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Fact-resistant fiddler

It took him nearly four hours to make it to Malacañang from New Manila, Quezon City. He lives in Marikina, and if he had started from there it would have taken him an additional hour for a total commute time of five hours. But Duterte Spokesperson Salvador Panelo still refused to admit that there’s a transportation and traffic crisis in the National Capital Region (NCR).

Both the government and the average citizen agree that there’s a traffic problem in the NCR. Then-candidate Rodrigo Duterte acknowledged its existence, promised in 2016 to work on it, and only a few months ago claimed that it would soon take only five minutes to commute from Cubao, Quezon City to Makati via Epifanio de Los Santos Avenue (EDSA).

It has not happened. The traffic problem has instead become worse, and has morphed into a crisis of monumental dimensions. What used to take two hours from the Marcos Highway subdivisions of Antipolo City to Makati now takes four or more, for example. Metro Manila trains are breaking down even more frequently, and thousands of commuters end up hours late for work, home, or school even if they wake up at cockcrow.

Panelo’s venture into commuting via public transportation should have impressed upon him how hundreds of thousands cope daily with a crisis not only in the traffic and transportation system, but even more acutely and as a consequence, in their very lives as well. Commuters are being moved by the transportation system at the same speed as, or even slower than, the three-hours and 45 minutes it took him to negotiate the 12 kilometers from New Manila to his office by the Pasig. That was about three kilometers per hour. He might as well have walked.

If the present situation continues, much of Metro Manila will soon come to a standstill not only during the morning and afternoon rush hours but before and even after. This is already happening in many areas, and traffic coming to a standstill during the rest of the day and into midnight is already the stuff of urban legend.

But while its allies are using the traffic situation as an excuse for giving their boss of bosses emergency powers, the Duterte regime still looks at it as a problem that can yield to band-aid solutions, while citizens rage at the sheer torture of going from one place to another in what has been described as the most congested city in Asia. Hence the debate on whether there’s already a transportation and traffic crisis between Panelo and the legal left wing groups to which the Duterte regime has been attributing all sorts of evil motives.

One member of an international human rights group agrees with the Duterte regime as far as those motives are concerned, and what’s more said over social media that those groups’ daring Panelo to commute was “dumb,” was driven solely by the intent to generate anti-government propaganda, and contributed nothing to finding a solution to the traffic problem.

But the Panelo commute nevertheless demonstrated how fact-resistant he, and quite possibly the rest of the regime he serves, is. He is, after all, President Rodrigo Duterte’s alter ego, and may safely be assumed to be speaking for him when it comes to public issues. There’s also the fact that only government has the power and the mandate to look for and implement solutions to the problems that affect the lives of millions.

Denying its existence doesn’t augur well for the search for solutions to a crisis that’s costing the country tens of thousands of man and woman hours, as well as billions of pesos in productivity losses daily. That’s not to mention the additional costs in fuel that vehicles creeping their way across the metropolis incur, its environmental impact and contribution to global warming, and the increase in the health hazards people have to endure in one of the most polluted cities on the planet. Meanwhile, the impact of the crisis on the quality of life of residents as well as of those others who have to work, study, or do business in it is immeasurable. Manila now ranks third among the cities that no one who has a choice wants to live in. It’s clear enough why. Spending eight to 10 hours commuting to and from work or school daily — leaving the house at 4 a.m. to make it to the office by eight o’ clock, and then leaving for home at 5 p.m. for supper at 9 p.m. — doesn’t leave much room for doing anything else in terms of rest, recreation, bonding with one’s family, or addressing its problems.

Because it’s man-made and the result of years of myopic indifference, the solution to the crisis shouldn’t be as impossible to find as it seems. But the search for it has to begin with identifying its causes. Among them are the sheer number of private vehicles on the road; the unreliability of the public transport system which makes buying a car the priority for many people; the fact that schools, offices, and factories are concentrated in the NCR area; and the lure of Manila as a place of employment and other opportunities that are missing in most of the country’s provinces. There’s also the suspicion that the funds for the maintenance of the commuter trains are too small, or worse, are being misspent, hence the frequent breakdown of their services. Overall, however, is the absence of any planning on the transportation sector that takes all the above into account.

The long-term solution is the development of the rest of the country as places of employment, education, and recreation opportunities. The unplanned sprawl of Metro Manila and the concentration in it of industries, offices, and schools contrasts sharply with much of the provinces, hence the resulting internal migration of huge numbers of the Philippine population to its poorest communities.

The solution, in short, requires a radical reorientation to a holistic approach, away from the search for piece-meal solutions that even while being proposed are already doomed to failure. But without understanding that there’s a crisis in the transportation and traffic system not only of Metro Manila but also those of many other Philippine cities, no solution whether long- or short-term can be found. Panelo’s and the administration’s refusal to accept that there’s a crisis because people still get to their destinations anyway is almost certain a guarantee that the crisis will eventually be so unmanageable the country’s capital will be at a standstill.

The traffic and transportation crisis is only one of the urgent problems that the regime Panelo serves is unwilling to address, focused as it is on its spurious “war on drugs”; bloating the budget with pork for itself, its minions, collaborators, and allies; harassing the independent press and regime critics; and purchasing $2-billion jets so its bureaucrats can have the run of the archipelago while the people who paid for them with their taxes elbow each other daily for space in jeepneys crammed to the roof with passengers that are inching their way through Manila’s mean streets.

Like the other administrations that preceded it, it’s fiddling while the country burns. And that’s despite the promise to solve a problem that has grown into critical proportions over the last three years of its rule.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

To impeach or remove: How to get rid of a public official

Impeachment and removal are the words of the day. Blame it on the Democrat’s insane inability to accept Donald Trump’s win in the 2016 elections. Yet despite being a popular social media topic, impeachment is a concept least understood by many.

In the Philippines, impeachment is found in Article XI(2) of the Constitution:

“The President, the Vice-President, the Members of the Supreme Court, the Members of the Constitutional Commissions, and the Ombudsman may be removed from office, on impeachment for, and conviction of, culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust. All other public officers and employees may be removed from office as provided by law, but not by impeachment.”

The big argument in 2018 was whether Maria Lourdes “Meilou” Sereno could be removed from the Supreme Court by modes other than impeachment. This column was almost alone in arguing: Yes.

One reason had to do with Art. XI(2)’s “may” (in the 1935 and 1973 constitutions it was “shall”) and the absence of the word “only,” indicating a language not precluding other means of removal. Gratifyingly, the decision in Republic vs. Sereno seemingly confirmed that position:

“The provision uses the permissive term ‘may’ which, in statutory construction, denotes discretion and cannot be construed as having a mandatory effect. We have consistently held that the term ‘may’ is indicative of a mere possibility, an opportunity or an option. The grantee of that opportunity is vested with a right or faculty which he has the option to exercise. An option to remove by impeachment admits of an alternative mode of effecting the removal.”

Indeed, when one looks at the other co-equal branches, different modes of removal from office are available.

Of course, there is the better known Article VI(11) provision, by which members of Congress can be arrested for offenses punishable by more than six years imprisonment.

But set aside said Article VI(11), the point that must be emphasized is that impeachment and other forms of removal are not in the nature of punishments on the official.

Impeachment or removal are not penalties meted out for an offense (which can come later in another proceeding) but rather to prevent said official, occupying a position of public trust, from continuing to have the capacity to do harm.

Thus, each House can “punish its Members for disorderly behavior, and, with the concurrence of two-thirds of all its Members, suspend or expel a Member.” (See Article VI of the Constitution).

And the ways to remove a president are endless.

Art. VII is replete with alternative modes. Aside from death, resignation, incapacity, and expiration of term (as well as, of course, by impeachment), the cabinet can also get rid of the president by way of Art. VII(11):

“Whenever a majority of all the Members of the Cabinet transmit to the President of the Senate and to the Speaker of the House of Representatives their written declaration that the President is unable to discharge the powers and duties of his office, the Vice-President shall immediately assume the powers and duties of the office as Acting President.

For Supreme Court justices? Aside from impeachment, there’s death, resignation, and retirement at 70 years of age.

But the Constitution is seemingly open to other modes: Art. VIII(11) requires a judge stay in office “during good behavior until they reached the age of 70 years or become incapacitated to discharge the duties of their office.” That provision alone suggests three different and other causes and modes of separation from office.

Then there’s Art. VIII(7[3]) (“A member of the Judiciary must be a person of proven competence, integrity, probity, and independence.”), which could be interpreted as continuing requirements.

Note, however, that both Congress (vis-à-vis its members) and the Executive (the cabinet vis-à-vis the president) can remove the relevant official when such seemingly is not living up to their oaths of office.

This logically should mean the Supreme Court (as an equal branch of government) would also have the ability to do “house cleaning” of its own, removing by en banc vote any member “incapacitated to discharge the duties of their office,” or not of “good behavior,” “competence, integrity, probity, and independence.”

Finally, there’s the canard that impeachment is a “political process” and hence legal principles, the rules of evidence, fair play, and logic do not apply. Not true and they do.

The Senators before being part of an impeachment court need to take an oath (or affirmation, see Art. XI(3[6])). That oath requires them to impart “justice,” which is clearly a legal standard.

The point to remember is that the three branches are equal. To make impeachment easy, by justifying it as a purely “political” exercise, will make the other two branches at the mercy of the legislative.

This converts our political system into a parliamentary form of government, which is in no way consistent with the republican presidential system provided for in our Constitution.

 

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

Low profile

During the long season of angst, one needs to be attuned to the times.

The members of the affluent class display disparate behavioral traits.

Observe the low-key scions of the old rich families with vintage pre-war fortunes. As sensible, socially aware individuals, they are sensitive to the plight of the less fortunate. In keeping with the hard times, they act with restraint and modesty. Despite their recession-proof status, they prefer to keep a low profile.

Noblesse oblige as the French say. Nobility obliges. Those who have more in life have an obligation to help others. There is more value when an anonymous donor does it quietly, discreetly. Unless it is a well-established corporate foundation.

To defy the global economic trends and uncertainty, the flashy arrivistes and notorious celebrities flaunt their newfound fortune in a vainglorious effort to impress others.

The parvenus crave social prominence. They are eager social butterflies with a voracious appetite for recognition. Thus, they attend the numerous balls, auctions, and donate heavily or bid aggressively. They organize self-promoting events.

To justify lavish spending, there are convenient beneficiaries. (Who knows how much of the funds are actually given to poor orphans or the endangered species?)

When the benefit event is organized annually by trustworthy individuals and civic groups with good track records, the donations are sure to be distributed immediately to the needy and marginalized beneficiaries.

Instead of adapting to the hard times, the new rich and infamous (who try so hard to become famous) cultivate a flamboyant lifestyle. (The better to impress and to entertain the impressionable and gullible spectators. It’s a vicarious thrill to make life miserable for others.)

“Let them eat cake,” Queen Marie Antoinette said, they say. For her careless and heartless frivolity and insensitivity, she earned the contempt and rage of the starving masses. She lost her gilded throne, crown, and bejeweled head.

It is very difficult for people to accept such tasteless, arrogant displays of wealth. The senseless, callous creatures are social dinosaurs that climb mountains to attempt to pierce the elite inner circles.

In the rarefied atmosphere of the powerful, money is just a tool. It can neither guarantee nor secure one’s social status or ascendancy.

There are two categories: Those who are and those who want to be.

The insensitive rich are afflicted with myopia, selective eyesight, like ostriches they see what they want to see and ignore the rest. Some inhabit a surreal, woven cocoon with purified air. Isolated and insulated from the real world, they live a detached, disembodied existence. Away from the noise and grime of everyday realities. The material world is the only realm. Everything revolves around money and what it can buy.

The pleasure of having a lot of money and a jet-set lifestyle matter more than anything else to these creatures.

Unfortunately, the novelty wears off. Material pleasure is fleeting.

We recall the Asian crisis in the 1990s. In one country before the crisis, the elite class was impervious to the poverty and misery around it.

The wealthy show-offs rode in Rolls Royce limousines that matched their designer clothes. (Like the crazy rich Asians.) The ostentatious balls were regular extravaganzas organized by the ultra-rich women of leisure. Glamor and glitz abounded among the glittering gowns and dazzling jewels.

The party had to end somehow. In 1997, The Asian crisis plunged that country’s economy into the doldrums. The deep hatred, rage, and bitterness of the less privileged against the rich finally exploded like a volcano.

Media captured some of the violent incidents on television. The Internet circulated horror stories of ethnic mass rape and murder. The world was shocked and horrified by the tragic events.

Déjà vu.

The experience in that country was reminiscent of other revolutions. The most prominent was the storming of the Bastille more than two centuries ago. The insensitive French monarch and the royal court became victims of their own folly.

People in power who are in similar situations should learn the hard lessons from past political disasters. Before it is too late.

 

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

The Trump Doctrine: American Unexceptionalism

By Eli Lake

ACCORDING TO President Donald Trump, Turkey’s invasion of northern Syria “has nothing to do with us.” America’s longtime adversaries in the region — Syria, Iran and Russia — should be left to fight Islamic State. And it’s good that Syria is now protecting the Kurds he has just abandoned.

Trump’s two rambling appearances in the White House on Wednesday are notable not merely for their incoherence, which is by now familiar. They amount to a raw expression of his foreign policy: He is the leading proponent of what might be called American unexceptionalism.

Trump’s comments are baffling for many reasons. He is sending Secretary of State Mike Pompeo and Vice-President Mike Pence to Ankara Thursday to plead with Turkish President Recep Tayyip Erdogan to pull back his forces and agree to a cease-fire. If the Turkish invasion is of no concern to the US, why send the vice-president and secretary of state? Why send Erdogan a letter urging him to negotiate with the leader of the Syrian Democratic Forces?

Furthermore, Trump has boasted of America’s great success in the war against Islamic State, a war in which the Syrian Kurds fought alongside the US and lost 11,000 soldiers. Trump now claims Trump then was a sucker. He could have let Iran, Russia, Syria and others in the region fight against Islamic State.

There is a temptation to call this isolationism. But that’s not quite right. Trump seeks regime change in Venezuela. His administration is pressing allies to keep China out of their 5G networks. The president inveighs against endless military wars, while gleefully waging economic ones on nominal allies such as Turkey and regional enemies like Iran. He threatens North Korea’s tyrant with annihilation only to be charmed by his lies after a few personal meetings.

As a believer in American unexceptionalism, Trump sees the world as a savage place, and the US is just as savage as its adversaries. The lofty ideals of Ronald Reagan and John F. Kennedy are a sham. As Trump said in 2017, just weeks into his tenure: “You think our country’s so innocent?”

In fairness to Trump, he is not alone in seeing American idealism as an elaborate con. Thinkers such as Noam Chomsky have made a version of this argument for years. There is a strain of American foreign policy realism based on the idea that the rules-based international system camouflages the inherent chaos of state competition. The strong do what they can and the weak suffer what they must, as Thucydides wrote.

This worldview may seem clarifying, even liberating, for a superpower. But it also leads to decline. Ten years ago this month, Charles Krauthammer made this point in a stinging and now-famous lecture. “The fundamental consequence” of seeing America as unexceptional, he said, was “to effectively undermine any moral claim that America might have to world leadership, as well as the moral confidence that any nation needs to have in order to justify to itself and to others its position of leadership.”

At the time, Krauthammer was worried that President Barack Obama was ceding US foreign policy to international institutions such as the United Nations. Obama, Krauthammer said, was surrendering America’s global leadership out of guilt.

Trump, by contrast, seeks abdication out of pride. He vents about the trillions the US has spent on endless wars in the Middle East. He worries about allies ripping off America.

Nonetheless, both Trump and Obama ended up in the same place in Syria. Obama’s CIA funded and helped to arm a Free Syrian Army only to allow it to be slaughtered by Russia, Iran, and the regime of Syria’s Bashar al-Assad in Aleppo in 2016. Trump increased US support for the Kurdish fighters in northern Syria against Islamic State, only to betray them to Turkey.

Krauthammer’s point was that American decline was not inevitable. The title of his lecture, a decade later, remains bracing: “Decline Is a Choice.” How, then, to characterize the choice Trump has made? Last week, northern Syria was relatively peaceful. Now it is chaos. Russian officers are touring bases abandoned by US soldiers. A NATO ally is slaughtering America’s Kurdish partners. Islamic State prisoners are breaking out of jails.

It would be charitable to say Trump has chosen decline in Syria. It’s more accurate to say that he has chosen collapse.

 

BLOOMBERG OPINION

A cool ride even for old-school drivers

Integrating tough and smart while fusing classic with modern — this is how Nissan Navara distinguishes itself as a dependable pickup among the rest. With Nissan’s timeless solid-state built and its smart technology under Nissan Intelligent Mobility, the Nissan Navara offers a more confident, more connected, and more exciting driving experience for motorists — from the tech-savvy driver to the old-school ones.

Cyrus Macasera, training and development officer at Nissan Philippines, is an expert on Nissan models and their intelligent features. He took his friend Reinier Barrios, a stick-shift purist pickup driver for 20 years, to test the modern features of the Nissan Navara along the busy streets of Binondo, Manila.

Right before getting in the car, the two friends were welcomed with Navara’s impressive Intelligent Key System. With the push of a button, one can unlock the front doors of the pickup.

Soon, at one press of a button near the steering wheel, Mr. Macasera was able to start the engine for his friend, thanks to the pickup’s Engine Push Start-Up System.

As one gets into the driver seat, he can see Navara’s newest feature, the Nissan Advanced Display Audio system. This 6-speaker 8-inch touchscreen display audio system supports Android Auto and Apple CarPlay, allowing the driver to integrate his phone to the car and access its functions while he drives. For instance, while testing his friend’s Navara, Mr. Barrios was able to make use of the Waze app on his smartphone right at the screen of the display audio system.

Nissan Navara also provides the Advanced Drive-Assist Display, which shows the vehicle’s fuel economy, digital speedometer, and audio information right in front of the driver.

Mr. Macasera also introduced the stick-shift purist to Navara’s Around View Monitor. Four cameras around Navara give the driver a 360° bird’s-eye view of the vehicle. With the help of the large screen in the Nissan Advanced Display Audio system, drivers can get a fuller view of their surroundings, especially when parking towards tight spaces. Predictive Course Lines are also flashed on the screen to help the car land into a parking spot perfectly.

Also, with the system’s Bluetooth function, one can play music or live streams and even respond to phone calls without veering away from the wheel. Mr. Barrios observed this feature when a call unexpectedly flashed from the car’s touchscreen. With a click at the steering wheel, he was able to respond.

Upon testing Nissan Navara and its innovative features, Mr. Barrios found Nissan Navara to be “convenient, intelligent, and high-tech” — something that old-school purists like him would love to drive.

While the Nissan Navara is embedded with impressive intelligent features, it is also built with strong components that make it suitable for any driving condition.

At the core of Navara’s tough built is a full-length and fully-boxed ladder frame, which makes Navara a very reliable pickup. Built with high-tensile strength steel that is stronger than conventional ones, Navara’s ladder frame goes ahead of the 3-sided open C-shape rails found on other pickups.

Through its Shift-On-The-Fly 4WD System, the Nissan Navara is fit for driving on any terrain, from rain forest jungles to the “urban” jungle. The 4WD System enables the driver to switch between two-wheel (2WD) and four-wheel drive (4WD) at a twitch of a dial. Its Active Brake Limited Slip (ABLS) system provides the traction needed upfront to keep the driver’s steering in control.

Moreover, the Navara integrates power, acceleration, and fuel efficiency in a single diesel engine. With a maximum output of 190ps, a maximum torque of 450Nm, low-friction components that help the engine use less energy to do its job, and improved aerodynamics that helps the pickup move through the air more efficiently, Navara’s engine can make the most out of every drop of fuel.

The Nissan Navara comes with seven models: 4×2 6MT, 4×2 Calibre 6MT, 4×2 El Calibre 6MT, 4×2 El Calibre 7AT, 4×4 El 6MT, 4×4 VL 6MT, and 4×4 VL 7AT. Starting prices range from P929,000 to P1,479,000.

The new Nissan Advanced Display Audio system is available for the 4×4 VL variants only.

Explore more of Nissan Navara and Nissan Intelligent Mobility by visiting any Nissan dealership nationwide or Nissan’s website at nissan.ph.

Million dollars up for grabs at 10th Lee Kuan Yew Global Business Competition

QBO Innovation Hub is calling for applicants to the Lee Kuan Yew Global Business Plan Competition (LKYGBPC). As the local partner of Singapore Management University’s Institute of Innovation and Entrepreneurship, QBO is looking for Filipino startups willing to compete for up to one million Singaporean dollars in prizes.

Entitled “Reimagine smart, sustainable and resilient cities”, the focus areas for the 2019-2020 edition include:

  • Public Health, Wellness & Safety
  • Infrastructure & Industry; Air, Water, Food & Waste
  • Energy & Grid
  • Built Environment & Real Estate
  • Transportation & Mobility
  • Government Tech & Civil Solutions
  • Cybersecurity
  • Others

Technologies powering solutions in these focus areas may include blockchain, virtual & augmented reality, data analytics & artificial intelligence, internet of things (IoT), 5G, robotics and more.

All full-time university and polytechnic students and recent university alumni (those who graduated up to five years ago) may apply in either of the two categories:

  • 0 to 1: Pre-revenue teams with disruptive technology or business model innovations; and
  • 1 to infinity: Revenue-generating early stage start-ups, up to Series A.

An international panel of judges will select the top 50 teams to compete at the competition’s finals, awarding them an all-expense paid trip (for two persons) to Singapore to participate in the Young Global Innovators Summit, a week-long immersion program.

The 2017 edition of the LKYGBPC attracted close to 2,000 global participants from 310 participating universities across 68 countries. Among the finalists were startups focused on smart cancer therapy through artificial intelligence, ultrasensitive chemical detection to prevent water and food contamination, and urban management via CCTV powered transportation data.

Iconic figures in the innovation space who participated as judges included David Su, founding managing partner of Matrix China, and Michael Seibel, CEO of Y-Combinator.

Interested applicants for the competition may apply through smu.edu.sg/lky on or before November 17, 2019.

AIM and ASSIST to Launch International Disaster Conference in November 2019

The Asian Institute of Management (AIM) and Asia Society for Social Improvement and Sustainable Transformation (ASSIST) are all set to launch this year’s International Disaster Conference (IDC) on 21 November 2019 at The Peninsula Manila, Philippines. To initiate a stream of events for leaders, experts, policy-makers, and practitioners in Asia in the field of disaster and crisis management, this first series of IDC will bring a sharper focus on water.

With the theme, “Future-Proofing Water through Innovation,” discussions will mainly be driven by the global risks and disasters associated with water. Learnings from experience, action, and best practices towards water resilience and development will also be tackled during the forum. This will promote counteractive measures to alleviate worsening water-related risks and help achieve the United Nations Sustainable Development Goals, specifically SDG 6, which is geared towards water and climate-related issues.

The event will revolve around two tracks that represent water-specific phenomena exacerbated by climate change: Too Little Water (water crisis) and Too Much Water (water-related disasters). These two tracks will be discussed through a plenary session during which internationally-, regionally-, and locally-recognized experts can set the context, frame the discussion, and share perspectives, issues, and solutions on a global scale.

Registration for the early bird promo of the event is now open until October 20, 2019 or until slots last. The early bird rate is at PHP 5,000, and the regular rate is at PHP 7,500. Inclusions per registration are as follows: full access to the conference, full-day meals, a delegate kit, and an e-certificate.

To participate, visit: http://bit.ly/IntlDisasterCon2019, or you may send an e-mail to the event secretariat at events@assistasia.org for more information.

Olivia Burton has arrived in the Philippines

Olivia Burton and retail specialists Newtrends International Corporation are delighted to announce their launch in the Philippines.

Olivia Burton is the British accessories brand built on the dream of two best friends and ex-fashion buyers, Jemma and Lesa. Designed in London, the brand takes inspiration from fashion, vintage and nature to create unique and feminine accessories that can’t be found anywhere else. Jemma and Lesa started out with nothing but each other and a shared dream to disrupt the watch industry.

As fashion buyers, they’d seen it all before – the same uninspiring styles, over and over again, with nothing pretty, fresh and feminine that they truly wanted to wear.

Dreamed up in a pretty London studio, the design team looks to vintage, fashion trends and nature to create unique accessories that can be treasured forever. Olivia Burton stand for originality and dedicating themselves to creating styles as individual as their customers.

And with new pieces arriving four times per year, the brand can be counted on to introduce fresh and exciting new styles which stand apart from the crowd. To celebrate the launch, a traditional English tea party was held in Makati Garden Club on Oct. 16.

The event provided the perfect opportunity to showcase the new collections, presenting the beautiful feminine florals and hand-painted prints which Olivia Burton are renowned for.

The space was decorated with feminine pink displays and beautiful flowers, inspired by the brands flagship boutique in London’s Covent Garden. Co-Founder Jemma said of the launch, “We’re so excited to launch in the Philippines. To see our brand growing across the globe is so exciting. It’s a real pinch me moment.”

Olivia Burton watches are available in select Watch Republic stores with more set to open in 2020. Each unique timepiece ranges from P6,700 to P14,700.

Analysts: another RRR cut still possible

By Luz Wendy T. Noble

MANAGEABLE inflation paired with the still unremarkable loan growth could allow room for another slash in banks’ reserve requirement ratio (RRR) towards yearend, economists said in interviews since last weekend.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno hinted last week that the central bank may consider another RRR cut after the 300-basis point (bp) total reduction, so far, this year depending on relevant data expected to be released in November and December.

The latest 100-bp cut, to come into effect on Nov. 1, will take the RRR for big banks, thrift banks and rural banks to 15%, five percent and three percent, respectively.

“The BSP has cut RRR by 300 bps, so far, this year; another 100 bps reduction remains likely in 2019,” Jiaxin Lu, economist at Continuum Economics, said in an e-mail.

“A series of RRR cuts have seen money supply growth pick up slightly — M3 growth at 6.7% year-on-year in July from 6.4% year-on-year in June,” Ms. Lu recalled, noting that inflation — a key indicator watched for monetary policy setting — has lately eased to within the BSP’s 2-4% target.

“The Philippines still has one of the highest RRR in the region, which provides some room for further reduction,” she noted.

“Together with lower policy rates, further cuts in RRR for banks will help facilitate credit growth.”

For UnionBank of the Philippines Inc. Chief Economist Ruben Carlo O. Asuncion, “[i]t is possible that another round can be done.”

“Our view is that there is still a lot of room for any type of easing, whether RRP (overnight reverse repurchase benchmark interest rate, now at four percent after a cumulative 75 bp reduction this year) or RRR,” he added.

“October inflation and Q3 GDP numbers will be pivotal. Of course, the BSP will also consider liquidity.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort believes “[a]nother cut in banks’ reserve requirement ratio remains possible for the rest of 2019, especially if loan growth remains relatively slow — among the slowest in nearly nine years or since December 2010 — and, consistently, M3/domestic liquidity growth remains among the slowest in more than seven years or since March 2012…”

Mr. Ricafort noted the slow pace of both indicators, reported as of August, “despite earlier cuts in banks’ RRR that infused a total of about P210 billion into the local financial system/banking system from late May… to late July…”

He said the latest one-percentage point cut in banks’ RRR “would infuse about P1110 billion into the local financial system/banking system that would help in spurring faster growth in loans as well as in the broader economy in terms of faster GDP growth.”

“For as long as inflation remains relatively benign and if loan growth and M3 growth rates remain relatively soft/slow despite the two sets of RRR cuts decided by the BSP in May… and in September… the environment remains conducive for further cut/s in RRR for the rest of 2019.”

Security Bank Corp. Chief Economist Robert Dan J. Roces was more cautious, saying in an email: “The data-dependent BSP will of course watch closely M3 money growth and loan growth rates, and further RRR cuts if any, will be informed by these.”

But for ING NV-Manila Senior Economist Nicholas Antonio T. Mapa, “with… only mild inflation pressure and liquidity growth… sluggish, we can expect further RRR to be carried out over the next few quarters to get RRR to single digits by 2023” when Mr. Diokno ends his term.

Noting that the BSP chief has said that the Monetary Board will announce a quarter in advance any further RRR adjustment, Mr. Mapa said that “[i]f he wants to adhere to these comments made previously, he may have to delay the next RRR reduction to the first quarter of 2020.”

“However, if he decides to reduce the RRR again further, data remains supportive of such moves.”

IMF sees PHL growth picking up this semester

THE INTERNATIONAL MONETARY FUND (IMF), which on Tuesday slashed its Philippine economic growth projections further to 5.7% for this year and to 6.2% for 2020, nevertheless sees gross domestic product (GDP) expansion picking up this semester on the back of improved government spending, Yongzheng Yang, IMF resident representative to the Philippines, said in an e-mail on Wednesday.

“The latest growth forecast takes into account the slower-than-expected growth outcome in the second quarter of 2019, which was partly due to the budget delay. In addition, the forecast reflects a worsening external environment,” Mr. Yang said when asked for an explanation on the downgrade in Philippine forecasts that were nevertheless in tandem with cuts for much of the world, partly due to nagging uncertainties from the Sino-US trade war.

At the same time, Mr. Yang said: “We expect growth to pick up in the second half of the year as the government accelerates public investment.”

Philippine GDP growth clocked in by a disappointing 5.6% and 5.5% in the first and second quarters, respectively, and averaged 5.5% last semester against the government’s 6-7% target for full-year 2019. Muted growth was widely blamed on the three-and-a-half month delay in national budget enactment that left new projects unfunded, and a 45-day ban on public works ahead of the May 13 midterm elections — meaning there was not much infrastructure work in the first half. Economic managers have said GDP growth needs to clock in at least 6.4% this semester to hit the lower end of the official target.

The government also has a 6.5-7.5% GDP expansion target for 2020, hence, the IMF’s latest growth projections for the Philippines fall short of official goals until next year.

“Continued structural reforms to ease the burden of doing business, make the tax system more efficient and equitable, and relax restrictions on foreign investment will also be important for growth over time,” Mr. Yang added. — Luz Wendy T. Noble

Gov’t tempers Q3 palay, corn output projections

THE PHILIPPINE Statistics Authority (PSA) has slashed its projections for third-quarter palay and corn production, citing a decline in harvest area particularly for unmilled rice.

PALAY
Production of palay, or unmilled rice, is now estimated at 3.05 million metric tons (MMT), down 4.7% than the 3.2 MMT produced in July-September 2018, according to the PSA’s “Updates on July-September 2019 Palay and Corn Estimates.”

That estimate compares to the 3.06 MMT July projection.

PSA noted that “[h]arvest area may decline by 11.1% from 824,860 hectare level in 2018” while “[y]ield per hectare may increase to 4.15 MT from 3.88 MT.”

The government targets rice output this year at 20 MMT. Production of this staple totaled some 19.066 MMT last year, 1.1% less than the 19.276 MMT produced in 2017.

CORN
The PSA also said it expects corn production this quarter to settle at 2.76 MMT, compared to a 2.77MMT projection given in July, about a fourth bigger than the actual 2.2 MMT produced in July-September last year.

Harvest area may increase to 872,990 ha from 784,930 ha a year ago, while yield per hectare may rise to 3.16 MT from 2.81 MT.

The government targets corn production at 8.64 MMT for 2019. Last year, corn production reached 7.77 MMT, about 1.8% less than the 7.92 MMT produced in 2017.

Asked for comment, Rolando T. Dy, executive director of the University of Asia and the Pacific’s Center for Food and Agribusiness, said: “Third quarter is seasonally low season for rice, and peak for corn.” — Vincent Mariel P. Galang

Malolos-Clark rail project tender attracts six companies — DoTr

THE AUCTION for contract packages 4 and 5 of the Malolos-Clark segment (PNR Clark Phase 2) of the North South Commuter Railway (NSCR) Project has attracted five foreign firms and one from the Philippines, the Department of Transportation (DoTr) said on Wednesday.

The DoTr said in a statement that the companies submitted their bids on Monday at the office of the Procurement Service-Department of Budget and Management (PS-DBM).

The DoTr identified the companies that submitted bids as the Philippines’ EEI Corp., Spain’s Acciona S.A., South Korea’s GS Engineering & Construction and Posco Engineering & Construction, as well as Indonesia’s PT. Waskita Karya (Persero) Tbk and and Wijaya Karya. PT Wijaya Karya Tbk (Wika).

The 53-kilometer Malolos-Clark railway forms part of the 148-km NSCR project that is also composed of the 56-km Calamba-Tutuban and the 38-km Tutuban-Malolos lines.

“Contract Package 4 consists of 8 kilometers and includes Clark International Airport Station. Contract Package 5, meanwhile, consists of the NSCR’s Clark Depot,” the DoTr said in its statement.

The department said at Package 4 costs P32.7 billion while Package 5 costs P18.1 billion.

The department had announced last August that nine foreign and two local firms were vying for the first three contract packages of the railway project: Package 1 for a 17-kilometer segment including Calumpit and Apalit stations, Package 2 for a 16-km stretch including San Fernando station and Package 3 for a 12-km section including Angeles and Clark stations.

The P777.55-billion NSCR Project — which will run for 148 km with 37 stations — is co-financed by the Asian Development Bank and the Japan International Cooperation Agency and, thus, limits auction participants to ADB’s 68 member countries that include 19 outside Asia.

“Target awarding for Packages 1-3 is in December 2019; for Packages 4-5, the target will be within 1Q of 2020,” the DoTr said, adding that the PNR Clark Phase 2 “is targeted for partial operations by 2022.”

The government expects the Malolos-Clark railway, or the PNR Clark Phase 2, to reduce travel time between Clark airport and Makati Central Business District to 55 minutes from up to three hours currently.

“It aims to serve 340,000 passengers daily in its opening year,” it also said. — Arjay L. Balinbin

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