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Today’s world has become a most chaotic place. Daily disruptions are the norm, and

even the most agile of businesses and individuals are struggling to cope with this

blitzkrieg of changes. Business leaders are left pondering a future where uncertainties

are the only certain and playing by the old rules can no longer work.

Consider these new realities:

Global imbalances continue to widen, sparking massive discontent and conflict.

Incomes continue to rise, yet poverty’s grip is stronger than ever. New billionaires are

minted everyday across Asia, yet there remain places without access to electricity or

water and that includes the Philippines.

Technology amplified the world’s inequity and inequality. In this interconnected globe,

people witness how prosperity has been limited to the few in real time, fanning anger

and dissatisfaction. Almost every day, social media comes alive with netizens angered

by the latest display of arrogance, abuse, or incompetence by those in power, be it

someone disregarding traffic rules or somebody spewing out half-truths as a result of

ignorance or brazen politicking.

There is the advent of the Fourth Industrial Revolution (4IR) that is bringing about

seismic changes in the geopolitical, economic, technological, social and ecological

realms as the locus of power shifts continuously. The economic displacement that

artificial intelligence (AI) can bring about is a hotly discussed topic, yet how many can

say they are truly prepared for it?

It is no wonder that trust levels for governments have plummeted to unheard-of lows,

and people are casting their sights to the other end of the spectrum in the hope that they

will get answers where the present systems and institutions are failing them. Amidst

Volume 5 Issue No. 27 map.org.ph July 9, 2019

THE FUTURE OF BUSINESS: Why Sustainability Matters

July 8, 2019

“MAPping the Future” Column in the INQUIRER

Mr. JUNIE S. DEL MUNDO

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quickly shifting views and different versions of the truth, will business be a friend or a

foe? Or will we see the rise of new brand of leaders who are willing to embrace the call

for inclusive development and changed paradigms?

There are game-changing opportunities that these emerging realities bring. Businesses

can play it faster and smarter, as they compete with newer, fleet-footed enterprises run

by a new breed of tech-savvy, innovative entrepreneurs, to meet the evolving needs of

customers; but will these be enough?

In this transformed new world, leaders have to realize that the business equation is no

longer a simple arithmetic of revenues and profits. A company that does so much

business yet pays no regard to people or the environment will lose the goodwill of its

customers – and fast. Just look at how the Boracay closure and clean-up turned out, with

no one coming to support the polluters.

Inevitably, a new reality will emerge. To survive, businesses need to accept that they

must do good, not just look good. They need to define a higher purpose beyond just

profits. They must drive social change, not just shareholder value. Sustainability,

impact, and development – they will be the yardsticks which will determine whether

businesses will still be in the future.

The future of business requires thinking about doing the unthinkable – putting the goals

of equitable and inclusive development on the same plane as profitability targets.

Business prosperity must be measured in terms of how the individuals who enable

productivity and creativity are enjoying the fruits of their contribution.

Business goals will have to evolve. The measures of organizational success should be

expanded to activities that engage their communities, and espouse ethical practices that

do no harm to people, the planet, and society.

For now, all these may seem too big, too radical and too ambiguous but then that kind

of thinking might just be the reason why sustainability, development, and impact remain

elusive. But not for long; these ‘big’ words are slowly yet steadily unfolding. Those who

will not take steps to be part of this changing narrative might just become the case

studies of how the failure to act with foresight can lead to business extinction.

The 2019 Management Association of the Philippines (MAP) International CEO

Conference aims to be part of this journey to a new business future. It will provide a

forum to jumpstart discussions and help business leaders find answers to these burning

questions. Through the experts sharing their views, we can expand the arsenal of

strategies and options that will help us all survive and live to share our stories.

The MAP Conference will feature a session on Strengths Strategies for Optimal Living,

zeroing in on people equation and strategies that produce the most significant increases

in energy, performance, and relationships. A panel discussion on doing the unthinkable

provides experiences from the successes of those who chose business pathways

anchored in social agenda as well as discussions that delve into the new fortune that can

be found at the bottom of the pyramid.

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Savvy leaders recognize that sustainability and social impact will be the future of

business. The September 10, 2019 (Tuesday) MAP CEO Conference offers an

opportunity to be informed with the ongoing conversations as inputs to mapping the

future of our organizations. //

(The author is the Chair of the MAP CEO Conference Committee and the CEO of The

EON Group, a fully-integrated communications agency. Feedback at

<map@map.org.ph> and < junie.delmundo@eon.com.ph>. For previous articles,

please visit <map.org.ph>)

Much of the corporate governance (CG) reforms pursued by the Securities and

Exchange Commission (SEC) through its CG Codes all seek to usher into the publicly-

held companies (PHCs) and publicly-listed companies (PLCs) a system of professional

directorship, such as granting more supervisory power to the Boards over its

composition, and integrity (i.e., qualifications and disqualifications), as well as the

competence and diversity of talents and skills of their members, effecting a system of

discipline over their members, and providing for competitive levels of remuneration.

We have discussed how the “comply and explain approach” to CG reforms pursued

under the CG Code for PLCs has much theoretical merits since it relies upon the

disciplining effect of the market to change the behavior of Boards of PLCs to adopt the

CG reforms recommended by the Code. We have pointed how that the “disciplining

effect of the market” may prove illusory in the current state of our PLCs where the public

investors really constitute a minority of the so-called “market” which is fact are

dominated by majority or controlling stockholders.

We have seen from the discussions above the fact that the “mandatory rules-based

approach” of the Original and Revised CG Codes can provide a more efficient means to

pursue CG reforms in certain critical areas, where the “comply and explain approach”

of the CG Code for PLCs would fall short.

In the realm of the proper composition of the Boards of Directors of PHCs and PLCs,

there are now universal acknowledgement that there is a need to pursue gender diversity.

The SEC, therefore, in the exercise of its quasi-legislative powers, may provide

mandatory provisions providing for gender representation in the Boards, instead of

recommending that it would be the Boards themselves that would promote such

diversity. That set-up would then provide the Boards the “subsidiary legislation” upon

“MAP Insights” Column in BUSINESSWORLD

Purveying the Next Critical Step in CG Reforms in the Philippine PHC Sector

July 9, 2019

Dean CESAR L. VILLANUEVA

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which to actively pursue such Board diversity reforms without their business judgment

being challenged by sectors that wish to maintain the status quo.

In the realm of qualifications and disqualifications of directors and officers, there is a

universally-accepted system of mandatory rules of qualifications and disqualifications

that go into the integrity of directors and senior officers of companies vested with public

interests as can be easily shown by the comparison of the rules of qualifications and

disqualifications provided in the Bangko Sentral ng Pilipinas (BSP) CG Circulars, the

Insurance Commission (IC) CG Code, and SEC’s Original and Revised CG Codes.

Therefore, rather than the present “comply or explain approach” provided for in the CG

Code for PLCs that sets general principles of qualifications and disqualification, it

should be expected that the SEC should by the exercise of its quasi-legislative powers

provide specific rules of further qualifications and disqualifications for directors and

senior officers that are clearly of universal application to PHCs, and recommend to the

Boards further qualifications and disqualifications that may be adopted that would be

peculiar to their industries. The difference between rules-based qualifications and

disqualifications from Board adopted-qualifications and disqualifications has a

significant legal consequences.

When a clear set of qualifications and disqualifications is set by the SEC through its

rules-making powers, the effect is that they have the force and effect of law. Therefore,

the Boards of Directors of PHCs are in fact duty bound to enforce them, and with the

proper exercise of procedural due process, they can disqualify nominees who do not

meet such statutory criteria, or declare the termination from office of incumbent

directors or senior officers who have become disqualified under the rules of the SEC. In

contrast, when the Boards seek to enforce a system of qualification or disqualification

that are based on guidelines drawn by them, even when the power to draw such

guidelines have been granted by SEC rules, the process of enforcing them upon

nominees or even upon incumbent would find itself being covered in the realm of

“removal from office”, which is fraught with legal landmines provided under the current

CG provisions of the Corporation Code. In short, the locating a system of qualifications

and disqualification within the rule-making powers of the SEC, effectively isolate the

enforcement thereof by the Board from the realm of “removal from office”.

Finally, we have also seen from the discussions above the legal truism that there are

areas where the exercise by SEC of its quasi-legislative powers cannot simply overcome

remaining obstacles to see a fruition of the CG reforms. One such area would be of

amending the provisions of the Securities Regulation Code that would increase further

the composition of independent directors in the right-mix that would balance the

interests of the controlling shareholders and the investing public in PHCs. Another areas

would be amending the provisions of the Corporation Code to change the paradigm from

“Directors are not generally compensable for their services as such,” to one that allows

performance-based compensation for directors who serve with competence and

effectiveness.

We conclude this article with the note that a more vigorous scheme may have to be

pursued in CG reform movement to usher into the Philippine public system a

professional system of directorship. There is much work to be done in this area.

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(The article reflects the personal opinion of the author and does not reflect the official

stand of the Management Association of the Philippines or the MAP)

--------------------------------------------------------------------------------------------------------

CESAR L. VILLANUEVA is Chair of the MAP Corporate Governance Committee,

Founding Partner of the Villanueva Gabionza & Dy Law Offices, and former

Chair of the Governance Commission for GOCCs (GCG).

cvillanueva@vgslaw.com

map@map.org.ph

http://map.org.ph

https://iro.ph/article_doc/aab6f057_DOF%20Presentation.pdf

For over five decades since 1967, the MAP has been conducting an annual search for “MAP

Management Man of the Year” (MMY) to recognize a person of exceptional distinction in the

practice of management over a significant period of time.

A nominee does not have to be a member of the MAP. However, please note that only MAP

members can submit nominations.

Here below for your use is the Nomination Form containing the criteria which should be

accompanied by a narrative/profile of your nominee, and comprehensive explanations why your

nominee deserves the MMY award.

The MAP MMY Search Committee, chaired by MAP’s immediate Past President Mon Fernandez, with

MAP 2017 President Marife Zamora as Vice Chair, will endorse the nominees to the MMY Judging

Committee.

The MMY Judging Committee has MAP MMY 2012 Gigi Montinola and MMY 2013 and MAP 2008

President Ed Chua as Chair and Vice Chair, respectively. The Committee members are kept

confidential until the end of the selection process.

The evaluation process consists of two stages:

1. a preliminary evaluation that will result in a shortlist, and 2. a final evaluation of shortlisted candidates from which a final choice is made by the

MMY Judging Committee.

Please note that the MMY Judging Committee may write to the nominators of the shortlisted

nominees to request additional information, if necessary.

Nominations should be submitted to the MAP Secretariat not later than August 23, 2019. Also

here below for your reference is the list of past awardees.

Presentation of DOF Secretary CARLOS G. DOMINGUEZ at the

July 1, 2019 Pre-SONA Economic and Infrastructure Forum at PICC

Call for Nominations for

“MAP Management Man of the Year 2019”

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NOMINATION FORM

for

“MAP Management Man of the Year 2019”

I nominate the following: Name : ____________________________________________________________ Position : ____________________________________________________________ Organization : ____________________________________________________________ I am submitting the following: 1. Curriculum vitae/profile with picture 2. Comprehensive Explanations on how the nominee satisfies the following criteria: 2.1 Integrity, prestige and distinction in the business community 2.2 High qualities as a manager exemplified in his/her leadership, vision, decisiveness, fairness and firmness in dealing with people 2.3 Exceptional ability for performing his/her managerial functions under exceptional conditions, such as creating and managing a new enterprise, reorganizing and re-orienting an existing enterprise, turning around a moribund company considering the difficulties of the times 2.4 Active and continuous management at top level of a private business or industrial enterprise, or a government institution for a significant length of time, and in a manner highly deserving of the recognition and commendation of MAP by reason of his/her contribution to the advancement of management as a career in the Philippines 2.5 Contribution to reshaping national values and orientation 2.6 Effective service and tangible contribution to nationwide professional, social, civic or charitable undertakings through personal initiative 2.7 The organization under his/her stewardship must have exhibited consistent exemplary performance and achieved stability under the highest standards of business ethics and practice. 2.8 The organization must be an entity operating in the Philippines and the business must have contributed substantially to the growth and development of the Philippine economy. If my nominee will make it into the shortlist of candidates for further evaluation, I hereby commit to submit additional information which the MMY Judging Committee may require. ______________________________________ _____________________ Name and Signature of MAP Member Date

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Forthcoming Events

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NOTE: Please register thru MAP for the following ANC event

to get 20% Discount for the Gold Seats.

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1. “Are we back to our wasteful ways of using water?”

from MAP Agribusiness Committee Member ERNESTO M. ORDOŇEZ’s

“Commentary” Column in the PHILIPPINE DAILY INQUIRER on July 5, 2019

Each one of us must respond urgently to the national water crisis. In Metro Manila, our

complacency has been jolted twice already.

When water started flowing again after the first wave of the water shortage, we went

back to our wasteful ways. We leave the tap open when cleaning our hands or washing

our clothes.

Then the second phase came. Supply from the Angat Dam continued to dwindle for

weeks. Supply interruptions in homes persisted.

Did the recent developments finally make us realize how precious water is?

Take note of the following: At least 55 people die every day from water-related causes;

300 out of our 1,500 municipalities are totally without water; and irrigation today

provides only 50 percent of supply needs. There is simply not enough water available

from our severely diminished water tables and sources.

In view of this, the Movement for Water Security (MWS) made eight recommendations

for the government to implement immediately. These were submitted and discussed

during the congressional water hearing on June 25, and at the Department of Agriculture

(DA)-attached Philippine Council of Agriculture and Food Climate Change Committee

meeting on June 26.

The MWS is composed of farmers, fisherfolk, rural women, professionals, industry and

agriculture leaders, Rotary Club officials, Girl and Boy Scouts, etc. The chair is former

governor and current Boy Scouts of the Philippines president Roberto Pagdanganan.

The MWS submitted the following eight urgent recommendations to the legislative and

executive branches of government:

1. Create a department of water. While waiting congessional approval, prepare an

executive order to set up a structure that will coordinate and direct 32 water-

related government agencies.

2. Aside from formulating a National Water Roadmap, implement the long-delayed

Integrated Water Resource Management framework for our 18 major water river

basins.

3. Develop and optimize our water resources by cultivating public and private sector

funding mechanisms.

Articles/Papers from MAP Members

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4. The Department of Education and the Commission on Higher Education should

urgently launch a nationwide campaign for water conservation by involving

communities.

5. Local government units and national government agencies should implement

water harvesting starting from the households in order to increase our 4-percent

rate to match India’s 60 percent.

6. The National Irrigation Administration should prioritize irrigation repairs and

rehabilitation in many areas where rates of return have been proven high. This

should be supported by farmer monitoring and involvement.

7. The Department of Public Works and Highways and the DA should fast-track the

construction of water impounding dams, the way China did so successfully.

8. The Department of Environment and Natural Resources should work with the

private sector to address what to do with our 5.7 million hectares of denuded

land. The goal is to reverse the downward reforestation trend of 360,357 hectares

in 2015 to only 132,741 ha in 2018, and to restore 300,000 ha of mangroves.

The big challenge is for the public and private sector to now join hands and take

immediate action. We must manage the water crisis, instead of this crisis managing us,

which is sadly happening today.

2. “Big in Japan”

from MAP National Issues Committee Member MIKE TOLEDO’s

“Mike About Town” Column in THE PHILIPPINE STAR on July 2, 2019

I could not emphasize enough the very good relationship that the Philippines and Japan

have, as well as the warm friendship between President Duterte and Japan Prime

Minister Shinzo Abe.

Japan was one of the first countries President Duterte visited when he assumed office,

and Prime Minister Shinzo Abe had likewise visited our country twice, also going to

Davao City.

I was part of the official business delegation that accompanied President Duterte in his

visit, which was upon the invitation of Prime Minister Abe himself (word has it that the

invitation was personally carried to President Duterte by the Japanese Prime Minister’s

representative).

Hats off to our indefatigable Trade Secretary Ramon Lopez as well as his DTI team led

by Undersecretary Rowel Barba, Assistant Secretary Angelo Taningco, Board of

Investments director Angelica Cayas and Special Trade representative Dita Angara-

Mathay for another successful organizing.

President Duterte is accompanied by Trade Secretary Ramon Lopez upon his arrival at

the Imperial Hotel for the business forum.

This Japan trip was also significant because it highlighted the race to the House

Speakership.

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The President and madam Honeylet Avanceña hosted a private dinner where the three

perceived top contenders were in attendance. In order of geographical location of district

from north to south, and not according to preference, lest I be accused of favoring one

over the other, they are Taguig-Pateros Rep. Alan Peter Cayetano, Marinduque Rep.

Lord Allan Velasco and Leyte Rep. Ferdinand Martin Romualdez.

If you recall, this was the time the President had mentioned that he would “step into the

contest,” so to speak, so all eyes were on the potential candidates, the thrill and the

suspense akin to something out of Game of Thrones, perhaps, without the fire-breathing

dragons and White Walkers.

It was a “Night of Speakers,” indeed (not of the audio component kind, mind you, of

which Japan is also famous for), because two former Speakers of the House were also

there: former Speaker Sonny Belmonte and former Speaker and Senate President Manny

Villar, the latter enthralling me with his sharing of his experience and insights in aspiring

for the Speakership before.

What both SB and MBV told me confirmed what I knew: that aspiring to be Speaker

requires a herculean effort and that being elected Speaker was just winning half of the

battle, the other half of the arduous task being the performance of the functions and

responsibilities of the office.

I spoke with the three contenders separately, and I think that all of them are most

qualified for the post — they are all well-educated, top-notch in their respective fields,

and with a wealth of experience tucked under their belts.

Whatever the outcome, I can only wish them the best of luck and that any of them would

surely serve the Speakership well.

President Duterte spoke at the Future of Asia conference organized by Nikkei. I was

privileged to have been invited to attend this prestigious event attended by political and

business leaders from the Asia Pacific region. It was in this conference where he called

on China to come up with a code of conduct for the South China Sea.

Two days prior to the Nikkei conference, the President spoke at a business forum held at

the Imperial Hotel, and this was after the signing of 26 business agreements between the

Philippines and Japan, a strong show of confidence in our local business and economy.

The business agreements had an estimated investment value of P288.804 billion or

$5.511 billion, translating into about 82,737 jobs for Filipinos.

The President concluded his working visit by having dinner with his host, Prime Minister

Abe, before flying back to Manila.

My fellow GINOO member, Presidential Legal Counsel and Spokesperson Sal Panelo

rendered an impressive song number at the dinner. Guests all thought that the President

brought along a professional singer with him all the way from Manila.

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Methinks that the GINOO — Secretary Panelo, former senator and now top hotelier Joey

Lina, and myself — are ripe for another concert. In Japan, perhaps? Ahh, that would be

one for the bucket list.

Hai!

3. “K to 12 Karat”

from MAP Inclusive Growth Committee Chair ALEXANDER B. CABRERA’s

“As easy as ABC” Column in THE PHILIPPINE STAR on July 7, 2019

Our beloved household staff member knew that economically, she was better off with us

than working as a saleslady. Apart from paying her monthly salary, free meals and

lodging (of course), she gets extra money for R&R. We also brought her with us every

now and then when we dined out. She could also pick up toiletries and “sitsirya” for

herself when she shopped for groceries. So whatever she received as salary was full and

intact.

Despite all that, she decided that she needed a life of her own. As you know, the biggest

downside of a household staff member’s job is that one lives with a family, not one’s

own, and is literally on call 24/7 except when on day off, and when asleep. It’s not that

one gets called on all the time – it’s the fact that one can get called on anytime. And

unless it’s one’s day off, there’s no time for “life” nor “love.”

We were supportive of her decision to study at an institution accredited by the Technical

Education and Skills Development Authority (TESDA). I thought it was supposed to be a

two-year thing but what happened in her case was that she studied at this private institute

in Zamboanga for a year, and underwent on-the-job training (OJT) during her entire

second year. Her school had an arrangement with a manufacturer in an industrial park in

Laguna to supply trainees there.

I think she was paid the equivalent to what a learner would get, which was lower than

minimum wage. And she had to pay her school 10 percent of what little compensation

she received. This went on for 10 months, which took up the entire second year of her

two-year vocational course. So the school only teaches for a year, and for the second

year, it acts as an unlicensed manpower supply business as it earns from students’

allowance. Net of what she paid the school, she kept for herself – about P250 per day.

From that amount, she needed to pay for her lodging, food and other necessities. Sounds

like a really super-tight budget, but she lived with what she could call freedom.

Back to her program – she enrolled in a course called “computer system servicing,”

where she just had a year of schooling and on her second year, she worked at this

manufacturer where she had a quality control job. However, it was totally unrelated to

what she studied for. She did not even test the cooling system that was supposed to pass

her scrutiny but inspected it only for outward defects like scratches, dents or any external

imperfections. In other words, there was no relation between her tech-voc course and the

job she was doing. She eventually carried on to be an apprentice for five months, then

probationary employee for six months. In total, it took her one year and nine months to

become regularly employed. A lot of labor issues there, but she gained employment.

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Her tech-voc and work experience was pre-K to 12. What is good about the K to 12

program is that TESDA issued a good curriculum that must be followed. There is a

prescribed number of hours for “immersion” or OJT (about 80 hours or more). So the K

to 12 program is richer in theories and principles, which is good. Pre-K to 12, however,

students enjoyed more protection under labor standards. Under the labor rules, they are

required to be paid as learners at not lower than 75 percent of the daily minimum wage.

Under K to 12 guidelines issued by the Department of Education, students undergoing

“immersion” are not required to be paid anything. Not even allowance. It is totally at the

discretion of the company providing the OJT whether the student gets any allowance or

remuneration at all.

There are potential labor issues here. If the K to 12 OJTs are performing functions

necessary and beneficial to the business, the “employers” shouldn’t help themselves to a

freebie.

Truth be told, employers would only be interested to hire K to 12 graduates because it is

less costly to employ them. Unless by exception, K to 12 graduates cannot compete

skillswise with a college graduate. For example, in the BPO industry, college graduates

are available and there are many good talents in the pool, including those who have taken

board exams. It does not make business sense to hire and pay almost the same amount to

someone who hasn’t had four or five years of higher education.

This builds the case to require all K to 12 graduates to take the National Certification

(NC) exams. The exam is given to test proficiency in all units of competency that

comprise the qualifications set by TESDA. The K to 12 curriculum provides the

knowledge and skill sets needed to pass the exam and gain an NC. At least, potential

employers will be encouraged to hire them because there is some seal of quality.

Students and schools will also be compelled to do good if there is a mandatory official

measure for all.

Apart from that, it will be healthy for the national labor force if companies allocate a

certain percentage of their job openings to K to 12 graduates to give this group of youth a

chance. If employers can look at them with the eyes of a parent, and the young applicant

as their child struggling for a chance, then the question of whether it makes business

sense simply becomes – whether it makes sense.

* * *

Alexander Cabrera is the chairman of Integrity Initiative Inc. (II, Inc.), a non-profit

organization that promotes common ethical and acceptable integrity standards. He is

also the chairman and senior partner of Isla Lipana & Co./PwC Philippines. Email your

comments and questions to aseasyasABC@ph.pwc.com. This content is for general

information purposes only, and should not be used as a substitute for consultation with

professional advisors.

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4. “We know what to do”

from former MAP Governor PETER WALLACE’s “Like it is” Column in the

PHILIPPINE DAILY INQUIRER on July 4, 2019

The editorial in this newspaper on June 17 lamented how we are almost last in Asia in

attracting foreign investments. It ended by saying:

“If Congress and the administration can get their act together and move to address

decisively the obstacles and bottlenecks to the entry of more foreign investors, the

Philippines may yet become a more attractive destination for doing business, and land

somewhere in the coveted upper list of beneficiaries of foreign direct investments.”

We in the business community have been telling the country’s leaders in the executive

branch and Congress the things that need to be done — for decades. They haven’t done

them, or have created laws that actually deter investments.

I can’t cover them all here, but as a start, let me raise the one I’ve done so often: security

of tenure. It’s one of the worst restrictions a country can impose. If you can’t fire

someone for incompetence or low performance, you’ll go to a country where you can.

Security of tenure ensures mediocrity and encourages laziness. Hundreds of thousands

of jobs aren’t created because businesses go elsewhere.

Worldwide, it’s been shown that successful countries provide labor flexibility.

Managers don’t fire someone for no reason; they have to hire someone else if they do,

and that’s a pain in the neck. If someone loses a job over poor performance, someone

who will work harder gets hired. Why would even the most heartless of managers want

to fire someone who’s doing a good job? No job is lost, productivity goes up and more

investors will be enticed to do business here.

As I have previously pointed out, security of tenure is reducing the number of jobs

available. And I can assure all those who still want this permanent employment concept

to continue that it is deterring many, many companies from investing further, or at all.

Trouble is, it’s (foolishly) in the Constitution, so a way around it needs to be found. That

way could be “for cause” as that is allowed, but at present it’s a bureaucratic nightmare

to get approval. So all the Department of Labor and Employment has to do is to make it

a simple, swift process with minimal requirement — just enough to stop unscrupulous

managers.

Foreign direct investment was down 15 percent in the first three months of the year to

$1.94 billion, from $2.29 billion in the same period in 2018.

A principal cause is Congress sitting on the proposed Tax Reform for Attracting Better

and High-Quality Opportunities (Trabaho) Bill. A businessman won’t put money into a

business when he doesn’t know what taxes he’ll pay and what incentives he’ll get if he

comes here.

There are many other fundamentals that need to be changed, too, but let me focus on

just some current ones the 17th Congress didn’t get around to finishing. The 18th

Congress could do the job, and quickly — if it wants to.

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1. Tax reforms I’ve mentioned. The package of four tax measures needs to be top

of the list to send to the President.

2. Amendments to the Public Service Act, which narrows down “public utilities”

to transmission and distribution of electricity, and waterworks and sewerage

pipeline distribution systems. This way, majority foreign ownership can be

attracted to other sectors serving the public. Coupled with that is—

3. The Foreign Investments Act, which needs to lower foreign investment and

employment thresholds.

4. The Build-Operate-Transfer (BOT) Law, which needs to allow other forms of

public-private partnership. This should hasten the construction of desperately

needed infrastructure in the country.

5. Amendments to the Retail Trade Act to lower the entry level for foreign retailers

to $250,000.

6. The Freedom of Information Act, which is needed to improve transparency in

government transactions and raise the Philippines’ global anticorruption

ranking—a major consideration for foreign investors when choosing where to

invest.

7. Emergency powers to declog Edsa and to hasten infrastructure construction in

major cities across the Philippines wouldn’t hurt either. If you’ve ever spent two

or three hours traversing Edsa, you’d agree.

I have a far-out suggestion for Congress: Work together when it comes to business

matters. Hold joint committee meetings that include businessmen, labor leaders,

administration officials, even selected members of the public, to thresh out all the issues

in marathon sessions to get things decided—fast.

If our politicians truly want to oversee a vibrant, successful country, they’ll focus on

making it easy and competitive to do business here. So tackle those seven bills within

the first days of session—and pass them within a month.

Give Filipinos jobs.

E-mail: wallace_likeitis@wbf.ph

5. “How poor is poor”

from MAP National Issues Committee Co-Vice Chair ELFREN S. CRUZ’s

“BREAKTHROUGH” Column in THE PHILIPPINE STAR on July 4, 2019

I have been reading that one of the greatest social and economic successes of the 21st

century is the reduction of poverty. Many economists have attributed this to

globalization, capitalism and the liberal idea of limited government. But if these were

true, how does one explain the rise of populism – a political ideology that actually pits

the “people” against the elite.

Perhaps we need to review those statistics that define who are the poor. The official

agency for measuring poverty is the Philippine Statistics Authority (PSA). According to

this institution, the poverty threshold per family per month in 2018 was computed at

P10,481. Therefore, my interpretation is that the PSA is saying that anyone who earns

more than P10,481 is not poor.

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The PSA explained that poverty threshold is the minimum required to meet the basic

food and non-food needs like clothing, fuel, light and water, housing, rental of occupied

dwelling units, transportation and communication, nondurable furnishing, household

operations and personal care and effects.

The PSA also said that there is a “food threshold” or the amount needed to meet the

basic food needs for a month for a family of five. It explained that “food threshold” is

the minimum income required to meet the basic food needs, satisfying nutritional

requirements set by the Food and Nutrition Research Institute (FNRI) to ensure that one

remains economically and socially productive.

I am sure that the economists, researchers and technocrats of NEDA, PSA and FNRI are

well meaning. However, as a non-economist and non statistician, I looked at these

poverty statistics and tried to convert them into real-life scenarios. It would seem that a

family of five with earnings of P10,500 a month { a figure above the poverty threshold)

will be able to lead a decent life and meet their basic food and non-food needs.

Let me begin with the figure for the basic food requirements – P7,500 per month. In a

family of five, each member will have a food budget of P1,500 a month or P50 a day or

Php 17 per meal. I suppose some people will still try – statistically – to prove that a

person can survive on P50 a day for food. After all, one can point out that they do not

really need viands to survive or they can just eat two meals a day. But the question is

whether that family member with a food budget of P50 a day really feels that he or she

is not poor?

After deducting the food threshold budget, a family of five will have approximately

P3,000 to satisfy their basic non-food needs. What are these? PSA says the list includes

fuel, light and water, housing, rental of occupied dwelling units, transportation and

communication, health and education expenses, nondurable furnishing, clothing,

household operations and personal care and effects. When I read this list, my personal

reaction was – are those economists and statisticians serious? Do they really believe that

a family can satisfy their basic non-food requirements with a budget of P3,000 a month?

How much does a family really need to earn to be able to lead a decent life or as the

Catholic Church puts it, a life of “human dignity”. I am looking for a more realistic

appraisal of the monthly income required for the basic food and non-food requirements

for a family. I remember that sometime last year, I think, NEDA Secretary Pernia was

quoted in media as saying that the monthly income for a family to lead a decent life was

P42,000 a month. Perhaps, NEDA can compute a more realistic poverty threshold.

I am also reminded that many businessmen confuse philanthropy and corporate social

responsibility. According to the World Business Council for Sustainable Development,

CSR is the “...continuing development by business to behave ethically and contribute to

economic development while improving the quality of life of the workforce and their

families as well as of the local community and society at large.”

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Democratic socialism

In my last column, I asked whether liberalism and capitalism are obsolete. If they are

obsolete, what is the alternative. Right now, the common answer is populism and that is

why we have seen the rise of populist leaders in the US, China, Russia, Turkey, Brazil,

Italy and other countries.

There is another alternative to capitalism – democratic socialism. Right now, two of the

four leading Democratic Party presidential candidates in the US have called themselves

Democratic Socialists. These are Elizabeth Warren and Bernie Sanders. A third

candidate is Kamala Harris who is espousing social democracy which is a form of

democratic socialism. In Germany, the second biggest political party is the Social

Democratic Party.

Broadly speaking democratic socialism is a political philosophy that advocates political

democracy alongside a socially controlled economy. Democratic socialists argue that

capitalism is inherently incompatible with the values of liberty, equality and solidarity.

Both Sanders and Warren, for example, propose the abolition of private health insurance

and propose that there be only one state owned health insurance. They also propose, like

in Germany, that labor unions should be represented on corporate boards.

If Warren, Sanders or Harris wins, we could see democratic socialism or social

democracy becoming a worldwide trend.

Creative writing classes for kids and teens

Young Writers’ Hangout on July 6, 20 (1:30 pm-3pm; stand-alone sessions), Fully

Booked BGC. For details and registration, email writethingsph@gmail.com.

Email: elfrencruz@gmail.com

The following videos are available under “MAP Talks” via the following link:

https://www.youtube.com/user/TheMAPph

1. MAP Legacy Series 2019 on ANC featuring Dr. GEORGE S.K. TY as “MAP

Management man of the Year 2006”

2. MAP Legacy Series 2019 on ANC featuring Mr. HENRY SY, SR. as “MAP

Management Man of the Year 1999”

3. Acceptance Speech of Mr. FERNANDO ZOBEL DE AYALA as “MAP Management

man of the Year 2018”

4. The MAP Lifestyle Masters on Living Well and Aging Well

“MAP Talks” on YouTube

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1.1 July 4, 2019 MAP Corporate Governance Committee’s Dialogue with former SEC

Chair TERESITA “Tess” HERBOSA

https://www.facebook.com/mapphilippines/media_set?set=a.2367116860229360&type

=3&uploaded=18

1.2 July 9, 2019 MAP Traffic, Transportation and Infrastructure Committee’s Dialogue

with the Department of Public Works and Highways (DPWH) Undersecretary for

Planning and PPP, Usec. MARIA CATALINA “Cathy” E. CABRAL

https://www.facebook.com/mapphilippines/media_set?set=a.2370462036561509&type

=3

July 1

1. Mr. FERDINAND “Ferdz” M. DELA CRUZ, President and CEO, Manila Water Co., Inc.

July 4

2. Mr. MOHAMMED NOUREDDINE “Nouredine” AYED, President, TAT - Tunisian Asia

Travel Philippines

3. Mr. JOHN PATRICK “Patrick” Y. CHAN, General Manager, The Bellevue Manila

4. Mr. TEODORO “Junie” S. DEL MUNDO JR., CEO, The EON Group

5. Mr. JOSELITO “Lito” G. DIGA, SVP and CFO, UNILAB, Inc.

6. Mr. DELFIN “Ding” J. WENCESLAO JR., Chair and President, ASEANA Holdings, Inc.

July 5

7. Mr. ANTONIO “Tony” T. HERNANDEZ, Consultant, Management and Development Finance

8. Mr. CARLO F. MATA, Director of Philippine Operations, White & Case LLP

July 6

9. Mr. BENEL D. LAGUA, EVP and Chief Development Officer, Development Bank of the

Philippines

10. Atty. GIOVANNI “Vanni” H. MELGAR, Chair, GHM Group of Companies

11. Mr. ERNESTO “Ato” TANMANTIONG, CEO, Jollibee Foods Corporation

12. Dr. BENITO “Ben” L. TEEHANKEE, Professor for Management and Organization, De La

Salle University (DLSU)

July 7

13. Mr. ANTONIO “Jim-Jim” N. CHIU, President, Coastal Highpoint Ventures, Inc.

14. Mr. ALFREDO “Fred” E. PASCUAL, CEO, Institute of Corporate Directors (ICD)

15. Mr. HANS BRINKER “Hans” M. SICAT, Managing Director and Country Manager, ING

Bank N.V. Manila

Happy to the following MAP Members who are

celebrating their birthdays within July 1 to July 31, 2019

PICTURES uploaded in the MAP Facebook account

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July 8

16. Mr. GAVIN DAVID “Gavin” BARFIELD, Chief Technology Advisor, MERALCO

17. Mr. VICTOR “Vic” L. MAGDARAOG, Senior Business Advisor - ASEAN&Korea,

Development Dimensions International

18. Mr. HERNANDO “Hernan” M. VITAS, Chair and CEO, Alta Vitas Land and Holdings, Inc.

19. Ms. JOLI CO “Joli” WU, President and CEO, QBE Seaboard Insurance Philippines, Inc.

July 9

20. Ms. MA. KARENINA “Karen” M. CASAS, COO, Sun Life of Canada (Philippines), Inc.

21. Mr. EDWARD “Ed/Eddie” S. GO

22. Mr. JOSE ANTONIO “Tony” U. GONZALEZ, Chair and CEO, Mondragon International

Philippines, Inc.

23. Mr. CESAR MARIO “Mario” O. MAMON, Chair and President, Enchanted Kingdom, Inc.

July 10

24. Mr. OSCAR “Oskie” C. DE VENECIA, Chair, Basic Energy Corporation

25. Ms. ROSANDREA “Rhea” GADDI, Managing Director, Development Dimensions

International (DDI) Philippines

26. Mr. RAFAEL “Raffy” C. HECHANOVA JR., VP for Sales and Marketing, Concepcion-Carrier

Air Conditioning Company

27. Mr. PONCIANO “Chito” C. MANALO JR., President and CEO, SM Retail, Inc.

28. Mr. ROMAN FELIPE “Manny” S. REYES, Chair, Reyes Tacandong & Co. (RT&Co.)

29. Ms. PATRICIA “Trixie” L. WHYTE, President and CEO, Q2 HR Solutions

July 11

30. Engr. EULALIO “Euls” B. AUSTIN JR., President and CEO, Philex Mining Corporation

July 12

31. Mr. ROMAN V. AZANZA III, First VP, Aboitiz InfraCapital, Inc.

32. Mr. FELIPE U. YAP, Chair and CEO, Lepanto Consolidated Mining Company

July 13

33. Mr. SERGIO BOERO, President and Co-Founder, Sunny Sonny Story, Inc.

34. Mr. MIGUEL ANTONIO “Miguel” C. GARCIA, President and CEO, DTSI Group

July 14

35. Mr. MANUEL “Manny” V. PANGILINAN, Chair, PLDT Group

July 15

36. Mr. DANILO “Danny” R. DEEN, Senior Partner, Angara Abello Concepcion Regala & Cruz

Law Offices (ACCRALAW)

37. Ms. CAMILA “Camil” G. KITANE, President, CGKformaprint, Inc.

July 16

38. Amb. JOSE “Joey” L. CUISIA JR., Chair, The Covenant Car Co. Inc. (Chevy Phils.)

39. Cong. JUAN “Jack” C. PONCE ENRILE JR., Vice Chair, JAKA Investments Corporation

40. Atty. JOSE RONALD “JRVV” V. VALLES, VP and Head for Regulatory Management,

MERALCO

July 17

41. Ms. CELINA “Celine” SALDANA BAUTISTA, President, CNM Properties & Holdings, Inc.

30

42. Dr. JESUS “Jess” G. GALLEGOS JR., Emeritus Professor, Asian Institute of Management

(AIM)

43. Ms. RUTH YU OWEN, President, Upgrade Energy Philippines, Inc.

44. Mr. CESAR L. SISON

45. Mr. RAMON “Mon” L. ZANDUETA, President and CEO, Marsh Philippines, Inc. (MPI)

July 18

46. Mr. LUCIEN “Luc / Lucien” C. DY TIOCO, EVP, Philstar Media Group

47. Dr. LYDIA B. ECHAUZ

48. Mr. NATHAN WANG, President and CEO, Asia-Crossing, Inc.

49. Don JAIME ZOBEL DE AYALA, Chair Emeritus, Ayala Corporation

July 19

50. Mr. RAMON “Mon” D. DEL ROSARIO, VP for External Relations, Pilipinas Shell Petroleum

Corporation

51. Mr. BERNARD VINCENT “Bobby” O. DY, President and CEO, Ayala Land, Inc.

52. Mr. JOSE ARTURO “Jay-Art” M. TUGADE, President - Products and Services, Perry's Fuel

Distribution Inc.

July 21

53. Mr. REUBEN “Beng” S.J. PANGAN, President, Airfreight 2100, Inc.

July 22

54. Arch. CARMELO “Meloy” T. CASAS, President and CEO, Casas+Architects, Inc.

55. Mr. MARK JUNG “Mark” CHOON, General Manager, The Peninsula Manila

July 23

56. Mr. VIRGILIO BRIGIDO “Nonoy” G. ESPELETA, President, Famcor Franchise Management

and Executive Development Corporation

57. Mr. MEDEL “Ding” T. NERA, President and CEO, House of Investments, Inc.

July 24

58. Mr. VICENTE “Jess” C. DINGLASAN, Executive Director, IDS Medical Systems Philippines,

Inc.

July 25

59. Mr. REYNALDO “Ronnie/Rey” A. DE DIOS, Risk Management Consultant, R. A. de Dios &

Co.

60. Mr. ANTONIO JAIME JOSE “JJ” VALDERRAMA FERNANDEZ, Nine-Fish Real Property

Management Services

61. Mr. PETER GRIMES, President and CEO, FWD Life Insurance

62. Mr. RAMON FERNANDO “Raymond” D. RUFINO, Co-President, The NetGroup - Real

Estate & Project Management Corporation

July 26

63. Dr. MARY ANN P. SAYOC, Lead Public Affairs, East-West Seed Group

64. Mr. ENRIQUE MIGUEL “Rikks” C. VALLÉS, President and COO, Mida Food Distributors,

Inc.

65. Mr. JAY YUVALLOS, President, YZ Global Resources, Inc.

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July 27

66. Dr. FIORELLO “Toto” R. ESTUAR, President, F. R. Estuar and Associates Development and

Management Co., Inc.

67. Ms. MARITA REGINA “Reg” L. LAQUINDANUM, General Manager, Cristina Travel

Corporation

68. Mr. MANUEL “Manny” D. RECTO, Nominee, MDR Securities, Inc.

69. Mr. ROLAND U. YOUNG, Chair, RUY Corporation

July 28

70. Mr. EDWIN LL. UMALI, President and COO, Mabuhay Vinyl Corporation

71. Mr. WINSTON P. UY, President, Universal Leaf Philippines, Inc.

72. Mr. VICTOR “Vic” B. VALDEPEÑAS

73. Ms. MYRNA T. YAO, President and CEO, Richprime Global, Inc.

July 29

74. Mr. JOSE “Nono” C. IBAZETA, Consultant, A. Soriano Corporation

July 30

75. Mr. SENEN C. BACANI, President, ULTREX Management and Investments Corporation

76. Mr. EDUARDO “Ed” L. BAÑAGA, President, Design Ambience, Inc.

77. Mr. HIGINIO “Joey” O. MACADAEG JR., President, United Coconut Planters Bank (UCPB)

78. Mr. SENEN “Bing” L. MATOTO, Consultant, Capital Markets Specialist

79. Mr. ANTHONY “Tony” K. QUIAMBAO, President and CEO, STRADCOM Corporation

July 31

80. Mr. ISMAEL “Mike” R. SANDIG, Director, AIMS Realty Development and Leasing

Corporation

81. Mr. ANTONIO “Jun” P. TAMBUNTING JR., Chair, Tiwala Sa Padala Co. Inc. (Tambunting)

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