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Why low or zero income tax can mean more development

“The people are hungry: It is because those in authority eat up too much in taxes.

When the government is too intrusive, people lose their spirit.”

— Lao Tzu, or Laozi
(6th-5th century BC)

The good news about the new tax law called TRAIN (Tax Reform for Acceleration and Inclusion) is that overall personal income tax (PIT) rates have declined. The bad news is that the high rates of 30% and 32% were retained, and an even higher rate of 35% was introduced for incomes P8 million a year or higher.

In a period of growing global tax competition, growing decentralization if not disintegration by big governments and countries, economies should introduce low taxes.

Currently, Asian economies with low, flat income tax rates are Mongolia with only 10%, Macau with 12%, and Hong Kong with 15%.

Currently too, there are 10 countries and/or jurisdictions around the world that have zero income tax policy.

Eight of them are in the table below, the two others, Bermuda and Cayman islands, have no available data in the IMF and WEF reports. Hence, they are not included in the table. The global rank and score in the World Economic Forum’s (WEF) annual Global Competitiveness Index (GCI), pillar #1 — Institutions, would represent or proxy for the rule of law of countries included in the report (see table).

GDP per Capita

These numbers show the following:

1. Citizens of zero income tax countries on average are actually richer (except Bahamas) than people of countries that impose and collect income taxes.

2. Zero income tax countries on average have high scores and rank in the WEF’s GCI (except Kuwait), in institutional strength. The same pattern is also observed for developed Asia except South Korea.

3. Developing and emerging Asia like the ASEAN 5 in the above table have lower scores and global ranking, except Malaysia.

One lesson here is that it is the rule of law, the stability and predictability of institutions, public and private, that largely determine an economy’s wealth and prosperity. Not higher taxes and welfarism, not more regulations and endless subsidies.

These countries like Qatar, Brunei, and United Arab Emirates, even Singapore and Hong Kong, are not known for their big mountains and waterfalls, many white sand beaches and sprawling golf courses. They are known for their liberal and secure investment policies that properly respect and protect private property rights, especially big investments and projects, and non-intrusive tax policies.

Currently, the Department of Finance (DoF) is preparing TRAIN 2, focus on lowering the corporate income tax (CIT) rate from 30% to 25% but with fewer fiscal holidays and exemptions. The goal of DoF is to have a “revenue neutral” law, reduce revenues on one side to be compensated by additional revenues on the other side.

Since the Duterte administration is gung-ho on federalism, this will be a good opportunity for them to drastically cut CIT — only 10%, or 15%, little or no exemptions — then allow the regional or state governments to have their own CIT.

The advantage of this setup is that it instills tax and investment competition among the regions and states.

Thus, the future state of southern Luzon for instance will have a CIT of 15%, the state of western Visayas will have a CIT of 10%, the state of northern Mindanao will have a CIT of only 6%, another state will have zero CIT, and so on.

The DoF should align its fiscal priorities with the political priorities of Malacañang and Congress.

TRAIN 1 was lousy because it raised many national taxes or created new ones even if the DoF is aware that soon there will be less national government departments, bureaus, and welfarism to be compensated by more state government departments and welfarism.

Let TRAIN 2 compensate for the short-sightedness of TRAIN 1. Let the national and soon federal government step back as the regional and state governments step forward.

 

Bienvenido S. Oplas, Jr. is President of Minimal Government Thinkers, a member-institute of Economic Freedom Network (EFN) Asia.

minimalgovernment@gmail.com.

Film and television director Maryo J. delos Reyes, 65

ACCLAIMED film and television director, Maryo J. delos Reyes passed away Saturday night at the age of 65 after suffering a heart attack in Dipolog City, Zamboanga del Norte.

“It is with deep sadness that we inform everyone that our beloved Maryo J. delos Reyes passed away at 10 p.m., Jan. 27, 2018. Details of his wake and funeral services to follow,” said Mr. Delos Reyes’ manager, June Rufino, in a statement posted on Twitter by ABS-CBN’s MJ Felipe.

“We have loved him in life, let us not forget him in this time of sorrow,” Ms. Rufino added.

Mr. Delos Reyes, who directed films for almost four decades, was the man behind two films that made a big impact on young people.

His first movie, Viva Films’s coming-of-age movie Bagets (1984) — which starred William Martinez, J.C. Bonin, Herbert Bautista, Raymond Lauchengco, Aga Muhlach, Eula Valdez, Yayo Aguila, and Jobelle Salvador — became a touchstone for that generation.

Then in 2003 he directed Magnifico (2003), a drama about an inspiring, determined boy. The film won the Crystal Bear in the 2004 Berlin Film Festival Children’s Category and Deutsches Kinderhilfswerk Grand Prix for Best Feature Film in the same festival.

Magnifico also won seven of the major FAMAS awards that year (Best Film, Supporting Actor, Supporting Actress, Child Actor, Child Actress, Director, and Story) and another seven awards from the Gawad Urian including Best Film (tied with Ang Babae sa Breakwater by Mario O’ Hara), Direction, Actor, Supporting Actor, Supporting Actress, Screenplay, and Sound. The film was also given the Best Film of the Decade award by the award-giving body.

Mr. Delos Reyes’ Naglalayag (2004), also won the Special Jury Award in the international competition category at the Brussels International Independent Film Festival held the same year.

His first films were Disco Fever in 1978 and Annie Batungbakal in 1979.

His last film was The Unmarried Wife, released in 2016 from Star Cinema.

Beyond making films, Mr. Delos Reyes also directed a number of TV series including ABS-CBN’s Mga Anghel na Walang Langit (2005-2006) and GMA’s Rosalinda (2009), and Gumapang Ka sa Lusak (2010). He got his start in television in the 1970s, directing Ang Makulay na Daigdig ni Nora.

He was signed on to direct Hindi Ko Kayang Iwan Ka which is set to premiere in February in GMA network’s Afternoon Prime lineup.

Mr. Delos Reyes was the festival director of the ToFarm Film Festival — now going into its third year — which is dedicated to highlighting the plight of the Filipino farmer.

Born on Oct. 17, 1952 in Santa Cruz, Manila, Mr. Delos Reyes was the son of a professor and a civil engineer. He started directing plays in high school at the Our Lady of Guadalupe Minor Seminary and went on to work with the Philippine Educational Theater Association (PETA), directing a number of its plays in the 1970s including Tatlong Manyika, Limot at Ligaya sa Rhumbacita, and Artista sa Palengke, aside from working with other groups.

“Thank you so much for the love and trust you gave me and Ice (Aiza Seguerra),” wrote Mary Liza Diño-Seguerra, Film Development Council of the Philippines (FDCP) chairwoman and CEO, in a Facebook post. “Since I started being one of your actresses way back in 2003 and even until now, you have always been there supporting me. When I became FDCP chair, you gave me even more support… You don’t know how much I was strengthened by your support. I learned so much from you every time we talk. It’s sad Direk, we had so many plans in developing the film industry,” she wrote in the vernacular. “This is a big loss. I still can’t believe it. Thank you for everything. Love you, direk. But I know you’re happy because you’re with the people you love,” she added.

“It is a sad day today for Philippine cinema to see the passing of another great movie director, Maryo J. delos Reyes,” wrote actor/politician Richard Gomez on his Facebook page.

“He was my first director in the movie Hindi Mo Ako Kayang Tapakan (1984) that top billed Ms. Charo Santos under Via Hoffman Productions. Direk Maryo shot my first scenes in the movie when I was a young boy together with Anjo Yllana and Nadia Montenegro.

“We will miss you direk. We were just reading a beautifully written script that was sent to me and Pia Campos by your office to consider a part. Sayang I thought we will be able to do one more movie together. We will miss you.” — ZBC

Weighing Alcala’s rice self-sufficiency program

The rice self-sufficiency program of former secretary Proceso Alcala was the banner program of the Department of Agriculture. No less than former president Aquino bragged about it twice in Congress in his state of the nation addresses in 2012 and 2013. He announced in 2013, “in all likelihood, even the private sector will no longer have to import rice because we are still on track to becoming self-sufficient in rice.”

Most of previous DA administrations typically allocated the bulk of resources set aside for agriculture and fisheries modernization to raising the productivity of rice, hoping that if they are successful the country may move closer to the goal of self-sufficiency.

The explicit targeting of zero rice imports first figured in the FIELDS program of the Arroyo government. Immediately after the 2008 rice price crisis, former Agriculture secretary Arthur Yap came up with the program to attain “rice self-sufficiency in three years.” He failed. In 2010, the third year of FIELDS, the country imported 2.4 million tons of rice.

When former secretary Proceso Alcala replaced him in 2010, the “three years” target stuck in his mind. He circulated his administration’s rice self-sufficiency plan and targeted zero imports by 2013, giving himself 3 years to do the work. But he may fail, so he gave himself a second chance, another 3 years for the country to be self-sufficient in rice in 2016.

THE PLAN
The DA planned for the country to produce 21.12 million tons of palay in 2013 to meet the country’s palay requirement, or 22.5 million tons in 2016.

The DA identified the following sources of incremental production: gains in area harvested; higher farm yields; research, development and extension service; farm mechanization; post harvest loss reduction; and organic fertilizer application. The largest contributor of the targeted additional production is irrigation: expanding the area harvested, and 65% of the program’s cost went to repair existing and to constructing new irrigation facilities.

The estimated cost of the plan was P141.98 billion over a period of six years, or approximately nearly P23.67 billion a year. The actual cost may have varied through the years.

ACCOMPLISHMENT
The DA failed to attain both targets.

In 2013, the country harvested 18.44 million tons of palay, 2.67 million tons short of target. In 2016, the shortfall was larger, 4.86 million tons.

Former secretary Alcala acknowledged the failure but claimed credit in pushing the self-sufficiency ratio (SSR) to 96% and blaming supertyphoon Yolanda for the failure.

He said to Rappler reporter Ranada (2014) of the DA’s performance in 2013: “The Philippines is currently 96% self-sufficient in rice. It did not meet its target of 100% self-sufficiency in 2013 because of damage caused by typhoons, notably supertyphoon Yolanda.”

Let me deal first with the damage of Yolanda.

Yolanda destroyed 143,774 tons of palay planted in 77,476 hectares of land (Rappler, 2013). If this loss was added to the actual output of the country in 2013, the country would still be about 2 million tons short of target output in that year.

What SSR did Alcala use?

Secretary Alcala claimed his administration pushed the SSR to 96.82% in 2013 from 81.27% in 2010. He used the index of the Philippine Statistics Authority (PSA), which measures the percentage of the country’s actual rice output in a year to its actual use. Getting 100% of PSA’s index sounds good, i.e. we produce every rice ton we use in that year.

Not necessarily.

Even if we produce as much as we consume, it would still be bad policy to have zero imports or exports.

Instead of expensive storage, it is more efficient to export when domestic prices are seasonally low and import when they are high. The world can be our warehouse.

But there is even more fundamentally wrong with the index. In 1994, the index hit 100% because the NFA did not import rice saying that we don’t need to do so due to excellent production in northern Mindanao. But the country needed to import rice in that year; output in Mindanao was overestimated. True enough in 1995, rice queues formed at the gates of NFA warehouses, and the late Agriculture secretary Sebastian had to resign for the rice shortage.

The PSA’s self-sufficiency index is the wrong SSR to use.

If assessing the DA’s performance relative to its plan is the purpose, the appropriate score ought to be the actual output to requirement ratio. Using this, the 2013 SSR should be 87.33% not 96.82%.

The Alcala DA administration may nonetheless claim an accomplishment.

In 2010, this index was 77.88%, and moved up to 87.33% in 2013.

But the score was still 13.67 percentage points below target of 100%. Even if we adjusted the rice output due to supertyphoon Yolanda, the 2013 accomplishment would only be 90.5%.

The 2016 performance was slightly better, 78.38%.

FAKE RICE SELF-SUFFICIENCY
With the PSA’s SSR, former secretary Alcala was the judge of his administration’s performance. The PSA index is 100 times actual output divided by actual output plus net imports. So we have not been exporting rice, so the index can go up to 100% by not importing rice as what happened in 1994. Secretary Alcala had a conflict of interest situation in this.

As the Secretary of Agriculture, he chaired the NFA Council, which decides how much rice import to recommend to the President for approval.

But deliberately eliminating imports of rice as in 1994 increased the rice price and caused hunger in 1995. Head of the Social Science Division at IRRI in the 1980s and 1990s and presently a Scientist Emeritus also at IRRI, economist Dr. Randy Barker used to say: “It’s easy to achieve rice self-sufficiency; just stop importing. But the people will suffer.”

Let us look at the movement of the rice price during the Aquino government. After spiking in 2008, international rice price represented by the price of rice in Thailand fell. However local price of rice in the Philippines continued its climb. The data show that local shortages of rice in the country were inadequately relieved by local harvest and imported rice.

If the country were to be truly self-sufficient in rice, it would have to be at stable, affordable price of rice. If prices move up with the PSA’s SSR, that rice self-sufficiency gain is fake.

The PSA reported the increase in rice prices in 2013 in various regions of the country.

For the entire country, the agency reported that the rice price index jumped to 4.1% in 2013 from 0.9% in 2012. In the National Capital Region (NCR), the index rose to 4.9% from -1.5% in 2012, while in other regions other than the NCR, the corresponding figures were 4% from 1.2%.

The PSA further reported that the highest annual average uptick was noted in Region V (Bicol) and Region X (northern Mindanao) at 6.1% while the lowest was in Region XI (Davao) at 1.7%.

Higher rice prices immiserize the poor, further.

In 2008 when global rice prices spiked, Mapa et al. (2015) reported that the CPI spiked from 2.9% in 2007 to 8.3% in 2008. The authors reported that the CPI for the bottom 30% of the population, who spends about 40% of their consumption basket on rice, was 67% higher than the headline CPI.

Self-rated hunger indicators by the Social Weather Station likewise increased in the first quarter of 2013 to nearly a fifth of the household population from 16.3% in December 2012. In Mindanao in the same period, the proportion of households experiencing involuntary hunger rose from 20% to 29.2% as reported by UNWFP and FAO (2013).

NFA IMPORT MONOPOLY
As we discuss these days what to do with the NFA following the end of our rice waiver in the WTO, all the above could not have happened if we did not have rice import monopoly in NFA.

Consider these mistakes in our history, errors that could have been avoided if there was a decentralized rice import policy with the private sector participating in rice imports on their own: 1994, the Ramos government did not import to court the support of rice farmers for the election in 1995; 2008, the Arroyo government panicked in the global rice crisis, importing over 2.4 million tons of rice in the first half of that year when world rice prices hit roof, and we wasted the extra rice at NFA warehouses and NFA’s liabilities ballooned to P133.3 billion in 2008 from only P68.6 billion in 2007; and the government of former president Aquino through his Agriculture secretary Alcala showing, at the expense of the poor, that he can get hold of rice self sufficiency. He failed, blamed supertyphoon Yolanda for his failure, but claimed credit for pushing the SSR to 96.2%. Unfortunately, his rice self-sufficiency gain is fake.

(Owing to space constraints, citations were removed but are available upon request. — Ed.)

 

Ramon L. Clarete is a professor at the UP School of Economics.

ramon.clarete@econ.upd.edu.ph

Putin’s top enemy calls on rallies in show of defiance against ‘pseudo-elections’

MOSCOW — Russian opposition leader Alexei Navalny and his supporters geared up for a showdown with authorities on Sunday as Vladimir Putin’s top enemy urged nationwide rallies to protest “pseudo-elections.”

The 41-year-old charismatic politician called on Russians across the country to defy authorities and stage rallies calling for an active boycott of March 18 presidential elections despite the prospect of mass arrests.

Ratcheting up tensions, Mr. Navalny urged Russians to show up at unsanctioned rallies in the centre of Moscow and Saint Petersburg with placards and leaflets, a move that will likely lead to confrontations with police.

Rallies were planned in more than 100 cities across the country. In most cities, permission to stage rallies had been received, Mr. Navalny said.

“Your life is at stake,” he told supporters in a video address.

“How many more years do you want to live with these thieves, bigots and perverts in power? We’ve already endured this for 18 years.”

Mr. Navalny also warned that authorities planned to clamp down on his youngest supporters, tweeting a screenshot of a text message sent around ahead of the rallies.

RAIDS ARE POSSIBLE
The message urged parents to make sure their children do not attend the Sunday protests. “Raids are possible,” it said.

Mr. Putin’s spokesman Dmitry Peskov warned that unsanctioned rallies would lead to “certain consequences”, a thinly-veiled promise of punishment.

Ahead of the rallies, police raided Mr. Navalny’s Moscow headquarters and regional campaign offices and detained members of his staff and supporters.

Mr. Navalny — seen as the only politician with enough stamina to take on Mr. Putin — has built a robust protest movement despite constant police harassment, tapping into the anger of a younger generation yearning for change.

He says the upcoming election will be little more than a coronation of Mr. Putin who is widely expected to win a fourth presidential term and extend his Kremlin power until 2024.

Last year Mr. Navalny mounted a forceful bid to run for president but officials ruled him ineligible due to a criminal conviction which he says is politically motivated.

Mr. Navalny has said he would use the full force of his campaign — including more than 200,000 volunteers — to organize “voters’ strikes” and encourage Russians to stay away from polling stations on election day.

After 18 years of leadership — both as president and prime minister — Mr. Putin fatigue is spreading across the country.

The Kremlin’s biggest headache is the possibility of a low turnout which will harm Mr. Putin’s hopes for a strong new mandate, analysts say.

Mr. Navalny seeks to take the shine off Mr. Putin’s expected victory and highlight voter apathy in his crusade against the 65-year-old Russian leader.

“Turnout at these elections is extremely important for Putin,” Lev Gudkov, head of the Levada Centre, an independent polling group, told AFP.

“He needs to create the impression of not just a convincing victory but unanimous nationwide support, a plebiscite.” — AFP

MPTC to raise P35 billion for 2 projects

METRO PACIFIC Tollways Corp. (MPTC) plans to raise P35 billion during the first quarter to fund its Cavite-Laguna Expressway (CALAX) and the C-5 South Link project.

“For C-5 South Link and CALAX, we expect to have financial close in the first quarter,” MPTC chief financial officer Christopher Daniel C. Lizo told reporters in a recent interview.

Mr. Lizo said the tollways arm of the Metro Pacific group allotted P11 billion for South Link and around P25 billion for CALAX .

MPTC earlier said it is planning to spend P10 billion this year for its projects located in the south of Metro Manila, including CALAX and South Link.

In June 2017, the Metro Pacific group broke ground on the P35.43-billion CALAX project, which involves the construction of a 44.6-kilometer four-lane toll road between the Manila-Cavite Expressway (Cavitex) in Kawit, Cavite and the South Luzon Expressway (SLEx) — Mamplasan Interchange.

MPCALA Holdings, Inc., a unit of Metro Pacific, received the notice of award for the 35-year contract to build, operate, and maintain the planned expressway on June 8, 2015, but right-of-way issues for the project site delayed the start of construction.

MPCALA tapped DM Consunji, Inc. for the construction of the Laguna segment, and Leighton, a unit of Australia’s CIMIC Group Ltd., formerly Leighton Holdings, for the Cavite segment.

CALAX is scheduled to open in 2020 or early 2021, but Metro Pacific may open some portions ahead.

The C-5 South Link Expressway is a 7.7-kilometer, six-lane project which will connect C-5 road to Cavitex. The first phase of the project, worth P2.5 billion and covering 2.2 kilometers including a flyover above the SLEx and Skyway from C-5 Road in Taguig to Merville in Sucat, Parañaque, is now under construction.

The whole alignment of the C-5 South Link will be operational in 2020, but will be opened in phases starting next year.

MPIC is one of three key Philippine units of Hong-Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

EU alone in imposing human rights conditions to aid — DoF

THE Finance department said that it is only the European Union (EU) that attaches conditions requiring the government to observe a standard of human rights in financing agreements with the Philippine government.

“The EU is the only development partner of the Philippines whose financing agreements explicitly contain provisions that are linked to the national government conduct on human rights and rule of law,” Finance Secretary Carlos G. Dominguez III told reporters late Friday.

Quoting the general terms and conditions of EU financing agreements, Mr. Dominguez said: “‘Article 26.1: the commission may suspend this financing agreement if the partner country breaches an obligation relating to respect on human rights, democratic principles, and the rule of law, and in serious cases of corruption.’”

“Based on the financing grant agreements previously executed by the national government through the Department of Finance (DoF), none of our other development partners around the world have such provisions in their respective financing grant agreements, it’s only the EU, not the European countries,” he added.

Mr. Dominguez said that the DoF continues to deal with European countries individually including Austria, France, Germany, Italy, the Netherlands, Spain, and also countries such as Australia, Canada, China, Japan.

South Korea, New Zealand, and the US, whose standard financing agreements do not contain such a provision.

However Mr. Dominguez said that the European bloc may direct its aid to nongovernment organizations (NGOs) if the Philippine government does not qualify under its terms.

“If the EU wishes to be relevant in development cooperation in the Philippines, it may opt to deal directly to the beneficiaries by channeling its grants through third party or NGOs such as the Red Cross, provided it does not deal with NGOs or groups linked to terrorism or those whose aim is to destabilize the state,” he said.

“Since July 2017 the government, with the DoF, has been in discussions and negotiations with the EU regarding the amendment of the financing agreement particularly the provision consistent with the policy of the President. During the negotiations, the DoF pushed for parity and respect for our sovereignty;  however the EU has stubbornly refused to see our point choosing to maintain the provision that is unacceptable to President Rodrigo R. Duterte,” he added.

Mr. Dominguez noted that the Philippine government and the Dutch government signed a memorandum of understanding covering a €1-million aid package to jointly draft a master plan for the sustainable development of Manila bay.

The EU has confirmed that the Philippines opted not to avail of a P382-million (€6.1-million) aid package under the EU-Philippine Trade Related Technical Assistance in 2017.

In the first half of 2017, Philippine goods trade  external trade with EU member countries totaled $7.78 billion, equivalent to 10.3% of total trade, Philippine Statistics Authority data show.

Exports to the EU amounted to $4.623 billion or 14.8% of total export receipts, while imports were valued at $3.157 billion, equivalent to 7.1% of the total. — Elijah Joseph C. Tubayan

Pelicans’ Cousins out for season; George named to All-Star Game

WASHINGTON — New Orleans Pelicans forward LaMarcus Cousins, set for a starting appearance in the NBA All-Star Game next month, will instead miss the remainder of the season, the club announced Saturday.

Cousins will undergo surgery to repair a ruptured left Achilles tendon suffered when he was going for a rebound late in the Pelicans’ 115-113 victory over Houston on Friday.

An MRI exam confirmed the extent of the injury and the need for surgery for the 2016 Rio Olympic gold medalist, whose spot on the LeBron James All-Star roster will be taken by Oklahoma City’s Paul George.

NBA Commissioner Adam Silver named George to the LeBron lineup to challenge Stephen Curry’s squad in next month’s All-Star contest, but it will be James who decides which player replaces Cousins as a starter.

Paired with fellow big man Anthony Davis, Cousins had helped push the Pelicans toward their first playoff appearance since 2015 and what would have been the first post-season trip of his eight-season NBA career, six of those campaigns with Sacramento.

Cousins is averaging 25.2 points and 1.6 blocked shots a game as well as career highs of 12.9 rebounds and 5.4 assists a game.

He ranked third in the league in rebounds and eighth in scoring.

Also announcing a season-ending surgery on Saturday were the Memphis Grizzlies, who declared the campaign over for guard Mike Conley.

Conley, who had been sidelined since November, will undergo surgery to smooth a small bone protrusion in his left heel that continues to cause pain. He is expected to recover in time for the 20-18-19 season.

The 30-year-old son of 1992 Olympic triple jump champion Mike Conley, Sr. has played 11 NBA seasons, all for the Grizzlies.

In 12 games this season, Conley averaged 17.1 points, 4.1 assists and 2.3 rebounds a game. — AFP

PDP-Laban builds up Mindanao support

ABOUT 8,000 new members from the provinces of Misamis Oriental, Misamis Occidental and Camiguin joined the ruling Partido Demokratiko Pilipino-Lakas ng Bayan (PDP Laban) on Saturday. The party’s new recruits took their oaths before Senate President Aquilino L. Pimentel III, PDP Laban president, at the University of Science and Technology of Southern Philippines (USTP), located in his hometown Cagayan De Oro City. The political party was founded as PDP by Mr. Pimentel’s father and namesake, former Senate President Aquilino “Nene” Pimentel, Jr. PDP-Laban has been pushing for a shift to a federal system of government, the campaign centerpiece of President Rodrigo R. Duterte. — Camille A. Aguinaldo

Stain proof and heated: luxury toilet now in PHL

LET’S TALK about your butt for a second.

It’s a body part that one uses everyday, but for all intents and purposes, it is all too frequently ignored. Hidden by underclothing and garments, its vital bodily functions are best left not even to the imagination, but to the deep recesses of the mind, and in hushed conversations with your doctor. Meanwhile, its seat of power (no pun intended), the toilet, is something we clean meticulously — not just for health reasons, but the stains we leave on it reminds us of our base animal origins.

Take pride in your toilets, ladies and gentlemen, for the fact that we do it in porcelain bowls and not on the grass actually marks the advances we have made from our ancestors. The toilet serves as a tangible mark of the development of who we are as a species. Meanwhile, the advancement of a civilization is marked by its movement from the fulfillment of animal desires and necessities to its desire for a higher purpose, marked by its devotion to art, beauty, and luxury.

It may be that sitting on a P230,000 Satis by Inax will make the user feel like a superior being. It is a toilet, but all its innovations can make the user forget for the brief few moments, that just like one’s cat or dog, a person is a mere pooping animal. Think: the Automage, the world’s first self-powered automatic faucet; the Hyperkilami antimicrobial technology which gave birth to toilets highly resistant to scratches and stains; and Proguard technology, which coats toilets with maximum protection against hard water stains and spots.

Inax again will revolutionize sanitary ware technology with upping the Hyperkilamic and Proguard to Aqua Ceramic, a key technology of the brand, which ensures that otherwise stubborn stains can easily be removed even with water alone, aiming to deliver 100 years of pristine clean and shine.

Other key technologies include a Triple Vortex Flushing System with three powerful jets of water for superior bowl cleansing, Plasmacluster ions that kill bacteria across the surface of the bowl and eliminate odors, and an Airshield Deodorizer whose air current prevents odors from escaping the bowl whilst eliminating it completely.

Not yet available in the Philippines is the brand’s toilet that can be controlled with a smartphone. For now, Filipinos will have to be content with the Inax Satis’s remote control. As a bonus, the seat heats up when one sits on it, and lifts itself up when one is done.

Inax is a brand by Japanese company Lixil, which also produces bathroom fixtures brands American Standard and Grohe. Inax is distributed in the Philippines by AllHome.

According to Lixil Country Manager Alen Alban, the presence of luxury toilets in the country also marks the advancement of the nation, thanks to a construction boom that needs more and more bathrooms. The Okada entertainment complex, for example, uses Inax toilets in all of its suites.

“The bathroom was like a basic functional room, right? But now, we’ve started to have more design in the bathroom,” he said. “The bathroom has started to evolve. It’s a place where you relax, where you contemplate.”

If toilets mark our progress as a civilization, and as a collective species, what do luxury toilets say about where we are now? “If you want to move forward as a civilization, you have to take care of these small, but really important things.” — JLG

DILG plans to deploy more SAF troops in western Mindanao area

THE DEPARTMENT of Interior and Local Government (DILG) is eyeing to increase the Philippine National Police-Special Action Force (PNP-SAF) troops in Mindanao, especially in the Zamboanga Peninsula region and its neighboring island provinces to help the military in the anti-terrorism campaign. DILG Secretary Eduardo M. Año, who was in Zamboanga City last week to visit the PNP SAF camp, told the local media that they are planning to have a “joint operation between the PNP-SAF in the areas of the island provinces of Basilan and Sulu,” which are known lairs of the Abu Sayyaf Group (ASG) and other lawless elements. Mr. Año assured that the joint operations would be well-planned and with full cooperation between police and the military to avoid a repeat of the SAF 44 incident in 2015. “This time there will be a proper coordination,” he said. Basilan and Sulu are under the Autonomous Region in Muslim Mindanao. In Basilan, Lt. Col. Achilles dela Cruz, recently appointed commander of the 4th Special Forces Battalion, said they are increasing their presence in the hinterlands of Sumisip town, where about 40 members of the ASG are still hiding. — Albert F. Arcilla

Inaul weaving festival serves as a centerpiece of ARMM tourism

DAVAO CITY — The second Inaul Festival, which highlights the traditional handwoven textile from Maguindanao, will start on Feb. 14 and this year’s celebration aims to also bring into focus other tourist attractions in Mindanao’s Muslim region.

“This (the Inaul Festival) has the largest contribution to the tourism arrivals so we want to maximize it by also introducing to our visitors not only the inaul but also the other provinces in the Autonomous Region in Muslim Mindanao (ARMM),” Secretary Ayesha Vanessa Hajar M. Dilangalen of the ARMM-Department of Tourism (DoT) said in an interview on Jan 22.

Among those other attractions that will be featured during the festival are those found at the island provinces of Basilan, Sulu, and Tawi-Tawi.

Ms. Dilangalen said that about 10,000 visitors attended the first day of the initial Inaul Festival last year, and they are hoping to increase that this year by 10-15%. Last year’s celebration generated an overall income of P20 million.

Many of the festival visitors were business travellers from China, where Maguindanaoan women mainly source their silk thread to weave the inaul.

“We have formed close linkages with the Chinese businessmen since most of the silk we use for the inaul are sourced from China,” she said.

Three types of threads are used in weaving the inaul: the cotton tanor, the silky rayon, and the shiny katiyado.

There is also an autonomous Muslim community in China and ARMM intends to link with them to compare and share cultural practices, Ms. Dilangalen added.

Last year, the inaul weavers were able to link up with buyers, among them a Maguindanaoan based in New Jersey, USA, who now buys 30 to 50 inaul malong every month.

“We sell to her the fabrics and she just customizes them,” the ARMM tourism official said.

Inaul 2
ARMM Tourism Secretary Ayesha Vanessa Hajar M. Dilangalen presents a laptop bag made from inaul cloth. — CARMENCITA A. CARILLO

Ms. Dilangalen said ARMM Gov. Mujiv S. Hataman has encouraged all regional employees to wear inaul clothing to promote the industry and keep it alive. The wives of municipal mayors in the region were also asked to lead a women’s organization for inaul weaving.

There are currently 15 organizations with about 30 members each. While there is one weaving center located in Buluan, Maguindanao, most of the women do their weaving at home.

“The use of the inaul fabric during the 2017 Ms. Universe pageant was a big opportunity for us and introduced inaul to the world,” she said.

On security concerns, Ms. Dilangalen said having martial law in place gives the region better security.

“We feel much safer now with martial law and we want to maximize that security by promoting our festivals,” she said.

Monina K. Macarongon, head of the Maguindanao provincial Human Resource Management Office, said one of the highlights of the festival is the Kapaginaul Competition, wherein the best weavers will compete by creating a four-meter inaul cloth and form it into a gown.

“They will compete both in the time it takes to create the cloth and the design,” Ms. Macarongon said.

Expert weavers can usually finish a four meter-long inaul in five days. In comparison, an inaul shawl, sold at P1,500 each, takes one day, to make while a inaul tubao (kerchief) which is worn by men can take half a day.

Ms. Dilangalen said: “The inaul is not just a fabric but a call to appreciate Mindanao fabrics. This is our edge, this is our culture.” — Carmencita A. Carillo

Solar Philippines says Meralco can save 30% with its P2.99/kWh rate offer

SOLAR PHILIPPINES Power Project Holdings, Inc. said it had offered 24/7 power at P2.99 per kilowatt-hour (kWh) to Manila Electric Co. (Meralco) after the distribution utility invited price challengers to an unsolicited proposal from another entity for the supply of 414 megawatts (MW).

“Solar Philippines will utilize solar energy and battery storage to supply consumers reliable, clean energy at a lower cost than gas,” the company said during the weekend.

It said the unsolicited proposal came from Lopez-led First NatGas Power Corp., which will be sourcing power from its San Gabriel gas power plant in Batangas.

In a statement, Solar Philippines President Leandro L. Leviste said its offer to Meralco would allow the distribution utility to “save an average of 30% thanks to advances in solar and battery storage.”

He explained prices at the wholesale electricity spot market are at all-time low, while new power plants from Aboitiz Power Corp. and San Miguel Corp. offer consumers “very low rates.”

“Re-bidding this requirement in line with [the Department of Energy’s] technology-neutral policy will encourage competition and ensure consumers can enjoy significant savings,” Mr. Leviste added.

Solar Philippines made its offer to Meralco after the latter declared a failure of bidding in a competitive selection process (CSP), in which no company qualified to challenge the proposal of First NatGas.

“Meralco may now choose whether to re-bid this under the same terms, or amend the terms to allow other technologies to compete on the basis of cost,” the company said.

Solar Philippines said compared to Meralco’s average generation rate in the past three months of P4.74 per kWh, a rate of P2.99 per kWh would allow consumers to save more than 30% or an estimated P75 billion a year.

The company noted consumers might save even more compared with gas plants, such as First NatGas’s 500 MW, which in the past three months supplied Meralco at an average rate of P5.44 per kWh, including value-added tax.

Solar Philippines said it had installed the country’s first megawatt-scale solar-battery micro-grid in Paluan, Occidental Mindoro, to provide 24/7 reliable power for an entire town at a lower cost than gas.

“The pioneering project features batteries from Tesla, the world’s leading electric vehicle manufacturer, and panels from the Solar Philippines factory,” it said. — Victor V. Saulon

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