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PAL suspends charter flights to China

Flag carrier Philippine Airlines (PAL) on Thursday announced the suspension of its charter flights between Kalibo,Aklan and three cities in mainland China amid the coronavirus outbreak.

PAL said its decision to suspend its charter flights between Kalibo and Nanjing, Hangzhou and Shanghai is in line with the travel restriction being imposed by the government of the People’s Republic of China.

“Charter flights between Kalibo and parts of China (Nanjing/ Hangzhou / Pudong Shanghai) have been suspended, as the Chinese authorities implemented precautionary measures to restrict outbound tourist travel from mainland China,” the flag carrier said in a statement on Thursday.

“We continue to maintain our scheduled flights between Manila and Beijing, Pudong Shanghai, Guangzhou, Jinjiang, Xiamen, Hong Kong and Macau. We will advise if there are any changes based on our daily assessment of the situation and the slowdown in travel from China,” it added.

PAL Spokesperson Cielo C. Villaluna told BusinessWorld last Tuesday that the impact of the coronavirus outbreak on their operations was “not yet significant.”

PAL, which operates 69 weekly flights to and from China, has advised its passengers to postpone their flights if they feel unwell amid coronavirus outbreak.

Passengers with flights to China are also given the option to rebook and refund their tickets until Feb. 29.

The coronavirus outbreak started in Wuhan, China, with the death toll rising to 170, Reuters reported yesterday.

Some 7,711 people in China were also infected, on top of the 104 confirmed cases in other countries: Thailand, Japan, Hong Kong, Singapore, Taiwan, Macau, Australia, Malaysia, United States, France, South Korea, United Arab Emirates, Germany, Canada, Vietnam, Nepal, Cambodia, Sri Lanka and Finland. — Arjay L. Balinbin

Drivers of growth

As trucks and utility vehicles continue to serve business operations and passenger transportation, the local commercial vehicles (CV) achieved steady growth last year, driving the recovery and progress of the automotive industry all throughout.

The joint figures of Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Truck Manufacturers Association (TMA) indicated growth in the industry’s sales every month in 2019, apart from the 15% decrease in January and a 2.4% drop in August. Nonetheless, each month indicated the prominence of CVs.

February’s figures tallied 67.82% share from CVs, or 17,856 units, although 3% lower than January’s CV sales. When auto sales picked up in March, CVs kept leading with a larger 71.36% of total sales. This makes the segment rising by 3.7% to 59,216 vehicles in the first quarter from 57,130 units in 2018.

April, which had very little increase in sales (0.8%), saw CVs slightly decreasing with 70.31% of the car sales. The following month saw auto sales picking up once more, with CVs contributing 70.79% of the total. With sales recovering in June, CV sales grew by 3.9%, driven by 18.1% hike in light commercial vehicles (LCV) sales in contrast to a 33.1% drop in Asian utility vehicles (AUV) and 17.6% decrease in light trucks, among others.

Also, by that time, the year-to-date sales of CVs increased by 5.3% to 121,717 units from 115,606 vehicles in 2018’s first half. LCV sales increased by 23.1% to 98,783 units from 80,248 and light trucks were up by 8.8% to 3,778 vehicles from 3,473. AUV, however, dropped by 42.9% to 16,147 vehicles from 28,279.

Likewise, AutoIndustriya.com, in consolidating figures from CAMPI, TMA, and Association of Vehicle Importers and Distributors (AVID), reported positive growth within the commercial vehicles segment in the first half of 2019. In both first and second quarters, the CV segment took a larger share of sales. From 65,440 units in Q1, sales gained 2.88% to 67,330 units in Q2. Hence, the first half of 2019 saw the CV dominating the market by 67.52%, with 195,066 units sold.

CAMPI and TMA account for 89% of the industry’s overall sales projection, while AVID accounts for 11%.

At that time, CAMPI and TMA saw the industry on the verge of recovery and stability. “We remain very optimistic that the local auto industry is already on a path of steady growth after we conclude the first half of the year on a positive note,” CAMPI President Rommel R. Gutierrez was quoted as saying in a BusinessWorld report last July.

That steady growth, along with the constant domination of CVs, was definitely observed in the following months as CAMPI and TMA tracked the segment’s continuing lead in the automotive industry. Albeit car sales dropping after seven months, CVs accounted for 70.3% of the total shares in August. As the sales bounced back in the following months, CVs got 69.45% of the total sales in September and 70.69% in October.

In November, when CAMPI and TMA marked the biggest monthly sales (34,465 units) in 2019, CVs showed continuous growth, with 72.29% of the market share. The sales even grew further by 8.1% before the year came to a close.

Overall, a “slightly recovered” automotive industry last year was driven by the CV market, which accounts for 69.5% of the market. The annual car sales in 2019 grew by 5% to 260,744 vehicles from 248,390 in 2018. Within the CV segment, LCVs and light trucks lead with 11% and 3.9% increases, respectively, in contrast to the lower sales of AUVs, trucks, and buses.

“The year 2019 has been challenging for the industry due to various internal and external factors. Thankfully the industry’s collective efforts, supported by sustained economic growth, have paid off. We will not rest on our laurels as we aim for further growth in the coming months, and hopefully for the whole of 2020,” Mr. Gutierrez was quoted as saying earlier this January.

In light of this progress in the local CV market, the global counterpart is projected to undergo a technological transformation brought by “new types of powertrains, rapid progress in autonomous driving technology, and the explosion in connectivity”, according to research by the Boston Consulting Group released last October on its website.

The global management consulting firm tallied 120 million units on the road worldwide in 2018, and it found 11.4 million LCVs and 3.3 heavy-duty or medium-duty trucks sold that same year, leading them to conclude that CV sales are slowly growing worldwide, and is expected to grow by 2% annually through 2030.

“Overall industry growth will depend on smaller markets throughout the rest of the world, where the modernization of road networks and commercial transportation is an ongoing project,” BCG’s study read.

The research also expects earnest adoption of new-energy vehicles, powered by technologies such as liquefied natural gas, hydrogen fuel cell, and battery-powered electric, which “will most likely become the most mainstream of the three technologies globally.” — Adrian Paul B. Conoza

A versatile partner for your small business

Among the most difficult challenges to overcome as a small business owner is coming up with the capital to run an operation. Not only do they have to deal with the expenses of labor, materials, and overhead, a lot of the time starting businesses need some form of reliable transportation.

People and goods need to travel, and vehicles suited for the wear and tear of commercial operations are expensive.

Which is part of why many Filipinos are choosing more versatile commercial vehicles lately. According to a joint report from the Chamber of Automotive Manufacturers of the Philippines, Inc., and Truck Manufacturers Association (TMA), 369,941 vehicles were sold last year, up 3.5% year on year, mainly due to improved sales of light commercial vehicles and light trucks.

The report showed that commercial vehicle sales for 2019, which accounts for 69.5% of the market, grew 5% to 260,744 vehicles from 248,390 in 2018. An 11% and 3.9% rise in sales of light commercial vehicles and light trucks, respectively, offset the lower sales of Asian utility vehicles or AUVs (-15.4%), trucks and buses.

It is not hard to see why. A pickup truck is designed for practicality and function, offering versatility and power for all manner of use.

As automakers have discovered new and more effective ways of reducing the fuel consumption of vehicles, larger, heavier vehicles such as trucks are more efficient than ever. Modern designs, fuel-saving technologies integrated in smaller displacement engines, as well as advanced structural materials to reduce overall weight all have been leaps towards making a more economic vehicle.

Meanwhile, the size of trucks are proven to be a boon on the road, at least in terms of safety. Aside from holding more mass between a passenger and the hostile elements of the road, trucks also offer bigger crush zones, and a heavier weight to keep it on the ground in cases of crashes.

According to the Insurance Institute for Highway Safety (IIHS) in the US, a heavier vehicle will typically push a lighter one backward during the impact, putting less force on the occupants of the heavier vehicle and more on those in the lighter vehicle. The organization’s fatality data even goes as far as to show the mortality rates between passengers of lighter vehicles and heavier ones. The lowest 2015 death rate by vehicle type is for very large SUVs: 13 deaths per million registered vehicles. The highest is for mini cars: 64 deaths per million registered vehicles.

Of course, none of this is at the cost of power. Trucks are dependable in a broad range of terrain. In a flood-prone country like the Philippines, it pays to have a bigger vehicle to push through adverse conditions. The higher stance can allow trucks to operate in roads sedans cannot, offering a dependable investment for the days when you really need some semblance of safety. Trucks are also better off-road, making them better at navigating unpaved roads in the provinces or exploring new places.

As both a family vehicle and a business vehicle, trucks provide spacious interiors, fuel economy, and dependable performance. A trunk can serve both as a means of logistics or simply as a comfortable vehicle for family vacations, making them the perfect asset for business owners on a budget. — Bjorn Biel M. Beltran

Infra spending seen recovering

By Beatrice M. Laforga
Reporter

INFRASTRUCTURE spending would probably recover this year with a national budget already in place, after lagging in the 11 months through November, the Budget department said on Thursday.

Infrastructure expenditures jumped 28.6% year-on-year to P80.9 billion in November, even as the 11-month tally fell 2.6% to P709.4 billion, data from the agency showed.

“We see the economy firing on all cylinders this year with substantially higher government spending on infrastructure and social services, stronger domestic consumption responding to a benign inflation, and a revitalized agricultural sector,” Finance Secretary Carlos G. Dominguez III said in a speech at an event in Makati City yesterday.

“Surely, the public spending side of the growth equation will spur economic activity over the next few months,” he added.

Budget officials traced the spending surge in November to payments made for completed and partially completed infrastructure projects of the Public Works and Transportation departments. Projects covered included roads, bridges, flood control structures, sea and airports.

Payments of the Transportation department for right-of-way acquisitions contributed to higher spending, the Budget department said in a report.

Construction of buildings for the Land Transportation Office and Land Transportation Franchising and Regulatory Board also lifted spending during the month, it said.

“The surge may have come from the government’s spending catch-up plan,” UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

“The government has been trying to disburse the 2019 national budget since its late passage into law last April 2019,” he added.

The Budget department report traced the 11-month lag in infrastructure spending to the delay in the approval of last year’s national budget and an election-related spending ban.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the economy would probably grow by 6.4% to 6.8% this year as investments pick up.

“We still have more drivers,” he said in a speech at an insurance event yesterday, noting that investments or capital formation accounts for about 30% of the Philippine economy.

“So that would be another surprise that could come, because loan growth only started to pick up,” he added.

First-quarter gross domestic product growth (GDP) could quicken by as much as 7%, he said, noting that this year’s P4.1-trillion national budget had been enacted as early as Jan. 6.

“It would be a factor on how fast the government would catch up on spending,” Mr. Ricafort said, referring to the first-quarter infrastructure spending performance.

The economy grew by 5.9% last year, slower than expected and missing the government’s 6% to 6.5% goal. It was also slower than GDP growth of 6.2% in 2018.

Growth last year broke the seven-year streak of at least 6%, and was the slowest in eight years.

“We still consider 5.9% (growth) relatively decent and resilient,” Mr. Ricafort said, citing government underspending and the effects of the US-China trade war.

Socioeconomic Planning Secretary Ernesto M. Pernia earlier said a percentage point was lost due to the delayed passage of last year’s national budget, which left government programs and new infrastructure projects with no funding.

Projects were further delayed by the 45-day public works ban before the midterm elections in May 2019.

BSP eyes at least 50 bps policy rate cuts this year

THE CENTRAL BANK is still looking to cut rates by at least 50 basis points (bps) this year, its chief said on Thursday.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said while the central bank will remain “data dependent,” it still has “a long way to unwind” the policy tightening it did in 2018 to quell inflation.

Asked whether the central bank will still cut rates at least by 50 bps as he said in December, Mr. Diokno told reporters at a briefing held at BSP on Thursday: “50 basis points this year? Yes. Still.”

Mr. Diokno has also said a 25-bp cut is possible as early as this quarter.

The BSP Monetary Board will hold its first policy meeting for the year on Feb. 6. Its other review for the quarter is on March 19.

Benchmark rates currently stand at 3.5% for the overnight deposit facility, four percent for overnight reverse repurchase and 4.5% for overnight lending following 75 bps worth of reductions implemented last year.

These cuts partially reversed the 175 bps worth of rate hikes in 2018.

The economy expanded by an eight-year low of 5.9% last year, missing the low end of the government’s 6-6.5% gross domestic product (GDP) growth target for 2019.

Mr. Diokno said the BSP’s policy decision next week will mainly depend on inflation and other data and need not follow the US Federal Reserve’s move to keep rates steady at their first review on Jan. 28-29.

“The reading right now is that maybe the Fed might cut another 50 basis points. Maybe one cut in the middle of the year and another one at the end of the year. That’s the new reading… Maybe we will do our own analysis on inflation,” he said.

He added that being data dependent means not only assessing previous data but also projections.

“[It] looks like petrol prices will continue to go down. [It] looks like food inflation will continue to go down. So let’s see,” he said.

IMPACT FROM TAAL, VIRUS
Meanwhile, the central bank said its initial assessment showed Taal Volcano’s eruption could have a minimal impact on gross domestic product growth in the first quarter.

“So our estimate is it’s between P4.3 billion to P6.7 billion. The total economic GDP is around P20 trillion,” Mr. Diokno said. “The impact of the eruption could result in the slightly lower growth of output in the [Calabarzon] Region for the first quarter of 2020.”

“While we do not expect this to substantially dampen the country’s growth prospects for 2020, we are mindful that the threat of the more dangerous eruption has not fully dissipated,” he added.

The Philippine Institute of Volcanology and Seismology lowered Taal Volcano’s alert status to level three from four on Jan. 26. This has allowed some of about a million people displaced to go back to their hometowns.

On the other hand, the central bank said they are still looking into the impact of the spread of the novel coronavirus from China to the country as they have mostly seen its effect on the Chinese economy, BSP Monetary Policy Sub-Sector Officer-In-Charge Dennis D. Lapid said.

“But an emerging assessment is that it could be short-lived compared to previous similar disease outbreaks. This time around many of the governments have already learned… Authorities in the region are much better placed…,” Mr. Lapid said.

He added that what complicated the situation is that the spread of the virus coincided with the Lunar New Year, when a lot of people in China travel.

Mr. Diokno said a part of the response of the Chinese government to the outbreak is to extend the holiday.

“I think unlike the previous incidents, the Chinese government is in a better position to contain it and I think it’s less fatal,” Mr. Diokno said.

The Health department on Thursday confirmed the first case of the novel coronavirus in the Philippines. — L.W.T. Noble

Virus outbreak to have short-term effect on tourism sector — Pernia

THE NOVEL CORONAVIRUS (2019-nCoV) outbreak is likely to have a short-term impact on the country’s tourism sector, according to economic managers.

This as health officials on Thursday reported the first case of the new coronavirus in the Philippines.

“I think it’s likely to just have a short-term impact because given the measures being done to minimize the (spread of the coronavirus)… It shouldn’t take long for that to have an effect on the economy,” Socioeconomic Planning Ernesto M. Pernia said when asked about the outbreak’s potential impact on tourism during a press conference on Thursday evening.

To curb the spread of the virus that has now killed 170, China announced a ban on outbound organized tour groups.

According to data from the Department of Tourism (DoT), China was the second-highest source of foreign tourists during the January-November period last year, accounting for around 22% of the 7.5 million visitors in the Philippines.

Finance Secretary Carlos G. Dominguez III, however, said it is still too early to come up with projections on the decline in tourism revenues due to the coronavirus outbreak.

Mr. Pernia pointed out there may be savings on foreign exchange, as some Filipinos may choose to forego overseas travel.

“Maybe to some extent we will be saving on foreign exchange since the travel of Filipinos, to China for example, will be limited, will be curtailed and also to other Asian countries. I think Filipinos will be more careful in going to these countries so there will be, they won’t be spending foreign exchange,” he said.

In a report on Thursday, Moody’s said several Asian-Pacific economies are “vulnerable to a decline in tourism from China.”

“The outbreak will take a toll on tourism sectors elsewhere in the region, and places outside the region that receive tourists from China… The fear of contagion could dampen consumer demand and affect tourism, travel, trade, and services in Hong Kong, Macao, Thailand, Japan, Vietnam and Singapore, which have been the top destinations of Chinese tourists in recent years,” Moody’s said.

“We expect the risk of potential negative spillovers to domestic tourism in neighboring countries to be higher than during SARS because Chinese nationals now make up the largest share of visitors to other Asia-Pacific economies,” it added.

S&P Global Ratings, on the other hand, noted that the coronavirus outbreak is “likely to hit travel and consumption activities.”

“In a scenario of widespread infection, it could materially weaken economic growth and fiscal positions of governments in Asia,” S&P said in a report. — Beatrice M. Laforga

Policy makers fret over global growth risks from spread of Wuhan virus

WASHINGTON/TOKYO — A rapidly spreading virus outbreak in China is emerging as a potentially major new risk to the global economy and leaving policy makers, still grappling with the impact of the Sino-US trade war, fretting over the widening fallout.

The potential effects of the spread of the coronavirus, which has killed 170 in China since its detection early last month, took center stage in US Federal Reserve Chair Jerome Powell’s news conference on Wednesday.

“China’s economy is very important in the global economy now, and when China’s economy slows down we do feel that — not as much though as countries that are near China, or that trade more actively with China, like some of the Western European countries,” Mr. Powell said.

Japanese Prime Minister Shinzo Abe also voiced concern on Thursday over the potential damage to Japan’s economy, which is heavily reliant on China as a production and market base.

“I would like to scrutinize the economic impact, including that from the hit to tourism,” Mr. Abe told parliament.

Zhang Ming, an economist at the Chinese Academy of Social Sciences, a top government think tank, projected the outbreak would cut China’s first-quarter growth by one percentage point to 5% or lower.

China has imposed travel restrictions and shut businesses to contain the outbreak, but has not quelled rising concern among companies and governments across the world, some of whom are taking swift action.

A plane of Japanese evacuees from the Chinese city of Wuhan, the epicenter of the outbreak, arrived in Tokyo on Thursday. New Zealand and Indonesia are also preparing to evacuate their citizens.

Airlines including British Airways, United Airlines and Lufthansa are cutting or suspending flights. Starbucks has closed more than half its cafés in China and Walt Disney shut its resorts and theme parks in Shanghai and Hong Kong.

In the Philippines, health officials have confirmed the first case of the new coronavirus in the country. A 38-year-old Chinese woman, who arrived in the country from Wuhan, China, on Jan. 21, tested positive for the novel coronavirus, Health Secretary Francisco Duque told a news conference. (Read related story “First virus strain case confirmed; DoH ‘on top’ of it” on S1/10)

“Apart from the risk to human lives, it is likely to hit travel and consumption activities. In a scenario of widespread infection, it could materially weaken economic growth and fiscal positions of governments in Asia,” S&P said on Thursday.

Asian stocks sank on Thursday as the death toll from the virus rose and more cases were reported around the world. Yields on benchmark 10-year US Treasuries also hit a three-month low of 1.5600% as investors sought the safety of government bonds.

“We expect the risk of potential negative spillovers to domestic tourism in neighboring countries to be higher than during SARS because Chinese nationals now make up the largest share of visitors to other Asia-Pacific economies,” Moody’s said on Wednesday.

“The timing is particularly bad for Japan as it seeks to rebound from the dip in consumption, and presumably real GDP growth, in the last quarter of 2019 following a sales tax hike.

Analysts are comparing the current coronavirus outbreak to the 2002-2003 Severe Acute Respiratory Syndrome (SARS) epidemic, which led to about 800 deaths and slowed Asia’s economic growth. Many say the impact on global growth could be bigger this time, as China now accounts for a larger share of the world economy.

The fallout from the epidemic casts a shadow over the Bank of Japan’s projection that global growth will pick up around midyear and help Japan’s economy sustain a moderate recovery.

China is Japan’s second-largest export destination. The Chinese make up 30% of all tourists visiting Japan and nearly 40% of the total sum foreign tourists spent last year, an industry survey showed. — Reuters

Sarah Brightman returns to PHL

ENGLISH soprano Sarah Brightman’s HYMN in Concert tour will make a stop in the Philippines on June 10 at the Smart Araneta Coliseum. This marks Ms. Brightman’s first visit to the country after more than 15 years.

“I’m so excited to share this album with everyone. Hymn is excitingly eclectic, encompassing many different styles, and I’m looking forward to performing the new songs on my world tour,” Ms. Brightman said in release.

The last time Ms. Brightman was in Manila was for her 2004 Harem tour.

The album, released in 2018, is described as “mystical” and “uplifting” and includes songs like “Fly to Paradise,” “Miracle,” “Sky and Sand,” and the titular “Hymn.” It closes with a new rendition of “Time To Say Goodbye,” her signature duet with Italian opera singer Andrea Bocelli.

This is her 15th album. Her concert tour of the same name has so far toured five continents since 2018 and has had over 125 shows.

“Every project I’ve done has come from an emotional place, and I wanted to make something that sounded very beautiful and uplifting. To me, ‘hymn’ suggests joy — a feeling of hope and light, something that is familiar and secure, and I hope that sentiment resonates through the music,” Ms. Brightman said in the release.

Born in 1960, Ms. Brightman started her career as a member of dance troupe Hot Gossip but eventually debuted on London’s West End in 1981 in Cats. She was the first Christine Daaé in Andrew Lloyd Weber’s Phantom of the Opera which premiered in 1986.

Known as one of the first artists to do classical-crossovers, Ms. Brightman’s career has seen her sell more than 30 million albums globally and she has racked up more than 180 gold and platinum awards in over 40 countries. Her duet with Mr. Bocelli in 1996, “Time to Say Goodbye,” became an international hit, selling 12 million copies worldwide.

Ms. Brightman has performed in major events such as 2007’s Concert for Diana, the opening of the 1992 Barcelona Olympics, and the opening of the 2008 Beijing Olympics.

Tickets to Sarah Brightman’s HYMN in Concert go on sale on Feb. 1, 10 a.m. at TicketNet.com.ph. For more information, call 8911-5555. Ticket prices range from P1,060 to P21,200. — Zsarlene B. Chua

PCC renews call to review foreign equity limit in public services

By Jenina P. Ibañez, Reporter

THE Philippine Competition Commission (PCC) is renewing its recommendation to amend the law that limits foreign equity in public services.

“During this time it is probably time to revisit the definition of public service to allow other players to come in. That’s what we are doing,” PCC Commissioner Annabelle C. Asuncion said in a press conference on Thursday.

The PCC in 2017 first backed amendments to the Public Service Act, including removing the foreign equity cap on the telecommunications and transportation industries.

The industries, which are considered public utilities, limit foreign ownership of the public utility company to 40%. The remaining 60% must be owned by Filipino citizens.

The law that defines the country’s public service utilities was first passed in 1936.

Ms. Asuncion told reporters after the press conference that the 60-40 requirement limits players that can enter a market.

“From the competition perspective, limited. Limited ‘yung possible players who will come in. Sinasabi nga namin in a globalized economy mas gusto mo talaga na maraming players (We said that in a globalized economy it is preferred to have numerous players),” she said.

The PCC’s position notes that public utilities should include only four sectors: electricity (and its transmission), gas or petroleum distribution, water distribution, and sewerage pipeline systems.

Sectors outside of this, PCC believes, should not necessarily be covered by the 60-40 rule.

“The point is, kailangan i-revisit ‘yung (there needs to be a revisit of the) definition ng public service. For example, telco — is it still a public service that requires 60-40, or is it a service that you can open up to foreign entities?”

The four suggested public utility sectors, she said, would create a natural monopoly.

Citing sewerage systems as an example, Ms. Asuncion said that competition would be inefficient for the sector.

“For it to be efficient for a player, for a business to enter into, kailangan niya (it would need to) mag-invest so much in terms of capitalization that for them to be able to recover their investment, they would have to have a wider scope dun sa pwede nilang pag-operate-an (in where they can operate),” she said.

Natural monopoly ‘yan. Competition will not be efficient because if there are two players providing that kind of service within a small geographic area for example, they would probably die. Malulugi sila (They will lose money).”

PCC in an e-mail noted that the current bill to amend the act filed in the 18th Congress has taken note of their recommendations since 2017, “with some adopting our recommendations and adding that the PCC should be included in the technical team along with NEDA to determine whether other industries would be classified as public utilities.”

The House of Representatives in September began tackling House Bill 78, which if passed into law would give both the PCC and the National Economic and Development Authority power to recommend the public utility classifications of industries.

The criteria for the recommendation includes that the service is necessary to the public, a natural monopoly, regularly distributes the commodity service to the public, is necessary for the life and occupation of residents, and that the commodity or service is obligated to provide adequate service to the public on demand.

The bill is currently pending plenary approval in the House of Representatives and is pending at the committee level at the Senate.

Commissioner Johannes Benjamin R. Bernabe said that the companies still need to be regulated even if equity limitations are relaxed.

Ms. Asuncion added those companies in industries no longer considered public utilities would still be regulated by the relevant sector regulator.

Unholy Mother, Our Lady of Limitless Lies

By Carmen Aquino Sarmiento

MOVIE REVIEW
The Kingmaker
Directed by Lauren Greenfield

And no wonder, for even Satan disguises himself as an angel of light. — 2 Corinthians 11:14

THE MUCH-AWARDED documentary The Kingmaker, by Lauren Greenfield, opens with the octogenarian Imelda Romualdez Marcos handing out crisp 20 peso bills to the clamorous rabble, through the purposely open window of her van. It was 2014, and Mrs. Marcos was in her latest political incarnation as the representative of Ilocos Norte-Congressional District 2. (When she turned 90 last year, her nephew Angel Barba, the son of President Ferdinand Marcos’ youngest sister Fortuna Marcos Barba, took over this seat.) But even then, the groundwork was being laid for the ascendancy of her only son, Ferdinand “Bongbong” Marcos, Jr.

That was a relatively quiet period in the life of “The Beautiful One,” as the assassinated Benigno “Ninoy” Aquino, Sr. called her. She had been on the world stage, hobnobbing with the mightiest 1%, since the mid-1960s. Through the years, she has been the subject of countless visual artists, of playwrights Carlos Celdran and David Byrne, and another documentarist Ramona Diaz (Imelda, 2003). Greenfield speculates that it was during this lull that Mrs. Marcos might have found the attention and the prospect of being the subject of yet another documentary, a welcome diversion.

Savvy and wily as ever, Mrs. Marcos relentlessly milks her every on-screen moment to present her singular version of reality. This is generally a comparison of what it was like, in the time of Marcos (Intra-Marcos), and apres Marcos, le deluge. A lie repeated often enough, becomes the truth. Eg., Intra-Marcos, one did not see beggars or poverty in the Philippines, but only her ostentatious love, and bountiful bodacious beauty. That was probably because shanty towns were hidden behind high whitewashed fences, and critics of their regime were brutally silenced, especially during Marcos’ Martial Law. Nonetheless Mrs. Marcos would have viewers believe that the Marcoses are victims too. The woman is a player, just like a fat ginormous old cat toying with a hapless mouse. In a way, it is she who let’s us see what she wants us to see. Such is Mrs. Marcos’ formidable charisma that Greenfield herself would only say that she was an “unreliable narrator,” instead of naming what she really is: a liar. Pains are taken to juxtapose documentary footage to dispel Mrs. Marcos’ relentless historical revisionism. But words have never inflicted lasting damage on Mrs. Marcos as the impossibility of exacting an execution of judgment of her conviction have shown.

There are times when the artifice slips. She frets about being unable to access her 170 bank accounts, and, while protesting her family’s innocence, gloats at how she smuggled out a Pampers-box full of precious jewels when they were so unceremoniously “kidnapped” in 1986. She slyly notes that not being taken too seriously can work to one’s advantage. The most memorable meme is her unabashed declaration that “Perception is real, the truth is not.” It’s the story of our time.

But how many of the multitudinous apres-Marcos generations (X,Y, Z and i) will see her for what she really is? Grace notes of sobriety and truth come in painful soundbites through the balancing and harrowing interviews of Marcos’ Martial Law survivors, such as Etta Rosales and May Rodriguez who shared details of their detention, torture, and sexual assault at the hands of Marcos state agents. The writer Jose “Pete” Lacaba breaks down as he recalls the mutilation and salvaging of his brother Emman, as well as his own ordeal.

How the powerful manipulate reality was graphically illustrated in Mrs. Marcos’ transformation of Calauit into her family’s private wildlife preserve. It was the exceedingly strange and surreal existence of Calauit which had initially piqued Greenfield’s curiosity. Helpless ruminants — giraffes, gazelles, zebras from the Kenyan savannah — were illegally imported to be captive targets in the Marcos’ personal shooting gallery. Meanwhile the indigenous inhabitants were driven out of their huts and farms. After generations of in-breeding and without an attending veterinarian, the Calauit giraffes have been observed to have shorter necks. Apres Marcos, some of the original displaced Calauit inhabitants made their way back, but the zebra are a bane to their swidden cultivation plots.

Mrs. Marcos pours out the pathos with the measured and mastered cadences of a practiced performer. It may be the artistry of the grifter, the dissembler and the con, but, like all illusion, it is magical and riveting when well done. A horde of snappy servants, sycophants, and security men are the supernumeraries setting the stage for her every calculated move and elegantly cadenced utterance. She proudly presents as the Cinderella-orphan who made good, although publicly, she has never confirmed the published accounts of her barefoot Dickensian childhood. Having lost her mother Remedios Trinidad at a tender age (cue the violins), she asserts and reiterates ad nauseum, her selflessly transcendent role as our nation’s noble mother. In a spasm of gender-fluid introspection, she muses that Ferdinand E. Marcos was not merely husband but also a Svengali-like mother to her. As the 2016 campaign draws nigh, the P20 bills are replaced by stacks of icy blue thousands.

In the early stages, The Kingmaker production crew had extraordinary access, even shooting in Mrs. Marcos’ lavish Makati apartment where several European masters were blatantly on display, including an unlikely Michelangelo which the curator Marian Pastor Roces snorts has a provenance so shady, that some unscrupulous art dealer must have laughed all the way to the bank. Former Presidential Commission on Good Government Commissioner Andres Bautista sent a raiding team to seize these obvious fruits of ill-gotten wealth, but they had been replaced by framed portraits of the Marcoses. Poor Bautista plays it straight, and ruefully notes that since he was the Commission on Elections Commissioner when Leni Robredo narrowly won the vice-presidency against all odds, he had to go into self-exile in Oklahoma.

Watching Mrs. Marcos is as fascinating as the indomitable predators in nature documentaries whose evolutionary biology dictates that they propagate their genes unto the succeeding generations. Her limbic-brained will to power is manifested in her stony determination to see Ferdinand Jr. ensconced in the Palace at any cost. That is why Mr. Bautista must watch his back. Even in her dotage, Mrs. Marcos is not giving up. It must gall her no end that both Corazon C. Aquino and Benigno Simeon “Noynoy” Aquino got that choice plum, the presidency, which she has always aspired for, but which had eluded her.

To put it kindly, Bongbong Marcos is not as gifted as either parent. Now 62, he has anointed his own K-pop pretty and boy band banal son, Sandro Araneta Marcos, as his successor. Greenfield mischievously shows how young Sandro during the 2016 elections, needs a new ballot because, in his own words, he “messed up” and initially voted for two presidents. His paternal grandfather Ferdinand Sr. topped the Bar Exams with the highest average ever. Greenfield inserts a bit about the folly of political dynasties. Sometimes the fruit just keeps rolling away from the tree.

Maynilad picks Consunji-led firm for 150-MLD water treatment plant

MAYNILAD Water Services, Inc. has chosen a consortium led by a unit of DMCI Holdings, Inc. to build a 150-million-liters-per-day (MLD) plant that will treat water from Laguna Lake, a company related to the water concessionaire said.

First Pacific Co. Ltd. told the stock exchange of Hong Kong, where it is listed, that Maynilad had entered into a service contract with AA-DMCI Laguna Lake Consortium on Jan. 28 for the project.

“The scope of work under the Project involves the provision of engineering design, construction, supply and installation of electromechanical equipment or process units, testing, commissioning and process-proving of the Facility,” it said in a disclosure on Jan. 29.

The First Pacific group has approximately 51.3% interest in Maynilad Water Holding Co., Inc. (MWHC), the holding company of Maynilad incorporated in the Philippines.

Consunji-led DMCI Holdings, being a 27.2% shareholder of MWHC, is a connected entity to First Pacific.

The service contract was awarded to AA-DMCI Laguna Lake Consortium, which is a partnership of DMCI Holdings unit D.M. Consunji, Inc. and Spanish firm Acciona Agua, S.A.

Sought for comment, an official of Maynilad said Metro Manila’s west zone concessionaire was preparing a statement on the matter. The official did not disclose the cost of the project when asked.

First Pacific said the project’s scope of work includes the installation of an intake system from, and a brine discharge system into, Laguna Lake, treated water reservoir and pumping station and connection of the facility to the water distribution network.

The service contract forged with the consortium sets out the terms and conditions governing the relationship between the parties, including but not limited to the contract price and terms of payment, scope of work, project milestone dates and confidentiality.

First Pacific said the service contract has a term of 1,679 calendar days to take effect from Jan. 28, 2020 to the issuance of the performance certificate, comprising an initial period during which the consortium is to perform the scope of work, followed by a defects notification period of 730 days, which runs concurrently with a process-proving period of 365 days.

Maynilad, a concessionaire of the state-led Metropolitan Waterworks and Sewerage System, serves the cities of Manila, except portions of San Andres and Sta. Ana. It also covers Quezon City west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the districts of the Holy Spirit and Batasan Hills.

Down south, it serves Makati west of South Super Highway, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; and the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.

Ramoncito S. Fernandez, Maynilad president and chief executive officer, said in December last year that the company had diversified using its permission from the MWSS as early as 2009 to build two water treatment plants in Putatan, Muntinlupa ahead of a third plant in Poblacion of the same town in January.

Metro Pacific Investments Corp., which has majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

Workers without access to ‘decent’ jobs seen at 470M

ACCESS to decent work is deteriorating because employers keep offering inappropriate wages or demand long hours, the International Labor Organization (ILO) said.

In a report, World Employment and Social Outlook: Trends 2020 (WESO) released on Jan. 20, the ILO estimated the number of workers worldwide facing such conditions at 470 million.

“More than 470 million people worldwide lack adequate access to paid work as such or are being denied the opportunity to work the desired number of hours,” ILO said in the report.

This total includes 188 million who are currently unemployed; 165 who are underemployed; and 120 million who are not able to find decent work, ILO said. This suggests the “underutilization” of the global labor force which is not captured by typical indicators like unemployment rates.

WESO lead author Stefan Kühn said in a statement: “Labour underutilization and poor-quality jobs mean our economies and societies are missing out on the potential benefits of a huge pool of human talent.”

ILO also reported that global unemployment is expected to rise by 2.5 million this year, because of the mismatch between the numbers of those entering the workforce and the available jobs that are appropriate to their skills.

The report said being employed does not guarantee having decent work, with 61% of the global workforce, or about 2 billion workers, employed only informally. — Gillian M. Cortez

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