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100 cities submit funding proposals to go 'green': DBM

About 100 cities have submitted their proposals for the special fund for “green” infrastructure, the Department of Budget and Management (DBM) said on Wednesday.
“Currently, 100 cities are now processing their project proposals out of the 143 that submitted their expression of interest to avail of the funding,” Budget Secretary Benjamin E. Diokno said yesterday in a media briefing.
This comes after the DBM opened a P2.59-billion Local Government Support Fund – Assistance to Cities financing space in 2017 to support “the development of their respective open spaces.”
These include the enrichment of open spaces aimed at creating sustainable and livable urban environments through:

  • turfing, landscaping, and green space architecture
  • establishment of forest parks, arboretum and botanical gardens
  • transformation of streetscape, such as installation of eco-friendly street furniture and fixtures, and shading
  • augmentation of connectivity and accessibility, such as construction of eco-friendly bike lanes and walkways
  • and green infrastructure enhancements, such as tree planting, construction of bioswales and pervious surfaces.

 — Elijah Joseph C. Tubayan

'No choice but to speak out against Marcos's lies': Robredo camp

The camp of Vice President Maria Leonor “Leni” G. Robredo on Wednesday stood by their decision to discuss details of the ongoing election recount against former Senator Ferdinand “Bongbong” R. Marcos, saying they were forced to defend themselves.
“We stand firm that the lies propagated by the Marcos camp called on us to defend ourselves,” Ms. Robredo’s chief legal counsel, Romulo B. Macalintal, said in a statement given to reporters.
“Sometimes, we have no choice but to speak out, in order for the public to be enlightened amid the relentless black propaganda, which aims to discredit the recount being spearheaded by the PET (Presidential Electoral Tribunal),” Mr. Macalintal said.
BusinessWorld reported yesterday that the PET slapped separate P50,000 fines against the parties and counsels of Ms. Robredo and Mr. Marcos for violating the court’s sub judice rule.
Mr. Marcos’s spokesperson, Atty. Victor Rodriguez, told reporters in a text message on Wednesday, “[w]e respect the Court’s ruling and shall abide by the decision.” — Dane Angelo Enerio

De Lima seeks SC approval to attend ICC withdrawal oral arguments

Detained Senator Leila M. De Lima has asked the Supreme Court (SC) to allow her “to personally appear and represent herself” in the oral arguments on the petition seeking to declare unconstitutional and invalid the country’s withdrawal from the Rome Statute of the International Criminal Court (ICC).
According to her four-page motion dated June 25 and released to media on Wednesday, “the Rules of Court expressly allows a litigant to personally prosecute his or her case.”
Senator De Lima, a vocal critic of Mr. Duterte’s administration, surrendered herself to authorities on Feb. 24 last year over drug charges filed by the Department of Justice (DoJ).
The petition submitted on May 16 by Ms. De Lima and fellow opposition Senators Francis N. Pangilinan, Franklin M. Drilon, Paolo Benigno A. Aquino IV, Risa Hontiveros-Baraquel, and Antonio F. Trillanes IV challenged President Rodrigo R. Duterte’s withdrawal from the treaty as it did not go through Congress.
On March 16, the Philippines — through through Philippine Ambassador to the United Nations (UN) Teodoro L. Locsin, Jr. — submitted before the international body its notice of withdrawal. This petition was in response to the ICC’s preliminary examination on alleged crimes against humanity committed under the drug war of Mr. Duterte’s administration.
A second petition, filed by non-government organization Philippine Coalition for the International Criminal Court, was submitted to the high court on June 13 using similar arguments.
According to a SC notice received by Ms. De Lima’s office on Wednesday, the court consolidated both petitions and pushed the oral arguments from July 24 to Aug. 7. — Dane Angelo Enerio

Roadwork and new buildings see surge in capital outlays in May: DBM

Infrastructure and other capital outlays continued to surge in May, due to roadwork and building construction, the Department of Budget and Management (DBM) said on Wednesday.
The government disbursed P58.1 billion for infrastructure and other capital outlays in May, growing 25.6 percent from the P46.2 billion posted in the same month last year.
Budget Secretary Benjamin E. Diokno said in a media briefing that this was due to the “completed various infrastructure projects such as road concreting, widening, and improvement; construction of bypass or diversion roads and flood control bridges.”
“The repair and rehabilitation of school buildings of the Department of Education, and acquisition of medical equipment and facilities under the Health Facilities Enhancement Program of the Department of Health also contributed to the rise in infrastructure spending,” Mr. Diokno said.
However, this was 11.4 percent lower than the P65.6 billion recorded in April.
In the five months to May, infrastructure and other capital outlays totaled P280.8 billion, a 42.4 percent increase from P197.2 billion in the same period in 2017. The latest figure is also slower than the 47.5 percent expansion rate logged in the January to April period.
Nevertheless, the Budget chief said he was confident in reaching the government’s overall expenditure program targets in the second quarter.
“We are confident that we will hit our Q2 disbursement targets. In fact, actual disbursements for the first quarter exceeded the program so it’s justified to anticipate good results for the second quarter,” he said.
Actual expenditures stood at P782 billion in the first three months of the year, exceeding the P755.8 billion target by about 3 percent.
“We will maintain the momentum,” Mr. Diokno said. “We will spend as what we are authorized to spend.”
The DBM said that the government had already spent P553.1 billion, equivalent to 68 percent of the P813.3 billion second quarter expenditure target. — Elijah Joseph C. Tubayan

Damosa Land prides itself on a legacy of homegrown development

For over two decades, Damosa Land, Inc. (DLI), the property development arm of the ANFLOCOR Group of Companies, has been at the forefront and an icon of development in Mindanao.

With a history dating back to post war years in the 1950s, the company — which was first known as Davao Motor Sales (DAMOSA) — started as the country’s dealer of Ford vehicles. Although it flourished as the biggest Ford dealership in Mindanao for more than three decades, the company’s assembly plant closed down in 1984, and started to shift gears to become a development company.

Its transition to being a real estate company took place around the 1990s when it established its first major project — the Damosa District in Lanang, Davao City. A few years after this successful development, the turn of the millennium also marked a brand new opportunity for DAMOSA, which forged ahead with rising developments bearing its new name, DLI.

A landmark destination in Davao City and known as the first master-planned development in the area, the Damosa District is a mixed-use project with commercial, office, and hotel components. To date, this development houses the ANFLOCOR Corporate Center, Damosa Gateway, Damosa Market Basket, Damosa Business Center, and the PEZA-accredited Damosa IT Park.

Among the third generation of the Floirendo family, Ricardo ‘Cary’ Lagdameo heads the dynamic property development arm of the Anflo Group of Companies.

“A number of multinational companies have been with us for a decade, and hence have been able to create numerous jobs and opportunities. We also believe that as a first mover in the area, our project has helped to spur additional developments there,” DLI Vice President Ricardo Floirendo Lagdameo told BusinessWorld in an e-mail.

Over the years, the company expanded from commercial and office spaces to residential, hotels, and industrial parks. Among their projects after the Damosa District are McPod commercial building in the southern part of Davao; the five-storey Topaz Tower in Damosa IT Park; Valley High, a leading lifestyle center in General Santos City; and the expansion of Microtel by Wyndham in General Santos City.

In 2013, DLI also took a major leap with the breaking ground of its first urban residential community — the Damosa Fairlane. According to the company, the high-end subdivision project, located in Lanang, paved the way for DLI to continue developing residential properties across the city.

During these remarkable years, DLI took pride in being the first movers in several real estate spaces in the city, namely: the first PEZA accredited IT Park in Mindanao; the first and largest flexible/co-working space in Mindanao (Regus Business Center); and the first fully-developed industrial park in the Davao Region.

“We are proud of being responsible for several ‘firsts’ in the region. We enjoy taking these calculated risks as our vision has always been to help uplift lives in the region,” DLI said.

DLI also shared that in the residential space, they have evolved from developing horizontal projects to condominiums.

“We are also quite proud of our maiden condominium project, the Seawind, which has won several international real estate awards. We made a conscious decision to establish this project in a new and upcoming area, which others had doubted. We were the first to establish a major, quality project in that area, thereby uplifting the housing options in the Sasa area. We believe this will help to spur further development and investment in that side of the city,” Lagdameo added.

With a trusted reputation of its mother company, the Anflo Group of Companies, that spans more than six decades, DLI — despite competition from larger, more established developers — remains confident in continuing to build projects that will make a significant impact not only on the market but also on the quality of life of Filipinos in Mindanao.

“We have always prided ourselves on being a truly homegrown Davao company — a developer of quality projects in Mindanao. But aside from just being homegrown, we see to it that we develop high-quality projects with a very personal touch from the owners of the company. At the end of the day, we believe that investors will choose based on reputation,” explained the young Floirendo executive.

Looking forward, Lagdameo shared, “We believe Damosa Land will look like a much different company over the next five years as we continue to execute several more exciting projects. Though we will be a much larger company with various new projects in new real estate sectors, we will strive to provide the personal homegrown service that we have been known for.”

The real estate potential of Vis-Min

The Philippine real estate market has exhibited a stellar growth in recent years and is poised to sustain the momentum in the coming years. The country’s bullish economy, strong investment inflows, young demographics and consumption-driven market are driving this upward trend, which is triggering a positive ripple effect across the property sectors in and outside the National Capital Region.

“Years of investment and strong economic development in the Philippines have fostered a robust real estate sector that now extends outside of the greater Metro Manila region and into secondary markets around the country,” Oxford Business Group said in a 2017 report.

The potential of property markets in Visayas and Mindanao, specifically Cebu, Bacolod, Iloilo and Davao, is great. Many property developers are looking to expand and build more projects in these provinces in response to the growing demand.

Real estate consulting services firm Colliers International Philippines said in a December 2017 report that developers’ infrastructure units should explore operation and maintenance opportunities in and outside of Manila.

“We also recommend that developers be more innovative given the proliferation of townships and expansion of opportunities in alternative markets such as Cebu,” the firm said.

Cebu is considered as the second most important metropolitan area in the country because of its booming IT (information technology) and BPO (business process outsourcing) industries. In addition, the province remains one of the most feasible industrial locations outside of Manila due to its strategic location and skilled manpower.

In a report covering the Cebu property market in the first quarter of 2018, Colliers said that offshore gambling is emerging as a critical segment of the Cebu office market, accounting for almost 25% of recorded transactions in 2017. The BPO-Voice companies continue to dominate the sector, covering more than a half of transactions. Meanwhile, the KPO (knowledge process outsourcing) firms also sustained demand, taking 20% of the total office leases.

In the residential sector, more condominium developments are being seen in Cebu than houses and lots. Colliers said that the condominium stock in Cebu totals 33,400 units. Though launches for both horizontal and vertical projects in 2017 were down, take-up for condominiums was notably faster at 5,600 units than the take-up for houses and lots, which was at 1,100 units.

Cebu’s retail stock is now at 1.06 million square meters (sq.m.), more than double the 2010 level. “Its retail market remains interesting and competitive since both local and national players are active. Despite the development of super-regional malls in established and emerging hubs and the entry of foreign retailers, the downtown area which houses some of the oldest retail outlets remains bustling,” Colliers said.

Another significant area in the country’s real estate industry is Bacolod City, where a number of BPO firms are continuously expanding, while some KPO companies are looking at the city as a potential site outside of Metro Manila.

The Bacolod residential sector is primarily driven by house and lot developments with over 25,000 house and lot units versus 1,200 condominium units. “This is not surprising given the absence of a sizeable business district like major cities in the country as offices are limited in the city center along Lacson Street. Until then, demand will still be concentrated in house and lots,” Colliers said.

Apart from being a major destination for call center services, Bacolod is one of the largest retail markets outside of Metro Manila. National developers currently cover about 30% of this market while local players account for the remaining 70%.

Another real estate hot spot in Visayas is Iloilo. As stated in a Colliers report, “The office sector growth in Iloilo has been limited by the available supply in the province. While interest from investors remains strong, the limited supply has prevented any major take-up from business process outsourcers looking to expand.”

In terms of Iloilo residential sector, the province is still largely composed of houses and lots. However, the provincial market has seen the rise of the condominium market recently. Colliers said that even if it is still in early stages of development, the vertical market has notable bright spots in the province.

Meanwhile, Iloilo’s retail sector is changing dynamically. Provincial brands are now competing healthily with bigger national and foreign brands. “It is not surprising that well-established local developers with malls such as Mary Mart, Gaisano, and Amigo are also faring well alongside national players such as SM, Robinsons, Ayala, and Megaworld,” Colliers said.

Joining other real estate hot spots from Visayas is located down south, the hometown of the incumbent Philippine President Rodrigo R. Duterte — Davao. According to a Mindanao-based property company Damosa Land, Inc., they continue to see strong demand for residential properties and commercial and office spaces in the province.

“The Davao region has been growing over 8% to 9% over the last five years or so. Growth in the services sector, BPOs, manufacturing,and now infrastructure (among others) are fueling this growth,” Damosa Land said in an e-mail to BusinessWorld.

Davao, which has traditionally been the investment center in Mindanao, has been growing rapidly over the last years. Damosa Land said that buyers and investors enjoy the good peace and order, cleanliness and business opportunities Davao has to offer.

“The trends of our buyers are similar to what we are seeing all over the country. Our sweet spot is around the 30 to 45 year age, young professionals, and starter families. In our case, foreign buyers still make up a small percentage of buyers. However, OFWs (overseas Filipino workers) make up about 25% of our buyers. As for millennials, we believe these will make up a large part of our buyers in the coming years,” Damosa Land said.

Despite all the impressive economic growth Davao has achieved, the property company believes that there are still many opportunities in the region.

Notable townships in Visayas and Mindanao

Not only is the Philippines seeing massive changes in its economy as part of its growth as a developing country, huge transformations can also be felt in the lifestyle of the everyday Filipino.

As Metro Manila continues to grow to accommodate new foreign investors and expanding local corporate entities, several cities and communities are doing what they can to relieve the mounting pressure on the capital. Enterprising and forward-thinking leaders in the property development market are developing new projects in Visayas and Mindanao in the hopes that their efforts might help the decentralization of the bursting capital and divert the attention of businessmen to the potentials of the southern regions.

Visayas, which already holds some of the Philippines’ most notable mixed-use developments, is primed for further economic growth, while Mindanao, especially Davao, is on track to be one of the region’s biggest economic and cultural hubs.

Mactan Newtown

Megaworld Corp.’s Mactan Newtown, one of the Visayas region’s most notable properties, also stands as one of the developer’s most popular and successful projects. The 28.8-hectare township, a master-planned neighborhood that has its own beachfront, is Megaworld’s first major development outside Metro Manila.

Megaworld planned the first-of-its-kind township’s world-class beach setting to be set in a fast-growing modern neighborhood that combines state-of-the-art business office sites, well-organized commercial places, family-friendly and top-ranked hotels, and a highly regarded academic institution.

Located in Lapu-Lapu City, the township is a thriving community with a number of prime office and residential spaces within the Cyberpark just a few minutes away from the Mactan-Cebu International Airport. The township also features various retail shops in the area, along with a school that belongs to the Lasallian Schools Supervision Office. Several other projects, including planned premium hotels, the 8 Newtown Boulevard, One Manchester Place, and One Pacific Residence, the Mactan Shrine and Hitulungan Channel, are also inside the township.

Mactan Newtown is one of Metro Cebu’s major business process outsourcing hubs, with the Cyberpark, the One World Center Tower and Two World Center hosting a number of renowned companies in the industry.

Cebu Business Park

Another notable development in the Visayas is Ayala Land’s Cebu Business Park project community. The township’s mantra, “Growing Business, Growing Life,” is the developer’s attempt at an “innovative urban renaissance,” backed with the union of two unique districts: Cebu Business Park and Cebu I.T. Park.

With Cebu’s premier urban core, Ayala Land saw a multitude of possibilities for the burgeoning metropolis, offering a wealth of choice for multinationals and industry leaders, from prime residential, business, and commercial spaces to the opportunities of a highly pedestrian mixed-use regional hub. Cebu Park District marries the concepts of cosmopolitan living with a vibrant locale in a unique park setting.

The 50-hectare development features the 9-hectare Ayala Center Cebu shopping mall. Cebu Business Park, one of the region’s biggest BPO hubs, features many leading firms in the industry. For those looking for luxury residential spaces, the Sedona Park condominium, Park Point Residences and 1016 Residences are available in sustainable and green community space. The community also comes with a wastewater treatment plant and recycling facility.

Citta Di Mare

Citta Di Mare by Filinvest Land, or otherwise known as the “City by the Sea,” is located along Cebu City’s coastline, a 50-hectare development with the ambition of establishing itself as the Lifestyle Capital of Cebu.

The City by the Sea attempts to capture the charms of resort living with its majestic views of Mactan’s coast and Cebu’s mountains. The development, divided into 2 sections by the Cebu Coastal Road, aims to redefine waterfront and seaside resort living in the Visayas region with a waterfront lifestyle strip that will offer a range of seaside leisure activities. On the opposite side of the Coastal Road, a residential resort town will be composed of themed residential communities anchored by the Piazza, an Italian-inspired common amenity area.

The development on the area is a joint-venture development project between Filinvest Land, Inc. and the Cebu City Government. Amalfi Oasis, the first residential cluster to be developed at Citta di Mare, is inspired by the Italian coastal towns along the Costiera Amalfitana (Amalfi Coast), which is renowned for its scenic beauty, picturesque towns and diversity.

Lyceum of the Philippines University Township

Meanwhile, in Mindanao, the concept of the mixed-use property is being reimagined as an academic haven. Property developer Cebu Landmasters is busy with its joint project with the Lyceum of the Philippines University to develop a 17-hectare property in Davao City into a world-class university township.

Set to begin by the fourth quarter of 2018, LPU Town Davao will be a mixed-use development with academic, residential, commercial, office, hotel and convention components for Filipino students. Located on Sun City Road, Buhangin, Davao del Sur, the site is less than 10 minutes away from the Davao Airport. An estimated 5.2 hectares of the property will be allotted to the Lyceum Davao campus, which will include an academic resource center, a pool, dormitories, maritime center and a football field.

Additionally, Cebu Landmasters plans to bring its flagship brand Casa Mira Towers to serve as LPU Town Davao’s residential option for LPU students and those seeking to reside in Uptown Davao.

SC questions selective tradition, discrimination in same-sex marriage oral arguments

By Dane Angelo M. Enerio
The Supreme Court (SC) on Tuesday afternoon questioned, among many others, the discrimination and the use of selective tradition against same-sex marriage in the continuation of the oral arguments on the petition seeking to legalize the union in the country.
“Why do we interpret our laws and our Constitution in such a way that we impose something on the freedoms and happiness of others without showing a very viable reason except tradition,” Associate Justice Mario Victor “Marvic” F. Leonen asked Solicitor-General Jose C. Calida during the oral arguments.
According to Mr. Calida, same-sex couples “can live together happily ever after but they cannot insist that they should be allowed to marry under our present law and out Constitution” as the “tradition that we should follow is the marriage between a man and a woman.”
Mr. Leonen, however, criticized Mr. Calida’s argument, saying, “we choose only portions of the past and claim it to be tradition.”
The magistrate pointed out: “(If) we look up the traditions of the past, Article 49 of (the Civil Marriage Law of 1870) applicable in the Philippines actually said the wife cannot manage her possessions or those of her husband, appear in trial, enter into contracts, or acquire by testament or interstate without permission from her husband” and that “the wife cannot publish writings or scientific or literary works.”
“That is our past code. Is that a tradition we must follow?” Mr. Leonen asked the Solicitor-General.
Mr. Calida replied with, “the main portion of that tradition your honor is the marriage between a man and a woman period and that has not been changed.”
“I still don’t get it why you can choose portions and claim it to be the tradition and the other portions as not part of tradition,” Mr. Leonen said, pointing out that marriage was not even defined in the 1935 Constitution.
“The only thing mentioned in the 1935 Constitution is the right and duty of parents in rearing the youth or civic efficiency. There is nothing about marriage, there is nothing about family. It only says about parents and their children,” he pointed out.
Mr. Calida insisted, “there was no need to mention because everbody knows was defined as a union between a man and a woman.”
But according to Mr. Leonen, “even during that time in 1935 there were lesbians, there were gays, there were bisexuals, there were transgenders and transexuals… I suppose even before that there were couples who wanted to marry.”
“It may not be written black and white but all the provisions there if we inter-relate it and together with traditions there’s no other interpretation rather than marriage as defined then and as defined now is between a man and a woman,” said Mr. Calida.
Associate Justice Samuel R. Martires, for his part, asked Mr. Calida, “why do we have to discriminate against same-sex marriage?”
“Since when has the state been in the business of marriage of opposite sex? Are not gay couple, lesbians capable of loving like the heterosexuals?” he added.
According to Mr. Calida, same-sex couples “are capable of loving but they are not capable of procreating.”
Mr. Martires explained to Mr. Calida, “[w]e’re now in 2018… Why is the state still sleeping and not facing this reality that nowadays, there are individuals who would like to be happy like the gay people, lesbians, the transwoman, transmen.”
“Why is the state so indifferent to the happiness of these people?” he asked.
Mr. Calida pointed out: “It’s the tradition and history of our Constitution.”
He said, “if there is a change, then I think we should lobby the framers (of the 1987 Constitution) now to include same-sex marriage but until that is done, we are stuck in the definition that marriage is a union between a man or woman.”
After the oral arguments, the parties were instructed to submit their memoranda to the SC within 30 days.
The petition by lawyer and gay rights advocate Jesus M. Falcis III – the first of its kind to be debated by the high court – seeks to declare unconstitutional Articles 1 and 2 of Executive Order (EO) No. 209 (Family Code) as they deprived same-sex couples the right to marry without substantive due process, denied them equal protection of laws, and violate their religious freedom.
It was filed against the Civil Registrar-General in May 19, 2015 with the support of two intervening same-sex couples who were denied marriage licenses despite being married under their religion.

Banks told to guard vs dummy accounts

By Melissa Luz T. Lopez
Senior Reporter
THE ANTI-MONEY Laundering Council (AMLC) has warned banks and other financial companies to tighten their watch against dummy accounts, used by drug dealers to hide illicit funds.
The AMLC issued an advisory that requires reporting institutions to be on guard against “lend-out” accounts, or those named to certain individuals but used and managed by another.
“In a recent financial investigation, the Anti-Money Laundering Council Secretariat noted the modus operandi of certain illegal drug traffickers. Said modus operandi entailed using a person with no known criminal record to execute a Special Power of Attorney in favor of another person, authorizing another person to open, maintain and manage his accounts, which would be used to launder money,” the issuance read, as signed by AMLC Secretariat Executive Director Mel Georgie B. Racela.
“In effect, the account owner lends out the account. Transactions on these accounts are usually attended by suspicious circumstances warranting the filing of suspicious transaction reports (STRs).”
Banks, insurance firms, casinos and other covered entities need to report covered transactions — those worth at least P500,000 — as well as suspicious transactions to the AMLC within five to 10 working days from occurrence. These reports are used as leads in pursuing potential money laundering cases and other predicate crimes.
Citing the revised implementing rules of Republic Act No. 9160, or the Anti-Money Laundering Act of 2001, the financial watchdog said all covered firms must establish and record “the true and full identity” of account holders as well as transactors, or those who carry out fund transfers, deposits and withdrawals for every account.
“In case the covered person entertains doubts as to whether the account holder or transactor is being used as a dummy in circumvention of existing laws, it shall apply enhanced due diligence or file an STR, if warranted,” the AMLC said.
Firms, however, have the option to file STRs if they think that a sudden tightening of requirements — such as requesting supporting documents or introducing transaction limits — would “arouse suspicion” or tip off the customer in question.
Mr. Racela pointed out that the failure to file transaction reports may be penalized as a money laundering offense under existing laws.
The US State Department has identified the Philippines as a “major” money laundering site in 2016 due to reported cases of public corruption, human trafficking and drug transit.
The AMLC’s own National Risk Assessment for 2015-2016 identified drug trafficking as one of the biggest sources of illegal funds and remains at “high” risk of money laundering. In particular, the watchdog said the Philippines has become a “trans-shipment point” for local and international syndicates for those based in Africa, China and Mexico.
There were 34,077 anti-drug operations conducted nationwide in 2016 that yielded P18 billion worth of illegal substances and led to the arrest of 28,056 drug personalities, according to data from the Philippine Drug Enforcement Agency.
Despite the warning on the illegal drug trade in the country, only one anti-money laundering case was filed that year, according to AMLC data.

Consultancy says political risk a blot on PHL outlook

BIGGER tax collections and a local infrastructure boom can be expected to help sustain Philippine economic growth, Capital Economics said in a report on Tuesday, even as it warned that persistent political uncertainties could dampen investor appetite.
“While higher inflation and the shift in the current account to the red will weigh on the country’s prospects, the much bigger concern for the economy over the long term is the string of inflammatory comments and policy changes which have raised concerns in the minds of investors over (President Rodrigo R.) Duterte’s judgement and commitment to the rule of law,” senior Asia economist Gareth Leather said in the report.
“The upshot is that while we expect growth to hold up well in the short term, the risks to growth are tilted firmly to the downside.”
The economic research consultancy noted that the growth momentum has been kept intact on the back of “sensible reforms” put in place two years into Mr. Duterte’s term.
The think tank branded the planned infrastructure spending boost as the “main achievement” of the current administration, building on gains of its predecessor. The Duterte administration plans to spend P8-9 trillion up to 2022, when it ends its six-year term, on its “Build, Build, Build” infrastructure development campaign, with such expenditures targeted to be equivalent to 7.3% of gross domestic product (GDP) by the final year.
And the fact the government has enacted the first of up to five planned tax reform packages is a good start to providing more funds for development priorities.
“Encouragingly, the government has started making progress in this area,” Capital Economics said, noting that more changes in the tax regime are due in the coming years.
State revenues totaled some P1.186 trillion as of May, up by a fifth from 2017’s first five months, while public disbursements grew a fourth to P1.33 trillion, according to latest available Treasury data.
At the same time, Mr. Leather cited surging inflation and a growing trade gap due to heavy importation of capital equipment as “short-term” concerns for the economy.
The Philippine economy grew by 6.8% in the first quarter versus a 7-8% goal for the full year, and Budget Secretary Benjamin E. Diokno said earlier this month that there is a chance that second-quarter GDP growth — scheduled to be reported on Aug. 9 — would clock at least seven percent.
Inflation, however, has breached the central bank’s 2-4% target range for full-year 2018 at 4.1% as of end-May. Slowing month-on-month inflation prompted the central bank in its June 20 policy review to slash its 2018 inflation forecast to 4.5% from 4.6% previously.
Other notable reforms include the order to ban cigarette smoking in public spaces, free contraceptives for the poor and a bigger budget for education, according to the report.
Capital Economics said Mr. Duterte’s decision to leave economic matters to the likes of Finance Secretary Carlos G. Dominguez III, Socioeconomic Planning Sec. Ernesto M. Pernia and Mr. Diokno provides “reassurance” to investors that economic management is insulated from the war on drugs and other controversial policies.
“A longer term concern, however, is Duterte’s erratic and crass leadership style, which is showing signs of putting off investors,” the report stated.
“So far, there does not appear to have been much impact on growth. The economy remains one of the fastest growing in the region,” it added.
“However, there are signs that this is being put at risk by Duterte. Improvements in the business environment appear to have ground to a halt,” the analyst said, citing falling foreign direct investment (FDI) pledges and the stock market’s volatility in the face of both foreign and domestic concerns.
FDI committed with investment promotion agencies dropped 37.9% to P14.2 billion in the first quarter from a year ago, according to the Philippine Statistics Authority. However, actual FDI inflows tracked by the central bank jumped by 43.5% as of end-March to hit $2.175 billion.
“The bigger risks are over the long term,” Mr. Leather said.
“The Philippines’ own history shows how poor leadership and political uncertainty can hold back an economy.” — Melissa Luz T. Lopez

Gov’t pitching more projects for AIIB funding

THE PHILIPPINES is seeking Asian Infrastructure Investment Bank (AIIB) funding for more projects, the Department of Finance (DoF) said on Tuesday.
“We look to the AIIB for more immediate and longer-term financing that will guarantee the success of our infrastructure investment program and the strong expansion of our domestic economies,” Finance Secretary Carlos G. Dominguez III said in a speech during the AIIB Governors’ Business Roundtable held in Mumbai, India yesterday, a copy of which was distributed to reporters.
Presidential Spokesperson Harry L. Roque said separately in his press briefing in Davao City on Tuesday morning that President Rodrigo R. Duterte wanted major infrastructure “projects in the provinces implemented faster.”
Asked if the DoF proposed more projects to the AIIB, Mr. Dominguez replied in a text: “We are exploring a possible sectoral loan to finance health care facilities, school buildings and rural roads.”
The AIIB is co-financing the $500-million Metro Manila Flood Management project with the World Bank for $206.603 million each, and the P37.76-billion EDSA Bus Rapid Transit system with the Asian Development Bank. Mr. Dominguez has said the government will pitch the New Centennial Water Source Kaliwa-Dam Project and the North-South Railway Project South Line projects for possible AIIB financing. — E. J. C. Tubayan

Imagining a children’s museum

By Nickky F. P. de Guzman, Reporter
ENGAGING and fun — these are how CANVAS, or the Center for Art, New Ventures and Sustainable Development, conceptualizes how a children’s museum should feel like. And the group has put its idea to the test in its ongoing public exhibition, Tumba Tumba Children’s Museum of Philippine Art.
“This is our proof-of-concept show,” said Gigo Alampay, executive director of CANVAS, which is a nonprofit organization that promotes children’s literacy and appreciation for Philippine art, culture, and environment.
Tumba Tumba, which does not cater to kids alone but also to the kids-at-heart, as well, is on view for free at UP Diliman’s Vargas Museum until July 27.
“The instruction to the artists is to make it memorable and interactive,” Mr. Alampay told BusinessWorld during the show’s opening on June 19.
“It’s a step towards the type of museum we want to see in a children’s museum. Besides, it’s a dream for us to share the work and the art that we are slowly putting together since we’ve been around for 13 years,” he added.
In line with the group’s advocacy, the show promotes Philippine literature and Philippine art, and then combines these to create one engaging and energizing show through group or solo activities.
The show occupies two floors of the Vargas Museum that have sections dedicated to CANVAS’ three newest books. Two of the stories won CANVAS’ Romeo Forbes Children’s Story Writing Competition, namely Ipapasyal Namin si Lolo by Genaro Gojo Cruz with art by Arvi Fetalvero, and Aklatang Pusa by Eugene Evasco with art by Jared Yokte.

Ipapasyal Namin si Lolo is a story of a family that goes on a rare and bittersweet trip to their hometown of San Rafael. The ride is peppered with grandfather’s stories of his youth and the war. This section of the exhibit encourages the audience to come sit down and create origami.
Aklatang Pusa, on the other hand, is the story of a retired librarian who catalogues cats instead of books, but she does it unintentionally after she finds stray cats in the backyard. But like books and their stories, she learns that cats are also meant to be shared. Peppered with cat figurines, this section of the exhibit invites the audience to play board games and read books.
The third book, Renato Barja’s Children’s Stories, is a special project that features Mr. Barja’s art and stories as told by Daniel Palma Tayona and Mr. Alampay.
The book is written in vignettes and tells the personal and sometimes heartbreaking stories of the children who Mr. Barja, a painter and sculptor, encountered on his trips to and from his studio and elsewhere. This section of the exhibit has a table dedicated to playing toys, drawing, and coloring.
The show not only promotes play, but it also has special nooks with interactive installations by artists Elmer Borlongan, Pam Yan Santos, and Daniel dela Cruz, and two murals by Archie Oclos, a 2018 Thirteen Artists Awardee.
The show is jam packed with things to see and play with. In addition, it has, in partnership with Resurrection Furniture, a special side show called Abubot, which demonstrates that art can be anything: quirky cabinets and shelves repurposed from old wood and materials, or yarn made into lamp. As Resurrection Furniture is known for resurrecting old furniture and knick-knacks, Abubot is an exhibition of found-objects-turned-art.
“We are trying to learn how to put up a museum, what to put in it,” said Mr. Alampay.
CANVAS’ vision, after all, does not end after the show’s run later this month. Although without concrete plans yet because of budget constraints, it is part of the CANVAS project to put up a permanent Children’s Museum of Philippine Art in Ibaan, Batangas.
The architectural firm Arkisens has come up with a scale model of the future museum, which will contain all that is currently on view at Tumba Tumba, and more, including multipurpose hall, galleries, a studio for resident artists, a museum shop, an amphitheater, and a cafeteria.
The Tumba-Tumba Children’s Museum of Philippine Art proof-of-concept show runs until July 27 at the Vargas Museum in UP Diliman, Quezon City. For more information, e-mail info@canvas.ph or visit its Facebook page: CANVAS — The Center for Art, New Ventures and Sustainable Development.

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