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Increased integration with China expected to show up in BPO, infrastructure industries

CHINA and the Association of Southeast Asian Nations (ASEAN) region have room to deepen their economic ties, the economic research arm of a regional integration organization said on Thursday.
“Prospects for broader and deeper integration in the coming decades are bright as China and ASEAN countries are natural partners with many complementarities,” the ASEAN+3 Macroeconomic Research Office said in a working paper.
AMRO said that trade between China and ASEAN economies has improved along with China’s economic growth.
This is due to the development of regional production networks with China at the center and ASEAN countries as parts the supply chain.
“Trade in goods between China and ASEAN will continue to thrive, propelled by the increase in market size on both sides, greater cooperation in facilitating trade and enhancing connectivity, and continued relocation of labor-intensive and other types of manufacturing activities from China to ASEAN to as China moves further up the value chain and focuses on its competitive advantages,” it added.
It noted that China-ASEAN integration has boosted the Philippines’ business process outsourcing sector, which was among the top contributors to economic growth in the past decade.
“ASEAN’s services exports also got a boost from China’s outbound tourism, with the Philippines witnessing a lift in its export of BPO services to China,” the report read.
“While China has certainly developed its own BPO services, it has nevertheless tapped the Philippines’ expertise) opportunistically. For example, the Philippine people’s proficiency in the English language has enabled the country to provide call centre services to Chinese companies,” it added.
AMRO said that China and ASEAN can broaden economic cooperation through the Belt and Road Initiative (BRI), which seeks to ramp up infrastructure in ASEAN countries to streamline the distribution of goods, with China providing access to finance.
It said that the BRI will foster foreign direct investment flows between China and ASEAN.
“China’s portfolio investment in ASEAN is expected to increase once China opens up its capital account further to allow Chinese investors to diversify their portfolios and invest abroad,” AMRO added.
It said that the Philippines is among the top beneficiaries of China’s BRI efforts.
“Assuming that BRI investment helps fill 20% of the infrastructure investment gap, this could crowd private investment by as much as 0.3 percent of GDP (gross domestic product) within the next two years, with the crowding-in effect most pronounced in the Philippines and in Indonesia,” it said.
“To make further progress, China needs to strengthen reform to address remaining challenges and grab opportunities offered by the Fourth Industrial Revolution. For both China and ASEAN, enhanced cooperation based on good understanding of each other’s needs, strengths, capacities and priorities will help deepen regional integration and boost mutual benefits.” — Elijah Joseph C. Tubayan

Employers warn maternity leave law imposes more costs on companies

EMPLOYERS said their questions about the new maternity leave law center on additional costs that companies are liable for, while noting the new 105-day leave entitlement exceeds the international norm of 98 days.
In a phone interview with BusinessWorld on Tuesday, Employers Confederation of the Philippines (ECoP) Acting President Sergio R. Ortiz-Luis Jr. said the Philippines was overdue for a maternity leave law that met the International Labor Organization’s (ILO) standards but raised concerns over the decision to make employers shoulder the added costs.
“International standards according to the studies show 98 days is the norm,” he said, adding that employers decided not to contest the legislators’ decision to go beyond to 105 days.
“The deal breaker is they changed the concept of (leave entitlement) being a social security (obligation),” he added, saying that employers will be obliged to pay additional benefits apart from paid leave, referring to the differential costs of maternity salary benefits beyond Social Security System (SSS) entitlements that will now be shouldered by the employer.
He said that the additional costs will be a particular burden to Micro, Small and Medium Enterprises (MSMEs).
“For us, we advance (the payment) but for small and medium [enterprises], that payment will hurt because it puts pressure on their cash flow,” he said.
The Expanded Maternity Leave bicameral report was ratified earlier this month by the Senate and House of Representatives. The bill expands on the current maternity leave of 60 days for natural delivery and 78 days for C-section delivery to a uniform 105 days. Solo parents are entitled to an additional 15 days. The new legislation applies to all pregnancies, removing the previous cap of four pregnancies.
Mr. Ortiz-Luis said there is a possibility that a woman’s employability could be impaired by the law, which is awaiting signature from the President.
“The employer will be discouraged. If they can help it, they won’t hire women,” he said.
Bureau of Workers with Special Concerns (BWSC) Director Ma. Karina Perida-Trayvilla said that the agency supports the bill and has been actively conducting consultations prior to its enactment.
“We have been very active in deliberations with the Congress. In fact we submitted a an official position on this supporting the bills,” she said in an interview with BusinessWorld.
Regarding the legislation’s potential to create discrimination in hiring, Ms. Perida-Trayvilla said “Regarding apprehension that it might create a disadvantage over preference in employment for men over a woman , our position is that we have a Magna Carta for Women.”
According to Section 8 of the Magna Carta of Women or Republic Act 9710: “All rights in the Constitution and those rights recognized under international instruments duly signed and ratified by the Philippines, in consonance with Philippine law, shall be rights of women under this Act to be enjoyed without discrimination.”
“Discrimination might happen but there are industries that need women,” Ms. Perida-Trayvilla said, adding that many industries have a female-majority work force.
She said the challenge is monitoring employers for compliance. — Gillian M. Cortez

DoLE orders OFWs seminars to be standardized

THE Department of Labor and Employment (DoLE) has issued an order to standardize seminars for Overseas Filipino Workers (OFWs) to help them adjust to their host countries.
Labor Secretary Silvestre H. Bello III issued Administrative Order No. 532, Series of 2018 that showcased the Post-Arrival Orientation Seminar (PAOS) Content Framework to be used by Philippine Overseas Labor Offices (POLOs)abroad in establishing social integration of Overseas Filipino Workers.
In the order obtained by BusinessWorld on Thursday, the PAOS aims “to prepare the OFWs on understanding cultural diversity and dealing with cultural differences, and provides them information on their working and living conditions, their rights and obligations, including the Philippine government’s programs and services on-site.”
The PAOS system is authorized by Section 224 of the Revised POEA (Philippine Overseas Employment Administration) Rules and Regulations Governing the Recruitment and Employment of Land-Based Overseas Filipino Workers which requires POEA, Philippine Overseas Labor Offices and other concerned entities to “provide effective orientation to principals/employers on the requirements, standards, laws and regulations in the recruitment and employment of Filipino workers. The POLO, in coordination with the principals/employers, shall conduct a PAOS for Overseas Filipino Workers.”
PAOS is a “follow through” to the Commission on Filipinos Overseas’ (CFO) Pre-Departure Orientation Seminar (PDOS) which is required for OFWs and emigrants prior to arriving in their host country.
The PAOS Content framework’s objectives seek to provide OFWs with the following:

• Relevant information on the customs, culture, and traditions in their new work environment.

• Strategies to be able to relate and adapt to their new work environment;

• Information on their rights and obligations, including remedies available to them in case their rights are deemed to be disregarded; and

• Information on the Philippine Government’s programs and services for OFWs.

The PAOS will cover customs, culture, and tradition; the labor and immigration political and regulatory framework; the employment contract; the Philippine government’s role; Emergency services availments; Health and safety benefits; Training initiatives; Social support systems services; and Filipino Community (FilCom) initiatives.
AO 532 requires POLOs to conduct seminars for newly-arrived OFWs “ideally within one month from the date of their arrival in their host country.”
It added that the POLOs are also “directed to compel employers and foreign recruitment agencies (FRAs) to allow OFWs, especially the domestic workers, to attend the seminar.”
POLOs will also work with the International Labor Affairs Service to produce an online version of the PAOS that is country-specific to supplement the on-site PAOS. — Gillian M. Cortez

Economist calls on conglomerates to do more heavy lifting for development

CONGLOMERATES have the resources to play a bigger role in helping achieve the goal of inclusiveness amid the weakness of national institutions, National Scientist and economist Raul V. Fabella said.
Mr. Fabella delivered his assessment during the third Paderanga-Varela Memorial Lecture of the Foundation for Economic Freedom (FEF) at the Dusit Thani Manila in Makati City. His lecture was drawn from his recent book titled “Capitalism and Inclusion under Weak Institutions.”
“Conglomerates have the considerable capacity for collective action, and they have shown it. Now, they have resources, they have expertise, they have organization. They can raise capital within,” he said.
“Building on what we have, we already have a clutch of conglomerates. Rather than diminish them, we can rechannel them. That of course is a very difficult mission. But when they are enlisted, as we have in certain circumstances, they can greatly boost the weak’s states capacity for public goods provision,” he added.
Mr. Fabella cited China under Deng Xiaoping for being able to carry out poverty reduction programs. However, he pointed out that China was successful in addressing poverty because it had strong institutions, a feature that many less developed countries lacked.
In the Philippines, the economist said conglomerates are best partners for the government to ensure inclusive growth, citing the Metropolitan Waterworks and Sewerage System (MWSS) privatization and the Public-Private Partnership (PPP) programs.
“The incapacity of the state to provide public goods could be helped along by enlisting conglomerates towards that. This is not a pipe dream. This has happened already. It’s already part of our history. So we did that for MWSS privatization. We’re doing it for CaLaX (Cavite-Laguna Expressway), TPLEx (Tarlac-Pampanga-La Union Expressway), and NAIAx (Ninoy Aquino International Airport Expressway),” he said.
“So it’s already a reality. We should just simply facilitate doing more of it,” he added.
Mr. Fabella also said competition among conglomerates has empowered consumers by giving them options, which also reduces the burden of Philippine Competition Commission (PCC).
Clairmont Group President and Chief Executive Officer (CEO) Eduardo H. Yap said reliance on conglomerates carries risks as most countries have a large share of small and medium-sized businesses. He also cited the monopolistic practices of some industries, which have formed some of the “structural weaknesses holding down development.”
Stratbase ADR Institute President Victor Manhit said that while “bright economic prospects” boost investor confidence, corruption and red tape in the bureaucracy have stifled business growth and pulled down the Philippines’ competitiveness ranking. With corruption rooted in the electoral system, Mr. Manhit called for policy-based political discourse in the upcoming midterm 2019 elections.
“We must advocate for program-based and policy-intensive political discourse to test the leadership potential of not only the candidates but this administration also,” he said.
University of the Philippines (UP) political science professor Amado M. Mendoza, Jr. said the country’s challenge in achieving the inclusive growth was Duterte’s administration’s politics and economics, as Mr. Fabella cited.
Mr. Fabella had warned during the lecture that the inconsistencies between the political and economic policy of the administration have been clouding the waters for investment, raising uncertainty.
Mr. Mendoza added: ”Can inclusive growth, can inclusive institutions (happen) in an atmosphere where the politics is divisive?… Can (Finance Secretary Carlos G.) Dominguez III’s economics trump Duterte’s politics? That’ a question and a challenge that we have to confront and we will have to confront it as soon as possible in the 2019 elections.” — Camille A. Aguinaldo

Bicam to tackle PWD PhilHealth measure in Nov.

THE Bicameral Conference Committee will meet next month to harmonize bills proposing to give persons with disabilities (PWDs) mandatory PhilHealth coverage.
“It’s now scheduled for Bicameral Conference committee when we resume session in November,” Ako Bicol Rep. Alfredo A. Garbin, Jr., who is among the members of the Committee, told BusinessWorld in a phone message on Thursday.
He said that he expects ratification of the reconciled version of the measure and its enactment by year-end.
“November, ratified by both houses of Congress, then I think within one month this will be signed into law by the President,” he said in a phone interview.
“This will be a perfect gift for the sectors with PWDs or differently-abled persons, not only for them but also their families,” he added.
Congress is currently on break and is scheduled to resume on Nov. 12.
Both House Bill 8014 and Senate Bill 1391 proposed to automatically provide PhilHealth assistance to PWDs, who are currently not afforded health insurance.
The bills also noted that funding will be sourced from the National Health Insurance Fund of PhilHealth earmarked from the proceeds of Republic Act 10351, “An Act Restructuring the Tax on Alcohol and Tobacco Products.”
The House version was approved on third reading on Oct. 8, while its Senate counterpart was approved on July 30.
Prior to its adjournment, the chamber assigned Mr. Garbin, Rep. Sandra Y. Eriguel, M.D. of the 2nd district of La Union and Rep. Mikaela S. Violago of the 2nd district of Nueva Ecija as the House contingent to the Bicameral panel. — Charmaine A. Tadalan

How academia hurts your children and society

Unbeknownst to many Filipinos, two quite significant developments in the academic world happened this month. One was the Brett Kavanaugh confirmation hearings before the US Senate in relation to his appointment as Supreme Court justice, which revealed the deep leftist bias that many law schools have (including Kavanaugh’s own alma mater, Yale).
The second (and equally significant) was the “Grievance Studies” hoax.
Modern academia has lived by the “publish or perish” mantra, which by itself is not necessarily a bad thing. However, the drive to publish and the environment in which it’s done have made the entire exercise questionable.
The Federalists’ Sumantra Maitra illustrates to us the context: “There was a time when academia was controlled by pseudoscience. Ideas of phrenology and craniometry, alchemy, para-psychology, Lysenkoism, and other ideological gibberish used to be funded. A quarter-century since Richard Dawkins trashed and Alan Sokal hoaxed post-modernist academia, one might have assumed that those days of ideological and activist pseudoscientific nonsense were over.” But it isn’t.
As the three (Helen Pluckrose, James Lindsay, and Peter Boghossian) who undertook the hoax project put it: “Something has gone wrong in the university — especially in certain fields within the humanities. Scholarship based less upon finding truth and more upon attending to social grievances has become firmly established, if not fully dominant, within these fields, and their scholars increasingly bully students, administrators, and other departments into adhering to their worldview. This worldview is not scientific, and it is not rigorous. For many, this problem has been growing increasingly obvious, but strong evidence has been lacking.”
Inasmuch as the Philippines itself is asking if the Left has indeed infiltrated local academia, particularly in State-run universities, the findings of Pluckrose, Lindsay, and Boghossian are deeply disturbing.
(For a full account of their project, see Areo Magazine, “Academic Grievance Studies and the Corruption of Scholarship.”)
What the three did, starting in 2017, was to publish several papers that were truly and intentionally rubbish (complete with sloppy methodology and obviously suspect statistics) but deliberately clothed in progressive-speak. Yet, tellingly, many of their papers were eagerly accepted by academia.
One paper was about how observing dry-humping dogs could lead to behavior modification of men from the feminist perspective. The paper’s title? “Human reactions to rape culture and queer performativity at urban dog parks in Portland, Oregon.” And this was published (with “special recognition”) in the feminist journal Gender, Place and Culture.
And it gets more ridiculous from there.
There was a paper on men, boobs, and Hooters (“An Ethnography of Breastaurant Masculinity: Themes of Objectification, Sexual Conquest, Male Control, and Masculine Toughness in a Sexually Objectifying Restaurant”), that men masturbating while thinking of women qualifies as sexual assault (“Rubbing One Out: Defining Metasexual Violence of Objectification Through Nonconsensual Masturbation”), of women fat bodybuilding as a form of protest (“Who are they to judge? Overcoming anthropometry through fat bodybuilding”), that astronomy is a patriarchal science and hence should be replaced by feminist astrology (“Stars, Planets, and Gender: A Framework for a Feminist Astronomy”), and one which needs no explanation: “Going in Through the Back Door: Challenging Straight Male Homohysteria, Transhysteria, and Transphobia Through Receptive Penetrative Sex Toy Use.”
For anyone wondering if academia’s responses to these papers are mere outliers, think again. Pluckrose, Lindsay, and Boghossian discovered that “just about anything can be made to work, so long as it falls within the moral orthodoxy and demonstrates an understanding of the existing literature.”
In short, what people have been wondering about for so long is true: the Left has infiltrated academia, where “secular” “liberal” “progressive” thinking is considered dogma, and “critical thinking” simply means being against traditional values, religion, marriage, family, or any established institution proven to have led to dynamic and developed societies.
The aforementioned papers were not even the worst of it; rather, they came at the latter part of the project. As Maitra narrates it:
“Finally, the most dangerous of all the published papers started to come out. One was about white males in classrooms made to sit in chains, as reparations for previous crimes. The authors were asked to revise and resubmit because the reviewers didn’t think it was harsh enough for the men. The second was when authors wrote a paper for the notorious feminist journal Hypatia, infamous for publishing papers about why feminists should be like viruses and join disciplines and institutions to disrupt and destroy Western societies from within. This hoax paper essentially rewrote Hitler’s Mein Kampf in feminist language. It got accepted in another feminist journal called Affilia.
These are the sort of Marxist, socialist, feminist, progressive nonsense university students are being exposed to, brainwashed even, not only abroad but quite possibly even in our local supposedly “elite” universities.
And here’s the kicker: you’re paying for it directly as parents or indirectly as taxpayers.
 
Jemy Gatdula is a senior fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.
jemygatdula@yahoo.com
www.jemygatdula.blogspot.com
facebook.com/jemy.gatdula
Twitter @jemygatdula

Credible — or a nuisance?

A “nuisance candidate,” to summarize what Section 69 of the Omnibus Election Code says, is someone who files a certificate of candidacy (CoC) with the intention of mocking the electoral process or putting it in disrepute; whose name is similar to that of other registered candidates and whom the electorate can therefore mistake for him or her; or who has no real intention to run for the office for which he or she filed a CoC.
What is problematic with that definition is the question of intent. During the filing of CoCs from Oct. 11 to 17 last week, as preposterous and off-the-wall as the claims and plans of some of those who did file that document were, it didn’t seem as if they intended to mock the process. They were nevertheless ridiculed by the media and the public as nuisance candidates and are likely to be so declared by the Commission on Elections (Comelec) — but apparently not on the basis of their bad intentions but as personalities who did not meet conventional norms of appearance and behavior.
This raises the question of what the standards are that can make the difference between being declared a credible candidate or a nuisance. By common consent, however, it is still the kind of personality the would-be candidate projects publicly that decides credibility, although this seems to apply only to political unknowns.
In contrast, the politically prominent are assumed to be credible, even if they have no announced programs of government or platforms. “Credibility” is implicitly understood to mean being part of a well-known family, and/or a member of an established political party.
Being one or the other, or both, apparently leads the Comelec to conclude that the candidate has the means to wage a national campaign — that he or she has the funds to pay for campaign ads in the media, to hire poll watchers, and to do whatever else he can to win.
A “credible candidate” is therefore a known or aspiring politician who has the family background, a hundred million or even billions to spend, and the connections, rather than a program of government, good intentions, or even some measure of sanity, that will enable him to campaign for the post he has filed a CoC for.
What this amounts to in practice is the enshrinement of money and connections as the principal determinants, of, first of all, being allowed to run for office, and second, being certified as capable of waging a campaign that can lead to an electoral victory. The enforcer of Ferdinand Marcos’s martial law, who’s recently been trying to prettify that outrage, thus qualifies as a “credible candidate” for the Senate — and so does one of Marcos’s own, less than forthright daughters.
Despite the anti-dynasty provision of the Constitution, the purpose of which is to democratize the citizenry’s participation in its own governance, the result is the continuing monopoly over political power of a relative handful of families. There are exceptions that for their rarity only prove the rule.
elections
The intent of the constitutional provision creating the party-list system is precisely to correct this anomaly by encouraging the “proportional representation” of marginalized and underrepresented sectors in the House of Representatives, in which landlords and big bureaucrats have historically been dominant. But it should be apparent to everyone that the system has become the exact opposite of what it was intended to be.
As of last week, some 185 party-list formations had manifested their intention to run in the congressional elections of 2019. Part of a process that began when the Supreme Court ruled in 2013 that party-list groups that do not represent marginalized sectors may run during the elections that year — and that their nominees need not be members of the sector their party supposedly represents — the system has become another way for established parties, traditional politicians and the far from marginalized and underrepresented to get into the House and to prevent those groups that are truly representative of those sectors from being elected.
The SC ruling was issued despite the provision of the Party-List System Act (Republic Act 7941) specifying “labor, peasant, fisherfolk, urban poor, indigenous cultural communities, elderly, handicapped, women, youth, veterans, overseas workers and professionals” as marginalized sectors whose participation in governance is necessary to make representation in the House “proportional” (meaning somewhat democratic).
The victory of a party-list group supposedly representing security guards whose first nominee was a son of former President, now House Speaker Gloria Macapagal-Arroyo was among the first indicators of the system’s rapid transformation into just another means of assuring the dominance of the dynasties and their surrogates in government. In 2016, the first nominee of a party-list group that won two seats in the House was a prominent businessman, while its second nominee was a marketing consultant and the business manager of boxer, now Senator Manny Pacquiao. And who has not heard of the non-OFW who refused to remove his shoes at the Ninoy Aquino International Airport security gate whose party-list group is supposedly committed to protecting and advancing the interests of overseas Filipino workers?
For 2019, a clutch of dynasts are among the most prominent nominees of newly created as well as established party-list groups, some of whose kin are at the same time running for the Senate, for mayor, and for governor under the major political parties.
While this is happening, the anti-democratic argument that only the “educated” can intelligently govern that was so obviously behind the 2013 Supreme Court ruling has been revived by Senator Richard Gordon. A certain political science professor is also proposing the passage of a law or an amendment to RA 7941 that will require a college degree of every candidate for public office.
Both Gordon and the latter not only ignore the sorry record of the supposedly educated (most of them lawyers) in governing this country, which, over the last seven decades of their rule, has become even more impoverished, and is now the economic and development laggard of Asia. Neither have they ever understood that it is those most affected by the problems of the underrepresented sectors of which they are members who best understand them and who can therefore craft appropriate solutions.
Contrary to what the media, much of the public and the Comelec think, the real nuisance candidates are the dynasts and their surrogates who have no program of government, and no inkling of what they’ll do once elected except self-aggrandizement.
It is they, after all, who have inflicted upon this country their incompetent, corrupt, and decades-long dominance over government at the expense of its development and the well-being of its citizens. Such aspirants for public office as the musician who wants to develop Filipino rock music, or the once-perennial candidate for the presidency who wanted to air-condition the whole of Manila, were at least honest and forthright.
The really credible candidates, on the other hand, are those whose track records prove that they have this country and its people’s best interests at heart, and that they stand for principles rather than for the self-serving goal of advancing their personal, familial and/ or class interests. What the elections in this country need are entirely new definitions of “nuisance” and “credible” candidates not only during the filing of CoCs but also on Election Day itself if the hopes of the many for a government that will finally address their demands for a just society will ever prosper.
 
Luis V. Teodoro is on Facebook and Twitter (@luisteodoro). The views expressed in Vantage Point are his own and do not represent the views of the Center for Media Freedom and Responsibility.
www.luisteodoro.com

Send in the clowns

By Tony Samson
STEPHEN Sondheim’s eponymous song from his musical A Little Night Music is good background music for the 2019 elections which just kicked off with the filing of the CoCs. Photos of known personalities on their way to the registration desk, accompanied by families, well-known predecessors themselves are front-page stuff.
Can unfamiliar stragglers be far behind, even when they are curtly dismissed as comic relief, objects of derision, and yes, nuisances? Why do they even show up knowing they have no chance of a TV interview on their platform of government unless it’s for “the bizarre side of the news”? Wait, maybe that’s the whole point. They just want their fifteen seconds of fame. Media always obliges — so did you win the bet that you’ll be on TV? The questions directed at these unknowns are disrespectful and mocking — that’s a nice tattoo on your forehead.
There are obligatory moves to weed out these gatecrashers, including those with similar names as other candidates that will confuse the voters. The purge does not cover siblings who happen to have the same surnames (even if she’s married) or if one sibling uses a screen alias and the other his real name.
Comelec trims down the candidates to be included on the ballot form. Many otherwise qualified contenders in terms of citizenship, residence requirements, and minimum age are deemed to “put the electoral process in mockery or disrepute” and classified as nuisance candidates. The process of controlling the pests from polluting the electoral process can be contentious.
The tag of “nuisance candidate” is seldom graciously accepted. In one presidential election, 81 candidates registered their interest in running the country and appointing friends as Cabinet members (more of their kind). It is not possible to design a debating format to allow more than ten prospects to state his or her position on a national issue, like: what is a legitimate candidate?
Being mentally unbalanced may be one basis for being dismissed as a nuisance. Still rational individuals can string sentences together to form a coherent paragraph to argue why the country should apply to be the fifty-first state or why someone like him who is unknown even to his neighbors should be a possible senator — I have a wardrobe of suits, with many pockets.
Ours is the only country with a specific provision in the election code for nuisance candidates. Maybe, in our society, there is some tolerance for crackpots and soap-box orators to be allowed to join the political conversation. (Some of them have radio programs and blogs.) Many countries have screening mechanisms like a minimum percentage of votes in primaries or in previous elections to flush out the pests. Still some others don’t bother with the process at all.
Does it follow that those not disqualified as pests are therefore qualified as candidates? Is there an ideal number of contestants for the twelve available Senate seats? Does celebrity status confer automatic entry into the fold of acceptable contenders?
It is difficult to set objective criteria for classifying candidates as nuisances. Some grounds are clear enough like mental incapacity (this is not always obvious), absence of any program of government, having no political party, being comatose, dire lack of resources to mount a credible campaign, and simply being too old to run (or walk). Wait, even that is not a disqualification — I had coffee with the first president of the Republic.
Qualifications for the position of accounting clerk for a funeral parlor (can you define dead assets) are more stringent than the constitutional requirements for Chief Executive. What position in the private sector states as the only qualifications for a job minimum age, citizenship, and residence? No wonder there are so many applicants, and no screening mechanism — those with suspicious motives need not apply.
Even among ostensibly qualified candidates, there are those that stand no chance of winning. Success in other fields do not necessarily translate into electability. And yet, boxers, movie stars, and media celebrities with big fan bases manage to get into the official list of candidates.
After elections, it is some winners that may turn out to be the real pests. Nuisance candidates are definitely more harmless than their elected counterparts.
 
Tony Samson is chairman and CEO, TOUCH xda
ar.samson@yahoo.com

The naked brand: Transparency in fintech

By Mike Singh
THE discourse around fintech is generally future-focused, including in the Philippines. Founders will discuss how their solutions will change their particular sub-sector of fintech — be it remittances or mobile payments — while journalists will opine how these technologies will upend entire industries. Our collective gaze, in short, is firmly fixed toward the horizon ahead.
The problem with this approach is that many people will be unfamiliar with the alternative: In other words, what came before you? In his seminal book Zero to One: Notes on Startups, or How to Build the Future, venture capitalist, serial entrepreneur, and PayPal cofounder Peter Thiel argues that new products must represent an exponential improvement, rather than only an incremental one from previous solutions, in order to attract customers. But showing your product is leaps and bounds above everything else only possible if you establish the baseline: What are most people using now, and why is it less than ideal? You cannot take this knowledge as a given, particularly in emerging markets. Your market education needs to extend back into your sub-sector’s history just as much as it documents the present and projects into the future.
I’ll use my field as an example. At AsiaKredit, we provide short-term credit for people across Southeast Asia who would otherwise be unable to, owing to their little to no credit history. It would have been easy for us to keep our messaging to that value proposition. Instead, we try to consistently explain how AsiaKredit is an exponential improvement over the two most common alternatives.
The first alternative is the status quo: They remain unbanked. In the Philippines alone, there are over 71 million people who are unbanked, and in a publicly released study we did through our local short-term loan app pera247, we uncovered some of the most common reasons they remain in this state: They lack financial literacy, they cannot furnish the required documents to create an account, or they would be unable to maintain a minimum balance. As a result, they cannot avail themselves of a loan to pay everything from their small business costs and children’s needs to their health expenses and tuition fees.
The second alternative is arguably even worse than remaining unbanked. Out of an urgent need for capital, many of these consumers will turn to informal lenders common in emerging markets like the Philippines. Unfortunately, many informal lenders are notorious for unscrupulous practices, among them, charging annualized interest rates in the thousands, employing hostile/harassment collection tactics, and filing criminal complaints against borrowers.
It’s important for fintech companies to take this kind of macro-level view of their market education, rather than keep a tunnel vision on their product alone, no matter how tempting it is to do so. Though it may seem counterintuitive, the broader your market education is, the more consumers will turn to your product as the solution to their problem. We’ve had the privilege of experiencing this firsthand at AsiaKredit: We’ve processed more than 170,000 applications through pera247, and are on target for an even larger milestone later this year, as Filipinos who have no credit history turn to us for their lending needs.
We treat educating our customers just as seriously as educating the market. Under an overall philosophy of transparency, AsiaKredit is upfront with our terms — it’s stated in black-and-white on the pera247 app — and clear about our lending disclosures. We also place an emphasis on finance 101, since we know from our market study that a lack of financial literacy is what keeps many people from opening a bank account in the first place. Our customers, in short, are equipped with the knowledge they need to not only make sound financial decisions, but to also exercise responsible borrowing.
Given AsiaKredit’s success with market education, financial literacy, and brand transparency, I would like to call on everyone in the fintech community in the Philippines and in Southeast Asia to reevaluate how we communicate about our space and our solutions. We need to cut back on the hype, the pyrotechnics, the prognostications, and get back down to the basics: How are we helping the people around us live better today than they were yesterday?
 
Mike Singh is the CEO and cofounder of AsiaKredit, which operates the pera247 mobile app in the Philippines.

Customs officials fired, Lapeña moved to TESDA

By Arjay L. Balinbin and
Camille Aguinaldo Reporters
PRESIDENT RODRIGO R. Duterte on Thursday fired on the spot all Bureau of Customs (BoC) officials and moved controversial Customs Commissioner Isidro S. Lapeña to the Technical Education and Skills Development Authority (TESDA).
Mr. Duterte made this abrupt announcement during the celebration of the 117th anniversary of the Philippine Coast Guard (PCG) in Manila on Thursday afternoon, Oct. 25.
He also appointed Maritime Industry Authority (Marina) Administrator and former Armed Forces chief Rey Leonardo “Jagger” B. Guerrero as Mr. Lapeña’s replacement at the embattled bureau, amid the controversy over the P6.8-billion shabu shipment last August.
“Out lahat (everybody), to the last man. Commissioners, department heads, the entire— they are out,” Mr. Duterte said by way of relieving all Customs officials.
He added: “Now… General Lapeña will move to TESDA. I will promote you to a Cabinet member position. General Jagger Guerrero, you are to move to the Bureau of Customs.”
“Is Jagger here? I know that you are reluctant….I know that you are happy there and you are contented….But the demands of public service and the need for honest men require your presence there.”
The President said he will look for Mr. Guerrero’s replacement at the Marina.
He told Mr. Guerrero that the current personnel of BoC “are on floating status,” and “maybe (he) can utilize military men.”
He added it is up to Mr. Guerrero to select new Customs officials. “I leave it up to you. Trabaho mo ‘yan (That is your job).”
“Maybe, kung anong unit diyan sa (whichever unit in the) military or navy, you can select them,” he added.
The President also warned all government officials anew that corruption is something that he is “passionate about.”
In a press briefing at Malacañang on Thursday morning, Mr. Lapeña said he had no plans to leave his post despite his admission that the four magnetic lifters discovered at a warehouse in Cavite last August may have contained shabu or methamphetamine hydrochloride as claimed by the Philippine Drug Enforcement Agency (PDEA).
He said he “still has a lot to do” in the BoC. “Well, the President placed me there to accomplish a job, a mission, and that is to stop corruption and increase revenue collection. And I have been delivering and I still have to do a lot para ma-accomplish iyong mission na iyan (to accomplish that mission),” he said.
Mr. Lapeña has denied PDEA’s claims that the magnetic lifters found in Cavite contained illegal drugs, but he said the presentation of Public Works and Highways Director for the Bureau of Equipment Toribio Noel L. Ilao at the House of Representatives last Wednesday changed his mind.
Also on Thursday morning, PDEA Director General Aaron N. Aquino reestimated the shabu allegedly concealed in the said lifters to P11 billion from P6.8 billion. “‘Yung aking estimate doon sa una na P6.8 billion, maliit pala ‘yon kung ibabase natin doon sa re-weighing na ginawa namin (My 6.8 billion estimate is small if we base it on the re-weighing that we recently did.),” he said at a forum in San Juan City.
When sought for comment during the Palace briefing, Mr. Lapeña contradicted Mr. Aquino’s estimate.
“I don’t know if the P11 billion was taken, but of course it’s coming from PDEA. If we will just…look at the four empty containers, that will not, hindi iyon magreresulta ng (that will not result in) 11 billion….But we take that very seriously, that is why we have to concentrate our efforts in going after the drug syndicate and going after itong mga (these) shipments na nakalusot (that slipped past inspection),” he said.
JIMMY GUBAN
Also on Thursday, the Senate and the Department of Justice said former customs agent Jimmy S. Guban, whom Mr. Duterte has ordered arrested, will be handed over to the National Bureau of Investigation after the Senate ends its inquiry on the shabu shipment.
“We are a co-equal branch of government. Congress is a co-equal branch, the President is another co-equal branch, the judiciary is a co-equal branch. And with all due respect to the President, if I heard him correctly, we cannot turn over Mr. Guban right away because we’re still continuing the hearings,“ Senator Richard J. Gordon said.
The chairman of the Blue-Ribbon Committee, which is investigating the shabu shipment, Mr. Gordon said he has already consulted the matter with Senate President Vicente C. Sotto III.
“Although I am in constant in touch with the Department of Justice (DoJ), this is a serious case that involves a lot of personalities doing heavy drug smuggling,” he added.
The senator will also push for Mr. Guban and his family’s admission to DoJ’s Witness Protection Program (WPP) before he would turn him over to the National Bureau of Investigation (NBI) and the Philippine National Police (PNP). He added he has already submitted a provisional report or a chairman’s report on the issue to Mr. Sotto and Justice Secretary Menardo I. Guevarra.
Mr. Gordon has set the next hearing on Oct. 30. The House of Representatives is also conducting its own inquiry on the controversy.
Confirming Mr. Gordon, Mr. Guevarra said, “Mr. Guban shall also be considered for coverage under the witness protection program (WPP), upon full compliance with all the requirements under the WPP law.”
“The NBI, on the other hand, will conduct further investigation on the basis of the Senate committee report, and file the appropriate complaints as the evidence will warrant,” he added.
FACTORS
Muntinlupa Rep. Rozzano Rufino B. Biazon on Thursday pushed for the modernization of the Bureau of Customs in light of the House hearing on the alleged smuggling of the P6.8-billion worth of illegal drugs.
Mr. Biazon said in a statement the panels’ findings “should now compel the Bureau of Customs to embark on a program to upgrade its capabilities on non-intrusive inspection of cargo using x-ray machines.”
The remarks followed the fourth deliberation by the Committees on Dangerous Drugs and Good Government and Public Accountability on the four magnetic lifters found in Cavite on Aug. 8, allegedly used to contain illegal drugs.
Mr. Biazon cited three factors that have allowed smuggling to continue, particularly in the unsupervised use of the X-ray units, accessibility of data, and difficulty in auditing.
“First is the stand alone system of the x-ray units where only one to two persons are able to view the scanned images, perform image analysis and produce findings of either clear or not clear to release a shipment,” he said.
“Second is the apparent vulnerability of the data collected by the scanning equipment to unauthorized access, copying, download or tampering.”
“The difficulty was admitted by BOC X-ray Inspection Project officer John Mar Morales who said that while it is possible to audit, it is currently difficult for them to do it because of lack of knowledge,” Mr. Biazon also said. — with Vann Marlo M. Villegas and Charmaine A. Tadalan

Dureza, Tulfo appointed special envoys to EU, China


MALACAÑANG on Thursday announced the appointments of Presidential Peace Adviser Jesus G. Dureza and newspaper columnist Ramon T. Tulfo, Jr. as special envoys to the European Union (EU) and the People’s Republic of China, respectively.
Mr. Dureza, according to his appointment paper, will be serving from July 1 to Dec. 31 this year.
Mr. Tulfo is appointed to his new post “for a term of six months.”
President Rodrigo R. Duterte signed their appointment papers on Oct. 23.
In his Philippine Daily Inquirer column on Oct. 6, Mr. Tulfo said he had a “tete-a-tete” with Mr. Duterte.
“The President said he wanted me to help him so I broached the idea of becoming a special envoy to China, which he approved,” he also wrote.
The President also appointed PTV-4’s Palace reporter Raquel R. Tobias, also known as Rocky Ignacio, Undersecretary for Mass Media of the Presidential Communications Operations Office (PCOO). — Arjay L. Balinbin

AFP, PNP to weigh martial law extension

THE ARMED FORCES of the Philippines (AFP) and the Philippine National Police (PNP) are set to begin their assessment of the implementation of martial law in Mindanao next week, according to AFP Chief of Staff Gen. Carlito G. Galvez, Jr.
In a press briefing at the Palace on Thursday, Mr. Galvez said it is too early to decide whether martial law in Mindanao should be extended. “We will just still wait for the assessment, because I don’t want to preempt iyong ating (the) assessment,” he said.
Last Monday, PNP Chief Director-General Oscar D. Albayalde said that if President Rodrigo R. Duterte is “inclined to extend” the martial law, his agency “will support it.”
At the Palace press briefing, Mr. Galvez said: “Next week, we will start the assessment with the visitation of EastMinCom (Eastern Mindanao Command) and the WestMinCom (Western Mindanao Command)….We need to know, we need to assess further, considering that the assessment coming from the AFP should be jointly [done] with the PNP.”
As for the indicators that the extension of martial law could be recommended, he said: “[First] is the threshold ng (of) elections. During elections, for the first time [in] Marawi, there [was] no single violence that happened and there was no failure of elections in all the direct four barangays….The barangay and SK (Sangguniang Kabataan) elections this 2018 is one of the most peaceful. They declared the most peaceful in the sense that there was no declaration again of failure,” Mr. Galvez explained.
He added: “And second…in Davao, I believe we have an increase in the GDP (gross domestic product) of 10, and also in GenSan (General Santos) — 8. So, there is a growing trend in the business sector, especially in Cagayan De Oro, GenSan, and also even in Iligan. There is a commensurate correlational increase of business activity because of the seemingly relative peaceful conditions in the area. Secondly, last week, Archbishop Martin Jumoad — who is one of the very vocal archbishops, who also happened to be the Bishop of Basilan — he also supported the extension of martial law because of the good implementation by the PNP and the AFP.”
He also noted that Senator Sherwin T. Gatchalian and “most of the congressmen living in Mindanao [are] also supporting” the extension of martial law in the area, which is set to expire on Dec. 31.
For its part, the Commission on Human Rights (CHR) said in its Thursday press statement that it “agrees” with Mr. Galvez “that, at this point, it is premature to recommend the extension of martial law.”
“There is a need for a thorough assessment of its effectiveness and a clear response to alleged cases of human rights violations, including the continuing condition of internal displacement in the region,” CHR Spokesperson Jacqueline C. de Guia said.
She added that “there is a need to be cautious of compounding justifications for its extension, considering that a state of national emergency on account of lawless violence was also declared in Mindanao prior to the martial law declaration.” — Arjay L. Balinbin