THE Philippine Ports Authority (PPA) said net profit grew by about a third during the first half, driven by higher revenue from an increase in shipping and trade volume during the period.
In its half-year report sent to reporters Monday, the port regulator said net profit hit P5.818 billion in the six months to June, jumping 31.34% from a year earlier.
Total revenue was P8.996 billion, up 12.08% year-on-year due to the increase in volume of shipments and dollar denominated tariff rates.
Cargo volume increased 3.74% to 128.667 million metric tons (MT) at the end of June, featuring an 8.91% increase in foreign cargo to 78.946 million MT, which helped offset the 3.54% decline in domestic cargo to 49.721 million MT.
Container volume measured in twenty-foot equivalent units (TEUs) rose 5.74% to 3.840 million TEUs during the six-month period. Domestic containers accounted for 1.554 million TEUs, an increase of 5.08%, while foreign containers accounted for 2.286 million TEUs, up 6.20%.
The number of passengers rose 4.79% in the first half to 44.778 million, largely due to a surge of passengers during the dry season. The PPA said the growth of sea travel as a reliable mode of transportation also drove up volumes.
Ship calls at PPA-operated ports rose 4.06% to 246.586 million in the six-month period.
PPA said results also improved due to an 11.63% decline in costs to P3.179 billion, driven by lower expenses associated with personnel services, land improvement and depreciation and amortization of intangible assets.
The agency has a budget of P5.816 billion for domestically-funded projects this year, of which P645.85 million had been utilized in the first six months to complete 17 projects and kickstart 57 more. There are also 17 projects under procurement, 31 for approval and nine that have been suspended.
Another P700 million was allotted for dredging projects this year, of which PPA utilized P115.20 million in the first half; and P2 billion for repair and maintenance works, of which P547.88 million was disbursed. — Denise A. Valdez
THE Department of Trade and Industry (DTI) is reviewing applications to raise retail prices from the canned meat and sardine industry, Secretary Ramon M. Lopez told reporters Monday.
Mr. Lopez, who spoke on the sidelines of the DTI Innovation Conference, said the requests to be granted higher prices on price-controlled goods were received before the outbreak of African Swine Fever (ASF) and are based on claims of higher production costs.
He said any adjustment in the suggested retail price (SRP) will be about 2-5% and will not exceed 10%.
The government has been keen to contain food prices after the inflation crisis of 2018, with agencies like the DTI seeking commitments from the food industry to control or delay retail price hikes.
In June, Mr. Lopez said that DTI will block proposals to increase canned goods prices, after President Rodrigo R. Duterte liberalized imports of mechanically deboned meat (MDM), a key raw material.
He told reporters on Monday that beyond MDM, DTI is considering in its review higher prices for the canned meat industry’s other raw materials, including oil, tin cans as well as fuel costs.
Mr. Lopez had instructed DTI not to release any changes in the SRP just yet, pending a reduction in the items covered by the list.
“We are also trimming down the SRP. We are bringing it down to its normal list of 140 plus. We are now at 250 — we enhanced it last year because of the inflation issue,” he said.
“Without ASF we’re back to normal times. Our inflation is down to 1.7%. Assuming it settles at 2%, that would be normal, so there’s no need really to expand that list because we are simply going back to our normal list.” — Jenina P. Ibañez
THE Department of Agriculture (DA) said the hog cull following the outbreak of African Swine Fever (ASF) has totaled about 15,000 animals.
He also noted that a new outbreak was confirmed in a barangay in Antipolo, Rizal, which was reported two days ago.
“The total as of today (Monday) would now reach about 15,000 head,” Agriculture Secretary William D. Dar said at a news conference in Quezon City.
He said the culled pigs represent about 0.11% of the Philippines’ hog population of about 12.7 million head, which he said was a smaller proportion and also in absolute terms compared to the culls in ASF-affected neighbors like Vietnam and China.
According to the Food and Agriculture Organization, as of Sept. 20, China has culled about 1.17 million pigs, while Vietnam has culled more than 4.7 million.
“In this country because of the quarantine protocols that we have in place, we are able to contain (limit the culls to) this number and hope that everyone cooperates (to prevent a more rapid spread) of the disease,” he said.
The government has confirmed the disease in 12 barangays in the provinces of Rizal and Bulacan, including the Rizal capital of Antipolo, as well as Quezon City.
Mr. Dar said the culling of pigs within the one-kilometer radius follows proper protocols, which include collection of all hogs, killing them, and then burying or burning them; burning and burying them; and disinfecting the farms. — Vincent Mariel P. Galang
THE government’s economic team said it does not expect a major impact from the suspension of negotiations for pending aid grants from 18 countries that were critical of the Philippines’ handling of its drug war.
Finance Secretary Carlos G. Dominguez III said over the weekend that the suspension of loan and grant negotiations will “not have a significant impact on the country” as a majority of the grants are in the form of technical assistance and suggested that the government’s infrastructure program will remain the economy’s main driver.
“All proposed engagements with said countries… are technical assistance grants and hence will not significantly affect the infrastructure program of the government,” Mr. Dominguez told reporters in a phone message over the weekend.
In case of a funding gap, Mr. Dominguez said other sources can be tapped, like multilateral development banks. Bilateral partners have also “signified their intention to finance” projects.
“The rates offered by said countries (if ever) are no better than the rates already offered by multilateral development financial institutions and bilateral development partners,” he added.
Mr. Dominguez said current grants include $228.89 million from Austria, $4.71 million from Italy and $570,000 from Spain, which will not be affected.
The Office of the President issued a memorandum ordering the suspension of all talks for grant agreements from the 18 countries that supported a United Nations Human Rights Commission investigation into the Philippine drug war.
In an order dated Aug. 27 and signed by Executive Secretary Salvador Medialdea, President Rodrigo R. Duterte instructed government agencies and firms to halt negotiations on pending loans and grants from the 18 countries.
“All concerned officials are DIRECTED to suspend negotiations for and signing of loans and grant agreements with the governments of the countries that co-sponsored and/or voted in favor,” according to the document.
Meanwhile, Reuters reported that Economic Planning Secretary Ernesto M. Pernia believes the suspension will not affect infrastructure projects but confirmed that “some ODA” (Official Development Assistance) grants could be hit.
The 18 countries that supported the UNHRC investigation were Argentina, Australia, Austria, Bahamas, Bulgaria, Croatia, Czech Republic, Denmark, Fiji, Iceland, Italy, Mexico, Peru, Slovakia, Spain, Ukraine, the United Kingdom, and Uruguay. — Beatrice M. Laforga
THE Department of Agriculture (DA) said it has given P700.44 million worth of project assistance to farmers’ groups in the Cordillera Administrative Region (CAR).
“The project assistance covers various farm machinery including tractors, irrigation systems, and harvesters; farming technologies including greenhouses; and other farm inputs,” the DA said in a statement.
The assistance was given to 42 farmers’ associations and cooperatives.
Agriculture Secretary William D. Dar awarded these to the farmers during a forum on Sept. 20 in La Trinidad, Benguet.
According to government data, production of palay, or unmilled rice, in the region accounted for 2.1% or 391,105 metric tons (MT) of the 2018 palay production of the Philippines of 19.066 million MT.
Mr. Dar also announced the revival this month of the Marcos-era “Kadiwa” program, a project of the DA and the Department of the Interior and Local Government (DILG) and Food Terminal, Inc., which seeks to cut out middlemen from the supply chain of farm produce.
The intended market for such produce is low-income consumers.
“We want to link farmers to markets in Metro Manila so that we can give them better opportunities to produce and earn more,” Mr. Dar said in a statement.
Meanwhile, he also directed the Philippine Center for Postharvest Development and Mechanization (PhilMech) to ensure that equipment being distributed to farmers is up to standard, after complaints from a Cordillera farmer.
“I am now directing the regional directors and the Philippine Center for Postharvest Development and Mechanization (PhilMech) to see to it that the equipment, facilities, and machinery that we give as grants be of high quality,” he said. — Vincent Mariel P. Galang
House Bill No. 4157 or the Corporate Income Tax and Incentives Rationalization Act (CITIRA) is on its way to the Senate after being approved on third reading in the House of Representatives.
Of the changes introduced by this Bill — known also as Package 2 of the TRAIN Law — one that would be of interest to many taxpayers is the amendment on Optional Standard Deductions (OSD). The CITIRA Bill proposes to amend the OSD in two ways: (1) change the OSD base for individuals from gross revenue to gross income, and (2) limit the availability of OSD on corporations to those classified as Micro, Small, and Medium Enterprises, or MSMEs.
Currently, all taxpayers, whether individuals or corporations, subject to the regular income tax are allowed to avail of OSD. CITIRA, however, amends this. It retains the qualification of all individual taxpayers, but has provided additional requirements for corporations, i.e., corporate taxpayers must be classified as MSMEs, as determined by the Department of Trade and Industry (DTI).
On the other hand, the change in the base of the 40% OSD to gross income puts both individual and corporate taxpayers on the same footing.
How will these proposed changes affect us?
Under current tax law, OSD gives the taxpayer a choice of computing for tax-deductible expenses at 40% of gross sales or receipts, if the taxpayer is an individual, or on gross income, if a corporation. This is in lieu of itemizing expenses to be claimed as tax deductions.
A choice of OSD means less work since it does away with the listing of expenses and the determination of whether these expenses are allowed deductions of income. Each type of expense has its own elements to be allowed deductions in computing net income subject to tax. And because there is no need to list down the deductions made, the law does not require the attachment of audited financial statements to the income tax return in the case of individuals.
A choice of OSD also benefits the Bureau of Internal Revenue (BIR) in examining the books of taxpayers. Because there is no need to review the expenditures covered by the OSD, examiners can focus on the components of the gross revenue or gross income and determine its completeness and accuracy. In this way, the audit may be completed sooner, and examiners can also increase the number of taxpayers they can review.
Despite the benefits of using OSD, the number of taxpayers availing of the method is still low. Only 22% of individuals engaged in business chose OSD. A higher availment rate of 38% was recorded among taxpayers practicing a profession.
The OSD of 40% for individuals is currently being applied on gross sales or receipts to get the tax due. Based on Revenue Regulations (RR) No. 16-08, “gross sales” and “gross receipts” pertain to total sales or receipts earned by an entity in a taxable period without deducting the cost of the sales or services. To benefit from tax savings under the OSD, a taxpayer must have a profit margin of more than 60%. Hence, taxpayers with much smaller profit margins, usually those engaged in trading or manufacturing, will not choose OSD.
On the other hand, “gross income” is the net amount of gross sales or receipts after deducting sales returns, discounts, allowances, and cost of goods sold or services provided, where the cost of goods sold includes the purchase price or the cost to produce the merchandise, such as direct labor cost, and all expenses directly incurred in bringing the goods to their present location and the use of which could include import duties, freight, and insurance.
Gross income as the OSD base should be fairer and more favorable to individual taxpayers because they can deduct their cost of goods sold and cost of service. The OSD will just be in lieu of administrative and other non-operating expenses.
Will the numbers significantly change for corporations?
Based on the Magna Carta for MSMEs, MSMEs are primarily defined based on their total assets, inclusive of those arising from loans, but exclusive of the land on which the particular business entity’s office, plant, and equipment are situated. They must have value falling under the following categories: micro (not more than P3 million); small (P3,000,001 to P15 million); and medium (P15,000,001 to P100 million).
Based on the Philippine Statistics Authority (PSA), 924,724 business enterprises were operating in the Philippines in 2017, and of this, 99.56% are MSMEs.
Given these, the CITIRA Bill, in providing the option for the MSME sector to avail of the OSD, is upholding the objective of the government to promote, support, strengthen and encourage the growth and development of MSMEs by maintaining a conducive business environment in the form of a deduction option favorable to them in a given taxable year.
Meanwhile, based on the above definition, corporations having assets valued at more than P100 million will have no choice but to itemize their expenses claimed as deductions against income. These large enterprises comprise only 0.44% or just about 4,000 out of the total registered business enterprises.
In all cases, taxpayers must be cautious in exercising their right of choice because, with all the amendments introduced, Congress retains the provision that, once the choice has been made and was signified in the return, the choice is irrevocable for the taxable year for which the return was made.
Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.
Maria Cecilia Lourdes R. Pilotin is a tax associate of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.
In 1989, ex-President Ferdinand Marcos was dying. Exiled in Hawaii since February 1986, the Marcos family asked the Philippine government of President Corazon Aquino to let them to return to the country and allow Marcos to die here. Aquino refused, arguing that the return of the Marcoses would have dire consequences on political stability and economic recovery. Marcos took legal action and filed a special civil action suit for mandamus and prohibition with the Supreme Court. Made respondents were a number of senior officials of the Aquino administration led by then Department of Foreign Affairs Secretary Raul Manglapus. The writ of mandamus would order the respondents to issue the Marcoses the necessary travel documents to allow their return while the writ of prohibition would enjoin them from implementing the president’s ban.
On Sept. 15, 1989 the SC rendered its decision. In Marcos vs. Manglapus (G.R. No. 88211), by a slim majority of eight to seven, it, through Justice Irene Cortes as ponente, upheld the government ban on the return of the Marcos family. It ruled that the president has the power to impose such a ban and that she did not act arbitrarily or with grave abuse of discretion.
What power was the president exercising when she denied the right of the Marcos family to return to their country? In answering this question, Marcos vs. Manglapus clarified the nature and extent of the president’s executive power. The president, under the constitution, has specific powers; that is, powers explicitly granted to her by the constitution and enumerated therein. But “the powers of the president cannot be said to be limited only to the specific powers enumerated in the Constitution. In other words, executive power is more than the sum of specific powers so enumerated.”
The power involved was the president’s “residual unstated power” that is “implicit in and correlative to” the president’s constitutional duties to serve and protect the people, maintain peace and order, protect life, liberty and property, and promote the general welfare. This is a wide discretionary power that allows the president to fulfill her duties as “steward of the people” and “protector of the peace.” Aquino was exercising this power when she imposed the ban on the return of the Marcoses and clipped their right to return to their country.
The president’s residual unstated power is still subject to the constitution and to the judicial power to “determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government” (Article VIII, Section 1). In exercising its judicial review, the Court checks but does not supplant the executive. It merely ascertains whether the president has gone beyond the constitutional limits of her powers. It neither exercises the power vested in the president nor determines the wisdom of her acts. In Marcos vs. Manglapus, the Court resolved to determine whether Aquino’s claim that the return of the Marcoses would harm the national interest and the general welfare had factual basis. If such factual basis existed, the ban would be constitutional and there would be no grave abuse of discretion on Aquino’s part. The Court ruled affirmatively.
Students of constitutional law will note that the residual unstated power of the president, insofar as it is anchored upon and incidental to the promotion and protection of the general welfare (salus populi), is simply the police power of the state. The only significant difference is that whereas police power is traditionally vested in the legislature, Marcos vs. Manglapus underscored and highlighted that the executive too has inherent police power derived from and correlative to the constitutional duties and obligations of that office.
Since Marcos vs. Manglapus laid down the doctrine of the president’s residual unstated power three decades ago, no Philippine president has again used this power. To secure the legality and validity of their acts, presidents since Aquino have relied on the specific powers of their office; powers that have textually demonstrable basis and limits. President Fidel Ramos’s emergency power to solve the energy crisis was Congress-delegated (Article VI, Section 23(2)). President Joseph Estrada’s all-out war against the Moro Islamic Liberation Front (MILF) in 2000, President Gloria Macapagal-Arroyo’s “states of emergencies” in 2003, 2006, and 2008, and the incumbent’s perpetually extended martial law in Mindanao are all anchored on the specific power of the president as commander-in-chief (Article VII, Section 18). Even the incumbent’s three-year old “anti-drugs war” arguably rests on the presidency’s executive power (Article VII, Section 1) and duty to faithfully execute the laws (Article VII, Section 17). The laws in this instance being the Dangerous Drugs Act and related provisions of the Revised Penal Code. There is thus no need for President Rodrigo Duterte to invoke Marcos vs. Manglapus as legal ground for his forceful approach to eradicating the country’s narco-industry and he has happily not done so.
Reliance on the presidency’s specific powers is a fortunate development as these are checked and constrained by both Congress and the judiciary. The president’s residual unstated power, upon the other hand, is clipped more amorphously by a constitution that is still subject to judicial interpretation when the occasion is ripe for the Court to review the constitutionality of acts done on the basis of this power.
Millard Lim is a lecturer at the Department of Political Science of the Ateneo de Manila University.
The Bureau of Internal Revenue (BIR) recently celebrated its 115th Anniversary, and with it comes the time to recognize its performance. While the general perception of corruption remains, it is important not to forget the BIR’s active efforts. Praise what is right and criticize what is wrong.
Plenty of violators caught, higher revenues collected, and more taxpayers registered.
These achievements are displayed every year in the BIR’s annual reports, yet it never seems enough. Taxpayers remain burdened. If no longer by the tax rates, then by the complicated tax compliance. If not by the compliance, then by the corruption.
It is evident that more needs to be done.
But if year after year, the effort exerted produce the same results, then maybe the effort needs to be put in other aspects.
To truly reform the tax system, there needs to be a change in laws, how these laws are implemented, and in the mindset of the taxpayers.
ATTAINING COLLECTION TARGETS
In attaining its targets, the BIR has increased its collections year-on-year by 10.21%. For 2018, they collected P1.963 trillion out of their P2.044 trillion target.
Missing their targets does not mean that the BIR did not do their job well. In fact, the current BIR administration has exhibited the highest tax effort ratio increases within the past 10 years. Under Commissioner Caesar Dulay, the BIR has increased the tax effort ratio by 10.88% (in 2016), 11.27% (in 2017), and 11.26% (in 2018).
The TRAIN Law (Tax Reform for Acceleration and Inclusion) also fully took effect in 2018. With the main draw of the TRAIN Law being that the taxes would be lowered for the majority of the taxpayers, an increase in collections should be a welcome change. Of course, that does not mean the TRAIN Law directly contributed to the increase in collections either. Even before the law was passed, the BIR had already presented year-on-year increases in its collections.
But what it does mean is that lowering the burden on taxpayers does not equate to burdening the economy.
Similarly, the second package of the tax reforms will lower the tax rates for the corporations. But the issue most businesses have with that package is in a different matter entirely, specifically in the rationalization of incentives. Unfortunately, that does not change the fact that lowering the corporate income tax is much needed. The Philippines has the highest corporate income tax rate in the ASEAN region.
The 18th Congress has already re-filed the second package and was urged to view it as a priority bill.
For the BIR’s collections, the excise taxes have played some part as well. As of May 2018, the BIR has collected a total of P103.144 billion. By May 2019, they have collected P111.72 billion, an increase of P8.576 billion.
More recently, the increase on the excise tax of cigarettes was passed under Republic Act No. 11346. The newly passed law also imposed an excise tax on vapor products. To add to this, an increase in the excise tax of alcoholic beverages is also on the way.
These taxes are necessary to fund the government’s projects, specifically the Universal Healthcare program.
STREAMLINING PROCESSES
But aside from increasing taxes, there is also another way of increasing collections — broadening the number of taxpayers to collect from.
PHILIPPINE STAR/KRIZJOHN ROSALES
One of the BIR’s initiatives toward this is in improving the ease of paying taxes.
Already, the current BIR administration has implemented several policies that will improve the taxpayer’s experience. For one, the implementation of a single window policy when it comes to business registration has shortened the number of steps.
Just this year, the BIR passed Revenue Memorandum Circular No. 27-2019 which enhanced the BIR registration forms. Under the enhanced forms, the application for Authority to Print and the payment form have already been integrated. This effectively lowers the number of forms a taxpayer has to fill in.
In a similar vein, the TRAIN Law has shortened the number of pages for all income tax returns.
These initiatives also serve in improving the country’s ranking the Doing Business report. In recent years, the Philippines’ rank has consistently dropped. As of the World Bank’s Doing Business 2019 report, the Philippines was ranked 124th in the ease of doing business (EODB) and 94th in paying taxes.
To combat this, the government has established the Anti-Red Tape Authority (ARTA) which has recently begun its work on how to improve the EODB in various fields — including paying taxes.
INTENSIFYING TAX ENFORCEMENT
These efforts in improving the ease of paying taxes also seek to root out the violations caused by complicated regulations. Without these kinds of violators, the BIR can focus on the true “big fish” tax evaders.
In its current state, for instance, the same taxpayers are audited again and again. It does not matter whether the taxpayer has increased its compliance, or actually increased its tax payments. That is why it is important to revive a modified No Audit Program. Why should the BIR spend time auditing taxpayers whose tax compliance has already improved?
Even without that, the BIR is already catching a lot of errant taxpayers. From July 2018 to May 2019 alone, the BIR has filed 284 cases under the Run After Tax Evaders (RATE) program, with a total estimated tax liabilities amounting to P18.85 billion.
Under its Oplan Kandado, the BIR has shut down 510 non-compliant establishments and collected P1.005 billion from them. Lastly, under its Tax Compliance Verification Drive (more commonly known as Tax Mapping), the BIR has checked the compliance of 515,666 establishments and collected P528.31 million.
But the tax enforcement policy most businesses are concerned about is the BIR Audit. For most businesses, the BIR audit is an expected, yet dreaded fact.
Unfortunately, as earlier noted, even compliant taxpayers get audited. If the BIR sets a certain threshold for taxpayers to comply, then they could use that as a basis for whether a taxpayer should be audited or not.
There are only a few BIR examiners compared to the number of taxpayers in the country. It is unrealistic to expect them to be able to audit every single business. It is better if their efforts are redirected toward those who are considered high risk.
For now, such a policy does not yet exist (or has yet to be revived), so a taxpayer’s best defense remains to be proper tax compliance.
To improve tax compliance, taxpayers can implement a tax strategy for their business where they analyze leakages and avoid potential violations.
This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.
Raymond A. Abrea is a member of the MAP Tax Committee and one of the 2017 Outstanding Young Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO Young Leader of the Year, and Founding President of the Asian Consulting Group (ACG) and the Center for Strategic Reforms of the Philippines (CSR Philippines).
Today, Sept. 24, a new report — “The importance of IPR (Intellectual Property Rights) in progress: reform agenda for ASEAN countries” — will be launched at Holiday Inn Makati. It will be jointly sponsored by the Geneva Network (GN, UK) and Minimal Government Thinkers (MGT). The keynote speech will be given by Department of Trade and Industry (DTI) Secretary Ramon M. Lopez, and the discussion of the report will be given by Philip Stevens, Executive Director of GN and yours truly as head of MGT.
Reactors will be Josephine R. Santiago, Director General of the Intellectual Property Office of the Philippines (IPOPHL), Jesus B. Varela, Director for Intellectual Property of the Philippine Chamber of Commerce and Industry, and Kristine F. Alcantara, a Fellow of the Foundation for Economic Freedom (FEF). George Katigbak, also of FEF, will be the program MC.
The report is jointly published by GN plus five independent think tanks in the ASEAN: MGT (Philippines), the Institute for Democracy and Economic Affairs (Malaysia), Paramadina Public Policy Institute (Indonesia), the Siam Intelligence Unit (Thailand), and Vietnam Economic Policy Research Institute.
Our report noted among others, that ASEAN countries are well-placed to move up the value-chain and become more innovative, but they need to do more, to reform their IPR systems to high global standards.
According to international comparative indices on innovation, the IP framework in Malaysia, Indonesia, Vietnam, Thailand and the Philippines is still well below global standards.
Here are the global ranking and scores of selected countries on intellectual property (IP) indices from the Global IP Center’s (GIPC) IP Index (IPI) 2019 report, and the International Property Rights Index’s (IPRI) IPR component 2018 report. GIPC is a project of the US Chamber of Commerce while IPRI is a project of the Property Rights Alliance (PRA), both are based in Washington DC, USA.
Both domestic and foreign investors want stability and predictability in the protection of their private property and investments, both physical and intellectual. Strong IPR policies and enforcement will help them develop new goods and services, knowledge-based industries characterized by high initial investments (R&D, multiple clinical trials, etc.) but low marginal costs of production, then enter into cross-border business alliances and partnerships.
There is recognition in the Philippine government about this new reality, especially from the DTI and its attached agency IPOPHL — they exert extra efforts to remedy this deficiency and help attract more foreign direct investments and help start-up businesses.
But it seems the DTI and IPOPHL can only do so much. Other agencies in the government are less helpful, like law enforcers that seem to play along with large-scale counterfeiters of various consumer products.
In the health sector, life science patents are becoming more difficult to obtain and there are concerns that compulsory licensing (CL) of famous, patented drugs could become more widely used. CL is partly or largely driven by envy — some companies would not spend on very expensive and risky R&D (like patients under clinical trials may suffer serious side-effects) but when the new drug molecule is later proven to be safe and effective in killing or controlling certain diseases, the lobby to issue CL becomes louder. When CL becomes a norm, the likelihood that newly invented, more powerful medicines will be launched in the Philippines will grow thin, which will also undermine the availability of generic medicines of the same molecule someday.
To promote innovation in biologic medicines, agricultural chemicals and veterinary medicines, the key IP right is not patent but regulatory data protection. The most innovative countries in these sectors have legally binding rules to protect the data for several years: the US grants 12 years of protection, EU grants 10 years; Japan and Canada eight years. The Philippines currently allows very limited protection and should bring its rules in line with international best practice.
Copyright protection is particularly important, with the creative industries set to be major growth areas. Despite the prevalence of online copyright infringement, ASEAN countries tend to lack sufficient rules and capacity for online enforcement.
To protect trademarks vs. counterfeit goods, the police, customs agencies and the judiciary need more resources and technical capacity to enforce existing laws.
The Philippines has the potential to join the ranks of the world’s leading knowledge economies. A strengthening of IPR will be necessary to achieve this. In particular: Speed up the examination of patents; do not discriminate against specific technologies in the granting of patents; restrict the use of CL of patents to true emergencies; strengthen the enforcement of copyright, particularly online; enable courts and officials to act against goods that infringe trademarks including those in transit between countries; raise awareness of the importance of trade secret protection; and provide sufficient terms of regulatory data protection for medicines, veterinary medicines and agricultural biotechnology.
Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.
Who I am, what I’ve become and how I could yet be, can be traced back to my foundational years. I’m the product of my upbringing at home, formal education and self-education… to this day.
My parents were my constant spiritual engineers, backbone setters and attitude adjusters until they passed on to the next life. They instilled in me our family values — thoughtfulness, warm hospitality, selflessness, honesty, kindness, the golden rule, restraint, prudence and respect for authority. They brought me along to watch local military parades and listen to public speakers at the town plaza. Although I hardly knew my grandparents, I believe they handed down those traits and values to my parents, and in turn, to me.
My father was a steady example of innate goodness; he didn’t have a mean bone in his body. He was a congenial conversationalist and would have been a superb diplomat. Papa was always calm and composed even under stressful conditions; he epitomized inner peace. He was humble despite his self-confidence. He lived simply. He was an unobstrusive head of family, and an excellent provider. On the other hand, Mama was the house whip and put the fear of the Lord in my heart. Don’t get me wrong. She was loving, caring and thoughtful to a fault. But she was a firebrand mainly because of me. She was Papa’s enforcer while he was at work.
In my formative years, my folks used to buy me comic books — Popeye, Jughead, Superman, Batman and Robin, The Lone Ranger, Looney Tunes, Archie, Sgt Rock. As I moved up in grade school, they bought me Classics Illustrated — Moby Dick, The Hunchback of Notre Dame, The Three Musketeers, Daniel Boone, The Red Badge of Courage, Huckleberry Finn, Ivanhoe. As I transitioned to high school, I was hooked to reading. The first set of books I read voraciously was The Hardy Boys. Later, I learned how to borrow books from the library and was constantly on the lookout for stories about World War II on land, in the air, and at sea.
My parents also taught me to be selective about what I’d watch on the screen and boob tube. I watched with them comedies, musical specials, documentaries, newsreels, and dramas with life lessons. I enjoyed immensely I Love Lucy, The Millionaire, Bonanza, Little House on the Prairie, Combat. They were my default programs whenever I found myself alone, always scanning for good things to remember. I learned to discern, read between the lines, understand subtleties These were further reinforced in Literature class as I studied the Humanities. By the time I graduated from college, I felt I had the proper grounding.
That said, my earliest recollection was of Ms. Norma Regidor, a patient lady with a contagious cheerful disposition. The one who made the deepest impression in grade school was the incomparable Bro. Samuel Bueser, FSC, my Grade 7 guru in La Salle Bacolod. He taught us to excel as individuals and play team ball. He mentored us on what was right and wrong; opened our eyes to the world of politics with eyes on John F. Kennedy, America’s first elected Catholic president; and raised our awareness to the risks of nuclear war between the USA and the USSR. He went on to become an outstanding three-term mayor of Alaminos, Laguna.
In High School, I witnessed “tutok” (eyes on the ball) and “malasakit” (genuine interest and concern) in my teachers long before I came to know the terms. Mr. Claro Cabalquinto for Math and Science, Mr. Basilio Axinto for History, Mr. Bonaparte Palispis for Pilipino. Bro. Francis Tomulis taught that when times get tough, the tough get going. Bro. Andrew Gonzales taught the skills of speaking, acting and confident performance when thrust on stage without warning. Bro. Armand Garcia taught us innovation, self-reliance and mission-focus. Each one of them instilled in us discipline, service and patriotism for the common good.
In college I became responsible for my attendance and study regimen in the hope that application would become a force of habit later in life. The academic legends of my time were Dean Ariston Estrada, Dra. Emerita Quito, Dr. Bernardo Villegas, Prof. Robert Lane, Atty. Sixto Sandejas, Fr. Georges Piñon, Prof. Salvador Gonzales, Dr. Marcelino Foronda, Hermilando Mandanas, and Deogracias Vistan. The grind was tough but winners never quit as they would say. They encouraged travel as a vital part of continuing education. Learn new cultures, they advised, establish new friendships, enjoy the planet’s beauty, note humanity’s diversity and similarities.
The influence of the Jesuits played an important part in my personal growth and development. Their homilies are a cut above the rest; they’ve been my spiritual guides of choice; and some were good friends of the family. Unforgettable were Fr. Jim Donelan, Fr. Tom Steinbugler, Fr. Vic Helly, Fr. Bill Kreutz, Fr. Aureo Nepomuceno, Fr. Wally Campbell, Fr. Joe O’hare, and Fr. Earl Markey of the Society of Jesus. They reinforced the insight that a life of selfless service is the greatest motivator; that landscape reflects mindscape; that wisdom is the product of bad experience provided it’s learned well; that living, laughing and loving are the keys to building lasting relationships. In the end it’s only the memories that can be brought to the grave and left behind; and that’s how one will be remembered through time.
It’s almost half a century since I graduated in 1970, got married, and began working. Time has flown by so fast that sometimes I feel like asking it, “why the rush, where’s the fire?” After 50 years of accumulated knowledge I’ve learned to understand the saying that “the more you know, the more you don’t know.” Now, somewhere in between, I got to realize the purpose of my existence: To leave behind a world in better condition than the time of our birth. The best I can do now is to mentor the younger generations to continue the journey for a better Philippines, to never give up for the sake of the ones who will come after them.
Rafael M. Alunan III is a former Secretary of Interior and Local Government and chairs the Philippine Council for Foreign Relations.
NATIONAL Collegiate Athletic Association Season 95 hosts Arellano Chiefs shoot for back-to-back victories when they take on the Mapua Cardinals today at the FilOil Flying V Centre in San Juan City.
Set for 4 p.m., the Chiefs (3-9), currently at ninth place in the race, are out to make a last-ditch sprint to salvage their season by winning as many games as possible in their remaining elimination round assignments.
Arellano is coming off a victory over the Perpetual Help Altas, 91-86, on Sept. 19, stopping a three-game losing in the process.
Veteran guard Kent Salado stepped up big in the game, finishing with all-around numbers of 18 points, 12 assists, four steals, and three rebounds.
The Chiefs had a good start in said game but sputtered midway.
They, however, would regain their footing in the final canto to outlast the Altas and book the win.
Justin Arana backstopped the efforts of Salado with 17 points and seven rebounds while Dariel Bayla had 12 points and nine boards.
Rence Alcoriza and Archie Concepcion were the two other Chiefs in double-digit scoring with 12 and 11 points, respectively.
“This win is big for us as we get back on track after three straight losses. We need more wins to be able to catch up with the leading pack,” said Arellano coach Cholo Martin after their win.
Incidentally, the stellar play of Salado earned for him NCAA player of the week honors given by media covering the league.
Salado bested Noah Lugo of Mapua, James Canlas of San Beda, and Jaycee Marcelino of Lyceum for the award.
Meanwhile, out to send Chiefs crashing is Mapua (5-6), winners of their last two matches to stay within striking distance of the top four.
The Cardinals beat the Chiefs in their first-round encounter, 73-64, on Aug. 10.
The win marked a turnaround for Mapua in Season 95 as it started for it a run of three straight victories after opening its campaign with five losses in a row.
Laurenz Victoria exploded for 29 points in the win that saw them relying on a strong second-half effort to emerge victorious.
Paulo Hernandez poured in 11 of his total 14 points in the fourth quarter to provide a much-needed boost for the Cardinals.
The Cardinals, currently riding a two-game winning streaks, hope to double up on the Chiefs in today’s game to reach the .500 mark for the first time this season and continue their push for a Final Four spot.
Also playing today are the defending champions San Beda Red Lions (12-0) against rival San Sebastian Stags (7-4) at 12 noon and the Letran Knights (8-4) versus the skidding College of Saint Benilde Blazers (6-5) at 2:00 afternoon.
THE growing number of private sector supporters of the country’s hosting of the 30th Southeast Asian Games later this year has added a major player with Mastercard coming on board as a gold sponsor.
In signing ceremonies held at Samba at the Shangri-La at the Fort in Bonifacio Global City on Monday, officials of the Philippine Southeast Asian Games Organizing Committee (PHISGOC), led by Director of Support and Operations Jojit Alcazar, welcomed Mastercard as a valuable partner of the SEA Games, happening from Nov. 30 to Dec. 11, and the 10th Para Games next year.
Also present at the signing ceremonies were Mastercard Philippines Country Manager Rowell Del Fierro, and Mediapro Asia Managing Director Lars Heidenreich.
The sponsorship of the SEA Games and ASEAN Para Games, Mr. Del Fierro said, affirms Mastercard’s commitment to support the cash-lite agenda of the Central Bank as it has pledged to power the official mobile app of the regional multisport events.
The bespoke platform will be a one-stop source of information for spectators, athletes, and officials during the Games. It will include details on game schedules, score tallies and medal tables, and news related to the event.
Also, as a technology network powering smart and secure payments, Mastercard will also enable convenient and secure online and offline purchases like event tickets and food at the venues through a payment card stored in the mobile app.
Mastercard is not new to sponsoring major sporting events as most recently it was part of the Asian Games in Jakarta last year.
“As the appointed sponsorship agent for the SEA Games, we are excited to announce Mastercard as an exclusive category sponsor, joining other partners who are also leaders in their respective categories to support this Philippines milestone Games and most important sporting event across Southeast Asia in 2019,” Mr. Heidenreich, for his part, said.
For Mr. Alcazar, the involvement of Mastercard in the Games is a huge development since their group recognize the significant role that the private sector plays in the Philippines’ successful hosting duties.
“We are happy and proud to have a brand like Mastercard be part of the SEA Games family. They have a proven record in events like this and their expertise will enhance the Games experience further,” said Mr. Alcazar said.
The PHISGOC official went on to say that the Games are continuing to gain interest for sponsorships and they are set to sign more partnerships in the days to come.
The 2019 SEA Games is touted to be the biggest to be staged in the Philippines, involving 11,000 athletes and officials from the 11 member nations, 9,000 volunteers, 530 events and 56 sports.
Forty-four venues have been short-listed for the event scattered in different parts of the country, including the world-class facilities at New Clark City in Tarlac.
The last time the country hosted the SEA Games was in 2005.
