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BCDA woos German investors for New Clark City

THE Bases Conversion and Development Authority (BCDA) is wooing German companies to invest in New Clark City, citing the benefits and opportunities for locators.

During the 2019 Asia Pacific Forum held in Nuremberg, Germany, BCDA Vice-President for Investments Promotion and Marketing Joanna Eileen M. Capones positioned Clark as the first “smart, green and sustainable” city in the Philippines.

She noted that the 9,450-hectare New Clark City will only have 3,500 hectares of buildable areas, leaving 6,000 hectares for green and open spaces.

New Clark City’s Phase 1A, the National Government Administrative Center, is 90% complete after starting its construction more than a year ago. This houses the sports facilities, which will be used for the 30th Southeast Asian Games to be held in the Philippines in November, including a 20,000 stadium; 2,000-seater aquatics center; and an Athletes’ Village.

“Firms can explore opportunities in the mixed-use industrial park, on Information and Communications Technology (ICT), Integrated Transport System, Solid Waste Management System, Gas Distribution System, and the operations and maintenance of the New Clark City sports facilities,” Ms. Capones was quoted as saying in a statement.

Aside from its fiscal and non-fiscal incentives, Ms. Capones said Clark is an attractive location given its accessibility to transportation infrastructure projects of the government, which include the new terminal at the Clark International Airport, which will be operational by 2020; the Manila-Clark Railway; and a cargo railway connecting Subic and Clark, which will be both completed by 2022.

Citing data from the 2019 AHK World Business Outlook Survey, the BCDA noted that the Philippine is still an attractive location for German companies, with 70% of the respondents saying that their business in the country has improved than last year. — Vincent Mariel P. Galang

Got to get away

Midsommar
Directed by Ari Aster
Apollo 11
Directed by Todd Douglas Miller

MIDSOMMAR, Ari Aster’s follow up to his terrific (at least for the first three-fourths) Hereditary, improves on the earlier work this much: instead of situating his narrative in Utah he moves his story to an exotic faraway land (well, Sweden) where the notion of a possibly malevolent conspiracy can be more easily established. Yes, xenophobia, though arguably much of horror literature and film sprouts out of a fear of the Other.

Dani Ardor (Florence Pugh) is having a bad day, to put it mildly: her anthropologist boyfriend Christian (Jack Reynor) is thinking of leaving her but doesn’t have the courage to let her know; her bipolar sister is thinking suicidal/homicidal thoughts; Dani herself (if we are to believe her boyfriend and his friends) seems too wound up to enjoy much of life, clings to Christian too tightly to allow him to breathe much less enjoy his life.

Enter Christian’s classmate Pelle (Vilhem Blomgren) who proposes a trip to his home community in the province of Halsingland (Sweden) for the midsummer — a special celebration that happens only once every 90 years. Dani learns about the outing and wants to come along; Christian reluctantly (and to his friends’ dismay) agrees. Do we know where all this is going? You bet.

Arguably the film’s best scenes occur early on, when the American visitors are wide-eyed and slack-jawed, and the community at first blush seems like a wonderful place to live. Mr. Aster drops little details here there and leaves them uncommented, for us to either freak out quietly to ourselves or miss completely: the camera gliding over a series of runes and painted images (at one point we see the drawing of a woman mutilating her genitals — a reference to Ingmar Bergman’s Cries and Whispers?); a bear sits hunched in a wooden cage (you know that’s not going to end happy); allusions to events later in the film (Pelle explains that the stages of human life are like the seasons of the year, with winter ending at the age of 72. Dani asks: what happens at 72? Death). We’re understandably disturbed, but the sunlight is so relentlessly bright and the Swedish landscape so breathtakingly beautiful (actually the film was shot in Hungary) that we can’t quite find ourselves entirely convinced that we’re being threatened.

Or rather sunlight, landscape, and people are so unfailingly smilingly radiant we know where this is all going.

Pugh’s Dani starts out extreme — after film’s first 10 minutes her life has become so horrifying you wonder if anything worse can happen; Mr. Aster’s answer: “yes and no.” Dani is being less victimized than seduced — selected out of an elaborate (if unexplained) vetting process (though one wonders what would happen if she had lost the maypole dance contest — or was it rigged?). Arguably the story isn’t of a woman to whom “bad things have happened and worse is yet to come,” more like “bad things happen and you have nothing left to lose.” And that’s a trajectory for a character, of sorts. Mr. Aster claims he wrote this story while undergoing a breakup, and you can see where he tries to weigh things more fairly — Dani Ardor is a victim not just of circumstances but of her own intense feelings, while Christian (Allegorical name much?) is less than forthcoming with his own sentiments. But there’s this uneasy sense you have watching events unfold that Mr. Aster does blame the woman, or at least sets things up so when push comes to shove, the woman will be fully justified in doing the wrong thing. Christian — or Mr. Aster — ends up enjoying the fruits of masochistic martyrdom, with a bizarre sex scene (that may or may not be intentionally comical — at this point Mr. Aster seems to have lost control of his film’s tone) included, apparently for our gratuitous enjoyment.

Throw in long lingering shots of gore and mutilated flesh (at some point you find yourself noting how the prosthetics might have been developed). Throw in CGI effects, which at times are suitably eerie (especially when they waver in time to Dani’s breathing), at times seem like gilding a perfectly lovely lily. I did say Mr. Aster improves on Hereditary somewhat (though he hasn’t improved on that earlier film’s initial family dynamics), but has yet in my book to create a fully satisfying horror movie.

Critics have noted how much Mr. Aster has been influenced by Robin Hardy’s 1973 The Wicker Man, and while I’m reluctant to use one film to bash another (Oh, who am I kidding? Do it all the time) I do think it’s instructive to compare their dramatic strategies. Our attitude towards Dani and the community develops linearly: we feel sorry for her and sorrier thereafter; the community for its part starts out creepily happy and only gets creepier.

Anthony Shaffer’s script for the earlier film proposes a more complicated protagonist. Police Sergeant Neil Howie (Edward Woodward) is the authority figure that intrudes on the isolated Hebridean island of Summerisle. Howie is investigating a child’s disappearance; all well and good, all very official. Howie’s investigative approach however raises eyebrows: not only does he question the townspeople’s veracity he questions their hedonistic lifestyle. Sex in the open? Casual nudity? Instructing children in phallic symbols and nonchristian rituals? Howie comes off not just as a prude but an arrogant one, dismissing the people as “all raving mad,” and insisting on the existence of “the true God, whose glory, churches, and monasteries have been built on these islands for generations past.” Spoken to audiences in the early 1970s, when the popularity of alternative religions was on the rise, the words are a provocation, and so was the man; you instinctively felt for the islanders and against the unasked-for intruder.

In the end, Howie’s self-centered paranoia — that it’s all about him and his Christian faith — is proven right; that’s the film’s true dramatic arc, not the revelation that the cult harbors sinister intentions (this and Midsommar belong to that particular subgenre of horror after all). Mr. Shafferer — a skilled dramatist whose works include the classic theatrical mystery thriller Sleuth and screenplays for Murder on the Orient Express and (better yet) Hitchcock’s Frenzy — is better at distracting us from the narrative’s hidden intentions, and choosing the perfect moment to reveal. Mr. Aster shows talent for the odd unsettling shot (early on the camera flips over to depict Dani and her friends in a car creeping across the Swedish landscape overhead) but still needs to work more on his screenplays. Nice try, better luck on the next effort.

SHOOT THE MOON
For the 50th anniversary of the moon landing, there was a re-release of Todd Douglas Miller’s Apollo 11 documentary in several theaters (plus Amazon Prime, Hulu, YouTube, Google Play, and Vudu) that includes spectacular never-before-seen 65 mm color footage of the launch, recovery of the capsule, what happened after (mainly activities aboard the USS Hornet).

Mr. Miller tells the story direct cinema style: no narration or interviews staged for the film, only what’s available on archival footage — most notably Walter Cronkite’s voice acting as the nation’s official storyteller, explaining events onscreen.

Verbally flat but visually the film is a blast, especially early on. Where we’re familiar with the murky black-and-white video footage transmitted by broadcast news (back when there were only three channels in the USA), or the later released shots of space and the various vehicles and spacesuits, the 65 mm is a revelation. Arguably the best dramatically staged launch in a narrative feature is Philip Kaufman’s The Right Stuff, where Atlas rockets shuddered off their icy carapace and lifted themselves into the sky, to the strains of Gustav Holt’s The Planets; this footage if anything surpasses Kaufman, the image stretching across the theater wall, crystal clear and in brilliant color. The PA counts relentlessly down, the watching sundrenched audience is caught holding their collective breaths, the Saturn V — one of the most powerful rockets ever developed — vents a titanic roar as 7,600,000 pounds of force thrust against the launch pad, lifting 300 feet of metal into the air.

The rest of the film may feel anticlimactic as more familiar footage (some of it shot by the astronauts themselves, who have earned honorary membership in the American Society of Cinematographers, and reveal a startlingly deft eye for framing) takes over: 16 mm and still photographs of the second and third stages burning, sending the men into lunar trajectory. When Mr. Armstrong lands the lunar module on the planet’s surface Mr. Miller does resort to a device familiar to video game players and 24 viewers: a clock at one corner of the screen, indicating distance to the ground and remaining seconds of fuel. Even if we know the ultimate outcome (though it’s close) you might find yourself clutching your armrest once in a while for a bit of reassurance.

If you want to learn what the astronauts felt — though we do hear some of their words here — you might want to look elsewhere. Maybe not First Man; Damien Chazelle’s drama does make a dramatic attempt to crack open Neil Armstrong’s hermetically sealed persona, but doesn’t quite go far enough for me, or at least doesn’t quite succeed in evoking the man’s alienated nature (the most revealing sequence, a private moment on the moon, is alas a fictional, disappointingly sentimental conceit). I’m thinking more of For All Mankind (available on the Criterion Channel) journalist-filmmaker Al Reinert’s “documentary” of the Apollo program, really a collage of seven missions cut together into a single epic journey.

No, Mr. Armstrong doesn’t reveal much here either; you notice his absence in the list of narrators Mr. Reinert approached (neither is the loquacious Buzz Aldrin — which is odd, considering). But other astronauts do speak up, and their words reveal an eloquence and depth of feeling and occasional surrealism that adds to the imagery (Ken Mattingly, before the launch: “And here was a kind of strange quiet. You look out and you can see the large part of the state and ocean and this, this thing out here. You have a feeling that it’s alive.” John Swigert: “Everything that I know — my family and my possessions, my friends, my country. It’s all down there on that little thing.” Charles Duke, dreaming about driving the rover across the lunar surface: “…we found this vehicle. It looked just like the rover. The two people in it — they looked like me and John — had been there for thousands of years.”).

The collage effect — the fact that the missions use identical vehicles going through identical stages (three-stage ascent; travel interlude with command and lunar modules linking arms in a hundreds-of-thousands mile dance; lunar module’s descent and ascent; return and parachuted landing); the fact that suited up and helmeted the astronauts could be interchangeable, and even with helmets off one middle-aged clean-shaven Caucasian is difficult to distinguish from another (even their voices tend to run into each other) — actually comes to have a point. The Apollo program can be seen as a single mission — to develop the training, equipment, and techniques to reach the moon and explore its surface — and its people are really a single collective consciousness focused not just on achieving its scientific objectives but savoring the glories visible along the way, the meaning of the achievement. In effect we — all mankind — and not just a select few have touched the lunar surface, have realized how small we can be and how much we can do despite our relative stature in the universe.

To Mr. Miller’s credit he cites Mr. Reinert’s film as an inspiration. Mr. Miller’s own work is not nothing — for the 65 mm footage alone the film is more than worth the price of the ticket. By all means, see the 2019 documentary for the mindblowing imagery, then go watch the 1989 film to listen to their voices (and, Oh hell, why not look at Mr. Chazelle’s biopic while you’re at it) — the more Apollo in my book the better.

The CEO and the board

This writer has been privileged to have attended the full program of the Institute of Corporate Directors (ICD) and one of the key learnings from the program is the policy on board relationship with the CEO and the management team. It is a very critical policy statement that deserves universal understanding.

Let me start with a quote from the ICD material. “The CEO is the key, main link between the Board of Directors and the management team and — through the management team — all others in the corporation. The CEO plays a central intermediary role: as a member of the Board of Directors, the CEO is part of the governance team of the corporation. He or she is at the top of the management team, to which day-to-day operational responsibilities are delegated.”

“The CEO is a peer of all the other directors as individual members of the Board. However, before the Board as collegial body, the CEO representing the management team reports to the Board and is subject to its instructions. The CEO as the leader of the management team is the “only” subordinate that the Board, as a collegial body, gives instructions to. He or she is the main — generally the sole — channel that the Board uses to communicate with the management team in the governance of the corporation and in providing the overall direction for the affairs of the corporation.”

“The Board should observe restraint in going far into the smaller bowls (within the organization) much closer to the inner core. While it is duty bound to pronounce a policy at the broadest, outermost periphery concerning ends and means, it should take care to leave a wide enough area for discretion of the CEO and the management team.”

Under the Tricker Model advocated by the ICD, there is a clear identification of the duties that boards must focus on and it centers on the future and on the external environment. The model stresses the performance duties of the board to be principally on strategy and policy. Strategy focuses more on the future (particularly the long term) and it takes into account the external environment. Policy also focuses on the future, although it takes into account the internal circumstances of the corporation.

Of course the Board has compliance duties. Monitoring focuses on the present and the immediate past, taking into account mainly internal operations. Accountability asks for a system of checks and balances as well as of reporting, and this includes reporting to external parties such as other stakeholders, the regulators and the general public. Compliance duties are essential, but their focus is mainly to report on and draw from the past in order to serve the present and the immediate foreseeable future.

The relationship between the CEO and the board represents an important delineation which demands a clear sense of professionalism from all concerned. The board has to delegate operational responsibility to management. According to consciousgovernance.com, the board can direct but individual directors cannot. It should therefore refrain from interfering too closely into day-to-day operations. There must be a clear line between the board and management. It is important therefore that the board puts in place a competent management team.

In a recent article by Constance Dierickx at the Harvard Business Review, the role of a good board was articulated — provide strategic advice, protect the interest of shareholder and minimize risk. But sometimes, fueled by unease, wrong or lack of trust, board members reach beyond the CEO and far into a company for information or to influence. Dierickx said that in her 25 years of advising boards and top management, this type of meddling is not unusual. And it puts senior executives in a very difficult position. It is however not healthy as the board should provide oversight and strategic guidance without giving orders to executives.

The programs of good governance espoused by the Institute of Corporate Directors is a must for the strengthening of institutions in our country. It should be requisite for both board directors as well as senior management people so that their roles are well understood. The fundamental demands of good corporate governance is built around principles of fairness, transparency and accountability. These principles must be embodied in the long list of roles that a Board of Directors is expected to play.

The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.)

 

Benel D. Lagua is Executive Vice President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs.

Managing an excessive, toxic workload

We don’t have a strict management policy against absenteeism and tardiness. We use the biometric timekeeping device for security reasons and not for attendance record-keeping. We were told by management that we are responsible adult human beings and therefore should be treated as such. In fact, our work schedule incorporates flextime where everyone must be physically present during the core period from nine in the morning up to four in the afternoon and log in eight hours of work every day Monday to Friday. Despite this ideal set-up, many employees are stressed out due to heavy workloads and stiff deadlines that lead us, many times during the week, to bring our laptops home in order to work overtime. Is there a cure for us? — Bewildered.

A pastor was so proud of his new “loose-leaf” Bible and decided to use it as he began preaching a series from the Book of Genesis. On the second Sunday of his series, he was on the story of the fall of man and as he was reading his text he read: “And Adam said to Eve…” Then he turned the page to complete the verse but looked puzzled for a few seconds.

Finally realizing what had happened, he looked up rather embarrassed and said, “…it looks like a leaf is missing!”

Sometimes, no matter how you think your management has become lax in enforcing the attendance policy, it can knowingly or unknowingly remove a leaf by being strict in some other way. In fact, I know of some major organizations that even pay the highest pay and perks package in their industry but demand unreasonable performance standards and targets. It amounts to the same thing.

Organizations implement flextime policies and relax their attendance rules out of consideration for workers battling the hassles of their daily commute, but make up for it by overloading their people. It’s a simple case of whatever is given by the right hand is taken back by the left hand.

But, don’t despair. There are many ways to manage your situation, including the following:

One, offer a mutually-acceptable compromise with your boss. The next time he overloads you with Project ABC, inform him that you are working on Project XYZ that already has a stiff deadline. He may have forgotten about it. Therefore, it’s reasonable to remind him about it and ask the possibility of putting Project XYZ on the back burner to allow you to accept another project. Emphasize the fact that it is humanly impossible for you to do both simultaneously under the desired quality standard and timeline.

Two, challenge the rationale for why a certain project must be done. It’s a sensitive matter. Therefore, do it diplomatically the best as you can. Offer a counter-argument that invokes the greater interests of the organization. Learn when to say: “I’d like to accept such a task, but maybe there’s another way of completing that project. Allow me to think it over for one day and I will get back to you with another solution.”

Three, ask for assistance from other departments, if necessary. Someone said: “Be strong enough to stand alone. Smart enough to know when to seek help. And brave enough to ask for it.” Almost, always, it’s reasonable to ask for help from other people when circumstances warrant it. If you don’t ask, the answer will be always “no,” and you’ll regret it later when others are more than ready to assist you.

Four, apply the principles of Lean Management in everything you do. Be critical of unnecessary steps or non-value adding steps or documents that are repetitive and superfluous. For instance, in hiring people, don’t require job applicants to submit their birth certificate and passport, which contain the same information. Or avoid creating a situation that requires many signatories to a single document.

Last, have a clean and uncluttered work desk that gives you a clear mind. You can’t fool your boss or anyone that you are too busy with so many papers and documents on top of your desk. Don’t believe Albert Einstein when he said “If a cluttered desk is a sign of a cluttered mind, then what’s the meaning of an empty desk?” Obviously, he was joking. If not, admit the fact that you’re not Einstein.

Whatever happens, there are times that you will have to accept additional work, even though it is straining you hard. The best that you can do under the circumstances is to believe somehow that you’re being trusted and your boss remains confident in your ability to complete all the assigned tasks on time, at the best quality while using less resources.

ELBONOMICS: Being busy and being productive are two different things.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

How PSEi member stocks performed — July 25, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, July 25, 2019.

 

No investment impact expected from SoT bill

THE Department of Finance (DoF) said that the Security of Tenure (SoT) bill, which is awaiting the President’s signature and could lapse into law if not acted on over the weekend, is not expected to affect the investment climate.

Finance Secretary Carlos G. Dominguez III told reporters in a text message that he also supports the view of the National Economic and Development Authority (NEDA) that the measure should balance the interests of workers and the business community in order not to damage investment flows.

“We support [Secretary Ernesto M.] Pernia’s position and would like to add that the (SoT Bill) should not negatively affect the competitiveness of the Philippines as an investment destination,” Mr. Dominguez said.

Mr. Pernia said on Wednesday at a briefing that the SoT bill needed “tweaking” to be more balanced.

“You have to be sure that the law benefits not only workers but also investment… it has to be fair between workers and employers because if you want jobs to be available, you need investment,” he added.

On July 17, foreign business chambers and employer groups called on the President not to sign the SoT Bill, warning that it will weaken investment if businesses are not given the option of engaging contract labor.

The groups said that current laws already have provisions against labor-only contracting which are also reinforced through Department Order 178 series of 2017 issued by the Department of Labor and Employment (DoLE) and Executive Order 51 series of 2018.

Their statement provoked threats from unions that their campaign amounted to illegal lobbying.

Mr. Dominguez added that investment should be protected alongside the implementation of more worker protections.

“Be mindful that the Supreme Court on several occasions has ruled that while the PH Constitution provides that the State should protect the rights of workers and promote their welfare, such Constitutional policy is not intended to oppress or destroy capital and management,” he said. — Beatrice M. Laforga

SONA signals more gambling; possible end to casino license ban

THE Palace acknowledged Thursday that President Rodrigo R. Duterte appeared to be telling the gambling regulator to expand gaming operations in his address to Congress Monday, though detailed instructions have yet to be delivered to the various government departments.

In a briefing at the Palace Thursday, Spokesman Salvador S. Panelo was asked if the President plans to lift the moratorium on new casinos after announcing Monday in his fourth State of the Nation Address (SONA) that he wants the Philippine Amusement and Gaming Corp. (PAGCOR) to “push for more gambling” after the agency reported high revenues.

“That would be the logical consequence of what he said,” Mr. Panelo replied.

Asked in a chance interview if the matter will be tackled at the next Cabinet meeting, he said: “Wala pang (There is no) Cabinet meeting… I will let you know kung kasama sa (if it’s in the) agenda.”

Asked to comment, PAGCOR Chairperson and Chief Executive Officer Andrea D. Domingo told BusinessWorld via mobile phone: “I have not met with the President, and I do not interpret his statement to mean lifting of the ban — but I will try to verify with him the first chance I get.”

In the SONA, Mr. Duterte said: “As of July 9, 2019, we collected more than P61 billion from GOCCs or government corporations, 32% of which, or P16 billion, from PAGCOR. This is more than the P36 billion collected in 2017.”

He added: “My salute to Andrea Domingo. Magpasugal ka pa, ma’am, nang marami (Promote more gambling, ma’am).”

Malacañang officially announced in February last year that the President had ordered a moratorium on new casinos.

Mr. Panelo also said at the briefing on Thursday that the President hopes to increase online gambling operations and wants the Bureau of Customs (BoC) to improve its collections because the additional revenue will fund salary hikes for government employees, including teachers and nurses.

Gusto ni Presidente na dagdagan pa iyong online gambling, legal casino para marami tayong makuha… (The President wants more online gambling and legal casinos to increase our take.) He urged also the Bureau of Customs to improve on their collections,” Mr. Panelo said.

In the SONA, the President said of the BoC: “Though corruption-ridden, [it] managed to collect P585 billion in 2018. Imagine how much more could have been collected had the BoC been clean and less corrupt.” — Arjay L. Balinbin

PAGCOR H1 net falls on high year-earlier base

THE Philippine Amusement and Gaming Corp. (PAGCOR) said net profit fell sharply in the first half, with growth coming off a high year-earlier base after a 2018 property sale.

PAGCOR said it booked a P3.08 billion net profit in the first six months, down 91.4% from a year earlier.

PAGCOR’s total income net of gaming taxes and contributions fell to P18.89 billion from P50.04 billion a year earlier.

PAGCOR’s “other income” was P862.69 million, down 97.42%.

The company said year-earlier net profit was boosted by the sale of a 16-hectare site in Entertainment City for P37.3 billion to Bloomberry Resorts Corp.

“Because of the sale of the property and the increase in revenue in our license fees and casino operations, we are exceeding our target,” PAGCOR President and Chief Operating Officer Alfredo C. Lim told reporters in August 2018.

Bloomberry is the owner and operator of Solaire Resort & Casino in Parañaque.

Income from other related services declined 16.6% to P657.22 million.

Income from gaming operations was P36.57 billion, up 9.3% from a year earlier. — Karl Angelo N. Vidal

POGO workers’ rush to register for TIN overwhelms BIR facilities

THE Bureau of Internal Revenue (BIR) said it cannot handle the current level of bulk applications for Tax Identification Numbers (TINs), with many foreign workers rushing to apply after the government required them to obtain a tax registration prior to working in the Philippines for Philippine Offshore Gaming Operators (POGOs).

The BIR is capable of issuing TINs at a much slower rate because the system is not equipped to handle bulk transactions, Finance Undersecretary Antonette C. Tionko told reporters Tuesday night.

“There are also limitations on situations where sabay-sabay silang mag-apply (they all apply at the same time),” in which case speed is the issue, Ms. Tionko said.

She added that new applications take longer to process because they have to “carefully” enter “confusing” foreign names and other personal information such as date of birth and gender to ensure correct details.

The government requires foreign nationals and non-residents planning to work in the Philippines to obtain a TIN before securing a work permit.

“It’s not slow, it’s just that there is so much to process. They are also being careful because the names are confusing,” she said.

Finance Secretary Carlos G. Dominguez III said BIR offices are not yet ready for bulk transactions amid complaints from foreign workers trying to apply for TINs.

“They [are] complaining because our system is not set up to register 100,000 [applications] a week… Then all of a sudden you have 100,000 (complaints). It’s not our fault, you didn’t register. We can’t have a system that’s for registering a 100,000 a week,” he added.

“They do it all in one office. How can you possibly expect this office that is not set up to do it,” Mr. Dominguez said.

Mr. Dominguez did not give an estimate for the number of foreign POGO workers but said most of them are unregistered.

The DoF estimates that the government foregoes about P2 billion a month in withholding tax unremitted to the BIR for every 100,000 unregistered foreign workers. — Beatrice M. Laforga

Government pitches Japan regional business federation for investment

THE Department of Finance (DoF) said it held talks with Japan’s Kyushu Economic Federation (Kyukeiren) for possible investment in the Philippines.

In a recent meeting with Kyukeiren President Yutaka Aso, Finance Secretary Carlos G. Dominguez III said Kyukeiren members could potentially invest in the Philippine cement and steel industries.

“We like to invite Kyushu businessmen, under your leadership, to make some serious investments here,” Mr. Dominguez told Mr. Aso, according to a statement issued Thursday.

Mr. Aso was quoted as saying that President Rodrigo R. Duterte’s big infrastructure push is a “strong mission…” which is “very important.”

“I come here quite constantly, your economy, it is booming and flourishing. And very impressive, especially all the service industries, the standard of their quality is very high,” Mr. Aso said.

Kyukeiren has about 970 members in the third-largest and shouthernmost of Japan’s main islands. — Beatrice M. Laforga

Villar sees local resistance to land use measure

A NATIONAL land use measure is expected to face resistance from local governments because it seeks to take away local powers and give them to a central authority, Senator Cynthia A. Villar said.

“Land use is determined by the local government. Now, they want to centralize it. Who will remove it from the local government to centralize? You are inviting the ire of all the mayors in the Philippines. That’s their power,” she told reporters in a chance interview.

Mas marami nga silang hinihingi na ibalik sa local government (local officials want a lot more powers to be returned to them)… Now we’re going to centralize it? I don’t want to do that,” she added.

A national land use measure has been stuck in Congress for years, even after it was certified as urgent by former President Benigno S.C. Aquino III. President Rodrigo R. Duterte also brought up the issue of land use in his last three State of the Nation Addresses (SONAs).

In his most recent SONA on Monday, Mr. Duterte said that the law should be passed within the year.

The proposed National Land Use Act, or Senate Bill No. 1522, which dates from the Second Session of the 17th Congress, aims to “provide a policy for the rational, holistic, and just allocation, utilization, management and development of our land resources.”

It calls for a National Land Use Commission to create, update, and ensure the implementation of the National Framework Plan, which will be the basis for land use and physical development policy.

The House version, House Bill (HB) No. 5240, or the proposed National Land Use and Management Act of the Philippines, backs the creation of the National Land Use Policy Council (NLUPC). It will be responsible for the execution of the responsibilities under the act, and take on the function of the National Economic Development Authority National Land Use Committee (NB-NLUC), which will then be abolished.

Currently, land use is undertaken by local government units, who are authorized by Section 20 of Republic Act (RA) 7160, or the Local Government Code of 1991, and the Joint Memorandum Circular (JMC) No. 54-1995.

They give a city or municipality the power to reclassify agricultural land after determining that the land is not suited for agricultural purposes, or if it has more value as a residential, commercial, or industrial site.

Reclassification is limited to certain levels depending on the category of local government. Highly urbanized and independent component cities can reclassify about 15% of their land; component cities and first to third class municipalities 10%; and fourth to sixth-class municipalities 5%. — Vincent Mariel P. Galang

Marcos to focus on anti-poverty efforts as chair of Senate panel

THE Senate economic affairs committee will focus on poverty reduction measures, its chairman, Senator Imee R. Marcos, said.

Ms. Marcos said she is preparing bills that seek to address poverty and has sought preliminary briefings from concerned agencies.

Ang aking priority d’yan ’yung poverty reduction programs, whether land reform, whether PhilHealth and Universal Health coverage, whether 4P’s, sana tingnan natin ’yan (My priority is to address poverty via land reform, health, and cash transfers)“ Ms. Marcos said in a briefing.

“Actually, nagpapa-informal briefing na ako para mabilis. May resolution na ako for a review of all the poverty reduction programs. (I have sought informal briefings on the issues to hurry things along. I have filed a resolution calling for a review of all the poverty reduction programs).”

Ms. Marcos has filed Senate Resolution No. 6 calling for the review.

“The other issue that I’d like to work out d’yan sa economic affairs (in committee) is urbanization,” she added.

Separately, Ms. Marcos said she could call for a dialogue with the National Economic and Development Authority (NEDA) after its recent statements calling for “balance” in the Security of Tenure (SoT) Bill.

“Definitely, we have to take notice of what the NEDA is saying and perhaps the economic affairs committee could initiate a dialogue with NEDA,” she said.

Socioeconomic Planning Secretary Ernesto M. Pernia on Wednesday said the proposed SoT Bill, which is still awaiting President Rodrigo R. Duterte’s signature, needs tweaking.

The bill was transmitted to the Office of the President on June 27 and will lapse into law on July 27, if the President fails to act on the measure. — Charmaine A. Tadalan