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Pats’ offense

Tom Brady was not a happy camper in the aftermath of the Patriots’ victory over the scrappy Eagles the other day. Even as it improved the bottom line, the manner in which it unfolded left much to be desired. “It’s just frustration with the offense; we’re trying to grind them out. I’m happy we won on the road, but at the same time, I just wish we’d score more points,” he said in a radio interview. And he’s right; as badly as they fared trying to score against the Ravens in a blowout loss at the M&T Bank Stadium last week, they proved even more hard-pressed to put up numbers at Lincoln Financial Field.

Certainly, the Patriots hung their hats on defense versus the undermanned Eagles. They took advantage of opposing quarterback Carson Wentz’s lack of targets, sacking him five times and limiting him to a middling 20-of-40 effort. At the same time, they couldn’t take full advantage of opportunities when they had the ball; in fact, they had it for less time, and could do no better than post a touchdown all told. That the pass didn’t even come from Brady speaks volumes of their offense as a work in progress. “As crazy as it sounds, we’re still kind of relatively new, getting familiar with each other.”

For the record, wide receiver Julian Edelman produced the 15-yard scoring toss, in the process becoming the only teammate in Brady’s 20 years (and counting) in the National Football League to have more touchdown passes than him over a completed game. That said, Bill Belichick appeared none the worse for wear. Typically not predisposed for small talk, the head coach found cause to deadpan: “Keeps his quarterback rating up there pretty high. I’m sure he’ll ice his shoulder this week, massage it. Great play by Julian.”

In any case, Brady knows the importance of getting better — much better, actually — with him at the helm. The Patriots may be on top of the league at 10-1, but, as he argued, “we have to figure out how we can fix our problems as best we can.” Else, they’ll invariably run into obstacles in their aim to retain the title, many of which they will have erected en route.

 

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

Global shift to sustainability

Globally, the transformative impact for businesses to embrace and drive sustainable development is on the rise. With the age of social media, increasing levels of public awareness exert more pressure on companies to pursue a larger social and environmental purposes, other than just augmenting profits.

Terms such as “People, Planet, Profit,” “Environmental Social and Governance (ESG) standards,” “Impact Financing,” “Green Investing,” “Sustainable Business,” “Social Entrepreneurship,” and “Conscious Capitalism” have proliferated in private, public, and societal spheres in order to overturn the traditional way of doing business.

While these terms seem novel, the concept of sustainability was already in existence decades ago. In fact, sustainable development was described as early as 1987 in the United Nations Bruntland Commission Report as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Years later, the term “ESG” was first coined in the “Who Cares Wins Conference Report: Investing for Long-Term Value” by the United Nations Global Compact in 2005, wherein it was recognized that environmental, social, and governance factors play an important role in the context of longer-term investment.

In 2015, these principles were formally encapsulated in the United Nations Sustainable Development Goals (SDGs), as a “universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030.” The 17 SDGs — namely, No Poverty, Zero Hunger, Good Health and Well-being, Quality Education, Gender Equality, Clean Water and Sanitation, Affordable and Clean Energy, Decent Work and Economic Growth, Industry, Innovation and Infrastructure, Reduced Inequality, Sustainable Cities and Communities, Responsible Consumption and Production, Climate Action, Life Below Water, Life on Land, Peace and Justice Strong Institutions and Partnerships — recognize that “ending poverty must go hand-in-hand with strategies that build economic growth and address a range of social needs including education, health, social protection, and job opportunities, while tackling climate change and environmental protection.”

THE ROLE OF BUSINESS IS EVOLVING
As sustainable development is inarguably recognized as an issue of global importance, businesses should carefully consider the social and environmental risks and threats to their long-term corporate existence in a world of poverty, climate change, and inequality.

Seeking to be part of the solution rather than the problem, companies are created and/or reinvented to not only seek financial returns, but to further address social and environmental impacts by reducing poverty, meeting basic human needs, and ensuring fair and equal opportunities, which are all in keeping with the UN SDGs.

The understanding that businesses play a vital role in addressing the world’s complex social and environmental problems is now widely recognized. This recognition and commitment towards sustainability, most especially in the investment community, is validated in a research study conducted by Robert G. Eccles and Svetlana Klimenko, as published in the May-June 2019 issue of Harvard Business Review, wherein it was reported that ESG was a “top-of-mind” for 70 senior executives at 43 global institutional investing firms, including the world’s three biggest asset managers (BlackRock, Vanguard, and State Street), giant asset owners such as the California Public Employees’ Retirement System (CalPERS), the California State Teachers’ Retirement System (CalSTRS), and the government pension funds of Japan, Sweden, and the Netherlands.

Following this trend locally, top executives of the Philippines similarly recognize the concepts of sustainability in their businesses. In a report by PwC in collaboration with the Management Association of the Philippines (MAP) entitled “The Future of Business: Sustainability. Development. Impact,” which discusses the results of the 2019 survey of 127 CEOs in the Philippines from a mix of large (50%), medium (27%), small (14%), and micro (9%) enterprises from various sectors, over 80% of CEOs expect to change their production or service model in the next three to five years to promote more sustainable practices. Notably, in the past PwC surveys, CEOs were mostly concerned with issues related to policies and terrorism. This year, however, CEOs are acknowledging that climate change and environmental damage are serious problems that they need to face.

GEARING UP TO MEET 2030 SUSTAINABLE DEVELOPMENT GOALS
In the same vein, strengthening environmental protection and combating climate change are recognized by the government and civil society as one of the most important gaps which need to be closed by 2030.

In the 2019 Asia and the Pacific SDG Progress Report by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), environmental targets in the Asia Pacific Region would require a complete turnaround in order to meet the SDGs. Specifically, a quarter of Asia Pacific Region targets that have worsened are linked to natural resource management — including sustainable food production, populations suffering from water scarcity, renewable energy, management of chemicals and wastes, and the loss of biodiversity.

The South-East Asian (SEA) subregion, comprised of Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste, and Vietnam, leads other subregions of the Asia Pacific on three goals: quality education (Goal 4), affordable and clean energy (Goal 7), and industry, innovation and infrastructure (Goal 9). According to the report, the SEA region can expect to achieve 2030 goals by maintaining the current pace of progress on all targets on affordable and clean energy except for renewable energy consumption, where every subregion in Asia-Pacific needs to accelerate progress.

SUSTAINABILITY IS THE NEW REALITY
While government takes the lead in achieving these sustainable development goals, the private sector is now recognized as a key player in addressing the most pressing environmental challenges in the world today.

Serious commitments on a global scale are being launched by some of the world’s leading consumer brands. Big investments to produce environmentally friendly packaging alternatives that will not compromise food quality and safety are in full swing.

The Coca-Cola Company’s “World Without Waste” initiative has committed to an ambitious goal to collect and recycle 100% of its packaging by 2030. In the country, Coca-Cola Philippines recently launched its P1-Billion PET (polyethylene terephthalate) bottle recycling facility.

Unilever’s global commitment is to ensure all of its plastic packaging is 100% designed to be reusable, recyclable, or compostable and to increase the use of recycled plastic to 25% by 2025. They will also share their technical solutions to recycle multi-layered sachets with the industry.

Due to the increasing awareness of benefits of companies to pursue a larger and societal purposes, it seems that sustainability is the new reality for businesses.

The future of sustainability rests in commitment, continuity, and innovation which require the collaborative efforts of the businesses, government and civil society.

 

Hannah Viola is a Fellow at the Stratbase ADR Institute.

A title for a leading role

MOVIES USE iconic stars for cameo roles just to notch up their box office appeal. They are designated in the billing as having a special role — he will be playing himself. Ceremonial appearances too have a place in an organization.

Titles like chairman (or co-chairman) or senior adviser are designed to justify inclusion of a distinguished personality as part of an organization. Holders of familiar titles with undefined responsibilities and unstated authorities may be important for status and respectability they bring to the enterprise. They help raise the organization’s profile and status. Holders of ceremonial titles can even make pronouncements that project authority as they define the company’s direction in vague sweeping statements — We are launching a new beginning.

The term “figurehead” originally referred to the carving on the prow of a ship that serves as its distinguishing mark and symbol. It is the part of the ship against which the champagne bottle is smashed in the christening process. While this carved symbol leads the ship forward simply by being positioned in front, it has nothing to do with steering the ship’s course.

The figurehead in an organization refers to a person with an exalted title but possessing little authority or responsibility. Being at the prow of the ship is a matter of location that has nothing to do with control. Still, the figurehead can be the face of the enterprise.

No one, least of all the subject himself, attaches the designation of “figurehead” to the designated position holder, except perhaps behind his back. Is it because there is something derogatory in being powerless in a seemingly powerful position?

It is not always easy for outsiders to determine if the person with a fancy title even has the authority to give away calling cards. Usually, he has a small allocation. Courtesy visitors from abroad routinely make calls on the figurehead. They can be forgiven the blunder of leaving proposals of strategic partnerships and capital investments with this titular titan. He flips through the pages of the report and assures his visitors that “he will evaluate this proposal” as he ushers the latter out the door. He then sends the document on its way to the real decision points.

Why are figureheads even recruited if they are not expected to do anything affecting the corporate ship’s course?

Such ceremonial leaders are venerable and wizened personages who may have retired from a major position that actually wielded real authority of life and death in a previous incarnation. Or they may have been languishing in irrelevancy in another exalted position.

Figureheads report for work regularly. They sign checks and contracts already negotiated and reviewed by the real powers, cut ribbons for new plants, and take out courtesy callers to dinner.

The second-in-command in the country may turn into a figurehead stripped of a real portfolio and not allowed to sit in on important meetings. She can keep busy making speeches on nutrition and human rights in NGO events and international forums, dutifully noted in the inside pages of newspapers. By some freak of fate, such an almost forgotten public figure may be challenged to accept another figurehead position with a higher profile. The expectations of success are low even as her media profile is exponentially raised.

Make-believe positions (MBP) are not to be confused with the figurehead counterpart. The former has to do with ambiguous jobs in business development or corporate culture with no specific targets. These are characterized by the need to call several meetings a day and request reports from busy people doing real work like servicing clients. The MBP Head is the emperor with no clothes. He walks the halls confidently, dreading that question from the uninformed — What do you really do?

Nobody asks the Figurehead what he does. He chairs meetings. He doesn’t give orders. While his title reveals nothing, it also requires no explanation. Like the figure carved on the prow, the figurehead can feel the ship moving without his help. He understands when a journey has begun or ended.

The figurehead doesn’t need to know where his ship is headed. He doesn’t even blink when it hits the rocks with a loud splintering sound. He understands that he himself is now safely ashore… and headed for retirement.

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

Lenders beware: The crackdown on illegal online cash companies

“Quick and Easy Online Loan,” “Fast, Easy, Loan Online,” “Quick Cash Online” — these are only a few of the marketing and advertising slogans of online lending companies which have emerged among the online community. Oblivious of the consequences, these online loans became popular among the mass of Filipino people who, in some way or other, needed the “quick and easy” cash.

These online lending companies operate through their respective mobile platforms. According to an investigation by the Securities and Exchange Commission (SEC), before a person can apply for this “quick and easy” online loan, all he has to do is download and install the online lending application on his mobile phone. By downloading and installing the application, the online lending operators already gain access to the personal information contained in the mobile phone of the prospective borrower which includes contact numbers, Facebook accounts, e-mail addresses of all persons saved/stored therein. This personal information may then be utilized by the online lending operators to exact payments from their borrowers by simply sending a text blast to the persons contained in the borrowers’ mobile phones informing all his contacts that the person concerned obtained a loan from them but refuses to pay the amount due.

Not long after, the SEC and the National Privacy Commission (NPC) received several complaints from borrowers who felt an invasion of their privacy and a disruption of their peace.

In response, the NPC summoned more than 60 online lending operators for a summary hearing. Meanwhile, the SEC released cease and desist orders, wave after wave of them, to shut down illegal online lending companies. As of Oct. 29, 48 online lending companies have been ordered to desist from their operations for violation of the Lending Company Regulation Act of 2007 and SEC Memorandum Circular No. 18, Series of 2019.

As the agency tasked to regulate and supervise the operations and activities of lending companies in the country, the SEC responded to the complaints by: 1.) shutting down the operations of illegal online lending companies; 2.) prohibiting unfair debt collection practices of financing/lending companies; and, 3.) imposing disclosure requirements for the advertisements of financing/lending companies and requiring the reporting of online legal platforms.

CLOSURE OF ILLEGAL ONLINE LENDING COMPANIES
The SEC closed online lending companies for violations of Republic Act No. 9474, or the Lending Company Regulation Act of 2007, which prohibits any person from engaging or carrying out a lending business without the Certificate of Authority to Operate from the SEC. Section 4 thereof provides:

SEC. 4. Form of Organization. — A lending company shall be established only as a corporation: Provided that existing lending investors organized as single proprietorships or partnerships shall be disallowed from engaging in the business of granting loans to the public one year after the date of effectivity of this Act.

No lending company shall conduct business unless granted an authority to operate by the SEC.

As stated in its declaration of policy, the Lending Company Regulation Act of 2007 was enacted to prevent and mitigate, as far as practicable, practices prejudicial to public interest and to lay down the minimum requirements and standards under which lending/financial companies may be established and do business. Thus, as emphasized by the SEC, without a Certificate of Authority to Operate as Lending Companies or Financing Companies, as required by Section 4 of the Lending Company Regulation Act of 2007, these online lending operators cannot offer and provide loans to the public. Violators of the act face payment of a fine not less than P10,000 and not more than P50,000, or imprisonment of not less than six months but not more than 10 years, or both, at the discretion of the court.

ISSUANCE OF MEMORANDUM CIRCULAR NOS. 18 AND 19, SERIES OF 2019.
Answering this growing need to protect the public, especially the poor and the underprivileged who became the target of the illegal online lending operators, the SEC issued Memorandum Circular No. 18, Series of 2019, entitled as “Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies.” This circular enumerated the unfair collection practices, which include, among others, the disclosure or publication of the names and other personal information of borrowers who allegedly refuse to pay debts, subject to certain exceptions including consent of the borrower. However, despite consent of the borrower, contacting the persons in the borrower’s contact list other than those who were named as guarantors or co-makers shall also constitute unfair debt collection practice.

The SEC likewise enacted Memorandum Circular No. 19, entitled “Disclosure Requirements on Advertisements of Financing and Lending Companies and Reporting of Online Lending Platforms,” which provides the requirement of fully disclosing in their advertisements the Corporate Name, SEC Registration Number, and Certificate of Authority to Operate a Financial/Lending Company. The circular likewise directs the online lending companies to advise prospective borrowers to study the terms and conditions in the Disclosure Statement before proceeding with the loan transaction.

The practice of the illegal online lending operations of sending out text blasts to the entire contact list of the borrower — informing them that the person involved is delinquent and might face legal action — is likewise violative of the Data Privacy Act of 2012.

As defined by the Data Privacy Act, information about any proceeding for any offense committed or alleged to have been committed by a person is considered as “sensitive personal information” which cannot be processed without the consent of the person and all other parties to the exchange prior to processing. Thus:

“SEC. 13. Sensitive Personal Information and Privileged Information. — The processing of sensitive personal information and privileged information shall be prohibited, except in the following cases:

(a) The data subject has given his or her consent, specific to the purpose prior to the processing, or in the case of privileged information, all parties to the exchange have given their consent prior to processing; […]”

Aligned with the Data Privacy Act, SEC Memorandum Circular No. 18, Series of 2019, strengthened the privacy of the borrowers by providing for specific unlawful conducts of debt collection. The SEC Memorandum Circular No. 18, Series of 2019, provides that even if there is consent, it is prohibited to contact the persons in the borrower’s contact list other than those who were named as guarantors or co-makers.

In retrospect, while getting these loans may be quick and easy, it pays to be vigilant to the nitty-gritty details to avoid ending in regret. After all, one’s reputation is an intangible, fragile little thing that can take a lifetime to redeem.

 

Jesselie A. Sunga is an Associate in the Litigation and Dispute Resolution Department of ACCRALAW.

9020 8830-8000

jasunga@accrelaw.com

Gushcloud Philippines Awakened Our ‘80s Nightmares In ‘Fright Night!’

Gushcloud Philippines, Southeast Asia’s #1 influencer network, held its second exclusive annual Halloween event last October 25, 2019 at Cinko PH, Poblacion, Makati. The ‘80s Dark Fantasy-themed party featured clients, media partners, and influential online personalitieswho dressed up in ensembles straight out of the era’s horror flicks.

Jaz Reyes of 99.5 Play FM’s hosting brought the house down with her crazy quirks, Tom Suplico dropped wicked beats that had the creatures of the night party it up, and Absoluttanked guests with booze-some fun through the trivia drinking game. Attendees took home loot from the brand sponsors foodpanda, Photobook, V&M Naturals, Biorè, Caronia, BRTC, Liese, and VMV Hypoallergenics.

Ferlan Fariñas, Country Director of Gushcloud Marketing Group, also took to stage the launching of the group’s newonline publication Best of Manila – a lifestyle magazine directed to the millennial and Gen Z audience, tapping the latest on everything the city has to offer.

Gushcloud Philippines is a brand under Gushcloud International. This global influencer marketing, entertainment, and talent agency is the creative linkage between brands, audiences, and creators – specializing in strategic influencer management, content marketing, and social media management.

Follow them on their social sites for the latest updates!

Facebook: Gushcloud Philippines
Instagram: @gushcloudph

Online influencers garbed in iconic ‘80s pop culture references.

Tom Suplico dropped the hottest Fright Night beats.

The ‘Heathers’ squad sending chills from the photo corner.

A spectacle of obfuscation

I have been closely following the TV news coverage of the US congressional hearings on the possible impeachment of President Donald Trump and I am reminded of Harry Belafonte’s song, “Man Piaba,” which goes this way:

“When I was a lad of three-foot-three, certain questions occurred to me;

So I asked my father quite seriously to tell me the story ‘bout the bird and bee.

He stammered and he stuttered pathetically and this is what he said to me:

“He said, ‘The woman piaba and the man piaba and the ton ton call back a lemon grass;

The lily root, gully root, belly root uhmm — and the famous granny’s scratch scratch!’

“It was clear as mud and it covered the ground and the confusion made me head go ‘round;

So I went to ask an old friend of mine, known to the world as Albert Einstein..”

Einstein’s explanation was also “as clear as mud and it covered the ground,” and so was that of Sigmund Freud, whom the curious lad also asked. In frustration, he concludes:

“All good men upon this earth have confused me since my birth.

I’ve been over land and been over sea trying to find the story ‘bout the bird and bee;

Now that I am 93 I don’t give a damn, you see…”

Isn’t it amusing that something as basic as the sexual relations between man and woman (the bird and the bee) should be obfuscated and muddled by “all the good men upon this earth.” It is a fact. Try discussing sex with your curious five-year-old.

But the citizens of the United States — and inevitably the whole world — have no choice but to give a damn about the results of the impeachment hearing on the president of the most powerful country on the planet. America’s economic, military, and social influence is so pervasive that it is said that when the US catches a cold, the world comes down with pneumonia.

In other words, the impeachment of a US president will have a resounding impact on the world. Of course, Trump’s enemies will welcome his ejection from office. But Trump’s voter base won’t give a damn.

The “never-Trumpers” (Trump’s description of those who would like to see him kicked out of office), are painfully aware that although he may be impeached in the Democrat-controlled House of Representatives, the Republican-dominated Senate, which is mandated to conduct the actual impeachment trial, is not likely to render a verdict that will force him out of the White House. It will take a two-thirds vote of the Senate rolls to impeach, an unlikely occurrence, according to political observers.

During the incumbency of President Bill Clinton, a Democrat, the figurative shoe was on the other foot. Clinton was impeached by a Republican-controlled Lower House but was acquitted by the Democrats who were the majority in the Senate.

What is interesting is that when Republican President Richard Nixon faced the possibility of impeachment in an inquiry initiated by House Democrats, it was a delegation of fellow Republicans that delivered the harsh message to Nixon. That persuaded Nixon to resign.

Even more remarkable was the fact that it was a bi-partisan Senate Committee that approved the initial investigation into the Watergate break-in that started the scandal.

That bi-partisanship is non-existent in the current impeachment hearings. President Manuel Quezon’s immortal quote, “My loyalty to my party ends where my loyalty to my country begins,” is meaningless to the partisans on Capitol Hill and the White House.

In fact, it was in anticipation of an acquittal of Trump by the Republican-controlled Senate that kept Speaker Nancy Pelosi and many Democrats from pushing sooner for a formal impeachment inquiry. They were also worried that impeaching Trump could result in a voter backlash that could hand Trump a second term in next year’s presidential election, the way Clinton won a second term after being impeached.

The political gamble seemed too risky. Public opinion polls indicate that Trump’s voter base has not been affected by the negative reports about his chaotic governance and only a slight majority of the American public are in favor of impeaching and removing Trump.

Trump’s boast that he could shoot a man in the middle of Manhattan and not lose a single vote among his mesmerized supporters, still rings eerily true in the ears of the Democrats and enlightened Americans.

It took the quid pro quo arm-twisting that Trump allegedly tried to apply on the president of Ukraine, Volodymyr Zelensky, that forced Pelosi to finally accede to the mounting demand by her party caucus for impeachment proceedings to be initiated no matter what the political cost. Trump had made a Mafia-like “offer that couldn’t be refused” to Zelensky, pressuring the Ukranian government to dig up dirt on Trump’s potential rival for the presidency in the 2020 elections.

The impeachment process is being aggressively pursued by the Democrats, in spite of the political risk, because IT IS THE RIGHT THING TO DO.

The current impeachment hearings are a spectacle of partisanship and obfuscation. The Republicans have gradually altered their defensive posture from denying that there was ever a quid pro quo (in terms of withholding from Ukraine over $400 million in US aid in exchange for dirt on former Vice-President Joe Biden and his son Hunter Biden), to “so what if there was a quid pro quo, what’s wrong with that?,” to “okay, assuming there was wrong-doing, it isn’t enough grounds for impeaching a duly elected president.”

The Democrats, on the other hand, have been methodically demolishing the Republican rationalization by presenting witnesses who have attested to Trump’s pressure tactics on the Ukranians. They have also cited the constitutional basis for impeaching Trump, leaving the Republicans and Trump to resort to obfuscation or, in Belafonte’s words, “making the situation clear as mud” and presenting the American public with a “confusion that makes their head go ‘round.”

What is interesting is that the battleground in this high-stakes spectacle is in the minds of the American public. The objective of the Republicans is to confuse the US electorate and leave enough doubts in their minds about the justification for impeaching the president. The Trump apologists are hoping that the doubts will translate into a tolerance for his misdemeanors enough to win him a second term.

Indeed, for the average Americans, impeachment is a step into the unknown. And Trump has been painting all kinds of doomsday scenarios should he be removed from office — even the possibility of a violent upheaval among his supporters.

On the other hand, the objective of the Democrats is to make a compelling case for impeachment based on blatant abuse of power and obstruction of justice, all adding up to high crimes and misdemeanors. They have toyed with the idea of throwing in treason among the articles of impeachment but are not sure that there will be enough grounds for this based on the report of Special Counsel Robert Mueller on Trump’s alleged collusion with Russia and Vladimir Putin.

The US media and political pundits refer to these tactical and strategic moves by both parties as a “messaging war.”

It is ironic that an icon of the rule of law like America finds itself caught in a situation where the fate of the president — and, perhaps, of the country itself — depends on the ability of contending parties to obfuscate, to muddle the public perception of events and circumstances, and to leave that perception “clear as mud,” thus making the public’s head “go ‘round.”

Frankly this has boiled down into a communications contest — almost a marketing contest of competing brands — demanding the manipulative skills of wordsmiths and legal shysters — the rule of law and the Constitution be damned.

Donald Trump himself is such a skilled manipulator for whom lying comes naturally. Like a cornered beast, he is expected to lie and cheat, unleash foul blows, and throw his most loyal associates under the bus to survive. Indeed, Trump could be a poster boy for Sun Tsu’s Art of War, where the master of warfare advises that an enemy should be allowed an avenue of escape because, if cornered, he will fight to death.

It is a sad testament that even his worst detractors grudgingly concede that, when the smoke of battle has cleared, Trump could still survive like the indestructible cockroach while they themselves will be smarting in defeat.

However, in spite of that dire possibility the impeachment process should still be pursued and consummated. BECAUSE IT IS THE RIGHT THING TO DO.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

Statement of FFCCCII President Dr. Henry Lim Bon Liong

THE Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) wishes to reaffirm its full and unwavering support to the government’s intensified campaign against illegal drugs. We join the government and our law enforcement agencies in condemning and working towards eradicating the menace of illegal drugs as a moral scourge, a threat to public health and the socio-economic stability of the Philippines.

Since 2016, the FFCCCII has supported the government’s efforts to rehabilitate drug users through the donations of rehabilitation centers in Candelaria, Lucban and Mulanay, Quezon Province; Tagbilaran, Bohol province; Island Garden City of Samal, Davao del Norte province; Mati, Davao Oriental province; and Surallah, South Cotabato province. We believe that a wholistic anti-illegal drug campaign should include rehabilitation of drug users.

We wish to clarify certain media reports which link Filipino Chinese to illegal drugs. We appeal to media and other sectors to refrain from generalizing that members of the Filipino Chinese community as peddlers of illegal drugs and inadvertently besmirching our community’s reputation. As with any community, there may be a handful of wrongdoers or bad apples but the same should not affect the rest of the community.

We want to reiterate that most, if not all of the ethnic Chinese community members in the country, are law-abiding Filipino citizens, legitimate business people and conscientious in upholding rule of law. Let us be more careful in making public statements that may unnecessarily create rancor, conflicts, misunderstanding and promote unfair stereotypes.

In this light, the FFCCCII would like to revisit discussions on proposals by many citizens on the re-imposition of the death penalty for heinous crimes, particularly for drug traffickers and pushers. We may look at our Asian neighbors like Singapore, China and Taiwan on how capital punishment has deterred the commission of heinous crimes.

We reaffirm FFCCCII’s commitment to be the government’s partner in economic and social progress.

IMF cautious on PHL growth prospects

THE INTERNATIONAL MONETARY FUND (IMF) maintained its Philippine gross domestic product (GDP) growth projection for this year but slightly raised its 2020 forecast despite increased risks, as state spending improves further, according to a statement the multilateral lender released on Monday at the end of its annual health check on the country.

“After a soft patch in the first half of this year, the Philippines’ GDP growth is expected to strengthen in the remainder of 2019 and in 2020, underpinned by government spending catching up with targets, and the recent monetary policy easing,” the IMF said in its statement.

“Growth is projected at 5.7% in 2019, unchanged from the October 2019 World Economic Outlook and to strengthen to 6.3% in 2020, underpinned by an increase in government spending and the recent monetary policy easing.”

The IMF had slashed its Philippine GDP growth projection to 5.7% last month from six percent in July and from 6.7% in October last year.

Last month, the multilateral lender also cut its 2020 growth forecast for the country to 6.2% from 6.3% in July and from 6.6% before that.

GDP growth picked up to 6.2% last quarter after a muted 5.5% in the first half as state spending reeled from late national budget enactment and a ban on new public works 45 days ahead of the May 13 midterm elections. The latest clip fueled the year-to-date pace to 5.8% against the past year’s 6.2% and the government’s 6-7% target for 2019. For 2020, the goal is 6.5-7.5%.

The IMF’s projection compares to the 5.8% of the World Bank and Moody’s Investors Service, the six percent of the Asian Development Bank, the ASEAN+3 Macroeconomic Research Office, S&P Global Ratings and Fitch Solutions and the 6.1% given by Fitch Ratings.

Last January, the United Nations Department of Economic and Social Affairs, the UN Conference on Trade and Development and the five UN regional commissions gave a 6.5% projection for this year, while the Organization for Economic Cooperation and Development in November 2018 cut its forecast for this year to 6.5% from the 6.7% outlook it gave in July 2018.

An IMF team led by Thomas F. Helbling, division chief in the lender’s Asia and Pacific Department, visited Metro Manila, as well as Clark City and New Clark City in Central Luzon on November 5−18 for the 2019 Article IV consultation with Philippine officials.

In a briefing in Manila on Monday, Mr. Helbling said his team sees “a further substantial increase in Q4 [GDP expansion]… on government spending, especially on the infrastructure program [that] will accelerate growth.”

“The medium-term economic outlook remains favorable, especially if the strong structural reform momentum continues,” the IMF said in its statement on Monday, referring to various reforms being pushed by the administration of President Rodrigo R. Duterte, especially those seeking to make the current tax system more equitable while yielding more collections.

“Structural reform progress has been strong and important bills have been passed, including rice tariffication, tax reform, a national digital ID, the ease of doing business and BSP charter amendments” designed to further strengthen monetary supervision.

Saying “[i]t will be critical to speed up the implementation of reforms,” the multilateral lender said that “[f]urther steps could be taken to promote inclusive growth, including continued tax reform, relaxing restrictions on foreign investment, broadening poverty reduction efforts, easing the stringent banking secrecy law and upgrading the capacity of public administration.”

“Bold implementation efforts are needed for the strong structural reform momentum to lift medium-term growth and reduce poverty.”

The IMF also noted that the government has so far wielded appropriate fiscal and monetary tools to address slowing growth, especially as inflation has been easing from last year’s successive multi-year peaks.

“With the current projections of global commodity prices and domestic policy trajectories, inflation is projected at 1.6% by end-2019 and at three percent by the end of 2020, within the 2-4% target range” of the central bank.

“The recent cuts in the BSP’s policy rate are appropriate for achieving the inflation target in the next one to two years, barring any unforeseen events.”

The government has fired off reductions in benchmark interest rates totaling 75 basis points this year, partially dialing back a cumulative 175 bp hike in 2018 as inflation soared then, as well as reductions in banks’ reserve requirement ratio totaling 400 bp this year after 2018’s 200 bp reduction.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno has signaled there will be no more monetary policy adjustments this year — the Monetary Board steadied policy settings last Nov. 14 and is scheduled to hold this year’s eighth and last policy review on Dec. 12 — as monetary authorities watch if past adjustments have increased bank lending to productive economic activities.

“The planned increase in government spending for 2020 and the recent monetary policy easing will help the economy move back to its growth potential and achieve the inflation target,” the IMF said on Monday.

At the same time, it added, “near-term downside risks to the outlook have increased, reflecting increased risks from global trade tensions, shifts in global financial conditions and natural disasters.”

“Risks to the outlook are tilted to the downside. The near-term rebound in GDP growth could be weaker than expected because of global trade tensions and related policy uncertainty, a change in global financial conditions and natural disasters.”

Despite tempered growth projections, “[t]he Philippines remains one of the best-performing economies in the region,” the IMF noted.

“On the upside, structural reform progress and infrastructure improvements could boost confidence and growth,” it added, noting that “[t]he small fiscal stimulus planned for 2020 is timely and appropriate in magnitude” in reference to the P4.1-trillion national budget proposed for 2020 that is in the Senate and now on track to yearend enactment.

Under an initial draft of the budget, infrastructure expenditures for 2020 were programmed at P972.5 billion, equivalent to 4.6% of GDP, about 6.9% more than P909.7 billion this year that is equivalent to 4.7% of GDP.

“Within the budgeted fiscal envelope… there is scope to expand and better target social spending and infrastructure,” the IMF said.

Overall, it noted, “[t]he Philippines has space for an expansionary macroeconomic policy response should downside risks materialize.”

With the expected economic growth pickup comes the risk of “rapid credit growth,” the multilateral lender warned.

Hence, “[t]he BSP should be prepared for macroprudential policy responses if renewed high credit growth poses risks to systemic financial stability.” — Luz Wendy T. Noble

Grab told to refund excess charges

THE COUNTRY’S competition watchdog had fined Grab Philippines some P23.45 million for breaching its initial pricing commitments, as the authority approved a fresh undertaking as condition for its clearance of the ride-hailing firm’s acquisition of Uber’s Philippine business last year.

In a press briefing on Monday, Philippine Competition Commission (PCC) officials said the fine includes a P5.05-million refund to Grab riders who used the service between February and May.

These refunds will be returned to customers through the GrabPay Wallet in the app 60 days after PCC issued the order on Nov. 14.

Under the extended undertaking that took effect on Nov. 1 and which will remain in force for a year, Grab will return to affected customers amounts in breach of a 22.5% ceiling for average increase in a month from fares prior to the acquisition of Uber.

“… [T]he Philippine Competition Commission has approved a new set of commitments undertaken by Grab to address the lingering competition concerns in the ride-hailing market,” PCC Chairman Arsenio M. Balisacan said in his opening statement at the briefing.

“This effectively extends the PCC’s hold on Grab to conditions that prevent it from behaving like a monopolist to the detriment of the riding public.”

The extended undertaking involves “more streamlined commitments and metrics on pricing, service quality and non-exclusivity which Grab is compelled to abide by,” Mr. Balisacan explained.

He noted that a year after initial commitments were approved, “there continues to be a lack of competitive constraints on Grab and competition concerns… subsist”, consisting of the company’s prevailing market dominance, its ability to unilaterally increase prices profitably, existence of significant barriers to entry and inadequacy of its service quality.

“This is why there was a need to re-negotiate these commitments and install new commitments — to effectively address the persistent impact of a virtual monopoly on a sector imbued with public interest,” he added.

“Now entering the second year of PCC’s monitoring, we have maintained the same framework but introduced new mechanisms to ensure Grab’s compliance with its commitments.”

The new tools include a “disgorgement mechanism” under which Grab will have to return price excesses to riders if it breaches the monthly average fare cap set by the PCC. The refund scheme started in the third quarter of its initial undertaking.

GRAB RESPONDS
Grab Philippines said in a statement Monday that it respects PCC’s mandate to protect Philippine consumers, and has worked with the authority to form and finalize its voluntary commitments.

“The antitrust body has identified certain deviations from Grab’s voluntary commitments, and based on the recent order from the PCC, Grab will be paying a total computed amount of P5,050,000 to the passengers who took Grab rides from February until May 2019,” the company said.

“Grab Philippines maintains its compliance with the LTFRB’s fare matrix and will work closely with the PCC in implementing the agreed mechanics for the payment, which will be communicated to the public at least five days before paying,” it added, referring to the Land Transportation Franchising and Regulatory Board.

Grab has until Dec. 14 to pay its first and second quarter fines amounting to P11.3 million and P7.1 million respectively.

Within this initial period, Grab had also paid P9 million in fines for breaching its commitments after it presented inaccurate pricing data and incomplete sampling frames, and for violating its commitment to remove the “see destination” feature for drivers.

In the same press briefing on Monday, PCC Commissioner Johannes Benjamin R. Bernabe said that the 22.5% allowable average increase in a month is based on inflation rate, traffic density and effects of surges.

Refunds will be on top of fines of up to P2 million per breach.

“The undertaking and the commitment decision of the commission is intended to prohibit [Grab] from exceeding the cap… if they breach that cap, that’s when the penalties and the disgorgement mechanism kick in… It’s really a stick designed to disincentivize pricing beyond the threshold,” Mr. Bernabe explained.

After PCC reviews and confirms monthly fare breaches at the end of each quarter, the commission will notify Grab to refund the excess to customers’ GrabPay Wallets in 30 days.

In addition to this price agreement, the extended voluntary commitments includes all prior commitments to non-exclusivity and service quality.

Under the undertaking, Grab may ask to be released from its commitments if a competitor takes on at least 20% market share, or two or more players with a combined 30% market share. — Jenina P. Ibañez

IMD world talent ranking 2019

THE PHILIPPINES’ ability to develop, attract and retain highly skilled professionals improved in 2019, buoyed largely by increased capacity in matching existing talent pool with the demand of the labor market, according to an annual survey of Switzerland-based business school International Institute for Management Development’s (IMD) research arm. Read the full story.

IMD world talent ranking 2019

Philippines hones its talent edge

By Carmina Angelica V. Olano
Researcher

THE PHILIPPINES’ ability to develop, attract and retain highly skilled professionals improved in 2019, buoyed largely by increased capacity in matching existing talent pool with the demand of the labor market, according to an annual survey of Switzerland-based business school International Institute for Management Development’s (IMD) research arm.

IMD world talent ranking 2019

The Philippines placed 49th out of 63 economies in the IMD World Competitiveness Center’s World Talent Ranking 2019 report published on Monday, up six places from 55th in 2018.

The 2019 report takes into account three equally weighted talent factors to determine placement of these economies. The “investment and development” factor measures how much resources were invested to cultivate “home-grown” talent, the “appeal” factor evaluates the extent to which an economy “attracts and retains” foreign and local talent, while the “readiness” factor looks at the “availability of skills and competencies” in the labor force.

The Philippines saw the largest improvement in the readiness factor, rising to 26th in 2019 from 37th in 2018. Its placement in the appeal factor rose to 31st from last year’s 38th place. At the same time, the Philippines saw marginal improvement in the investment and development factor, albeit remaining near the bottom at 61st from 62nd previously.

The report cited the Philippines’ overall strengths such as availability of skilled labor (ranked third overall), percentage of graduates in the sciences (13th), availability of language skills (16th), cost-of-living index (15th) and effective personal income tax rate (8th).

“Other contributors to the country’s improvement include the prioritization of employee training (27th), level of the motivation of the workforce (29th) and availability of competent senior managers (21st),” the report further read.

On the other hand, the Philippines’ overall weaknesses include its government expenditure on education per student in the secondary level (56th), total public expenditure on education per student on all levels (61st), student-teacher ratio in the primary (59th) and secondary (57th) levels and the inbound mobility rate (56th), which is measured as the foreign tertiary-level students per 1,000 inhabitants.

‘AMAZING IMPROVEMENT’
Responding to queries via e-mail, IMD World Competitiveness Center Director Arturo Bris said the Philippines has “shown an amazing improvement” in terms of its capability to “match the existing talent pool with the needs of the private sector.”

“In particular, attraction and retention of talent has become a more important priority for companies, and in fact this has been achieved through a reduction in the cost of living index, as well as an increase in the average remuneration of management,” Mr. Bris said.

“Consequently, our indicator of ‘readiness,’ which measures the ability of the system to match the existing talent pool with the needs of the private sector, has also improved significantly. This is reflected in our indicator of whether ‘Skilled labor is readily available’ in the country, where the Philippines jumps from No. 7 to No. 3 in the world.”

Despite this, Mr. Bris also noted that the Philippines “continues to show an underperforming education system” as its investment in education is “still well below average.”

“As a percent of GDP (gross domestic product), the Philippines only invests 3.5%, lower than the average 4.1% for all the countries in our sample“ [O]n a per-student basis, the Philippines ranks No. 61 out of 63 countries [at $376 per student],” Mr. Bris said.

Asked on what the Philippines should do to maximize its strengths to further improve its ranking, Mr. Bris responded: “It is paramount for the country to stop the flow of talent abroad. Therefore retention of talent should be a priority of policy.”

“Besides general economic improvements that induce talent to stay at home, the country should implement other policies that increase quality of life, access to services, higher salaries and better labor conditions,” he added.

Regulator approved Wawa bulk water supply project — Prime Infra

THE WATER COMPANY of businessman Enrique K. Razon Jr. said on Monday that his joint venture for the Wawa bulk water project had been approved by the government, paving the way for improvement of Metro Manila’s supply.

In a statement on Monday, Mr. Razon’s Prime Metroline Infrastructure Holdings, Inc. (Prime Infra) said the project had been “decisively” approved by state-led Metropolitan Waterworks and Sewerage System (MWSS) on Nov. 14, 2019.

It quoted MWSS Chairman Reynaldo V. Velasco as saying: “As promised to the public, the Board has already given its final approval for the Wawa Bulk Water Project.”

“This is good news for everyone, not only for the proponents and stakeholders, but more importantly for the MWSS consumers. This will ensure water security for the greater Metro Manila area in the coming years.”

The joint venture, WawaJVCo, Inc., is expected to supply 80 million liters per day (MLD) from Wawa dam in 2021 and at least 500 MLD in 2025.

Prime Infra said the final approval of the remaining documents, which authorized MWSS Administrator Emmanuel B. Salamat to sign on behalf of the agency, took place during the MWSS Board of Trustees meeting on Thursday last week.

It said the approval came after the favorable opinion issued by the Office of the Government Corporate Counsel on Nov. 7 on the remaining conditions precedent.

“This approval is the remaining document to make the project fully effective and enable the project proponent to proceed in the development work,” the company said.

It also quoted Mr. Velasco as saying: “I would like to assure the public that MWSS is doing everything in its power to address the current water crisis.”

“We are committed to make sure that we have enough supply to meet the demands of the growing population in Metro Manila. I am sure the other government agencies who are mandated to issue permits will follow suit as this is a priority project to solve the water crisis,” he added.

During his term as MWSS administrator, Mr. Velasco encouraged Mr. Razon and the Wawa project’s controlling stakeholder — San Lorenzo Ruiz Builders and Developers Corp. of Oscar I. Violago — to jointly develop the project.

He also urged Manila Water Co., Inc. to be involved in it.

In August, Manila Water signed a 30-year raw water supply offtake agreement with MWSS and WawaJVCo. The Ayala-led water concessionaire for Metro Manila’s east zone said the agreement would involve the supply of raw water from the Wawa and Tayabasan rivers. “This is among the medium-term water supply augmentation measures identified to provide water security and sustainability to the consumers of Manila Water in the East Service Area,” it had said.

Wawa dam in Rodriguez, Rizal is gravity dam built in 1909 during the American occupation of the Philippines. It was Manila’s main source of water until Angat dam was built in 1968.

On its Website, Prime Infra said the first weir and first basin will have a supply capacity of 40 MLD by 2021. The second weir and basin will have the same capacity by 2021. In the same year, Manila Water’s water treatment plan at Calawis River will be available.

The upper Wawa dam with a supply capacity of 438 MLD is expected to be available by 2025. — Victor V. Saulon