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DPWH tells Metro Cebu LGUs to help address flooding while control and drainage master plan awaits approval

DEPARTMENT OF Public Works and Highways-Central Visayas (DPWH-7) Regional Director Ador G. Canlas asked local government unit (LGUs) leaders to implement projects that will help reduce regular flooding in Metro Cebu while the Flood Control and Drainage Master Plan is awaiting approval from the DPWH central office in Manila, “With or without the study, if you look at the non-structural plans, these are part of the responsibilities of everyone, not only for LGUs and line agencies,” Mr. Canlas said during the quarterly meeting of the Metro Cebu Development and Coordinating Board (MCDCB) on June 5 in Naga City, Cebu. In a statement issued by the provincial government of Cebu, Mr. Canlas said LGUs can begin implementing non-structural measures such as waste management, reforestation, environmental management, and strict implementation of the zoning and land use plan. DPWH-7 project coordinator Luis C. Paredes also said during the meeting that they have a P420-million fund for projects that will reduce the detrimental effects of flood water, which are scheduled for bidding in October and will thereafter be implemented. MCDCB is a consortium of the province of Cebu and its 13 cities and towns located on the eastern side of the island. It includes the cities of Carcar, Naga, Talisay, Cebu, Mandaue, Danao and Lapu-Lapu, and the towns of Minglanilla, Cordova, Consolacion, Liloan and Compostela.

Standhardinger an asset to Gilas Pilipinas, says coach Chot Reyes

IT would only take a little while before Christian Standhardinger can get used to the Filipino brand of game.

So as his adjustment to the Manila traffic.

On board an UBER cab, the Fil-German center came in very late in practice as his service got lost while they were trying to brave on the traffic from Makati to Ortigas.

“Unfortunately, he came in late. He tried to do some exploration on his own, he was brought everywhere by his UBER driver. The driver didn’t know where the gym is. So he came in very, very late, but he left his place very, very early,” head coach Chot Reyes told BusinessWorld.

Despite coming in late, Mr. Standhardinger, a pro player in Germany, brought his usually intense game at practice, much to the delight of Mr. Reyes.

“We’re not surprised. We already know what he can bring to the table. The only thing I wanted to look at is the kind of game shape he’s going in and how he’s going to cope with the physicality of the international game. But from what I’ve seen, I don’t think we need to worry about him. He’s out there, not afraid to bang bodies, not afraid to throw at Mike Myers at practice as well as the other guys. I think he’ll be an asset to this team,” said Mr. Reyes.

Mr. Standhardinger will be one of the new inclusions in the Gilas Pilipinas team that will play in the William Jones Cup tournament next week.

On Wednesday night’s tune-up game against NLEX, the 6-foot-9 player came through with the game-winning basket with six tenths of a second left to lift Gilas Pilipinas to a thrilling victory.

Mr. Standhardinger got his first taste of competing against PBA players and the 28-year-old center was impressed with what he saw.

A player in the Bundesliga League, Mr. Standhardinger remains non-committal on the possibility of playing in the PBA. He would be eligible to play for the coming Rookie Draft, especially now that he’s playing for the national team.

“We’ll see. After Gilas, I will go back home and take care of some personal stuff. Let’s see if there would be teams interested here,” he added. — Rey Joble

Progressivism, socialism and a baby they want to die

Trade Tripper — Jemy Gatdula

One would think that the debate between collectivism and individual rights, as well as the even more significant dichotomy between totalitarianism and democracy, has been put to bed.

Unfortunately, in this era of The Walking Dead (more likely, the walking brain-dead), even really discredited ideas like socialism (and, bizarrely, eugenics) has come back with a vengeance.

It would be all well and good if such ideas were contained in the sterility of the classroom but unfortunately not.

And with lethal consequences.

Witness 10-month-old Charlie Gard, suffering from the extremely rare encephalomyopathic mitochondrial DNA depletion syndrome. Typically fatal and with no medical remedy available (at least in the UK).

To save him, Charlie’s parents raised $1.6 million to avail of experimental treatment in the United States.

One would think that the decision regarding the care of children belong to their parents but the British doctors under the National Health System think they know better, demanding instead that Charlie die “with dignity.”

To make matters worse, the European Court of Human Rights agreed with the doctors.

To make it really even worse, so did the Vatican’s Pontifical Academy for Life.

The UK doctors’ position would have been understandable if the Gards remained dependent on the NHS, for even under a socialist-oriented, welfare system, one can hardly lay unlimited claim on public taxes paid by fellow citizens, specially for a long shot experimental medical remedy.

“But that’s not at issue here. Thanks to an international grassroots fund-raising campaign the Gards have found donors. They’re willing to cover all the costs of flying Charlie to America and offering him this treatment that might save his life. But the British authorities, backed up by the European Union and now the Vatican, have ruled that Charlie’s parents cannot try to save him. Instead he will be left to die slowly of hunger and thirst (“Who’s Killing Charlie Gard? And Why Won’t the Vatican Help Him?” John Zmirak, 30 June 2017).”

The veiled unadmitted issue vociferously defended by the UK governmental/medical and EU bureaucrats is the power to decide for people, how to act, speak, and even what to believe, including matters of life and death.

In this case, if the Gards were able to get treatment for their baby independent of the NHS, that would be individual initiative and freedom trumping government power and the collectivist mind-set, leading possibly to that “inequality” dreaded by socialists.

Of course, the only real issues here should be the life of Charlie Gard and the parents’ rights over their child.

On the other hand, as Michael Brendan Dougherty points out, “here was a moment for the Vatican to stand up and announce what the Catholic faith teaches about human life and our duties to one another, and the God-given authority of parents over their children. And it was a moment in which such a statement would resound with an attentive audience. It was not to come.”

Instead, despite this obvious “barbaric abuse of judicial authority, the Catholic Church — the world’s greatest defender of the right to life, and long a moral bulwark against state intrusion into the rights of the family sphere — has decided that the courts in this case are basically right (“The Vatican’s Statement On UK Baby Condemned To Die Is Frightening,” Daniel Payne, 30 June 2017).”

Because rather than consider the one truly important thing, a baby’s life, the Academy chose to advance the progressive “inclusivity,” pro-choice agenda: “The Vatican has lately found itself assimilating to the bourgeois morality that makes European life spiritually desolate. The Church has trouble denouncing respectable sins and lately finds moral heroism unseemly or suspicious. The Vatican has recently added a pro-choice Anglican to the Pontifical Academy for Life, a move praised by the Pope’s apologists as a welcome sign of loosening up. xxx The Church has even found a way of blessing people in second marriages they used to call out as public adultery. That the Vatican’s men would serve as apologists for the erosion of parental authority by a state anxious to override the family in its quest to give us ‘death with dignity’ follows from the rest (“The Vatican’s Statement on the Charlie Gard Case Is a Disgrace,” Michael Brendan Dougherty, 30 June 2017).”

Thankfully, Pope Francis reversed the Academy’s misguided thinking.

Following US President Trump’s call to “help little Charlie Gard,” the Pope then tweeted that “to defend human life, above all when it is wounded by illness, is a duty of love that God entrusts to all.”

Whatever happens to Charlie in the end, the foregoing illustrates the dangers of a progressive pro-choice, socialistic, government-knows-best mind-set encouraging dependence on a patriarchal government to bestow benefits and goods (including life).

Such are anathema to our own democratic, subsidiarity, pro-life, family oriented Constitution.

But in today’s “I’ll do whatever the hell I feel like!” social media narcissism, don’t be surprised if there become Charlie Gards here.

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

jemygatdula@yahoo.com

www.jemygatdula.blogspot.com

facebook.com/jemy.gatdula

Twitter @jemygatdula

Business chamber to pitch more Davao flights to AirAsia’s Fernandes in ICON forum

THE DAVAO City Chamber of Commerce and Industry, Inc. (DCCCII) plans to convince AirAsia Group Chief Executive Officer Tony Fernandes to launch more flights from the city during the Davao Investment Conference (ICON) on July 21-22, where he has confirmed attendance. John Carlo B. Tria, DCCCII member and program director of the event, said the confirmation was relayed by Cap. Dexter M. Comendador, CEO of Philippines AirAsia. The budget airline started last April new domestic routes, including from Davao to Clark, Cebu, Palawan, and Caticlan. During the launch of the new flights, Mr. Comendador said these will “provide the much-needed connections and tap into underserved markets, grow it, as there is definitely great tourism and business potentials in the Visayas and Mindanao.” — Carmelito Q. Francisco

Double UFC offering this weekend

IT will be a packed weekend of mixed martial arts action as the Ultimate Fighting Championship (UFC) goes into higher gear with two championship events.

First to go off tomorrow (Manila time) is The Ultimate Fighter Finale, dubbed “Redemption,” that will take place in Las Vegas, Nevada.

Headlining the event is the lightweight fight between Michael “The Menace” Johnson (#5) and Justin “The Highlight” Gaethje.

In the co-main event are the contenders for The Ultimate Fighter: Redemption that sprung from the two competing teams of Team Garbrandt, coached by UFC bantamweight champion Cory Garbrandt, and Team Dillashaw, handled by former champion TJ Dillashaw.

This edition of the UFC-produced reality TV series opted to bring back participants from the previous seasons for another shot at glory.

Team Dillashaw has proven to be a big winner so far as the fighters left are coming from his fold with Dhiego Lima (TUF 19) beating teammate Tom Gallicchio (TUF 22) by unanimous decision to barge into the finals.

As of this writing, he is awaiting the winner between teammates James Krause (TUF 15) and Jesse Taylor (TUF 7) in the other semifinals.

Also featured in the finale are the lightweight battle between Mark Diakiese and Drakkar Klose, light heavyweight Jared Cannonier against Nick Roehrick, middleweight Brad Tavares versus Elias Theodorou, and light heavyweight Jordan Johnson against Marcel Fortuna.

UFC 213
Meanwhile on Sunday, “UFC 213” takes center stage also in Las Vegas and will feature two title fights.

Women’s bantamweight champion Amanda “The Lioness” Nunes of Brazil battles number one contender Valentina “Bullet” Shevchenko of Kyrgyzstan in the main event of UFC 213, a rematch of their March 2016 fight.

The co-featured fight is the interim middleweight championship title fight between top contenders Yael “Soldier of God” Romero (#1) of Cuba and Robert “The Reaper” Whittaker of New Zealand.

Champion Nunes (14-4) got the better of Ms. Shevchenko (14-2) in their first encounter by a narrow unanimous decision, 29-28, 29-27 and 29-27, which set the stage for their reengagement.

Ms. Nunes is coming off a technical knockout win over former champion and UFC superstar Ronda Rousey last December and is riding a five-fight winning streak.

Her opponent Ms. Shevchenko, meanwhile, has won back-to-back since losing to Ms. Nunes, beating Holly Holm and Julianna Pena, in that order.

Mr. Romero (12-1), for his part, looks to secure the interim middleweight title as he awaits the return of champion Michael Bisping from injury.

The Cuban Olympian has won his last eight fights, the last one over former champ Chris Weidman in November via an impressive third-round knockout off a flying knee and punches.

On the other hand, Mr. Whittaker (19-4) is also on a roll, winning in his last seven fights.

He fought earlier this year in April against Ronaldo Souza and was a TKO winner in the second round by way of head kick and punches.

Other fights at UFC 213 are heavyweight Daniel Omielanczuk (#15) against Curtis Blaydes, heavyweight Fabricio Werdum (#1) versus Alistair Overeem (#3), and lightweight Anthony Pettis (#6) against Jim Miller.

The Ultimate Fighter: Redemption will be shown live tomorrow beginning at 10 a.m. over Hyper Ch. 91 in SD or 261 in HD on Cignal TV with replay at 9 p.m. while UFC 213: Nunes vs. Shevchenko 2 will be broadcast on Sunday staring at 10 a.m. with replay at 6 p.m.

In the Philippines, Cignal TV, the country’s foremost direct-to-home (DTH) company, is the home of the UFC after the two groups agreed to an extensive deal that will see the UFC beamed on various platforms. — Michael Angelo S. Murillo

Where’s the red meat?

Fence Sitter — A. R. Samson

Controversies of the day, say involving rants from the highest official of the land require some “clarification” by those tasked to clarify even self-explanatory phrases. The spokesman comments for example on what seemed an invitation for soldiers to take liberties with the womenfolk, and dismisses the verbiage as merely an unfunny joke — next question please.

A media encounter is something news subjects fear especially when the topic for the interview involves a crisis that implicates them. Such queries are highlighted by broadsheets and TV news screaming about them in their front pages or prime time news, perhaps involving road rage, broken relationships, bar brawls, collapsing buildings, or dead bodies strewn in the streets.

Screaming headlines point to the likely defendant, designated as the “red meat” on which media intend to feast. The metaphor alludes to lions and Christians as a spectacle for the ancient version of mixed martial arts, at a time when martyrdom for the one with two feet is the only upside. The commemoration in the Christian calendar of a virtuous death in an uneven contest does not apply to those who bring this about, in this case the predatory members of media, both traditional and digital. The latter are also referred to as trolls.

The spokesperson subjected to hostile questioning and the verbal equivalent of clawing of bodily parts and mastication of the same as lunch or dinner, depending on the time of day, is designated specifically for the particular crisis as the protein offering for the day.

This often unwilling raw meat for predatory appetites needs to employ the following approaches: a) She, as in cases involving domestic violence or video recordings of intimate moments involving checking e-mail together without any stitch of clothing, needs to be an authorized proxy (maybe, a feisty lawyer) able to speak with some authority; b) At the same time, the spokesperson needs to possess the attribute of “deniability” — unfortunately, she has misspoken and we have already asked for her resignation; c) The interviewee is not expected to answer all the questions she is being asked, preferring to give replies that have already been pre-approved, never mind if irrelevant. (That is all I am authorized to say.)

The interview, or, when other experts are recruited to join the fray, the debate forum itself isn’t always a set piece in a studio with the hostilities subject to the occasional cease-fire — before you answer that obnoxious question that undermines your integrity and sincerity, let’s take a short commercial break. (Your microphones are still live.)

In a crisis situation, the interrogation is conducted in a disorderly manner. The chaotic scene where the subject is trying to flee and board his car as he is besieged by a slew of microphones with the logos of different news organizations as well as cell phones for live airing is known in media circles as the “ambush interview.” This quaint term derives from a terrorist paradigm which involves combatants lying in wait from a concealed position to wreak havoc on the unwary.

True to this battle metaphor then, the object of an ambush interview is not to provide answers or clarifications but to inflict maximum damage to a person’s self-esteem. The role of the interviewee then is to catch the flak and hopefully still get to his car with limbs securely attached to the body, and in their original sockets.

Denial as a strategy for the designated red meat is the default option. It consists of three words — deny, deny, deny. Often this is a lost cause. Even in the process of defending one’s reputation, one may lash out too wildly at other characters involved and end up with more candidates for the red meat festival.

The offshoot of any media feeding frenzy involves many more fatalities than intended. Some of the casualties will arise from friendly fire. In the famous assassination of Julius Caesar by 13 senators resulting in 22 wounds on the victim, a few stray stabs by the fellow conspirators landed on the senators as well. This is an all too familiar outcome in any demolition job.

In our eponymous meal, the scramble for food results in not a few lions fighting each other and inflicting damage to themselves. Lions attacking in a pride are not always friendly with each other. Red meat, after all, is too enticing a treat not to incite some fighting over it. Besides, meat can be found on both sides of the contest.

A. R. Samson is chair and CEO of Touch DDB.

ar.samson@yahoo.com

Korean gov’t donates P5M to Red Cross for Marawi relief operations

THE Korean government, through its Ambassador to the Philippines Kim Jae-shin, handed over yesterday a P5-million humanitarian aid to the Philippine Red Cross (PRC) to assist civilians displaced by the conflict in Marawi City. At the turn-over ceremony, Mr. Kim condoled with those who have been affected by the now seven-week fighting between government troops and Muslim extremists, and expressed hope that the crisis would be resolved soon.

F1 championship leader Vettel set to face more trials of temperament

SPIELBERG, AUSTRIA — Sebastian Vettel will face another trial of his integrity and temperament this weekend when he arrives at the Red Bull Ring circuit for the Austrian Grand Prix.

Just three days after celebrating his 30th birthday on Monday by escaping any further punishment for his ‘road rage’ attack on Lewis Hamilton at last month’s Azerbaijan Grand Prix, the four-time world champion will need a cool head.

The German is sure to be put under scrutiny by the traveling international media corps in a paddock that will keep him under close observation, and he will likely be given an even more intense on-track examination when he and Hamilton restart their scrap for the drivers’ world title.

A tight fight between Vettel’s Ferrari team and three-time champion Hamilton’s Mercedes outfit is in prospect in the Styrian Alps in the 30th running of the Austrian event.

Thanks to escaping without serious sanction in Baku, where Hamilton was deprived of a near-certain race victory because his head-rest worked loose, Vettel holds a 14-point lead over the Briton, whose silence this week has spoken volumes.

One minor gesture, by ‘liking’ a reaction on Instagram, appears to be all Hamilton wished to say following the decision of the International Motoring Federation (FIA) to take no further action against Vettel for his deliberate wheel-banging.

Vettel, who has a history of bad-tempered outbursts when events conspire against him, had to accept full responsibility for his actions, apologize to Hamilton and pledge to improve his future behavior.

If he slips up again in Austria, he may be banned if points are added to those already on his license.

Many may believe that he escaped lightly, but Mercedes boss Toto Wolff has made clear he believes it is now time to put the controversy to bed and forget it.

“Every great season is marked by a great rivalry,” he said. “Last year it was our internal battle between Lewis and Nico and this year it seems that the fight is on between Ferrari and Mercedes and Lewis and Sebastian.

“As calm as it started, it was only a matter of time until the rivalry would eventually become more fierce and controversial. That moment happened in Baku and we saw the results of that tension on track.

“We have moved past that moment now and it is a closed chapter.”

Whatever Hamilton says in public to retain a calm approach to a key contest, he is sure to be determined to claw back his lost points and cut into Vettel’s advantage on the sweeping circuit, where some of the fastest laps of recent times are expected this weekend.

Improvements to the circuit, including re-surfacing, allied to this year’s ‘fatter and faster’ cars, may see lap times cut to some of the lowest in 25 years.

Hamilton won last year’s race after a clash with Rosberg and also set the fastest qualifying lap ever at the track in one minute and 6.228 seconds.

That time is likely to be lowered and may be inside Briton Nigel Mansell’s 1:4.402 set at the 1990 French Grand Prix.

Hamilton, on a run of stunning pole positions, will be revved up for that and a payback victory, but will be aware too that Ferrari will be vigorous rivals and that Red Bull, at their ‘home’ circuit, will want to see a repeat of Australian Daniel Ricciardo’s shock triumph in Baku. — AFP

Ferrari’s Sebastian Vettel — REUTERS

They dream still

When Shaquille O’Neal was inducted to the Naismith Memorial Basketball Hall of Fame last year, Heat president Pat Riley had a chance to reflect on the trade that brought the Big Fella time to the franchise. “Getting Shaquille changed everything,” he said. “Shaq’s acquisition was bigger than any acquisition that we ever made, including the Big Three.” He understood the weight of his words, and took pains to say he meant them, referring to the turn of events as “the seminal moment to really make us really, really legitimate. He turned our franchise around. He gave us real legitimacy.”

No doubt, Riley was moved to heap praise on O’Neal given the circumstances. Then again, there could be no discounting the point he made. After all, the deal established the Heat as major players in free agency, firmly putting in the rear-view mirror previous failures, the ill-fated attempt to make Juwan Howard the National Basketball Association’s first $100-million Man included. Up until then, Miami was not looked at as a desirable, even glamorous, stop, never mind its weather, cool vibe, and absence of income tax.

Certainly, O’Neal’s arrival — and, however, brief, successful stint — with the Heat provided the impetus for LeBron James and Chris Bosh to form their triumphant partnership with resident star Dwyane Wade. These days, though, the franchise’s reputation is less than ideal, in no small irony due to the way the aforesaid group disbanded. Bad luck and wrong timing have hampered its efforts to lure would-be cornerstones. Most recently, it whiffed on Gordon Hayward and, in the aftermath, felt compelled to shell out significant cap space for Dion Waiters, a high-volume, low-efficiency shooter who had already worn out his welcome in two stops.

Still, there’s good news; Riley and head coach Erik Spoelstra are hard-nosed grinders who, in invariably managing to make the most of the assets before them, underscore the culture that defines the Heat. Which, as mediocre as they may seem on paper, sets them up well for a bright future. With proper planning, a few good bounces can make for a few good men. There’s always the next trade, the next free-agency sweepstakes, and if nothing else, they know they’ll be in the running. Because of O’Neal. Because, once upon a time, they dreamed. And because they dream still.

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.

Rising and falling stars

Beyond Brushstrokes — Maria Victoria Rufino

The heavenly firmament is filled with stars, suns, constellations, moons, and planets.

On earth, we have an equivalent “sky” that is occupied by the “stars” of business, politics, show business, and the arts.

The star wattage illuminates, dazzles,and entertains earthbound viewers. As the nova ascends to the top, he gains media exposure and provokes curiosity.

What the stars do and say become newsworthy. Whether or not they make sense.

Fame is a two-edged sword. It comes with perks and perils. The high-profile life may seem glamorous and exciting to the lay observer. Everything a celebrity does may appear larger than life. His achievements and triumphs are lauded. For a while he basks in the adulation.

There is a dark side beyond the limelight. Soon, a little green monster and the crabs begin a viral attack to knock the star from the pedestal. The façade begins to peel and crack. The aura begins to fade.

The contagious virus is called Image Deficiency Syndrome, IDS afflicts only the high and mighty, the famous, and the trying-to-be-famous.

Their faux pas, missteps, vices are exaggerated. The wilder, the better — for public consumption. Tabloid reporters dig for scandals and expose skeletons. Or they create tall tales to titillate.

People in the public eye need to project a certain persona or identity. To secure their position they have to cultivate and sustain interest. Sometimes, show biz and political personalities stage dramatic scenes to arouse sympathy.

In reaction to nasty rumors, a celebrity once retorted, “I don’t care what you write about me. Just spell my name correctly.” Name recall is the key to fame or infamy.

Aspiring actors and wannabes hire experts to create, promote, manage, and package their image. Clever strategy, sustained promotions, and logistics are essential in building potential star.

The shrewd manager-spin doctor can easily mold and hype the image acceptable to an eager public. It’s a matter of satisfying the needs and demands of the market.

The neophyte representative or senator is packaged, as an advocate of human rights/children’s rights, or a zealous environmentalist. The goal is to project youth, dynamism, change, and progressive ideas. It helps if the subject is attractive, smart, eloquent, and charming.

The budding movie novice or TV star receives a physical makeover — voice, speech, dance, fencing, drama lessons. A stylist for fashion is part of the team. The goal is a gradual transformation from ugly awkward duckling to graceful swan.

In the public arena, a star is a mirage with mass media appeal. He/she projects illusions to captivate fans. A combination of strength and dynamism tempered by appealing vulnerability to elicit sympathy and evoke a sense of identification from the audience.

Like all things contrived, the flaws and imperfections soon begin to show. Celebrity comes with a price tag.

Afflicted victims exhibit bizarre behavior. Symptoms of IDS have several grades — mild, poor, severe, hopeless, or incurable. High egotistical fever — “I me, myself,” tantrums, delusion, hallucinations, illusions of grandeur, convenient amnesia, conspicuous consumption, compulsive shopping and rampant binges, edifice complex, extreme attention-getting behavior, hysteria, narcissism, and temporary insanity.

Unfortunately, there is known antidote to IDS.

Bu the disease goes away in time. When the falling star drops back to earth. The klieg lights dim. The applause fades. The curtains fall.

The stage is cleared of debris. The backdrop and lights are reset. The curtains rise again — for the entrance of a new star.

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

Zamboanga City hospital gets P630-M budget for expansion

FUNDING FOR infrastructure and equipment worth P630 million has been allocated by the congressional office of the city’s first district for the Zamboanga City Medical Center (ZCMC) to increase the capacity of the state-run institution that caters to patients from different parts of the Zamboanga Peninsula Region. “This will be the biggest budget ever to be placed in Zamboanga City Medical Center,” Zamboanga City 1st District Representative Celso L. Lobregat, said. Among the projects and equipment lined up within the 3.75-hectare compound of the ZCMC are the brain center, trauma center, development of reproductive health specialty center, and burn treatment specialty center. — Albert F. Arcilla

Philippine banks in better shape 20 years after Asian crisis — S&P

By Melissa Luz T. Lopez,
Senior Reporter

RAPID CREDIT growth in the Philippines is unlikely to trigger a domestic funding crunch, as it comes alongside upbeat economic activity and as banks stand better positioned 20 years after the Asian Financial Crisis, analysts at S&P Global Ratings said.

The international credit ratings firm did not sound the alarm despite the sustained double-digit growth in bank lending — a trend over the last two years — as the trend merely follows the robust growth in gross domestic product (GDP).

Bank lending grew by 18.7% in May from a year earlier to P6.595 trillion, according to central bank data.

“At the moment, we don’t see that (credit growth) as a big risk mainly because of a few reasons. One is the Philippine financial system remains relatively small compared to the economy, and we’ve seen the economy has been growing quite strongly and steadily for quite a long while. The rate of investment has also picked up so I don’t think it should be too much of a surprise that credit growth is also growing faster than usual,” Kim Eng Tan, S&P’s senior director for sovereign ratings, said in a Wednesday webcast.

S&P hosted a webcast to commemorate the 1997 Asian Financial Crisis, triggered by Thailand floating the baht due to lack of dollar reserves, eventually triggering a series of currency devaluations as the funding crunch spread across neighboring economies.

Two decades since the crash of Asian markets, analysts believe that regulators and corporates in the region have grown more prudent with “improved” governance standards in place, said S&P head of analytics and research Terry Chan. In turn, this leaves a slimmer chance of reckless lending activity that could trigger another crisis.

A steady decline in the share of non-performing loans in the Philippines and strong domestic sources of funding also enhance the resilience of local banks, the credit rater added.

“[B]ecause of our analysis of the overall economic situation, we believe most of this lending will go to investments which are likely to be productive and are able to repay their loan. If not, the systemic impact is unlikely to be big because the financial system is relatively small,” Mr. Tan said.

Limited exposure to foreign funding also gives local players one less thing to worry about, Mr. Tan added: “Most importantly, because we see the financial system as largely financed by domestic sources of funds, it is therefore not exposed to the more flighty kinds of capital, for instance relying on international interbank borrowing.”

Across the region, S&P said reforms taken by central banks and financial regulators have made economies “less vulnerable” to external shocks, although political risks are now “higher.”

The Philippines holds a “BBB” rating with a “stable” outlook from S&P, one notch above minimum investment grade which was affirmed last April.