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TUCP calls for fire safety inspection of malls nationwide

LABOR GROUP Trade Union Congress of the Philippines (TUCP) in a statement on Sunday called for a joint fire safety audit of malls nationwide by the Department of Labor and Employment (DoLE) and the Bureau of Fire Protection (BFP). “The ongoing Metro Ayala Mall and the Gaisano mall and the NCCC Mall fires are symptoms of the wanton disregard of department store owners to go around our building safety laws and ignore workplace policy on workers’ health and safety. We have to find out other malls nationwide how safe or how fire-risks these are,” TUCP president Raymond Mendoza said. According to Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesman Alan Tanjusay, they envision the joint DoLE-BFP safety audit inspections to be conducted immediately to coincide with the forthcoming dry season when most fire incidents happen.

Business looks southward even as reality hits home

By Krista A. M. Montealegre
National Correspondent

THE RISE to power of President Rodrigo R. Duterte fuelled hopes of finally ending decades of insurgency in Mindanao to help unlock its potential as an investment haven.

When Mr. Duterte emerged as the clear winner in the 2016 national elections, businesses turned south and pledged to allocate more of their resources to Mindanao, which has suffered from underdevelopment due to the longstanding armed conflict. After all, there is a reason to be optimistic: Mr. Duterte, the mayor of Davao City for two decades, is the first president to come from Mindanao.

Then, nearly a year into the Duterte administration, terror struck Mindanao. Islamic State (IS)-inspired militants attacked Marawi City on May 23, forcing Mr. Duterte to cut short his trip to Russia and declare Martial Law in the southern island region.

It was back to square one for once-bullish investors, who were reminded of the gravity of Mindanao’s insurgency problem.

“Sayang lang (It was a pity) because there was strong momentum when [Mr.] Duterte won the elections. When all these promises turned to reality and that reality became Marawi, nagkaroon ng hesitation (returned),” Rens V. Cruz II, analyst at Regina Capital Development Corp., said in a phone interview.

There is definitely room for private sector investment in Mindanao, which has some of the highest poverty rates in the entire Philippines, especially in conflict-affected areas. The province of Lanao del Sur, home to Marawi City, had the highest poverty incidence among provinces in the Philippines at 71.9% in 2015, according to data from the Philippine Statistics Authority.

Still, there were some brave souls who bet big on the long-term prospects of Mindanao despite the attack on Marawi.

Amid the standoff between the army and militants in Marawi, Metro Pacific Investments Corp. (MPIC) pushed through last June with its acquisition of a 50% stake in Alcantara-led Alsons Thermal Energy Corp., which owns base load coal-fired power plant assets in Mindanao.

The investment expanded MPIC’s Mindanao footprint beyond two hospitals: Davao Doctors Hospital and Western Mindanao Medical Center in Zamboanga.

“From what I know, you go there in Mindanao and it’s normal. It’s business as usual,” Karim G. Garcia, MPIC’s executive vice-president for Business Development, said in an interview.

“As opportunities come up, we’ll take a look and if there’s synergies with the group’s core businesses and strengths, we’ll definitely invest.”

After 148 days of fighting, President Duterte announced last Oct. 17 that Marawi had been liberated after Omar Maute and Isnilon Hapilon, leaders of the terrorists, were killed in battle.

The focus now shifts to rebuilding Marawi, which sustained significant damage to infrastructure, agricultural resources and other sources of livelihood. Around 400,000 citizens have been displaced due to the conflict.

“The speed in which a place is able to recover is a big representation of the whole market. If Marawi can come back quickly than what happened in Leyte, that’s a good sign for the big names to come in,” Regina Capital’s Mr. Cruz said, referring to rehabilitation efforts in Leyte which supertyphoon Yolanda hit in early November 2013.

With the Marawi incident still fresh in the minds of investors, businesses are taking it slow and adopting a cautious approach.

A construction company executive urged the government to let the military start the rebuilding process in Marawi before letting the private sector take over.

“We are as good kung sasama ang mga tao namin (if we are in this togehter). Kung gusto namin pero ayaw sumama ng tao because of security, mahirap sabihin (If we are willing but others are not because of fears to their security, it will be difficult to say when rebuilding can start),” the official said.

Despite the apprehension, Mary Jade Roxas-Divinagracia, managing partner for deals and corporate finance at PwC Philippines, sees the agriculture, utilities and infrastructure sectors getting “a lot of interest” from local businessmen, even as foreign investors remain “jittery.”

“I hope peace will come to Mindanao sooner. With that, investments in other sectors will also flourish like tourism and even manufacturing,” Ms. Divinagracia said in a mobile phone message.

Another major bet in Mindanao is San Miguel Corp.’s 2,000-hectare industrial estate in Malita, Davao Occidental where the conglomerate is building a $700-million integrated packaging plant and a 600-megawatt power generation facility.

San Miguel plans to bring small- and medium-scale enterprises and a number of manufacturing companies into the estate.

Apart from security, other concerns have deterred investments in Mindanao.

A World Bank report showed that cities in Mindanao have trailed other East Asian cities on Doing Business indicators. For instance, Mindanao top performers General Santos and Davao ranked 124th and 125th respectively, among 151 cities for starting a business, compared to Singapore (1st), Thailand (59th) and Malaysia (71st).

The same report bared that skills shortages have plagued various sectors like information technology-business process outsourcing, manufacturing and construction because of the minimal investment in basic education, inadequate training programs and the migration of skilled workers.

Also, the time spent and cost involved in registering a property in Mindanao’s cities were the worst in the Philippines, the World Bank report showed, noting it has resulted in reduced incentives to develop land and slowed infrastructure projects with right-of-way issues.

Ironically, most of the Philippine tycoons’ exposure in Mindanao is in real estate, with behemoths Ayala Land, Inc. and Megaworld Corp. bringing their expertise in building mixed-use developments particularly in Davao City.

“We’re already significantly invested in Mindanao, both socially and business-wise. Ayala Land’s there. We’re all over,” AC Infrastructure Holdings, Inc. President and CEO Jose Rene D. Almendras said in an interview.

Between now and 2021, there are around 10,000 residential condominium units, 60,000 square meters of office space, 70,000 square meters of retail space and more than 1,200 hotel keys in the pipeline in Mindanao, Claro dG. Cordero, Jr., head of Jones Lang LaLSalle (JLL) Philippines’ research, consulting and valuation advisory services, said in a mobile phone message.

Most of the developments are mainly located in the urban centers, particularly Davao City followed by Cagayan de Oro City, Mr. Cordero added.

”I believe Mindanao as a future growth center would be [Mr.] Duterte’s legacy,” Cristina S. Ulang, First Metro Investment Corp. (FMIC) head of Research, said in an interview.

“It is the prospect of peace and security made credible by [Mr.] Duterte’s ability to deliver on his anti-terrorism campaign, (with the) defeat of Maute in Marawi. It is raising hopes for Mindanao’s bankability as an investment destination.”

Are Mindanao’s MSMEs ready?

The Philippines stands to benefit from improved access to the Association of Southeast Asian Nations (ASEAN) member countries, but are Mindanao’s businesses particularly micro, small and medium enterprises (MSMEs), ready to compete in the highly competitive market?

Mindanao Business Council President Vicente T. Lao believes products made in the region have a fighting chance in the ASEAN market, especially in terms of quality and presentation.

“We just have to keep our costs at a reasonable level and government has to do their job in getting concessions from the different countries we are doing business with, so that our products will be competitive when it arrives at their shores,” he said in an interview with BusinessWorld.

Data from the Department of Trade and Industry (DTI) showed as of 2014 there are 3,414 SMEs in Zamboanga Peninsula, 4,473 in Northern Mindanao, 4,781 in the Davao region, 4,952 in Soccskargen, 2,459 in Caraga and 973 in the Autonomous Region in Muslim Mindanao.

MSMEs are defined by size of assets and the number of employees. Micro-enterprises have an asset size of up to P3 million and up to nine employees, while small enterprises have an asset size above P3 million up to P15 million and have up to 99 employees. Medium enterprises have assets from above P15 million to P100 million, and a workforce of 100 to 199 employees.

In terms of industry, 46.37% of the MSMEs in Mindanao are engaged in wholesale or retail trade, while 13.5% are in accommodation and food service activities, and 12.48% are into manufacturing. The rest are in information and communication, financial and insurance activities, agriculture, forestry and fishing, mining, construction, utilities, education, and other types of industries.

Mr. Lao said MSMEs in Mindanao need help in terms of financing and market access. He said the Department of Trade and Industry (DTI) and Department of Finance (DoF) should come up with better programs for MSMEs to help them go head-to-head with ASEAN firms.

In a separate interview, Ateneo School of Government Dean and economist Ronald U. Mendoza noted the DTI “despite its best efforts, is still not reaching all of the MSMEs.”

“It is only reaching a fraction of the MSMEs. There are any number agencies that can provide support to the SMEs in ways that actually are more sustainable — not the kind that are continuous subsidies,” he said.

“I think the other part of the support will be to bring in more of the private sector to support these MSMEs, such as interconnecting them with strong value chains that go to export markets or connecting to the large conglomerates that also want to tap the comparative advantages of MSMEs and that is still missing in our countries,” Mr. Mendoza added.

SUPPORT FOR MSMEs
For its part, the DTI has continued to provide support for MSMEs through the Investments Priorities Plan (IPP) which is provides fiscal incentives to “inclusive business” projects benefiting MSMEs, as well as financing schemes such as the Pondo Para sa Pagbabago at Pag-Asenso (P3) program.

The DTI has also rolled out the Go! Lokal retail concept stores which gives MSMEs a chance to test their products’ marketability without incurring costs of operating retail spaces.

Another part of the government’s program to develop MSMEs is the Shared Service Facility (SSF) Project, which aims to improve the competitiveness of small businesses by providing machinery, equipment, tools, systems, skills, and knowledge under a shared system.

At the same time, the Duterte administration is pouring in significant amounts for programs supporting the development of MSMEs.

Trade Secretary Ramon M. Lopez said President Rodrigo R. Duterte recently already ordered the allocation of P50 billion for the development of MSMEs, acknowledging their importance to the economy.

“With regard to incentives and other forms of government support, we are coordinating with the Department of Finance to ensure that these are performance-based, time-bound, transparent, and easy to administer. We maintain that incentives can be effective tools for industry development and ensure our competitiveness,” Mr. Lopez said in his speech during the Manufacturing Summit 2017.

The DTI chief noted the government is supporting SME development “by boosting their growth and profitability through the 7Ms (Mind-set, Mastery, Mentoring, Money, Machine, Market, and Models) as well as programs focusing on the establishment of common service facilities, and improving access to finance, technology, and skilled workers.”

Despite government efforts, National Competitiveness Council Co-Chairman Guillermo M. Luz said the government has limitations, such as granting credit to the MSMEs in Mindanao, which he said is just as important as improving infrastructure in the region.

“I don’t think that can come from the government but it can come from the banking system. Connectivity, internet, all those types of things — e-commerce those things which will have to be provided by the private sector. I don’t think the government is in the position to supply everything,” Mr. Luz said in a separate interview.

CONNECTIVITY
Noting poor connectivity among the islands, the Duterte administration kicked off the “Build Build Build” program, which includes 70 infrastructure projects nationwide. Only 12 of these projects are directed towards Mindanao — 10 of which are under project development while two are already being implemented.

Mr. Lopez said the DTI and the Board of Investments (BoI) are working together with the Department of Public Works and Highways (DPWH) for the Roads Leveraging Linkages for Industry and Trade (ROLL IT) program to provide better connectivity in the region, particularly establish a more efficient supply chain linking larger enterprises with the MSMEs in far-flung regions.

“The goal of this program is to prioritize and implement road access infrastructure that leads to various industries and economic zones. Through ROLL IT, we are proposing P12.3 billion-worth of road infrastructure across the country under the proposed 2018 budget,” he added.

Trade Undersecretary for Competitiveness and Ease of Doing Business Group Ruth B. Castelo said the infrastructure projects in Mindanao already serve as the beacon for investors to flock the region.

“If we do not have adequate logistics, we cannot provide for business. It’s going to make their business faster otherwise without infrastructure development, it will be very hard for the investors to come and they will be turned off with all that traffic,” she added.

Ms. Castelo, who previously headed the Construction Industry Authority of the Philippines, said the infrastructure projects will also give a change to link small contractors to the supply chain of larger firms.

“In Mindanao, not only in Mindanao actually, but with the roll out of the projects, the big construction companies with the financial capability cannot of course cannot complete the projects on their own. We have a lot of small and medium contractors, as a matter of fact, there are more of them than big contractors,” she said.

“So, in terms of construction, of course the bigger companies will be able to give opportunities to our smaller contractors for them to develop, in terms of their expertise, their technology and manpower.”

Last April, a roll-on, roll-off route was launched, connecting Davao, General Santos, and Bitung in Sulawesi, Indonesia, the first of many projects aimed to improve connectivity in the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP- EAGA).

“Mindanao is the closest to the other ASEAN countries. We can expect a boom in Mindanao in the next five years — not only in terms of construction and infrastructure but also in other industries that we’re developing,” Ms. Castelo said. — Anna Gabriela A. Mogato

Free tertiary education funding assured

DAVAO CITY Representative and House appropriations committee chairman Karlo Alexei B. Nograles said there would be continued funding for free higher education beginning this year and in the succeeding years. “We allocated P40 billion for the implementation of the free higher education law and we are happy that the Senate did not touch it,” Mr. Nograles said, in connection with Republic Act 10931 or the Universal Access to Quality Tertiary Education Act, which President Rodrigo R. Duterte signed into law before the end of 2017. The law guarantees free tuition and miscellaneous fees next schoolyear for students who will enroll in the almost 112 state universities and colleges (SUCs) in various locations in the Philippines. This year’s budget will also pave the way for the implementation of free wi-fi for SUCs nationwide. “The next budget for free education is on 2019. We will try every year to put budget for higher education,” Mr. Nograles said. He said the SUCs already have a capital outlay for the construction of buildings and other infrastructure requirement. On top of that, an additional P10 million for each of the SUCs will be allotted for the construction of new buildings. Mr. Nograles said teachers are also set to get an additional P1,000 cash allowance every month which means an increase from P2,500 to P3,500 cash allowance per month. — Carmencita A. Carillo

Stephen Curry lights up LA Clippers in Warriors win; Cavaliers, Celtics triumph

LOS ANGELES — Stephen Curry erupted for 45 points to propel the Golden State Warriors to a 121-105 NBA victory over the Clippers in Los Angeles on Saturday.

Curry, who has dazzled since returning from an 11-game injury absence, connected on eight of his 16 three-point attempts and made a career-high 15 of his 16 free-throws.

He sat out the entire fourth quarter, but his 45 points in 29 minutes on the floor marked the fifth time in NBA history that a player scored 45 or more in 30 minutes or less.

“I knew right away, when I got free for a couple of threes in the first quarter and they went down, I got in a rhythm,” Curry said. “Beyond that, you just keep your head down and keep shooting and stay aggressive.”

In the four games since his return, Curry has averaged 36 points while shooting 65.6% from the field.

“He’s on fire,” said Warriors coach Steve Kerr. “Maybe the break was good for him. He’s been amazing.”

Curry’s performance meant the reigning NBA champion Warriors hardly missed forward Kevin Durant, who was again sidelined with a right calf strain.

Leading by nine at halftime, the Warriors outscored the Clippers, 39-21, in the third quarter, expanding the lead to as many as 30 points.

“That third quarter was important for us,” Kerr said. “But this was mainly about Steph tonight.”

For the Clippers, it was more than a demoralizing defeat as Blake Griffin suffered a concussion less than three minutes left in the first quarter.

Griffin was driving to the basket and seemed to slip before Warriors reserve center JaVale McGee inadvertently caught him in the forehead with an elbow.

Griffin collapsed to the court, shaking as he held his head in his hands.

He remained down for several minutes before he was able to make his way to the locker room.

CAVS SNAP ROAD SKID
The Cleveland Cavaliers, who have dueled with the Warriors in the past three NBA Finals, snapped their five-game road losing streak with a 131-127 victory over the Magic in Orlando.

LeBron James scored 33 points, pulled down 10 rebounds and handed out nine assists.

The Cavs star made 12 of 23 shots from the field, including four of seven from three-point range. He also had six steals and a blocked shot.

The Magic trailed by three at halftime, but the Cavaliers pulled away in the third, when they out-scored Orlando, 40-23.

Isaiah Thomas, making his first start for Cleveland after injury sidelined him until this month, took a little time to adjust, going scoreless in the first quarter before finishing with 19 points and four assists in 21 minutes.

The Cavaliers improved to 26-13, third in the Eastern Conference led by the Boston Celtics — who held on for an 87-85 victory over the Nets in Brooklyn.

Jayson Tatum’s dunk with 1:16 remaining gave Boston the lead for good in a game that saw the lead change hands eight times in the fourth quarter.

Tatum’s three-pointer pushed Boston’s lead to 87-83 with 45.7 seconds left.

But the Nets wouldn’t go away. Joe Harris scored on a put back and Brooklyn thwarted a drive by Kyrie Irving before finding themselves unable to come up with a game-tying basket despite four chances in the waning seconds.

Irving finished with 21 points to lead the Celtics, who notched their sixth straight win.

PISTONS DOWN ROCKETS
In Detroit, the Pistons shook off the injury absences of Andre Drummond, Reggie Jackson and Stanley Johnson to beat the Houston Rockets, 108-101.

Tobias Harris scored 27 points, one of six Detroit players to score in double figures in the win over a Rockets team that in the absence of injured star James Harden slumped to a seventh defeat in nine games.

In Indianapolis, Victor Oladipo returned from injury to score 23 points with nine assists and five steals in the Indiana Pacers’ 125-86 victory over the sluggish Chicago Bulls.

Chicago came into the contest having scored at least 110 points in five straight games but struggled offensively, committing 16 turnovers and shooting just 37.5% from the floor to trail by as many as 41 points. — AFP

Gov’t think tank wants casino gamblers to pay higher fees

STATE-RUN think tank National Tax Research Center (NTRC) wants to raise the qualifying fee collected from casino gamblers to raise additional revenue for the government, according to its latest research journal.

It proposes to raise the P100 qualifying fee for casino gambling to P500, or even P1,500.

The NTRC said that the fee hike will factor in the effect of inflation as the fees were set in 1993, while also deterring low-income persons from gambling in casinos.

“The government may take advantage of the country’s vibrant gaming industry to help raise needed revenue to finance its development projects such as its Build Build Build program as the country gears towards achieving the ‘Golden Age of Infrastructure,’” the NTRC said.

“Notwithstanding its contribution to the country’s economic growth and potential to generate government revenue, gambling also has its attendant social costs which must be managed carefully. The collection of a higher qualifying fee in all casinos could be a practical way to discourage those who do not have enough money to spend in casinos,” it added.

The think tank said that a P500 qualifying fee is estimated to generate an additional P1.39 billion annually.

Executive Order No. 48 signed by President Fidel V. Ramos in 1993 authorizes the Philippine Amusement and Gaming Corp. (Pagcor) to collect an optional qualifying fee from casino gamblers.

Casinos that have opted to waive the fee include Waterfront Airport Hotel and Casino Mactan as well as those located in Entertainment City, e.g. City of Dreams, Okada Manila, and Resorts World Manila, among others, the NTRC noted.

Pagcor was able to raise P14.44 million in from the fees in 2016, up 36.48%.

House Bills 5871 and 2061 filed during the 17th Congress sought to impose fees as high as P3,000 and P3,500, which the NTRC considers “too high.”

“The rates proposed by the bills may also be an option but said amounts may already be considered too high by casino players,” the NTRC said.

Countries imposing a qualifying fee include Singapore at the equivalent of P3,743 while Vietnam charges about P2,200 and India about P796.

The gaming industry reported P128.44 billion in gross gaming revenue (GGR) in 2016, up 19.26%. Some 80% of the GGR total was generated by 10 licensed casinos. — Elijah Joseph C. Tubayan

Boosting tourism after Marawi

By Zsarlene B. Chua, Reporter

Twenty-seventeen was a difficult year for Mindanao as one of its main cities, Marawi in Lanao del Sur, reeled from a five-month government offensive to reclaim it from Islamic State-inspired militants, not to mention that martial law declared on the day the siege began will now last until end-2018.

Still, the Department of Tourism (DoT) remains unfazed as it continues to roll out several projects meant to encourage tourists to visit the second-largest island in the country.

“All [tourism] fronts increased but we’re still trying to observe from the reports of our regional directors if [the battle for Marawi and martial law] had an effect on tourism,” said Alma Rita D. Jimenez, undersecretary for tourism regulation, coordination and resource generation, in a Nov. 17 interview.

“But from on ground reports and feelers, they have not felt its effects.”

And if the viral Camiguin tourism video launched late October were any indication, Mindanao tourism offices have continued promotion of the island’s regions.

Titled No Words #FeelCamiguin, the four-minute-long video featured a cynical first-time tourist in Camiguin being won over the by the island’s charm, with locals not saying a single word and letting the sights and experiences do the talking.

As of this writing, the video posted on the Facebook page of the Camiguin Tourism Office had over one million views.

DoT data showed the country welcomed 4.4 million international tourists from January to August, a 10% growth from 2016’s corresponding eight months.

According to the Mindanao Development Authority, the island welcomed 8.7 million domestic and foreign visitors in 2016, with domestic tourists comprising 94.7% of the total market.

Ms. Jimenez said when martial law in Mindanao was declared, her department told regional offices there to “use their time productively during this downtime” by joining trainings, seminars and improving tourism infrastructure.

“But they told us there weren’t any downtimes,” she said.

Mindanao has had a long troubled history of insurgencies and terrorism, and, as such, is no stranger to travel advisories. For example, the United Kingdom in a Nov. 21 advisory advised against traveling to western and central Mindanao and the Sulu archipelago (excluding Camiguin, Dinagat and Siargao Islands) “because of terrorist activity and clashes between the military and insurgent groups,” according to its government Web site.

In April, several countries including Australia, Canada and New Zealand also issued advisories against traveling to many parts of Mindanao due to the threat of terrorism and kidnapping. These came on the heels of other advisories earlier that month after government forces clashed with Abu Sayyaf terrorists in Inabanga, Bohol.

“Terrorism happens in London, it happens in France, it happens in New York and several times it happened in those places with casualties. Can you tell me where is a safer place?” Ms. Jimenez said.

RESILIENT MARKET
Despite the said advisories, Ms. Jimenez noted that the millennials market has remained unaffected.

“While it’s difficult, there’s one upside: the millennial market is strong,” she said.

“About 26% of the global tourism market is coming from that age group. Millennials have no fear, they don’t avoid destinations because it’s risky — they even look at it as an adventure,” she added.

“For me, maybe we just need to appeal to that kind of market. Because we cannot appeal to all kinds of market because not all will have the same appetite for the products that you offer.”

And since Mindanao offers much in terms of ecotourism, Ms. Jimenez said the department is trying to develop products catering to these strengths.

“I think Mindanao is on the right track because it has very good destinations that are really ideal for eco-tourism, farm tourism, etc., and I think that’s the product line they can sell,” she said.

Products with considerable demand include trek trails that take tourists to Malagos Chocolate Farm in Davao and Mt. Apo.

Aside from the trek trails, DoT plans to introduce river cruises this year to major tourist destinations.

“It makes sense for us — because we have islands upon islands — to leverage the presence of our rivers,” she said adding that the department will be trying to replicate what has been done for Loboc River in Bohol in other parts of the country.

The department currently has 67 rivers identified as having potential to be turned into tourist destinations.

“[The point is] to make tourists stay longer because they have activities and spend more because that is what is needed in the communities and also because we want to prioritize provinces with very high poverty incidence,” she said.

Using Sohoton Cave in Samar as an example, Ms. Jimenez figured the department could establish three to four docking stations along the river, with each station specializing in activities like arts and crafts or home-stays and eco-resorts.

“Our direction is promoting circuit tourism packages which will involve tourists going from one province to another so we can distribute the benefits of tourism in many areas,” Ms. Jimenez said.

TRANSPORT
But connectivity is key, the official said.

This is why in the absence of direct flights — Davao remains the main airport hub to the island alongside smaller airports like Zamboanga and Cagayan de Oro — the department is looking for workarounds so people can still discover Mindanao.

“It is one of the problems but I can’t say it is the problem as you can do workarounds: charter flights and three-point routes (enter via Davao and use land or sea travel to get to the one’s destination),” she said, adding that the department has been working with Asia Foundation on a paper “on the business case of opening airline routes in Mindanao” in order to encourage more direct flights.

“What our regional directors are currently doing is trying to connect with transport providers so we can have connectivity within the region, because once we have a route within the region, it would be easier to connect it to routes outside the region,” she explained.

Last year, the DoT, in partnership with Davao Metro Shuttle, launched the Go Mindanao Bus tour, with routes plying Cagayan de Oro, Mati, Siargao, Bukidnon, Butuan, Pagadian, Davao, Camiguin, Surigao, Lake Sebu, Dipolog and Cotabato.

DoT regional offices in Mindanao are also working together under the One Mindanao cluster so they can do cross-promotion of provinces.

The department has designated tourism clusters so that neighboring regions can work together to promote tourism: the North Philippine cluster, the South Philippine cluster (which includes Regions 4A, 4B and 5 in Luzon), One Mindanao and the Visayas Cluster.

“It will take some time before sites will be developed but [Mindanao] will, in turn, have the luxury of time and also the luxury of lessons learned from the problems in Metro Manila and all the other provinces so they will be able start developing liveable cities and developing livable communities and not unmitigated, unplanned, unmaster-planned tourism development,” she said.

To sleep, perchance to dream during office hours

CANDICE MARTELINO is a corporate banking manager which entails client-servicing and relationship building. She attends to a lot of meetings (which often extend beyond their schedule times). “There was a time when I [would] come in early for work just to beat the traffic. I’m here [in the office] as early as 7 a.m. I park, go to the office, and do my e-mails. Then, I’d go back to the car just for me to rest to perk me up since I have a long day ahead.” Upon arriving home from work, Ms. Martelino says she is lucky if she gets six hours of sleep.

Ms. Martelino’s co-worker, Brian Dera, added that he would sleep in the car during his lunch and afternoon breaks to catch up on his sleep. Instead of braving the rush hour after work, he and his co-workers would look for a place to kill time and rest before going home.

According to the 2016 AIA Healthy Living Index survey, the Philippines — with a score of 61 points out of a possible 100 — slipped from 6th to the 9th amongst 15 markets in Asia and Australia when it comes to improvements on health. The survey results show that “while Filipino adults would ideally like to get 8.2 hours of sleep a night, in reality, they only sleep 6.8 hours on average. This sleep deficit of 1.4 hours is one of the highest among the 15 markets.”

Aware that many Makati office workers like them share the problem of finding a quiet and private place to rest near their offices, first-time business owners Mr. Dera and Ms. Martelino established a sleeping lounge called Hibernap (from “hibernate” and “nap”) in October 2017 at the Legaspi Parkview Condominium in Makati city.

The peach, lavender, and white-walled lounge currently has eight recliner chairs separated from each other by red curtains, and closed off from the rest of the room with black curtains. Guests are welcomed into the air-conditioned room with soothing instrumental music.

The sleep-deprived customers may opt to sleep for an hour (P140), 30 minutes (P75), or avail of the open-time service. Pagers are given to them to serve as alarms to regulate the nap time, while blankets and eye masks may be rented or purchased. Hibernap also has shower facilities (P150). Refreshments are served after the nap.

Hibernap accepts both walk-in customers and those with reservations.

Hibernap 2
Hibernap’s owners Candice Martelino (L) and Brian Dera figured they were not the only sleep-deprived workers in Makati and decided to fulfill an unmet need by opening a sleep lounge. — MICHELLE ANNE P. SOLIMAN

A nap card was launched last December which is a prepaid card (P1,399) for 12 nap hours, with free use of a blanket and eye mask, and a diamond peel session from Hibernap’s partner skin care clinic, Beaucharm Derma. The nap card is valid until Feb. 28.

The owners said that the business targets professionals in retail banking companies, as well as accountants, businessmen, lawyers, and residents in Makati, adding that the lounge functions to “extend your bedroom in the workplace.”

“Our mission is to help people be more productive with work. We firmly believe in the benefits of napping. It increases your productivity, memory, and overall health,” Ms. Martelino said.

“We live in a very fast-paced environment. Sleep is something we overlook… Everyone needs to rest once in a while,” Mr. Dera stressed.

The owners plan to open branches in other business districts, the university belt in Manila, and bus terminals.

Hibernap is located at 134 Legaspi Parkview Condominium, Legazpi St., cor. Carlos Palanca St., Legaspi Village, Makati City. It is open Monday to Friday, from 8:30 a.m. to 8:30 p.m. For more information, visit www.facebook.com/hibernap/ or call 0916-504-8405. — Michelle Anne P. Soliman

E-Sports: Galaxy Battles II organizers determined to see tourney through

HIT by an unexpected turn of events leading to its staging next week, organizers of Galaxy Battles II said they are working double time and exerting every effort to have the anticipated e-sports event push through.

Lost its “Major” designation after Valve Corp., the parent company and developer of DotA 2 (Defense of the Ancients), decided to rescind such last Friday over what it considers as “unreasonable infringements on the privacy of the players,” including mandatory drug testing, the decision has left organizers of the DotA 2 event, happening on Jan. 19 to 21 at the Philippine Arena in Bulacan, in a tough bind.

Along with the withdrawal of Valve also went the Pro Circuit points that would have been available, leaving the participation of some of the expected competing teams in doubt.

Over the weekend, however, Fallout Gaming, organizer of the Galaxy Battles II, sought to allay the fears of e-sports fans in the country by saying in a statement that they are working hard to address the issues and that it is determined to push through with the event, which is a follow-up to the highly successful Galaxy Battles that happened in Shenzhen, China, last June.

In the statement, Fallout Gaming said that it was taken by surprise by the decision of Valve to remove the Major status of the upcoming Galaxy Battles, which is designed to take the already-competitive and growing e-sports scene to another plane not only in the country but also in the Southeast Asian region.

Nonetheless it also reiterated that it is maintaining its commitment with the country’s Games and Amusements Board (GAB) to comply with its rules and regulations, including mandatory drug testing, and that it is encouraging teams and their individual members to abide by the laws of every country they are competing in.

It went on to say that the requirements set by the Philippine government should help shape the future of e-sports and that it feels it is a step in the right direction.

Fallout Gaming reiterated that it is now working closely with all parties concerned, including GAB and Valve, to resolve the issues and hold Galaxy Battles, which is set to offer a prize pool of $1 million and feature 16 teams from all over the world, on schedule.

As of publication time, no latest updates have been provided by the organizers on the issues and the event but they promise to do so as they come. — Michael Angelo S. Murillo

House seeks creation of ENT Center

THE HOUSE committee on health is set to tackle a proposal by Speaker Pantaleon D. Alvarez to create a medical center that will provide affordable treatment for ear, nose, throat, head and neck (ENTHN) disorders. House Bill (HB) 6720 establishing the Philippine ENT Center (PEC) will be in the agenda of the committee when Congress resumes session next week. Under HB 6720, the number of beds in PEC allocated for indigent patients shall not be less than 40% of the total number of hospital beds. “Respiratory tract infections which include colds, sinusitis, nasopharyngitis, and laryngitis are among the leading causes of morbidity in the country,” Mr. Alvarez said about the timeliness of his measure. Under the bill, the PEC shall be under the supervision of the Department of Health (DoH) and administered by a board of trustees composed of seven members to be appointed by the President of the Philippines upon the health secretary’s recommendation. Among other functions, the board shall enter into agreements or arrangements with other medical institutions in attaining the purpose and objectives of the PEC.

The Internet even slower down South

The government is working to improve information and communication technology (ICT) in Mindanao, but challenges remain.

In its Philippine Economic Update report published in October, the World Bank said Mindanao continues to lag behind Luzon and Visayas in terms of Internet speed.

One main barrier to ICT development in the region is slow Internet speed, compared to Metro Manila and other developed regions, which also remain below the global average.

In Cagayan de Oro, for example, the recorded speed is 2.4 megabits per second (Mbps), compared to 3.6 Mbps in Makati City. In Marawi City, the recorded speed was a very low 141 kbps.

“It appears that Davao users have to pay about 1.5 times more to get the same speed as in Makati, and Marawi users have to pay 26 times more. A dedicated line can cost up to P20,000 per month for each additional 1 mbps of speed, compared to P700 for a residential line with no speed guarantee,” the World Bank added.

FREE WI-FI
To address this, the Department of Information and Communications Technology (DICT) plans to build 250,000 Wi-Fi access points nationwide, before the end of President Rodrigo R. Duterte’s term in 2022. This is in accordance with  Republic Act No. 10929 governing the Free Internet Access Program, signed by Mr. Duterte in August.

DICT Officer-in-Charge and Undersecretary for Special Concerns Eliseo M. Rio previously said people can connect to the Wi-Fi access points without having to link to congested, limited cell sites. Around 67,000 cell sites are needed to meet the country’s Internet connection needs, but there currently only over 20,000.

The government will bid out the subscription to an Internet service provider (ISP). After three years of contracting with the ISP, the access points will then serve as end points of the National Broadband Network, which aims to provide connections to all government offices, down to the local government units.

“Mindanao will get its fair share of access points. Definitely, all barangays by 2022 will be covered. We’ll have all barangays connected to the Internet. All public places, all parks, where people gather like bus stations, piers, airports will have free Wi-Fi access,” Mr. Rio said in an interview.

DICT said it has completed 86 project sites across 16 provinces, all of which are operational as of Nov. 27.

For Mindanao, the DICT will establish access points in an estimated 11,475 public places by 2022. Every municipality will be covered and there will be a minimum of eight sites per municipality.

However, the DICT will only enter areas where the telecommunications players are not present, particularly in the less developed areas in Mindanao.

The World Bank noted there is lack of incentive for telecommunications firms to invest in remote areas given high capital spending required.

PLDT, Inc. in October completed its the P1-billion expansion of the domestic fiber optic network (DFON) in Mindanao, for what the company says provides more reliable connectivity to its home and enterprise customers.

The fiber optic cable link directly connects the provinces of Agusan to Davao, spanning 230 kilometers. The network runs through four provinces in Mindanao — Agusan del Norte, Agusan del Sur, Davao del Norte and Davao del Sur.

In partnership with the local government of General Santos City, PLDT has also established fiber-to-the-home (FTTH) facilities in General Santos, the first “Fibr City” in Mindanao.

For its part, Globe Telecom, Inc. said it has already deployed around 3,000 long-term evolution (LTE) sites in Mindanao, covering almost 60% of the physical sites in the region. — Patrizia Paola C. Marcelo

Mr. Rio said the DICT’s policy is the government will not try to establish itself as the third telco player, given previous failures, but rather, provide services in areas telcos do not serve.

“Where the telcos do not go, we will enter,” Mr. Rio said in an interview.

Mr. Duterte earlier offered China the “privilege” of being the third telecoms operator in the Philippines, in order to break the long-standing duopoly of PLDT Inc. and Globe Telecom, Inc.

Mr. Rio said on Dec. 20 that companies from Japan, South Korea, Australia, China, and the United States are also interested in entering the Philippine market. The Constitution limits foreign ownership in certain industries, including telecommunications, to only 40%.

IT-BPO SKILLS
For information technology — business process outsourcing (IT-BPO), Davao City has emerged as the primary outsourcing destination in Mindanao. It joined Manila, Cebu, Bacolod and Sta. Rosa as on the list of outsourcing destinations in the Tholons Services Globalization Index for 2017.

As the only city in Mindanao, Davao ranked 85th on the list, down from 69th last year.

With slow Internet a hindrance, another setback is the low level of ICT skills among workers in the region.

Citing a study in 2014 done by the IT and Business Process Association of the Philippines (IBPAP) and TeamAsia, the World Bank said in its report that most applicants in Davao were rejected for lack of both soft and technical skills, resulting in a supply gap of 70% in Davao’s ICT sector and 40% in Davao’s BPO industry.

One way the government is trying to address the shortage of ICT skills in the provinces, including Mindanao, is the implementation of the  Rural Impact Sourcing (RIS) Program. The government says this program “is intended to create meaningful ICT-enabled jobs in socio-economically disadvantaged areas in the country.”

The program’s objectives are to: increase the ICT technical skills of the talents in the countryside; increase hiring potential of the people to land a job in the field of ICT; and promote local talent and local businesses; and enhance the ICT technical skills of in-house participants, like DICT personnel and Tech4ED Center Manager as potential trainers.

The program specifically focuses on areas with high population but low employment due to lack of investors, and It also aims to promote ICT-enabled jobs as an economically viable activity in rural communities that are not yet ready to host Information Technology-Business Process Management (IT-BPM) operations.

The training also targets to provide employment opportunities, particularly for micro small medium enterprises (MSMEs).

In the conduct of these trainings, special technology empowerment for economic development (Tech4Ed) Centers will be established and utilized to serve as training centers in selected communities.

The Tech4ED Centers are shared facilities that provide access to ICT-enabled contents and services. These centers also serve as RIS hubs where beneficiaries, after the training, can do jobs online with its free facilities.

The DICT said it has conducted seven RIS Advocacy Workshops, which promote the RIS training, conducted in Tagum City in Davao del Norte, City, Mati City in Davao Oriental, Sindayan in Zamboanga del Norte, Tawi-Tawi Province, Bislig in Surigao del Sur, San Jose in Dinagat Island Province, and Nabunturan in Compostela Valley. Two more are expected to be completed in Digos, Davao del Sur, and Basilan province.

The Tech4Ed centers aimed to provide ICT services for education, employment, and entrepreneurship. “These are small BPOs [business process outsourcing] [centers] spread throughout the country especially in rural areas,” Mr. Rio said.

For Tech4Ed, 588 centers have been established, composed of 19 library partners, 295 school partners, 48 national government agency partners, 29 private partners.

The goal for next year is to establish another 316 centers, 263 of which will be established with equipment donation, while 53 will be hosted by partners; three training centers; and eight Tech4ED-RIS hubs.

OUTLOOK
With the continued rollout of programs by the DICT, particularly in skills training, the outlook for ICT in Mindanao is much brighter.

However, much of the potential remains to be seen, particularly in opening the market, which can deliver more options, healthy competition, and better services, particularly in Mindanao.

Providing cost-effective Internet connection can — just as with the rest of the country — foster economic development in particular in Mindanao.

It remains to be seen whether the Duterte government can maximize the opportunity and bring development in the island where he promised change and prosperity. — Patrizia Paola C. Marcelo

DoE to seek SC guidance on retail competition

THE Department of Energy (DoE) will ask the Supreme Court  (SC) for guidance after the issuance of a new department circular that seeks to restart the stalled rules calling for greater competition in retail electricity sales.

“We are going to petition, make a manifestation before the court that there are two circulars that [Energy Secretary Alfonso G. Cusi] has signed and what will the effect be if it will be rendered moot already on the side of the DoE,” said Energy Undersecretary Felix William B. Fuentebella.

He said the department had been talking to the Office of the Solicitor General on the matter to “clarify” the DoE’s representation before the high court or whether the agency will handle the petition on its own.

However, the Energy Regulatory Commission (ERC) is set to wait it out until the Supreme Court decides whether to lift the temporary restraining order (TRO) on provisions on retail competition and open access (RCOA).

Philippine Electricity Market Corp. (PEMC), the governance arm of the country’s wholesale electricity spot market (WESM), is likely to wait for lifting of the TRO.

Towards the end of last year, the DoE signed a new circular that will reverse contentious provisions of a previous circular as well as resolutions from the ERC requiring contestable customers — or those whose electricity consumption for the past 12 months has reached the thresholds set by the regulator — to move away from being part of the captive market of a distribution utility.

The switch to a licensed retail electricity supplier is meant to allow greater participation from new players, thus spurring competition and lowering power costs. RCOA is called for under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), the law that restructured the power sector, as well as its implementing rules and regulation.

The new circular will also allow the ERC to continue issuing licenses to retail electricity suppliers, which was among the provisions placed on TRO as sought by a number of educational institutions and a business group. The TRO was issued by the high court in February.

ERC Chairperson Agnes T. Devanadera said there is indeed a conflict between the DoE’s two circulars, specifically the mandatory provision in the old rules, which the new one set aside in favor of voluntary compliance.

“It’s a fact that they have issued a circular but the Supreme Court (SC) case is also a fact so do I have a say there? None. SC does),” she said, adding that the subject circular is already with the court.

“So all matters, whether direct or allied matters, we will defer to the SC. We are represented by the solicitor general,” she said.

Francis Saturnino C. Juan, PEMC spokesperson, said the electricity market operator remains uncertain about what is required of it under the new circular.

“While we have already the DoE circular, when we were discussing the circulars, we would need additional guidance and clarifications if we are expected already to implement at least in terms of the customer switching as the CRB (central registration body),” he said.

Mr. Juan said PEMC is dependent on the ERC as far as determining which customers fall under the contestable market.

“Even if we want to implement RCOA, the switching, who will be the contestable customers? We can’t for sure determine that ourselves,” he said. — Victor V. Saulon

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