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How to start down a path to success

By Bjorn Biel M. BeltranSpecial Features Writer

Success is never a straightforward path. Often, especially when just starting out, one can find many seemingly insurmountable obstacles along the way, forcing one to come up with a way to overcome them, to find a way around them, or to consider taking a new path altogether.

Even today’s top executives, leaders in their respective fields and heads of the country’s biggest business organizations, have been in situations wherein things did not go as planned.

Some 30 years ago, a student by the name of Eduardo V. Francisco had been denied a student visa by the United States (US), which meant that he would not be able to pursue his MBA at the Wharton School at the University of Pennsylvania. As his family had not been very well-off, they could not provide the necessary bank records to prove that he had adequate funds to finance his stay.

Had he given up right there, things might have turned out very differently for him. But luckily, his grand aunt who knew a US embassy official then had been willing to vouch for him, sending the official a letter assuring them of his pure intentions. One interview and a good deal of promising later, Mr. Francisco was on his way to finish his degree, which gave him the momentum to get him where he is today.

Currently, Mr. Francisco heads BDO Capital & Investment Corp. as its president, and serves as chairman of the International Association of Financial Executives Institutes (IAFEI).

Similarly, at the start of her career, Rizalina G. Mantaring — who now serves as president of the Management Association of the Philippines, and chairman of Sun Life Financial Philippine Holding Company, Inc. — was passed over for a promotion at her first job due to her supposed inexperience, despite consistently achieving top marks in her education. She was chief programmer — a fairly new position at the time — at Computer Information Systems Inc.’s Technical Advisory Office and had just returned to the Philippines after getting her MS from the State University of New York.

“I felt really down when the head of the division spoke with me,” she said in an e-mail to BusinessWorld.

“I had been a very good student — topped my batch in grade school and high school, graduated with honors in college, and had the highest grades in my class in graduate school, even topping the comprehensive exams. Then in my first job I failed to meet the standards required for promotion.”

Knowledge and skills are good, but adaptability is key

It was then that Ms. Mantaring learned that the workplace is a different environment from school and that she had to learn how to adapt accordingly or she will be left behind.

“In school, if you studied well you got good grades, and it was pretty structured and well-defined. In the office, relationships are more complex, you have to understand undertones and read between the lines. Then you realize that effort does not necessarily equal results,” she said.

“It was a bit scary and daunting [at first]. As a fresh grad, you would question what you learned and ask if it was enough. Of course, I was raring to make my mark but you had the usual jitters,” Mr. Francisco told BusinessWorld in an e-mail.

Atty. Eusebio V. Tan, president of Financial Executives Institute of the Philippines (FINEX) and of counsel at ACCRALAW (Angara Abello Concepcion Regala & Cruz Law Offices), agreed. Like his fellow law school graduates, he was at a loss at how law practice was actually conducted or how law firms operated, and he had to learn what he needed as he went.

“In those days, we young lawyers had to “sink or swim” — we were given all sorts of tasks in the different and various areas of law practice, and we were expected to perform well and do a good job in whatever project or case we were assigned to,” he said in an e-mail to BusinessWorld.

So learn to swim he did. To court success, it seems, one not only must have the adaptability and cleverness to learn the finer details of one’s work, but also the diligence and dedication to keep delivering good results consistently.

Mr. Tan later had a hand in many prominent cases and projects for ACCRALAW, which included devising a corporate structure for the first McDonald’s restaurant in the Philippines, the privatization of the operations of the Metropolitan Waterworks and Sewerage System, and drafting, and assisting in the passage of, Republic Act No. 10641 (“R.A. No. 10641”), entitled “An Act Allowing the Full Entry of Foreign Banks in the Philippines.”

“It would have been better if, even as a law student, I already had a clear understanding of what a lawyer actually does and how a law firm is actually managed and operated. Today, we accept a few law students as apprentices or interns into our firm. They normally spend about 2 or 3 months working with us, with the hope that, during that short stint with us, they will be exposed to, and learn, how legal services are actually rendered and how a professional law firm is operated and managed.”

There are benefits and dangers to hard work

In one litigation case, Mr. Tan was able to get a vital witness for the party on the opposing side to completely reverse her testimony on cross-examination, to the benefit of their client — a dramatic turnaround that was usually reserved for movies and TV shows.

“I thought that this could happen only in the movies, but this experience early on in my career proved that good preparation and hard work would lead to winning cases and success in other projects,” he said.

“I learned that, with enough preparation and hard work, a lawyer will be able to find an appropriate solution for even the most difficult problem that a client is faced with. Moreover, with enough imagination and analysis, a solution that is ‘out of the box’ or that would not normally be thought of, could eventually be arrived at to address a client’s requirements.”

Talking about his own hardships and experiences early in his career, Mr. Francisco recalled the drastic measures he had to take when he was working at SGV & Co. simply to meet deadlines.

“There were assignments we had to be on the night shift as we needed access to computers of the clients. There were times we lived out of suitcases in various cities. There were also no showers in SGV then but during overnight work, I learned to take a bath in the small section where the janitor’s mop was supposed to be washed. We did what it took to finish the job and do it well,” he said.

However, he cautioned against the dangers of having a narrow, single-minded view towards success, and instead advised those who would pursue success to surround themselves with good people whom they can trust and work together with.

“While the new staff were all from good schools with great academic backgrounds, we learned to work well together even if we were all vying for promotions,” Mr. Francisco said.

“I learned to work with different cultures and appreciate different personalities and backgrounds. I learned the value of teamwork and rising up the corporate ladder did not mean having to step over someone,” he added.

Ms. Mantaring expressed the same sentiment, adding that one should “drive the train” if the opportunity presents itself, but never at the expense of one’s team and co-workers.

“When we were doing a large and critical project which was running into delays, one of the vice-presidents sat down with me and said, ‘Do you want to drive the train or ride it?’ It was all about accountability. I decided I would drive the train, which meant no excuses, make things happen, and regardless of whose fault something was, I was accountable,” she said.

“Build a star team, not a team of stars. Hire the best people you can, but make sure they can work well together. You may be brilliant but if no one wants to work with you, how do you get things done? I’ve seen tremendous results when people help each other out and don’t care who gets the credit. In the end, everyone gets the credit.”

Do what is right, even if it hurts you in the short term

Integrity, Ms. Mantaring noted, was perhaps the most important thing to protect when traveling down any career path. While climbing the corporate ladder, future leaders will inevitably come into contact with temptations that would compromise the ideals and values they started with.

“A lesson which has been affirmed over and over by the decisions the company made over the years was on integrity and doing what is right, even if it was painful and cost us large amounts. As I rose through the ranks, I always kept that in mind, and when faced with difficult decisions, we always went back to that — what was the right thing to do?” she said.

“As CEO, I’ve had to make decisions that could have resulted in losing people, losing sales, paying to correct errors we made, etc. But always, we were guided by doing the right thing, even when no one was looking. And invariably, in the long run, it turned out better for the company,” Ms. Mantaring shared.

Because ultimately, the obstacles and hardships that true leaders face during their journey to success will end up teaching them valuable lessons and give them the skills and insights to become the best version of themselves down the road.

“God gave us certain paths to take and gave us challenges to make us stronger and better. I have my share of hardships and pain but those things molded me and helped make me who I am today,” Mr. Francisco said. — with Erika Fortuno-Mioten

What executive talents and companies expect from search firms

By Mark Louis F. FerrolinoSpecial Features Writer

Key executives, among other talents, face the most challenging transition in their careers. As they pursue opportunities outside their current work, they run the risk of exposing themselves at a situation that may compromise their status with their present employers. Here comes the importance of dealing with executive search and recruitment firms who value professionalism, ethics, and accountability, especially these days when competition among industry players continues to intensify.

A survey conducted by member firms of the Philippine Association of Executive Search Professionals, Inc. (PAESPI), an association of search firms formed to help professionalize the executive search business and curb malpractices in the industry, showed that executive talents prefer to deal with search consultants who are knowledgeable, ethical, candid, and discreet.

“These consultants will not only protect the confidentiality of the process. They will be upfront and candid about a candidate’s chances. As added value, they will provide insights as well as pre-interview tips,” the Philippine Executive Search Industry Trends: 2016–2018 revealed.

Ninety-six percent of the executives surveyed in 2018 consider being ethical and having high professional standards as the most important positive of search firms. This is an increase of 14 percentage points from 82% recorded in 2016.

On the corporate clients side, the survey showed that companies who consider being ethical and trustworthy as the most important positive of headhunters jumped to 78% in 2018 from 59% in 2016.

“These two results affirm that we are on the right track. That we have essentially gained traction in our advocacy,” PAESPI President Jun I. Gil told BusinessWorld in an interview, referring to the organization’s push for ethical practices in the executive search industry.

Despite the remarkable progress, however, the survey also showed that the level of “high satisfaction” from the standpoints of executive talents and corporate clients in 2018 remained low, with only 24% and 10%, respectively, were “very satisfied” with executive search firms.

Although there was an improvement from the numbers of “very satisfied” executive talents over the 2016 survey, Mr. Gil noted that this is still considered low because in a three-step rating, “satisfactory” is virtually equivalent to a “fair” grade (good, fair, poor) especially when one considers the many negative verbatim ratings.

The sources of disappointment for executives were largely traceable to lack of process within the search firm, lack of core values such as ethics and customer service, and poorly trained consultants.

According to the 2018 survey, consultants who do not provide feedback on search progress disappoints executive talents the most. The incidence of this failure has worsened from two years ago.

Poor grasp of search specifications continues to be a source of disappointment, as well as having no effort to meet candidates, and openly distributing curriculum vitae (CV) without the permission of the candidates.

“Executive talents value confidentiality. Their CVs should not be submitted to clients without their consent as this is a violation of the Data Privacy Act and runs counter ethical practices,” the PAESPI survey said.

For companies, on the other hand, most of the shortcomings were due to lack of disciplined process, exacerbated by ill-trained consultants; and the absence of core values, which has led to unethical and predatory practices such as poaching from own clients.

To help professionalize the search industry, Mr. Gil said that executive talents and corporate clients should only deal with firms with a search process, verifiable track record, and compliance with the Data Privacy Law and a Code of Ethics.

Search firms, he added, must also invest in training quality consultants to be professionals and must build a culture where accountability, ethical practices and professionalism is valued and recognized.

For PAESPI, Mr. Gil said that the organization will continue with its educational program to raise awareness of Code of Ethics and professionalism, while exposing malpractices in the industry.

By and large, the executive search industry is highly competitive, said Mr. Gil. “It is this level of competition that has driven most of these firms into shortcuts, throwing out processes out of the window,” he added.

Despite being affected by technological innovations, Mr. Gil believes that the executive search firm industry will continue to thrive since it has its own niche.

“I have to admit that the industry is affected by technology such as LinkedIn. However, when it comes to a high-level search engagement, there’s no substitute to executive search, and that’s our niche. I don’t think companies will risk using LinkedIn to find top executives. While LinkedIn points to them some — not all — talents, LinkedIn does not assess, interview and recommend, which we do,” Mr. Gil said.

In the years to come, Mr. Gil is optimistic that more search firms will be professional and ethical. As the survey showed, companies and executives are starting to recognize the value of professionalism and ethical practices, he said. 

In closing, Mr. Gil pointed out that companies and executive talents should consider search firms as one of their reliable partners in attaining their goals.

“Executive search is very valuable for companies who want to get executives who can help them grow their business. The executive search firm will look for special executive who will make a lot of difference for the fortune of the company,” Mr. Gil explained. “On the other hand, for the executive talents… the executive search firm opens the door to executive talents to pursue a career with a company giving better opportunities.”

From a macroeconomic perspective, this, according to Mr. Gil, fuels the economy, making sure that there are talents available to run the business. “As the business grows, and so the economy,” he said.

For more information on the PAESPI survey, visit http://www.paespi.org/philippine-executive-search-industry-trends/.

Q1 FDI pledges grow more than threefold

FOREIGN direct investment (FDI) commitments grew more than threefold last quarter, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary data showed approved FDI pledges — which are commitments until capital actually flows in — registered with the country’s seven main investment promotion agencies (IPAs) grew 223.6% year-on-year to P45.98 billion in the first quarter from P14.21 billion in 2018’s first three months.

Investments committed by foreigners and Filipinos totaled P274.2 billion, 48.1% more than the year-ago P185.1 billion.

IPAs are government agencies that by law are authorized to grant tax and non-tax incentives to investors putting up businesses or expanding existing ones in priority sectors.

The seven main IPAs monitored by PSA are the Board of Investments (BoI), Clark Development Corp. (CDC), Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport Area of Bataan (AFAB), BoI-Autonomous Region in Muslim Mindanao (BoI-ARMM) and Cagayan Economic Zone Authority (CEZA).

The first quarter saw the BoI contributing the most to FDI pledges at 67% of the total with P30.82 billion, around 39 times bigger than last year’s P792.8 million.

It was followed by PEZA with a 28.2% share at P12.97 billion, roughly a tenth of a percentage point more than the P12.96 billion in the same period last year.

The rest consisted of SBMA’s P1.563 billion with a 3.4% share, CDC’s P380.3 million (0.8% share), AFAB’s P174.3 million (0.4%) and CEZA’s P79.8 million (0.2%). Data from BoI-ARMM were not available.

SBMA’s P1.56 billion was around 136 times bigger than its previous figure of P11.5 million in the first quarter of 2018, while that of CDC was 11.9% higher than last year.

On the other hand, foreign investment commitments to CEZA were down 23.3% year-on-year.

Foreign investment commitments are different from actual capital inflows tracked by the Bangko Sentral ng Pilipinas (BSP) for balance of payments purposes.

Latest data available by the BSP showed that net FDI stood at $1.36 billion as of February, down 15.7% from $1.61 billion in the same two months in 2018.

Among regions, Central Luzon got the most foreign investment pledges in the first quarter at 48.1% of the total or P22.11 billion. This was around 42 times commitments to the region in the first quarter of 2018.

CALABARZON — the region immediately south of Metro Manila consisting of Cavite, Laguna, Batangas, Rizal and Quezon — was the second biggest contributor with a 34.1% share, while the National Capital Region came in third with 13.7%.

The Netherlands was the biggest source of FDI commitments in the first quarter with P10.1 billion, more than 11 times bigger than a year ago and accounting for 22% of the total for that period. It was followed by Japan and Thailand, pledging P9.43 billion (20.5% share) and P8.47 billion (18.4% share).

Commenting on the results, Union Bank of the Philippines, Inc. (UnionBank) chief economist Ruben Carlo O. Asuncion cited studies such as those by the Asian Development Bank (ADB) that identified the Philippines as “one of the potential beneficiaries” of ongoing trade tensions between the United States and China.

“This uptick in [the first quarter of 2019’s] total approved foreign investments may probably be the initial manifestation of the trade war impact. However, it cannot be taken away as well that the Philippines continues to be one of the preferred foreign investment destinations in Southeast Asia, hence, the threefold increase in approved investments,” Mr. Asuncion said.

The economist was referring to a December 2018 ADB study that said Southeast Asian economies may benefit from the US-China trade war through “trade redirections” towards countries unaffected spillovers from rising tariffs imposed by the two economic superpowers on each others’ goods.

For the first quarter, Chinese investment pledges to the Philippines amounted to P714 million, 69.2% more than the P421.9 million in the first quarter of 2018, while commitments from the United States were valued at P4.68 billion, eight times bigger than the past year’s P558.4 million.

Mr. Asuncion likewise noted the surge of commitments in manufacturing.

“[S]eemingly, the government has been focusing on the development of the manufacturing sector,” he said.

“But it may also be good to point out that the same ADB study that I have mentioned has concluded that for the Philippines, the manufacturing sector stands to gain from the trade conflict between the US and China… I believe that this may be one of the reasons why manufacturing investors have pledged the most recently.”

By industry, bulk of the foreign investment pledges went to manufacturing with a 76.1% share at P35 billion, followed by administrative and support service activities (P3.53 billion) as well as accommodation and food service activities (P2.93 billion).

Sought also for comment, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the Philippines is “poised to post a strong growth trajectory.”

“With the Philippines seen to bounce back from its recent hiccup in terms of growth, caused in part by delays in government spending and the BSP’s aggressive rate hike, more foreign players pledged to make investments to take part in the Philippine growth story,” Mr. Mapa said in a separate e-mail.

“With a young dynamic population, growth prospects remain bright with foreign investors keen to get in on the action. The bulk of investments appear to be geared towards power generation to help address the power supply issues in the country with projections for demand likely robust given the economic growth outlook,” he added.

Both economists are upbeat about growth prospects of investment pledges.

For Mr. Asuncion, there may be more manufacturing investments in the months to come. “As long as the trade war continues, firms, particularly in China, and the different supply chains will try to find to insulate themselves from the fall out of the protracted trade conflict,” Mr. Asuncion said.

For Mr. Mapa, “[i]nvestments that could easily opt to locate in other jurisdictions may be on hold until details on the proposed TRAIN law 2 become more apparent,” he said, referring to the proposed tax reform that seeks to cut corporate income tax rates but also streamline fiscal incentives by removing those deemed redundant.

“On the other hand, investments that cater to the local market may see continued growth as more foreign players want a piece of the [Philippine] action,” Mr. Mapa added. — KTM

Meralco bills drop for 2nd month in June

CUSTOMERS of Manila Electric Co. (Meralco) should see lower bills for the second straight month in June, the utility announced on Thursday, citing a lower generation charge for power purchased in May.

In its statement, Meralco said its overall rate dropped P0.1948 per kilowatt hour (/kWh) to P10.0918/kWh from P10.2866/kWh in May. The overall rate is now down P0.47/kWh since May.

Households consuming 200 kWh in a month — which make up the biggest segment of residential consumers — can expect a P39 total reduction in their bills, while those consuming 300 kWh, 400 kWh and 500 kWh will see reductions of P58, P44, P77.92 and P97.40, respectively.

“The generation charge decrease is primarily due to lower charges from the Wholesale Electricity Spot Market (WESM), despite increases in the charges of Independent Power Producers (IPPs) and Power Supply Agreements (PSAs),” Meralco said, noting that WESM, IPPs and PSAs accounted for nine percent, 41% and half of the utility’s supply in May.

Generation charge for June slid by P0.1350/kWh to P5.4158/kWh from P5.5508/kWh.

Purchases at the WESM decreased by P0.31/kWh despite continued tightness of supply in Luzon.

“While the number of days on red alert, as declared by the National Grid Corporation of the Philippines (NGCP), decreased from seven last month to two in May, the number of days on yellow alert (signifying thin reserves) increased from seven in April to 13 this month due to higher demand for power,” Meralco added.

Meanwhile, cost of power sourced from IPPs and PSAs inched up by P0.0556/kWh and P0.0717/kWh, respectively, partly due to weakening of the peso against the greenback.

Dollar-denominated costs of IPPs and PSAs account for 97% and 68% of their charges, respectively.

To boost supply, Meralco said the San Buenaventura power plant — its new PSA with power facilities in Mauban, Quezon — started commissioning tests this month and provided two percent of total energy requirements.

Two new interim PSAs which Meralco secured this month — with Therma Mobile, Inc. and Millennium Energy Corp., provided additional capacity for emergencies.

Transmission charge for residential customers decreased by P0.0427/kWh primarily due to lower ancillary service charges, while taxes and other charges also decreased by P0.0171/kWh.

Meralco’s distribution, supply and metering charges have been unchanged for 47 months, after these were reduced in July 2015.

Payment for the generation charge goes to power suppliers, while payment for the transmission charge goes to the NGCP.

Taxes and other public policy charges like the feed-in tariff allowance rate are remitted to the government.

Meralco shares dropped P1.80 or 0.46% or P1. 80 to end P389 apiece on Wednesday, reflecting broader weakness in the industrial sectoral index — under which the stock is listed — which fell by 22.12 points or 0.19% to 11,567.99.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — J. C. Lim

Tourism contribution to national output biggest since at least 2012

THE TOURISM INDUSTRY’s contribution to the economy grew in 2018, according to data which the Philippine Statistics Authority (PSA) released on Thursday.

Preliminary data compiled by the PSA showed tourism’s direct gross value added (TDGVA) accounting for 12.7% of gross domestic product (GDP) in 2018, bigger than the sector’s 12.2% share in 2017.

TDGVA measures the tourism-related value created by various industries.

Last year, the combined economic contribution of tourism activities was P2.2 trillion at current prices, up 14.3% from 2017.

The TDGVA indicator is based on the results of the Philippine Tourism Satellite Accounts report, in which the PSA compiles from the Department of Tourism.

The sector’s contribution to GDP in 2018 was the highest since 2012 when the government started using the 2012 input-output ratios in estimating the TDGVA.

Transportation had a 21.9% share of gross value added, followed by food and beverage services and entertainment and recreation services with 21.3% and 19.9% shares, respectively.

Domestic tourism expenditures hit P3.2 trillion last year, up 21%. Domestic tourism expenditures were equivalent to 24.9% of household spending in 2018, according to the PSA.

Meanwhile, tourism expenditure by non-residents amounted to P441.4 billion in 2018, down 1.6% from P448.6 billion in 2017.

Compared to the country’s total exports, the share of inbound tourism expenditure was 8%. According to the PSA, inbound tourism ranked third among the biggest export items in 2018, after “miscellaneous services” at 31.5% and semiconductors at 22.8%.

“The contribution of tourism to the Philippine economy in 2018 stood at 12.7%, 0.5 percentage point higher from 12.2% in 2017, [but] slower than the 1.5 percentage points growth in 2017. This is still considered decent despite the six-month closure of Boracay Island from April 26-October 26, 2018 and the slower global economic growth in 2018 due to the lingering US-China trade war since July 2018,” Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC), said in an e-mail.

“These reflect the consistent faster growth in tourism compared to GDP growth, even with Boracay’s closure in 2018,” Mr. Ricafort said, adding that growth in tourism likewise stimulated growth on “other allied/related industries” such as real estate, retail trade, and various service industries.

Robert Dan J. Roces, chief economist at Security Bank Corp., underscored tourism’s resilience last year amid elevated inflation.

“Despite high inflation in 2018, we still saw growth in terms of the sector’s contribution; this goes to show that tourism is inflation-proof, particularly from international tourists who use and exchange their own currency,” Mr. Roces said in a separate e-mail.

The end of Boracay’s six-month closure marks the first phase of a two-year rehabilitation plan, which is focused largely on addressing environmental degradation. The rehabilitation, which started on April 26, was prompted by President Rodrigo R. Duterte’s pronouncement that the island had become a “cesspool.”

RCBC’s Mr. Ricafort also noted that tourism’s total contribution to GDP was just 7.9% of GDP in 2012 compared to 2018’s 12.7%.

“This only shows the increasing significance of tourism as a major growth driver for the Philippine economy over the years and may still continue to grow amid improvements in tourism infrastructure… with tourism as one of the biggest beneficiaries with the construction of more airports, seaports, roads, bridges, rail networks that make more tourism destinations more accessible for greater number of foreign and local tourists and reduce travel time,” he said. “Tourism, being one of the major contributors and growth drivers in the Philippine economy, has also become a major source of employment/jobs in the Philippines.”

For Security Bank’s Mr. Roces, “employment growth naturally follows from the sector’s uptick as demand for services go up. Thus, tourism’s contribution to economic growth cannot be understated.”

Employment in tourism industries was estimated at 5.4 million in 2018, making up 13% of the total working population. For that year, it was up 1.8% from a year earlier.

Analysts are upbeat about tourism’s growth prospects in the coming years.

RCBC’s Mr. Ricafort noted that aside from the re-opening of Boracay Island and the development of other tourism destinations, tourism would also benefit from the extended authority of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to grant incentives to investors in the sector under the recently signed Republic Act (RA) No. 11262. RA 11262, which Mr. Duterte signed on April 10, amended RA 9593, or the Tourism Act of 2009 that gives TIEZA “sole and exclusive jurisdiction” to grant incentives to tourism businesses, in order to extend implementation of the incentive scheme for tourism enterprise zones for another 10 years. Under the old law, TIEZA had only until August 2019 to grant incentives.

“The tourism industry has enjoyed incentives/perks from the government over the years through the TIEZA in an effort to further promote the industry, and will continue to have more incentives over coming years as legislated recently,” said Mr. Ricafort.

Incentives that TIEZA grants tourism enterprises include six-year income tax holidays, a five percent preferential tax on gross income after that period ends, exemption from all taxes and duties on imported capital equipment, as well as exemption of transport equipment and spare parts from tariffs and duties.

TIEZA is also authorized to give “equal preference to large investments” that have “great potential for employment generation and… [to] local small and medium enterprises.”

“Tourism will continue to be one of the country’s major growth drivers, especially in areas outside Metro Manila, including far-flung provinces/localities, thereby creating more employment and business opportunities,” Mr. Ricafort said.

Mr. Roces shared this view, saying: “For [the first quarter], we have already seen a 7.59% increase year on year, and we see the Philippines still being viewed as a viable tourism destination from our Asian neighbors, particularly from the usual South Korean visitors.”

“Chinese visitors, on the back of friendlier ties with China, also contribute to the influx, as well as a high increase of Taiwanese.” — MAM

IMF chief warns US-China spat to slash 2020 global growth

WASHINGTON — The International Monetary Fund (IMF) does not see the threat of a global recession brought on by a widening US-China trade war and potential US tariffs on Mexican goods and autos, IMF Managing Director Christine Lagarde said on Wednesday.

Ms. Lagarde told Reuters in an interview, however, that such escalating tariff threats were sapping business and market confidence, and could slow growth that is currently expected to improve next year.

“We don’t see a recession,” Ms. Lagarde said when asked whether US President Donald Trump’s threatened tariff actions could turn global growth negative.

“Decelerating growth, but growth nonetheless — 3.3% at the end of this year, and certainly a strong US economy. We do not see at the moment, in our baseline, a recession.”

Earlier on Wednesday, the IMF said current and threatened US-China tariffs could cut 2020 global gross domestic product by 0.5%, or about $455 billion — a loss larger than G20 member South Africa’s annual economic output.

The estimate includes a recent US tariff increase to 25% on a $200 billion list of Chinese imports as well as Trump’s threat to tax another $300 billion worth of consumer imports, representing nearly all trade between the world’s two largest economies.

The IMF’s estimate does not take into consideration Mr. Trump’s threatened five percent tariffs on goods from Mexico starting on Monday over immigration issues and ratcheting up monthly. Mexico has overtaken China this year as the largest US trading partner.

Ms. Lagarde called such actions “self-inflicted wounds” that must be avoided, a message she will take to a G20 finance ministers and central bank governors meeting in Fukuoka, Japan this weekend.

“One more tariff here, one more threat there, one more negotiation that has not yet started, add to a global uncertainty which is not conducive to additional growth,” she told Reuters.

In a briefing note for G20 finance leaders, the IMF said that US tariffs and Chinese retaliatory measures currently in place could cut 2020 output 0.3%, with more than half of that impact coming from negative effects on business confidence and financial market sentiment.

The IMF also on Wednesday cut its China growth forecasts for 2019 and 2020 due to the growing trade tensions. The Fund is due to release preliminary findings of its annual assessment of the US economy on Thursday.

The IMF is predicting 3.6% global growth for 2020, but said this outlook is vulnerable to trade tensions, uncertainty over Britain’s exit from the European Union, and uncertain recoveries in some stressed economies such as Argentina and Turkey.

Asked whether the IMF needed to take a tougher stance against US tariff actions, Ms. Lagarde said the Fund had to keep presenting facts and economic research to tell leaders: “If you go in that direction, these are the consequences. It’s for political leaders and for policy makers to decide what is in their interest.”

Ms. Lagarde said she would discuss the IMF review of its quotas and other financial resources with G20 policymakers in Fukuoka this weekend. — Reuters

Singer Julio Iglesias calls 50-year career ‘a miracle’

LOS ANGELES — At age 75, singer Julio Iglesias can’t run and can no longer play soccer. But still singing for a living after 50 years? That, he said, is “a miracle in my life.”

The Spanish crooner kicks off the European leg of his 50 year anniversary tour in Antwerp on Sunday with a Grammy lifetime achievement award to add to his many accolades.

Long before the arrival on the pop scene of Puerto Rican Ricky Martin 20 years ago and the 2017 global sensation “Despacito,” Iglesias was turning out crossover international 1980s hits like “Begin the Beguine” and “To All the Girls I’ve Loved Before.”

He has sold more than 300 million records in 14 languages, is the best-selling Latin artist ever and, in 2013, was named the most popular international artist in China.

Iglesias said in an interview he feels privileged to have had such a long career and dismisses concerns raised in the Spanish press about his recent health. He turned to singing after a car accident in 1963 that ended his burgeoning career as a soccer player.

“At 75 years old, of course I cannot play football. I cannot run, but I am in perfect condition,” he said.

“I still have the passion in my heart. If I don’t sing, my heart doesn’t beat so strong… Fifty years on the road, playing from China to Finland, it’s a miracle.”

After all the years, Iglesias said he still gets a thrill from being with an audience.

“The feeling is the same. You close your eyes and you are on the stage and you feel that warmth from the people,” he said.

“I am an artist who is grateful 1,000% to the people. I will belong to the people until I die,” he added.

After spending June performing in Europe, Iglesias will return to the United States for concerts in September and beyond.

A concert tribute to Grammy lifetime achievement honorees will be broadcast on PBS television in the United States later this year. Among those being honored are Iglesias, Black Sabbath, George Clinton & Parliament Funkadelic, Sam & Dave, Dionne Warwick, Ashford & Simpson and Johnny Mandel as well as late singers Billy Eckstine and Donny Hathaway. — Reuters

Godzilla from radioactive colossus to unlikely climate hero

LONDON — Ever since Godzilla first rampaged across cinema screens 65 years ago, film critics have seen the reptilian anti-hero as a symbol of the fears gnawing away in the deepest recesses of moviegoers’ minds.

With the giant lizard’s return in Godzilla: King of the Monsters, launched in cinemas last week, reviewers are parsing the blockbuster for insights into the world’s paralysis in the face of climate breakdown.

“It would be a mistake to dismiss Godzilla: King of the Monsters as mindless pap or escapist fantasy,” wrote anthropologist Nathaniel J. Dominy and biologist Ryan Calsbeek, both from Dartmouth, in the journal Science.

“What began as a pointed anti-nuclear fable has since evolved into a broader allegory for human folly and our reckless disregard for the natural environment.”

Godzilla earned its reputation as a bellwether of collective anxiety soon after Japanese director Ishiro Honda first depicted the dinosaur-like creature in his 1954 film Gojira — a nickname derived from the Japanese words for gorilla and whale.

In Honda’s film, a radioactive, 50-meter tall Godzilla lays waste to Tokyo after being awakened from the deep by underwater nuclear tests. Released barely a decade after atom bombs obliterated Nagasaki and Hiroshima, the film was a tacit reflection of Japan’s shared wartime trauma.

In King of the Monsters, directed by Michael Dougherty, an embittered former British army colonel, played by Charles Dance, believes modern civilization is on track to wipe out all life on the planet. The colonel and his paramilitary team go on a mission to release gargantuan mutant “Titans” from their resting places to try to tip the scales back into Earth’s favor.

No longer the enemy who once delighted in toppling Japanese skyscrapers, Godzilla is cast as an unlikely eco-warrior battling to defeat the Titan menace — led by the three-headed King Ghidorah — and save humanity from itself.

Film critics say the devastating elemental forces unleashed by the Titans in the 35th Godzilla film hold up a mirror to real-world fears of wildfires, super-storms and floods caused by growing man-made instability in Earth’s atmosphere.

“Dougherty’s film recalls America’s present-day anxieties over increasingly intense weather patterns tearing across the country from coast to coast,” culture writer Andy Crump observed in a review in The Week.

INNER DEMONS
Although post-apocalyptic climate scenarios have been a staple of the “cli-fi” genre for years — notable examples include The Day After Tomorrow and Mad Max: Fury Road — Godzilla has returned against a uniquely febrile backdrop. With hundreds of thousands of teen climate activists marching in cities across the world, and Extinction Rebellion bringing parts of London to a standstill in April, a new awareness of the crisis is seeping into mainstream culture.

While nobody pretends that a movie can directly deliver cuts in greenhouse gas emissions, fiction can serve as a vehicle to help communities face up to crises that might otherwise seem too overwhelming to contemplate.

“We need to engage with the reality of climate change in order to deal with it,” said Caroline Hickman, a psychotherapist who lectures at the University of Bath in southwest England, and is a member of the Climate Psychology Alliance. “The monster gives us a metaphor, a narrative through which we can do that.”

While the new Godzilla film has been panned in some quarters, Zhiwa Woodbury, author of a book on the psychology of the climate emergency, sees King of the Monsters as Hollywood’s most profound “cli-fi contribution to date.

By including a sequence where Godzilla is once more roused by an undersea nuclear blast, Woodbury says the film is asking audiences to heal the rupture in mankind’s relationship with the natural world that occurred at the dawn of the atomic age.

“Godzilla is spot-on in asking us to face our inner demons,” Woodbury wrote on his EcoPsychology NOW! blog. “Only then can we hope to rise like a Phoenix from the ashes of the petrochemical age, and regenerate our world on a path of climate recovery.” — Reuters

Stream with Pride: Netflix’ suggestions for Pride Month

IN celebration of Pride Month this June, Netflix has come up with a list of movies and shows about how love and family come in all colors and stories.

Tales Of The City (streams on June 7) — Inspired by the books of Armistead Maupin, this Netflix Original Limited Series, Armistead Maupin’s Tales of the City, begins a new chapter in the story. Mary Ann (Laura Linney) returns to present-day San Francisco and is reunited with her daughter Shawna (Ellen Page) and ex-husband Brian (Paul Gross), 20 years after leaving them behind to pursue her career. Fleeing the midlife crisis that her picture-perfect Connecticut life created, Mary Ann is quickly drawn back into the orbit of Anna Madrigal (Olympia Dukakis), her chosen family and a new generation of queer young residents living at 28 Barbary Lane.

Trinkets (streams on June 14) — When three teenage girls from different corners of the high school cafeteria find themselves in the same mandated Shoplifter’s Anonymous meeting, an unlikely friendship forms. Elodie, the grieving misfit; Moe, the mysterious outsider; and Tabitha, the imperfect picture of perfection, find strength in each other as they negotiate family issues, high school drama and the complicated dilemma of trying to fit in while longing to break out.

All In My Family (now streaming) — After starting a family of his own in America, a gay filmmaker documents his loving, traditional Chinese family’s process of acceptance.

Special (now streaming) — Based on creator and star Ryan O’Connell’s memoir, Special is an irreverent comedy about a gay young man with cerebral palsy who decides to go after the life he has always wanted.

Bonding (now streaming) — For grad student/dominatrix Tiff (Zoe Levin) and her cash-strapped gay best friend Pete (Brendan Scannell), S&M is a business, not a pleasure. Well, maybe there’s a little pleasure. Their professional relationship redefines their friendship, but more importantly helps them find themselves.

Pose (now streaming) — From creator Ryan Murphy, Pose is a dance musical set in 1980s New York City, exploring the fabulous and fascinating world of LGBTQ+ ball culture. The groundbreaking series, which largely stars a transgender cast, was nominated for a Golden Globe for Best Drama.

Queer Eye (now streaming) — Laugh, cry, and be inspired by the Fab Five, as they change the lives of men and women, touching on everything from LGBTQ+ rights, social commentary, fashion, and how to whip up a tasty avocado dish.

RuPaul’s Drag Race (now streaming) — Watch fabulous queens lip-sync for their lives in this long-running, Emmy-winning reality show hosted by RuPaul.

Call Me By Your Name (now streaming) — An emotional and award-winning portrayal of first love between Elio (Timothée Chalamet) and Oliver (Armie Hammer). Luca Guadagnino’s coming-of-age drama earned multiple accolades, including a Best Picture nod and a Best Adapted Screenplay trophy at the Oscars.

Will & Grace Season 1 to 8 (now streaming) — All eight seasons of the classic sitcom are now streaming on Netflix. Join roommates Will and Grace as they search for Mr. Right with the help of their hilarious sidekicks, Karen and Jack.

Actor Jussie Smollett not returning to Empire, the TV show’s creator says

LOS ANGELES — Jussie Smollett will not be returning to US television series Empire, the show’s creator says, marking the first public confirmation that the actor has been dropped after a furor over claims that he was the victim of a hate crime.

Responding to a Variety report that writers were discussing scenarios in which Smollett’s character would return towards the end of the sixth and final season, Empire creator Lee Daniels wrote on Twitter on Tuesday; “Jussie will NOT be returning to Empire.”

Smollett, 36, who is black and gay, ignited a firestorm by telling police in January that two apparent supporters of US President Donald Trump struck him, put a noose around his neck and poured bleach over him while yelling racist and homophobic slurs on a Chicago street.

Chicago police later accused Smollett of making up the attack but the actor maintained his innocence and prosecutors in March dismissed criminal charges against him.

Smollett, who played gay singer-songwriter Jamal Lyon on the show about a family in the hip-hop entertainment business, was dropped from the final episodes of season 5 earlier this year.

The Fox network, now owned by Walt Disney Co., said in April that there were no plans to bring his character back for Season 6, which is expected to air this fall, but left open a contractual option for Smollett to return.

Fox has said Empire will end after Season 6.

Representatives for Smollett did not return a request for comment on him being dropped from the show. — Reuters

Deloitte opens 1st global delivery center in PHL

By Denise A. Valdez, Reporter

INTERNATIONAL consultancy firm Deloitte is bullish on growth in the Asia Pacific through a newly opened delivery center in the Philippines.

Deloitte Consulting Philippines Delivery Center (PDC), Inc. launched Thursday a global delivery center in Bonifacio Global City, which will serve clients operating in Asia Pacific.

“There are some very ambitious growth plans for Asia Pacific within Deloitte Consulting and in order to cater to those plans, we need a very strong delivery arm within this time zone. Having that center in the Philippines is going to help us be closer to the Asia Pacific time zones,” Deloitte Consulting PDC Managing Director Uday Sreeram said during a media briefing at the company’s new office yesterday.

“Based on our research and our due diligence, we found that there is an amazing talent pool here in the Philippines. Good English-speaking skills and very passionate and enthusiastic young work force who want to make a mark,” he added.

Deloitte is a $43-billion firm that is mainly in the business of providing auditing, consulting, financial advisory and tax services to its clients, majority of which are Fortune 500 companies.

The company noted the global delivery center in Manila is its first in Asia Pacific and will have a focus on technology consulting services “with a focus on Digital, ServiceNow, Robotic Process Automation, SAP, and Workday.”

It is committed to grow the office size from its current 150 employees to around 300 by next year and around 1,000 in the next five years.

“We’re making a substantial financial investment and commitment over multiple years to stand up this center. Those investments are ongoing,” Delotte Consulting LLP Principal Jeff Jordan said.

“We’ve committed to around 700 (employees) over a few years, but… given the market and where we’re going, we’ll see several thousand people between now and 2024… The investment is directly proportional to the volume of people,” he added.

Deloitte currently has 26 delivery centers worldwide with more than 31,000 practitioners across the network. In the coming years, Mr. Jordan said the goal is to make the delivery center in the Philippines one of the company’s biggest all over the world.

“We have varying sizes, but when we accelerate or fast forward two years, this will be one of the top five (delivery centers) that we would have in terms of size and scale. And if we are really successful, it would easily be at the top 2 or 3,” he said.

Mr. Jordan noted the new global delivery center in the Philippines is part of Deloitte’s series of strategic investments to reach out to its growing client base across the world.

Prior to opening in the Philippines, Deloitte also set up regional delivery centers in China and Kuala Lumpur. The company has 26 global, regional and local delivery centers around the world.

Madonna loses appeal over auction of Tupac Shakur breakup letter

NEW YORK — Madonna lost a court battle to keep a trove of intimate belongings including a pair of satin panties, a brush containing her hair, and a breakup letter from a former boyfriend, the late rapper Tupac Shakur, from heading to the auction block.

A New York state appeals court in Manhattan on Tuesday cleared the way for an auction, saying Madonna could not pursue claims against Darlene Lutz, her former friend and art consultant, or the GottaHaveRockandRoll.com online auction website, to which Lutz consigned the items for sale.

The Appellate Division said Madonna’s claims were barred by a “very broad” release in her 2004 settlement agreement with Lutz, who was “free to do with the property as she wished” as its rightful owner.

Madonna, 60, had said she did not know until learning about the auction that Lutz, who worked for the singer from 1981 to 2003, possessed the more than 20 disputed items.

Lawyers for Madonna did not immediately respond to requests for comment. It is unclear whether she will appeal.

“The court came to the absolute right decision,” Hartley Bernstein, a lawyer for the defendants, said in an interview. “The property is Ms. Lutz’s to do with as she wishes.”

Tuesday’s 5-0 decision upheld an April 2018 ruling by Justice Gerald Lebovits of the state supreme court in Manhattan.

Lebovits said he dismissed the case because the statute of limitations had passed, and because Madonna’s settlement with Lutz contained a broad waiver covering the claims.

The handwritten letter from Shakur was dated Jan. 15, 1995, while he was in prison for sexual assault.

It said he was ending his relationship with Madonna because he thought dating a white woman could jeopardize his career.

“I felt due to my ‘image’, I would be letting down half of the people who made me what I thought I was,” Shakur wrote. “I never meant to hurt you.”

GottaHaveRockandRoll.com said the letter could fetch $400,000 at auction, court papers show. Shakur was killed at age 25 in a September 1996 drive-by shooting in Las Vegas. — Reuters