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RDC to endorse Iloilo-Capiz-Aklan expressway for feasibility study

A train car of the now defunct Panay Railway on display at a park in Iloilo City. The 117-kilometer railway system, constructed in the early 1900’s and closed down in 1983, used to transport agricultural produce and other cargo within Panay Island. — BW FILE

AN ELEVATED expressway that will connect the provinces of Iloilo, Capiz, and Aklan will be endorsed by the Western Visayas Regional Development Council (RDC) to pave the way for a feasibility study.

“I was able to talk to Department of Public Works and Highways (DPWH) Region 6 Regional Director Lea Delfinado and she asked for the infrastructure committee of the RDC to endorse this in order for them to start to conduct the study for the feasibility study of the expressway,” National Economic and Development Authority (NEDA)-6 Regional Director Ro-Ann A. Bacal said.

Ms. Bacal said this infrastructure that will span across Panay Island is envisioned as a toll road, like the north and south luzon expressways.

She said the RDC will be pushing this as they await developments on the proposed Panay Railway, which was part of the national government’s first list of major projects under the Build, Build, Build program.

“We are still awaiting the move of the Department of Transportation (DOTr). We had several project proposals from DOTr but they said it is going to be a public-private partnership (PPP) undertaking but nothing concrete has taken place,” she said.

Businessmen and investors surveyed by the RDC expressed preference for an elevated expressway over a railway system as this would allow them an easier “door-to-door” movement of their products.

“When we talk to the businessmen, they are not so much keen on the railway because they want door-to-door. In the railway, you have to get the goods from the production area and put it to a truck and unload it to the railway, so there are many transfers,” Ms. Bacal said.

The RDC is also proposing that the expressway be designed to accommodate a metro rail transit system (MRT) in the future.

“We feel that there is going to be win-win situations whereby the design of expressway, that it can provide for the MRT in the middle or on the side of the expressway,” she said.

“We will see but we are very keen on the expressway.” — Emme Rose S. Santiagudo

GenSan eyes more trade, tourism ties in the north with direct flights to Clark

GENERAL SANTOS City’s public and private sectors are aiming to boost trade and tourism ties in the country’s northern island following Monday’s launch of direct flights to and from Clark International in Pampanga. “When we took off this morning during the Clark-GenSan inaugural flight, that was just the beginning. We hope to provide more economic opportunities, jobs, and investments for GenSan,” Mayor Ronnel C. Rivera said during the Business Matching Session for Trade and Tourism with Pampanga’s business community. The meeting was held after the inaugural flight from General Santos landed in Clark. The chartered flights, initially set on a twice-a-week schedule, are served by Leading Edge Air Services Corp. “The business matching sessions saw new economic opportunities for GenSan’s food, tourism, agricultural, manufacturing, and other related industries,” Mr. Rivera said in a post on his social media page. In September last year, General Santos City signed partnership agreements with three Pampanga local governments — the cities of Angeles, Mabalacat and San Fernando — and Clark Development Corp. to promote business linkages. The initiative is part of the United States Agency for International Development’s Strengthening Urban Resilience for Growth project.

Peso climbs on efforts to contain Wuhan virus

THE PESO continued to climb on Tuesday as markets heeded positive signals from China’s central bank, which said it will lend support to the economy amid worries on the coronavirus outbreak.

The local unit ended trading at P50.765 versus the greenback yesterday, appreciating by 3.50 centavos from its Monday close of P50.80 per dollar on Monday.

The peso opened at P50.85 against the greenback, which was also its weakest showing for the day. Meanwhile, its intraday best was at P50.725 versus the dollar.

Dollars traded declined to $953.9 million from $1.073 billion on Monday.

Analysts said the peso gained on Tuesday amid news that China has been making efforts to contain the Wuhan novel coronavirus.

“The peso exchange rate closed among the strongest in nearly three weeks…amid extraordinary efforts by China to contain the novel coronavirus, including infusion of liquidity into the markets since markets reopened yesterday (Monday), somewhat sending positive signals to the market,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a text message on Tuesday.

“The peso took its cue from the halt of the colossal sell-off in Chinese equities. Investors, for sure, are still gauging China’s efforts to stop the spread of the coronavirus that has been feeding the uncertainty,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a separate text message.

China’s central bank said on Tuesday that its huge liquidity injections through open market operations this week showed its determination to stabilize financial market expectations and restore market confidence, Reuters reported.

The remarks were published on the official WeChat account of the People’s Bank of China (PBoC) after it injected a total of 1.7 trillion yuan ($242.74 billion) via reverse repos on Monday and Tuesday.

The central bank said the larger-than-expected liquidity injection should push money market and bond yields down, and reduce financing costs and ease financial pressure on small, micro businesses.

On Tuesday, Hong Kong reported its first death from the newly identified coronavirus on Tuesday, the second fatality outside mainland China from an outbreak that has killed over 420 people, spread around the world and raised fears for global economic growth.

The Hong Kong fatality brought the total death toll from the virus to 427, including a man who died in the Philippines last week after visiting Wuhan. Chinese authorities said the toll in China rose by a record 64 from the previous day to 425, mostly in Hubei province of which Wuhan is the capital.

The total number of infections in China rose by 3,235 to 20,438, and there were at least 151 cases in 23 other countries and regions.

For today, RCBC’s Mr. Ricafort said the peso may trade at around P50.65-50.90 versus the dollar, while UnionBank’s Mr. Asuncion sees the local unit moving within the P50.50-P50.80 range. — L.W.T. Noble with Reuters

PHL stocks snap losing streak on bargain hunting

LOCAL SHARES were able to recover on Tuesday after six straight days of decline due to bargain hunters taking center stage.

The 30-member Philippine Stock Exchange index (PSEi) loaded up 89.87 points or 1.25% to close at 7,226.90 yesterday, while the broader all shares index gained 37.06 points or 0.87% to 4,293.89.

“The market ended six consecutive days of losses by rebounding 1.26% as bargain hunters positioned in the market…,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message yesterday.

She said after massive selling in the past days, investors “found it as an opportunity to put fundamentally sound companies in their portfolio at a bargain price.”

“The rally was also supported by the improvement of Philippine manufacturing PMI (purchasing managers’ index) in January at 52.1 from 51.7 in December last year,” Ms. Alviar added.

For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the market’s rally was also affected by subsiding worries on the novel coronavirus.

“The market recovered slightly as investor woes regarding the coronavirus started to simmer down,” Mr. Limlingan said in a mobile message.

Hong Kong reported its first death from the newly identified coronavirus on Tuesday, the second fatality outside mainland China from an outbreak that has killed over 420 people, spread around the world and raised fears for global economic growth.

The total number of infections in China rose by 3,235 to 20,438, and there were at least 151 cases in 23 other countries and regions.

Like the PSEi, other Asian also started recovering yesterday. Japan’s Nikkei 225 and Topix indices both climbed 0.49% and 0.69% respectively, Hong Kong’s Hang Seng index rose 1.21% and South Korea’s Kospi index increased 1.84%.

Even China’s Shanghai Shenzhen CSI 300 and Shanghai SE Composite indices advanced yesterday, jumping 2.64% and 1.34%, respectively.

Back home, most sub-sectors at the PSE also closed higher on Tuesday. Financials gained 35.49 points or 2.10% to 1,724.30; industrials added 156.15 points or 1.74% to 9,122.37; holding firms picked up 84.07 points or 1.22% to 6,958.81; services increased 8.50 points or 0.57% to 1,477.82; and property climbed 5.79 points or 0.15% to 3,799.01.

The sole loser was mining and oil, which dropped 44.43 points or 0.60% to 7,286.68.

Some 1.48 billion issues worth P9.61 billion switched hands yesterday, up from the 833.35 million issues valued at P5.87 billion in the previous session. Philstocks Financial’s Ms. Alviar noted this is also higher that the year-to-date average value turnover of around P6 billion.

More stocks increased than declined yesterday, 113 against 73, while 48 names ended unchanged.

Foreign investors, however, were still sellers, with net outflows ballooning to P2.23 billion yesterday from the P289.06 million seen on Monday. — Denise A. Valdez with Reuters

Building a legacy for health

The Malasakit Center Act (Republic Act No. 11463) is probably one of the fastest legislative measures that has been passed and signed under the 18th Congress. It took only five months since the bill was filed in both Houses of Congress, and thereafter was signed by President Rodrigo Duterte on Dec. 3, 2019. As of this writing, a total of 61 Malasakit Centers have already been launched and are operational nationwide even as the first public consultation on its draft implementing rules and regulations (IRR) just started on Jan. 30, a few days ago.

There was really nothing wrong in the speedy passage of the Act. It is actually very advantageous to Filipinos, especially those who are indigent and financially incapacitated, who direly need assistance. The Law fulfills the government’s commitment to institutionalize the establishment of a one-stop shop in all public hospitals wherein patients can avail the medical and other financial assistance provided by different agencies such as the Department of Health (DoH), PhilHealth, Philippine Charity Sweepstakes Office (PCSO), and the Department of Social Welfare and Development (DSWD). The said Law would definitely help patients to easily access the available support without queuing repeatedly for long hours from one agency to another just to receive less than sufficient assistance.

Having said the good intentions of the Act, the purpose of the public consultation was to gather different stakeholders and have an opportunity to hear their thoughts and suggestions on how to improve the implementation of the “Malasakit” program. It is also proper to take into consideration the inputs of individuals who have first-hand experience in the operation and have actual engagements with patients availing the services.

Among those who shared their vital experiences during the consultation last week was Dr. Gerardo Legazpi, the current medical director of the University of the Philippines–Philippine General Hospital (UP-PGH). He explained that their hospital can actually cover around 56% of the total bills of their patients, the majority coming from PhilHealth reimbursements and, if the benefit package from PhilHealth is not enough, they have a system that can automatically assign the next available assistance to cover the patient’s bill.

He said that their system can minimize the manpower requirement in operating the Malasakit Centers and that, “streamlining the business process would actually save the government a lot of resources.”

However, in a response from the DoH, Undersecretary Roger Tong-An said that this may not be applicable to all government hospitals and pointed out that there should be an adequate number of personnel to ensure the monitoring of the assistance that may be availed by the patients.

It is unfortunate that not all government hospitals have the same status as the PGH. However, this can be addressed through collaboration with either public and private stakeholders. As long as transparency is ensured, this has been proven to be an effective and viable strategy in the implementation of different health programs. As in the many Public-Private Partnership projects driving major infrastructure and public services projects of this administration, partnering with the private sector would greatly supplement the limited resources of the Government.

The Pharmaceutical and Healthcare Association of the Philippines forwarded its intent to offer various special-access schemes of drugs and medicines, but noted that the process on how to integrate these with Malasakit Centers is not yet clear.

Dr. Israel Francis Pargas, Senior Vice-President for Health Finance and Policy Sector of PhilHealth welcomed the expression of support and agreed to quickly establish a clear process flow and guidelines on how to access these schemes, which should be subject to current rules and regulations.

To briefly illustrate how the Malasakit Center works, if you are an indigent and financially incapacitated patient, you are qualified to avail of financial and medical assistance. Let’s say you’re an in-patient case, the hospital less the Philhealth benefits can be covered by the health programs of other agencies such as the PCSO, DSWD, and DoH. The Malasakit Center then processes your request so that the balance of your bill may be covered, and you will be cleared to go home.

The supporting agencies are: the DoH which provides medical assistance to indigent patients, the DSWD which provides financial assistance based on existing Assistance to Individuals in Crisis Situations (AICS) guidelines, and the PCSO which provides medical assistance to indigents and financially incapacitated patients.

Also, there will be other Medical and Financial Assistance Programs that may be provided by other government agencies, LGUs, NGOs, and, let’s not forget the potential support of private institutions and individuals.

It is only right to commend the efforts of the members of the Technical Working Group (TWG) and DoH’s Steering Committee for working very hard in facilitating the Malasakit IRR, now targeting formal signing on Feb. 19. All government TWGs should work as fast and efficiently.

We hope that the scope of Malasakit Centers will expand beyond its present mandate in public hospitals, and its spectrum of funding resources will be expanded to integrate both government and private institutions. This will be a strategic element in the full realization of an extensive Universal Health Care program. A legacy that would go beyond myopic political timelines.

 

Alvin Manalansan is a Health Fellow at the Stratbase ADR Institute.

Revival of expired corporations

Much has been said about the feature of the Revised Corporation Code (RCC) allowing corporations to have perpetual existence under Section 11 of the RCC. Yet, there is also a nifty feature tucked in under the same section allowing the revival of those corporations whose corporate terms have expired. Pursuant to this provision, the Securities and Exchange Commission (SEC) issued SEC Memorandum Circular No. 23, Series of 2019 or the Guidelines on the Revival of Expired Corporations. The Guidelines became effective on Dec. 6 last year and the SEC has started accepting applications for the revival of expired corporations until then.

The Guidelines explicitly allow the revival of (i) corporations whose terms have expired; (ii) expired corporations whose Certificate of Registration with the SEC has been revoked for non-filing of reportorial requirements (i.e. the General Information Sheet or Audited Financial Statements); (iii) expired corporations whose Certificate of Registration has been suspended; and, (iv) expired corporations whose corporate name has been validly re-used and is currently being used by another existing corporation duly registered with the SEC.

Corporations under items (ii) and (iii) in the above list require the filing of the proper Petition to Lift Revoked Status and Petition to Lift Suspended Status, respectively. The petitions are to be incorporated in the Petition to Revive, upon settlement of the corresponding penalties imposed on the corporations.

On the other hand, those corporations which have completed the liquidation of their assets are not eligible to apply for revival. Further, those corporations which have been dissolved after undergoing receivership by virtue of Section 6(c) and (d) of the Presidential Decree No. 902-A, as amended by Presidential Decree No. 1799, may not apply for revival.

Finally, corporations which have already availed of re-registration in accordance with circulars issued by the SEC pertaining to re-registration are not allowed to apply for revival. However, note that the Guidelines state that such corporations may be allowed to file for revival, provided that the re-registered corporation has provided its consent and has undertaken to undergo voluntary dissolution or change its corporate name, as the case may be, immediately after the issuance of the Petitioner’s Certificate of Revival.

In the case of stock corporations, initiating the revival may be done through the vote of at least a majority by the Board of Directors of the expired corporation, and the vote of at least the majority of outstanding capital stock. In the case of non-stock corporations, initiation may be done through the vote of at least a majority of the board of trustees and the vote of the majority of the members.

Additionally, petitions from banks, banking and quasi-banking institutions, preneed, insurance and trust companies, non-stock savings and loan associations, pawnshops, corporations engaged in money service business, and other financial intermediaries must be accompanied by a favorable recommendation of appropriate government agencies.

To apply for the revival of an expired corporation, the Petitioner-corporation shall file a Petition for the Revival of Corporate Existence with the Company Registration and Monitoring Department of the SEC or any Satellite or Extension Office. It shall be verified by the duly elected directors or trustees, and officers of the Petitioner.

It shall likewise contain statements on the approval of the action to revive by the majority of the outstanding capital stock or members. Should there be changes in the composition of the stockholders or members since the expiration of the corporate term, there must be a reconciliation of the changes in the composition of the stockholders or members from the date of expiration up to the date of the stockholders’ or members’ approval of the resolution to file the Petition. For such purpose, the reconciliation must be accompanied by supporting evidence of the changes in the composition of the stockholders or members.

Parties-in-interest may file a Verified Opposition to the Petition with a clear statement on the grounds relied upon. It is also worthy to note at this point that that the revival of corporate existence is without prejudice to the appraisal right of dissenting stockholders in accordance with the RCC.

The Guidelines show relative clarity on how to revive a corporation that has once been in existence. Nevertheless, a valid question can be raised: is the revival of an expired corporation easier than to incorporate one from scratch? Where gathering the approval of the expired corporation’s stockholders or members and directors may prove to be a difficult task, incorporation may be the way to go. On the other hand, in the case of corporations whose Certificates of Registration have only been revoked or suspended, reviving the corporation might be an easier route for getting back to normal operations. In the end, it appears that the answer will depend on the circumstances of the case. At least with these Guidelines, expired corporations have the option to decide to start from where they left off, instead of starting over.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes, and not offered as, and does not constitute, legal advice or legal opinion.

 

Joben Mariz J. Odulio is an Associate of the Corporate and Special Projects Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

jjodulio@accralaw.com

(632) 8830-8000.

On banning US trips and junkets

President Rodrigo Duterte’s directive banning travel to the US by members of his cabinet is just one more move of the president to curb junkets of officials in his administration. While the ban is his way of “getting even” with the US for cancelling the 10-year tourist visa of one of his favorite officials, former PNP chief and now Senator Ronald “Bato” de la Rosa (plus the likely cancellation of the visas of other officials involved in the incarceration of Senator Leila de Lima), Duterte’s move is in line with earlier directives banning “wasteful” foreign travel.

Last year he issued an executive order prohibiting public officials from going on foreign trips  ostensibly to participate in so-called team building seminars and “orientation tours.” Duterte thinks they are a waste of money.

Duterte refers to them as junkets — vacations at taxpayers’ expense, Also prohibited by the executive order are vacation leaves immediately after the government-funded trips. Obviously, Duterte saw the “palusot” (ruse) of officials, going on vacation on trips already paid for by the government. Often, these officials take along family members and even mistresses, at taxpayers’ expense.

During the Marcos regime, junkets and shopping sprees were the fashion thanks to the biggest spender of them all, First Lady Imelda Marcos. Imelda and her Blue Ladies were rumored to have closed down department stores in New York so that they could view the luxurious merchandise at their leisure.

We may also recall that trip to the US of President Gloria Macapagal-Arroyo, with members of her family in tow, along with a huge “official” retinue, and how they splurged on meals and shopping — at the expense of the poor people of the Philippines (one difference between Gloria Arroyo and Imelda Marcos was that the latter insisted that the Philippines was really “a rich country pretending to be poor”).

In prohibiting overseas trips of government officials, Duterte is probably right in many respects — but not all overseas orientation and team-building trips are useless. As a life-long advertising and marketing practitioner, I have seen how exposure to overseas technology, systems, and techniques and postings in overseas operations can improve the skills and expand the minds of workers — and that includes civil servants.

I still remember handling the advertising of Nestle in the Philippines, with me and my team hardly ever having been out of the country while our client counterparts had undergone postings in Europe, the  US, and around Asia.

It took native Pinoy abilidad to survive that phase of my career without suffering a severe case of inferiority complex.

At any rate, I think Duterte should be applauded for banning the junkets. I also think that the ban should cover members of Congress, as well as the military and the police. And the ban should include, not just travel to the US, but to other countries, as well.

I am convinced that many of these officials own property and have families and investments in the US. There’s really nothing wrong with that, if it is done with personal “explainable” funds — but we know from the pork barrel scandals that many of the hogs in Congress were splurging on the country’s pigsty. Concerning Duterte’s banning members of his cabinet from traveling to the US, does it make sense?

Frankly, a total ban on official trips would be like cutting off one’s nose to spite one’s face. If Duterte thinks he is “hurting” the US by keeping Philippine officials from going on a trip, he is kidding himself.

The US economy will hardly feel the “loss of tourism revenues” resulting from the ban. Even assuming profligate shopping sprees by the families of the officials, the department stores will not feel the loss as much as the competition being given them by Amazon and other online marketers.

But the Philippines will have to suffer opportunity losses from our officials being unable to deal directly and personally with their counterparts in business and government in America. While we can appreciate Duterte, to some extent, for believing that the Philippines is the center of the universe, our country is really just one dot on the map — just one source of raw materials and low-cost machine and computer parts, just one more export market for consumer goods and durables — and we are hardly the biggest source of revenues of America. In fact, it is the other way around. The US is one of the biggest markets for Philippine exports and one of the biggest investors in the Philippine economy.

Imagine the Secretary of Tourism and her team being prohibited from visiting one of the Philippines’ most lucrative tourist markets? That’s like pushing them into a boxing ring blindfolded. It’s bad enough that the Philippines has a meager tourism promotion budget compared to Thailand, Hong Kong, and Singapore, preventing the Department of Tourism from meeting with the US travel trade makes their problem worse.

Duterte’s macho ego isn’t doing the Philippines any good. He has refused foreign aid badly needed in the rural areas, and he is in the process of terminating the Visiting Forces Agreement, which is part of the defense umbrella provided by the US. Duterte has threatened to do more.

According to him, he is ”toning down” relations (whatever that means) between the Philippines and the US. Indeed, whatever the term means, it is obvious that Duterte believes he has a China card and a Russian card to play against America and that he can pit them against each other because the Americans cannot afford to lose their presence in the Philippines.

He is right about the strategic importance of the Philippines to the US. But he is wrong about two things. Believing that he can “use” the Chinese and the Russians and thinking that the US will let him have his way.

Xi Jinping and Vladimir Putin are past masters at “using” countries and governments to their advantage. On the other hand, America has never allowed itself to be pushed around. If the US has a mind to, it can also put the squeeze on the Philippines in ways that even Duterte will feel.

But the Americans are probably just waiting for Duterte’s term to expire, with the hope that the next administration will be easier to deal with. But assuming that a Duterte clone wins the presidency, the Philippines may find itself caught in a game that only the big boys can play.

The memory of World War II, where the Philippines was the battleground of the US and Japan, is less than a century fresh in our minds. And the fate of Iraq, Libya, and Syria is something we should not wish for. Not for all the US visas in the world.

There is an old saying,”When elephants dance, the grass is trampled.” Guess who the grass is.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

Playing the pity card

By Tony Samson

Part of the effort to push back on the rhetorical excesses of leaders when they inveigh against certain personalities as well as economic projects cast in regulatory limbo is to invoke the dire consequences of the actions being contemplated.

When business personalities are involved in the diatribe, the ripple effects on the business climate and the ability to attract and retain foreign investments are laid out. The unreliability of contracts, the volatility of laws, and the resulting uncertainty of the business climate thrown to the mercies of a bad hair day are mentioned.

The threats to companies no longer able to carry on their business due to regulations imposed on them are confronted with the dire consequences of the move. The loss of jobs, displacement of talents, and the write-off of capital invested are highlighted. The messengers can be personalities with their own fan bases (and high approval ratings) to make their messages take root.

Playing the pity card avoids a confrontational stance. It lays out the collateral damage wrought by a course of action suggested by parts of speeches delivered in unlikely forums.

In our culture of avoiding confrontation, the appeal for mercy and, yes, kindness, is the first resort. Even in social settings, like a breadwinner leaving his family for another, the abandoned ones resort to an appeal — what will happen to us? Even in a teleserye plot such as this, the first reaction of asking for reconsideration evolves later (in the next three installments) into a gritty determination to shoulder on without the scoundrel’s support. Can the sequel of revenge be far behind?

The pity card, as those who play it will attest, is premised on the basic kindness of the object of the appeal. The prospect of a conversion and going back to a righteous path (such as economic predictability on which investors place their faith) assumes that the outburst was an aberration, open to be repaired. But, does such presumed “milk of human kindness” which Lady Macbeth disdained in her husband flow too in the one being importuned?

Do bullies in the schoolyard or the workplace, respond to appeals of pity? Doesn’t the argument that one was sick the previous day and couldn’t complete the report fall on the deaf ears of the bully? (You are not allowed to be sick.)

The pity card is really a sign of weakness. Rather than checking the arbitrary exercise of power, the appeal only emboldens the bully — is that all you an come up with? Also, the dire consequences laid out so carefully, complete with statistics on lost market value and the decline of direct investments, can invites an even harsher aggressiveness — do you think I care?

Sometimes, the unintended consequence of laying out the effects of an arbitrary assault even works to the advantage of the aggressor. It isolates the target of the bullying. Rather than eliciting sympathy for the victim’s dire straits, the bystander may just shrug his shoulders — not my problem. This victim-blaming is prevalent in the arena of sexual harassment where the aggrieved party is somehow seen as complicit — maybe she was wearing a plunging neckline.

Malcolm Gladwell, in his 2013 book David and Goliath, subtitled “the art of battling giants,” describes the famous battle between a shepherd and a giant warrior as not entirely as lopsided as it looked. The sun was in Goliath’s eyes and he suffered from poor eyesight to begin with. He was also stricken with some muscle dystrophy slowing down his movements. The slingshot was truly a formidable weapon (against wolves preying on sheep) and David had several stones at the ready. While this scenario seemed open to the possibility of playing the pity card (hey, he’s just a boy, you bully) and maybe just surrendering to a superior force, the fight still took place with no excuses made. And it was won by the seemingly weak side.

Playing the pity card worked with Gandhi and his passive resistance and hunger strike against a conscientious empire (and the help of mass media). But in the world of weaponized social media and the power of three branches of government, the pity card is merely a weakness… that needs to be overwhelmed.

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

Wuhan isn’t China’s Chernobyl

By Clara Ferreira Marques

BOTH DISASTERS affected millions of people, well beyond their borders. Both occurred in tightly controlled, socialist, single-party states. Both were initially hushed up by zealous officials.

The similarities between the current outbreak of novel coronavirus and a 1986 reactor meltdown aren’t lost on Chinese parallels to Chernobyl in online discussions about a 2019 HBO miniseries on the disaster. The political inference is clear: After all, the explosions in reactor No. 4 and the bungled aftermath helped unmuffle public debate and accelerate the decline of the Soviet regime. The comparison is flawed, though. Moscow’s grip was faltering well before radioactive debris rained down. Beijing would still be wise to draw lessons from that catastrophe.

It’s hard to overstate the proportions of the human and environmental disaster at Chernobyl, still the worst in civil nuclear history. The reactor’s flawed design meant that a technical test, poorly administered, triggered explosions that destroyed its core and released a cloud of radioactive smoke, dust, and debris. Fires burned for days. A stifling culture of secrecy, political pressure to hit economic targets, and a simple disregard for human life caused a cataclysm on April 26, 1986.

There are certainly elements of that in the current crisis. China, of course, is not the Soviet Union of the 1980s. It has learned from the SARS outbreak in 2003, when a slow acknowledgement of the problem helped the pneumonia-like illness spread, eventually killing almost 800 people. Beijing has to contend with social media as well, however stifled. Yet early efforts to raise the alarm were silenced this time, too. Doctors in Wuhan were accused of spreading rumors and summoned by police.

Add to that a less-than-impressive immediate response, with slow diagnostic testing that, according to Reuters, required samples to go to Beijing. There is ample evidence of overcrowded hospitals, as my colleagues David Fickling and Adam Minter have written. As with Chernobyl, the local authorities — beginning with Wuhan’s mayor — have struggled in a system where orders must come from above, limiting their ability to inform the public.

According to the Lancet, the first known patient developed symptoms as early as Dec. 1. China alerted the World Health Organization by the end of the month. While the first death occurred in early January, full alarm and lockdown didn’t ensue until Jan. 23, days before the Lunar New Year holiday. By that point, millions of students, migrant workers and travelers had already left the city. Better than 2003, perhaps, but hardly exemplary. Much like in Chernobyl, where some 340,000 military personnel were ultimately mobilized to clean up the mess, China has proved better at dramatic gestures, like locking down cities, than effective ones.

As with radiation, the virus is both invisible and poorly understood, fueling public distrust at home and abroad. And as with the 1986 explosions, the impact of failings in China will be felt globally.

The comparison has its limits, though. The novel coronavirus epidemic is a crisis for public health, for the economy, and even for Beijing’s upper ranks. That doesn’t make it a catalyst in the mold of Chernobyl.

One reason is simply economic. The meltdown has been described by many — including then-leader Mikhail Gorbachev, years later — as a turning point, the event that ultimately triggered the fall of the Iron Curtain. Reality is more complex. Soviet Russia was stagnating and in near-irreversible decline by 1986, when a sharp drop in oil prices left it desperately short of hard-currency earnings. Figures vary, but academic estimates put gross domestic product growth at less than 1% around that time; productivity was dismal. While China’s economic expansion may be slowing, it’s still nowhere near this parlous state. A comparison with 2003 also suggests that consumption should bounce back, even if other, trade war-related drags on the economy remain.

Consider, too, the political differences. By 1986, Moscow was ready for a shake-up. Gorbachev had ascended to power a year earlier, and by the time of the accident had already spoken of the need for perestroika, or economic restructuring, and glasnost, roughly translated as openness. He nevertheless managed to use the Chernobyl incident to edge out old-school, Brezhnev-era politburo members like Vladimir Shcherbitsky, head of the Ukrainian Communist party. It was the excuse he needed to accelerate his plans.

There’s no evidence of such winds of change in Beijing, even if it’s noteworthy that officials are being placed in positions that make them potential lightning rods for public anger. Premier Li Keqiang is the head of the team in charge of containing the outbreak, not President Xi Jinping.

The biggest difference, however, is in the symbolism. Chernobyl battered the very essence of the Soviet state, an entire system built on a myth of outsize military and economic might. The catalog of irresponsibility, careless work and shoddy design at the Ukrainian plant dealt this image a hefty blow, from which it could not recover. It also battered the idea that limited openness would suffice. Moscow was forced to admit its problem because of radioactive readings in Sweden — Beijing has at least delivered its own message.

To get a sense of the impact, also consider that Soviet citizens had rarely been told of nuclear failings, however large and fatal. The accident at Mayak in the Urals in 1957, which forced thousands from their homes, was only reported abroad after a dissident scientist discussed it in the late 1970s. Earlier trouble at Chernobyl itself was covered up. The shockwaves were far greater as a result.

None of this should diminish the seriousness of the Wuhan crisis, which is still unfolding. To date, more than 300 people have died, and more than 14,000 have contracted the illness. It could get far worse. The timing is also dismal for China, as it comes to the end of a five-year plan with a cooling economy. Beijing, though, is well aware of the risk presented by unexpected events. It’s no accident that while cheery videos of doctors heading off to Wuhan have appeared, so too has some mild criticism, especially of local government — pressure valves, of sorts. Officials have turned to hefty fiscal stimulus in the past, and can do so again.

Chernobyl should be a warning. Just don’t expect Beijing’s version of perestroika anytime soon.

 

BLOOMBERG OPINION

The FAA doesn’t care if you feel like a sardine in that plane

By Joe Nocera

ONE OF THE things we learned in the wake of the two 737 Max crashes that killed 346 people within five months is that the Federal Aviation Administration (FAA) and the Boeing Co. were “too cozy for either’s own good,” as my colleague Brooke Sutherland wrote in March. The FAA, it turned out, had outsourced much of the certification process for the plane to Boeing itself. As a result, a flawed aircraft was allowed to fly, with tragic results.

The FAA is a classic case of “regulatory capture” — it is more focused on the needs of the industry it is supposed to regulate than on the consumers it is supposed to protect. Letting airplane makers certify their own planes is only one example. Another, I learned recently, is the way the agency approaches airline seats.

Who doesn’t hate the seats in economy class? They’re terribly uncomfortable — narrow and cramped. Before airline deregulation in 1978, most airline seats had 36 inches of legroom, or “pitch,” in airline jargon. Today, the legacy airlines have reduced seat pitch to 30 or 31 inches, while several low-cost airlines have cut it even more, to 28 or even 27 inches. Passengers emerge from long-distance flights with aching backs and stiff necks. Paul Hudson, the president of passenger rights group FlyersRights.org, told me that he views the misery that modern seats inflict a “health, safety and human rights issue.”

The reason seats are smaller is no secret. The narrower the seat, and the smaller the pitch, the more seats airlines can cram into planes. More seats mean more revenue. Plus, by installing a large class of uncomfortable seats, airlines are creating the desire among passengers who can afford it to pay for a smaller number of more comfortable ones.

“Sardine seating exists to allow airlines to squeeze passengers’ pocketbooks by threatening pain,” Hudson has said. Passengers in too-cramped seats sometimes get blood clots in their legs. Sickness can be passed more easily from one passenger to another when their seats are too close. And the crowded seats make it more difficult to evacuate in an emergency.

The Association of Flight Attendants also believes that the modern seat configuration poses dangers. In a memo it issued last October, it pointed to passenger “air rage,” increased conflict over bag storage and difficulties faced by disabled passengers — as well as evacuation worries — as problems caused by too many seats too close together. The flight attendants’ union concluded, “This is not an issue the market can fix. Safety needs to provide a bottom line.”

The health and safety of passengers is, of course, the whole point of the FAA’s regulatory authority. Yet it has dealt with the seat situation by bending over backward for the industry. Consider evacuations. The regulations say that all aircraft must be able to be evacuated in 90 seconds. But, just as with plane certification, the agency allows airlines to do their own testing — and lets them use computer simulations instead of actual humans.

And when the airlines do use real humans for such tests, they hardly reflect real-world conditions. Take a look at this 2006 test for the Airbus A380 (https://www.youtube.com/watch?v=XIaovi1JWyY#action=share). Do you see anyone trying to grab their luggage from the overhead bin — something people often do during evacuations? Do you see any charging cords, or bags under passengers’ legs, or soda cans on open trays impeding the evacuation? Do you see any children? Anyone who’s elderly or disabled or overweight? The answer to all of these questions is no. With the test rigged to optimal conditions, the more than 800 passengers were off the plane with just three seconds to spare.

Hudson began agitating for the FAA to take the seat issues more seriously in 2015. That year, he filed a petition calling on the agency to set a minimum length for seat pitch and width. He cited both health reasons — the possibility of thrombosis and other injuries — and safety — the evacuation difficulties.

The FAA rejected his petition the next year, contending that its evacuation tests showed that smaller seats were safe. FlyersRights.org sued, and an appeals court ruled in 2017 that the FAA had not adequately considered the petition and said that it needed to address the evacuation issue. (The FAA could ignore the health issue, the appeals court said.)

In 2018, the FAA rejected the petition again. (“The FAA has no evidence that there is an immediate safety issue necessitating rulemaking at this time.”) Hudson sued again. That case was tossed on a technicality.

By then, Congress was getting involved. Democratic Representative Steve Cohen of Tennessee, a member of the House aviation subcommittee, introduced the SEAT Act. It called on the FAA to consult with other federal agencies about health issues posed by airline seats; to force airlines to prominently post the pitch and width of the seats on their aircraft; and to establish a minimum seat size using “the safety and health of passengers” as its criteria.

The airlines lobbied hard against the bill and managed to eliminate the first two requirements. But Senate Minority Leader Chuck Schumer of New York attached the third requirement as an amendment to the FAA reauthorization bill. That bill was signed into law in October 2018. It gave the agency a year to complete its work.

Fast forward to December 2019 — two months past the deadline set by Congress. That’s when the FAA finally got around to conducting some tests.

Given the FAA’s conclusion about the health issues raised by cramped seats — there are none — it all came down once again to evacuations. Were modern airline seats an impediment to evacuating an aircraft in 90 seconds?

The tests, conducted at an FAA research facility in Oklahoma City, were ludicrous. It used an aircraft interior with only 60 seats. All the “passengers” were between the ages of 18 and 60, with the majority younger than 30, according to Hudson, who watched some of the testing. Only one or two passengers were even mildly overweight. There were no impediments, such as baggage or pets. None of the women wore high heels. Oh, and one other thing: People who got out fastest could earn more money.

According to Hudson, the first test he saw had the seats set at a 16-inch width and a 28-inch pitch; the 60 passengers evacuated in 43 seconds. When the settings were 18-inch width and 32-inch pitch, the evacuation took 37 seconds. “Based on these tests, size matters,” Hudson told me. “It debunks the position of the plane manufacturers.”

Reflecting on the way the Oklahoma City tests were conducted, Charles Mauro, an engineering consultant who specializes in how people interact with products, put it this way: “The FAA ended up cherry-picking a user population to accommodate the airlines’ business model.” Exactly.

The FAA is supposed to release the test results in March. But what will it do with the information? It is hard to know. The agency also has a larger group studying evacuation standards. It says that the seat data will be given to the evacuation group. And then?

Then the FAA will have to decide whether it wants to anger Congress, which clearly wants higher seat minimums that would cost the airlines money, or the industry, which wants things just the way they are now.

I know where I’m placing my bet.

 

BLOOMBERG OPINION

Suntrust bags most innovative residential developer 2019

Suntrust Properties, Inc. (SPI) starts the year on a high note with its recent citation as the Most Innovative Real Estate Developer 2019 in Bangkok, Thailand last January 31.

The award given by International Finance recognizes excellence in the residential and commercial property space in emerging markets. SPI prides itself in this spotlight as some of the criteria it follows are the quality of products, innovation and style of facilities provided, sustainability, growth, and most importantly corporate social responsibility.

” We are honored to be chosen as this year’s Most Innovative Residential Developer. Our residential and industrial communities uplift the lifestyle of our residents and enhance the value of their investments.

All our strategically-located developments provide thematic and functional amenities to complement our well-thought out homes and condominium towers. Our industrial community has recreational facilities for employees and supports green initiatives in the areas of mass transportation, waste management, and water conservation/treatment. On our third decade and beyond, we commit to expand our reach across the Philippine archipelago in line with our goal – HOME FOR EVERY FILIPINO.” said Atty Harrison M. Paltongan, the company president.

Suntrust Properties, Inc. (SPI), through its subsidiaries, Stateland, Inc. (SLI), Suntrust Ecotown Developers, Inc. (SEDI), and Sunrays Property Management, Inc. (SPMI) envision a BIGGER, BETTER, and BRIGHTER future of providing quality and affordably priced homes for the Filipino homebuyers. With a combined real estate development track record of 65 years, SPI and SLI continue to expand their joint portfolio of vertical and horizontal projects nationwide. Suntrust is a wholly owned subsidiary of Megaworld Corp., a company under the umbrella of Alliance Global Group, Inc.

Affordable cancer protection with AXA’s Health Start

Cancer, aside from being among the top diseases that cause death in the Philippines, is also found to be one of the most expensive illnesses to treat.

The out-of-pocket cost for cancer treatment is among the highest, according to the Philippine Cancer Society. Add to that a report by Mercer Marsh Benefits last year revealing that the Philippines is the second most expensive Southeast Asian country in terms of medical expenses.

A medical oncologist who runs a Facebook page dedicated to raising cancer awareness, attests to the financial burden faced by many Filipino cancer patients nowadays.

“I’ve encountered patients who were forced to borrow money from loan sharks to pay for their cancer treatment,” the doctor wrote. “I’ve encountered patients who had to sell whatever few livestock, farm animals, or agricultural lands they have. Some had to stop sending their kids to school. On social media, it is not unusual to see posts about people with cancer or their family members selling various goods on the streets to earn money for their medical funds.”

Cancer indeed does not only bring pain to patients, but it can also sever their hard-earned finances. Worse, cancer can’t be predicted and can attack when you least expect it.

For such an emergency, it is important to have yourself and your family financially prepared. AXA, one of the country’s leading insurance providers, recently introduced a new product that can adequately provide health coverage on critical illnesses like cancer that is easy on the pocket.

AXA Health Start provides coverage for the top three life-threatening illnesses — cancer, heart attack, and stroke — and some of their early stage conditions at very affordable premiums.

Health Start also offers life insurance, ensuring your family will receive the life benefit in case of your untimely demise. Standard premiums paid will also be returned by the age of 75, while the remainder remains to be your coverage for illnesses or death until age 100.

In addition, the policy offers child coverage, with P200,000 benefit for covered child conditions. This is on top of the plan’s overall sum insured.

AXA’s new product has a suitable plan for everyone – from singles to families. Health Start for individuals finely covers critical illnesses. Health Start Family, on the other hand, can be shared between you and your spouse, a parent or adult child (18 years old and above), or a sibling.

Both Health Start plans come with the built-in child benefit coverage and is available for your child now or in the future.

Customers can choose between 10 and 20 years to pay depending on their budgets. Nonetheless, for a minimum monthly payment of as low as P1,500 for Health Start and P1,950 for Health Start Family, you are protected and will be provided the best possible coverage not only for yourself but also for your family with AXA Health Start.

To know more about this AXA Health Start, talk to an AXA agent today or visit www.axa.com.ph/healthstart.