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Gov’t sets P10 minimum fare for modernized jeepneys

THE Department of Transportation (DoTr) has issued the fare structure for the modernized public utility jeepneys (PUJs), setting a P10 charge for the first four kilometers and P2 for every kilometer thereafter.
The fares, which apply to the air-conditioned, upgraded jeepneys, were released after a cooperative deployed its first units on a route serving the reclamation area in Pasay City from the Cultural Center of the Philippines (CCP) complex to the Senate.
The Land Transportation Franchising and Regulatory Board (LTFRB), which released the order to reporters, said fare adjustments require LTFRB board approval as it is the implementing agency for the public utility vehicle modernization program (PUVMP).
A discount of 20% is available to students, senior citizens and persons with disabilities.
The DoTr on Monday rolled out 15 modernized PUJs operated by the Senate Employees Transport Service Cooperative (SETSCO).
The Senate loop served by the new units includes the CCP, the Philippine International Convention Center (PICC), the Government Service Insurance System (GSIS), the SM Mall of Asia in Pasay, and the Parañaque Integrated Terminal Exchange (PITX).
The PUVMP, apart from modernizing the jeepney fleet, also aims to decongest roads through route rationalization.
Jeepney drivers and operators have three years to upgrade units aged 15 years and above. The government is offering loans through the Landbank of the Philippines and the Development Bank of the Philippines for the project. — Denise A. Valdez

BSP to open four CSFs to improve credit access in provinces

By Melissa Luz T. Lopez
Senior Reporter
THE CENTRAL BANK is looking to open four new credit surety fund (CSF) facilities this year to improve access to credit for small businesses in the provinces.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said that they are in talks to put up as much as four new CSF cooperatives in the country, which is expected to reach more micro, small and medium-sized enterprises (MSMEs).
The central bank official said the bank is hoping to establish two more CSFs in Mindanao, one within Luzon, and another in the Visayas.
Mr. Guinigundo said a new credit cooperative may be opened within July or August. However, he noted that setting up the facility depends on local government units (LGUs), as they need a local ordinance in order to secure counterpart funding from provincial or municipal level.
The central bank’s CSF program provides alternative collateral for MSMEs by organizing them into cooperatives with pooled funds. CSF units then serve as guarantor for its member businesses and nongovernment organizations as they apply for credit lines from banks, boosting their chances of obtaining loans.
An MSME needs a minimum placement worth P100,000 to the cooperative. In turn, the firm can borrow as much as 10 times the amount which it contributed to the surety fund.
Aside from LGUs, the national government can also contribute seed money to the CSF pools through partner institutions like the Development Bank of the Philippines, Land Bank of the Philippines and the Industrial Guarantee and Loan Fund.
There are currently 51 CSF cooperatives across the country since the program started in 2008, in 32 provinces and 19 cities.
Implementing rules for Republic Act 10744 which made permanent the CSF system also took effect in October 2017, which brought the BSP and the Cooperative Development Authority together in assisting and organizing small firms to become formal entities.
Approved loans via CSF groups hit P4.586 billion as of end-2017, up 41%, according to central bank data.
Mr. Guinigundo said lending to CSF members has surged to “almost P5 billion” as of end May, benefiting over 17,000 small firms.

Are dividends and interest subject to local business tax?

As the debate on adopting federalism in the Philippines heats up, the powers and limitations of local government units (LGUs) to tax is coming to the fore.
The local business tax (LBT) imposed by LGUs is based on gross sales or receipts of the particular taxpayer.
Section 131 (n) of the Local Government Code of 1991 defines “Gross Sales or Receipts” as including “the total amount of money or its equivalent representing the contract price, compensation or service fee, including the amount charged or materials supplied with the services and the deposits or advance payments actually or constructively received during the taxable quarter for the services performed or to be performed excluding discounts if determinable at the time of sales, sales return, excise tax, and value-added tax (VAT).”
In the 2007 case of Ericsson Telecommunications, Inc. vs. City of Pasig, the Supreme Court interpreted the above provision as follows: “[T]he law is clear. Gross receipts include money or its equivalent actually or constructively received in consideration of services rendered or articles sold, exchanged or leased, whether actual or constructive.”
The Local Revenue Codes of most local government units adopts the above definition of gross receipts. However, the issue on whether income of holding companies consisting of dividends, interest and other passive income fall within the purview of gross receipts so as to be subject to LBT, frequently arises as several LGUs try to subject said income to LBT.
In a 2016 the Court of Tax Appeals (CTA) case involving a holding company that derives its revenue from dividend income, interest income, rental, management fees and other income, the CTA expressly explained that “no interpretation is needed on what items are included in gross receipts. Simply put, gross receipts are the amount or fee for the services rendered. Nowhere does the provision state that it includes dividend income, interest income, rental income or gain from the sale of fixed assets.” In this case, the CTA noted that while the holding company should be taxed only on its earnings from services rendered, and considering that it did not report any management fees earned, said holding company should not have been imposed with LBT on its other income, since these items are not taxable under the applicable local revenue code.
The CTA went on to explain that under the National Internal Revenue Code (NIRC), the general definition of a gross income enumerates the various kinds of income, including compensation, income from the conduct of trade, business or profession, gains derived from dealings in property, interest, rents, and dividends, among others. The disputed income in this case, that is, interest, rents, dividends and income from the sale of properties are under a category of their own, and not included in the income from the conduct of business. Also, separate provisions were provided for certain passive income that includes interest, capital gains tax for the sale of real property, and dividends. From the general definition of the term, these kinds of income are excluded in the computation of the gross income, or gross sales or receipts, of a taxpayer.
In effect, the above definition in the NIRC should be applied to the income of said holding company in this case, and should be excluded in the computation of its gross receipts. The holding company should be taxed only on its earnings from management fees, or the fees for services it performed for its subsidiaries.
Section 133 (a) of the LGC as implemented in Article 221 (a) of the IRR of the LGC expressly provides that “the taxing powers of provinces, cities, municipalities, and barangays shall not extend to the levy of income tax, except when levied on banks and other financial institutions.”
Section 143 (f) of the LGC provides that the “municipality may impose taxes on banks and other financial institutions, at a rate not exceeding fifty percent (50%) of one percent (1%) on the gross receipts of the preceding calendar year derived from interest, commissions and discounts from lending activities, income from financial leasing, dividends, rentals on property and profit from exchange or sale of property, insurance premium.”
In a 2011 opinion, the Bureau of Local Government Finance (BLGF) explained that “unless imposed on banks and other financial institutions, any tax imposed on interest, dividends, and gains from sale of shares of non-bank and non-financial institutions assume the nature of income tax. The reason for this is evident, that is, while banks and other financial institutions derive gross receipts in the ordinary course of their business as financial institutions, the same cannot be said for non-bank and non-financial institutions. As to the latter, interest, dividends, and gains from sale of shares are merely passive investment income.”
The BLGF Opinion further explained that “[T]he above definition of the phrase ‘gross sales or receipts’ does not include nor make mention of passive income such as dividend income received from another domestic corporation, as one of those that are considered part or form part of the “gross sales or receipts” and therefore such income is not subject to LBT. Thus, income arising from interest, dividends, royalties do not form part of the taxpayer’s gross receipts as these are merely incidental, having been earned outside of its primary scope of business operations and therefore not subject to LBT under Section 143 of the LGC.
In the May 2018 case of Te Deum Resources, Inc. vs. City of Davao, the CTA En Banc once again had occasion to rule on the same issue involving a holding company that received dividends from its investment in preferred shares of an affiliate which were then deposited in a trust account which earned interest from money market placements.
Citing the above provisions and using the same rationale above, the CTA ruled that “dividends and interest income on money market placements are not subject to local business tax, unless levied on banks and other financial institutions.”
The LGU based its imposition of LBT on the argument that the taxpayer may be considered a non-bank financial intermediary, falling under the category of a bank and other financial institutions so as to be subject to LBT as provided under the above-cited Section 143 (f) of the LGC. The LGU was upheld by the Regional Trial Court (RTC) and the CTA in Division agreed with the RTC’s conclusion that the taxpayer falls within the category of financial intermediary whose business is subject to LBT.
The LGU argued that under Section 131 (e) of the LGC, the term “banks and other financial institutions” include non-bank financial intermediaries, xxx investment companies xxx.”
In effect, the CTA En Banc reversed the decision of the CTA in Division and explained that while “non-bank financial intermediaries” are included in the term “banks and other financial institutions,” the term “non-bank financial intermediaries” are those that are “defined under applicable laws, or rules and regulations.” The CTA cited the definition of “non-bank financial intermediaries” under Section 22(W) of the NIRC; BIR Revenue Regulation No. 9-2004; and the Manual of Regulations for Non-Bank Financial Institutions issued by the BSP. The CTA expressly held that “[T]aken together, these laws and regulations reveal the following basic requirements for a person or entity to be considered as a “non-bank financial intermediary:”

1) The person or entity is “authorized by the BSP to perform quasi-banking activities”;

2) The principal functions of the said person or entity “include the lending, investing or placement of funds or evidences of indebtedness or equity deposited to them, acquired by them, or otherwise coursed through them, either for their own account or for the account of others”;

3) The person or entity must perform any of the following functions on a regular and recurring, not on an isolated basis, to wit:

a. Receive funds from one (1) group of persons, irrespective of number, through traditional deposits, or issuance of debt or equity securities; and make available/lend these funds to another person or entity, and in the process acquire debt or equity securities;

b. Use principally the funds received for acquiring various types of debt or equity securities; and

c. Borrow against, or lend on, or buy or sell debt or equity securities;

d. Hold assets consisting principally of debt or equity securities such as promissory notes, bills of exchange, mortgages, stocks, bonds, and commercial papers;

e. Realize regular income in the nature of, but need not be limited to, interest, discounts, capital gains, underwriting fees, guarantees, fees, commissions, and service fees, principally from transactions in debt or equity securities or by being an intermediary between suppliers and users of funds.

A non-bank financial intermediary may not be considered as such unless it possesses all the requirements that qualify it to fall within its legal definition. Consequently, the holding company is not a non-bank financial intermediary or an investment company subject to LBT.
The CTA has been consistent in its rulings and rationale such that LGUs should do well to issue assessments for deficiency LBT that are consistent with the provisions of the LGC.
 
Cristina D. Panlilio-Ong is a Director 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.

Insights into the World Bank’s Insights

The World Bank has come out with a Philippine poverty assessment report titled Making Growth Work for the Poor (2018).
It works on the assumption, now an adage, that growth is a necessary but insufficient condition to reduce poverty.
The publication has loads of information, drawn mainly from official Philippine statistics, regarding poverty, growth, and inequality. The report presents the contemporary pattern of economic growth.
Despite better growth compared to previous decades and despite the country having exited from the boom-and-bust cycle, the decline in poverty rate from 2006 to 2015 has been slow. The annual average of the rate of decline of the poverty rate from said period is 0.9%. This pales in comparison to the performance of neighboring countries like Vietnam, Indonesia, and China whose poverty rates decreased by more than double the Philippine rate for a similar period. This suggests that improving the quality of growth remains a great challenge for the Philippines.
The publication describes the characteristics of the poor — who they are, where they are, their income and sources of income, the non-income (e.g., health and education) dimensions of the poor, their vulnerability to disasters and conflicts. It also covers labor market performance, the quality of health care and education, and the impact of private and government transfers on poverty.
Where the report is weak is in the area of policy recommendations.
The chapter on “potential policy remedies” is the thinnest part (not including the executive summary). Of course, length is not associated with depth.
But the “policy remedies” that the World Bank assembled are too general, In fact those remedies could have been applicable in yesteryears, even though Philippine development has seen change, no matter how incremental, through time.
Consider these general statements:

• “Facilitate the creation of more well paying-jobs.”

• “Improve the business environment to attract more investment.”

• “Upgrade value chains to support strong and sustainable growth.”

• “Strengthen backward and forward linkages to build on the comparative advantages of skilled labor and create jobs for the unskilled.”

• “Improve productivity in all sectors, especially agriculture.”

• “Increase agriculture productivity”

• “Support agribusiness and broader value chain development.”

• “Ensure that Filipinos acquire the skills they need for the 21st century economy.”

• “Boost learning in basic education overall and increase secondary enrollment and completion among the poor.”

• “Develop socioemotional skills in addition to traditional technical skills and cognitive skills.”

Etcetera.
We expect the World Bank to go beyond motherhood statements. The World Bank’s senior regional officer Leonora Aquino Gonzales clarifies though that the report is “foundational.”
For deeper analyses one has to read other World Bank papers or publications, such as the Philippines Economic Update.
The strength of Making Growth Work for the Poor is the assembly and distillation of rich data derived from official Philippine statistics. The rich information will illuminate policy proposals for debate.
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A word of caution though is how to treat correlations that are not explained.
For example, one figure in the report (Figure 2.9) shows poverty rate by educational attainment of the household head. The graph shows that poverty almost does not exist for a household whose head is a college graduate. But it is incorrect to conclude from here that college education is the predictor of poverty eradication. The more plausible direction of the causation is that those who graduate from college are not poor at all. In other words, this is not an argument for free college education.
In the same manner, we have to be wise in interpreting another set of data on the contribution of income sources to poverty reduction for the period 2006-2015.
The main contributor to poverty reduction is nonagriculture wage. A far second constitutes government transfers. Domestic remittance, agricultural wage, nonagricultural enterprise, and foreign remittance follow in that order as sources of reducing poverty. What may seem surprising is that agricultural enterprise even contributes to an increase in poverty incidence. But then, the causation cannot be established because in the first place the overwhelming majority of the poor are in rural areas and are engaged in agriculture production.
Yet, the said figure is most useful in crafting the appropriate policy intervention that has the most impact in reducing poverty. Clearly, wage as a source of household income is the biggest contributor to poverty decline. Supplementary sources are government transfers and private remittances (principally domestic).
The expansion of wage as the main source of income for households is contingent on sustained growth and investments that expand the formal economy. Domestic remittances (from urban workers to rural households) happen when jobs are regular and when jobs provide better pay, enabling a transfer of the income surplus to the workers’ poor families. Cash transfers and augmented provision of essential services are made possible because of the wider fiscal space, thanks to new revenues, that government has.
Indeed, since 2012, we have seen a perceptible, incremental change in the structure of the economy. The increase in the share of manufacturing in national output and the increase in the percentage of workers receiving wage income are characteristics of this positive change. To be sure, much has to be done, especially on the agriculture front.
The trend holds.
The latest survey from the Social Weather Stations (first quarter of 2018) shows a decline both in self-rated poverty and food poverty. The labor force survey for April 2018 shows an increase in the percentage of the labor force receiving wages, an increase in percentage of those in the manufacturing sector, and an increase in the percentage of full-time workers.
Undeniably, good macroeconomic policies contribute to this change. The policy continuity in fiscal policy, especially tax reform, has contributed to the growth momentum.
The Bangko Sentral ng Pilipinas also deserves credit for benign inflation (the current inflation rate is manageable, based on historical standard) and a competitive currency.
We must protect and advance further the macroeconomic reforms.
At the same time, we must fight against massive and brazen corruption, wasteful spending, and the weakening of institutions and the erosion of rule of law that spook investors. These are the basic tasks that have to be fulfilled to quicken the pace of eliminating poverty, reducing inequality, and attaining long-term prosperity.
Beyond publishing reports like Making Growth Work for the Poor, the World Bank can play a more active role in shaping the policy reforms.
 
Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.
www.aer.ph

Philippine fisheries dying

Philippine fishery production declined between 2010 and 2017. As a result, since 2010, the contribution of fishery to agriculture growth has been negative.
Caught fish retail prices increased faster in Metro Manila: galunggong rose by 30%from 2010 to 2016 versus pork which increased by 22%, dressed chicken by 16%, and bangus and tilapia by 17% through 2017.
The decline in fishery production is largely a result of the destruction of coral reefs, which serve as habitat for marine organisms. Coral reefs are suffering despite long-term measures outlawing damaging fishing practices.
MUNICIPAL CATCH
Among the top seven species of fish, six posted declines between 2010 and 2017 for a total decrease of -22%. Galunggong catch fell by -27%, tulingan -17%, and alumahan -23%. During the period, Philippine population rose by 12.5%.
COMMERCIAL CATCH
The seven main species all posted declines. Overall decline was 29%. The decline may not have been all caused by fishing methods inside national boundaries, but the large contraction is a cause of concern. Overfishing in the West Philippine Sea is also a cause for concern.
Galunggong catch decreased by 34%, tamban -35%, tunsoy -25%, and tulingan -18%.
Fish Catch
A study (2018) by the Institute for the Oceans and Fisheries and the Landscape Ecology Group at the University of British Columbia (UBC) tracked changes in fishing methods — such as hand line, traps, and nets — used on coral reefs in the Philippines between 1950 and 2010.
Here are their findings:
From the 1960s onwards, the use of relatively sustainable fishing methods like hook and line fishing remained stable. However, there was a marked increase in the use of fishing practices that were less selective and more destructive, even illegal.
About a quarter of the fishers use destructive methods including explosives and poison, which were both outlawed by the Philippine government in 1932. Most other destructive fishing methods were outlawed by the government in 1998.
Despite laws that banned destructive fishing, the use of such illegal methods persisted.
For example, a growing number of fishers used crowbars to break apart corals so they could catch valuable but elusive animals such as abalone.
The UBC study found that total fishing efforts expanded by more than 3.4-times between 1960 and 2010 due to an increase in damaging practices and number of fishers. Previous research found that the increase in fishing effort was even greater when they considered the locations where people fished, since fishing tends to be concentrated in popular areas.
National fishing policies and development funding in the Philippines during the 1970s and 1980s promoted higher catches of marine life and the team found this corresponded to an expansion in the tools and methods used by fishers. Changes in fishing gear use persisted decades after those same policies were stopped in order to promote sustainable fishing.
The lead author said:“If the Philippines were to fully implement its new fishing laws on sustainability, then ocean protection would improve and use of damaging gears would decline… Fisher organizations can also take the lead, as sometimes happens in the Philippines, and cooperate on limiting destruction, ideally with support from local government.”
WAY FORWARD
Overall, supply of caught fishes have declined and prices have dramatically increased. In the medium to long-term, intensive enforcement can limit destruction in fisheries. However, only aquaculture can save the day for future fish supply.
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

One more bucket list item accomplished

Ten years ago, my family took our first ever cruise to celebrate three milestones: my 38th wedding anniversary, 60th birthday and my youngest daughter’s 28th birthday. We chose Alaska via Vancouver (first time for all of us) and, on our return spent a week in Whistler, a skier’s destination, before returning home. Not sure now if we flew PAL or Cathay Pacific, but our cruise line was Royal Caribbean.
That’s the thing about cruises. What you pay for up front covers all your expenses on board — food, drinks, entertainment, sports facilities, spa, barber or beauty salon, library, theaters — except for the on-board casino, shopping outlets, specialty restaurants where you pay as you go and gratuities. Side trips at certain stops are also not free but worth your while with extra cash in your wallet.
We took the 7-day cruise. We said we should see the glaciers before those turn to ice cubes no thanks to climate change. We traveled in May for two reasons: first, our grandkids were on summer vacation; second, we took the voyage and booked our hotels based on off-season rates. The cold didn’t matter much since the temperatures wouldn’t change much in Alaska.
We saw a glacier cracking and falling into the sea; a multitude of sea life — orcas, seals, walruses, bald eagles and dolphins — as well as land-based wildlife like bears, elk and deer; a tour by a National Park Ranger; a pit stop at a mining town with people in period costumes. We also took a train ride through snow-capped mountains. Some of us toured a glacier.
In Whistler, our 5-star hotel was 1/5 of the cost during peak season. Our hotel in downtown Vancouver was also a bargain. We toured in two F-300 vans that had enough room for 15 of us plus our luggage. The men in the family took turns driving the vans, while the women shepherded our youngsters. We zip-lined, drove ATVs, visited friends and family in Vancouver and marveled at the breathtaking beauty of God’s creation.
Fast forward to May 2018. Next in our bucket list was New Zealand. Again another destination none of us ever saw. We were a larger family now — twenty went but 3 were left behind in Manila. This time we took PAL going there and back, and Air New Zealand for the local flights between North and South Island. Our first stop was Auckland, our second was Queenstown; both sites the locations for Lord of the Rings.
Like our first bucket list trip, we experienced spring weather (Vancouver/Auckland) where average temperatures were around 16 degrees Centigrade and the winter cold (Alaska/Queenstown) where it averaged between zero to 3 degrees C. The only distinction was the rain that kept falling in Auckland. Amazing how the weather could change, from wet to dry to wet, in minutes.
Auckland is a good hub for out-of-town trips to picturesque destinations like Rotorua, Hobbiton, and Waiheke Island. Our mistake was that we didn’t use Rotorua as the hub. Auckland is still growing but needs a good makeover. There are some nice spots but, over-all, it’s bland and the people in the hospitality business need better service-orientation. We felt at home whenever we bumped into fellow-Filipinos residing there.
Hobbiton was great for the kids. It was the movie set on a vast privately owned farm for the Hobbit, a spin-off of the globally acclaimed Lord of the Rings movie series. The 2-hour drive alone from Auckland was a treat as we went through quaint towns and feasted on lovely landscapes of rolling grassy fields with sheep and cattle grazing in large pens. The Glow Worm Cave was another wondrous treat for the kids.
The adults, on the other hand, enjoyed Waiheke Island that had vineyards and estates that served superb wine with outstanding cuisine while soaking in the lovely landscape and enjoying “Baguio weather.” The constant rain dampened our eagerness to explore the city on foot. When I had the chance I worked out my leg muscles on hilly streets which prepped me for Queenstown.
Queenstown was a two-hour flight from Auckland.
In both destinations, we booked apartment hotels with kitchenettes, but it was in Queenstown where we were motivated to prepare breakfast and cook dinner. My apartment there had a frontal view of the lake and the snow-capped mountains right outside our living room and bedroom windows. It had a fireplace that we kept gong to keep us warm.
Queenstown was straight out of a fairy tale book. Majestic vistas, quaint neighborhoods and friendly people blended to give Queenstown its well-deserved fame. We loved walking to the town center, a block away from our apartel. There was a wide variety of restaurants, boutiques, souvenir shops, grocery stores and pharmacies to choose from. My grandkids took to the “haka” very quickly.
Milford Sound is a 3-hour drive from Queenstown; and the Nicholas farm us a 45-minute ferry ride from the town’s jetty, a lazy 15-minute walk from our apartel. Milford thrilled the kids with dolphins that put on a show alongside our boat, and the many waterfalls we saw along the way. At the farm, we toured the vast estate that bred cattle, deer and sheep. The farmer’s lunch we ate was purely organic.
Just like on North Island, our out-of-town trips on South Island brought us to more of God’s country. We “oohhed” and “aahhed” as postcard perfect landscapes came into view. We rode superbly-maintained tour buses and our carefully selected pit stops gave the kids the chance to romp in the snow, take pictures and load-up on food and drinks.
Before our next overseas adventure, the family will keep visiting our domestic destinations. They’re in our bucket list too.
Here’s my advice: we, too, need a makeover. It’s everyone’s responsibility to make tourism our primary economic driver.
Our country can be the region’s top water sports, cruise, agri, eco, medical, food and entertainment destination. With the right mindset, skill sets and tool kits, we can do it.
 
Rafael M. Alunan 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

All lives count. So should all deaths

By The Editors
Bloomberg
ACROSS the world, tens of millions of deaths go unrecorded each year. This lack of information is a killer in its own right: Without an accurate measure of deaths and their causes, fighting disease in low- and middle-income countries is much harder. Investing in the means to keep track of lives and deaths would be money well spent.
Knowing how people die is essential to stemming epidemics of infectious illnesses and to steering people toward behaviors that protect them from lifestyle-related conditions including obesity, diabetes, heart disease, lung disease, certain cancers and even dementia.
Such noncommunicable illnesses have become the world’s leading killers. Yet in most of the world, if deaths are officially reported at all, they are described in highly generalized ways. In Malaysia, for instance, almost a third of deaths are listed by family or police officers as “old age.”
Many countries still don’t have the basic bureaucracy and trained work force needed to meticulously and systematically record how many people are born and die each year. Even those with the requisite computer capacity often lack the political will to gather the data.
The necessary work is fairly straightforward, and is helped along by the ubiquitous use of smartphones and tablet computers in even the poorest countries.
tombstone
A trained health worker’s description of a deceased person’s symptoms can readily be uploaded from such devices to a central repository, where the cause of death can be automatically estimated. (Bloomberg Philanthropies’ Data for Health initiative is helping establish such systems, for example in Papua New Guinea.)
Done promptly, this recording can alert public officials to early signs of an influenza outbreak or other epidemic. Peru’s health ministry, which recently switched to an electronic recordkeeping system, reduced the time it takes to report mortality data from two years to two weeks.
There are other ways to improve data collection.
By prohibiting burials with no death certificate, Bahrain was able to expand its data-gathering to include every death in the country. In one sub-district of Bangladesh, a pilot project to have community health workers rather than family members report deaths expanded registration to about nine in 10 deaths, from less than one in 100.
These efforts require no technology.
But when combined with electronic recordkeeping, they can ensure that the living benefit. It might seem unexciting, but counting deaths and their causes saves lives.

Duterte: You cannot scare China

By Arjay L. Balinbin, Reporter
President Rodrigo R. Duterte on Monday, June 18, defended the People’s Republic of China amid criticisms arising from the South China Sea dispute.
“China is no pushover. You cannot scare them, and even the US has shown a little bit of apprehension,” Mr. Duterte said in his speech at the 120th founding anniversary celebration of the Department of Foreign Affairs (DFA) in Pasay City on Monday afternoon.
He also said anew that the Philippines “will never go to a battle that it cannot win.”
“I am not prepared to sacrifice the lives of the Filipino people,” he said.
As for the confiscation of Filipino fishermen’s catch by the Chinese coast guard in the disputed waters surrounding the Panatag Shoal, the President said it was only a form of “barter.”
“It was barter…But the problem was the valuation. You do not have a way [to determine the value of goods]…Hindi tayo nagkakaintindihan dito (There is misunderstanding among us in this issue). It was not an outright seizure,” he explained.
For his part, Foreign Affairs Secretary Alan Peter S. Cayetano said: “We would like to assure the public that we are protecting every single square inch of our territory.”
He added: “President Duterte, even before he won, knows independent foreign policy; he understands geopolitics.”
Also during the event, Mr. Duterte conferred the following Presidential Awards to outstanding DFA officials— Gawad Mabini with the Rank of Kasugo or Member, Gawad Mabini with the Rank of Dakilang Kasugo or Commander, Gawad Mabini with the Rank of Dakilang Kamanong or Grand Cross, the Order of Sikatuna, and the Order of Lakandula— in recognition of their achievements during their service in the DFA, the Presidential Communications Operations Office (PCOO) said in a statement on its official Facebook page.
The DFA, according to the PCOO, was established on June 23, 1898 when President Emilio Aguinaldo appointed Apolinario Mabini as the Philippines’ first Secretary of Foreign Affairs (SFA).
“Since then, the DFA continues to further enhance and strengthen the Philippines’ interests and diplomatic ties in the global community,” the PCOO also said.

Peso slumps to hit fresh trough

THE PESO dropped to a new 12-year low on Monday.

THE PESO slumped further against the dollar on Monday, hitting a fresh low, as trade tensions between the United States and China continued to worry investors.
The local unit ended Monday’s session at P53.48 against the dollar, 21 centavos weaker than the P53.27-per-greenback finish on June 15.
This is another new low for the local unit in nearly 12 years or since it closed at P53.55 per dollar last June 29, 2006.
The peso traded weaker the whole day, opening the session at P53.46 against the US currency. It slipped to as low as P53.50, while its intraday high stood at P53.40 versus the greenback.
Dollars traded declined to $568 million from the $796.45 million that switched hands last Thursday.
Analysts interviewed on Monday said the peso slumped anew on the back of the renewed trade tensions between the world’s two biggest economies.
“This movement can be taken from the global trade worries due mainly from China immediately responding from [the tariffs imposed by the US],” Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, said in a text message.
“Any trade war between the US and China could reduce US imports and could strengthen the US dollar as a result, especially versus other global and emerging market currencies,” Rizal Commercial Banking Corp. Head of Economics and Industry Research Division Michael L. Ricafort said.
A foreign currency trader said the trade spat between Washington and Beijing prompted investors to flock to safe-haven currencies.
“Less hawkish guidance from the European Central Bank last week likewise gave boost to the dollar,” the trader added.
Meanwhile, Mr. Ricafort said the two-month low in global oil prices amid expectations of oil production hikes from the Organization of the Petroleum Exporting Countries could give the local currency some boost.
“[This] could be a positive development on the peso as this helps reduce the country’s oil import bill and narrow the country’s trade deficit,” he noted.
For Tuesday, Mr. Asuncion expects the peso to move between P53.40 and P53.60 versus the dollar, while the trader gave a P53.45-P53.60 range.
“The local currency might depreciate tomorrow on account of possible hawkish cues from speeches of Fed member William Dudley which might strengthen the case for a fourth rate hike from the Federal Reserve,” the trader noted. — Karl Angelo N. Vidal

PHL stocks down on cautiousness ahead of BSP

LOCAL EQUITIES plunged on Monday, bringing the index to a new low for the year as investors stayed cautious ahead of the Bangko Sentral ng Pilipinas’ (BSP) meeting on Wednesday amid a weakening peso.
The 30-member Philippine Stock Exchange index (PSEi) sunk to as low as the 7,300 level Monday, June 18, before paring down losses to 1.53% or 115.43 points to settle at 7,414.11 by the closing bell. The main index recorded an intraday low of 7,328.30, its lowest so far for the year.
The broader all-shares index likewise gave up 1.35% or 62.14 points to 4,531.04.
“The peso’s unrelenting depreciation continued its barrage on the index as its new 2018 high of P53.53 in the morning led the PSEi to gap down 125 points at the open. With the index opening below its previous 2018 low of 7,457.05, sellers immediately took this as a bearish sign,” Papa Securities Corp. trader Gabriel F. Perez said in an e-mail.
Mr. Perez said they are looking forward to the BSP’s policy meeting on Wednesday, which could further prompt weakness in the peso.
“Investors likely lightened ahead of the BSP’s policy decision this Wednesday. A retaliatory response by China after the US decided to levy more tariffs on Chinese imports may have also dragged sentiment for the day,” China Bank Securities Corp. Research Director Garie G. Ouano said via text.
US President Donald J. Trump announced last week that Washington slapping a 25% tariff on $50 billion worth of Chinese goods. In response, China is imposing a similar-sized set of levies on $50 billion worth of American goods such as beef, poultry, tobacco, and cars.
Aside from China, the US has also imposed 25% tariffs on steel and 10% on aluminum against the European Union, Canada and Mexico.
Following this, the Dow Jones Industrial Average shed 0.34% or 84.83 points to 25,090.48. The S&P 500 index declined by 0.10% or 2.83 points to 2,779.66, while the Nasdaq Composite index also went down by 0.19% or 14.66 points to 7,746.38.
Locally, sectoral indices bled on Monday. The mining and oil counter led the decline with a loss of 2.82% or 286.58 points to 9,844.19. Financials shed 2.15% or 40.61 points to 1,841.83, while holding firms slumped 1.79% or 135.11 points to 7,379.55.
Services slipped 1.57% or 23.49 points to 1,469.94; industrials went down by 1.53% or 164.91 points to 10,560.78; while property dipped 0.22% or 8.22 points to 3,587.83.
Some 1.61 billion issues switched hands, resulting in a turnover of P7.75 billion, dropping from the previous session’s P12.31 billion.
Decliners outpaced advancers, 161 to 44, while 40 names remained flat.
Foreign investors remained sellers, albeit the net outflow dropped to P1.29 billion on Monday from the P2.22-billion net sales seen last Thursday. — Arra B. Francia

Palace insists talks with Reds in PHL

By Arjay L. Balinbin, Reporter
MALACAÑANG ON Monday maintained that peace negotiations with communist rebels be held in the Philippines without a third-party facilitator.
“Paulit ulit po niyang sinasabi iyan ([President Rodrigo R. Duterte] has repeatedly said) that the peace talks must be held here in the Philippines. That is why his last declaration was that, it should be held here in July instead of this month,” Presidential Spokesperson Harry L. Roque, Jr. said in a press briefing at the Palace.
Mr. Roque also said there is no need for a third party facilitator in the talks. “Wala na po siguro, kasi nandito naman tayo sa Pilipinas (Perhaps there is no need, because we’re here in the Philippines),” he said.
For his part, exiled communist leader Jose Maria C. Sison said the Duterte administration “is not interested in serious peace negotiations with the NDF (National Democratic Front),” the communist coalition of which Mr. Sison is chief political consultant.
Mr. Roque said Mr. Duterte “has not given up on the peace process with the communists, but it should be inclusive and should pass legal scrutiny.”
“The President is dead serious about it. He has already asked the Department of Justice to file the necessary motions in Court to set free individuals who will be participating in the talks and I think that is the best evidence of good faith on the part of the government. Of course, there’s information that these individuals cannot be located anymore even if they did not leave the country for Oslo, Norway. But nonetheless the President says he will give the process a chance which I declared as of the last press briefing that we had,” Mr. Roque said.
He added there is already “a panel” in the Philippines and it has the “authority to fix the logistics,” but “any party who wants to help and who’s been involved in the process can help.”
The venue for peace negotiations “should not matter,” Mr. Roque also said.
For his part, Mr. Sison said the cancellation of the talks was made in consideration of the Armed Forces of the Philippines’ (AFP) plan for an all-out offensive until the end of the year.
“By calling off the scheduled peace negotiations with the NDFP, Duterte aims to give the AFP more time to complete its military campaign plan for 2018 of mounting bigger offensives under Oplan Kapayapaan in the hope of crippling the NPA (New People’s Army) and inducing the NDFP to negotiate a surrender,” he said in a statement on Sunday.
Mr. Sison also posted on his Facebook page over the weekend copies of a stand-down agreement dated June 9 and signed in Utrecht, The Netherlands, Labor Secretary Silvestre H. Bello III, negotiating chairperson for the government, and Fidel V. Agcaoili on behalf of the NDFP.
The document states that both parties “agree to a stand-down of their respective resumption of the formal peace talks, in order to provide through goodwill and confidence-building measures the positive atmosphere conducive to moving forward and completing the peace negotiations and the implementation of agreements entered into or may be entered into.”
In a press statement on June 13, Mr. Sison said the agreement was supposed to “start on June 21, one week before the resumption of formal talks in Oslo on June 28.”
Asked about the agreement, Mr. Roque said: “I cannot comment on any document not released officially by the Philippine government. That is why I was silent last week despite all the pronouncements of Joma Sison. I cannot comment on anything that the CPP (Communist Party of the Philippines)-NPA-NDF says or releases because I take my cue, of course, from the government.”
But Mr. Roque also said “there is no stand-down agreement.”
“Wala pa naman pong (there is no) resumption of peace talks [yet]. I’m sure kung magkakaroon po ng (if there is) resumption of peace talks, that will be considered,” he added.
He said further that the Palace “finds it somehow irregular that the NDF has taken upon itself the role of informing the public what has been or what has not been agreed upon.”
“I think out of deference to the government, they should await government’s announcements and should not preempt government in making these announcements,” Mr. Roque said.
He also said the President wanted to “review (first) certain matters in connection with the peace talks.”
As for claims that the government was prevailed upon by the AFP to cancel the talks following last week’s joint conference with the Philippine National Police (PNP), Mr. Roque said: “I can tell you, unequivocally, that was not the case. It was the President alone who wanted to review certain matters in connection with the peace talks. And as you know, the President has been consistent that the venue should be in the Philippines and he has, as I said earlier, given assurance that he will provide for the sustenance of the NPA including their fighters while peace talks are ongoing.”

DoJ voids BI orders on Australian nun

By Dane Angelo M. Enerio
THE DEPARTMENT of Justice (DoJ) has nullified the Bureau of Immigration’s (BI) orders against Australian missionary Patricia Fox, reinstating her missionary visa and allowing her to stay in the country.
BusinessWorld reported on May 23 that Ms. Fox petitioned the DoJ to reverse the BI’s directive dated April 23 that forfeited her visa and ordered her to leave the country by Monday.
According to Justice Secretary Menardo I. Guevarra, the BI’s forfeiture of Ms. Fox’s visa for allegedly participating in illegal political activities was “without legal basis.”
In a statement released on Monday, Mr. Guevarra said, “Our existing immigration laws outline what the BI can do to foreigners and their papers — including visas — when they commit certain acts within Philippine territory. What the BI did in this case was beyond what the law provides, that is why it has to be struck down.”
“[W]hile Philippine immigration laws give the BI broad powers in regulating the entry and stay of aliens in the country, visa forfeiture is not among those powers,” Mr. Guevarra said in the statement.
He agreed with the BI’s argument that visas are a privilege but noted that, “just because it is a privilege does not mean that it can be withdrawn without legal basis.”
“The BI cannot simply create new procedures or grounds to withdraw a visa already granted to a foreigner,” Mr. Guevarra said.
He added that “there are specific grounds for visa cancellation, such as fraud or misrepresentation. The BI adopted a procedure styled as forfeiture that did not address any of these grounds at all.”
The DoJ statement, however, also pointed out: “While the Resolution declares the missionary visa granted to Fox as still valid and subsisting, it nevertheless treats the case so far commenced against her as one for visa cancellation, a procedure which — according to the Resolution — is among those allowed by laws and the rules.”
“The BI treated this as a case for a visa forfeiture instead of one for visa cancellation. As a result, the Bureau has yet to decide whether the supposed actions of Fox do indeed justify the cancellation of her visa. It would therefore be premature for us at the DoJ to decide that matter now,” Mr. Guevarra said.
“For that reason, we are returning this case to the BI for its proper disposition,” he added.
The statement clarified that “until a final resolution of the visa cancellation and/or deportation proceedings is reached, or until the expiration of her missionary visa, whichever come first, Sister Fox may continue to perform her duties as a missionary in the Philippines.”
Sought for comment, Presidential Spokesperson Harry L. Roque said, “We respect that resolution by the DoJ secretary.”
President Rodrigo R. Duterte admitted on April 18 he personally ordered the investigation on Ms. Fox and also accused her of “bad-mouthing” the administration.

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