Rigoberto Madera, the Philippine presidential candidate, who describes himself as the ultimate messiah.
Rigoberto Madera, the Philippine presidential candidate, who describes himself as the ultimate messiah.
Rigoberto Madera, the Philippine presidential candidate, who describes himself as the ultimate messiah.
Rigoberto Madera, the Philippine presidential candidate, who describes himself as the ultimate messiah.

Eccentrics queue up to be president


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MANILA // A man who thinks he is on a mission from God, another who crows like a chicken and yet another who wants to reforest the deserts of the Middle East are among the 99 people who have filed their candidacy for next year's Philippine presidential elections.

Under the constitution anyone who is a Filipino citizen, can read and write and is at least 40 years of age can run for president of this South-East Asian archipelago nation of 92 million. Convicted criminals and anyone certified as insane are excluded. All it costs is the taxi fare or bus ticket to the local electoral office to register, sign a few forms and present a nice photograph. Most of the candidates are what election officials describe as "nuisance" candidates. In previous years an Adolf Hitler and a Jesus Christ registered to run for president.

According to the Commission on Elections (Comelec) 17,880 positions are up for grabs next year from municipal councillors to president of the republic. Ana Marie Pamintuan, a columnist writing in The Philippine Star recently, said: "Success in this country is measured chiefly in terms of wealth, and Filipinos see only a few sure paths to fortune. Not education, not innovation, and certainly not honest hard work.

"One sure path is entertainment. No need to be a college graduate, no need to be on one's best behaviour, and the job requirement includes doing one's best to look good. "For those who are not blessed with real talent, movie star looks, or the guts to display cleavage nurtured, there's another sure path to fame and fortune. It's less glamorous and the job can be acutely boring, so movie stars see it only as part of their retirement plan. But this is where the biggest bucks are made. And if you can yawn your way through the job, day in and out, and still get paid for it, it's not such a bad career shift - politics."

Ben Diokno, a professor of economics at the University of the Philippines, said: "Money is the key - if you don't have at least five billion pesos [Dh400 million] to run a credible campaign there is no point applying." According to James Jimenez, a spokesman for Comelec, 99 candidates for president is a record but by the time the applications are processed between now and February the number will be reduced to five or perhaps seven serious contenders.

In 2004, 84 people filed their nomination papers for president, but after they were vetted the number was reduced to five. It is expected that the final list of candidates will feature Benigno "Noynoy" Aquino, 49, an uncharismatic senator who has done little in office but is perceived by the electorate as honest. He tops the opinion polls. Mr Aquino would never have been pushed into the limelight if his mother and former president, Corazon, had not died this year. Mrs Aquino was loved throughout the country and was credited with restoring democracy to the country after the dark years of the dictator Ferdinand Marcos.

Behind Mr Aquino is a self-made multibillionaire senator, Manuel Villar, 59, who grew up in abject poverty in the Tondo district of Manila. Next is the former disgraced president, Joseph "Erap" Estrada, 72. Gloria Macapagal Arroyo, his vice president, cut his term short in 2001 when he was thrown out in what he often claims was a coup led by the rich, church and business elites. He was sentenced to life in 2007 for corruption, but Mrs Arroyo pardoned him a few weeks later.

There is the government's candidate and former defence secretary, Gilberto Teodoro, 45, a cousin of Mr Aquino's. Articulate and intelligent, he stands only a slim chance of winning. He hardly rates in the polls. Then there are 95 others, such as Rigoberto Madera, who describes himself as "Star General Ace Diamond, Commander-in-Chief on Earth - Emperor, Ultimate Messiah", who was quoted recently as saying: "Even if I am rejected in the vetting process, I will run for president of the United States, after Barack Obama."

One candidate is the chicken man George Samia, 60, who has said he stands for nothing and crows because it's fun. Another is David Alimurung, 70, who represents the "Majestic Alliance of Positive Activists" who wants to reforest the Middle East. According to Mr Jimenez, all candidates will be considered, but in the end, "the main thing is: are they running in good faith or are they mocking the electoral process?"

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says. 

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.