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BCDA seeking proposals for New Clark City golf course

THE Bases Conversion Development Authority (BCDA) has requested proposals for the development of a 250-hectare golf course for New Clark City (NCC) in Central Luzon.
“The subject of the competitive challenge is the… long-term lease and development of the 18-hole Golf course, clubhouse, and a 5-hectare Park Development (Phase 1 development)…” the BCDA said in a bid notice published in a newspaper on Monday.
Interested parties can now purchase the terms of reference.
The pre-bid conference is set for July 25 while the submission of the eligibility documents is Aug. 15, it said.
South Korean-owned Widus International Leisure Inc., the operator of the Marriot hotel in Clark, Pampanga, has expressed an interest in developing a 250-hectare golf course in New Clark City.
The government has been positioning NCC as a possible solution to decongesting Metro Manila.
One of the major projects of the BCDA, the city host the National Government Administrative Center for backup offices of certain government agencies to ensure continuous operations and services in case of disaster or natural calamity. — Janina C. Lim

PEZA, DoF question expanded powers for Bataan freeport

THE Philippine Economic Zone Authority (PEZA) and the Department of Finance (DoF) on Monday expressed reservations about Senate and House bills seeking to expand the powers and function of the Authority of the Freeport Area of Bataan (AFAB).
Senate Bill No. 1747, introduced by Senator Richard J. Gordon, seeks to expand the territory of the Freeport Area of Bataan (FAB) to include land and water areas in Mariveles, Bataan not covered in the FAB main zone. Its counterpart measure in the House of Representatives, House Bill No. 6524, was approved on third and final reading.
The proposed bill will give the AFAB the power to impose its own conditions on the administration, implementation and monitoring of fiscal incentives to registered enterprises operating within the economic zone. AFAB itself will also be exempted from payment of all national and local taxes. The economic zone will also be given authority to grant income tax holiday and net operating loss carry over.
During the Senate hearing on the proposed measures, PEZA legislative liaison officer Francis James Brillantes said the proposed amendments to Republic Act No. 9728 or the Freeport Area of Bataan (FAB) Act of 2009 duplicate PEZA’s functions.
“On behalf of PEZA, our stance is that we believe there is no longer need for legislation because the current proposed expansion of AFAB territory and jurisdiction can already be performed under the mandates and charter of PEZA,” he said.
He said AFAB should work through PEZA on national and local initiative to promote investment as the current proposal will mean more costs for the government.
AFAB chairman and administrator Emmanuel D. Pineda said the Bataan economic zone needs the expanded powers due to its secluded location, which he said raised difficulties in attracting investors.
“It would be hard for investors to consider Bataan (because) it’s at the end of the road. We don’t have seaport or an airport,” he said.
Department of Finance (DoF) Research and Information Office Director IV Juvy C. Danofrata opposed the provisions granting tax exemptions to the AFAB. She said it will raise policy issues since similar government-owned and controlled corporations (GOCCs) do not have that kind of tax exemption.
“With respect to the tax treatment of other government entities, what would prevent IPAs (investment promotion agencies) from clamoring for the same tax exemption as well?” she said.
Ms. Danofrata also said the proposed measures also run counter to package 2 of the tax reform law, which aims to rationalize the fiscal incentives regime. — Camille A. Aguinaldo

‘Third player’ won’t be burdened by 2G legacy systems — DICT

THE Department of Information and Communications Technology (DICT) said that the third entrant into the telecommunications industry will have an advantage over the incumbents because it will not be burdened with legacy systems.
It said unlike PLDT, Inc. and Globe Telecom, Inc. the “third player” will immediately be able to offer third generation (3G) and fourth generation (4G) services, with no need to maintain 2G systems, which are being phased out across the region.
DICT acting secretary Eliseo M. Rio, Jr. said that the third player does not need 2G infrastructure.
“2G has actually been phased out in countries like Singapore, South Korea… Globe and Smart still serve the 2G market, but the third player can immediately enter and offer 3G and 4G,” Mr. Rio said in a phone interview.
He said however that for the long term, 2G frequencies will be part of the planned reallocation or re-farming of frequencies.
“But we are coming up with policies for the equitable distribution of frequencies which include frequency re-farming to include 2G frequencies,” Mr. Rio said.
The Philippine Competition Commission (PCC) has said that the third player will have to be allocated more 2G frequency to be able to serve the 2G market, with many Filipinos still using non-smartphones.
Around 300 megahertz (MHz) is available to the third player, including third generation (3G) and fourth generation (4G) spectrum. The government however has to decide on how these will be allocated — whether through an awarding without a fee or through an auction. The DICT supports awarding while the Department of Finance (DoF), a member of the oversight committee for third-player selection, is pushing for an auction.
The DICT wants to refarm frequency to ensure long-term equitable allocation. Mr. Rio however has said that legislation might be needed if the incumbents are not to sue.
A allocation bill has been filed in the Senate. Senate Bill 1742 (“An Act Providing for the Allocation and Management of the Radio Frequency Spectrum”) proposes the division of usable spectrum into sufficient blocks to ensure adequate competition, and a competitive bidding process for frequency assignment.
The DICT aims to select the third player within the year.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Don’t miss the de minimis

It has been more than six months since Republic Act (RA) No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, was passed. One of the major banners of the TRAIN law is to increase employee take-home pay. While the law has taken effect, however, many are of the view that it is anti-poor.
The TRAIN Law slashed personal income tax rates, but raised excise taxes imposed on fuels, sweetened beverages, and motor vehicles. The provisions on increased excise taxes arguably caused consumer prices to go up, corroding the workers’ purchasing power. Critics of the TRAIN Law argue that this increase neutralizes the effect of the reduction in personal income taxes.
Thus, taxpayers should evaluate if there are other tax law exemptions that could be used to further increase their take-home pay.
So, how about revisiting the employees’ nontaxable portion of their compensation: the de minimis benefits?
Under Section 2.79(D)(3)(b) of Revenue Regulations (RR) No. 02-98, as amended, de minimis benefits are facilities or privileges given or offered by an employer to its employees, provided such facilities or privileges are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency of its employees.
De minimis benefits are not subject to income tax as well as to withholding tax on compensation income of both managerial and rank-and-file employees. When given to employees, no deduction for taxes will be made by the employer; thus, the employee profits from the whole amount of the benefit.
Under RR No. 02-98, as amended by RR Nos. 05-11, 01-15, and 11-18, the following are considered de minimis benefits for private employees:
a. Monetized unused vacation leave credits of private employees not exceeding 10 days during the year;
b. Medical cash allowance to dependents of employees, not exceeding P1,500 per employee per semester or P250 per month;
c. Rice subsidy of P2,000 or one 50-kg sack of rice per month worth not more than P2,000;
d. Uniforms and clothing allowance not exceeding P6,000 per annum;
e. Actual medical assistance not exceeding P10,000 per annum;
f. Laundry allowance not exceeding P300 per month;
g. Employees’ achievement awards, which must be in the form of tangible personal property other than cash or gift certificates, with an annual monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;
h. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee per annum;
i. Daily meal allowance for overtime work and night/graveyard shift not exceeding 25% of the basic minimum wage; and
j. Benefits received by an employee by virtue of a Collective Bargaining Agreement (CBA) and productivity incentive schemes, provided the total annual monetary value received from both CBA and productivity incentive schemes combined do not exceed P10,000 per employee per taxable year.
The implementing rules of the TRAIN Law increased certain benefits on the list. The medical cash allowance increased from P750 to P1,500 per semester; the rice subsidy increased from P1,500 to P2,000 per month; and the clothing allowance was increased from P4,000 to P6,000 per annum.
It is also worth mentioning that any amount of de minimis benefits in excess of the threshold can still be exempt as “other benefits,” together with the employees’ 13th month pay, but not to exceed P90,000. Thus, providing de minimis benefits can also be a way of fully exhausting the P90,000 tax exemption.
When planning for their employees’ salary increases, employers may want to consider the nontaxable de minimis benefits listed above in lieu of salary increases. Of course, the decision has to be related to the effect on the employees’ amount of basic pay, which is also used as a reference for other computations of employee benefits.
The effects of the TRAIN law are debatable. While some are positive about the provisions of the law reducing the income taxes of individuals, others criticize the increased excise taxes that arguably caused an increase in the prices of commodities. Legislators and civil society groups are now calling for the review of the TRAIN Law due to its supposed negative impact on prices. While the debates and conversations are ongoing, taxpayers should stay informed of the other exemptions available to them, which may help manage the current situation we are in.
 
John Paulo D. Garcia is a senior of the Tax Advisory and Compliance of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing services firms in the Philippines.

Senators give their assessment of Duterte’s second year in office

By Camille A. Aguinaldo
Senators on Monday assessed the second year of President Rodrigo R. Duterte, acknowledging the gains achieved in his fight against criminality but also flagging the economic policies which remained lacking.
Senate President Vicente C. Sotto III gave the President a grade of A, citing the efforts made in the country’s peace and order situation.
“I will give him an A for effort and sincerity in fighting illegal drugs and criminality. His weakest point is not being in good terms with the media,” he said in a text message to reporters.
Senator Joseph Victor G. Ejercito also noted the improvement of the Duterte administration’s policies on illegal drugs. But he said the administration needed to fast-track its infrastructure programs.
“I would want to focus and monitor and push the infrastructure development which is essential to genuine economic growth under the Duterte administration,” he said.
However, Senator Panfilo M. Lacson said Mr. Duterte’s top advisers needed to reassess their strategies not only on their fight against crime and corruption but also in economic issues as well.
“After two years, it may be wise and prudent for his top advisers to go back to the drawing board and reassess what they did wrong and what they are doing right, not only in the fight against crime and corruption, which is the centerpiece of the Duterte administration’s deliverables, but in the economic sector as well,” he said in a statement.
Mr. Lacson pointed out that the administration’s strategy in the peace and order situation remained “short on prevention” and focused on crime suppression. He said prevention should be prioritized while crimes that cannot be prevented should be supressed “with solid solution thorugh efficient investigative work and techniques.”
The senator stressed that the tax reform law needed to be revisited and amendment. He also asked the President to stand up against the personal interests of the members of Congress, especially in the enforcement of the outlaw of the pork barrel fund.
“On the revenue side, the TRAIN law needs to be revisited and amended, and the President, with all his strong influence over Congress, must put his foot down on vested interests of some members of both houses,” he said.
“On the expenditure side, a.k.a. the General Appropriations Act, the same influence is suggested to minimize wastage of the government’s hard-earned resources by strictly adhering to the existing jurisprudence outlawing pork barrel, which is still evident among selected members of Congress, a few of whom enjoyed as high as nine-figure insertions during the last two budget years under the Duterte administration,” he added.

Wanted: A detailed data of city poverty incidence

Poverty incidence monitoring is an important metric of local government performance.
The Philippine Statistics Authority (PSA) has done well in disaggregating poverty incidence by province since 2006. Based on the data, one can track which provinces performed well.
However, there is room for improvement. There is a critical need for more “granularity” or level of detail. Highly urbanized cities with their low poverty incidences mask the performance of the provinces.
PSA is now conducting the 2018 Family Income and Expenditure Survey (FIES), which is done every three years. FIES is the basis for computing poverty incidence.
In 2015, heavily urbanized cities’ poverty incidences were lumped with provinces. Only two cities had separate poverty incidence: Cotabato City at 31.6%, and Isabela City in Basilan, 25.1%.
In 2015, the poverty incidence of NCR was 3.9% with urban population share of 28%. Thus, the rest of urban areas (72%) was estimated to have urban poverty incidence of 14.5% based on national urban poverty incidence of 11.5%.
The heavily urbanized cities include: Baguio, Puerto Princesa, Iloilo, Bacolod, Cebu, Cagayan de Oro, Zamboanga, General Santos, and Davao.

ANALYSIS
Take Benguet province with a poverty incidence of 3.5%. Baguio is a highly urbanized city and comprised 44% of the total area population in 2015. If Baguio had 5% poverty incidence, then Benguet province would have poverty incidence of only 1.9%. Is that possible?
The whole of Cebu had a poverty incidence of 21.4%. Assuming Cebu City had a poverty incidence of 10%, the province would have a poverty incidence of 24.3%. The provincial poverty rate is more than double the city’s poverty rate.
Misamis Oriental had a poverty incidence of 19.3%. Assuming a 10% poverty incidence for Cagayan de Oro, the poverty incidence of the province will be 26.%. This is more than twice the city poverty incidence.
Zamboanga del Sur had a poverty incidence of 24.8%. Zamboanga City had a population nearly the size of the province. Assuming that the city, physically separated by 270 kilometers by road, had a poverty incidence of 15%, then the provincial poverty incidence would be 33%. This is more than two times the city poverty incidence.
South Cotabato had a poverty incidence of 24.6%. Assuming a 10% poverty incidence for General Santos, then the poverty incidence of the province would be 33.9%, triple the city’s poverty incidence.
Davao del Sur which included Davao City had poverty incidence of 15.6%. The city with more than 2.5 times the population of Davao del Sur is a service and processing center. The latter is heavily agricultural with coconut dominating.
Assuming a poverty incidence of 10% for the city, then the poverty incidence of the Davao del Sur province would be 30%. This again is three times the city poverty incidence. That puts the province poverty incidence way above the national level of 21.6%.
WAY FORWARD
Governance is area-specific. Provinces are ruled by governors while cities are led by mayors. Lumping city and province poverty incidences distort the poverty picture and can lead to wrong conclusions and attributions of governance.
Thus, for better poverty targeting and monitoring, PSA needs to separate poverty incidences for heavily urbanized cities.
This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.
 
Rolando T. Dy is the Vice Chair of the M.A.P. AgriBusiness and Countryside Development Committee, and the Executive Director of the Center for Food and AgriBusiness of the University of Asia & the Pacific.
map@map.org.ph
rdyster@gmail.com
http://map.org.ph

The South China Sea game

Panos Mourdoukoutas, a contributor to Forbes magazine, wrote a commentary entitled “China will lose the South China Sea game.” Let me quote him verbatim in the succeeding paragraphs.
He said, “China wants to control the entire South China Sea. Every inch of it. That’s why will lose all of it, one day.”
In the South China Sea game, China is one player playing against all the rest: The Philippines, Brunei, Malaysia, Taiwan, and Vietnam. China is also playing against the navies of US, Japan, France, the UK, and Australia. These navies seek to enforce the freedom of navigation in the vast trade waterway. Close to $5 trillion in merchandise moves through every year.
Why is China playing against everyone else?
For a couple of reasons. One of them is that the waterway is very important to its vision — becoming the next global economic leader. It’s the beginning of China’s maritime silk road.
“Insofar as China is concerned, its maritime silk road begins from the South China Sea,” says Vijay Eswaran, Malaysian entrepreneur and Chairman of QI Group of Companies. “It sees itself playing a more significant role in maritime trade in the future.”
Another reason is that China sees the South China Sea as its own property.
“Historically, China has always viewed the South China Sea (SCS) as its own,“ adds Vijay. All of it, and the resources that are hidden beneath, which China wants to exploit. That’s why it is building artificial islands.
And that feeds Chinese nationalism, needed to support and reinforce the political status quo.
What about the overlapping claims from neighboring countries? “China does not see any of the other overlapping claims from the neighboring countries to the South China Sea as a threat,” adds Vijay.
And it uses intimidation to make sure that this won’t happen.
When China lost a United Nations-linked tribunal international arbitration to the Philippines on the South China Sea disputes a year and a half ago, Beijing took a couple of steps to make sure that Duterte wouldn’t do anything with it.
The first step was to threaten Duterte with war should he dare to enforce the ruling. The second step was to promise a generous investment to help the Philippines deal with its many problems. And it worked. Duterte quickly flip-flopped, and forgot all about the ruling, as was written in previous pieces here.
More recently, China applied “Duterte’s model” to intimidate Vietnam.
Last July, Vietnam announced that it will stop its oil exploration efforts, following a stark warning by Beijing that it will attack Vietnamese oil and gas bases.
Still, there are multiple navies that are prepared to challenge China’s ambitious mission. “It is the potential Western influence, i.e. the US, France and the UK and their navies that are having more of an impact on Chinese policy in the region.”
Is China prepared to fend off this challenge? It’s hard to say. What isn’t hard to say is that countries that play a game against all end up losing.
That’s what happened in neighboring Japan in the past, and it could happen to China in the future.
Meanwhile, investors in the financial markets of the region should closely watch any developments that will bring China closer to an open confrontation with America and its allies.”
One such development is the nascent trade war between the US and China. CNN Money reported last week that a consequence of that would be a spillover to Asian economies. I’m abridging the report for brevity. Read on.
“The fallout from a trade war between the United States and China will hurt other economies in Asia.
President Donald Trump accuses China of unfair trade practices and is threatening to put new tariffs on as much as $450 billion of exports from China. The world’s second-biggest economy has vowed to retaliate.
A worsening tit-for-tat would be bad news for export powerhouses such as Taiwan, South Korea and Malaysia, which sell goods to China that are used to make products exported to the United States — from automobiles to consumer electronics — industries that require technologies that come from a complex global supply chain.
This interwoven trade is crucial to regional economies. Asia is an export dependent region. If this escalates, it would have a material impact on the region. Tech components such as computer chips are among the products most vulnerable to trade turmoil. That could put Taiwan, South Korea, Malaysia and Singapore in a precarious position if the US-China fight intensifies.
The scale of the damage to Asian economies depends on how bad the trade war gets.
The United States has so far announced 25% tariffs on $50 billion worth of Chinese exports, the first wave of which will take effect on July 6. But if Trump goes through with his threat to respond to China’s promised retaliation by hitting a further $200 billion of Chinese exports with 10% tariffs, that could send shock waves through Asian economies.
America risks killing the global growth it needs. Businesses around the region would feel the effects. There’s clearly a downside if everyone needs to rethink their manufacturing locations and sourcing strategies. In the meantime, analysts say some companies in Asia are looking to shift more manufacturing to other parts of the region, such as Thailand and Vietnam, to try to reduce their exposure to tariffs on China.”
That’s a red flag for us.
Are we prepared for military confrontation among the big powers in the South China Sea, or for a global trade war, where everyone loses?
Obviously not, which is why accelerating credible deterrence, expanding our economy, and creating new trading routes are crucial for our national security and survival.
The incumbent administration is doing all that within its power. It is under time pressure because the winds of war, be it military or economic or both, are blowing harder. We must forge national unity to weather mounting challenges to our survival.
 
Rafael M. Alunan Iii served in the cabinet of President Corazon C. Aquino as Secretary of Tourism, and in the cabinet of President Fidel V. Ramos as Secretary of Interior and Local Government.
rmalunan@gmail.com
map@map.org.ph
http://map.org.ph

Blasphemy and persecution

“Bless me, Father for I have sinned. But I do not know if I have sinned, Father,” I whispered hoarsely, in the confessional.
Is it a sin, if I got so very angry, hearing another publicly blaspheme God and attack my faith in Him? He could only speak like The Evil One when he said, “Who is this stupid God? He’s really stupid.” President Rodrigo Duterte made the statement attacking God during a speech in Davao, where he questioned God’s logic in the Biblical creation story of Adam and Eve, calling God “p_tangina” or “Son of a whore” (Rappler June 22, 2018).
Is it wrong to tremble in reverberating fear at the hollow echo of the voice of The Evil One in the country’s president self-righteously saying, “I will not apologize to God, not in a million years”?
Duterte made the statement after evangelist Bro. Eddie Villanueva of the Jesus Is Lord church called on the President to issue a public apology for insulting God (The Manila Times June 28, 2018). “Your God is not my God, because your God is stupid; mine has a lot of common sense,” he said, unremorsefully adding blasphemy upon blasphemy (BusinessWorld June 26, 2018).
Is it a sin of omission, that I, among so many Filipinos like me, allowed him so many times before to say vulgarities and curses, threats, and coercive language, double-speak and to declare the inverse of commonly known facts and truths? Have I sinned by collusion in watching silently, or worse, clapping and cheering in the perverse surrogate mischief of a hyped crowd, as he spewed venom and pranced over common decencies?
The local and foreign press has feasted on the rowdy antics of Duterte.
One foreign news recounts how Duterte, just a presidential candidate then, cursed (“p_tangina”) visiting Pope Francis for having triggered a monstrous traffic in Manila. Then he lashed the same “Son of a whore” virulence on Barack Obama (still US President then), who had raised alarm over the killings under the Duterte Drug War. (www.cbsnews.com June 25, 2018).
“It’s certainly not every day that you hear a sitting president say the words ‘son of a whore,’” The Washington Post chided (September 6, 2016). Duterte called the United Nations “p_tangina” (Philippine Star June 3, 2016) for failing peace in many troubled countries, as he told the Commission on Human Rights and the US and Australia envoys face-to-face to shut up. He picks a fight and punches everyone’s nose with “I never signed anything that says I have to behave in this manner or in that manner,” (Ibid.). He raised the dirty finger at the EU for commenting on extrajudicial killings (EJKs) related to the drug war (ABS-CBN News “F*** you, Duterte tells European Union,” Sep 20, 2016).
Is it wrong to be appalled and angry that human rights seem to have been violated in blatant end-justifying-the-means? “The former longtime city mayor has repeatedly declared he does not care about human rights and has threatened drug dealers and other criminals with death” (www.cbsnews.com June 25, 2018). From July 1, 2016 to Jan. 31, 2017, about 7,080 were killed in the War On Drugs, based on revised Philippine National Police data (Rappler April 23, 2017). The “tokhang” or warrantless arrests of drug suspects on an ever-lengthening drug list is feared by those not aligned with the powers-that-be.
As of end June, 22,000 “tambay” (loiterers) were picked up under the two-week old anti-loitering campaign that was surprisingly immediately enforceable in slum area by the police (DZMM Teleradyo June 30, 2018).
Why not, when in September 2016, Duterte had declared “a state of lawless violence,” which increased the presence of law enforcement all over the country and gave authorities the power to impose curfews in certain areas (CNN Philippines Sept. 3, 2016). And the Philippines plans to withdraw from the International Court of Justice (Philippine Star March 20, 2018). Why?
Is it an exaggerated reaction to fear for personal safety in this environment of verbal and physical violence, even of the diminution of my rights — that can only magnify in my instinctive imagination the arrogance and impunity of those in power?
There seems to be no more checks and balance of power in our flailing democracy. The Legislature and the Judiciary are apparently controlled by the Executive — those aligned with the President even boast of their numbers.
Former Justice Secretary and elected Senator Leila de Lima, critic against Duterte’s drug war tactics, has been in detention since February 2017 for alleged drug trafficking, on the testimony of prison inmates, police officers and former prison officials at Legislative Committee hearings (ABS-CBN News March 14, 2017).
In May, the Supreme Court en banc voted 8-6 to oust Maria Lourdes Sereno as Chief Justice, based on a quo warranto complaint filed by Duterte’s Solicitor General Jose Calida, short-cutting the more tedious Senate impeachment proceedings (ABS-CBN News May 11, 2018).
Is it wrong to be aghast and indignant about the public shaming of De Lima and Sereno, and even Ombudsman Conchita Carpio Morales, who admirably held her head high against constant attack?
Duterte says “the next Ombudsman will not be a woman” (Philippine Star May 17, 2018).
Evidently, he does not hold women in high regard. From minus-day one of Duterte as president, he has managed to insert himself in the rape of women’s dignity by his stand-up comedy public rantings of his sexual exploits and perceived macho entitlement to any woman’s body. In April, 2016, before he was yet elected president, Duterte said of a 36-year-old Australian lay minister who was held hostage, raped, had her throat slashed and was shot in 1989 — “she was so beautiful, the mayor (he, Duterte, then) should have been first. What a waste.” (www.washingtonpost.com April 25, 2016).
A few weeks ago, Duterte drew flak for kissing an overseas Filipina worker on the lips — on stage and on international TV — during a visit to South Korea (www.bbc.com/news June 4, 2018). No malice, he said and even the OFW woman said. But what was certainly malicious was that Duterte was distributing copies of Altar of Secrets: Sex, Politics and Money in the Catholic Church, an exposé on alleged wrongdoings of Catholic bishops and priests. Duterte had said the Catholic Church has no moral ascendancy to lecture him on morality because some members of the clergy are also engaged in sinful acts (ABS-CBN News Jan 24, 2017). And so why were three Catholic priests mysteriously killed since December 2017, the latest, Fr. Raymond Nilo, only last June 10? (www.aljazeera.com/news June 13, 2018).
Last question, Father Confessor: Is it a sin to doubt the Catholic hierarchy for their seeming tepidity in assuaging the monstrously growing questions of right-and-wrong in the laity’s mind and souls, the fears for their mortality and survival, even?
Is it wrong to compare the present Church leadership with the late Jaime Cardinal Sin, who was the fulcrum that moved the people to the 1986 EDSA People Power Revolution against the Marcos dictatorship?
Finally, Father Confessor has a chance to speak: “You have not sinned by your righteous anger. Feelings, even the strongest feelings and inclinations are neither right nor wrong. They are amoral, until these even very negative feelings — doubts, fears, disappointments — are translated into good or bad actions. Even Jesus was angry (John 2:13-25). True, there is mercy and love preached by the Catholic faith as the ultimate peace for mind, body and soul. But even Christian forgiveness is preliminarily based on Justice according to the initial vetting by human and natural laws. What is there to forgive if there was no sin?
There is a Cardinal Sin, in every Catholic Filipino. And in communion with all who believe in God, or a God powerful above all creatures, there can be no man who thinks himself the perfect God.
 
Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.
ahcylagan@yahoo.com

Recruiting smoking’s new suckers just got harder

By David Fickling
THE world’s ugliest cigarette packets aren’t going away.
Australia’s plain-packaging laws, which mandate that all tobacco in the country be sold in drab brown packs with no logos, writing in uniform fonts and gruesome health-warning photographs, have been upheld by the World Trade Organization six years after the measures came into effect.
The WTO complaint brought by Indonesia, Honduras, the Dominican Republic, and Cuba, has relevance beyond the small Australian market. The long-term risks to the tobacco industry are in the burgeoning populations of Africa and Asia.
“Start them young” is one of the secrets of cigarette companies’ longevity. Older people rarely take up smoking: A 2013 study in New Zealand found that between the ages of 15 and 17, about one in seven children take up smoking while one in 14 do the same at 18 or 19. But after the age of 24 it becomes rare for anyone to start. Those who begin younger generally consume more cigarettes and find it harder to quit, too, making them particularly valued customers.
That’s why the battleground of tobacco control is in emerging markets. There are about 750 million people under the age of 25 in India and another 507 million in China, with Nigeria, Indonesia, and Pakistan each counting more than 100 million apiece, according to the United Nations Population Fund. Young populations and rising incomes deliver the best hopes of cultivating a new generation of addicts, as a Bloomberg editorial argued last week.
The argument most commonly made against the Australian rules is that they haven’t made a difference. That doesn’t stand up to a lot of scrutiny: Studies supporting that claim have either been based on non-public data that can’t be checked, or commissioned by the industry, or both, according to a 2016 analysis by Australia’s Department of Health.

An analysis of tobacco tax payments found that legal volumes fell 3.4% in the first year of the packaging rules and 7.9% in 2014. Another based on market research data found the new regulations had in their first three years caused smoking prevalence to fall by 0.55 percentage points, equivalent to about 108,000 people or 3.2% of the population who’d otherwise have been smokers. Adolescents, in particular, seem to be taking up the habit at notably lower rates, especially during the pivotal mid-teenage years.
To date, few countries have followed Australia’s path.
Comparable rules have come into force in New Zealand, the UK, France, Hungary, and Norway only over the past 18 months, while Ireland is in the process of following suit. The likes of Thailand and Burkina Faso have laws in the works, though, suggesting the plain-packaging trend may soon spread from rich countries and toward the poorer ones that have adopted measures such as graphic health warnings at increasing rates in recent years.
That’s likely to be further bad news for the world’s biggest tobacco companies, which are already trading around multi-year lows.
In the near term, the global crackdown on advertising might take some dollars out of the big firms’ marketing budgets and pass it on to shareholders.
In the long term, though, tobacco companies’ slavishly loyal consumers die 10 years earlier than those who don’t partake. With each move to make the recruitment of new customers harder, the industry’s future prospects glow a little weaker.
BLOOMBERG

Philippines’ factory activity slows in June

THE SECOND QUARTER closed with softer manufacturing activity as higher input costs continue to mount, but was a “solid improvement” from the previous three months, according to an IHS Markit survey conducted for Nikkei.
The Nikkei Philippines Purchasing Managers’ Index (PMI) slid to 52.9 in June from 53.7 in May, placing third among select Association of Southeast Asian Nations (ASEAN) member-states, down from second in the previous month, but was still above the regional index of a 51 PMI — down from 51.4 in May.
Nikkei noted that there were slower increases in output and new order growth, while employment remained steady amid high inflation.
“Manufacturing conditions in the Philippines improved further at the end of the second quarter, buoyed by increases in both output and new orders. Higher input inventories and stretched supply chains also boosted the headline PMI,” the report read.
“However, greater manufacturing activity failed to test firms’ operating capacity as reflected by lower backlogs which, in turn, weighed on hiring. Employment levels were broadly steady. Inflation meanwhile remained elevated, as did business confidence,” it added. — Elijah Joseph C. Tubayan

Customs collections up by 42% in June

The Bureau of Customs (BoC) collected P50.139 billion in June, 41.6% higher than the P35.417 billion recorded in the same month last year.
The latest collection figures is 4.9% above the P47.797 billion target that month.
“This achievement is attributed not only to the consistent diligence of all BoC ports in terms of collection but also to the continuing application of correct valuation and tariff classification of goods,” Customs Commissioner Isidro S. Lapeña said in a statement on Monday, July 2.
Total revenues from January to June reached P280.33 billion, 33.31% higher than the P210.28 billion the BoC generated in the same six months in 2017.
This is 0.8% greater than the P278.13-billion target in the first half of the year.
“The total accrued revenue in six months has already exceeded 50% of the P598 billion target for the year,” the BoC said.
In April, the BoC shuffled the heads of some of its collection districts to different ports after they failing to meet their respective collection targets. — Elijah Joseph C. Tubayan

Stocks climb as bargain hunting continues

The main index started the first trading session of the third quarter on a positive note, as investors continued to look for bargains with sentiments also getting a lift from the positive finishes among international markets last week.
The 30-company Philippine Stock Exchange index rose 0.48% or 34.28 points to 7,227.96 on Monday, extending gains from its significant jump last Friday. The broader all shares index went up 0.12% or 5.37 points to 4,398.15.
“Philippine stocks closed higher even with ongoing trade war-related jitters. Market observers continued to note that the continued bargain hunting was a good sign despite the meteoric rise on Friday from window dressing,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
The industrial sub-index was the lone sector that ended with a loss, giving up 0.28% or 28.93 points to 10,385.91.
Holding firms led the increase with a gain of 0.91% or 64 points to 7,115.74, followed by mining and oil which jumped 0.78% or 75.18 points to 9,748.40. Services climbed 0.46% or 6.39 points to 1,399.01; financials went up 0.13% or 2.22 points to 1,781.52; while property added 0.08% or 2.79 points to 3,551.90.
Some 780.25 million issues switched hands, valued at P4.8 billion, lower than Friday’s turnover of P7.1 billion.
Advancers outpaced decliners, 116 to 94, while 40 issues were unchanged. — Arra B. Francia

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