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Arroyo seeking Saudi investment for Mindanao

SPEAKER Gloria Macapagal-Arroyo said she is pushing for six investment projects in Mindanao to be backed by Saudi Arabia.
“There were six project proposals that were prepared by the six congressmen in the delegation and this afternoon of Manila time, which is noontime in Jeddah (Saudi Arabia), they will be presenting to the Jeddah Chamber the six proposals,” Ms. Arroyo said in a chance interview, Wednesday.
The Speaker recently led an investment mission to Saudi Arabia with six Mindanao legislators — Lanao del Sur-2nd district Rep. Mauyag B. Papandayan, Jr., AMIN Reps. Makmod D. Mending, Jr. and Amihilda J. Sangcopan, Maguindanao-1st district Rep. Bai Sandra A. Sema, Tawi-Tawi Rep. Ruby M. Sahali and Kusug-Tausug Rep. Shernee Abubakar Tan.
Among the project proposals were a Public-Private Partnership to rebuild the Montaner Hospital and expand Al Haj Memorial in Lanao del Sur and two other hospitals destroyed during the Marawi siege, development of a Halal economic zone, a cacao plantation in Cotabato City, the development of the seaweed industry in Tawi-Tawi and oil and gas exploration activities in three blocks in the Sulu Sea.
“Our commercial attache who is based in Dubai is there so hopefully she will be able to follow through,” the Speaker said.
The Speaker said the investment efforts intend to supplement implementation of the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao.
“It is now our responsibility to try to do what we can in order to fulfill the expectations of the people of Bangsamoro that they be lifted out of poverty and the best way to fight poverty now in the Bangsamoro is to be able to create jobs,” she said in a statement, issued on Wednesday.
“The last attacks we believe were terrorist attacks and we are very grateful to Saudi Arabia because they are with us in the fight against terrorism. When I was President of the Philippines, I always said that terrorism is very much related, at least in the Philippines, to poverty. And in the Philippines as well the problem of peace in Muslim Mindanao are also very much related to the problems of poverty,” she said.
During her visit, the Speaker met with the Saudi Arabia General Investment Authority (SAGIA) headed by its Governor Ibrahim Al Omar and then with Dr. Abdullah Bin Mohammed Bin Ibrahim Al Sheik, her Saudi Arabian counterpart as President of the Majlis Al Shura of the Consultative Assembly of Saudi Arabia, the Kingdom’s legislative body. — Charmaine A. Tadalan

Long-term measures needed to save tawilis: NGO

ENVIRONMENT protection group Oceana Philippines is urging the Department of Environment and Natural Resources (DENR) and the Bureau of Fisheries and Aquatic Resources (BFAR) to implement a temporary ban on fishing for tawilis in Taal Lake after the species was classified as endangered by the International Union for the Conservation of Nature (IUCN).
“The Protected Area Management Board of Taal Volcano Protected Landscape has already endorsed seasonal closure of tawilis to give it time to reproduce. The Bureau of Fisheries and Aquatic Resources (BFAR) proposed a three-month fishing ban on tawilis since 2013. The DENR and BFAR must join forces to curb the major threats to the survival of tawilis and to ensure that there is sustainable management of this species,” Gloria E. Ramos, Vice-President of Oceana Philippines, said in a statement on Tuesday.
Tawilis (Sarinella tawilis) is a freshwater sardine considered a regional delicacy.
Ms. Ramos said that while closed seasons will help the fish populations regenerate, other measures should also be implemented to ensure the long-term sustainability of the fishery, including tight controls on fish pens, regular monitoring of water quality, and keeping out invasive species.
“Demand for tawilis has driven the fish to near extinction and this must be carefully studied by both scientists and resource economists,” Ms. Ramos said.
“There’s an urgent need to implement a science-based sardine management framework that will address issues of overfishing, regulating the catch of juveniles, and regeneration. The continuous encroachment of commercial fishers in municipal waters must also be addressed,” Ms. Ramos added.
According to the Progresibong Alyansa ng mga Mangingisda sa Pilipinas (PANGISDA- Pilipinas), commercial fishing operations should be regulated to address the overfishing of tawilis.
“The ban must focus on the commercial fishing sector. Their boats are large and their gear is very efficient, so they catch the majority of the stocks. At the same time, municipal fishers are also displaced, and left with less catch,” PANGISDA Chairperson Pablo R. Rosales said in a statement. — Reicelene Joy N. Ignacio

NFA says over half of rice import orders have arrived as of Jan. 29

THE National Food Authority (NFA) said 258,854.80 metric tons (MT) or about 53.77% of the 500,000 MT of rice contracted for import has arrived in the Philippines as of Jan. 29.
About 123,905 MT has been unloaded in various ports, the NFA said, and the shipments have been received by the agency’s warehouses.
About 235,140.20 MT of rice are still scheduled to arrive, with 81,728 MT still in transit, while 141,967.20 MT are loading.
The ports due to receive shipments are Manila, La Union, Subic, Batangas, Tabaco, Iloilo, Bacolod, Cebu, Tacloban, Zamboanga, Cagayan de Oro, Davao, General Santos, and Surigao.
The 500,000 MT of rice forms part of the total 750,000 MT in rice imports conducted by the NFA before it loses its role as the main importer of rice, prior to the implementation of the rice tariffication bill. — Reicelene Joy N. Ignacio

Snack makers back continued regulation of sugar imports

THE Philippine Confectionery Biscuit and Snack Association (PCBSA) said it wants a system in place to continue to regulate sugar import volumes once imports are liberalized.
PCBSA President Kissinger Sy said it will propose to the government a mechanism that will consider the absorptive capacity of the market before allowing imports to prevent prices from being depressed, dampening the appetite for planting sugar.
He backed the retention of an accreditation system for importers “to ensure that we will only import what we need in our factories” and “not use (imports) as traders.”
“If we are allowed to import on our own, it will really create a big dent in the market. That’s why we need options, for local supply and imports,” Mr. Sy said in a briefing in Makati City.
“The scariest scenario is if everyone is allowed to import… prices will collapse and farmers will stop planting… Somehow the market will need to be regulated,” Mr. Sy added.
A November 2018 report by the United States Department of Agriculture’s Foreign Agricultural Service said that global production for marketing year 2018 -2019 is forecast to fall 9 million tons to 186 million, mainly due to an 8-million-ton drop in Brazil, the world’s top supplier, amid unfavorable weather and more sugarcane being diverted towards ethanol production.
Meanwhile, the sugar output of Thailand, the Philippines’ top source of imports, is forecast to decline 900,000 tons to 13.8 million on lower yields amid lower-than expected precipitation.
Mr. Sy added that the group is willing to pay a tariff as high as 35%, the maximum duty accorded by the ASEAN Trade and Investments Agreement to products under the sensitive or highly sensitive list.
He added that the PCBSA may be able to finalize its position paper to be submitted in February to various government agencies. — Janina C. Lim

Indonesia’s Pertamina interested in LNG hub project

INDONESIAN oil and gas producer PT Pertamina (Persero) has expressed interest in setting up a regasification hub in the Philippines worth some $1 billion, according to the Department of Trade and Industry (DTI).
In a statement Wednesday, Trade Secretary Ramon M. Lopez said the plan was presented to the department on Jan. 29.
“More investors, in different industries like PT Pertamina, have expressed their confidence in the country’s economic stability and business environment under the Duterte administration. They wish to partner with us in creating a more comfortable life for every Filipino through various opportunities,” Mr. Lopez said in the statement.
Pertamina Corporate Marketing Director Basuki Trikora Putra was quoted as saying that the company “is ready to offer its integrated LNG solutions by investing in FSRU or land-based LNG regasification and provide competitive LNG supply.”
He was referring to Floating Storage Regasification Unit terminals.
“Having long experience as one of the world-leading LNG global players, we would like to share the same experience in the Philippines. We are really keen to invest in the Philippines,” Mr. Basuki was quoted as saying.
Mr. Lopez said the DTI will assist Pertamina in looking for local partners for the project.
Pertamina operates six refineries in Indonesia with a combined production capacity of one million barrels of oil a day.
The government is currently moving to develop an LNG facility to get ahead of the expected depletion of the Malampaya field starting 2024. — Janina C. Lim

Do VAT-exempt medicines need the BIR’s prescription?

At the start of the year, we often find people determined to come up with New Year’s resolutions. For sure, staying healthy is part of most people’s list. Not surprising, as Filipinos are now health-conscious; health and wellness establishments are everywhere; and most people are trying new diets.
The Constitution itself mandates every Filipino’s right to health: it declares that “the State shall protect and promote the health of the people and instill health consciousness among them” (Article II, Section 15).
Tax laws also carry out this mandate. Notable tax policies encourage everyone to be healthy. For instance, aside from their significant contribution to collections, “sin” and “sweet” taxes aim to regulate or discourage too much consumption of cigarette, alcohol, and sweetened beverages. The main objective of these tax measures is to promote a healthier society. Another health-related drive introduced in the Tax Reform for Acceleration and Inclusion law, or TRAIN, is the VAT exemption on medicines prescribed for diabetes, high cholesterol, and hypertension (DCH meds) with effect from Jan. 1. This VAT exemption will lessen the financial burden on patients with these conditions.
In early 2019, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 25-2018, prescribing the rules on VAT exemptions for DCH meds. RR 25-2018 specifically declared that only those drugs on the “List of VAT-exempt diabetes, high-cholesterol and hypertension Drugs” identified by the Food and Drug Administration (FDA) are VAT-exempt. The BIR and the other government offices recently released more rules or prescriptions supplementing RR 25-2018, which are all very helpful.
One may need a doctor’s prescription to buy DCH meds from a drugstore. So, is a doctor’s prescription a prerequisite to VAT-exemption?
The TRAIN law says medicines prescribed for diabetes, high cholesterol, and hypertension; one may presume the term “prescribed” refers to a doctor’s prescription. To be clear, nothing in government-issued rules requires a doctor’s prescription. What is important is that the medicine must be on the list of VAT-Exempt Drugs issued by the FDA. In other words, VAT exemption of DCH meds does not need a doctor’s prescription.
Nonetheless, the BIR may need to issue guidelines to explain the transitional impact of this VAT exemption, particularly its effect on the supply chain, e.g. wholesalers, distributors and retailers. Remember that the sales of DCH meds were subject to VAT until Dec. 31. This means that the DCH medicines bought by the drug traders prior to Jan. 1 include input taxes, which they can validly claim as credit against their output taxes. Some of these previously bought stocks for resale were still on hand at the close of Dec. 31. The traders will eventually sell these DCH meds in 2019 as VAT-exempt. In the current VAT system, if a taxpayer’s sale is VAT-exempt, any input tax attributable to such sale forms part of the cost of the goods sold, and may not be claimed as input tax credit.
So, what will happen to the input taxes previously claimed by drug traders on the DCH meds they purchased prior to Jan. 1 that are sold in 2019? Here are three possible approaches to address this transitional impact.
The first one is for the affected wholesalers, distributors and retailers to amend their previously filed VAT returns and take out the input taxes they claimed on the DCH meds. Upon selling these DCH meds in 2019, they can claim these input taxes as part of the purchase cost of the meds they sold instead of as input tax credits. Technically, this seems to be the right approach because it follows the VAT law to the letter. However, it could create more complications rather than solutions. For instance, if the drug traders were able to use the input taxes as credit against their output VAT liabilities in their previous VAT returns, such amendment would result in deficient VAT payments. Affected taxpayers would end up paying deficiency VAT plus penalties. This penalizes taxpayers for their previously valid actions which were nullified by a subsequent law. If this is applied, the TRAIN law will be an ex post facto law in this respect, which is unconstitutional. Obviously this was never the intention of the lawmakers.
The second approach requires drug traders to compute for input taxes corresponding to VAT-exempt sales of DCH meds in 2019. Drug traders will consider such amount as part of the cost of the goods sold. This will deducted from the input taxes in 2019. Thus, there is no need to amend the previous VAT returns. This approach may be more reasonable than the first, but otherwise tricky: it requires the taxpayer to treat theoretical input taxes as a cost. The law is clear that the input taxes forming part of the cost should be those that are actual and directly attributable to the VAT- exempt sale. This approach is therefore inconsistent with the rules.
The third approach is to allow the drug traders to apply the TRAIN law prospectively, plain and simple. No need to account for the input taxes on purchases prior to Jan. 1. Whether they were able to use such input taxes as credit against their output VAT in the previous years, drug traders would treat their old DCH meds stocks as if they were VAT-exempt purchases, which would be the scenario from 2019 and onwards (except for importers). This will give the drug traders some relief. Besides, they are just doing their part in promoting a heathier country as envisioned by the TRAIN law.
Considering the above issues, the BIR may need to issue further instructions about the transitional impact of VAT exemption on DCH meds. A prescription that should not cause headaches: it needs to be as effective as properly prescribed medical drugs. Who knows, with appropriate prescriptions from the BIR on gray areas, the Philippines could become a tax-healthier country.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Brando C. Cabalsi is a director at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.
(02) 845-27 28
brando.cabalsi@ph.pwc.com

The cannabis industry

In March 2018, the United Kingdom was reported to be the largest world producer of “legal” cannabis, otherwise known as “medical” marijuana. This was based on 2017 data with the International Narcotics Control Board (INCB), which is the independent and quasi-judicial control organ for the implementation of the United Nations (UN) drug conventions.
The report is particularly interesting to me given the fact that UK is producing, and exporting, medicinal marijuana, despite the fact that its own laws make it illegal for its people to produce, possess, or use marijuana, even medically. This is also in light of efforts in our own Congress to legalize the use of medical marijuana in the Philippines.
The UK situation has been labeled by some British citizens as hypocritical, where the UK government prohibits the local use of medical marijuana but allows its production for export. To me, however, it indicates that one country can actually produce — and export — a product even while it is still deemed illegal in its own territory. In short, I perceive an opportunity here for us.
UK online publication The Independent reported in March 2018 that the UK was also the largest exporter of medical marijuana, with 2.1 tons exported in 2016, or roughly 70% of the world total. The report noted, quoting INCB data, that 95 tons of marijuana was also produced in the UK in 2016 for medicinal and scientific use, accounting for 44.9% of the world total.
However, other data seem to indicate that while the UK produced the most medical marijuana, it wasn’t exactly growing its own “weed.” This raises the possibility that marijuana plants are actually being grown elsewhere, and just processed in the UK to produce medical-grade cannabis, and then exported to countries that allow their use.
As of January 2018, or a year ago, it was estimated — using available data — that the top 10 marijuana producers in the world were reportedly the following countries: India, Nigeria, Canada, Jamaica, Paraguay, Colombia, Mexico, Afghanistan, Morocco, and the United States. The list did not include the UK. Other top marijuana producing countries listed were Mozambique, Ghana, Swaziland, Kyrgyzstan, Myanmar, Laos, Lebanon, Nepal, Netherlands, and Albania.
Now, if you think this is just a fad, a trend that will eventually die down, then maybe you may have to reconsider. In my opinion, the use of medical or medicinal marijuana is just the start of a major industry. In fact, some of the producers of medical marijuana have already found themselves listed in stock markets in other parts of the world.
After all, in the United States alone, online publication Market Watch reported that Marijuana Business Daily estimated the overall impact of cannabis products on the US economy to hit around $47.6 billion to $68.4 billion by 2021, based on sales of medical and recreational marijuana at the retail level, including flower, infused products, and concentrates.
To date, Uruguay and Canada have legalized the use of medical marijuana on a nationwide basis. In the United States, 29 states as well as the District of Columbia (where Washington DC, the White House, and the US Capitol are) have reportedly allowed possession and consumption of marijuana to some extent. Recreational marijuana use is now also reportedly legal in Alaska, California, Colorado, Massachusetts, Maine, Nevada, Oregon, Washington, and the District of Columbia.
And publicly listed companies are benefitting from these developments. According to a 2017 report by Market Watch, these listed companies include The Scotts Miracle-Gro Co. (NYSE, Market cap: $5.88 billion); Canopy Growth Corp. (TSX, Market cap: $4.18 billion); GW Pharmaceuticals PLC (NASDAQ, Market cap: $3.42 billion); Aurora Cannabis, Inc. (TSX, Market cap: $3.17 billion); and, Insys Therapeutics, Inc. (NASDAQ, Market cap: $515.4 million).
Market Watch noted that as of December 2017, five of the six Canadian firms on the top 10 list were involved with “cultivating and selling the plant,” and of the four US firms on the top 109 list, Scott’s Miracle-Gro was an “agricultural technology firm” while GW Pharmaceuticals, Insys Therapeutics and Cara Therapeutics were “biotech” firms.
cannabis marijuana
Market Watch also noted the first initial public offering, in 2016, of a real estate investment trust (REIT) focused on owning and managing indoor grow facilities reached the equities markets. “Innovative Industrial Properties Inc. (NYSE) even posted a share price gain of nearly 30% in 2017. The company’s market cap is nearly $82 million. Other marijuana-focused REITs have formed and at least one other is publicly traded,” it added.
Just recently, the Philippine Congress passed a bill that intended to legalize and regulate the use of medical marijuana or medical cannabis. A report by CNN Philippines noted that under the bill, doctors licensed by the Philippine Drug Enforcement Agency can prescribe the use of medical marijuana for qualified patients, and products can be accessed from accredited hospitals, as well as “Medical Cannabis Compassionate Centers” to be put up.
To date, the bill has no counterpart measure in the Senate. Senate President Vicente “Tito” Sotto III has argued that such a bill was unnecessary as Republic Act 9165 or the Dangerous Drugs Act of 2002 already allowed the use of regulated substances for “compassionate” reasons, subject to the approval of government regulators.
Legalizing the use of regulated substances, particularly in the Philippines, is not without precedent. As noted by historian Ambeth Ocampo, a decree signed by President Emilio Aguinaldo on Nov. 20, 1898 actually authorized the “limited and contained use” of opium in Binondo, Albay, and Sorsogon.
To limit opium use, which was then deemed a public menace, Aguinaldo had the practical sense 121 years ago to instead restrict and regulate the vice rather than, perhaps foolishly, to ban it completely. But, whether his government or his officials — or Aguinaldo himself — was “compensated” for this action is uncertain. The Aguinaldo decree, issued to local officials, read:
“The service of leasing opium-smoking establishments being in a state of neglect on account of the state of war in which this territory found itself, but which is now under a form of government, it is urgently necessary to establish same for the double purpose of restricting it as far as possible on account of the harm it causes hygiene and public health. With the concurrence of the treasury department, I hereby order the following:”
“1st. Provisionally and until the government shall have awarded definitely at public auction, the lease of aforesaid service, which shall be effected shortly, after the proper proceedings which the case requires, the same is awarded to the Chinese: Francisco Bonifacio, Nubla Lim Chico, and Felipe Lim, residents of the district of Binondo, Manila, for a term of one month extendible.”
“2nd. The same department shall authorize a provisional contract with aforesaid Chinese at the rate of P1,200 per month, limiting the same to the provinces of Albay and Sorsogon, district of Catanduanes.”
“3rd. A copy of this decree shall be forwarded to the military and provincial chiefs of the provinces mentioned.”
“I have the pleasure of referring the same to you for your information; you will immediately make the award to the Chinese contractors aforementioned and report to this office the date when it is effected; furthermore, you will please order the local chiefs of your jurisdiction to please publish this by posters in the local dialect and acknowledge receipt of the same.”
It was, in my opinion, a pragmatic approach to regulating a vice: regulation with taxation. In fact, I reckon the regulate-tax strategy would have remained if not for our colonization by the Americans after their defeat of Aguinaldo in 1899. Allow me to quote a portion of the World Drug Report of 2008, which stated:
“The topic of opium reform reacquired currency in the USA following the occupation of the Philippines in 1898, which included the acquisition of a large ethnic Chinese opium addict population. The US authorities found that Manila alone had some 190 opium dens retailing a total of 130 metric tons of opium per year.”
“Under Spanish rule, the opium trade in the Philippines had been farmed out to state-licensed opium monopolies. Taxes from the industry generated a substantial portion of the government’s revenue, and it had been proposed that the US maintain this system. The proposal was within two weeks of being adopted [by the US Congress] when it was derailed by a last-minute campaign by Manila’s missionaries.”
It is ironic that making opium illegal was recommended by an Opium Committee for the Philippines that was appointed in 1903, which included the Episcopal Bishop of Manila, the Reverend Charles Brent, who was a Canadian national. More than a century since, Canada itself has become the second country in the world to actually legalize the use of medical marijuana.
I am keeping an open mind regarding all of these developments. But, as long as backed by sufficient scientific and medical studies and economic research, I would go to the extent of even suggesting that the Senate consider not only a bill allowing the use of medical marijuana, but even the amendment of existing laws to possibly allow the cultivation of marijuana locally and the processing of the plant for the production of medicine for here and for export abroad.
 
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.
matort@yahoo.com

In Honor Of Peddlers

Recently, Chinese-Filipino businessman, Henry Sy, Sr. died. An immigrant from an impoverished family in Jianjiang, a town near Xiamen, China, he started as a shoe peddler and when he died two Saturdays ago at the age of 93, he owned one of the world’s biggest shopping chains and the Philippines’ largest retailing chain. In 2018, he was listed as the richest man in the Philippines by Forbes with a net asset of $18.3 billion.
“Tatang,” as he is fondly called, is one of the Chinese migrants who made it phenomenally well in the Philippines. His story is reminiscent of the Jewish peddlers throughout the 19th century who migrated out of Germany to different places, mainly, in the United States of America. Peddling is an activity that consists of walking the road, selling goods door to door and house to house. It was considered a start-up occupation, especially to a migrant, to a stable enterprise or professional engagement. It was a springboard to more comfortable and higher-paying jobs or enterprises usually reserved for the locals.
Peddling required a lot of fortitude and determination so as to overcome difficulties and barriers. Peddlers suffered the discomforts of walking the road with all the elements of dust, heat, and rain. They faced physical and emotional challenges. They carried heavy burdens of goods. They were exposed to the danger of robbery on the road.
Amidst all these trials, peddling instills character in a person that serves as the key to one’s success. A peddler is persevering, thrifty, and resourceful. He is good with people. He is able to connect with customers. He is pleasant and communicates well with customers. He is well acquainted with his customers through his knowledge of local culture. Peddling serves as an activity that socializes him into the system. A peddler is a personal and communal network builder.
Henry Sy, Sr.
Henry Sy, Sr. peddled the shoes of some enterprising G.I. Joes after World War II. His success in shoe-peddling led him to put up his own shoe store, although initially, he found it difficult to partner with a shoe manufacturer that would be able to execute his ideas.
John Gokongwei, Jr., also a top Filipino businessman, peddled basic commodities using a bicycle at aged 15. He now has holdings in the food manufacturing, petrochemical, airline, and financial services industries. Andrew Tan of the Alliance Global Group, Inc. started as a kitchen appliance salesman.
Some people look at peddling as something demeaning. Peddlers usually sell quasi-luxuries bought by people who can be challenging to talk to. It is not easy to do what they do, i.e., “cold calls” or “sales talk” to people whom you don’t know, but whom you want to convince to buy your products because you think they need it. It can be humiliating, too, especially when they’re rejected. Imagine, however, the satisfaction one gets by closing a sale and developing loyalty or repeat purchases from customers. It can be financially and personally rewarding and fulfilling.
It is unfortunate that some business graduates scorn being “in the field.” It is here where good soldiers are formed. Under the heat of the sun and the other discomforts that peddling may bring, one develops the hallmarks of successful business magnates: fortitude, perseverance, determination, market understanding, and responsiveness.
Peddlers, above all, are men who have heart. Henry Sy, Sr. was named one of the Filipino Heroes of Philanthropy in 2009 by Forbes Asia. He was responsible for several professorial chair endowments in our university, De La Salle University (DLSU). One of our buildings was named after him in recognition of his generosity. John Gokongwei Jr.’s family is also DLSU’s generous donor. Their most recent donation, the John Gokongwei Jr. Innovation Center (JGIC), located within the De La Salle University (DLSU) Laguna campus, aims to become a hub for multimedia gaming and interactive entertainment in Southeast Asia.
These successful peddlers gave back to society with the hope of making it a better one, especially through the education of future generations. May their tribe increase, and may Tatang rest in peace.
 
Maria Victoria P. Tibon is an associate professor in the Management and Organization Department of the Ramon V. Del Rosario College of Business of De La Salle University. She is currently enjoying her service leave.
maria.victoria.tibon@dlsu.edu.ph

Does winning a debate matter in the elections?

By Tony Samson
IN THE USUAL CRUSADE to “know the candidates,” academic consortiums, poll agencies, and media embrace the “debate” as a good forum to gauge the worthiness of an aspirant. This seems to presume that the candidate in such a setting who is best able to communicate his position in particular issues (say, the minimum age for criminal prosecution), and narrate his platform as well as recite his qualifications for office, then the voter is sufficiently informed of his worthiness to win one of the 18,000 positions he or she is running for in the 2019 midterm elections.
The debate setting is deemed ideal to highlight qualifications and contrasts among say, the 76 candidates for the 12 senatorial seats. The format theoretically elicits the debater’s position on a topic chosen from a list of issues that may have surfaced from a focus group.
The same question is asked of the seven or so (maybe more) debaters spread out on the stage and ranged alphabetically. So, the first one is at a disadvantage in formulating the initial response, especially if he is unprepared for this topic. The last one too will just parrot what brilliant answers the previous ones gave, slyly hinting that his best punch lines have been coopted by the third speaker.
Preparation for the expected topics along with statistics and quotes do not automatically reveal the candidate’s depth of knowledge on an issue, only a tutor’s handiwork in preparing his pupil. Here, the sequence of responders can steal the statistics and references from another equally prepared, especially if he employed the same debate coach.
Communications skills are paramount in this exercise. It is too much like an academic setting where points are earned from witty repartees and a cogent argument that is well delivered. No wonder the debate format favors the academically inclined, and those who teach for a living. They are standard fare for contesting student leaders as well as competing in foreign competitions.
As a spectator sport, the debate can be sleep-inducing as the same question is serially tackled by candidates who hardly qualify for “life of the party” (pun intended). Only the TV anchors and hosts need to show rapt attention to the proceedings. They are instructed not to show any facial expression of delight or disappointment to maintain a sense of fairness accorded to the most stupid answers (do I still have ten seconds?) as well as profound flights to philosophical heights.
Candidates are reminded by their coaches or PR handlers not to be too verbose, and to avoid words exceeding four syllables, like “discombobulated.” Venturing to be too intellectual is seen as being detached from the people, maybe even looking down on them. Thus, is the effort for even the clumsiest native speaker to resort to using the vernacular. Here, it is alright to wax poetic and go for deep polysyllabic words (like karumaldumal) and still stay connected to the voters. There may even be gasps of awe — ano daw?
So, does debate performance move the election needle?
Even presidential versions of the debate format seem merely obligatory appearances for the candidates. One leading candidate (a big movie star) in a past election, and conceivably a boxer in a future one, begged off from the televised spectacle — I’d rather talk directly to the people.
Are debating skills favoring words and logic, and exposing the fallacy of others part of the necessary skills set of a politician? True, candidates for the legislature are running for an office where debating dexterity seems a necessary job requirement, at least in the televised portions of the process. What about the backroom negotiations, the dangling of incentives, and the distribution of pork? The useful words to such arguments are straightforward — yes, sir.
A very high proficiency in debating skills may even be a disadvantage to the politician who must rely on a majority of voters who find verbal dexterity irrelevant, if not suspicious. Can anything be politically worse than being characterized as an “inglisero” or a windbag, dismissed as NATO (No Action, Talk Only)?
Maybe voters are wise after all. They’ve heard too much talk and too little action. But does it follow that clumsy speech and inconsistency of logic lead to effective action? That’s a question worthy of a debate…among barbers and coffee drinkers.
 
Tony Samson is chairman and CEO, TOUCH xda.
ar.samson@yahoo.com

11 audience energizers for public speaking

By Raju Mandhyan
THOUSANDS of executives across the world strive to get a large audience moving, talking, laughing and learning is like King Sisyphus wanting to roll up a rock onto a hill. It is hard, it is tough and like the proverbial rock, the audience can come tumbling down. Yet, there are many who appear to have been born with the abilities to rouse up audiences and work the room naturally. The truth be told no matter how skilled and natural certain speakers appear, they all drill themselves mad through scores of techniques and tricks to rack up engagement and learning transfer.
This is not to downplay authenticity of intentions, quality of content and meaningfulness of purpose in public speaking, but to highlight the fact that the best of intentions and purposes need to be packaged prettily and brandished with fun.
To back up an article, Large Crowd Energizing Techniques, that I wrote a few years ago, here are eleven more easy ideas we can use. Besides the science that is explained in the aforementioned article the simple reason behind energizing our audiences is that every speech, every presentation and every conversation is an exchange and play of energy. When the speaker steps up to the lectern all eyes are on her and, thus, so is all the energy upon her. Call it the burden of leadership at that moment. Now when a speaker begins to dialogue or engage with the audience the energy begins to churn constructively.
To unburden and then brace yourself to rock and roll, here are eleven ideas:
Ask a few positive closed questions with good chances of “yes” as an answer. Keep these questions closed, short and simple. Like, “all feeling good?” “Looking forward to a fun day?” “Feel this quarter is going to be better than the last one?” Manage to keep this activity less than 90 seconds.
Ask them to talk to the person next to them and share, for less than 60 seconds each, “how they started their day this morning?” While they are at it, take a sip of water, check your clicker and slides and manage to keep the whole thing less than three minutes.
Ask them simply to stand up, stretch and greet and welcome a few people they haven’t yet met. The hustle, the bustle and the smiles will unburden the energy off your shoulders and churn it around the room. Keep this activity also under three minutes for larger crowds and short keynotes, but allow five to seven minutes for smaller training sessions.
If you are conversant with mindfulness meditations then have them sit up, sit silent, close eyes, focus upon their in and out breathes while thinking about how they want their day to turn out. Give them a minute of silence. Have them open their eyes and share their thoughts with the person next to them. Keep the whole activity down to less than three minutes. It is called a “minute to arrive.” A minute to let their awareness and focus blend in and settle into their bodies.
If there is paper and pencil available, have them caricature a self-image and add an event expectation. Something like, “today, Joseph the accountant, wants to learn how to authentically influence others.” This will generate laughter, relax and cue you into your topic of the day, “Authentic Leadership Influence” or whatever. Manage to wrap this up, also, in less than five minutes.
Flash a sensational statistic, a report or a headline on the screens and pause for them to grapple with it for ten to fifteen seconds. An example: An average person spends One Hundred and Twenty Minutes, or better still, Seven Thousand Breaths a Day, on social media. That is like taking a shower twenty times in a day! And, when the surprise and murmuring tones down you can plunge into your talk.
Flash a very rare and unique photograph that has some sort of relevancy to the audience or to the subject matter at hand. The picture can also be of an incident that you will tell a story about during your presentation. Make sure the picture is not unpleasant, is easy to recognize and recall but carries meaning and purpose to the topic at hand. A good and a relevant picture works like a good prop. It takes the eyes away from you and directs them onto the picture. Thus, it moves the energy around.
Display a real prop, a model or a gadget. Years ago, a motivational speaker friend of mine, Harry Pound, used to carry an old-fashioned, hand-operated water pump in the back of his car. At every speaking opportunity he’d place it on stage and mime pumping it while explaining that water, results only flow when effort is consistently made. Effort and hard work in, results and water out. The physical activity takes away attention and helps you, the speaker, get over herself and become one with the audience and vice versa.
Employ gentle and benign humor. The powerful science behind humor is that the speaker has to herself the target of the joke. She has to belittle and humble herself, this deflates self-consciousness and endears the audience to the speaker. Refrain from trying complex humor. Keep it simple and light. Manage proper timing between setup and punch. Make an effort to relate it to the event. Years ago, I was to greet a guest speaker at the gates of a hotel and then escort him in and introduce him to the audience. Somehow I missed him at the gate and he was already on stage. At his introduction, I claimed that I was so dense that I’d never get a job in the immigration services. That earned me a lot of laughs because our guest was the then commissioner of immigration in the country.
Tell an analogical story that somehow relates to the subject at hand. A friend of mine tells a story about how tigers when cornered fight back ten times more ferociously than normal. He takes his time in describing the mindset and the fighting nuances of a tiger. He then goes on to add how his sales and marketing teams work with ferocity during bad times. Spend just a few minutes painting a word picture of a cornered tiger. During the rest of your talk, compare how cornered tiger-like traits are found in salespeople. Spend three to paint the word picture and throughout your speech make a call back to it, like “rise and roar like a tiger!” It acts like a non-tangible prop and keeps your audience hooked for good.
Tell a story which kind of spins off into a question. Years ago, I made up a fictional story of a farmer who digs for oil and fails several times and then eventually succeeds. At the near end of the story I ask the audience why he fails so many times, and where was the wealth during all those times. While they ponder upon possible answers, I deliver my message about discovering strengths and at the end of it give out the correct answer to the story. A roar goes through the audience because they then see the connection between the story and my presentation.
Understand this, the sight of any audience can give the heebie-jeebies to the best of us on stage. Lawrence Olivier, Meryl Streep and Amitabh Bachchan all claim rights to stage fright. Winston Churchill would claim to have bats in his belfry before any talk. To get nervous is normal. To be in awe of the energy pulsating from crowds is also normal. There are across the world scores of speakers who know how to motivate large groups by using the energy that emanates out of crowds.
Some methods work and some fail. There is no silver bullet solution to this malady and there is no such thing as the perfect and ultimate formula for success in delivering keynotes. The ones that you, sometimes, see and hear have been well planned, well-rehearsed and choreographed such that they appear as extremely natural. Only after a lot of practice will you become unconsciously competent with the sciences audience engagement and motivation. Even then you will always be striving for perfection but never reach it. Nobody has reached it. No, not even Socrates, Demosthenes, Twain, Churchill, Roosevelt, Gandhi, Mandela, Obama or Trump. They have just done well with what they had, and then created their own styles.
Study all the flavors, try the ones you like often and mix your very own cocktails. Just remember to be nice, polite, compassionate and refrain from laughing at your own jokes.
 
Raju Mandhyan is an author, coach and speaker.
www.mandhyan.com

Resilient Meralco stops TNT’s 2-game win run

By Michael Angelo S. Murillo
Senior Reporter
THE Meralco Bolts got back to winning in the PBA Philippine Cup on Wednesday, defeating erstwhile streaking TNT KaTropa, 88-77, in their match at the Cuneta Astrodome in Pasay City.
Showing a no-quit attitude despite a poor start to the contest, Meralco successfully fought its way back in the game and did not relent on its attack when it got its steady groove in the second half to notch the win that improved it to 2-2 in the season-opening Philippine Basketball Association (PBA) tournament while halting the two-game winning streak of TNT (2-3).
TNT went on a fast start, leaving Meralco in the dust, 13-0, in the first six minutes of the contest which it would eventually use to hold a 22-9 advantage after the opening quarter.
Jayson Castro jump-started the second frame with eight quick points to extend the KaTropa’s advantage to 21 points, 30-9, with just a minute lapsing.
But the Bolts, led by Jarred Dillinger and Ranidel de Ocampo, would respond with a 19-3 run of their own in the next seven minutes to narrow the gap at five points, 33-28.
Mr. Castro, however, did not allow a complete comeback by Meralco, towing his team to a 39-30 advantage by the halftime break.
In the third period, the Bolts would pick up from the momentum they got in the second frame.
On the lead of guard Baser Amer, they steadily clawed their way back, overtaking the KaTropa, 52-50 with 3:02 on the clock.
The two went back-and-forth after but the Bolts were not to be denied of a comeback in the period, holding a 63-58 lead heading into the payoff quarter.
Sensing it had TNT wobbled, Meralco opened the payoff quarter with an 8-0 blast to stretch their lead to 13 points, 71-58, at the 9:33 mark.
It further created distance, 79-60, with 4:50 to go as Messrs. Amer and Dillinger and Chris Newsome continued to find the mark.
The KaTropa tried desperately to make another ascent but just could not get the needed wind to propel them as they went on and bowed to the defeat.
Mr. Newsome paced the Bolts in the victory with 20 points to go along with nine rebounds and five assists.
Mr. Amer had 17 points while Mr. Dillinger had 16.
Mr. De Ocampo and Nico Salva each had 11 points for Meralco.
For TNT it was Mr. Castro who led with 20 points followed by Roger Pogoy with 15 markers.
“Basically we stayed focus. We have been coming off slow in this conference, making it tough for us. But we have been showing our resilience. In this game heading into the half we knew we had to make adjustments. We talked about it and played different in the second half,” said Mr. Newsome, named player of the game, after their win.
Meralco returns on Feb. 2 versus the NLEX Road Warriors while TNT next plays on Feb. 3 against the Magnolia Hotshots Pambansang Manok.

Kings’ Thompson hopes to do better in stint with nationals

By Michael Angelo S. Murillo
Senior Reporter
A STAPLE in Team Pilipinas in the last two windows of the FIBA Basketball World Cup Asian Qualifiers, Scottie Thompson is hoping that the lessons he got from his previous stints with the nationals would help him further contribute to the squad in its push to earn a spot in the world basketball spectacle.
Part of the pool of players preparing for the sixth and final window of the qualifiers next month, the do-it-all Barangay Ginebra San Miguel Kings star said he is very thankful to be considered once again for a roster spot in Team Pilipinas and that he is coming into the next window “more prepared.”
“First of all, I would like to thank God that I am once again part of the pool, and to Coach Yeng (Guiao) for the trust he has given me and picking me as part of the pool,” said Mr. Thompson, in the vernacular, during the national team’s practice last week at the Meralco Gym.
“For this upcoming window of the qualifiers, I think I can do better because I have more understanding of how the games are played in FIBA, particularly the physicality, and can adjust accordingly. It also helps that I was part of the team since Coach Yeng took over. I know his system and what he expects from me,” added Mr. Thompson, who has averaged 3.5 points, 4.5 rebounds and 1.8 assists in 12 minutes of playing time per game in four matches in the qualifiers.
Team Pilipinas is set to see action in the sixth window on Feb. 21 and 24 where it will play in away matches Qatar and Kazakhstan, respectively.
Currently sporting a 5-5 record in the merged Group F of the qualifiers, the Philippines needs to sweep its remaining games to have a better shot at advancing to the next round by landing in the top three in the group for automatic entry or as the best fourth-placed team in the two groups left.
Part of the Philippine Basketball Association-bannered pool for the sixth window apart from Mr. Thompson are naturalized player Andray Blatche, Jayson Castro, Paul Lee, Mark Barroca, Marcio Lassiter, Gabe Norwood, Troy Rosario, Japeth Aguilar, JP Erram, June Mar Fajardo, Raymond Almazan and Roger Pogoy.
Christian Standhardinger, meanwhile, will serve as a backup naturalized player.
With their backs against the wall, Mr. Thompson said they have to play collectively in synch and follow their game plan under Mr. Guiao in next month’s matches.
“We have to stick to the system of Coach Yeng. Hopefully we show better chemistry in the next window to be able to get the result that we want,” 25-year-old Mr. Thompson said.
“One of the things that did us last time around was our unfamiliarity with our opponents. So this time we have to study the videos well, paying attention to every detail. We must study our opponents’ plays and tendencies so we can prepare for them better,” he added.
In Group F, the remaining automatic spot for the next round is being disputed by Japan (6-4), the Philippines (5-5) and Kazakhstan (4-6). Already qualified from the grouping are Australia and Iran.
The Philippines, which lost its two home-stand matches in the fifth window late last year, can finish anywhere between third and fifth. It could notch a spot in the World Cup with as little as one win as it holds a tie-breaker against Japan, but even if it wins both games in the sixth window, it will have to depend on other results.
Alternatively, according to FIBA, the Philippines could qualify as the best fourth-placed team in Asia as long as it avoids losing to Kazakhstan by more than 48 points or losing twice in the final window, as it would finish fifth. It would also finish fifth if Kazakhstan wins both games and Japan wins at least once.