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Monetary Board sees robust manufacturing, spending driving growth

By Melissa Luz T. Lopez,
Senior Reporter

UPBEAT manufacturing activity coupled with increased government spending provide assurances that the Philippines’ growth momentum will be sustained, the Bangko Sentral ng Pilipinas (BSP) said in deciding to keep policy rates steady last month.

“High-frequency indicators supported the continued positive outlook for domestic demand,” read the minutes of the BSP’s Nov. 9 policy meeting. “Increased fiscal spending is likewise expected to boost economic activity and support the growth momentum.”

The policy-setting Monetary Board kept benchmark borrowing rates unchanged last month, citing manageable inflation and robust domestic activity which render current policy settings appropriate.

The central bank kept the key policy rate at 3%, with the interest rate corridor spread remaining at 2.5-3.5%. Reserve requirement ratios were also maintained.

In particular, the BSP took the view that factory output continues to be robust, as reflected in the strong Purchasing Managers Index (PMI) readings logged during recent months.

The seasonally adjusted Nikkei Philippines Manufacturing PMI picked up to 54.8 in November from 53.7 the previous month, the highest score so far this year amid production expansion and new orders. Factories also operated at near-full capacity, the BSP said.

A PMI reading above 50 suggests increased activity, while a score below that signals a decline. In particular, strong economic conditions, promotional activity and greater client demand sustained the rapid growth in product orders.

Meanwhile, the country’s budget gap widened ninefold in October as public spending surged to an 11-month high, Treasury data showed, with the year-to-date deficit settling at P234.9 billion, compared with a P216-billion gap in the same period in 2016.

Gross domestic product (GDP) grew by 6.9% during the third quarter, beating market expectations as public spending surged. This brought the nine-month tally to 6.7%, close to the low end of the government’s 6.5-7.5% target band for 2017.

This year, the government is looking to spend P847.22 billion on public infrastructure projects, which will account for 5.3% of GDP. This forms part of the P8.44-trillion program until 2022, which will be supported by a mix of foreign grants, public-private partnerships, and government funding.

Economic managers expect growth to pick up in the coming quarters as more infrastructure projects are rolled out, with Finance Secretary Carlos G. Dominguez III betting on a “more riveting” pace during the last three months of the year as the Duterte administration embraces bigger investments.

By 2018, the government is targeting to expand the economy by 7-8% to keep the Philippines one of the fastest-growing in the region.

“[T]he outlook for domestic economic activity remained firm, supported by positive consumer and business sentiment and ample liquidity,” the BSP said.

Against this backdrop, price increases are expected to remain within target but are at risk of trending higher, the BSP said.

Higher taxes on goods as prescribed under the tax reform plan, coupled with petitions for transport fare and electricity rate increases, could hasten the pace of price movements, but could be offset by slower global economic growth.

Inflation has averaged 3.2% as of end-November after hitting a three-year peak at 3.5% in October to stay within expectations, and within the 2-4% target for the full year.

RP Blu Girls’ runner-up finish good for WBSC World Championships, Indonesia Asian Games in 2018

THE RP Blu Girls ended their campaign in the 11th Asian Women’s Softball Championship in Taichung City, Taiwan with a second-place finish that was capped by a triple header against powerhouse teams Japan, China, and Chinese Taipei. This marks the first time in 45 years that the country has bagged the silver in the tournament.

“Nobody expected us to be in the top three, so it’s a big accomplishment already,” noted team coach Randy Dizer. “It shows that the Blu Girls can compete among the best in the world and with the preparation that the team is doing and with the support that we have been getting from Jean Henri Lhuillier, I know the team is ready.”

With their podium finish, the Cebuana Lhuillier-backed Filipina softbelles have earned a slot in the 2018 WBSC Women’s World Softball Championship in Japan and the 2018 Asian Games in Indonesia, bringing them a step closer to their goal of being one of only six teams to qualify for the 2020 Tokyo Olympics.

The 17th-ranked Blu Girls faced world number 6 China in the semifinals after demolishing Hong Kong, 17-0. Against the Chinese, the Filipinas were down 3-1 at the bottom of the last inning when Fil-Am Danny Gilmore hit a 2-run home run to tie the game, 3-3, and extend it to extra inning.

The Philippines held China scoreless on the top of the 8th with perfect pitching from Anne Antolihao before Chelsea Suitos and Sky Ellazar teamed-up to bring Cheska Altomonte home for the come-from-behind win.

In the playoff match, the Philippines faced world number 9 Chinese Taipei for the right to face world number 1 Japan. The hometown team easily built a commanding 3-1 lead in the first 4 innings before the Blue Girls came back with four runs in the fifth, capped by a home run by Chelsea Suitos for a 5-1 advantage.

The Philippines kept Chinese Taipei scoreless until the end, arranging a championship match against Japan later in the day. But fatigue caught up with the Blu Girls who eventually succumbed to the world number 1 team as they settled for a runner-up finish.

5 firms qualify for next stage of Clark bidding

By Patrizia Paola C. Marcelo

FIVE OF THE SEVEN groups that submitted bids for the Clark International Airport (CIA) Phase I terminal upgrade project have qualified for the next stage of the bidding process.

The Bases Conversion and Development Authority (BCDA) on Thursday said the companies eligible to make financial bids are China State Construction Engineering Corp., China Harbour Engineering Company Ltd., Sinohydro Corporation Limited, the joint venture of Megawide Construction Corp. and GMR Infrastructure (Singapore) PTE Limited, and the consortium of China Machinery Engineering Corp. (CMFC) and Tokwing Construction Corp.

However, the consortium of DDT Konstract, Inc. and DABS, and R-II Builders, Inc. and Losberger were deemed ineligible due to due to noncompliance with the prescribed requirements of the project.

“They did not comply with the different sets of requirements prescribed, from legal, technical, and financial. For example, they cannot prove that they have the minimum experience [in constructing airports]. They were saying that they have experience but they did not have the supporting documents. They also should have the capacity to raise funds,” BCDA Vice-President for Business Development and Chairman of the Special Bids and Awards Committee (SBAC) told BusinessWorld during the opening of the technical documents on Thursday.

Among the qualification requirements are the completion of a total of P15 billion worth of related projects; design of an airport currently in operation; net worth of at least the cost of the project; and the capacity to raise loans, with the winning bidder putting up 20% equity.

Qualified bidders will move on the next phase, which is the opening and evaluation of financial documents, scheduled on Dec. 14. 

The BCDA targets to award the Engineering, Procurement, and Construction Contract on Dec. 15. Groundbreaking for the project is targeted on Dec. 20.

Israeli troops reinforce West Bank in Trump’s wake

JERUSALEM — The Israeli military said it was reinforcing troops deployed in the occupied West Bank on Thursday as Palestinians protested against the US recognition of Jerusalem as Israel’s capital.

Several new army battalions would be deployed and other forces put on standby, a military statement said, calling the measures “part of the IDF’s (Israel Defence Forces) readiness for possible developments.”

Israeli Prime Minister Benjamin Netanyahu said on Thursday many countries would follow the United States in recognizing Jerusalem as Israel’s capital and contacts were underway.

Wednesday’s announcement by US President Donald J. Trump reversed decades of peace-making policy on Jerusalem, which both Israelis and Palestinians claim, and drew censure from many countries, among them key allies of Washington.

“I would like to announce that we are already in contact with other countries which will issue a similar recognition,” Mr. Netanyahu said in a speech at Israel’s Foreign Ministry.

He did not name any of these countries.

The United States plans to open an embassy in Jerusalem, a move it says could take three to four years. The US Embassy is currently in Tel Aviv, Israel’s economic hub, as are those of other countries.

“I have no doubt that the moment the American Embassy moves to Jerusalem, and even before then, there will be a movement of many embassies to Jerusalem. The time has come,” Mr. Netanyahu said.

Palestinian Islamist group Hamas called on Thursday for a new uprising against Israel after Mr. Trump’s recognition of Jerusalem as the Israeli capital. — Reuters

Opportunity missed

Is jeepney “modernization” the answer to the Philippines’ land transportation woes? Or does the solution lie elsewhere? Will that scheme put in place a safe, rational and reliable transportation system all over the country, or in the National Capital Region at least?

Or does developing a system of efficiently and safely moving people from place to place that’s crucial to national development depend on the adoption of those basic social, economic and political reforms that have long eluded the Filipino people?

The Philippines has one of the most chaotic and most dangerous land transportation systems in Asia, thanks to the total absence of any centralized planning for this sector. In the National Capital Region alone, getting from one place to another is not only time-consuming; it is also costly in terms of man-hours lost. But it can also be dangerous, not only because of the frequency of glitches in the operations of the Metro Rail Transit System (MRT), which have included the uncoupling of cars and doors not closing while the trains are running, but also because of the near-epidemic of traffic accidents involving motorcycles, trucks, buses, and other vehicles in the mean streets of Philippine cities.

In addition to the horrendous traffic those who drive, or take taxis and buses, have to deal with daily while coming from and going to work or school, there are also the jeepneys whose numbers choke most streets and which in many cases are the only available means of transportation for those with limited means.

The jeepney evolved from the US Army World War II military vehicle, the Jeep. The US military left several hundred of these vehicles when those of its units involved in the war against Japan withdrew from much of the Philippines in the late 1940s. Harry Stonehill, a former GI who decided to stay in the Philippines — and who was accused of bribery during the presidency of Diosdado Macapagal — made a fortune selling them as surplus goods in the aftermath of the WWII destruction of Manila’s public transportation system.

Conventional wisdom credits Filipino ingenuity with converting those vehicles into means of public transportation.

Although thought to be only a temporary solution to the transportation problems of the post-war era, over the years the jeepney, thanks to their drivers and operators, were further modified in appearance as well as passenger capacity.

The Jeep’s drab gray soon morphed into chrome and multicolored moldings and panels, while its capacity of four soon became 10, 14, and even 16. While the front body design more or less conformed with the Jeep’s, the passenger compartments assumed lives of their own, while the engines became mostly Japanese in the 1960s. From temporary conveniences, 70 years since they were adapted to the country’s needs, jeepneys have become permanent fixtures on roads all over the Philippines.

Although hailed as icons of Filipino ingenuity and creativity, jeepneys have long outlived their usefulness. They are inefficient, polluting, and, despite claims to the contrary, hideously unrepresentative of Philippine folk art. A jeepney consumes as much diesel fuel as a passenger bus. Its emissions contribute heavily to the pollution that makes many people prone to respiratory and other ailments. Its center of gravity makes it top-heavy and unsafe at even moderate speeds. And there’s not enough chrome on the planet to hide its inherent ugliness.

Too many jeepney drivers are also notoriously undisciplined and without any trace of civic-mindedness. On any given day, they will load and unload passengers in the middle of a thoroughfare, block traffic lanes, and drive like maniacs with no regard for traffic rules and pedestrian and passenger safety.

But none of these realities justifies jeepney drivers’ and operators’ being denied their livelihoods and condemned to worse poverty and even starvation. Neither should they be forced to purchase expensive replacement vehicles costing from P1.2 to P1.8 million. To make the monthly payments (some P24,000, or P800 daily), and to support their families, they will have to charge higher fares — to the detriment of a riding public that’s already burdened by higher taxes and the rising costs of food, shelter, medical care, and their children’s educational needs.

Some alternative to the jeepney as a major means of public transportation must be found. But to make sense it must be part of a plan to put some order into the chaos that is the land transportation system so as to solve such problems as the traffic jams in the country’s major cities that are already the stuff of legend, and the accidents that exact a daily toll in lives, injuries and man-hours lost, among other consequences.

Such a plan must provide for the livelihood and future of former jeepney drivers and operators. It will necessarily include the reeducation of everyone who drives a motor vehicle and the institution of means to limit private vehicle acquisition, such as those that have worked in Singapore, where a license is needed for anyone to purchase an automobile or any variant such as a sport utility vehicle.

That limitation works because of the efficiency, comfort, convenience and safety of the public transportation system, which has been assured through the Singapore government’s commitment to providing the public a viable alternative to owning and driving its own vehicles.

In the Philippines, the welfare and future of the thousands of jeepney operators and drivers that over the last seven decades have made the jeepney their only source of livelihood must be addressed through some other means than a “modernization” program that by itself will not make the transportation system any less chaotic, unsafe, and unreliable. It will instead create a huge debtor class whose burdens it will certainly pass on to the riding public.

Transportation is a key element in development as well as in the making and unification of the national community. Its impact on both is evident in the Philippines’ continuing to be one of the poorest countries in Southeast Asia, as well in the distrust and conflicts that divide Philippine ethnic communities.

There was some hope that with the adoption of a mutually acceptable agreement on the fundamental economic, social, and political reforms that could have resulted from the peace negotiations between the Philippine government and the armed political and social movements such as the National Democratic Front of the Philippines (NDFP) and the Moro Islamic Liberation Front (MILF), the problems of the transportation and other systems could eventually be addressed. This is another way of saying that without basic reforms — among them putting an end to landlessness, industrializing the country, and most importantly, enabling ordinary citizens to participate in their own governance rather than leaving the State to the mercies of the political dynasties that have neither the will, the vision, nor the need to institute the reforms needed — the inefficiencies and dangers of the transportation system will remain unresolved.

Without the social, economic, and specially the political reforms that for decades have demanded implementation, the most that can be done is to address every problem piece by piece and in isolation, and with little effect on major issues.

You can’t plan a rational transport system without the political means to do it.

That could have been made possible by the citizenry itself, once it was empowered to put in place the reforms needed.

Unfortunately, the possibility of that happening has passed not only in the transport sector but also in education, health, housing and other vital areas of Filipino life. The pity of it is that it had seemed, if only for a short time, so near and so possible. It was one more opportunity missed in this land of lost opportunities.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro). The views expressed in Vantage Point are his own and do not represent the views of the Center for Media Freedom and Responsibility.

www.luisteodoro.com

Star Wars universe expanding for new trilogy

LOS ANGELES — As Star Wars fans gear up for The Last Jedi, the anticipated next installment in the Skywalker series, its star and writer-director shed some light on how the franchise was mapping a future beyond the beloved characters.

Rian Johnson, writer-director of The Last Jedi, will be overseeing a new trilogy of Star Wars films that will explore far-away corners of the galaxy, Walt Disney Co. said in November.

“I‘m just in the very beginning phases of coming up with it so right now the sky is kind of the limit,” Johnson said while promoting The Last Jedi last week.

“The appeal of it to me is to do a new story told over three movies, to have that kind of canvas, to be in the Star Wars world and to have the feel of a Star Wars film,” he said.

The new stories will not follow the Skywalker saga, which George Lucas kicked off with 1977’s Episode IV: A New Hope.

Disney purchased Lucasfilm in 2012 for $4 billion, and rebooted the Star Wars franchise with the Skywalker trilogy and standalone films like Rogue One: A Star Wars Story.

Johnson’s The Last Jedi picks up the Skywalker story after 2015’s blockbuster The Force Awakens, in which a new generation of characters was introduced with returning favorites Han Solo (Harrison Ford), Princess Leia (Carrie Fisher) and Luke Skywalker (Mark Hamill). Fisher died last year. — Reuters

You’ve come a long way, baby

By Richard Roeper

Movie Review
Battle of the Sexes
Directed by Valerie Faris and Jonathan Dayton

“YOU’VE COME a long way, baby, to get where you got to today.

“You’ve got Virginia Slims now, baby, you’ve come a long, long way.” — the ubiquitous commercial jingle for Virginia Slims cigarettes, targeted to the female smoker

Bobby Riggs vs. Billie Jean King.

A self-promoting, long-retired male pro given to statements such as, “I like women in the kitchen AND the bedroom,” taking the court against a charismatic, fiercely competitive female star at the top of her game.

What, you thought Mayweather/McGregor was the first manufactured sporting spectacle in American history?

Battle of the Sexes stars Emma Stone as Billie Jean King and Steve Carell as Bobby Riggs. Neither star bears much of a natural physical resemblance to the characters they’re playing, but thanks to the award-level makeup and wardrobe, and even more thanks to the remarkable performances, the transformation of these two is astonishing.

These actors aren’t doing impersonations. They’re creating full-fledged, complex characters — each flawed, each making missteps that hurt others, but both quite sympathetic and endlessly fascinating.

Whether you know every detail of the Riggs/King matchup and you remember watching it in the Astrodome or on TV (more than 90 million viewers tuned in for the live broadcast) or you’ve never even heard of this crazy but in its own way important chapter in sports history, Battle of the Sexes stands on its own as a finely tuned period piece, a vibrant comedy, an effective character study and, yep, an inspirational sports movie.

The year was 1973. The Women’s Liberation Movement had made strides on numerous fronts in the 1960s and early 1970s, but the aging-lion Mad Men males from the previous generation were still in firm control of everything from politics to business to the media to sports.

Including women’s tennis.

The prize money for the major events on the men’s tour was eight or 10 times as much as the pool for the women. When the leading players on the women’s tour rebelled and established their own tour, the sponsor was a cigarette: Virginia Slims.

Sometimes progress comes with a raised eyebrow.

Directors Valerie Faris and Jonathan Dayton (Little Miss Sunshine) and screenwriter Simon Beaufoy expertly alternate between the stories of Billie Jean King and Bobby Riggs, which take place on parallel tracks for the first half of the film.

As Billie Jean and World Tennis Magazine founder Gladys Heldman (Sarah Silverman, displaying her usual exquisite, acid-tongued timing) lead the charge for the female players to break away from the Association of Tennis Professionals and its chauvinistic leader, Jack Kramer (Bill Pullman), the late-middle-aged Riggs is adrift.

Bobby has an office at the company owned by his wealthy father-in-law, but there’s no real job to accompany the paycheck. He has promised his long-suffering wife, Priscilla (Elisabeth Shue), he’s given up gambling, but many a night he finds an excuse to get out of the house and go to the country club, where he hustles rich guys on the tennis court with a variety of outlandish proposition bets.

Before Battle of the Sexes gets to, well, the battle of the sexes, it’s a thoughtful and sometimes heart-wrenching study of two marriages in crisis. Priscilla doesn’t want to give up on Bobby, but she’s tired of the gambling and the Peter Pan act.

Meanwhile, Billie Jean, for the first time in her life, is acknowledging her sexual orientation. To the outside world, Billie Jean is happily married to the loving and loyal and supportive Larry (Austin Stowell), who also manages her career, but she has privately embarked on a passionate love affair with her hairdresser, Marilyn (Andrea Riseborough). To say this was a potentially career-destroying undertaking in the early 1970s is an understatement.

Bobby’s the one who comes up with the idea of a publicity stunt/exhibition match in which he’ll play the part of the sexist pig, grunting and bellowing about women as the inferior sex, taking on a top-ranked female player. First he takes on Margaret Court (Jessica McNamee), who was actually the top-ranked women’s tennis player in the world at the time, and he humiliates her, getting in her head from the start of the match and taking her down in straight sets.

Now Billie Jean, who had been adamantly opposed to taking the court against the Court Jester, feels compelled to accept Riggs’ challenge, lest he turn women’s tennis into a joke.

Battle of the Sexes is told mostly from the point of view of Billie Jean King. (If Carell gets the awards consideration he deserves, it should be in the supporting category.) Fresh off the Oscar for La La Land, Emma Stone does the best work of her career. Her Billie Jean King is a champion on multiple levels. It’s a spectacularly good portrayal of one of the greatest athlete/activists in American sports history, who displayed grace and dignity and a sense of humor and an enormous heart even when she was in the middle of a circus. — Chicago Sun-Times/Andrews McMeel Syndication

Rating: 3 and a half ★s
MTRCB Rating: PG

Japan embraces robot takeover, thanks to worsening labor supply

WHILE PEOPLE FRET about robots taking human jobs, machines in Japan are stepping in to fill vacancies amid the worst labor shortage in more than 40 years. That’s creating an opportunity for up-and-coming start-ups focused on automating warehouse tasks.

Nitori Holdings Co., Japan’s biggest furniture maker, last week deployed 79 robots to move around shelves filled with products at its Osaka distribution center. The company, which introduced the country’s first automated furniture warehouse in 1980, is looking to reduce its reliance on human labor.

Japan’s shrinking pool of workers helped push the number of jobs for every applicant to a ratio of 1.55 in October, the highest since 1973, according to the labor ministry. While companies such as Amazon.com, Inc. have been investing in warehouse automation for years, many Japanese logistics providers are now scrambling to catch up. To keep up with booming orders from e-commerce companies and customers expecting fast delivery, businesses in the country are turning to start-ups such as Ground, Inc. and Acca International Co.

“Running logistics as a labor-intensive business model is pretty much on its last legs,” said Hiratomo Miyata, the founder of Ground, whose software powers robots in Nitori’s distribution center. “What separates the companies is their ability to fill the gap left by human labor with technology.”

Miyata spent seven years at Rakuten, Inc., helming the Japanese e-commerce giant’s push to create a logistics business that can compete with Amazon. After a string of overseas acquisitions, Rakuten curtailed its ambitions and Miyata left the company a few years ago. He took a team of core members and founded Ground in 2015.

Ground, based in Tokyo, develops warehouse logistics software, using robots made by India’s GreyOrange, one of its investors. The robots are small motorized platforms that can move around entire shelves, making it easier to pack more goods into a warehouse and saving the time it takes for people to stock and retrieve inventory. Miyata says Ground’s system will let 30 people run a facility that previously required 10 times as many.

In June, Ground raised ¥1 billion ($8.9 million) from Daiwa House Industry Co., one of Japan’s biggest warehouse operators. Miyata plans to raise more money next year in a funding round that would include overseas investors, and is targeting an initial public offering in Tokyo around 2020.

“No one company can keep up with Amazon, that’s why you need a platform that many players can use,” Miyata said in an interview. “If Amazon is Apple’s iOS, we are building the Android.”

Amazon has been pouring money into its logistics network for years. The Seattle-based web retailer acquired Kiva Systems for $775 million in 2012 and now has more than 100,000 of its orange bots, which work in a similar manner to Ground’s machines. Buy something on Amazon’s website, and a robot in a warehouse somewhere whirs to life and carries a shelf holding your purchase within reach of an assembly line staffed by humans. People still do the picking, checking and packaging, but even their actions are simplified and optimized to increase speed and avoid error: box sizes are chosen automatically and flashing lights tell you which orders are urgent.

Tapping into an efficient warehouse and logistics system is a no-brainer for many companies selling their wares on the internet. But for brands looking to build their presence online, they face the daunting challenge of building their own logistics backend. That’s where start-ups such as Acca come in.

The company bills itself as an e-commerce factory. Clients such as Birkenstock and Puma ship products to Acca’s warehouse outside of Tokyo, where staff photograph and measure items, uploading images to the respective online stores 24 hours a day.

Hirokazu Kato, a former investment banker at Morgan Stanley, founded Acca in 2006. Daiwa House acquired the company for an undisclosed amount last month. Personnel expenses have grown about as much as 10% in the past few years, according to Kato. Warehouse operators also find it even more difficult to attract workers because of their remote locations, he said. Even Amazon has to try harder. Its online recruitment ads offer an hourly wage of ¥1,700, or 67% more than the average for Japan’s major cities.

Earlier this year, Tokyo-based Acca introduced 30 robots similar to those used by Amazon but made by China’s Geek+. The machines, which cost about ¥5 million apiece, have helped to triple each worker’s package output, and the company plans to increase the fleet to 100 by spring, Kato said.

“You can cut 20 to 30% in labor costs with these robots,” Kato said in an interview. “That’s an investment you can recoup in three years.” — Bloomberg

Mindanao Week of Peace: Caraga renews peace call amid threats

THE MINDANAO Week of Peace was concluded Wed., Dec. 6, in Butuan City with stakeholders in the Caraga Region renewing calls for peace despite the intensified aggression from the New People’s Army and the threat of violent extremism. Agusan Del Norte Governor Ma. Angelica Rosedell M. Amante-Matba, who chairs the Regional Peace and Order Council, emphasized the importance of unity in combatting insurgency in the region. “We in Caraga Region are pieces of a puzzle. It doesn’t matter if you’re from Agusan Del Sur, Agusan Del Norte, Surigao Del Sur, Surigao Del Norte or Dinagat Islands … We belong to one region. If we fit the (pieces of the) puzzle, we will be able to create a picture of true peace through cooperation and tolerance,” she said at the culmination event. Assistant Secretary Rolando B. Asuncion of the Office of the Presidential Adviser on the Peace Process (OPAPP), for his part, cited the importance of inclusivity in the peace process in his keynote message. “We at OPAPP recognize the diverseness of the people in Caraga… We have Muslims, Christians and Lumads (indigenous peoples or IP) coexisting in this melting pot of culture and religion. It is important for us to recognize that our identity as Filipino goes beyond diversity. There are no barriers if we are working for the common good of our nation,” he said. This year’s Mindanao peace week, which started Nov. 30, involved various activities in different parts of the southern island, including forums on countering violent extremism, ecumenical gathering in commemoration of the 500-year anniversary of Protestant reformation, IP dialogue, youth summit, and forum on extortion and revolutionary tax. — Mindanao Bureau

Durant powers Warriors, James dominates Kings

LOS ANGELES — Kevin Durant finished with 35 points, 11 rebounds and 10 assists for his ninth career triple double on Wednesday as the under-manned Golden State Warriors defeated the Charlotte Hornets, 101-87.

The Warriors won their fifth straight and the seventh in their last eight games despite playing without superstar Stephen Curry and forward Draymond Green.

Durant had 16 points in the first quarter, quickly setting the tone for the game at the Spectrum Center arena. He finished 13 of 28 from the field and hit three three-pointers.

Durant said his teammates did a good job of picking up the slack with Curry and Green out.

“I think everybody just rallied around each other, from the coaches to the players to the trainers, everybody,” Durant said. “The defense was on point tonight and we got off to a good start.”

Golden State coach Steve Kerr was impressed with the way Durant carried the team to victory.

“What a luxury to be able to just throw him the ball, especially with Steph out,” Kerr said. “He took over. It wasn’t really scripted, it was just a natural product of Steph being out, Draymond being out.

“He was attacking from the start. It was like a ‘I’ve got this.’”

The Warriors cruised to a 48-22 lead in the second quarter and never trailed, improving to 20-6 on the season.

Charlotte pulled to within seven points halfway through the fourth quarter, but the Warriors built the lead back up to 16.

The Warriors also got 22 points from Klay Thompson and 10 points from Nick Young.

Curry sat out the contest after suffering a sprained ankle in New Orleans two nights ago. Green was a late scratch because of a shoulder injury.

Charlotte was without their coach Steve Clifford, who missed his second game with an illness.

Kemba Walker had a team-high 24 points for the Hornets, who dropped to 9-14. Nicolas Batum scored 15 and Dwight Howard had 14.

Golden State led 26-18 after one quarter, 53-38 at halftime, and 79-68 after three quarters.

Elsewhere, LeBron James nailed a clutch three-pointer with 16 seconds left as Cleveland won a record-tieing 13th straight game with a 101-95 win over the Sacramento Kings on Wednesday.

James finished with 32 points, 11 rebounds and nine assists as the win equaled a Cleveland franchise record.

There were about five seconds left on the shot clock when time was called with 20 seconds left and Cleveland clinging to a two-point lead.

CHICAGO PLAY
Coach Tyronn Lue said he intended to call a different play in the huddle, but James wanted “Chicago,” a play named for James’ turnaround jumper at the buzzer in game four of the 2015 conference semifinals against the Chicago Bulls.

“So I said, ‘OK,’” Lue said. “We got it to him, and he made a big shot. That was a huge play for us to put us up five.”

The Cavaliers can set a franchise record win streak on Friday against the Indiana Pacers.

In New Orleans, DeMarcus Cousins had 40 points and 22 rebounds and Jrue Holiday tallied 27 points and seven assists to lift the New Orleans Pelicans to a 123-114 win over the Denver Nuggets.

The Pelicans, who were playing without forward Anthony Davis, erased an early 10-point deficit by getting the ball inside to Cousins.

Davis missed his third straight game with a strained adductor.

Cousins finished just short of his season high with 41 points and 23 rebounds he recorded in a 114-106 road victory over Sacramento on Oct. 26.

The Nuggets were led by Gary Harris with 24 points, but they dropped to 3-9 on the road.

The Pelicans put the game out of reach with a 13-0 run in a three-minute span in the fourth quarter to take a 114-96 lead with 6:38 left. — AFP

DTI backs House version of automobile excise tax

THE Department of Trade and Industry (DTI) is lobbying for the bicameral conference committee reconciling the tax reform legislation to pass the House of Representatives’ version of the car excise tax, which calls for a longer transition period and has more brackets compared to the version proposed by the Senate.

Trade Secretary Ramon M. Lopez told reporters that the DTI’s preference for the House version was due to the smaller increase in excise tax for cars under P1 million, the category promoted by the Comprehensive Automotive Resurgence Strategy (CARS) program, which seeks to encourage greater domestic manufacturing activity in the sector.

“It might impact a bit of course the volume that [these car companies] should be selling. For our part, TRAIN (Tax Reform for Acceleration and Inclusion) is okay, the House version, we’re okay with it,” he added.

The excise tax on cars forms part of the first package of the comprehensive tax reform program. If passed this year, the car excise tax will be in force by January.

The House version of the tax has five brackets as opposed to the Senate’s two brackets, and also calls for a two-year implementation period to ease the impact of the increase in excise taxes.

On Wednesday, DTI released a position paper on the effects of the car excise tax on the models produced under the CARS program.

“It is also important to note that the narrowing of the gaps in prices owing to the reduced number of tax tiers might negatively affect the demand for the CARS participating models. This has not yet been included in the present analysis due to absence of sufficient data,” the paper read.

In the Senate version, the proposed increase in the excise tax will raise the price of the Mitsubishi Mirage — one of the models enrolled in the CARS program — by 7.64% to 7.8%, while the House version’s impact is 1.92% to 2.08%.

The Toyota Vios 1.3-liter model — the second participant in the CARS program — would see about 7.2% price increase on average under the Senate version of the tax while the House version bumps up the price by an average of 2.5%.

Mr. Lopez said that while the department favors the House version, what matters is the manufacturing activity generated from the automotive industry.

“In the end, it’s the manufacturing activity that you’re creating. When they are successful, it means that the manufacturing activity will grow, creating more jobs, creating more local content,” he added. — Anna Gabriela A. Mogato

DoE targets 25% of reserve power buffer

THE Department of Energy (DoE) said the country needs to build a buffer of reserve power that is at least 25% of demand as the agency’s top official made his annual call for businesses to invest in the energy sector.

“We want to ensure that we have enough supply ahead of demand. This is why the DoE is institutionalizing a 25% reserve requirement to ensure that we are on track to reliably meet the 17,338 megawatts (MW) in additional capacity required by 2030 to meet our growth needs,” Energy Secretary Alfonso G. Cusi told participants of an industry forum at the Makati Shangri-La Hotel, Manila.

“Further 43,765 MW is needed by 2040,” he added.

Based on latest DoE data, demand for power in the first half peaked at 13,684 MW or nearly 89% of the 15,393 MW available capacity during the period.

Mr. Cusi said his proposed buffer should keep supply ahead of demand, enabling the power sector to provide reliable, secure, sustainable and affordable energy to consumers.

“When it comes to improving our energy security, our transmission policy will play a critical role,” he said.

He said aside from the importance of keeping existing infrastructure at pace with the digital age, it was also  important to heighten accessibility, pointing to the continued disconnect between Mindanao and the power grids in Luzon and the Visayas.

“We want transmission projects to be completed at the soonest possible time. Our goal being to improve access and distribution systems,” he said.

“I’m pleased to say after a long delay that we have already started the ball rolling. We are fast-tracking the interconnection projects such as Visayas and Mindanao, and for the small island provinces. This will allow us to make the most [of] Mindanao’s excess supply,” he said.

Mr. Cusi said it was vital for privately owned National Grid Corp. of the Philippines (NGCP) “as the national transmission operator [to] responsibly play its role in ensuring this access and makes the necessary investments.”

NGCP in September secured provisional authority from the Energy Regulatory Commission to implement the interconnection between the Visayas and Mindanao power grids for around P51.7 billion.

“Filipinos have waited too long. As the President has promised, we want to achieve total electrification by the end of this term,” Mr. Cusi said.

Aside from assuring investors that power supply would be adequate, he also noted that Executive Order No. 30 “will change the way we process energy projects.”

“No longer will it take up to three years for bureaucrats to respond to a proposal to a project. Instead, these agencies must act on a proposal within 30 days, failing which the proposal is deemed approved,” he said.

In his speech, Mr. Cusi told investors to take stock of the dynamic shift in the supply of global liquefied natural gas (LNG).

“The future is such that global markets will find themselves with abundance of LNG with global supply on course to increase by 50% between 2014 and 2021,” he said.

“Given this surge, it has raised questions of how the Philippines intends to place itself amid the opening of this new channel of LNG supply,” Mr. Cusi said.

He said there is an opportunity for the Philippines to benefit from this due to its strategic location astride key shipping lanes.

“If we plan ahead, we can be the gateway for future gas exports into the Southeast Asia,” he said.

On Monday, the DoE published the first draft of the Philippine natural gas regulation, which the department envisions to transform the country into an LNG trading and transshipment hub in Asia-Pacific. Mr. Cusi said that equally important to promising grand projects is drawing the investments to make them a reality.

Sought for comment, industry stakeholders generally responded positively to the DoE’s assurance to investors and its call for investments.

Guillermo M. Luz, private sector co-chairman of the National Competitiveness Council, said he views Mr. Cusi’s call for reserve power as a signal of confidence in strong economic growth.

“To be able to spur the type of investments to come in and fill the requirements, including the 25% reserves, I guess some things need to be done including streamlining licensing procedures for building and commissioning power plants,” he said.

Angelito U. Lantin, senior vice-president at distribution utility Manila Electric Co. (Meralco) said: “It’s good that we are targeting 25% reserve but how do you implement it?”

“How do you make sure that you have it in the system?” he added. — Victor V. Saulon

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