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SMC gets top credit rating for P30-B fixed-rate bonds

DIVERSIFIED conglomerate San Miguel Corp. (SMC) secured the highest credit rating for its planned P30-billion fixed-rate bond issuance, a local debt watcher said. 

In a statement released Tuesday, the Philippine Rating Services Corp. (PhilRatings) said it has assigned a PRS Aaa issue rating for SMC’s proposed bond offering. This represents the highest rating in the debt watcher’s credit rating scale, indicating the company’s ability to meet its financial obligations.

PhilRatings also gave the bond issuance a stable outlook, which means that the credit rating is unlikely to change in the next 12 months.

The P30-billion fixed-rate bonds is the third tranche of SMC’s three-year debt securities program of up to P60 billion. The first tranche worth P20 billion was listed at the Philippine Dealing and Exchange Corp. on March 1, 2017, which consisted of P6.68-billion bonds due 2022 at 4.8243% per annum, P7.29 billion due 2024 at 5.2840%, and P6.022 billion due 2027 at 5.613%.

The second tranche of the debt securities program, meanwhile, was launched on April 7, 2017, where SMC raised P10 billion from the sale of five-year bonds at 5.1923% per annum.

The bond issuances are among SMC’s refinancing activities in an effort to temper the company’s foreign exchange losses, as the Philippine peso is expected to continue its depreciation. On Tuesday, the local currency depreciated by 23.5 centavos to close at P51.420 against the dollar.

PhilRatings considered SMC’s operating businesses, income streams, and cash flows in coming up with the credit rating. The company booked a net income of P20.9 billion in the first nine months of 2017, following a 20% increase in revenues to P597 billion during the period. 

The debt watcher said SMC’s financials are expected to further improve with the completion of projects in the energy and infrastructure sector.

PhilRatings also noted the strength of SMC’s core businesses in food and beverage, fuel and oil, and infrastructure. The company’s subsidiaries also include investments in energy and packaging. 

“SMC and its subsidiaries’ strong market position, its solid track record and continuous efforts to manage its debt position, backed by growing market demand and supported by a robust domestic economy, makes SMC well prepared for significant future growth,” according to PhilRatings.

Established originally as a single brewery in the Philippines in 1890, SMC now has over 100 production facilities in the Asia-Pacific region, employing more than 23,000 employees. Amid its diversified product offerings, SMC President and Chief Operating Officer Ramon S. Ang last year announced his intention to enter the electronics business in the future.

Shares in SMC rose 90 centavos or 0.63% to close at P144.90 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

Warning level raised on another Japanese volcano

TOKYO — Japan raised the warning level on another volcano on Tuesday, exactly a week after a dramatic eruption at another peak killed one man, injured nearly a dozen others and stranded scores of skiers — including foreign tourists — for several hours.

Japan’s Meteorological Agency lifted the warning on Zao, a cluster of volcanoes in northern Japan whose highest point is 1,841 meters (6,040 feet), to 2 from 1, meaning that people should avoid going near the crater.

“There is a possibility of a small-scale eruption,” the agency said in a statement, noting that a number of small earth movements were detected on Tuesday, along with a slight bulging of the ground in one area.

It also warned of the possibility that volcanic rocks could be thrown as far as 1.2 kilometer in any eruption.

The announcement came a week after a member of Japan’s military was struck and killed when rocks from the sudden eruption of the Kusatsu-Shirane volcano rained down on skiers at a mountain resort in central Japan.

Video footage taken by skiers on the mountain, including some from Taiwan, showed black ash boiling up into the sky as stones plummeted down, some punching holes in the metal roof of a ski gondola. Eleven people were injured and around 100 skiers took refuge in a mountain hut for several hours until rescued.

Zao, like Kusatsu-Shirane, is a popular resort area famed for its “snow monsters,” created by water vapor freezing on trees in winter. Its slopes are packed with skiers in winter and hikers in other seasons.

Japan has 110 active volcanoes and monitors 47 of them around the clock. In September 2014, 63 people were killed on Mount Ontake, the worst volcanic disaster in Japan for nearly 90 years. — Reuters

Colossus of Egyptian King Ramses moved to new home, carefully

CAIRO — Egypt moved an 83-ton, 3,200-year-old statue of King Ramses II to the atrium of Cairo’s new Grand Egyptian Museum last Thursday in a complex operation undertaken by army engineers and specialist contractors.

The ancient colossus was taken on its 400-meter journey inside a cage mounted on a truck and suspended like a pendulum from a steel beam to help offset any jolts from the ground during transport.

The road surfaces were treated with special materials to ensure they could adequately bear Ramses’s huge weight. The transfer operation cost 13.6 million Egyptian pounds ($770,000).

Speaking at a ceremony to mark the move, former antiquities minister Zahi Hawass underlined the importance of the museum project to Egypt’s tourism sector, which has been damaged in recent years by political violence.

“It will tell people that Egypt is safe and you can come and visit us because we need the tourism for the preservation of the Egyptian antiquities.”

At its new location the statue will be the first thing visitors see as they enter the museum, part of which will open later this year ahead of its expected official launch in 2022.

The colossus was unearthed at the Mit Rahina archaeological site in 1820 by the Italian adventurer Giovanni Caviglia. Thursday’s move was the fourth it has seen over its several millennia of existence.

It was first moved from the quarry where it was made to Mit Rahina before being shifted in 1955 to Ramses Square in Cairo. Increasing pollution and congestion at the square prompted its next move in 2006 to safekeeping in a storage area where it was kept of public view until now.

Egypt’s tourism sector is one of the country’s main sources of foreign currency but it has struggled since a 2011 uprising that led to years of violent instability including a spate of Islamist militant attacks.

The sector saw an improvement in 2017, with revenues jumping 123.5% year on year to $7.6 billion and the number of tourists visiting rising 54% to 8.3 million.

The number of visitors in 2017, however, was still well below the 14.7 million who came in 2010 before the uprising. — Reuters

Chamber cites DTI restrictions on gov’t projects

THE European Chamber of Commerce of the Philippines (ECCP) said foreign contractors remain barred from government projects by guidelines set by the Department of Trade and Industry (DTI).

The chamber said the Philippine Construction Accreditation Board (PCAB) on the other hand licenses foreign contractors to participate in privately funded projects.

The issue was raised before the House committee on economic affairs, which tackled foreign participation in the construction industry.

PCAB Executive Director Herbert D.G. Matienzo said foreign companies that hold a Quadruple A license are allowed to bid in public-private partnerships (PPPs), build-operate-transfer (BOT) projects, and international competitive bidding (ICB) projects provided that they have P1 billion in equity and invest P3 billion for vertical projects and P5 billion for horizontal projects.

However, ECCP’s advocacy manager Kareen Enriquez said: “A reading of DTI guidelines would reveal that foreign entities with a Quadruple A license are only allowed to undertake private and not government-funded projects. So even with P1 billion capital equity, we are still not allowed under DTI guidelines.”

Guenter Taus, president of the ECCP, added that the case is not that “simple.”

“If you look at the markets, and you say it yourself, there’s no restriction — again, there are restrictions because (licensing) is just for one project. So you would have for each contract to apply for (a new license). Some companies have been doing that for years and again, it does not mean that you open up the industry to foreign players with certain restrictions,” Mr. Taus said. — Minde Nyl R. dela Cruz

All-Star Game tweak

As a long-time fan of the National Basketball Association (NBA), the mid-season classic All-Star Game has always been a highlight of every NBA year for me.

While admittedly there were editions that rendered themselves as lopsided, still the thrill of seeing 24 of the best players in the world on the same court was not lost on me and took delight from them nonetheless.

This year, the Association had decided to make a tweak on how the All-Star Game (ASG) will be presented.

It had done away with the traditional East versus West format and instead will have two teams composed of players regardless of the conference they play in and selected, playground-style, by the top two vote-getters from the NBA’s two conferences.

The reason primarily for the change in format, league officials said, is to make the game more exciting and competitive.

To be honest, initially I did not really see the need for the tweak, because, as I said at the top, I am into the ASG regardless. It is the best from the East against those from the West, and I am fine with it.

But having the chance to follow how the NBA came up with the roster for the All-Star Game and how the selection panned out, I am going to say it made me excited more than I expected and actually is looking forward to it all the more.

As things stand, the teams have been divided between Team LeBron James and Team Stephen Curry, the players who got the most votes from both conferences.

The two captains selected their players last Friday with very interesting mixes. It is just unfortunate that the process was not televised for one could only imagine the dynamics and “drama” that went in the selection — something we fans could have gotten a kick from.

When the selection smoke cleared, Team LeBron wound up with Kevin Durant (Golden State), Anthony Davis and DeMarcus Cousins (New Orleans) and Kyrie Irving (Boston) as the starters with Russell Westbrook (Oklahoma City), John Wall and Bradley Beal (Washington), Kristaps Porzingis (New York), Victor Oladipo (Indiana), LaMarcus Aldridge (San Antonio) and Kevin Love (Cleveland) coming off the bench.

The team will be coached by Toronto’s Dwane Casey. Because of the season-ending Achilles injury he suffered recently, Cousins will miss the All-Star Game and has since been replaced by Paul George of the Oklahoma City Thunder.

Team Stephen, meanwhile, has as part of the starters James Harden (Houston), DeMar DeRozan (Toronto), Giannis Antetokounmpo (Milwaukee) and Joel Embiid (Philadelphia). Reserves are Klay Thompson and Draymond Green (Golden State), Kyle Lowry (Toronto), Al Horford (Boston), Damian Lillard (Portland) and Jimmy Butler and Karl-Anthony Towns (Minnesota).

Its coach is Mike D’Antoni of the Houston Rockets.

On paper, it is easy to side with Team LeBron for it is loaded as loaded can get. James said he wanted a team that is competitive and I think he got it and more.

At every position it has it covered and can be a handful.

On the other end, Team Stephen maybe surrendering some talent here and there but mind you in a team setting and play it could have the advantage.

Made up mostly of teammates in their mother teams and players who have no trouble “complementing,” the team may render itself more fluid come game time.

With what is at hand in the All-Star Game on Feb. 19 (Manila time), an exciting and competitive match between the protagonists should be expected.

Aimed at attracting fans and stoking their interest, the latest NBA All-Star Game tweak does give a fresh dimension to it all, and count me in as among those watching it.

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@www.bworldonline.com

Mitsubishi starts accepting orders for new Xpander MPV

MITSUBISHI Motors Philippines Corp. (MMPC) announced it has started accepting reservations for the new Mitsubishi Xpander MPV, a model that made its global debut in Jakarta, Indonesia, in August 2017. The Xpander, built at a new Mitsubishi factory in West Java, Indonesia, has since turned into a “game-changer” in that country, according to MMPC.

The company said it would be taking reservations until the end of April this year, indicating the new model will arrive in showrooms starting in May.

Four variants of the Xpander will be introduced: GLX M/T, GLX Plus A/T, GLS A/T and GLS Sport A/T. Prices are set — MMPC referred to these as “indicative” — at P900,000 for GLX M/T; P990,000 GLX Plus A/T; P1.050 million for the GLS A/T; and P1.1 million for GLS Sport A/T. Colors available are Red Metallic, Titanium Gray Metallic, Sterling Silver Metallic, Quartz White Pearl and Diamond Black Mica, depending on which variant is chosen.

MMPC said the Philippines is the second country to get the Xpander, which is also expected to land in Thailand, Vietnam, Sri Lanka, Bolivia and Egypt. In a presentation held on the sidelines of the Tokyo Motor Show in October 2017, Mitsubishi Motors Corp. officials said total annual production of the Xpander for 2018 is pegged at 80,000 units, with Indonesia accounting for around 70% of the output. Forecast to take the next sizable chunk of deliveries is the Philippines, with an estimated 20% share. Thailand is seen as the Xpander’s third-biggest destination.

Mitsubishi Xpander 2
Mitsubishi offered the Xpander for test-drives at its proving ground in Nagoya during the sidelines of the 2017 Tokyo Motor Show. — BRIAN M. AFUANG

During the same presentation, Mitsubishi said the Xpander’s mix of MPV utility and SUV toughness and style is the key to the model’s commercial success. The company said the vehicle — configured in the Philippines to seat seven people — has the roomiest cabin in its class, and even out-sizes the cabin height of a competitor’s larger MPV because of a lower floor. This, Mitsubishi said, is the result of the Xpander’s monocoque structure that does not require its body to be mounted atop a ladder frame (unlike the larger truck-based MPV). A long wheelbase helps in stretching cabin space, too, although some Mitsubishi officials admitted the abovementioned MPV trumps the Xpander in cabin width (the Xpander remains widest among its ilk though, according to them).

The Xpander is powered by Mitsubishi’s MIVEC 1.5-liter, 103 hp gasoline engine that can be mated to a five-speed manual or a four-speed automatic transmission, either of which sends power to the front wheels. In Indonesia, the model is positioned to compete against the Daihatsu Xenia (sold as the Toyota Avanza in the Philippines) and the Honda Mobilio.

MMPC said other notable features of the Xpander include hill-start assist, active stability control, emergency stop signal, and a unique fascia that’s marked by Mitsubishi’s proprietary Dynamic Shield Concept styling.

To place their reservations, MMPC said customers can log on to www.xpander.mmpc.ph. A reservation fee of P10,000 is required, which must be paid in a Mitsubishi Motors dealership.

RLC opens office spaces in Ilocos Norte mall

ROBINSONS LAND Corp. (RLC) has opened new office spaces in the newly expanded Robinsons Place Ilocos Norte, looking to take advantage of the growing number of business process outsourcing (BPO) firms expanding into the provinces. 

In a statement issued Tuesday, the Gokongwei-led property developer said it has unveiled office spaces spanning a gross leasable area (GLA) of 7,829.24 square meters (sq.m.).

Accredited by the Philippine Economic Zone Authority (PEZA), the offices cover three out of four floors in Robinsons Place Ilocos in San Nicolas, Ilocos Norte.

“The site of Robinsons Place Ilocos makes it ideal for BPO offices since it is within close proximity to several universities — five minutes away from Laoag City and 20 minutes from the airport, and is easily accessible from the national highway,” RLC Office Buildings Division and General Manager Faraday D. Go was quoted as saying in a statement.

The company completed the expansion of Robinsons Place Ilocos in 2016, bringing its gross leasable area to 53,600 sq.m., against the previous 20,500 sq.m. RLC said this was the first premier lifestyle mall in Ilocos Norte. 

RLC also described San Nicolas as the center of business in the province, with the presence of local businesses in the retail, services, manufacturing, real estate leasing, printing and advertising, and distribution sectors. 

The Gokongwei-led property firm also has office spaces in Robinsons Luisita in Tarlac City, Robinsons Cybergate Cebu and Robinsons Galleria Cebu in Cebu City, Cybergate Delta in Davao City, and Cybergate Naga in Naga City. 

“BPO companies locate in the provinces to take advantage of less competition for talent, lower office rental rates, and lower cost of talent,” Mr. Go said. 

Property consultancy firms have been recommending that real estate developers build office developments outside Metro Manila, in a bid to decongest the metro and tap the talent pool in the provinces. The Oxford Business Group, for instance, cited Ilocos Norte as one of the up-and-coming areas outside Metro Manila in 2017 due to commercial and tourism growth. 

“The location can also serve as a back-up site for BCP (business continuity planning) and there is a significantly lower entry-level salary base as compared to Metro Manila. There are also sufficient telecommunications infrastructure in these provinces as well,” Mr. Go added. 

RLC’s net income attributable to the parent was flat at P4.56 billion in the first nine months of 2017, with revenues also almost the same as year-ago levels at P16.64 billion. 

The company will be conducting a P20-billion stock rights offering from Feb. 2 to 8, with each of the 1.1 billion common shares priced at P18.20. 

Shares in RLC were up 40 centavos or 1.94% to close at P21 apiece at the Philippine Stock Exchange. — Arra B. Francia

Muzzling the media

The shutdown of online media outfit, Rappler, reminds me of a sequence in the film, Walking Tall, the biopic about Tennessee Sheriff Buford Pusser. Stymied by an uncooperative judge, Pusser invoked a little-known provision in the city statutes, giving him authority to determine where to place the judge’s office. Pusser assigned the judge to the men’s room. Not surprisingly, the latter became very cooperative.

The lesson here is obvious: Don’t fight city hall. You can’t win — at least, that’s what conventional wisdom says.

In the case of Rappler — as well as other media organizations — the lesson is, don’t fight Malacañang. The Securities and Exchange Commission will get you — unless elements of the Philippine National Police knock on your door first (I understand tokhang is back).

The bleeding hearts protesting the use by the SEC of a “technicality” in shutting down Rappler’s operation may have forgotten the oft-used warning, “Those who throw stones should not live in technically vulnerable glass houses.”

The folks putting out Rappler probably knew from the outset that they were taking risks with their kind of investigative reporting. But they took their risks, nonetheless. Now, they must take their hits.

But while their Web site may have been ordered closed, that doesn’t mean it’s time for them to ride off into the sunset. Aside from recourse to the courts, they still have their best assets — themselves.

Unlike the hapless judge in the Walking Tall tale, committed and crusading journalists don’t need an office or the official sanction of government authorities to pursue their mission. They only need their head, heart and hand.

If Maria Ressa and her team haven’t lost their fighting spirit yet, they don’t need the SEC to give them the go-signal to proceed with their mission. In fact, they don’t need a Web site or investors.

They can continue writing their investigative pieces and posting their output on social media till Presidential spokesman Harry Roque turns blue in the face from calling their work fake news.

But that is where, with due respect, they should draw line.

Indeed, there is a thin line between sensationalism and objective but hard-hitting journalism. Without meaning to refer to Rappler, I have seen too many instances when ostensibly reputable media have crossed the line into sensationalism and even outright masturbation of the news.

While I sympathize with Ressa and the writers of Rappler, as well as with the media organizations that are loudly condemning the threat to press freedom, I think they should have watched the movie, Walking Tall, before they mounted their laudable but audacious venture. They were bound to be consigned to a virtual restroom, sooner or later, or be deposited in the trash bin.

Crusading journalists cannot expect any quarters from those whose lucrative lives they jeopardize.

According to a CNN report, the Philippines is one of the most hazardous countries for journalists, next only to Syria and Iraq, both of which happen to be war zones.

My nephew, Conrad de Quiros, used to tell me (when he was still actively writing his newspaper column, before he had a stroke) that Manila-based journalists were not usually the targets of hit squads, just members of the provincial press. Nonetheless, I advised him not to push his luck.

I’ve been told as much by relatives and friends who fear that I may be too critical of sensitive individuals who are in power. But that is an occupational hazard that one must be prepared to face — otherwise, flipping burgers would be a much safer trade.

During the repressive years of the Marcos dictatorship, the late Joe Burgos published the courageously anti-government paper, We Forum and Malaya. Only by the Grace of God was Burgos spared from being salvaged, although the same cannot be said about his son, Jonas.

Jonas Burgos, an activist, was reportedly abducted by the military and was never heard from.

That may say something about the unlamented Marcos government. It probably had the fear of God in some cases, such as that of Joe Burgos. Jonas Burgos disappeared during the tenure of President Gloria Macapagal-Arroyo.

Long before the advent of social media, the banner of the “mosquito press” (called thus for the relentlessness and fearlessness of their sting) was also held high by college publications, like the Philippine Collegian of the University of the Philippines.

Underground journalists also passed on mimeographed newsletters from hand to hand, to the consternation of the martial law censors. The Marcos-controlled TV and radio networks, as well as the broadsheets and tabloids in the Philippines and in the United States, were often scooped by the guerrilla media.

In the US, the late Alex Esclamado had to borrow from every available wallet in sight to keep his anti-Marcos Philippine News in print, having been deprived of advertising revenues by Malacañang fiat. In desperation, the Marcos minions offered Esclamado $12 million to sell his paper. He refused and fought on.

Alex Esclamado never missed a single issue of his weekly paper, although that left him very deep in debt. For his efforts, he was conferred the Philippine Legion of Honor by President Cory Aquino.

In Spain, in 1895, a hardy group of young Filipinos, Los Indios Bravos, published, La Solidaridad, a weekly newspaper, as the spearhead of the propaganda movement, dedicated to pushing for reforms by the Spanish colonial government in the Philippines. They risked the ire of the Spanish government but they proceeded, nonetheless. For their courage, their names have been enshrined in the pantheon of the nation’s heroes.

The first editor of the Soli, as it was referred to for short, was Graciano Lopez Jaena. He was subsequently replaced by Marcelo H. del Pilar. Unfortunately, the publication had to close down due to lack of funds.

Earlier, Jose P. Rizal pursued the crusade for reforms with his two novels, Mi Ultimo Adios and El Filibusterismo. Rizal published his books with borrowed funds.

Of course, we all know what happened to Rizal. Worse than what the SEC has done to Rappler. Much worse.

Let’s all pray that the Rappler team will only have to deal with the SEC and not with tokhang.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

5,000 hectares of CARP land in Davao Region ‘problematic’

THE DEPARTMENT of Agrarian Reform-Davao Region office (DAR-11) said 5,000 hectares (ha) of land, which accounts for 50% of the remaining lots up for distribution under the Comprehensive Agrarian Reform Program (CARP), are “problematic,” DAR Regional Director Joseph H. Orilla told media that the problem mainly involves pending court cases arising from disputes raised by private land owners. “Majority of these areas are haciendas in Davao Oriental,” Mr. Orilla said, noting that several of the cases are pending before the Supreme Court. The 10,000 ha in Davao are part of the remaining 584,000 ha of land nationwide that have yet to be distributed to farmers. The distribution process has been taking so long, Mr. Orilla said, because “privately owned lands, like hacienda landowners, will have to be compensated by the government.” CARP, contained in Republic Act 6657, was passed in June 1988. — Maya M. Padillo

Time to make our driver’s license expensive

I don’t know about you, but I got my driver’s license fairly easily. No, I did not pay a fixer to expedite the process, but the whole examination that was supposed to determine whether I knew how to drive or not was a complete travesty of our motoring regulations.

First of all, the written test consisted of trivia questions that were far more suited to a TV game show than a reliable screening system that would expose unqualified license applicants and prevent them from becoming risks to road safety. I have no idea if there was any sound logic or well-grounded psychology to that test.

And then there was no practical exam at all. They simply asked me if I could drive, and I (of course) said yes. They took my word for it and gave me that precious plastic card — without bothering to check if I even knew where the turn-signal stalk was.

And that’s only the story for those who “legitimately” go through the process. Imagine the many more who forgo the formalities altogether and just grease an insider’s palm. They who believe driving is easy because they see a motoring jungle like Metro Manila and think it can’t possibly require formal driving skills — not realizing that the very reason our roads are chaotic is that motorists don’t submit themselves to proper training.

Little wonder we don’t respect our driver’s license. It has no value whatsoever. It’s a joke. In fact, you can get a real-looking fake one in Quiapo for P500, the argument of those who buy them being: “They’re one and the same, a card you can acquire for practically nothing.”

Thankfully, we could see all of this farce coming to a long-overdue end. As you read this, the Land Transportation Office (LTO) has just wrapped up its first initial meetings with a group of reputable driving schools in the country. The agency is quickly moving to follow the mandate of Republic Act 10930, otherwise known as “An Act Rationalizing and Strengthening the Policy Regarding Driver’s License.” Issued in July 2016, this is the decree that extended the validity of our driver’s license from three to five years.

Now that our license is good for half a decade, the government wants applicants to earn it and not just pay for it. In its ongoing consultations with the driving schools, the LTO wants applicants to take a mandatory training course to be administered by an accredited driving school. Which means the agency will no longer conduct the useless test. Instead, professional driving schools will be tasked to train and then evaluate the license applicants, hopefully eliminating fixers and answer keys. There will be specific modules designed for different vehicles: basic, motorcycle, light and heavy.

The proposed course includes 15 hours of lecture complemented by 15 hours of hands-on training. According to my source who’s familiar with the discussions, license applicants will be made to pick from a list of LTO-accredited driving schools and undergo their training there. All driving schools in the Philippines may apply for accreditation if they wish to be included in the program.

The tricky part here — as is always the case in this budget-conscious republic — is the fixed fee to be paid to the driving schools. Since the parties involved are still discussing the details of the program, nothing is final yet. But one suggestion being thrown around is to charge applicants P500 per hour of training, which would make the whole course worth at least P7,500. For average Filipinos, that amount isn’t cheap — almost like applying for a US visa.

I can already see the rants on social media if this gets approved: “prohibitive,” “corrupt,” “anti-poor,” “elitist,” “onerous.”

But then, the privilege of driving should have always been costly to begin with. It’s the only way we will cherish it dearly. Price it high and threaten to take it away if a driver accumulates a certain number of demerits. Let’s see if everyone doesn’t drive far more responsibly. Our driver’s license is so affordable Maria Isabel Lopez couldn’t care less if she lost it.

One way of making the driving school fee more acceptable is to make applicants see the benefits of the training course. Let’s tell them, for instance, that P7,500 is nothing compared to the damages they will avoid in the future if they’re better equipped to handle a steering wheel, or even relative to the traffic violation fines they will dodge if they’re properly educated.

I’m not lobbying on behalf of the LTO or the driving schools. The fee isn’t even final yet. Everything is still in the negotiation stage. All I’m saying is that the driver’s license should come with a hefty price tag. Let’s not give it away. Those who receive it could either safely rush a patient to the hospital or recklessly send another person to the grave. It’s a daunting task and so should cost a lot.

Time to take our motoring licensure seriously. Enough of the Mickey Mouse test.

Tillerson to rally Americas, amid Venezuela crisis

WASHINGTON — US Secretary of State Rex W. Tillerson is to embark on his first major tour of Central and South America this week as a worried region watches Venezuela’s slide into crisis.

On Thursday, Washington’s top envoy will lay out his vision for relations with the United States’ southern neighbors in a speech in Texas before jetting on a five-nation voyage.

The political and economic turmoil in Venezuela will top the agenda as Mr. Tillerson rallies support for Washington’s tough stance against President Nicolas Maduro’s regime.

But Mr. Tillerson will also tackle crime and immigration in US neighbor Mexico, after President Donald J. Trump threatened to tear up a North American trade pact and build a border wall.

And, in his talks with senior officials, he will help prepare four major diplomatic events, starting with April’s Summit of the Americas in Peru and June’s G7 meet in Canada.

Then, later this year on Nov. 30 to Dec. 1, Latin America will for the first time host the G20 Leaders’ Summit of the world’s great powers in Buenos Aires, Argentina.

“We’re going to have a year of high profile events,” a senior State Department official told Washington reporters at a background briefing on the trip ahead.

“The secretary’s speech will, I think, set the stage for all of that,” he said, explaining Mr. Tillerson’s stop over at the University of Austin, in Texas on his southward leg.

In addition to the international timetable, several major Latin American economies hold elections this year, including Venezuela, which plans to vote before the end of April.

Washington has vowed not to recognize the result of that vote, which it says was set up in violation of Venezuela’s own constitution simply to entrench Mr. Maduro’s beleaguered regime.

Less controversially, but still critically for the democratic health of the continent, other players will also go the polls.

Mexico votes in July, perhaps delaying high-wire negotiations between Washington and President Peña Nieto’s government to save the NAFTA trade deal and fight organized crimes.

There will also be a Colombian election in May and a Brazilian election in October.

Venezuela will be top of the agenda at each of the stops: Mexico, Argentina, Peru, Colombia and then a few hours in Jamaica on the homeward leg.

All the stops but Jamaica are members of the Lima Group set up to coordinate a joint Americas response to the Venezuela crisis, and Jamaica has joined meetings and played a role.

The Lima Group has urged Mr. Maduro’s government to carry out democratic reforms, release political prisoners and allow foreign organizations to supply aid to Venezuelans.

Regional heavyweights Brazil and Argentina have been reluctant to follow Washington’s lead and impose sanctions on Mr. Maduro’s regime, fearing poor Venezuelans will suffer most.

But they agree with the political message, and Argentina’s President Mauricio Macri confirmed to AFP on Saturday that his government would not recognize Venezuela’s upcoming election.

Venezuela — hit by low oil prices, corruption and instability — is enduring one of the worst crises in its history under Mr. Maduro, late leader Hugo Chavez’ hand-picked successor.

Inflation for this year is forecast to hit 13,000%, and from April to July last year angry Venezuelans clashed with security forces in the street, leaving 125 dead.

Mr. Tillerson will be in Texas for his speech on Thursday, Feb. 1 before flying to Mexico City for two days of talks, including with Mr. Nieto and Foreign Minister Luis Videgaray.

On Saturday he arrives in Argentina’s Andes’ resort of Bariloche, and on Sunday he heads on to Buenos Aires, for talks with senior officials.

As he turns back and heads north, he has talks in Lima, Peru on Monday and Tuesday, when he also arrives later in Bogota, Colombia before flying home via Kingston on Wednesday. — AFP

Stocks decline to track sell-off in other markets

By Arra B. Francia, Reporter

STOCKS bled on Tuesday, tracking the sell-off seen in other regional markets after hitting consecutive record highs in previous weeks.

The 30-company Philippine Stock Exchange index (PSEi) dropped 1.63% or 148.14 points to settle at 8,910.48 yesterday, while the broader all-shares index lost 1.48% or 78.36 points to 5,194.64.

“I believe this is a correction, after we have been up from the start of the year within a span of less than a month. And the one that triggered this was the global market which was down today,” Diversified Securities, Inc. equity trader Aniceto K. Pangan said in a phone interview on Tuesday.

International markets were mostly down on Monday, with the Dow Jones Industrial Average shedding 0.67% or 177.23 points to 26,439.48. The Nasdaq Composite Index was down 0.52% or 39.27 points to 7,466.50, while the S&P 500 index dipped 0.67% or 19.34 points to 2,853.53.

Southeast Asian stock markets fell on Tuesday tracking Wall Street.

“Asian markets are tracking US equity markets, which finished broadly lower with tech and energy stocks accounting for much of the decline,” said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.

The dollar traded above a recent three-year low against a basket of major currencies on Tuesday, having drawn some support from a rise in US bond yields as traders awaited a Federal Reserve policy meeting for fresh catalysts.   

BDO Capital and Investment Corp. President Eduardo V. Francisco also said the market’s decline was due to profit taking.

“There was just profit taking but fundamentals remain unchanged,” Mr. Francisco said.

Diversified Securities’ Mr. Pangan noted that yields in the United States had hit an all-time high on Monday at 2.7%, prompting investors to take profits.

“With the increase in rates, definitely this will reduce liquidity in the system…with that, it gave a signal to the investors to take profits,” he said.

All sectoral indices shed points on Tuesday. Holding firms slipped 1.85% or 173.18 points to 9,189.77; property was down 1.85% or 76.09 points to 4,028.38; mining and oil gave up 1.81% or 222.53 points to 12,011.52; services moved down 1.7% or 29.62 points to 1,706.68; industrials dropped 1.39% or 167.50 points to 11,849.03; while financials closed lower by 0.62% or 14.12 points to 2,244.03.

The market was valued at P10.05 billion yesterday after some 2.39 billion issues switched hands, higher than Monday’s P8.87 billion.

Decliners outpaced advancers, 151 to 58, as 55 issues remained unchanged.

Net foreign outflows widened to P2.02 billion on Tuesday from the P86.04 million recorded on Monday.

Mr. Pangan said the market could fall to as low as the 8,800 mark this week as it continues to correct. — with Reuters