Senatorial elections and economic legislation

May 14, 2019 | 10:00 pm

Kuala Lumpur — During the May 2018 Malaysian elections between former PM Najib and returning PM Mahathir, the latter was an underdog, he promised that if he wins, he would abolish the gross sales tax (GST) of 6%. He won, he did what he promised, and GST went down from 6% in May to zero in June. Result was drastic, across the board price declines and inflation rate went down from 1.8% in May to only 0.8% in June 2018. The average inflation January-May 2018 of 1.7% became 0.6% in June-October 2018.

This is the kind of real inflation-busting policy reforms we wish to see in the Philippines. Last year, 2018, we had the highest inflation rate at 5.2% in East Asia. Second and third highest were Vietnam (3.5% )and Indonesia (3.2%). Malaysia had only 1.0%. Year-to-date 2019, the Philippines still has the highest in East Asia with 3.6% while Malaysia has -0.3%.

Now the 2019 senatorial elections has produced unofficial results and the top 12 so far are Cynthia Villar, Grace Poe, Bong Go, Pia Cayetano, Bato dela Rosa, Sonny Angara, Lito Lapid, Imee Marcos, Francis Tolentino, Koko Pimentel, Nancy Binay, and JV Ejercito.

Just outside the Top 12, as of this writing, is opposition reelectionist Senator Bam Aquino, who is opposed to oil tax hikes under the TRAIN law of 2017, the main cause of inflation spikes in the country. And he may lose.

This means that an important policy alternative to reducing inflation — reverting the VAT from 12% (the highest in East Asia) to 10%, even 8%, in exchange for drastic reduction in exempted sectors — may not be entertained.

The top two senators, Cynthia Villar and Grace Poe, would remain to be good in economic legislation. Senator Villar headed the enactment of the Rice Tariffication Law (RA 11203) while Senator Poe will help enact an amendment to the Public Service Act (PSA), an 87-year-old legal dinosaur that restricts competition from foreign players in five sectors including telecoms and transportation (land, sea, air). We need this kind of economic liberalization that will help reduce inflation and expand mobility of goods and people/services across the country, across the globe.

Philippine Congress 2016 to 2019 has produced plenty of local laws. In particular, from March to April 12, 2019, Congress passed 38 new laws, only 7 of which are of national application (18%) while 31 are local or franchise laws. Some 14 laws are not shown or missing in both the Senate and House of Representatives list.

From the perspective of tax-conscious and regulations-wary citizens, three of the seven may be good laws — 11234, 11239, and 11261. The other four are either neutral or would mean more bureaucracies, like 11235.

We hope to see a new set of senators and representatives who are aware of the defects of high taxes, economic nationalism and restrictions. In the process, they will pass legislation that can substantially reduce inflation and interest rates, and propel more economic growth and job creation.

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

Peso at one-month low on US-China trade war

May 14, 2019 | 9:00 pm

THE PESO plunged to a one-month low against the dollar on Tuesday due to China’s retaliation against the United States’ imposition of increased tariffs on Chinese goods.

The local unit closed Tuesday’s session at P52.435 versus the greenback, down 31.5 centavos from the P52.12-per-dollar finish last Friday.

This was the peso’s weakest showing in more than a month or since it closed at P52.44 per dollar on April 2.

The peso opened the session weaker at P52.37 per dollar, sliding to as low as P52.45. On the other hand, its best showing stood at P52.345 versus the US currency.

Dollars traded dropped to $881.1 million from the $1.001 billion that changed hands the previous session.

Foreign exchange traders said yesterday that the peso plunged versus the greenback due to renewed trade tensions between the US and China.

Chinese Finance Ministry said on Monday that Beijing is set to raise tariffs on $60 billion worth of American goods by June 1, a retaliatory measure for Washington’s increased levies on $200 billion in Chinese goods to 25% from the previous 10%.

US President Donald J. Trump said he had not decided on imposing the 25% tariff on the remaining $325 billion worth of Chinese imports.

Despite deepening US-China trade tensions, Mr. Trump confirmed he will meet his Chinese counterpart Xi Jinping next month during the G20 summit in Japan.

“Mainly, the dollar-peso is still driven by risk-off sentiment, which was also present in our local equity market given that it’s down by 1.23%,” a trader said in a phone interview, adding that the risk aversion among market players is seen across the Asian markets.

Another trader said apart from the trade tensions between the world’s two largest economies, the risk-off sentiment also stemmed from the anticipation of a possible cut in big banks’ reserve requirement ratio (RRR) on Thursday at the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board’s meeting.

Currently, commercial and universal banks are required to keep at least 18% of their deposits with the BSP.

Trimming the RRR by a percentage point is expected to unleash about P90 billion into the financial system.

For today, the first trader expects the peso to move between P52.35 and P52.65, while the other gave a P52.25-P52.55 range. — Karl Angelo N. Vidal

Shares plunge as China hikes tariffs on US goods

May 14, 2019 | 9:00 pm

By Arra B. Francia, Senior Reporter

SHARES PLUNGED on Tuesday after China’s tariff hike retaliation against the United States, alongside impacts of the MSCI rebalancing.

The bellwether Philippine Stock Exchange index (PSEi) fell 1.23% or 95.54 points to close at 7,646.66 yesterday. The broader all-shares index likewise slumped 1.14% or 54.72 points to 4,736.54.

“This selloff was triggered by China’s retaliation to the tariff hike that was imposed by the US last week,” Timson Securities, Inc. Equity Trader Jervin S. de Celis said in a mobile phone message.

China said it will raise tariffs up to 25% on $60 billion worth of US goods starting June 1, after Chinese Foreign Ministry Spokesman Geng Shuang was quoted as saying that China will “never surrender to external pressure.”

The tariff hike came less than a week after US President Donald J. Trump more than doubled tariffs to 25% on $200 billion worth of Chinese goods as he cited the slow negotiations with Beijing.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan also attributed the market’s volatility to latest developments in the US-China trade war.

“With the midterm elections now out of the way, most fund managers looked overseas, where most of the major market making activity was happening,” Mr. Limlingan said in a mobile phone message.

“Coinciding with this (China’s retaliation) is the MSCI quarterly review announcement which will take effect on June 3,” Timson Securities’ Mr. De Celis added.

MSCI trimmed the index weight of some local firms, including SM Prime Holdings, Inc. (0.17%), Ayala Land, Inc. (0.15%), BDO Unibank, Inc. (0.12%), SM Investments Corp. (0.10%), and JG Summit Holdings, Inc. (0.08%).

On the other hand, MSCI increased the weight of Ayala Corp. by 0.82% and International Container Terminal Services, Inc. by 0.36%.

“Given the negative development in the Sino-US trade war, the changes in weight of these stocks exacerbated the movement especially during the morning session,” Mr. De Celis said.

Four sectoral indices moved to negative territory, led by financials which plummeted 3.04% or 52.95 points to 1,685.88. Holding firms went down by 2.3% or 169.53 points to 7,176.38; industrials dropped 0.71% or 82.49 points to 11,445.83, while services slipped 0.02% or 0.4 point to 1,595.17. In contrast, mining and oil jumped 1.18% or 86.81 points to 7,412.09, and property rose 0.94% or 38.81 points to 4,156.81.

Turnover improved to P11.95 billion after some 919.79 million issues switched hands, higher than Friday’s P7.55 billion.

Net foreign outflows doubled to P1.46 billion, compared to the previous session’s P688.25 million.

Decliners were more than double the advancers, 140 to 57, while 37 names were unchanged.

Dynasts fall in parts of NCR

May 14, 2019 | 8:48 pm

DYNASTS were toppled in parts of the National Capital Region, according to results of the local race in this year’s midterm elections.

Former vice-mayor and basketball player Francis Zamora’s mayoral candidacy served to end the Estrada family’s decades-long dominance in San Juan City with 35,060 votes as against the 24,813 votes of Janella Estrada, the daughter of senatorial candidate Jinggoy E. Estrada. Mr. Estrada himself is trailing behind in the senatorial race at the 15^th slot as of this reporting.

Three members of the Ejercito-Estrada family have led the city in the past. Former president Joseph E. Estrada ruled San Juan mayor from 1969 to 1986, while his son and reelectionist Senator JV Ejercito held the position for three consecutive terms from 2001 to 2010. He was succeeded by his mother Guia G. Gomez.

Mr. Zamora ran under the ruling PDP-Laban. His father Ronaldo won the congressional seat of the lone district of San Juan.

Just like his granddaughter, the elder Mr. Estrada failed in his reelection bid in Manila to that city’s vice-mayor, Francisco “Isko” Moreno Domagoso, who took the lead in the mayoral race with 354,327 votes over Mr. Estrada’s 210,407 votes.

Pasig City will also have a new mayor in city councilor Vico Sotto, nephew of Senate President Vicente Sotto III and son of comedian and songwriter Vic Sotto. The younger Mr. Sotto won by 206,226 votes against the 119,726 votes of incumbent Mayor Robert Eusebio, whose family ruled the city for 27 years.

On the other hand, Makati City will still be led by its incumbent mayor Abigail Binay-Campos, who got 179,522 votes as against the 98,653 votes of her brother, former mayor Jejomar “Junjun” S. Binay Jr.

The family’s patriarch and longtime mayor, former vice-president Jejomar C. Binay, had an unprecedented defeat in his congressional bid in Makati’s first district, with rival Romulo “Kid” Peña securing 71,035 votes as against his 65,229 votes.

The Cayetano family of Taguig is poised to keep its hold on the city with three members leading the race in different posts.

Former Foreign Affairs Secretary Alan Peter S. Cayetano and his wife incumbent Taguig Mayor Maria Laarni “Lani” L. Cayetano are leading the city’s congressional elections in the first and second district.

Alan Peter’s brother Lino S. Cayetano is leading in Taguig’s mayoral race. — Vince Angelo C. Ferreras

Canvassing of votes begins

May 14, 2019 | 8:47 pm

By Gillian M. Cortez, Reporter

THE National Board of Canvassers (NBoC) convened on Tuesday, canvassing the first few certificate of canvass (CoC) from the midterm elections held Monday.

The CoCs, including from abroad, canvassed as of this reporting Tuesday late afternoon are from Mandaluyong (4^th District), Las Piñas, Lapu-Lapu City in Cebu, Athens (Greece), Makati (4^th District), Singapore, Camiguin, Marinduque, Agusan Del Norte, Sorsogon, Ilocos Norte, Bahrain, Muntinlupa, Southern Leyte, and Iligan City in Lanao del Norte.

Sitting on the NBoC board are Commission on Elections (Comelec) chairman Sheriff A. Abas and the poll body’s commissioners Al A. Parreño, Luie Tito F. Guia, Ma. Rowena Amelia V. Guanzon, Socorro B. Inting, Marlon S. Casquejo and Antonio T. Kho Jr.

Comelec on Tuesday said it is also mulling over charges against the developers of the Automated Election System (AES). “We’re reviewing with the law department…Let’s see if there are possible violations of contract,” Mr. Abas said, in connection with errors in the transparency server Monday night.

Mr. Casquejo also noted that the vote-counting machines (VCMs) used were the same ones used in the 2016 elections.

Smartmatic-TIM supplied the VCMs while S1 Technologies Incorporated provided the SD cards.

As of Tuesday morning, 961 VCMs are 961 out of more than 85,000 were reported defective; and 1,665 SD Cards out of a total 55,769 were also reported defective.

Mr. Abas still called the midterm elections “successful,” amid reports of malfunctioning VCMs as well as vote-buying.

“Wala kaming failure of election na natanggap….For us, isang magandang milestone ‘yun (We have no reports of failure of election [from any area]…For us, that is a good milestone),” he said at a press conference on Tuesday.

PPCRV BEGINS MANUAL ENCODING
For its part, election watchdog Parish Pastoral Council for Responsible Voting (PPCRV) on Tuesday began the manual encoding of election returns (ER) for the parallel counting of votes.

PPCRV Board Member Arwin A. Serrano said they have received around 8,000 election returns as of late Tuesday afternoon, most of these from Metro Manila and parts of Cavite.

He also said the ERs from other parts of Luzon, Visayas and Mindanao will have to be carried to their office via air transportation.

“Today, siguro lalagpas na tayo ng two-digit, baka ano na ‘yan 12,000 to 15,000 bago matapos ang araw na ‘to. Tomorrow we’re expecting mga 50% or more,” Mr. Serrano told reporters. (Today, maybe we can get past two digits, with around 12,000 to 15,000 (election returns) before the day ends. Tomorrow we’re expecting more than 50% or more).

PPCRV, which has some 300 volunteers, is tasked to encode copies of election returns they received and validate these results from the transparency server.

The National Citizen’s Movement for Free Elections (NAMFREL), for its part, said Tuesday it ruled out the possibility of hacking due to the delay in the transmission of unofficial election results over problems in the Comelec’s transparency server.

“There’s a big possibility that there was no hacking and the reason for that, when they started debugging, they know where to check, they know where to fix it,” Fernando “JR” Contreras Jr. of NAMFREL’s System Committee, said in a briefing on Tuesday.

“If you look at the timing, it was relatively quick, however, the negligence in testing is a different issue.”

The remarks followed a 7-hour delay in the transmission of election results to election watchdogs and media outlets. Operations were resumed at past 1:00 a.m., Tuesday.

“What can be done by the public to make sure the integrity of the election remains? One thing we can do, there are 30 copies printed per VCM, if any group has a copy of that they can verify it right now with the publicly available data,” Mr. Contreras said.

NAMFREL Secretary General Eric Jude O. Alvia suggested cross-checking the precincts with the election returns.

“There’s still the RMA (Random Manual Audit), I think the public has to look into those limited 715 precincts and just cross-check with the transmitted election returns,” he said.

“Another is that what we’re trying to do here in NAMFREL is that whatever VCMs that have been flagged and identified by us that were failing would be tracked for transmission points. We want to make sure that whatever vote that was cast in the precincts were processed and transmitted.”

The Philippine National Police (PNP), in its update Tuesday morning, said it has monitored a total of 225 incidents of vote-buying and arrested 441 violators. and eight rescued minors.

“Una, automated na kasi ang election natin (Our election is already automated). Seemingly, sabi nga ng Comelec, ‘yung mga VCMs natin ay incorruptible, hindi mo kaya i-manipulate (Seemingly, Comelec said that our VCMs are incorruptible, you cannot manipulate it. So the tendency ng mga kumakandidato (of the candidates) is they go directly to the voters,” said PNP chief Gen. Oscar D. Albayalde in a press briefing on Tuesday. — with Vann Marlo M. Villegas, Charmaine A. Tadalan, and Vince Angelo C. Ferreras

2 VCMs burned in Isabela hotspot; PNP probes why BEIs unescorted

May 14, 2019 | 8:38 pm

TWO VOTE counting machines (VCM) were burned on Tuesday morning by still unidentified armed men in Jones, Isabela, an area identified as an election hotspot and categorized under “grave concern.” According to the police report, members of the board of election inspectors (BEIs), with no police or military escort, were on their way to the Jones Municipal Hall to deliver election paraphernalia when a group of armed men blocked their way at 6:20 am. Upon reaching Barangay Sta. Isabel, the group of armed men ordered them to unload the VCMs and immediately burned the equipment. Philippine National Police chief Gen. Oscar D. Albayalde, in a live-streamed press briefing in on Tuesday, said they are looking into why the teachers, serving as BEIs, transported the election materials without security from law enforcement units. He said, “Remember, that area is a critical area, it is highly-influenced by the CPP-NPAs (Communist Party of the Philippines-New People’s Army).” — Vince Angelo C. Ferreras

UHRI files building permit application for P18-B resort-casino project

May 14, 2019 | 8:38 pm

GOKONGWEI-LED Universal Hotels and Resorts Inc. (UHRI) has filed its application for a building permit to start the construction of the P18-billion integrated resorts and casino development project on Kawit Island at the South Road Properties. Office of the Building Official (OBO) chief Josefa T. Ylanan said they are now reviewing the application and aim to release their assessment within the required 15-day period, which will fall within the month. “It’s still on process. I will have to endorse the copy of the plans to DPWH (Department of Public Works and Highways) for their comments since it’s on the national highway,” Ms. Ylanan told The Freeman. The first phase of the project includes the construction of a shopping center, integrated resort facility, convention center, performing arts theater, a theme park, one hotel, parking lot, and casino. The second phase will cover two more hotel buildings on the third and fourth year after the signing of the joint venture agreement with the Cebu City government. Ms. Ylanan said the OBO will check the structural design analysis if it is consistent with the design details on plan, electrical assumptions, yard regulations, among others. The UHRI will have to make the necessary corrections if the OBO engineers find any discrepancy. — The Freeman

Labella is new Cebu City mayor

May 14, 2019 | 8:37 pm

VICE-MAYOR Edgardo C. Labella (left) defeats Mayor Tomas R. Osmeña in the mayoralty race in Cebu City. The campaign was marred by allegations of vote-buying and harassment, but Mr. Osmeña conceded even before the official proclamation.

VM Lim defeats reelectionist Fernandez

May 14, 2019 | 8:36 pm

DAGUPAN CITY Vice-Mayor Marc Brian C. Lim defeated reelectionist Mayor Belen T. Fernandez by a narrow margin of 1,239 votes, based on unofficial results from 100% of election returns. Mr. Lim is the son of the late mayor Benjamin S. Lim, who was also a political opponent of Ms. Fernandez. Mr. Lim’s vice-mayoralty candidate, however, lost to Dean Bryan Kua, the incumbent mayor’s running mate. In his social media campaign page, Mr. Lim is quoted as saying, “Maraming Salamat Dagupan sa inyong tiwala at suporta. Ito ay tagumpay nating lahat (Thank you very much, Dagupan for your trust and support. This is a victory for all of us).”

Rep. Treñas wins as Iloilo City mayor

May 14, 2019 | 8:36 pm

REPRESENTATIVE JERRY P. Treñas of the lone district of Iloilo City will be serving next as mayor after he defeated his brother-in-law, incumbent Mayor Jose S. Espinosa III in Monday’s elections. Mr. Treñas’ slate under the National Unity Party (NUP) also dominated other local positions. NUP’s Vice-Mayor Jeffrey P. Ganzon was reelected while former city councilor, Julienne L. Baronda was proclaimed as the city’s first woman congressional representative. “I cannot contain the happiness I feel right now knowing that the people of Iloilo City did not leave me alone in this journey. And now, I can finally say, as the mayor of Iloilo City, I am now ready to bring Iloilo City to the next level,” Mr. Treñas said after his proclamation at around 2:45 a.m. Tuesday. Mr. Espinosa, at the city hall’s flag ceremony on Tuesday, thanked his supporters saying, “The elections are over so it is now time for reconciliation and unity. Thank you for the support. We will respect the results.” The outgoing mayor, in an interview with reporters, hinted on running for another position in the 2022 elections. “I shall return,” he said. — Emme Rose S. Santiagudo

Alvarez-led candidates beat Floirendo-Del Rosario bets in Davao del Norte

May 14, 2019 | 8:34 pm

By Carmelito Q. Francisco, Correspondent

DAVAO CITY — The hotly-contested province of Davao del Norte has been dominated by candidates under the Partido Demokratiko Pilipino–Lakas ng Bayan (PDP-Laban) headed by reelectionist 1^st District Rep. Pantaleon D. Alvarez, defeating the Floirendo-Del Rosario clan under the Hugpong ng Pagbabago (HNP).

Commission on Elections (Comelec) results show Mr. Alvarez won another term, beating outgoing Gov. Antonio Rafael G. del Rosario, while his chief of staff, Edwin I. Jubahib, defeated Mr. del Rosario’s brother Rodolfo Jr.

The cousin of the Del Rosarios, 2^nd District Rep. Antonio R. Floirendo, lost his reelection bid to outgoing Vice Gov. Alan R. Dujali.

The Del Rosario brothers conceded before the official proclamation on Tuesday, with both promising continued support the province where their father also served as governor.

“To the whole of Davao del Norte, I am just here. My family is just here that is ready to help you. Remember that all that I did as congressman and as governor, I did it for the people of Davao del Norte,” said the outgoing governor.

Mr. Floirendo, who earlier expressed intent to seek the speakership if he got reelected, also sent a “thank you” to his supporters.

OTHER DAVAO PROVINCES
In Davao del Sur, the Cagas family again dominated the elections with the patriarch, Douglas, getting reelected as governor, his wife Mercedes reelected to the congressional seat and son Marc Douglas IV becoming vice governor.

The mayoralty race in Mati City, Davao Oriental’s capital, is between cousins of the Rabat family — former mayor Michelle Denise N. Rabat, who was leading by 2,181 votes over her cousin, incumbent Mayor Carlo P. Rabat.

The count was based on 87.6% of the results transmitted, and the Board of Canvassers were scheduled to reconvene at 3 p.m. Tuesday.

In the provinces of Compostela Valley and Davao Occidental, and in Davao City, most of the candidates for the top positions won their reelection bids.

In Compostela Valley, Gov. Jayvee Tyron L. Uy, Vice Gov. Maria Carmen S. Zamora, and 2^nd District Rep. Ruwel Peter S. Gonzaga were running unopposed.

In Davao Occidental, Claude P. Bautista, his brother Franklin, and their sister Lorna P. Bandigan were all set to take the posts of governor, vice governor and lone representative to the House of Representatives, respectively.

Davao City Mayor Sara Duterte-Carpio has been reelected while her brother Sebastian, who was unopposed, will be vice-mayor.

On the reported delay in the transmission of results, Provincial Election Officer Jennifer P. Ancla explained that it was temporary as about 92% of the returns were transmitted as of 10:30 a.m. on Tuesday.

Ms. Ancla said the remaining problem was involved some corrupted secure digital cards that needed to “undergo Comelec protocols.”

MILF prepares UBJP party for 2022 polls as BARMM transitions in post-midterm elections

May 14, 2019 | 8:33 pm

SULTAN KUDARAT, MAGUINDANAO — Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Chief Minister Murad Ebrahim, also chair of the former rebel group Moro Islamic Liberation Front (MILF), cast his vote Monday, his first time to participate in national elections.

“We have always believed that the solution to the problem is a political one, not a military one. We were just forced to use weapons for survival and defense in the past,” he said in an earlier interview with BusinessWorld, remembering that the struggle started when “genocidal campaigns against the Moro people were committed” and worsened when Former President Ferdinand R. Marcos declared Martial Law.

Since the 71-year old joined what he calls the “Bangsamoro struggle” in 1969, his first participation in elections was in January this year for the ratification of Republic Act 11054, the Bangsamoro Organic Law.

As the BARMM, a fruit of the peace deal between the government and the MILF, transitions within the next three years with the elected officials in Monday’s midterm polls, Mr. Murad said they will also be preparing the MILF’s United Bangsamoro Justice Party (UBJP) for the 2022 elections.

“UBJP will be our political wing. Everyone who will be elected to be part of that party will work towards achieving our goals,” he said.

“The problem with most of our candidates (now) is that they cannot fulfill their campaign promises because these are individual commitments, but if the program is a program of a political party, and everyone is working towards achieving the goal, that will be more viable,” he said.

When asked to comment on the recurring violent incidents and reports of vote-buying in the region, the chief minister said the BARMM government aims to address those concerns.

“This is included in our moral governance. Until we erase the evils in our system, we will have a hard time attaining progress.” — Tajallih S. Basman