Home Blog Page 13999

Dela Rosa vows to rid police force of ‘scalawags’

MARKING HIS own first year in office, Philippine National Police (PNP) Chief Director-General Ronald M. dela Rosa reaffirmed his vow to get rid of corrupt cops, citing that he had so far sacked 160 and plans to kick out 84 more due to alleged involvement in drugs and corruption. “I will never stop. I will be uncompromising. I will be unforgiving and I have no mercy for those corrupt and scalawag police,” Mr. Dela Rosa said in his speech before the police force on Monday. Last November, however, his boss, President Rodrigo R. Duterte made his own reaffirmation that he would protect the police and military. Mr. Duterte was speaking in a press conference within the context of the Espinosa-Yap killings of Nov. 5, 2016 for which 19 police officers have been originally charged with murder, and later downgraded to homicide. “But as I have said before, right at the start… I will protect and I will support the police in this drive against shabu (methamphetamine),” Mr. Duterte then said. Mr. Dela Rosa, for his part, said, “I will sign all [dismissal papers]. I don’t care. If you did wrong, I will really dismiss you.” — Jil Danielle M. Caro

PHL to trumpet ‘aggressive and bold’ drug war strategies in ASEAN meet

THE PHILIPPINES will trumpet its “aggressive and bold” strategies in addressing the illegal narcotics trade to its regional neighbors during an inter-parliamentary meeting on the drug menace this week, a House leader said. The Association of Southeast Asian Nations (ASEAN) Inter-Parliamentary Assembly Fact-Finding Committee (AIFOCOM) to Combat the Drug Menace is holding its 13th meeting starting today, July 4, at Conrad Manila. “[W]e’re just lucky because being the host country this year with a President being serious in addressing the problem of drugs… We’ll now have the perfect venue to share information to cooperate with other ASEAN member countries as far as the problems and the solution to the drug problem within the country and the ASEAN member countries as well,” Surigao del Norte Representative Robert Ace S. Barbers said in a press conference yesterday. Mr. Barbers also said that they will not raise the issue of extrajudicial killings amid the administration’s drug war, noting than the alleged human rights violations were “product of imagination.” “This is a war. And as you all know, if there is a war, there are collateral damages. And maybe, just maybe, some of them will probably think that it was intended or was done on purpose, which is not,” he said. — Raynan F. Javil

Agri chief defends administration’s 1st year performance

AGRICULTURE SECRETARY Emmanuel F. Piñol has defended President Rodrigo R. Duterte from Albay Representative Edcel C. Lagman’s negative assessment of the administration’s first year. “I was deeply bothered and hurt by the statement issued by Albay Congressman Edcel Lagman, in assessing the first year performance of the Duterte Administration, that President Duterte has done nothing good for the country,” Mr. Piñol said in a Facebook post. “The statement of Congressman Lagman was not only an affront on the President but also a total and cruel disregard of the efforts of the Department of Agriculture (DA) to help his constituents,” he added, noting that the lawmaker had even joined in one of DA’s field visits for the distribution of various interventions to farmers. Mr. Lagman has been a staunch critic of the administration, especially on the alleged extrajudicial killings resulting from the government’s war against drugs. — Janina C. Lim

Factory growth slips, still ASEAN’s best

By Elijah Joseph C. Tubayan
Reporter

IMPROVEMENT of factory activity in the Philippines slowed at the end of the second quarter, but still “signaled another strong expansion in June” that kept the country in Southeast Asia’s lead for the second straight month, according to the latest monthly survey which IHS Markit conducted for Nikkei, Inc.

The Nikkei Philippines Purchasing Managers’ Index (PMI) bared a 53.9 reading for June, down from May’s 54.3.

But it was enough to keep the Philippines in the lead among members of the Association of Southeast Asian Nations (ASEAN) for the second consecutive month which it lost to Vietnam in February.

“The Philippines manufacturing sector signaled another strong expansion in June, ending the second quarter on a positive note. Growth in output and new orders remained key drivers, which in turn boosted hiring and stock-building. Export growth strengthened and business optimism remained elevated,” the report explained.

It quoted IHS Markit Bernard Aw as noting that “[t]he Philippines manufacturing sector rounded off the second quarter on a strong note, with a solid performance in June.”

“That put the domestic economy on track for another quarter of robust GDP (gross domestic product) growth. Driving the upturn was again expansions in output and new business.”

Philippine GDP grew by a slower-than-expected 6.4% in the first quarter that nevertheless made the country the second fastest-growing major Asian economy in those three months.


Click to enlarge

 

Socioeconomic Planning Secretary Ernesto M. Pernia expects economic expansion for the second quarter — which the Philippine Statistics Authority is scheduled to report on Aug. 17 — to “approach seven percent” against the government’s 6.5-7.5% full-year 2017 target.

The manufacturing PMI consists of five sub-indices, with new orders having the biggest weight at 30%, followed by output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%). A PMI reading above 50 suggests improvement in business conditions, while a score below that signals deterioration.

“While the domestic market remained the key pillar of manufacturing growth, there were signs that external demand is contributing more to the expansion. Export order growth strengthened to a three-month high,” Mr. Aw said.

According to the report, firms noted higher demand from Japan, China and Indonesia.

Security Bank Corp. economist Angelo B. Taningco said in an e-mail that this was due to the weaker peso which makes Philippine products cheaper for those buying them in dollars: “I… think the increase in new export orders in June was driven by the depreciation of the Philippine peso and stronger demand from two of the country’s major manufactured export destinations — China and Japan — given better performance of their respective manufacturing sectors…”

“Overall, the outlook for the manufacturing sector remains optimistic into the third quarter, underpinned by buoyant business confidence and strong sales volumes,” Mr. Aw said.

“That will augur well for the Philippines economy and its labour market.”

Mr. Taningco shared his optimism, saying: “I believe this trend of manufacturing expansion and rising foreign demand for manufactured exports will be sustained in the third quarter on the back of improved competitiveness of manufactured exports in the said quarter.”

Natixis analysts allay concerns over increasing trade and fiscal deficits

THE PHILIPPINES can be expected to sustain a bigger trade deficit this year, but this should not be a source of concern for the economy which itself is projected to grow strongly and attract more foreign capital, a France-based investment bank said in a June 29 report.

The aggressive infrastructure push of the current administration will likely sustain import demand and cause wider trade and fiscal deficits, Natixis said, but the same program will likewise attract more foreign direct investments (FDI) to the Philippines that would help keep the country’s external position robust.

“Corporates are investing more, loan growth has been double digits since 2016. And added to this is a push to raise public investment by the new administration…,” Natixis analysts said in the report.

“As spending and investment rise, import demand, as expected, naturally increases.”

Economic managers of President Rodrigo R. Duterte have unveiled plans to spend P8.4 trillion until 2022 on state-funded infrastructure projects under the “Build, Build, Build” initiative, as the government looks to raise the share of its infrastructure spending to an equivalent of 7.4% of gross domestic product (GDP) from 4.7% in 2016.

This is expected to help boost GDP growth to as fast as 7-8% annually from 2018 to 2022 from a targeted 6.5-7.5% this year and an actual 6.9% in 2016.

That faster pace of economic growth, in turn, is projected to slash unemployment rate to 3-5% by 2022 — when the current government steps down — from 5.5% last year and achieve its bottom line of cutting the national poverty rate to 14% also by then from 21.6% in 2015.

The government intends to support the additional spending through fresh revenues from up to five tax reform packages, teh first of which was approved by the House of Representatives in May and now awaits Senate approval. The first tranche provides an additional stream of revenues from higher excise taxes on cars, fuel and sugar-sweetened drinks as well as from fewer value-added tax exemptions that will offset revenues to be foregone from lower personal income tax rates.

“We believe these pro-growth [measures] to be positive for economic expansion and will help the Philippines maximize its demographic dividend,” economists Trinh Nguyen and Nordine Naam said.

“That said, they will cause the fiscal deficit to widen and the current account to turn into negative this year and the next.”

The current account posted a $318-million deficit in the first quarter as imports continued to outpace the growth in outbound shipment of goods.

The Bangko Sentral ng Pilipinas (BSP) expects a $600-million current account deficit for 2017, reversing a $601-million surplus last year.

The current account deficit likewise pulled the January-March external payments position to a $994-million deficit before being trimmed to a $136-million gap as of end-May.

“This means that unless remittance growth increases significantly or the BPO (business process outsourcing) sector outperforms — not our base case scenario — the merchandise trade deficit will continue to widen,” Natixis added.

“And that means the current account, too, will turn negative from previous years of positive.”

The BSP expects remittances to log a fresh high at $28 billion this year from 2016’s $26.9 billion, which will help offset outbound flows.

The Philippines’ young work force and the government’s infrastructure push will also entice more international investors to set up shop here, not to mention state plans to trim corporate income tax rates to 25% from 30% as a core part of the second tax reform package that will be submitted to Congress by next quarter.

“One positive consequence of this pro-growth strategy is the increase of investors’ appetite for long-term investment in the Philippines,” the analysts said.

“We expect FDI to be robust this year and the next, offsetting some decline of the current account and deterioration of portfolio investment.”

The US State Department said in a June 29 report that Philippines has become a “more attractive” investment destination, despite existing constraints such as foreign ownership limits, poor infrastructure, corruption and red tape. That followed the World Investment Report 2017, published on June 8 by the United Nations Conference on Trade and Development, in which “[t]op executives” counted the Philippines “among the most promising host countries” for FDI.

The central bank projects FDI net inflows to hit $8 billion this year, up from 2016’s record $7.93 billion. — Melissa Luz T. Lopez

BSP under new chief to stay course on reforms

By Melissa Luz T. Lopez
Senior Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) will stay the reform course in the face of rising global interest rates and cybersecurity risks, new central bank Governor Nestor A. Espenilla, Jr. said as he formally took over yesterday, adding that he is also looking to trim reserve requirements in his six-year term.

“As policy makers and financial supervisors, we have to be in tune with these emerging market trends and evolving client needs, including the ‘millennial’ upside of our young population… The changing landscape calls for us to be more vigilant, proactive, and dynamic in responding to the needs of our diverse stakeholders,” Mr. Espenilla said in his first speech as central bank chief during the turnover ceremony held at the BSP headquarters in Manila.

The new BSP governor said his six-year term would build on the “legacy of excellence” he inherits from former Gov. Amando M. Tetangco, Jr., as he committed to beef up the central bank’s reform agenda.

In his farewell speech, Mr. Tetangco touted that his 12-year run as central bank governor saw the “ideal convergence” of low inflation — which dropped to a three percent average from 2011-2016 from 5.2% in 2005-2010 — and rapid economic growth, which clocked a 6.1% average over the last five years coming from 4.9% between 2005 and 2010.

The country also bagged investment grade status in 2013, as the three biggest international credit raters took note of the Philippines’ sound fundamentals and its stable, growing banking system.

BANK RESERVE REQUIREMENT
Mr. Espenilla, 58, brings with him 36 years of central bank experience as he assumed the top post on Monday for a six-year term ending in July 2023.

He previously served as deputy governor for the supervision and examination sector, which carries out the BSP’s tasks as banking regulator.

Changes being considered by Mr. Espenilla include reducing at an “appropriate” time the 20% reserve requirement ratio (RRR) imposed on universal and commercial banks.

“We need to find a path to lower the reserve requirement without compromising price stability. I’d like to see that happen, but it is a discussion in the Monetary Board,” the new governor told reporters after the ceremony.

“It’s not going to happen immediately, but it has to be within a reasonable range because… it is an inefficiency to the financial system.”

Talks to cut the reserve standard date back to June 2016 when the BSP migrated to an interest rate corridor scheme and introduced weekly term deposit auctions to prod banks to be more aware of their liquidity positions.

The current 20% RRR is deemed one of the highest in the world.

Mr. Espenilla added that the auction volumes and tenors under the weekly term deposit facility have been under constant review, but any change would have to be data-driven.

The new central bank chief committed to “fine-tuning” monetary policy to make the BSP’s tools even more market-oriented, and in turn help develop the domestic money and capital markets.

He also intends to “lower the cost of doing business, provide more customer choices, promote efficiency, and encourage innovation” among players, while also ensuring financial inclusion and shared and “meaningful” economic growth.

“We need to work on bringing central banking operations closer to the people,” Mr. Espenilla said.

At the same time, the veteran central banker flagged potential risks that have aggravated uncertainty across global markets.

“We have to be prepared as well for the seemingly imminent wind-down of ultra-easy monetary policies in advanced economies,” he said.

“We need to be mindful of such events and their potentially far-reaching consequences since these could undermine our economic performance and disrupt our carefully laid plans.”

The United States has been pursuing policy normalization since a 25-basis-point increase in key interest rates in December 2015 — followed by three other hikes of the same magnitude up to last month — after close to a decade of near-zero levels to help the US economy then recuperate from the December 2007-June 2009 “Great Recession.”

Rapid technology development and robust social media activity are likewise reshaping the financial system, with the regulator looking for the perfect balance between allowing new banking channels and rising cybercrime threats.

Mr. Espenilla took his oath of office before Finance Secretary Carlos G. Dominguez III yesterday morning, together with new Monetary Board members Antonio S. Abacan, Jr. and Peter B. Favila. Former socioeconomic planning secretary Felipe M. Medalla also took his oath for a second term in the BSP’s policy-making body. With his appointment, Mr. Espenilla now heads the Monetary Board as well as the Anti-Money Laundering Council (AMLC).

Mr. Espenilla said he supports amendments to the BSP Charter, additional powers for the AMLC, easing of the deposit secrecy law, passage of a payment system law, and of the Islamic Banking Act that are all pending in Congress.

‘The changing landscape calls for us to be more vigilant, proactive, and dynamic in responding to the needs of our diverse stakeholders.’ — Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla, Jr., shown here in a Jan. 6, 2012 file photo taken at the central bank head office in Manila. — BW FILE PHOTO

Okada sues family in bid to retake gambling empire

TOKYO — Japanese casino and slot machine tycoon Kazuo Okada has filed a lawsuit against his son, daughter and wife in Hong Kong in an attempt to regain control of his sprawling business empire, according to a court filing and Mr. Okada.

Mr. Okada, 74, told Reuters in an interview that he saw a lawsuit as the only way to get his son and daughter to the negotiating table after they took control of the board of a Hong Kong company at the center of his business holdings in May.

Okada Holdings Ltd., the Hong Kong company that is majority owner of Tokyo-listed gambling machine maker Universal Entertainment Corp., is also a defendant in the suit, according to the Hong Kong High Court online database, though Mr. Okada himself didn’t confirm that. It was unclear on what grounds the suit was brought and no other details were available from the court.

Mr. Okada declined to respond to questions about the details of the suit, which Reuters was unable to view, but said he believed he had been wronged by the move to push him out as director of Okada Holdings, a change that was registered on May 12, according to a public filing.

Mr. Okada said he hasn’t seen his son Tomohiro in two years and does not know his daughter Hiromi’s current whereabouts. Reuters was unable to reach either of them at addresses in public records. Both are Mr. Okada’s children from a previous marriage.

Mr. Okada said he hoped a lawsuit would prompt a judge to order them to negotiate a settlement that would restore his position at Okada Holdings.

‘I WAS TOTALLY BLINDSIDED’
“Unless I sue there will be no opportunity to talk. The reality is I am in a losing position in terms of voting rights,” Mr. Okada said, referring to his 46.4% stake in Okada Holdings, versus Tomohiro and Hiromi’s combined 53%.

Mr. Okada said he did not find out he was dropped as Okada Holdings’ director until May 18.

He said Universal’s board told him on May 23 that he was being investigated for alleged misuse of company funds.

That was followed by Universal’s announcement on May 31 that he would not be reappointed to its board.

“I was totally blindsided,” Mr. Okada said.

The interview took place last Thursday in the restaurant of a Tokyo hotel where Universal was holding its annual shareholders’ meeting. Mr. Okada had been denied entry on the grounds he is not a direct shareholder since the Hong Kong holding firm holds his stake.

Universal declined to respond to Mr. Okada’s assertions.

It said it would make additional disclosures once an internal investigation it recently launched to probe Mr. Okada’s alleged improper use of company funds had submitted its findings.

CANNOT FORGIVE
Mr. Okada said Tomohiro turned against him because his son believed he was not being paid dividends from Universal commensurate with his 43.5% stake in Okada Holdings.

Mr. Okada said he planned to investigate the matter.

Mr. Okada said he was confident he could convince Hiromi to support him as long as he could get her brother to work towards a settlement.

As for his wife Takako, Mr. Okada said he could not forgive her for agreeing to be reappointed to Universal’s board. The company said Thursday that Takako would take on responsibility for Mr. Okada’s art museum and advise the company on its overseas business.

Takako, 43, did not respond to letters left at her home, an email sent to her company address, or a request to speak relayed through her mother.

Last month, Universal issued a press release accusing Mr. Okada and another director of misappropriating some $20 million in company funds in three transactions during 2015. It convened an investigative panel composed of three attorneys that is now looking for other alleged irregularities.

Mr. Okada described the company’s allegations as “nonsense”.

For example, he said one of the transactions in question was a loan not due until November that had been used for a legitimate purpose: to expand junket operations aimed at attracting high-rollers to Universal’s casino in the Philippines.

“That contract is still active. There is no problem.”

Mr. Okada said he could not provide a copy of the contract for Reuters to review because it was located at a company office to which he no longer has access.

Mr. Okada said he viewed the investigation as an attempt by Universal President Jun Fujimoto to seize control. Mr. Okada noted that he had handpicked Fujimoto to help lead the company founded five decades ago.

“I made Fujimoto president. Now he wants to take over.”

Mr. Fujimoto called Mr. Okada “unfit” to be the director of a public company and vowed to prove that with “irrefutable physical evidence” in a private letter to a shareholder on June 21, Reuters reported last week.

Universal declined to make Fujimoto available for comment. Universal said it was not in a position to comment about Mr. Okada’s allegations against Fujimoto.

Two new directors at Okada Holdings did not respond to emails seeking comment. — Reuters

A First Year Assessment of the DTI

AMONG the hundreds of government agencies that make up the bureaucracy, the Department of Trade and Industry (DTI) carries significant weight as its every move has a direct effect on our people.

Not only is the DTI responsible for generating investments, jobs and business opportunities, it also plays a key role in laying down policies to make local industries more competitive. All these, while protecting consumer rights and intellectual properties.

One of the best moves President Duterte has done was to put partisan politics aside when naming his economic team. The appointment of Ramon M. Lopez as secretary at the DTI along with Sonny Dominguez, Ben Diokno and Ernie Pernia of the Departments of Finance, Budget and Management and NEDA, respectively, have been crucial in keeping business confidence on an even keel despite unrelenting political noise.

I’ve worked with Mon Lopez back in the ’90s when he was still a top executive of RFM Corp. Even then, he was competent, wise beyond his years, and above all, humble. He is a fellow economist, a product of UP and Williams College in the US. I always looked forward to meeting Mon as his optimism and patriotic streak were infectious. Despite the poor performance of the economy back then, Mon would always find the lessons to be learned and the silver lining to it all. Before RFM, Mon served in government as member of the Presidential Management staff and NEDA.

It’s no secret that I have criticized some of political policies of this administration. I have called it out on its foreign policy, particularly towards China’s territorial encroachment, the bullying tactics of the Department of Justice and Malacañang’s inaction towards Speaker Alvarez’s interference in the infrastructure program. However, credit must be given where it is due.

On its first anniversary in office, the DTI, under Secretary Mon Lopez’s, has met expectations. It has delivered results where it is needed most — particularly, in generating foreign direct investments (FDI’s) and jobs, widening our manufacturing base and empowering micro, small, and medium sized enterprises (MSMEs).

ON FDI’S AND COMPETITIVENESS
On the back of favorable economic fundamentals coupled with the promise of tax reform and constitutional amendments relating to foreign investments, the DTI received a whopping 1,108 investments missions last year. Investor interest went beyond IT-BPOs, but also in the realms of manufacturing, agribusiness, infrastructure & engineering, and property development. Interestingly, the missions were no longer composed of the usual suspects — the Japanese, Koreans, Taiwanese and Americans; strong interest was palpable among the Russians, Canadians, Qataris, Chinese, and Europeans as well.

From January to April, approved investments for new and expansion projects reached $4.95B from the Board of Investments and Philippine Export Processing Zone. This was a 14% more than the value of projects last year. Collectively, 74,000 new jobs were created.

On a national level, FDI’s topped $1.560 billion in the first quarter, a 17 % increase from the same period last year. While this pales in comparison to Vietnam’s $7.23 billion and Indonesia’s $7.71 billion, there is a strong likelihood that an investment windfall is heading our way given the commitments generated by the President’s recent trips abroad. In the pipeline are $29 billion worth of projects from China, Japan, Thailand, Saudi Arabia, Bahrain, Qatar and Russia.

The Philippines is now on the radar of multinational corporations having been named the 11th most attractive investment destination worldwide. This is the first time we broke into the magic fifteen. It must be said, however, that there is a lot of room for improvement, particularly in terms of ease in doing business.

The Philippines dropped eight places in the latest “Ease in Doing Business Report” conducted by the World Bank. We are now at 99th position, the lowest among ASEAN’s six largest economies.

Last year, 25 government agencies slashed hundreds of redundant procedures relating to business permits. It is still not enough. Computerization is the name of the game and unless permits can be facilitated with a flick of a cursor, an improvement in our standing will continue to elude us.

The good news is that the Department of Information, Communications and Technology along with the DTI’s National Competitive Council is spearheading a project called the Inter-Agency Business Processing Interoperability Program (IABP). The intent of the IABP is to allow businessmen to obtain and renew permits across 55 agencies through the Internet. It will take two years before the IABP can be rolled-out.

On the downside, an issue that requires the DTI’s urgent intervention is the state of our IT-BPO Industry. Records show that from January to May, PEZA-approved investments contracted by 35% to P7.08 billion, from P10.88 billion last year. The number of projects approved also dwindled from 103 to 87. This is due to the looming withdrawal of VAT exemption on the industry. While the effect on BPO cost structures should be minimal what with the eligibility to claim VAT refunds, the move nevertheless erodes Philippine competitiveness in the IT-BPO space.

The IT-BPO industry is a strong leg of the economy contributing nearly 10% of GDP and 1.3 million jobs. We simply cannot afford to rock the boat given what is at stake. I spoke to Sec. Lopez about this a few weeks ago and expressed my strong sentiments on the plan. I would rather see stiffer excise taxes on consumer goods rather than erode the competitiveness of an industry that generates the most jobs for our people. There is still time for the DTI to reconsider its stance on the plan. I’m hoping the good secretary doesn’t relent and fights to keep BPO industry thriving and competitive.

MANUFACTURING RESURGENCE
One thing I appreciate about Sec. Lopez is that he is not one to cancel a perfectly good program just because it was initiated by the past administration. This says a lot about his character.

Under the watch of former DTI Secretary Greg Domingo, the DTI completed the country’s revised comprehensive national industrial strategy. At the heart of it is crafting development road maps for specific industries. These road maps provide the framework and the chronological steps in which to take certain industries from its current state to a level of global competitiveness. At the moment, more than 50 industry road maps have been drafted.

Sec. Lopez has taken the national industrial strategy to higher gear by closing the gaps in supply chains and expanding export markets for Philippine manufacturers. The goal is to align Philippine-made products with the supply chains of international production networks.

Sec. Lopez has also set a goal of achieving a 30% value-added for locally manufactured products, 7% more than its current level. Value added on Philippine made goods have been on a decline since its peak of 28.2% in the ’70s. This is because we import most of our raw materials.

The manufacturing sector has grown by 7% across all subsectors, dispelling doubts that a resurgence is upon us. This provides relief to the 13.5 million agricultural families who are finding it increasingly difficult to eke out a living in traditional agriculture. The manufacturing sector is where farmers migrate for higher paying jobs. Last year, new factories provided jobs for 5% more of the work force than it did last year. The average worker earns 57% more in manufacturing than they do in agriculture.

The DTI has also made great strides in empowering MSMEs what with programs like Kapatid Mentorship, Shared Services Facilities, Go Lokal and Pondo sa Pagbabago at Pag Asenso. MSME’s have always been close to the secretary’s heart given his 11 year involvement with the advocacy group, Go Negosyo. For lack of space, I will reserve the details of DTI’s MSME program for another time. Suffice to say that it has assisted more than 111,000 enterprises get their business started and/or level up.

All in all, I reckon that the DTI has not disappointed on its first year. This time in 2018, I hope to report of a DTI growing from strength to strength in terms of investments, jobs and manufacturing resurgence. — By Andrew J. Masigan

Andrew J. Masigan is an economist.

Why network?

M. A. P. InsightsPacita U. Juan

Someone said: “because your network is your networth!” True, connections and being known or knowing influencers is how the world moves now. We often hear the phrase “It’s not what you know, but who you know.” You can say the same about politics, changing dispensations, a new administration, and you also see movement of people who think his or her network needs some refurbishing (going to the middle aka fence sitting or the other side of the fence).

AWEN or Asean Women’s Entrepreneurship Network is my network of friends and associates since it was established just three years ago in Hanoi, Vietnam. First chaired by Vietnam Women’s Union’s head Madame Minh Thi Tuyet, the chairpersonship was transferred to the Philippines (thus to me as de facto chair of Women’s Business Council of the Philippines) since May 2016. One year later, and we can review what has happened to our circle of associates in ASEAN.

First, the realization that AWEN is a daughter of ASEAN. We are contained in the Charter and it was actually established under the Social Pillar of ASEAN. This makes us directly under the ASEAN Committee on Women or ACW. This means we did not just decide to group together, but we were organized for a better reason — to get together the private sector MSMEs in the member states to make bigger change for the lives of our fellow women entrepreneurs and businesswomen. In some countries like Indonesia which has 17,000 plus islands, members of IWAPI (our Indonesia focal point) has over 30,000 members. How do they connect with the rest of the 300 million women in ASEAN? Through AWEN.

Second, that we are though under the social pillar, we are really on the path of economic moves to better the lives of the women in ASEAN. Because economic empowerment is important in addressing social challenges, such as human trafficking, domestic abuse, and other reasons why women are marginalized in some sectors. In some countries, women still cannot own land, and are not able to apply for loans even if we are known to be good repayers of loans, globally speaking. Repayment rates of women borrowers are higher than male borrowers. Yet, access to finance is still an issue.

Third, our network allows us to have hands and feet across the region. And, of course, the brains to collaborate with well-meaning agencies of our dialogue partners like USA, Canada, Japan and Australia to name a few. And working with ASEAN agencies and offices who work with the United Nations, OECD, and other global multilaterals. I have been invited to a conference, a meeting almost every week which I share with my co-members so that our network can participate in most if not all these meetings. Recently, we were represented by our Malaysian focal point in an important meeting in Kuala Terranganu, Malaysia. Her presence also made us aware that some sectors still have not heard of us or what we do.

Fourth, because we can collaborate in putting up important meet-ups or conferences where our being ASEAN makes a lot of sense. We are similar, yet different, in our cultures, language and ways of doing business. While the ASEAN-Business Advisory Council (ASEAN BAC) has big business as members, we at AWEN support the MSMEs. This is why we put up conferences like STEAM Ahead in March 2017 here in Manila, exactly to leverage on Technology as a means to equalize the playing field as opposed to bigger business who have the strength to do so even by themselves.

Finally, in August, we will mount a week-long event from Aug. 28 to Aug. 31 to be monickered ASEAN Women’s Business Conference where each day will be a focus on various topics as sponsored by UNESCAP, Australia, USAID, and finally leading to the Philippines as host country of ASEAN on the final day.

Why network? Because it’s the way business is done, whether you are an MSME or a large corporation. But unlike playing golf, we may instead discuss over coffee or tea, or get down to serious business while travelling the 10 member states. For me and my business partners, we have invested time and resources to travel to Myanmar, Cambodia, and Laos as they are not the usual destinations like Bangkok or Hanoi. Kuala Lumpur or Jakarta are also already known to us. Next up will be Brunei in our ASEAN bucket list if you will. What is good now is that there is a friend or business associate in every part of ASEAN.

If travelling is not your cup of tea, then connect via the web or the net. The Great Women Program is our tool to connect to all our ASEAN sisters. We have added ASEAN to its very name — now Great Women ASEAN. In our Manila showroom, we feature textiles and crafts from Laos, Myanmar, and Indonesia for example. You need not go far to appreciate ASEAN’s culture. You can also touch the fibers that are similar yet distinct through textiles and other weaves. And it will be the same unique experience when you go to Malaysia, Cambodia and Brunei — soon, very soon.

So why are we here today? To weave the threads to bring 300 million women together. To connect these women to the bigger markets. Already, the South Asians are inviting us to collaborate — Nepal and India have signified interest to connect to AWEN. Slowly but surely, even Japan has an ASEAN-Japan Center to connect us to markets. And Korea and Australia are just a stone’s throw from us, too.

So, we are AWEN. We will work together with ASEAN-BAC and AMEN (ASEAN Mentors) because we believe economic moves will be the driving force for social issues to disappear into oblivion, sooner if not later. And it will happen before our watch is over, hopefully.

The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.

Pacita “Chit” U. Juan is the Chair of the Trade, Investments and Tourism Committee of the MAP. She is the Chair of the ASEAN Women Entrepreneurs Network (AWEN); Chair of the Women’s Business Council of the Philippines (Womenbizph); and Founding Chair of the Women Corporate Directors PH chapter.

You may reach her at Linked in:

Pacita Juan or Twitter

@chitjuan

puj@echostore.ph

admin@womenbiz.ph

map@map.org.ph

http://map.org.ph

My two cents worth

To Take A StandRafael M. Alunan III

Often, we’re called a soft society that gives in easily to weakness of mind and virtue, one that places personal/selfish/vested interests ahead of the national interest and common good.

Unlike the countries who were once like us but have picked themselves up from the floor and moved ahead in life — like India, China, Taiwan, Japan, South Korea, Indonesia, Malaysia, Thailand and Vietnam — to name a distinct few, we seem stuck on carefree mode, short on patriotism, self-sacrifice, and united purpose.

Consequently, our evolution is taking much longer than usual until we get serious and get our act together. This is reflecting in the quality of our governance and our citizenship. Good government remains elusive because the state of our citizenship remains much to be desired. A poor education at home and in school translates to poor societal behavior and choices.

Bad choices are reflected in the local and national elections where many of those who win are unfit to serve the country and the people. They subsequently appoint the unworthy whose are principally tasked to serve only their vested interests which is to enrich themselves, create dynasties and to stay in power indefinitely.

This feudal condition has entrenched oligarchies characterized by entitlement, exclusion, oppression, impunity, injustice, violence, and extremism. It has become a generational problem so deep that it will take extraordinary measures like Japan’s Meiji era of transformation to pull us out of our sinkhole and catch up with the rest of the world.

Security ranks high on our national agenda today. The threat of terrorism, transnational organized crime led by drugs, cultural dysfunctions and psychosocial resentments have turned to harsh realities. Marawi is a case in point. How did that come to pass?

Because of our interwoven world today in which incidents, images and messages travel within seconds from one part of the world to another, we must pay attention to those security and crisis challenges and how they intersect with local issues and concerns.

We must become familiar with the root causes of the conflict and the complex web of factors that keep the flames of extremism burning. We must examine the sociopolitical dimensions of governance in general and its contribution to our security or otherwise, in particular.

As the experts keep saying, security and crisis management require a whole-of-nation approach — both government and society working in common purpose to prevent, defeat, and recover from crises. It calls for the combined outcome of security actors, civil society and individual citizens.

Most important to good governance are: good moral grounding; patriotism; willingness to serve the nation; teamwork and perseverance by our public officials, elected and appointed. We need to leap forward; we need to take a giant leap to that desired state of professionalism we sorely lack today.

The state of our knowledge, attitudes, and behavior are the bases of our backwardness. That’s reflected by our socioeconomic-cultural gaps; deeply rooted corruption in and out of government; and widespread ignorance about our history, geography, and how things work. We are generally unethical, negligent, apathetic, happy-go-lucky, and resist change.

We must transform. We’ve already had many wake up calls that we’ve ignored. EDSA 1 and 2; the lingering insurgencies and rebellions. Marawi is another wake up call.

Since we’re now into the second year of President Duterte’s presidency, here’s my assessment of his first year in office. Let me lay the premises. Any president:

a) inherits accumulated baggage from the past that were not attended to as well as unfinished business;

b) his/her own administration adds to that unwanted baggage and unfinished business;

c) has to find ways and means within the limits of his/her support from within the government and society to reduce accumulated baggage and unfinished business;

d) at the same time, push his/her own agenda to build the nation that aims to raise quality of life for all Filipinos.

That’s what a responsible president would do, so that by the time he hands over the reins of succession, the country would by then be in better shape than when he received it.

That is how I view this president, our President, who came to power already hobbled from Day 1 by:

a) crime, corruption, bad governance and anarchic citizenship that accumulated through the years,

b) and a creaking bureaucracy where only a minority are true to their oath of public service and up to the challenge despite the risks.

Yet, through sheer will and focus, shaking off his aches and pains as best he can at his age, he is gouging out the cancer driven by real anger at the situation the country’s in, cursing anyone and everyone that has contributed to it, and beating new paths to a better Philippines.

There will always be a long list of to-do such as undo, trash, delete, reboot, create, back-up, develop, correct, merge and continue. That’s the dashboard and the challenge to President Duterte is to keep the ship of state, with less baggage, moving forward faster than before.

Any president is only as good as the people he has. He needs a good bureaucracy and a behaved citizenry to support his nation-building agenda. But he also needs to build a complete team, a deep bench, and a core group of alter egos to carry out the “commander’s intent” and instructions smartly, wisely and professionally.

There are best practices that he can draw from here and abroad, and use to build on. Process and consultations are important to generate widespread “buy-in” for “whole-of-nation” solutions. At times, he must govern by instinct, and be decisive based on the information he/she has on hand, when time is of the essence. That’s where the value of his long years as hands-on mayor is most appreciated.

Perfect president? Forget it. No such thing on this planet. An evolving president from good to better to best that’s trying to fill up the glass at a higher level than his predecessors reached? Yes, that’s fine by me. That’s the best that we can have and hope for.

Rafael M. Alunan served in the Cabinet of President Corazon C. Aquino as Secretary of Tourism, and in the Cabinet of President Fidel V. Ramos as Secretary of Interior and Local Government.

rmalunan@gmail.com

map@map.org.ph

http://map.org.ph

In short supply

Fence SitterA. R. Samson

Scarce items like oil, diamonds, beautiful women who address you with terms of endearment, and billionaires are prized commodities. They are valued because they are in short supply.

A more common finite resource that behavioral economists surely take note of too is time. How we allocate and spend time illustrate the dynamics of supply and demand.

A powerful person, who is known to make large donations to favored causes as well as having the authority to dole out jobs with salaries that allow the purchase of a car twice a month, is certain to be in higher demand than another who is unknown and needs not just an introduction before he delivers a keynote address in a small assembly but also some justification of his surprise inclusion in the event.

Ordinary social dealings even with an occasional partner may also involve the principle of scarcity value.

Someone who is always available and ready to drop everything, including a lunch set three weeks before (I have to attend to an emergency involving my eye bags) just to accompany on a whim the desired object of desire provides a lopsided asymmetry of supply and demand, favoring the latter. The target of lustful thoughts becomes too confident of her amorous charm to even entertain doubts of not always getting her way. She feels free to offend by whimsically bailing out of a previously set appointment if she suddenly feels too lazy to dress up and drive all the way through traffic just for lunch, or even dessert — so, can you just go have your Caesar salad on your own, sir.

The gap between supply and demand in terms of appointments widens when the number of powerful people is overtaken by demand to see them from petitioners or those who simply want to have bragging rights over chance encounters — I was with him at a wedding last week. (Was he a waiter at the reception?)

There are only a set number of waking hours in the day even for people suffering from insomnia, say a maximum of 18. Of these, some minutes are allocated to uncalendared personal time for intimate encounters. (Don’t check with my secretary.) Mathematically then, social and business engagements account for no more than 10 hours maximum, even for workaholics. And that can include travel time and rants over traffic woes and declarations of high personal taxes paid to eliminate such inconveniences — do I need to get a helicopter to get to my gigs?

Availability then of unallocated time is limited and perhaps only available two months hence. Still, the Fence Sitter’s Rule on scheduling states that the farther away the designated date of an appointment, the higher the likelihood of cancellation. Thus, the best schedule for a rush meeting is usually a forty-eight hour time window. Beyond that, cancellation becomes too tempting.

Can scarcity be artificially created?

It is not enough to restrict supply. The other part of the equation involves demand. Thus, a loss of interest or demand can erase even scarcity value. If there is declining demand for a product, in this case somebody’s time, availability or its lack becomes irrelevant. It can become a case then of unsold inventory. In the book trade, unsold items stay on the shelves, and then eventually consigned as “returns.” So, artificial scarcity is difficult to manage in the face of declining demand.

The point of creating artificial scarcity is to increase price or desirability. To restore its value as something treasured, or at least looked forward, can one make time less available? Quitting from the scene is the extreme form of making one’s time unavailable.

And yet this game can end badly and played for keeps. What if no one actually wonders what happened, or worse having one’s absence unnoticed? Unavailability only leads to a search for substitutes and maybe the unexpected conclusion of finding a superior alternative — why didn’t we think of this before?

As in all commodities, including the scarce and therefore pricey ones, disruption can be a simple case of demand moving away or latching on to substitute products. After all, who could have imagined ten years ago that phones would replace cameras, radios, encyclopedias, and intermediaries? Supply becomes irrelevant when demand drops to zero.

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

ar.samson@yahoo.com

Singapore home prices extend decline on curbs

SINGAPORE — Singapore home prices fell in the quarter ended June, extending the drop in property values to a record 15th quarter as most measures to cool the market remain in place despite a slight easing in March.

An index tracking private residential prices fell 0.3% in the three months ended June 30 from the previous quarter, according to preliminary data from the Urban Redevelopment Authority released Monday. The almost four-year decline in prices is the longest since the data was first published in 1975.

Singapore’s leaders, determined to keep a lid on home prices in the city-state, have unleashed a series of measures to cool the market since 2009. The government in March rolled back some property-market restrictions for the first time in eight years, although has cautioned that those adjustments don’t signal an unwinding of the measures.

“We don’t expect a recovery in prices this year — even though we have seen some improvement in market sentiment — as the central bank has indicated it won’t be easing curbs anytime soon,” said Nicholas Mak, head of research at SLP International Property Consultants in Singapore. “We will continue to see a small gradual decline in prices for the rest of the year.”

Prices in prime areas declined 0.9% in the quarter, while suburban homes were 0.4% lower in the three months ended June, the data showed.

In March, the government reduced stamp duty imposed on sellers and some mortgage restrictions. That helped stoke optimism that Singapore’s property market is rebounding, with home sales jumping and developers making more aggressive bids at land auctions. Home sales in the first five months this year have risen about 75% from the same period a year ago, data showed.

While the property market has stabilized, it is “not time yet to ease the cooling measures. They remain necessary,” Ravi Menon, managing director of the Monetary Authority of Singapore, told reporters on June 29 at the release of the bank’s annual report. Mortgage rates are very low and “the risk of a renewed unsustainable surge in property prices is not trivial,” he said last week.

“Demand was already on the upswing before the easing of the measures in March 2017, driven by more attractive prices and a perception that the market is closer to the bottom,” said Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle, Inc. The announcement from the central bank “would, however, temper unrealistic expectations of some buyers so that they will not be carried away by exuberance and be more measured in their purchasing decisions.” — Bloomberg

A view of private and public housing in Singapore on March 10 — AFP

ADVERTISEMENT
ADVERTISEMENT