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Your Weekend Guide (November 9, 2018)

Waitress

ATLANTIS Theatrical Entertainment Group presents Waitress, a musical about a waitress at a diner who decides to join a pie baking contest which she hopes would give her a chance to live a new life, from Nov. 9 to Dec. 2, 8 p.m., at the Carlos P. Romulo Auditorium at the RCBC Plaza in Makati City. Directed by Bobby Garcia, it stars Joanna Ampil, Bituin Escalante, and Maronne Cruz. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

Guns N’ Roses concert

MMI Live and Prestige Worldwide presents the Guns N’ Roses in the Not in this Lifetime world tour. Rock out to songs such as “Welcome to the Jungle,” “Paradise City,” and “Sweet Child O’ Mine.” The one night only concert is on Nov. 11, 8 p.m., at the Philippine Arena in Ciudad de Victoria, Santa Maria, Bulacan. For tickets, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

All Out of Love The Musical

RESORTS World Manila presents All Out of Love The Musical until Nov. 10 at the Newport Performing Arts Theater. Featuring the music of Air Supply, the story — written by Canadian playwright Jim Millan — is set over one night. After music mogul Tommy King convinces rocker Jimmy Crimson to pursue a world tour to promote a new album but to also dump his girlfriend, Jimmy changes his mind and pursues his love. It stars Mig Ayesa and Rachel Alejandro. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

Jessica Sanchez in concert

SOLAIRE Resort and Casino presents American Idol alumna Jessica Sanchez in a major concert with special guest, Martin Nievera on Nov. 10, 8 p.m., at The Theatre at Solaire. For tickets, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

Benefit concert

THE Klassikal Music Foundation (KMF), which provides scholarship for young aspiring classical singers, presents KMF Empowered, a benefit concert for the foundation’s scholarship fund on Nov. 11 at the Star Theater in the CCP Complex in Pasay City. The benefit concert will showcase KMF scholars who have been under the tutelage of some of the country’s renowned music talents. They will perform favorite opera selections, classic musical theater hits, as well as contemporary award-winning Broadway selections and popular music. The concert will feature a special appearance by Martin Nievera, and performances by Ballet Manila, and the Chairman and Founder of Klassikal Music Foundation, Dr. George T. Yang. To purchase tickets — which range in price from P1,500 to P2,500 — text or call 0920-494-3054.

Awit at Laro

AYALA Malls Circuit kicks off the holiday season with a special concert headlined by Gary Valenciano. Awit at Laro, which aims to raise funds for UNICEF, the Tukod Foundation, and the Shining Light Foundation, will be on Nov. 11, 6 p.m., at the Ayala Malls Circuit Activity Center. The Christmas concert, directed by Paolo Valenciano, includes both new and reimagined traditional songs performed by Kianna Valenciano, Gab Valenciano, Joey Ayala, RJ dela Fuente, Steps Dance Studio, and Gary V.

Comedy nights

COMEDY MANILA presents Funny Fridays: Endless Laughter on Nov. 9, 8:30 p.m., at the Teatrino at Promenade, Greenhills Shopping Center, San Juan. For tickets (P500) visit TicketWorld (www.ticketworld.com.ph, 891-9999).

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).

A much-needed update


By Anthony L. Cuaycong
CONSIDERING that Metal Max Xeno is just the second in the series to be released in the West after Metal Saga on the PlayStation 2, it’s hard to believe that 27 years have passed since the original Metal Max made its way to the Nintendo Family Computer. And how the title evolved from concept to fruition is a story in and of itself. Following the dismal sales of Metal Max 4: Gekko No Diva (3DS, 2013) and of the mixed reception to Metal Max: Fireworks (smartphone, 2015), publisher Kadokawa Games saw fit to swing the pendulum back to consoles and green-lit the latest iteration for the PS4.
Understandably, Metal Max Xeno represents a departure in its treatment of franchise tropes. Even as it acknowledged its roots in tackling familiar themes, the manner in which it does so distinguishes it from its older siblings. In this regard, Kadokawa Games’ intent is evident; it aims to breathe new life in a title that seemed to have reached a plateau. It’s still a turn-based role-playing game focused on vehicle combat in a post-apocalyptic milieu, but its story makes sure to highlight its open-world setting.
Metal Max Xeno begins with mankind at “True Century’s End,” on the brink of extinction and under threat from Sons of NOA, monsters created by the otherwise-defeated supercomputer NOA intent on completing its goal to eradicate any and all vestiges of humanity. After surviving a large-scale attack, a small band of holdouts in the Iron Base, the last remaining settlement in Dystokio, aim to fight back. At the forefront of the rebellion is Talis, a young wanderer with an artificial left arm bent on seeking revenge for the death of his mother, adopted father, and friends.
In Metal Max Xeno, players take control of Talis and do battle against the SoNs through the use of eminently customizable tanks. There’s a learning curve to mastering the combat mechanics, which involve the development of character skills and remodeling of equipment en route to triumph. As with other titles in the series, movement is turn-based, with the open-world map offering opportunities for buffs and levelups. Dungeons abound, and while entry is not required, the degree to which grinding helps in defeating bosses makes their exploration integral to progress.
Parenthetically, tanks can be enhanced through the acquisition of weapons found in areas of the map and the proper assembly at the Iron Base of parts of defeated enemies. Meanwhile, encounters on foot can result in the discovery of useful items and information providing technological upgrades to the Iron Base and, by extension, raising the rebels’ level of preparedness for combat. That said, battles are relatively short, thus placing a premium on intrinsic strength as opposed to strategy building.
Needless to say, SoNs are extremely difficult to overcome even with Talis driving the powerful Red Rev. Thankfully, Metal Max Xeno employs a forgiving system in which in-game death simply means starting over at the Iron Base. Because there is no cost to failure, however, the risk-reward interplay becomes imbalanced, and advancement is a matter of when, not if. It certainly doesn’t help that the locations of the dungeons and items, not to mention the frequency with which monsters spawn, are randomized. Thusly, repetition winds up being as much an end as a means.
Compared to previous series releases, Metal Max Xeno boasts of audio-visual flair. Its graphics are polished, well-rendered, and appropriate for its hope-amid-the-end-of-days narrative. Meanwhile, its anime-style music, spot-on ambient sounds, and Japanese voice tracks serve as perfect complements. Concomitantly, players won’t find it hard to immerse themselves in their exploration of Dystokio as they look for survivors and aim to be rid of any and all obstacles standing in their way.
In the final analysis, Metal Max Xeno is a worthy addition to the franchise, representing a much-needed update of both aesthetics and gameplay and signifying better things to come.
POSTSCRIPT:
The Crew 2 (PS4): Visually and aurally, it’s a marked improvement over its predecessor. Representations of known landmarks are believable if not spot on, aided in no small measure by the outstanding level of detail that remarkably requires little to no discernible load times. The soundtrack is catchy, and auditory effects are well timed and properly modulated. The script and voice acting could have been better; occasionally, the dialogue seems stilted and inappropriately produced. Still, there’s nothing in the cutscenes that qualifies as a dealbreaker.
Gameplay wise, The Crew 2 tries to pull out all the stops, but doesn’t always meet lofty objectives. Players aim to increase the main character’s “following,” the de facto mode of currency that defines progression, through the completion of a gamut of tests, skills challenges, and triggering events that literally need to be photographed for posterity. Meanwhile, the driving dynamics take a little getting used to, and not simply because of the number of choices on tap. Oddly enough, collision detection continues to be iffy, and rubber-band AI opponents abound.
Nonetheless, The Crew 2 promises to amp up the fun factor for hours on end. Perhaps it can be deemed a jack of all trades and master of none, but it does have plenty for everybody. And, best of all, its open world figures to keep on growing with content updates that Ubisoft aims to periodically roll out for free. Featuring an enhanced online experience and continuing support, it counts itself among the best massive multiplayer hybrid arcade-sim racing franchises featured on the PS4. (7.5/10)
Super Robot Wars X: its core design is solid, but it does have some flaws. The story is forgettable, and is little more than an excuse to pair all the robots up under one banner. Its presentation is amazing, but it does get repetitive after a while to see the same attacks happen over and over. The sprites look good, but the backdrops and backgrounds seem fairly generic by comparison. Most tellingly, it suffers from mecha imbalance, which becomes more evident in higher levels of difficulty. The challenge spikes can turn players off if they’re unprepared or inexperienced.
Still, Super Robot Wars X is a must-buy for fans of the tactical genre. And while it does possess the potential to shock the unprepared and uninitiated, it rewards patient gamers with an experience they’ll remember and lean on whenever another title from the series is in the offing. (8/10)

What to do with a worker’s red circle pay

I have two non-management employees who are receiving salaries which are a bit higher than what a junior supervisor gets. This is due to the workers’ length of service and the annual across-the-board pay increases under the Collective Bargaining Agreement. The trouble is that our human resource department is dragging its feet on our repeated requests in correcting the injustice. What’s the best solution for this? — Doing their Job.
One evening, a young man went to the home of the girl he had been dating regularly for more than one year. Tonight was the night. He asked her to marry him. Being very practical, the young woman replied: “When you have at least one million in the bank, I will seriously consider it.”
One year later, the two strolled hand in hand through a park. He stopped to kiss her hand, offered her an engagement ring and asked: “Will you marry me?” She inquired: “Well, you remember my condition. Just how much have you saved?”
He responded: “Exactly, P150,000.00.” She sighed and smiled. “Oh well, I guess that’s close enough to one million! At least, you tried.”
Doing something is better than doing nothing or delaying. “At least, you tried” is welcome recognition of one’s effort even if it falls short of expectations. However, I will not delve on your HR department’s delay in solving the issue but rather on your question about how to solve an issue adversely affecting the morale of supervisors.
You must understand that the real issue is injustice. Why would the supervisors who are management’s first line of defense be unjustly treated on matters of pay? This is a sensitive subject that your top management must handle very carefully with reasonable speed.
This means applying a great deal of diplomacy on all concerned, including the HR department, even if it appears incompetent at first glance. Now, for the solutions, explore the following strategies with the help of HR:
One, reclassify the red circle employees as supervisors. This is the fastest way but not necessarily easy to implement, particularly when people refuse to be promoted to the supervisory level. For one, they don’t want to assume the responsibility of supervising workers for so many “personal” reasons that includes being eligible for overtime and avoiding the potential for becoming unpopular with workers.
It is important to review the performance of the red circle workers to justify their reclassification to a higher job grade. If you do not conduct a performance review, there’s a big chance that you will be creating a bad precedent, assuming that they are not qualified for reclassification or promotion.
Remember that these are union members. They can bring the issue to a grievance proceeding, and can be misinterpreted as “defanging” the union, which is not absolutely correct, as vacancies can be created and the same post can be filled up by other workers who will be given the chance to move to a higher grade level.
Two, conduct an industry salary survey. This must cover all key rank-and-file positions, supervisors and managers. The problem with initiating a special survey like it is the length of time needed, plus the sizeable investment and the number of companies that are willing to participate in the survey.
That’s why it’s better to buy the latest survey results from consultants like Towers Watson, Robert Walters or Mercer, if not from the People Management Association of the Philippines or the Employers Confederation of the Philippines that charge lower fees than the three consultants I mentioned earlier.
Whatever survey that you have is more than enough to help determine the reasonableness of your current pay structure. If your current salary is below the industry average, then you need to move fast to correct the situation. In the first place, I am inclined to believe that you were fully armed with such data at the time of your CBA negotiation with the union. Otherwise, it would be unthinkable and reckless for any organization to discuss pay and perk increases with the union in the absence of this basic document.
Three, prohibit the red circle workers from doing overtime work. Allowing the concerned workers to do overtime work would exacerbate the situation. If overtime work is really necessary, assign it to other workers who are receiving much less than the red circle ones and without necessarily creating another union issue. The whole objective is to show the fairness of this decision by distributing the workload to all employees, if not avoid the root cause of why overtime work is necessary in the first place.
Who knows? You may even discover a solution to a nagging problem of having some over-friendly supervisors and managers allowing their workers to do overtime work, even if unnecessary.
Last, improve the material and non-material benefits of all supervisors. As soon as the salary discrepancy is discovered, it is best to pay a monthly cash allowance to the aggrieved supervisor. Then remove or incorporate the allowance into the basic pay of the concerned supervisor as soon as HR has resolved the issue.
Do this as a stopgap or permanent measure depending on the circumstances. Upgrade the supervisors’ perks and pay as dictated by the latest industry survey. The non-material considerations involve giving supervisors special consideration in pursuing graduate studies, or allowing them compensable time (say, two working days a month) to do their work elsewhere from time to time.
Another option is to recommend them to short-term and all-expenses foreign grants given by the Asian Productivity Organization or the Asian Overseas Technical Scholarship, among other related entities. The list of options is endless.
Whatever action you choose, it will be considered an indirect acceptance by your management that a salary discrepancy exists between red circle employees, who may receive more pay due to overtime premium, and your junior supervisors.
ELBONOMICS: High salary is a bribe to the workers so they can forget their dreams.
 
Send feedback or any workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting.
Guaranteed anonymity for those who seek it.

How PSEi member stocks performed — November 8, 2018

Here’s a quick glance at how PSEi stocks fared on Thursday, November 8, 2018.

Philippine Stock Exchange’s most active stocks by value turnover — November 8, 2018

Zubiri backs action on ‘non-inflationary’ tax reform

SENATE Majority Leader Juan Miguel F. Zubiri said the Department of Finance (DoF) needs to focus on tax measures that will have minimal inflationary impact.
“I think we should sustain the momentum in containing inflation before we tackle another tax proposal that would scare investors or cause investors to pull out,” Mr. Zubiri said in a briefing on Thursday.
The remarks come after Senate President Vicente C. Sotto III said that the second package of the Comprehensive Tax Reform Program (CTRP) is not among the priority measures of the chamber in the 17th Congress, which ends on June 7.
Mr. Zubiri proposed to put off Package 2, which will cut corporate income tax rates and streamline incentives, and instead pass other packages of the CTRP.
“We are appealing to the Department of Finance to study first this measure. We can pass the other measures like TRAIN (Tax Reform for Acceleration and Inclusion) 3 and 4 that are not inflationary,” he said.
Package 3 of the CTRP seeks to centralize valuation and assessment of real properties; while Package 4 will simplify capital income and financial intermediary taxation.
The senator also cited Package 1B, the General Tax Amnesty bill, which is pending second reading in the Senate and is set to be introduced to the plenary at the House of Representatives when it resumes session on Nov. 12.
Sought for comment, Finance Undersecretary Karl Kendrick T. Chua said is a separate press briefing the “first thing I’ll do next week is to approach them to see how much we can move it together,” referring to Senators Sotto and Zubiri.
Despite the lack of support, Mr. Chua remained positive the enactment of the second package still stands a chance within the 17th Congress.
“This year I think it’s very difficult, but I think within this Congress the chances are still good,” he said.
He noted that while he does not see the measure hurdling Senate by year’s end, he hopes it can at least get approval at the committee level.
“It would be good if it passes out of committee this year, which I would consider good progress,” he said.
Mr. Chua said concerns of the business sector over uncertainty brought about by the tax measure are due to its progress through the legislature rather than the bill’s contents.
“A lot of investors are waiting for this bill to pass and that is for them the number one uncertainty; it’s not the contents of the bill. It’s just that if it is not passed, they do not know what the final incentive package will be,” he said. — Charmaine A. Tadalan

PHL, Japan sign MRT-3 rehab loan agreement

THE PHILIPPINES and Japan on Thursday signed a 38-billion yen loan agreement to upgrade and rehabilitate the Metro Rail Transit Line 3 (MRT-3).
Finance Secretary Carlos G. Dominguez III signed the loan agreement on behalf of the Philippines, while Japan International Cooperation Agency (JICA) senior vice-president Yasushi Tanaka signed on behalf of Japan.
The project seeks to improve the safety, reliability and the level of service of the 16.9-kilometer light rail system connecting 13 stations along EDSA — Metro Manila’s main artery.
The MRT-3 rehabilitation project will cost a total of P21.96 billion. Japan will provide a loan covering about 85% or P18.76 billion via its Official Development Assistance (ODA) agency, JICA. The remaining P3.19 billion will be funded by the Philippines.
The interest rate is 0.10% for non-consulting services and 0.01% for consulting services, with a maturity period of 40 years inclusive of a 12-year grace period.
“This is by every measure a very soft loan that will enable us to address a very pressing problem,” Mr. Dominguez said in his speech.
“This is good news for the Filipino commuters so they will have improved access to safe and reliable transportation, while also meeting the Philippine government’s priorities to reduce traffic congestion in Metro Manila, attract investments, and improve the quality of life of the people,” said JICA Senior Vice-President Yasushi Tanaka.
The project involves the replacement of “worn-out” tracks, a “general overhaul” of the 15-year old 72 light rail vehicles, that seeks to eliminate the problems of train stoppages, system failures, engine breakdowns and faulty air conditioning besetting the line.
The loan will also cover the rail line’s train cars, power supply system, overhead catenary system, radio system, closed-circuit television system, public address system, depot equipment, elevators and escalators and other station-building equipment.
Transportation Undersecretary Timothy John R. Batan said that the rehabilitation process will not disrupt the current capacity of the MRT-3.
He said that the DoTr will return the MRT to its normal design capacity in the next 26 months, to 20 operating transits from the current 15, and time intervals of three and a half minutes between trains from seven minutes currently, speeds of 60 kilometers per hour (kph) from 30 kph, and passengers carried to 500,000 from 388,000 currently.
He said that the DoTr will gradually increase the MRT’s capacity further until the 43rd month.
Mr. Batan said that the government will tap the services of Sumitomo-Mitsubishi Heavy Industries (MHI), the original maintenance provider of MRT-3 when it was first rolled out, before its contract was terminated in 2012.
He said that Sumitomo began the rehabilitation process on Oct. 15 to help accelerate the project.
Mr. Batan also said that the DoTr is still proceeding with the full integration of all the trains bought from Chinese firm CRRC Dalian Co.
“The transition process is already ongoing and full mobilization will be in January. The mobilization is already happening. The interface with Dalian trains is something that we are currently discussing in order to make sure that all the considerations have been addressed.
Mr. Dominguez said that the MRT rehabilitation was the fastest that was ever processed between both countries, taking less than three months.
The National Economic and Development Authority (NEDA) Board, chaired by President Rodrigo R. Duterte, approved the rehabilitation project on Aug. 22
“I would like to assure our harried commuters that we will rebuild and reinvent this vital rail service as quickly as possible,” Mr. Dominguez said. — Elijah Joseph C. Tubayan

BoC eases ID rules for balikbayan box tax-free privilege

THE Bureau of Customs (BoC) has eased the ID requirements for availing of the duty and tax-free privilege for balikbayan boxes valued at up to P150,000.
Customs Memorandum Order (CMO) No. 18- 2018, dated Oct. 11, 2018 allows the use of other documents to show proof of Filipino citizenship for availing the tax-free perk, instead of the actual Philippine passport in previous rules.
The BoC will allow photocopies of a pertinent page of the Philippine passport with personal information, picture and signature, or in case of dual Filipino citizen without Philippine passport, photocopy of foreign passport with personal information, picture and signature plus copy of proof of dual Filipino citizenship; permanent resident ID or equivalent document in other countries; Overseas Employment Certificate/Overseas Workers Welfare Administration card; work permit; Unified Government ID issued by the Department of Labor and Employment (DOLE); any other equivalent document except birth certificate.
“In a bid to simplify the rules and regulations on duty and tax-free consolidated balikbayan boxes, qualified Filipinos availing of the P150,000 duty and tax-free privilege are not required to submit the commercial invoices of the goods contained in the balikbayan box. Invoices are to be submitted only if available,” the BoC added.
Qualified individuals are still required to submit the information sheets through their freight forwarders or deconsolidators.
Qualified Filipinos abroad are holders of valid passports issued by the Department of Foreign Affairs (DFA) and certified by DoLE, or Philippine Overseas Employment Administration (POEA) for overseas employment purposes regardless of profession; Filipinos who have established permanent residency abroad while retaining Filipino citizenship; and resident Filipino citizens temporarily staying overseas including holders of student visas, investor visas, and tourist visas.
The BoC said that the balikbayan boxes should only contain personal and household effects that are not in commercial quantities. The boxes may be sent up to three times in a calendar year, with the cumulative value not exceeding P150,000.
The order also imposes stricter penalties on freight forwarders and deconsolidators, as those who use the balikbayan boxes as conduits for smuggling shall be subject to “criminal prosecution” and “cancellation of registration.”
Deconsolidators and freight forwarders clearing consolidated balikbayan boxes with the BoC are obliged to ensure that only personal effects and household goods are sent.
“The BoC assures the public that balikbayan boxes not subject of derogatory information or are tagged as ‘No Suspect’ after the mandatory non-intrusive inspections (X-ray) shall not be opened and not be subjected to physical examination,” the BoC said. — Elijah Joseph C. Tubayan

Payments, martial law hampering Mindanao outsourcing growth

By Carmencita A. Carillo and Maya M. Padillo
Correspondents
DAVAO CITY — The growth of technology start-ups and the overall outsourcing industry in Davao is being hampered by payment system problems and the martial law in force in the Philippines’ southern islands.
“Small technology companies here are utilizing Paypal and it’s a total disaster as we have to go through multiple layers of denial from banks. Paypal points fingers and the worst case scenario is it will freeze your account,” US-Philippines Commerce & Industry Agency (USPCIA) Vice-President Rick Von Pfeil told Businessworld in an interview during the recently-concluded Livelihood Exchange 2018 and Innovation Summit held in the city.
Mr. Von Pfeil facilitated the business matching activity between Davao start-ups and US companies during the event.
“Americans don’t use Paypal anymore,” he added, citing at least three local projects that were delayed because of the system.
The easiest way to get paid for outsourced services, he said, is through bank transfers and credit cards.
Mr. Von Pfeil said US firms are keen on Davao City as their next destination for business process outsourcing (BPO), software development, and other technology-related services as they recognize the huge pool of talent available not just for call center operations.
“Most US companies will think about India first and then Ukraine for outsourcing, but now they are looking at the Philippines, including Davao, as another potential destination,” he said.
“Filipino developers are more expensive than Indian developers but US companies are willing to pay more money because of factors like good customer service and good grasp of the English language,” he added.
He also said that young entrepreneurs of start-up companies should tap the “pretty strong” business chambers in the country for networking and opportunities.
MARTIAL LAW
Meanwhile, Leechiu Property Consultants said the declaration of martial law has affected BPO expansion plans in Davao City as well as Cagayan de Oro City.
The firm’s chief executive officer, David T. Leechiu, said the impact is largely due to negative perceptions and travel restrictions, particularly for BPOs with foreign executives and clients.
“The big issue about ML is that if you’re a foreigner… under ML they cannot travel,” said Mr. Leechiu, who is also currently serving his second term in the Information Technology and Business Processing Association of the Philippines’ (IBPAP) Board of Trustees.
“I understand the government also needing to keep ML in place… but we also need to understand the cost of that policy. But I have been appealing to government many times to lift martial law at least in Davao City and Cagayan de Oro City because that has put a stop to all BPO expansions,” he said.
“We saw Davao as the second largest market after Cebu and now that disappeared… they (BPO companies) haven’t pulled out, which is very good. (But) They can go so much bigger here and they want to, but they cannot,” he added.
He said between 2012 and 2017, the BPO sector alone has developed from “zero to close to 25,000” seats, but the growth has stopped since.
“There’s one company that expanded 500 seats in the first year of ML, but after that no more, unlike in many parts of the Philippines,” he said.
ICT-Davao President Samuel R. Matunog, on the other hand, said while meetings with potential new BPO locators and clients have declined significantly, companies who are already in the city are actually expanding.
“I am not aware of a new BPO locator opening shop in Davao this year. However, those who are already in Davao are ramping up recruitment, and in fact, our major challenge is talent poaching and irregular recruitment activities,” he said.
Nonetheless, the head of the region’s umbrella group for the information and communication technology sector, said it would be good if the security situation can be addressed by government through “measures short of martial law.”
President Rodrigo R. Duterte declared martial law in Mindanao on May 23, 2017 during the siege of Marawi City by Islamic State-inspired extremist groups. The declaration has been extended twice, with the second ending on Dec. 31.
Authorities said last week that Mr. Duterte is awaiting the recommendation of the military and the police on whether to seek another extension from Congress.

PCA to seek implementation of 5% coconut content in diesel

AGRICULTURE Secretary Emmanuel F. Piñol said that the board of governors of the Philippine Coconut Authority (PCA) will recommend to President Rodrigo R. Duterte to fully implement a law increasing the coconut content of diesel to 5%.
He said the move to a B5 standard, with 5% consisting of vegetable oil, will help support copra prices. The current level of implementation is B2, or 2% vegetable oil.
He added that raising the coconut content of diesel is expected to raise diesel prices by P0.30 per liter.
“The board passed a resolution addressed to the President to direct the National Biofuels Board to increase the biofuel component from B2 to B5. This is expected to effectively absorb a huge portion of copra right now in the market,” Mr. Piñol told reporters after his meeting with the PCA on Thursday.
Mr. Piñol said that he is expecting opposition, but explained that this is in the law and should be implemented. He said that increasing the biofuel requirement improve air quality and mileage.
“You can always expect opposition every time fuel prices increase. What we are recommending is in the law. Even the economic managers may oppose that but it is in the law,” Mr. Piñol said, referring to the Biofuels Act of 2006.
“We will ask the President for a directive to the National Biofuels Board to implement that. With this development, I think the price of copra will rise,” Mr. Piñol added.
The unimplemented Biofuels Act of 2006 requires all diesel to be blended with 5% coco methyl ester (CME), to stabilize copra prices. The biodiesel requirement should have taken effect in 2015.
He said the additional cost “will give you cleaner air especially for us in Metro Manila, and will give you greater mileage.”
The two other measures discussed during the PCA’s board meeting were the lifting of the ban on the export of mature coconuts, imposed via executive order (EO) by President Ferdinand E. Marcos, and the allocation of P300 million for the establishment of common service facilities that will feature an irradiation equipment facilitate coco coir exports.
“This EO was signed by President Ferdinand Marcos in 1985 and this has effectively prevented the export of mature coconuts but there are reports of ongoing smuggling activity. There are several countries that have expressed interest in importing mature coconuts from the Philippines and China is one of them,” Mr. Piñol said.
Mr. Piñol said the irradiation facility will be established in Davao for use by the coconut sector and other industries producing export materials such as fruits and fish.
“The money for the machine is available,” according to Mr. Piñol.
The PCA, in principle, also approved a national replanting program covering 1 million hectares for the next four years, Mr. Piñol said.
According to the Philippine Statistics Authority (PSA), coconut production during the second quarter was 3.33 million metric tons (MT), up 3.9% from a year earlier. — Reicelene Joy N. Ignacio

PHL growth seen on track, but global, political risks hover

By Melissa Luz T. Lopez
Senior Reporter
THE Philippines appears on track to sustain its growth path, although an uncertain global landscape coupled with domestic political risk could dampen prospects, an economist said.
Hal Hill, professor emeritus of Southeast Asian Economies at the Australia National University, said pockets of instability on both the domestic and external fronts could weigh on the country’s growth momentum, particularly if timely reforms are not installed by government.
“This is a paradox at the moment: it is a good time in the Philippines but it’s a very unstable, uncertain world economy,” Mr. Hill said in his keynote address for the annual meeting of the Philippine Economic Society yesterday, noting that domestic policy is “crucial” in driving growth.
He pointed out that the growing trade war between the United States and China is a major concern.
The Philippine economy grew by 6.1% in the third quarter, down from 6.2% in April-June, failing to meet market expectations. The slowdown was due to a drop in farm output which offset the buoyant services and industry sectors.
Mr. Hill said market watchers must look out for developments involving the country’s fiscal space, as well as political issues such as presidential appointments to key economic posts, resolving the Mindanao conflict, reforming food policy, and a possible shift to a federal form of government.
“Indicators thus far suggest that the strong economic momentum is being maintained,” according to the book The Philippine Economy: No Longer the East Asian Exception?, as edited by Mr. Hill and professors Ramon L. Clarete and Emmanuel F. Esguerra.
During the panel session, National Economic and Development Authority Undersecretary Rosemarie G. Edillon said the Philippines is experiencing a “higher growth trajectory,” while Bangko Sentral ng Pilipinas Assistant Governor Francisco G. Dakila, Jr. said the Philippines’ potential output has risen to 6-7% — roughly matching the current growth pace.
However, Mr. Hill flagged risks drawn from domestic policy, particularly from “very slow” reforms to the legal system and weak checks on the Executive. Sentiment may also be suffering from global concerns about human rights and perceived political instability here.
Ties with Congress could likewise make or break the administration’s investment agenda, as much relies on the passage of the annual budget and tax reform packages in order to shore up revenue for project funding.
The economist likewise pointed out possible frictions from international relations, especially after President Rodrigo R. Duterte appears to have turned his back on the European Union and the United States in favor of China.
“While the prospects for attaining the growth target seem favorable, as shown by recent economic performance, the risk of squandering opportunities is also very real,” the authors said. “The hostility expressed towards long-standing development partners early on is a case in point. So is the preoccupation with congressional investigations of doubtful value in terms of legislation.”
“In the meantime, attention is diverted from more urgent matters.”
In his book, Mr. Hill also pointed out that the Philippines “remains less open to trade and investment” compared to other Southeast Asian states. He noted that the country is slow to open up the economy to foreign participation, particularly with a “gradual but partial” approach towards liberalization.

Lloyds Energy declares interest in PNOC LNG tie-up

LLOYDS ENERGY GROUP LLC said it submitted a letter of interest to the Philippine National Oil Co. (PNOC) to join the selection process for PNOC’s joint venture partner to develop an liquefied natural gas (LNG) hub in Batangas Bay.
As required by PNOC, the Dubai-based firm said it had also bought eligibility documents containing instructions to private sector participants while confirming its attendance for the pre-eligibility conference scheduled on Nov. 16, 2018.
PNOC President and Chief Executive Officer Reuben S. Lista did not immediately respond to a request for confirmation of Lloyds Energy’s statement as well as questions on other companies signifying their intention to participate in the selection.
Lloyds Energy said it has a proposal together with together with China Kaicheng Energy Ltd. to develop and build an integrated LNG hub.
It becomes the first entity to come forward with firm plans after PNOC, the DoE’s corporate arm, last month formally invited interested bidders to be its joint venture partner that will design, build, finance, operate and maintain the LNG hub.
The Department of Energy (DoE) earlier said that PNOC is one of three groups that were shortlisted to build the LNG import terminal.
Lloyds Energy previously expressed interest in pursuing several projects with PNOC.
Aside from the LNG project, Lloyds Energy said it plans to pursue the development of oil reserves and the training of Filipino manpower for work in LNG industries in the Philippines and overseas.
PNOC, along with its chosen joint venture partner, will be competing with the two other interested proponents: the consortium between Phoenix Petroleum Philippines, Inc. and China National Offshore Oil Corp. (CNOOC); and Lopez-led First Gen Corp., which owns several gas-fired power plants.
The need for an integrated LNG terminal comes as the country’s lone source of natural gas — the Malampaya gas-to-power project — nears depletion. The contract for the project off the Palawan cost will end in 2024.
PNOC wants its LNG hub project to be classified as an energy project of national significance under Executive Order 30, the law that grants an easier regulatory permitting process.
The company required interested private sector participants to secure eligibility documents, which were made available for viewing at the PNOC’s website. It said in order to participate in the selection process, the interested joint venture partner must submit a letter of interest to the company along with the payment of P1 million.
Deadline of submission of eligibility documents is at noon of Dec. 21, 2018. A pre-bid conference open to the public, will be held at 10:00 a.m. on Nov. 16, 2018.
PNOC said that at any time, it reserves the right to not proceed with the competitive selection process and the execution of the joint venture agreement plus other relevant concession documentation “without prior notice or liability and without any obligation to give any reason not to proceed.” — Victor V. Saulon

Peso strengthens to five-month high

THE PESO maintained its strength yesterday to log a five-month high, supported by big fund inflows even as Philippine economic growth clocked in slower than expected.
The peso closed at P52.57 against the dollar on Thursday, shaving off 38 centavos from the P52.95 finish logged the previous day. This marked the fifth straight session when the peso appreciated versus the dollar.
The local unit traded generally stronger as it opened at P52.83, even touching a low of P52.485 throughout the session. It briefly touched P52.85 as its intraday high before settling at the closing rate.
Two currency traders attributed the sustained appreciation of the peso to renewed market optimism regarding inflation, boosted by equity inflows from offshore investors.
Dollars traded yesterday reached $1.353 billion, slightly lower than the $1.447 billion on Wednesday.
“They are saying there’s an inflow for San Miguel Corp., maybe since last week,” one trader said, referring to the conglomerate’s follow-on offering for its food and beverage unit worth P39.19 billion which concluded recently.
The trader said the dollar-peso pair has been moving lower, but these equity inflows observed towards the recent long weekend “exaggerated” the peso’s recovery.
A second trader pointed out that additional inflows likely came from remittances of overseas Filipino workers, which in turn helped boost the peso.
“The peso strength for now is due to yearend remittances. It can also be attributed to the market view that inflation has tapered down,” the second trader said, referring to the steady 6.7% print in October which was announced on Tuesday.
On the other hand, the trader said the third-quarter economic growth rate of 6.1% may have been treated as a “non-event” by investors even if it slowed from the upward-revised 6.2% pace in the second quarter.
The trader said the latest result is close to the market’s 6.2% consensus rate. A BusinessWorld poll among 15 economists yielded a 6.3% median forecast for the July-September period.
For Friday, both traders said the market will be looking to the United States as the Federal Reserve concludes its two-day policy meeting.
“For the Federal Open Market Committee, it has been priced in that there is more of a hawkish tone. Any event other than that might also move the dollar-peso,” the second trader noted.
Investors widely expect the Fed to raise interest rates by another 25 basis points during their December meeting, picking up cues from previous statements made by US policy makers.
The first trader expects the peso to trade between P52.50 to P52.80 today, while the second sees a P52.55-P52.85 range. — Melissa Luz T. Lopez

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