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Before the Europeans came

By Jonathan Best

Book Review
Empire of the Winds: The Global Role
of Asia’s Great Archipelago
By Philip Bowring

LAST MARCH, the Philippine Map Collector’s Society (PHIMCOS) invited the distinguished journalist and editor Philip Bowring to give a talk to our group in Manila and launch his new book Empire of the Winds. Bowring is a professional journalist and former editor of the Far Eastern Economic Review and has been based in Asia for over 45 years. His book is not specifically about maps but he is an expert on historical maritime trade routes, seasonal winds, currents and the ancient sailing ships which navigated between the thousands of islands which make up Southeast Asia’s southern archipelago. These ships were built locally and were capable of sailing west as far as India and East Africa and north to Vietnam, the Philippines, Taiwan and China. The history of navigation and trade routes is of great interest to map collectors as it goes hand-in-hand with the early development of Asian maps, navigational guides and sea charts.

Bowring specifically concentrates on the islands which make up modern Indonesia and the surrounding coastal waters to the north and west along the Straits of Melaka and coastal Malaysia, Thailand, Vietnam, and the Philippines to the east. He refers to this area as Nusantaria, a distinct cultural region which developed its own maritime technology, trade routes and civilization considerably more than a thousand years before European powers overran the region in the early 16th century. The Europeans later referred to this archipelago and it adjacent trading ports as the East Indies or “Spice Islands” as they were the source of most of the priceless spices, medicinal plants and aromatic woods the Europeans coveted.

Although the Philippine archipelago was on the periphery of this region, it was an integral part of it and unquestionably heavily influenced by the ebb and flow of languages, religions, political systems, and cultural practices which were steadily evolving and changing throughout the region. Over the centuries some of these influences developed locally while others were brought in by foreign traders and missionaries gradually over time. It was not until the arrival of the Spanish colonizers with their missionaries that the Philippines was politically and culturally cut off from its Asian neighbors. Even this enforced isolation was not complete as the Sultanate of Sulu and the Badjao sea gypsies have continued to trade and interact with their Malayan neighbors up to the present day.

For this book Philip Bowring has methodically organized thousands of scholarly documents and historical anecdotes covering a vast stretch of time and an exceptionally complex geographical area. The great challenge involved in writing a history of this tropical region is that so little primary source material has survived the passage of time. Structures of wood, fabrics, and documents on parchment or paper rarely survived more than a few generations in the humid tropical climate or the periodic wars and piratical raiding which plagued the emerging city states. Only a few great stone monuments remain such as Angkor Wat, Borobudur, and Prambanan as landmarks of the major centers of civilization which once thrived around them with populations of hundreds of thousands and political influence extending throughout Southeast Asia. Little remains of Champa or the Cham civilization which for centuries dominated the coast of Southern Vietnam and was a major entrepôt for the Chinese coastal trade and had direct trade links with the Philippines through Borneo and the Sulu Sea more than a thousand years ago.

A few obscure mentions of the area start appearing in classical European histories after the turn of the first millennium such as in Pliny the Elder and Ptolemy in the first centuries of this era, but the citations are fragmentary and quite vague. Southeast Asian spices were being imported to Egypt and the Roman Empire through India and the Middle East at this time, while occasional Roman coins have been found in Southeast Asian excavations. Better documentation exists of the early contacts and influences coming from India and Sri Lanka in the first millennium. Local ships built in Nusantaria were large enough to travel west all the way to India and the coast of Africa and Indian traders brought in Hinduism, Buddhism, Indic scrip and their distinct class system governed by dynastic, indigenous Rajahs and their families. These influences mixed with the already well developed Austronesian local cultures.

Bowring has uncovered other important sources of historical information in the official Chinese histories of the Tang (7th century), Sung, and later dynasties when the Chinese became more active in the region. Buddhism was spreading rapidly through the archipelagoes and to trading ports along the Thai and Vietnamese coasts coming mainly from India and Sri Lanka. Chinese monks were actually coming south to study in Buddhist centers in Srivijaya. At the time, the Nusantarian ocean-going ships were larger than the those of the Chinese and could make a trip from Guangzhou in southern China to Sumatra in less than three weeks.

Over the last few years, marine archeology has also been a very important source of information for Southeast Asian historians as many wrecks of trading vessels have been found in Philippine waters and throughout East and Southeast Asia. These discoveries have shed light on the flourishing trade routes throughout the region. Ceramics, silk, and luxury goods from China were traded and exchanged as tribute for spices, medicinal plants, edible birds nests, gold, other metals such as tin and copper, and for tropical hardwoods such as mahogany. Slaves were also an important export commodity from Nusantaria, supplying laborers and servants both locally and to distant port. Undoubtedly Filipinos captives were transported to foreign lands, some many actually have prospered and returned to the Philippines. As Bowring points out, the slave trade in Asia was not as brutal as the race based system exploiting black Africans in Europe and the Americas. Ferdinand Magellan’s translator Enrique, whom he acquired in Malacca, may very well have been a Filipino.

Bowring writes extensively on the two great island empires that developed in Nusantaria, first on Sumatra and then on Java. Both were the result of consolidating and controlling the local trade routes. By the late 7th century, the Srivijaya Empire had its capital at Palembang on the Musi River in southern Sumatra and was able to control the trade moving through the strategic Straits of Melaka, the main passage for goods flowing back and forth from China and Southeast Asia to India and beyond. Some centuries later, the center of power moved southeast to Java near what is now modern Surabaya. The wealthy and cosmopolitan empire of Majapahit dominated Nusantaria during the 15th century with its control of maritime trade and a rich source of agricultural produce from the fertile central Javanese plains. Its tributary states reached all the way to north eastern Mindanao and the Sulu archipelago. The remnants of its Hindu culture can still be found on the island of Bali.

Philip Bowring does not end his history with the fall of the Majapahit Empire on Java in the 15th Century. He continues to record the fierce competition between the various Southeast Asian trading ports and the steady advance of foreign powers in the region. The introduction of Islam which came via India and traders from Arabic countries had a major influence. Although not as puritanical as the Wahhabi Islam of today, this new religion fundamentally changed the culture of the Nusantarian archipelago. Soon after Islam, the Europeans began to arrive no longer just as traders but also bent on political and military domination as well. By the 17th century, Nusantaria lost its political and cultural independence under this invasion. The central and northern Philippines was cut off from its southern neighbors and dominated by Western colonizers for over 400 years.

In order to cover as much disparate information as possible without overwhelming the reader, Bowring has arranged his book as a series of 27 short chapters. This makes it possible for him to focus on specific events or cultural phenomenon and then move on quickly to the next. If he had attempted to write a comprehensive history of Nusantaria and its neighbors linking all the narratives together, he would have had to fill five volumes at least.

Bowring touches briefly on a wide variety of subjects not just the history of maritime trade. The book is full of fascinating anecdotes and fragments of information regarding the indigenous cultures of the region and the foreign influences which swept through, changing, sometimes enriching, sometimes destroying everything from religious practices to indigenous architecture, cuisine, sexual mores, marriage, and social institutions. In many ways his book is a lively introduction to the history of the region, leaving the reader eager to read more and study what has been a seriously neglected chapter in world history.

For Filipino readers especially, Bowring’s book will be a valuable introduction to the long and complicated relationship the Philippines has had with its Asian neighbors, starting long before it was ostensibly “discovered” by the Spanish in 1521. It will be an excellent addition to college level history classes studying the historical role of the Philippines in Southeast Asia. The book is very well annotated and Bowring provides an index and lengthy, nine page bibliography of books and scholarly articles relating to regional history.

Empire of the Winds is published by I. B. Tauris & Co., London-New York 2019. It is fully illustrated with color and black-and-white photos plates, 16 maps, and 317 pages with extensive bibliography and notes. It can be ordered online through Amazon, Abe Books (https://www.abebooks.com/), or directly from the publisher (www.ibtauris.com).

PHL urged to use fintech to lower remittance costs

THE PHILIPPINES must take steps to make remittances more efficient, even as financial technology has improved in the country, money transfer solutions company Ripple said.

“It is not advanced. It doesn’t take advantage of the technologies,” Eric van Miltenburg, Senior Vice-President of Global Operations at Ripple, said in a phone interview.

Mr. Miltenburg noted the slow transfer time of remittances from one country to the Philippines and the costs related to these transactions.

“It’s taking several days, the costs are significant,” Mr. Miltenburg said, noting that remittances in the country would cost around 7% of every $200 sent. “That system is very broken. Leverage your technology and provide alternative technology, banks and non-banks.”

He however noted that the country is capable of making such improvements given the increasing number of financial institutions offering technology services for remittances, citing Cebuana Lhuillier as one of its partners here in the country.

He added that Ripple is also working with a local bank, but stopped short of disclosing details.

“We’re seeing a significant demand in ASEAN and the Philippines… Over time, we will see more,” he said.

Mr. Miltenburg said he appreciates the Bangko Sentral ng Pilipinas (BSP) for its ”progressive thinking” on fintech and hopes to engage more with regulators both in the Philippines and in different parts of the globe.

He noted that it is important that the government understands the importance of financial technology, especially as remittances provide a boost to household consumption, which is around 10% of the country’s gross domestic product (GDP).

“It is not the technology that is the challenge but how we use it. The Philippines is one of the countries where the regulators are fast-forward. We’re optimistic,” Mr. Miltenburg said, noting that financial technology in the country “is in the process of being upgraded.”

“The pace of growth in the Philippines will continue… We will double the size of our office and that’s reflective of the demand and activity in the region,” he said.

CRYPTOCURRENCY
Meanwhile, Mr. Miltenburg said there is a need to use blockchain technology, specially cryptocurrencies, to facilitate faster remittances between countries.

Currently, Ripple uses XRP, a type of cryptocurrency which the company claims to be cost-efficient for cross-border transactions.

Asked if the use of cryptocurrencies would not put overseas Filipino workers and their remittance recipients at risk of losing the money due to volatility, Mr. Miltenburg said there will be minimal risk since it only takes seconds to complete the transaction.

“Volatility exists across all the coins. The volatility is relatively modest. XRP to peso, the amount of exposure is seconds, very minimal. Much more volatility in PHP to USD in three days than XRP,” Mr. Miltenburg said.

“We’re quite bullish on how cryptocurrency can play a great role here,” he said. — Reicelene Joy N. Ignacio

How e-commerce sites manipulate you into buying things you may not want

By Jennifer Valentino-DeVries, New York Times

WHEN potential customers visit the online resale store ThredUp, messages on the screen regularly tell them just how much other users of the site are saving.

“Alexandra from Anaheim just saved $222 on her order” says one message next to an image of a bright, multicolored dress. It’s a common technique on shopping websites, intended to capitalize on people’s desire to fit in with others and to create a “fear of missing out.”

But “Alexandra from Anaheim” did not buy the dress. She does not exist. Instead, the website’s code pulled combinations from a preprogrammed list of names, locations and items and presented them as actual recent purchases.

The fake messages are an example of “dark patterns,” devious online techniques that manipulate users into doing things they might not otherwise choose to. They are the digital version of timeworn tactics used to influence consumer behavior, like impulse purchases placed near cash registers, or bait-and-switch ads for used cars.

Sometimes, the methods are clearly deceptive, as with ThredUp, but often they walk a fine line between manipulation and persuasion: Think of the brightly colored button that encourages you to agree to a service, while the link to opt out is hidden in a drop-down menu.

Web designers and consumers have been highlighting examples of dark patterns online since Harry Brignull, a user-experience consultant in Britain, coined the term in 2010. But interest in the tools of online influence has intensified in the past year, amid a series of high-profile revelations about Silicon Valley companies’ handling of people’s private information. An important element of that discussion is the notion of consent: what users are agreeing to do and share online, and how far businesses can go in leading them to make decisions.

The prevalence of dark patterns across the web is unknown, but in a study released this week, researchers from Princeton University have started to quantify the phenomenon, focusing first on retail companies. The study is the first to systematically examine a large number of sites. The researchers developed software that automatically scanned more than 10,000 sites and found that more than 1,200 of them used techniques that the authors identified as dark patterns, including ThredUp’s fake notifications.

The report coincides with discussions among lawmakers about regulating technology companies, including through a bill proposed in April by Senators Deb Fischer, Republican of Nebraska, and Mark Warner, Democrat of Virginia, that is meant to limit the use of dark patterns by making some of the techniques illegal and giving the Federal Trade Commission more authority to police the practice.

“We are focused in on a problem that I think everyone recognizes,” said Ms. Fischer, adding that she became interested in the problem after becoming annoyed in her personal experience with the techniques.

The legislation faces uncertain prospects, in part because of language defining dark patterns and the companies that would be subject to the new law that is ambiguous, said Woodrow Hartzog, a law and computer science professor at Northeastern University. Still, he added, it is an important first step for policy makers in discussing dark patterns.

“The important question as a policy matter is what separates a dark pattern from good old-fashioned advertising,” he said. “It’s a notoriously difficult line to find — what’s permissible persuasion vs wrongful manipulation.”

The Princeton study identified dark-pattern techniques across the web by automatically scanning the sites’ text and code.

On ThredUp, for example, the researchers saw the website create the messages in April using code that arbitrarily selected combinations from a list of 100 names, 59 locations and 82 items. The New York Times replicated the results. On one day this month, the code led to messages in which “Abigail from Albuquerque” appeared to buy more than two dozen items, including dresses in sizes 2, 4, 6 and 8. On other occasions, it yielded messages showing different people “just” buying the same secondhand item days or months apart.

When asked about the notices, a ThredUp spokeswoman said in an e-mailed statement that the company used “real data” and that it included the fake names and locations “to be sensitive to privacy.” When asked whether the messages represented actual recent purchases, the company did not respond.

The number of sites the researchers found using dark patterns underestimates the techniques’ overall prevalence online, said Arunesh Mathur, a Princeton doctoral student and an author of the paper. The researchers’ software focused on text, and it scanned only retail stores’ pages and not travel booking sites, social media services or other areas where such tactics might be used. The study, he added, was also confined to patterns used to influence purchasing behavior, not data-sharing or other activities.

More than 160 retail sites used a tactic called “confirmshaming” that requires users to click a button that says something like “No thanks! I’d rather join the ‘Pay Full Price for Things’ club” if they want to avoid signing up or buying something.

More than two dozen sites used confusing messages when encouraging users to sign up for e-mails and other services. On a New Balance athletic apparel site, for instance, the first part of one message suggested that a user could check a box to receive e-mails, but on closer reading, the opposite was true. “We’d love to send you e-mails with offers and new products,” it said, “but if you do not wish to receive these updates, please tick this box.”

New Balance believes the opt-out is “legally compliant and we believe clear to consumers,” Damien Leigh, senior vice-president of global direct-to-consumer sales for the company, said in a statement. But he added that the company “is always looking for ways to be as transparent as possible with consumers and will evaluate the study’s insight when it is released.”

About 30 sites made it easy to sign up for services but particularly hard to cancel, requiring phone calls or other procedures. The Times requires people to talk with a representative online or by phone to cancel subscriptions, but the researchers did not study it or other publishing sites.

Most sites identified by the researchers used messages that indicated that products were popular, that there were few items in stock or that products would only be available for a limited time. Some were demonstrably false, while others were unclear.

There is disagreement about whether messages about things like high demand constitute a dark pattern if they are truthful. But even those based on actual site activity are an attempt to play on consumers’ known weaknesses, said Arvind Narayanan, a Princeton computer science professor and an author of the paper.

“We are not claiming that everything we categorize in the paper should be of interest to government regulators,” he said. “But there should at least be more transparency about them so that online shoppers can be more aware of how their behavior is being nudged.”

How PSEi member stocks performed — June 25, 2019

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

 

Economic zone proclamations hit snag for IT industry — PEZA

THE Philippine Economic Zone Authority (PEZA) and the business process outsourcing (BPO) industry said they will seek more time to meet the requirements of the Office of the President (OP) to obtain an official proclamation for economic zones.

PEZA said it will lobby for more time than the 30 days currently provided for Metro Manila economic zone applications.

PEZA Director-General Charito B. Plaza said the applications affected by the current processing period are 153 information technology (IT) centers and 10 IT parks. PEZA approvals for Metro Manila only cover IT enterprises.

Of these, 22 have been endorsed to President Rodrigo R. Duterte and 131 approved by the PEZA board but not elevated to the OP.

Administrative Order No. 18, which took effect in June and set a deadline for the processing of applications for the establishment of economic zones in the National Capital Region, did not provide guidelines for how the applications are to move forward.

PEZA’s Policy and Planning Deputy Director-General Tereso O. Panga said the agency is initially seeking for a “minimum of six months” to allow these firms to seek endorsement to the OP which has the final say on granting enterprises special economic zone status.

“The intention of the DG and the PEZA management is to write the Office of the President to allow for a longer transition period because it will be unfair… because they just got (the order) quite recently, and their projects were already approved, and will not be given a chance to vie for presidential proclamation,” Mr. Panga said in a briefing Tuesday at PEZA headquarters in Taguig City.

PEZA said companies need to comply with the new documentary requirements set by the OP for the PEZA endorsement process.

The additional documentary requirements, such as land titles, have “no bearing at all” as PEZA grants incentives on the basis of the physical infrastructure or facility that will be involved in the enterprise activity.

“Lot segregation is so difficult to comply so it’s a new requirement because the intention is they want the lot where the building is located somehow proportionate to the footprint of the building… That has no bearing at all but that was the requirement so all the developers are now compelled to comply,” he added.

Applicants that fail to submit all requirements to beat the July 22 deadline will not be rejected but “will be shelved temporarily,” according to Ms. Plaza.

The new process has led some locators to transfer to other countries while others have moved projects to other provinces like Palawan, which offers fiscal incentive packages to investors, Ms. Plaza added.

PEZA will also look into the readiness of rural areas to host IT parks and centers considering the infrastructure demands of these enterprises.

“While it is good to expand IT industries in the countryside, we still lack the IT infrastructure. So this should be considered by the President,” Ms. Plaza added.

Ms. Plaza said PEZA will look into the possible implications of the AO, specifically whether it will affect countryside investment.

“Does this AO 18 mean we will continue with our present incentives because how can we attract investors to the countryside?” Ms. Plaza added.

PEZA will draft its letter to the OP together with the Information Technology and Business Process Association of the Philippines (IBPAP).

“There’s going to be a near-term detrimental impact in our assessment, “ IBPAP President and CEO Rey C. Untal told reporters yesterday in Taguig City before meeting the PEZA officials.

“A lot of the growth is poised to happen in Metro Manila this year. There are potentially new locators, so the question is whether the previous availability of PEZA zones in Metro Manila are going to be sufficient in comparison to the demand picture that we are seeing,” Mr. Untal said.

Ms. Plaza has said the NCR has sufficient space to meet demand for new IT parks and centers.

However, Mr. Untal believes “a significant number of application for PEZA has pushed the availability to a reasonably low number.”

Mr. Untal added that although IBPAP is” very supportive of going to the countryside,” Metro Manila remains an important take-off point for IT-BPOs.

“There’s this concept of the hub and spoke model. For us to enable spokes, which is the countryside, to be effective and strong, we need to retain a very strong hub, which is the Metro Manila cities,” Mr. Untal said.

“As we continue to grow in Metro Manila, it becomes easier to expand in the countryside,” he added.

Mr. Untal said IBPAP projects the industry’s take-up of office spaces in Metro Manila to reach 400,000 to 450,000 square meters this year.

In 2018, the industry saw 420,000 sqm. new spaces. The IT-BPO industry accounts for 30% to 35% of the total office space take-up in the metropolis.

In the four months to April, IT-related investment pledges at PEZA declined 7.08% year on year to P4.632 billion.

In the first quarter, exports from the sector grew 6.75% to $3.071 billion while employment rose 10.68% to 741,905 persons.

Of the 395 operating economic zones registered with PEZA nationwide, 70.13% or 277 are IT parks and centers.

Including those proclaimed but not yet occupied by locators, IT economic zones number 381 nationwide, of which 56.17% or 214 are in Metro Manila. — Janina C. Lim

Palace studying return of water services to government control

MALACAÑANG said it is considering the possibility of taking water services for Metro Manila back under government control.

In a briefing Tuesday, the President’s Spokesperson Salvador S. Panelo said that the government is studying its options on control of water services.

Mr. Panelo was asked to comment on Bayan Muna Chairperson Neri J. Colmenares’s statement on Monday that the handling of water services in Metro Manila, which is currently handled by concession holders Maynilad Water Services Inc. and Manila Water Co. Inc., should be returned to the government following the failure of both companies to address the water crisis.

Mr. Panelo said, “Pinag-aaralan lahat ng makakabuti sa mga kababayan natin. Lahat iyan ay kasama sa pag-aaral (We are studying what would be best for everyone. We are considering all options.)”

Pinag-aaralan lahat ng mga pupuwedeng gawin (Everything that can be done is under study) to solve the problem,” he added.

The Metro Manila Disaster Risk Reduction and Management Council (MMDRRMC), various government agencies, and water concessionaires met recently to tackle possible contingency measures to address the worsening water shortage in Metro Manila and other areas.

Metropolitan Manila Development Authority and concurrent MMDRRMC chairman Danilo D. Lim has said that trucks of Maynilad and Manila Water are still exempt from the number coding scheme in order to facilitate the delivery of water supplies to areas that may be affected.

The House Committee on Metro Manila Development recommended in a committee report it submitted on June 3 that both the administrative and regulatory offices of the MWSS revisit the concession agreements with Maynilad and Manila Water and introduce amendments as necessary, “particularly on the sanctions that can be imposed upon the concessionaires when they fail to sufficiently supply water or fail to comply with the terms of the Concession Agreement.”

Another recommendation by the Committee is for the government to “break the duopoly in water supply service in Metro Manila and welcome more players to increase competition in the water supply industry which shall thus encourage better and more transparent services.” — Arjay L. Balinbin

DICT hopes to complete ‘dark fiber’ linkup by early next year

THE Department of Information and Communications Technology (DICT) is expecting to finish by early 2020 the first phase of the backbone facility for the National Broadband Plan, and around the same time see the completion of a feasibility study that will determine the next phases of the project.

In a briefing Tuesday, DICT Undersecretary Denis F. Villorente said the process of tapping the dark fiber assets from the National Transmission Corp. (TransCo) and National Grid Corp. of the Philippines (NGCP) will continue this year, making up Phase 1 of the project.

“We have a budget of P1 billion this year, which the Congress provided so we can initially light up some part of that fiber that’s owned by TransCo, managed by NGCP… If the timeline is followed, that should happen by first or second quarter next year, Phase 1,” he said.

The pilot testing of the fiber backbone facility was started in late 2018 — in preparation for the firing up of portions of the 6,154-kilometer dark fiber network this year.

For Phase 2 and 3 of the project, which cover linking all provinces across the country to the backbone through submarine cable, a feasibility study is still in the works.

“We have a detailed engineering study that is being funded by the US government through their trade and development agency over a six-month period. That will provide the details for up to Phase 2 and 3 of the backbone,” he said, noting he expects it to finish by the first quarter of next year.

Part of the feasibility study is identifying which areas in the Philippines are “undeserved and unserved,” or the jurisdictions that telecommunications operators Globe Telecom, Inc. and PLDT, Inc. are unable to reach with their networks.

“The feasibility study is toward creating a project pipeline so we can understand what the government may want to invest on to improve broadband services available to citizens in all these jurisdictions. These are not highly urbanized cities but they will be connected to secondary cities,” Mr. Villorente said.

The DICT undersecretary said that the backbone work itself would cost around P10 billion, but the department hopes to partner with providers that may want to invest in the country to help in the National Broadband Plan.

He cited the DICT partnership with a subsidiary of Singapore-based HyalRoute Group in May, which will allow it to provide a fiber network across the country which it may lease to telcos.

“(The implementation of the project) is really dependent on budget availability, or partnership with third parties who may be interested in doing it by using their own capital,” Mr. Villorente said.

“If it will be funded by government, it’s a budget issue. If we can find a partner willing to invest to do it, (it could be handled differently),” he added. — Denise A. Valdez

Regulator considering tapping water supply of provinces near NCR

THE Local Water Utilities Administration (LWUA) said it may tap the water supply of nearby provinces to augment Metro Manila’s dwindling allocation.

LWUA acting administrator Jeci A. Lapus also proposed that water concessionaires Maynilad Wter Services Inc. and Manila Water Co, Inc. should also help transport the water from provinces near the National Capital Region (NCR).

“The measure could be taken to touch base with the local water districts surrounding Metro Manila to assist in the needs of the city. Pero ang (But) Metro Manila (has) two million households, (while) Laguna, Cavite, and Bulacan (have only about 950,000 households). Kung hihingi tayo dun (If we ask for their water), it won’t even cover half or a third of the needs of the city,” Mr. Lapus said during a House of Representatives hearing on the water crisis.

Water elevation at Angat Dam last dropped below the critical level of 160 meters on July 13, 2010 when it registered a low of 157.57 meters, during an El Niño dry spell.

Manila Water president and CEO Ferdinand M. dela Cruz and Maynilad counterpart Ramoncito S. Fernandez welcomed the proposal to source water from nearby provinces.

“Manila Water welcomes any additional supply to support the supply deficit of Angat Dam… and to find a way to transport the water,” said Mr. dela Cruz during the House inquiry.

Separately, the House committees on Metro Manila Development and Public Works and Highways adopted Speaker Gloria Macapagal-Arroyo’s House Bill 8068, which seeks the creation of the Department of Water.

Mr. Lapus cited the need for one body to addressing and manage water crises.

“There should be a body na magi-isip para sa lahat (that will think for everyone)…What we want is an integration of all water agencies into one, as what was sponsored by the Speaker, the House Bill 8068, the creation of the Department of Water,” he said.

Bulacan 1st district Rep. Jose Antonio R. Sy-Alvarado, who presided over the hearing, said the creation of such agency is “overdue.”

“Yan ay talagang long overdue na kailangan na kailangan ng bansang Pilipinas kasi nakikita naman natin yung mismanagement ng tubig,” he said. (That is long overdue because the country needs it given the mismanagement of the water supply).

He also proposed building more dams and augmenting capacity at Angat Dam.

Ms. Arroyo said her bill could be endorsed to the upcoming 18th Congress.

“If the committee members will agree, they can endorse the creation of Department of Water to the next Congress,” she said. — Vince Angelo C. Ferreras

CA upholds P1.12-B settlement between NHA, R-II Builders

THE Court of Appeals (CA) said it affirmed the P1.12-billion settlement between the National Housing Authority (NHA) and a private property developer over the Smokey Mountain project in Manila.

In a 25-page decision dated May 30, the CA special first division upheld the 2018 settlement between NHA and R-II Builders, Inc., the former developer of Smokey Mountain Development and Reclamation Project (SMDRP), which ordered NHA to pay R-II P1.12 billion for the project.

R-II, under the agreement, relieves the government agency of all monetary obligations and liabilities in connection with the claim and cancel any previous notice of levy or attachment against NHA upon payment of the obligation.

“This Court finds that the Compromise Agreement dated Nov. 21, 2018 is not contrary to law, morals, good customs, and public policy,” the court ruled.

“It appears to be freely executed by herein parties R-II and NHA. Thus, no cogent reason exists for the Court to refuse to grant the prayer of the parties and hereby bestows judicial approval of their Compromise Agreement,” it added.

The Office of the Government Corporate Counsel (OGCC) claimed that the authority of the NHA general manager is limited to negotiation and signing of the compromise agreement and has no authority to decide on additional properties.

It also contested the six-month period, upon execution, within which it is ordered to pay the initial amount of the obligation.

The court noted that the general manager of the NHA is authorized to sign for the agency and there is no need for specific authority for other properties that were part of the P1.12-billion obligation to which the NHA gave its consent. It also noted that both parties gave their consent in executing the compromise agreement.

“Significantly, jurisprudence is clear that an essential requisite of the validity of a dacion en pago, and consequently, the total extinguishment of the obligation, is the consent of both parties, which was evident in the case at bench,” the CA said.

“In the same breath, neither does this Court find issue as to the substance of the Compromise Agreement with regard to the settlement of all claims as asseverated by the OGCC,” it added.

The court also dismissed the claims of Home Guaranty Corp. (HGC) which claimed that R-II had no reason to recover in connection with the project as HGC had the right to claim all the amounts owing to the Asset Pool by NHA, saying it has entered negotiations with a settlement amount of P5 million in its favor.

The CA said that HGC did not object the compromise agreement and the agreement was binding only to the parties in it.

“After all, HGC is not left without any recourse in law. As the Agreement is only binding upon the parties to the compromise, there is no prejudice as to any negotiations or concessions made between HGC and the latter parties separate and distinct from the said Agreement,” it said.

R-II entered into five contracts with NHA beginning March 1993 in connection with the SMDRP. However, its appointment as developer of the project was terminated in July 2002 as the government decide to submit the additional works of P480 million and their Amended Supplemental Agreement to public bidding.

Due to the termination of the contract, R-II and NHA executed a Memorandum Agreement (MoA) in 2003 wherein the agency “acknowledged therein its indebtedness to it for actual works” for the project, to allow the government to proceed with the public bidding.

R-II moved its claim to the lower court after NHA failed to settle its obligation in full within 12 months after the execution of the MoA as it was only able to pay P806 million leaving a balance or P993 million.

A Quezon City court ruled in favor of R-II, ordering NHA to pay its obligations and issued Notices of Garnishment to NHA.

The settlement was reached in 2018.

The decision was written by Presiding Justice Romeo F. Barza and concurred in by Associate Justices Jhosep Y. Lopez and Ronaldo Roberto B. Martin. — Vann Marlo M. Villegas

DA sets more entry requirements for feed from ASF affected countries

THE Department of Agriculture (DA) said it issued new requirements for the import of plant-based feed products from African Swine Fever (ASF)-affected countries.

In memorandum circular no. 8, series of 2019, Agriculture Secretary Emmanuel F. Piñol said that among the documents needed for entry of shipments include an ASF declaration form from an independent third-party surveyor, which states the last outbreak date of ASF from the country of origin.

The outbreak declaration should follow the announcement of the World Organization for Animal Health on ASF outbreaks, including information on the length of the last ASF outbreak. The required information includes whether the latest outbreak lasted more or less than two months. For outbreaks of less than two months, the shipment from the affected country is subject to quarantine.

The circular prescribes a quarantine period of 20 days from the day the feed was loaded onto the vessel.

If the feed is from non-Asian countries where transport takes at least 20 days, it may be cleared by the quarantine officer at the Port of Entry.

If the feed is from an Asian country and transportation takes less than 20 days, the circular prescribes a 10-day quarantine period.

The DA has banned pork products from ASF-affected countries like Belgium, Bulgaria, China, the Czech Republic, Hungary, Latvia, Moldova, Poland, Romania, Russia, South Africa, Ukraine, Zambia, Mongolia, Vietnam, Cambodia, Hong Kong, and North Korea.

Additional security measures at the ports include meat-sniffing dogs, X-ray machines to inspect packages from affected countries. — Vincent Mariel P. Galang

Sugar output rises 1.93% in late May; SRA claims supply sufficient

SUGAR PRODUCTION as of the fourth week of May rose 1.93% year-on-year, the Sugar Regulatory Administration (SRA) said.

SRA said raw sugar production was 2.06 million metric tons, equivalent to 41.21 million 50-kilo bags, compared with 40.432 million a year earlier.

The crop year for sugar starts in September and ends in August.

Demand for raw sugar declined 16.85% to 1.56 MMT.

Total sugarcane milled decreased 6.36% year on year to 21.63 MMT.

Refined sugar output fell 5.69% year on year to 775,527.10 MT.

The millgate price fell 20.07% to P1,479.22 per 50-kilo bag.

The retail price was stable at P45 to P53 per kilo.

SRA Administrator Hermenegildo R. Serafica said that there is no need for sugar imports since supply is sufficient.

“We still have lots of sugar in warehouses so if need be, SRA is always prepared to do what it takes,” he told reporters after a briefing held in Pasay City.

The government is being lobbied by the food industry to liberalize sugar imports along the lines of the Rice Tariffication Act, amid claims that sugar costs in the Philippines are too high. But the sugar industry has countered that such a measure could put millions of jobs at risk.

Mr. Serafica noted that the country can only export about 120,000 MT of sugar to the US this crop year, lower than the initial quota allocated by the US of 142,160 metric tons raw value (MRTV) or 136,201 metric tons commercial weight for 2018-2019.

“Definitely for this year, we can only ship out more or less 120,000 MT . In fact, USDA (the US Department of Agriculture) has re-allocated the shortfall of our volume to other countries, so it will still be served,” he said.

As for the proposed reduction of the funding for programs under the Sugar Industry Development Act (SIDA), a counter proposal has been submitted to the Department of Budget and Management (DBM).

“We just have to wait for the DBM… DBM also has internal rules for utilization. They are very strict with that, especially for cash,” he said.

The proposed budget for SIDA for 2020 is P67 million, down from P500 million in 2019. The Confederation of Sugar Producers (CONFED) has said that the industry plans to appeal to Congress to increase the allocation to about P1 billion. — Vincent Mariel P. Galang

September target set to wrap up South Korea free trade talks

A SEPTEMBER TARGET has been set to conclude free trade talks between the Philippines and South Korea, Trade Secretary Ramon M. Lopez said.

Kasi nga aapurahin ito eh, so June, July, August, September, mga four or five months sana matapos na yung mga usapan na yun para November pipirmahan na.” (We are hurrying this… around four or five months we hope the talks will finish so we can sign in November,) Mr. Lopez said during the opening of the KOTRA-Manila FTA Support Center Tuesday.

The Philippines’ main concern for the FTA is to lower tariffs for agricultural products like bananas.

Syempre ang gusto natin, single digit, less than 10%. Five percent, we hope.” (Of course we want a single digit tariff, 5%, we hope) he said.

The Association of Southeast Asian Nations (ASEAN) currently has a free trade agreement with South Korea, but Mr. Lopez said that tariffs are still high.

Ang taripa ng banana ng Korea una sa atin ay sabi ko nga, medyo mataas pa, pwede pang ibaba yan. (The tariffs charged by South Korea can still be lowered) in the same way na ang taripa natin, Pilipinas, sa mga Korean fruits ay mababa na (to the low level our tariffs have been set for Korean fruits.)

Mr. Lopez also said the Philippines wants to narrow its trade deficit with South Korea.

In 2018, imports from South Korea were at $10.5 billion, while exports were at $2.5 billion.

FTA talks started earlier this month.

Mr. Lopez said he expects negotiations to go smoothly, because, being bilateral in nature, it does not involve as many participants as the ASEAN-South Korea talks.

Ang ASEAN, may FTA na with Korea so kumbaga hindi tayo mag-uumpisa sa zero dito (We are not starting at zero because ASEAN has an FTA with South Korea). Mayroon tayong pagkukunan na kung saan may mga particular mga rules na pwede nang gamitin sa ating Philippines-Korea FTA,” (We can use the ASEAN deal as a basis for the bilateral deal) he added.

The FTA could coincide with the 70th year of diplomatic relations between the two countries as well as a possible visit of President Rodrigo R. Duterte to South Korea.

Mr. Lopez and South Korean ambassador to the Philippines Han Dongman and various South Korean business officials launched the KOTRA Manila FTA Support Center, which will assist small to medium enterprises in trade matters. — Katrina T. Mina