‘Over fashion’

This is the only country in the world that gives too much emphasis on fashion for a very serious event like the opening of the new session of Congress and the President’s State of the Nation Address. As pointed out by many foreign observers we spoke with, this obsession with fashion is already getting out of hand, with people focusing more on what legislators, their spouses and other guests are wearing. I don’t think they have anything like this in other countries, not even in the US during the State of the Union address of the US President. The SONA has become like Hollywood’s Oscar awards.

This is most likely media driven, with the so-called “Fashion Police” coming out with their “Best Dressed” and “Worst Dressed” lists – pitting certain ladies (and consequently, fashion designers) against each other in what is being dubbed as the “wardrobe wars” as they report on who’s wearing what. People find this ridiculous considering the fact there is still so much poverty in the country and ironically even in the vicinity near the Batasan, with the cost of one gown, they say, enough to feed a family of five for several months.

Observers also find it rather unfortunate that an important occasion like the SONA could become the source of ridicule, with netizens making memes out of the outfits and having a field day posting and sharing these memes or Instagramming the outfits that have grabbed their attention – whether for better or worse. Malacañang is right – people should listen more to what the President will say rather than be obsessed with the clothes that people are wearing.

Sinking feeling at KL airport

Seven months after Malaysian Transport Minister Seri Liow Tiong Lai visited the premises of Malaysia’s new budget terminal – Kuala Lumpur International Airport 2 or KLIA2 – to check on the reported sinking, defects continue to surface with cracks appearing in the taxiway and pools of water also forming.

In December last year, the Malaysian Transport Minister had promised an independent audit committee report would be released to the public on whether action would be taken against contractors who would be deemed accountable for the substandard work. Reports also say the original construction expenses estimated at RM 1.7 billion had ballooned to RM 4 billion. To this day, however, no report has been made, with the Transport ministry saying it will release the audit report “in due course.”

AirAsia, which is KLIA2’s biggest user having flown over 15.2 million passengers since the terminal opened in May last year, is definitely unhappy because the cracks on the taxiways could cause serious safety concerns, not to mention flight delays and bigger maintenance expenses due to the increased wear and tear on the planes that have to drive through the cracks and the water puddles. The new terminal can accommodate up to 45 million travelers, with other carriers such as Tiger Airways, Malindo Air, Lion Mentari and Cebu Pacific among those that utilize the new airport.

According to operator Malaysia Airports, they are fixing the problems by patching and resurfacing the cracked areas and injecting polyurethane underneath, adding a more permanent solution will be provided by April next year when the concrete slab is completed. Malaysia Airports also said updates regarding the progress of maintenance work are being sent to AirAsia on a weekly basis, pointing out other airports such as Suvarnabhumi in Bangkok and Kansai International in Osaka also initially experienced similar problems. Nevertheless, many are not impressed saying Malaysia has to improve standards especially in the aftermath of the mysterious and still unsolved disappearance of Malaysia Airlines flight MH370, and the subsequent shooting down of flight MH17 over Ukraine in July last year that left 298 people dead.

No to Landbank-DBP merger

Retired banker Archit Bartolome emailed us expressing relief the President did not sign the proposed executive order that would merge Land Bank of the Philippines with the Development Bank of the Philippines – which would make LBP the surviving bank. 

Legislators and officials should revisit the role and function of government banks and review their charter, Archit said, adding the merger should not be seen in the context of attaining size and scale in order to be competitive in the local and regional markets. “Instead, the role of a Government Financial Institution (GFI) should be viewed with the intent of how best to carry out the cornerstone of the administration’s economic and social programs, inclusive and sustainable growth,” he stressed.

Government financial institutions should create an environment of a level playing field between and among the private banks and not compete head-on with them, he pointed out, adding the performance of GFIs should not be evaluated on the conventional approach of ROI, but on the basis of how much the financial institution has supported the financial needs of government and its instrumentalities.

Archit proposes that instead of a merger, government would be better off if it privatized the Landbank (which is easy to sell and can command a good prize) and keep DBP as the GFI. Landbank was created for the purpose of financing the acquisition and distribution of agricultural estates that would be resold to small landowners, but it has not lived up to its purpose. Selling it would help strengthen the government’s fiscal position and help in financing socio-economic programs, he argues. DBP, meantime, can continue to function as the government’s policy bank as it plays a catalytic role in the development of sectors that are critical for inclusive growth. If other Asian countries have done it, why can’t we do the same, Archit points out.

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