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Philippine sugar, independence, and US military bases

MAE MU-UNSPLASH

“The gross inefficiencies in our sugar industry have made the cost of production higher than the world market price. Yet we have lived and accepted these inefficiencies because the US sugar quota has enabled us anyway to sell our sugar at double the world market price. The unfortunate thing is that our sugar industry has been hostage to America because we can’t sell our sugar anywhere else.”

I wrote the above paragraph in September 1991, during the national discourse on the Treaty of Friendship, Cooperation and Security between the Philippines and the United States, or, in blunt terms, the extension of the treaty on the US military bases in the Philippines for 10 more years in exchange for economic aid worth $200 million every year. There were those who said that the extreme necessity and harsh reality of our national circumstances dictated that we approve the extension of the treaty. They said that the aid would allow us time to get our act together. We could begin to build a modern economy that is robust, one that is not vulnerable to attempts of military takeover or natural disasters such as the Mt. Pinatubo eruption just two months earlier that put the economy in a precarious state.

I argued that back in 1966, when the military bases agreement was amended to remain in force until 1991, we had 25 years to get our act together but we did not. And I cited the sorry state of our sugar industry as evidence of our lack of resourcefulness to rationalize our industries and thus improve the economy. As a sugar planter said then, domestic cost of production was almost 15 cents a pound, the world price was 10 cents and the US sugar market paid 21 cents per pound. That distorted production efficiency. The sugar producers had no incentives to cut costs and to diversify and develop by-products.

The export of Philippine sugar to the United States, independence of the Philippine Islands, and the US military bases first tangled in the late 1920s.

The grant of independence to the Philippines by the United States was seen by past generations as an act of benevolence and nobility in that it recognized the inherent right of a people to be free and that it renounced America’s imperialistic ambitions. In reality the grant of independence to the Philippines was in response to the pressure put to bear on the US Congress by powerful farm groups from agricultural states.

The large amount of Philippine agricultural products entering the United States brought down the prices of the farmers’ own produce. As the Philippine Islands were considered US territory, Philippine products entered the US mainland duty-free. By the period 1920-1930, export of Philippine sugar to the United States had risen by 450%, coconut oil including copra increased by 220%, and abaca in the form of cordage went up by over 500%.

The influence of the farm groups grew stronger when they were joined by prominent Americans opposed to America’s expansionist agenda. Various bills proposing the grant of independence to the Philippine Islands were introduced in the US Congress. Among them was a bill providing a 10-year transition period of free trade, imposition of quotas on Philippine products, and allowing the entry of 50 Filipinos a year. In exchange, Americans would be granted certain rights in the Philippine Islands. The bill was sponsored by Representative Butler B. Hare of South Carolina, Senator Harry B. Hawes of Missouri, and Senator Bronson Cutting of New Mexico.

As farm incomes dropped drastically during the depression of the 1930s, the bill received strong support from members of Congress from agricultural states, leading to its speedy approval into law as the Hare-Hawes-Cutting Act.

However, the Act had to be approved by the Philippine legislature. Senate President Manuel L. Quezon opposed the Act because of the quota provisions, the limit on the number of Filipinos allowed to enter the United States, the establishment of permanent US military and naval bases, and the indefinite power given the High Commissioner (the personal representative of the president of the United States to the Commonwealth of the Philippines during the transition period 1935-1946, more like an ambassador, in replacement of the Governor-General).

When Franklin D. Roosevelt became president in 1933, he recommended to Congress the revision of the Hare-Hawes-Cutting Law, specifying the removal of the provision on permanent bases, except naval stations. A new bill was introduced in Congress by Senator Millard Tydings of Maryland and Representative John McDuffie of Alabama. The bill provided the extension of free trade from 1935 to 1940 but no more than 850,000 long tons of sugar, 200,000 tons of coconut oil, and 3 million pounds of cordage each year could enter the United States duty-free. A graduated tariff on Philippine exports to America was to be applied beginning with the 6th year of the transition period.

The bill also laid out the steps toward true independence — the framing of a constitution and the surrender by the United States of sovereignty over the islands and recognition of the Philippines as an independent state on July 4, 1946. Full United States tariffs were to be paid after that date.

The new bill went through the Congressional mill smoothly, becoming law in 1934 as the Tydings-McDuffie Act. It was readily approved by the Filipino legislators because they considered it the best they could get from the colonial power at the time, and because there was provision of review in the future.

The United States quota system on sugar remained in force until early 1970s. In 1965, the quota system was amended to a total basic quota of 1,126,000 short tons for the Philippines. Exports of Philippine sugar to the US enjoyed preferential treatment until 1970. As foreseen in the 1990s, the domestic sugar industry is now in shambles.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He has been a politicized citizen since his college days in the late 1950s.

ABS-TV5 Partnership, SMC rate hike petition, and Budget 2023

“Consolidation means more visibility, more content, and more accountability and this will be good for media consumers.” I wrote that in this column on Aug. 15 when the news on a planned joint venture of two broadcast networks was announced. ABS-CBN will acquire 35% of TV5, and Cignal TV will acquire 38.9% of Sky Cable.

BRIEF EVOLUTION OF ABS-CBN AND TV5 PARTNERSHIP
These four reports in BusinessWorld this month summarize the quick evolution of the planned deal:

“Pangilinan media group plans joint venture with ABS-CBN” (Aug. 5)

“ABS-CBN, TV5 sign landmark deal that includes SkyCable” (Aug. 11)

“ABS-CBN, TV5 partnership to face scrutiny — NTC” (Aug. 12)

“ABS-CBN, TV5 ‘pause’ partnership to face concerns” (Aug. 25)

Congress and the National Telecommunications Commission (NTC) quickly intervened in otherwise purely corporate affairs and deal-making. This is wrong. Here are five reasons why.

One, there is no merger and acquisition (M&A) that will happen, only a joint venture (JV) where content-rich ABS-CBN will have airspace via TV5 which has franchise to operate as TV network.

Two, there is no threat of a monopolistic position because the No. 1 TV station, GMA Network, Inc. (with gross revenues of P19.3 billion in 2020, and P22.4 billion in 2021) is not involved. On the contrary, there will be better competition with GMA because TV5 is still far out from the competition — it is not even in the Top 1,000 Corporations — while ABS-CBN has been weakened by three years of consecutive net losses, P8.6 billion in 2019, P11.9 billion in 2020 (see Table 1), and P5.7 billion in 2021.

Three, both Sky Cable and Cignal TV may be justified to have a JV because their combined net income is thin, P0.05 billion in 2018, P0.55 billion in 2019, P0.40 billion in 2020. Pooling of resources and a cutback in some expenses will help both companies optimize revenues for their shareholders and employees. Newcomer Converge ICT has 10 times the net income of these two firms combined in 2020.

Four, the NTC opposition to the JV is not valid because the NTC can continue its scrutiny of previous ABS-CBN violations that resulted in non-renewal of its franchise in 2020. It is not merging with TV5, it is not being acquired by TV5, it retains its corporate identity as ABS-CBN.

Five, Congress should focus on scrutinizing Budget 2023 of P5.268 trillion, and the revenues and borrowings needed to finance such huge spending, as the target approval of end-September is fast approaching before the House-approved budget is submitted to the Senate. Congress should focus there and not on corporate matters.

The partnership of these and other corporations should proceed with no or little intervention by Congress. There will be more competition in free (non-cable) TV, more content and information for the public, and more checks and balance as the “fourth estate” (which some politicians want to cripple to escape accountability).

SMC PETITION FOR POWER INCREASE
These two recent reports in BusinessWorld might send another chill down the spines of consumers in the Meralco franchise area:

“SMC power unit says losses hit P15B, seeks rate hike” (Aug. 2)

“SMC unit warns of power price surge starting Oct.” (Aug. 24)

San Miguel Corp. (SMC) has two power generation companies (gencos) — San Miguel Energy Corp. (SMEC), a coal plant in Sual, Pangasinan, and South Premiere Power Corp. (SPPC), a natural gas plant in Ilijan, Batangas — which it declared had incurred combined losses of P15 billion: P10 billion in 2021, and P5 billion in January-May 2022.

SMEC committed 330 MW and SPPC committed 670 MW, for a total of 1,000 MW, to Meralco from December 2019 to December 2029. SPPC has asked the Energy Regulatory Commission (ERC) for a rate increase from January to May 2022 of P0.80/kWh (from P4.30 to P5.10/kWh), and SMEC asked for a big increase of P4/kwh (from P4.30 to P8.30/kWh).

SMC issued notices of termination of their power supply agreements (PSAs) to Meralco, blaming the unexpected “change in circumstance,” especially the global surge of oil and coal prices. If the ERC will not give them the requested relief, the termination will be effective on Oct. 4 or five weeks from now.

SMC’s petition is understandable — but if granted by the ERC it can be dangerous. For two reasons.

One, it will set as a bad precedent that PSAs and contracts can be revised and amended depending on one’s corporate influence. Bidders can shrewdly offer a low price to ensure winning a supply contract and, when things go bad, lobby to change the contract. If granted by the ERC, they must also grant PSA revisions and rate hike adjustments of other gencos that will come to them for similar reasons.

Two, both SMEC and SPPC benefitted from previous low fuel prices, with combined net income of P15.75 billion in 2020, and yet there were no petitions to lower their contract prices. Other gencos of First Gen (EDC, FGPC), Aboitiz, even NPC were less lucky in 2020 (see Table 2).

So, both gencos were rewarded when fuel prices were low and they must be rewarded again via relief when fuel prices are high. Since SMC is a very influential conglomerate in the country, the ERC or the courts may likely grant their petition. If so, there are two possible compromises.

One, any change in existing contract rates must be based on marginal cost, not full recovery; and keep the relief to bare a minimum, just enough to continue operations and not close down.

Two, the gencos that are granted relief in contract amendment may be disqualified from participating in future competitive selection processes (CSP) as they have a track record of petitioning to change rules midway.

BUDGET 2023 AND HIGH INTEREST PAYMENT
The proposed budget for 2023 is huge — P5.27 trillion — but the good thing is that it is just a 4.9% increase over this year’s budget, which is 9.2% higher than 2021’s budget. Interest expenses remain high — from P300+ billion a year few years ago to P500+ billion a year in 2022 and 2023. It comprises 10-11% of the total budget.

Salaries, allowances, and bonuses for government personnel kept rising in 2020 and 2021 even when many workers and professionals lost their jobs and businesses during the two-year COVID-19 lockdowns. Personnel services including pensions will reach P1.6 trillion in 2023.

There is high inequality in the pensions of military and uniformed personnel (MUP) vs. civilian personnel. In 2014, the MUP pensions were 18 times larger than the pensions of civilians. This further rose to 22 times in 2016 and 2021, 41 times in 2022, and are projected to decline to 17 times in 2023 (see Table 3).

The Department of Budget and Management’s Rightsizing program for the various agencies will be important. Government size must taper down, giving relief to taxpayers. It is good that many of President Ferdinand Marcos, Jr.’s campaign pronouncements of many other subsidies are not being pushed through by the economic team.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

Judicial innovations: Driving citizen centricity

Never let a good crisis go to waste. It’s the universe challenging you to rise to the next level of potential.” This is a quote from Kristen Ulmer, the best female big mountain extreme skier in the world, a status she held for 12 years.

The COVID-19 pandemic of the past 900+ days is one such crisis. As we emerge from this unprecedented stage in humanity and start to bounce back and recover, the terms and phrases that reflect the best and the latest in management thinking such as disruptive innovation, digital transformation, agility, the new world of work, empowerment, and customer centricity have come back to the fore after more than a two-and-a-half-year hiatus. Certain industries — such as banking, retail, telcos, and BPOs to name a few — have been nimble and embarked on pivots to remain successful during the pandemic and it seems that these ground breaking and mind shifting management paradigms have never left them.

Global transformation expert Keith Ferrazi, in his latest book entitled Competing in the New World of Work, highlights that for organizations to be the best separate from the rest, “radical adaptability” is required. In the Philippines and in all countries, this organizational response to rapidly changing internal and external environments is an integral part of the New World of Work and it is happening in seemingly the unlikeliest of organizations.

The Philippine judiciary is one fine example. In a lot of other countries, a new field called Government Technology (GovTech) seeks to improve the lives of citizens and establish a more responsive public service. The objective is for the Government to deliver a citizen-centric user experience that makes things easier for all.

When Chief Justice Alexander Gesmundo, together with the Supreme Court en banc, crafted the 2022-2027 Strategic Plan for Judicial Innovations (SPJI), this citizen-centric user experience as an end state was at the top of his mind. This SPJI is anchored on four guiding principles, namely: timely and fair delivery of justice; transparency and accountability; equality and inclusion; and adaptability to technology. From these principles emanate three target outcomes: efficiency, innovation, and access.

Quoting a recent article from Rappler: “Before he was appointed Chief Justice, Gesmundo had taken on lead roles in several committees on reforms. As an example among other many reforms, the incremental transition to digital processes… enhanced Gesmundo’s name recall among the court’s users: the lawyers, litigants and even employees.” The same article confirmed that out of the three branches of government, people are least aware of what the Judiciary does. The ultimate customers are the end users of the first and second level courts with the judges serving as the faces of the judiciary. Everyone else in the judiciary organization exists to serve the judges, who are the internal customers. Awareness lies with the ultimate customers.

This SPJI has bolted out of the starting line and, this early, there are clear signs that the Chief Justice’s bold and ambitious plans will be realized. Here are some live examples from certain locations that must be scaled up and replicated nationwide over the long term:

1. There are amazing exemplars of first level (municipal trial courts, metropolitan trial courts, municipal trial courts in cities, and municipal circuit trial courts) and second level (regional trial courts) courts that are getting ready for the New World of Work. (NWOW) The NWOW is expressed in terms of three dimensions: Work, Workplace and Worker.

These courts did not “waste the crisis” by embarking on digitally driven e-courts, an automated case management information system that included e-raffling of the courts and e-payment of the legal dues. This system increased court efficiency and transparency by reducing court administrative workload and providing lawyers and litigants with easier access to case information.

Replication of these “courts of the future” that define the new world of work in the judiciary is scheduled for rollout over time and an e-court version 2.0 is planned for release. The workplace of these courts consists of a variety of interconnected digital devices including laptops, cellphones, desktops, selfie rings, wireless goose neck microphones, and smart videoconferencing TVs. The judges and court personnel, on the other hand, will have to be digitally savvy (a good number are already) in addition to the usual high competence and deep commitment that is required of judiciary personnel.

2. The effectiveness of the judiciary frontliners — judges and executive judges — is measured based on ensuring that both the case deadlines are met, and justice is fairly dispensed to all. This refers to adjudication, the legal process of resolving a dispute or resolving a case — which is one side of the coin of the role of judges and the executive judges. The other side of the coin is the tricky part.

This is the administration side such as procurement of supplies and equipment within their authority, the requests for hiring, posting vacancies, approving Maintenance and Other Operating Expenses (MOOE) within limits, preparation of reports required by the Office of the Court Administrator-Central Management Office, etc. Time devoted to administration consumes the available time for adjudication which ultimately affects the delivery of services to the public. The executive judges and judges must be saluted for balancing their primary adjudication work expected of them and the administrative work.

For the judges to be truly effective, they need to focus on adjudication work. Correspondingly, on the administrative side, this will involve supporting and strengthening the Office of the Court Administrator.

3. The judiciary is replete with Judicial Excellence awardees as recognized by a Society for Judicial Excellence within the Supreme Court. One common thread of these judge/executive judge/clerk of court awardees is the reduced number of case dockets during their stints in a court. Their effectiveness is multiplied severalfold if they are supported by competent and able judiciary personnel such as the Clerks of Courts, Legal Researchers, Stenographers, Sheriffs and other members of the team.

I strongly believe that transformation and innovation could thrive in any context. In the judiciary, the ingredients for success are there: leadership with political will, a strategic plan that promotes innovation, processes that will be driven by the internal and external customers, and a great sense of purpose to serve the people. It is just a matter of time before the judiciary becomes a prime example of what Government Technology could deliver in the Philippines. It may be a long road ahead but hopefully the judiciary will provide the spark that will spread like wildfire.

 

Ramon B. Segismundo is co-chair for Strategic HR Management of the MAP Human and Management Development Committee. He is founder and CEO of 1-HR.X Pte/ Ltd. Singapore, and a member of the Faculty of De La Salle University Graduate School of Business.

map@map.org.ph

rbsegismundo@onehrx.com

War, inflation stoke Japan fears over food security

MGG VITCHAKORN-UNSPLASH

RUSSIAN MISSILES pounding Ukraine have spooked Japan into boosting defense spending. Now, with tensions rising over the Taiwan Strait, calls are growing to address another security threat: shriveling rice paddies.

For decades, Japanese consumers have been eating less rice and fish in favor of more bread, meat and edible oil, leading the country’s calorie-based food self-sufficiency ratio to slump to 37% in 2020 from 73% in 1965 — the lowest among major economies. Toshiyuki Ito, retired vice admiral for Japan’s Maritime Self-Defense Force, said the government’s abandonment of rice paddies and other agricultural land is leaving the country more vulnerable than ever.

“They don’t do anything for national security,” Mr. Ito, now a professor at Kanazawa Institute of Technology, said about Japan’s ministries responsible for food production. “They think only about economic efficiency.”

The impact of higher global grain prices, fertilizer shortages and fuel inflation, exacerbated by a weaker yen, have already been filtering through to Japanese consumers in recent months, with supermarkets marking up everything form instant ramen noodles to ice cream. But any major blockade or disruption to sea lanes around China and the Taiwan Strait could have bigger implications than just price inflation.

Unlike the US and EU, Japan would have little to fall back on in the event food imports were to dry up. To ensure the country’s national security, it’s crucial for Japan to increase the amount of rice and wheat grown domestically, according to Nobuhiro Suzuki, a professor of agricultural economics at the University of Tokyo.

“In terms of national security, food should come before weapons,” he said. “If you don’t have food, you can’t fight.”

Japan’s shift away from a rice-dominated diet was driven in part by higher per capita income. An expansion in global trade ushered in more imported foods, while exposure to travel and television encouraged more diverse eating habits. The growing ranks of working women and single people also brought about lifestyle changes and the embrace of fast food — the country boasts the third-largest number of McDonalds outlets after the US and China.

Per-capita seafood consumption has fallen to under 25 kilograms a year from over 40 kilograms two decades ago, and those who choose fish are increasingly opting for fattier imports, such as mackerel and salmon from Norway and Chile, according to government data. Another major factor behind the decline in the self-sufficiency ratio has been Japan’s near-total dependency on imported grains for animal feed. That means most domestically raised beef isn’t counted in self-sufficiency calculations.

The increased reliance on imports worries former agriculture minister Hiroshi Moriyama. In June, he led a group of ruling Liberal Democratic Party lawmakers that submitted a report to Prime Minister Fumio Kishida, calling for more government action on food security.

“Through the Ukraine situation, we’ve realized that what you can do domestically, you should,” he said in an interview. “You have to produce as much as you can at home, including fertilizers and seeds.”

Consumption of the traditional staple, rice, has slumped for decades, while the percentage of wheat that’s produced domestically has halved over the past five decades to about 13%. Almost all wheat consumed in Japan is shipped from countries such as the US, Canada and Australia.

“What happens if China invades Taiwan?” asked Kazuhito Yamashita, a former agriculture ministry official who is now research director at the Canon Institute for Global Studies. “If Japan got involved, its own sea lanes would be destroyed. Food imports from the US, Australia and the EU would stop. The whole of Japan would lose physical access (to imports) and it would lead to famine.”

The government is in the process of carving out a new budget for food security as part of next year’s spending, not an easy task as the aging and indebted nation also seeks funds for a promised radical upgrade of its military. The Cabinet Office recently set out a new economic plan, which forms the basis for the next budget, calling for increased domestic production of animal feed along with wheat, rice and other foodstuffs. But that’s more easily said than done.

‘DOUBLE CROPPING’
One reason for the fall in domestic wheat production has been a decline in “double cropping,” in which farmers use their fields to grow and harvest wheat before flooding them to grow rice later in the year. An ageing and shrinking farming population, and the rise of part-time farmers who work other jobs and don’t have time for two crops, means most rice paddies lie unused for much of the year.

“I grow rice from May to October. From November to April it’s snowing, so I can’t do anything else,” said Itsuo Kenmochi, a third-generation rice farmer in Niigata, northern Japan. He said he’s struggled to make a living off the farm as production costs rise and rice prices fail to keep pace. “I’m doing this because I have the rice fields. If I didn’t, I would have given up,” he said.

Government officials and the farming industry have tried over the years to encourage consumers to eat more rice. Nearly all of the rice eaten in Japan — mostly a translucent, short-grain variety called Japonica — is grown in the country, and bureaucrats have calculated that getting people to eat just an extra mouthful of it at each meal could raise the food self-sufficiency ratio by 1%.

There’s been no success so far: the average Japanese person now eats 53 kilograms of rice per year, less than half of what was eaten in the mid-1960s.  Surveys have shown people are trying to avoid loading up on carbohydrates for health reasons, and an ageing population means fewer people have an appetite for extra servings.

Many younger workers also say cooking Japanese rice properly, which involves soaking grains for up to an hour beforehand, is too time-consuming. These days, people are more likely to start the day with toasted bread and yogurt, rather than with rice, miso soup and grilled fish.

Faced with declining rice consumption, and demand from the politically powerful farming bloc to support prices, the government has used a variety of measures to reduce rice production since around 1970. It currently offers subsidies to farmers who switch from producing rice for the dinner table to other crops including low-grade feed rice, and rice used for flour. Yet demand is declining faster than production, and wholesale prices have fallen over 20% in the past decade, according to government data.

Former agriculture ministry official Mr. Yamashita advocates what could be considered a radical strategy: abandoning the policy of reducing production, and allowing prices to fall.

By improving yields and expanding the area under cultivation, rice production could actually be expanded to 16 million tons a year from the current seven million, Mr. Yamashita said. The resulting lower prices would make Japanese rice more attractive as an export product. In the event of a contingency, the government could simply halt exports and the population could survive at least for a while on rice, he said.

Mr. Yamashita conceded there are barriers to restructuring Japan’s mosaic of tiny farms — the average area for an agricultural operation is 3.3 hectares, compared with 180 hectares in the US.

Some enterprising farmers have made the best of the aging and shrinking population by incorporating their neighbors’ fields into their own holdings. Among them is Mizuho Kaido, a 36-year-old growing rice in Toyama prefecture, about 250 km from Tokyo. She and her family have expanded their farm to almost 90 times its original size by renting fields from people no longer able to work them, and minimized costs by automating as much as possible. But she, too, is worried about the future of rice farming.

“People are letting go of their land due to old age,” she said. “I’m not worried now, but I have a sense of crisis about the next generation.”

Lawmaker Moriyama said he holds out little hope for a substantial increase in rice exports. Japan managed to sell only 22,833 tons of the grain overseas last year, compared with the 8 million tons exported by Thailand. Because of its high price, Japanese  rice remains a luxury item sold mainly at high-end supermarkets or served at sushi restaurants in cities like Hong Kong. At Singapore’s Cold Storage supermarket, for example, a 2 kilogram bag of Niigata rice costs 23.70 Singapore dollars ($17.14), more than three times rice from Thailand.

Mr. Moriyama wants next year’s budget to include subsidies for factories making fertilizer from manure, to get around the high import prices for chemical varieties. In the longer term, he said, Japan needs to rethink its basic law on agriculture, which is based on the presumption that inexpensive imports will always be available.

“Up until now, we were only thinking about efficiency,” he said. “Now it’s hard to assume that we can just import cheap products from overseas.”

The former navy official Mr. Ito said the government needs to stop allowing farmland to dry up, and should be prepared to buy up surplus production.

“If you’re really talking about national security, you need to invest more money,” he said. — Bloomberg

Thailand, Vietnam to cooperate in raising rice price in global market

TUAN ANH TRAN-UNSPLASH

BANGKOK — Thailand and Vietnam have agreed to cooperate in raising the price of rice in the global market, a Thai agricultural official said on Monday, following months of talks aimed in part at improving rural incomes.

“This is … the first time Thailand and Vietnam … have agreed to cooperate in lifting the price of rice in the global market,” Alongkorn Ponlaboot, adviser to Thailand’s agriculture and cooperatives minister, said in a statement after a fresh round of talks with Vietnamese officials.

Thailand and Vietnam began the talks in May. A Thai spokesperson said then that the objective was to raise the price of their rice exports, increase their leverage in the global market and boost farmers’ incomes.

The two countries account for around 10% of global production of rough rice and about 26% of global exports, according to the US Department of Agriculture.

It was not immediately clear when any price hikes would take effect.

Mr. Alongkorn said a summary of the latest round of talks and the recommendation to jointly raise prices would be presented to the agriculture ministers of both countries at an unspecified date.

“Will the goal be accomplished or not? I can’t answer. But today we have taken our first steps together as strategic partners in agriculture,” Mr. Alongkorn said.

The Vietnam Food Association and the Ministry of Agriculture and Rural Development of Vietnam did not immediately respond to a request from Reuters for comment. — Reuters

Ahead of parole, Indonesian militant regrets role in Bali bombing

INDONESIAN national flags fly at a business district in Jakarta, Indonesia, Feb. 5, 2021. — REUTERS

JAKARTA — An Indonesian militant has expressed regret for his role in the deadly 2002 Bali bombings, media reported on Monday, as news of his impending release sparks outrage in Australia.

Umar Patek was sentenced to 20 years in prison in 2012 for his involvement in bombings that ripped through two Bali nightclubs, killing 202 people, including 88 Australians. He became eligible for parole this month after a series of remissions for good behavior.

The exact date of his release, the final signoff for which rests with Indonesia’s justice minister, remains unclear.

Citing a rare video shot in the Porong prison where Bali bomb-maker Mr. Patek is being held, Australian broadcaster ABC News reported he also hopes to warn young Indonesians about the dangers of religious extremism upon his expected release.

Reuters was unable to review the video of Umar Patek. It has been removed from Porong prison’s official YouTube channel as it had not been authorized by the justice ministry, said the prison head, Jalu Yuswa Panjang.

News of Mr. Patek’s impending parole has sparked concern in Australia, with PM Anthony Albanese saying his release would have a “devastating impact on the families of victims”.

On Sunday, East Java’s Porong prison, where Mr. Patek has been held since 2014, uploaded a 20-minute video of Mr. Patek and the prison head strolling through the prison grounds as the convicted militant discusses his role in the deadly attack, according to a report by ABC News Australia.

“My mistake was to be involved with the Bali bombing,” he tells the prison head in the video, as reported by ABC. During his trial in 2012, Mr. Patek’s lawyers argued he only followed orders when he assembled the bombs, and had neither planned nor executed the attack.

Indonesian authorities have since highlighted Mr. Patek as an example of the country’s deradicalization efforts. — Reuters

IAEA team to inspect Ukraine’s Zaporizhzhia nuclear power plant this week

IAEA.ORG

KYIV/VIENNA — The U.N. nuclear watchdog will inspect the Russian-held Zaporizhzhia nuclear power plant in Ukraine this week, it said on Twitter on Monday.

The announcement comes after months of negotiations in which the International Atomic Energy Agency sought to gain access to the facility, which Ukrainian staff are operating under the orders of Russian forces, a situation that the IAEA has said threatens the safety of Europe’s largest nuclear plant.

The mission led by IAEA chief Rafael Grossi will assess any damage from recent shelling near the Zaporizhzhia nuclear power plant (ZNPP), which Russia and Ukraine have blamed on each other.

“We must protect the safety and security of Ukraine’s and Europe’s biggest nuclear facility,” Mr. Grossi said on Twitter with a picture of himself with 13 other staff members, apparently at the VIP terminal of Vienna airport. “Proud to lead this mission which will be in #ZNPP later this week,” he added.

Neither he nor the agency specified when they would arrive at Zaporizhzhia.

Ukraine’s energy ministry said it would not comment on the IAEA mission trip “for security reasons”.

The United Nations and Ukraine have called for a withdrawal of military equipment and personnel from the plant to ensure it is not a target in the conflict.

The IAEA tweeted separately that the mission would assess physical damage, evaluate the conditions in which staff are working at the plant and “determine functionality of safety & security systems”.

It would also “perform urgent safeguards activities,” a reference to keeping track of nuclear material. — Reuters

Obiena wins German meet in absence of top gun Duplantis

REUTERS

WORLD No. 3 pole vaulter EJ Obiena ruled the True Athletics Classics in Leverkusen, Germany over the weekend in the absence of the world’s best — Swedish star Armand Duplantis.

The World Championship bronze medalist claimed the victory by clearing 5.81 meters and edging Dutchman Rutger Koppelaar and Australian Kurtis Marschall via countback as the Filipino champion did it in just two attempts against the latter pair’s three.

Mr. Koppelaar settled for the silver and Mr. Marschall the bronze.

Mr. Obiena went for a new national and Asian record of 5.95m but sputtered in three tries.

While the winning vault was far from Mr. Obiena’s personal best of 5.94m he registered in the worlds in Eugene, Oregan a month ago, it was enough though to seal the Southeast Asian Games gold medalist’s third podium finish that included another gold in the Jockgrim, Germany meet a week back.

Both of Mr. Obiena’s golden performances came minus Mr. Duplantis, the reigning Olympic and world champion and world record-holder.

A few days ago, Mr. Obiena had a bronze at the Athletissima in Lausanne, Switzerland, where Mr. Duplantis blew away the competition.

World No. 2 Chris Nilsen of the United States, who had a silver in Lausanne, also skipped the True Athletics Classics.

Mr. Obiena, however, said he was satisfied with his effort but could have done better.

“I am very happy to bring home the gold against a great field,” said Mr. Obiena. “But, on the other hand, I am frustrated by missing 5.95m again. We have boiled it down to some technical adaptations, which at these heights make the difference between a miss or a make.”

“Like anything in life, this is all about continual improvement,” he added.

Mr. Obiena will get another chance to breach 5.95m at St. Wendel City Jump this week in Germany and the Memorial van Damme on Friday in Brussels.

Also on his plate are the ISTAF 2022 on Sept. 4 in Berlin and the Golden Fly on Sept. 11 in Schaan, Liechtenstein. — Joey Villar

Men’s volleyball returns with Sta. Rosa-Cignal clash

CIGNAL HD Spikers — SPIKER’S TURF

Games Today
(Paco Arena)
2:30 p.m. — Sta. Rosa vs Cignal
5:30 p.m. — VNS vs Fudgee Barr

Men’s volleyball takes center stage as the Spiker’s Turf makes a smashing return after a long absence with a two-game schedule starting with Sta. Rosa and Cignal today at the Paco Arena.

The Sta. Rosa-Cignal showdown is set at 2:30 p.m. and will be followed by the 5:30 p.m. clash between VNS-One Alicia and Ateneo-Fudgee Barr that should usher in the Open Conference with a bang.

Former league Most Valuable Player Marck Espejo will spearhead the HD Spikers, a team that also has Ysay Marasigan and former college stars Chu Njigha of Ateneo, Louie Ramirez of Perpetual and Edward Camposano of National University.

“I’m excited that the Spikers’ Turf is back since this is the league where it all started for us,” said Mr. Espejo, who had stints at the Japan V. League for Team FC Tokyo last season.

“We’ll do our best to defend our crown but we know that the competition will be tough this conference,” he added.

The Lions of Sta. Rosa City coached by Edward Lirio, for their part, will rely on a young but promising group consisting of players aged 18 years old and below.

Ateneo-Fudgee Bar, meanwhile, launches its title drive with skipper Lance De Castro and rookie Matthew Salarzon against a VNS-One Alicia squad headed by national team setter Ish Polvorosa.

NU-Sta. Elena, Army and Navy are the other squads seeing action in this tournament that will have the top four teams advancing to the best-of-three semifinals set Sept. 24 after the single-round eliminations.

The two finalists will then play another best-of-three series starting on Oct. 1.

The HD Spikers turned back the Air Force Jet Spikers twice to claim the Reinforced and Open crowns in 2019 before the country’s first and only men’s volley league, which Sports Vision launched in 2015, took a long break due to the pandemic. — Joey Villar

Aranas falls to Taiwan’s Ko in final of Singapore 9-Ball

JAMES ARANAS — ASIAN POOL FEDERATION

JAMES Aranas faltered under tremendous pressure and fell to former world champion Ko Pin Yi of Chinese Taipei, 13-11, Sunday night to settle for second in the Asian Pool Federation’s Asian 9-Ball Open in Singapore.

With the game knotted at 10 racks apiece, the 30-year-old Mr. Aranas had a heartbreaking scratch in the 21st frame that allowed Mr. Ko to get the rack, break the deadlock and the lead that he held on to until the end.

Mr. Ko then put on the finishing touches with a pair of spectacular break-and-runs in the 22nd and 24th in this alternate break format to crown himself Open champion.

The Taiwan World No. 4, who won world titles in 9-ball and 10-ball seven years ago, completed his mastery over the Filipinos as the former was also responsible in eliminating Johann Chua, 11-2, in the semis.

Mr. Aranas, for his part, turned back Japanese Naoyuki Oi, 11-6, in the other semis but ran into mighty Mr. Ko in the finals where  he succumbed to the pressure.

Chezka Centeno cushioned the impact of Mr. Aranas’ stinging defeat by ruling the Women’s section following an 11-7 smashing of South Korean Seo Seoa hours before. — Joey Villar

International Master Quizon wins Mindanao Rapid chess tourney

DANIEL QUIZON — BW FILE PHOTO

INTERNATIONAL Master Daniel Quizon added another feather in his cap after ruling the 10th Mindanao Rapid Open Chess Championships in Kidapawan, North Cotabato over the weekend.

The 18-year-old national champion and the country’s rapid king ended up in a four-way logjam at first with Vince Angelo Medina, FIDE Master Alekhine Nouri and Elmer Sumngat with six points apiece, but took the title after tiebreaks were applied.

Mr. Medina wound up second, Mr. Nouri third and Mr. Sumngat fourth but the three and Mr. Quizon equally split the combined prize for first to fourth worth P76,000 (P40,000 for first, P30,000 second, P20,000 third and P6,000 fourth) and went home with P19,000 apiece.

It was Mr. Quizon’s fourth domestic title this year after ruling three editions of the Kamatyas tilt.

The Hanoi Southeast Asian Games silver winner could have gone for solo first if he beat World Juniors Championship-bound Mr. Nouri but opted to play it safe by playing to a draw.

Rounding out the top 10 were Ellan Asuela, FM Austin Jacob Literatus and Rhynan Arce with 5.5 points each and Jayson Salubre, John Christian Lesaca and Elwin Retanal with five apiece. — Joey Villar

Verstappen speeding towards title with Belgian win 

RED Bull’s Max Verstappen — REUTERS

RED Bull’s Max Verstappen took another giant stride towards a second successive Formula One title with a dominant win from 14th on the grid in Sunday’s Belgian Grand Prix.

The Dutch driver, who was quickest in qualifying but dropped down the grid due to engine and gearbox-related penalties, delivered a master class as he beat Mexican teammate Sergio Perez by 17.8 seconds and set the fastest lap.

Ferrari’s Carlos Sainz finished a distant third after starting from pole position.

“The car was really on rails,” said Mr. Verstappen, who swept into the lead on the 12th of 44 laps and took his ninth win from 14 races this season.

“Once we were in the lead, it was all about managing everything. It’s been a weekend I couldn’t imagine before,” added the 24-year-old after his second successive win at Spa, although last year’s victory came after a farcical three laps splashing through the rain behind the safety car.

Mr. Verstappen went into the weekend already not needing to win again this season but his victory on Sunday, the 29th of his career, put him a massive 93 points clear of Mr. Perez, who moved into second overall.

The experienced Mexican has often acted as ‘rear-gunner’ to Mr. Verstappen and on Sunday again dutifully let him through to take the lead.

“Max was on another planet today, he was flying, he was untouchable,” said Mr. Perez.

Ferrari’s Charles Leclerc, who started one place behind Mr. Verstappen in 15th after collecting similar grid drops, finished fifth on the road but was demoted to sixth after a penalty for speeding in the pitlane.

The Monegasque, who was the championship favorite early in the season, dropped to third overall and 98 points behind Mr. Verstappen with eight races remaining.

Forced to pit early after a visor tear-off strip got lodged in a front brake duct, Mr. Leclerc was looking at a predicted fifth place finish before the race was even at its halfway mark while Mr. Verstappen ran away at the front.

“I’m not feeling good, obviously,” said Mr. Leclerc. “The thing that is strange is the feeling is quite okay inside the car but then you look at the pace compared to Red Bull and they are on another planet completely.”

Mr. Sainz kept the lead at the start, with Perez slow in getting away alongside as Alpine’s Fernando Alonso and Mercedes’ Lewis Hamilton slotted into second and third.

The former McLaren team mates then made contact as seven-time world champion Hamilton tried to overtake the double champion around the outside into the Les Combes chicane.

“What an idiot, this guy only knows how to drive starting first,” Mr. Alonso vented. Mr. Hamilton, who parked up his damaged car, accepted responsibility for the incident and said Mr. Alonso had been in his blind spot.

Further behind, Valtteri Bottas beached his Alfa Romeo in the gravel while trying to avoid the spinning Williams of Nicholas Latifi in an incident that brought out the safety car.

George Russell salvaged fourth place for Mercedes, with Mr. Alonso elevated to fifth as a result of Mr. Leclerc’s penalty.

Esteban Ocon took seventh for Alpine, after overtaking two cars in one move — a pass bringing back memories of double world champion Mika Hakkinen’s on Michael Schumacher at the 2000 Belgian Grand Prix.

Aston Martin’s Sebastian Vettel was eighth ahead of AlphaTauri’s Pierre Gasly with Alex Albon securing the final point for Williams in a race he ranked as one of his toughest.

Formula One now heads to Zandvoort for Mr. Verstappen’s home Dutch Grand Prix, the second of a tripleheader that will bring the curtain down on the sport’s European season at Italy’s Monza. — Reuters