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Singapore’s Zilingo raises $226M to expand fashion site

ZILINGO PTE, a Singapore-based online fashion marketplace, raised $226 million to fund an expansion into the Philippines, Indonesia and Australia.
Investors in the series D financing included Sequoia Capital, Temasek Holdings Pte, Burda Principal Investments, Sofina and EDBI, the company said on Tuesday without disclosing a valuation. The start-up is valued at $970 million, according to people familiar with the matter who asked not to be named because the information is private.
Zilingo, founded by Ankiti Bose and Dhruv Kapoor, started as a fashion and lifestyle marketplace in 2015 to help small merchants build scale. It developed software and other tools allowing vendors to access factories from Bangladesh to Indonesia and also helped with cross-border shipping and inventory management. Listings are provided for free with the company charging a commission of between 10% and 20% on orders, helping drive a fourfold increase in revenue in the past 12 months.
“Ankiti and team have rapidly transformed their original ideas about Zilingo into a platform company that serves fashion consumers, merchants, retailers, brands and manufacturers,” said Shailendra Singh, managing director of Sequoia Capital (India) Singapore, which has backed Zilingo.
Ms. Bose, 27, is chief executive officer of Zilingo after previously working at Sequoia and McKinsey & Co. in India. She came up with the idea after a visit to Bangkok’s popular Chatuchak market, which features more than 15,000 booths selling goods from across Thailand.
Ms. Bose and Mr. Kapoor, who serves as chief technology officer, realized that many small merchants suffered from a lack of access to technology, capital and economies of scale.
The latest funding brings its total capital raised to $308 million. Zilingo currently has offices in eight countries with more than 400 employees, including about 80 engineers in Bengaluru, India. — Bloomberg

Kundiman stalwart Armida Siguion-Reyna, 88

ENTERTAINMENT industry stalwart, patron of the arts, actress, singer and promoter of the kundiman, Armida Siguion-Reyna took her final bow on the afternoon of Jan. 11, passing away at the age of 88 at the Makati Medical Center after a battle with cancer, according to her sister, Irma Potenciano.
Her love for the arts could be said run in the family as her mother was soprano Purita Liwanag and her aunt Carmen Concha was one of the first female Filipino film directors. Her involvement in film started early — in 1939, at the tender age of eight, she starred in the film Yaman ng Mahirap alongside Tita Duran. The film was directed by her aunt.
Ms. Siguion-Reyna, born on Nov. 4, 1930, was the daughter of lawyer/politician Alfonso Ponce Enrile and, along with her sister Irma, was raised in Malabon. She was the half sister of Senator Juan Ponce-Enrile.
In 1950, after returning from the United States, she met lawyer Leonardo Siguion-Reyna whom she married a year later.
The union produced three children including film director Carlos Siguion-Reyna, known for films including Hihintayin Kita sa Langit (1991), and magazine editor and TV producer Monique Siguion-Reyna.
In her 2015 biography by Nelson Navarro, Armida: The Singer and the Song, it said that her engagement with Mr. Siguion-Reyna was announced on the eve of Ms. Siguion-Reyna’s opera debut as Lucia Lamermoor in the Far Eastern University Auditorium. She was a coloratura soprano.
Ms. Siguion-Reyna, before agreeing to marry her husband stipulated one condition: that she be free to pursue her passion for the arts, and she did so with much gusto as she starred in several operas including Rigoletto, The Merry Widow, La Traviata, I Pagliacci and the zarzuela, The Mestiza.
It was in 1970 that she launched one of her biggest and most memorable projects — the musical TV show, Aawitan Kita, which ran for 35 years and is recognized for reviving the kundiman (traditional Filipino love songs) and balitaw (Visayan love songs).
Among the many performers who sang in Aawitan Kita were Rachel Alejandro, Robert Natividad, Gamaliel Viray, Aurelio Estanislao, Fides Cuyugan-Asencio, and Robert Seña.
A few decades later, in 1991, Ms. Siguion-Reyna ventured into another art form, this time film production with her own outfit, Reyna Films.
The company produced 12 films (it closed in 2000) including Carlos Siguion-Reyna’s Hihintayin Kita sa Langit and Ligaya ang Itawag Mo sa Akin (1997).
Aside from producing films, Ms. Siguion-Reyna also starred in a few of them including Ligaya.
After her childhood debut in Yaman ng Mahirap she acted in numerous films as an adult, including Kakabakaba Ka Ba? (1980) by Mike de Leon, Salome (1981) by Laurice Guillen, and Tahan na Empoy (1977) by Lino Brocka for which she won a Filipino Academy for Music and the Arts (FAMAS) award for Best Supporting Actress.
Ms. Siguion-Reyna was given the Gawad CCP para sa Sining Award in 2015.
She became the chairperson of the Movie and Television Review and Classification Board from 1998 to 2001, during which time she was her known for her stance against censorship.
Singers and actors went on social media to reminisce and to say goodbye to a mentor and a friend.
“I’m probably paraphrasing what she said terribly but GR Rodis and I recall Tita Midz once saying that if you produce a lousy movie, you could lose money and end up with nothing. But if you make a beautiful movie, even if you lose money, you have something you can be proud of forever,” said singer Rachel Alejandro in a Facebook post, referring to Ms. Siguion-Reyna by her nickname. “I’ll never forget this, Tita Midz. Thank you for taking me under your wing and changing me as a person, as a performer. To me, you are never gone. You live on.”
“You were one of the distinguished influencers in your time, a Tigress as they say but you Tita Mids left a soft spot in my heart and memories. She speaks her mind and she fights for you. You were the one who gave my first confidence in this Kaleidoscope like world of Show business. How can I not love you? My respect for you Tita Mids never withered a bit since I have met you so Its hard to bid goodbye,” wrote actor John Arcilla.
Ms. Siguion-Reyna was known for her unbending will, straightforwardness, and unwavering dedication to the arts. She is survived by her three children and grandchildren, some of whom followed in her footsteps including actors Cris Villonco and Rafael Siguion-Reyna.
Her wake is being held at the Heritage Memorial Park until Feb. 15, 11 p.m. — ZBC

How PSEi member stocks performed — February 12, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, February 12, 2019.

 
Philippine Stock Exchange’s most active stocks by value turnover — February 12, 2019.

Ex-technocrats push Duterte to sign rice tariffication bill

THE Foundation for Economic Freedom (FEF) urged President Rodrigo R. Duterte to sign the rice tariffication bill to help resolve various issues afflicting the rice industry, including smuggling, uncompetitive production costs, and corruption.
“We, the Foundation for Economic Freedom, urge President Duterte to sign the bill on rice tariffication immediately. The bill… will be the most far-reaching reform in the history of rice policy. For decades, the interventionist strategy has been tried, tested, and has repeatedly failed,” the FEF said in a statement issued on Monday.
The FEF’s members consist of retired technocrats. Its chairman is former Finance Secretary Roberto F. de Ocampo.
Business groups also made a similar call to the President in January.
The rice tariffication bill has been passed by both chambers of Congress — Aug. 13 in the House of Representatives and Nov. 14 in the Senate. It was transmitted to Malacañang on Jan. 15. It is expected to lapse into law by Feb. 17 unless signed or vetoed by the President.
The bill amends Republic Act No. 8178 or the Agricultural Tariffication Act, removing the government from the role of importing rice and allowing the staple to be imported more freely by the private sector while implementing a minimum tariff rate of 35% for rice shipped in from elsewhere in Southeast Asia.
The legislation proposes a 35% duty on imports from within the Association of Southeast Asian Nations (ASEAN) and higher rates for imports from non-ASEAN countries.
The FEF said the proposed measure would solve the root cause of the problems besetting the rice industry, which they said was “unwarranted government intervention.”
“By liberalizing the industry the syndicate controlling the value chain will now be nullified by free entry and competition — including entry and competition from foreign rice suppliers,” the group said.
“By leaving trading and storage in the hands of traders, competing actively in a free market, investors can best judge when to buy low and sell high — curing the problem of gluts during harvest, and releasing stocks during lean periods,” they added.
FEF also allayed concerns of those who are against the bill, saying that the proposed measure has put in place safeguards to manage the effects of the new tariffication system.
The Federation of Free Farmers (FFF) has warned that the government will be left “practically powerless” when rice prices turn volatile with the passage of the rice tariffication bill, because it removes the National Food Authority’s (NFA) importing role and restricts it to maintaining a minimum rice inventory.
FEF said the proposed tariff rates would afford protection for the industry and the proposed rice competitiveness fund of P10 billion offers safety nets for farmers.
The FEF also noted that the task of dealing with anti-competitive practices will be left to the Philippine Competition Commission (PCC).
“The time for timid half-measures is over. It is now time for bold and confident steps. Change is coming for the rice industry, Mr. President. The sooner you make it happen, the better,” the FEF said.
Malacañang said last week that the signing of the measure is “forthcoming.”
Agriculture Secretary Emmanuel F. Piñol on the other hand has said that Mr. Duterte is open to changes to the bill following concerns raised by farmers.
The government’s economic team has also noted that they are preparing for a “quick and smooth transition” to the new import tariff regime with the expected enactment of the bill. The bill is touted as among the measures that will help reduce inflation, which hit 4.4% in January. — Camille A. Aguinaldo

Singapore delegation inspecting PHL farms

SINGAPORE’s Agriculture and Veterinary Agency (AVA) has begun its 10-day on-site inspection of farms in the Philippines which it might tap to supply the small island republic with vegetables, fruit, hogs, poultry and eggs, agriculture officials said.
In a social media post, Agriculture Secretary Emmanuel F. Piñol said the Singapore authorities are inspecting, among others, Gemsun Marketing, an egg farm in Batangas; Novoagri, Inc., a Batangas egg processor; the Pilmico Layer Farm in Tarlac; the Robina Farm No. 23 in Naic, Cavite; Ana’s Breeder Farms in Davao City; and Matutum Meat Packing Corp. in Gen. Santos City.
Malaysia cut back on its exports of agriculture products to the island, leaving Singapore to search for alternative suppliers.
Singapore has expressed interest in high-value vegetables and fruit, pork and processed pork products, dressed chicken and eggs, and seafood including white shrimp.
“Last year, following reports that Malaysia was scaling down its exports of poultry and eggs to Singapore, the Department of Agriculture (DA) immediately reached out to the then Ambassador of Singapore to the Philippines, Kok Li Peng, to make a formal offer to supply (its) food requirements,” Mr. Piñol said.
“Ambassador Kok immediately arranged for the visit of an inspection team right after the Chinese New Year so that the proposed production areas of the commodities for export could be inspected,” Mr. Piñol added.
Chicken exports to Singapore from the Philippines are also expected to address oversupply conditions in the Philippines. — Reicelene Joy N. Ignacio

DoF expects improved performance in 2020 economic freedom index

THE Department of Finance (DOF) said it expects the country’s Index of Economic Freedom (IEF) performance to improve next year with the implementation of fiscal reforms elevating the Philippine score in various sub-indices.
In an economic bulletin, Finance Undersecretary and Chief Economist Gil S. Beltran said the country’s IEF performance is “expected to improve significantly” in the 2020 index year.
“The signing of the Personal Property Security Act will improve the score on property rights. The signing of the rice quota tariffication bill into law will also reduce the penalty for non-tariff barriers in the computation of trade freedom index,” Mr. Beltran said in an e-mail.
The IEF is compiled by the Heritage Foundation, a conservative US think tank. The index purports to measure the degree to which economies allow individuals the freedom to pursue their own economic interests, modeled on principles laid down by Adam Smith.
In August, President Rodrigo R. Duterte enacted the Personal Property Security Act, which provides micro-, small and medium enterprises better access to lending.
Meanwhile, the rice tariffication bill that seeks to lift quantitative restrictions on rice imports in exchange for a 35% tariff is expected to make the industry competitive and lower prices for the staple grain.
The tariffication bill is now up for Mr. Duterte’s signature, after it was ratified by both chambers of Congress in November.
“We recognize that government should not stand in the way of private sector participation in the economy. That is why TradeNet.ph, for example, should already be made operational to cut red tape in the processing of trade-related documents by 76 trade regulatory agencies,” Mr. Beltran added.
The Finance Department recently urged the Bureau of Customs to activate TradeNet, an online portal which allows traders to apply for permits online, and enable government agencies to receive the forms and send feedback.
In the 2019 IEF, the Philippines fell nine places to 70th out of 186 economies, from the previous year’s ranking of 61st, after weaker performances in the sub-indices of monetary freedom, government integrity, trade freedom and tax burden, among others.
“The absence of entrepreneurial dynamism thwarts development. Despite the adoption of some fiscal reforms, deeper institutional reforms are needed in interrelated areas: business freedom, investment freedom, and the rule of law,” the Heritage Foundation said.
Meanwhile, Mr. Beltran flagged some issues with the study, which he claims ”leaves out important details.”
He said the study penalizes a country for increasing state spending, whether an economy is industrialized or developing.
“But a developing economy may require greater government involvement in the economy as in the provision of infrastructure and social services such as basic education, health, and social protection,” Mr. Beltran said.
On the issue of tax burden, Mr. Beltran also noted that a lower score may be incurred due to higher tax effort, or the tax collected in relation to the country’s gross domestic product, resulting from improved tax administration.
The IEF also did not take into account the equity issues of a progressive tax system, as well as corrections made for bracket creep which “benefited millions of salary workers.”
The Heritage Foundation had not replied to a request for comment at deadline time. — Karl Angelo N. Vidal

Sugar industry lobbying for revival of Philsucor

THE sugar industry is batting for the revival of the Philippine Sugar Corp. (Philsucor), a government company abolished by President Rodrigo R. Duterte last year.
“(Stakeholders) passed a resolution to revive the Philippine Sugar Corp. because they said they are having difficulty in accessing loans from Land Bank,” Agriculture Secretary Emmanuel F. Piñol told reporters on the sidelines of the second day of the Sugarcane Stakeholders Summit in Quezon City on Tuesday.
“They feel that Philsucor was more responsive to their needs and was faster in releasing funds,” Mr. Piñol added.
In October 2018, Mr. Duterte through a memorandum order, abolished Philsucor, noting that the company was no longer effectively performing its duties and that its functions overlap with the responsibilities of the Sugar Regulatory Administration (SRA).
Mr. Piñol added that funds from the Sugar Industry Development Act (SIDA) are not being utilized properly.
“We came up with measures and I would like SRA to amend this. Instead of bidding for tractors, the funds should be turned over to the farmers instead, guided by agency estimates on how much a tractor costs. It should just be released to the farmers’ association so that they can buy their own equipment, and no longer have to go through the long bidding process of the government,” Mr. Piñol said.
Mr. Piñol even noted that specific funds were allocated for fertilizer to farmers in Cagayan Valley in 2016, with procurement still ongoing after three failed bids.
“If that is the case, then we are depriving people of services from the government. In 2019, we will start with the immediate and direct turnover of funds to farmer associations,” Mr. Piñol said.
Mr. Piñol said that these measures were deemed necessary by stakeholders who are opposing the liberalization of the sugar industry.
In a position paper, the Confederation of Sugar Producers (CONFED) said a majority of sugar farmers are Agrarian Reform Beneficiaries (ARBs), and pushing for liberalization will only increase their poverty.
“It is ironic that the government, after providing the opportunity for these former sugar workers to become producers through the agrarian reform law will — through these economic managers — consign them once more to poverty by concocting this liberalization plan from the comforts of their air-conditioned offices,” according to the position paper.
Food processors have been asking the government to allow the removal of quantitative restrictions (QR) on sugar importation, claiming that prices of food and beverages using sugar will rise without alternatives to expensive domestic sugar.
“We call on the beverage companies to moderate their greed and have some heart for an industry that is also part of their consumer chain. Last year, these beverage companies publicly acknowledged that they are ‘partners’ of the sugar industry and that ‘the small farmers are the most vulnerable and in need of support,’ thus their desire to help ‘improve their lives and provide better opportunities for our farmers and their families.’ However, these sentiments are belied by their lobbying to liberalize imports,” CONFED said. — Reicelene Joy N. Ignacio

National minigrid franchise could conflict with RE law — NREB

THE National Renewable Energy Board (NREB) said granting a franchise to a single entity to build and operate minigrid systems nationwide could result in possible conflict with the provisions of the Renewable Energy Act of 2008.
“The original intention for the franchise created under House Bill 8179, was to provide affordable electricity access to unserved and underserved areas, as determined by Department of Energy (DoE). The franchise bill must provide definitions or guidelines on how these areas are to be determined, to avoid duplication of facilities that provide the same distributive service,” NREB said in a position paper.
The board’s position is in response to House Bill 8179, an act that seeks to grant Solar Para Sa Bayan Corp. a franchise to construct, install, establish, operate and maintain distributable power technologies and minigrid systems throughout the country. The bill is supposed to improve access to sustainable energy.
“The franchise bill in its current form may also have some inconsistencies with other provisions or mechanisms of the RE Act. In this regard, it is respectfully requested to have such amendments to align with the policies of the RE Act, such as Renewable Portfolio Standards, and the Green Energy Option Program,” it added.
NREB, which serves as an advisory body to the DoE on issues relating to renewable energy, said it believes RE developers and other stakeholders should have the space to articulate their concerns regarding the franchise bill and to propose changes to the bill in its current form.
The board said the RE Act, or Republic Act No. 9513, does not discriminate among any of the renewable energy technologies, but the name of the proposed grantee itself “may provide solar an undue advantage over other RE technologies.”
It said Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), was promulgated to promote competition in the sector in order to provide affordable electricity to end users.
NREB said renewable energy developers are currently forced to compete with non-RE developers in the captive and retail electricity markets by following policies on competitive selection process (CSP) or retail competition and open access (RCOA).
“The franchise bill will further create a separate RE sector for the grantee, which prevents the grantee from undergoing CSP or complying with the requirements of RCOA, seems to be an unfair advantage of the grantee over other functionally similar RE developers,” it said.
CSP requires power supply agreements between distribution utilities and power developers to be opened up to challengers that can offer a lower electricity rate. RCOA allows electricity users who have reached a pre-set threshold to buy power from retail electricity suppliers, which may offer lower rates than franchised distribution utilities.
“In view of this, NREB respectfully requests the Senate to modify the franchise bill to remove any undue advantage the franchise grantee may have over other RE developers,” the board said. — Victor V. Saulon

Government to divest from Metro Pacific tollways unit

THE government is divesting its stake in a tollway subsidiaries of Metro Pacific Investments Corp. (MPIC), disposing of the shares in an auction next month.
In a bulletin published in a newspaper on Tuesday, the Privatization and Management Office (PMO) of the Department of Finance (DoF) invited bidders to participate in an auction for 76,000 common shares in MPIC’s Tollways Management Corp. (TMC).
The shares, which are currently held by the government, have a minimum base price of P2.578 billion. Interested participants must submit a financial bid not less than the indicated price.
While the competitive auction is open to all parties, shareholders of TMC have right of first refusal in the auction. TMC is a subsidiary of Metro Pacific Tollways Corp. (MPTC), the tollways unit of MPIC.
MPTC President Rodrigo E. Franco said in a text message that the group has not yet decided what action to take in the auction.
“No position yet on bidding for the shares. We have right of first refusal anyway,” he said, adding that the group has been advised of the auction by the DoF.
TMC is the MPTC subsidiary in charge of the operations and maintenance at the North Luzon Expressway (NLEx) and Subic Clark Tarlac Expressway (SCTEx).
Mr. Franco noted that the government is only selling its stake in TMC and continues to hold shares directly in NLEX Corp., another subsidiary of MPTC.
The pre-qualification stage of the auction is March 15. Participants are required to submit a letter of intent, a notarized confidentiality undertaking and a P100,000 non-refundable participation fee to the PMO TMC shares disposition committee.
MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Dedicated agency proposed to upgrade educational qualifications

THE Government-Academe-Industry Network (GAIN) is backing the establishment of an agency that will oversee national educational qualifications and bring them up to par with international standards.
In a roundtable discussion with media on Friday, GAIN President Monette M. Iturralde-Hamlin said that the nonprofit organization will be lobbying lawmakers to consider the idea of an agency that will administer and overlook the Philippine Qualifications Framework (PQF).
“We need to have this unified agency so that the qualifications in the Philippines will be recognized in other countries and be globally competitive,” she said.
According to Republic Act 10968 or the PQF Act, a PQF National Coordinating Council (PQF NCC) is tasked to oversee the qualifications framework. Ms. Iturralde-Hamlin said that other countries have their own separate government agencies dedicated to this role.
She cited the need to bring the Philippine qualifications framework in line with the ASEAN Qualification Reference Network (AQRF).
“We found out that other countries are much more advanced in implementing it because they have one unified agency that implements it. In Philippines, we only have a council. Agencies need to have (appropriate authority) for something to happen,” she said.
The PQF NCC is composed of representatives from Department of Education (DepEd), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), Professional Regulation Commission (PRC) and the Department of Labor and Employment (DoLE).
“The council is tasked with so many things but who’s going to do the work? For something to happen, you need to have an organization and people to do it. You need a budget and you need someone to lead it, organize it, measure it,” she said.
Ms. Iturralde-Hamlin added that the proposal for a dedicated agency is part of GAIN’s program in partnership with other stakeholders aiming to upgrade English language proficiency standards and digital literacy. — Gillian M. Cortez

Meralco to launch power service in two islands in Batangas, Quezon

MANILA Electric Co. (Meralco) is set to distribute electricity to two islands in Quezon and Batangas, within its franchise area less than a year after the Department of Energy (DoE) called out the country’s biggest distribution utility for failing to energize these areas.
“The ceremonial switch-on [in Isla Verde] is scheduled for Friday [Feb. 15],” according to Lawrence S. Fernandez, Meralco vice-president and head of utility economics, said in a text message.
“The hybrid solar-battery power plant, and corresponding Meralco distribution facilities were actually completed in 2017,” he added.
Mr. Fernandez said Meralco was complying with certain government requirements of the local government units (LGU), DoE and Energy Regulatory Commission (ERC) and “guiding customers on the service application process in the interim.”
Mr. Fernandez said Meralco is also ready to serve Cagbalete Island on the Pacific coast of Quezon province.
“The power plant and distribution lines are already in place in Cagbalete Island,” he said earlier.
Cagbalete falls within the jurisdiction of Mauban, Quezon, while Isla Verde is part of Batangas City.
“We are just going through the usual permitting process at the DoE and the ERC,” he added.
Mr. Fernandez said the power system in Cagbalete is a hybrid of solar, battery and diesel energy sources. He said the 30-kilowatt system is sufficient to serve 200 households.
“[In the island of Isla Verde] the power plant is LGU (local government unit)-owned but we partnered with the LGU so that we can have the corresponding distribution lines, and we also talked to the consumers in the island so that their application forms can also be ready,” he said.
He said the capacity of the power system in Isla Verde is 32 kilowatts.
In April, the DoE asked Meralco about why an island under its franchise area remains without reliable power.
DoE Secretary Alfonso G. Cusi wrote Oscar S. Reyes, Meralco president and chief executive officer, on April 6, to note that Isla Verde in Batangas remains among those identified by the department as “unserved or underserved.”
The notification came as DoE was reviewing identified areas for possible operation of third-party electricity providers and Isla Verde, located along the Isla Verde passage on the way to Mindoro island, was among them.
“Since the island is within your franchise area, may we be apprised on the reasons why the island remains unserved by Meralco up to this date,” Mr. Cusi said in his letter.
The review of the areas without power is in line with the DoE’s mandate to look for ways to provide electricity to the unserved and underserved areas at a price lower than the small power utilities group’s (SPUG) true generation cost.
In his letter, Mr. Cusi requested that Meralco submit a proposed electrification plan “with a definite timeline for the said area.” The DoE made a similar query for Cagbalete Island, which at that time was without reliable power supply.
Mr. Fernandez clarified that Meralco had been audited for its service in the Batangas area, which was identified in a recent hearing as among the 17 “unserved and underserved” areas in the Philippines in terms of electrification.
“Similar to the objectives of the franchise, we also target full electrification for all our service areas,” he said.
“We serve one city and two municipalities in the Batangas area,” he said. “The ERC and the distribution management committee already audited Meralco on its performance. We were given a 100% grade and I think customers there in the areas that we serve in Batangas City know that we have been providing world-class service. We think we can continue to provide that world-class service to those consumers,” he said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

Charting a course for our shared future

By Sung Y. Kim
HOW do we ensure that our friendship, partnership, and alliance, forged over the past century, evolve to meet our needs a century from now? Last week, the US Embassy brought together top US, Filipino, and regional experts to ask this very question.
The United States and the Philippines are Indo-Pacific countries. This region enjoys almost unparalleled levels of economic growth and expansion that offer remarkable opportunities to all of its nations. However, the Indo-Pacific faces manifold challenges that, left unchecked, could threaten regional stability and prosperity. How do we effectively maximize the region’s potential while avoiding the perils that lie over the horizon?
I had the opportunity to open the two-day think tank conference on “The Future of the US-Philippines Relationship” with DFA Undersecretary Enrique Manalo and DND Undersecretary Cardozo Luna. In our remarks, we all agreed the best way to prepare our two countries for a promising but uncertain future is to do so together. Our long-standing ties have enabled us to achieve many shared successes. As the world changes, though, our relationship, too, must evolve to seize emerging opportunities and overcome unforeseen challenges.
The Indo-Pacific region lives under the strain of terrorist threats and extraterritorial claims backed by increasingly sophisticated and lethal military assets. Security cooperation continues to be a centerpiece of our relationship, and conference panelists heralded the importance of the alliance. They recommended that as domestic and regional threats change, we should continuously evaluate and assess our shared priorities.
Last month’s horrific attack in Jolo demonstrated the ongoing regional terrorist threat. I am proud that we have been the Philippines’ staunchest counterterrorism partner. As these threats become more complex, conference panelists recommended we increase “whole of government” cooperation between local law enforcement, military, and border security counterparts. They also made several recommendations on combating radicalization, such as developing stronger local leadership networks and improving local governance capacity.

PH US relations
How do we effectively maximize the Indo-Pacific region’s potential while avoiding the perils that lie over the horizon?

Our bilateral commercial engagement has fueled growth and created jobs, but all economic panelists agreed we can do more — and they’re right. The global economy is constantly evolving. Old markets close while others emerge, and innovation makes once essential skills obsolete. How do we best position ourselves to unlock the potential in our economic relationship, sustain growth, and capitalize on future market trends?
Panelists urged continued government-to-government cooperation to facilitate greater trade and investment, possibly through a future free trade agreement, while encouraging the US private sector to take advantage of the Philippines’ growing economy, youthful work force, and English language skills. They also called on the Philippines to do more to encourage foreign investment.
While business services and agriculture have potential for expansion, so, too, does collaboration between our start-up communities. Fantastic groups are creating a more robust start-up ecosystem in the Philippines and linking technopreneur communities in Silicon Valley and elsewhere in the US with the Philippine market. There is considerable promise when our youth work together to identify community and business solutions. In addition to directly supporting entrepreneurship development through work with Philippine innovation hubs, we also will leverage exchange programs like the Fulbright and the Young Southeast Asian Leaders Initiative to expand networks between our innovative creators.
Under the Duterte administration, the Philippines has boosted infrastructure spending to sustain growth and create jobs. There has been considerable global debate about international infrastructure financing, and conference participants shared their views. They all agreed that infrastructure projects should be transparent, high-quality, and sustainable. There were helpful recommendations on how our governments can unlock opportunities for US companies to become more involved in “Build, Build, Build.”
The experts we brought together last week, including a group of emerging Filipino leaders, engaged in spirited debate and offered a range of ideas on the future of our relationship. While different experts offered different ways forward, there was unanimity on the most critical point: the enduring relationship between the United States and the Philippines is critical to securing our future security and prosperity. Mabuhay!
 
Sung Y. Kim is US Ambassador to the Philippines.

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