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Powerlifter Adeline Dumapong-Ancheta bent on turning setback to opportunity

By Michael Angelo S. Murillo
Senior Reporter

ADMITTED to being disappointed at first when news broke out that the 10th ASEAN Para Games set to take place in the country this month was moved to a later date, powerlifter Andeline Dumapong-Ancheta said she has since moved past it, bent on turning the setback to opportunity to do well.

Originally set to happen from Jan. 18 to 25, the ASEAN Para Games 2020 was moved to give organizers time to settle “financial and logistical matters.”

Traditionally comes on the heels of the Southeast Asian Games, which the country hosted in December, the decision to defer was made after the Philippine Sports Commission (PSC), the agency tasked to fund the Para Games, acknowledged that it did not have enough funding left to bankroll a successful staging of the Para Games.

It is hoped that by moving the competition to March, enough funding would be raised to get the Games going as seamlessly as possible.

Like most in the Para Games community, Ms. Dumapong-Ancheta greeted the news with disappointment and lament, especially after putting a lot in training and was excited to compete in front of the hometown fans.

Eventually acceptance came to her that such occurrence was beyond their control, and instead chose to do what she is supposed to do — train for the Games and be ready.

“At first it was really disappointing to hear the news that the Para Games was being moved to a later date. It did not help that some people, especially on social media, were criticizing the move hard, saying that how come there was budget for the SEA Games yet there was none for the Para Games. As an athlete it was tough to hear those things and made you think hard,” said Ms. Dumapong-Ancheta, long the face of the Paralympic movement in the country, in an interview on the sidelines of the launch of The Philippines Yearbook 2020: The 50 Greatest Filipino Athletes, where she is included.

“On the other hand, in a way it is a plus for us because we get to train more. Personally for me it helped because I’m coming from an injury. We were ready to compete if the Games started as scheduled. So we just had to adjust our schedules and improve on our programs. Also, I just hope that the postponement would translate to better results for our team and, of course, the organizers,” she added.

Barged into the national and international sports consciousness after winning a bronze medal at the 2000 Sydney Paralympics, Ms. Dumapong-Ancheta, 46, said the drive to succeed and represent the country is still there 20 years since that breakthrough performance.

She said the same mindset continues for her entering this year’s Para Games.

“You’ll still get the best from me. It’s all or nothing as always. I’m 46 years old and I have already proven myself. I’m pretty consistent in international competitions throughout the years,” Ms. Dumapong-Ancheta said.

She vowed to continue what she is doing as long as her body holds up and she still enjoys competing.

“Not yet sure [if this going to be my last Para Games]. When I was 40, I started feeling some pain in different parts of the body and yet I’m still here. As long as I’m producing results and my body is keeping up, I’ll continue. More than winning, the camaraderie keeps me going. And representing the country is truly an honor,” said Ms. Dumapong-Ancheta.

Tiger motivation

Tiger Woods had exactly the start he wanted to his round yesterday. Tied for 17th halfway through the Farmers Insurance Open, he figured putting up a good round would put those ahead of him on notice, not to mention set him up for a final 18 with a legitimate shot at the hardware. And he did hit the ground running; he carded birdies on the first and third, sank a crucial chip for par on the fourth to keep the momentum going, and then capped his front nine with two more birdies to make the turn at four under on Moving Day. By the time he stood on the 10th tee, he was just two strokes off the lead.

Unfortunately for Woods, the back nine of Torrey Pines South proved to be a damper. His three-putt adventure on the 11th was ominous; he lagged his 55-foot attempt for birdie, and then couldn’t make good on the ensuing six-foot putt. He remained erratic the rest of the way, even needing to can a 15-foot knee knocker for par on the last hole to at least sign for a number in the 60s. “It was important to make that putt,” he noted in retrospect. “It was important to have some positive momentum going into tomorrow.”

To be sure, Woods isn’t likely to claim his ninth victory in the pride of La Jolla, California, and, in the process, break a tie with Sam Snead for the most number of career wins on tour at 82. It isn’t simply that he’s five strokes off the pace set by red-hot John Rahm, or that he has 12 others, including the likes of Rory McIlroy, Tony Finau, and Patrick Reed, ahead of him; it’s that he remains inconsistent at best. He could have had an outstanding start; his 69 was just about the worst he could have put up given the way he struck the ball. He then followed it up with a disappointing 71. And then there was his roller-coaster effort yesterday.

Regardless, Woods is certain to keep grinding today — because it’s the way he is, and because he knows he’s going for more than the title. Also at stake is his standing for a spot in the Olympics; he’s right at the cutoff for Team USA, and he’d like to climb higher on the list. And so his motivation isn’t the question. Rather, it’s if his game will cooperate with him enough for his intentions to produce results.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Why pick on Ayala and Metro Pacific?

In an official statement two weeks ago, the Department of Budget and Management declared that government had enough funds to respond to Taal Volcano’s eruption. Upon further inspection, I found that this is not the case.

See, in the P4.1 trillion national budget, P16 billion was earmarked for calamities under the National Risk Reduction and Management Fund. But out of this amount, P3.5 billion was earmarked for Marawi’s reconstruction and P5 billion was appropriated for repairs following the earthquake that hit Davao last year. In other words, there is only P7.5 billion left in the fund and this must be made to suffice not only for Taal’s relief but also for all other disasters that may befall the country this year.

True enough, government is already running low on resources. While Taal’s evacuees have been provided with basic food and shelter, government is falling short on medicines and medical care, water supply, electric generators, etc. It is not clear how the state will finance the resettlement cost of those displaced, let alone reconstruction of the affected areas.

As always, it is the private sector that is filling the gap. Private companies, large and small, have embarked on their own relief operations in the spirit of bayanihan. Interestingly, the conglomerates owned by the very “oligarchs” under attack by this administration are contributing in the biggest way.

Insiders reveal that the owners of the Ayala and Metro Pacific groups have instructed their respective subsidiaries to go all out to assist government in its relief operations.

Within the Metro Pacific Group, Meralco has provided portable electricity generators for most evacuation centers as well as solar powered charging stations. PLDT and SMART are supporting the volunteers of the Metropolitan Manila Development Authority (MMDA), the Red Cross, and Philippine Institute of Volcanology and Seismology (Phivolcs) with load credits and communications support.

Metro Pacific Tollways Corp. is working alongside the Department of Public Works and Highways (DPWH) to clear roads of ash and debris using its own heavy equipment. For its part, the Makati Medical Center has provided 8,000 face masks and 1,500 first aid and hygiene kits to both evacuees and emergency responders. They have also set up free nebulizing stations for those with respiratory problems.

Maynilad has deployed 13 water tankers for the affected communities. Metro Pacific Investments provided 1,000 blankets, 1,000 mats, and 1,500 shirts for the victims. This came with a food truck dispensing hot meals care of TV5.

As for Ayala, its water unit, Manila Water Company, has made available 30 water tankers for the affected communities. It will be refilled when depleted care of another subsidiary, Laguna AAA Water Corp. It has also provided 2,000 five-gallon containers of potable water to various evacuation sites.

Ayala Malls has opened the cinemas of Solenad and Nuvali for those needing shelter. Meanwhile, affected clients of BPI, BPI Family Savings Bank, and BPI Direct BanKo can avail of a 30-day deferred payment window for amortization payments without penalties.

Globe Telecoms is using its reward platform to amass donations for evacuees. Moreover, free wi-fi connection in all four terminals of the Ninoy Aquino International Airport (NAIA) as well select malls in Laguna, Cavite, and Batangas have been set up.

Ayala Motors has donated 10 Kia cargo vans to the local government of Batangas for the relief effort. Ayala Health is offering free medical consultations in its FamilyDOC clinics.

The tremendous contributions extended by the Ayala and Metro Pacific Groups is not for show. They did the same during typhoons Yolanda, Ompong, Lando, and Ondoy. They have contributed too in the reconstruction of Marawi following its siege.

It just proves that these conglomerates, owned by so-called oligarchs, are not enemies of the state. They have proven to be reliable allies of government during national calamities.

In fact, their contributions goes beyond national emergencies. More significantly, they have been government’s partner in national development. Through the years, the Ayalas and Metro Pacific have invested hundreds of billions to modernize the country’s roads and highways, the telecommunication backbone, the development of central business districts, power generation and distribution, health care, banking and, yes, even water distribution.

Its easy for us to take them for granted — but imagine life without 3G and LTE connectivity, without well-maintained expressways, without reliable power, without the Fort and Makati, without world class healthcare services, and without reliable water service. Lest we forget, government had neither the financial resources nor the talent to deliver these facilities to the people.

The point is, the Ayala and Metro Pacific Groups have stepped-up to help in nation building when government could not. This is why it is unfair for them to be singled-out and vilified.

Truth be told, there are worse conglomerates out there whose wealth have been built at the expense of the general public and/or illegal operations. They should be the ones attacked first.

Consider the owners of banks whom are scot-free even if they duped their depositors of their life’s savings. Consider the owners of real estate companies who left scores of buildings unfinished without refunding their buyers. Consider the owners of pre-need companies who left their policy holders high and dry. Consider the billionaires who amassed wealth through illegal gambling or land grabbing,

With so many dubious conglomerates and businessmen out there — I find it puzzling that two of the country’s most respected ones are being singled out.

I would hate to think that this is all politically motivated because if it is, then this administration reveals itself as being more petty and vengeful than everyone thought. Neither would I like to think that this attack stems from the fact that the Ayalas and Manny Pangilinan are poster children of Imperial Manila’s elites. In other words, educated, genteel, proper, hard working, and business savvy. If this is the case, then the attack has nothing to do with injustice but everything to do with personal bias.

I think the Ayalas and Metro Pacific have already been put in their place what with the renegotiation of their water contracts and the losses of hundreds of billions that will result from this. It is punishment enough for whatever “sins” they have committed. I say, let them be so they can focus on helping government build the nation. Instead, let the ire of the administration be channeled to the many dubious and corrupt businessmen out there who truly deserve it.

 

Andrew J. Masigan is an economist.

A market-friendly way of reducing medicine prices

About two weeks ago, President Rodrigo R. Duterte, in an interview with Ted Failon from ABS-CBN, said that he will sign an executive order imposing a limit on the prices of certain medicines. “That’s good for the Filipino, reduced prices or maintaining a price. I will even sign the document twice over,” the President said.

President Duterte referred to a draft of a Department of Health Administrative Order (DoH-AO) entitled “Guidelines for the Implementation of Maximum Retail Price (MRP) on Drugs and Medicines.” Reportedly, the document is not on the desk of the President yet, and is presently reviewed by the relevant rest of his government.

As users, we are all for lower costs of medicine. I cannot say that that is true for the manufacturers, multinationals, or the local pharmaceutical generic companies. But I say that each of them should be for lower prices of medicines, not because their hearts bleed for the families who sink into poverty if a family member is stricken with a disease that can only be treated with very expensive medicines. But because lower prices increase their market share, and in a highly competitive medicines industry, reduced prices can be a good marketing strategy.

The industry is made up of monopolists. The right to sell a medicine in the market is protected with a trademark, which accords the owner the right to exclusively market its product. But — and this is an important difference with an industry with a single supplier — there are other medicines which are as functionally effective in curing a disease. The companies are monopolistically competitive. All the medicines in the market that are functionally equivalent in treating a disease are differentiated from each other to cater to a particular need or preference of a subset of buyers, and this make each company in the industry monopolists with respect to their own product, but they have to compete with other monopolists.

True, in the first 21 years of the commercial life of a useful pharmaceutical ingredient, the company which first developed the ingredient has exclusive right under our patent law to market the product containing it. The privilege is important to encourage research and development of new and useful medicines. But once the ingredient is off patent, then other companies can use it and introduce slight differentiation on the ingredient to cater to the need or preference of a particular segment of the market, and produce a new product that can be protected with a trademark.

But because there are several medicines which contain the same pharmaceutical ingredient in the market, the firms are always competing with each other. Since they are monopolists, each of them decides at what price it sells its medicine. If the price is just too high, buyers can shift to competing medicines and the company’s share in the market declines. It can reduce its price and gain more revenues. It is not a zero-sum game since the lower price induces more revenues but still market shares would differ.

AN OPPORTUNITY UNDER THE UNIVERSAL HEALTH CARE LAW
The government has the opportunity under the universal health care law to be innovative in solving the problem of high out-of-pocket costs on medicines — an approach that is more market friendly. It can induce more competition among the drug makers through the centralized procurement of medicines. Dividing the medicine procurement among scores of procuring authorities removes the government’s leverage to negotiate the lowest price of a medicine in exchange for a larger volume.

A monopolistically competitive firm can agree to lower its price up to its average cost of producing the product. Average costs goes down with volume because the firm has sunk fixed cost in differentiating its product from other functionally equivalent medicines of other companies. Its capacity to bring down its price depends upon the cost it spent in coming up with its medicine.

Decentralized procurement of medicines by the public sector eliminates the opportunity for the government to make a good deal with the pharmaceutical company. A smaller volume by one procuring authority is not attractive for companies to participate in bidding. This and unrealistically low ceiling unit bids prescribed by the health department would only attract a few bidders in the market, typically the smaller ones which have relatively sunk lower fixed cost in developing their respective products.

Medicine prices then continue to be priced high. Lower volumes sold would mean higher average unit costs of companies, and higher prices. Larger volumes sold through central procurement can bring down average costs as fixed costs are spread out, reducing medicine prices.

The solution is not that easy to do, particularly in an environment of imperfectly coordinated public bureaucracy in the health sector, not to mention the lingering problem of corruption. The central procuring authority has to plan out well the government’s requirements. Gathering information on this is a challenge. We don’t want a situation where some central procuring authority is procuring medicines that some of the public users do not want. An organization of the Department of Health family in coordination with the local government units is needed. The health department may want to know from experts how this can be done.

Then there is the problem of distributing the procured medicines. The good result is that the procured medicine is needed, delivered at the right time, and to the right place. The effective distribution of procured medicines is another challenge for the central procuring authority in addition to planning for an effective central procurement of medicines. Once again, the health department may want to know how the private commercial sector does this task.

The Universal Health Care Law gives the Department of Health this opportunity of a market-friendly approach of bringing down medicine prices, but it has serious challenges to overcome: planning the procurement, executing the bids efficiently, and timely and accurate distribution of medicines to the rest of the health sector bureaucracy.

TREND IS PRICE NEGOTIATIONS
As a solution to high out-of-pocket costs on medicines, maximum drug retail prices (MDRP) belongs to the past. It is, in the first place, premised on shaky ground: the assumption that we charge higher prices here compared to other countries. In design following the guidelines of the health department to implement it, one of the criteria used for including medicines in the program is if their local prices exceed the external reference prices of medicines compiled by the World Health Organization (WHO). However, WHO failed to adjust prices of medicines of several countries for differences in time, exchange rate, health care policies, and other factors between countries (Cameron et al. 2011). This cast doubt on the validity of the price premia of medicines in the Philippines over international prices.

Long term consequences of price controls have always been known to be bad for consumers and producers. As users of medicines, we may be happy to see the prices of medicines go down. But after some years, important medicines may disappear from the local market, and we would be forced to import those from abroad. There can issues on timing and cost of access, and, more importantly, the efficacy of medicines. In the long run, users may be worse off with medicine price capping.

Policymakers often cited India as a model where drug prices are lower than in the Philippines. But according to one account published in BusinessWorld (https://www.bworldonline.com/price-controls-on-drugs-are-not-a-good-idea/), Professor Amir Ullah Khan of the MCR HRDI Institute, Government of Telangana, India enumerated several problems that India experienced with price capping. These included (a.) reduced consumption of medicines; (b.) reduced medicines access of rural areas; (c.) decline of new drug launches; and, (d.) out-of-pocket costs for healthcare did not go down as health care institutions recouped their losses from price capping by charging higher for use of facilities.

Recent trends in other countries are towards price negotiations. Two studies (one which appeared in Deloitte Insights in 2018 entitled, “A new view on market access and reimbursement: Launching innovative biopharma in China”; and another, which appeared in 2018 in the Value in Health Regional Issues, an Elsevier Journal, on “Recent Pricing Negotiations on Innovative Medicines Pilot in China: Experiences, Implications, and Suggestions,” by several authors) documented the gains China had by using price negotiations on innovative medicines.

In China, for users to benefit from medical insurance, the medicines have to be in its national drug formulary, of which there are two lists. The A list contains the essential medicines which must be available in all health care facilities sin China. The B list may include new drugs following an extensive evaluation and price negotiations, including expensive innovative medicines for diseases like cancer which are normally excluded. The manufacturers can apply for inclusionin List B subject to several criteria including a mutually negotiated price of the product.

Deloitte documented some of these gains. Medicine prices did go down significantly but not because of price capping, but because of price negotiations. (See the table.)

Perhaps, we can learn more from China and India on price capping and price negotiations.

 

Ramon L. Clarete is a professor at the University of the Philippines School of Economics.

The UP Chancellorship

The University of the Philippines (UP), particularly Diliman, is abuzz. The process of selecting the next UP Diliman Chancellor has aroused the UP community, including the alumni.

Although it is the Board of Regents (BoR) that appoints the Chancellor or for that matter the UP President, it has been a tradition, for good reason, to involve all stakeholders in the decision.

The excitement and the enthusiasm of stakeholders are most marked in the real digital world. On Facebook, I have seen the supporters of the two nominees — Prof. Ferdinand Manegdeg and Prof. Fidel Nemenzo — go all out for their candidate.

To be transparent, the feed that I receive mainly comes from those who support Prof. Nemenzo, a result of self-selection since I am a friend of Fidel.

My friendship with Fidel is based on our core values — upholding decency, standing for truth and fairness, serving the public good, supporting progressive causes, and practicing tolerance. But friendship does not mean an avoidance of disagreements. Fidel and I have contrasting views on different things. But we — precisely because we value tolerance — learn to dissociate differences (say in politics, business, and religion) from our friendship.

When some of Fidel’s supporters requested me to sign a petition letter in support of his candidacy, I opted to beg off. It is better, I thought, to have many statements of support that offer different reasons and perspectives. Hence, this piece serves as my contribution.

I also quibbled over the statement’s premise that UP Diliman is the “flagship” of the UP System. This is debatable, for the other constituents of the UP system are on a par with Diliman. It is the synergy of the constituent universities that define UP as the national university, as the country’s premiere university. UP Los Baños is the national academic center for agriculture. UP Manila is the national health and science academic center. In fact, the recent rise in the UP’s global academic reputation can be attributed to the large number of published journal articles and citations that come from the faculty of UP Manila.

That said, UP Diliman inherently shapes the present and future of UP education and the country’s higher education. Thus, selecting its leader merits the scrutiny not only of the UP Diliman community but also of the whole UP System and the larger society.

Here, I cite a few reasons why Fidel is the better choice, the excellent choice, to become the next UP Diliman Chancellor.

First, the mission of any great university is to serve the country through education, learning and research. Even as UP has to be primarily responsive to the specific development objectives and needs of our country, it must pursue a standard of excellence at the highest international level. Given his national and global stature as an academic, as a scientist and as a public intellectual, Fidel fits the mold of wedding the university to the national and global communities.

Fidel articulates well this challenge in his paper titled “Re-Imagining UP Diliman as an Academic Center of Excellence.” He states that “ internationalization requires an appreciation of our own culture and history because this will serve as our anchor in the globalized world.” In the same breath, he says: “In UP, our internalization policy should also be firmly grounded on the recognition of our duty to our own nation.”

Second, given the weaknesses in our education system and the skills demanded by a country that aspires to become a higher-income country, the university also has a lot of catching up to do with respect to the sciences, technology, engineering and mathematics (STEM). In this respect, it is welcome that the two candidates for the Chancellorship have sciences as their field of discipline.

Nevertheless, STEM, although necessary, is insufficient for students to learn the real world and to become good citizens, for applied research to be robust, and for practical public policies to endure. The role of liberal arts education cannot be diminished.

Here, Fidel shows his superiority. Unlike Prof. Manegdeg who simply enumerates programs and activities to fulfill UP’s inter-disciplinary character, Fidel provides the deeper rationale, even the underlying philosophical foundation, behind an inter-disciplinary mission. Says Fidel: “We will strengthen our General Education program, alongside the specializations, so that our graduates are equipped with the necessary skills of critical thinking, communication, and collaboration, imbued with necessary cultural and ethical moorings in this age of globalization and new technologies.”

Third, the UP, like other great universities, is fiercely vigilant of its academic freedom. It is a bastion of freedom of thought and expression. It protects its constituents from all kinds of discrimination, including political discrimination.

This institutional value or culture constrains UP leaders, regardless of their political leaning. Like it or not, the UP leader, the President or Chancellor, has to be jealous of academic freedom. His or her ideological leaning or political affiliation becomes exogenous with regard to the defense of academic freedom. Thus even during the period of dictatorship, UP presidents — OD Corpuz, Emanuel Soriano, and Edgardo Angara — tried to protect academic freedom, even though activists perceived them as instruments of the dictatorship.

In this regard, the behavior of some of Prof. Manegdeg’s supporters who accuse Fidel of being communist or Red is most uncalled for. It is irrelevant. In the first place, Fidel himself is quite critical of the Reds. But because Fidel values academic freedom, freedom of thought and expression, and freedom from discrimination, he welcomes a multiplicity of colors to flourish and to contend.

Fidel himself wears many colors. He is indeed Red for being a socialist. He is Yellow for his strong belief in liberal values like individual rights, tolerance, and pluralism. He is Purple because his wife trained him to become sensitive to gender and feminism. He is Gold and Blue because he is a member of the Pan Xenia fraternity. And he also wears the colors of the Dutertards because he can relate with them in having a strong and decisive leadership for nation-building.

But yes, Fidel is mainly Red because that is the underlying color of UP — UP Maroon. Fidel represents the best qualities of the UP Maroon.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

Kiong Hee Huat Tsai

“Congratulations and wishing you prosperity!” — that is what “Kiong Hee Huat Tsai” conveys in the Hokkien dialect, which is what the majority of the Chinese Filipinos (Tsinoys) here in the Philippines speak.

Since 2012 when then-President Benigno Simeon Aquino III declared Chinese New Year’s Day a public (non-working) holiday, the special event has been a lower-key local sequel to the big bang of the traditional world New Year’s Day on Jan. 1. And Filipinos (they say we all have some Chinese blood in our veins somehow) have taken the rituals and symbols of the Chinese New Year seriously. Jan. 25 started the year of the Metal Rat, the first animal in the Chinese Zodiac, ushering in a new 12-year cycle in the lunar rhythm of Life.

The enchantment with the Chinese New Year perhaps shows eagerness (or urgency?) to find some magic formula to secure wants for prosperity and stability. The Binondo Chinatown markets can be shamed by the crowded tiangge (flea market) at the Greenhills Shopping Center that abounds with pagan good luck trinkets and other feng shui items — sold, curiously, mostly by Muslim brothers and sisters clothed in their traditional attire, and bought by avid Christians already bedecked with religious medals and rosary-bracelets strung with “healing stones” for the chakras of the body more than for the soul.

Chinese New Year indeed emphasizes the merry mix of cultures in our country. If prosperity and stability are hoped for in the New Year, it would not hurt to feed ampao (money in a red envelope) to the rearing head of the paper lion, as the nine-or 11-jointed (they cannot be even-jointed) nine-meter long (or more) paper dragon manipulated by 10 dancing men writhing around the commercial centers of the big cities. Hope business will be good in 2020.

“Two of the Philippines’ taipans, whose businesses have become part of Filipinos’ daily lives, passed on (in 2019). On the economic front, borrowing costs went down as inflation eased. Chinese expatriate workers, who helped spur property demand, were placed under closer scrutiny,” ABS-CBN News summarized in its year-ender on Dec. 24, 2019. Tsinoy corporate giants Henry Sy, John Gokongwei, Jr., and George Ty (the latter passed on in 2018) are missed, as they will always be remembered and appreciated for the huge contributions they personally made to economic development in the country.

On the other hand, most of what happened last year was somehow related to our somewhat confused relationship with the communist Mainland Republic of China.

And President Rodrigo Duterte has been the main spice for the socio-political and economic broth “double, double, toil and trouble” which bubbled in the events of 2019 — in which prospects for business and survival in 2020 will serve the expected prosperity and stability for the Filipino people. Mr. Duterte has openly professed alliance with, and “love” for, China’s President Xi Jinping (and for ousted former dictator Ferdinand Marcos and his family — yet another story). Duterte has ignored the arbitral ruling of The Hague that declared part of the West Philippine Sea, Philippine territory.

Last year, former Ombudsman Conchita Carpio-Morales and former Secretary of Foreign Affairs Albert del Rosario filed a case in the International Criminal Court (ICC) against President Xi and other Chinese government officials for alleged “crimes against humanity” because of environmental damage in the West Philippine Sea due to land reclamation, occupation of islands, and destructive fishing activities conducted by China. The communication was delivered to the ICC two days before the Philippines’ ICC withdrawal became effective (ABS-CBN News, March 21, 2019).

A year earlier, Duterte withdrew the Philippines from its ratification of the Rome Statute, reacting to the start of the ICC’s preliminary examination into allegations of extrajudicial killings in the Philippines (Philippine Star, March 14, 2018). In 2017, lawyer Jude Sabio filed a complaint at the ICC accusing President Duterte of murder in a bloody anti-drugs crackdown. Sabio was the lawyer for Edgar Matobato, a man who has testified in the Philippine Senate that he was part of a hit squad that operated on Duterte’s orders. Early this month, Sabio withdrew his complaint in a 28-page letter addressed to ICC Prosecutor Fatou Bensouda (Interasksyon, Jan. 15).

Former Senator Antonio Trillanes, one of Presdient Duterte’s most vocal opponents, said the president’s allies must have had a hand in Sabio’s decision, saying it was an indication they are worried about the ICC case, Interaksyon reported. President Duterte will eventually find himself answering charges before the ICC, lawyer Chel Diokno, defeated Senatorial candidate in the May 2019 elections, said, citing the Philippine courts’ inability to prosecute him because of the legal immunity he enjoys while in office (ABS-CBN News, Dec. 19, 2019).

Perhaps 2019 saw the most violent attacks against media, as Rappler CEO and journalist Maria Ressa was arrested for allegedly violating the Anti-Dummy Law, which prohibits foreigners from intervening in the management and operation of a Filipino media company. “She cannot be always using the freedom of the press as an excuse to attack the administration,” Presidential Spokesman Salvador Panelo was quoted as saying in the Philippine Daily Inquirer of March 19, 2019. But what crime has ABS-CBN done (which has been “earmarked” for closure in March this year, when its franchise ends)?

If the “crimes” oppositionists are accused of are easily seen, where is the 20/20 vision when it comes to the deterioration of peace and order (extrajudicial killings, a.k.a. EJK, and street crimes) and of rising corruption in the country? EJKs have been ferociously denied by the administration, while unstable statistics have weakened arguments of the rights-conscious, as the ICC protests seem to show.

Corruption in the Philippines is getting worse, with the country sliding a whopping 14 places and now ranking 113th of 180 countries (from 99 in 2018) — with a score of 34 out of 100 — in Transparency International’s annual Corruption Perceptions Index, a ranking of the most corrupt and cleanest governments in the world. And yet the government turns around and calls two of the most respected top corporations in the land corrupt and greedy, of having exploited the Filipino people’s vulnerability with the basic need of water. It all started with the water shortage in Metro Manila in the summer. Then the concession contracts of Manila Water, owned by the Ayala Group, and Maynilad, owned by the Manny Pangilinan group of companies, were reviewed and deemed “onerous” by the political governance.

Contracts with government will all be reviewed, President Duterte announced late last year. Then came the focus on the Ayala Group’s 2006 tie-up with the University of the Philippines Technohub, with threats to “adjust” (change?) contracts “to protect the interests of the Filipino people.” Private lawyers have been pointing to provisions in civil law on the stability of contracts (one party cannot force renegotiation or individual novation), and the more intelligent Filipinos will know what the repercussions of this autocratic adjustment of government contracts with the private sector upon the actual and perceived rule of law in the country will be. The financial and stock markets have already intuitively factored in the insecurities of private business and investors and risk and returns have been affected.

Feng shui master Patrick Lim Fernandez, a former investment banker, commenting on the prospects for the Year of the Rat, 2020, says “Be extra careful of investments and savings this year.” Master Hanz Cua also said in the Tempo of Jan. 20 that investments must be carefully planned, like the mythical Rat, who squirrels away bits and pieces of food for sustained survival.

We are well warned of the challenges in the Year of the Rat.

 

Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Olivia Burton is now in the Philippines and has a colorful way of welcoming 2020

British accessories brand Olivia Burton, together with Philippines’ Retail Specialist Newtrends International Corporation, bring fashion and function to the islands of the Philippines introducing trendy and unique timepieces for women.

Founded by best friends and former fashion buyers Lesa Bennett and Jemma Fennings, the brand is named after Bennett’s great aunt whose vibrant energy and unique style served as great inspiration to the duo. Olivia Burton has been making waves in the fashion industry since the launch of its debut collection in 2012.

Designed in London, the brand takes inspiration from fashion, vintage, and nature to create unique accessories that can be treasured forever. With nature being the brand’s main theme, Olivia Burton is embarking on a new journey to become a more sustainable fashion brand. Innovation does not stop the established accessories brand for they now have vegan friendly styles featuring synthetic straps customers can choose from.

Bees, butterflies, bunnies and water color florals are some of the common elements that customers can expect from Olivia Burton’s nature-inspired collections.

Every piece has a Japanese quartz movement, which is carefully designed and produced in a limited quantity.  Its watches are a great addition to complete one’s style and wardrobe.

The Rainbow Collection

This year 2020, Olivia Burton is introducing a new set of timepieces that will surely and again capture the heart of everyone.

From left to right: Rainbow Rose Gold Mesh You Have My Heart Lucky Bee, Silver & Rose Gold Mesh Rainbow Bezel & Rose Gold Bracelet

It’s all about the sparkle with this little gem. A rose gold bracelet strap and classic white dial offset a bezel that glitters beyond your wildest dreams. The sustainably-sourced Swarovski crystals are echoed in the rainbow markers that spread a little joy across the bold 34mm Demi-dial. The perfect reminder to embrace those positive vibes.

Meet our new Lucky Bee – the perfect treat or token of love this Valentine’s Day. Freshly updated to celebrate our eighth birthday (lucky number eight) our beautiful 3D bee sits proudly in the centre of a bubblegum pink brush stroke heart and contrast silver hands. Swarovski crystal markers, a rose gold mesh strap and limited edition gift box make this a very special present.

Why count numbers when you can count crystals? Add a touch of luxe to your everyday look with this sparkling timepiece in super-versatile Rose Gold. Little Swarovski Crystal stones and baguettes stand in place of the markers, against a clean white dial. This treasure-worthy piece is equal parts classic and standout.

Elevate the everyday with this sparkling style featuring Swarovski baguettes and tiny crystals, which replace the traditional markers in this luxe timepiece – made all the more impactful on a 38mm Big dial.

Olivia Burton has expanded across the world with numerous stores in UK, USA, Canada, Germany, France, Netherlands, Ireland, Hong Kong, Japan, Singapore and the Philippines. The brand has been well received in the market and its success does not go unnoticed. Olivia Burton was awarded as UK’s Fashion Watch Branch of the Year for two consecutive years in 2016 and 2017.

Olivia Burton watches are available in select Watch Republic Stores, Robinson’s, Landmark and Rustan’s Department Stores with more to open in 2020. Each unique timepiece ranges from P6,700 to P14,700.

Olivia Burton keeps up with the latest fashion trends by releasing new collections within a period of eight weeks.

 

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Nation at a Glance — (01/26/20)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

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Gov’t to sell at least P30B in RTBs

By Beatrice M. Laforga, Reporter

THE Bureau of the Treasury (BTr) is looking to raise at least P30 billion via the issuance of retail treasury bonds (RTB) starting Tuesday, Jan. 28.

In a notice posted on its website on Friday, the BTr said the fixed-rate RTBs will have a tenor of three years and an initial volume size of P30 billion, with option to upsize.

This will be the government’s first RTB offering this year and the 23rd issuance overall, following the sale of five-year RTBs in March last year where the Treasury raised P235.935 billion.

The offer period will start on Tuesday, Jan. 28 and run until Feb. 6 or at an any earlier date set by the BTr.

The three-year papers will be issued on Feb. 11 and mature in 2023.

These type of papers are offered to small investors as they consist of low-risk, higher-yielding savings instruments backed by the national government.

The papers will have a minimum investment of P5,000 and in multiples of P5,000 thereafter.

National Treasurer Rosalia V. De Leon said in a phone message that the proceeds of the fundraising activity will be used to fund the general budget.

Robinsons Bank Corp. peso debt trader Kevin S. Palma said the offer will likely be met with strong demand from the general investing public.

“The government was also prudent to come up with ways to manage its debt after it re-introduced its bond switch program. It basically allows current investors of the RTB 03-08 to extend maturity for another three years without having to shell out some cash,” Mr. Palma said in a Viber message on Friday.

In a separate notice, the Treasury said the RTBs will be officially launched on Tuesday along with its plan to “conduct switch tender offer for the 19th tranche of RTB as part of its liability management exercises.”

To encourage “wider participation among individual investors,” BTr said it will continue using its online ordering facility or the RTB Online Facility.

When ordering through the online platform, the BTr said a maximum of P500,000 will only be accepted per transaction.

The interest rate will be determined through a Dutch auction “based on current market levels of comparable securities rounded down to the nearest 1/8 of one percent.

Meanwhile, interest payments will be paid quarterly in arrears on the last day of each three-month interest period.

The bonds will be listed on the Philippine Dealing and Exchange Corp.

Of the P1.4-trillion borrowing program this year, the government will borrow 75% from the local market, while the remaining 25% will be sourced from external sources.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in Treasury bills and P180 billion via Treasury bonds.

Earlier this week, the Treasury raised €1.2 billion from its offer of the euro-denominated bonds, €600 million each for the two tenors — three years and nine years.

Broken down, the three-year bonds were priced at a rate of 0.1%, while the nine-year papers carry a coupon of 0.7%, a spread of 40 basis points (bps) and 70 bps over benchmark rates, respectively.

BSP: Inflation likely to stay within target range until 2021

INFLATION is likely to settle within the midpoint of the central bank’s target range this year until 2021, with risks tilting slightly upward, according to officials from the Bangko Sentral ng Pilipinas (BSP).

“It’s not something that we should worry about… Inflation will get closer to the midpoint of the target range,” BSP Deputy Governor Francisco G. Dakila, Jr. said during a briefing held at the central bank headquarters in Manila on Friday.

The BSP has set an inflation target range of two to four percent for 2020 until 2021.

BSP Monetary Policy Sub-Sector Officer-In-Charge Dennis D. Lapid cited several upside risks to inflation such as volatility in oil prices caused by tensions in the Middle East and the potential impact of the African Swine Fever on the price of some food commodities.

Petitions for adjustments in electricity rates as well as the higher excise taxes on alcoholic beverages are also flagged as upside risks, Mr. Lapid said in his presentation.

On the other hand, Mr. Lapid said slower economic growth due to the escalation of protectionist policies and geopolitical tensions will be a downside risk to inflation.

Asked how the weather disturbances in countries (like Vietnam and Thailand) where the Philippines mainly imports rice could affect inflation, Mr. Lapid said weather conditions are expected to be “largely neutral” for the most of 2020.

“As of the moment, as I recall correctly, the most recent outlook by the weather services continue to indicate a largely neutral conditions…going into the second and the first half and for most of 2020… So that suggests that we will continue to see, on the whole, normal weather conditions to the agriculture activity,” he said.

Mr. Dakila said the rice tarriffication’s impact to inflation is -0.6%.

Q4 INFLATION
BSP Governor Benjamin E. Diokno said that headline inflation in the fourth quarter of 2019 slowed to 1.6% from 1.7% in the third quarter.

“Inflation slowed down slightly during the quarter due mainly to lower food and non-food inflation,” Mr. Diokno said.

Core inflation also eased to 2.7% in the fourth quarter of 2019, from 2.9% in the preceding quarter.

Inflation in 2019 was at 2.5%, slowing from the 10-year high 5.2% print seen in 2018.

The Monetary Board will have its first policy meeting this year on Feb. 6.

“In terms of decision-making for the policy, the consideration is not whether inflation is going up or down but whether inflation is within the target or not,” Mr. Lapid said.

“A consideration also is the assessment is whether the uptrend is due to temporary supply side or whether we’re seeing a broad-based uptrend in prices,” he added.

Mr. Diokno has previously said that another rate cut is possible as early as the first quarter of 2020, depending on key data and conditions. — Luz Wendy T. Noble

Inflation for poor households eases to two-year low in 2019

THE inflation rate for the country’s bottom 30% income households grew 2.6% in December. — REUTERS

By Mark T. Amoguis, Assistant Research Head

THE year 2019 saw inflation as experienced by low-income families fall to its lowest level in two years despite picking up in December, the Philippine Statistics Authority (PSA) reported on Friday.

The inflation rate for the country’s bottom 30% income households grew 2.6% in December, faster than 1.7% in November, but slower than 7.2% in December 2018.

That month’s print was the fastest reading in five months or since July’s 3.1% growth.

This brought the full-year print to 3.2%, slowing from 7.2% in 2018. This was the slowest pace since the three percent growth recorded in 2017.

The results compare with the 2.5% headline inflation experienced by the average Filipino household in December and full-year 2019 by the PSA, as well as the Social Weather Stations’s Fourth Quarter 2019 Social Weather Survey results that saw the proportion of self-rated poor families at 54%, the highest in more than five years or since the 55% logged in September 2014.

For the entire year, self-rated poverty rate was at 45%, three points lower than in 2018.

The PSA uses the 2012 base year in computing the headline consumer price index (CPI), while the bottom 30% income households’ CPI uses 2000 prices.

Additionally, the bottom 30% income segment’s CPI reconfigures the model basket of goods to capture the consumption patterns of the poor. For instance, food accounts for 75% of the theoretical basket of goods used by the poor versus the 35.5% weight of an average household.

In December, faster upticks were recorded in the indices of food, beverage and tobacco (FBT), which went up 2.5% from 1.6% in November; fuel, light and water (3.2% from 0.2%); and services (3.1% from 2.8%).

Food-alone index increased 1.3% in December from 0.4% in November, while housing and repairs steadied at 3.7%.

A slowdown was noted in clothing (2.8% from 3%) and miscellaneous items (2.2% from 2.3%).

For full-year 2019, slower increments were noted in FBT (3.4% from 8% in 2018); housing and repairs (4.1% from 4.3%); and fuel, light and water (2% from 8.2%).

Food-alone index likewise slowed 2.7% last year from 7.1% in 2018.

On the other hand, clothing rose three percent from 2.4%, as well as services (3.4% from 2.7%) and miscellaneous items (2.3% from 1.9%).

Sought for comments, Security Bank Corp. Chief Economist Robert Dan J. Roces said that the lower inflation reading for the low-income households last year was due to base effects.

“For the overall reading, easing food prices would explain this downtrend for the bottom income segment, particularly coming from a high base,” he said in an e-mail.

Poor households’ inflation in Metro Manila increased to 2.8% in December from 1.1% in November, taking the full-year reading to 1.7%, slowing down from 6.6% in 2018.

Similarly, those living outside the capital experienced inflation of 2.6% in December, higher than November’s 1.7%, with the full-year pace easing to 3.3% from 2018’s 7.2%.

DoE and NDRRMC coordinating power needs in volcano-affected areas

THE Department of Energy (DoE) is coordinating with the National Disaster Risk Reduction and Management Council on controlling the electricity supply in the immediate vicinity of Taal volcano in case of a hazardous eruption.

They are identifying areas that need 24/7 electricity such as evacuation centers, local government command centers, and hospitals.

Energy undersecretary Felix William B. Fuentabella said that once an area is in lockdown, the energy sector will coordinate with the council on the suspension of electricity service and supply of downstream oil products in the concerned areas.

“Kailangan clear ang instructions and ’yung lines ng communication sa pagbabalik ng services o ng supply depende sa instructions ng council (There should be clear instruction and lines of communications in returning services or supply on the instructions of the council),” he said.

“So we will have a situation where evacuation centers will have to be supplied power or energy services, pero ’yung surrounding area niya wala (but not in the surrounding areas). This is to ensure that everyone, especially the people of Batangas and the other affected areas are safe.”

Mr. Fuentabella said that keeping lockdown areas supplied with electricity would be dangerous as people may be tempted to return home before it is safe to do so.

“Danger na nakikita namin pag binibigyan ng supply ng kuryente is bumabalik ang mga tao at di nasusunod sinasabi ng council. (The danger we see is if we supply electricity, people will go back and the council’s instructions will not be followed).”

Representatives from energy sectors said that while there are no power plants within the 14 kilometer high-risk zone, there are transmission and distribution lines within the zone.

National Grid Corporation of the Philippines (NGCP) Assistant Vice-President for South Luzon Gerardo Torres said they have 44 towers in the lockdown areas.

The NGCP is currently removing ash and debris from its power lines to assure continued power supply in Luzon.

“Once na mabigyan ng clearance to penetrate these facilities (in the high-risk area), we can clean all the towers,” Mr. Torres said.

The DoE spoke with representatives of the energy sector on plans to secure power plants in the event of a hazardous eruption and to improve government communications in case of loss of signal.

“Nandiyan din po ang suporta ng petroleum group… para malaman ng mga nasa area on the ground kung ano ’yung mga bukas at saradong estasyon ng gasolina, diesel, kerosene. (The support of the petroleum group is also there, so those in the area will know which gas, diesel and kerosene stations are open or closed),” Mr. Fuentabella said. — Jenina P. Ibañez

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