Araw ng Kagitingan: Celebrating veterans and valor

April 9, 2018 | 9:01 pm

“We owe it to our forefathers to demonstrate the same courage and valor that sustained their gallant stand more than seven decades ago.”
—President Rodrigo R. Duterte, Day of Valor message, April 9, 2018

Free LRT-2 rides until April 11

Veterans with valid ID from the Philippine Veterans Affairs Office get a free ride on the Light Rail Transit Line 2 (LRT-2) until April 11. LRT-2 runs from Recto in Manila to Santolan along Marcos Highway in Marikina.

PAUL ROSAROSO VIA @JEANDEMECILLOTF/THE FREEMAN

Oldest Cebuano veteran

Certific Ruperto Mayoga, the oldest veteran from Cebu at 99, receives a special award from Cebu City Mayor Tomas R. Osmeña.

Honoring veterans

A veteran shakes hands with Davao City Mayor Sara Duterte-Carpio during Monday’s commemoration of the 76^thAraw ng Kagitingan at the Dambana ng mga Bayani, Freedom Park.

Taxpayer’s checklist for boarding the TRAIN

April 9, 2018 | 9:01 pm

The much-awaited promise to the Filipino taxpayers and one of the government’s crown jewels, the Tax Reform for Acceleration and Inclusion (TRAIN), took effect on Jan. 1. For some, the TRAIN law is an answered prayer, 20 years in the making, to the plight of taxpayers against the seemingly disproportionate favor accorded by the previous tax law (Tax Code of 1997) to those who are called the “ultra rich.” For others, the TRAIN law poses many other questions which remained unanswered.
To deal with this, under the general principles of administrative law, the administrative agencies of the government are given the power to implement the general policies laid down in a statute by “filling in” the details through the issuance of implementing rules and regulations (IRRs).
After a few months and a series of flip-flopping tax advisories, the Bureau of Internal Revenue (BIR) has finally issued the celebrated IRRs for income tax, withholding tax, estate and donor’s tax, and value-added tax (VAT) to bring the cycle full circle.
These IRRs issued through Revenue Regulations (RRs), which have the force and effect of law, are intended to clarify or explain the TRAIN law and carry into effect its general provisions for the benefit of all taxpayers.
The following, among others, are the salient features of the supplemental regulations (RRs Nos. 8, 11, 12, 13, and 14-2018) to the TRAIN law which should be added in every taxpayer’s checklist:
INCOME TAX
1. New income tax rates for individual citizen and resident aliens:

Graduated marginal tax rates ranging from 20% to 35% (old: 5% to 32%) on taxable income brackets from P250,001 to P8 million (old: P10,000 to P500,000).

2. For qualified purely self-employed individuals earning income not exceeding P3 million a year:

The option to avail of graduated rates (5% to 35%) OR an 8% tax on gross sales or receipts and other non-operating income in excess of P250,000, in lieu of the graduated income tax rates and 3% percentage tax.

3. For individuals earning income from compensation and from self-employment (mixed income earners):

a. Compensation income subject to the graduated tax rates.

b. If the gross sales/receipts and other non-operating income do not exceed the P3 million VAT threshold:

Graduated income tax rates OR 8% of gross sales or receipts and other non-operating income in lieu of the graduated income tax rates and 3% percentage tax

c. If the gross sales/receipts and other non-operating income exceed the VAT threshold — subject to graduated income tax rates.

4. Employees of the regional or area headquarters or regional operating headquarters of multinational companies, offshore banking units and petroleum service contractors and subcontractors — regular income tax rates.
5. 13^th-month pay and other benefits received by officials and employees of public and private entities are tax exempt up to P90,000.
6. Basic, holiday, overtime, hazard, and night differential pay of minimum wage earners (MWEs) are tax exempt regardless of amount. Other taxable income (i.e., commissions) are exempt up to P250,000.
7. Filing of 1^st Quarterly Income Tax Return on May 15 (previously April 15) for self-employed individuals.
8. A second installment of tax due in excess of P2,000 due on Oct. 15 (previously July 15).
WITHHOLDING TAX
1. Interest income received by an individual taxpayer (except a non-resident individual) from a depository bank under the expanded foreign currency deposit system – 15% (previously at 7.5%).
2. Philippine Charity Sweepstakes and Lotto winnings, except those amounting to P10,000 or less – 20% (previously exempt regardless of amount).
3. Capital gains from the sale of shares of stock not traded on the Stock Exchange – 15% (previously 5%/10%).
4. Fringe benefits tax at 35% (previously 32%).
5. Income payments to professionals:

a. For individuals

• 5% if the gross income for the current year does not exceed P3 million

• 10% if the gross income exceeds P3 million or VAT registered regardless of the amount. Income payments to partners of General Professional Partnerships (GPPs), on the other hand, are subject to 15% EWT (if the gross income for the current year exceeds P720,000) and 10% EWT (if otherwise); OR

• Exempt if (a) income did not exceed P250,000; and (b) the source of income only comes from one customer. Income payee must submit to the payor a sworn declaration of his gross income to be subject to the exempt or 5% rate.

b. For corporations and partners of General Professional Partnerships (GPPs), EWT rate remains at 10% (if the gross income for the current year did not exceed P720,000) or 15% (if the gross income exceeds P720,000).

6. The withholding tax returns shall be due on the last day of the month following the close of the quarter when the withholding was made.

• New forms have been issued — BIR Form No. 1601EQ for creditable withholding tax, and 1601FQ for all other final withholding taxes. Forms 1602 for final tax on interest on bank deposits, 1603 for final tax withheld on fringe benefits; and

• On a monthly basis, withholding taxes shall be remitted using BIR Monthly Remittance Form (Forms 0619E and 0619F) every 10^th/15^th day of the following month when the withholding is made, regardless of the amount withheld.

7. A new classification, top withholding agents, was created, who are required to withhold 1% or 2% EWT on all suppliers of goods/services. This includes taxpayers identified as Medium Taxpayers and those under the Taxpayer Account Management Program (TAMP) as well as previously classified as top 20,000 corporations and top 5,000 individuals.
TRANSFER TAXES (ESTATE AND DONOR’S TAX)
1. Net estate shall be subject to an estate tax of 6%.
2. Standard Deduction of P5 million (previously P1 million) for a citizen or resident or P500,000 (for non-resident alien) and Family Home of P10,000,000 (previously P1,000,000).
3. Compliance requirements:

• Filing of Estate Tax returns within one year of death (previously within six months), extendible to thirty days for meritorious cases.

• The payment, if it would impose the undue hardship upon the heirs may be extended up to five years for judicial settlements of the estate or two years if extrajudicial.

• Installments within 2 years from filing subject to certain conditions (previously no installment payments).

4. If the bank has knowledge of the death of a depositor, alone or jointly with another, withdrawals shall be subject to final withholding of 6% estate tax.
5. Donor’s tax of 6% in excess of P250,000 (previously 2% to 15% OR 30% if the donee is a stranger).
6. The transfer of property, other than real property, for less than an adequate consideration shall be exempt from donor’s tax if made in the ordinary course of business (bonafide transaction, at arm’s length, and free from any donative intent).
VAT
1. VAT threshold increased to P3 million (previously P1,919,500).
2. VAT zero-rating exclusive for direct exports. The following indirect exports shall be subject to 12% VAT upon successful establishment of enhanced VAT refund system:

Sale of goods and properties
a. Sale of raw materials or packaging materials to a non-resident buyer for delivery to a resident export-oriented enterprise paid for in acceptable foreign currency.

b. Sale of raw materials or packaging materials to an export-oriented enterprise (70% exporter).

c. Transactions considered export sales under Executive Order No. 226.

Sale of services
a. Processing, manufacturing or repacking goods for other persons doing business outside the Philippines, which goods are subsequently exported, and paid for in foreign currency.

b. Services performed by subcontractors and/or contractors in processing, converting, or manufacturing goods for an enterprise exporting 70% of the total production.

3. VAT-exempt transactions:

a. Residential lot — P1,500,000 by 2018 and 12% VAT by 2021.

b. House and lot and other residential dwellings — P2.5 million by 2018 and P2 million by 2021.

c. Real properties utilized for low-cost housing — 12% VAT by 2021.

d. Real properties for socialized housing — still exempt.

e. Lease of residential units with a monthly rental per unit not exceeding P15,000 (previously P12,000).

f. Transfer of property pursuant to Section 40(C)(2) of the Tax Code also known as a tax-free exchange.

g. Association dues, membership fees, and other assessments and charges collected on a pure reimbursement basis by homeowners’ associations and condominium corporations.

h. Sale of drugs and medicines for diabetes, high cholesterol, and hypertension, beginning Jan. 1, 2019.

Surely, the importance of the above list cannot be overemphasized due to its direct impact on the public. By keeping abreast of the latest in the tax reform program of the government, effective tax planning strategies can be timely implemented to aid taxpayers in navigating the tax maze within the precepts of the law.
The true challenge of government is to increase the level of tax consciousness and the number of taxpayer-believers who are willing to contribute to its multifarious activities aimed to support the needs of the Filipino people.

Daryl Matthew A. Sales is a manager with the Tax Advisory and Compliance division of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing services firms in the Philippines.

Napoles as witness, Espinosa drug case to have top priority for review

April 9, 2018 | 9:01 pm

NEWLY APPOINTED Department of Justice (DoJ) Secretary Menardo I. Guevarra on Monday said he “will give top priority to a review of recent DoJ actions on Kerwin Espinosa and Napoles.”
Mr. Guevarra was referring to high-profile cases that drew controversy for his resigned predecessor, Vitaliano N. Aguirre II, on whose watch a drug case involving confessed drug lord Kerwin Espinosa was dismissed, while alleged pork barrel-scam mastermind Janet Lim-Napoles was recommended for provisional coverage under the DoJ’s Witness Protection Program.
“I will reserve any judgment though till I have thoroughly studied the matter,” Mr. Guevarra, previously Senior Deputy Executive Secretary, said of these cases in a text message to reporters.
“For now I’m forming a small legal team to assist me, on top of the veteran guys at the DoJ,” he added.
Mr. Espinosa and other drug personalities were accused with violation of Republic Act 9165 or the Comprehensive Dangerous Drugs Acts of 2002.
Mr. Aguirre had defended the dismissal of their case, saying it was still subject to his review. State prosecutors Aristotle M. Reyes and John M. Humarang also drew flak for their dismissal of that case.
Before leaving the agency, Mr. Aguirre reassigned the drug case to a new panel of prosecutors consisting of Senior Assistant State Prosecutor Juan Pedro C. Navera, Assistant State Prosecutor Anna Noreen T. Devanadera, and Prosecution Attorney Herbert Calvin D. Abugan.
This would also give the Philippine National Police’s Criminal Investigation and Detection Group (PNP-CIDG) an opportunity to reinforce their weak evidence, which Messrs. Reyes and Humarang cited as the reason for the case’s dismissal.
Mr. Espinosa and his co-accused were ordered by the DoJ to present themselves at a hearing on Thursday, April 12. — Dane Angelo M. Enerio

Nation at a Glance — (04/10/18)

April 9, 2018 | 9:00 pm

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Banaue Rice Terraces Restoration: A case study on Tourism Sustainability

April 9, 2018 | 8:47 pm

Let me start with a little scenario.
Tomorrow, one family or barkada will take a trip to the mountain resort of Baguio and then the magnificent rice terraces where tourists will pick up native carvings by the mountain tribes and if they are lucky, some authentic image of rice gods.
They are doing what tourists have always done: taking in a little sightseeing, a little sunbathing, enjoying the local flavors.
Tourism has always been an activity of man. In fact, a Greek philosopher once advised: “The world is a book. If you have not traveled, you have only read page one.”
Boracay has gained much fame around the world for its unequalled beauty, a signature label, and idyllic tourist destination. It has received numerous accolades and awards. On the positive side, it has provided a lot of economic benefits to the area and to the country as well.
Lately, however, the downside of neglect and disregard for environmental needs has threatened the future of the island paradise. The timely intervention of the government arrested what could have been an irreversible trend for the island, and great difficulty in resuscitating an ailing facility.
The same situation is believed to be happening in other destination areas, such as Bohol, Palawan, and Baguio. For instance, in the mountain resort of Banaue, the condition of the rice terraces is not healthy. In all of these cases, our eyes have been opened to the incapacity of the Filipinos to manage and sustain such tourism treasures. The negative effect of tourism development is upon us, and we are hard pressed to fend of the gloom.
Primarily, tourism affects the environment, the degree of which rises in direct proportion to the volume of tourists. The destruction maybe in terms of damage to plant and animal life (biological), pollution of air and water, or in the destruction of the landscape through uncontrolled building and inappropriate infrastructures and superstructures.
At a conference on the social and economic impact of tourism on pacific communities, held sometimes in the 70’s, one conclusion was reached unanimously: “Tourism promises dreams but produces nightmares.” This impression was a result of the information and insights shared by developing countries about the problems attendant to tourism growth. Tourism can be disruptive when it reinforces the desire for socioeconomic aspirations that are not locally attainable. A look at Boracay and other tourism resorts reveal the cultural degradation of the locality. They have lost their native identity. The injection of the culture of an alien element has greatly influenced the concept of development, so much so that basic considerations that impact of long-term operations are ignored or unattended too, all in the name of the might tourism dollars.
Coupled with the greed of national and local officials, the effects are really disastrous. Boracay and the rest of the booming tourist spots showcase irresponsible governance and lack of control mechanisms to achieve sustainability.
In 2016, a successful businesswoman, a philanthropist, a corporate social responsibility advocate was awakened after being briefed on the situation of the Banaue Rice Terraces by Mayor Jerry Dalipog, municipal mayor of Banaue. Dr. Milagros How is a visionary, a distinguished alumni awardee of the University of the Philippines for Corporate Social Responsibility in 2017. A physical inspection of the area exposed the stark reality that if no one will start, the Philippines stands to lose a rich UNESCO heritage, one of the 7 wonders of the world.
Universal Harvester, Inc., a private corporation, initiated the project that will restore a portion of the rice terraces as part of their Corporate Social Responsibility efforts. The project is a joint partnership with the Banawe Municipality under the leadership of its mayor.
The initial area for development is about 30 hectares. This will be the model that will create spill-over effect into other areas in order to achieve development and restoration of about 500 hectares within the next 3 years.
Aside from the physical restoration, the project hopes to revive the sociocultural values of the populace that has nurtured the rice terraces for the last 2,000 years.

One major objective of the project is to enhance the tourism value.
With its restoration, corresponding development in physical infrastructure will follow, which will create a big demand for tourism-oriented facilities like accommodation, transport, attractions, etc.
It aims not only to improve the physical condition of the natural heritage but also protect the cultural identity of the destination and the locals, and develop the cultivation of rice terraces that will enhance livelihood. Banaue is a good example of destination development as it promotes restoration and sustainability by improving or rehabilitating Banaue Rice Terraces with the involvement of the important stakeholders: the host community and the host government.
Ensuring that the community is part of the said project is necessary because the host community and the host government are more knowledgeable about the place. Community, private, and government partnership will ensure that the interests of the stakeholders are addressed.
Banaue will try to avoid the moves or mistakes that have resulted in the deterioration of Boracay, and other destinations. The reasons affecting sustainability can be attributed to lack of governance, command and control, and leadership.
Governance has been delegated to the local government units (LGUs). The LGUs by the nature of limited terms of their officials, dictated by periodic elections, reveal an absence of vision that must be achieved and perpetuated towards a long-term goal. Complicating sustainability is the myopic mind-set of local officials who view their office as a reward to perpetuate political and economic power.
Command and control are based on political allocation and accommodation. Local government regulations are so dysfunctional, resulting in massive inefficiency. These are the major obstacles to sustainability. It also discourages empowerment of people who must be the architects and engineers of sustainable development.
Last March 8, the Banaue International Music Composition Competition was launched. Composers of symphonic music from all over the world are sure to experience an in-depth musical and cultural immersion program and create music inspired by the Banaue people’s musical heritage.
Through a creative musical endeavor, we hope to showcase the Banaue Rice Terraces and raise awareness for restoration and prevention of its cultural significance to the Filipino people.
The Banaue Rice Terraces restoration project holds a lot of promise. It rests upon a solid foundation of strong private-public partnership under the stewardship of Dr. Milagros O. How, president and CEO, Universal Harvester, Inc., Banaue Municipal Mayor Jerry Dalipog and the people of Banaue. It is hoped that Banaue will become a success story in sustainability. It will be anchored on a responsible, moral, and ethical leadership. These attributes are always found wanting in the implementation of our tourism program. Brig. Gen. Yogyog (Ret), a native of Banaue, supervises the project on sight.
We shall make the difference.
While tourism is not the job of a soldier, it is better done with the application of the essential attributes of military leadership.
The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.

Jaime S. de los Santos is a member of the MAP National Issues Committee, presently Professorial Lecturer of Management (Part-time) UP — Diliman, Project Coordinator, Banaue Rice Terraces Restoration Project.
jaime_dlsantos@yahoo.com
jimmydlsantos@gmail.com
map@map.org.ph
http://map.org.ph

What do we do?

April 9, 2018 | 8:44 pm

For those who know the drill, disaster response consists of a series of deliberately taken steps — awareness, mitigation, preparation, response, management, relief-rehabilitation, and recovery — to ensure survival and continuity. In a sudden happening, many of those aspects would be overlapping each other simultaneously. In a slowly evolving crisis, there’s time to do all that sequentially.
Let’s take the evolving trade war between the US and China.
As of 2018, the United States has the world’s largest economy and China has the second largest, although China has a larger GDP when measured by PPP. The United States and China have an extremely extensive economic partnership, a great amount of trade between the two countries necessitates somewhat positive political relations, yet significant issues exist.
It is a relationship of economic cooperation, hegemonic rivalry in the Pacific and mutual suspicion over the other’s intentions. Relations were strained by president Barack Obama’s Asia pivot strategy and support for Japan in the Senkaku Islands dispute. President Donald Trump’s threats to classify the country as a “currency manipulator” and strategic competitor have raised anxieties worldwide. Stock markets have gone south in recent days when both began imposing tariffs on each other’s products.
China’s main export markets, in order of importance, are the European Union (20.4%), United States (17.7%), Hong Kong (13.4%), and Japan (8.1%). China’s main import markets, in order of importance, are Japan (13.3%), European Union (11.7%), South Korea (10.9%), Taiwan (9.1%), and the United States (7.2%). Third World countries have long served as a market for Chinese agricultural and light industrial products. China has increased trade and investment ties with many African countries partly to secure strategic natural resources such as oil and minerals.
For the past 20 years, the US-China trade balance has favored China annually and incrementally without let-up. In 1997, China had a favorable balance of $50-billion. In 2007, it was $258.5-billion. By 2017, China was enjoying a favorable balance over the US by $376-billion. America’s exports to China were only $130 billion while imports from China were $506 billion. American companies can’t compete with China’s low costs that have impacted US competitiveness in the global marketplace.
In recent years, China fluctuated between the world’s largest and second-largest economy. It has the world’s largest population. It sets the value of the yuan equal to the value of a basket of currencies that includes the dollar.
When the dollar loses value, China buys US T-bills to support the dollar. In 2016, China began relaxing its peg resulting in currency volatility. China’s influence on the dollar remains substantial.
China is America’s largest lender. Japan is second. As of January 2018, the US debt to China was $1.17 trillion. That’s 19% of the total public debt owned by foreign countries. Many are concerned that it gives China political leverage over US fiscal policy. If China were to stop buying T-bills, interest rates would rise. That could throw the US and the world into recession. And this wouldn’t be in China’s best interests.
Among Southeast Asian countries, the Philippines could be the most affected in the worsening trade tension between the US and China.
In a surprise move that could further escalate the trade war between the two economies, President Donald Trump on Thursday said he has ordered the US trade representative to consider imposing an additional $100 billion in tariffs on Chinese goods. Trump’s pronouncement came after China said it plans to slap $50 billion in taxes on American products.
In a research note dated April 4, RHB Bank Berhad said the trade war’s impact on Southeast Asia will likely be felt through shipments to China that are used as inputs to Chinese exports. The Malaysian bank then explained that the Philippines could be most at risk, as 16.9% of its total exports are part of China’s value chain, compared with countries like Malaysia (11.4%) and Indonesia (10.9%).
The sectors likely to be hit badly from US tariffs are electronics, electrical machinery (computers, etc), and industrial. It appears that the impact on ASEAN, while small, will not be negligible.
Last month, Trade Secretary Ramon Lopez said the Philippines is in “wait and see” mode. Government data show the Philippines’ shipments to China valued at $591.91 million last January, making the Asian powerhouse the fourth top destination of Philippine exports for the month.
The US-China currency and trade wars have been unfolding since the time of President George W. Bush, Jr., perhaps even earlier.
Have we been paying attention? Have our economic managers and business community made it a habit to regularly monitor, assess, plan, and prepare for a bilateral economic war that could quickly zoom to global proportions? How can we best minimize the impact on our economy and people already struggling with poverty and social separation just to survive?
Economic security is human security is national security. Both the public and private sectors go through the ritual of discussing crisis management for natural and man-made disasters. I surmise they know the theory like the back of their hands.
But have they actually put their knowledge into practice in anticipation of worst case scenarios and to take all precautionary measures? An economic crisis calls for crisis management. This one’s been unfolding quite slowly and deliberately. What have we done in response?
Awareness triggers anticipation and foresight. Completed staff work — in this case regular group thinks by those who have power over economic policy — triggers teamwork and performance excellence. We now have a crisis on our front yard. Before it knocks down our door, we’d better be ready with the right mind-set, skill sets, and tool kits to absorb the blows.
If we don’t know what to do, let’s at least have the humility and good sense to outsource the job to those who can ably defend our economy. It may be expensive but that’s a trade-off we’d rather absorb over permanent ruin.

Rafael M. Alunan III served in the cabinet of President Corazon C. Aquino as Secretary of Tourism, and in the cabinet of President Fidel V. Ramos as Secretary of Interior and Local Government.
rmalunan@gmail.com
map@map.org.ph
http://map.org.ph

Substantiating ‘Firsts’: Women, Peace, and Security in the Philippines

April 9, 2018 | 8:43 pm

There will always be some kind of “bragging rights” for those that come as “the first’” — the first to do this, the first to do that. We are not immune to this.
In fact, in many gatherings on United Nations Security Council Resolutions 1325 (UNSCR 1325) through the years, the Philippines has always been acknowledged as the first country in Asia that launched and implemented a National Action Plan on Women, Peace and Security (NAP WPS) in 2010. This is a fact.
Other countries in Asia that launched their NAPs after the Philippines were Nepal (2011); Kyrgyztan (2013); Indonesia, Republic of Korea, and Iraq (2014); and Tajikistan, Japan, Afghanistan (2015).
In 2017, the Philippines could very well be the first country in Asia that has crafted and implemented its third generation NAP WPS and this time, clearly as integral to the peace process and not just an addendum to it.
But beyond the “license to brag” on being “the first” is also the necessity to substantiate what it means to be one.
For example, Action Point 5 of the substantive pillar on Empowerment and Participation of the NAP WPS 2017-2022 seeks to improve the role and status of women in the security sector. As such, it goes beyond female inclusion and participation (which was the focus of the first NAP WPS) and move more towards female leadership.
Without undermining the importance of “counting” women, there is thus the imperative to infer into women’s engagement in decision-making spaces as well in crisis/emergency situations.
Towards the tail-end of women’s month, I have had the privilege of witnessing concrete initiatives of the Department of National Defense (DND) on implementing the NAP WPS 2017-2022. The DND has been a member of the National Steering Committee on Women, Peace and Security (NSC WPS) since 2010 and thus mandated to implement the NAP WPS 2010-2016.
However, it was only fairly recently that it had began to actively strategize to implement the third generation NAP WPS.
For 2018, approved advocacy campaign activities included the conduct of a “Gender, Peace and Security Forum: Women in the Defense Sector” last March 27.
The first part of the moderated panel discussion focused on “Women Leaders” with female officers with several ‘firsts’ tucked in their belts: Colonel Maxima O. Ignacio, PAF (GSC) as the first female aviation student and first female pilot in the Philippine Air Force; Colonel Joselyn R. Bandarlipe CE PA (GCS) as the first female Engineering Battalion Commander in the Philippine Army; and Navy Captain Luzviminda A. Camacho PN (GSC) as the first female ship captain of the Philippine Navy as well as the first female United Nations Contingent Commander who led the 17^th Philippine Contingent to the United Nations Stabilization Mission in Haiti (MINUSTAH).
For these women, being seen as “the first” depends on the significance one attached to it: either it is just used as a convenient brand and as a novelty since they are “trailblazing women” in a largely male-dominated institution or it is understood as a benchmark, as a standard for other women in the service to follow. These women have had illustrious careers guided by a certain work ethic that feminists would be proud to call transformative. And truly, they paved the way for other women who would succeed them.
The second moderated panel discussion centered on “Women in the Frontlines” that heard the stories and insights from Major Nancy R. Dacanay PAF, 1LT Mersheena Mahalail Silungan PN (M), MSg Astred T. Graganza PA (FS), and Ms Gecile Gonzales of the Office Civil Defense.
In the context of crisis and emergencies, these women did not boast any “firsts” and yet, they were one of the few who have clearly articulated that gender, at least in their experiences, was not relevant in the front lines — they did what they did not because they were women but because they were people with a mission. They were not “treated” as women by their colleagues, subject to protection, but as persons capable and trusted to deliver the task they set to do.
Interestingly, although there was the recurrent theme of accomplishing a mission effectively, the role of gender somehow rang differently in the experience of some hijab troopers I had a chance to converse with when I went down to Marawi City a few days after the forum.
The hijab troopers were deployed in August 2017 as part of the all-female Civil Relations Company (CRC), a joint initiative of the Armed Forces of the Philippines and the Philippine National Police. Their main task was to assist in the implementation of rehabilitation and recover programs in internally displaced peoples (IDP) camps. Needless to say, this was actually the first initiative to deploy such in an on-going conflict situation.
As their deployment comes to an end, only a few hijabi troopers remain in Marawi. In retrospect, these women believe that they have contributed to a more positive image of the military in the eyes of affected people, particularly, the children.
“When we were newly deployed in IDP camps, children would say they wanted to be ISIS when they grow up; after several months of being part of their lives, they now say they want to be like us, like hijab troopers.”
For these hijab troopers, gender did matter — it was important on how women and children became more open to them, it was significant in a way that they were seen to be trustworthy and sincere, and it was relevant in a way that caring for the affected ones seemed to come more naturally for them.
Indeed, the Philippines may have been the “first” in implementing NAP WPS in Asia.
But there has to be further substantiation on what it means to be the “first.” As what I have learned from women in the security sector, there has been a lot of improvement as regards their role as leaders and decision makers and as women in the front lines. These must be celebrated, be they the “first” or not. But more importantly, their impact on the lives of others — such as the internally displaced children of Marawi — should also be given due worth. The “returns of peace” will not be seen today but rather will be felt at least a generation later… and in retrospect, that would be when we would probably say that gender did matter in peace and security.

Ma. Lourdes Veneracion-Rallonza is an Assistant Professor in the Department of Political Science, Ateneo de Manila University.
mrallonza@ateneo.edu

Unboxing your thoughts

April 9, 2018 | 8:42 pm

In 2014, the top YouTube sensation in the Philippines belonged to a video series of toys being unboxed by two sisters recorded and uploaded by their father. After that, other similar unboxing shows followed. One involved toy eggs being peeled of their layers to show what’s inside. This version got an unbelievable 35 million views.
Now, the term “unboxing” has become a digital event featuring the filming of new gadgets being taken out of the box for evaluation and review by a tech guru.
The progressive revelation of a desirable object through the peeling away of outer layers of covers has always offered a titillating pleasure — Okay, let’s not go there.
What is it about boxes being unwrapped that casts such fascination? Is it the same thrill felt when unwrapping gifts? The celebration of “boxing day” on Dec. 26 for example specifically commemorates the opening of Christmas gifts, in England where the special holiday came from. There are mad sales promos on boxing day in many countries. The theory perhaps is that you would buy what you didn’t get as a gift.
Boxes too have become part of the manager’s vocabulary.
Exhortations to “think out of the box” require throwing away old-fashioned solutions and adopting heretofore unthought-of approaches. Stepping out of the box is a favorite mantra of consultants. After all, if everybody is comfortable with current practices, is there a need for outsiders to offer 10 ways to think out of the box? (Do you really need a box?)
Companies are comfortable with boxes. It defines their comfort zones. The traditional hierarchical structure itself is an array of boxes connected by lines, both solid and dotted, to denote reporting relationships or the flow of information and decision making. Boxes define jobs to avoid redundancies and overlaps.
Ideas out of the box are automatically seen as novel and creative, even if they first seem outrageous and unworkable. Planning sessions have an exercise precisely to get people out of the mental rut they have traveled too predictably before.
Exercises in creativity (think of 25 uses for a paper clip) are supposed to unlock the left side of the brain. This parlor game allows blue-sky, off-the-wall, and far-out ideas to percolate. The facilitator nonchalantly lists down even the weirdest ideas. (Don’t laugh, that’s good — cheese holder; bra fastener; fake beard…what else can a paper clip be used for? Okay, temporarily holding pieces of paper together… anybody else?)
The phrase “out of the box” is based on a puzzle designed by the British mathematician, Henry Ernest Dudenay to connect nine dots to form a box by crossing all the dots, without lifting pencil from paper or retracing any lines. The solution involves drawing beyond the nine dots to complete the puzzle. Extending the line outside is a creative breaching of a presumed limitation.
Even when there was no stated requirement to stay within the space of the nine dots, most of those tested did not think of venturing out of bounds — unless they had encountered this puzzle before.
There is only one rule for out-of-the-box thinking: if it is not explicitly forbidden, it is considered allowed. Sometimes, even stated rules can be broken — they’re already passé and should be changed.
The opposite of thinking outside the box is being “boxed in.” The latter refers to a sense of limits that turns us into creatures of habit and orthodox thinking.
In computer software terms, however, an application “out of the box” is one that is readily available to install and use without further modification. This other meaning ironically refers to a routine approach. It is similar to off-the-rack or ready-to-wear. It is the default setting that requires no further tinkering.
Can being out-of-the-box also imply lunacy? A maverick posture does not necessarily contribute to team play. Being out of the box can mean being unhinged, out of whack, the odd man out, undisciplined, a cowboy going off by himself into the sunset. (Is he on the same page?)
Thinking out of the box has its downside. It often requires a reality check. Straying too far away from the nine dots of life may mean not being able to get back to the box.

A. R. Samson is Chairman and CEO, TOUCH xda.
ar.samson@yahoo.com

Asian stocks rebound as investors assess impact of trade war

April 9, 2018 | 6:30 pm

Asia stocks rebounded as concerns over the possibility of full-scale trade war between the world’s two biggest economies eased. Chinese equity markets reopened after a long weekend.
The MSCI Asia Pacific Index gained 0.8 percent 172.97 as of 12:16 p.m. in Hong Kong, led by gains in healthcare stocks. All of major markets from Japan to South Korea gained except for the Philippines.
U.S. President Donald Trump said Beijing will relax its restrictions “because it’s the right thing to do,” and added that deals will be made on tax reciprocity and intellectual property. Investors focus will now turn to China’s Boao Forum, where President Xi Jinping is among senior officials scheduled to speak. All major U.S. equity indexes on the cash market ended last week lower as data showed March payrolls were cooler than economists forecast.
“Investors started to realized that the risk from a trade war between U.S. and China is quite manageable and the impact should be limited to other countries in Asia, particularly those in Southeast Asia,” Jeffrosenberg Tan, head of investment strategy at PT Sinarmas Sekuritas, said. “The Federal Reserves might be more dovish after the payroll date which is good for the regional currencies.” — Bloomberg

Peso to climb on weak US data

April 9, 2018 | 6:30 pm

THE PESO is seen to strengthen against the dollar in the first few days of the week due to lukewarm US labor data and escalating trade tensions between the US and China.
Last Friday, the peso strengthened against the greenback, ending the session at P52.02 ahead of the long weekend.
Week on week, the peso also strengthened from its P52.16-per-dollar finish on March 28.
“[The dollar will likely dip] due to weaker-than-expected US labor reports and escalating trade tensions between China and the US,” Guian Angelo S. Dumalagan, market analyst at Land Bank of the Philippines (LANDBANK), said in an e-mail.
According to the Bureau of Labor Statistics, the US created 103,000 jobs in March, well below the 193,000 market expectations as well as the 326,000 non-farm payrolls reported in February.
The jobless rate stayed at 4.1% last month, below the 4% market expectation.
Despite these weaker-than-expected US labor reports, the LANDBANK market analyst noted that “average hourly earnings, which is a leading indicator of inflation, surpassed consensus estimate.”
On the other hand, President Donald J. Trump instructed officials to consider slapping $100 billion worth of duties against China, following Beijing’s imposition of new tariffs on 128 American goods including frozen pork, wine and apples.
“These negative developments are expected to weigh down on the dollar, although their impact could be temporary given that the US still remains generally on track to raising rates two more times this year, Mr. Dumalagan said.
Toward the end of the week, LANDBANK’s market analyst noted that the dollar might recover from its initial fall as it will be supported by potentially upbeat inflation data and the release of the US Federal Reserve minutes.
“Prices on both the producer and consumer sides are expected to pick up in March 2018, aligned with the better-than-expected increase in average hourly earnings,” he said, adding that these suggests that the US inflation is inching closer toward the Fed’s target and that the tightening of the US labor market is staring to exert upward pressure on prices.
During the March meeting of the Federal Open Market Committee (FOMC), the Fed officials have upgraded their outlook on the American economy, suggesting a steeper path of rate adjustments until 2020.
“The FOMC minutes might provide additional details on these hawkish views, affirming widespread beliefs of at least two more rate hikes in 2018,” added Mr. Dumalagan.
For this week, Mr. Dumalagan expects the peso to trade between P51.65 and P52.35, while a foreign exchange trader said the peso will move from P51.90 to P52.15 as markets reopen today. — Karl Angelo N. Vidal

Oil trades below $63 as investors assess US-China trade battle

April 9, 2018 | 6:30 pm

Oil’s decline slowed after prices fell to an almost three-week low as investors continued to evaluate the potential impact of an escalating trade conflict between the U.S. and China.
Futures in New York traded below $63 a barrel after dropping 4.4 percent last week. While U.S. President Donald Trump predicted the Asian nation will be first to buckle as the world’s two largest economies teeter on the brink of a trade war, a speech by China’s Xi Jinping at a conference on Tuesday may shed some light on his plans. Meanwhile, money managers slashed bets on rising West Texas Intermediate crude by the most since August, while short-selling surged.
Oil is losing steam after rising more than 5 percent last month as Trump repeatedly raised the stakes against China, rattling markets in recent weeks. Along with other risky assets, oil took a blow on concern the escalating tension will threaten growth that drives energy demand amid record U.S. output, hindering efforts of the Organization of Petroleum Exporting Countries and its allies to curb a global glut and prop up prices.
“It’s a tough market at the moment. There’s weakness in the next session or two, and a constrained range until we get more global market news,” Michael McCarthy, chief market strategist at CMC Markets, said by phone from Sydney. “There’s potential for a breakaway announcement from President Xi Jinping. There will be fairly cautious Asia Pacific trading ahead of that tomorrow.”
WTI for May delivery traded 17 cents higher at $62.23 a barrel on the New York Mercantile Exchange at 8:23 a.m. in London. Prices fell 2.3 percent to $62.06 Friday, the lowest close since March 19. Total volume traded was about 15 percent above the 100-day average.
Brent for June settlement was up 24 cents to $67.35 a barrel on the London-based ICE Futures Europe exchange. The contract dropped $1.22, or 1.8 percent, to $67.11 on Friday. The global benchmark crude traded at a $5.08 premium to June WTI.
Futures for September delivery were little changed at 402.3 yuan a barrel on the Shanghai International Energy Exchange. The exchange was closed Thursday and Friday for Chinese holidays.
In the U.S., President Trump ordered a review of tariffs on another $100 billion of imports from China, bringing the total to $150 billion of Chinese goods under consideration. In response, a senior Chinese official said the nation will “retaliate immediately, intensively, without any hesitation.”
Adding bearishness to the market, hedge funds cut their WTI net-long position — the difference between bets on a price increase and wagers on a drop — by 9.4 percent in the week ended April 3, according to the U.S. Commodity Futures Trading Commission. Longs fell 7.4 percent as funds shed the largest number of bullish bets in almost a year, while shorts jumped the most since August. — Bloomberg

What to watch in commodities: aluminum, Trump Vs Xi, copper, soy

April 9, 2018 | 6:26 pm

We live in interesting times. Just as investors weigh up the U.S.-China trade punch-up, markets need to adjust to a whole new front. U.S. sanctions against Russian companies and oligarchs are upending aluminum. The metal’s surging, while shares in United Co. Rusal are in the grinder. What should we expect this week? And what does it mean for Glencore Plc?
On top of that, there are two gatherings that’ll shape the big-picture agenda. In Asia, China’s leadership, including President Xi Jinping, will deliver their take from the Boao Forum for Asia. And in Peru, heads of state from across the Americas will gather in Lima for a summit that may provide a backdrop for a breakthrough on fraught Nafta talks between the U.S., Mexico and Canada.
Beyond that lot, trade tensions still feature prominently: the copper industry meets in Chile for Cesco week to assess the outlook; agricultural investors will pore over snapshots of supply and demand from the U.S. and Brazil; and the world’s oil heavyweights congregate in India just before OPEC and the International Energy Agency offer their latest assessments.
Davos, Without Snow
With the spotlight on China’s leadership as trade tensions spike, investors will track the tenor and substance of remarks coming out of this week’s Boao Forum for Asia in Hainan, the local equivalent of Davos. President Xi’s going, together with other senior officials and invitees including International Monetary Fund head Christine Lagarde. The fight with the U.S. carries implications for materials across the board, especially soy, metals and gold.
Before the meeting, Foreign Minister Wang Yi signaled there’d be details on new reforms, including measures to further open the second-largest economy. After the talking’s done — with Xi’s address due on Tuesday — mainland trade data on Friday will give a snapshot of how commodity demand stacked up over the first quarter. Watch for the prints on oil, iron, steel, copper and soybeans.
Nafta Deal or No Deal?
A gathering of heads of state and business leaders in Lima, Peru, this week may be the stage for some good news on trade. The U.S. administration is said to be pushing for a preliminary Nafta deal to announce at the Summit of the Americas on Friday or Saturday. President Donald Trump has said that the exemption to steel and aluminum tariffs granted to Canada and Mexico will expire May 1 if he’s not satisfied with the Nafta talks.
On Thursday, Barrick Gold Corp. president Kelvin Dushnisky and Freeport-McMoRan Inc. chief executive officer Richard Adkerson participate in a series of CEO panels. Investors, traders and analysts will be eager to learn how executives are navigating the U.S.-China trade friction and how they would assess impact on demand for metals.
Bear Baiting
Global trade tensions extend well beyond the U.S.-China standoff, with Washington’s robust new sanctions against Russian tycoons, companies and allies of President Vladimir Putin roiling markets. Push-back from the Kremlin will come: Russia’s Foreign Ministry is working on measures, ministry spokeswoman Maria Zakharova said on a state television channel.
The fallout is hitting aluminum given the importance of United Co. Rusal, the world’s biggest producer outside China, and billionaire owner Oleg Deripaska. Rusal’s initial assessment is the sanctions may result in technical defaults, and it’s likely the moves will hurt the company’s business. Aluminum is rallying in London on Monday, extending Friday’s gains, while Rusal stock plunges. All that may pose a challenge for Glencore, one of Rusal’s top holders.
CESCO Meet
Over in Santiago, top mining executives, traders and investors will gather for the annual Cesco copper week, with talking points spanning the global trade brawl to labor tensions. The market is enduring something of an identity crisis, with its short-term outlook dimmed by large stockpiles and the U.S.-China trade showdown that threatens to undermine demand.
Strikes, or the lack thereof, will also likely feature in conversations among the attendees. Prices climbed last year after a 44-day strike at BHP Billiton Ltd.’s Escondida mine in Chile disrupted supply, helping push the market into a deficit. While this year is poised to be the busiest on record for workers’ contract negotiations, there’s growing optimism that companies and unions could reach an agreement, avoiding disruptions.
WASDE and Conab
Soybeans have been a target of China’s planned retaliation against the U.S. tariffs, derailing the oilseed’s rally this year. Is the worst yet to come for American growers? The U.S. Department of Agriculture’s World Agricultural Supply and Demand Estimates, known as WASDE, may provide some clues. The data is due on Tuesday, the same day Brazil’s crop agency Conab releases its soybean and corn outlook. The U.S. and Brazil compete against each other in supplying grains and soybeans to the Asian nation.
Traders will scrutinize both estimates for exports for clues on what to expect from the tensions between the U.S. and China. The brewing trade war also has roiled grain and livestock markets and it’s likely volatility will persist. A pork tariff issued by the Chinese government, and the threat of similar taxes on soybeans, have led to an uncertain view for American agricultural shipments, just as farmers gear up to plant the coming season’s crops.
Oil’s Biggest Guns
This week oil traders will watch out for reports from two of the industry’s most influential institutions — OPEC and the International Energy Agency. The pair will publish monthly reports with their latest forecasts for supply and demand in 2018, which may be provide clues which way prices are headed.
The snapshot from OPEC, which has been curbing supply to reduce a glut comes on Thursday, with the IEA assessment due the next day. Also in the focus this week, the market’s biggest guns including Saudi Arabia’s Energy Minister Khalid Al-Falih, OPEC Secretary-General Mohammed Barkindo and IEA Executive Director Fatih Birol will gather in New Delhi for International Energy Forum.
Bulls Versus Bears
Hedge funds have been increasing their net-short position on raw sugar and traders aren’t optimistic on the sweetener’s outlook either, as a global glut persists. Half of the analysts and traders surveyed by Bloomberg were bearish, the most since December.
Sentiment was also negative on soybeans, while traders and analysts were split on natural gas and gold. — Bloomberg

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