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DA has P5B in initial funding pending generation of revenue for RCEF

THE Department of Agriculture (DA) has been advanced P5 billion from the re-enacted 2018 Budget pending the generation of revenue to finance the Rice Competitive Enhancement Fund (RCEF), with another P5 billion from the RCEF proper expected by the third quarter, the National Economic and Development Authority (NEDA) said Monday.

“Mayroon nang napaunang P5 billion (The first P5 billion has been released). About P1 billion out of that has to be given to the farmers. DA is now trying to allocate some parts of it to the various agencies who are supposed to receive the RCEF,” Mercedita A. Sombilla, NEDA Assistant Secretary, said in a briefing in Intramuros.

The Department of Budget and Management (DBM) has said that it has released P5 billion to the DA. However, the DBM also said that the RCEF itself must await the generation of funds from tariffs imposed on imported rice.

RCEF is intended to help cushion the blow on domestic farmers from the liberalization of rice imports and hopes to increase the rate of farm mechanization, access to seed, farmer training and financing, among others.

“Kinakausap na namin ang DA (We’ve spoken to the DA). As much as possible, (it needs to) find measures to allocate some money to PhilMech, PhilRice, and to the training institutes which should be receiving money from RCEF,” Ms. Sombilla said, referring to agencies promoting farm mechanization and rice-growing best practices.

“The additional funds will come third quarter,” according to Ms. Sombilla.

Ms. Sombilla said that the guidelines on how to use the funds are currently being prepared and will soon be rolled out.

The Rice Tariffication Law hopes to bring down the price of rice by bringing in cheaper foreign grain more freely, with the competition potentially affecting farmer incomes. RCEF hopes to make them more productive a few years after the gats are opened to more imports.

Rice prices have been trending down in anticipation of competition from cheaper foreign rice, contributing to the decline in inflation in the first quarter, the Bangko Sentral ng Pilipinas (BSP) has said.

According to Ms. Sombilla, the implementation of the law will also reduce the market share of rice supplied by the National Food Authority (NFA). The NFA has been relegated to maintaining a buffer stock from rice procured from domestic farmers at P20.70 per kilo.

“Targeted na ‘yung beneficiaries, hindi na nationwide (The beneficiaries will be more targeted, and low-cost NFA rice will no longer be available nationwide). Rice might sell for P32 to P34 [per kilo]. The targets will really be poor households. I don’t think we will allow NFA to put it out at a price where they fully cover their costs, but we can probably put it out at a lower price, but subsidized,” Ms. Sombilla said.

Asked how much the government is willing to subsidize, Ms. Sombilla said around P2 to P3 per kilo.

“These are just rough estimates. What we’re trying to do is to get the NFA to sell it at a price na ‘di sila lugi (that will not cause them to lose money),” Ms. Sombilla said.

She added that the targeting process for selling subsidized rice will take in factors like poverty and vulnerability to calamities. “It’s going to be several factors. We have to study,” Ms. Sombilla said.

Ms. Sombilla said that import shipments are assumed for planning purposes to take 28 days at the most. — Reicelene Joy N. Ignacio

WB, ADB working to eliminate duplication in PHL programs

THE World Bank Group is now working with a coordinated country program to help eliminate project redundancies with the Asian Development Bank (ADB), according to the Department of Finance (DoF) on Monday.

“As Secretary Dominguez had mentioned, we will bring us (ADB and World Bank) together to discuss further how we can work together,” DoF quoted World Bank Vice President for East Asia and the Pacific Victoria Kwakwa as saying in a statement.

According to the DoF, David Malpass, President of the World Bank Group, said that he spoke with ADB President Takehiko Nakao on how to reduce overhead and facilitate coordinated development efforts.

Mr. Malpass said that World Bank and ADB should form a subgroup that will focus on specific areas of assistance such as infrastructure, to avoid redundancy and to ensure that these projects are implemented efficiently, the DoF said.

“Why do we have to get two economic reports from ADB and WB? Maybe there’s a way to work together and to reduce overhead. I put myself in the place of a small country, why do I have to deal with two bureaucracies that do virtually the same thing,” Finance Secretary Carlos G. Dominguez III said in his meeting with Mr. Malpass, as quoted in the statement.

“I think our engagement with the World Bank at this time is quite intense and I think more intense it was than in the last administration,” Mr. Dominguez added.

The DoF also noted that Mr. Malpass told Mr. Dominguez to propose how the Bank can help the Philippines better attain sustainable growth.

Last week, in a news conference in Mandaluyong, Mr. Nakao said the ADB is in constant communication with Mr. Dominguez about the latter’s idea of close coordination between ADB and World Bank.

“I think it’s a very good idea and we are in constant communication with Secretary Dominguez on how to use our resources for the Philippines, and I appreciate his devotion to make the Manila meeting last year go well and it was very successful and commended by many participants,” Mr. Nakao said.

“The ADB is now doing more work in the Philippines and Secretary Dominguez said ADB should play a larger role in the Philippines. He said we should cooperate more, so this means that in forming country strategies, we can align our ideas more,” he added. — Reicelene Joy N. Ignacio

Japan packaging firm Packwell to set up shop at DLI Davao industrial estate

DAVAO CITY — Packwell Inc., a Japanese company that manufactures paper-based packaging and containers, has signed an agreement to establish operations at the Floirendo-owned Anflo Industrial Estate (AIE) in Panabo City, Davao del Norte.

Under the deal, signed in Tokyo last week, Packwell will build a production facility in a 1.6-hectare area within the agro-industrial hub, according to a statement yesterday from Damosa Land Inc. (DLI), the property arm of the Floirendo group and operator of AIE.

Packwell, the 11th locator and the first Japanese firm in the economic zone, will “take advantage of AIE’s support facilities for manufacturing, warehousing, processing and exporting. Complete with world-class water and power systems, ample space, wide roads and logistical networks,” DLI said.

Other companies that have signed up for space within AIE are from the Netherlands, China, and the United States.

Packwell will start building its facility this year, its fifth after three other sites in Japan and one in China.

“This (Japanese facility) is expected to add job opportunities as well as to peripheral business opportunities in Panabo City and neighboring cities, constituting a big win for Davao del Norte and Mindanao,” the company said.

AIE, a 63-hectare industrial hub accredited by the Philippine Economic Zone Authority, focuses on agro-industrial processing and light manufacturing. — Carmelito Q. Francisco

CA rules against PAGCOR in licensing dispute with Waterfront

THE Court of Appeals (CA) has denied an appeal by the Philippine Amusement and Gaming Corp. (PAGCOR) to reverse a previous decision which called on the regulator to issue a license to operate to Waterfront Philippines, Inc. for its proposed hotel-casino.

In a two-page resolution on April 22, the CA former 6th division affirmed its October 2018 decision saying the arguments raised by PAGCOR had already been considered in the earlier decision.

“After carefully considering the grounds raised in the subject motion, We find that the said reasons and the arguments in support thereof have been amply treated, discussed and passed upon in the subject decision.

“The additional arguments proffered therein constitute no cogent or compelling reason to modify, much less reverse, it,” it ruled.

In its previous decision, the CA affirmed the 2017 decision of Judge Armando A. Yanga of Manila Regional Trial Court Branch 173 which ordered PAGCOR to immediately issue a provisional license to operate and approve Waterfront’s application and proposal for the Grand Waterfront Hotel and Casino pursuant to the Bagong Nayong Pilipino Manila Bay Integrated City Project.

This stemmed from the March 2015 petition for mandamus of Waterfront which claimed that there had been no action on the part of PAGCOR despite its submission of all the documents for the project in compliance with the April 23, 2008 letter of PAGCOR.

The documents included the project proposal, company profile, and cash deposit of $100 million, among others.

The court said in the decision that it is “ministerial on the part of PAGCOR to act upon Waterfront’s application,” noting that Waterfront has complied with PAGCOR’s requirements.

“Considering that no additional documents were further required to be submitted, Waterfront is deemed to have completed the requirements for its project application, which warranted the review and evaluation thereof,” the CA had ruled earlier.

The court also awarded Waterfront P100,000 each for moral and exemplary damages.

The resolution was written by Associate Justice Samuel H. Gaerlan and concurred in by associate justices Celia C. Librea-Leagogo and Maria Filomena D. Singh. — Vann Marlo M. Villegas

PCC claims authority to review all anti-competitive deals, seeks dismissal of Grab petition

THE Philippine Competition Commission (PCC) asked the Court of Appeals to dismiss Grab Philippines’ (MyTaxi.PH, Inc.) and Uber Philippines’ joint petition questioning the agency’s authority to intervene in a consummated deal that falls below legal notification thresholds.

Competition Commissioner Johannes Benjamin R. Bernabe said the anti-trust agency submitted its position to the appellate court last month.

“The CA asked us to file a comment… We cited the provisions in our law which allowed us to do that,” Mr. Bernabe told reporters in Makati City last week.

Mr. Bernabe said the ride-hailing firms challenged before the court in late 2018 the PCC’s authority to conditionally approve the March 2018 acquisition subject to the performance of interim measures related to its quality of service and pricing.

Republic Act 10667, or the Philippine Competition Act of 2015, authorizes the PCC to review mergers and acquisitions that may result in a substantial lessening of competition.

The law also gives the PCC the power to review consummated deals motu propio, or on its own initiative, if it has sufficient evidence or reasonable grounds that the deal, even if it falls below the notifiable threshold values, is anti competitive.

Grab Philippines was asked to comment but had not replied at deadline time. — Janina C. Lim

The parable of the tax collector… and the taxpayer?

In the Christian scriptures, Jesus shared this parable to those who were convinced of their own righteousness and despised everyone else:

“Two people went up to the temple area to pray; one was a Pharisee and the other was a tax collector. The Pharisee took up his position and spoke this prayer to himself, ‘O God, I thank you that I am not like the rest of humanity — greedy, dishonest, adulterous — or even like this tax collector. I fast twice a week, and I pay tithes on my whole income. But the tax collector stood off at a distance and would not even raise his eyes to heaven but beat his breast and prayed, ‘O God, be merciful to me a sinner.’ I tell you, the latter went home justified, not the former; for everyone who exalts himself will be humbled, and the one who humbles himself will be exalted.”

The parable is one of the more fitting passages for reflection during Lent, and the story definitely has a spiritual meaning attached to it. The account has two main characters: the tax collector (the Publican, in some versions); and the Pharisee.

In reading the description of the characters, one might wonder why the tax collector appeared to be associated with wicked persons. Well, such attribution has a historical context that we can read in the literature about the Jews and the Roman Empire. At present though, stumbling upon such portrayals of tax collectors might not be a good idea for a taxpayer who just had an unreasonable tax audit. Of course, it would be unfair to think the same of our government tax collectors, given the different setting and circumstances.

Close examination of the parable, however, would lead us to focus more on the other character — the Pharisee. In the parable, the Pharisee seemed to be proud of his being good and upright — perhaps, he believed that he did not have any fault, committed no error, and can fully support his beliefs about himself. Would some taxpayers relate to this claim? For taxpayers who are compliant with the tax rules, there is no problem; but for those who make the claim without first checking on themselves, there might be a problem.

In claiming to be compliant, a taxpayer should remember that this can always be challenged by the tax authorities. In our country, the tax audits could come from the Bureau of Internal Revenue (BIR), from Local Government Units (LGUs), or from the Bureau of Customs (BoC).

With the BIR, as the April 15 income tax filing has passed, taxpayers may expect that taxable year 2018 will now included in the pipeline for possible BIR full-scope audits. Remember that the supposed extensive tax amnesty proposal has been reduced in scope. While the estate tax amnesty and the tax amnesty on delinquencies, under Republic Act 11213 and the related Revenue Regulations No. 4-2019 recently issued, are welcome developments for taxpayers, the taxpayers may continue to anticipate thorough tax inspections by the BIR covering the open taxable years.

On the other hand, it was previously reported in the news that Philippine companies should be ready for potential BoC audits as a result of the recent signing of the BoC’s Customs Administrative Order 01-2019. The order implements the post-clearance audit function of the BoC. That function was previously transferred to the Department of Finance in 2014, and was then subsequently returned to the BoC in 2017, a year after the Customs Modernization and Tariff Act was signed into law. Those affected by these developments are involved in import transactions. There have also been discussions that quite a number of BoC audit notice letters have been issued or are waiting to be released to the subject companies. Hence, this is something to watch out for.

Another notice of audit that a taxpayer may expect is issued by LGUs. The frequency and extent of these audits varies by jurisdiction; what they all have in common is that this audit, which mainly focuses on the examination of the taxpayer’s gross receipts/income, is another test that could pose a challenge to tax compliance.

In anticipation of the above types of tax audits, not to mention other regulatory requirements or examinations, it would be worthwhile for taxpayers to reflect and revisit their tax practices and relevant records. With the countless BIR issuances, BoC orders, LGU tax ordinances, and other rules, it would be prudent for the taxpayer to check the proper use of their manpower and other resources and to consult with experts. These measures would help ensure that a taxpayer does not fall into the danger of claiming “false self-righteousness” as in the parable. Otherwise, the risk will always be there — that a taxpayer could be “humbled” in a tax audit that might hit like an unexpected earthquake.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Olivier D. Aznar is a partner from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

The China Issue: Impressions of a military mind

For the last five decades, the Philippines has fought the communist insurgency whose roots and foundations originated from Communist China. In spite of China’s shift to a free market economy and becoming the second largest economy in the world, the foundations of its political system are still basically communist-inspired. Why then did the Philippines, a country founded on democratic ideals, so quickly shift its alignment to China? Is it economic or political, or both? Notwithstanding China’s claim that it is here as a friend, the signs of its overbearing attitude indicate subjugation and subservience. This will be disastrous to the next generations of Filipinos. China will carry out its foreign relations in the international community predicated on the communist vision of protracted wars.

This article will delve on limited significant factors as seen by a professional soldier who has been exposed to and has managed scenarios relating to crisis and violence, both local and regional.

According to Sun Tzu, “Tactics without strategy is the noise before defeat. The battlefield is the scene of constant chaos, the winner will be one who controls that chaos.”

When China declared its nine-dash line in the South China Sea, it was the start of a grand strategy to create chaos in the area. The chaos attracted not only the claimants but the whole world as well. It has become a flash point of conflict and gained world attention. Despite repeated diplomatic protests, China never acquiesced. In fact, it continues to carry out its uncontrolled intervention, be it infrastructure development or intimidation of our fishermen. The chaos has multiplied that neither strong world opinion nor the United Nations can bear on China to slow down.

Frontal confrontation by a world power, like the US, will only exacerbate the situation that may start a world war. Humanity cannot afford such a war. The destruction will be irreversible. Chaos breeds a series of conflicts in many forms. It is not the consequence of the rational pursuit of self-interest. It flows from the deepest wellspring of human nature in the pursuit of power. The leadership of the Chinese Communist Party wields enormous influence. The power that flows from its mantle is creating chaos and conflicts that are changing the global architecture.

Clausewitz said: “War is a continuation of politics.” The political posturing of China is an extension of its war for world domination. It has started with small countries like the Philippines, through economic strangulation, a tightening of the noose that will end in suffocation and eventual voluntary surrender.

The Communist Party has calibrated its mindset for insatiable ambition to be a great power. The struggle for power begins with the attempt to exert influence and extend domination over others. Clearly, China wants to replace the US as the dominant world power. The unfortunate victims of this enormous ambition are small and indefensible countries such as the Philippines that continue to be a whipping boy from the bullying tactics of China. China is drunk with the desire for expansion and the Communist Party rules with this passion.

soldiers

Is China a friend to the Philippines or an adversary? In military parlance, the indications negate that it is a friend. By not respecting our sovereign rights, we are being treated as a de facto enemy. China has infiltrated and violated the very realm of our legal personality in the community of nations.

We are all well familiar with the Trojan horse. Beware of Greeks bearing gifts — be on guard if an enemy offers an apparent gesture of friendship. Greeks broke the resistance by giving the impression that conflict was non-existent. In like manner, the Chinese have creeped in very quietly offering sweeteners as part of their confidence-building measures to influence our decision makers to accept their concessions, such as in the form of liberal loan packages and developmental projects disguised as altruistic gestures for a country whose appetite for capital is unlimited. We have been mesmerized and infatuated with a Trojan horse, unaware of the real motives, blind to their real intention. Behind these offers is the entry of a huge number of undocumented Chinese workers that has flooded certain businesses in the retail and construction industry.

The tale of the Trojan horse has become a ruse to gain entry into areas of sovereignty and economic dependence. Can we still at least mitigate the ruse? The magnitude is so great unless a superpower intervenes using diplomatic influence and initiative. The Trojan horse principle utilizes the element of surprise. With chaos, defenses are easily infiltrated. We have been taken off-guard. The buildup of military facilities in the Panatag (Scarborough) Shoal and Panganiban (Mischief) Reef, among others, has underscored our weak defense system. Friendship and goodwill, which have guided our foreign policy in dealing with China, have actually created a trap where an exit strategy is untenable.

The use of lies and half-truth is a tactic that is widespread in business and commerce, politics, and even in religion. What is not understandable is our penchant for profuse hospitality and trust. The Communist Party of China has indoctrinated its people, especially the youth that comprise the majority of their population, that areas within the nine-dash line are part of China. The tsunami of public opinion coming from this generation of Chinese will be the greatest deterrent to normalize the crisis in the West Philippine Sea. This is misinformation of such great magnitude. What counteraction do we have in our public relations arsenal to neutralize such misinformation?

Why have we fallen into this ideological trap? Foreign Affairs Secretary Teodoro L. Locsin, Jr. has expressly stated that the US is our only military ally. This is a very encouraging statement.

US Secretary of State Michael Richard Pompeo, during his recent visit to Manila, categorically stated that the US will react with military dispatch if the Philippines is threatened. However, this statement does not give a response to a specific scenario. When the threat was still manageable, the US never lifted a finger to neutralize China’s creeping invasion. It merely stood on the sidelines as a spectator.

As had been seen in Chile and Iraq in the past, the US waits for a country to deteriorate before it comes in for easier control. In the Philippines, they only came in when the dictatorship was at its ebb of decline. It is, therefore, wishful thinking that we will be rescued by the US from the jaws of China’s uncontrollable ambition.

China will continue its assertive and intimidating stance beyond the realm of acceptable political and diplomatic norms. It will not listen nor act on any diplomatic protest. It will continue to infiltrate and threaten our sovereign rights, and send undocumented Chinese nationals without respect for our immigration laws.

The clouds are slowly closing in on us. What shall we do now?

The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.

 

Lt. Gen. Jaime S. de los Santos (Ret.) is former Commanding General of the Philippine Army, Force Commander of the 24-Nation Multinational UN Peacekeeping Force in East Timor, Professorial Lecturer (part-time) at UP Diliman, and a member of the MAP National Issues Committee.

jaime_dlsantos@yahoo.com;

jimmydlsantos@gmail.com

map@map.org.ph

http://map.org.ph

Surveys not useful in these times

I have written here after every election that the results bear out the surveys. The results of the 2013 midterm election for senators and the 2016 presidential election validated pollsters Social Weather Stations’ (SWS) and Pulse Asia’s forecasts.

In 2013 all the 12 senatorial candidates projected to win by SWS and Pulse Asia did win. In 2016 the two pollsters projected Davao City Mayor Rodrigo Duterte and Camarines Sur Representative Leni Robredo as the winning presidential and vice-presidential candidates. They even got the rankings of the candidates for the top two positions right.

Detractors of political polls cite the case of the American pollsters’ forecast of a Hillary Clinton victory over Donald Trump in the US presidential election in 2016 but it was Trump who was declared winner. Clinton did receive more votes than Trump as the polls projected. But the winner in the US is not based on who garners the most votes. The votes cast in the Electoral College determine the winner. A discussion of the US electoral system here would serve no purpose.

Other non-believers of surveys maintain that results of public opinion polls cannot be considered reliable indicators of the actual results of elections, pointing out that the ranks of the candidates in the polls do not jibe with the ranks of the actual election winners. But what the critics do not take cognizance of is that respondents are asked who they would vote for if the elections were held on the day of the interview, not on the day of the actual elections. A lot of things happen during the days between the day of the interview and the actual Election Day.

The changing preference of voters to a large extent is influenced by the events preceding the conduct of the surveys. The survey results reflect the sentiments of the people at the time the survey is conducted. SWS asks its respondents the question: “If the elections were held today, who would you likely vote as (position)?” Pulse Asia asks, “If the elections were held today, who would you vote as (position)?”

Voters’ attitude changes as circumstances change. Campaign strategists, like good military generals, adjust their strategies according to how the battle goes. We see that in the frequent changes made in the advertising messages of the candidates.

When Grace Poe ran for the Senate in 2013 as Grace Poe Llamanzares, her married name, she placed several notches below the 12th place in the polls. But when she dropped Llamanzares from her name and made known she was the daughter of Fernando Poe, Jr., her rank in the polls shot up to No. 5. When she ran for president in 2016, she emerged as topnotcher among the candidates in the early polls. When questions about her citizenship were raised, she fell behind Vice-President Jejomar Binay, who had been the expected winner before Poe’s name was floated.

Some doubters of the validity of survey results cite as evidence of faulty forecasting the case of two commissioned senatorial surveys of SWS conducted in the same period but presenting two different sets of probable winners. An SWS survey commissioned by Presidential Political Adviser Francis Tolentino showed Senator Cynthia Villar as the possible topnotcher in the 2019 elections. She was followed by Senator Grace Poe and Congresswoman Pia Cayetano, who were tied at 2nd place. Rounding the top five were Senator Koko Pimentel and former senator Lito Lapid, who shared the No. 3 slot.

Another SWS survey commissioned by the Lakas–CMD party forecast Senator Poe as the senatorial candidate in 2019 garnering the biggest number of votes. She was followed by Senator Villar then by Congresswoman Cayetano. In 4th spot was Senator Nancy Binay and No. 5 was former Senator Lito Lapid.

However, the Lakas-CMD-commissioned poll listed 39 candidates to choose from while the Tolentino-commissioned survey presented only 24 names. The more candidates to choose from the more widely scattered the votes cast would be. Votes that would have been cast for any of the top five in a list with 24 names went to any of the other 15 names in a list of 39 names.

Sometime in March a press release issued by the camp of former Special Assistant to the President Bong Go said that he (Go) received the approval of 47 percent of the respondents in a supposed SWS survey conducted in late February, placing him in solo third place in the ranking of senatorial candidates. The press release further said that the survey finding reflected a continuous improvement from his previous 5th to 6th place in January.

However, SWS President Mahar Mangahas said the survey was not theirs. The SWS posted on its website on March 7 a “Public Reminder” that it “again reminds the public that false reportage about SWS surveys is very common in the period leading up to an election. Everyone is enjoined to rely only on the SWS website (www.sws.org.ph) for its advisories, announcements, and survey reports released to the public.”

It noted that many surveys on preferences for national and local positions are being conducted by various groups in the run-up to the May 13 elections, that some of these groups are legitimate, while others are not.

Legitimate or not, survey results are now used as campaign materials. They are used to create a bandwagon effect. “Vote for the winnable candidate” is the exhortation of campaigners of leading candidates.

Social Weather Station and Pulse Asia have become mighty political forces. Their surveys have unduly influenced the outcome of national elections. Surveys have become significant factors in the political process. Instead of the campaign managers using survey results as basis in the formulation or revision of their campaign strategies, as they were originally meant for, they are now urging the voters to use the results as basis in the choice of their officials.

A religious sect’s endorsements are clear demonstration of the misuse of the poll results. Its endorsement of candidates is influenced by the survey results. It does not influence the voters’ decisions, as believed by politicians.

It has been my suspicion that the sect endorses only those candidates that the polls show to be likely winners. That suspicion has been proven to be correct in past elections. It endorsed early in the campaign period candidates who ranked steadily among the top five candidates favored by the survey respondents but delayed its endorsement of candidates ranked between 7th and 9th. By so doing, It sustains the myth that its endorsement assures victory.

I was in charge of the public opinion surveys at the Gallup Poll affiliate Robot Statistics, the first and at the time the only independent research firm in the country, in 1960. When the firm was commissioned to conduct a political survey, it was stipulated in the contract that the results of the survey would be for the private use of the client and were not to be released for public consumption. Robot released its election forecasts only after the polling places had been closed. The Daily Mirror (an afternoon daily) put out an Extra edition to announce the results of the survey after the close of polling booths, when the survey results could no longer be used to create a bandwagon effect.

That should also be the policy of SWS and Pulse Asia with regard to non-commissioned surveys (surveys they conduct on their own) — to announce the results of their surveys after the polling precincts have closed. I believe the heads of the two survey firms are both Political Science professors. They therefore should know that a large number of voters cast their vote like they are placing bets in a horse race — they vote for the odds on favorites.

Besides, survey results nowadays may not reflect the true sentiments of the respondents. As President Rodrigo Duterte has shown a disdain for criticism and opposition, as evidenced by the fate of Senators Leila de Lima and Antonio Trillanes,, Chief Justice Lourdes Sereno, media organizations Philippine Daily Inquirer and Rappler, and journalist Maria Ressa, survey respondents could also be afraid to say something not favorable to him, his policies, and his anointed senatorial candidates — Bong Go, Bato de la Rosa, and Francis Tolentino.

Interviews are conducted face-to-face. The respondent’s name and address are known to the interviewer. The interviewer’s true purpose may be dubious to the respondent. It should be noted that SWS has not conducted a survey on senatorial candidates since January or if it has, it has not released the results. I hope the other credible pollster Pulse Asia would follow suit, given that respondents’ answers may not be reflective of their true sentiments anyway.

 

Oscar P. Lagman, Jr. is a member of Manindigan! a cause-oriented group of businessmen, professionals, and academics.

oplagman@yahoo.com

What is the body saying?

By Tony Samson

MANY of our communication habits are cultural, and sometimes non-verbal. Such expressions take both forms (receptive and expressive). In a restaurant when asking for the bill, an imaginary square is drawn in the air with both sets of thumbs and forefingers. When one gets the waiter’s attention, he understands the message and the bill is promptly delivered. He can, of course, turn off his receptive skills by looking up at the ceiling and then at his fingernails looking for a stray cuticle to declare — are you talking to me?

Are there non-verbal signals applicable in the workplace?

Facial expressions are the first signals to watch out for. A fatigued and distracted look indicates more pressing matters than the approval of your request for a transfer of parking space closer to the elevator. It’s best to defer your agenda at a more propitious moment — nothing important, Sir…catch you later.

The CEO is texting without let-up and going through photo galleries on his phone, sometimes even smiling to himself at some message that popped up, not once looking up while you are presenting the strategies to make your unit the center of the universe. Is this a sign of disdain, or at the very least a lack of interest? Of course, it is. Can your office stuff fit in one portable box to be cleared by tomorrow?

Body language can also express a cooling of relations. The “avoidance waltz” is obvious to somebody paying attention. When X moves to the right, does Y automatically move to the left? Here, lesser beings are used as physical screens to avoid contact the same way a 3-point shooter uses blockers to get an open look.

Meetings for higher-ups can involve abruptly moving the time and then holding the conference outside the office, or country. These rescheduled events involve fewer people than before. (You’ve been dropped.) The Fence Sitter’s “Rule on Rescheduled Meetings” states: The more unusual the time and venue for a meeting called by a superior, the higher the probability of bad news for the persons suddenly excluded.

Do facial expressions like “a blank look” need to be translated? The warm greeting met with a vacant stare indicates any of the following: 1) The greeted party doesn’t know who you are; 2) He knows very well who you are but is pretending to be somebody else like a lost twin brother of the CEO; Or 3) He is more interested in the person right behind you and is wondering why you are blocking his view.

While media seldom get it right, corporate changes featured in the business news (he stepped down to spend more time with his family) often point to a crisis — where there’s smoke, there’s somebody smoking. When the questioned executive (Sir, is it true you were forced out of the company?) looks like a dagger has been plunged in his back, he is likely to avoid the question. (He is rushing for the exit.) There’s no need to repeat it. He heard it the first time.

Julius Caesar, the clueless victim of a palace coup had all the warnings of people whispering in small groups and even a soothsayer impeding his progress to the forum, with a clear warning to beware the ides of March. The famous exchange is between Caesar saying that the ides have come, and the soothsayer replying, “but not yet gone.” (It ain’t over till it’s over.)

Alertness to body language and hidden messages should be developed.

Still, there is the danger of reading too much into simple greetings so that even the most innocent actions are given conspiratorial overtones. What did his smile mean when he said “good morning” in the elevator? Why was he looking up at the numbers of the floors after the greeting? Does it mean my number is also up?

Words have literal meanings and interpreting their unintended connotations too minutely can lead to paranoia. What can be worse than being dismissed as “too insecure” and reading too much between the lines? Freud himself mused in his interpretation of dreams that, “sometimes an umbrella is just an umbrella.”

Still, when it comes to facial expressions, raised eyebrows combined with a sneer at your approach need no further comment.

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Is there a middle ground between employment and entrepreneurship?

By Mary Ritz Pay Seng

“HINDI ka yayaman sa pagiging empleyado,” the saying goes (You won’t become rich as an employee).

The implication in this statement is that more Filipinos should pursue entrepreneurship. Owning your own business is the path to financial success — rather than earning a fixed salary, you can potentially keep all the revenues from your company.

While encouraging Filipinos to pursue business is beneficial, this thinking is flawed. Not every person is cut out to be an entrepreneur. Some may not be ready now, needing a few years more experience, while others may never be ready. Every person has different personalities and propensities for risk, after all.

Rather than only encouraging Filipinos to become business owners over employees — which is a false and unhelpful dichotomy — we should instead encourage them to make investments in the way that they are most comfortable with. The easiest path to do so has traditionally been investing in the local stock market, but even this is prohibitive for many.

Fewer than 1% of Filipinos invest in the local stock market. If you ask Filipinos who are interested in investing in stocks why they don’t, their reasons will mostly relate to ignorance, either of companies and industries or even on how to sign up to trade in the first place. The barrier to investing in stocks is too high for the vast majority of Filipinos.

entrepreneur

Fortunately, the new digital economy is making it easier to invest. Local crowdfunding platform Cropital gives Filipinos the opportunity to back local farmers and then earn a return from their investment, once the farmer has produced his yield and sold his goods at market.

InvestEd offers a similar opportunity, this time with college students: By backing those in need of tuition and financial assistance, you can grow your money by as much as 11% per annum. These solutions are especially welcome in the Philippines because they are two-sided innovations: They help beneficiaries who need money on one hand and investors who want to put their money to work on the other.

There are also international platforms helping Filipinos more easily invest. One of the most notable to recently arrive is social trading platform eToro, which enables Filipinos to invest in a wide variety of financial instruments, including everything from stocks and currencies to commodities and cryptocurrencies.

One of the more unique investment vehicles are eToro’s thirty CopyPortfolios. These do not exist on any other product or platform because they are a part of eToro’s Copytrader feature, which allows new investors to copy the investments of other investors, which they can vet through their publicly available data. Users can see their risk score, portfolio composition, and most importantly, track record, all of which are meant to make it easier to invest.

In the wake of local platforms like Cropital and InvestEd, and international platforms like eToro, I think we should reconsider the idea that entrepreneurship is the only path to financial success. While so-called “hustle porn” is popular — content that glorifies and romanticizes the journey of entrepreneurship — it promotes ideals that are simply not true. You don’t have to choose between employment or entrepreneurship. There are many financial solutions at your disposal. Choosing those that you are most comfortable with is the best kind of financial freedom that I know.

 

Mary Ritz Pay Seng currently works as a digital marketing manager for a tech company start-up as well as a digital specialist for SearchGuru.

Peso climbs as appetite improves

THE PESO ended higher on improved risk appetite.

THE PESO strengthened against the dollar on Monday amid quiet trading as risk appetite increased following strong US economic data released last week.

The local unit closed Monday’s session at P52.11 versus the greenback, up seven centavos from the P52.18 finish last week.

The peso traded stronger the whole day. It opened the session at P52.09 per dollar and surged to as high as P52.06 during the trading session. Meanwhile, its intraday low stood at P52.16 against the US currency.

Trading volume picked up to $957.02 million from $787.81 million that switched hands the previous session.

A foreign exchange trader said the peso traded within range yesterday amid quiet trading, as market participants await a slew of economic data, including domestic gross domestic product (GDP) growth and inflation, as well as monetary policy decisions from both the US Federal Reserve and Bangko Sentral ng Pilipinas.

“We’ve only started the week, so the trading was fairly quiet,” the trader said in a phone interview. “Also, it’s a holiday in Japan for the rest of the week, so Asia time would be fairly quiet for the entire week.”

The trader added that the peso was stronger on the back of positive data in the US such as the GDP report.

The US Commerce Department reported Friday that the world’s largest economy grew 3.2% in the first three months of the year, faster than the 2.2% GDP expansion a quarter ago.

The trader added that better-than-expected GDP data in the US drove risk appetite in the market.

Meanwhile, another trader said the local currency appreciated yesterday amid profit taking on expectations of weak US personal consumption expenditure data for February, the preferred price gauge of the Fed.

“This might increase dovish expectations ahead of the US central bank’s policy meeting this week,” the second trader said in an e-mail.

For today, the first trader expects the peso to move between P52 and P52.25, while the other gave a P52-P52.20 range.

The South Korean won and Thai baht strengthened on Monday as firmer-than-expected US economic growth figures supported risk sentiment, though market holidays and the US Federal Reserve meeting this week are keeping investors cautious.

“The strong US GDP data failed to push the dollar higher but that is real positive news for riskier assets generally and for equities. The Asian markets are in a holding pattern, awaiting key data,” said Khoon Goh, head of Asia research at ANZ. — K.A.N. Vidal with Reuters

PSE index ends higher ahead of economic data

By Arra B. Francia, Senior Reporter

THE MAIN INDEX finished higher on Monday despite trading sideways for most of the session as investors remained cautious ahead of the release of economic data.

The 30-member Philippine Stock Exchange index (PSEi) firmed up 0.36% or 28.74 points to 7,897.02. The broader all-shares index likewise gained 0.16% or 8.04 points to 4,864.39.

“The PSEi continues to move sideways as the market is still waiting on economic data (gross domestic product, interest rates, and inflation) from the government. The announcement is scheduled this May 2019,” Unicapital Securities, Inc. Technical Analyst Jeff See said in a text message.

“The index is ranging between 8,200 and 7,600. Coincidentally, companies will also be releasing their first quarter 2019 earnings by May,” Mr. See added.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez noted how the PSEi showed another dull performance.

“It’s still too soon to tell if the market will be more active [on Tuesday]. Potential month-end window dressing could be tempered by the upcoming holiday on Wednesday,” Mr. Perez said in an e-mail.

Investors overseas had been pricing in positive results of the US GDP for the first quarter. The US reported that the economy grew by 3.2% year on year during the first quarter, way beyond the 2.3% market estimate. This also showed the fastest growth since 2013’s 3%.

Last Friday, the Dow Jones Industrial Average went up 0.31% or 81.25 points to 26,543.33. The S&P 500 index climbed 0.47% or 13.71 points to 2,939.88, while the Nasdaq Composite index added 0.34% or 27.72 points to 8,146.40.

Asian markets on the other hand ended mixed as investors also stayed cautious ahead of another round of trade war talks between the US and China. Japan’s Nikkei 225 retreated 0.22% or 48.85 points to 22,258.73. The Hang Seng index advanced 0.96% or 284.48 points to 29,889.49, while the Shanghai Composite shed 0.77% or 23.90 points to 3,062.50.

Back home, sectoral indices were equally split between losers and advancers. Holding firms led those in positive territory, jumping 0.88% or 66.79 points to 7,602.45. Industrials rose 0.66% or 76.28 points to 11,473.59, while financials eked out a gain of 0.16 point to 1,743.95.

Meanwhile, mining and oil slumped 0.5% or 39.16 points to 7,761.18. Property fell 0.2% or 8.89 points to 4,283.43, while services slipped 0.15% or 2.47 points to 1,583.26.

Turnover remained thin at P5.81 billion after some 1.06 billion issues switched hands, although slightly higher than the previous session’s P5.72 billion.

Decliners outpaced advancers, 97 to 89, while 52 names were unchanged.

Foreigners were net sellers for the second straight session with P42.91 million, narrower from Friday’s P249.78-million net outflow.

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