace S. Poe-Llamanzares on Monday sponsored to the plenary the House concurrent resolution approving the transfer of controlling interest in the Mindanao Islamic Telephone Company, Inc.’s (Mislatel) to the Mislatel consortium.
House Concurrent Resolution No. 23, which the House of Representatives adopted on Dec. 12, grants the transfer of controlling interest in Mislatel to Davao-based businessman Dennis A. Uy’s Udenna Corp. and Chelsea Logistics Holdings, Corp., as well as foreign partner China Telecommunications Corp. (China Telecom).
In her sponsorship speech, Ms. Poe-Llamanzares, who chairs the Senate committee on public services, said the public should be given the chance to experience better telecommunications service by allowing the government to complete its selection process for the industry’s so-called third player.
“I stand here today to sponsor House Concurrent Resolution 23 to be considered by the collective wisdom of the Senate and all its members. Regardless of the outcome of House Concurrent Resolution 23, the House and the Senate will never abdicate their powers as regards the franchises they have granted, will be granting, and will be renewing or not renewing,” she said.
“There are just a few things that we need to remember here, Mr. President; if Mislatel fails to deliver on its promises, it is going to lose its bond, and will also lose a big chunk of its capital expenditure. It is promising that we will have a 27 Mbps (megabits per second) in the first year of operations, it is promising 37% cell reception to underserved areas. Let’s see. This is a challenge for Mislatel, which needs the Senate’s approval,” she added.
Ms. Poe-Llamanzares said in a television interview on Tuesday that the Senate is expected to vote on the House concurrent resolution on Wednesday, Feb. 6.
Changes in Mislatel’s ownership or controlling interests need Congressional approval as prescribed in the legislative franchise granted to the company under Republic Act No. 8627 of 1998. Under the law, Mislatel is allowed to operate for 25 years. Its franchise is set to expire in 2023.
Mislatel has been beset by legal issues over the validity of its franchise. During a Senate hearing, Minority Leader Franklin M. Drilon said the company’s franchise was deemed revoked after it failed to operate within its first year and to inform Congress of the alleged changes of controlling interest back in 2015.
As for the legal issues surrounding Mislatel’s franchise, Ms. Poe-Llamanzares said “interested parties” are allowed to challenge the company’s franchise in the courts.
“As regards the ‘red flags’ and ‘allegations of violations’ against Mislatel, interested parties are never precluded to avail of legal remedies in the regular courts. As a matter of fact, Congress is not even precluded to alter, modify or repeal the franchise granted to Mislatel under RA 8627,” she said in her sponsorship speech.
In the House concurrent resolution, the Senate provided amendments removing any reference to the Mislatel Group as the third player. Ms. Poe-Llamanzares said this was done because the franchise could still be questioned in the courts.
“We’re treating it as a regular franchise because later on someone might go to the court and say Congress recognized Mislatel as the third telco,” she said in a television interview on Tuesday.
The Mislatel consortium has until Feb. 17 to submit its business plan, rollout plan, and authentication of foreign documents as part of the post-qualification process.
After the deadline, the National Telecommunications Commission (NTC) will have 15 calendar days to evaluate the documents and require the consortium to submit its performance security of P25 billion. — Camille A. Aguinaldo

PCC backs solar franchise but wants competition rules in place

THE Philippine Competition Commission (PCC) said it supports attempts by a solar energy company to seek a legislative franchise to operate all over the country, but only after a regulatory framework is in place to guard against anti-competitive practices.
“In brief, the PCC is of the position that there is a need to establish a regulatory framework for the generation, transmission, distribution of electricity through distributable power technologies and minigrid systems that will ensure competitive neutrality and fair competition in the market,” it said in a position paper submitted to the Senate, which is hearing the bill on the franchise.
“PCC believes that such regulatory framework is a prerequisite to the grant of a franchise such as the one sought by Solar Para Sa Bayan Corp. to avoid potential competition concerns,” it said in its paper.
In an interview, Commissioner Johannes Benjamin R. Bernabe said the PCC raised several points on the franchise application.
“First point, we are supportive of the disruptive innovation in technology that is being pushed by Solar Para Sa Bayan,” he said.
“Second point is, because we know that there are many legal issues and even Constitutional issues being raised, we want to make sure that his initiative will not be blocked by other stakeholders,” he added.
House Bill 8179 seeks to grant Solar Para Sa Bayan a franchise to construct, install, establish, operate and maintain distributable power technologies and minigrid systems throughout the Philippines to improve access to sustainable energy. It is for consideration of the Senate on public services and energy committees.
The bill has raised opposition from some sectors in part because the company’s owner, Leandro L. Leviste, is the son of a sitting legislator, Senator Loren B. Legarda.
If passed in its current form, the franchise grants Mr. Leviste authority to put up solar farms and distribute their power output in areas with current franchises held by electric cooperatives.
Electric cooperatives, solar energy system developers, and even big power distribution utilities had opposed the bill, citing among others, unfair competition.
“That’s why we are trying to push for a framework, a legal framework, which will ensure that it will not be questioned in court in the future, and that’s why we’re trying to help the franchise applicant to realize these issues and be able to have an open mind to addressing these issues in the franchise bill,” Mr. Bernabe said.
“For instance, with regard to a lack of sufficient definition and standards on what constitute unserved and underserved areas, that’s one, with regard to the need for clearly identifying what is the scope of activities that they will offer, and third, we want to see some certain competition disciplines embedded,” he added.
He said: “If it is going to be a franchise holder for an area where there is no other entity and then another entity wants to come in the future, that’s such second entity will have the ability to access whatever is generated from the output of Solar Para Sa Bayan.” — Victor V. Saulon

PHL shares seen to climb as inflation slows further

By Arra B. Francia, Reporter
SHARES ARE SEEN to rise on Wednesday following the better than expected inflation reading for the month of January.
The 30-company Philippine Stock Exchange index fell 0.91% or 74.68 points to close at 8,069.48 on Monday, snapping a two-day ascent for the market.
“The slightly better reading should bode well for the market. Buying momentum should continue as investors will be encouraged that this will soon fall closer to the admissible range of 2%-4%,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message following the release of the inflation data on Tuesday.
Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan also noted that the market could firm up on Wednesday on positive news on inflation.
“I think that the market will be up and sustain the rally above 8,000 because of the inverse relationship of inflation to our index. When inflation goes down our index goes up since our economy is consumption drive,” Mr. Tan said in a text message.
The Philippine Statistics Authority reported on Tuesday that headline inflation eased to 4.4% in January from December’s 5.1%. This is the slowest recorded in 10 months since March 2018’s 4.3%.
The January inflation figure is lower than the 4.5% median estimate from a BusinessWorld poll of 12 analysts.
The figure however is still higher than January 2018’s inflation print of 3.4%.
“Also the market will be pricing in the stance of BSP (Bangko Sentral ng Pilipinas) not to raise interest rates since we see the inflation is going down. This is a very positive news for our local bourse,” Mr. Tan added.
The BSP’s Monetary Board will meet on Thursday to review policy rates. A BusinessWorld poll of the same analysts said the Monetary Board will likely keep benchmark rates steady at 4.25-5.25% for its first policy review this year.
Instead of adjusting key interest rates, analysts expect the BSP to first cut the reserve requirement ratio (RRR) of banks.
BSP Governor Nestor A. Espenilla, Jr. earlier said there is scope to pursue further cuts to the 18% RRR for big banks. This forms part of Mr. Espenilla’s long-term goal of bringing down the RRR to single-digit levels when his six-year term as governor ends in 2023.
Local financial markets will reopen on Wednesday following the Chinese New Year holiday.
Meanwhile, major Wall Street indices ended in positive territory on Monday, as investors became optimistic for the prospects of the trade war between the United States and China.
The Dow Jones Industrial Average gained 0.7% or 175.48 points to close at 25,239.37. The S&P 500 index climbed 0.68% or 18.34 points to 2,724.87, while the Nasdaq Composite index jumped 1.15% or 83.67 points to 7,347.54.

Charges vs Jolo bombing suspects up for resolution

By Vann Marlo M. Villegas, Reporter
COMPLAINTS filed by Sulu police against five suspected members of the terrorist group Abu Sayyaf have been submitted for resolution, an official of the Department of Justice (DoJ) said late Monday.
“The prosecutor has terminated the inquest proceedings and deemed submitted for resolution the case against the five (5) arrested suspects in the (Jan. 27) Jolo Cathedral bombing,” DoJ Undersecretary and Spokesperson Markk L. Perete told reporters in a text message late Monday.
The five suspects who surrendered to authorities over the weekend are Mukamma L. Pae (also known as Kammah L. Pae), Albaji Kisae Gadjali, Rajan Bakil Gadjali, Kaisar Adjali, and Salit Alih.
Mr. Perete said they are facing charges of multiple murder, multiple frustrated murder and damage to property as filed by the Sulu Police Provincial Office. The complaints were filed at the prosecutors’ office in the province.
He added that seven other identified suspects and several “John and Jane Does” remained at large.
Mr. Pae, whom authorities believed to have assisted an Indonesian couple tagged in the Jan. 27 suicide bombing, was also identified by authorities as a member of the Ajang-Ajang faction of Abu Sayyaf.
He surrendered amid police operations during the weekend.
Philippine National Police Chief Director General Oscar D. Albayalde said in a press conference on Monday that Mr. Pae only admitted to being part the ASG faction but not to being part of the bombing. On the other hand, other suspects pointed to him as the one who aided the Indonesian couple.
Mr. Albayalde said an improvised explosive device and its components were found in Mr. Pae’s house.
Two consecutive bombings in the Cathedral of Our Lady of Mt. Carmel in Jolo, Sulu last Jan. 27 claimed the lives of 23 people and wounded 95 others.

House OK’s bill penalizing owners of properties used in drug trade

A BILL imposing penalties on negligent owners or lessors of properties used in the illegal drug trade hurdled the House of Representatives on third and final reading.
House Bill No. 8909, which further amends the Comprehensive Dangerous Drugs Act of 2002 (Republic Act No. 9165), was approved with 172 affirmative and zero negative votes.
The measure, backed by Speaker Gloria Macapagal-Arroyo, will also introduce new penalties for those found to be in possession of drugs, controlled precursors and essential chemicals, and laboratory equipment used for the drug trade.
If enacted, the bill will subject a negligent owner or lessor of a property used as a laboratory for drug purposes to be sentenced to 6 to 12 years of imprisonment and a fine ranging from P500,000 to P1 million.
In the event the property is used as a den, dive or resort, criminal liability will be extended to the property owner or lessor.
Moreover, the measure will now penalize those in possession of less than 2 grams of illegal drugs with 6 to 12 years of imprisonment and a fine of P50,000 to P200,000.
Currently, Republic Act No. 9165 only penalizes those in possession of 10 grams of opium, morphine, heroin, cocaine, marijuana resin, 50 grams of shabu, and 500 grams of marijuana.
Further, the bill increases membership in the Dangerous Drugs Board to 20 members from the current 17. — C.A. Tadalan

Study finds most Filipinos ‘not fully ready for disasters’

By Arjay L. Balinbin, Reporter
ONLY 36% of Filipino households reported “feeling fully prepared for disasters,” according to a study by the Harvard Humanitarian Initiative (HHI) DisasterNet Philippines of Harvard University.
“Among the 4,368 Filipino households surveyed across the country, 74% were unable to invest in disaster preparedness, mostly due to lack of funds (47.5%) and lack of time (20%). In the Autonomous Region in Muslim Mindanao (ARMM) alone, 92% reported insufficient funds,” the HHI said in a statement on Tuesday, Feb. 5.
The study was conducted from March 10 to April 9, 2017. HHI also said 240 household interviews were conducted in each of the 18 regions of the country, “with oversampling” in the National Capital Region (NCR).
HHI found that “nearly 47% of respondents claimed to have done nothing to prepare for a natural hazard in the last five years” despite campaigns by the government, non government organizations (NGOs), and media.
“Although most respondents claimed to have discussed emergency plans with family members when prompted (83%), most respondents do not have a ‘go-bag’ or emergency kit (82%), and first aid kit (62%).”
On the number of Filipinos insured, HHI said, “Strikingly, very few Filipinos are adequately insured to deal with disasters,” adding that “only 19% claimed to have life insurance, 56% had health or medical insurance, 3% had home insurance, and 2.5% had asset insurance.”
Filipinos living in areas more frequently hit by typhoons “perceived themselves as being more prepared” while the “lowest level of preparedness cited was in Northern Mindanao with only 31%.”
HHI said “52% of residents in Eastern Visayas felt very prepared, with 49% in Bicol, 44% in Western Visayas, and only 32% in the NCR.”
“Similarly, advance discussions on disaster at the household level were high in Bicol, Western Visayas, and Eastern Visayas,” it added.
HHI also said 42% of Filipinos had experienced “significant damage to property, assets and had been displaced from their homes due to a disaster,” and only “22% were confident they would be able to recover.”
Harvard noted that 52% of the assistance that Filipinos received in the aftermath of a disaster was provided by local government units (LGUs), but only 9% of the population reported receiving housing and relocation support.
“Temporary employment and cash-for-work represented a small portion of overall aid received by Filipinos with the exception of those living in Eastern Visayas (20%) and Western Visayas (17%),” HHI said.
HHI Resilient Communities Program Director Vincenzo Bollettino said the study “offers important insights into the way Filipinos understand and prepare for a variety of natural hazards that they face.”
“The first nationwide survey of its kind in the Philippines, the data offer a rich look into material levels of preparedness, Filipinos’ views on climate change and its anticipated impacts and offers unique reflections on Filipinos’ expectations of who is responsible for disaster response,” he added.
He said further that “as an archipelago located in the Pacific Rim of Fire, the Philippines is exposed to an array of natural hazards.”
“How Filipinos understand their own exposure to these hazards and the steps they take to cope with them is crucial to formulating relevant national policy and planning.”

Bilateral training

The US Pacific Air Force and the Philippine Air Force (PAF) marked the close of the Bilateral Air Contingent Exercise-Philippines (BACE-P) at the Cesar Basa Air Base in Pampanga, conducted from Jan. 21 to Feb. 1.

19 new missionary routes offered to shipping companies

THE MARITIME Industry Authority (MARINA) has called on shipping firms to consider serving the 19 newly-opened missionary routes to help improve domestic travel. In a statement on Tuesday, MARINA said these routes are part of the Road RoRo Terminal System (RRTS), “a seamless stretch of roads and ports to improve inter-island transportation, enhance tourism, and expand regional markets, among others.” A missionary route provides a link to RoRo-capable ports “that have no existing shipping service due to geographic limitation and/or absence of market viability.” Service providers get incentives such as investment protection for five years and 50% discount on the regular fees of all applications and renewal of ship documents, licenses, certificates, and permits. The new RoRo missionary routes are:
1) Basco, Batanes — Currimao, Ilocos Norte
2) Batangas City — San Jose, Occidental Mindoro
3) San Juan, Batangas — Abra de Ilog, Occidental Mindoro
4) Real, Quezon — Polillo Island, Quezon
5) Lucena, Quezon — Odiongan, Romblon
6) Lucena, Quezon — Buyabod, Marinduque
7) Lucena, Quezon — Romblon, Romblon
8) Lucena, Quezon — Masbate City
9) Maasin, Southern Leyte — Ubay, Bohol
10) San Narciso, Quezon — San Pascual, Masbate
11) Pantao, Albay — San Pascual, Masbate
12) Calbayog City, Samar — Cataingan, Masbate
13) Taytay, Palawan — Cuyo, Palawan
14) Cuyo, Palawan — San Jose de Buenavista, Antique
15) Oslob, Cebu — Dumaguete, Negros Oriental
16) Punta Engano, Mactan Island, Cebu — Jetafe, Bohol
17) Poro, Camotes, Cebu — Isabel, Leyte
18) Lipata, Surigao del Norte — Dapa, Surigao del Norte
19) Siaton, Negros Oriental — Dipolog City

Welcome, Year of the Earth Boar

People watch the fireworks display at the Lucky Chinatown Mall in Manila to welcome the new lunar year.

Iloilo City wants better port facilities for cruise ship tourism

AFTER HOSTING almost 800 Japanese tourists who came via the MV Pacific Venus vessel for the Dinagyang Festival weekend last Jan. 25-27, Iloilo City is now planning to undertake improvements in its port facilities to attract more cruise ships.
“I talked with the Philippine Ports Authority (PPA) if we can improve our docking facility because it’s meant for cargo and not for people” Iloilo City Mayor Jose S. Espinosa III said in an interview after the annual festival.
The Japanese cruise ship docked at the Loboc Wharf of the Iloilo International Port in Lapuz, which mainly serves as one of the main cargo docks for both Iloilo province and the Western Visayas region.
Mr. Espinosa said aside from improving the docking facility, a passenger terminal would also be needed.
“We are planning to establish a terminal for cruise ship diri sa may (here at the) Fort San Pedro,” he said.
The mayor said he invited and met up with the captain of the MV Pacific Venus during their stop to help in promoting the city.
“I hope more cruise ship will be coming because I invited the captain of the cruise ship and it would be a big help if he could relay to other cruise ship captains that we are a great city,” said Mr. Espinosa, speaking in mixed Visayan and English.
The Japanese tourists, who were mostly senior citizens and persons with disabilities (PWDs), arrived morning of Jan. 26 and witnessed the Fiesta Pilipinas Kasadyahan cultural competition and the Dagyang tribes dance competition at the new Dinagyang Grandstand on Jan 27.
They also visited sites at the old and modern parts of the city, including the Molo Mansion, Casa Mariquit, Jaro Cathedral, the riverside Esplanade, and the Iloilo Business Park.
Junel Ann T. Divinagracia, head of the Iloilo City Tourism and Development Office, said the cruise stop was perfectly timed for the festivities that highlight Ilonggo culture and heritage.
“Their visit during Dinagyang was very timely because we were able to showcase our culture. It’s also very important because it’s a maiden voyage so we need to make a very good impression so we can realize our dream of becoming a cruise ship destination in Western Visayas,” she said.
In 2015, the Department of Tourism-Western Visayas office (DoT-6) was already pushing for the development of more cruise ship stops in the region given the growing popularity of Boracay as a port of call.
DoT-6 has been envisioning a cruise ship circuit in the region, which is composed of the entire Panay and surrounding smaller islands as well as the western half of Negros island.
DoT Regional Director Helen J. Catalbas then said, “Western Visayas is composed of many islands and ports that if promoted, can also be a host to cruise ships coming from all over the world.” — Emme Rose S. Santiagudo

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