Home Blog Page 14008

Unpacking the mystery of wobbly suitcase syndrome

PARIS — You are rushing to catch a train or plane and suddenly the suitcase you’re pulling starts to rock from wheel to wheel, threatening to flip over. Tens of millions of travelers suffer this annoyance every day, but up to now, nobody could say exactly why.

Is conflict-oriented trade unionism dead?

Is conflict-oriented trade unionism dead?

Comey testifies

Former FBI director James Comey is sworn in during a hearing before the Senate Select Committee on Intelligence on Capitol Hill June 8, 2017 in Washington, DC.
Comey took the stand Thursday in a crucial Senate hearing, repeating explosive allegations that President Donald Trump badgered him over the highly sensitive investigation Russia’s meddling in the 2016 election. / AFP

Moody’s keeps Philippines grade but flags risks

By Melissa Luz T. Lopez, Senior Reporter

MOODY’s Investors Service kept its rating on the Philippines yesterday, even as it flagged local political developments and potential overheating risks that could weigh on the economy’s otherwise robust growth potential.

In a statement, the debt watcher affirmed the country’s “Baa2” rating for the Philippines’ long-term issuer and senior unsecured debt ratings — a notch higher than minimum investment grade — and kept its local currency and foreign currency senior unsecured ratings unchanged.

The rating outlook — for up to two years — remains stable, signalling a balance between positive and negative developments that could affect the Philippine economy.

“The Philippines’ Baa2 rating reflects high economic strength that balances the country’s large scale and rapid growth against low per capita income relative to peers,” Moody’s said.

“Our assessment of its institutional strength incorporates a long track record of sustaining macroeconomic and financial stability, despite weaker Worldwide Governance Indicators as compared to other investment grade countries.”

Moody’s expects gross domestic product (GDP) to remain above six percent, but flagged early signs that growth could slow after hitting 6.9% in 2016,  dampened by the impact on economic activity of a worsening of the security situation.

“We expect growth to be sustained at above six percent per year over the next two years, driven largely by the private sector,” the credit rater said.

“Set against that positive trend, domestic political developments could potentially undermine institutional strength and economic performance,” Moody’s added.

“Moreover, while broad macroeconomic stability has been maintained so far, a number of metrics indicate material capacity constraints that signal a risk of overheating.”

Despite these concerns, Moody’s said that regulators have so far responded well to emerging signs of overheating, with the central bank taking ample prudential measures to keep inflation and credit growth in check, as well as bank capitalization healthy.

“Looking ahead, the government’s ability to continue to contain these rising pressures will depend in part on its efforts to raise investment in order to enhance infrastructure and address economic bottlenecks,” Moody’s said.

The government’s infrastructure plan is seen to fuel GDP growth closer to a 7-8% target, although Moody’s said that the P8.4-trillion spending goal till 2022 is “unlikely to be achieved in… entirety.”

Philippine GDP grew by 6.4% in the first quarter, slower than the 6.6% clocked in the last three months of 2016 and below the government’s 6.5-7.5% goal this year.

A steady stream of inflows from worker remittances, exports, receipts from business process outsourcing and foreign direct investments should support domestic activity, coupled with a young population that will stimulate further consumption, Moody’s added.

These come against the backdrop of a declining share of government debt, which slipped to 38.3% of GDP in 2016; a “healthy” banking system; and hefty reserves held by the central bank at $82.066 billion as of May, which can cover over five times the country’s short-term external debt.

On the other hand, the debt watcher flagged risks from the ongoing conflict in Marawi City — which has stretched to over a month as government forces struggle to reclaim land from extremists aligned with the Islamic State — as one that could undermine investor appetite towards the Philippines.

“Downside risks include a worsening of the Islamist insurgency that could lead to an expansion of martial law, undermine domestic business confidence, and disrupt economic activity including in economically significant regions,” Moody’s said, referring to earlier threats by President Rodrigo R. Duterte to stretch his martial law declaration to the rest of the country.

It also flagged the “confrontational” stance taken by the Duterte administration in pursuing its political agenda as a concern, saying that it could “potentially reduce the effectiveness of governance” and pull back investments.

“To date, neither appears an immediate concern. These events do not appear to have weighed on economic growth,” Moody’s analysts said, noting that the government’s reform agenda remains intact, as seen in the passage of its tax reform plan at the House of Representatives.

Looking ahead, an improvement in the political climate, coupled with success in addressing symptoms of the economy’s overheating will help push the Philippines’ ratings upward, while a “rapid escalation” of domestic conflicts will likely weigh on the grade.

“Upward pressure on the sovereign’s rating would arise should the predictability and stability of the political climate improve, or should the government succeed in defusing signs of prospective overheating in the economy and financial system,” the debt watcher said.

A higher credit rating would mean lower borrowing costs for the country, as it makes the Philippines more attractive and reliable for investors to pour funds into.

In a separate June 19 note, Moody’s said the chances of the Philippines defaulting on its debt have been “abating”, as economic growth remains robust and state debt low.

Consumers give e-commerce a leg up

By Leo Jaymar G. Uy Senior Researcher

CONSUMPTION has been a strong point of the Philippine economy, as household spending makes up 60% of the country’s gross domestic product (GDP). With this, many are looking at new frontiers for growth. This next frontier, many say, can be found in electronic commerce (e-commerce).

I received a message from my sister

My sister is a trans‑woman. Maybe because we were the two middle children that she became the one I am closest with. Maybe it was also because we had the same sensibility: we didn’t go out as much, we stayed at home after school, we didn’t really have friends, whenever we’d get sick we cried because my mom didn’t let us go to school. Our pastime involved watching reruns of America’s Next Top Model and Project Runway and rooting for different finalists, with her choice always ending up winning or getting farther than my pick. We are two years apart. I graduated ninth out of my elementary class composed of 21 sections. She graduated second. In our respective high school graduations, I finished salutatorian, she finished valedictorian.

She took care of my dad when he was sick. She was already in college then, doing all-nighters for design plates. My mom was working, my other sister still lived with her husband, I was busy juggling school and work.

Last year, after seven years in university, she graduated with a degree in architecture. It took her 2 years longer to finish her course, mostly because we didn’t have the money to print the design boards for her thesis. In those seven years she went to school with money just enough for her fare, no extra for food or anything else.

Weeks after her graduation, we found an employment opportunity. We were prepared, we made a resume and wrote her application letter.

The night before her interview, she messaged me and asked me how interviews went, asked me what questions were usually asked. She asked me what I thought she should wear. The day before her graduation, she asked me what kind of shoes would look best with her dress. She showed me pictures, discussed with me what made this or that a better choice. This was the same routine, except that this time, it felt like she was second‑guessing herself. She wore a skirt when she presented her thesis, she wore a dress in her graduation ceremonies. It was logical to me that if she wanted to wear a skirt, she should wear one. So when she asked me if she should wear a skirt, I told her to wear a skirt. I told her to wear what she wanted. I told her that she should wear what she wants to.

Art Erka Capili Inciong

Days after the interview, I received a message from her. She asked me whether or not she should still wait for the response of the company she applied for. She told me that when she was about to meet the company’s president as part of the final application process, the company’s vice‑president for human resources came to her and told her that the president was in a meeting. The VP told her that they’d just reschedule the final interview. The VP said that they’d call her back. Weeks passed, and she didn’t get that call. This, after everyone who went through the same application process (who met the company president on the same day they were interviewed) had already received their application results. This, after the same VP told her that she had a great interview and that she got high scores in the exams. Weeks came and went and, when she tried to inquire, the same VP told her that their company did not allow “severe cross‑dressing.”

During the conversation, she asked me, “Should I wear a skirt for my next interview?” This has been the fourth or fifth time she asked me this. Always, my answer is “Wear a skirt, wear what you want.” When she gets rejected, my go‑to response is “hayaan mo sila, baka mga tanga nagtatrabaho diyan.” I would’ve decided to respond with a variation of these responses today, but it has been a month now and she gets the same treatment. The last time, in a skirt, she was told that she cannot use the women’s room. The last time, she was asked if she was open to choosing “more normal clothes” if ever she gets hired. I can only imagine how tiring it is. I can only imagine how hard it is to have your very being discredited. I can always insist that she can wear what she wants to wear, but I can only imagine how difficult it is to be at the receiving end of rejections that dismiss your ability because you chose to wear a skirt.

So today I asked her, “Ano feeling mo?” “Hindi ko na alam, nabibwisit na ako… Nakakadepress.”

I didn’t know how to respond. I just stared at my phone’s screen. I was thinking of what to say. I was thinking of how to answer without making her feel that even I didn’t know the answer. That even I—the only one in my family to get into UP, the first one to finish a proper degree, have a passport and go overseas, the first one to get a government ID, even—can’t do anything to make these stupid people understand how smart she is, how she finished college with almost no proper support from our family, what a great person she is. She even continued taking care of my dad after he almost hit her. She even asked me to attend his wake.

I just stared at my phone’s screen, thinking of what to say. I want her to do what she wants. I want her to be able to wear a skirt. After all she’s been through, I would think that she deserves a chance to choose who she wants to become, how she wants to express herself. I would like to think that she deserves to wear a skirt. At one point we were almost agreeing that she can try to wear more androgynous clothes, but I thought why is wearing a skirt a problem? Why does she need to change how she wants to present herself? I wouldn’t want her to feel that she can’t do these things—these things that make her who she is. I don’t want her to be hurt, dejected. I don’t want her to be discouraged. I felt helpless. But, I can only imagine how she felt. I can only imagine how difficult it is to be told, time after time, that she can’t be herself.

After a long silence on my part, she messaged me again. “Huy.” I didn’t know what to tell her, but she needed my response at that very moment. I didn’t know what to tell her and I can’t afford to show her that I am weak, I can’t do anything, I am just a literature major, the best thing I can do is teach the basics of fucking plot. I can’t afford to be weak, but I am not sure how not to be.

Comparative net FDI inflows to select Southeast Asian economies

Comparative net FDI inflows to select Southeast Asian economies

Why we need ‘sexy’ robots in the Philippines

How long do we have until robots gain sentience and thrust us into an Asimovian dystopia? Ely Ampao of PhilRobotics and JumpSparc said that given the great strides the world has made in robotics and artificial intelligence, we have more or less a decade until humanity creates our future robot overlords.

But kidding aside, the Philippines is lagging behind other countries when it comes to robotics. In an interview with SparkUp at the sidelines of the Startup Project expo at the University of Sto. Tomas last June 3, Mr. Ampao said that while they’re doing their part in making robotics more accessible to the public, they’re facing two major problems in trying to make it more popular in the Philippines.

First, no one has made robots “sexy” in the Philippine context yet.

And no, we’re not talking about robot companions ala‑Gigolo Joe (Jude Law) in the 2001 Spielberg movie A.I. Artificial Intelligence. “Robotics in the Philippines isn’t sexy. When I say sexy I mean it makes people go ‘wow’ when they see it,” Mr. Ampao explained. “I think someone has to make our own version of robotics. We’re too influenced by the West and the Chinese.”

Indeed, most science fiction influences stem from Western nations and Japan nowadays, a far cry from its Czech roots with Karel Capek’s 1920s play Rossum’s Universal Robots, which popularized the word “robot”. When we hear of robots, we think of Japanese mechs and American cyborgs. What does the Philippines have to offer? The 2007 Metro Manila Film Festival movie Resiklo starring Bong Revilla?

It is in the context of making “sexy robots” that the role of art and media comes in. “Maybe if someone could make a television show or a movie with Philippine robots, people would get interested in it,” Mr. Ampao said. It is here where science needs art, and art can find itself inspired by science.

The second problem robotics in the Philippines face is the perception that it is an expensive field.

“Hardware can be expensive. That’s the major deterrence that we’ve discovered,” said Mr. Ampao. “That’s why we’re also promoting Hebocon where you can use everyday stuff to make robots.”

And robot enthusiasts in the Philippines early this year set up their own informal Hebocon, with robots made of chichirya wrappers and barrel men. JumpSparc is also working with schools, which have the money to invest in robotics programs and short courses.

“We’re talking with our student ambassadors to have mini meet‑ups again and we’re trying to get another set of mini‑workshops. Venues where people can play around with robotics,” said Mr. Ampao. “I think that‑s the way to do it, get regular meet‑ups going.”

Despite these issues, Mr. Ampao remains optimistic about the future of robotics in the Philippines. “We live in exciting times,” he said, citing the proposals in the Senate for a Philippine Space program. “And for that we need more scientists and more techies. Bring them back here from abroad.”

Out of the closet, into the clothing industry

Afashion designer profiled by British Vogue sashayed in the retail industry in 2009 with absolute honesty—the complexities of her gender and sexuality as a lesbian.

“I consider the LGBT as an inspiration,” Kaye Morales told SparkUp in an interview at her atelier in San Antonio Village, Makati City. True to form—and with the memory of struggling with clothing choices as a young boyish girl—the 33‑year‑old Ms. Morales is a purveyor of designs that cater to people of “all sexual orientations and gender expressions.”

These styles range from oversized and edgy pieces, to fabrics bursting with rainbow colors—the global colors of LGBT (lesbian, gay, bisexual, transgender) pride.

Her direction sprung from her desire to be free. “I didn’t want to work while hiding something,” she recalled. “At one point, I had been put out to my friends, but not in the industry where I worked. I wanted to be real and I wanted people to know the real me, so I can work properly.”

Art Samantha Gonzales

Her sartorial passion began to express itself at the De La Salle‑College of Saint Benilde, where she took up interior design, then production design. She was aware of being always noticed for her fashion taste.

The call of the catwalk drew her to the SoFA Design Institute in Makati and eventually to London’s Central Saint Martins, whose notable alumni include Alexander McQueen and John Galliano.

“I was still studying, but a lot of fashion editors were already recognizing my works,” she said. “That’s when I decided to start my business.”

Initially managing two brands—her eponymous clothing label which featured avant‑garde pieces, and Schizo, which offered street wear—she later merged the two to avoid brand confusion among her customers.

Today, Ms. Morales continues designing and running a business. Gazing at the spotless white floor of her shop that lazy weekday afternoon, she tells a story about receiving an offer by the country’s largest retailer to set up shop in their malls, which she had to turn down. “But I still need to study mass production,” she says in hindsight. Still, among her plans is opening more outlets, including, perhaps, outside the country. So far, her mother is her main investor.

Late last year, she diversified and added to her portfolio Nectar, a Bonifacio Global City-based luxury nightclub for the LGBT. She is a co‑owner.

“It’s really a hard business,” she said about the cutthroat industry. “Every day there are new designers. But I can say that I have become braver in my seven years so far.”

“I want to prove that I have worth even if I am a lesbian,” she finally declares.

Ayala Land creates new capacities for Sicogon Island locals

Sponsored Content -SQAYALA Land (ALI), together with joint venture partner Sicogon Island Development Corp. (SIDECO), is developing the Sicogon Island Tourism Estate in support of the government’s Western Visayas tourism drive.

Where does your service charge go?

Ah, service charge: our favorite excuse not to tip. It is often an unwelcome surprise that comes at the end of a (hopefully) delicious meal at a nice, sit‑down restaurant. It serves as a mandatory tip of sorts, an additional 8% to 10% computed from your original bill. How many times have you gone over the receipt, searched for the magic words and exclaimed, “Oh, there’s service charge. No need to tip!”?

But is this service charge really going to your waiter’s pockets, just as how the tip works?

If we go by the Labor Code of the Philippines, Article 96 has this to say: “All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of eighty‑five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their wages.”

If you and your friend go to a café that charges a ₱100 additional service charge for food that costs ₱1000 (sans value added tax), ₱85 of that should be split between all of the restaurant staff that made your scrumptious meal, and ₱15 goes to the restaurant owner.

But in an informal survey of restaurants ran by SparkUp in Quezon City, asking wait staff—ever so politely—if they really do get their 85%, their response is that it’s the other way around. Almost all of the service charge, around 85‑90%, according to the staff, actually go to the owners of the establishment. The leftover, 10‑15% gets split between the rest of the waiters and kitchen staff. Going by our ₱100 service charge example earlier, ₱90 of that would go to the owner. Assuming that our hypothetical café employs five more people, they get a measly ₱2 each for their hard work.

That arrangement, said attorney and former restaurateur Mark Brian Dela Cruz, could be perfectly legal, as long as the employees knew about the arrangement beforehand.

“What is under the Labor Code—85% for the staff and 15% for the management—is the minimum standard,” Mr. Dela Cruz explained in a phone call to SparkUp. “It is there unless the employers convey to the employee that 90% goes to the management and 10% goes to the employees, and they accept it in their contract.”

“By virtue of that stipulation in their contracts, the employees know that they have not been shortchanged by their cut in the service charge,” he added.

Mr. Dela Cruz said that he used to manage a small restaurant with only one outlet, so the 85%‑15% split in the Labor Code was amenable to him. But it might be unfair to larger establishments. “If you are a big restaurant or a big chain of restaurants, you can not afford the 85%‑15% split because you have to account for operational costs. It’s hard to compare the operations of big restaurants to small ones. You have to look at the bigger picture.”

So perhaps it’s time to reconsider tipping the waiters for their hard work. If you have the extra cash, what’s a few pesos to show your appreciation to all the work that goes into your dining?

Tipping isn’t mandatory in our culture, but it would certainly be greatly appreciated (Emily Post has an extensive guide to tipping here). There’s an aphorism that goes: If you can’t afford to tip, you can’t afford to go out and eat.

How to turn spending pains to saving gains

Look back at the past few weeks, and try to recall what and where you have spent most of your money on. We’ll take a wild guess and say that the top four answers would probably be food, gadgets, travel and clothes. To be honest, we can’t really blame you. We understand how all these could really be so alluring. The good news, though, is we can actually turn all these pains of spending into gains for saving.

Art Erka Capili Inciong

You and your friends enjoy eating out and scouting the must‑try restaurants in the metro. It’s quite a splurge to do this often, but at the very least, make it worth your while. Explore the dishes and cuisines, and consider recreating them later on. Bring your latest concoctions to potluck dinners with friends, or better yet, earn money from cooking all these meals. Who knows, you might actually discover a new hobby, and a potential business idea, in cooking.

Art Erka Capili Inciong

The newest model is launching in a month and pre-ordering is a must. It’s got a bigger screen and increased megapixels for photos. But, is a new phone really necessary? Skip riding on the fad and maximize the potential of your current phone instead. Use it to earn yourself some extra income by taking a crack at photography and videography. Market your skills and maybe even sell your photos or videos online. Developing your craft and working hard will build you an impressive portfolio which clients will die to get their hands on.

Art Erka Capili Inciong

Traveling could be quite costly but it’s possible to get a portion of your money back after spending thousands for airfares, tour packages and accommodations. Use your skill in writing and create reviews of your many travel experiences. Who knows, your collection of honest and helpful stories and tips might thrust you into becoming a blogger and social media influencer. This might even bag you a couple of free trips and perks for your next travels. Exciting, isn’t it?

Art Erka Capili Inciong

Shopping is not something we could easily resist, especially when three‑day sales come by more often than actual paydays. Sometimes, impulse buying really cannot be helped. It may feel like a good purchase today, but after a day or two, it wouldn’t seem like a wise decision after all. Should you find yourself in this ordeal, there’s no need to fret so much. The good thing about this is it doesn’t really have to be money lost for you. You can opt to re‑sell clothes you haven’t used or even consider doing garage sales for items that are still worth someone’s money.

Remember, these tips are not to deprive you of spending anything for yourself. By all means, reward yourself from time to time for the hard work that you do. The key here is to never get stuck in merely spending and to keep an eye for opportunities in saving. We’re telling you, the possibilities are endless and you just have to be more tactical and creative in utilizing your current assets.

Push this idea of gaining even more and give investing a try. Learn more about the magic of compound interest and enjoy seeing your ₱10,000 at 15 years old exponentially grow into ₱100,000 (at an interest rate of 12%) by the time you’re 35. Wouldn’t it be exciting to see your money work for you this way? Or, why not even try investing in mutual funds or the stock market at an early age? Don’t only practice saving, but find opportunities to grow your current fund.

What we’re saying is enjoying some luxuries can potentially be sources of income for you as well. Buy and invest on experiences, not on material things and possessions. These experiences and skills will come in handy and will give you more leverage to turning these seemingly pains into actual gains. Not only will this grow your bank account, but it will also let you grow more as a person.


Clarissa Seriña‑de la Paz and Sharon W. Que are financial literacy advocates and the bestselling authors of “I Wish They Taught Money in School” and “Money Grows on Trees” Check out their books at www.lifestyleupgrade101.com. Get 10% off, plus a free notepad and bookmark, by sharing this story with the hashtags #MoneyMonday and #SparkUp. Remember to make your post public!