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PHL e-governance at 71st in report

By Janina C. Lim, Reporter
THE COUNTRY slid four notches in the United Nations’ 2018 E-Governance Development Index survey.
The UN’s recent report, themed “gearing e-government to support transformation towards sustainable and resilient societies,” showed the country slipping from 75th to 71st place in 2016.
Overall, however, the Philippines posted an increase with a higher eGDI score of 0.6512 from 0.5766.
The eGDI is the UN e-Gov Survey component that measures the readiness and capacity of national institutions to use information and communications technologies to deliver public services.
The index computes eGDI based on three subsectors: the Online Service Index, Human Capital Index (HCI) and Telecommunication Infrastructure Index (TII).
The Philippines posted higher scores in OSI (up 0.8819 from 0.6667), which measures the use of ICTs by government in delivering public services at the national level, and in HCI (up 0.7171 from 0.6839), which measures the development of human capital.
However, the country’s score declined in the TII, which determines the status of development of telecom infrastructure. It fell 0.3547 from 0.3791 in 2016.
In the e-participation index (EPI), the Philippines leaped 48 notches — to 19th from the 67th ranking it posted two years ago.
EPI focuses on the use of online services to facilitate provision of information by governments to citizens, interaction with stakeholders and engagement in decision-making processes.
The biennial e-Government Survey is the only global report that assesses the e-government development status of all 193 member-states of the UN.
“It serves as a development tool for countries to learn from each other, identify areas of strength and challenges in e-government and shape their policies and strategies in this area,” the report added.
The UN e-Government Index is one of the competitiveness surveys monitored by the Department of Trade and Industry’s (DTI) Competitiveness Bureau.
For his part, Trade Secretary Ramon M. Lopez said in a statement on Thursday: “We laud our country’s upgrade in the UN e-Participation Index, which measures an economy’s effort to establish online tools on government portals that promote public participation through public consultation and decision-making process.”
He added: “We expect an upward trajectory as we further pursue efforts to promote GovTech (Government Technology) in the Philippines with the passage of the Ease of Doing Business and Efficient Government Service Delivery Act.”
Under Republic Act 11032 or the Ease of Doing Business Act of 2018, a Central Business Portal and Philippine Business Databank will be developed and maintained by the Department of Information and Communications Technology.

PSEi slips as market turns to earnings after GDP

THE MAIN INDEX dropped only slightly on Thursday as traders continued to pin their hopes on positive corporate earnings with economic growth in the second quarter slowing to a three-year low.
The bellwether Philippine Stock Exchange index (PSEi)dropped 0.39% or 30.75 points to close at 7,820.71. Meanwhile, the broader all-shares index climbed 0.15% or 7.21 points to 4,715.82.
The Philippine economy grew 6% in the second quarter, slower than the downward-revised 6.6% GDP growth in the first quarter as well as the 6.7% pace logged in the same period last year.
This was also slower than the 6.8% median estimate in a BusinessWorld poll conducted last week.
Jervin S. de Celis, equity trader at Timson Securities, Inc., said the index’s muted decline was “surprising.”
“The PSEi may not have overreacted to the slower 2Q GDP (gross domestic product) since some of the biggest blue-chip stocks have reported positive earnings. So these companies are weathering the slowing GDP figures and rising inflation rate,” Mr. De Celis said in a mobile message. “Maybe that also provided a cushion for the market to not fall deep…”
Luis A. Limlingan, managing director at Regina Capital Development Corp., noted that despite the disappointing GDP data, “volume was strong enough to limit selling pressure to 60 to 70 points lower throughout, until eventually paring losses down to just 30.75 points.”
Thursday’s close also reflected investors’ anticipation of the policy meeting of the Bangko Sentral ng Pilipinas (BSP), which could further affect Friday’s trading.
After the market’s close, the BSP announced that it decided to hike interest rates by 50 basis points (bp) effective Friday, August 10.
The decision was within market expectations and marks the third time the BSP raised policy rates this year after two 25-bp increases each in May and June to tame inflation.
Most counters ended in negative territory Thursday, August 9. Holding firms shed 0.43% or 33.97 points to 7,742.15; financials fell 0.37% or 7.03 points to 1,855.65; mining and oil dropped 0.37% or 38.44 points to 10,251.89; and services slid 0.13% or 2.05 points to 1,538.46.
Meanwhile, industrials jumped 0.31% or 34.79 points to 11,159.88 and property rose 0.08% or 3.15 points to 3,891.74.
Value turnover fell to P6.33 billion Thursday, August 9, from Wednesday’s P8.64 billion as 1.13 billion issues switched hands.
Foreigners extended their buying for a second consecutive day, even as net purchases slid slightly to P322.97 million on Thursday from the P325.87 million on Wednesday.
Losers outnumbered advancers, 121 to 90, while 34 issues were unchanged. — J.C. Lim

Peso slips on slower GDP growth

THE PESO slipped against the dollar on Thursday following data showing slower-than-expected Philippine economic growth in the second quarter and ahead of the central bank’s move to raise interest rates anew.
The local unit ended Thursday’s session at P53.09 versus the greenback, two centavos weaker than the P53.07-per-dollar finish on Wednesday.
The peso opened Thursday’s session slightly stronger at P53.055 against the dollar. It logged an intraday low of P53.185, while its best showing for the day stood at P53.05 versus the greenback.
Dollars traded slid to $682.1 million from the $721.15 million that exchanged hands the previous day.
A foreign exchange trader said the peso traded “wildly” following the release of the second-quarter gross domestic product (GDP) growth data.
“Although Thursday’s close was near the previous close, the dollar-peso traded wildly intraday after the GDP growth figure missed market expectations,” the trader said in a phone interview.
The Philippine economy grew 6% in the second quarter, slower than the downward-revised 6.6% GDP growth in the first quarter as well as the 6.7% pace logged in the same period last year. This was also slower than the 6.8% median estimate in a BusinessWorld poll conducted last week.
This brought the first-half print to 6.3%, below the government’s 7-8% target band for 2018.
Socioeconomic Planning Secretary Ernesto M. Pernia partly attributed the slower GDP growth to the “prudent and judicious policy decisions to promote sustainable development” such as the closure of the Boracay island as well as regulation of mining activities.
“The slower-than-expected [second-quarter] GDP print has rendered the peso weaker as the actual totally missed market and government forecasts,” UnionBank of the Philippines chief economist Ruben Carlo O. Asuncion said in a text message.
The trader added that the peso-dollar pair might consolidate on Friday following the decision of the Bangko Sentral ng Pilipinas (BSP) to tighten policy rates anew.
At the market’s close, the central bank announced that it decided to raise its interest rates by 50 basis points (bp) at Thursday’s review to temper inflation expectations, stronger than the 25-bp hikes announced in May and June.
“Upside risks also continue to dominate the inflation outlook, as the sustained increase in core inflation suggests broadening price pressures amid resilient aggregate demand conditions,” the BSP’s Monetary Board said.
BSP’s benchmark rates now stand within a 3.5-4.5% range.
“The movement of the peso might be tricky [on Friday] because some players might react to the 50-basis-point hike, although it was factored in already the past few trading sessions,” the trader said.
Meanwhile, Mr. Asuncion said the BSP’s policy tightening will be “positive” for the peso.
For Friday, Mr. Asuncion sees the peso moving between P52.80 and P53 versus the dollar, while the trader gave a P53-P53.20 range. — Karl Angelo N. Vidal

Funds released for pension arrears for AFP, PNP retirees

By Elijah Joseph C. Tubayan, Reporter
THE Department of Budget and Management (DBM) in a statement Thursday, Aug. 9, said it has released the pension differential arrearages for retirees of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP).
DBM said it has released P532.54 million for 4,392 AFP retirees, covering the period July 2008 to February 2013.
The agency also released P267.82 million for 13,157 PNP retirees covering the period July to December 2009.
The releases are chargeable against the pension and gratuity fund of the 2018 budget.
“Notably, part of the computed pension differential claims refer to the 36-month lump sum provided to retirees once they retire at age 56, or completed at least 20 years of military service, covering the period 2008 to 2013,” the DBM said in its statement, adding:
“This is pursuant to Section 17 of Presidential Decree (PD) No. 1638 dated September 10, 1979, which states that at the option of the retiree, he shall be entitled in advance and in lump sum a retirement gratuity equivalent to the first three years and thereafter receive his monthly pension.”
The government is seeking to reform the pension of uniformed personnel and make them contributory, as the pension payouts are starting to take a toll on the country’s fiscal position.
The government has to pay P33 billion to AFP and PNP retirees by 2019. This is expected to double in eight years, as pensions are indexed to any increases in the salaries of those in active service.
President Rodrigo R. Duterte signed in January a resolution to increase, even double, the salaries of uniformed personnel.
Budget Secretary Benjamin E. Diokno has said the government is crafting a pension scheme and will submit a proposal to Congress before September.
This will involve the creation of a new separate pension fund to be managed by the Government Service Insurance System, where new recruits will start to contribute to the pension fund, while existing pensioners will continue to enjoy the current scheme.

Analysts: LP still stands a chance in Duterte’s milieu

Dr. Perlita M. Frago-Marasigan — HTTP://POLISCI.UPD.EDU.PH/

ANALYSTS were sought for comment to assess the opposition Liberal Party’s (LP) standing, amid the political milieu currently dominated by President Rodrigo R. Duterte, and ahead of the crossroads that is next year’s midterm elections.
Dr. Perlita M. Frago-Marasigan, UP political science assistant professor, said she no longer sees the party as the “strong contender” it used to be.
“Aside from the fact that most mainstream political parties in the Philippines are generally weak and are said to be mere alliances of convenience, the LP also has to come up with a better slogan and more concrete and better policy actions and decisions vis-a-vis the PDP-Laban,” Ms. Marasigan told BusinessWorld in a phone message, Wednesday.
She, however, noted the LP still stands a chance if it brings more focus on ongoing issues rather than personalities.
“More pragmatically, if the LP will offer alternative programs within this administration’s governance framework. But of course, a lot can happen between now and the 2019 mid-term elections,” Ms. Marasigan said.
Also sought for comment, University of the Philippines (UP) law professor Antonio G. La Viña told BusinessWorld in a phone interview Saturday: “They’ll have to wait for a change of government before lumipat na naman sa kanila (before [their former allies] transfer back to them). Hopefully, they use their time and power to strengthen the party.”
He added: “LP is an old party, but even if they’re few…they’ll have influence. But no party has influence unless it’s the party of the president.”
Also sought for comment, Rep. Romero S. Quimbo said the LP’s strength is not determined by the numbers, but by its ideology.
“LP’s strength has never been about numbers. LP is constantly rebuilding and re-tweaking its methods; But it can never compromise on its principles and platform,” Mr. Quimbo told BusinessWorld in a phone message Wednesday.
He said even during the administration of President Benigno S.C. Aquino III, the LP “remained conscious not to increase membership merely for the sake of numbers.”
The party was formed in the immediate postwar era and was catapulted to power by the election of its leader, Manuel A. Roxas. The party has been in and out of the public favor in the course of its history, but also became associated with such causes as the struggle against the Marcos dictatorship.
WOMEN LEADERS
In the current milieu, the party has been overshadowed in recent senatorial polls by Mr. Duterte’s allies, and also by his daughter, Davao City Mayor Sara Duterte-Carpio. Analysts see her as a “kingmaker” in the light of last month’s power struggle in the House of Representatives, which led to the political revival of its new Speaker, former Philippine president Gloria Macapagal-Arroyo.
“Mayor Duterte’s alleged political maneuvers behind the ‘return to power’ of former president GMA demonstrates how (Mayor) Duterte can be a cunning political force to contend with,” Ms. Marasigan said.
“First daughters, after all, can be strong political forces provided that they have the skills. And we have seen such skills in Mayor Sara Duterte,” she added.
On the other hand, Vice-President and LP’s chairperson Maria Leonor G. Robredo’s “gentle manners and soft features belie the social activist inside,” which Ms. Marasigan notes “when used skillfully, can prove (to be) fatal to any powerful man.”
Ms. Robredo has maintained a considerable position in recent surveys, particularly among what is called the Class E. The political outsider, going by updates her office has been sending the media, has been going around the country for outreach activities under her Angat Buhay program.
“While VP Robredo’s Angat Buhay vows to make a difference in the lives of people at the margins through doleouts, this strategy appears mainstream,” Ms. Marasigan said. “As expected, Mayor Duterte’s Tapang at Malasakit Alliance is trying to reignite the flame that propelled the president into power.”
“The said alliance promises to stay the course by continuing the campaign core values of her father’s campaign. This, she said, can only happen if the communities will accentuate the positive (“volunteerism”) and let go of the negative (“politicking”),” she added. — Charmaine A. Tadalan

House rejects cash-based funding, stalling 2019 budget

THE House of Representatives is planning to recall the budget reform bill for review amid fears that a shift to a cash-based budgeting system will reduce government funding overall, appropriations committee chair and Davao City Rep. Karlo Alexei B. Nograles said.
The recall also introduces an element of uncertainty to the ongoing deliberations for the 2019 budget, which will be the first to adopt a cash-based system.
“After the caucus yesterday, the members of the House of Representatives agreed to sign a resolution seeking the recall of the budget reform bill we approved,” Mr. Nograles told reporters.
He added that support for the resolution crossed party lines, with the majority, minority and independent blocs of the chamber signing off on the resolution.
The budget reform bill introduces a shift in budgeting from a two-year obligation-based budget to an annual cash-based budget. It requires appropriations to be utilized within the year.
The House version of the bill passed on third and final reading in March. The Senate version was read to the plenary in March by Senator Loren B. Legarda, who chairs the Senate committee on finance. It was identified as a priority bill by the Legislative Executive Development Advisory Council (LEDAC).
The 2019 national budget was set at P3.757 trillion, slightly lower than the P3.767 trillion programmed for this year.
Mr. Nograles said the proposal to withdraw the bill means the chamber also in effect opposes the cash-based 2019 proposed national budget.
He said the chamber had second thoughts about the cash-based budgeting system because the “use it or lose it” funding arrangements may end up reducing funding for government projects and agencies.
“Members of the House are concerned because even at the committee level until the plenary level, it was not explained well that this will be the implication of the bill. We understood that it was a good concept because the implementation and turnover of projects will be fast-tracked,” he said.
“It was never discussed and finalized that the effect of the budget reform bill would be slash, slash, slash, which is opposite to Build, Build, Build,” he added.
He added that a cash-based system for 2019 may be illegal due to the lack of an enabling law.
He said the House of Representatives may amend the general provisions of the National Expenditure Program and revert to an obligation-based system. Mr. Nograles plans to meet with the Department of Budget and Management to discuss funding levels for government agencies.
“We’ll throw the problem back to the DBM… So now, the House is saying we don’t want the cash-based budgeting. We want it obligation-based,” he said.
Ms. Legarda and Budget Secretary Benjamin E. Diokno had not responded to requests for comment at deadline time. — Camille Aguinaldo

LANDBANK reduces offer for PDS Holdings

THE LAND BANK of the Philippines (LANDBANK) will lower its share purchase offer to stakeholders of the Philippine Dealing System Holdings Corp. after the operator fixed-income bourse declared dividends in June.
LANDBANK President and Chief Executive Officer Alex V. Buenaventura said that the bank will revise its share purchase offer to shareholders who initially accepted its P360 per share offer.
“End of next week it will be our response to their acceptance letter. The P360 per share offer was based on four months ago, so at that time they have not yet declared P600 million in dividends,” Mr. Buenaventura told reporters on the sidelines of the bank’s client recognition program late Wednesday.
He added that the bank has yet to arrive at a new offer price.
He said the dividend declaration on June 28 effectively lowered the value of PDS Holdings.
“When you make an offer it’s based on the net asset value of the PDS. We made the P360 offer to buy based on the net asset value prior to their declaration of the dividend,” Mr. Buenaventura said.
“What we are buying now is P600 million less than the net asset value, (so we need) to set a revised purchase offer,” he said.
Mr. Buenaventura said that shareholders representing 43% of PDS Holdings have accepted the initial offers.
He said LANDBANK remains committed to taking a majority of the bond exchange operator.
“We are still going for 67%,” Mr. Buenaventura said.
LANDBANK started to send out buyout offers to PDS Holdings shareholders in March amid plans of the Philippine Stock Exchange (PSE) to do the same.
Although the PSE’s planned merger with the PDS Holdings was in the advanced stages — obtaining acceptances from up to 72% of shareholders — it failed to obtain exemptive relief from regulators to waive the 20% single-industry ownership limit.
The application was rejected because the PSE did not meet a requirement to dilute broker ownership in the equities exchange to less than 20%.
Talks for the merger started in 2013, and the share purchase agreements with PDS Holdings shareholders expired in March.
LANDBANK then stepped in as an acquirer, hoping to expedite the development of the capital markets. Mr. Buenaventura has said that the PSE was among those that indicated interest to sell its PDS Holdings shares.
LANDBANK’s net profit in the first quarter grew 52% to P4.26 billion. — Elijah Joseph C. Tubayan

Bill puts foreign contractors on equal footing in public works bidding

SENATOR Sherwin T. Gatchalian has filed a bill seeking to amend the 78-year-old Commonwealth Act No. 541 in order to lift restrictions on foreign contractors seeking to bid on domestically-funded government public works projects.
Filed on Aug. 2, Senate Bill No. 1907 removes the provisions in CA No. 541, which gives preference to Filipino or US contractors, and provides for “equal opportunity” in the awarding or negotiation of contracts to qualified Filipino or foreign contractors.
“All branches, offices, and subdivisions of the Government and all government-owned or controlled companies, authorized to contract and make disbursements for the construction or repair of locally-funded public works, including the construction of defense-related structures, shall extend equal opportunities in awarding or negotiating contract for such works to eligible and qualified Filipino and foreign contractors,” the bill reads.
The 10th Foreign Investments Negative List (FINL) issued in 2015 provides for a maximum of 25% foreign equity for contractors awarded domestically-funded public works projects. Foreign firms have had to resort to joint ventures with Filipino-owned companies in order to take on infrastructure projects.
Mr. Gatchalian, who chairs the Senate committee on economic affairs, said the proposed measure is needed to deliver the infrastructure “that will support the country’s initiatives in providing a business climate conducive to investments in the country.”
“This amendment is timely and very much needed given that the current thrust of the government is infrastructure development via the Build, Build, Build Program,” the senator said in a statement.
He said the bill also seeks to attract new investment and to introduce more competition in the construction industry.
“The lack of genuine competition in the public construction industry impairs public welfare as there are fewer incentives for existing domestic firms to innovate and puts at risk the delivery of reliable, safety-compliant and quality public works,” Mr. Gatchalian said. — Camille A. Aguinaldo

Smuggling alert raised for rice, sugar amid tight supply

THE Bureau of Customs (BoC) has been ordered to be on the lookout for rice and sugar smuggling, with importers expected to exploit market shortages.
“Finance Secretary Carlos [G.] Dominguez III has ordered the Bureau of Customs to keep a closer watch over the entry of ‘hot’ rice and sugar and speed up the auction of seized stocks amid the current supply and price issues concerning these prime commodities,” the Department of Finance (DoF) said in a statement on Thursday.
“Mr. Dominguez said the BoC should keep tabs on the smuggling of these commodities, given the currently tight domestic supply of both rice and sugar,” which might attract smugglers, it said.
Mr. Dominguez has said that supply issues have been contributing to rising inflation, which hit 5.7% in July.
Customs Commissioner Isidro S. Lapeña said that the agency held a public auction on July 17 for 75,000 sacks of smuggled rice.
It also auctioned on July 18 another 25,000 sacks, with the two auctions generating P177.9 million.
“The amount shall be held in escrow pending final resolution of seizure and abandonment proceedings,” Mr. Lapeña was quoted in a statement as saying.
Mr. Lapeña said the BoC excluded the importer from the public auction.
Apart from rice and sugar, Mr. Dominguez also ordered a similar watch on inbound shipments of fuel, steel, cigarettes, chicken, onions, and garlic, following multiple smuggling attempts detected at various ports. — Elijah Joseph C. Tubayan

Trade dep’t drafting direct-importation plan for sugar

THE Department of Trade and Industry (DTI) said it is setting in motion a plan that will facilitate direct sugar imports by users of the commodity, as a means of cutting out middlemen and reducing prices.
“We are discussing how to execute it. We hope to conduct expedited consultations. We hope to have a policy within a month,” Trade Secretary Ramon M. Lopez told reporters in Pasay City on Thursday.
Mr. Lopez has said that inflation drivers include supply pressures for key commodities like sugar, and views the liberalization of the import process as a means of arresting the rapid increase in prices.
He added that there is a “general acceptance” among economic managers for the need to change the current system to allow sugar users to import, thereby making the supply chain more direct.
“The principle is that (the final scheme) should result in lower costs for imported sugar,” Mr. Lopez added.
Sugar import permits are currently coursed through planters’ associations and traders, a process that Mr. Lopez criticized as imposing additional costs, to the detriment of consumers.
“The system in place now limits it to selected parties, and a fee needs to be paid to planters and millers. I do not understand that,” Mr. Lopez added.
The DTI is proposing a parallel liberalization of sugar importation in exchange for higher tariffs, similar to the system being proposed for rice.
Mr. Lopez said the plan will not result in an influx of cheap sugar and that measures will be in place to protect farmers.
“We will probably devise a system… so prices will not fall too much, to the detriment of the farmers,” Mr. Lopez added. — Janina C. Lim

Call to boost cybersecurity in the Philippines

The Philippines needs to do more to guard against cyberattack, according to a new report, though the private and public sectors are moving to reduce risks and bolster security systems.
The Philippines could sustain up to $3.5 billion of direct, indirect and induced losses from breaches to cybersecurity, according to the “Understanding the Cybersecurity Threat Landscape in Asia Pacific: Securing the Modern Enterprise in a Digital World” report released in May by research and consulting firm Frost & Sullivan.
The study, which was commissioned by Microsoft and surveyed 1,300 business and IT decision-makers from 13 markets within the region, found that while 52% of companies in the Philippines had either experienced or suspected a cyberattack, 79% of firms had already deployed or were actively looking to deploy artificial intelligence to counter security breaches.
In the past the Philippines underspent on cybersecurity, making it a relatively soft target in the ASEAN region, Ernesto Alberto, executive vice-president and chief revenue officer of telecommunications firm PLDT, Inc., and CEO of its digital solutions subsidiary ePLDT, told OBG.
In 2017 the country spent 0.04% of its GDP on cybersecurity, compared to the ASEAN annual average of 0.07%, according to a report by AT Kearney.
However, risk awareness is growing, as evidenced by the increasing number of defensive measures initiated by the public and private sectors.
“As one of the principal cyberattacked countries internationally, significant resources and building capability have already been invested to help enterprises address cybersecurity and protect against these attacks, which include hacks, security malwares and viruses,” Alberto told OBG.
CLOUD COMPUTING GROWING AMONG BUSINESSES
One solution to cyberthreats is cloud computing, which is increasing in popularity, with a growing number of public and private organizations moving to adopt a cloud-first policy.
“As become more sophisticated, organizations need to know that it will be safer to use the cloud as opposed to relying on traditional forms of IT,” Hans Bayaborda, managing director of Microsoft Philippines, told OBG.
This shift in perception has been bolstered by government initiatives, particularly with the launch of GovCloud – an online portal for information, transactions and services – by the Department of Information Communication Technology (DICT) in 2013.
More recent efforts towards cloud computing fall under the government’s broader National Cybersecurity Plan 2020, launched in 2017, which aims to reduce risks through a four-pronged approach, including the protection of critical information infrastructure, government networks, supply chains and individuals.
EU DATA PROTECTION LAW TO AFFECT MULTIPLE SECTORS
In the private sphere, the importance of upgrading cybersecurity is paramount for Philippine companies that trade or provide services to the EU following recent changes to the union’s data protection law.
Introduced at the end of May the General Data Protection Regulation (GDPR) requires organizations dealing with EU citizens to reassess their data-processing customs and set up safeguards that meet the standards set by the regulation.
As the GDPR is applicable to all companies that do business in or with the EU, the Philippines is required to meet the new data protection standards. Failure to comply may result in a fiscal penalty and a potential ban from trading within the EU.
Sectors that could be affected by the GDPR compliance requirements include retail, tourism, health care and financial services, according to a recent study by cybersecurity solutions firm Forient.
BENEFITS OF STRICTER EU REGULATIONS
While the GDPR could create compliance hurdles for Philippine companies and agencies, it may also provide opportunities. Organizations that meet the regulatory requirements could promote their compliance as a feature of their services, making them more attractive to consumers or clients from the EU.
To achieve this, local firms will need to step up investments in cybersecurity to boost their business credentials. The Frost & Sullivan report found that only 25% of Filipino respondents viewed higher levels of spending on cybersecurity as a business differentiator.
The upgraded EU rules could also have a flow-on effect for the Philippines, prompting regulators to strengthen the country’s own compliance requirements. If so, this would create further opportunities for service providers, with an increase in demand for cybersecurity products and technology.
 
This Philippines economic update was produced by Oxford Business Group.

Celdran and the victory of the First Freedom

The Resolution released last week by the Supreme Court was simple enough: reaffirming both the trial court’s and the Court of Appeals’ decision and resolution of criminal guilt, conviction, and imprisonment in Carlos Celdran vs. People of the Philippines. The four-page document didn’t even bother with further explanations, except to point out that: “We agree with the CA in its findings that the acts of petitioner were meant to mock, insult, and ridicule those clergy whose beliefs and principles were diametrically opposed to his own.”
Frankly, it was a good ruling. And a good victory for religious freedom.
As the Court of Appeals pointed out (and affirmed by the Supreme Court): “Primarily, it should be borne in mind that religious freedom, although not unlimited, is a fundamental personal right and liberty, and has a preferred position in the hierarchy of values. It has been said that the religious clauses of the Constitution are all designed to protect the broadest possible liberty of conscience, to allow each man to believe as his conscience directs, to profess his beliefs, and to live as he believes he ought to live, consistent with the liberty of others and with the common good.”
Of course, there are the usual pseudo-sophisticates: inanely arguing that Article 133 of the Revised Penal Code is “antiquated” for being from the “Spanish-era.” Know what’s equally as old? The US Bill of Rights (from which we patterned our Article III), which came into effect in 1791.
But isn’t Article 133 unconstitutional for conflicting with free speech? Such, however, ignores basic constitutional law: the right to free speech is not absolute. One cannot libel or slander people, commit vandalism to express opinions, display obscenities, falsely shout “fire” in crowded places. The point here is not to stifle dissent or contrasting ideas but to restrain speech that deliberately is meant to sow hate, violence, or intolerance.
What Article 133 does is simply acknowledge the fact that there are some things people feel strongly about. Hence, why crimes committed in another’s house or murdering one’s own family members, or assaulting teachers or public officials, have higher penalties. Considering today’s fears of terrorism, one can go to jail just by making a joke about bombs while inside an airport (there’s the content-based argument for you). That is why the Civil Code has a provision restraining rich people from flaunting their wealth in times of public want (see Article 25).
Then there are people who argue that free speech shouldn’t come with restrictions. Such argument, again however, inanely disregards reality. And also quite hypocritical: I bet that any person who argues that, if confronted with someone who joins their family party and starts insulting them, causes a ruckus, makes them look silly in front of the cameras, and then posts pictures and smugly boasts about it in the internet, would not hesitate to have the law fully enforced.
The other argument employed is why should religion be given distinct protection? If an Imam, it is argued, enters a gathering of atheists, disrupt proceedings, then why would that not be considered a crime? Actually, it is. On the top of my head, it could constitute qualified trespass, tumults, alarms, unjust vexation, or violating the right to peaceful assembly.
Yet, as correctly declared by the Court of Appeals: “There is a reasonable distinction between those who have a religion and those who do not.”
And indeed religious freedom has a “preferred position in the hierarchy of values.” It is called the First Freedom, not only because it’s the first right mentioned in the first article of the US Bill of Rights (i.e., the First Amendment), but because everything essentially flows from this one right.
In fact, freedom of speech was supposed to help in ensuring the freedom of religion rather than hinder it.
As pointed out by Princeton’s Robert George: “Rights are not abstractions. They protect human goods … [and] religion is another irreducible element of the basic human good. Religion is also important to the human good because it shapes how one pursues other human goods, and people order their lives according to religious judgments about religious truths.”
Religion is given such protection because it is so fundamental, an inherent and self-evident inclination of people, that the right to religion is considered a primary human right that must be respected. Hence, this right to religious freedom is protected, not only by our Constitution, but also by international instruments such as the UN Declaration on Human Rights, the International Covenant on Civil and Political Rights, and the Declaration on the Elimination of All Forms of Intolerance and Discrimination Based on Religion or Belief.
Ultimately, a people that do not care for religious freedom won’t care much about anything else at all. And while we do need to put up tolerance for sloppy thinking in the public square, none need be given for the bully or hateful.
 
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.
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