PSE to create IT subsidiary

January 25, 2019 | 12:02 am

THE Philippine Stock Exchange, Inc. (PSE) plans to incorporate a firm that will offer information technology (IT) services and develop software solutions.
In a disclosure posted on Wednesday, the bourse operator said its board of directors has approved the incorporation of the IT firm. It will have an authorized capital stock of P100 million, half of which will be subscribed and paid-up.
The PSE did not provide further details when asked for comment.
The company last year also established a new subsidiary that will handle its real estate assets called PSE Realty, Inc. PSE’s real estate assets include the office spaces in Ayala Tower One in Makati. The company moved out of Makati in 2018 to the new PSE tower along Bonifacio High Street in Bonifacio Global City.
Prior to the move, the PSE sold its old offices in the PSE Tektite Building in Ortigas Center to its developer, Philippine Realty Holdings Corp. for P257.16 million.
PSE’s net income attributable to the parent dropped by 49% to P256.62 million in the first nine months of 2018, due to higher expenses incurred during the period.
Shares in PSE jumped 3.68% or P6.60 to close at P186 each at the stock exchange on Thursday. — Arra B. Francia

A vote for peace

January 25, 2019 | 12:01 am

PASS the Bangsamoro law: Check.
Next on the government’s to-do list: Ensure ratification.
“The establishment of the Bangsamoro Autonomous Region and the determination of its territorial jurisdiction shall take effect upon ratification of this Organic Law by majority of the votes cast in a plebiscite…,” reads Section 1, Article 15 of the Bangsamoro Organic Law (BOL) that is marked as signed by President Rodrigo R. Duterte on July 27, 2018.
There is no categorical provision in the 109-page BOL as to an alternative plan should a ‘No’ vote win in the plebiscite, which is scheduled on two dates: Jan. 21 within the Autonomous Region in Muslim Mindanao (ARMM), Cotabato City, and Isabela City; and Feb. 6 for Lanao del Norte and Cotabato, including towns and barangays with approved petitions to join the Bangsamoro ARMM (BARMM).
“Mag-ampo lang ta nga makalusot. Og dili, laing problema na pud na. (Let’s just pray that it will manage to get passed. If not, then that will be another problem),” Mr. Duterte said in a speech last Sept. 21 as he visited landslide victims in Naga City, Cebu.
The government is not exactly relying on divine intervention as a strategy, with representatives of the Office of the Presidential Adviser on the Peace Process (OPAPP), along with the Bangsamoro Transition Commission (BTC) and the Moro Islamic Liberation Front (MILF), having been busy holding forums in different areas to explain the BOL — and ensure that it gets the people’s approval.
Various non-government organizations as well as the Moro National Liberation Front (MNLF), which was the first to sign a peace deal with the government that paved the way for the creation of the Autonomous Region in Muslim Mindanao (ARMM), have also been making the rounds to explain and rally support for the BOL.
“It is very important for us to know the intricacies of the law to reach better understanding,” said Undersecretary Nabil A. Tan, chair of the government Implementing Peace Panel for Bangsamoro Peace Accords, during one of the forums held in Sulu, Jolo on Nov. 18.
Amina Rasul-Bernardo, president of the nonprofit policy and advocacy organization Philippine Center for Islam and Democracy (PCID), said the prevailing concern is not so much failing a ratification, but facing another stumbling block in the goal of strengthening and expanding the Bangsamoro region.
“While we are now looking at a plebiscite to expand the current region, and to have a stronger region of autonomy, what we worry about is that the national climate might negatively impact the voters who are outside the ARMM,” said Ms. Rasul in a Nov. 19 interview with BusinessWorld in Davao City, referring to economic issues such as inflation and the continued martial law imposition in the entire Mindanao.
“In the ARMM, we are also hearing that there are some governors who are not in favor, for example the Sulu governor who filed a case in the Supreme Court. I am confident that there is nothing unconstitutional about the BOL and that this petition will not prosper. However, internally, a campaign has to be mounted to make sure that the current ARMM remains together, that there is no diminution,” she added.
At the OPAPP forum in Sulu, Nestor Ukkoh, municipal council secretary of Jolo who represented Mayor Kerkhar Tan, expressed their appreciation of the government’s campaign.
“In order for us to have sound judgment of the BOL, there’s a need for us to understand the law, to increase the awareness and address misconceptions about the law,” he said.
ARMM Gov. Mujiv S. Hataman, meanwhile, lambasted the legal move by Sulu Gov. Abdusakar A. Tan II as politically-motivated.
“It is such a shame that it is a Moro who seeks to spoil this process all over again. We cannot allow the personal interests or anyone—especially not a Moro—to again sow discord where we so clearly need peace. We cannot allow the short-sightedness that is the politics of patronage to again wreck the progress we have made on the road to a lasting peace,” Mr. Hataman said in an Oct. 31 statement.
“We are confident that the Bangsamoro Organic Law will stand well under scrutiny and it will become the strong foundation of the peace we have been building for so long. Moros are people of peace and peace will win in the end,” he added.
The case, which questions the constitutionality of the BOL and seeks a temporary restraining order on its implementation, is pending before the country’s highest court.
TURNOVER
Meanwhile, the ARMM government, confident of the BOL’s approval, is prepared for the turnover to the Bangsamoro Transition Authority (BTA), which will be composed of 80 multi-sector representatives to be appointed by the President.
Under Article 16 of the BOL, the elected ARMM officials “shall automatically become members” of the BTC until June 30, 2019.
“ARMM has made a remarkable turnaround to become a responsive, efficient, and effective government,” said ARMM Vice- Governor Haroun Al-Rashid Lucman during the region’s 29^th, and what they celebrated as the last, anniversary event last Nov. 19.
Mr. Lucman said this year’s festivities were about “standing proud in leaving behind an ARMM” that has been “previously stigmatized as a failed experiment.”
Mr. Hataman, who is running in the May 2019 midterm elections as representative of the lone district of his hometown Basilan, is preparing for what he tags as his “last” state of the region report on Dec. 18.
ECONOMIC OPPORTUNITIES
ARMM Regional Board of Investments (BoI) chair Ishak V. Mastura said the BOL, which provides broader political and economic autonomy as well as a larger territory, will open more opportunities, particularly towards agro-industrial development.
“This is the thrust of the (ARMM) economy. What we really need is to upgrade the production as well as processing, and to go into other businesses like manufacturing and garments trading,” Mr. Mastura said in an interview with BusinessWorld in Davao City on the sidelines of a PCID forum on Transparency and Accountability in the Extractive Sector Under the Bangsamoro Organic Law.
He noted that the ARMM government and the Philippine Business for Social Progress (PBSP) has completed a guidebook on investing in ARMM, entitled Brokering Business and Investments in the Bangsamoro.
The guidebook, he said, uses the business sustainability framework with focus on community engagement.
He cited the success story of Unifrutti Philippines, which now has around 3,000 hectares of plantations within the ARMM, including former rebel strongholds.
“It’s not just the plantation workers, but the community surrounding it were given the benefit of the investment that was put up there,” Mr. Mastura said.
The ARMM-BoI head also pointed out the need to establish economic zones, such as in the island province of Tawi-Tawi, where government procedures and public services can be more easily streamlined for investors.
“I hope they (Tawi-Tawi) can comply and we can declare it and maybe they can already build their own infrastructure and attract investors in the area for their ecozone,” he said.
ISLAMIC BANKING
Another key factor in attracting external investors into what would become the Bangsamoro ARMM (BARMM), along with supporting the growth of local entrepreneurs, is the passage of the Islamic banking law.
Mindanao Development Authority (MinDA) Deputy Executive Director Romeo M. Montenegro said institutionalizing Islamic funding mechanisms will provide new financial windows, especially in conflict-affected areas not just in the BARMM but in Mindanao as a whole.
“MinDA has been sounding this off many times, as conventional banking system is risk averse to Mindanao, particularly in funding big ticket projects in Muslim areas,” Mr. Montenegro told BusinessWorld.
He noted the government’s plan to include Sukuk bonds, or bonds that comply with Islamic rules, in the banking system.
Islamic banking does not allow the imposition of interests, but lenders and borrowers can enter into joint venture mechanisms that would give the former an opportunity to earn from the financial outlay.
These bonds, Mr. Montenegro said, will provide a window for the entry of funding from key Middle East countries like Saudi Arabia, Qatar and the United Arab Emirates.
Budget and Management Secretary Benjamin E. Diokno announced in mid-Nov. that the government plans to float Shari’ah-compliant securities next year if a legal framework is established by Congress.
The House of Representatives has approved on final reading Bill 8281, An Act Providing for the Regulation and Organization of Islamic Banks, while the counterpart Senate Bill No. 668, the Philippine Islamic Financing Act , is pending. Senator Sherwin T. Gatchalian also filed on Nov. 21 Senate Bill No. 2105, which seeks to establish a regulatory framework for the development of Islamic banks in the country.
“I see no problem with HB 8281 getting merged with SB 668. The two bills complement each other and can be merged with ease,” Leyte 2^nd District Rep. Henry C. Ong, chair of the House committee on banks and financial intermediaries, said in a statement on Nov. 22.
“Parallel to that (passage of the law) is the laying of more groundwork for a Philippines’ Islamic banking roadshow in Malaysia, Indonesia, Singapore, Saudi Arabia, United Arab Emirates, Qatar, and Morocco, to name a few prospects,” Mr. Ong said.
Section 32 of the BOL’s Article 13, covering Regional Economy and Patrimony, provides that the “Bangsamoro Government and the Bangko Sentral ng Pilipinas (BSP), the Department of Finance, and the National Commission on Muslim Filipinos shall jointly promote the development of an Islamic banking and finance system, to include, among others, the establishment of a Shari’ah-compliant financial institutions.”
The BSP is tasked with determining the “type of organizational structure to be created and its composition.”
EXTREMISM
Lawyer Benedicto R. Bacani, executive director of the Cotabato City-based Institute for Autonomy and Governance, said the peace processes with both the MNLF and the MILF have “raised national consciousness on the history of Mindanao and the Moro people and the loss of sovereignty, land and identity due to colonization.”
In a speech on the “Dynamics Of Poverty, Politics And Peace: Mindanao And Beyond” delivered at the 4^th Mindanao Peace Studies Conference on November 21 in Butuan City, Mr. Bacani further said that the peace process with the MILF, the cornerstone for the BOL, “is indeed more comprehensive in recognizing the root causes” of poverty and unrest in Mindanao along with the “contemporary modes of addressing them.”
He warned, however, that “structural violence that breeds conflicts and unpeace can only be addressed in an environment where the work for social justice is thriving and social justice is being pursued at all costs.”
Ms. Rasul also said that “violent extremism” remains one of the biggest dangers confronting the region, which the BOL could help nip with the institutional changes that its provisions will establish.
“All these can only happen if the Duterte administration remains firm in its support of the new region of autonomy and the plebiscite,” she said.
MARAWI
One of the most crucial points where that support needs to be delivered is in war-torn Marawi City.
The Conflict Alert 2018 report by International Alert Philippines opens by describing 2017 as “a turning point in the magnitude of violent conflict in the Bangsamoro, amplified by the astonishing increase in conflict deaths due to the war in Marawi City and other places in Mindanao.”
“Fewer incidents produced deadlier results in contrast to previous years. The question is whether this sort of outcome will persist in the future,” it said.
At the Marawi stop of the OPAPP series of BOL forums on Nov. 24, which was undertaken in partnership with the MNLF, Commissioner Datu Omar Yasser C. Sema of the BTC stressed that participating in the BOL plebiscite will serve as the Bangsamoro people’s “new weapon” for their aspirations towards peace and self-determination. — Marifi S. Jara with Carmelito Q. Francisco and Maya M. Padillo

Where will the Bangsamoro plebiscite be held?

Autonomous Region in Muslim Mindanao
Provinces of Sulu, Tawi-Tawi, Basilan (except Isabela City), Maguindanao, and Lanao del Norte
Lanao del Norte province
The municipalities of Baloi, Munai, Nunungan, Panta, Tagoloan and Tangkal
Cotabato province:
The 39 barangays in the towns of Aleosan (3 barangays), Carmen (2), Kabacan (3), Midsayap (12), Pigkawayan (28), and Pikit (11) that voted for inclusion in the ARMM during the 2001 plebiscite.
Cotabato City, an independent component city currently under the SOCCSKSARGEN (South Cotabato-Cotabato-Sultan Kudarat-Sarangani-General Santos City) Region
Isabela City in Basilan
The Commission on Elections said that as of Nov. 27, it is reviewing more than 50 petitions filed for inclusion. The approved list is targeted for release before the end of 2018.

One-over-one line management approval

January 25, 2019 | 12:01 am

We’re thinking of raising the empowerment level of our people managers to decongest and simplify our administrative work processes and improve our labor productivity at the same time. One department manager suggests that we consider the “one-over-one” approval of employee leaves, work schedules, and other related matters. What do you think? What are the things that we should consider to make such change successful? — Yellow Submarine.
A long time ago, there was a church that patterned its religious practices after those in the early years of America. For one, the pastor was dressed in long coat and knickerbockers and the congregation was divided by gender. Men were seated on the left side of the aisle, while the women sat on the right.
One Sunday, the pastor announced a new collection system taking effect immediately. He asked the “heads of the household” to come forward and place their contributions on the altar. The men rose instantly and to the amusement of the pastor and his entire congregation, more than half of them crossed the aisle to get money from their wives.
In many organizations, there is a clear line of responsibility that separates between the minion boss and the “real boss.” The minion boss gives specific instructions and monitors how certain tasks are being done to their workers without being allowed to disburse any money. One the other hand, the “real boss” holds the purse and controls budget flow, and will not release any money without his signature, no matter how insignificant is the amount.
This takes more than a sizeable chunk of time for the “real boss” who is trapped in many administrative details and may not be able to perform important strategic functions. He can bask in self-importance using the power of the purse, without realizing that it also contributes to a lot of waste, including unnecessary waiting time for all concerned.
More than that, the minion boss is reduced to a mere paper supervisor or manager who has no authority to approve even the most insignificant task, like approving vacation or sick leave of their workers or signing for P500 in petty cash for emergency purchases.
This happens most of the time because of excessive control that has been perpetuated with no one challenging it as an obstacle to efficient people management. Probably, that is one reason why Peter Drucker (1909-2005), known as the Father of Modern Management came up with the maxim: “Most of what we call management consists of making it difficult for people to get their work done.”
Many organizations are often seen practicing excessive command-and-control that mean even trivial tasks and insignificant amounts of money must pass through several layers of management approval. This happens because of incorrect interpretations of what a management job entails. To correct this common issue, top management must empower people supervisors and managers through the implementation of a one-over-one approval.
But, what exactly is one-over-one approval? It means that a supervisor or manager must be primarily responsible in supervising his workers. Nothing more than that. However, he must be given “almost” complete authority to act as an empowered line executive as he is the only one tasked to manage, monitor, guide and evaluate the work performance of his workers.
This includes coaching the workers on how to perform better at work, train them and discipline them, when necessary. Correlated to this, the line supervisor or manager must determine the right work schedule to meet the exigencies of service and produce the best quality work, according to the company’s standards, budget and timeline.
The line supervisor or manager need not elevate matters to his boss, unless the former is on leave, on official business elsewhere or incapacitated. Another exception to this general rule is when a situation calls for a double or multiple approval like in the case of an employee seeking an extended vacation leave without pay to visit an ailing family member somewhere or to complete his graduate studies or to review for the bar examination.
If the supervisor or manager is responsible for the output of his workers, then it follows that the same supervisor or manager must be given the right authority to perform his task which includes the signing of the workers’ attendance record, approving their leave applications, processing training needs, among other related administrative concerns.
This is called “decentralization” or giving exclusive authority to a line supervisor or manager so that he can perform his task in accordance with his knowledge, ability, and independent judgment. By “independent judgment,” I mean, he’s not required to secure further approval. This approach is necessary to ensure proper training of people who are second-in-command.
Such a decentralization strategy may be limited depending on industry practice and practical application where line executives are allowed to sign each transaction in accordance with certain budgetary limits.
Increasing labor productivity and simplifying work processes are a lot easier to do if all line executives are given one-over-one responsibility. Seeing them perform such tasks as a matter of policy and practice creates a dynamic system for any organization.
ELBONOMICS: If you’re not stressed out, you’re not carrying your share of the load.

Send feedback or any workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting.
Anonymity is guaranteed for those who seek it.

Your Weekend Guide (January 25, 2019)

January 25, 2019 | 12:01 am

A Rach Concert

PIANIST Raul Sunico, together with the Philippine Philharmonic Orchestra, will perform four piano concertos — No. 1 in F-sharp minor, op. 1, No. 2 in C minor, op. 18, No. 3 in D minor, op. 30, and No. 4 in G minor, op. 40 — by Russian composer Sergei Rachmaninoff in A Rach Concert on Jan. 26, 8 p.m., at the Main Theater of the Cultural Center of the Philippines. The concert is for the benefit of the Sunico Foundation for Arts and Technology. For tickets, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

SmartKids fair

EDUCATION technology has recently made great strides in increasing students’ enthusiasm and elevating their learning experience. To have more Filipino families experience some of these technological advances, Diwa Learning Systems is bringing the 2019 Diwa Innovation Lab to this year’s SmartKids Asia Philippines. SmartKids Asia Philippines will be held from Jan. 26 to 27 at Halls 1 and 2 of the SMX Convention Center Manila. Families attending the fair can visit the Diwa booth for a chance to learn more about these technologies, one of which is robotics. To learn more about Diwa’s offerings, visit www.diwa.ph. Visit the SmartKids Asia Philippines Facebook page for more event details and updates (www.facebook.com/smartkidsasiaphilippines).

Gendered Bodies at the Met

THE Metropolitan Museum of Manila launches the exhibit Gendered Bodies in Southeast Asia, a study of aesthetics with a transgenerational approach by artists from the Southeast Asia region, on Jan. 26, 2 p.m. Participating artists are the Philippines’ Brenda Fajardo, Singapore’s Amanda Heng, and Taiwan’s Wu Mali. For details on the exhibit, contact 708-7829.

Chinese New Year at Shangri-la Plaza mall

THE Kim Hwa Chinese Ensemble will be performing at the Shangri-La Plaza mall on Jan. 27.

SHANGRI-LA Plaza welcomes the Chinese New Year with a lineup of events and activities including a performance by the Kim Hwa Chinese Ensemble. The group will be playing its contemporary repertoire on traditional Chinese musical instruments on Jan. 27, 7 p.m., at the Grand Atrium. The celebration will continue with the Chinese Spring Film Festival from Jan. 30 to Feb. 5 at the new Red Carpet Cinemas; the Chinese New Year Fireworks Show on Feb. 2, 8 p.m.; a Chinese Painting Workshop on Feb. 3, 2-4 p.m. at the Grand Atrium; a Dragon & Lion Dance Exhibition by the Philippine Ling Nam Athletic Federation on Feb. 10, 2 p.m., at the Grand Atrium; and a Chinese Bazaar from Feb. 1 to 10 at the Grand Atrium. For inquiries, call 370-2597/98 or visit www.facebook.com/shangrilaplazaofficial.

Films on fashion

THE Museum of Contemporary Art and Design (MCAD) of the De La Salle-College of Saint Benilde (DLS-CSB) presents a selection of films about fashion on weekends this January. On Jan. 25 and 26, Learn about China’s fashion and clothing industry with Useless. This documentary revolves around textile workers who are considered useless, as well as the contrasting relationship between people and their clothing according to their status in the society. Screenings are at noon at The Loop, 12/F DLS-CSB Campus, and are free and open to the public. For inquiries and reservation, call 230-5100 local 3897 or e-mail at mcad@benilde.edu.ph.

Rep’s Rapunzel

REPERTORY’s Theater for Young Audiences presents Rapunzel: A Very Hairy Fairy Tale until Jan. 27 at Onstage Theater in Greenbelt 1, Makati. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

More bank offices built in towns, cities in 2018

January 25, 2019 | 12:01 am

MORE TOWNS in the Philippines had bank offices in 2018, with the central bank seeing further room to widen financial access through basic deposit accounts.
Around 66.3% of towns and cities in the country have banking presence as of end-2018, higher than the 65.1% ratio in 2017, according to the latest financial inclusion initiatives report of the Bangko Sentral ng Pilipinas (BSP).
Of these municipalities, 93.2% already have at least one access point for financial services. This rose from 90.1% tallied in 2017, data showed.
“These figures have been steadily growing as banks set up more low-cost access points,” the central bank said.
Despite improving numbers, the number of Filipinos using formal financial channels remained low. Barely half of adults had savings, but 71.3% of them still kept their money through informal means rather than with the banks.
Roughly 15.8 million adults had formal accounts, or just 22.6% of the total.
The Philippines ranked fourth among 55 nations in terms of financial inclusion and the best in Asia alongside India, according to the 2018 Global Microscope of the Economist Intelligence Unit.
The central bank is counting on several reform measures to broaden financial access, starting with basic deposit accounts which were formally introduced in February last year. This allows financial firms to offer low-cost bank accounts to customers by simpler opening requirements and few documents, no minimum maintaining balance, and no dormancy charges.
Some banks have started to offer this new product, which the BSP counts as a tool to get more Filipinos aboard the financial system. It is eyed to be used by Filipinos making remittances and payments.
The recent passage of the Philippine Identification System, which will create a national ID for all Filipinos and resident aliens, should also boost inclusion, the BSP noted in the report.
The BSP targets to raise the share of digital payments to 20% of total transactions by 2020 from a measly 1% recorded in 2013 through its National Retail Payment System project.
Studies showed that gross domestic product could increase by more than 14% if the financial inclusion gap was closed in the Philippines.
The World Bank said authorities should prod Filipinos to use their account beyond storing funds, and instead pay for utility bills, domestic remittances and retail transactions. — Melissa Luz T. Lopez

Amaia Land set to launch 5 new projects

January 25, 2019 | 12:01 am

AMAIA LAND Corp. offers “affordable yet superior quality” housing projects. — *AMAIA LAND CORP*.

THE economic housing unit of Ayala Land, Inc. (ALI) on Thursday said it is launching five residential developments this year, alongside the expansion of eight existing projects.
In a statement on Thursday, Amaia Land Corp. said it is introducing two townhouse projects within ALI’s mixed-use developments Vermosa Estate in Cavite and Nuvali in Sta. Rosa, Laguna, as well as a building in Capitol Central in Bacolod City, Negros Occidental.
Amaia Land is also developing a house-and-lot community in Binangonan, Rizal, and a condominium in Tandang Sora, Quirino Highway.
“With the launch of these new projects, individuals and families alike may now look forward to settling down in their dream homes in ‘greener, more breathable’ neighborhoods in low-density locales in the metro,” Stephanie J. Lingad, chief operating officer of Amaia Land, was quoted as saying in the statement.
The property company is also expanding eight existing developments in Sucat and Bicutan in Parañaque; General Trias and Trece Martires in Cavite; Novaliches in Quezon City; Cabuyao, Laguna; Bulacan; and Shaw Boulevard in Mandaluyong City.
In an e-mail to BusinessWorld, an Amaia Land representative said the company targets to build 4,301 units this year, while 5,301 units are expected to be turned over to its owners. — Vincent Mariel P. Galang

How PSEi member stocks performed — January 24, 2019

January 25, 2019 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, January 24, 2019.

Philippine Stock Exchange’s most active stocks by value turnover — January 24, 2019.

Farmers’ group urges veto of rice tariffication bill

January 24, 2019 | 10:16 pm

A FARMERS’ ASSOCIATION is urging President Rodrigo R. Duterte to veto the rice tariffication bill as the government will not be able to respond if the price of rice turns volatile with the National Food Authority (NFA) restricted to a role of maintaining a minimum rice inventory.
“The economic thinkers are saying that a free market will ensure that rice prices will go down even without NFA. They could be correct but what if they are wrong? What if importers collude to bring up prices? What if they refuse to import because prices are too high? What if palay prices suddenly go down because of excessive imports? The government will be practically powerless in all these scenarios under the proposed bill,” Federation of Free Farmers (FFF) National Business Manager Raul Q. Montemayor said in a statement.
Mr. Montemayor said that the NFA will most likely stop buying from farmers when it acquires sufficient rice for its buffer stock even if palay prices are declining.
“The tariffication bill should focus only on the removal of volume restrictions on rice imports. This is all what we have to do under our commitments to the World Trade Organization (WTO). The issue of what happens to NFA and the role of government in the rice trade must be addressed separately and only after a comprehensive study and following genuine consultation with stakeholders,” Mr. Montemayor said.
“The spike in prices last year was not because of the import restrictions. Private importers were given a quota of more than 800,000 tons but they did not fully avail of the quota. Nor was it because of the ineptness of the NFA, [but] because it was the representatives of NEDA (National Economic and Development Authority), Central Bank and DoF (Department of Finance) in the NFA Council who repeatedly rejected proposals to raise the NFA’s palay buying price or to undertake additional imports in order to replenish the agency’s stocks. These were the very same agencies who blamed NFA for the rice crisis they created and who now want to render the NFA inutile,” Mr. Montemayor added.
Meanwhile, the NFA said that it has procured 88,982 bags of palay or about 144% of its 200,500 bags target for January.
According to NFA, its office in Region XII has already purchased 79,133 bags as of Jan. 23, way above its targeted 2,000 bags for the whole month.
“We are happy to note that more farmers are now selling their harvest to NFA. We attribute this to two things: One is the recent approval by the NFA Council of an additional P3 per kilogram (kg) buffer stocking incentive (BSI) on top of the NFA’s palay support price of P17 per kg plus drying, delivery and cooperative incentives of P0.70 per kg, bringing the maximum buying price to P20.70 per kg. Two is the readiness of NFA personnel and logistics to accept palay deliveries any day of the week and even on weekends when necessary,” NFA Officer-in-Charge Administrator Tomas R. Escarez said in a statement. — Reicelene Joy N. Ignacio

Palace adviser Jacinto now open to accredit more common tower providers

January 24, 2019 | 10:16 pm

AFTER OPPOSITION from the Department of Information and Communications Technology (DICT), the Philippine Competition Commission (PCC), stakeholders and the Senate, Presidential Adviser for Economic Affairs and Information Technology Communications Ramon P. Jacinto said he is now open to adding more tower providers in the draft common tower policy.
Mr. Jacinto said after a Senate hearing on the common tower policy on Thursday that he is now open to adjusting the draft policy to welcome up to four registered tower providers to serve the telecommunications industry.
“I am open to more than two. Globe (Telecom, Inc.) and Smart (Communications, Inc.) cannot participate because they caused the problem… Probably up to four (tower companies),” he told reporters after the hearing.
He noted that if incumbents Globe and Smart are allowed to build their own towers, they would not choose to lease from the tower providers.
“They will only use their towers, then we’re back to the same problem,” Mr. Jacinto said.
The DICT and National Telecommunications Commission (NTC) organized in September a public hearing on the draft shared telco infrastructure policy formulated by Mr. Jacinto, which restricted the building of towers to a maximum of two tower companies in the first four years.
Mr. Jacinto said the absence of a cap on the registered tower companies may make the industry unviable.
“If you want five or six, why not a hundred? Why not 200? And then it’s going to get rowdy and nothing will be viable,” he said then.
DICT Acting Secretary Eliseo M. Rio, Jr.’s position was to have no cap, noting at least 50,000 towers are needed to improve the telco services and bring them up to par with Vietnam.
He also said disallowing Globe and Smart to build their own towers would effectively violate their legislative franchises, which authorize them to engage in such activities.
As of last week, the government has signed memoranda of understanding (MoUs) with five common tower providers: ISOC Infrastructures, Inc. from the Philippines; ISON ECP Tower Pte. Ltd. from Singapore; IHS Holding Ltd. (IHS Towers) from Nigeria; edotco Group Sdn Bhd from Malaysia; and China Energy Equipment Co. Ltd. from China. American Tower Corp. is also expected to sign a similar MoU this week.
These MoUs, under which the DICT undertakes to help the tower builders obtain permits, are expected to help shape a revised shared telco infrastructure policy that considers comments from stakeholders.
Smart Communications is the wireless unit of 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

Senate committee studying amendment to foreign investment act

January 24, 2019 | 10:16 pm

THE Senate committee on economic affairs on Thursday opened its inquiry into the bill seeking to amend Republic Act No. 7042 or the Foreign Investments Act of 1991.
Senate Bill No. 2102, filed by committee chair Senator Sherwin T. Gatchalian, lowers the employment threshold for foreigners investing $100,000 in domestic small and medium-sized enterprises from 50 to 15 direct employees.
It also excludes the practice of professions from the coverage of the Foreign Investment Act to allow other laws to govern foreign nationals practicing their profession in the Philippines.
Mr. Gatchalian said the bill would be among the priority measures of the Senate committee on economic affairs for the remainder of the 17th Congress.
“Yes, this will be a priority bill. The House has approved its version. So we will try to finish this before the long break,” Mr. Gatchalian told reporters after the hearing.
Congress has about two weeks left before it adjourns on Feb. 8. It will resume session on May 20.
It was pointed out during the hearing that the employment threshold provided in the bill needed further study given that having 15 employees may be sufficient for a certain industry such as technology, but not enough for other industry, such as manufacturing.
“Let’s say from a technology viewpoint because we’re investors in technology… 15 is not a lot in terms of labor, but that’s not small for a tech company. If we’re wanting tech companies, programmers, even if they start with five or six, that’s already significant for them. So if we want upgrade rather than downgrade jobs, the requirements are different,” said trade committee chairman George Siy of the Federation of Filipino-Chinese Chamber of Commerce and Industry (FFCCCI).
“There are some industries that are capital-intensive wherein the asset size is big but the employees are fewer. It could be labor-intensive, especially micro enterprises, so even if the asset size is small, they have a lot of employees. We will need further study on this,” said Assistant Director Alicia M. Opena of the Department of Trade and Industry’s (DTI) Bureau of Small and Medium Enterprise Development.
Asked if he will make changes to the bill, Mr. Gatchalian said he will need to study the right employment threshold. He is also looking to balance the proposed measure with the interests of micro and small enterprises.
“We need to study carefully what is the appropriate threshold for employment… We’re considering maybe to classify, just possibly. We’re not yet sure whether to do it per industry or we will give the leeway to NEDA (National Economic Development Authority) to recommend or it will be placed in the (implementing rule and regulations.) We’ll study it carefully,” he told reporters.
Another feature of the bill empowers the NEDA, DTI, Board of Investments (BoI), Securities and Exchange Commission (SEC) to review the negative list yearly and submit its report to Congress. The government agencies are also directed to report to Congress investment-related matters requiring necessary legislation.
The bill also requires the government to create a web portal containing the Philippines’ investment policies that will guide investors on potential areas of investments.
American Chamber of Commerce of the Philippines, Inc. (AmCham) senior adviser John D. Forbes hoped the proposed measure would be passed by the Senate before the 17^th Congress ends in mid-2019.
“The Senate and House is about to conclude the third year of Congress. It would be nice in a way if this could be approved even though there’s five or six legislative days… So I would encourage the committee to try to move forward with it in this Congress. As the outside world looks at the Philippines, this would stand as a significant reform,” he said. — Camille A. Aguinaldo

Innovation measure clears bicameral panel

January 24, 2019 | 10:15 pm

THE bicameral conference committee approved on Tuesday the proposed Philippine Innovation Act, which will establish an innovation policy that will help the global competitiveness of micro, small and medium enterprises (MSMEs).
The proposed Philippine Innovation Act seeks to create a National Innovation Council (NIC) tasked to develop the country’s innovation goals, priorities and long-term strategy through the formulation of a National Innovation Agenda and Strategy Document (NIASD).
The NIASD also provides a road map and strategies for improving innovation governance and for inclusive programs and private partnership with businesses, MSMEs, academe as well as research and development institutions.
The NIC will be chaired by the President, with members coming from the National Economic and Development Authority (NEDA), Department of Science and Technology (DoST), Department of Agriculture (DA), Department of Trade and Industry (DTI), among others.
The council is directed to develop strategies for the promotion of new ideas into products, processes and services aimed at improving the welfare of the low-income and marginalized sector.
It also serves as a source of strategic intelligence for national research and innovation policymaking. It also works on measures towards promoting MSME internationalization and participation in the local and global value chain.
The bill enumerates priority areas of the government for innovation as food security and sustainable agriculture, the blue economy, education, health, clean energy, climate change and disaster resilience, resource inefficiencies, global value chains, traditional knowledge, infrastructure needs, and governance, among others.
Senator Sherwin T. Gatchalian, chair of the Senate committee on economic affairs, said the bill places innovation as the center of country’s national development policies that will drive economic development and inclusive growth.
“MSMEs are at a disadvantage because of their size and problems of access to resources and markets. Innovation will enhance the global competitiveness of these MSMEs,” he said in a statement on Thursday.
“I hope that (the Philippine Innovation Act) will be implemented to develop a thriving and growth-fueling national innovation system, cure our highly fragmented innovation governance system, and mobilize and strengthen partnerships between and among all the actors in the innovation system,” he added. — Camille A. Aguinaldo

ILO to help gov’t measure ‘green jobs’

January 24, 2019 | 10:13 pm

THE International Labor Organization (ILO) will team up with the government to come up with statistical guidelines to measure green employment nationwide, for implementation this year.
In an interview with BusinessWorld, ILO Green Jobs National Project Coordinator Gwyneth Anne Palmos said that they are working with local governments units and concerned government agencies to come up with the statistical measurement for green jobs or the Green Jobs Survey.
“We will come up with a system to measure green jobs as our support. The ILO, at the global level, has guidelines for coming up with a statistical system so we’re applying it to the Philippines,” she said.
The Philippine Green Jobs Act of 2016 defines green jobs as “employment that contributes to preserving or restoring the quality of the environment, be it in the agriculture, industry or services sector. Specifically, but not exclusively, this include jobs that help to protect ecosystems and biodiversity, reduce energy, materials and water consumption through high efficiency strategies, decarbonize the economy, and minimize or altogether avoid generation of all forms of waste and pollution. Green jobs are decent jobs that are productive, respect the rights of workers, deliver a fair income, provide security in the workplace and social protection for families, and promote social dialogue.”
The ILO project is in line with the Philippine Green Jobs Act of 2016, which also requires the development of statistics on green jobs. As stated in the Implementing Rules and Regulations (IRR) of the said law, the Department of Labor and Employment (DoLE), in partnership with the Philippine Statistics Authority (PSA), Professional Regulation Commission (PRC), Technical Educations and Skills Development Training Authority (TESDA), Department of Education (DepEd), Commission on Higher Education (ChEd), Department of Science and Technology (DoST), Department of Trade and Industry (DTI), and Department of Finance (DoF), to produce a database on green employment.
The database will be vital for the creation of the “Green Jobs Human Resources Development Plan” which will outline how to create a greener economy among businesses and provide incentives to establishments and enterprises who adjust to greener initiatives.
Regarding ILO’s accomplishments so far, Ms. Palmos said: “The work is still ongoing. We just finished the development survey questionnaires both for establishment and households and then we intend to do piloting early this year.”
After the pilot-testing, the national scale-up of the Green Jobs Survey will be attached to PSA’s labor force survey and establishment survey. — Gillian M. Cortez

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