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How PSEi member stocks performed — July 25, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, July 25, 2019.

 

No investment impact expected from SoT bill

THE Department of Finance (DoF) said that the Security of Tenure (SoT) bill, which is awaiting the President’s signature and could lapse into law if not acted on over the weekend, is not expected to affect the investment climate.

Finance Secretary Carlos G. Dominguez III told reporters in a text message that he also supports the view of the National Economic and Development Authority (NEDA) that the measure should balance the interests of workers and the business community in order not to damage investment flows.

“We support [Secretary Ernesto M.] Pernia’s position and would like to add that the (SoT Bill) should not negatively affect the competitiveness of the Philippines as an investment destination,” Mr. Dominguez said.

Mr. Pernia said on Wednesday at a briefing that the SoT bill needed “tweaking” to be more balanced.

“You have to be sure that the law benefits not only workers but also investment… it has to be fair between workers and employers because if you want jobs to be available, you need investment,” he added.

On July 17, foreign business chambers and employer groups called on the President not to sign the SoT Bill, warning that it will weaken investment if businesses are not given the option of engaging contract labor.

The groups said that current laws already have provisions against labor-only contracting which are also reinforced through Department Order 178 series of 2017 issued by the Department of Labor and Employment (DoLE) and Executive Order 51 series of 2018.

Their statement provoked threats from unions that their campaign amounted to illegal lobbying.

Mr. Dominguez added that investment should be protected alongside the implementation of more worker protections.

“Be mindful that the Supreme Court on several occasions has ruled that while the PH Constitution provides that the State should protect the rights of workers and promote their welfare, such Constitutional policy is not intended to oppress or destroy capital and management,” he said. — Beatrice M. Laforga

SONA signals more gambling; possible end to casino license ban

THE Palace acknowledged Thursday that President Rodrigo R. Duterte appeared to be telling the gambling regulator to expand gaming operations in his address to Congress Monday, though detailed instructions have yet to be delivered to the various government departments.

In a briefing at the Palace Thursday, Spokesman Salvador S. Panelo was asked if the President plans to lift the moratorium on new casinos after announcing Monday in his fourth State of the Nation Address (SONA) that he wants the Philippine Amusement and Gaming Corp. (PAGCOR) to “push for more gambling” after the agency reported high revenues.

“That would be the logical consequence of what he said,” Mr. Panelo replied.

Asked in a chance interview if the matter will be tackled at the next Cabinet meeting, he said: “Wala pang (There is no) Cabinet meeting… I will let you know kung kasama sa (if it’s in the) agenda.”

Asked to comment, PAGCOR Chairperson and Chief Executive Officer Andrea D. Domingo told BusinessWorld via mobile phone: “I have not met with the President, and I do not interpret his statement to mean lifting of the ban — but I will try to verify with him the first chance I get.”

In the SONA, Mr. Duterte said: “As of July 9, 2019, we collected more than P61 billion from GOCCs or government corporations, 32% of which, or P16 billion, from PAGCOR. This is more than the P36 billion collected in 2017.”

He added: “My salute to Andrea Domingo. Magpasugal ka pa, ma’am, nang marami (Promote more gambling, ma’am).”

Malacañang officially announced in February last year that the President had ordered a moratorium on new casinos.

Mr. Panelo also said at the briefing on Thursday that the President hopes to increase online gambling operations and wants the Bureau of Customs (BoC) to improve its collections because the additional revenue will fund salary hikes for government employees, including teachers and nurses.

Gusto ni Presidente na dagdagan pa iyong online gambling, legal casino para marami tayong makuha… (The President wants more online gambling and legal casinos to increase our take.) He urged also the Bureau of Customs to improve on their collections,” Mr. Panelo said.

In the SONA, the President said of the BoC: “Though corruption-ridden, [it] managed to collect P585 billion in 2018. Imagine how much more could have been collected had the BoC been clean and less corrupt.” — Arjay L. Balinbin

PAGCOR H1 net falls on high year-earlier base

THE Philippine Amusement and Gaming Corp. (PAGCOR) said net profit fell sharply in the first half, with growth coming off a high year-earlier base after a 2018 property sale.

PAGCOR said it booked a P3.08 billion net profit in the first six months, down 91.4% from a year earlier.

PAGCOR’s total income net of gaming taxes and contributions fell to P18.89 billion from P50.04 billion a year earlier.

PAGCOR’s “other income” was P862.69 million, down 97.42%.

The company said year-earlier net profit was boosted by the sale of a 16-hectare site in Entertainment City for P37.3 billion to Bloomberry Resorts Corp.

“Because of the sale of the property and the increase in revenue in our license fees and casino operations, we are exceeding our target,” PAGCOR President and Chief Operating Officer Alfredo C. Lim told reporters in August 2018.

Bloomberry is the owner and operator of Solaire Resort & Casino in Parañaque.

Income from other related services declined 16.6% to P657.22 million.

Income from gaming operations was P36.57 billion, up 9.3% from a year earlier. — Karl Angelo N. Vidal

POGO workers’ rush to register for TIN overwhelms BIR facilities

THE Bureau of Internal Revenue (BIR) said it cannot handle the current level of bulk applications for Tax Identification Numbers (TINs), with many foreign workers rushing to apply after the government required them to obtain a tax registration prior to working in the Philippines for Philippine Offshore Gaming Operators (POGOs).

The BIR is capable of issuing TINs at a much slower rate because the system is not equipped to handle bulk transactions, Finance Undersecretary Antonette C. Tionko told reporters Tuesday night.

“There are also limitations on situations where sabay-sabay silang mag-apply (they all apply at the same time),” in which case speed is the issue, Ms. Tionko said.

She added that new applications take longer to process because they have to “carefully” enter “confusing” foreign names and other personal information such as date of birth and gender to ensure correct details.

The government requires foreign nationals and non-residents planning to work in the Philippines to obtain a TIN before securing a work permit.

“It’s not slow, it’s just that there is so much to process. They are also being careful because the names are confusing,” she said.

Finance Secretary Carlos G. Dominguez III said BIR offices are not yet ready for bulk transactions amid complaints from foreign workers trying to apply for TINs.

“They [are] complaining because our system is not set up to register 100,000 [applications] a week… Then all of a sudden you have 100,000 (complaints). It’s not our fault, you didn’t register. We can’t have a system that’s for registering a 100,000 a week,” he added.

“They do it all in one office. How can you possibly expect this office that is not set up to do it,” Mr. Dominguez said.

Mr. Dominguez did not give an estimate for the number of foreign POGO workers but said most of them are unregistered.

The DoF estimates that the government foregoes about P2 billion a month in withholding tax unremitted to the BIR for every 100,000 unregistered foreign workers. — Beatrice M. Laforga

Government pitches Japan regional business federation for investment

THE Department of Finance (DoF) said it held talks with Japan’s Kyushu Economic Federation (Kyukeiren) for possible investment in the Philippines.

In a recent meeting with Kyukeiren President Yutaka Aso, Finance Secretary Carlos G. Dominguez III said Kyukeiren members could potentially invest in the Philippine cement and steel industries.

“We like to invite Kyushu businessmen, under your leadership, to make some serious investments here,” Mr. Dominguez told Mr. Aso, according to a statement issued Thursday.

Mr. Aso was quoted as saying that President Rodrigo R. Duterte’s big infrastructure push is a “strong mission…” which is “very important.”

“I come here quite constantly, your economy, it is booming and flourishing. And very impressive, especially all the service industries, the standard of their quality is very high,” Mr. Aso said.

Kyukeiren has about 970 members in the third-largest and shouthernmost of Japan’s main islands. — Beatrice M. Laforga

Villar sees local resistance to land use measure

A NATIONAL land use measure is expected to face resistance from local governments because it seeks to take away local powers and give them to a central authority, Senator Cynthia A. Villar said.

“Land use is determined by the local government. Now, they want to centralize it. Who will remove it from the local government to centralize? You are inviting the ire of all the mayors in the Philippines. That’s their power,” she told reporters in a chance interview.

Mas marami nga silang hinihingi na ibalik sa local government (local officials want a lot more powers to be returned to them)… Now we’re going to centralize it? I don’t want to do that,” she added.

A national land use measure has been stuck in Congress for years, even after it was certified as urgent by former President Benigno S.C. Aquino III. President Rodrigo R. Duterte also brought up the issue of land use in his last three State of the Nation Addresses (SONAs).

In his most recent SONA on Monday, Mr. Duterte said that the law should be passed within the year.

The proposed National Land Use Act, or Senate Bill No. 1522, which dates from the Second Session of the 17th Congress, aims to “provide a policy for the rational, holistic, and just allocation, utilization, management and development of our land resources.”

It calls for a National Land Use Commission to create, update, and ensure the implementation of the National Framework Plan, which will be the basis for land use and physical development policy.

The House version, House Bill (HB) No. 5240, or the proposed National Land Use and Management Act of the Philippines, backs the creation of the National Land Use Policy Council (NLUPC). It will be responsible for the execution of the responsibilities under the act, and take on the function of the National Economic Development Authority National Land Use Committee (NB-NLUC), which will then be abolished.

Currently, land use is undertaken by local government units, who are authorized by Section 20 of Republic Act (RA) 7160, or the Local Government Code of 1991, and the Joint Memorandum Circular (JMC) No. 54-1995.

They give a city or municipality the power to reclassify agricultural land after determining that the land is not suited for agricultural purposes, or if it has more value as a residential, commercial, or industrial site.

Reclassification is limited to certain levels depending on the category of local government. Highly urbanized and independent component cities can reclassify about 15% of their land; component cities and first to third class municipalities 10%; and fourth to sixth-class municipalities 5%. — Vincent Mariel P. Galang

Marcos to focus on anti-poverty efforts as chair of Senate panel

THE Senate economic affairs committee will focus on poverty reduction measures, its chairman, Senator Imee R. Marcos, said.

Ms. Marcos said she is preparing bills that seek to address poverty and has sought preliminary briefings from concerned agencies.

Ang aking priority d’yan ’yung poverty reduction programs, whether land reform, whether PhilHealth and Universal Health coverage, whether 4P’s, sana tingnan natin ’yan (My priority is to address poverty via land reform, health, and cash transfers)“ Ms. Marcos said in a briefing.

“Actually, nagpapa-informal briefing na ako para mabilis. May resolution na ako for a review of all the poverty reduction programs. (I have sought informal briefings on the issues to hurry things along. I have filed a resolution calling for a review of all the poverty reduction programs).”

Ms. Marcos has filed Senate Resolution No. 6 calling for the review.

“The other issue that I’d like to work out d’yan sa economic affairs (in committee) is urbanization,” she added.

Separately, Ms. Marcos said she could call for a dialogue with the National Economic and Development Authority (NEDA) after its recent statements calling for “balance” in the Security of Tenure (SoT) Bill.

“Definitely, we have to take notice of what the NEDA is saying and perhaps the economic affairs committee could initiate a dialogue with NEDA,” she said.

Socioeconomic Planning Secretary Ernesto M. Pernia on Wednesday said the proposed SoT Bill, which is still awaiting President Rodrigo R. Duterte’s signature, needs tweaking.

The bill was transmitted to the Office of the President on June 27 and will lapse into law on July 27, if the President fails to act on the measure. — Charmaine A. Tadalan

DoE warns against unauthorized petroleum, LPG trading amid Visayas crackdown

THE Department of Energy (DoE) said Thursday that it is cracking down on the illegal trading of petroleum products, particularly in the Visayas.

In a statement, the DoE said its Visayas field office dispatched teams in Capiz last week to deter the illegal in trade petroleum products, which is known as “bote-bote.”

Energy Secretary Alfonso G. Cusi said the DoE “is on top of the situation with the reported ‘bote bote’ cases and we are ensuring the safety of the people by monitoring the quality and quantity of liquefied petroleum gas.”

The DoE said the enforcement team together with the Philippine National Police raided six large retailers of liquid fuels in the municipalities of Dumarao, Ivisan, and Roxas City, which resulted in the confiscation of 16,346 liters of gasoline and 5,644 liters of diesel.

It said criminal cases will be filed against the nine individuals who were caught selling liquid fuels without authority from the agency, which is a violation of Batas Pambansa Bilang 33, “An Act Defining and Penalizing Certain Prohibited Acts Inimical to the Public Interest and National Security Involving Petroleum and/or Petroleum Products, Prescribing Penalties therefore and for other Purposes.”

The DoE’s Visayas office also said that it is strengthening its enforcement activities against the illegal refilling of liquefied petroleum gas (LPG) into non-compliant containers such as butane canisters. It said several fires caused by these LPG-refilled butane canisters had been reported across the Visayas.

The department said it was “in constant coordination with the local PNP and the LGUs as part of regulatory operations in enforcing the safety standards of petroleum products.”

Separately, the department said it had created a special task force “to urgently address the recurring brownouts in Puerto Princesa and other parts of Palawan.”

It said the interagency coordinating committee and task force was to meet representatives of the Palawan Electric Cooperative (Paleco), National Power Corp. (Napocor), and provincial government agencies on Thursday to discuss the progress of the implementation of their respective action plans.

Mr. Cusi in February directed the task force to look into the power interruptions in Palawan via a performance audit and assessment. Its findings included the uncoordinated protection system of Paleco and Napocor’s distributions lines, overloaded substations, vegetation obstruction along distribution lines, and the slow coordination among various government agencies on distribution line maintenance and improvements. — Victor V. Saulon

Airports, trains, and buses

By Bienvenido S. Oplas, Jr.

WASHINGTON, DC — It’s my first time to land at Washington Dulles International Airport from Manila via Seoul-Incheon airport. The two previous times (2004 and 2009) that I went to Washington DC, I landed at Ronald Reagan Washington International Airport.

From Dulles to Washington DC proper, I took the bus-rail combination. It is safe, convenient and cheap, only $10 or about 1/6 of the taxi or Uber fare here; travel time for this combo is about one hour. When I went to Kuala Lumpur in May, I also took the train-bus combo from KL International Airport (KLIA) to my hotel in KL city center. Bus fare from KLIA to KL Sentral is about 12 ringgit or 1/3 of Ekspress train.

Metro rails are good complements to international airports. Metro Manila has one of the shortest rail network among developed and developing Asia, we need to have more.

The development and expansion of trains from international airports and seaports to and from Metro Manila was not covered by President Rodrigo R. Duterte in his State of the Nation Address (SONA) 2019 on Monday. Congress leaders should prioritize these.

Aping Singapore

The Parliament of Singapore passed a law against uploading and spreading false information last May. It requires online media platforms that any government ministry accuses of carrying “fake news” to correct or remove the offending material, and penalizes those responsible with 10-year prison terms and fines of up to S$1 million (about $740,000). The bad news is that the Philippine Congress could do the same thing.

Singapore’s “fake news” law has been widely criticized by journalists, human rights groups, and legal scholars for being a threat to free expression. But its passage was not really all that surprising. Singapore, whose rulers look at free expression and press freedom as solely Western values rather than as universal legacies of the human struggle for freedom, has never been a haven for either. Many journalists practice self-censorship out of fear of being accused of defamation or of violating its stringent national security laws. Singapore has imprisoned journalists for these offenses.

But that is Singapore. In contrast, the 1987 “People Power” Philippine Constitution explicitly protects freedom of expression, freedom of speech, and press freedom in Section 4 of its Article III, and recognizes the citizenry’s right to information “on matters of public concern” in Section 7 of the same Article.

When he issued Executive Order No. 2 in 2016, mandating access to information held by agencies of the Executive Branch, President Rodrigo Duterte even said he hoped that it would encourage Congress to finally pass a Freedom of Information (FOI) law that would enable everyone to access information held by all three branches of government. A number of FOI bills have been introduced in Congress over the past two decades, but none has ever made it beyond the committee level, despite the invaluable role public access to information could play in combating corruption and assuring government transparency.

Despite Mr. Duterte’s 2016 declaration, instead of an FOI bill that would truly make government-held information accessible to every citizen and the press, Senate President Vicente Sotto III, one of his closest allies, has re-introduced in the 18th Congress a bill that would penalize posting and disseminating false information online. A veritable clone of the Singapore law, the Sotto bill would impose the same penalties of fines and imprisonment on alleged offenders.

If it passes the Congressional mill with only minor changes and with most of its 14 sections intact, Senate Bill No. 9, the “Anti False Content Act,” would abridge free expression and press freedom despite their being expressly protected by the Philippine Constitution. By empowering the government to censor what it considers “false content,” it will also limit the information the public can access to only what the current regime approves of.

The Sotto bill imposes prison terms of up to 12 years and fines from P200,000 to P2 million against those individuals who “create and/or publish false and misleading content” on social media, news sites, blogs and websites. It would also penalize the “intermediaries,” meaning such platforms as Google and Twitter, on which they were published, should they refuse to correct, take down, or block content — presumably whether text, videos, photos, and other illustrations — that the Department of Justice (DOJ), the Philippine National Police (PNP), or the National Bureau of Investigation (NBI) declares to be false and misleading .

PEXELS_ADHITYA ANDANU

On the excuse that the published information affects “public interest,” rather than wait for a complaint, the DOJ can issue any of the above orders to the administrators of the platforms in which it was published. “Public interest” is very loosely defined in the bill’s Section 3 as “anything that affects national security, public health, public safety, public order, confidence in the government, and the international relations of the Philippines.”

The bill would thus limit the discourse on public issues to what the government approves of by criminalizing any information its agencies interpret as false because it affects “national security,” “confidence in the government,” or is about “the international relations of the Philippines.” Those phrases can be interpreted as applying to almost anything, including investigative reports and online posts critical of this or that government policy.

Senator Sotto claimed in a television interview that neither print nor broadcast media will be affected once his copycat bill becomes law. But the reality is that the country’s newspapers and broadcast networks have online sites on which they replicate in text, photos, and video the entire contents of their print and broadcast editions. Some also upload original content on their websites and on YouTube. Both those who generate the contents of the online sites of the country’s newspapers and radio and television networks as well the sites themselves will therefore be liable to the penalties to which those who have blogs, personal and institutional websites, or accounts on social media such as Facebook, Twitter, Instagram, etc., will be subject.

There is no denying the harm that false information can inflict on the need for the informed discourse crucial to the making of the politically engaged public that an authentic democracy needs. But the damage a law penalizing those supposedly responsible for disinformation can do, because it empowers government to decide what is true or false, is a far greater danger. Every government has a stake in favorable publicity, whether generated and spread through the old media of print and broadcasting or the blogs, websites, news sites, and social media networks in the Internet. The power such a law will endow government with will inevitably be abused.

If it becomes law, Senate Bill Number 9 will be especially dangerous given the current political context in which a regime that has practically unchallenged control over the Executive, Judicial, and Legislative branches of government has again and again demonstrated its contempt for criticism, free expression and press freedom. It can declare what is true false if unfavorable to it, and the false true if it suits its purposes, and the courts can dutifully uphold its judgment and impose the corresponding penalties.

It is far from paranoid to think these likely. Not only have some of the Duterte government’s own agencies generated and spread false and misleading information, its online trolls and bots and its mercenaries in print and broadcasting have also debased informed and democratic discourse by spreading disinformation about journalists and the independent press, the opposition, farmers and workers organizations, lawyers, Church people, and administration critics.

Journalists’ groups and non-government organizations are already doing what they can to stop the dissemination and sharing of “fake news.” Facebook and other social media sites have put fact-checking mechanisms in place to protect Netizens from false and misleading content. The online sites that spread outright lies have been exposed by journalists’ and media advocacy groups and are fairly well known. Media literacy programs with an emphasis on understanding the new media are already in place in the educational system.

As dangerous as it is to free expression and press freedom, Senate Bill No. 9 is therefore also patently unnecessary. The Philippines does not have to ape authoritarian Singapore’s use of coercion to address the “fake news” problem. The initiatives of media literate citizens, technology companies and responsible journalists in combating false information should be enough — and are well within the implicit Constitutional mandate of media self-regulation.

 

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

www.luisteodoro.com

Surviving summer

How does one survive summer in the city?

It is like living in a pressure cooker. One needs to shut the senses to the searing, blinding heat. There is a water shortage. The water and electric bills are up. Temperatures are high.

There is a blanket of noxious diesel fumes spewed by dilapidated vehicles and factory smokestacks. The air smells like acrid burning rubber. A passing shower intensifies the humidity, releasing steam from the scalding pavement. The sparse parks are shrinking in size. The few square meters of open space have parched trees with withered twigs and dangling leaves. The dusty wind whirls over the narrow cracked sidewalks and alleys, scattering bits of paper and tin foil.

One can barely discern the hazy skyline of gray cement, pewter, steel, and glass buildings. Smog covers the distant skeletal structures. Too many skyscrapers are rising.

Mornings are sunny, hot and afternoons are sweltering, enervating. Living creatures seem to vanish in the scorching sunlight.

In the suburbs, birds and butterflies and other animals flee to the shade of the ancient acacia trees.

The flame trees are gloriously abloom despite the heat, but they don’t last long due to the grimy air.

However magnificent the new structures are, the metropolis is overbuilt, congested. There are too many towers, too many people, but not enough open parks trees and fountains to cool the place. Once upon a time, there used to be vast green fields, rolling hills, clear rivers with cool breezes.

After the past 20 years, development fatigue is setting in. At first, development was slowly creeping in. Then, it stripped the landscape and uprooted trees and shrubs. The once pristine river has become a smelly dumpsite, a stagnant canal.

In the older part of town, the urban blight is worse. The city is shrouded in smoke that dissipates only with heavy rain and wind. Then there is the gray acid rain.

The once splendid coastal boulevard is now an avenue with reclaimed land, buildings and casinos.

The pre-war bridges need repairs. The vintage art deco buildings are being demolished instead of being retrofitted and restored. The beautiful centuries-old Binondo church was restored by adding layers of cement to cover the original adobe stones with etched lines to appear like bricks. The statues of saints on the outer walls were spray painted a garish shade of gold.

Heritage advocates should try to remedy the situation by calling a heritage specialist/architect to coordinate with the parish priest or church authorities. The trompe l’oeil ceiling and the relics are photogenic. But the luster and ambiance of the old church are gone.

The luxury hotels that are almost 50 years old are being torn down to give way to skyscrapers. This is to avoid the ban on tearing down heritage structures.

City residents, students, professionals, office staff and workers have to brave the horrendous traffic caused by too many vehicles and not enough roads. There are not enough decent, safe modes of public transportation.

Garbage spills onto many sidewalks. Ironically, the trash is strewn outside the fences of immaculately clean homes and gardens. For some odd reason and a character fluke, most people seem to limit neatness and order only to the inner portion of their immediate surroundings.

Beyond the wall, who cares?

The lackadaisical manner and nonchalant attitude are symptoms of a general malaise. One can feel lonely in a city bursting with people.

The bay still has the best sunset in the world. The colorful spectacle is incomparable and awesome. The contrast lies in the murky waters whose stench is repugnant. The floating debris the river brings is the big scourge — loathsome non-biodegradable plastic.

There is hope for Manila Bay. There is a big civic group affiliated with tourism that is cleaning and saving the bay. They are removing the loathsome plastic.

The monsoon rains have started to wash away some of the filth and grime form the city. The rains bring blessed relief from the heat. The air is cleansed for a while of the soot. The smog disappears and is replaced by a fine mist.

The cityscape appears in soft focus. An Impressionist painting whose sharp angles now have gently blurred edges and soft delicate brushstrokes. Gardens and little parks come alive as grass and weeds sprout wildly. The trees, leaves and flowers glisten with tiny prisms and droplets. The winds cool the air and blow remnants of summer away.

The clouds unleash torrents that cascade over rooftops and splash on to the streets. Water seeps into every crook and cranny and flows into instant streams. After the rain, when the sun peeps through the clouds, the city is bathed in a special glow. Everything smells fresh and new. For a while.

One always has mixed feelings about the rainy season. It could be one’s favorite season because of the cooler temperature.

If there were no floods.

 

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

mavrufino@gmail.com

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