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Thai’s Thaugsuban indicted on terrorism, treason

BANGKOK — The firebrand leader of anti-government protests that presaged Thailand’s 2014 military coup was indicted on treason and terrorism charges on Wednesday linked to the deadly demonstrations. Suthep Thaugsuban, whose protest movement paralyzed Bangkok for months and led to the toppling of the elected government in May 2014, was formally charged alongside eight other Democrat party politicians. The protests against former premier Yingluck Shinawatra were marred by violence that left 28 dead, generating unrest the army said warranted its power grab — the 12th successful takeover since 1932. Suthep, a former deputy prime minister and nemesis of the billionaire Shinawatra clan, gave barnstorming speeches across Bangkok, leading daily marches in a self-proclaimed “shutdown” of one of Southeast Asia’s largest cities which lasted for weeks while armed guards patrolled protests sites. The military dispersed the rallies after toppling Yingluck and has run the country ever since. Suthep and eight other Democrat politicians — a faction seen as aligned with the army — were charged with “treason, illegal gathering, and incitement,” said the state prosecutor’s deputy spokesman Prayut Petkhun. Suthep and Chumpon Julsai, a former Democrat MP, were also charged with terrorism, he told reporters. The case comes as the kingdom’s rancorous political scene — which has been dormant since the coup — stirs back to life ahead of elections slated for late 2018, but whose timeframe keeps slipping. — AFP

Rethinking the Urban Development and Housing Act of 1992

Last year marked the 25th year of the Urban Development and Housing Act (UDHA). Enacted in 1992, the UDHA brought the hope of realizing a socially just, pro-poor urban development, particularly in addressing the issues concerning urban housing.

The final piece of social legislation of the first Aquino regime contained stipulations that not only addresses the immediate concerns of urban development and housing, but also — and perhaps more importantly — puts emphasis on people’s participation and empowerment. The UDHA as such held the promise of deepening democracy — construed as serving the twin goals of social justice, and popular empowerment — in the context of urban development.

Two decades hence, however, and the country continues to experience fundamental issues that concern urban development, particularly on urban housing. The Kadamay situation of last year is symptomatic of how unequal urban development has been in the Philippines, as well as how the policies in place have been failing in addressing such.

For all its potentials, the UDHA has been beset by ineffectiveness, reflected by the chronic housing backlogs, the continuing human rights violations of evictees and resettled peoples, and creeping inadequacies of socialized housing programs. Why has this been so?

Admittedly limited in scope and range, and by no means a thorough evaluation of the UDHA, this piece argues that the explanation for UDHA’s failure lies in the contradictions of the law itself.

The UDHA is technically not an urban land reform policy, embedded as it is in the “enablement” model of urban development.

The UDHA is primarily a product of the lobbying efforts of the organized urban poor. The opening up of the “democratic space” in the wake of the 1986 EDSA Revolution paved the way for the increased participation of such groups in the (formal) political realm, in the process empowering them. The 1987 Constitution itself, in Article XIII, Sections 9 and 10, enabled the UDHA’s enactment.

The UDHA thus contains stipulations that provide for a socially just, pro-poor urban development.

First, the law contains stipulations governing evictions and resettlement of informal settler families, safeguarding their rights through the provision of consultative mechanisms in all phases of the relocation process.

Second, the UDHA stipulates strategies for low-cost, pro-poor housing. The key element in such strategies is participation of both the private sector, and the urban poor communities themselves.

On one hand, the law gives incentives — in the form of rationalized processes, and tax exemptions, among others — to private real estate developers involved in socialized housing projects. On the other, the Community Mortgage Program (CMP) prompts the urban poor communities to organize. Third and last, the UDHA emphasizes community empowerment, and decentralization.

As mentioned above, the law stipulates the participation of urban poor community organizations in the consultative processes prior to eviction and/or resettlement. The CMP’s focus is on organized urban poor communities, as Section 33 of the law points out. Section 39 of the UDHA also stresses the role of the local government units (LGUs) in implementing the law, in coordination with other national government agencies, and other stakeholders.

For all its potentials, however, the UDHA has been continually critiqued for its ineffectiveness.

The housing backlog is currently estimated at 2.02 million, per the report of the Philippine Development Plan 2017-2022. The said document also estimates the national total of informal settler families to 1,502,336, close to 40% of which are in the Metropolitan Manila area.

More importantly, a 2014 report published jointly by the Institute for Popular Democracy (IPD), and the Commission on Human Rights (CHR) titled “Human Rights in the Rubble: A Review of Forced Eviction and Resettlement Law and Practice in Metro Manila” has found a number of weaknesses in the law’s protections for the rights of the poor informal settler families. Questions have also been raised concerning the CMP’s performance. Several research projects on the CMP published by the Philippine Institute for Development Studies (PIDS) pointed out a number of deficiencies in the CMP’s implementation, particularly concerns about the targeting of the beneficiaries and the transformation of communities into improved ones.

The UDHA is also embedded in the principle of “enablement,” which recasts the role of the state in urban development as an “enabler,” rather than that of a “direct provider.” Gavin Shatkin characterizes the said principle as “premised on the belief that governments should dramatically reduce their direct involvement in the delivery of goods and services,” in the process acting “as a facilitator in ‘enabling’ the private sector and civil society to deliver them.” Cedric Pugh points out, however that “enablement was more about reconfiguring state roles into relevant significance and effectiveness, rather than simply reducing the state’s economic allocations to the social sector.”

Nevertheless, the “enablement” principle arguably is reflected in the limited appropriations that has hounded the Philippine urban development and housing landscape.

The 2017 PDP points out that national housing received 0.05-0.11% of the budget for social services in the years 2014 to 2016, while another report points out that for 2017 alone, the combined budgets of the primary national housing agencies (the National Housing Authority [NHA], and the Social Housing Finance Corporation [SHFC]) are a measly 0.39% of the P3.35-trillion budget, targeting 1.7 million households for direct housing assistance.

The “enablement” principle also emphasizes decentralization.

Such contributes to the ineffectiveness of the UDHA in realizing a socially just and pro-poor urban development.

The IPD and CHR report discussed earlier has also found that the decentralized nature of eviction and resettlement policy and processes contribute to services that fall short of the international standards for human rights. As such, the report recommends further integration of the agencies concerned.

However, something more than a review of the law, or the creation of a Department of Urban Development and Housing, is called for.

The fundamental challenges are that of examining the ways by which the state can be strengthened while being embedded in an institutional matrix that reconfigures its role and that of searching the ways by which the contradictory logics of profit making and public service delivery in the context of socialized housing provision can be alleviated.

(For purposes of brevity, citations have been removed but are available upon request. — Ed)

 

Gino Antonio P. Trinidad is currently a Doctor of Public Administration student of the UP National College of Public Administration and Governance (UP NCPAG). He is a member of the faculty of Ateneo’s Political Science Department. He obtained both his MA Global Politics and AB Political Science degrees from Ateneo de Manila University.

Halal accreditation to expand in 2018 to attract more businesses

THE Department of Trade and Industry (DTI) said it wants to increase the Philippines’ 5% share of the growing global market for halal products via the expansion of accreditation bodies that can certify that food, drink and fashion products comply with Islamic rules.

The department hopes to set up 10 halal accreditation bodies this year,to make it easier to attract more businesses to participate in the halal trade.

Assistant Secretary for Trade and Investments Promotion Group Abdulgani M. Macatoman said during the World Halal Assembly last week that the halal market is expected to be worth $10 trillion by 2030, from $3.2 trillion currently.

“The Muslim population worldwide has been steadily growing. In 2016 the population was at 2.14 billion, growing to 2.18 billion in 2017,” he said, adding that in the Asia Pacific, the numbers are 1.3 billion by 2030, according to projections by Pew Research.

He said the most marketable Philippine products are dried fruits in markets like the Middle East and parts of Southeast Asia.

The DTI is seeking to make the Zamboanga region a hub for halal products. The region is deemed suitable for such a push because of the potential of its economic zones and freeports, plus the availability of expertise in the Autonomous Region in Muslim Mindanao, with which the Zamboanga region has some territorial overlap.

“The preparation of halal food and apparel requires a great understanding of and obedience to Muslim culture, and we Filipinos have a great grasp of this culture and unique practices,” he added.

The products identified as having potential for developing in the Zamboanga region are rubber, cacao, mangoes and coconut.

The government has development plans for cacao and rubber, while the fruits and nuts industries will be getting a road map to expand production and export activity. — Anna Gabriela A. Mogato

Aric del Rosario-mentored Parañaque Patriots debut versus Caloocan Supremos in MPBL opening

ARIC DEL ROSARIO has no plans of slowing down.

In fact, the 70-year-old coach is making a coaching comeback as head mentor of the Yakimix Parañaque Patriots, which will make its debut in the Maharlika Pilipinas Basketball League (MPBL) today against the Caloocan Supremos.

Game time is 9 p.m. at the Smart Araneta Coliseum right after the opening ceremonies highlighted by parade of teams’ colors and their muses and live performance from talents of ABS-CBN, the official coveror of the fledgling league put up by Senator Manny Pacquiao.

Mr. Del Rosario was architect of University of Santo Tomas’ four-peat in the UAAP from 1993 to 1996, but he was also part of so many champion teams handling in different capacities.

In the PBA, he was a member of Tim Cone’s coaching staff that won the grand slam in 1996.

Two years later, Mr. Del Rosario moved to the Metropolitan Basketball Association where he guided the Pampanga Dragons to the championship.

He coached in the UAAP for a few more years then moved to Perpetual Help in the NCAA before taking time off from the one he loves doing the most.

But the itch in coaching is still there and Mr. Del Rosario agreed to be at the helm of the Patriots.

Among the key players seeing action for the Patriots are PBA draftees Juneric Baloria and Jett Vidal, ex-D League players Marlon Gomez and Mac Montilla, and Aric’s own son, Edsel del Rosario.

But the Caloocan Supremos are no pushovers, parading a lineup bannered by ex-PBA players Jopher Custodio and Allan Mangahas, former Sta. Lucia center Philip Butel and ex-Ginebra player Marlon Basco.

Format of this home and away tournament is single round robin with eight teams advancing to the quarterfinal round. — Rey Joble

Wesley’s miracle win

80th Tata Steel Masters
Wijk aan Zee, Netherlands
Jan. 12-28, 2018

Current Standings (9 out of 13 rounds)

1. Anish Giri NED 2752, 6.5/9

2-3. Magnus Carlsen NOR 2834, Shakhriyar Mamedyarov AZE 2804, 6.0/9

4-5. Wesley So USA 2792, Vladimir Kramnik RUS 2787, 5.5/9

6-7. Viswanathan Anand IND 2767, Sergey Karjakin RUS 2753, 5.0/9

8. Peter Svidler RUS 2768, 4.5/9

9-10. Gawain Jones ENG 2640, Maxim Matlakov RUS 2718, 4.0/9

11-12. Wei Yi CHN 2743, Fabiano Caruana USA 2811, 3.5/9

13. Baskaran Adhiban IND 2655, 2.5/9

14. Hou Yifan CHN 2680, 1.5/9

Ave. Rating 2750 Category 20

Time Control: 100 minutes for the first 40 moves followed by 50 minutes for the next 20 moves then 15 minutes play-to-finish with 30 seconds added to your clock after every move starting move 1.

Holland’s Anish Giri went into the solo lead after nine rounds in Wijk aan Zee by defeating Russia’s Maxim Matlakov from the Black side of some sort of Delayed Catalan. So far he looks in good shape as he remains undefeated and aside from beating the lone woman participant Hou Yifan has also scored the full point against heavyweights Mamedyarov (the early leader) and Vladimir Kramnik.

Wesley So could not keep pace and agreed to a draw with Peter Svidler. He is also undefeated and went through a rather crucial patch from rounds 4-6. In the 4th round Wesley was lost against Caruana but fought back and drew. In round 5 he beat Adhiban and in round 6 there was this miracle vs Wei Yi. Let me tell you about that.

I retired from chess in 1976 when I graduated from High School to become a working student in UST. There was no more time for chess, work was from 8 a.m. to 5 p.m. after which I had to rush to the College of Commerce for classes from 5-9 p.m. After I passed the CPA board examinations my schedule became even more hectic as it was already time to earn a living.

Then in 1992 the Manila Olympiad happened. I couldn’t resist and left the office a bit earlier everyday to hop over to the PICC to watch the games. There was a bookstand there run by IM Malcolm Pein (he is one of the biggest chess organizers in the world now — the annual London Chess Classic being just one of his many projects) and he introduced me to Chessbase software and other books and publications. Once again I got hooked and devoured whatever literature I could.

There was this one player I couldn’t get enough of — GM Alexei Shirov was running roughshod over the chess establishment with games such as this.

Shirov, Alexei (2655) — Thorhallsson, Throstur (2425) [D45]
Reykjavik (5), 1992

1.d4 d5 2.c4 c6 3.Nc3 Nf6 4.Nf3 e6 5.e3 Nbd7 6.Qc2 Bd6 7.g4!?

I hadn’t been following theory for many years already — the maneuver h2–h3 followed by g2–g4 I was familiar with, but playing g2–g4 right away? Wow.

7…0–0 8.g5 Nh5 9.Bd2 f5 10.gxf6 Nhxf6 11.Ng5 Qe8 12.0–0–0 h6 13.h4! Bb4

[13…hxg5 14.hxg5 Ne4 15.Nxe4 dxe4 16.Qxe4 Rf5 17.c5 followed by Bc4]

14.Bd3 Bxc3! 15.Bxc3 hxg5 16.hxg5 Ne4 17.Bxe4 dxe4 18.Qxe4 Rf5 19.Qh4 Qg6 20.Qh8+! Kf7 21.f4

The idea is to play Qd8 followed by Rh8.

21…Nf8 22.Qh4 Ke8 23.e4 Rf7 24.Rhe1! Kd8 25.d5! cxd5 26.cxd5 Bd7 27.f5! exf5 28.e5 f4 29.e6 Ba4 30.Rd2 Rf5 31.Qf2! f3 32.Re4 Rxg5 33.Rxa4 Rg1+ 34.Rd1 Rg2 35.Qh4+ Ke8 36.Re4 Rc8 37.d6 Rd8 38.Qe7# 1–0

An awe-inspiring performance!

In 1997 the first FIDE KO World Chess Championship was held in Groningen. I managed to get a copy of the tournament book and played through every single one of the games. This game I thought was one of the best of the event.

Krasenkow, Michal (2645) — Garcia, Gildardo (2480) [A17]
FIDE-Wch k.o. Groningen (2.1), 11.12.1997

1.Nf3 Nf6 2.c4 e6 3.Nc3 Bb4 4.g4!?

Krasenkow’s biggest contribution to opening theory.

4…d5 5.g5 Ne4 6.Qa4+ Nc6 7.Nxe4 dxe4 8.Ne5 e3!

It is not immediately evident, but the idea of this move is to open up the long diagonal for Black’s light-squared bishop.

9.fxe3 Qxg5 10.Nf3

[10.Nxc6? Bd7 11.Qxb4 Bxc6 unexpectedly White’s rook is trapped in the corner]

10…Qe7 11.a3 Bd6 12.d4 Bd7 13.Qc2

[13.c5 Ne5 14.Qc2 Nxf3+ 15.exf3 Qh4+ 16.Qf2 Qxf2+ 17.Kxf2 Be7 equal]

13…Qf6 14.b4 e5 15.d5! Bf5 16.Qa4!

[16.e4? Nd4 17.Nxd4 Qh4+ 18.Kd1 Bxe4 it is Black who is winning]

16…Be4 17.dxc6 b5 18.cxb5 Bxf3 19.exf3 e4 20.Ra2 exf3 21.Rf2 Rd8 22.Qc2 Be5 23.Bb2 0–0 24.Bxe5 Qxe5 25.Rxf3 Rd6 26.Bg2 Qxb5 27.Rf5 Qa6 28.Ra5 Qb6 29.Qc5 Qb8 30.0–0 1–0

A few years ago in “Secrets of Modern Chess Strategy” IM John Watson wrote that the single biggest change in opening and middle game strategy in the last two to three decades has been in the area of flank pawn advances. The two games above had a lot to do with that.

Which brings us to Wei Yi vs Wesley So from the 6th round of the ongoing Tata Steel Masters tournament in Wijk aan Zee.

Wei, Yi (2743) — So, Wesley (2792) [A06]
80th Tata Steel GpA Wijk aan Zee NED (6.4), 19.01.2018

1.Nf3 d5 2.e3 Nf6 3.c4 e6 4.Nc3 dxc4 5.Bxc4 a6 6.b3 c5 7.Bb2 Nc6 8.Qc2 Be7 9.a3 b6 10.g4!

This move surprised Wesley. In a post-game interview Wesley said: “I forgot about this stuff. I thought that it is not dangerous since I did not castle. Actually, it is surprisingly strong as he gets a bind after g4–g5 followed by Nc3–e4.”

10…h6

Not 10…Nxg4? 11.Qe4 and one of the knights fall.

11.Rg1 b5 12.Be2 Bb7 13.g5 hxg5 14.Nxg5 Rh6

Guarding against Nxe6 and a queen check on g6.

15.Nce4 Nxe4 16.Nxe4 g6 17.Nxc5 Bxc5 18.Qxc5 Rxh2 19.a4!

After this Black’s position starts to collapse.

19…Qh4

There is no other way to generate counter chances.

20.Rf1 Rc8 21.Qb6 Nd8 22.axb5 Bg2 23.Ra4

Not 23.Rg1? Rh1 it is Black who wins.

23…Qh3

This was the position when I tuned in to the game as the chessbase Web site. I thought that after Ba3, bxa6 and Bb5+ Black’s king is caught in the crossfire of the two bishops. I got completely disheartened, and then the miracle came!

24.Ba3?

This is why I am not a GM. The text which seemed so strong to me is an inaccuracy. More to the point is 24.bxa6! Bxf1 25.Bxf1 Rh1 26.Qb5+ (covering the f1–bishop) 26…Nc6 27.a7 the rest is easy: 27…Rxf1+ 28.Qxf1 Qxf1+ 29.Kxf1 Ra8 30.Bd4 Kd7 31.Bc5 Kc7 32.d4 White’s two extra passed pawns on the queenside are too strong.

24…Rh1 25.bxa6 <D>

Position after 25.bxa6

Wei Yi is clearly winning but in bad time trouble. Wesley has to find some way to complicate matters.

25…Qh8!?

And he does. Black is still losing but he sufficiently confuses Wei Yi into making a mistake.

26.Rd4?

White should have blocked the long diagonal with 26.d4! followed by 26…Bxf1 27.Qb5+ Nc6 28.Bxf1 and Black’s position is resignable.

26…Bxf1 27.Qb5+ Nc6 28.Bxf1 Rxf1+! 29.Kxf1

Wei Yi must have thought he was still winning, or otherwise he would have played 29.Qxf1 Nxd4 30.exd4 Qxd4 31.Qb5+ and it is still a game.

29…Qh1+ 30.Ke2 Qh5+! 31.Qxh5 Nxd4+

CHECK.

32.exd4 gxh5

And now, much to Wei Yi’s dismay, because of Black’s passed h-pawn it is now the second player who is winning.

33.b4 Rb8 34.Kf3 Kd7 35.Kg3 Kc6 36.b5+ Rxb5 37.Bc5 Rb2 38.a7 Kb7 39.d5 exd5 40.Be3 Rb4 41.d4 Rb1 0–1

A marvelous turnaround. Let us hope that Wesley’s luck holds up till the end of the tournament.

 

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

GIZ, AXA developing microinsurance product for disasters

GERMANY’S international aid agency has partnered with an insurance company to develop a disaster microinsurance product which will be offered to small businesses.

The micro disaster risk insurance (MicroDRI) product is expected to cover 10,000 micro, small and medium enterprises (MSMEs) by mid-2018, the Department of Trade and Industry (DTI) said.

Deutsche Gesellschaft fur Internationale Zusammenarbeit GmbH (GIZ), the DTI, and AXA unit Charter Ping An came together in a public-private partnership to offer the insurance product, which will be distributed by Cebuana Lhuillier Insurance Solutions.

Undersecretary Zenaida C. Maglaya said that the idea of providing MicroDRI came about after typhoon Yolanda in 2013 and was refined over the years to address affordability concerns.

“What we do now is increasing level of awareness and participation of MSMEs in business continuity plans. That’s the first thing [we considered],” she added.

“It was not difficult for us to convince them to prepare themselves. We had to find ways to really look into who we can have partnerships with to see what we can do to protect the MSMEs, especially the micro-enterprises.”

Ms. Maglaya said that only 30% of enterprises affected by the typhoon renewed their licenses.

In a study conducted by GIZ, 25% of MSMEs fail to reopen after being hit by a major calamity. Also, these businesses are estimated to lose between P250,000 to P10 million during disasters, making it harder for them to bounce back.

GIZ Philippines program director Antonis Malagardis said that MSMEs typically lose one-third of their financial capacity, which makes it hard to repay loans.

“With the MicroDRI product, our goal is to come up with a financially sustainable product that will provide the protection that these MSMEs need to ensure operation of their businesses,” he added.

Mr. Malagardis said insurance should be considered an investment instead of a cost.

The DTI will conduct financial literacy training to help MSMEs build resiliency against future calamities, through its Negosyo Centers.

The MicroDRI product will be developed by AXA using a grant from GIZ.

Cebuana Lhuillier vice-president and group head Jonathan D. Batangan said the company can tap its branch network and add more outlets which can serve as distribution platforms.

“We can reach the maximum number of MSMEs. In the next few years, we plan to add more partners including sari-sari stores [as part of the group’s] remittance business,” he added. — Anna Gabriela A. Mogato

Renewable energy market would benefit Mindanao, says MinDA

THE PROPOSED trading platform for green energy would be favorable to Mindanao in the long term with several projects lined up tapping renewable power sources, according to an official of the Mindanao Development Authority (MinDA). “The renewable energy market will become a market of big renewable sources if all the projects are realized,” Assistant Secretary Romeo M. Montenegro, MinDA deputy executive director, said in an interview last week. Mr. Montenegro, also the technical head of the Mindanao Power Monitoring Committee (MPMC), said they are projecting that by 2030, Mindanao will have about 40% of its power sourced from renewable energy plants. The MPMC is monitoring the implementation of about 280 proposed projects with a combined output of about 3,400 megawatts. At present, about 70% of electricity supply in Mindanao comes from fossil-fuel plants with the operation of several new coal-fired facilities. In a consultation last week in Davao City, Energy Undersecretary Felix William B. Fuentebella said they are looking at launching the renewable energy market in 2019 with the bigger wholesale electricity spot market expected to be in place nationwide this year. Under the Electric Power Industry Reform Act, supply from renewable energy sources must be the first to be dispatched in the market. — Carmelito Q. Francisco

Wolfgang Steakhouse opens 2nd PHL branch

STEAK LOVERS are in for a treat as the world-famous Wolfgang’s Steakhouse by Wolfgang Zwiener opens its second branch in the country at the ground floor of the newly renovated The Podium in the Ortigas Center, San Juan.

“When you open your second restaurant in a city, that means you’re doing well… We want to share the experience of [eating] great steak here in Manila and maybe in the future throughout the Philippines. This (the Philippines) is an extremely important market for us. It was the first one in Southeast Asia,” Wolfgang Steakhouse president and managing partner Peter Zwiener said at a media lunch on Jan. 16.

The Ortigas branch — which targets the working population of the city’s business district — seats 80 guests and offers dining on the main and mezzanine floors.

“Once we opened our restaurant in 2004 in New York, it’s very cosmopolitan. So, we get a lot of people eating at the restaurant. Many Filipinos came to the restaurant. So [you] could see that they appreciate great culinary cuisine and that they’re willing to try,” Mr. Zweiner said, adding that he met his local business partners Raymond Magdaluyo and actor Marvin Agustin who suggested they bring the restaurant to the Philippines.

The restaurant’s signature USDA Prime black Angus beef is dry-aged in an aging room with a controlled temperature for 28 days on average. Mr. Zwiener cited that a scientific study showed that 96% of the beef’s tenderness is achieved when dried for 28 days.

Wolfgang Steakhouse personally handpicked the dish lineup which includes USDA Prime Black Angus New York sirloin, rib eye, filet mignon, and its signature Porterhouse steak.

The restaurant’s Ortigas branch features a lunch menu which includes medallions of filet mignon aux pouvre, medallions of filet mignon with mushroom sauce, and the Taste of New York — a four-course meal with Caesar salad, USDA Prime dry-aged sirloin (400 gm), mashed potatoes, creamed spinach, and Wolfgang’s New York cheesecake.

A third branch is set to open at One Bonifacio High Street Stock Exchange Building in June.

For inquiries and reservations, call 505 6272, e-mail reservation.podium@wolfgangssteakhouse.ph, or through www.facebook.com/WolfgangsSteakhousePH/. — Michelle Anne P. Soliman

Fintech company launches platform for MSMEs

By Krista A. M. Montealegre,
National Correspondent

FINANCIAL TECHNOLOGY firm Posible.net formally launched its platform that aims to empower micro, small and medium enterprises (MSMEs) in an effort to establish the biggest community-based digital transactions network in the country.

Founded two years ago, Posible.net offers more than 300 digital services to over a million Filipino consumers through its network of over 1,600 retailers, generating close to P2 billion worth of transactions.

“Our end goal is to be present in all barangays — all 42,000 of them. For 2018, we just want to accelerate our deployment,” Posible.net President and CEO John Joseph Gabriel C. Puzon said in a briefing in Makati City on Tuesday.

Posible.net’s services include utility bills payment, select government fees, money services, micro-insurance, mobile loading, online gaming credits and ticketing. It is working on adding credit card and airline payments to its services.

Anchored on innovation and technology, the company came up with an affordable and user-friendly front-end system designed for community-based agent partners such as sari-sari stores, laundromats, bakeries and barber shops, Mr. Puzon said.

He added that the platform allows consumers to conveniently participate in the digital financial ecosystem, while service providers can establish touchpoints in the community at a fraction of the cost of establishing a traditional outlet.

Mr. Puzon believes Posible.net plays an important role in breaking barriers to financial inclusion and bring digital transactions closer to communities.

About 34% of towns and cities in the Philippines still do not have access to banks, but this goes down to 10% if non-banking institutions such as pawnshops will be factored in, Jenny A. Romero, bank officer at the BSP’s Inclusive Finance Advocacy Office, said in the same briefing.

“The BSP has been looking at digital means to fast-track and expand our financial reach,” Ms. Romero said.

“It is a good business model for someone who wants to start a business and for those with an existing one, it is a good way of enhancing what a small entrepreneur is earning,” Trade Undersecretary Zenaida C. Maglaya said.

Consumers can avail of the Posible.net business starter kit inclusive of an agnostic point-of-sale device for a one-time fee of P35,000, with an additional P15,000 as starting operating fund to process transactions.

Bank chief executives worried markets are complacent as in 2006

LONDON — Global finance executives warned of parallels between today’s soaring stock markets and the froth of the pre-crisis years as they said investors could be wrong-footed by central banks raising interest rates.

As the World Economic Forum’s annual meeting got underway in Davos, Switzerland, the leaders of Barclays Plc, Citigroup Inc. and the Carlyle Group all fretted that the strongest global economy since 2011 was leaving financial markets complacent. Equities worldwide are already up more than $3 trillion this year.

“There is a numbness out there, there is an ambivalence out there that’s concerning,” Citigroup Chief Executive Officer (CEO) Michael Corbat said on a Davos panel hosted by Bloomberg’s Tom Keene.

“When the next turn comes — and it will come — it’s likely to be more violent than it would otherwise be if we let some pressure off along the way.”

Jes Staley, the CEO of Barclays, said the upbeat environment reminded him of the eve of the last crisis a decade ago and that the combination of stocks at record highs and volatility near all-time lows wasn’t “sustainable” in the long term.

He too said trouble could occur if central banks such as the US Federal Reserve push up borrowing costs faster than investors anticipate.

Messrs. Corbat and Staley said financial-services companies had learned from the last crisis and were now more resilient and less complex. Still, they warned bankers to stay alert.

“I do feel it’s a little bit like 2006, when we were all talking whether we’ve solved the riddle of economic crises,” said Mr. Staley.

“We’ve got a monetary policy that’s still in the remnants of the depression era. We’ve got very little capacity in the capital markets to deal with a real move in interest rates.”

With interest rates around the globe close to record lows, companies have binged on cheap borrowing.

US corporations have a record amount of debt and leverage, with many as vulnerable to default as before the crisis, according to Standard & Poor’s.

The explosion in leveraged loans — which banks structure for already-indebted corporations and then sell on to investors — underscores this trend.

Citigroup and Barclays are among the banks to have profited from the boom. The two firms arranged a combined $168 billion of US leveraged loans in 2017 and €12.5 billion  ($15.4 billion) across the EMEA (Europe, Middle East and Africa) region, data compiled by Bloomberg show.

Anne Richards, chief executive of M&G Investments, is also concerned about the potential for higher interest rates.

“If interest rates go up meaningfully over the next 12 months, there will be a bunch of people who have borrowed money who will not be able to pay it back,” she said.

“Those people are out there, and the markets are not, in aggregate, pricing that.”

Harvard University professor Kenneth Rogoff, who co-wrote the definitive history of the financial crisis, said there was already the potential for a rebound in inflation-adjusted interest rates given US inflation will likely grow by two percent or more this year.

“If interest rates go up even modestly, halfway to their normal level, you will see a collapse in the stock market,” he said.

“I don’t know how everything from art and bitcoin to stock prices will react as interest rates go up.”

Higher rates will also affect the $5 trillion burden of dollar-denominated debt held by emerging-market companies, the panelists said.

Among other risks, they cited mounting government debt in China and elsewhere, rising protectionism and the potential for geopolitical shocks.

“The biggest concern I have is that most people think there’s no problem of a likely recession this year or early next year,” said Carlyle’s David Rubenstein, who co-founded the private-equity firm more than 30 years ago.

“Generally, when people are happy and confident, something wrong happens.” — Bloomberg

Fish sauce makes Vietnam billionaire’s fortune

FOR VIETNAMESE consumer tycoon Nguyen Dang Quang, placing his fish sauce and other “must-have” condiments in the kitchen shelves of just about every home in the country has helped make him a billionaire.

Shares of Masan Group, which produces the sauce made from fermented fish that’s widely used in Vietnamese cuisine, have more than doubled in the past six months, compared with the 37% gain in Vietnam’s benchmark VN Index. That lifted the net worth of Quang, the company’s chairman and founder, to $1.2 billion, according to the Bloomberg Billionaires Index.

“Masan serves consumers with ‘must-have’ ones like fish sauce, instant noodles, to ‘nice-to-have’ items like chili sauce, rice soup or sausage,” said David Anjoubault, general manager at Kantar Worldpanel Vietnam, a research firm that estimates about 95 percent of households in the country uses at least one Masan consumer product. “Local food manufacturers like Masan have a good and deep understanding of shoppers’ needs and behaviors in the country where localization is a vital success factor.”

Quang controls the Ho Chi Minh City-based company through Masan Corp., a closely held entity, as well as its wholly owned subsidiary Sunflower Construction Co., according to company filings with the Ministry of Planning and Investment. Quang and his wife have a 49% stake in the holding company, the filings show.

Quang’s cofounder, Ho Hung Anh, who’s Masan Group’s vice-chairman, owned 47.6% of the holding company as of September 2015, according to the latest available filings. Anh “contributed to the early stages of Masan Group’s development,” the company Web site said. His net worth isn’t calculated because his current stake can’t be verified.

Masan Group, which makes other food products including instant noodles and animal feed, declined to comment on the two founders’ net worth.

Masan Group’s shares surged as it recovered from a setback last year following a plunge in pork prices, which it referred to as “the most severe pig price crisis” in history. Pork prices fell after China stopped imports from Vietnam in 2016. The drop in demand for pork drove the group’s consolidated revenue 9% lower to 27.5 trillion dong in the first nine months of 2017, according to the company’s presentation.

“Pork prices have rebounded as China resumed the imports of Vietnamese pigs, raising expectations for better performance from Masan Group this year,” said Vu Xuan Tho, a senior analyst at Korea Investment & Securities in Seoul.

Quang started his business in the 1990s after years of studying in Russia, where he has an MBA from the Plekhanov Russian Economic University. He also received a doctorate in technical sciences from the National Academy of Sciences of Belarus, according to Masan Group’s Web site.

The billionaire saw an opportunity as Russia was going through a period of economic transition at the time, and started selling instant noodles to Vietnamese living in the country. He eventually built a factory to produce 30 million packages a month, and expanded to soy, fish and chili sauces, according to Masan’s Web site. Following the success in Russia, he returned to Vietnam in 2001 and shifted the business focus back on his home market.

Kantar Worldpanel, which tracks shoppers’ behavior, ranked Masan Consumer among Vietnam’s top three food brand owners last year, along with Unilever NV and Vietnam Dairy Products or Vinamilk.

Masan Group is best-known for its fish sauce under brands including Chin-Su and Nam Ngu. Other than meat and packaged food, Masan Group also owns more than a third of Vietnam Technological & Commercial Joint-Stock Bank, commonly known as Techcombank, through an equity stake and convertible bonds, according to its presentation.

The possible listing of the bank has also contributed to the jump in Masan Group’s shares, Tho from Korea Investment & Securities said.

Masan Group drew a $250-million investment from KKR & Co. last year, with $150 million going into its meat-producing business, Masan Nutri-Science. That’s the third round of investments in Masan Group from the New York buyout firm, which began in 2011 with a $159-million investment in what was then Vietnam’s biggest private-equity deal.

Quang adds to the two Vietnamese billionaires on international wealth rankings — real estate developer Vingroup’s Pham Nhat Vuong and Vietjet Aviation Joint Stock Co.’s Nguyen Thi Phuong Thao, who’s Southeast Asia’s first self-made woman billionaire. — Bloomberg

Kentucky school shooting leaves two students dead

WASHINGTON — A teenage boy opened fire with a handgun at a Kentucky high school early Tuesday, killing two fellow students and wounding more than a dozen people in the latest mass shooting to hit the United States. The unnamed 15-year-old student, now in custody, is alleged to have carried out the attack at Marshall County High School in Benton, a small town in western Kentucky. Two students of the same age died of gunshot wounds, while 13 other people were shot and five suffered other injuries during the shooting, Kentucky State Police said, adding that those hurt ranged in age from 14 to 18 years old. Students ran from the scene after hearing shots, local media reported, and the school was placed on lockdown as the incident unfolded. They were later bused to a neighboring school where parents could retrieve them, the Marshall County Tribune-Courier newspaper said. Fourteen of those hurt were male and six were female. Four of them are still in hospital — three in “critical but stable” condition and one in “stable” condition, according to police. The suspected shooter was apprehended in a “non-violent” manner, and will be charged with both two counts of murder and multiple counts of attempted murder, Kentucky Governor Matt Bevin said. One of the students died at the scene and the other after being taken to a hospital. The shooter struck just as the school day was starting. — AFP

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