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Xavier School rules U-15 and U-13 of SMART City Hoops tournament

XAVIER SCHOOL, University of Santo Tomas and San Sebastian dominated the SMART City Hoops Tournament at the West Greenhills Gym.

Ruling the 15-under and 13-under divisions, Xavier School stamped its class in the finals to lead the three teams in wrapping up their respective campaigns on a blaze of glory.

Three players, led by Miguel Tan, finished in double figures for Xavier School, which dumped San Beda College, 77-50, in the 15-under division finals of this event supported by SMART and Chooks To Go.

Tan had 13 points on a steady five-of-11 shooting from the field. Aldrin Darren and Jerico Durante contributed 12 and 10 points, respectively.

Xavier School made it a double kill as it defeated San Sebastian College, 77-66, in the under-13 finale.

Duncan Siao led the way for Xavier School with 21 points, followed by Martin Co with 15. Peeco Napenas contributed 14 and Archie Tan chipped in 12.

UST repulsed Adamson, 55-48, to take the crown in the under-17 category as Kobe Palencia scattered 18 points. Two other Tiger Cubs finished in double figures to provide ample support on eventual Most Valuable Player Palencia–Ryan Relucio and Gary Benzonan, who contributed 10 apiece.

In the 11-under division, San Sebastian College edged Ateneo de Manila, 59-57.

Aside from Palencia, other players who were named MVPs in their respective divisions were Jake Manding (11-under), Duncan Siao (13-under), and Batang Gilas stalwart Miguel Tan (15-under). — Rey Joble

The five top trends at Paris Fashion Week

PARIS — Here’s a look at the five big takeaways from the Paris Fashion Week catwalks.

Frills

The future will be frilly. Sparingly deployed on the diagonal or in a whole flotilla of volant skirts and dresses, frills are back as a major trend for next spring and summer.

Once a symbol of frivolous, even enslaved, femininity, they have been reinterpreted by the likes of Stella McCartney and Clare Waight Keller at Givenchy as symbols of power and confidence.

While they have been creeping back out of the cupboard for a while, frills ruffled through almost every show this past week, from the punky glamor of Alexander McQueen to the slick styling of Giambattista Valli, from edgy Sacai to avant-garde Comme des Garcons.

Black and white

Black and white isn’t so much a trend for next spring and summer as the rule.

Although pastels and strong colors traditionally dominate the spring/summer collections, this year many brands have not looked much beyond the two-tone essentials of black and white.

The list of those who have gone binary is long: sexy Saint Laurent, Givenchy, Off-White, Balmain, Mugler, Lanvin, Isabel Marant, Ann Demeulemeester, Paco Rabanne and Yohji Yamamoto.

Silvery greys are also in, with Nina Ricci, Paco Rabanne and Vanessa Seward using them to great effect.

Big no longer beautiful

Oversize is over, cut down to size by a sharp return to tailoring.

For the last two years the catwalks have been awash with sulking teenagers hiding in their hoodies.

But with the enormous coats and trailing-trousers look now filtering down to the high street, fashion is off again in another direction.

Paris Fashion Week has been remarkable for bringing clothes back to the body, with a much closer cut to shake off the studied shapelessness of the last few seasons.

With Rick Owens, the Los Angeles maverick who took oversize to extremes, cutting his cloth much tighter, only Celine held to thinking big.

Even Virgil Abloh, the en vogue American designer at Off-White so beloved by rap stars, has embraced the well-cut power suit, sending out Naomi Campbell in a double-breasted white jacket with cycling shorts.

Cycle shorts and polo shirts

Cycling shorts are another mini-trend, with Saint Laurent, Chloe and Y/Project joining the peloton of houses highlighting a look apparently pioneered by Kim Kardashian.

With Lacoste quitting New York for the Paris catwalk, there is no holding sportswear’s onward march. Louis Vuitton sent out almost all of its 46 looks in trainers, and matched silk sports shorts with highly embroidered 18th century-style tailcoats.

But when the smart French label Koche sent out a series of re-imagined Paris Saint-Germain tops, it seemed like fashion had finally surrendered to the football shirt-wearing masses.

Despite the pearls and the exquisite detailing, there was still something of a sharp intake of breath — was a style Rubicon being crossed here?

Christelle Kocher, the Koche designer who also heads up Lemarie, which specializes in feathers and other haute couture fripperies, managed to stay just about onside by successfully feminizing a garment with such a pungent whiff of maleness.

Yet it was another item from the male locker that really got designers’ juices going, as Lacoste turned its emblematic polo shirts into trailing and asymmetric dresses, with the neck pulled over to play up a bare shoulder.

Reworked polos popped up too at highly influential Celine, Atlein, Carven and Y/Project where Glenn Martens also pulled Bermuda shorts way upmarket.

Scintillating prints

Summer wouldn’t be summer without print dresses and skirts. This year, however, they are particularly easy on the eye.

One expects nothing less than the sublime from the prince of prints Dries Van Noten, and the Flemish master did not disappoint. But Akris, the biggest Swiss brand you’ve never heard of, won still more hearts with theirs.

The five top trends at Paris Fashion Week
Chanel bags had their own raincoats as did the models. — PHOTOS FROM AFP

But it was Liselore Frowijn’s futuristic visions of African wax prints, Junya Watanabe’s punky take on Marimekko textiles and Comme des Garcons’ Arcimboldo dress which printed themselves on the memory.

And finally…

Among the ingenious oddities of the week were Balenciaga and Chanel’s handbag overcoats, little poncho parachutes to protect purses that can cost the price of a secondhand car.

Both brands also attempted the seemingly impossible, trying to make Crocs sandals (Balenciaga) and plastic see-through macs (Chanel) objects of desire. History will decide. — AFP

Gov’t will tighten belt, borrow more if tax reform revenue dips

LOWER-THAN-EXPECTED revenue from approved tax reform legislation will force the government to raise its fiscal deficit as well as trim the budgets of projects deemed to be lower-priority, Budget Secretary Benjamin E. Diokno said.

Mr. Diokno added that the government intends to fund the bigger deficit 50-50 from increased debt and from budget cuts, should revenue it was counting on from the Tax Reform for Acceleration and Inclusion (TRAIN) program be diluted.

“For example, the gap is P50 billion, I will increase the deficit by another P25 billion, and then the other P25 billion I will cut from lower-priority spending items,” he told reporters on Friday.

Latest preliminary estimates from the Finance department show that Senate Bill No. 1592 would yield P59.9 billion in the first year of implementation, against the P133.8 billion to be raised under House Bill No. 2636, which is programmed in the P3.767 trillion 2018 budget.

In the 2018 budget, the government expects a P523.6 billion budget deficit.

Despite this, Mr. Diokno said that the medium-term fiscal program should remain intact, as long as the total tax take in the next five years is as expected.

“I think you should look at it in the period of five years’ time. So for example the fuel tax, that has been staggered… knowing that year two, (any dilution) may be recovered,” Mr. Diokno said, referring to the various versions of the P6 per liter increase in petroleum taxes.

This approach means many projects can still go forward.

“In the past, our policy was to release funds slowly because they have not yet been collected. Which is why we have many unfinished projects. Now, as long as it’s in the budget, you can finish that project. It’s more important that you complete the project rather than leave things hanging,” Mr. Diokno added.

Still, Mr. Diokno said that he is confident that the eventual TRAIN legislation will provide revenue consistent with the government’s plan.

Finance Secretary Carlos G. Dominguez III added: “We have every confidence that the legislature will come up with revenue that will be sufficient to fund all the various projects of the president including both the social side, the educational side and the infrastructure,” he told reporters on Thursday.

Mr. Dominguez noted that he expects the bicameral conference committee to convene by mid-November, and hopes for tax measures close to what it originally planned for.

TRAIN features a reduction in personal income taxes, lower estate and donor taxes, the removal of value-added tax exemptions, increased petroleum and automobile excise taxes, a new tax on sugar-sweetened beverages, and some tax administration measures.

The Senate version has meanwhile introduced new taxes to compensate for its lower revenue outcome, such as a tax on cosmetic surgery, higher levies on coal, foreign currency deposits, dividends, and capital gains tax on securities not traded on the stock market. — Elijah Joseph C. Tubayan

PHL trade with North Korea for ‘humanitarian reasons’

THE Department of Trade and Industry (DTI) said the Philippines will not be subject to United Nations (UN) sanctions because private Philippine companies trade with North Korea, noting that the trade is humanitarian in nature.

Trade Secretary Ramon M. Lopez told reporters that the government is compliant with UN policy, which allows trading for humanitarian reasons with North Korea, allaying fears of US cutting trade ties with the Philippines.

The Philippines, North Korea’s fifth-largest trade partner, exports bananas, women’s undergarments and integrated circuit boards, according to a 2015 DTI data. Philippine imports totaled $53.2 million in that same year, according to the Massachusetts Institute of Technology’s Observatory of Economic Complexity.

“We reviewed the (US) executive order on North Korea. If you read the executive order, it was talking about the individuals and the institution and companies. In fact, most financial constitutions. So, for us, as long as we followed the UN policy of trading only allowed products so those are the things we will have monitored for the trade accreditation and approval system before any company can trade with North Korea. But we were told it’s not a total ban yet since UN allows [trade] for humanitarian reasons. I think we can continue,” Mr. Lopez added.

In August, the UN Security Council unanimously adopted Resolution 2371, which lays out the sanctions on North Korean exports of coal, iron and iron ore, seafood, lead and lead ore.

The resolution also prohibits joint ventures with North Korea, and denies its vessels access to international ports.

In an interview with Al Jazeera, Foreign Secretary Alan Peter S. Cayetano said that he has spoken with Mr. Lopez about halting Philippine trade with North Korea.

US President Donald J. Trump signed last month an executive order which will sanction “individuals and companies” that continue to trade with North Korea in an effort to cut off the country’s sources of funding for its missile program.

Mr. Trump tweeted earlier that month that “the United States is considering, in addition to other options, stopping all trade with any country doing business with North Korea.” — Anna Gabriela A. Mogato

Atsui: proudly Philippine-made

WITH THE healthy and active lifestyle scene in the country ever growing, a local performance and athleisure brand is daring to throw its name in the mix with stylish and quality activewear that is proudly Philippine-made.

Atsui, officially started in 2014, is stepping up its brand play of not only providing comfortable apparel for all kinds of movement activities, but also underscoring that locally made can also be world-class.

Late last month, Atsui brought some of its VIP partners and members of the media to its interactive pop-up showroom at the Raffles Residences Lounge in Makati City where it showcased a wide-range of high-performance and athleisure pieces for various activities like Pilates, yoga, running, and Crossfit, including its 2017 Pre-Holiday collection. It also shared its vision as a brand moving forward.

“There is a common misconception here that when you say ‘local brand’ it is not of good quality. We want to debunk that and show that we are world-class,” said Homer Silvestre, cofounder and designer for Atsui, in an interview with BusinessWorld.

“We in Atsui know we can make globally competitive products. We believe the Filipino sewers are skilled and world-class. The materials are available here. Atsui is Philippine-made save for the technical fabrics which we source abroad. The challenge now is whether Filipinos can accept a Filipino brand,” said Mr. Silvestre, who cofounded Atsui with his wife Leslie, who is a Pilates instructor apart from being an entrepreneur.

The Atsui official said that the response to their products since setting up shop, despite being available largely online, has been positive, a result, Mr. Silvestre underscored, of making a conscious effort to stay true to three key considerations, namely, quality, fair pricing, and variety.

“Number one is the quality. We are really centering on it. As manufacturers even before Atsui came up, we really took pride in that. We rather not ship products if it they are not of high standard and bad quality because it would U-turn on you in the end,” said Mr. Silvestre of Atsui products, which are made in a factory in Baras, Rizal, by mostly locals in the area.

“After quality, it is pricing. When we were planning [to set] up Atsui we saw that there are quality activewear in the market but are very limited and often too expensive. So we were mindful of pricing our products fairly,” said Mr. Silvestre.

“If we price our items near that of popular brands the tendency is for people to buy those products instead of gravitating towards us,” he added.

Atsui: proudly Philippine-made

“Then there is variety. We always try to come out with new collections that people can choose from and to stay fresh not only in designs but also in the technology employed,” said Mr. Silvestre, adding that recently they introduced airemov — a specially woven four-way stretch and moisture-wicking fabric with increased elastane that allows each piece to move as the wearer does.

2017 PRE-HOLIDAY COLLECTION
For Atsui’s 2017 Pre-Holiday Collection, the inspiration comes from the different and changing circumstances around the great rivers in Asia.

Under the “Rivers” collection are the “Huangpu,” “Sumida,” and “Cheonggyecheon” lines.

Huangpu is inspired by the river that bisects Shanghai that highlights the two faces of the city, Puxi with its historical architectures and Pudong which is lined with modern skyscrapers.

Sumida, meanwhile, is inspired by the river in Tokyo and juxtaposes the Japanese reverence of nature with Sakura tree-lined banks against the electric energy of the big city.

And Cheonggyecheon takes cue from the progress of the Korean mega city of Seoul, where the Cheonggyecheon River is found, and features patterns that hint of technology, reworked urban camouflage, and topological maps.

In the three years since Atsui started, Mr. Silvestre said they are happy with how far it has come and the prospects for it moving on.

“There are revolutionary brands and there others who have evolved and I believe that Atsui is a brand that evolves. We want to continue improving and developing and we want to make people aware that there is a Filipino activewear brand that they can be can be proud of for its good quality,” Mr. Silvestre said.

To check out Atsui’s products, visit Atsui.ph while select pieces are also available in activity centers such as Yoga+ Express, Bikram Yoga Makati and Cebu, Bliss Yoga, and Yoga Hub Cebu. It is also present in Facebook and Instagram. — Michael Angelo S. Murillo

Mordido grabs Shell chess finals lead

KYLEN JOY MORDIDO dished out top form and upended three male rivals, posting 6.5 points to wrest the lead in juniors division even as David Rey Ancheta took control of the kiddies play after seven rounds of the Shell National Youth Active Chess Championship grand finals at the MOA Music Hall in Pasay last Saturday.

Mordido, a Woman Candidate Master, trampled Irish Yngayo and Cyril Telesforo, held top seed Rome Pangilinan to a draw in the third round then racked up four straight wins, including an upset over no. 3 James Erese.

The fourth-ranked Dasmariñas National HS mainstay also toppled no. 5 Julius Gonzales then outplayed Mary Joy Tan and Francois Magpily to seize the lead in the 13-16 age group of the grand 25th and final staging of the annual event sponsored by Pilipinas Shell.

But Pangilinan kept Mordido within sight with six points while Gonzales also stayed in the title hunt with 5.5 points heading to the final two rounds left in the 9-round Swiss system tournament sanctioned by the National Chess Federation of the Philippines.

The rest bowed out of contention with Erese, Tan, Telesforo, Magpily, Daniel Quizon and Carl Ancheta scoring just 3.5 points after seven rounds of play.

Ancheta, meanwhile, nailed five wins and drew twice to lead the 7-12 category with six points, half-a-point ahead of Mark Jay Bacojo while Michael Concio, Jr. remained in title chase with five points.

Ancheta, the Cagayan de Oro leg topnotcher from Corpus Christi School, trounced Joseph dela Rama in the opener, halved the point with Rhea Canino, downed Chester Reyes and Mark Bacojo, split the point with Concio before beating Wesley Magbanua and Cedric Abris.

Reyes and Cyrus Francisco, meanwhile, pooled 4.5 points for joint fourth in the two-day tournament that features the top finishers of the five regional elims of the country’s longest talent search that produced the likes of GMs Wesley So, Mark Paragua and Nelson Mariano II, among others.

Jeth Romy Morado and Ahmad Ali Azote, on the other hand, forged ahead in the seniors division with six points with Jethro Esplanada churning out a five-point effort and Darry Bernardo, Emmanuel Acierto, Jonathan Jota, Allan Pason and Romulo Curioso all scoring four points.

Morado, a runner-up in the NCR leg from Far Eastern U, upended Pason, lost to Esplanada, but struck back with victories over Andre Jorgio, Acierto, Azote, Darry Bernardo and Venice Vicente, while Azote, the CDO leg champion in the 17-20 class from Agusan National HS, crushed Dhona Yngayo, Jota, Acierto and Esplanada, and rebounded from a fifth round setback to Morado with victories over Gino Asuncion and Bernardo.

Meanwhile, after the Grand Finals, Pilipinas Shell will also hold a Chess Masters’ Friendly match featuring GMs and titled players who have competed in past Shell Active Chess tournaments.

Business model, disrupted

If the Philippines were a company, its business model would be facing disruption.

Its business model, if you will, rests on OFW remittances and BPO revenues, i.e. on exporting labor and services. That translates to growth in consumption from the expenditure side, and services from the sectoral contribution side.

However, like most companies nowadays, its business model may possibly be under threat primarily due to technological disruption.

Let’s take OFW remittances. A significant contributor to OFW remittances is remittances of OFWs in the Middle East. (Those figures showing the USA being the biggest contributor to OFW remittances misstate the true situation, since remittances from Middle East countries are routed through US money center banks and counted as US remittances.)

The technological threat to OFW remittances from the Middle East is the coming shift toward electric cars and self-driving autonomous vehicles. General Motors plans to introduce an all-electric new car model lineup by 2023. Furthermore, an analyst predicts that by the year 2021, autonomous cars will be launched. By 2025, oil use will reach its peak. By 2030, gasoline use for cars will fall to zero.

According to him, simple economics explain the inevitable shift toward electric vehicles and autonomous cars. There are more than 2,000 parts in an internal combustion engine, compared to only 20 for an electric vehicle. With fewer parts, EVs are more durable, cheaper to maintain, with no oil to change, no catalytic converter, no ignition coil. An average internal combustion engine lasts only 150,000 miles vs. 500,000 miles for electric vehicles.

In addition, batteries are getting cheaper. Hence, Elon Musk was able to launch Tesla 3, a mid-sized sedan, at about $35,000. For the first time in the history of the car industry, buyers have been making deposits way in advance. Elon Musk’s problem is not in selling cars, but how to produce them fast enough.

In addition to technological forces, there’s regulatory pressure to lessen carbon emissions and phase out polluting internal combustion engines. Governments are forcing carmakers to meet stringent emission standards that can only be met by electric vehicles.

In sum, Big Oil will become Small Oil. Oil will still have some uses, such as for asphalt or to produce plastics and fertilizer, but it’s no longer going to fuel transportation.

If that is so, the economies of the oil-dependent countries in the Middle East, already disrupted by shale oil and fracturing, will collapse, unless they can diversify quickly enough. This will be bad news for OFWs who work in the Middle East. In Saudi Arabia alone, there are more than a million Filipinos.

As if this scenario isn’t scary enough, the other pillar of the Philippine economy — the BPO industry, which generates $25 billion in revenue and employs one million Filipinos — is facing headwinds short-term, medium-term, and long-term.

Short-term, the declaration of martial law in Mindanao, the perception that the Philippine government encourages extrajudicial killings, and the anti-Western rhetoric have scared investors in the BPO sector. Short-term and medium-term, the growing scarcity of qualified personnel due to the poor state of education in the country, is crimping the ability of BPO companies to expand. Short-term to long-term, the specter of Artificial Intelligence and associated technologies is a challenge to the industry.

I talked to one BPO executive and he said that AI (Artificial Intelligence) isn’t coming, it’s already here, at least in the form of AI-assisted software. While AI-assisted software will not replace a call center agent, it will enable him to handle more calls. With AI-assisted software, what once used to require six agents, can now be handled by one. Therefore, the requirements for warm bodies will be less. Now, imagine if full AI, which is getter better at human tasks of cognitive intelligence, are fully deployed.

Staying in the base of the value chain isn’t an option. The BPO industry has to level up, or else lose its position as the biggest contributor of foreign exchange.

With the current account now in deficit, any slowdown in the growth of remittances and BPO earnings will scare the markets, aside from putting into question the sustainability of Philippine economic growth.

What should we do? Here are a few ideas.

First, we have to attract investments, both domestic and foreign, by a significant order of magnitude. We would need to significantly increase investments to increase employment and absorb the displacement of our workers, especially in the Middle East.

The administration is correct in trying to remove the legal and regulatory barriers to foreign investment. Socioeconomic Planning Secretary Ernesto Pernia has declared that the government is trimming down the foreign investment negative list. It will also seek Constitutional amendments to remove all foreign ownership restrictions except in the ownership of land.

Furthermore, The Public Service Act Amendment should be passed soon. The bill seeks to provide an updated statutory definition of the term “public utilities,” so that only electrical distribution, electrical transmission, water distribution, and sewerage will fall under the Constitutional restriction of foreign investment in public utilities. Thus, telecommunications and transportation will no longer be considered as public utilities and 100% foreign investment will be allowed in those sectors.

If passed into law, the PSA Act will have huge, multiple benefits to the economy. Not only will much needed foreign investments flow into those sectors, it will also solve the problem of poor public services, from telecommunications to transport, which have degraded our competitiveness and deterred investments in other sectors of the economy.

Second, we need to diversify our economy, particularly toward agriculture and industry. Again, the secret is to make the investment climate favorable to investing in agriculture and industry. In agriculture, the key reform is to free the land market, from those restrictions on agricultural land imposed by the Comprehensive Agrarian Reform Law and the Commonwealth-era Public Land Act.

In industry, the key is removing the rigidities in our labor law, from the six month security of tenure provisions to the minimum wage rule. In fact, the recent labor regulations against “endo” (End of contract or contractual employment) haven’t really ended “endo” but have just added regulatory costs to small and medium-sized businesses. Also, the rise of the “gig economy” or jobs on demand, such as driving for Uber, underscores the need for labor rule flexibility.

We need to provide millions of jobs, not only for OFWs displaced in the Middle East, but also for our millions of currently unemployed and underemployed youth. We have to encourage labor-intensive industries, the kinds that have left for Cambodia and Vietnam, such as garments and light manufacturing, by removing those rigidities.

Third, we need to invest more in education and make education reforms big time. Our education is in a sorry state. We are churning out college graduates who can’t write, can’t analyze, can’t adapt to a fast-learning environment, and can’t speak well either in Filipino or English. This is why the BPO industry is constrained from growing.

However, it’s not just college-educated labor that must adjust. Even factory machines need more computer and numeracy skills to operate.

We just have to invest more in education, primarily in primary and secondary school education, because the quality of primary and secondary graduates feed into the quality of college-level students.

Fourth but by no means the last, we need government to change its approach. The forces of technological change are moving too fast for government to cope with. Government is just too slow, too political, and too bureaucratic to adjust quickly to the disruptive changes going on. It should really be relying more on the private sector to respond to these changes.

For example, instead of financing SUCs (State Universities and Colleges), it should have given scholarships targeted to poor students, who can choose to go to private colleges and universities. Private colleges can adjust their curriculum and training faster and better in response to market demands. Not so with SUCs.

For another example, instead of government doing infrastructure, it should rely on Public Private Partnership (PPP). Government rules are just too rigid, from purchasing to firing people, to quickly do infrastructure projects. The name of the game in this era of technological disruptions is quick and efficient, which government is not.

Moreover, instead of government imposing more and more regulations on agriculture and industry, from prohibiting ownership of agricultural land beyond five hectares to specifying what is “core business” not subject to outsourcing and contractual employment, it should be more liberal and apply a lighter regulatory touch. The fact is that technological progress is moving so fast as to leave regulations behind. This is what is happening to the rise of Uber and other TNVSs, which aren’t covered by the Public Service Act, written in 1936.

Business model disruptions can be deadly. Witness Kodak. Witness Nokia. While a country is not a company, the similarity to existential threats isn’t far behind. Yes, to paraphrase President Duterte, technological “change is coming.” We better be damned prepared.

 

Calixto V. Chikiamco is a board director of the Institute for Development and Econometric Analysis.

idea.introspectiv@gmail.com

www.idea.org.ph

PHL to start extradition process for New York terror plotter

A FILIPINO suspect in a thwarted jihadist plot targeting New York’s subway and Times Square will face legal proceedings seeking his extradition to the US, the Philippine justice secretary said on Sunday.

Russell Salic and two others have been charged with involvement in the plan to carry out the attacks in the name of the Islamic State (IS) group during the Muslim holy month of Ramadan in 2016.

Mr. Salic was arrested in the Philippines in April 2017 and the US had requested his extradition, the US Department of Justice said.

“It only means that we have to begin the extradition proceedings being requested,” Philippine Justice Secretary Vitaliano N. Aguirre II said in a statement without giving a time frame.

“We have a process to be followed and this has been done many times in the past.”

Mr. Aguirre said Mr. Salic was also under investigation over a local case but was unable to give details.

The Philippine military chief, General Eduardo M. Año, said on Sunday that Mr. Salic was in the custody of the country’s National Bureau of Investigation.

Mr. Salic, a 37-year-old Filipino doctor, transferred $423 in May 2016 to the other suspects for the operation, according to US court documents released on Friday.

Multiple locations including New York’s subway, Times Square and some concert venues were identified as targets in the plot that was foiled by an undercover agent of the Federal Bureau of Investigation, US authorities announced Friday.

The agent posed as an IS supporter and communicated with Mr. Salic and his two alleged accomplices: Abdulrahman El Bahnasawy, a 19-year-old Canadian who purchased bombmaking materials, and Talha Haroon, a 19-year-old American citizen living in Pakistan.

A complaint signed by the agent quoted messages sent by Mr. Salic to others involved in the plot in which he described terror laws in the Philippines as “not strict” in comparison to countries such as Australia and the UK.

Mr. Salic was an orthopaedic surgeon associated with a hospital in the southern Philippine city of Cagayan de Oro, the complaint said.

The restive south of the mainly Catholic Philippines is home to a decades-old Muslim separatist insurgency and to extremist gangs that have declared allegiance to IS.

On Sunday the Philippine military chief said Mr. Salic sent funds to other nations for the “IS terrorist network.”

“He is providing financial support to several extremists or suspicious terrorists in the Middle East, in the US, Malaysia,” Mr. Año told reporters.

“He was very active on social media, Web sites that groups related to ISIS have been using,” Mr. Año said, using another name for IS.

Mr. Año said Mr. Salic was not related to former Marawi mayor Fahad Salic, who was arrested in June on charges of rebellion in another part of the southern Philippines.

Armed militants flying the black IS flag have been besieging the southern city of Marawi since May, leaving more than 950 people dead.

The fighting, which is still raging despite artillery and air strikes and US military assistance, has left the once-thriving city in ruins with thousands of civilians displaced. — AFP

Vegas shooter leaves note but police still puzzled

WASHINGTON — A note discovered in the hotel room of Las Vegas shooter Stephen Paddock featured hand-written calculations on where he needed to aim to increase his accuracy and number of kills, US network CBS reported Saturday.

The piece of paper was found by police officers who stormed Paddock’s room after he launched his attack from the 32nd floor of the Mandalay Bay hotel Sunday night — killing 58 people and injuring nearly 500.

In an interview set to air on Sunday, Officer David Newton of the Las Vegas Police Department’s K-9 unit, told CBS’ 60 Minutes he noticed Paddock’s note “on the nightstand near his shooting platform.”

“I could see on it he had written the distance, the elevation he was on, the drop of what his bullet was going to be for the crowd. So he had had that written down and figured out so he would know where to shoot to hit his targets from there,” he said.

Mr. Newton added that forcing entry into the room with an explosive before finding Paddock’s body and an arsenal of weapons was like something “out of a movie.”

It was “very eerie,” he said.

Paddock’s hotel suite gave him an ideal perch from which to carry out his attack on a crowd of more than 20,000 people attending a country music concert across the street, some 400 yards (365 meters) away.

The note has not shed any light on the gunman’s motives, which authorities are yet to uncover nearly a week after the deadliest mass shooting in recent US history.

“We still do not have a clear motive or reason why,” Undersheriff Kevin McMahill of the Las Vegas Metropolitan Police Department told reporters Friday, adding that law enforcement was continuing to search for answers with “great tenacity.”

Mr. McMahill said investigators had uncovered “no nexus” between Islamic State and Paddock, even though the militant group had repeatedly claimed responsibility for the attack.

PENCE OFFERS SOLACE
US Vice-President Mike Pence visited Las Vegas on Saturday stressing unity and offering solace as police appealed to the public for help in uncovering a wealthy retiree’s motive for massacring 58 people at an outdoor concert this week.

“We are united in our grief, in our support for those who have suffered and united in our resolve to end such evil in our time,” Mr. Pence said, joining Las Vegas Mayor Carolyn Goodman and other local leaders at a City Hall commemoration for victims of the shooting.

Participants trod seven miles (11 km) along four separate paths to the event amid tight security. President Donald J. Trump paid a visit to Las Vegas earlier in the week.

Las Vegas’ Democratic Congresswoman Dina Titus was the only speaker who touched on the subject of gun violence and politics, saying, “Let us also pray for those who have power that they will have the wisdom, the courage, and the resolve to find ways to end the gun violence that plagues our nation.”

FBI APPEALS TO PUBLIC
In an unusual bid to cast a wider net for tips, the FBI and police have arranged with communications company Clear Channel to post billboards around Las Vegas urging citizens to come forward with any information that might help investigators.

The billboards will bear the slogan, “If you know something, say something,” and carry a toll-free number to an FBI hotline, said Aaron Rouse, special agent in charge of the Las Vegas FBI office.

Unlike so many other perpetrators of deadly mass shootings before him, Paddock left behind no suicide note, no manifesto, no recordings and no messages on social media pointing to his intent, according to police.

Mr. McMahill said investigators remained certain Paddock acted alone in the shooting. But police have said they suspect he had help before the killings, based on the large number of guns, ammunition and explosives found in the hotel suite, his home, his car and a second home searched in Reno.

Authorities have said that 12 of the weapons recovered from Paddock’s hotel suite were equipped with so-called bump-stock devices that enable semi-automatic rifles to be operated as if they were fully automatic machine-guns.

Paddock’s ability to fire hundreds of rounds per minute over the course of his 10-minute shooting spree was a major factor in the high casualty count, police said.

The bloodshed might have lasted longer, with greater loss of life, but for a hotel security officer who was sent to check an open-door alarm on the 32nd floor, and discovered the gunman’s whereabouts after the shooting started, Mr. McMahill said.

The security officer, Jesus Campos, was struck in the leg as the gunman strafed the hallway with gunfire from behind his door, apparently having detected Mr. Campos via surveillance cameras Paddock set up outside his hotel suite.

Mr. Campos, though wounded, alerted the hotel’s dispatch, “which was absolutely critical to us knowing the location as well as advising the responding officers as they arrived on that 32nd floor,” Mr. McMahill said. “He’s an absolute hero.”

In a new disclosure, authorities said two bullets Paddock fired struck a large jet fuel storage tank at the edge of the city’s main airport, about a block from the concert grounds, indicating an apparent attempt by the gunman to create even greater havoc.

There was no explosion or fire from the two rounds, one of which penetrated the tank, as jet fuel in storage is almost impossible to ignite with gunshots, airport officials said on Friday. — AFP and Reuters

Planters to pursue bid for banana council E.O.

DAVAO CITY — They failed last year, but banana industry stakeholders are not conceding and will again ask President Rodrigo R. Duterte to sign an executive order (EO) creating a council for the sector.

As in 2016, the proposal will be presented during the annual Banana Congress on Oct. 12-13 in Davao City, Mr. Duterte’s hometown.

Domingo O. Ang, Davao Region chair of the Philippine Export Confederation, Inc. (PhilExport), said in an interview that a council “is very important as it will provide key steps in solving problems hounding the industry,” which produces the country’s second biggest agricultural export commodity.

Mr. Duterte has acknowledged the need for a government agency that will focus on the sector. But just as hopes were high that he would sign the order during last year’s Banana Congress, he announced right at the event that it would be better to have legislation establishing the council.

“It should be a law. It cannot be an EO because if you need something like money or otherwise and government has to intervene the body has to have the kind legal standing (offered by) a law,” Mr. Duterte said last year.

However, Mr. Ang said lawmakers have largely been ignoring lobbying efforts for the council’s creation.

“Relying on congressional action will be a very long process… It would be better if the President issues an executive order for it,” he said.

The proposed EO was jointly put together by industry associations, the Department of Trade and Industry (DTI), and the Department of Agriculture. The plan is to have an EO in place, then push for institutionalization through legislation.

SECURITY
At the top of the list of concerns that the industry wants a government-led council to help address is security, particularly putting an end to the extortion and other violent activities by communist guerrillas.

In late April members of the New People’s Army (NPA) simultaneously burned two farms and a packaging facility of major exporter Lapanday Foods Corp. (LFC). More recently, the company has accused the NPA of killing one of its security personnel.

“This latest incident showed that the NPA has continued with its criminal acts that have resulted in many fatalities, injuries, and property damage,” LFC said in a Sept. 29 statement.

LFC is a member of the Philippine Banana Growers and Exporters Association, Inc. (PBGEA), which serves as the institutional support arm of some of the biggest players in the banana industry.

But it is not just the big exporters and multinationals who are targeted by the NPA.

“These groups (NPA) are making the existence of banana growers, even the small ones, very hard,” said Irene D. Dalayon, chief executive officer of the Federation of Cooperatives in Mindanao and a member of the Mindanao Banana Farmers and Exporters Association (MBFEA), the organization of small to medium-sized cavendish banana exporters.

“We want an assurance from the government that we will be protected from the extortion activities,” said Mr. Dalayon.

Defense Secretary Delfin N. Lorenzana is expected to attend this week’s congress.

Another PhilExport-Davao official, Executive Director Marizon S. Loreto, said with recent developments, such as the diminishing chance of a revival of the peace talks between government and the communists, big investors are putting expansion plans on hold, or even considering pulling out.

“Their representatives in a way conveyed the message that they are finding this problem on peace and order as a reason, not (exactly) to move out from this place, but holding on to whatever plans they have of possible expansion simply because they are looking at a possible occurrence again of disturbances,” she said.

R&D
Ms. Loreto, who used to be DTI-Davao head, said the proposed banana council is also seen as a conduit for bringing in government assistance in research and development (R&D).

The major players, she said, have been putting in money for R&D to address pest infestation, developing resistant varieties, among other concerns, but the industry as a whole would benefit from government initiatives.

“If you look at the (banana) export commodity of the region and Mindanao, (it’s) cavendish,” she said, but other varieties such as cardava (saba) also need attention.

“Our stakeholders do realize that our banana business is not just about cavendish but other varieties as well,” Ms. Loreto said.

The urgency of establishing a banana-focused council is also brought on by growing market competition with such Asian countries as Cambodia, Myanmar, and Indonesia starting to come into the picture, apart from the established players in Latin America.

Banana exports were valued at P29.6 billion in 2016, based on Philippine Statistics Authority data. This is lower than the previous year’s P30.4 billion, which was an even bigger drop from P51 billion in 2014.

More smallholders could play a role in keeping the Philippines as a major banana producer, but Ms. Loreto said there are not enough government interventions for this.

“Because if you look at the agrarian reform law, they’re saying that they just have to give back lands to the farmers, but as to the capability of the farmers to practically manage their farms, that’s also another area of concern.” — Carmelito Q. Francisco and Maya M. Padillo

Build-build-build is possible without new taxes

Among the biggest alibis given by Dutertenomics as to why we need new or higher taxes is the fact that the government needs more money to bankroll “build-build-build” hybrid PPP (public private partnerships) plans. Then warnings were issued by both government and its nongovernment allies that “no new taxes, no build-build-build.” For me, this is blackmail and should not easily be accepted by the public. Here are my three reasons.

One, there have been many past PPP projects in operation and current PPP projects under construction that did not necessitate large-scale new taxes or tax hikes (see table).

Build-build-build is possible without new taxes

Two, an integrated PPP (construction then operation and maintenance (O&M) under one private entity or consortium) will accomplish the task at little financial exposure and burden for the government and taxpayers. And there would be no or little need for many of these taxes. But Dutertenomics is inclined to favor hybrid PPP (construction is government via foreign loans/ODA and/or annual budget/GAA, O&M is private) for some unholy reasons like implicitly favoring China loans, China contractors, and banks. Or using administration cronies as contractors in exchange for big favors.

Compare the motive of an administration with only six years in office (only 4+ years in the case of the current regime) vs. big local companies which have been around for the past 30, 50, or 100+ years and intend to be here for the next 50, 100+ years. The former has the tendency to amass wealth quick and worry about political scandals later. The latter would try to avoid political and business scandals as they have corporate brands to protect and will bank on those brands for many decades to come here and abroad.

Three, more integrated PPP portfolio for big local firms and consortia means wider experience and more confidence in the field, bigger business opportunities to join PPP projects in our neighbors in the ASEAN and beyond. Philippine-based construction and infrastructure consortia will soon become big multinationals and players in the region and the world.

Reducing the country’s personal income tax (PIT) rate should be a social goal and a public service in itself. Earning P500,000 (little less than $10,000) or higher per year and be slapped with 32% income tax is very confiscatory and immediately qualifies the government as creator of poverty. This has been going on for many years now and should be changed asap — without raising or creating new taxes somewhere.

In Singapore, the 22% top PIT applies only for incomes of $240,000/year or higher. In Malaysia, the 28% top PIT also applies for incomes of $240,000/year or higher. The Philippines should have top PIT of 28% or lower and apply at $100,000 or higher.

Nonetheless, Dutertenomics’ TRAIN will be passed very soon because (1) Congress and Malacañang act like one-party state with no serious significant opposition or fiscalizer, and (2) dishonesty and even some blackmail were effectively used to make the public accept tax hikes. In short, coercion and deception were put to use.

After the current package of TRAIN, there will be TRAIN 2 to be introduced next year. The current administration will have been emboldened enough to create new taxes or raise existing ones anytime it wants to because Congress coercion and public deception are going well.

A government that intervenes the least, that taxes the least, is conducive to more growth, more job creation, more production of goods and services, and less inflation, less state dependence. We will hardly see that under the current administration.

 

Bienvenido S. Oplas, Jr. is the President of Minimal Government Thinkers and an ADRi Fellow.

minimalgovernment@gmail.com

Interisland shipping still robust despite low-cost airlines, says local operator

CEBU-BASED Cokaliong Shipping Lines, Inc. is seeing continued demand for both passenger and cargo services in the Visayas and Mindanao regions despite the continued expansion of domestic routes by airlines. “I think the demand for shipping in Visayas and Mindanao remains robust. The market is still here,” Chester Cokaliong, company chief executive and operating officer, said during last week’s 26th Visayas Area Business Conference held in Cebu City. Mr. Cokaliong said sea travel remains the cheapest mode of transportation despite the frequent promo air fares offered by local airlines. He said he remains on the lookout for expansion opportunities, particularly within and between the central and southern islands. Cokaliong Shipping currently has a fleet of 12 vessels serving 15 ports, namely: Masbate in the Bicol Region; Visayas — Calbayog, Cebu, Dumaguete, Iloilo, Jagna and Tagbilaran in Bohol, Maasin, and Palompon; Mindanao — Cagayan de Oro, Dapitan, Iligan, Nasipit, Ozamiz, and Surigao. — The Freeman