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How PSEi member stocks performed — June 25, 2018

Here’s a quick glance at how PSEi stocks fared on Monday, June 25, 2018.

WB-backed flood project construction due in Q4

THE bidding process for the Metro Manila Flood Management Project is set to begin next month, the World Bank (WB) said, with the construction period to start in the fourth quarter.
“The Department of Public Works and Highways has finalized the designs and design drawings for the first five pumping stations,” the multilateral lender said in its Implementation Status & Results Report dated June 20.
“Tendering is scheduled to start in July 2018, with the expectation that works on the pumping stations will start in October/November after the current rainy season,” it added.
The World Bank is co-financing the $500-million flood control management project with the Asian Infrastructure Investment Bank (AIIB).
Of the total project cost, the Washington-based lender and the China-backed AIIB will fund $206.603 million each while the Philippine government will cover the remaining $84.794 million balance.
The project will modernize about 36 pumping stations and construct 20 new ones, improve upstream waste catchment areas, and resettle residents — within an 11,100-hectare land area, with the project ultimately benefiting 210,000 households.
The project was approved by the government in 2012, in the wake of Tropical Storm Ondoy in 2009.
The Finance department’s earlier target was for groundbreaking in January, but the World Bank said that it is “still in too early a stage for meaningful progress,” since the loan became effective in March.
However, the lender said that an assessment of the required activities in the next seven drainage areas has started.
The World Bank has so far disbursed 0.2%, or $520,000 of the loan.
It rated the project’s progress as “satisfactory,” but had a “high” risk rating.
The Department of Finance (DoF) in a separate statement said that Finance Secretary Carlos G. Dominguez III will discuss modern project implementation methods on infrastructure projects during the AIIB Annual Meetings from June 25-26 in Mumbai, India.
The meetings will focus on infrastructure development in practical and project-driven discussions including innovative financing programs for critical infrastructure needs.
Mr. Dominguez will also “discuss the Duterte administration’s economic strategy of modernizing infrastructure and developing human capital,” at the M.S. Swaminathan Research Foundation (MSSRF), a nonprofit organization that develops and promotes strategies for economic growth through the use of science and technology for sustainable agriculture and rural development. — Elijah Joseph C. Tubayan

PHL signs funding deal for Cagayan de Oro flood forecasting system

THE Philippine and Japanese governments signed on Monday grant agreements worth 1.84-billion yen ($16.8 million) for a flood forecasting project in Cagayan de Oro, and a renewal of funding for a scholarship program for government officials.
Japan International Cooperation Agency (JICA) Chief Representative Yoshio Wada signed on behalf of Japan, and Socioeconomic Planning Secretary Ernesto M. Pernia signed for the Philippines.
The grant includes 1.278 billion yen for Improving Flood Forecasting and Warning Systems for the Cagayan de Oro River Basin.
The project features a flood forecasting and warning network in partnership with the Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA).
JICA will also support the acquisition of radar, rainfall gauges, water level sensors, as well as capacity-building activities.
“During heavy rains, floods from upstream rains reach downstream urban areas in short hours posing risks to lives and communities. In 2017, the river overflowed in the aftermath of tropical storm Vinta, severely affecting Cagayan de Oro City,” JICA said.
The parties also signed a 563-million yen agreement on a Human Resource Development Scholarship, giving government workers study opportunities in Japan.
The National Economic and Development Authority (NEDA) said that about 319 Filipinos have received the scholarship so far, with 21 accepted this year.
“The Human Resource Development Scholarship project not only strengthens the relationship of JICA and the Philippines through people-to-people exchanges, it also gives us the chance to share Japan’s accumulated knowledge and expertise to promote inclusive development,” said Mr. Wada.
Potential Filipino scholars will be admitted to Kobe University, International University of Japan, International Christian University, and Nagoya University, among others.
Department of Information and Communications Technology Assistant Secretary Allan S. Cabanlong was among the scholars of the program, and took a Master of Science degree in Global Information and Telecommunications Studies from Waseda University in 2010.
JICA said that Mr. Cabanlong was “instrumental in the passage of the Cybercrime Prevention Act of 2012.”
“Historically, Japan’s economic resurgence depend on education and human resource development. The Philippines is among the top recipients of this grant aid scholarship along with China, Vietnam, Myanmar, Cambodia, and Laos,” JICA said.
It added that Filipino recipients of the program “often hold key positions or become experts in their field after finishing the scholarship.” — Elijah Joseph C. Tubayan

Senate review of foreign investment law set for July

THE SENATE is set to review foreign investment law by the third week of July ahead of possible amendments to Republic Act 7042, or the Foreign Investments Act of 1991.
Senator Sherwin T. Gatchalian, who chairs the Senate committee on economic affairs, on Monday said the review will examine any benefits generated from the 27-year-old RA 7042.
“The Foreign Investments Act (was signed) in 1991 and it was never reviewed. We want to see whether the FIA is still appropriate to the present times and whether we’re reaping the rewards of this law,” he told reporters, saying that an “honest-to-goodness analysis” of the law has not yet been performed.
The Foreign Investments Act provides for a Foreign Investments Negative List (FINL) which enumerates the industries which are reserved to Filipino nationals and whose foreign ownership is limited to a maximum of 40% equity capital.
According to the Bangko Sentral ng Pilipinas (BSP), foreign direct investment (FDI) in the Philippines surged in March, posting an increase of 27% year-on-year to $682 million.
The review was set in motion by Senate Resolution No. 73, filed by Sen. Grace S. Poe-Llamanzares, with the intention of making the Philippines a competitive haven for investments and a preferred place of business for top multinational corporations. The review was earlier scheduled on Tuesday, June 26 but was later cancelled due to scheduling conflicts.
The Senate committees on economic affairs chaired by Mr. Gatchalian and on trade, commerce and entrepreneurship chaired by Sen. Aquilino L. Pimentel III will lead the review.
Ms. Llamanzares said the review will also provide an opportunity for the Senate to listen to the sentiments of businesses on the country’s foreign investment policies.
“The hearing is rescheduled for the third week of July. We will hear from representatives of top corporations in the business sector. This will help us in drafting amendments to the law,” Senator Grace S. Poe-Llamanzares said in a text message to BusinessWorld.
Mr. Pimentel stressed the need to rationalize incentives for foreign investment entering the country.
“Rationalize the incentives. Make them more or less uniform for each perceived benefit brought to the country by the investor. Investments must be time-bound,” he said in a text message to BusinessWorld.
Mr. Gatchalian said the law needs amendment, especially to the FINL, which he said needed to be issued and reviewed in a regular basis.
“It has to be regularly revisited. Not only should it be issued for compliance, but there should also be consultations. It should be reviewed why certain industries are in the negative list and the impact of their inclusion in the negative list,” he said.
The government has yet to issue its 11th FINL. National Economic Development Authority (NEDA) Undersecretary for Policy and Planning Rosemarie G. Edillon, said in May that the “aggressive” FINL revisions are still undergoing review by the Office of the Executive Secretary to ensure it remained “within the bounds of law.”
Malacañang, under Memorandum Order No. 16 issued in November, has zeroed in on eight sectors in its bid to further ease limits to foreign participation: private recruitment; the practice of particular professions, where allowing foreign participation will redound to the public benefit; contracts for the construction and repair of locally-funded public works; public services, except activities and systems that are recognized as public utilities; culture, production, milling, among others, except retailing, of rice and corn; teaching at higher education levels; retail trade enterprises; and domestic market enterprises.
The 10th FINL was signed by President Benigno S.C. Aquino III in 2015, which retained virtually the preceding roster of domestic activities and sectors restricted to foreign participation. — Camille A. Aguinaldo

DA’s SRP scheme rolled out in Metro Manila wet markets

THE Department of Agriculture (DA) said the imposition of a Suggested Retail Price (SRP) scheme on selected farm goods will take effect initially in Metro Manila wet markets.
Agriculture Secretary Emmanuel F. Piñol on Monday signed the administrative circular during the 120th anniversary of the department, officially imposing SRPs on eight agricultural produce in an attempt to “stabilize” prices in the market.
“This will only be in the wet markets to protect the ordinary consumers. Those who go to the supermarket, since they want the place where they buy their goods to be air conditioned, then they’ll pay a premium,” Mr. Piñol told reporters.
The DA set an SRP of P39 per kilogram (kg) for regular-milled rice. Bangus or milkfish and tilapia SRPs were set at P150 per kg and P100, respectively. The SRP for galunggong, or round scad, was set at P140 per kg.
The SRP for red onion was set at P95 per kg. while that for white onion was P75. The SRP for imported garlic was P70 per kg, against P120 per kg for domestic garlic.
Mr. Piñol said on Friday that the DA set the SRPs based on consultation with stakeholders.
Mr. Piñol said the DA hopes to set SRPs for commodities in other regions.
The department will also be teaming up with the Department of Trade and Industry and the Department of the Interior and Local Government for price monitoring.
Under SRP rules, sellers found to be charging 10% above the limit could be charged with profiteering, Mr. Piñol said.
Trade Undersecretary for Consumer Protection Ruth B. Castelo told BusinessWorld in a text message that the DA has sought its assistance in monitoring wet market prices.
“Supposedly [it should be] effective today but DA said to wait for their official communication with us on the SRPs and the request for monitoring,” she added.
“We only heard in the new that they already released SRP for agri products but no formal communication with us as of [Monday] morning.” — Anna Gabriela A. Mogato

DoTr sets date for LRT-1 fare hike consultation

THE Department of Transportation (DoTr) said it has set an initial date for the public consultation on the fare hike appeal of Light Rail Transit Line 1 (LRT-1).
In a message to BusinessWorld, DoTr director for communications Goddes Hope O. Libiran said the application of LRT-1 operator Light Rail Manila Corp. (LRMC) is currently being processed.
“Tentatively, a public consultation will be held on July 11. But, LRMC will publish the final date in newspapers once the date is confirmed with LRTA (Light Rail Transit Authority),” she said.
However, LRMC said in a text message it has yet to receive an update on its fare hike petition.
LRMC submitted in March an application to raise the fares in the LRT-1 by P5 to P7. A 5% fare hike every two years is part of its LRT-1 concession agreement with the government.
However, the initial petition of LRMC in 2016 was not granted by the DoTr, which led it to appeal in 2018 for a cumulative 10% increase.
The current fare for the LRT-1 is P15, P20 and P30, depending on distance. Since LRMC took over the operations and maintenance of the train system in September 2015, it has never increased fares. The last fare hike was in January 2015.
In a briefing in May, LRMC Chief Executive Officer Juan F. Alfonso said the fare adjustment is based on the average fare of P20.
“What we’re doing right now is coordinating with LRTA (Light Rail Transit Authority) to go through the process. The process involves publishing, and then public consultation, and then approval if we’re allowed to increase the fares,” he said.
Transportation Undersecretary Timothy John R. Batan told reporters last month DoTr needs to conduct its due diligence first before it grants the petition.
“There’s a process for this… and we’re going through that process. Part of that process is listening to the public, reviewing the financials, reviewing the legal aspect. So it’s going to be considered with all of those facets in mind,” he said.
LRMC is the consortium of Ayala Corp., Metro Pacific Light Rail Corp., a unit of Metro Pacific Investments Corp., and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.
Metro Pacific Investments Corp. is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Denise A. Valdez

DENR orders Boracay firms near shore to build sewage treatment plants

THE Department of Environment and Natural Resources (DENR) ordered establishments along the Boracay shoreline to build their own sewage treatment plants.
In a statement, Environment Secretary Roy A. Cimatu told establishments near the shore that the DENR will be enforcing Presidential Directive 2018-0081 which requires them to have their own treatment facilities.
He was speaking at a workshop over the weekend to prepare stakeholders for Water Quality Management Area (WQMA) status under the Clean Water Act of 2004.
“The establishments there must have their own treatment plants. There’s no other solution,” he added.
The DENR added that it will be shutting down an illegal pipeline along the shore owned and managed by Boracay Island Water Co., Inc. (Boracay Water), which is a joint venture of Manila Water Co. and the Tourism and Infrastructure and Enterprise Zone Authority (TIEZA).
Boracay Water’s pipeline was found to have gone beyond the 25 plus five meters easement rule and was laid down along the no-build zone.
The DENR earlier ordered Boracay Water and Boracay Tubi Systems, Inc. to expand their capacity to accommodate more waste water.
About 200 establishments are currently not connected to Boracay Water’s sewage system.
“As of today, there is a capacity shortage. What more if the 200 are connected? It will create more problems… so therefore, those who can’t connect must build their own treatment plant,” Mr. Cimatu said.
Mr. Cimatu added that hotels in stations one to three with more than 49 rooms, which are required to have their own STPs, can also approach companies offering STP services.
According to DENR, some 15 million liters per day (MLD) of waste water requires treatment, but the island’s capacity only covers 12 MLD. — Anna Gabriela A. Mogato

DTI eyeing Palace approval for export development plan

THE Department of Trade and Industry (DTI) expects President Rodrigo R. Duterte to soon sign the new Philippine Export Development Plan (PEDP) 2018-2022, which lays out the medium-term strategy for meeting export targets.
In a mobile message, Trade Secretary Ramon M. Lopez said he is hoping for approval “soon” as Mr. Duterte has directed “all agencies to work together to implement the plan.”
Endorsed by the Export Development Council, the PEDP 2018-2022 is a five-year road map that will help the Philippines raise its level of exports to $122 billion by 2022.
The strategy deals in part with the removal of regulatory impediments, enhanced trade facilitation, improved access to trade finance and exports’ competitiveness.
Another approach will improve exporters’ understanding of the country’s free trade arrangements to help them to take advantage of these deals.
Aside from these key strategies, the plan also identified as urgent the passage of a National Quality Infrastructure Bill, to harmonize standards, testing, certification and quality accreditation, all of which are expected to improve consumer protection, free trade, and environmental protection.
The PEDP also calls for the implementation of the Ease of Doing Business Law which Mr. Duterte signed on May 28.
The plan also cited the government’s other programs such as the Regional Interactive Platform for Philippine Exporters of the DTI, the Agribusiness Support for Promotion and Investment in Regional Expositions of the Department of Agriculture, and the National Single Window Program of the Department of Finance, as bolstering the country’s export competitiveness.
“This intensifies the mandate to the Export Development Council and the DTI to strictly implement and efficiently cascade action plans as it becomes integral in attaining the medium-term plan in PDP and in the long-run, in attaining the Ambisyon 2040,” Mr. Lopez, also the chairman of the EDC, was quoted as saying in a separate statement.
“With the new plan, we aim to level up our initiatives and address recurring issues through concrete and efficient action plans that will benefit both the public and the private sector,” he added.
In 2017, export revenue from merchandise and services was $98.84 billion, against $92.15 billion targeted in the previous PEDP. — Janina C. Lim

Palay farmgate prices rise in mid-June

FARMGATE prices for palay, or unmilled rice, rose in the second week of June to P21.23 per kilogram (kg) with the approach of the so-called lean months, when market supply dries up between harvests, the Philippine Statistics Authority (PSA) said.
In the PSA’s Updates on Palay, Rice and Corn prices report, the average farmgate price for palay rose 0.33% from a week earlier and up 10.06% from a year earlier.
The average farmgate price for palay breached the P21 per kg mark in the third week of May, surpassing a record level set in 2015.
The buying price for palay rose from P21.02 per kg and P21.08 per kg in the last two weeks of May and P21.16 per kg in the first week of June.
Estimates for palay production for the three months to June were revised recently to 4.07 million metric tons (MT), based on the standing crop as of May 1.
In April the estimate was 4.05 million MT.
The average wholesale price of well-milled rice in the second week of June was P41.37 per kg, up 0.05% week-on-week and up 6.68% from a year earlier. At retail, the average price was P44.24 per kg, up 0.02% from a week earlier and 5.55% higher year-on-year.
The average price of regular milled rice rose 0.03% week-on-week and 8.43% year-on-year at wholesale level. At retail, the price rose 0.17% from the previous week and 7.18% from a year earlier.
The farmgate price for yellow corn grain was P13.90 per kg, up 0.22% week-on-week and up 22.79% from a year earlier.
The equivalent price for white corn grain was P16.17 per kg, down 2.41% from a week earlier and up 18.81% year-on-year.
The wholesale price for yellow corn grain was unchanged week-on-week at P20.07 per kg and up 11.62% from a year earlier.
Its average retail price was flat at P24.22 per kg compared with a week earlier, and rose 7.45% year-on-year.
The average wholesale price for white corn grain fell 1.16% from a week earlier to P21.38 per kg, which was 29.81% higher year-on-year.
The average retail price fell 0.56% week-on-week and 3.15% year-on-year to P30.10 per kg. — Anna Gabriela A. Mogato

To withhold or not to withhold: That is the question

Congratulations! You are now on top! Welcome to the club!
When you receive positive and laudatory remarks, one normally feels excited over something you might have actually won. These days, however, it would seem that, for taxpayers, this line (how I imagine the Bureau of Internal Revenue [BIR] would announce your acceptance to the prestigious top withholding agents club) should be received with extreme caution.
On May 24, 2018, the BIR issued Revenue Memorandum Order (RMO) No. 26-2018, prescribing the guidelines in monitoring, identifying, including, and deleting the Top Withholding Agents pursuant to the pertinent provisions of Revenue Regulations (RR) No. 11-2018. With the issuance of RR No. 11-2018 amending RR Nos. 2-1998, 17-2003, and 6-2009, taxpayers mandated to withhold the expanded withholding tax from their income payments to regular suppliers at 1% on goods and 2% on services are now identified as top withholding agents. Consequently, there is a need to update and revise the list of top withholding agents mandated by these recent regulations to withhold on their transactions with suppliers. The focus is on who or which of the lucky taxpayers will now be burdened with such a glorious purpose. With great power comes great responsibility, as the saying goes, and the chosen ones ought to adapt to their new circumstances.
Under RR 11-18, the Top Withholding Agents (TWAs) now include the following:
a. Existing top taxpayers who or that were classified and duly notified by the BIR Commissioner as any of the following, unless previously declassified or terminated business operations: i. A large taxpayer under RR No. 1-1998, as amended; ii. Top 20,000 private corporations under RR No. 6-2009; or iii. Top 5,000 individual taxpayers under RR No. 6-2009; and
b. Taxpayers newly identified and included as Medium Taxpayers, and those under the Taxpayer Account Management Program (TAMP).
RMO No. 26-2018 clarifies that existing large taxpayers, top 20,000 private corporations, and top 5,000 individual taxpayers, although already withholding the required 1% on purchase of goods and 2% on purchase of services, shall still be included in the initial publication of TWAs, in addition to the taxpayers identified as Medium Taxpayers and those under TAMP, if they are not yet previously classified as either top 20,000 private corporations or top 5,000 individual taxpayers.
A list of taxpayers recommended for inclusion as TWAs and/or for deletion, if any, is submitted by the concerned Revenue District Offices (RDOs), through their Regional Directors on a semestral basis, not later than every April 30 and Oct. 31 of each calendar year. These lists are later consolidated and evaluated every May 31 and Nov. 31 of each calendar year, for subsequent approval by the BIR Commissioner. The BIR Commissioner-approved list of TWAs and the regular semestral lists of TWAs for inclusion or deletion should be published in a newspaper of general circulation not later than every June 15 and Dec. 15 of each calendar year with the complete names of taxpayers and RDOs/LTS Divisions where they are duly registered, as well as in the posting of the same on the BIR website and issuance of a Revenue Memorandum Circular (RMC).
This publication is deemed sufficient notice to the concerned TWAs pursuant to the provisions of RR No. 11-2018, but the concerned RDOs may personally serve individual written notices of inclusion/deletion to the concerned TWAs under their respective jurisdictions. Whatever the circumstances of the taxpayer may be, it is certainly reassuring that this kind of service is being encouraged as a manner of allowing the taxpayers to be appropriately apprised of their ensuing obligation.
What needs attention and courtesy here is the ability of the BIR to successfully consider and promote the welfare of TWAs who are pretty much their extensions. The chosen ones are obliged to withhold on behalf of the government and, as such, should be granted adequate leeway in serving such a purpose. These agents can only function when given the consideration they deserve in complying with this regulation.
For instance, the rule imposed by RR No. 11-18 that requires the current withholding agents to start withholding on purchases of goods at 1%, even on a single purchase made which would involve P10,000 or more, shall now be subject to withholding tax. This is provided without necessarily defining the coverage on which this assignment can practically be applied. If an employee of a top withholding agent-corporation is tasked to acquire certain goods from a store and, upon reimbursing the said purchase, the employee could not have automatically withheld on the said transaction considering the circumstances. Consequently, this regulation warrants careful scrutiny and must be revisited to ensure realistic application to everyday transactions of TWAs, including employees.
Without the penalties and all other impractical requirements that add cargo to their hefty load, withholding agents can help ensure the government that it gets results in terms of its collection goals. At least 42.1% of the BIR’s 2016 tax collections came in the form of withholding taxes. Corporations that withhold account for at least 19.2% of the BIR’s collections while withholding on wages covers at least 17.9%. These figures definitely mean liquidity. If anything, the withholding agents should be afforded leniency and ample time to carry out their mandates as much as they promote the law’s promise of easier compliance. They should be furnished with information that is properly disseminated and protocols that dispense clarity since they play indispensable roles in sustaining the government’s tax collection. A special seminar on these new responsibilities should not hurt these TWAs. The key really is to strengthen the foundation to guarantee solid support.
Start marking your calendars. By the end of this month, you might have been selected to join the ranks of the top withholding agents. Stay alert. We ought to respectfully maintain the status quo while striving to assert our rights as we take part in the government’s journey towards economic freedom.
Now that you are on top of the list, wear your label proudly, but cautiously. Your membership in the top withholding agents’ list definitely indicates that you are one of the taxpayers capable of contributing to the country’s growth in more ways than one.
 
Steffanieh Gail M. Tan is an associate 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.

Tambay

I object to Senator Leila de Lima’s description that President Duterte is the “pambansang tambay.” Here is the press statement of Senator de Lima:
Si Duterte ang tunay na tambay ng bansa na walang ginawa kung hindi magmukhang palaging lasing at bangag sa harap ng publiko. Yan ang taong hindi talaga nagtatrabaho, na walang ginawa kung hindi magpatawa, magkalat ng tsismis at intriga, at mambastos ng mga babaeng dumadaan sa harap niya sa araw-araw ng kanyang pagka-pangulo ng bansa. Si Duterte ang tunay na pambansang tambay.
By describing Duterte as the “pambansang tambay,” de Lima is making Duterte the icon of all tambays. In effect, she is insulting the thousands or millions of Filipino tambays. Tambay is a colloquial term in Filipino for a loiterer or an idler.
Duterte and de Lima are reinforcing each other’s view that the tambay is a scourge. Duterte associates the tambay with illegal drugs, drunkenness, and crime. But so does de Lima, calling Duterte for doing nothing but looking always drunk and stoned in front of the public (walang ginawa kung hindi magmukhang palaging lasing at bangag sa harap ng publiko).
The problem with that view is it associates tambay or being idle to activities like being under the influence of alcohol or illicit drugs, disturbing the peace, spreading gossip, and harassing women. This is how de Lima sees the tambay, with Duterte as the national representation. Similarly, Duterte, the supposed pambansang tambay, has utmost disdain for tambays.
Is the tambay or the idler the proxy to the drunkard, the drug user, the rowdy, or the rumormonger? But the intoxicated, the unruly, the gossiper are found everywhere, not only among the tambays in the streets and in the slums. They are also among the workaholics and the producers, the intelligentsia and the creatives, the moneymakers and income-earners.
The tambay should not be associated with attributes or activities that society seems to frown upon. We must resist the negative connotation that accompanies some words. Tambay connotes neither deviance nor crime. Similarly, a bakla — a gay — is not an outcast. And a bakla should not connote cowardice and fecklessness.
Even then, what’s wrong about getting stoned or getting drunk? Steve Jobs, a global personification of a successful life, once said, “LSD [a psychedelic drug] was a profound experience, one of the most important things in my life.” Our hero, Jose Rizal, tried hashish. In a letter to Dr. Adolph B. Meyer, Rizal wrote: “I myself, though in 1879, used hashish; I did it for experimental purposes and I obtained the substance from a drugstore.”
As to drinking, Rizal and his compatriots in the Propaganda Movement frequented the bars in European cities not only to have liquor but also to ogle at women. (See, for example, Juan Luna’s painting, The Parisian Life.) As to staring at women, I recall what my late sis-in-law Ginny told her husband Louie, “you can ogle and gasp at beautiful women, but do not touch them.”
To return to being drunk or stoned, our examplars like Jobs and Rizal did it. It’s a normal activity. One should regulate it, but do not punish criminally the user who does no harm.
A related point is: Do not throw the tambay in jail for being a tambay. It is the criminal activity done by tambays and non-tambays alike that should be punished.
How about the noise and disturbance created by the tambays? Not all tambays create noise; non-tambays as well create a lot of noise. Among other reasons, Tim, a restrained person and husband of sis-in-law Pep, opted to leave the Philippines because he could not stand the blaring music at night from a band practicing in the confines of the neighbor’s home.
youth
How about gossiping among tambays? My friend Doray, a feminist, says that gossiping especially among women is a way of de-stressing after work, be it housework or work for income. In economics, gossip is seen as a way of creating and strengthening social networks and spreading information that formal institutions don’t like to talk about. Thus, it fills in the information that is necessary to build trust and make good choices in any market activity.
But what is the quality of information from gossip?
According to a study by RIM Dunbar et al., “Human Conversational Behavior” (in Human Nature, September 1997), only a small fraction of gossip (three to four percent) is malicious. That is perhaps a better record than Facebook or the social media.
Tambay is a pastime done by many Filipinos. It has an equivalent in other parts of the world. It is essentially about leisure, a form of leisure. It is about spending idle time. But remember that all people, including those who work hard, have idle time. The idle time, or the time away from work, can be used for different activities — sleep, eat, drink, play, read, watch TV, see a movie, date, make love, send text messages, surf the Web, or do tambay. In fact, some of the activities enumerated above can be done while being a tambay.
Being idle, or having leisure including doing tambay, is part of life and serves a purpose. Recall the saying: “All work and no play makes Juan a dull boy.”
It is wrong to say that tambays are lazy and unproductive; that they do not contribute to society. Many of the tambays do work. After all, the poor especially have no choice but work to survive. Society’s main problem is not exactly unemployment but the lack of good jobs, jobs that pay at least the minimum wage, jobs that are stable and that provide social benefits.
For the hard-working people, leisure is inseparable from production and reproduction. In the advanced economies, working hours have been reduced, giving more time for leisure. But the productivity of workers remains high.
One can be more productive by having time for leisure. One cannot survive; one cannot be fully happy without leisure.
In the Philippine setting, leisure includes tambay. Filipinos work to live and to have leisure, unlike those who live to work.
In another sense, being a tambay can be productive. The culture of tambay creates the space for fostering cooperation in the community. It creates networks that provide new or additional jobs. It facilitates trade or barter (not the type where fresh fish is exchanged for made-in China noodles and canned goods). It provides security to the neighborhood as the tambays act as the neighborhood’s informal sentries.
In summary, nothing is wrong about being a tambay. In other ways, tambay serves a common good.
So please, Senator de Lima, do not demean the tambays by making Duterte the pambansang tambay.
Incidentally, Ginny’s late son, Luis Joaquin Katigbak — his generation’s greatest short story writer and essayist, Palanca awardee, handsome, intelligent, and audacious — would turn in his grave if he heard Duterte being accorded the title pambansang tambay. Luis would have loved that title. Pambansang tambay is an appropriate Tagalog equivalent of the moniker that he gave himself — “the king of nothing to do.”
 
Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.
www.aer.ph

Trust a key factor in business (and in everything else)

“There is one thing that is common to every individual, relationship, team, family, organization, nation, economy, and civilization throughout the world — one thing which, if removed, will destroy the most powerful government, the most successful business, the most thriving economy, the most influential leadership, the greatest friendship, the strongest character, the deepest love. On the other hand, if developed and leveraged, that one thing has the potential to create unparalleled success and prosperity in every dimension of life. Yet, it is the least understood, most neglected, and most underestimated possibility of our time. That one thing is trust.”

— Stephen M.R. Covey
The Speed of Trust: The One
Thing that Changes Everything
(2008).

Mr. Covey, former CEO of the Covey Leadership Center and adviser to leaders of Fortune 500 companies as well as medium-sized and small-sized organizations, spoke to business executives, government leaders, corporate leaders, and human resources professionals at a conference organized by ABS-CBN News Channel (ANC) on June 19, 2018 at Dusit Hotel in Makati.
“Trust is the new currency,” Mr. Covey said. “Is your company’s main concern trust, or profits? If anything trumps Trust, you are in trouble.” He said, “Trust is an economic driver, and not merely a social value — it is financial: the greater risk is not trusting.”
Mr. Covey pointed out that there is a “Trust tax” to management calls and decisions. Components of the Trust Tax are Speed and Cost. “When Trust goes down, Speed goes down, and Costs go up.”
The costs of low Trust are from bureaucracy, redundancy, politics, employee disengagement, among some negative results that managers do not want to affect their profits. If a culture of Trust is cultivated within the organization, the welcome effect happens: “When Trust is up, Speed goes up, and Costs go down.”
Mr. Covey said that the Global Trust Index ranking of companies is two-thirds of the criteria for Fortune-100 selection of the best companies to work for. Companies with high internal and external trust outperformed the low-trust companies 288%, proving that Trust earns profits. The trust rating company Great Place to Work that does the Global Trust Index similarly said that “companies who score the highest on creating an equitable, consistently high-trust culture for all employees had 3x higher annual revenue growth than companies at the bottom (https://www.greatplacetowork.com).
“Trust can be learned,” Mr. Covey encouraged. “Start with a high propensity to trust. If you trust someone, he/she will tend to trust back. Ninety-five percent of the time, it works. Do not let the five percent risk cause you to distrust.”
He cited the example of Muhammad Yunus’ Grameen Bank in Bangladesh, a collateral-free micro finance test project whose payback rate was 99%, compared to the 85% for regular collateralized micro credit. The ancient philosopher Lao Tzu said, “No trust given, no trust received.”
“If we don’t trust people how will we engage them, innovate, create, inspire, be a team? You can trust too much and get burned but you can also not trust enough and you wouldn’t see other possibilities,” Mr. Covey said. You can look at any leadership failure, and it’s always a failure of one or the other,” Mr. Covey said. “Both must be sustained — you have to keep your word and your commitments, and you must maintain your leadership track record of dependable, efficient and cooperative delivery of mission and objectives.”
Mahatma Gandhi said, “The moment there is suspicion about a person’s motives, everything he does becomes tainted.”
But why is it that we judge ourselves by our intentions and others by their behavior, Mr. Covey asked? The formula is “Trust is equal parts character and competence…a person has integrity when there is no gap between intent and behavior…when he or she is whole, seamless, the same — inside and out. This is the ‘congruence’ that will ultimately create credibility and trust,” he stressed.
Mr. Covey said government and business leaders should consider his “Smart Trust” matrix of “See, Speak, Behave” in the introspective full transparency urged by the four cores of credibility: Integrity (Are you congruent?); Intent (What’s your agenda?); Capabilities (Are you relevant?); and Results (What’s your track record?). Earning trust must start with trusting yourself and being confident that you are doing the right thing in conscience. Commitments must be honored, and accountability must be owned.
It might have been an interesting segue to recognize persistent reports worldwide that people have been losing trust in government and government leaders. News abounds of scams and anomalies in government plunder of the people’s money, and dictatorial ways of newly risen strongmen leaders emasculating democracies and trashing human rights. The OECD has observed that “only 43% of citizens trust their government” (oecd.org 2015 report). “Lack of trust compromises the willingness of citizens and business to respond to public policies and contribute to a sustainable economic recovery.” (Ibid.).
“But haven’t writers, poets, satirists and stand-up comedians been telling us for three thousand years that we can’t trust politicians and governments?” (OECD Observer No 310 Q2 2017). As a compromise, “people tend to trust a system that reliably improves their wealth and are apt to distrust any system that cannot seems intuitively correct” (Ibid.). Yet “prosperity isn’t in itself a sufficient indicator of trust in government,” the OECD admits.
Dependency is a word separate and distinct from Trust.
Yet “trust surveys” drumbeat trust and approval, satisfaction, and happiness as achievements of populist leaders who have capitalized on position and power to keep and increase influence and control over those dependent on them. The greatest damage that inaccurate survey instruments can do against the common good is to establish and perpetuate fake trustworthiness for un-trustworthy leaders who can justify evil means towards an end.
In business and in government, as well as in everything else: can you trust someone who lies, cheats, steals, kills, degrades women, and violates common decencies?
You must examine your own intent as the one who trusts — why and what for do you trust the other? Stephen M.R. Covey says there must be Integrity and Honesty in yourself and in the other, as basis for all Trust.
 
Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.
ahcylagan@yahoo.com

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