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Inflation likely quickened in January

By Luz Wendy T. Noble

INFLATION likely quickened further in January mainly on the back of an uptick in food prices, some supply side shocks from the Taal Volcano eruption and continued diminishing base effects, analysts said in a BusinessWorld poll, with the central bank seen easing rates this week ahead of emerging risks to prices.

A poll held last week among 13 economists yielded a 2.7% median estimate for January headline inflation, close to the lower end of the 2.5% to 3.3% estimate range given by the Bangko Sentral ng Pilipinas (BSP) last Friday.

Analysts’ January inflation rate estimates, monetary policy action expectations

If realized, this would be the third consecutive month of faster inflation and will be a pickup from the 2.5% pace logged in December. However, this is still slower compared with the 4.4% logged in January 2019 and is well within the 2-4% target for the year.

The Philippine Statistics Authority will report official January inflation data on Wednesday (Feb. 5). The BSP’s Monetary Board will meet to review their policy settings for the first time this year on Thursday, Feb. 6.

“Unstable prices in some occasions has brought about the erratic behavior of prices which affect stability in the economy plus unexpected natural calamities,” Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said in an e-mail.

Security Bank Corp. Chief Economist Robert Dan J. Roces said these cost-push effects from the Taal eruption “appear to be moderate” and “may be fully felt by February, if at all, as agricultural activities resume in the area.”

BSP Governor Benjamin E. Diokno earlier said inflation is likely to stay stable despite risks from the Taal Volcano eruption.

The government estimates that foregone income from the incident is between P4.3 billion to P6.7 billion, which could result to a dent in the output growth within the Calabarzon Region for the first quarter.

The Philippine Institute of Volcanology and Seismology has already lowered Taal Volcano’s alert status to Level 3 from Level 4 on Jan. 26, two weeks since its eruption activities started. This has allowed some residents from several towns to be allowed to return to their homes.

Aside from the Taal eruption, the African Swine Fever (ASF), which caused prices of pork substitutes to rise, continues to be an upside risk to inflation, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“The ASF would remain to be a threat in terms of some pick up in the prices of fish, chicken, beef, and other alternative meat products,” he said in an e-mail.

Meanwhile, Thatchinamoorthy Krshnan, economist at Oxford Economics, pointed out that the “base effects that caused inflation to pick up in December should continue to affect January 2020 inflation but to a smaller extent.”

Central bank officials earlier said inflation is likely to settle within the midpoint of the BSP’s 2-4% target range this year, with risks tilting slightly upward.

RATE CUT ON THE TABLE
Amid continued upside risks to inflation, 10 out of the 13 economists who participated in last week’s poll said the central bank would probably cut rates by at least 25 basis points (bps) this week.

Key policy rates currently stand at four percent for the overnight reverse repurchase facility, while overnight deposit and lending rates are at 3.5% and 4.5%, respectively.

This, following 75 bps worth of rate reductions last year, which partially offset the 175 bps in hikes done in 2018 to quell inflation.

Emilio S. Neri, Jr., lead economist at Bank of the Philippine Islands (BPI), is of the view that the Monetary Board (MB) is “aware of the risk that the window for cutting rates is starting to close.”

“If they don’t cut on the sixth [of February] they might miss their chance to do so for the rest of 2020 as there are a number of risk factors emerging that may lead to a faster inflation trajectory for the rest of the year,” Mr. Neri said in an e-mail.

Central bank officials have flagged several upside risks to inflation for this year, including volatile oil prices due to Middle East tensions, impact of the ASF on selected items, the hike in excise taxes on alcoholic beverages following the new sin tax law, as well as pending petitions for electricity rate adjustments.

Mr. Diokno has said the central bank will not be “as aggressive” in cutting rates this year compared to 2019, still looking to cut rates by at least 50 bps, with a 25-bp cut on the cards as early as this quarter.

The MB will hold a policy setting meeting twice in the first quarter — on Feb. 6 and on Mar. 19.

“With the growth outlook dimming on a global scale and with the domestic economy needlessly hampered by previous policy tightening, follow through easing may help ensure that the Philippines can safely navigate the more challenging environment,” ING Bank NV-Manila Senior Economist Nicholas Antonio T. Mapa said.

The coronavirus outbreak may also be taken for consideration for another possible rate cut, according to Capital Economics’ Asia Economist Alex Holmes.

“It’s a close call, but given the potential impact of the coronavirus on the tourism industry we think the [central] bank will opt to ease sooner rather than later,” Mr. Holmes said.

Meanwhile, for ANZ Research Economist Mustafa Arif, Mr. Diokno’s comments on a first-quarter rate cut may suggest that the BSP will ease in March instead of this week amid risks coming from higher prices in the near term due to weather disruptions.

“Furthermore, expectations of a higher fiscal impulse this year suggest that the BSP can afford to be less aggressive,” Mr. Arif said.

In terms of reductions in reserve requirement ratio (RRR) for banks, BPI’s Mr. Neri said that the BSP is likely to keep current levels and to look for more evidence of faster loan growth before going for another cut.

“They can continue to deliver RRR cuts as long as inflation remains comfortably below the policy rate,” Mr. Neri said.

After 400 bps worth of cuts in 2019, the reserve requirement ratio for big banks is now at 14%, while the RRR for thrift and rural banks are at five and three percent, respectively.

The Monetary Board likewise reduce RRR for nonbank financial institutions with quasi-banking functions to 14%.

Mr. Diokno has vowed to reduce the reserve requirement of big banks to the single-digit level by the end of his term in mid-2023.

Gov’t hoping talks with China could spur faster disbursement of ODA

MORE MEETINGS with the Chinese government could help address the “slow pace” of disbursement of official development assistance (ODA), a top official said.

“Actually, the ODA coming from China has been rather slow,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a forum on Friday.

So far, the only ongoing China-funded projects are the Chico River Dam irrigation project in Cagayan Valley and the Kaliwa Dam project which “has barely started,” Mr. Pernia said.

“Compared with Japan, Japan International Cooperation Agency (JICA) ODA has been much faster, there are so many projects now being funded that are ongoing,” he said.

The Japanese and the Philippine governments are holding regular meetings to discuss the progress of Japan-funded infrastructure projects. They had their ninth meeting last month.

Asked if more frequent meetings can address the slow pace of disbursements, Mr. Pernia told reporters: “I hope so… maybe it’s going to be more effective than this one.”

For instance, Mr. Pernia pointed out that even the process of screening and selecting the companies they will work with has been “rather slow.”

China ranked seventh with $273.3 million worth of ODA loans as of March 2019 based on data from the National Economic and Development Authority (NEDA).

Japan remained the country’s top source of ODA at $8.152 billion worth of loans, followed by multilaterals such as World Bank ($3.146 billion) and the Asian Development Bank ($2.865 billion).

ODA is among the funding sources sought by the government to finance its projects and programs, especially infrastructure ones.

According to the list of administration’s infrastructure flagship projects, 49 out of 100 projects will be funded through ODA worth P2.31 trillion, followed by the 29 projects worth P1.77 trillion through public-private partnerships, while the remaining 22 projects will be funded through the national budget (P167.95 billion).

DEBT STOCK TO DECLINE
Despite higher borrowings to fund the state’s growing spending plan, which is now set at P4.1 trillion, Mr. Pernia said the country can still manage a healthy debt burden.

The country’s debt-to-gross domestic product (GDP) ratio, or the total debt relative to economy, dipped to 41.5% last year from the 41.8% recorded in 2018. That was the lowest debt stock level the country had since 1986, the earliest year with available data.

“[Someone projected that] we’re in danger of overshooting our debt level beyond 100%? No way. Actually our debt level now, domestic as well as foreign, is only 41.5%. If you look at foreign debt level it’s only about 23%. It’s unlikely that we would be hitting even 50% debt to GDP ratio,” he said.

Finance department’s Chief Economist Gil S. Beltran said the country’s debt stock level could even further decline to as low as 40% by 2022.

Security Bank Corp.’s Chief Economist Robert Dan J. Roces shared the same 40% projection, adding that the debt level will likely stay at a “prudent limit” of 41-42% this year, “with more fiscal reforms under way.”

“I attribute the lower debt-to-GDP ratio in 2019 to government underspending on the back of a delayed national budget. This, plus improved fiscal efforts that narrowed the fiscal gap reduced borrowings for the year and thereby the overall debt stock,” Mr. Roces said in an e-mailed response on Friday. — Beatrice M. Laforga

PSA chief stands by choice of 2018 as base year for measuring GDP

By Marissa Mae M. Ramos
Researcher

THE Philippine Statistics Authority (PSA) is confident in using 2018 prices as the base for measuring the country’s gross domestic product (GDP), saying that there are no implications in doing so despite multi-year high inflation rates during that year.

Wala namang bearing ’yung pagpili ng base year (There is no bearing in choosing that base year)… I think 2018 is a very good time as a base,” PSA chief Claire Dennis Mapa told BusinessWorld on the sidelines of an event in Quezon City on Thursday.

The PSA last month announced it will begin using 2018 prices as the base for measuring GDP starting this year.

When asked of the implications of 2018 as a base year, Mr. Mapa cited that even 1985, a previous base year, was also a “problematic” year and given the distance between previous base years 1985 and 2000, the new chosen base year is “a bit late.”

The country’s national accounts have undergone four overall revisions — 1968 (from base year 1955 to 1967), 1973 (from base year 1967 to 1972), 1995 (from base year 1972 to 1985), 2011 (from base year 1985 to 2000).

“Rebasing is a common practice wherein we rebase the GDP and other indices to make sure we are capturing the economic activities of the industry currently,” Mr. Mapa said.

Using an outdated base could mean that the growth of an economy may be underestimated as new industries may not be captured by the old method.

This includes sectors with growing importance such as information and communication technologies (ICT), business process outsourcing, and e-commerce.

Mr. Mapa said the PSA added around seven more categories in the sector, which include education, health, and ICT that were previously tagged under “other services.”

Economists interviewed by BusinessWorld shared Mr. Mapa’s sentiment.

“There’s no problem in updating the base year to a more recent period since it would be more reflective of goods and services available in the market, as well as the current conditions in the economy,” said University of Asia and the Pacific Economist Victor A. Abola in a phone interview.

For UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion, the rebasing will represent a “more updated view of real GDP growth.”

“The goal is to capture what is really happening in the real macro-economy. The rebased series, compared to the previous base series, may actually reveal pertinent and helpful information about the said series,” Mr. Asuncion said in an e-mail.

There had been discussions for years with regard to which base year to use in updating the national accounts. The PSA had considered 2012 and 2015 as base years but were turned down by the PSA Board, which consisted of the Secretary of Socioeconomic Planning and key representatives of government agencies.

The PSA reports GDP growth on a quarterly basis as an overall measure of the Philippine economy’s performance.

The economy expanded by 5.9% in 2019, the slowest in eight years or since the 3.7% print in 2011, breaking the economy’s seven-year streak of at least six percent growth.

Last week, National Economic and Development Authority Undersecretary Rosemarie G. Edillon said the government will likely adjust official targets based on the revised base year.

Based on current assumptions, the government targets 6.5-7.5% GDP growth this year until 2022.

The PSA will conduct briefings for the media ahead of the first-quarter GDP growth release on May 7 to explain the process of rebasing and on how it is expected to affect historical data. — with inputs from Mark T. Amoguis

Analysts’ January inflation rate estimates, monetary policy action expectations

INFLATION likely quickened further in January mainly on the back of an uptick in food prices, some supply side shocks from the Taal Volcano eruption and continued diminishing base effects, analysts said in a BusinessWorld poll, with the central bank seen easing rates this week ahead of emerging risks to prices. Read the full story.

Analysts’ January inflation rate estimates, monetary policy action expectations

SEC lifts investor warning vs DV Boer

Securities and Exchange Commission (SEC) logo

THE Securities and Exchange Commission (SEC) has lifted its investor warning against DV Boer Farm International Corp. after it agreed on the company’s P3.015-million settlement offer.

In a Jan. 31 order posted on its website, the SEC said it had approved the settlement from the farming investment company and has received a partial payment of P300,000 last week. The remaining P2.715 million must be paid within the next three months.

DV Boer also submitted an affidavit stating it will stop selling investment contracts through its “Paiwi Program” until it obtains a separate registration from the SEC, and it will allow the SEC to send representatives to inspect its farm in Batangas for at least a three-month period.

“…(the) case is now deemed settled without any determination of fault or guilt on the part of DV Boer Farm International Corp.,” the SEC said.

To recall, the SEC issued in April 2019 an advisory against investing in DV Boer as it found the company operating an investment scheme called “Paiwi Program.” It involves goat leasing for dairy and meat, cattle raising, and other similar programs for rabbit and chicken, with packages costing between P10,000 and P2.06 million.

The SEC said the program is not registered with the commission and the company is not authorized to sell securities. Without a secondary license and without registering the securities with the SEC, the company is illegally operating the investment scheme as it violates the Securities Regulation Code.

The SEC initially imposed a P6.03-million fine on DV Boer in November, derived from 578 Paiwi Partners multiplied by P10,000 and five directors multiplied by P50,000. The company filed its first settlement offer in December, which was denied by the SEC in January.

In its second attempt at a settlement, DV Boer explained it cannot pay the original fine because of a “liquidity problem” from difficulty accessing banks and increasing losses as a result of animal deaths in its farm as affected by the Taal Volcano’s eruption.

The SEC then approved in a meeting on Jan. 23 reducing the fine on DV Boer to P3.015 million. The settlement offer is made effective upon public disclosure of the order. — Denise A. Valdez

Consumers set to start retaining phone numbers

MOBILE phone users may start applying for mobile number porting in the third quarter of this year, Globe Telecom, Inc. Chief Commercial Officer Alberto M. de Larrazabal said.

“I think the schedule is third quarter [of] this year,” Mr. Larrazabal told reporters on Friday last week, when asked about the actual rollout of the mobile number portability services.

He added: “What we are doing in the Philippines is we are setting up the clearing house.”

Globe, PLDT, Inc.’s wireless unit Smart Communications and new player Dito Telecommunity Corp. have tapped Florida-based Syniverse as their mobile number portability service provider.

Syniverse will serve as a clearinghouse for the telcos to ensure the smooth implementation of number porting services. The company assists mobile operators globally in managing and securing their mobile and network communications.

“The three of us are investing [in the clearing house], and we will set it up,” Mr. de Larrazabal said.

He said the three telco firms will jointly appoint someone to manage the clearing house.

The three telco firms received on Jan. 21 an approval from the Securities and Exchange Commission on the incorporation of the Telecommunications Connectivity, Inc., which they jointly put up to implement the Mobile Number Portability (MNP) Act.

The new company, according to Globe, will “enable number porting services in line with the new mobile number portability initiative of the government or Republic Act 11202 also known as the ‘Mobile Number Portability Act.’”

The MNP Act, which was signed by President Rodrigo R. Duterte into law in February 2019, allows mobile phone users to switch networks without changing their numbers.

Under the law, mobile number portability refers to the ability of a mobile postpaid or prepaid subscriber, who has no existing financial obligation to the service provider, to retain an existing mobile number despite having moved from one mobile service provider to another, or to change subscription mode from postpaid to prepaid or vice versa.

The law requires telcos to provide mobile number portability to subscribers nationwide free of charge.

Every telecommunication service provider has to change subscription mode within 24 hours from the time a subscriber submits application, the law also said. — Arjay L. Balinbin

Bill collection of ‘stranded’ power costs ends in Feb.

THE Power Sector Assets and Liabilities Management Corp. (PSALM) will cease collecting the P0.0543 per kilowatt-hour (kWh) universal charge for stranded contract costs (UC-SCC) starting this month, the government agency said.

“This is a relief to power consumers all over the country as they are no longer going to be charged the UC-SCC,” it said in a statement over the weekend.

It said the move translates into a reduction of P5.43 for every 100 kWh of electricity consumption.

PSALM said it had started advising electricity distribution and collecting utilities to terminate the implementation of the UC-SCC.

The move comes after the Energy Regulatory Commission ruled on April 10, 2019 that PSALM was permitted to recover P5,117,060,647.80 through the UC-SCC. But based on the computation of PSALM, the recoverable amount could already be covered by the UC-SCC imposed in the January 2020 billing period.

Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 defines UC-SCC as the “excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy.”

The UC-SCC charges were intended to pay the remaining financial obligations that the government incurred because of the construction of new power plants to alleviate the power shortages in the 1990s and early 2000. — VVS

Banana exporters push gov’t to set cap on exit prices

DAVAO CITY — The banana export industry wants the government to set a cap on the exit price of the commodity to help smooth out seasonal swings in demand and fluctuations in the harvest.

Alberto F. Bacani, chair of the Pilipino Banana Growers and Exporters Association, Inc. (PBGEA), said setting an exit price cap, or the price imposed on the crop before it is shipped to its destination, is practiced in Ecuador, one of the world’s biggest exporters.

“What I would ask the government to do is to follow the model of Ecuador… the (Ecuador) government heavily intervenes in terms of pricing,” Mr. Bacani said in a news conference Friday.

“We should not (become) an expensive banana,” he said, adding that the open pricing system makes it difficult for the industry to develop sustainability plans given altering demand as well as the continued threat from Panama disease and emerging competitor countries.

PBGEA President Victor S. Mercado said independent growers, such as some agrarian reform beneficiaries, that do not have contracts with buyers face the biggest risks.

2019 N-COV
The 2019 novel coronavirus (n2019-nCoV) has become an added threat to the banana industry with China being its biggest market, overtaking Japan in the last two years.

“What is scary is we have become dependent on the China market,” said Mr. Bacani.

Mr. Mercado said some Chinese buyers have already indicated a likely drop in orders due to the 2019-nCoV outbreak.

As of November, the value of exported Cavendish banana rose to $1.8 billion from $1.38 billion in all of 2018, according to the Philippine Statistics Authority.

Mr. Mercado, however, said while the value was higher, PBGEA data shows production actually fell to 195 million metric tons (MT) last year from 207 million MT in 2018 due mainly to a mild drought, which is expected to continue this year.

“But the biggest threat that has really caused the reduction (in the size of the farms) is Panama disease,” he said.

PBGEA estimates about 30,000 hectares have been affected by the soil-borne infestation.

“It is where government assistance is needed,” he said, citing both technical and financial support for affected farmers.

Mr. Mercado, president of the Marsman-Drysdale Agribusiness Group, also said that the exodus of local experts is continuing as other Asian countries seek them out to develop their own banana industries.

“Their biggest (advantage) is that they are closer to China,” he said, referring to Vietnam.

Mr. Bacani, president of Unifrutti Tropical Philippines Inc., said a team that recently visited Cambodia also saw progress in its banana industry development given the availability of farm areas.

“It’s scary,” he said, but added that the more than 50-year old local industry maintains a major advantage in terms of skilled labor. The labor force in Cambodia, he said, “is still hard to manage.”

“It will take a while before (other countries in Asia) can catch up with the Filipino way of growing bananas,” Mr. Bacani said, but added that government intervention is needed to ensure the industry’s long-term global competitiveness. — Carmelito Q. Francisco

DoE appeal to suspend P18-billion tax deficiency denied

DoE logo

THE Court of Tax Appeals (CTA) denied for lack of merit the appeal of the Department of Energy (DoE) over the dismissal of its petition to suspend the collection of its P18.4 billion alleged tax deficiency.

In a four-page resolution dated Jan. 30, the court’s second division affirmed that it does not have jurisdiction over the case between the DoE and the Bureau of Internal Revenue.

The court noted that under Presidential Decree No. 242 disputes and claims between government agencies and offices — including government owned or controlled corporations shall be settled by the secretary of justice, the solicitor general, or the Government Corporate Counsel depending on the issues and government agencies involved.

“It is plain that the instant case between petitioner, a department of the executive branch of the government and the CIR who is the head of BIR, a government agency, is purely an intra- governmental dispute and claims shall be settled or adjudicated in accordance with PD No. 242. Accordingly, the Court is bereft of jurisdiction to take cognizance of the present case,” the resolution read.

“Thus, the Court finds no cogent reasons to reverse or modify the ruling in the assailed Resolution,” it added.

In its motion for reconsideration the DoE said that Section 7 of Republic Act No. 1125 regarding the jurisdiction of the CTA, disputes and claims among government offices remain in the jurisdiction of the CTA.

Section 7 of the law said the CTA has jurisdiction over decisions of BIR on assessments, refunds, among others. It also settles decisions of the Bureau of Customs over liabilities on custom duties, fees, and matters under Customs law.

It also has jurisdiction over decisions of provincial or city Board of Assessment Appeals in cases in real property or matters under Assessment Law.

The resolution was penned by Associate Justice Juanito C. Castañeda, Jr. and concurred in by Associate Justices Cielito N. Mindaro-Grulla and Jean Marie A. Bacorro-Villena.

The court in November last year, in a resolution, dismissed for lack of jurisdiction the petition for review, with urgent motion for suspension of collection of taxes, which assails the Warrants of Distraint and/or Levy and Garnishment issued by the BIR for the collection of alleged deficiency taxes of P18.4 billion over the “removal and export condensates out of Service Contract No. 38.”

In upholding the settlement under PD 242, the court cited a previous Supreme Court decisions. — Vann Marlo Villegas

Sharing our way out of a crisis

ALMOST TWO WEEKS have passed since the historic Senate hearing for the legalization of motorcycle taxis. In internet speak, that means four to five different news cycles; or in the old language, yesteryear’s news. But here’s why you should still care.

This affects us all, whether or not you use the service.

I fought for motorcycle taxis not because I ride one. I have done, of course, but I ended up getting my own Vespa instead when it started getting impossible to get an Angkas. So I basically privatized my way out of the problem. But that doesn’t mean the problem doesn’t exist. In fact, I know that deep in my heart, I’ve only added to it by introducing yet another motorized private vehicle to the road — especially when there was an option (and more importantly, a willingness) to share. And that is the most heartbreaking thing about this whole fiasco: We were told that we’re not allowed to share.

We all saw what happened when Uber left. Service quality plummeted, prices skyrocketed. New car sales skyrocketed. And the 50,000 to 60,000 cars that were once used for TNVS either went to their competitor or, worse, back to a private individual where one car services one family. You could call it a coincidence, of course, but the last two years since that fateful day have been the worst years on record for traffic but the best years for Grab. And now, we’re back in the exact same spot, talking about the exact same issue (just swapping four wheels for two) — proposing the exact same regulations, but hoping for a different result.

What our regulators need to understand is that you cannot regulate your way out of a crisis. It’s like trying to regulate hunger, pain or feelings. You need to go to the root cause. And the root cause of us riding motorcycle taxis is that there’s no better option out there. It’s that simple. So if you rob us of that, those who have the means will privatize their way out of the problem and create a bigger one by buying their own motorcycle, while those who can’t will just have to suffer — period. Think of coding; think of Uber leaving.

But don’t get me wrong. I’m not trying to totally disregard the concerns of the regulators here. They do have some points. It’s just that, if it’s really as dangerous as they say, why do we allow anyone to ride or sell a motorcycle in the first place? How exactly does it make it any less dangerous when you don’t charge your passenger for the ride? What kind of forcefield does it deactivate? Regulators will argue that it is because it is a common carrier and it comes with an increased responsibility; and we (meaning any road user born before yesterday) will just take one glance at a regulated jeepney, bus, taxi, tricycle and truck and say, “Sige, kami na lang maga-adjust (okay, we’ll adjust).”

Also, think of the message a ban sends to innovators, especially at a time when we should be turning to tech as a weapon against traffic. We are basically telling them: Your ideas are NOT welcome here. I mean, who knows what the next big thing will be? If none of us saw Uber coming, or Netflix, Spotify, Viber, online banking, etc., who is to say that the next great app to disrupt or revolutionize the buses, jeepneys or tricycles is not at the tip of some developer’s keyboard? But because we created such an inhospitable (dare I say hostile) environment for them, they will either not develop it or take it somewhere else.

I said in my Senate speech that change is the only way out of this mess. That’s still true; We can’t do it without change, but there’s also one other way. We can also share our way out of it. It’s our only hope. Because try and imagine a world without shared resources. We would literally have to generate our own individual electricity and fetch our own water from our own private well. A shared economy, plus our ability to cooperate in large numbers and turn our thoughts into things, has seen Sapiens evolve from one of the most vulnerable species in the animal kingdom to the most dominant one. It’s time we use it against our new predators, like traffic.

It’s 2020, for crying out loud. When I was a kid, I thought we would be in flying cars by now. Instead, here we are going backwards. We love to talk about progress but we chain ourselves to the past with a public service act that was written in 1936. We now live in an exponential era, and we need laws that can keep up.

The good news here is that there is a piece of legislation that is being drafted by Senator Grace Poe as we speak. Now I know what some of you are thinking, but for whatever criticism I have seen about Senator Poe, she understands this issue. The mere fact that she still remains the only one to give the riding public a voice here speaks volumes, and has earned her my full support. But it needs a lot more than that. It needs you.

But I hate motorcycle riders. They are so unruly and are a menace on the road.

I hear you. I too have had my vehicle scratched by a careless motorcycle rider before. I’ve also had my car scratched by an unruly jeepney driver and got rear-ended by a bus that ran out of brakes. The point here is, kamotes (as they have come to be known) come in all shapes and sizes. They are not exclusive to two wheels. In fact, they get exponentially worse as they increase to four, 10, 18, etc. The problem is not the vehicle type but the nut behind the wheel. That is what you need to fix, and that is done at the LTO level with stricter licensing and driver education and enforcement. Let’s not confuse the issue.

In fact, if anything, creating a space and a legal framework for these motorcycle taxis will allow for mandatory training at a level that is on par with the rest of the world. That’s if we demand it, of course; which we can, so long as we start now. Because every day that we procrastinate, the habal-habal community grows, and so will the number of private motorcyclists that will have just privatized their way out of the problem and will no longer be answerable to anyone.

It will only be a matter of time before we will totally lose control of this and the animals take over the zoo, so to speak.

 

James Deakin is a multimedia, award-winning automotive journalist; events host; inspirational speaker; key opinion leader; brand ambassador; road safety advocate; TV host; and presenter at CNN Philippines.

New Zealand seeking Mindanao green energy, agriculture partnerships

By Maya M. Padillo
Correspondent

DAVAO CITY — The New Zealand government wants to bring its expertise in two sectors, renewable energy (RE) and agriculture, in Mindanao through various partnership schemes, according to its new envoy.

“We are interested in working together on areas where we have strengths and one of those is the renewable energy. That is one of the areas we want to work and support in Mindanao,” Ambassador Peter Kell said in an interview late Thursday on the sidelines of a scholarship promotion event.

He said New Zealand is particularly interested in helping develop green energy sources in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as a way of supporting government efforts on peace and economic development in the restive region.

Mr. Kell noted that 80% of New Zealand’s energy supply is currently from hydropower, geothermal, wind, and solar, and the government is aiming for a 100% green mix by 2035.

“That means we have to up the proportion of our RE… If there are other projects where we can draw our strengths on RE, then we will be very interested,” he said.

Honorary Consul of New Zealand in Mindanao Vicente T. Lao, also chair of the Mindanao Business Council, said biomass is another RE source that can be explored with New Zealand.

Mindanao, he said, has a lot of potential biomass input from the banana farms and other agriculture areas.

“The technology we have in biomass is not that advanced. We have so much biomass in Mindanao and it’s just being thrown away right now. I think we have a good potential in biomass generation,” Mr. Lao said.

AGRICULTURE
In agriculture, New Zealand’s biggest trade sector, Mr. Kell said he will be building on initiatives made by his predecessor, David Strachan, including strengthening cooperation with the Mindanao Development Authority (MinDA)

Among the programs under discussion with stakeholders involves BARMM areas.

“The talks were done with my predecessor and I am here to continue those discussions,” he said.

The envoy also announced that the New Zealand government has provided $2.4 million in financial aid package for the training of mango sprayers and growers in Mindanao.

“Protocols such as what we need to spray properly, what kind of chemicals that you can spray with, and when to stop spraying,” Mr. Lao said.

In December, MinDA, representing the Philippine government, signed a three-year co-investment project with the New Zealand Embassy and NZ G2G Partnerships Ltd. for mango exports.

One of the items under the program is a feasibility study for setting up quality assurance systems for fresh mango to ensure compliance with sanitary and phytosanitary standards.

Mr. Lao said exporting mangoes will mean much higher income for growers with prices of up to P400/kilo compared with an average P50/kilo farm gate price for the domestic market.

Mr. Kell was in Davao City on Jan. 20-31 to promote the New Zealand Scholarship program in various local academic institutions.

Agriculture and green energy are among the priority sectors for the post-graduate study, along with disaster risk management, and public sector management, including peace and conflict, and indigenous studies.

Pampering for those in a rush

AFTER the success of its main The Retreat Spa, intergrated casino-resort Okada Manila has decided to create a spa concept for people who want to relax but have little time on their hands. The result is the Sole Retreat.

“The Retreat was made for a complete spa experience so it can take a few hours, but Sole Retreat is for people who might have a flight in a few hours but still want to get a massage,” Vikki Aquino, director for spa, fitness, and recreation told BusinessWorld during the launch on Jan. 23.

Located at the third level of the resort’s Coral Wing, the Sole Retreat Foot Spa and Reflexology Center, offers reflexology treatments, massages, nail services, and facial treatments.

It offers two kinds of reflexology treatments: the Ingham method which uses a “rhythmic finger and thumb walking” technique to give the benefits of pressure point therapy sans the pain. The therapist who did the reflexology treatment for this writer said this method is best for beginners to reflexology treatments.

(It did hurt a bit, especially on the arch of my right foot — the therapist said it’s because my shoulders are stiff.)

They also have the Asian reflexology method which uses “deep finger, thumb-knuckle pressure and rubbing technique” where pain represents the sensitivity of nerve endings which, according to a release, should lessen after further sessions.

Reflexology is a centuries-old practice which started in China and Egypt where by pressing into the foot’s “zones” that is said to correspond to areas or organs in the body.

The center is equipped with 22 seats (or “thrones,” as the center likes to call them) in a common treatment room and five seats in a private lounge.

Each seat can fully recline and is adjustable for those having a full-body dry massage, facial, or nail service.

The facial and nail treatments can be done concurrently with the reflexology treatment.

“The treatments can be done without disrobing though we do provide massage pajamas for those who want it,” Ms. Aquino said.

Sole Retreat also allows children to avail of its services provided they reach a height limit of at least 110 centimeters. The Retreat, on the other hand, can only be accessed by people aged 16 and above. This, Ms. Aquino said, makes Sole Retreat perfect for spa parties or family events.

Foot therapies start at P2,750 for 20 minutes, to P5,550 for 60 minutes. Additional services such as a full back massage can cost P2,250 for 30 minutes, while “naked” manicures and pedicures cost P1,300 each.

Facials such as the Ultra Sonic Peel cost P4,900 for a 45-minute session.

The spa also offers set treatments starting from P11,500 which combines reflexology, massage, and “naked” manicure and pedicure.

For more information, call the Sole Retreat at 8555-5778 or e-mail thesoleretreat@okadamanila.com. the Sole Retreat is open daily from noon to midnight. — Zsarlene B. Chua

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