Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 12622

Globe net profit drops in 2017

GLOBE TELECOM, Inc. reported its net profit fell 5% to P15.08 billion in 2017 despite record revenues, as “increased investments in data network pushed non-operating expenses and depreciation charges higher.”

In a statement, Globe said it recorded a 2% increase in non-operating expenses to P4.27 billion, “largely due to the increase in interest expenses and spectrum amortization related to the San Miguel Corp. (SMC) telco asset acquisition.”

“This, however, was partly offset by the recognition of a one-time gain last September, related to the increase in fair value of the retained equity interest of Globe in Globe Fintech Innovations, Inc. (Mynt),” the company said.

Core net income, which excludes the impact of non-recurring charges and foreign exchange and mark-to-market charges, dropped by an annual 15% to P13.5 billion, with the full impact of the SMC acquisition.

For the fourth quarter, net profit plunged 57% to P2.1 billion, while core profit declined 28% to P2.33 billion.

Consolidated service revenues rose 6% to P127.9 billion in 2017, which the telecommunications giant says is its highest ever for the full year. Revenues for the October to December period went up 2% year on year to P32.8 billion.

“The sustained revenue momentum was driven by the solid growth in data-related products brought about by the increasing popularity of streaming and on demand video content,” Globe said.

Mobile revenues increased 7% to P98.5 billion in 2017, fueled by robust growth in mobile data revenues. Mobile data, which accounted for 44% of the total revenues, saw a 23% rise in revenues to P43.1 billion in 2017. On the other hand, SMS revenues were flat, while mobile voice dipped by 5% year on year.

As of end-December, Globe’s mobile subscriber base stood at 60.7 million, 3% lower than the 62.8 million subscribers reported a year ago. This after the company in 2017 started excluding from its reporting prepaid subscribers who do not reload within 90 days of the second expiry period, versus the previous cut-off of 120 days.

Revenues from its home broadband business went up 7% to P15.6 billion, as its total number of subscribers grew by 15% to 1.3 million. Corporate data business revenues jumped 4% to P10.3 billion.

However, traditional fixed-line voice revenues fell 8% to P3.49 billion in 2017.

“We are confident that our continued investments in our network’s data capacity and coverage, will allow us to continue to provide superior customer experience and improve the over-all connectivity in the country, while building a solid foundation to deliver sustainable long-term growth and shareholder value,” Globe President and CEO Ernest L. Cu was quoted as saying in a statement.

SLOWER REVENUE GROWTH
The Ayala-led telecom is expecting slower revenue growth for this year, in the “low single digits.”

“In 2017, revenues grew by 6% and obviously, 2018, we’re coming off higher base from that 6% growth. While we do expect our corporate and broadband businesses to grow faster, there will be growth in mobile. Growth in 2017 was also not that large due to base. So, the guidance we have for this year is 4%. Last year, our guidance was mid-single digit, that’s 5%,” Globe Chief Financial Officer Rizza Maniego-Eala said during a briefing on Tuesday.

Mr. Cu said during the same briefing the company still sees growth, particularly in mobile data users.

“There’s still potential of growth… given 56% of customers use mobile data even if 70% have smartphones,” he said.

Meanwhile, Globe may keep its $850-million capital expenditure (capex) for the next two years.

“Historically, if you look at the spending trends, you can project. You see business and data growth. Logical for us but we don’t know the number. That is depending on what we see market needs. We do spend as necessary. If you look at the numbers, we went $750 million in ’15, $1 billion in ’16, $850 million in ’17 and projecting over $850 million to $900 million in ’18,” Mr. Cu said.

As of end-2017, Globe said it spent around P42.5 billion in capital expenditures “to support the growing subscriber base and its demand for date.”

Mr. Cu also said they are focusing on tapping the market for prepaid broadband, rather than rolling out an expansive fiber network, which is the strategy of PLDT.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — P.P.C. Marcelo

SMC sets timetable for P30-B bond offer

DIVERSIFIED conglomerate San Miguel Corp. (SMC) has set the listing of its P30-billion fixed rate bond issuance this March. 

In an investors’ briefing in Mandaluyong on Tuesday, China Bank Capital Corp. President Ryan Martin L. Tapia said the issuance will run from March 2 to 8, with listing at the Philippine Dealing and Exchange Corp. on March 15. The offer will have a base size of P20 billion and over-allotment option of up to P10 billion, 

Prior to this, the company will announce the interest rate for the bonds on March 1, with final allocation to be disclosed on the same date.

Included in the offer are five-year series E bonds due 2023, seven-year series F bonds due 2025, and 10-year series G bonds due 2028.

China Bank Capital Corp. is one of seven banks that SMC has engaged to arrange the offer. The others are BDO Capital and Investment Corp., BPI Capital Corp., First Metro Investments Corp., ING Bank, SB Capital Investment Corp., and Standard Chartered Bank.

Local debt watcher Philippine Ratings Services Corp. assigned a Prs AAA rating for the issue — the highest on its credit rating scale — which indicates the issuer has the capacity to meet its financial obligations. The company also gave the issue a stable outlook, meaning the rating is unlikely to change in the next 12 months.

The bond offer is the third tranche of SMC’s shelf registration program registered at the Securities and Exchange Commission worth P60 billion. The company raised P20 billion during the first tranche’s listing last March 1, 2017, and P10 billion from the second tranche last April 7.

The company has been conducting refinancing activities as a hedging mechanism against foreign exchange losses, given expectations on the Philippine peso’s continued depreciation. On Tuesday, the peso was valued at P51.46 against the dollar.

SMC’s attributable profit stood at P20.9 billion in the first nine months of 2017, 19% lower year on year. Revenues, meanwhile, stood at P596.9 billion for the period.

Shares in SMC lost 2.71% or P4 to finish at P143.50 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

PDIC repeals rule excluding outstanding dues from closed banks’ insured deposits

THE Philippine Deposit Insurance Corp. (PDIC) has repealed a rule requiring closed banks to deduct outstanding dues of an account holder before computing insured deposits.

In a regulatory bulletin, the state-run firm said they have revoked a seven-year-old rule that requires banks under liquidation to deduct outstanding obligations of a depositor before identifying the amount covered by deposit insurance.

This follows changes introduced in the PDIC Charter which was signed into law as Republic Act 10846 signed on June 11, 2016.

“[T]he obligations of a depositor are no longer netted out from his/her total deposits in the closed bank for purposes of computing insured deposit,” PDIC Bulletin 2018-01 reads, as signed by President Roberto B. Tan on Feb. 2.

Under the PDIC charter, the state insurer steps in as receiver of problem banks and acquires the lender’s assets in order to pay outstanding liabilities to depositors.

The new rule invalidates Regulatory Issuance No. 2011-04, which sets the rules to net out outstanding loans, penalties and charges due from an account holder before finalizing the amount which they will receive as insured deposits.

Bank deposits are insured up to P500,000 per account, according to the law.

The BSP has shut down six rural banks and one thrift bank in 2017, after they were found to be incapable of remaining in business. In 2016, the regulator closed 22 lenders.

Also yesterday, the PDIC said it will auction off at least P157 million worth of properties this February in three separate auctions in Metro Manila and Davao. Among the assets to be sold are residential, commercial and agricultural lots.

Last year, the deposit insurer said it generated a total of P259.16 million from the sale of assets incurred from closed banks as well as corporate properties. Properties worth P201.08 million raised premiums worth P58.08 million.

“The disposal of these assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds. Meanwhile, gains from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s main fund source for payment of valid deposit insurance claims.” — Melissa Luz T. Lopez

8990 Holdings posts P10B revenues in 2017

REVENUES of mass housing developer 8990 Holdings, Inc. slipped 7% in 2017, amid delays in securing permits for its projects.

In a statement issued Tuesday, 8990 Holdings said its unaudited revenues reached P10.09 billion in 2017, lower than the P10.87 billion it generated in the same period a year ago. The company, however, said it reached its full-year revenue target of P10 billion.

“2017 unaudited revenue of the company was reported at P10.09 billion as the strong fourth quarter performance was able to reverse the negative growth trajectory seen during the first nine months of the year,” the company said.

8990 Holdings has yet to submit its full-year financial report to regulators.

Delays in securing project permits weighed down the company’s financials last year. In the first three quarters alone, 8990’s net income dropped by 22% to P2.47 billion. Company officials, however, noted that it would be able to recover once construction picks up and buyers see projects being completed.

Contributing to 8990 Holdings’ revenues for the year was the sale of a total of 7,348 homes. Units in Luzon accounted for 54% of this number, while Visayas and Mindanao booked 34% and 12%, respectively.

In terms of sales value, Luzon cornered the largest chunk at 58%, followed by Visayas at 33% and Mindanao at 9%.

The company further noted that medium-rise and high-rise buildings are now contributing more to housing revenues, up 47% from 26%.

This year, the listed property developer has committed to launch five more developments worth P60 billion, as it aims to expand its footprint across the country.

“2018 will be even more exciting for us as we will launch more large-scale projects that will make 8990 poised to capture the Metro Manila affordable housing market,” 8990 Holdings President and Chief Executive Officer Willibaldo J. Uy was quoted as saying in the statement.

With this, the company targets to book at least P12 billion in revenues for 2018.

Shares in 8990 gained six centavos or 0.96% to close at P6.33 each at the stock exchange on Tuesday. — Arra B. Francia

TNT KaTropa forward Williams: being ready

By Michael Angelo S. Murillo
Senior Reporter

VETERAN TNT KATROPA forward Kelly Williams turns 36 years old today. But while he is no longer a spring chicken and has already logged so many minutes in 12 years in playing in the Philippine Basketball Association (PBA), he has shown no signs of slowing down, even saying that he is a “better” player now than ever before.

Key to what has been a productive tenure for him even late in his career, the former PBA most valuable player said is “being ready,” giving his best each time he steps on the floor regardless if he is a starter or not.

“I think that is every player’s mind-set going into a game. You want to do the best you can and give your all. Just take advantage of the time given you because you’ll never know when you will get another opportunity,” Mr. Williams shared to a group of sportswriters following their 90-85 win over the Kia Picanto last week.

“I consider myself a better player now than before. I was an MVP with Sta. Lucia and I have moved here at TNT and adjusted and evolved over the years. I have matured in how approach the game and I’m just grateful,” said Mr. Williams, who spent his early years in the PBA with the now-defunct Sta. Lucia Realtors, which he helped win a title in 2007.

In their game against Kia, Mr. Williams further underscored his “being ready” mantra, stepping up in lieu of the unavailable Mo Tautuaa (bum stomach) to help his team notch the hard-earned win.

Mr. Williams top-scored with 23 points, on 61% shooting (11-of-18), to go along with eight rebounds while providing stability and leadership amid a tough and spirited challenge from the unpredictable Picanto.

“It certainly felt good tonight. Mo was out and we just picked it up,” Mr. Williams said.

He went on to say that the mind-set to step up for him and his team would continue, more so with the possibility of TNT losing some players briefly to Gilas Pilipinas which will see action for the second window of competition for the FIBA World Cup Qualifiers this month.

“It’s like anything else. When one is out you have to fill up those shoes. So it won’t be different,” said Mr. Williams, who expressed hope to stay healthy moving forward so as to continue playing at a high level for TNT.

TNT VS PHOENIX
Meanwhile, Mr. Williams and TNT (4-3) trek back to the court today against the Phoenix Fuel Masters in the curtain-raiser at 4:30 p.m. at the Mall of Asia Arena.

The KaTropa try to build on their win over Kia last time around and win back-to-back to solidify their push for a spot in the top four in the standings.

Apart from Mr. Williams, TNT is also banking on their other players, including All-Star guard Jayson Castro, who had 22 points and nine rebounds in their last game as well as RR Garcia who provided the finishing touches in their last game and finished with 13.

Phoenix (3-4), for its part, is coming off a loss in the hands of the streaking Alaska Aces, 93-75, last week.

Matthew Wright and Jeff Chan led the Fuel Masters with 16 and 14 points, respectively, but they could tow the team to victory against a thorough Alaska attack.

Playing in the main game today at 7 p.m. are the Barangay Ginebra San Miguel Kings (3-4) against Kia (1-6).

On another note, Alaska’s Vic Manuel was named PBA player of the week after averaging steady numbers of 15.5 points, four rebounds, two assists and 1.5 steals and helping his team notch wins over Phoenix and GlobalPort Batang Pier.

In winning the weekly citation, “Muscleman” Manuel beat out teammate Chris Banchero, TNT’s Williams and Castro, Rain or Shine’s Beau Belga, Chris Tiu and Ed Daquioag, San Miguel’s Chris Ross, Chico Lanete and June Mar Fajardo, NLEX’s Cyrus Baguio and Larry Fonacier and Magnolia’s Mark Barroca.

Wizards in peak form vs Pacers

LOS ANGELES — The Washington Wizards are playing like contenders again as they took advantage of an out-of-sync Indiana Pacers team to pull off a 111-102 win as eight players scored in double figures Monday.

All-star guard Bradley Beal scored 21 points and Kelly Oubre had 15 for the Wizards, who earned their season-best fifth consecutive victory.

“I thought everybody chipped in and played well,” Washington coach Scott Brooks said.

The Wizards are on a roll and they are winning big time without all-star guard John Wall.

Since Wall went down with an injured left knee, Washington has won all their games. The latest victory also gave the Wizards their fourth in a row over the Pacers.

“John is such a key and valuable piece to our team,” Beal said. “He draws so much attention at what he brings to both ends of the floor, that’s kind of irreplaceable.

“It’s definitely a huge hit to us having him out, but we’ve been having some success. We’ve figured it out a little bit.”

Besides having eight players in double figures, three Wizards grabbed at least seven rebounds.

Tomas Satoransky and Tim Frazier each finished with six assists for Washington, who outscored Indiana, 30-11, in transition and had a 43-35 rebounding edge.

While the Wizards were flying high, the Pacers weren’t themselves as they had their six-game home winning streak halted.

With all-star guard Victor Oladipo out with an illness and point guard Darren Collison out with a bad left knee, the Pacers never mustered a serious challenge.

Bojan Bogdanovic scored a season-high 29 points for the Pacers as he tried to spur a fourth-quarter rally. Joe Young added 17.

“Vic is our go-to-guy,” said Bogdanovic. “We knew it was going to be tough without both.

“They play heavy minutes. We got two less players in the rotation. I think they didn’t win this game. We lost this game with too many turnovers and too many easy points.”

Elsewhere, Andre Drummond had 17 points and 17 rebounds, and the Detroit Pistons earned their fourth straight win with a 111-91 victory over the Portland Trail Blazers.

Detroit has won three in a row since trading for Blake Griffin last week. Griffin led Detroit in scoring Monday, but he had ample help on offense.

The victory moved the Pistons back to .500 and even with Philadelphia for the final playoff spot in the Eastern Conference.

FOURTH STRAIGHT WIN
Griffin finished with 21 points and nine rebounds. He shot well from beyond the arc too, making a trio of three-pointers. Anthony Tolliver added 15 points for Detroit and Reggie Bullock and Langston Galloway added 13 points each.

“I didn’t really think we moved the ball that much at the start of the game, but then we really got it going,” said coach Stan Van Gundy. “The best part is that you look at how many guys got involved. Once you start moving the ball, it gets contagious.”

Damian Lillard scored 20 points and C.J. McCollum added 14 for the Blazers, who lost again after losing a heartbreaker at the buzzer to the Boston Celtics on Sunday.

“They had one action — dribble handoff out of the corner — and they kept getting down to the centre of our defence,” Portland’s Lillard said. “Once guys get confident and get to making shots, it’s hard to stop.” — AFP

RoS coach Caloy Garcia: ‘The only way we can be happy is by winning’

STRAIGHT to the point, Rain or Shine coach Caloy Garcia answered all questions surrounding trade rumors involving some of his key players and addressed queries on why James Yap is being benched during crucial stretches in some of the games of the Elasto Painters.

“We want to keep everybody happy, but the only way we can be happy is by winning, not because players are not seeing more minutes,” Mr. Garcia told BusinessWorld in an interview.

Fans questioned the rationale behind Mr. Yap not being utilized fully in some of the games of the Elasto Painters. A video was even shown to Garcia during one of the huddles where the soft-spoken mentor telling the two-time Most Valuable Player that he’s going to be replaced by Beau Belga.

“What people don’t know is that James is coming off an injury and I even told him that he still doesn’t have the lift each time he goes to the basket. He admitted that to me,” added Mr. Garcia. “But me and James are in good terms and I have no plans of trading him and he’s not requesting to be traded, either.”

Mr. Garcia, however, didn’t deny the fact that guard Jericho Cruz has been put on the trading block, but as long as negotiations aren’t finalized yet, he should remain committed to play for the Elasto Painters.

“I told the players that we just have to be professional about it,” added Mr. Garcia. “Every time we play, we have to put the effort because the team owners pay their salaries and that’s the only way we can repay them.”

“Jericho really wants to go back to Coach Yeng (Guiao), but I told him we have a job. There’s no security that you can be traded. It’s hard to trade a player without getting the player you wanted in return, so I just told him that the only way you can be traded is if you play good. If you play good, you can get something good in return.”

For Mr. Garcia, the issues are more like a challenge for him as a coach and as a result, the Elasto Painters have won back-to-back games to bolster their chances of moving to the playoffs.

“It’s more of a challenge on my side, to try to get these players motivated. I made a mistake when we played Kia because they were not motivated at that time,” he added. “I hope our consistency would continue.” — Rey Joble

Super Bowl 52 viewership down

LOS ANGELES — Super Bowl 52 may have delivered one of the most thrilling finishes in recent years, but many Americans missed out, as it was the least watched NFL championship game since 2009.

The Philadelphia Eagles’ 41-33 win over the New England Patriots was watched by an average of 103.4 million people on NBC television, according to Nielsen ratings.

It was the lowest viewership of a Super Bowl since an average of 98.7 million people watched the Pittsburgh Steelers beat the Arizona Cardinals in Super Bowl 43. — AFP

Gloriously dirty

Text and photos by Aries B. Espinosa

AFTER over two decades — and four generations — of this pioneering compact crossover SUV from Honda, the CR-V finally has gotten some dirt on it. Not because it’s now powered with what our old-timer, sun-baked jeepney drivers once called krudo, the diesel fuel that not so long ago failed miserably in every smoke emission test sprung up by ambush smoke-belching patrols in the Metro, but because this iconic vehicle that has long been a fixture of well-paved city and country roads has finally demonstrated real grit, an admirable measure of toughness, and that willingness and capability to hold its own off the beaten path.

It was this rugged nature of the vehicle that Honda Cars Philippines, Inc. (HCPI) showcased on a ride-and-drive activity held on Jan. 29-30, which used six units of the all-new, fifth-generation, diesel-powered, seven-seat CR-V.

The event’s route, which started from Bonifacio Global City in Taguig, through the North Luzon and the Subic-Clark-Tarlac Expressways, and onto the twisty, narrow roads of Bataan and Subic Bay, was meticulously planned by the joint team of HCPI and the motoring tour crew of George Ramirez. The highlight of the drive was an off-road course along a stretch of beach in a themed resort in Bagac, Bataan, where the top-of-the-line diesel CR-V, the SX Diesel 9A/T AWD powered by a 1.6-liter i-DTEC turbo engine, demonstrated its power, stability, and drive technologies on abruptly changing surfaces and elevations — mud, compact dirt, loose sand and concrete.

At the off-road course, the SX Diesel 9A/T AWD provided a glimpse of its arsenal: The oomph of its 300Nm of torque; the stability of the MacPherson Strut front suspension and the new E-type multi-link setup at the rear; the larger tire size for better grip on all surfaces; the 208 millimeters of ground clearance; the enhanced real-time all-wheel drive system to better manage all surfaces (the system can now transfer 10% more torque to the rear wheels when needed); the safety and driver-assistive feature Honda Sensing with adaptive cruise control and Low Speed Follow, and; the standard safety features such as the vehicle stability assist, hill-start assist, Agile Handling Assist and ABS with EBD to help prevent over- and under-steering on high-speed corners.

mud track

HCPI President and GM Noriyuki Takakura, who was on hand to witness the driving exercises, said: “Today’s test-drive event has allowed us to demonstrate the power, capability and fuel efficiency of the all-new CR-V’s highly anticipated diesel variants, advanced features, and ride comfort along the drive through the different highways and off-road course. This showcases how the all-new CR-V is a strong contender in the growing seven-seat diesel SUV market here in the Philippines.”

Mr. Takakura also revealed sales figures provided by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) that showed HCPI’s remarkable growth in 2017 compared to 2016.

”The introduction of the all-new CR-V [diesel and gasoline variants] greatly contributed to HCPI’s success in 2017. In only five months in the market, the CR-V was able to garner 2,799 vehicle sales since customer deliveries started last September. With this, HCPI set a record-breaking sales performance with a total of 31,758 vehicles sold compared to 23,199 in 2016, a 37% increase, surpassing the 18% industry growth by CAMPI,” Mr. Takakura remarked.

The two-day ride-and-drive event also saw the other diesel variant, the S Diesel 9A/T, showing off its premium and refined interior, flexible legroom and ample headroom, reduced noise, vibration and harshness levels, and flexible cargo area that can accommodate 472 liters of cargo with the third-row seats folded down (expandable to 972 liters with the second and third rows folded flat).

HCPI also released the retail prices of all the variants of the new CR-V under the country’s new taxation scheme. These are: P2.086 million for the SX Diesel 9A/T AWD; P1.835 million for the S Diesel 9A/T; P1.671 million for V Diesel 9A/T; and P1.648 million for the five-seat 2.0 S CVT.

Ateneo Lady Eagles look to bounce back after debut loss

FOLLOWING their tough five-set loss in their University Athletic Association of the Philippines (UAAP) Season 80 debut over the weekend, the Ateneo Lady Eagles look to regroup and bounce back when they return today and take on the National University (NU) Lady Bulldogs in women’s volleyball action at the FilOil Flying V Centre in San Juan City.

Set for 4 p.m., Ateneo tries to pick up the pieces after bowing to the Far Eastern University (FEU) Lady Tamaraws, 19-25, 25-21, 18-25, 25-20 and 15-9 last Sunday, against an NU crew that had it auspicious in its own season debut.

Playing in the opener of women’s play at 2 p.m. are the University of the East Lady Warriors and University of Santo Tomas Glowing Tigresses, who are both sporting 0-1 records.

While they got off to a strong start in their tournament opener, the Lady Eagles just could not go on and complete the win as the Lady Tamaraws grew confident and were not to be denied.

Ateneo unravelled in the deciding fifth set as it committed eight unforced errors which greatly took a toll on their thrust en route to the loss.

Jhoanna Maraguinot led the way for the Lady Eagles with 21 points, 19 off spikes, while Kat Tolentino added 14 and Jules Samonte nine.

These, however, proved to be not enough to guide their team to the victory amid the stiff challenge presented by FEU.

In trying to explain what happened to them, the Lady Eagles said that they are still finding their collective groove and making the needed adjustments.

“We are still making adjustments. The players played well but obviously we still need to improve on some aspects which we hope to accomplish as the season progresses,” said Ateneo deputy coach Sherwin Meneses, whose team is now playing without longtime stalwarts Jia Morado and Michelle Morente.

PAD ITS OWN CAMPAIGN
Out to pin down Ateneo some more while padding its own campaign early in the season is NU (1-0), winner in its debut over the Adamson Lady Falcons.

Playing under new coach Babes Castillo, the Lady Bulldogs held sway despite a gallant stand from the Lady Falcons, winning in four sets, 25-15, 25-23, 16-25 and 25-13, on opening day last Saturday.

Jaja Santiago showed the way for NU in the win, top-scoring with 16 points with Aiko Urdas and Audrey Paran adding nine points each, and Risa Sato and Roselyn Doria eight points apiece.

“We’re happy with the win but consistency is still an issue for us,” said Mr. Castillo, who took over from Roger Gorayeb as NU coach in the offseason. — Michael Angelo S. Murillo

A Federal Philippines: Does it make sense?

One of the greatest contributions of the Greek Philosopher Aristotle was his distinction between form and substance. According to him, the two are separate dimensions of our reality, yet are also fundamentally distinct in their existential character.

So far, this seems pretty common sense to us in the modern age, but the great philosopher also made a far more important argument: Namely, that form can shape the expression of substance. In short, the two are mutually constitutive, meaning they dialectically shape one another.

So what is the relevance of this profound philosophical contribution to our current debate on federalism? What does a man from the ancient Mediterranean city-state of Athens have to say about 21st century Philippines? Actually, a lot, and these questions bring me to another important distinction that has been woefully missing in our public and policy discourse over federalism.

I vividly recall my freshman and senior years in the university, particularly two courses (introduction to political science, and ancient political theory) I took under my mentor Professor Felipe Miranda, who, for those who are not familiar with him, cofounded both Pulse Asia and Social Weather Stations (SWS).

I learned two crucial things in his classes. On one hand, political systems — namely, the feedback loop between the rulers and ruled — are distinct from forms of government. The two are interrelated but distinct.

Specifically, system pertains to whether a polity is democratic, meaning ordinary citizens have a say in public affairs and rulers are accountable to the citizens — and to what degree. In contrast, form pertains to whether one is speaking of a federal/unitary or presidential/parliamentary (and their many permutations) arrangement of state institutions.

The other important realization (during a recitation) from his class was that the Philippines’ political system is, to put it bluntly, an oligarchy — the feckless and extractive rule of the few, as Aristotle defined it more than two thousand years ago.

The implication for our federalism debate is two-fold: First, that we never truly had a democracy, since majority of Filipinos have almost zero say in every-day governance; arguably, the only exception is the election period, where the poorest of poor Filipinos can compel the most powerful to beg for their votes through dancing, singing, and other acts of self-mockery and, of course, vote buying.

Thus, our true national tragedy is the oligarchic nature of our political system, not necessarily how our government institutions are structured. Oligarchies can come in all different forms.

Second, and this is where I am truly frustrated, when we discuss a shift to a supposed “federal-parliamentary system,” we are actually speaking of a change in the form of government, not necessarily the entire political system.

This is why it’s extremely misleading when some claim that what is at stake is a shift in our political system. What is on the table is a far more limited type of change, which could end up as either politically transformational, destructive or irrelevant in the end.

Yet, lest I am misunderstood as directly questioning the wisdom of a shift in our form of government, let me bring back Aristotle into the discussion. Aristotle also explained that form could shape the expression of substance. So what’s the relevance to our discussion?

Well, to put it in simple terms: a change in our form of government (i.e., from unitary to federal) can, logically speaking, have some impact on the substance of our political system (i.e., from oligarchy to democracy).

Thus, what the ongoing debate on constitutional change should focus on is whether dispensing with our unitary-presidential form of government will usher in a more democratic system, where ordinary Filipinos have a say in every-day governance.

Will a shift to federal-parliamentary system end the vicious rule of political dynasties? Will it make our economy more dynamic and competitive? Will it create a more enabling environment for the realization of the best potentials of Filipino citizens?

To claim that federalism is a panacea, a supposed solution to all our collective problems, is, at best, intellectually deficient, and, at worse, outright misleading. The devil lies in the details, and this is where I tend to get worried when some folks reduce the whole issue to a matter of semantics and empty rhetoric.

We — I mean the conscientious Filipino citizens — are all for more autonomy and power to peripheral regions. We are all for greater prosperity and egalitarianism in the country. We are all, including in “imperial Manila,” for making sure the country grows as a whole, where the great people of Mindanao and Visayas can also enjoy the fruits of globalization, industrialization and rapid economic growth.

So the debate on charter change isn’t between the Manila-centric elitists, on one hand, and provincial parvenus, on the other. (As a probinsyano, who comes from the Cordillera mountains, I am inherently partial to upward mobility for those outside Metro Manila.)

The debate is between those, who believe in perfecting a painfully imperfect status quo as opposed to those who see no hope in sticking to the existing constitutional order. It’s between those who want to work with what we have, believing we need to look at gradual reforms and have more patience, and those who impatiently believe in taking a leap of faith towards a whole new constitutional order.

In succeeding columns, I shall explain the pros and cons of federalism, discussing both the opportunities and perils of charter change. It’s high time for us to have an educated, deliberate, honest, and intellectually engaging debate on arguably the biggest political question facing the country today: How to get from an oligarchy-disguised-as-democracy to a genuine democracy, which will fulfill and operationalize the fundamental political and socioeconomic freedoms of ordinary Filipinos.

 

Richard Heydarian has taught political science at Ateneo de Manila University and De La Salle University, and is a non-resident fellow at Stratbase-ADR Institute.

Volvo to woo brand enthusiasts with new diesel-fed XC90 D4

VOLVO’S XC90 lineup in the Philippines has expanded by way of a freshly released diesel-powered variant.

The new XC90 D4, according to Volvo Philippines, gives the country’s Volvo enthusiasts the “option if they prefer a diesel-powered SUV.” The company noted the car has been “designed for a demanding audience” as it mixes in a luxurious package “ingenious design and intelligent technology.”

Propelling the XC90 is Volvo’s Drive-E power train. This system, applied to a diesel mill in the XC90 D4, uses a pair of turbochargers and direct fuel injection to allow a lightweight, low-friction, four-cylinder, 2.0-liter engine develop power ratings equivalent to those made by six- or eight-cylinder engines — 190 hp and 400 Nm in this case. Helping out in this regard is an eight-speed automatic transmission.

Besides power, Drive-E guarantees fuel efficiency and clean emissions, too, according to Volvo. Citing one technology that forms Drive-E, Volvo said the XC90 D4’s engine has a microchip and a pressure sensor in each cylinder, which “perfectly meters” fuel use. Another benefit of this is that the engine remains in tune even after years of use, the car maker said.

Billed as a premium seven-seat SUV, the XC90 is the first Volvo to have been built atop the brand’s new Scalable Product Architecture, a modular platform that will underpin all new Volvos in the company’s 90 and 60 Series range.

Like the S90 and V90 too, the XC90 is marked by Volvo’s latest design language, along with the classic styling cues of the brand. Key features include what Volvo calls “Thor’s Hammer” LED headlights, grille and “Iron Mark” in front, and the spread-out Volvo logo in the rear that’s framed by signature sweeping tail lights.

In the cabin, the XC90 D4 blends wood, crystal and metal to create a sophisticated look, Volvo said. A new seat design boosts the brand’s reputation for making one of the most comfortable and the safest seats in the car industry.

As a new Volvo, the XC90 D4 is equipped with the brand’s Sensus connectivity system that uses a touch screen interface to control car functions, navigation, connected services, and in-car entertainment applications such as Spotify, Pandora, Baidu or TuneIn. Volvo noted this vertical touch screen panel allows for easy and fast access to a host of functions and features.

In terms of safety systems — a Volvo expertise — the XC90 D4 is fitted with City Safety Technology, which combines automatic braking with collision avoidance systems, and is enhanced by Large Animal Detection. An auto-steer function that helps to keep the car on the road, called Run Off Road Mitigation, has also been installed on the XC90.

These systems form part of Volvo’s IntelliSafe, a suite of active and passive safety systems, including those related to autonomous driving. The XC90 already has a semi-autonomous function called Pilot Assist, which works up to 130 kph on clearly marked roads. Volvo said Pilot Assist is another step towards its Vision 2020, in which the car maker aims to have no person killed or seriously injured in a new Volvo by the time 2020 rolls by.

1...12,62112,62212,623...13,786Page 12,622 of 13,786
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube