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Dashboard (02/10/20)

ZS is top-selling MG in 2019

MG PHILIPPINES sold a total of 5,085 vehicles on its first year of operations — averaging 400 units a month — led by the MG ZS crossover SUV, which accounted for over half of MG sales here in 2019.

The company also launched three more all-new models last year: the RX5 SUV, the MG 6 Fastback sedan, and the new MG 5 sedan. The last is said to be a “class leader in its segment that is big in both size and features.” MG in a release said that its “vehicles continue to grow in popularity among Filipinos because of their high value-for-money proposition, attainable prices, modern driving aids, and safety features, all while being backed by a rich British heritage.”

MG Philippines has 24 dealerships nationwide: MG Alabang, MG Araneta-Cubao, MG BF Parañaque, MG Commonwealth, MG EDSA Centris, MG Makati, MG Marikina, MG Pasig, MG Shaw, MG Quezon Avenue, MG Batangas, MG Cabanatuan, MG Carmona, MG Dasmariñas, MG Lipa, MG Pampanga, MG. Sta. Rosa, MG Cebu-Mandaue, MG Bacolod, MG Iloilo, MG Tacloban, MG Cagayan De Oro, MG Davao, and MG Zamboanga. The firm targets to open at least seven more this year in key locations.

MG Philippines said its “aftersales complements” activated last year will continue this year to provide buyers a “pleasant MG ownership experience.” MG boasts a five-year/100,000km warranty (whichever comes first), and one year free periodic maintenance service (PMS).

Owners can also download the My MG mobile app on Google Play for Android, allowing them to easily schedule vehicle servicing appointments, make parts inquiries, and locate nearby MG dealerships. The app can also be used to book a visit from a Mobile Garage service caravan providing MG owners with vehicle home service for major technical issues. MG Hero Services, on the other hand, provides 24/7 roadside support through the MG Philippines hotline (+632 5328-4664).

Marketing campaigns in 2019 will roll out once more in 2020 such as the MG Live! free concert series, participation in the 2020 Manila International Auto Show (MIAS), and involvement in major sporting events in the UAAP and with popular mixed martial arts entity ONE Championship. MG promises to be “present in various mall roadshows and test drive events all over the country.”

MG Philippines last year received awards as well: Best Subcompact SUV (MG ZS) at the 15th Annual C! Awards, the Best Value for Money Compact Sedan of the Year (MG 6) at the 2019 Auto Focus People’s Choice Awards, and the 2019 Breakout Brand of the Year at the 2019 Top Gear PH Awards.

“We at MG Philippines are thankful to our clients, our executive committee, dealer partners, media friends, our partners from SAIC Motor International, our bank partners, and the numerous agencies who worked with us, for making 2019 such a breakout year for the brand,” said president and CEO Atty. Alberto Arcilla. “We have exciting things in store for 2020 and we eagerly enter this new year and decade with renewed anticipation and excitement, bolstered by all the positive indicators we received in the past year.”

For more information, visit www.mgmotor.com.ph. Follow MG Philippines on social media: OfficialMGPhilippines (Facebook) @mg_philippines (Instagram and Twitter) for more updates, or call the 24/7 MG Philippines hotline at (02) 5328-4664.

What cars did you look for on Carousell last year?

CLASSIFIEDS MARKETPLACE Carousell, launched in August 2012 and now present in eight Asian markets, revealed that Toyota was the most-searched auto brand in the Philippines last year. Honda, Mitsubishi, BMW, and Mercedes-Benz rounded out the top five, respectively.

In a release, Carousell said “it is not surprising that Toyota is the most dominant automotive brand in the Philippines” as the brand has become the perennial winner of the so-called “triple crown award” — leading in passenger car, commercial vehicle, and total vehicle sales. “Its popularity among second-hand buyers resonates very well as shown by its leading selection on Carousell in 2019.”

According to the platform, the most sought-after sport utility vehicles for 2019 are the Toyota Fortuner, Mitsubishi Pajero, Honda CRV, Toyota Land Cruiser, and Mitsubishi Montero Sport.

“Carousell places a high premium on optimum user experience satisfaction whenever our customers use our platform to search for a vehicle that perfectly suits their specific needs,” shared Carousell Philippines autos head Karl Magsuci. “That is why we always ensure that our listings offer the widest selection of vehicle and price options to a full range of buyers.”

The most looked-up vehicles on Carousell in 2019 are (in order): Honda Civic, Honda City, Ford Mustang, Honda Jazz, and Toyota Vios. Most-searched brands for MPV, AUV, and van models are (in order): Toyota Innova, Hyundai Starex, Toyota Rush, Mitsubishi L300, and Toyota Avanza.

Meanwhile, last year’s top motorcycle searches on Carousell include Yamaha, Vespa, Ducati, Honda, and Harley-Davidson. “Carousell’s automotive platform is ready to cater to the motoring needs of the Pinoy auto lovers, whether they are looking for used or brand new vehicles, parts and accessories, motorcycles, and even trucks and other special vehicles,” Magsuci added.

Carousell claims to make “selling as easy as taking a photo, buying as simple as chatting.” The platform now has over 250 million listings, and is said to be one of the world’s largest and fastest growing marketplaces in Southeast Asia, Taiwan, and Hong Kong. It is backed by Telenor Group, Rakuten Ventures, Sequoia Capital, Naspers, 500 Startups, Golden Gate Ventures, DBS, and EDBI. Carousell features a diverse range of products across a variety of categories, including cars, lifestyle, gadgets and fashion accessories. The free app is free for download on iOS and Apple devices. For more information, visit www.carousell.com and www.carousell.ph.

Gary Valenciano, a Volkswagen Lamando owner, poses with (third from left) Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala and (from left) Ayala Volkswagen dealerships COO Dino Santos, AC Industrials Group President and CEO Art Tan, and Volkswagen Philippines President Felipe Estrella.

New VW ambassador Gary V holds Feb. 22 concert

VETERAN ENTERTAINER Gary “Mr. Pure Energy” Valenciano is the newest brand ambassador of Volkswagen Philippines, and the partnership is set to be presented to the public during VW Philippines’ “We Move You” campaign on February 22 at the Activity Center of Trinoma in Quezon City.

In a release, Volkswagen Philippines described Valenciano as “the most recognizable total performer in Philippine show business. For over 34 years, he has made his indelible mark in the music, recording, film and television industries. Any production or entertainment number that features Gary V in it is guaranteed to inspire audiences to move, and be moved.”

The partnership is said to be a perfect collaboration between the two “movers” and game-changers in their chosen fields. Volkswagen said its “timeless designs, German engineering and performance, and security and safety in its vehicles — embodied in its flagship executive sedan the Lamando — jives in perfect rhythm with Gary V’s versatility, his ability to adapt to the times and performance levels, and his quiet sense of elegance and class that appeal to a wide mass of audiences.”

Coronavirus disrupts China meat imports, food supply during pork shortage

CHICAGO — Coronavirus is disrupting meat shipments to China as the country faces a shortage due to an outbreak of a fatal pig disease, Tyson Foods Inc and US agricultural groups said on Thursday.

An outbreak of African swine fever, which infects only pigs, has decimated China’s herd, pushing Chinese pork prices to record highs and increasing the need for meat imports.

However, coronavirus — which has killed 563 people so far — is keeping consumers and workers at home in China, delaying purchases at stores and restaurants and slowing the unloading of products at ports.

The disruption exasperates Beijing’s efforts to ensure adequate meat supplies and the plans of global companies like Tyson and JBS SA to profit from the shortage. The dual disease outbreaks also highlight the problems facing import-dependant China in its efforts to feed its population.

“There’s been disruptions at the ports,” Tyson Chief Executive Noel White said on a call with analysts. “That has skewed shipments, receivals.”

China has increased meat imports from the United States, Europe and Brazil as African swine fever has killed up to half its pigs since August 2018.

Beijing pledged to increase purchases of US farm goods in an initial trade deal last month, raising traders’ expectations for more pork shipments. China also eased restrictions on US beef imports and in November lifted a ban on US poultry meat shipments.

But coronavirus has clouded the outlook for Chinese demand, White said, as cities have been quarantined. He said Tyson is still shipping meat to China and has orders on its books.

“Once we get past the coronavirus incident, whenever that might be, I do think there is going to be very strong demand,” he said.

Meat is shipped to China in refrigerated containers that must be plugged into electrical outlets once they are offloaded to keep products cold.

Importing companies normally receive containers as they arrive, freeing up space for others. But several Chinese ports are at capacity on space for refrigerated containers and outlets because few receivers are picking them up, said Peter Friedmann, executive director of the Agriculture Transportation Coalition. Shanghai and Xingang have reported 100% utilization of available plugs, he said.

Meat shippers are also scrambling, selling to other countries or shipping to other Chinese ports, Friedmann said.

“Things are really getting bad over there,” USA Poultry & Egg Export Council President Jim Sumner said. — Reuters

PHL shares to move sideways on easing concerns

By Denise A. Valdez
Reporter

PHILIPPINE STOCKS are expected to keep moving sideways this week amid an easing in worries over the novel coronavirus (nCoV) and the start of the release of corporate earnings reports.

The 30-member Philippine Stock Exchange index closed Friday’s session flat with a 0.69-point increase to 7,507.20. However, on a weekly basis, the main index jumped 4.25% to put an end to four consecutive weeks of decline.

“Sentiment went for a roller coaster ride during the week, although optimists won after China’s central bank injected liquidity with the resumption of onshore trades to counter the effects of nCoV,” online brokerage 2TradeAsia.com said in a market note.

The local market closed as low as 7,137.03 on Feb. 3 due to investor worries across the globe over the economic impact of the novel coronavirus. But the PSEi started recovering on Feb. 4 until it reached its highest close in almost two weeks at 7,507.20 on Friday.

“Mid-week, China’s Finance Ministry said they would slash tariffs on 1,717 US items from 10% to 5% starting Feb. 14… The rally was capped towards the end of the week, after death toll from nCoV hit 636 as of Feb. 7, with those infected already at 31,161,” 2TradeAsia.com said.

Value turnover last week surged 89% to an average of P7.238 billion, fuelled by the reentry of offshore investors into the local bourse. Net foreign buying hit P147 million to turn around from the P609-million net foreign selling during the week prior.

“Given most seasoned fund managers’ weak tolerance for nCoV’s unknown risks, expect liquidity to flock into fixed income instruments for now, especially with several listed firms floating their respective corporate notes,” the online arm of F. Yap Securities, Inc. said.

It noted that those that risked investing during last week’s “roller coaster ride” must have gained 5% from Feb. 3’s PSEi close of 7,137.03 and Feb. 5’s close of 7,507.20.

“While it is normal to err on the side of caution for now, it is also worth to consider reaping higher returns, ahead of the second quarter dividend season. Trade a range and position gradually on bargains with cash flows that have historically been resilient,” it said.

Aside from last week’s events such as Chinese central bank’s effort to boost liquidity and the local central bank’s reduction of overnight borrowing rates, 2TradeAsia.com said the PSEi’s catalyst may be the release of corporate earnings in the coming days.

“For now, sentiment would ride on the release of 2019 earnings, as well as recalibration of 2020 outlook, post-nCoV, Taal eruption, even ASF (African Swine Fever),” it said.

It also said hopes of finding a cure to the novel coronavirus soon may be a factor in getting the market back to normal.

2TradeAsia.com put immediate support on the PSEi at 7,400 and resistance between 7,600 and 7,650.

BSP extends transition period for foreign banks’ SBL

THE BANGKO SENTRAL ng Pilipinas (BSP) is extending the transitory period of the current basis for the Single Borrower’s Limit (SBL) of foreign bank branches in a move to boost support for the government’s infrastructure projects.

In a statement on Saturday, the central bank said the Monetary Board (MB) is giving foreign bank branches until Dec. 31 to use twice the level of their net worth as basis for their SBL.

The SBL ensures banks’ credit exposure to a single client will only be at a maximum of 25% of the lender’s net worth in order to trim down risks that may arise from a borrower’s default.

“This will allow foreign bank branches existing prior to Republic Act (RA) No. 10641 to continue supporting the public sector’s initiatives under the Build, Build, Build program,” the central bank said.

The central bank added that the extension of the transitory period will give foreign bank branches enough time to look into their credit exposures and to implement measures in line with the new SBL regulations, even with the reduced base amount to take effect only by next year.

RA 10641 amended the regulatory capital composition of foreign bank branches, removing the “net due to head office/branches/agencies abroad” account, effectively aligning with the minimum capital requirement for local banks of the same category.

“The said account previously formed part of adjusted capital where prudential and/or regulatory limits, including the SBL, are anchored,” the BSP said.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the extension is positive for the financial system.

“The move to allow foreign banks do business in the local scene allows the higher probability of volatility and instability in the system. This will help cushion the domestic market and its players,” he said in a text message.

The BSP moved to allow for a separate 25% credit limit for public-private partnership (PPP) projects in 2010 in the hopes to lure banks into funding infrastructure projects of the government then under the leadership of former President Benigno Simeon C. Aquino, III. The said scheme lapsed by December 2016.

Meanwhile, in 2018, the MB allowed a separate SBL for special purpose entities that take part in implementing major infrastructure projects under the administration of President Rodrigo R. Duterte.

The MB has already approved 12 foreign bank applications since RA 10641 has been implemented in 2014. To date, there are 29 foreign banks that have set up shop in the country. — Luz Wendy T. Noble

How PSEi member stocks performed — February 7, 2020

Here’s a quick glance at how PSEi stocks fared on Friday, February 7, 2020.

 

No coronavirus symptoms among 32 repatriates

NONE OF the 32 Filipinos repatriated from Wuhan, the center of the outbreak of the novel coronavirus from China, showed symptoms of the virus upon arrival, according to the Department of Health (DoH).

“All 32 repatriates landed safely and free of any signs and symptoms, hence, they were all sent to New Clark City for close observation and monitoring for 14 days,” the DoH-Central Luzon Center for Health Development (DoH-CLHCD) said in a statement Sunday.

The repatriated Filipinos, mostly overseas workers, went through three levels of screening before coming home, the DoH explained.

They were initially checked for fever, cough and colds, and only those who were asymptomatic were allowed to be repatriated.

They were monitored during the flight and again checked for symptoms after landing.

Last week, DoH said around 40 to 50 Filipinos were expected to be repatriated.

Should anyone among the repatriates begin exhibiting symptoms, the patient will immediately be transferred to a designated hospital.

The repatriates were flown in through a chartered plane that landed at the Haribon Hangar in Clark Air Base, the Department of Foreign Affairs (DFA) said in a statement.

“Upon their arrival, the Filipinos were safely and swiftly transferred from the plane into their dedicated buses, and brought to the Athlete’s Village in New Clark City in Tarlac which will be their home for the 14-day quarantine period.”

The repatriates were assisted by a ten-member team from the Philippine Consulate General in Shanghai, DFA Office of the Undersecretary for Migrant Workers’ Affairs, and the DoH.

As of Feb. 8, the DoH said the number of persons under investigation in the country rose to 267, of which 230 are admitted, 13 refused admission, 19 have been discharged, while the remaining two have died of other causes.

The Philippines has so far had 3 confirmed cases: a 38-year old Chinese man, who later died; his partner, a 44-year old Chinese woman; and a 60-year old Chinese woman.

MISINFORMATION BATTLE
Meanwhile, the World Health Organization (WHO) on Saturday said they are closely monitoring the spread of misinformation on the coronavirus, which has so far affected more than 34,000 people globally.

“At WHO, we’re not just battling the virus; we’re also battling the trolls and conspiracy theorists that push misinformation and undermine the outbreak response,” WHO Director General Tedros Adhanom Ghebreyesus said in a briefing.

He said the WHO Information Network for Epidemics (EPI-WIN) will be cracking down on misinformation online and already coordinating with social media companies to filter out false data on the virus.

EPI-WIN will also be working to deliver accurate data to a wider audience. — Charmaine A. Tadalan and Gillian M. Cortez

Usec Rio willing to stay at DICT

By Arjay L. Balinbin
Reporter

DEPARTMENT OF Information and Communications Technology (DICT) Undersecretary Eliseo M. Rio, Jr. is not withdrawing his resignation letter despite the bigger role given to him by Secretary Gregorio B. Honasan II.

“No, I am not withdrawing my resignation. It’s really up to the President to accept it or not. I will not withdraw, I will not withdraw,” Mr. Rio told BusinessWorld in a telephone interview on Sunday.

Mr. Rio said the DICT chief signed last Friday a department order designating him to be in charge of the National Broadband Plan Backbone and Free Wi-Fi Internet Access in Public Places.

“I’ve been doing all of these, but when Secretary Honasan came in, he put new people to do these. I requested him if I can get back because nothing seems to move on, so he gave me the chance,” Mr. Rio said.

He added that he has yet to meet with President Rodrigo R. Duterte regarding his resignation letter and if it is turned down, he will be happy to do the job.

“I’m waiting for his call, for his schedule. I talked to Executive Secretary (Salvador S. Medialdea). He told me that the President has not acted on my resignation and he’s scheduling a meeting for me,” Mr. Rio said.

He also explained that there is no issue between him and his “childhood friend” Mr. Honasan.

“I am okay with him. In fact, we are childhood friends. My family and his family, the Honasans and the Rios, are friends…. We were also almost neighbors for 12 years,” he said.

“However, the individuals he brought to the DICT, for some reason, got all the jobs that we have been doing. Maybe, yes (they are better) because they think that there are things that they can improve — and that’s okay. In fact, we welcome them because they are young minds…. But well, nothing seems to move,” he added.

Mr. Rio also said that he has been working in government since his service with the Philippine Army.

“I’m 75 years old. I thought it’s now time to really spend time with my family.”

Initial reports of Mr. Rio’s resignation cited him as saying that it was because of questionable disbursements from the DICT’s “confidential funds.”

But Mr. Rio has since explained that he has “no first-hand knowledge on whatever anomaly” in the department.

“That report did not come from me. What I said is that as far as I am concerned, the DICT (does not have) any confidential or intelligence funds because it is not in its mandate to conduct intelligence activities,” he said in an interview on ANC.

To clarify the matter, Messrs. Honasan and Rio issued a joint statement last Friday saying “the disbursement of the confidential expense was lawful and legitimate.”

“We would like to stress that the confidential expense is a line item allocated under the 2019 GAA (General Appropriations Act) that went through the rigorous process of approval by both houses of Congress and ultimately by the President himself,” they said.

ECoP says mandatory 14th month pay to hurt micro businesses

THE HEAD of the Employers Confederation of the Philippines (ECoP) said the proposed mandatory 14th month pay for workers will affect micro enterprises, but exempting them would be unfair to other businesses.

“The problem is, ang tatamaan ‘yung mga (those who) can’t afford it. Alam mo naman ‘yung mga micro natin have been surviving, maraming nagbubukas, maraming nagsasara. Every year ganun ang storya nila (those that will take the hit are those who can’t afford it. You know how our micro [businesses] have been surviving, many open, many close. Every year, that is their story),” ECoP President Sergio R. Ortis-Luis, Jr. told BusinessWorld in phone call on Thursday when sought for comment.

ACT-CIS Party List Representative Eric G. Yap filed House Bill 6198 on Wednesday, which seeks to require the 14th month pay for both government and private sector workers. A counterpart bill has also been filed at the Senate.

Under the current law, a 13th month pay is mandatory.

Mr. Ortis-Luis noted that large businesses actually “over comply” with the required bonuses for employees, and that it would be unfair if they are the only ones who will be required to comply with another month’s pay.

“Many even give 16th month so ‘di problema ‘yun (that is not a problem), they can afford it. Ang problema (The problem is), when you pass a law like that, hindi naman pupwede na sila lang (it can’t be that they would be the only ones covered).”

He added, “It doesn’t make sense because those who can afford it are already paying even more than that. Those who cannot afford it are the ones who is the problem.”

Micro enterprises constitute 88.45% of total establishments in the country, followed by small enterprises at 10.58%, and medium enterprises at 0.49%, based on Department of Trade and Industry 2018 data. — Genshen L. Espedido

Capas mayor gives support to use of NCC as quarantine site

CAPAS Mayor Reynaldo L. Catacutan has reversed his stance on the use of the Athletes Village at the New Clark City (NCC), located in his town, as quarantine site for Filipinos repatriated from Wuhan, the center of the outbreak of the novel coronavirus. In a statement posted on social media Sunday, he apologized for the local government’s opposition to the plan. Last Friday, the Capas municipal council passed a resolution expressing their opposition, citing threat of contamination among residents. “Now that the national government has finally decided to use Capas as the quarantine area for our returning kababayans (fellow-Filipinos), Capas can only move forward and throw its all-out-support to this nationally-led endeavour,” Mr. Catacutan said. — Gillian M. Cortez

City gov’t considers extended Baguio Blooms expo as main Panagbenga events postponed

THE BAGUIO City government is “inclined” to approve the proposed extension of the Baguio Blooms Exposition and Exhibition by another month in consideration of the impact of the novel coronavirus threat, Mayor Benjamin B. Magalong said in a statement posted on Saturday. Mr. Magalong said the “city government understands the plight of the exhibitors” and that an extended operation will allow them to “recover their investments in the activity,” which is one of the highlights of the annual Panagbenga Flower Festival. The Blooms expo opened February 1 and originally set until March 8. The festival’s opening parade on Feb. 1 was cancelled to avoid the risk of the coronavirus spread.

POSTPONED
Meanwhile, the mayor also announced Friday the decision to postpone the festival’s main events scheduled Feb. 29 and March 1 following consultations with health authorities and stakeholders. The Cordillera Administrative Region office of the Department of Health (DoH) reported that as of Feb. 6, there were four persons under investigation (PUIs) for coronavirus, all confined in a health facility. DoH Regional Director Amelita M. Pangilinan said in a press briefing last Friday that the patients, three female and one male aged two, 27, 23 and 57, are in stable condition. They are Filipinos, unrelated, with two from Benguet, and one each from Baguio City and Mt. Province. They all have recent travel history to Hong Kong as tourists. Mr. Magalong also assured tourists that the local government as well as the Hotel and Restaurants Association of Baguio have put in place preventive as well as response measures for the virus threat. Ricardo B. Runez, Jr., director of the government’s Baguio General Hospital and Medical Center (BGHMC), said all local hospitals have been readied to handle suspected coronavirus cases. BGHMC is also one of the facilities that is expected to receive next week a machine that can verify the virus affliction within one hour while parallel testing at the Research Institute for Tropical Medicine is being conducted. — MSJ

Bohol is latest stop for Cebu Pacific’s sustainable tourism campaign

THE ECONOMY of Bohol — home to the Chocolate Hills, tarsier, white-sand beaches, and various cultural and heritage sites — has been driven largely by tourism. And that comes with the strains to the island province’s environment. “Tourism is the number one source of revenue in the province… In fact, the impressive drop of poverty incidence of 50.2% in 2000 to 15.2% this year is primarily attributed to the growth of our tourism industry,” said Provincial Administrator Kathyrin D. Piquinto in an interview Friday during the launch of Cebu Pacific’s campaign on sustainable tourism. Ms. Piquinto said Bohol is fortunate to have various and unique natural attractions, but it must also continuously take measures to ensure their protection and avoid the pitfalls of overtourism. “Bohol is one of the best island-destinations in the world, and one of CEB’s (Cebu Pacific) most popular destinations. There is still time to preserve its beauty by flying in tourists who are aware of the impact they create when they travel,” said Candice A. Iyog, the budget airline’s vice president for marketing and customer experience.

BALANCE
The company’s “Juan Effect” campaign, introduced earlier in Siargao and Boracay, engages the local community, local government, and tourism stakeholders in educating travelers about their responsibilities as tourists. In Bohol, the program was started with the installation of signages at the most visited spots to remind visitors to take care of the island’s natural beauty. The signs, made in part using wood from old boats left as trash along Panglao’s beaches, are in English, Korean, Japanese, Chinese. “We acknowledge that tourism can be a great economic driver creating jobs and opportunities for people across all demographics. But we also recognize that this can have unintended consequences like pollution, environmental degradation, disregard local cultures, among others,” Ms. Iyog said. Tourism Undersecretary Arturo P. Boncato Jr. said the Department of Tourism’s goal is finding the balance between increased arrivals and sustainable tourism. He said, “We are now faced with this challenge of a balance of increasing tourists while we are protecting the environment… We would like to increase that (arrivals) but we would like to bring you to destinations that are ready for you.” — Maya M. Padillo

Surigao, Davao provinces settle boundary dispute

THE PROVINCES of Davao Oriental and Surigao del Sur have finalized the settlement of a two-decade old boundary dispute in the towns of Boston and Lingig. Officials of the two provincial governments, in a joint session held in Davao City last week, issued a common ordinance defining the political boundary in the contested area. “The new political boundary shall be drawn according to the output map utilizing the coordinates in delineating the area to be ceded to the Province of Davao Oriental. Provided, however, in the delineation process, the existing build-up areas belonging to Barangay Rajah Cabungsuan of Lingig (under Surigao del Sur) shall be excluded in the compromise agreement,” a provision in the ordinance reads. Davao Oriental Vice Governor Niño Sotero L. Uy Jr., in a press statement Thursday, explained that part of a property that used to belong to Surigao del Sur “will now become part of the municipality of Boston (in Davao Oriental).” The exception for built-up portions is intended to ensure “that there will be no confusion in the part of the communities settling in the areas,” he added. With the settlement, 2,600 hectares of the 6,000-hectare disputed land will now be under Davao Oriental’s jurisdication.

IRA HIKE
Mr. Uy said this means the province will be getting an increase in its Internal Revenue Allotment (IRA), the share that local government units (LGU) get from the national fund. The IRA is computed based on the LGU classification, land area, and population. “There will be adjustments in the IRA subject to computation by the Department of Budget and Management and the Department of Finance. But definitely there will be an increase in the IRA for Davao Oriental,” he said. The dispute started about 20 years ago when Surigao del Sur questioned the authority of Davao Oriental after then governor Rosalind Y. Lopez issued several small-scale mining permits for an area it claims to be under Lingig town. In 2015, then governors Corazon N. Malanyaon of Davao Oriental and Johnny T. Pimentel of Surigao del Sur, both of whom are currently congressional representatives, agreed in principle to settle the dispute. — Carmelito Q. Francisco

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