China backs Myanmar’s ‘safeguard stability’ efforts

September 13, 2017 | 12:02 am

BEIJING — China said Tuesday it backs the Myanmar government’s efforts to “uphold peace and stability” in Rakhine state, where a military crackdown has sent more than 300,000 Rohingya Muslims fleeing for Bangladesh.

Foreign ministry spokesman Geng Shuang made the comments as the United Nations Security Council prepared to hold an urgent meeting on the crisis on Wednesday.

Rohingya militants attacked police posts in late August, prompting a military backlash that has sent nearly a third of the Muslim minority population fleeing to Bangladesh.

International pressure on Myanmar’s government has increased as UN rights chief Zeid Ra’ad Al Hussein said the violence seemed to be a “textbook example of ethnic cleansing.”

But UN diplomats have said China, one of Myanmar’s main trade partners, has been resisting involvement by the top UN council in addressing the crisis.

“We condemn the violent attacks which happened in Rakhine state in Myanmar,” Mr. Geng told a regular news briefing.

“We support Myanmar’s efforts in upholding peace and stability in the Rakhine state. We hope order and the normal life there will be recovered as soon as possible,” he said.

“We think the international community should support the efforts of Myanmar in safeguarding the stability of its national development.” — AFP

DBP looking to unload MRT-3 interest

September 13, 2017 | 12:02 am

THE Development Bank of the Philippines (DBP) is interested in exiting its investment in the Metro Rail Transit (MRT)-3.

“..It is in our books and we will be very interested to unload it,” DBP President and CEO Cecilia C. Borromeo told reporters on Monday at the sidelines of the signing of a memorandum of understanding between the DBP and the Department of Transportation (DoTr) for the funding for the Public Utility Vehicle Modernization Program (PUVMP).

Ms. Borromeo said however that as a corporation under the supervision of the Department of Finance (DoF), the bank will be awaiting official guidance from the agency.

“The DoF is taking the lead now… We defer to DoF,” Ms. Borromeo said.

Landbank and DBP own a combined stake of about 80% in the MRT-3.

Ms. Borromeo said the banks will study how to exit the investment without incurring losses.

“There are various ways of unloading it. Of course there is an option for a haircut or loss and we will want to avoid that. But there are other options that will make us [realize a gain]. That is what we are trying to pursue together with the DoF,” Ms. Borromeo said.

Operations and maintenance may soon be privatized, with the Light Rail Manila Corp. (LRMC) consortium having submitted to the government a comprehensive rehabilitation proposal for the MRT-3. Currently, MRT operations are run by the government, while maintenance is handled by the private sector. Filipino-South Korean joint venture Busan Universal Rail, Inc. currently has the contract with government to maintain the MRT-3.

LRMC, a consortium of AC Infrastructure Holdings Corp., Metro Pacific Infrastructure Corp., and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., included in the proposal provisions for the planned buyout of the government stake and offers the services included in the concession agreement with the government.

LRMC CEO Rogelio L. Singson recently said the LRMC hopes that its proposal is approved in four to six months. — Patrizia Paola C. Marcelo

Local shares to track Wall St. amid lack of leads

September 13, 2017 | 12:01 am

TRADING at the Philippine Stock Exchange was suspended on Tuesday as clearing and settlement operations were halted after the government closed its offices because of bad weather.

Yesterday would have been the first trading day after the United Nations (UN) voted on new sanctions against North Korea, which was short of an oil embargo. Analysts have been saying the actions of Pyongyang have left investors nervous in the past days.

“These may put pressure on North Korea to ease tensions and may calm markets, including (the) Philippines,” said Luis A. Limlingan, business development head at Regina Capital Development Corp.

Bloomberg reported on Tuesday that the UN Security Council approved new sanctions aimed at punishing North Korea for its latest missile and nuclear tests after the US dropped key demands in order to win support from Russia and China.

The 15-member Security Council passed the resolution unanimously on Monday after a week of talks that began when Kim Jong Un’s regime tested its most powerful nuclear bomb.

The resolution seeks to cut imports of refined petroleum products to 2 million barrels a year, ban textile exports and strengthen inspections of ships that are believed to be carrying cargo in breach of sanctions.

“I think it will be a nonevent for Philippine stocks. I expect our market to be strong on the back of a rebound in US stocks as Hurricane Irma weakened by the time it hit Florida,” said Miguel A. Agarao, vice-president of Philequity Management, Inc.

2TradeAsia, online arm of F. Yap Securities, Inc., earlier said investors would focus on the UN members’ vote on whether to support the sanctions against Pyongyang after its “unabated” missile tests.

On Monday, the Philippine Stock Exchange index climbed 26.56 points or 0.33% to close at 8,049.31. The broader all-shares index also rose by 15.31 points or 0.32% to 4,778.61. Except for financials and the mining and oil counter, all the other sector indices finished on the positive side.

Regina Capital’s Mr. Limlingan said: “Local optimism may also be underpinned by Hurricane Irma delivering a less forceful hit on Florida than expected and North Korea failing to conduct another nuclear missile test over the weekend.”

“However this may change depending on how US once again performs tonight,” he said on Tuesday.

Irma, once a Category 5 hurricane, hit the Florida coast over the weekend. It has gradually lost strength and has been downgraded to a tropical storm while moving its way across the land.

Other Southeast Asian stock markets inched up on Tuesday, with Malaysian shares hitting their highest in over two months, tracking a rally in Asian peers as Hurricane Irma weakened and concerns over North Korea eased.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose as much as 0.3% to their highest in nearly 10 years. — Victor V. Saulon with Reuters

How government can help expedite entry of electric cars

September 13, 2017 | 12:01 am

Last week, I attended the global launch of the second-generation Nissan Leaf in Japan. As Filipino journalists were invited to the event, I won’t fault you for assuming that the world’s best-selling all-electric car is on the way to our market. I hate to burst that bubble, but no, it isn’t.

As you read this, there isn’t even an official facility to accommodate fully electric private cars. Electric public-utility transport vehicles have been allowed on our roads, but we have yet to see a single legitimately registered private EV. Save for Manuel V. Pangilinan’s Tesla Model S and perhaps a handful of demo units used by industry players, these environment-friendly movers remain an electric dream in a country notorious for expensive electricity.

So, when might Nissan Philippines bring in the Leaf? The company’s president and managing director, Ramesh Narasimhan, allowed an almost imperceptible smile that looked like both optimism and despondence. “Before we could even think of selling the Leaf, the country needs to first address the basic challenges of motoring,” he pointed out.

Those challenges — typical observations in the eyes of an expatriate living in Metro Manila — are the lack of driver education, overpopulation (in the National Capital Region) and the abysmal infrastructure. I gather that what Mr. Narasimhan was saying is this: Until the Philippines fixes these motoring problems, car companies won’t even entertain inquiries about their electric offerings.

Not that Nissan Philippines has any to begin with. The executive answered in the negative when asked if his dealership network had relayed to him any customer interest in the Leaf. “No, not really,” he replied matter-of-factly. “But our desire to bring the car in doesn’t depend on market demand, but on our belief that it’s truly good for everyone.”

It’s easy to see why electric cars fail to stir any excitement in a nation obsessed with digital and wireless devices. The Philippines still doesn’t have the two crucial requirements needed to make EV models moderately accepted in any market. “For an electric car to be viable, you need government incentives and infrastructure,” stressed Nissan Thailand president Antoine Barthes, who made Filipino journalists drool (and their Thai counterparts rejoice) by announcing that the all-new Leaf was coming to Thailand.

Without incentives or tax breaks from government, green vehicles will be unreasonably prohibitive alongside conventionally powered cars. A smallish Toyota Prius C hybrid hatchback already costs P1.65 million, and it doesn’t even have fully electric propulsion. For that price, I’d get two units of the Nissan Juke instead. To hell with hydrocarbons.

Also, we still don’t have accessible charging stations for EVs. Meralco showed off a prototype four years ago, and Bonifacio Global City has installed a couple of EV charging slots in one of its green buildings, but that’s about it. Sure, the new Leaf now has a single-charge driving range of 400 kilometers, but with the kind of traffic gridlock we have in Metro Manila, we will need charging stations located at Jollibee parking lots to make it through a workweek.

But even without these two requirements for now, government can already start preparing Filipinos for the arrival of electric cars with something as simple as an awareness campaign. There already exists a group called Electric Vehicle Association of the Philippines, which has been relentlessly lobbying government agencies for a concrete EV framework, but lawmakers need to match the group’s enthusiasm.

“The government has to show the way,” Mr. Narasimhan told me. “They can begin with the airport, for instance. Make the airport fleet all-electric. Make it an EV showcase for everyone to see. Or the President can make Davao City an EV hub. You can’t accomplish anything with just 10 units or so running around here and there. People want to see real-world results in concentrated areas.”

To be fair to the Philippine government, overall global EV acceptance isn’t that high either. With the exception of the United States, Japan and some European countries, electric vehicles continue to struggle popularity-wise next to regular cars equipped with internal-combustion engines. I asked Nissan Motor Company executive Daniele Schillaci, in charge of global marketing and sales for the automaker’s zero-emission vehicles, how many more years before EVs are widely embraced by car buyers around the world. “The tipping point will be around 2025,” he estimated.

That’s still eight years from now. Plenty of time for our politicians to stop their petty squabbles and start laying the groundwork for an EV future.

You may e-mail the author at vbsarne@visor.ph.

Tropical apocrypha: 100 years of NJ

September 13, 2017 | 12:01 am

By Juan EY Arcellana

HAVING BEEN invited to speak by one of the Graphic editors at the Nick Joaquin literary awards on the birth centennial of the national artist, some two-minute spiel or anecdote about the man occasions this short piece, being unsure of making the trip across town for the event as I had a separate paper to help put to bed at Port Area.

In 1974, weeks before leaving for the US as a Youth for Understanding scholar, I was sent by my father to go along with Nick – godfather of my elder brother Joey – to a tailor and have my teenage self fitted for a suit, or Americana as it was called in those days. Linea Italiana in Cubao was owned by an Indian, the shop located near the New Frontier theater. And what frontiers awaited on an afternoon with NJ.

After the tailor’s (who in no way looked like Thomas Mann), there was a movie to be taken in where we got our first glimpse of peaches in the early morning sun, a quick greasy but tasty meal at a panciteria on one of the side streets of old Cubao, and finally a few beers at the a-go-go joint Alibangbang across EDSA, right underneath the overpass leading to Mt. Arayat street where the jeepneys back to Philcoa were.

It was not yet evening and at the already darkened table the girl’s name was Olga, same as a high school crush.

Years later, NJ of course would be proud to proclaim that the first time this writer got drunk was under his auspices. At Philcoa when he was about to deliver me back to my dad, I left him unloading his bladder by a street post like a guardian angel, and boarded a tricycle along with a female passenger as the beer worked its way in my young system, thinking that like one of Joaquin’s characters Candido, I might go for lost in an unplanned apocalypse beneath a drizzling sky.

Another fast-forward and with my wife pregnant with our first child, I was sent on an extra assignment by a Sunday magazine to interview Nick at his hangout along Padre Faura, the Calle 5 where an all-girl rock band was delivering the goods such as “Wooly bully” and “Till there was you.” He was with his best friend, Elena Roco, and I told him that I had just been dropped off at the corner by the Dumaguete-based writer Cesar Aquino who was on his way to the pier to board a ship headed south.

“Huwag na huwag mo isasama yung impakto na ’yon dito,” he said, roughly meaning I should never tag along that terrifying phantasm to his fave haunts.

That became a standard line among writers who don’t want to get too close or familiar with other phantasms, or impaktos – let them get lost.

As in that other line, which am not sure if this is apocrypha, where at an art gallery a Tagalog writer approached NJ to tease him to order drinks all around, “Nick, magpainom ka naman!”

To which the national artist deadpanned, “Painumin mo titi mo,” let your cock have a drink, sure looks thirsty.

Philippine trade year-on-year performance

September 13, 2017 | 12:01 am

FASTER merchandise export growth in July, coupled with a bigger decline in imports, narrowed the country’s trade balance to its smallest deficit in 17 months, the Philippine Statistics Authority (PSA) reported yesterday. Read the full story.

Celtics party

September 13, 2017 | 12:01 am

Back in March, Celtics team president Rich Gotham spoke about the possibility of the franchise formally celebrating the 10^th anniversary of its last championship sometime during the 2017-2018 season. He disclosed that no actual planning to see it through had been made, but, “presumably, we’ll invite the guys back.” Needless to say, one of those “guys” happens to be Ray Allen, who remained on shaky footing with the other members of the Big Four and, by extension, the rest of the squad.

To recall, the title run was precipitated by the offseason acquisition of Allen and recent National Basketball Association Most Valuable Player Kevin Garnett, who wouldn’t have agreed to the trade netting him had the former not already made the jump. Together with resident stars Paul Pierce and Ramon Rondo, they went on to forge the biggest single turnaround in league history. As things turned out, it would be their lone turn at the top. Even as they made it to the Finals anew in 2009 and stayed relevant thereafter, injuries hampered their competitiveness and ultimately had them surrendering the throne.

By 2012, the advancing ages of the Celtics’ marquee names’ had head coach Doc Rivers contemplating changes in his rotation, including relegating Allen to a sixth-man role. The impending move didn’t sit well with the 10-time All-Star, who instead opted to sign with the rival Heat, thus incurring the ire of former teammates. Such was the ill will that it permeated the mini-reunion of the championship figures during an “Area 21” segment of Inside the NBA in May. If nothing else, the sentiments aired during the episode underscored the extent of the hard feelings.

Apparently, however, there’s hope. Over the weekend, Pierce Instagrammed a picture showing him and Allen side by side during a lull in an event they both attended in Shanghai. He captioned his post with “Time to get the band back together” and tagged Garnett and Rondo. For good measure, he added the hashtag “burythehatchet.” To be sure, he always seemed the most reconciliatory of the bunch; in a June interview, he expressed the belief that, “eventually, it’s going to smooth over. We’ll all sit down one day, probably have a cigar, glass of wine, and talk about it.” Parenthetically, there can be no discounting his capacity to influence Garnett and Rondo.

Given the turn of events, the informal picnic and the formal celebration of the 2008 champions may yet be complete. Either will be dull without Allen. As Pierce argued, “#onceacelticalwaysaceltic.” He should know. He became trade bait in 2013 and played for three teams in the ensuing four seasons, only to ink a one-day contract with the Celtics in order to retire in green and white. Clearly, they all owe each other for the rings. And they all owe each other respect.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

The Marcos quest for political power despite electoral integrity

September 13, 2017 | 12:01 am

The recent ruling of the Presidential Electoral Tribunal junking the first cause of action of the electoral protest of former senator Bongbong Marcos has dashed hopes of the defeated vice-presidential bet to tarnish and question the integrity of the 2016 elections.

In his poll protest, Marcos sought to cast doubt on the integrity of the whole electoral exercise by questioning the authenticity of the Certificates of Canvass generated by the Consolidation and Canvass System. With his poll protest, the son of the late dictator seeks to seize political power by discrediting the whole automated election system and resorting to the dreaded manual recount of votes.

Arguably, the nation had taken great strides towards preventing traditional modes of cheating perpetrated with impunity during the era of manual elections. Moreover, there has been a huge decline in election-related violence since automated elections was implemented in the Philippines. Our democracy has been fully exercised, with voters confident in the results of the process and able to see that the results of the 2016 elections accurately reflected the will of the people.

The world saw more than 44 million Filipinos troop to their respective polling precincts and make their voices heard through a process that is a cornerstone of our democracy. While some groups have aired various concerns on the automated election system, with allegations that question the credibility of the elections, it’s important to take note of actual verifiable facts.

First, the number of Filipinos who voted for their next local and national leaders translates to an 81.95% turnout, one of the largest in recent memory.

Second, the elections saw the largest deployment of Vote Counting Machines (VCM), not only in the Philippines and the region but the world. Despite glitches in some machines, these occurrences were statistically negligible and do not detract from the efficiency of the polls in general.

Third, it is further testament to Comelec’s competence that when it was ordered by the Supreme Court to print out voter receipts, it complied satisfactorily and reconfigured almost 100,000 VCM in just over a month. As a result, over 40 million vote receipts were printed. The polls also required the recruitment, hiring, and training of more than 45,000 field technicians in less than three months and the printing of 56 million ballots in 49 days, more feats of technical flexibility. Come election day, Filipinos created one of the largest paper audit trails in the history of elections, with over 43 million voter-marked ballots and corresponding voter receipts, as well as over 2 million count reports, all available for auditing.

Fourth, when the voting was done, the Commission was able to proclaim an astounding near-perfect 99.9% of all 18,000 or so elective positions 10 days after the elections. By election night, some 86% of all votes had been transmitted, a remarkable accomplishment for an archipelago with a big diasporic population. Compare this to 59% in 2010 and 57% in 2013. That more than 20,000 losing candidates conceded by election night further attests to a stable belief in the polls’ credibility. Foreign observers and governments were likewise impressed. Clearly, faster results mean less instability and inspire greater confidence in the process.

Finally, the random manual audits completed — 715 precincts — went beyond the required one per legislative district.

An election that is hailed as one of the most successful and credible in history should be above senseless politicking. Given the record transparency of the process, any allegations should be based on verifiable facts, not evident and discernible political spin. The automated election system has served its purpose, tabulating results correctly and efficiently without human intervention.

This early, the poll protest of former senator Marcos has proven two things. First, the automated election system has been widely accepted and perceived to be credible. Second, former senator Marcos seems to be living in his own bubble, that as he questions the legitimacy and integrity of the vice-presidential results, he tends to forget that the mandate of his own mother and sister in the North came from the very same automated election system that he wants to depict as a failure and defective.

Claudette Guevara is currently the Secretary-General of DemocracyWatch.

Cebu prepares to sell Balili lot to Naga City

September 13, 2017 | 12:01 am

CEBU GOVERNOR Hilario P. Davide III said he is in favor of selling to Naga City the controversial Balili property, which he said has no use to the provincial government. Mr. Davide will inform the Economic Enterprise Council (EEC) about the planned sale in a meeting next week. If the EEC approves the proposal, it will have to discuss the price for the 25-hectare property. The purchase of the property during the time of former governor Gwendolyn F. Garcia became controversial after the Department of Environment and Natural Resources discovered that 19 of the 25 hectares of land were under water. The province bought the property for P98.9 million and spent another P27 million for backfilling. Ms. Garcia is facing charges over the matter, but Mr. Davide said he is hopeful that the pending case will not affect the planned sale. The Naga City government plans to develop the property into an economic zone. — The Freeman

See related story on https://goo.gl/PMvZWA

Primehomes adds 2 towers to QC project

September 13, 2017 | 12:01 am

PRIMEHOMES Real Estate Development, Inc. has started construction for the second and third buildings at Larossa in Capitol Hills, its urban botanical community in Quezon City.

In a statement issued on Tuesday, the company said the construction of the two buildings comes after the completion of the first building called Camia, which is now ready for occupancy.

The two buildings, to be called Magnolia and Sampaguita, will house 10 storeys each, including a floor for basement parking and a roof deck. This will form part of Primehomes’ 3.6-hectare mid-rise residential community.

Primehomes engaged contracting companies Design Coordinates, Inc. and Metro Stonerich Corp. for the towers’ construction.

Larossa will offer a total of 2,869 units, delivering an Asian tropical theme for the entire development. Units range from 23.4 square meters (sq.m.) for studio units, 28.5 sq.m. to 36.04 sq.m. for studio premiere, and 31.2 sq.m. to 38.74 sq.m. for one-bedroom units.

Among its amenities include a swimming pool, gardens, sun deck and a clubhouse called The Grove.

The company’s other projects include The Green Line City, an eight-hectare mixed-use land development in Taguig City, which will include residential, office, and recreational facilities. — Arra B. Francia

Most Asian currencies weaken as North Korea concerns ease

September 13, 2017 | 12:01 am

MOST ASIAN currencies weakened on Tuesday as the US dollar strengthened for a second day as Hurricane Irma proved not as destructive as first feared and anxiety over North Korean weapons tests receded.

The dollar held on to gains after Hurricane Irma was downgraded to a tropical storm early on Monday, while risk appetite recovered after North Korea opted not to fire missiles or test nuclear weapons on Saturday as some had feared.

Investor focus has also shifted to a batch of data from the United States due later this week.

The easing of concerns over North Korea pushed up South Korean equities and the won, which was among the few gaining currencies in the region.

South Korea’s benchmark KOSPI stock index rose about 0.2% in tandem with broader Asia shares excluding Japan.

The won was about 0.2% firmer, after closing slightly weaker in the previous session, helped by the United Nations Security Council unanimously stepping up sanctions against North Korea on Monday, imposing a ban on the country’s textile exports and capping imports of crude oil.

Meanwhile, the dollar rebound reflected in the People’s Bank of China lowering its official yuan midpoint to 6.5277 per dollar, snapping 11 days of stronger fixings.

The yuan was 0.3% lower after it weakened above the psychologically important level of 6.5 in the previous session when the Chinese central bank relaxed controls on capital outflows.

Markets in the Philippines were closed after the government suspended financial trading because of flooding.

RINGGIT AND RUPIAH
The ringgit and the rupiah were about 0.2% and 0.4% weaker as the currencies consolidated on the back of gains in the past few sessions.

The ringgit, which weakened marginally in the previous session, had risen close to 2% over last week, while the rupiah had strengthened more than 1% over the same period.

The rupiah was at its highest level against the dollar in 10 months on Monday.

“The Indonesian rupiah still looks pretty solid,” said Andy Ji, Asia currency strategist at Commonwealth Bank of Australia.

“It looks pretty good because current account has improved so much, which is a big plus, and capital inflows into the local market have been solid the whole year.”

Mirza Adityaswara, Indonesia’s central bank deputy governor, said on Monday that the country expected post a balance of payments surplus of $9 billion this year, higher than forecast earlier but less than 2016’s surplus. — Reuters

Trump hosts scandal-hit Malaysian PM Najib in White House

September 13, 2017 | 12:01 am

WASHINGTON — US President Donald Trump will on Tuesday host Malaysia’s prime minister in the White House for wide-ranging talks, giving his guest a welcome respite from a spiraling corruption scandal.

Prime Minister Najib Razak will be greeted in the Oval Office, for talks the White House says will focus on terrorism, trade and Asian maritime disputes.

“The United States and Malaysia have had a 60-year relationship and partnership built on common economic and security interests, and that continues,” said press secretary Sarah Huckabee Sanders.

She listed “strengthen counterterrorism cooperation,” halting the Islamic State group, “addressing North Korea” and “making sure that we promote maritime security in the South China Sea” as topics for discussion.

Mr. Trump is also likely to reiterate thanks for Malaysia’s efforts to assist the USS John S. McCain, which collided with a tanker as the destroyer was on its way to Singapore, tearing a huge hole in the hull and leaving 10 sailors dead.

Mr. Najib faces allegations that billions were looted from a sovereign wealth fund, 1Malaysia Development Berhad (1MDB), in complex overseas deals that are being investigated by authorities in several countries, including the US.

Both the prime minister and the fund deny any wrongdoing. The Justice Department has filed civil lawsuits to seize assets, from high-end real estate to artworks, it says are worth about $1.7 billion.

Ms. Sanders refused to say whether that case would come up.

“Look, we’re not going to comment on an ongoing investigation being led by the Department of Justice,” she said. “That investigation is apolitical and certainly independent of anything taking place tomorrow.”

One Justice Department investigation the White House has been willing to comment on is that investigating the Trump campaign’s ties with Russia.

Mr. Trump has also denied any wrongdoing. — AFP