Three biggest ports miss BoC collection targets
NINE out of 17 collection districts in ports nationwide hit their revenue targets in 2019, though the three largest ports missed their goals, the Bureau of Customs (BoC) said.
In a statement Wednesday, BoC said the Manila International Container Port (MICP) was the top revenue generator at P164.404 billion, followed by Port of Batangas (P152.222 billion) and Port of Manila (P74.812-billion), though they fell short of their collection goals last year.
The nine collection districts that hit their 2019 revenue targets were Port of Limay with P56.332 billion, Port of Cagayan de Oro P34.540 billion, Port of Subic P32.373 billion, Port of San Fernando P4.237 billion, Port of Iloilo P3.406 billion, Port of Tacloban P1.425 billion, Port of Zamboanga P545 million, Port of Legaspi P510.26 million, and Port of Aparri P146.72 million.
The five other ports that did not reach their revenue targets were the Customs station at Ninoy Aquino International Airport, Port of Cebu, Port of Davao, Port of Clark and Port of Surigao. They collected P43.238 billion, P31.274 billion, P27.986 billion, P1.940 billion, and P19.43 million, respectively.
In total, the Customs bureau, the second-largest tax-collecting agency, generated P630.57 billion in revenue last year, up 6.32% year-on-year but nearly 5% short of its P661-billion target.
Meanwhile, the Bureau of Internal Revenue (BIR), the biggest tax-collecting agency, also missed its P2.33-trillion revenue target after collecting P2.172 trillion in 2019, which is nonetheless 10.67% higher than its revenue in 2018.
The two major revenue-generating agencies collected a total of P2.8 trillion in 2019.
This year, BoC is tasked to collect P731.235 billion while BIR has a collection target of P2.576 trillion, both over 10% higher compared to their respective targets in 2019.
The Development Budget Coordination Committee earlier tasked the two agencies to collect a total of P3.3 trillion this year, 17.85% higher than last year’s combined goal. — Beatrice M. Laforga
PIFITA bill expected to sail through Senate
THE measure simplifying the tax structure for financial instruments is expected to make smooth progress in the Senate, the head of the chamber’s Ways and Means Committee said Wednesday.
The proposed Passive Income and Financial Intermediary Taxation Act (PIFITA) was broadly supported by stakeholders appearing at the hearings, with some reservations, which the panel hopes to smooth out at technical working group (TWG) level.
“Maybe we need dalawang TWG para lang kausapin ng maayos ang iba-ibang sectors. Ang difference lang naman, although mostly are supportive, ang daming sector ang tinamaan (We could need about two TWG sessions to properly consult the various sectors. While most are supportive, lots of things will be affected),” Senator Juliana Pilar S. Cayetano said in a chance interview Wednesday.
Asked about the prospects for passing the measure, which forms part of the comprehensive tax reform program, within the year, Ms Cayetano said: “I’m very optimistic, even my colleagues are very optimistic. For this year, definitely.”
The 18th Congress is working to pass all the remaining tax reform packages to meet the year-end target of the Department of Finance (DoF).
PIFITA seeks to reduce the various tax rates to 36 the government charges on passive income from the current 80. It seeks to impose a uniform 15% rate on interest income and dividends.
The microfinance industry, chiefly represented by non-government organizations (NGOs), opposed the repeal of the 2% preferential tax, in lieu of all national tax, provided under the Tax Reform for Acceleration and Inclusion (TRAIN) Law. Prior to this, micro-finance NGOs were required to pay 5% or 12% value-added tax and other national taxes.
NGOs in microfinance said in a position paper that a repeal would effectively for the industry to “pass on this tax burden to micro-finance borrowers to ensure sustainability.”
“The higher the taxes, the higher the rates on borrowings paid by the poor,” they said.
Sen. Sherwin T. Gatchalian said the proposed tax regime for microfinance may affect the competitiveness of small entrepreneurs with the costs ultimately passed on to consumers.
“Nakita ko ito on the ground when I was in a local government position, these microfinance NGOs really finance the karinderya, fish vendors… in the market, dyan sila kumukuha ng puhunan araw-araw. (I saw when I was in local government how these NGOs financed eateries and fish vendors, who depended on microfinance for their daily capital needs) If we impose higher taxes, in effect these NGOs will be uncompetitive, and second it will be passed on to consumers,” Mr. Gatchalian told the panel.
“I see the disenfranchisement of 6.5 million micro-entrepreneurs.” — Charmaine A. Tadalan
Older workers can complement Gen Z skills — LinkedIn
A MULTI-GENERATIONAL work force presents opportunities for older workers to compensate for the shortcomings of millennials and Generation Z, and vice versa, LinkedIn said, citing the results of its Opportunity Index 2020 study.
LinkedIn reported that while ageism may discourage older workers, various generations in the workforce present an opportunity to fill in generational skills shortcomings.
“The biggest skills gaps that we see today are soft skills among gen Z and millennials, and tech skills among the older generation. We encourage companies to hire for complementary skills and to promote collaboration and bi-directional mentorship among their workforce,” LinkedIn Asia Pacific Managing Director Olivier Legrand said.
The study took in responses from 30,000 participants across 22 markets, with 1,000 from the Philippines. Generations covered under the survey were Baby Boomers (those born between 1946 and 1964), Generation X (1965-1980), Millennials (1981-1996), and Generation Z (1997 and later).
Globally, LinkedIn said that 43% of Baby Boomers said they struggle with age in the workplace while 25% of Generation Z workers said they view the lack of work experience as a problem.
In the Philippines, LinkedIn said the youngest workers, those from Generation Z, are the most uncertain about their work prospects and are concerned with “the environment, education, and health.”
“For the first time, four generations are working together. It’s time for businesses to set aside hiring biases against age, and embrace the multigenerational workforce as an opportunity,” Mr. Legrand said. — Gillian M. Cortez
China assessing loan request for the Samal-Davao bridge amid right-of-way dispute with landowners
DAVAO CITY — China is assessing a loan request by the Philippine government for the construction of the Samal-Davao bridge and a decision could be reached within the early part of the year, according to Chinese Consul General Li Lin.
“We are now making assessments of the request by the Philippine side… A concessional loan would be the best for the Philippines because the interest rate is really low (but) the amount of such loans (available) from Chinese side… is very limited. I hope that this can be realized,” Mr. Li told BusinessWorld Tuesday.
“I am not sure of the total amount of the loan. China government will make the assessment on the government budget,” he added.
Based on the project profile approved by the National Economic and Development Authority (NEDA) Board in November, the Samal Island-Davao City Connector (SIDC) Project is estimated to cost P23.04 billion, with official development assistance (ODA) identified as the funding source.
The Department of Public Works and Highways (DPWH) will be the implementing agency for the SIDC, a 2.8-kilometer, four-lane, toll-free bridge.
The project will also involve the construction of interchanges with the existing road network, improvements on existing junctions, viaducts over sections of land, and approach bridges over a marine area.
Mr. Li said that he is hopeful that the ongoing right-of-way dispute over the planned location of the abutments on the Samal end will be resolved soon.
“I have heard that some land owners on the IGaCoS (Island Garden City of Samal) side are not willing to give way and I also heard from the report that the governor of Davao del Norte himself is willing to discuss (the matter) with the owner of the land,” Mr. Li said.
Samal is under the jurisdication of Davao del Norte province.
The NEDA-approved bridge design will span the Agdao area of Davao City and Barangay Caliclic in Samal.
The coastal village of Caliclic hosts several resorts, including those that are among the pioneer developments in Samal.
One of the family landowners has written to DPWH, threatening to file a Writ of Kalikasan, a legal remedy under Philippine law that provides protection of the constitutional right to a healthy environment.
Samal Mayor Al David T. Uy, in response, has issued statements indicating that he is prepared to file counter charges of economic sabotage against those blocking the project.
Mr. Li said he is optimistic that a settlement will be reached by all parties.
“It’s a good project… a bridge obviously will be very convenient and conducive for the future progress and development of the island,” he said.
The project construction period is scheduled for 2021-2024. — Maya M. Padillo with Carmelito Q. Francisco
LGU revenue up 12% in 9 months to Sept., but below target
REVENUE generated by local government units (LGUs) rose 12% in the nine months to September, the Bureau of Local Government Finance (BLGF) reported.
Revenue generated from fees and taxes by all provinces, cities and municipalities rose 12% to P204.09 billion at the end of September, the Department of Finance (DoF) said in a statement Wednesday.
The DoF said LGU tax collections stood at P152.15 billion, up 12% year-on-year, which accounted for 28% of LGU revenue during the period.
Revenue generated from non-tax measures hit P51.94 billion, up 11% year-on-year and made up for nine percent of the LGUs’ total revenue source.
LGU revenue missed the P238.01-billion target, achieving only 84% of the goal for the period.
Of the total tax take, business tax accounted for 47.49% of the total or P95.11 billion, followed by real property tax (P57.03 billion), income from other fees and charges (P30.47 billion) and income from economic enterprises (P17.62 billion), according to the BLGF.
Separately, Finance Secretary Carlos G. Dominguez III approved the appointments of 186 local treasurers last year, representing 21.4% of the 868 vacancies, while the BLGF designated 1,506 others for different assignments.
This year, treasurers of cities, provinces and municipalities have been set a P307.08 billion collection target, up 19% from the 2019 target, “to drive LGUs to optimize their local taxing and revenue-raising powers.”
About 69% of the target is projected to be raised by cities, estimated at P213.71 billion, followed by P54.19 billion worth of collections by provinces and P39.21 billion by municipalities.
The BLGF exercises administrative and technical supervision over the treasury and assessment operations of LGUs. — Beatrice M. Laforga
UK to continue with GSP+ type arrangement with PHL after Brexit
THE Philippines will retain its preferential trade access after the UK’s exit from the European Union, British Ambassador to the Philippines Daniel Pruce said.
The Philippines currently enjoys duty-free entry of up to 6,274 products to the European Union (EU) under the Generalized Scheme of Preferences plus scheme (GSP+), which is set to expire at the end of 2023.
Mr. Pruce told reporters on Tuesday that the scheme will continue in the UK after it fully transitions from the EU.
“We have guaranteed that when we move out of the current relationship, so at the end of this year, we will maintain on a national level a mirror of the GSP+ scheme,” he said.
“There will be no change in terms of the tariff preferences that the Philippines enjoys in its relationship with the UK.”
The Philippines must comply with 27 international conventions on human and labor rights, environmental protection, and good governance under the EU scheme.
Mr. Pruce did not say whether or not the UK will continue this monitoring, but maintains that the preferences available under the scheme will continue.
“The UK remains a very active and engaged player in the international community and the principles that we stand up for, the values we hold dear, the conventions that we are committed to. Obviously, we will sustain our role in the world.”
He said the Philippines and the UK will have another dialogue on economic relations in April.
“We are masters of our own trade policy. We are no longer bound by the EU’s trade policy, so we have the opportunity to talk to all of our partners with whom we trade and collaborate around the world in terms of what the shape of what the future relationship will look like.”
The UK officially left the EU on Jan. 31, and the transition period continues until Dec. 31, 2020.
Philippine exports to the UK fell 7.9% to $492 million in 2019, accounting for 0.7% of total Philippine exports, according to the Philippine Statistics Authority.
Exports to the EU fell 7.8% to $8.22 billion in 2019, accounting for 11.68% of total Philippine exports. — Jenina P. Ibañez
PHL Feb. rice imports expected to decline to 2.5 million MT
PHILIPPINE RICE imports are expected to decline this month amid a slowdown in overseas purchases, the US Department of Agriculture (USDA) said.
In its Grain: World Markets and Trade report for February 2020, the USDA said that it expects the Philippines to import 2.5 million metric tons (MT) this month, down from 2.7 million MT in January, due to the continued “slowing pace” of Philippine overseas purchases.
Consumption and residual totals of purchased rice in February is projected at 14.4 million MT, little changed from January. Output of milled rice is also expected to remain unchanged at 12 million MT.
On Monday, the Philippine Statistics Authority (PSA) estimated the rice inventory at 2.675 million MT at the start of the year, up 4.9% year-on-year, largely due to increased holdings by the National Food Authority (NFA).
Rice stocks in NFA warehouses surged 436.1% to 524,940 MT.
The Rice Tariffication Law liberalized, rice imports, with the NFA stripped off of its importing function. The agency was given a mandate for focus on purchasing rice from domestic farmers on favorable terms. Its purchase price of P19 per kilo for palay, or unmilled rice, is significantly higher than prices offered by commercial traders, whose bargaining power has increased because they can opt to sell imported rice.
In a separate USDA report on World Agricultural Production, rice yields in the Philippines are also expected to remain flat at 4.05 MT per hectare. Area planted to rice is also expected to be stable at 4.7 million hectares.
The USDA noted that even with rice considered a staple in the Philippines, demand for wheat-based products is also growing in Southeast Asia region.
“The Philippines purchases nearly all of its wheat for food consumption from the United States as millers have a preference for the high quality that ensures consistency in final products. This has made the country the top importer of US wheat in the region (and second globally),” the report said.
The USDA projected the Philippines to import a total of 7.3 million MT of wheat this month.
Higher corn prices also drove farmers to use wheat in commercial feed production.
“Corn is the preferred feed ingredient with significant domestic production, making it ideal and cost-effective. However, in the last decade, plant disease, weather conditions, price, and policy issues have encouraged the industry to incorporate imported wheat as an important feed ingredient,” the USDA said in its report.
“This is particularly true for the Philippines where imports of feed wheat nearly tripled in the last decade as it is no longer just a feed substitute,” it added.
Philippine corn production is projected to be stable at 8.1 million MT in February. — Revin Mikhael D. Ochave with Marissa Mae M. Ramos
Recalibrating the Framework for LGU Joint Ventures
According to a 2017 report on Infrastructure Financing Strategies for Sustainable Development in the Philippines written for the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), one of the fast-emerging mechanisms utilized to implement infrastructure projects at the level of local government units (LGUs) is through joint ventures (JVs). Majority of LGU-level JV projects that have progressed to actual implementation have been initiated by the private sector in partnership with local government entities in the water sector, government offices, and given recent developments, in reclamation as well.
The 2013 JV Guidelines issued by the National Economic and Development Authority (NEDA) provide the applicable framework for implementing public-private JV projects at the national level. They define a JV as “an arrangement where a private sector entity and a government entity contribute money/capital, services, and/or assets, as well as share profits, risks, and losses, to undertake an investment activity that will facilitate private sector initiative in a particular industry or sector.” At the end of the JV, the activity may eventually be transferred either to the private sector under competitive market conditions or to the government.
Expediency and convenience seem to be the primary driving forces for adopting JVs as the preferred mode of implementing infrastructure projects through private participation at the LGU level. Since the 2013 NEDA JV Guidelines explicitly exclude LGUs, there is a lack of a mandatory framework for evaluating, approving, and tendering JV projects at the local level. Instead, LGUs are given free rein to craft the rules themselves. While this may result in the swift implementation of infrastructure projects, it might also be prone to undermine transparency and competition.
To bridge the gap, the Department of the Interior and Local Government (DILG) issued Memorandum Circular (MC) No. 2016-120 on Sept. 7, 2016, providing Guidelines for the Implementation of Public-Private Partnership for the People Initiative for Local Governments (LGU P4). The Circular encouraged LGUs to draft their respective “PPP for the People or P4 Codes” before undertaking Public-Private Partnership (PPP) projects and likewise provided a template P4 Code to guide them. Insofar as JVs are concerned, the template P4 Code provides the following key characteristics:
• Unlike in the 2013 NEDA JV Guidelines, ownership over the investment activity at the end of the JV may only be transferred to the private sector partner (PSP) under competitive market conditions — the LGU cannot take ownership.
• Apart from money, capital, services, personnel, and assets, the LGU may also extend goodwill, free carry, grant a franchise, concession, usufruct, right-of-way, equity, subsidy or guarantee, provide cost-sharing and credit enhancement mechanisms, exercise police power, grant tax incentives or tax holidays, perform devolved powers, expropriate and reclassify, and enact or integrate zoning ordinances.
• Subject to the terms of the competitive selection process and agreement of the parties, the LGU may be entitled to a greater share than its contribution or equity, among others.
On July 24, 2019, the PPP Center of the Philippines launched its Guidebook on Joint Venture for LGUs. In a sense, the Guidebook recalibrates some of the provisions in the template P4 Code. Specifically,
• The Guidebook openly recommends not adopting some of the restrictions inherent in the definition of JV provided by the template P4 Code – among which is the restriction in the transfer of the investment activity only to the PSP.
• It affirms the two types of JVs that may be established: Contractual and Corporate, which was not made clear in the Circular and its P4 Code.
• It suggests that the LGU’s contributions to the JV be limited only to its available resources, fiscal capacity, what laws and regulations allow, and specifically recommends that no credit guarantees be assumed by the LGU.
• Instead of following the tender process laid out in the P4 Code, the Guidebook recommends the procedures described in Annexes A and B of the 2013 NEDA JV Guidelines, while advising LGUs to tailor some of these procedures according to the proposed guiding principles for LGU-level PPPs (as indicated in Section 3 of the P4 Code).
• It adds an Alternative JV Process, where the LGU is only required to prepare a project concept note (instead of a full feasibility study) before proceeding to competitive tender.
These provisions were later adopted in a template LGU JV Code annexed in Joint Memorandum Circular (JMC) No. 2019-01 (Supplemental Guidelines for the Implementation of LGU P4) issued by the DILG and the PPP Center on Dec. 10, 2019. The JV Code likewise provides that the PSP is not allowed to recover its investment from payments made by the LGU over the lifetime of the JV contract.
The value of the Alternative JV Process cannot be stressed enough. Considering that LGUs have limited technical capabilities and financial resources, this alternative process will help facilitate the implementation of JV projects. Since the task of preparing the full feasibility study is shifted to interested PSPs, the LGU will only submit a concept note to serve as a guide to the PSP in further developing a project proposal.
The above measures, however helpful or relevant, are only recommendatory. Numerous LGUs have already adopted the P4 Code and are implementing JV projects accordingly. Only time will tell whether some would eventually adopt the proposed JV Code under the JMC or amend their existing PPP Codes to incorporate some of the JV Code’s provisions for their future projects.
In any case, whatever framework LGUs decide to utilize in the end, the focus should not stray away from what would serve the best interest of their constituents for whom these projects are implemented.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute for specific advice.
Jose Patrick S. Rosales is an Infrastructure & Tax Senior Manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.
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jose.patrick.s.rosales@pwc.com
King Ina, the docu
By Marian Pastor Roces
WHAT HAS not been said yet about the Lauren Greenfield documentary? Is there anything more to say? The Bloated One who allowed herself to be caught by Greenfield displaying the core of her psychosis — lust for return to power — took up valuable real estate in public discussion. In light of the coronavirus crisis and a still restive Taal Volcano, paying any more attention to Imelda Marcos and family is a matter of resource allocation.
It is our special misfortune that mental and emotional resources, stuff to be otherwise spent prudently, still have to be invested in a dogged Marcos watch. But, well, such is fate, and we can only be alert to moments that might channel ho-hum exasperation into rejuvenating wrath. The Kingmaker may be such a moment.
The documentary — whose title, colloquially, is King Ina, the stage-mothering of kingship — delivers more than a spectacle of greed. It offers more than a keyhole for voyeurs. In exposing the shape and major themes of Imelda’s madness, Greenfield quickens comprehension of the true size of this drawn-out national disaster. Filipino or otherwise, audiences arrive at (apologies to Joseph Conrad) the heart of darkness.
Imelda’s blathering is an endless reprise of three mantras. The ideas are wacko — Mother, Love, Beauty, capitals M, L, and B — and cohere in her mind as transcendent space beyond criticism. That space, she thinks, is above ground; and she, goddess, is suspended in mid-air as the very definition of benevolence. She thinks these words shield her from multiple perspectives.
There is little evidence that she is capable of recognizing evidence-based reality, let alone contrary opinion. Then again, Imelda did say, “Perception is real, truth is not.” Hence a clue: that however delusional she is, Imelda’s cunning is sharp and practiced.
Greenfield helps us detect the Imeldific combination of hard calculation and outlandish posturing. Imelda never stops performing. She means to return to goddess stature, flirting with world figures. To that end, she stages her widowed persona so outrageously, she conjures a strange aura of entitlement.
It is quite an act. Imelda is way better than any superb transvestite show in a bittersweet bar.
We — whoever we are who can still tell one thing from another — appreciate that Imelda can neither be dismissed as perverse entertainment nor spent force. The Imeldific as self-directed theater of excess is a figure to recognize precisely for what it is: a one-woman circus for rabble-rousing. The more immoderate, the better. The more glitzy and crass, the more effective.
The dramaturgy is built on sleights-of-hand. The non-stop intonation of Beauty contrives a hypnotic effect that turns the obviously ugly into simulacra of fabulous. Her paeans to Love manage to obscure otherwise clearly loveless plots, callous agenda, and outright cruelties. And the figure of the Mother which Imelda conjures has nothing to do with maternal nurturance, and everything to do with trying to foreclose — or indeed, kill — political growth.
The Beauty that Imelda venerates is, in truth, the Hideous. She was a patsy to shadowy dealers who preyed on crass dictators’ wives and other overnight billionaires. Portraits of herself and family in faux royal accoutrements, or as mythic beings with no feet on the ground, are the kitsch she consistently mistook for elegance. Her family’s enduring, world-class avarice for power and wealth represents, yes, culture. The culture of impunity.
More, and devastatingly for the Philippines: she supported a representation of the Filipino in romanticized art and performance, particularly in folk dance and painting. This pretend Philippines is institutionalized up to this day in the foreign affairs, the cultural industries, media, and education establishments. It blunted cutting-edge impulses in the art of the last 50 years. Too many Filipinos forgot subtle beauty, notably in instrumentation and speech.
The Love Imelda sings to is, to be sure, Betrayal. The documentary recalls the birth of the rapacious Imelda as literally em-bedded in the Dovie Beams sex record. Imelda’s life-long performance of love for her Ferdie masks her monstrous becoming as virtuoso in exacting vengeance and manipulating to return to top predator status. The performance of love, in place of love, is slimy cover for building family and community on patronage.
Presuming to embody this Love, Imelda usurps and mangles Christian and Islamic theologies to give some kind of strange logic to distributing money to street children and child cancer patients “to buy candy.” This love manipulates a witless son to go for the presidency via the vice-presidential race to a presidential candidate expected to either die or abdicate in his favor — and to set up the machinery for denial of the loss of substantial investment. The loss to Leni Robredo could not be comprehended by a Marcos camp that thinks money can buy everything if couched in the vocabulary of love.
And the Mother that Imelda contrives as avatar is, of course, Beast. The figure is revealed in the section of the documentary when Imelda recalls Ferdinand as the mother she found to fill the vacuum created by the early death of her own mother. This husband-as-mother deserves the attention of shrinks and comedians. He was her mother in political mentorship, of course a sort of nurturance. A mother, to her mind, is the teacher in survival; including outliving the deepest betrayal. Wrought, in her case, by this very “mother.”
Reproducing such motherhood, Imelda schleps inanities, figuring herself as mother of the Philippines and mother of the world. Ferdinand did indeed give birth to Imelda as monied, self-entitled, politically crafty, and wrapped in a femaleness that will make Game of Thrones women cringe. Ferdinand is the mother who erased Imelda’s actual mother, an impoverished second wife.
Ferdinand’s motherhood to Imelda constructed the falsehoods that Imelda lives out as reality. The Philippines that she (therefore he) desires back is a country long abused by this loving, beautifying, and mothering. The drama has to end. King Ina, begone.
Marian Pastor Roces is an independent curator and critic whose research interests include international art events, museums, identity politics, cities, and clothing. She is the founder and principal of TAO, Inc., a museum and exhibition development corporation. More of her critical texts can be found in Gathering: Political Writing on Art and Culture, the first collection of Roces’ essays co-published in 2019 by the Museum of Contemporary Art and Design and ArtAsiaPacific Foundation.
A new privileged class
Any idea or initiative, no matter how good or useful, can be prone to abuse. And this is on the part of either the people proposing or implementing the initiative, or the people that are intended to benefit from it. Worse, the negative consequences of such an initiative at times outweigh its benefits, or have unintended economic or social costs.
Let’s take the case of the Expanded Senior Citizens Act of 2010 (Republic Act 9994), which legally made senior citizens or Filipinos aged 60 and above exclusively “entitled” to certain “privileges.” These include a 20% discount on certain goods and services and VAT exemption. Among these goods and services are medicines and medical supplies and services; transportation fares; restaurant food and hotel accommodation; and funeral services.
Seniors also get free medical and dental services in government facilities; and “express lanes” and parking and seating privileges in government offices and commercial establishments. Many seniors also get retirement benefits from either the SSS or GSIS, and automatically receive PhilHealth coverage in accredited healthcare facilities.
In commercial establishments without “express lanes” for senior citizens, the law actually requires them to prioritize elderly clients. And thus, when in line, seniors get priority, always, even if this is to the inconvenience of the rest. If you are next in line, for instance, and then a dozen seniors suddenly all walk in, then find yourself going down to No. 13. This may seem unfair, but the law is the law. And commercial establishments are required to follow and obey the law, or risk penalties and fines.
I am actually looking forward to becoming a senior citizen in the Philippines, especially in the city where I live, Makati, since the city government offers additional perks and privileges to its senior citizens that other localities do not. A lunch buffet already reasonably priced at P400 cost only P320 for seniors. My only issue is the fact that the senior citizens act, while a laudable initiative, is also prone to abuse by seniors themselves.
The law has, in a way, created a new “privileged class” with a strong sense of entitlement. And sadly, it appears that some seniors fail to realize that there is a cost to all their benefits, and an economic cost borne also by their younger countrymen who tend to be disadvantaged by the privileges granted by law to their elders.
Even the pension system is skewed to have the younger generation — the working generation — fork out the insurance premiums needed to sustain the retirement benefits and state-administered health insurance privileges enjoyed by seniors. And while retirees can claim that they have likewise contributed to the pension system, the fact remains that by design, the retirement pool is generally sustained by present and continuing contributions.
A while back, I had two seniors at the table next to me at a fine dining restaurant at the Power Plant Mall at Rockwell. They ordered food, which was obviously for more than two people, and then opted to pay their bill even as they were still halfway through their meal. As they ended their meal, with plenty of leftovers on the table still, they called in about three people (non-seniors) waiting outside to join them.
At the time they paid for their meal, the full discount could have applied to the entire bill — 20% across the board since only two seniors (both entitled to discount) were dining at the time. Immaterial is the fact that the food ordered was obviously for more than two. And then, with the bill already paid, three other diners (non-seniors) joined in.
I make no judgments here, but it was obvious that the two seniors could easily afford a meal for five at full price. And yet, they seemed to have found a way to “game” the system, or to manipulate it to achieve a desired outcome. What they did was not illegal, but can we consider it an abuse of their privilege? Call them out on what they did, and I am certain they will argue that they did nothing wrong and that they were entitled to the privilege, anyway.
On another occasion, the basement parking at Waltermart on Chino Roces Avenue was full. All the senior parking slots were also taken. In drove a senior, who could not find a parking slot. He chose to double-park, or park where he shouldn’t, and then left his car. When the security guard went after him, he complained that there wasn’t enough parking for seniors, and that his legs already hurt. He refused to move his car. Again, what he did was not illegal, and under the law, he can insist on priority in parking space. But his act of double-parking, and then leaving his car, to the inconvenience of others, was it an abuse of the privilege?
What takes the cake, however, is an incident that I observed just the other day, also at Waltermart. At the second floor, just outside the supermarket, are tables and chairs primarily for the use of people to dine on after they buy food from the outlets. Day in, day out, however, seniors camp out in the area, practically the whole day. While this is not illegal, it is to the inconvenience of people who actually buy food but have nowhere to sit to eat.
The other day, two seniors or “regulars” were occupying a table for four. One of them stood up to buy something. A pregnant woman walked over to ask if the table could be shared so she could also sit. To my surprise, the elderly woman seated at the table, while on the phone, waived her off, claiming that the two seats in front of her were reserved as they were already occupied.
But, when her male companion returned, they both occupied only two of four seats, while another seat was occupied by the old woman’s bag. In fact, one more seat was actually available, and the pregnant woman could have used it, but she was waived off as obviously the old woman did not want to share “her” table. The pregnant woman, perhaps trying to avoid an argument, just walked away.
This, to me, is the height of insensitivity and inconsideration. And sadly, this is not an isolated incident. A woman, a senior with a walking disability, refusing to share an available seat with a younger but very pregnant woman just to keep the exclusivity of “her” table? While I felt sorry for the pregnant woman, I felt even more sorry for the senior woman for her lack of compassion.
The Senior Citizens Act is a laudable initiative, but it seems to have also created a monster. We now have a bunch of privileged old people who deem themselves above the rest, and at every opportunity, should always get priority and consideration. And while we complain about brats and the sense of entitlement of the young, we shouldn’t be too surprised given that even some of our elders also act the same way now.
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.
To love is to ‘co-create’
“Well, she looked at me/ And I, I could see/ That before too long/ I’d fall in love with her”
— I “Saw Her Standing There” by The Beatles
It is so romantic to think of love as capturing that lightning-in-a-bottle, falling-in-love-at-first-sight feeling. The Beatles sang about it perfectly: giggles, laughter, and hearts going “boom” during the honeymoon stages of a romantic relationship.
It seems that businesses and customers seek to fall in love at first sight, too. This is most evident during creation and enjoyment of new products: shiny packaging, fantastic promotions, mouth-watering introductory prices, and top-notch quality.
But before long, reality kicks in, and the illusion breaks. We realize that love at first sight is untenable. We are biased and prone to misperceptions. To add, putting their best foot forward all the time is just not viable for both parties. Romantic partners begin to see flaws, businesses use lower-quality ingredients to save costs, and customers begin to expect more but feel disappointed. How do we learn from this?
Enter the “theory of value co-creation.” Drawing from research of other experts on this theory, Galvagno and Dalli, in a 2014 literature review, summarize “co-creation” as a collaborative value creation process between businesses and customers. This perspective rethinks what it means to create value. Previously, value creation was simply a business producing goods, then making customers fall in love at first use. But after much examination and research on business-customer relationships, especially in a service setting, scholars and practitioners have realized that value creation is not the same as production of goods. Rather, customers participate in reimagining how products can be used in ways that businesses may not have intended. Sticky notes came from failed attempts to create new adhesives, but both 3M and its customers found value in using non-permanent adhesives in paper. Bubble wrap failed as a textured wallpaper, but it gained enduring success when it was reimagined as packaging material for fragile goods.
Guided by this theory, we can also deepen our understanding of what it means to love. It is not anymore about loving at first sight, but loving through a thousand fights. Similar to the classic examples cited, co-creation is a collaborative process that is inevitably filled with tension, disagreements, and initial failures. This is challenging, yet beautiful. Although the old paradigm of loving at first sight is great at crafting first impressions, it is prone to fail in managing expectations and relationships in the long term. On the other hand, value co-creation iterates toward more harmonious relationships.
Love, both in business and personal relationships, should then not be about controlling the other. No single party can dictate value; rather, both parties can only craft value propositions that are jointly experienced and improved, similar to the technology and social media platforms we enjoy in this sharing economy. This idea may be uncomfortable for some, but perhaps it brings us closer to understanding true love. To love is to co-create.
“The love you take is equal to the love you make.” — “The End” by The Beatles
Happy Valentine!
Patrick Adriel H. Aure is an Assistant Professor of the Management and Organization Department, Ramon V. Del Rosario College of Business. As head of the Social Enterprise Research Network of the Center for Business Research and Development (CBRD-SERN) and as co-chair for strategic directions of the Lasallian Social Enterprise for Economic Development (LSEED) committee at De La Salle University, he advocates social entrepreneurship.