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Infrastructure spending target doubted

AN international think tank doubts that the government plan to sharply raise infrastructure spending is doable, citing the slow rollout of projects and concerns about the administration’s change in financing mode.

Rejecting the rude and the bully in politics

Trade Tripper
Jemy Gatdula

A development that thinkers like Fr. Ranhilio Callangan-Aquino and Dr. Tony La Viña has constantly pointed out is the poisoned atmosphere of public discourse. The observation is practically self-evident and one sees that most clearly in social media today.

Tiger Woods outside top 1,000 for first time in new rankings

LOS ANGELES — Tiger Woods has dropped outside the top 1,000 players in the world for the first time in his professional career, latest rankings showed Monday.

Harley-Davidson’s new Street Rod roars into Manila

Handle Bar

HARLEY-DAVIDSON earlier this year introduced the new Street Rod, derived from its Street line. Last week the distributor of the brand in the Philippines announced the arrival of the new model in the country.

DTI, DoLE to certify labor practices of textile firms tapping GSP+

THE Department of Trade and Industry (DTI) is set to sign a joint order with the Department of Labor and Employment (DoLE) that will highlight the country’s insistence on compliance with global labor standards in the textile industry.

“DTI and DoLE will issue a joint department order on the certification of labor standards compliance for garments and textile industry exporters who will take advantage of [trade] preferential schemes,” said Ceferino S. Rodolfo, Trade undersecretary and managing head of the department’s investment promotion arm Board of Investments.

Mr. Rodolfo told reporters the move is in effect targeted towards the Generalized System of Preferences Plus (GSP+), a preferential tariff scheme that allows the Philippines to export more than 6,200 products to the European Union’s (EU) member countries tariff-free.

He said the joint order should be issued before the end of July as it had been prepared and was awaiting the signature of DTI Secretary Ramon M. Lopez and DoLE Secretary Silvestre H. Bello III.

On Tuesday, Mr. Lopez and Mr. Rodolfo, along with Philippine Special Envoy to the EU Edgardo J. Angara met in Makati City with members of the EU Parliament led by Soraya Post “to freely exchange views on the political and economic fronts” of the Philippine-EU relations.

Mr. Rodolfo said the joint order will require garment and textile exporters to the EU using GSP+ to first secure certification from the government agencies that they are compliant with local labor regulations.

“We’re self-imposing this,” he said, adding that no other country enjoying the same preferential treatment is issuing certification that their export goods were not produced in sweatshops and those who made them were paid the right wages. It will state that no child workers were employed by the exporter.

He said the scheme will certify that union-busting is not practiced by the exporter and that their workers have a right to self-organization.

“We want to take the offensive and highlight [that in the Philippines] workers are being treated decently,” he said.

Mr. Rodolfo said the department was awaiting a response from the EU on the country’s report regarding four issues identified by the bloc: the extrajudicial killing of journalists, Lumad rights, the rights of political prisoners and labor rights.

“We have gone over and beyond these international commitments,” he said.

Separately, the Trade department said in a statement on Tuesday that Mr. Lopez during the meeting “stressed that President Rodrigo R. Duterte’s anti-drug campaign and state efforts to apprehend illegal drug elements have always been anchored on the tenets of human rights and the rule of law.”

He also pointed out that majority of Filipinos “feels safer today and approves of the President’s leadership.

“The meeting also touched on the need for EU to engage the Philippines through the GSP+ as it is precisely a meaningful program assistance developed by EU to help a trade partner institute socioeconomic reform resulting from greater trade and economic activities. Such also increase income in rural communities, as well as in areas experiencing conflicts.”

Mr. Lopez also urged the EU to maximize its economic relations with the growing Philippine domestic market and its free trade access to the Association of Southeast Asian Nations and its dialogue partners. — Victor V. Saulon

Many dev’t goals missed in last 6 years — scorecard

By Leo Jaymar G. Uy
Senior Researcher

A GOVERNMENT SCORECARD that details the Philippines’ progress in meeting economic development targets in the last six years showed that the country failed in many of them.

Lepanto Mining eyes P1.75B from stock rights offer

LEPANTO Consolidated Mining Co. plans to raise P1.75 billion via a stock rights offering to fund the further exploration and development of its copper-gold project in Benguet.

LepantoIn a disclosure to the stock exchange, Lepanto said that its board approved on Monday the offer of one share for every 4.685 shares pegged at P0.15 apiece or a total of 11,678,967,888 shares from the company’s unissued authorized capital.

Funds from the stock rights offer will be used for the exploration and development of the copper-gold project in Mankayan, Benguet, as well as the purchase of mining equipment, and settlement of debt and pension obligations.

The record and offer date will be determined after Lepanto secures the Philippine Stock Exchange’s approval for its listing application.

Lepanto is set to commence drilling this quarter for copper concentrates following a two-year drilling, metallurgical tests, and rehabilitation program of its copper floatation plant.

The plant is also expected to produce gold and silver-bearing copper concentrates while Lepanto’s carbon-in-pulp plant will continue to produce gold.

The firm is aiming to boost output at 1,900 tons per day by year end and 3,000 tons per day by 2019, from the present 1,500 tons per day in both its Victoria mine and gold-copper project.

Lepanto started exploration in October 2015 and has so far completed 41,000 meters of underground drilling to evaluate the copper-gold project resources at the former enargite mining area.

Trading of Lepanto shares dropped 1.53% to P0.193 apiece on Tuesday. — Janina C. Lim

IC studies proposal to lower insurance costs for jeepney operators

THE Insurance Commission (IC) is studying the proposal to trim premiums imposed on comprehensive motor insurance, and allow insurance firms to provide credit to jeepney operators, amid the government’s jeepney modernization program.

In a statement on Tuesday, Insurance Commissioner Dennis B. Funa said transport group Kilusan sa Pagbabago ng Industriya ng Transportasyon (KAPIT) has requested the lowering of insurance premiums charged by insurers for comprehensive motor vehicle insurance to reduce costs of jeepney operators.

“As to the proposal on the lowering of insurance premiums, the IC was informed by KAPIT that it had spoken with several insurance companies which manifested their willingness to explore ways to make motor car insurance products more affordable,” he was quoted saying in a statement.

In addition, Mr. Funa said KAPIT also proposed non-life insurance firms to be allowed to extend credit to jeepney operators, transport groups, cooperatives, and transport management companies, with these loans to be considered as “admitted asset” of the insurer.

“KAPIT manifested that the modernization program will require huge amount of funding. In order for jeepney operators to avail of new vehicles, KAPIT is proposing that insurance companies be allowed to extend loans to jeepney operators. With this proposal, jeepney operators will have more options on where to source the funding for the acquisition of new vehicles,” he said.

The IC is set to meet with KAPIT and the Philippine Insurers and Reinsurers Association, Inc. (PIRA) to discuss the former’s proposal.

According to the Insurance Commissioner, the PIRA has expressed “willingness to lower the premiums being collected from jeepney operators but subject to the compliance with the minimum tariff rates imposed by the IC.”

Currently, the basic rate for loss and damage on motor car insurance coverage is at 1.5% to 2.0% of the value of the motor vehicle, while the premium for act of nature coverage has a minimum rate of 0.50% of the value of the motor vehicle.

The Department of Transportation’s Jeepney Modernization Program aims to gradually phase out traditional jeepneys or jeepney fleets that are over 15 years old and replace them with environment-friendly vehicles equipped with more efficient engines.

The modernization program of public utility vehicles is set to take place within the month. — J.M.D. Soliman

Tens of thousands of Canadians flee huge forest fires

MONTREAL — Almost 40,000 Canadians have fled their homes under threat of huge wild fires, with British Columbia facing its largest emergency evacuation ever, officials said Monday.

Build, build, and destroy

Grassroots & Governance
Teresa S. Abesamis

It is truly encouraging that the current administration is pursuing physical infrastructure building in Metro Manila and key cities around the country. Plans have also been announced for bridges, railways and other ways to connect areas more expeditiously around our archipelago, which is running behind our neighbors in infrastructure, where once upon a time, before the disruptive and overly prolonged Marcos era, we were ahead of our ASEAN neighbors. Fortunately, the government of Benigno S. C. Aquino III enriched our government coffers, giving the present administration a head start. If it succeeds, the Duterte administration can leave a legacy for much hardware. It is however, in software (justice, human rights, public moral standards, quality of media, institution building) that there is cause for much distress.

Ball-ing

Give And Go
Michael Angelo S. Murillo

I know it is just early in the offseason but I am not blaming Los Angeles Lakers fans for looking forward to a potentially exciting next season of the National Basketball Association.

Bourse inches up for second consecutive day

LOCAL SHARES continued largely sideways trades on Tuesday amid a lack of drivers and profit-taking by investors.

The bellwether Philippine Stock Exchange index climbed 18.42 points or 0.23% to close 7,952.92, while the broader all-shares index steadied 2.67 points or 0.05% up to finish 4,755.68.

“Due to lack of any leads, Philippine shares resorted to (bargain hunting/profit taking) given that the US markets closed almost flat on Monday,” said Regina Capital Development Corp. Managing Director Luis A. Limlingan in a mobile phone message, noting that “upward momentum in previous weeks tapered below records, while investors are still trying to set the tone of the upcoming quarterly results.”

Harry G. Liu, president of Summit Securities, Inc. said the market moved largely sideways while waiting for fresh leads to push the index up, with nothing on the horizon to pull it down.

“The market’s just really trading between 7,750 to 8,000. Only good news will push it higher to the 8,000 level,” Mr. Liu said in a telephone interview yesterday.

Mr. Liu added that investors are waiting for President Rodrigo R. Duterte’s second state of the nation address on Monday next week to glean solid signals on reforms like the tax reform program, whose first of up to five packages hurdled the House of Representatives at end May and which now awaits Senate approval before year end.

The government is banking on that reform program to help fund its “Build, Build, Build” infrastructure development drive that should see more than P8 trillion in government funds spent until 2022, when Duterte administration ends.

Providing some upward impetus to markets was China’s July 17 report showing that gross domestic product growth steadied at 6.9% in the second quarter from 2017’s first three months, providing merit to Mr. Duterte’s move to rebuild ties to that major market despite simmering bilateral tensions in the South China Sea.

Most sectoral indices ended yesterday with gains, except for services that dropped 23.05 points or 1.36% to end 1,671.61.

Property went 30.81 points or 0.82% to 3,750.98, mining and oil increased by 67.51 points or 0.53% to 12,805.86, financials rose by or 7.88 points or 0.40% to 1,963.39, holding firms gained 12.16 points or 0.15% to 7,955.07, while industrial firms edged 15.05 points or 0.13% higher to 11,184.90.

Advancers trumped losers at 104 to 94, while 57 issues were unchanged.

Value turnover amounted to P6.49 billion as 3.95 billion shares changed hands from Monday’s 3.38 billion worth P6.57 billion. Net foreign buying grew 42% to P275.29 million from Monday’s P193.66 million.

Stocks that gained were led by Metro Pacific Investments Corp. (3.58% to P6.95 apiece) and Ayala Land, Inc. (0.72% to P41.75), while PLDT, Inc. and BDO Unibank, Inc. led those that lost at 3.48% and 0.57% down to P1,665 and P122.10 each, respectively. — Janina C. Lim

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