BusinessMirror April 21, 2015

U.S., PHL START COMBAT DRILLS AMID MASSIVE CHINA RECLAMATIONS M

PROTESTERS display placards during a rally at the Chinese Consulate at the financial district of Makati City on April 17 to protest against Beijing’s land-reclamation activities on disputed territory in the South China Sea. The protesters, led by Party-list Rep. Neri Colmenares of Bayan Muna, urge China to “stop its reclamation activities in the Mischief Reef.” AP

2006, 2010, 2012

U.N. MEDIA AWARD 2008

A broader look at today’s business TfridayNovember 18,2015 2014Vol. Vol.1010No. No.194 40 Tuesday, April 21,

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PRAYERS FOR HEALING (ADAPTATION) AND LOUIE M. LACSON

Word&Life Publications • teacherlouie1965@yahoo.com

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Life BusinessMirror

Tuesday, April 21, 2015

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B N J. S | Milwaukee Journal Sentinel

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LANNING to remodel your kitchen? Those of us who have been there are happy to share advice. Most of these tips would apply to any remodeling project.

Take your time picking a builder, contractor or designbuild firm. Interview more than one, ask many questions (and pay attention to not just the answers, but to how the answers are given), check references, listen to your gut.

And then when you have a contract, read it line by line, word by word, and get all of your questions satisfactorily answered before you sign.

Expect upcharges, and build them into your budget.

Some change orders will be beyond your or your builder’s control (surprises discovered during demolition, requirements imposed by your municipality’s architectural review board), and others you will initiate as new ideas come forth or you change your mind. (You will change your mind, most certainly more than once.)

Beware: These projects have a way of leading one to the next. As long as they were having their kitchen remodeled, Carol Moresco-Goniu and her husband, Richard Goniu, figured they might as well redo the powder room, too. And then, the master bathroom suddenly looked ripe for a redo. Lisa Ziolkowski also replaced the front door and gave the front hallway, powder room and sun porch a facelift and had the living room and dining room repainted.

Try to stay ahead of the game. If you’re told you won’t have to empty your cabinets for another month, do it in two weeks.

Plan to spend lots of time online, where choices in everything from lighting fixtures to furniture and kitchen accessories are endless.

Pick what you love. Know what the trends are, but don’t let them influence you unduly. “It’s important to have an idea of what you’re after,” said Moresco-Goniu, “but be open to suggestions.”

“You’ve got to do a little bit of homework,” Goniu advised.

Anticipate problems. You can’t get discouraged. Referencing the problems they had with their cabinets, Goniu said, “Most people would get angry. I was disappointed, but we made the decision not to push [the builder] to get it done. We said, ‘Take your time and do it right.’ If you get upset and angry, you’ll have nothing but disappointment.”

“Stay calm,” Ziolkowski advised. “Your life is in disarray, but when it’s done, it’s so worth all the time and headaches.”

DECISIONS TO CONSIDER BEFORE A KITCHEN REMODEL CHOICES, choices. For some people, it’s a fun opportunity; for others, a stressful chore. Given the cost of remodeling, whatever you choose— whether it’s appliances, cabinet color, floor style or countertop—you’ll have to live with it for a long time.

So it’s best to have a pretty good idea of what you want (or at least, think you want) before you begin. Here are 10 core decisions you should think through in advance when planning to remodel your kitchen: 1. Footprint. Will you work within your kitchen’s current dimensions, or do you want the room to be bigger? In which direction would you expand, and what are the ramifications for the rest of the house?

2. Cabinets (looks). Custom or prefab? Wood species, stain and glaze color, door style—all these decisions and more will need to be made.

3. Cabinets (configuration). For lower cabinets, you could do doors and shelves (pullout or stationary), or you could go with deep drawers. You probably want some of each, but how many and where? Will you have any pantries? How many and what size? Any pullout cutting boards? And how do you want to handle those pesky corners?

4. Countertops. Granite, quartz, laminate, concrete, wood or a combination. They all have their pros and cons. If going with granite, you’ll need to pick a pattern, then your specific slab(s), as well as weigh in as to how the slab will be cut for the various portions of countertop in the room. All of this takes time. Take as much as you need.

5. Floor. Hardwood is still popular, but durable luxury vinyl tile, ceramic tile and bamboo are other choices to consider.

6. Appliances (if buying new). Will you replace all of them, or only one or two? Will you match the color of existing appliances or go with what you eventually want them all to be? Do you want one oven or two? There are too many choices to list here, but keep in mind some of the newer options like a small beverage fridge and a microwave-convection oven combination.

7. Placement of appliances. It can be hard to picture yourself in a whole new space cooking dinner, but it’s worth making the effort. Moving the stove or fridge over a few inches could make all the difference.

8. Lighting. Pay close attention to where the can lights are placed in the ceiling. We ended up adding one directly above the sink that wasn’t in the original plan and are so glad we did. Also think through where you want light switches (every doorway is a good start). Do you want dimmers? What kind of under-cabinet lighting?

9. Colors. The good news is, wall colors can easily be swapped out.

Not so with tile backsplashes, lighting fixtures or other colorful features you choose.

10. Miscellaneous: How hard could it be to pick out cabinet hardware? They’re just knobs and handles, after all. Answer: harder than you think. Other decisions you’ll need to be ready to make include the type of sink (material, one basin or two, built-in soap dispenser or not, etc.), type of faucet and color of outlets and switchplates. ■

LIFE

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BOAT TRAGEDY RAISES PRESSURE ON E.U. GOVERNMENTS TO ACT BusinessMirror

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B3-1| Tuesday, April 21, 2015 • Editor: Lyn Resurreccion

BANJO TOSS (left), musicians Eli Smith, Rashad Brown, Ernesto Gomez and Karen Polisk serenade participants as they parade to the banjo tossing arena shortly before the start of the fifth annual Brooklyn Folk Festival’s Gowanus Banjo Toss on Sunday in the KA HY WILLENS Brooklyn borough of New York. Smith, far left, is the event’s founder. AP/P/PKAT

Boat tragedy raises pressure on EU governments to act

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European Union (EU) foreign ministers meet on Monday as the continent races to address a humanitarian crisis that critics say the bloc’s governments helped create. Italian Prime Minister Matteo Renzi said 25 bodies have been recovered and 28 people have been rescued from the ship that capsized late Saturday off the Libyan coast. A survivor told Italian officials there were 950 people onboard, the news agency Ansa reported. Renzi said determining the exact number may be impossible.

“I’ll present a set of proposals for Libya, one of the main routes of illegal trafficking of migrants,” EU foreign policy chief Federica Mogherini said in a statement on her web site ahead of a meeting of the group’s Foreign Affairs Council in Luxembourg.

Conflict-wracked Libya is being used by growing numbers of refugees as an embarkation point to reach Europe. More than 35,000 asylum seekers and migrants have already arrived by boat this year, according

to the Office of the United Nations High Commissioner for Refugees.

If the toll of the latest tragedy is confirmed, about 1,600 people will have died in 2015, the office said in a statement. That compares with 3,500 deaths and 219,000 successful crossings in 2014, it said.

Mass grave

“A MASS grave is being created in the Mediterranean Sea and European policies are responsible,” Loris De Filippi, president of the Italian branch of the medical humanitarian group Doctors Without Borders, said in an e-mailed statement. “Faced with thousands of desperate people fleeing wars and crises, Europe has closed borders, forcing people in search of protection to risk their lives and die at sea.”

Italy and Malta, the closest European countries to the doomed vessel, deployed navy and coast guard ships on Sunday to find survivors.

“We need to take bold actions

to deal with the growing migration crisis,” Dimitris Avramopolous, Europe’s commissioner for migration, said in a statement on Sunday.

The UN agency quoted Maltese authorities as saying 700 people were onboard when the vessel left the Libyan port of Zuara. A Maltese military official, who asked not to be identified, said the boat capsized about 61 nautical miles (113 kilometers) north of Libya late Saturday.

Human trafficking

ITALIAN news reports said the boat capsized when the passengers hoping to be rescued rushed to one side after spotting a merchant ship.

“Acting against human trafficking must stop being an Italian-only or a Maltese-only priority,” said Renzi, who added that he discussed the latest sinking with counterparts including French President François Hollande and German Chancellor Angela Merkel, and that he hopes an EU summit on migration can be held by on Friday to follow up on Monday’s talks.

There’s no decision on a possible EU summit.

Renzi has called on Europe to help stabilize Libya and has offered to lead a UN-backed mission into the North African country should diplomatic efforts fail. Italians were among the last foreigners to evacuate Libya in February when the embassy in the capital Tripoli was forced to suspend its activities due to increased violence.

N THE GULF OF MEXICO—Five years after the worst US offshore oil spill, the industry is working on drilling even further into the risky depths beneath the Gulf of Mexico to tap massive deposits once thought unreachable. But critics say energy companies haven’t developed the corresponding safety measures to

prevent another disaster or contain one if it happens—a sign, environmentalists say, that the lessons of BP Plc.’s spill were short-lived.

The explosion aboard the Deepwater Horizon drilling rig engulfed the high-tech platform in flames, killed 11 men and injured hundreds.

Oil, natural gas and toxic sludge poured into the Gulf for 87 days as

regulators, industry and the White House struggled to contain the offshore disaster.

Since the Macondo disaster five years ago on Monday, federal agencies have approved about two dozen next-generation, ultra-deep wells.

The number of deepwater drilling rigs has increased, too, from 35 at the time of the Macondo blowout to 48

US Trade Representative Michael Froman (left) meets Japanese Economy Minister Akira Amari in Tokyo. Top Japan and US trade officials met, seeking to close gaps over autos and farm trade before Japanese Prime Minister Shinzo Abe visits AT RU HARUNA/SANKEI SPORTS SHIMBUN VIA AP,P,P POOL Washington later this month. ATA

Japan, United States talks seeking compromise on farm, auto trade

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OK YO —Japan’s top trade negotiator met with US Trade Representative Michael Froman on Monday, seeking to resolve differences on autos and farm exports that are hindering progress toward a Pacific Rim trade deal. Economy Minister Akira Amari, Japan’s top trade negotiator, sought to keep expectations low.

“I expect the exchanges to be extremely severe,” Amari said of the talks, which began late Sunday. “I will do my utmost to narrow the gap between Japan and the United States while firmly keeping in mind our national interest.”

Amari said the two sides were still trying to resolve differences over removing trade barriers in key areas.

Japan wants greater market opening for its exports of autos and auto parts.

The US hopes to export more rice, pork and other farm products to Japan.

The talks between Japan and the US are part of negotiations among 12 nations participating in the US-led Trans Pacific Partnership (TPP), which eventually aims to create a free-trade zone in the Asia-Pacific region.

Amari earlier said that some of the remaining issues between Japan and the US would likely be resolved at upcoming 12-nation talks.

He has downplayed the possibility of a deal with the US before Prime Minister Shinzo Abe visits Washington later this month. An agreement

by US lawmakers last week to propose legislation allowing President Barack Obama to negotiate trade accords for overall congressional review appeared to help move things along. AP

by the AP shows the average ocean depth of all wells started since 2010 is 40 percent deeper than the average well drilled in the five years before that. And that’s just the depth of the water.

Drillers are exploring a “golden zone” of oil and natural gas that lies roughly 20,000 feet (6,095 meters) beneath the sea floor, far deeper

than BP’s Macondo well, which was considered so tricky at the time that a rig worker killed in the blowout once described it to his wife as “the well from hell.” Geophysicists estimate oil companies can unleash Saudi Arabian-like gushers at these unprecedented depths from fields capable of yielding up to 300,000 barrels of oil a day. AP

WORLD

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Sports BusinessMirror

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| TUESDAY, APRIL 21, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

JIM FURYK prevails for the second time at RBC Heritage, the other coming in 2010 in what turned out to be the best year of his career. AP

‘A BIG EYE OPENER’ B

RINDISI, Italy—Serena Williams thought she was ready for the clay-court season.

As it turns out, the top-ranked player still has a long way to go toward finding the form that could propel her to a 20th Grand Slam title at the French Open.

“Today has been a big eye opener,” Williams said after coming back from a set down to post a windy, error-filled 4-6, 7-6 (3), 6-3 win over Sara Errani on Sunday in a Fed Cup playoff against Italy.

Brindisi-born Flavia Pennetta then routed 65th-ranked Christina McHale, 6-1, 6-1, and Pennetta and Errani beat Williams and Alison Riske, 6-0, 6-3, in the decisive doubles match to give Italy a 3-2 win.

“I need to go home and really train,” Williams said. “I’m totally not as ready for clay-court season as I thought I was....

Next time I’ll be really, really ready and I’ll know what to expect.

Now I’m in the mind-set of, ‘You know what, I’m not on hard court.’ I’m playing like I’m on hard court and I’m not. So I have to play and be ready to hit a thousand shots if necessary.”

Williams also won her opening singles match last Saturday but the US sorely missed her sister Venus Williams, who withdrew from the US team due to a personal matter.

Also missing was rising star Madison Keys, who declined an invitation from US captain Mary Joe Fernandez.

“Everybody that could be here was here,” Fernandez said.

Italy returns to the World Group and can compete for

the Fed Cup trophy next year while the US is relegated to World Group II. It was Williams’s first career loss in the Fed Cup, dropping to 16-1—13-0 in singles and 3-1 in doubles.

Errani and Pennetta celebrated by throwing water at each other and captain Corrado Barazzutti, and dancing on the red clay court.

Italy has now beaten the US five consecutive times, including back-to-back finals in 2009 and 2010.

“When we won those two finals everyone said, ‘Well, the Williams didn’t come,’” Barazzutti said. “So having Serena here makes this a little bit sweeter. We showed we’re one of the best teams in the world no matter who we play against.”

In her singles match, Williams held a massive 70-7 lead in winners but she committed nearly three times as many unforced errors as the 15th-ranked Errani—61-23.

Until the very end, Williams struggled to dictate play against someone who had never before presented her with serious problems.

“I don’t think I ever really got the hang of it,” Williams said. “I really struggled today in the wind, on both sides. I don’t know what side was worse for me. Usually I’m able to adjust and it’s a little disappointing that I wasn’t able to adjust sooner.”

Still, Williams improved to 20-0 this year in singles.

But Williams usually dominates Errani by taking

advantage of the Italian’s weak serve. This time, the wind prevented her from stepping too far into the court.

The Circolo Tennis Brindisi is located next to the southern city’s port and a sharp breeze was blowing off the bay.

Williams and Errani often had to catch their tosses and start their service motions over again, or delay play when the wind whipped clay into their eyes between points.

“The wind helped me,” Errani said. “Against a player like her it favored me.”

With the soldout crowd of 4,000 chanting her first name, Errani served for the match at 5-4 in the second set but Williams played solidly and then the American surged to a 6-1 lead in the tiebreaker and pushed it to a third.

There were four consecutive breaks of serve to open the third set and it was tied 3-3 before Williams finally surged ahead.

“I had a great experience here in both singles and doubles,” Williams said. “I realized there are some things I want to work on. So I’m going to go home, train a little bit and get ready for the rest of the season.” AP

FURIOUS FURYK B P I The Associated Press

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ILTON HEAD ISLAND, South Carolina—Jim Furyk had gone 100 starts without winning, a stretch that gnawed at his psyche and challenged his confidence.

That all disappeared in uncharacteristic fashion last Sunday, when he won his first Professional Golfers’ Association (PGA) Tour title in five years with birdies on both playoff holes to outlast Kevin Kisner at the RBC Heritage. When the winning putt fell on the par-three 17th, the typically reserved Furyk dropped his putter and punched the air.

“I think getting excited on 17 there was a lot of pent-up frustrations,” he said.

Furyk won for the second time at RBC Heritage, the other coming in 2010 in what turned out to be the best year of his career. He won two other events, including the Tour Championship, and captured the $10-million FedEx Cup. Furyk won the 2003 US Open and entered this tournament ranked 10th in the world, but he has struggled to close out events. He was 0-of-9 when leading tournaments after three rounds since that Tour Championship victory.

He is 44 and always believed he’d win again.

“But I was starting to feel like this game is beating me up, and the losing hurts a lot more

than winning feels good,” he said. “I think I just forget how good” it feels to win.

With that came a $1.062-million payday.

For Kisner, it was his best finish on the PGA Tour.

Furyk led by a stroke when Kisner birdied the 72nd hole to force the playoff, the fourth in the last six tournaments at Harbour Town Golf Links. On the first extra hole, Kisner rolled in a second-straight birdie putt on the 18th.

But Furyk answered with a birdie to keep the playoff going. After Kisner missed his birdie try on No. 17, Furyk sank a 12-foot putt for his 17th career PGA Tour victory.

Furyk shot a 63 and Kisner a 64, leaving them both at 18-under 266. Third-round leader Troy Merritt was at 16 under after a 69.

Defending champion Matt Kuchar (68) was at 14 under and Masters winner Jordan Spieth (70) was eight shots back.

It was an odd tournament for Furyk.

He looked as if he’d get left behind early, making 18 pars in the first round to fall five shots back. Furyk found his game last Friday with eight birdies on the way to a 64. He had a 68 last Saturday, yet knew he needed to fire himself as he did last Friday to have a chance.

Boy, did he ever.

Furyk had six birdies on his first nine holes, including a 48-footer on the par-4 eighth that moved him in front. A bogey on the 11th dropped Furyk into a four-way tie for first, but

he responded with birdies on three of the next four holes and seemed set for an easy ride.

When his long putt on No. 8 rolled in, Furyk said he began to think “this may be the day.” Kisner, though, chased him down on the back nine. He birdied the 14th and 15th to pull within a stroke and stuck his approach on the signature lighthouse hole at No. 18 within 7 feet for a tying birdie.

Kisner kissed his wife, Brittany, and 10-month-old daughter Kathleen on the way to the scoring trailer to prepare for more golf.

Furyk is used to such grinding at Harbour Town. When he won in 2010, Brian Davis tied him on the final hole to force a playoff—won by Furyk when Davis struck a loose impediment on his swing and called a penalty on himself.

Kisner expected Furyk, who made 11 birdies in 20 holes, to tie him after his putt on the first playoff hole.

“You don’t expect a guy of Jim’s caliber to miss a 6-footer straight up the hill,” Kisner said.

Merritt fell to third after a third 69. His other score was a course-record tying 61 in the second round on Friday. Merritt couldn’t keep up with Furyk’s charge and lost his chance after hitting out of bounds on No. 12

and taking double bogey.

Merritt made up for it a few holes later with an eagle-2 on No. 16.

Spieth closed an amazing fivetournament stretch. He won the Valspar Championship a month ago and followed that with seconds at the Texas and Houston opens before matching Tiger Woods’s record of 18 under at Augusta National. For Spieth, 19 of his past 20 rounds have been under par.

Spieth had a whirlwind media tour in New York on Monday and Tuesday before arriving at Hilton Head. Now the 21-year-old Texan wants to get back to Dallas in time to attend the Academy of Country Music Awards. He’ll return to golf in two weeks at the World Golf Championship Match Play event.

Divots: Tom Watson finally played like his age, the 65-year-old finishing with a 5-over 76 after making the cut at Harbour Town with a birdie on the 18th hole last Friday.

Watson says playing tour courses is taking a toll on “this old body.” ...Golfers went off in groups of three on the first and 10th tees starting at 7:30 a.m. to beat expected stormy weather later in the day.

NIGERIA, ALGERIA SEE OIL PRICES STAYING LOW FOR A LONG TIME

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FURIOUS FURYK SERENA WILLIAMS posts a windy, error-filled 4-6, 7-6 (3), 6-3 win over Sara Errani on Sunday in a Fed Cup playoff against Italy. AP

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“NO solution to the migrant crisis can be found without a stabilization in Libya,” Renzi told reporters on Sunday. Hollande said in a Canal Plus television interview that he had called Renzi “to see how we can act urgently.”

“The Mediterranean is a sea we share, between Africa and Europe, so we have to act. More boats, more overflights with planes and a much more intense fight against the trafficking,” Hollande said.

Italy has faced a wave of migrants and refugees from Africa and the Middle East who board unseaworthy vessels in Libya, paying traffickers to take them across the Mediterranean to seek refuge in Europe. Italian politicians have been seeking international support to cope with the influx.

“The problem is not the control of the sea, it is rather to destroy the human traffickers, the 21st century’s new slaveholders,” Renzi said in a post on Twitter after meeting earlier in the day with Mogherini in Rome.

Doctors Without Borders and other groups have repeatedly urged EU nations to undertake large-scale search and rescue activities to avoid more deaths at sea.

“If confirmed, this would be the largest tragedy ever in the Mediterranean involving migrants,” Maltese Prime Minister Joseph Muscat said in a telephone interview. “Nobody should be allowed to die this way.”

Bloomberg News

last month, according to data from IHS Energy, a Houston company that collects industry statistics.

Department of Interior officials overseeing offshore drilling did not provide data on these wells and accompanying exploration and drilling plans, information that the Associated Press (AP) requested last month.

But a review of offshore well data

B L L

NERGY Secretary Carlos Jericho L. Petilla is pushing the creation of a nuclear regulatory body that will review the possibility of reviving the mothballed and controversial Bataan Nuclear Power Plant (BNPP).

No solution

5 years after BP spill, drillers push into riskier depths O

P.  |     | 7 DAYS A WEEK

“I don’t want to decide on it [alone]. We must have a nuclear regulatory body to decide on it because that is a very sensitive issue,” Petilla said.

Among others, the body will address the safety concerns raised by various sectors that are against the revival of the power facility. “No one will sell uranium to us if we have no nuclear body. This is a big task,” the energy chief said.

The BNPP will require $400 million to $600 million to revive the abandoned facility. “The structures are older,” according to Petilla.

The $2.3-billion nuclear power plant was built

World

HE capsizing of a boat carrying hundreds of refugees on the Mediterranean Sea raises pressure on European governments to ratchet up search and rescue measures to save migrants fleeing conflict in Africa and the Middle East.

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2 STEPS TO FAMILY-FRIENDLY DESIGN »D4

Tips on what to expect during kitchen remodeling

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Petilla favors creation of nuke body

TIPS ON WHAT TO EXPECT DURING KITCHEN REMODELING Our healer and source of all hope

Coloma confirmed that an undeterred President Aquino is also expected to prod fellow leaders at the upcoming Asean Summit in Malaysia to facilitate the adoption of a binding Code of Conduct covering countries with conflicting territorial claims.

At a media briefing, Coloma confirmed reports that the Philippines and Vietnam are working out a “strategic partnership” to counter Chinese aggression in their territories, but he added that the details are still being “worked out.”

“The details of the proposed strategic partnership are still being defined and worked out by the two countries. So, that is the current status,” Coloma told Palace reporters.

PROPOSED NUCLEAR REGULATORY BODY TO REVIEW POSSIBILITY OF REVIVING MOTHBALLED BNPP

INSIDE

LMIGHTY God, we give You thanks, for You are the creator of all life and goodness. We praise You for the world You have made us to build up and enjoy. Loving God, help us to be faithful heralds of healing and hope. Grant us the awareness of the healing needs of those around us and the compassion to respond willingly to those needs. We ask this through Christ, our healer and source of all hope. Amen.

ancing and pivot of forces in the region to effectively help check China’s aggressive reclamation and encroachment “activities” in the West Philippine Sea. Communications Secretary Herminio B. Coloma Jr. cited concerns raised by Washington officials over recent developments in brewing territorial conflicts in the region, particularly the Philippines and Vietnam, among other Asian countries sharing borders with China.

The secretary pointed out that the Obama administration was also quick to address fastchanging situations in the region.

Coloma noted that no less than US President Barrack Obama aired apprehension over the reports.

BusinessMirror

THREETIME ROTARY CLUB OF MANILA JOURNALISM AWARDEE

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ORE than 11,500 American and Filipino military personnel launched one of their largest annual combat-readiness exercises on Monday amid growing alarm over massive land reclamations by China in disputed West Philippine Sea (South China Sea) territories.

Philippine military officials said the Balikatan (or shoulder-to-shoulder) maneuvers, which involve more than 90 aircraft and ships, were not directed at China. But the venue of some of the war games in waters facing the disputed region and a focus on territorial defense appear to link the exercises to the long-simmering conflict.

Malacañang on Monday affirmed it is banking, among others, on the US’s rebal-

SPORTS

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IL prices are likely to stay low for a long time after falling more than 40 percent in the past year, said officials from two members of the Organization of the Petroleum Exporting Countries (Opec).

Nigeria and Algeria both warned that oil prices, currently at around $60 a barrel, probably won’t recover to the 2011-2013 level of more than $100 a barrel.

“You forecast at your own risk, but it seems to me that we should be regarding this as a permanent shock,” Ngozi Okonjo-Iweala, the Nigerian finance minister, said on a panel discussion on Sunday in Washington near the end of the International Monetary Fund’s spring meetings. “We should prepare our economies for that eventuality.”

The comments highlight a growing worry among oil-producing nations ahead of an important Opec meeting in June in Vienna. Brent crude has fallen about 42 percent over the past year, though it has increased 11 percent so far this year.

PESO EXCHANGE RATES ■ US 44.3370

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SUMMER DAYS A tourist jumps into the clear waters of Lake Danao in Ormoc, Leyte. The lake attracts both foreign and local tourists because of its pristine waters, allowing residents in the area to earn extra income as they help the local government maintain and take care of the lake. NONIE REYES

Planned Ayala mall in Parañaque to dwarf SM MOA B C M-C Correspondent

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HE city government of Parañaque announced that Ayala Land Inc., the property-development arm of the Ayala group, is joining the action at the Manila Entertainment City in Parañaque with its plan to build a huge mall complex.

Mayor Edwin L. Olivarez said that, according to documents, Ayala Land’s plan includes the construction of a businessprocess outsourcing (BPO) hub and a hotel at a 9-hectare property in the Entertainment City.

Olivarez said the decision of Ayala Land

OLIVAREZ: “We welcome with open arms Ayala Land’s investment, which we estimate should create at least 10,000 new jobs for our people and help sustain the country’s robust economic growth.”

to invest in Parañaque is a huge vote of confidence for the city, which, in 2014, was adjudged the country’s most competitive city in terms of economic dynamism, and

is now dubbed the Mega City by the Bay. “This is another affirmation of Parañaque’s emergence as a new economic and business hub,” he said.

He added: “We welcome with open arms Ayala Land’s investment, which we estimate should create at least 10,000 new jobs for our people and help sustain the country’s robust economic growth.”

Olivarez said Ayala Land filed an application for a locational clearance with the city’s Local Zoning Board of Adjustments and Appeals for its Entertainment City project, which is entirely within the jurisdiction of Barangay Tambo in Parañaque.

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■ JAPAN 0.3729 ■ UK 66.3415 ■ HK 5.7197 ■ CHINA 7.1537 ■ SINGAPORE 32.9570 ■ AUSTRALIA 34.4285 ■ EU 47.9239 ■ SAUDI ARABIA 11.8232 Source: BSP (20 April 2015)

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News

BusinessMirror

Tuesday, April 21, 2015

US, phl start combat drills amid massive China reclamations Continued from A1

Shortly before overseeing the start of the military exercises, Philippine military chief Gen. Gregorio Pio Catapang Jr. held a separate news conference to release surveillance photos showing Chinese reclamations in eight previously submerged reefs in the disputed Spratly Islands, saying Beijing’s actions increase the risk of an accidental confrontation.

“We have compelling reasons to raise our voice to tell the whole world the adverse effects of China’s aggressiveness that has created tensions not only among the countries who have overlapping claims in the area,”Catapang said.

Once completed, the artificial islands could be transformed into offshore military bases with airstrips and maritime patrol hubs that could threaten the freedom of navigation in that section of the South China Sea, with busy oil and commercial cargo lanes, he said.

Catapang said some of the reclamation projects were several kilometers (miles) from a Philippine-occupied island and a reef, raising the possibility that Chinese military patrols could cut off Manila’s access, along with that of Filipino fishermen, to those areas.

Philippine government agencies were meeting to determine how to respond to the situation, Catapang said, adding the country wants a peaceful resolution based on international laws.

Chinese officials have defended the land reclamations by saying it is Beijing’s territory, adding that the reclamations were for publicservice use and to support fishermen.

But the Philippine military has said the massive scale of the reclamations and the emergence of runway-like facilities raise the possibility they could be for military use to reinforce China’s extensive territorial claims.

The chain of Spratly Islands, reefs and atolls where most of the Chinese land reclamations

have been detected, has long been contested

by China, the Philippines, Taiwan, Malaysia, Vietnam and Brunei Darussalam. Aside from possible oil and natural-gas resources, the vast region also straddles busy sea lanes and teems with rich fishing grounds.

Catapang admitted on Monday that China’s improvement of Mischief Reef has permanently altered the security landscape in the West Philippine Sea, especially once Beijing completes the construction of the airfield in the artificial reef.

Mischief is only one of the reefs that China currently occupies and improves at fast pace in the disputed territory. It included Kagitingan, Mabini, Chigua, Cuarteron, Burgos, Subi and Gaven Reefs.

Catapang said once the airstrip becomes operational, then China can project power deep into the country’s territory in the West Philippine Sea, which is now the cause of serious concerns for top officials.

“We have to prepare for that scenario, and we are, we are closely morning the development in the area. But we have plans, we have plans…we have contingencies if the situation happens in the area,” he said.

The top military chief showed military reporters the current state of China’s ongoing construction activities in the Mischief Reef, which he said was very compelling for the Philippines to raise its voice and“tell the whole world the adverse effects of China’s aggressiveness that has created tensions not only among the countries who have overlapping claims in the area, but also among the countries around the world who are using the international sea lanes in the WPS for trade and commerce.”

Catapang said that Mischief’s improvement altered the country’s security landscape in the south, more so that it also affects access to the other islets that the country claims, including Ayungin Shoal.

“We feel we are in a very difficult situation now because they are reclaiming the Mischief Reef. So if they reclaim the Mischief Reef, we will be cut off. We have a series of islands going down south, going up north and it will challenge the Ayungin shoal,” he said.

He also raised the possibility of a direct confrontation between Chinese and Filipino soldiers who would be guarding two different posts but are near with each other.

The chairman of the Senate Committee on Finance, Chiz Escudero, urged the government to immediately convene the National Security Council (NSC) to map out plans in the face of China’s aggression over the West Philippine Sea. Escudero said the government must push through with the arbitration process of the territorial dispute, and this must be done in coherence with all key players, starting with the government.

The Philippines has a pending case before the Permanent Arbitral Tribunal in The Hague.

It has asked the United Nations Convention on the Law of the Sea to define the limits of China’s nine-dash line, which intrudes into the country’s exclusive economic zone. The decision is hoped to be handed early next year.

In House Resolution 2031, Party-list Reps. Neri Colmenares and Carlos Isagani Zarate of Bayan Muna urged the leadership of House of Representatives to use its international parliamentary networks to condemn China’s aggression.

“It will not be difficult to get the support of parliaments and their individual members because our exercise of sovereignty is based in international conventions and practices.

We may not win through military might but certainly we are strong in the legal, moral and diplomatic arenas,” they said. Butch Fer-

nandez, Recto Mercene, Rene Acosta, Jovee Marie N. Dela Cruz, AP

news@businessmirror.com.ph

Petilla favors creation of nuke body Continued from A1

between 1976 and 1984 on a 357-hectare government reservation at Napot Point in Morong, Bataan. Talks on the BNPP’s revival started last year when Petilla said the facility, which has potential capacity of 600 megawatts (MW), could help ease the country’s power-supply problems. Petilla, however, stressed then that the Department of Energy (DOE) was not reviving the BNPP facility.

Korean Electric Power Corp. (Kepco) previously expressed interest to put up a 600MW coal-fired power plant adjacent to the BNPP. Petilla said he was allowing this on the

condition the Kepco’s proposed facility will not be built near the BNPP. “As long as there is still no decision yet on BNPP, it is okay for Kepco to put up a coal plant.

But they have to locate it in an area where it would not adversely affect the BNPP,” Petilla said.

The energy chief earlier said converting the mothballed nuclear facility into a coal-fired power plant was an option “but not to the point that it would kill the viability of the BNPP before it is actually concluded.”

Petilla said the property where the BNPP is located is owned, not by the DOE, but by the Department of Finance.

Planned Ayala mall in Parañaque to dwarf SM MOA The application was swiftly approved by the board last week, he added.

The mayor said the Ayala decision proves that his administration’s “Invest in Parañaque” program, which is aimed at attracting more quality, long-term investments that create stable jobs, is beginning to yield dividends. He said more businesses have expressed similar interest to locate

in Parañaque in the coming months.

Lawyer Melanie S. Malaya, head of the city’s Business Permits and Licensing Office and a member of the board, said Ayala Land’s specific application is for the construction of a mall along Macapagal Avenue, which, she said, will be bigger than the nearby SM Mall of Asia (MOA) complex.

The MOA is listed as having 407,000 square meters in gross floor area. Claudeth Mocon-Ciriaco

Poorest Filipinos. . .

BOP. . .

Continued from A1

Continued from A8

a focus for international and national development policy.” The goals are eight specific, measurable and time-bound goals anchored on eradicating poverty by 2015.

These goals are to end extreme poverty and hunger; achieve universal primary education; promote gender equality and empower women; and reduce child mortality.

Other goals are to improve maternal health; combat HIV/AIDS, malaria and other diseases; ensure environmental sustainability; and develop a global partnership for development.

Continued from A8

due to the Fed’s sustained forward guidance, the central bank said it was not keen on revising the assumed numbers making up the BOP, as they remain cautious of shifts likely happening within the year.

“While the BOP for the first two months of 2015 looks promising because of good currentaccount and capital- and financial-account positions, we have to be very cautious of possible global growth risks and those that could trigger financial-market volatilities,” Deputy BSP Governor for the Monetary Stability Sector, Diwa C. Gunigundo said.

The Nation BusinessMirror

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Editor: Dionisio L. Pelayo • Tuesday, April 21, 2015 A3

BBL’s provision on police worries legislators

A

By Jovee Marie N. dela Cruz

MEMBER of the House Ad Hoc Committee on the Bangsamoro basic law (BBL) on Monday expressed concern over a BBL provision giving the operational control of the local police to the future Bangsamoro chief minister.

Laban Rep. Celso Lobregat of Zamboanga City said during the House’s 44th public hearing on the BBL that the operational control of the Bangsamoro police should remain under local governments.

“The operational control and supervision under the National Police law, or Republic Act [RA] 6975 as amended by RA 8551, is given to the town and city mayors, however, under the BBL, the chief minister of Bangsamoro has the operational control of [Bangsamoro police]… that’s why BBL takes away operational control from the mayors and the National Police,” he said.

Under House Bill 4994 or the proposed BBL, the operational control of the local police will be elevated to the regional government.

It provides that the Bangsamoro government shall have the primary responsibility for public order and safety within the region.

Defense and security, however, shall be the responsibility of the central government.

Centrist Democratic Party Rep. Rufus Rodriguez of Cagayan de Oro, chairman of the 75-man House Ad Hoc Committee on BBL, also said that allowing the future Bangsamoro

chief minister to have the full operational control of the Bangsamoro Police will transgress the National Police law.

“BBL violates the PNP law on operational control of the regional police force by the [future] chief minister of Bangsamoro region,” Rodriguez said.

He, however, said that this provision is among the eight BBL provisions that the ad hoc panel is set to amend.

Rodriguez said that Moro Islamic Liberation Front has no option but to accept the House of Representatives version of the proposed BBL.

Unconstitutional provisions

RODRIGUEZ said that among the unconstitutional provisions which the panel is set to delete, are those authorizing the new Bangsamoro administration to have its own version of the Commission on Elections, Ombudsman, Civil Service Commission, Commission on Audit, and Commission on Human Rights creating its defense and police forces.

In the Senate, Sen. Ferdinand Marcos Jr. has said that the question of the police body in the Bangsamoro will also be scrutinized in the next

Senate hearing on the BBL. Earlier, Government Peace Panel Chairman Miriam Coronel-Ferrer clarified that the Bangsamoro police will not be a separate entity from the National Police.

“Regional police commands in the country like the one in the Autonomous Region in Muslim Mindanao,” Ferrer said, debunking allegations of unconstitutionality.

According to the chief negotiator, this is clearly stated in Article XVI, Section 2 of the proposed BBL. “Consistent with the Constitution, the Bangsamoro police force will be under the command and direction of the National Police chief and the administrative control and supervision of the Napolcom [National Police Commission]. The recruitment, training and promotion of personnel, the acquisition of firearms and other adjunct services shall remain under the National Police’s jurisdiction,” Ferrer said.

But the chief negotiator admitted that operational control of the Bangsamoro police will reside in the chief executive of the regional government.

Meanwhile, Senen Bacani, a member of the Government Peace Panel admitted that there are “imperfections” in the measure but they will leave the matter to lawmakers to decide which parts are unconstitutional.

Group assails BBL

A MINDANAO-based organization has assailed the BBL as falling short of the Moro people’s aspirations.

“We from the Suara Bangsamoro have been very critical at the content of the BBL because it falls short of the aspirations of the Bangsamoro people’s struggle for genuine right to self-determination. The BBL is

Group blames Jakarta, Manila for Veloso’s plight

By Marvyn N. Benaning Correspondent

T

HE human-rights watchdog Karapatan has urged United Nations Human Rights Council (UNHRC) President Joachim Rucker to prevent the scheduled execution of an overseas Filipino worker by an Indonesian firing squad.

In a letter dated April 15, Karapatan asked Rucker to cite both Indonesia and the Philippines, state parties to international human-rights covenants, for failing to respect Mary Jane Veloso’s right to due process, legal assistance and violation of fair play and due process.

“We appeal to the UNHRC to exercise its moral suasion on the Indonesian government in overturning the death sentence on Veloso and possibly grant her clemency. We implore the council to take meaningful measures, including a review of human-rights records and compliance to international human-rights instruments of its member-states, to hold the Indonesian and Philippine governments accountable for this injustice on Veloso and her family,” Karapatan said.

Karapatan Secretary-General Cristina Palabay told Rucker that Veloso, a mother of two, was sentenced to death by the Indonesian Supreme Court in April 2010 for drug trafficking.

Palabay said Veloso worked in Dubai from 2009 to 2010 and came back to the Philippines the same year after her employer allegedly tried to rape her.

“On April 22, 2010, she was illegally recruited by the daughter of her godfather to work as a domestic worker in Malaysia. When she arrived in Kuala Lumpur, the same person told her that the job was not available anymore and that she would instead be transferred to Indonesia,” contrary to the terms of her contract.

“Upon her arrival at the Yogyakarta airport, Veloso was apprehended by customs officials. It was there that she found out that she was tricked into carrying luggage containing 2.6 kilos of heroin wrapped in aluminum foil, with an estimated street value of $500,000.

She had been set up as a drug mule and was arrested by the police,” Palabay added.

Perhaps aware that Veloso was merely used by a drug syndicate to bring the stash to a contact in Yogyakarta, Indonesian prosecutors asked that she be sentenced to life in prison but the court instead slapped her with a death sentence.

Karapatan argued that Veloso never understood Bahasa and, during her investigation, the interpreter employed was a mere student who was not accredited

as a court translator.

Worse, Palabay told Rucker, the Philippine Embassy never provided her with a lawyer and was represented by a public defender summoned by the police.

Without proper counsel and without competent translation of the proceedings, Veloso was practically given a raw deal, Karapatan insisted.

“Veloso’s case was submitted for judicial review, but her appeal was rejected by the Indonesian Supreme Court last March 26, 2015. News reports state that Indonesia is preparing to transfer Veloso from the city of Yogyakarta to the maximum security prison in Nusakambangan Island of Central Java to await execution by firing squad,” Palabay told Rucker.

“The Philippine government did not provide a lawyer during the crucial period of her six-month trial. Mary Jane was convicted after a very brief trial period—on October 2010, just six months after she was arrested. Public prosecutors asked the court to sentence Mary Jane to life imprisonment but the judges handed down a death sentence. Based on the timeline provided by the Department of Foreign Affairs, the Philippine Embassy in Indonesia appealed the trial court sentence to the Indonesia Court of Appeals in October 2010. The embassy-hired lawyer filed a final appeal to the Supreme Court in February 2011,” she added.

“We fully agree with Migrante International, an organization of Filipino migrants handling the case of Veloso, that the Philippine government’s appeal for clemency for Mary Jane since 2011 was a passive and perfunctory effort, with no further attempts of such after the moratorium against executions was lifted by then newly elected Indonesian President Joko Widodo. Philippine President Benigno Aquino III only intervened more than a year after Veloso had already been sentenced to death, through a request for clemency with then-President Susilo Bambang Yudhoyono who imposed a moratorium on executions during his term.

“This was later rejected by Widodo, who lifted the moratorium as soon as he took office,” Karapatan added.

“For five years, the Philippine government and its DFA did not actively initiate contact and worked with the Veloso family, nor provide regular updates on the status of her case. According to Mary Jane’s parents, Cesar and Celia, and her sister, Maritess, they learned of Mary Jane’s imprisonment not from the government but from a phone call from Mary Jane herself, and a few days later from her alleged recruiter, Kristina Sergio,” Palabay said.

RECOVERY IN SIGHT

A boy and his father return from fishing on a wooden boat on the shore of Leyte. The people in the place are slowly recovering from the devastation wrought by Supertyphoon Yolanda (international code name Haiyan). NONIE REYES

limiting and counterposing this right with the Philippine Constitution,” Suara Bangsamoro National Spokeman Amirah Lidasan said.

“BBL disregarded the reasons the Moro people remain poverty-stricken, enduring a backward economy and its communities are in conflict.

Instead of addressing these issues, the BBL copied the development paradigm and programs, as well as security policies of the national government, which in the past have been the complaint of the Moro people and were deemed discriminatory,” she added.

“The issue being tackled at Congress, namely the Bangsamoro police and armed forces, highlights

only the chain of command but glosses over issues of human-rights violations brought about by the same national security policy that the BBL is being subjected to adopt,” Lidasan concluded.

‘Do not to undermine BBL passage’

A GRASSROOTS network of tribesmen, Muslim and Christian communities in Mindanao are urging Rodriguez to refrain from “unduly preempting the decision of the other committee members by refraining from giving his personal opinions on some provisions of the BBL.” “The Mindanao Peoples Caucus

[MPC] and its allied civil-society organizations and grassroots communities appeal to Chairman Rufus Rodriguez to immediately stop issuing statements over the media that preempt the democratic processes in the legislative work on the Bangsamoro basic law,” the MPC said in a statement.

The Ad Hoc committee on the BBL resumed its hearing on the controversial bill on Monday.

MPC said Rodriguez’s pronouncement on his own personal opinion is tantamount to “undermining the process by preempting the votes of each and every member in the 75-member ad hoc committee.” With Recto Mercene, Marvyn Benaning and Bong Fabe

Economy

A4 Tuesday, April 21, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Customs cash collection up by only 1% in Q1–Sevilla

T

By Joel R. San Juan

HE Bureau of Customs (BOC) on Monday said its cash collection for the first quarter of 2015 went up by merely 1 percent compared to the same period of last year.

At a news briefing, Customs Commissioner John Sevilla attributed the BOC’s sluggish revenue growth for the first quarter to the decline in collection from oil products brought about by the continuous drop in the prices of oil products.

“The 53-percent decline in oil prices from the first quarter of 2014 to the first quarter of 2015 was the main factor in the slowdown in collection growth,” Sevilla said.

He also noted that revenue collection for the month of January was also affected by the five-day visit of Pope Francis in the Philippines.

“Mahina talaga ang January mainly because nandito si pope at ilang araw na nasara ang ports. Nakita talaga natin ang impact nun pero mukhang bumawi ng February and March,” Sevilla told reporters.

While oil import volumes went up by 19.5 percent, Sevilla said the

sharp decline in oil prices, and shifts in the import mix toward higher crude oil imports at the expense of higher value finished products led to a 38-percent decline in collections from oil products.

Based on its data, the BOC’s total revenue collection for the period of January to March of this year amounted to P92.2 billion, or P11.1 billion short of its target of P103.3 billion.

The amount, however, is higher by 6.6 percent, or P5.7 billion, compared to its collection in the same period of last year.

The BOC’s total cash collection for the first quarter, according to Sevilla, is P87.3 billion, which is P16 billion lower than its target of P103.3 billion but 1 percent higher that the collection made during the same period of last year.

However, Sevilla said collections from non-oil products continued to

grow strongly, partly offsetting the drop in collections from oil.

“Non-oil products grew by 23.9 percent or 24 percent, thats solid, solid na solid ang nangyayari sa nonoil. So from that point of view, kung tatanungin nyo ako, is Customs doing its job in terms of collection? I think we are, kasi kung ano nangyayari sa oil market obviously cannot control,” Sevilla said.

He also disclosed that collections from non-oil products grew by 24 percent, as imports of motor vehicles, food, iron and steel machinery, and chemical compounds all showed very strong growth.

Total collection for non-oil products for the first quarter of this year amounted to P77.2 billion, which is 24 percent, or P14.9 billion, higher compared to the same period of last year.

For oil products, the BOC collected a total of P14.9 billion for the first quarter of 2015, which is 38.1 percent, or P9.2 billion, lower compared to the same period last year.

Meanwhile, Sevilla said the realistic revenue target for 2015 should be P373 billion, instead of the P436.5 billion given by the Development Budget Coordination Committee.

It can be recalled that the BOC collection target was cut by P20 billion—from P456 billion to P436.5 billion—to account for lower fuel prices.

PCCI, DepEd ink dual training accord for high-school students

By Catherine N. Pillas

T

he Philippine Chamber of Commerce and Industry (PCCI) has partnered with the Department of Education (DepEd) to equip students with industry experience as part of the rollout of the K to 12 Program.

In a ceremony on Monday, the country’s largest business organization inked a memorandum of understanding with the DepEd to

promote the Dual Training Program among senior high-school student (SHS) as their mode of fulfilling the Technical-VocationalLivelihood Track (TVET).

The TVET is among the tracks offered by the DepEd in its overhaul of the educational system to K to 12 which added two years of specialized education in high school.

Dual training, as defined by Republic Act 7686, or the Dual Training System Act of the Philippines,

combines practical application skills with theoretical knowledge.

The PCCI, through the PCCI Human Resources Development Foundation (HRDF), will be implementing a Dual Training Program for SHS who choose the TVET. The students are expected to gain knowledge of the industry, as well as access to facilities and human resources, to better equip them with the needs of the industry and increase their chances of employment.

BIRD WATCHING

Sen. Cynthia A. Villar joins members of Wild Bird Club of the Philippines on bird-watching trip at the Las Piñas-Parañaque Critical Habitat and Eco-Tourism Area and the Ramsar List of Wetlands of International Importance on Saturday. The 175-hectare protected mangrove forest and marine habitat at the cities of Las Piñas and Parañaque is the sanctuary of the 84 bird species, including Philippine duck, Chinese egret and black-winged stilt and migratory birds from Siberia. PNA

Experts push for ‘sustainable’ procurement

G

lobal experts on procurement called on gover nments to integ rate sustainability and impact on the environment into the procurement system to ensure efficient public spending and reduce carbon emissions.

Eveline Venanzoni of the Swiss Federal Office for the Environment said governments’ legal and institutional frameworks should integrate Sustainable Public Procurement (SPP) that focuses on the environment, social and economic impact of public spending.

“Policies and structures [in public procurement] should be aligned with the governments’ international commitments to reduce carbon dioxide emissions and improve biodiversity,” Venanzoni said during the Global Procurement Conference at

the Makati Shangri-La. She said that SPP considers lifecycle approach and total cost of ownership to facilitate procurement procedures by governments.

Venanzoni, also head of the Marrakech Task Force (MTF) on SPP, said the life-cycle approach involves planning, raw material, production, procurement, use and disposal when making public procurement.

The MTF is a group of 14 countries, including the Philippines, seeking to integrate environment, economic and social impact into the procurement system.

The task force defines SPP as “a process whereby organizations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the orga-

Ilocos Norte seaport marked for cruise tourism development

briefs nhmfc expands i.s.o. certification Vice President and Chairman of the Housing and Urban Development Coordinating Council (HUDCC) Jejomar C. Binay announced that the National Home Mortgage Finance Corp. (NHMFC) expanded the ISO certification of its Borrower Counseling System.

NHMFC secured an ISO 9001:2008 certification for its Extra Judicial Foreclosure of Account and Custodianship of Title.

“This expansion shows that NHMFC is meeting the needs of its customers with service on par with world-class quality standards, and I congratulate NHMFC President Felixberto U. Bustos on this achievement,” Binay said.

“I trust that by adhering to these stringent international standards, NHMFC and the housing sector will be able to provide more affordable and quality homes to Filipino families,” he added.

ISO 9001:2008 specifies requirements for a quality management system where an organization needs to demonstrate its ability to provide consistently product that meets customer and applicable statutory and regulatory requirements. PNA

L

AOAG CITY—Owing to a growing interest in cruise tourism in various strategic locations in the country, the international seaport of Currimao is a step closer to promote Ilocos region as a perfect getaway for cruise liners.

Ma. Milagros Gonzales, provincial director of the Department of Tourism (DOT)-Laoag suboffice, said that following the February visit of the vice president for Royal Carribean Cruise Lines at the Currimao seaport, a management consultant of Australia will be assisting the DOT in the preparation of a cruise-tourism strategy to run the proposed project smoothly.

On April 22 and 23 Gonzales said a board inspection and briefing will be held at the Philippine Ports Authority (PPA) based in Currimao as the group will also proceed to Salomague port in nearby San Fernando City, La Union, to discuss possible partnership and arrangement before embarking on cruise tourism here.

Citing the numerous conduct of shore excursion here, the DOT is optimistic that cruise tourism in this northern part of Luzon is now ready for launch with the recent expansion and development at the Currimao seaport and a growing menu of new tourism sites in the province. If plans do not miscarry, a two-hour travel connecting the ports of Currimao and Salomague will provide new experience for tourists as they will have more time to visit other tourism spots in adjacent municipalities such as Batac City and Paoay.

With the booming Northeast Asia zone, the Ilocos Norte government is eager to welcome this new development and make the international seaport of Currimao as the next stop for cruise tourism. Earlier, the PPA announced that the Currimao seaport in Ilocos Norte, along with the ports of Puerto Princesa and Catagbacan in Bohol province, have embarked on various port-development programs for the development of cruise terminals in support of the DOT’s continuing efforts to make the Philippines known as the “Carribean of Asia.” PNA

nization but also to society and the economy, while minimizing damage to the environment.”

Executive Director Jose Tomas Syquia of the Philippine Government Electronic Procurement System said the country’s procurement system is still focused on checking the compliance of stakeholders.

“The bulk of the weakness [in the Philippine procurement] is in planning,” Syquia said at the opening of the two-day forum.

He said that the government needs to provide the public with the processed information such as guidelines on the most bought items by the government.

The two day global forum on procurement aims to highlight value for money with integrity, key regulatory as well as institutional reforms.

Estrella Torres

d.i.l.g., napolcom warn public of spurious groups soliciting donations for saf 44

Beating the summer heat

A group of children takes a dip at the waters of Manila Bay along Roxas Boulevard to beat the scorching summer heat, unmindful of warning raised by health and city hall authorities about the risks of swimming in the bay’s polluted waters. PNA

The Department and the Interior and Local Government (DILG) and the National Police Commission (Napolcom) warned the public against spurious groups reportedly soliciting donations through text messages for the families of “SAF 44,” and even dropping the names of the secretaries of the Interior and Local Government and the National Defense to make the scam more credible.

This was a bared by Napolcom Vice Chairman and Executive Officer Eduardo U. Escueta after the DILG issued a memorandum categorically denying any involvement in such solicitation activity.

In the said memorandum, the DILG said that is does not authorize anybody to solicit donations on its behalf nor encourage any form of solicitations for the families of “SAF 44” among its personnel and employees.

Escueta said the Napolcom is committed in preserving its integrity and enjoins its personnel nationwide to refrain from entertaining or getting involved in this kind of activity. PNA

news@businessmirror.com.ph

Economy BusinessMirror

Tuesday, April 21, 2015 A5

Filipino teens dropping out of school to get married–PSA

Govt allots P30.8B to fill up 86K+ job vacancies in the bureaucracy

O

he Department of Budget and Management (DBM) on Monday disclosed that a total of P30.8 billion is allotted to fund 86,994 unfilled positions in the government, contrary to the 190,000 positions reported in media recently.

By Cai U. Ordinario

ut-of-school youths nationwide cited marriage or union as the top reason they dropped out of school, according to the 2013 Functional Literacy, Education and Mass Media Survey (Flemms).

Based on the Flemms, the Philippine Statistics Authority (PSA) showed that nearly 4 million, or 22.9 percent, of out-of-school children and youth have entered into marriage.

"Out-of-school children is defined in the Flemms as persons aged 6 to 14 years who are not attending school, while out-of-school youth as persons aged 15 to 24 years who are not attending school, have not finished any college or post-secondary course, and are not working," the PSA said.

Between male and female students, more females are dropping out of school because of marriage.

Data showed that 36.2 percent, or around 4 out of 10, out-of-school female teenagers have dropped out of school because of marriage.

Data showed that only 1.7 percent of male students dropped out of school because of marriage.

It can be noted that more male students, 33.1 percent, however, have dropped out because of the lack of personal interest.

Among females, those who dropped out of school because of the lack of personal interest was at 10.3 percent.

Another top reason for dropping out of school is low family income.

Around 19.2 percent cited insufficient family income as the reason for not attending school.

The PSA said the proportion of out-of-school children and youth whose family income was not sufficient to send a child to school was 22.7 percent and 17 percent, among males and females, respectively.

In 2013 the PSA said 1 in every 10, or about 4 million, Filipino children and youth was out of school.

Out-of-school children and youth in the Autonomous Region in Muslim Mindanao (ARMM) comprised 14.4 percent, which is the highest across regions.

Six regions that have a proportion of out-of-school children and youth

higher than the national average at 10.6 percent were Soccsksargen, Davao, Central Luzon, Zamboanga Peninsula, Caraga and Mimaropa (ranging from 11.2 to 12.3 percent).

Further, the proportion of out-of-school children and youth was lowest in Comprehensive Agrarian Reform at 7.1 percent.

The PSA said that, in general, the proportion of persons who are out of school was higher among the youth than among children.

Excluding CAR, the proportion of out-of-school youth across regions ranged from 14.5 percent to 20.4 percent. For children, the figure ranged from 1.7 percent to 4.9 percent, except the ARMM with 10.9 percent.

The 2013 Flemms is a nationwide survey covering around 26,000 sample households. For this survey round, Region 8 was not incorporated due to Supertyphoon Yolanda.

The survey seeks to gather information on the basic and functional literacy status, educational skills qualifications of the population and exposure to mass media.

Hanjin Subic shipyard bags contract for world’s biggest container vessels

By Henry Empeño

Correspondent

S

UBIC BAY FREEPORT—Shipbuilding giant Hanjin Heavy Industries and Construction Co.-Philippines (HHIC-Phil) has cornered a contract to build in this free port some of the biggest ships in the world—three ultra-large container ships (ULCS) that can accommodate up to 20,600 twenty-foot equivalent units (TEUs).

The order for three ultra-large containers was placed

by French shipping firm CMA CGM, Hanjin said in a news statement released here on Monday.

CMA CGM, which is the third-largest containershipping company in the world, has long been a customer of HHIC-Philippine, and bought its first Subic-made ship, the 4,300-TEU CMA CGM Turquoise, in September 2008.

Hanjin said each of the three new shipbuilding projects would measure 400 meters long, 59 meters wide and 33 meters deep.

“With a deck just as large as the area of four football fields, each of the three ULCS can load up to 20,600 TEU containers,” Hanjin said. That number of containers, when lined up, would stretch to 126 kilometers, or 36 kilometers longer than the 90-kilometer distance from Subic to Manila, it added.

HHIC-Phil President Jong Sup- shim said that so far, only two other shipbuilding nations had received orders for ULCS—Korea and Japan.

With the CMA CGM contract, Jong said that the Philippines is now poised to join that elite circle of major shipbuilders.

“Having successfully closed a deal with CMA CGM means that the competitiveness of our Subic shipyard is now widely acknowledged in the international business community,” Jong said.

“Consequently, this will boost the current global shipbuilding status of the Philippines even more, making the country a key player in the industry far and wide,” he added.

HHIC-Phil, which set up shop here in Subic in 2007,

briefs aquino names ex-cavite gov new pcso chief

President Aquino has named former Cavite Gov. Erineo Maliksi, a known administration ally, as new chairman of the state-run Philippine Charity Sweepstakes Office (PCSO). The Office of Executive Secretary Paquito N. Ochoa Jr. confirmed late Monday that President Aquino signed Maliksi’s appointment on April 17 as member of the PCSO board of directors, subsequently nominating him as incoming board chairman.

Before his latest Palace appointment, Maliksi was elected governor of Cavite for three consecutive terms from 2001 to 2010, after serving as representative of the province in Congress for two separate terms, from 1998 to 2001 and from 2010 to 2013. Maliksi first served as mayor of Imus, Cavite, from 1988 to 1998. Butch Fernandez

Hanjin Heavy Industries and Construction Co.-Philippines’s shipbuilding facility at the Redondo Peninsula in the Subic Bay Freeport will build some of the world’s biggest ships. Hanjin photo

has cemented the Philippines’s claim to fame as an emerging shipbuilding center.

In recent years the company has successfully delivered 14 5,400-TEU container ships to overseas customers and has recently won contracts for six 11,000-TEU container ships to be delivered to various shipping companies in Europe and Asia from 2016 to 2017.

The new orders, Jong said, underscores the company’s world-class stature in the highly competitive shipbuilding market.

As of now, Jong said that Hanjin has focused on the rapid advancement of ULCSs, which cost less but are more profitable.

Jong said that because one of Hanjin’s drydocks here in Subic measures 550 meters long and 135 meters wide, the company can undertake construction of two of such ship at once.

The Hanjin official added that the firm’s continued success amid global uncertainties could be attributed largely to “our well-experienced and highly skilled Filipino manpower and the relentless pursuit of enhancing our ‘safety first’ culture.”

The Korean company now employs more than 27,000 Filipino workers that serve in various phases of shipbuilding here.

lawmaker proposes high school for sports Alarmed by the Philippine sports’ declining performance in the international arena, Sen. Paolo Benigno Aquino IV has filed a bill seeking to establish a Philippine High School for Sports (PHSS) that will provide quality sports trainings for student-athletes.

Aquino said the sports school will address the international competition woes that the Philippines has suffered in the previous major events, including the Asian Games and Southeast Asian Games.

“Through the PHSS Act, we have the opportunity to support young athletes and provide them valuable education along with quality sports training,” Aquino said in filing Senate Bill 2697.

Aquino proposed that the PHSS should offer free secondary course with special emphasis on developing the athletic skills of students through subjects pertaining to physical and sports development. PNA

T

The latter figure comprises the Staffing Summary of the 2015 National Expenditure Program (NEP), which shows the number of permanent positions per agency and the amount required for these positions.

The 2015 NEP reported that there are 1,433,186 permanent positions in the government, and that 86 percent, or 1,244,931, are filled while 188,255 are unfilled. However, of this amount, only 86,994 unfilled positions can be provided for based on the funding requirements of agencies for 2015.

Lodged under the Miscellaneous Personnel Benefits Fund (MPBF), the 2015 national budget can provide funding for unfilled positions of select agencies, which primarily covers education and health care. This includes the following agencies: Department of Education (DepEd)

State Universities and Colleges Department of the Interior and Local Government (DILG)—which also includes the Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP) and Philippine National Police (PNP) Technical Skills and Development Authority, under the Department of Labor and Employment National Defense College of the Philippines, under the Department of National Defense (DND) Philippine Science High School, under the Department of Science and Technology Commission on Higher Education.

For the hiring of hospital personnel, the Department of Health (DOH) and Veterans Memorial Medical Center under the DND are included in the list. Meanwhile, there is also an allotted amount for funding unfilled

positions in the Autonomous Region in Muslim Mindanao.

Budget Secretary Florencio B. Abad said, “The administration is committed to providing our people with job opportunities, especially during this period of robust growth, requiring the support of a skilled and able work force. The national government needs to employ more teachers, nurses and other crucial personnel in order to maximize the delivery of social services.”

Of the total number of unfilled positions, more than half, or 44,602, are for teaching and nonteaching personnel in the DepEd. This is followed closely by agencies in charge of safety and security (BFP, BJMP and PNP) under the DILG, and health-care personnel in the DOH. Meanwhile, some P16.7 billion has been allotted for the creation of 65,204 positions, which includes various agencies such as the DepEd, DOH and DILG. Abad said, “It’s in our best interest to fulfill the required job positions in the national government as they serve a twofold purpose.

We give jobs in the government to Filipinos who have the appropriate work skills and we ensure that our programs are carried out by suitable personnel. In doing so, we’re able to respond to the needs of all of our countrymen.” PNA

A6 Tuesday, April 21, 2015

Opinion BusinessMirror

editorial

Are you thinking of your retirement?

R

ETIREMENT. A scary little word for some, but for many, it’s something to look forward to. After decades of breaking bone and stretching muscle, even a good workhorse is entitled to a vacation.

But retirement seems to be the final leg. Not even a monthlong furlough or the seasonal summer shutdown. Some see it as a glass half-full: The worker’s reward after decades of nonstop hauling and fawning. For others however, it offers the spectacle of a half-empty goblet, the scissor of the Fates cutting down to size the little of what is left of a person’s usefulness.

Whether you think of retirement as an end or that chance at a new beginning, it pays to know what to do.

Sulking in a corner, of course, is out of the question. With the retirement pay you’d be getting, the chance at being an entrepreneur looms larger than when you were still a struggling employee. It would be wiser to take all chances at learning the business ropes, while you are still an employee. Attend workshops and seminars on how to establish a small- or medium-scale business.

Take the time out to strike a conversation with young entrepreneurs. There’s a lot to learn out there. No mariner of note sets his sail without learning where he wants to go.

Business is all about finance. Thus, it pays to put to practice all you’ve learned through the years about managing your finances. Business people call and conduct themselves as “men in a hurry.” Don’t waste time as time, for want of a better cliché, is gold. Learn and practice what you’ve learned.

Save up for the expected rainy day. Hold back from spending at least 10 percent to 20 percent of your allotted wages. This you can add to the retirement pay that you’ll be getting. A savings of this magnitude after 20 years of work can spell success for any who would try it. Remember one rule: Destiny favors the bold. It’s one thing to read about swimming; it’s quite another to jump into the water.

Retirement also offers more time to rethink one’s status in life and directions to be later pursued. Hence, sharing what you’ve learned in all your years as employee, and later as entrepreneur, to young hopefuls.

Who knows? Perhaps one day, what you’ve always considered as a pain in the backside may help another achieve his success? Good always awaits the generous spirit, and not in the least, those who offer more than mere principled assistance.

Last, don’t slack off from doing the math. Years of retirement can be best secured by periodically studying where you are and your finances. You can do this on your own or perhaps, rent the services of a financial analyst. To further your goals even in retirement, always seek to expand.

Change is good. It keeps the business, as well as yourself, upbeat and inthe-know. The last thing you’d want is to be shrugged aside as a has-been.

Why we need to strengthen the police, military Manny B. Villar

THE Entrepreneur First of 3 parts

M

ORE than two months after the Mamasapano tragedy, debate continues over who is to blame for the death of the 44 commandos from the Philippine National PoliceSpecial Action Force (PNP-SAF).

The Senate has finished its investigation, but the House of Representatives has just resumed its own inquiry on the same subject, with basically the same witnesses as those who testified before the Senate panel.

The PNP’s Board of Inquiry has also submitted its own report on the operation to arrest Malaysian terrorist and bomb-maker Zulkifli bin Hir, alias Marwan. The Federal Bureau of Investigation (FBI) has confirmed that Marwan was killed while resisting arrest in Mamasapano on January 25.

On that basis some police officers declared the operation as a success, but many people could not accept the fact that 44 SAF commandos died in

the process. The Senate labeled their death as a massacre, not the result of a typical firefight.

The hearings in Congress, particularly at the House of Representatives, brought out in public the tension between the PNP and the Armed Forces of the Philippines (AFP). Both sides blamed each other for the debacle. We may not see the end of the controversy arising from the Mamasapano tragedy even after the House has completed its investigation.

More than the controversy and the exchange of accusations, the developments arising from the Mamasapano tragedy brought to light the state of our police and armed forces. For instance, allegations were made regarding the reliability of the

PSE: The road to 8,000 John Mangun

OUTSIDE THE BOX

E

VEN if you do not invest in the local stock market, the fact that the Philippine Stock Exchange Composite index (PSEi) reached a historic high at 8,000 on April 6 is significant to the nation.

For the all the useless noise that surrounds stock-market movements, the market does partially reflect a country’s financial situation when viewed in the context of everything else that is going on. Over-estimating the impact of the stock market is foolish; under-estimating that impact is ignorant. The stock market is just another important aspect of the economy.

The stock market is not like a thermometer measuring temperature or a clock counting time. The stock market is like your dog barking late at night in the garden. Is it a cat out for a midnight stool or a burglar trying to break in your house?

Some of us have been saying for some time that the PSEi would move to 8,000.

On July 21, 2011, the title of this column was “PSE at the High; Can It Continue?”

The market closed at 4,480 on that day. I wrote, “Over the next decade or less, the value of the Philippine Stock Exchange

is going to double. Yes, we will see the index at 8,000 and higher.”

It was an easy call; I don’t think I am the 21st-century stock market Nostradamus.

I wrote, “Because we constantly think about the GDP [gross domestic product] growth rate on a quarter-to-quarter or year-to-year basis, we lose the big picture.

Look, the PHISIX has doubled, up 100 percent, since 2005. How much is the total GDP up? This may surprise you: 50 percent. If the total economic output of the Philippines is up 50 percent since 2005, why should it shock you that the stock market is up 100 percent?”

Part of losing the big picture is the nonsense and useless noise that passes for the daily stock-market commentary that you are being fed. The explanation of stock price movement, up or down, 90 percent of the time is because of “global [or regional] market movement”, “fresh leads” or the lack

grenade launchers and other weapons and ammunition used by the police commandos.

The tragedy clearly strained the relationship between the police and the military. Some people say the death of the 44 SAF commandos lowered the morale both of the policemen and the soldiers. After all, policemen and soldiers both risk their lives to protect the people and safeguard the integrity of the nation.

The grief over the death of the police commandos was followed by an outpouring of sympathy for the families they left behind. The government provided financial assistance to the surviving families, including cash grants and scholarships for the orphaned children. Private companies and organizations also contributed their share; fund-raising activities were held; and even the police and military ranks contributed part of their salaries for the families of the “Fallen 44.”

We heard beautiful speeches from our political leaders, expressing their condolences to the bereaved families, extolling the slain police commandos for their bravery and sacrifice and promising to seek justice for them.

There is also a call to rebuild the image of the police and the military.

However, feel-good speeches or pep talk are not enough. There must be concrete action not only to mend

the strained relations between the PNP and the AFP. We need to rebuild not just the image of these two organizations but their capability to perform their tasks: to protect the people, maintain the peace, enforce the law and uphold the sovereignty of the country.

In fairness, the government has done some measures to boost the morale of police and soldiers. Malacañang last month approved a joint congressional resolution raising the daily subsistence allowance of members of the PNP and AFP. The daily allowance was raised from P90 to P150, or a total of P1,800 a month.

The increase was applied retroactively to January 1, 2015. The additional allowance should help the families of policemen and soldiers to meet the rising cost of food and other basic necessities.

The move is commendable, but a lot more should be done to strengthen the police and the armed forces. We need a definite and comprehensive program so we can launch effective campaigns against illegal drugs and smuggling, and to maintain peace and order throughout the country.

thereof, and the new favorite word of the experts, “catalyst”.

Since the stock market is “newsdriven,” according to the experts, I looked back at the headlines in July 2011. All of these newspaper headlines were printed within a week or so of July 21.

“Philippines seeks modern US military hardware.” “Philippines, China agree to keep peace in West Philippine Sea.” “Philippines wants Southeast Asian unity on sea row.” “Abu Sayyaf kill seven Philippine soldiers: Military.” “US Maintains Quiet Counterterrorism Effort in Philippines.” “Foreign business still cool on Philippines.”

This is my favorite business headline from July 2011: “Philippine stocks getting ‘expensive.’”

It would appear that not many of the “fresh leads” have changed between PSEi 4,480 and PSEi 8,000.

The PSEi did not go straight up to 8,000 from my July 2011 prediction. In fact, it went up and down several times and finally made its breakout at 4,500 near the end of 2012. With the exception of the 2013 price correction, the upward stock price movement has not faltered much.

But what was the catalyst of breakout at the end of 2012? Here are more headlines from that holiday season. “Philippines: Typhoon Bopha leaves over 270 dead.” “Philippines hits China plan to fortify Sansha.” “The Philippines: Breakthrough in Mindanao.” “Six hurt in Philippines bus bombings.” I assume stock prices were still “expensive” although

I did not find a headline to that effect.

You can say PHL has changed a lot since the end of 2012. The government credit rating is significantly higher. The perception of corruption is way down.

Inflation is low and the government financial position is very good. That is all true.

In July 2011 the peso exchange rate was 43.80, so not much has changed.

Inflation then was 4.5 percent and it is down and interest rates are much lower now from 2011’s 4.5 percent. The “gloomand-doomers” and the “bubblers” are going to say that the stock market being up is only the result of Western money printing. I am too bored arguing that point again and again.

But here is a fact that requires little discussion. The PSEi has nearly doubled since 2011. The Philippine GDP has increased by 60 percent from $168.33 billion to $272.02 billion at the end of 2014. With the exchange rate nearly the same now as then, those numbers are comparable. The percapita purchasing power GDP went up 17 percent between 2005 and 2011; it is up by 19 percent since 2011.

I will say it once again, now about PSEi 8,000; “why should it shock you that the stock market is up 100 percent?”

To be continued For comments, e-mail mbv.secretariat@gmail.com or visit www. mannyvillar.com.ph.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

opinion@businessmirror.com.ph

Opinion

A change of heart

Land and water reforms–closely connected

BusinessMirror

Cyril Razon

millennial universe

Y

OUR relationship likely begins how most relationships do: Innocent flirtation, fluttering stomachaches, late-night phone calls and the desire to be together at all times.

You latch onto their heart and dive in without a second thought. All you’re aware of are the foggy feelings pushed up against you, like your face against theirs.

It’s chemistry; it’s passionate and spontaneous. Nothing else matters.

Then suddenly, in the blink of an eye, it does.

We’ve all been there and there’s nothing to be ashamed of. We get lost in our hearts and fall off. We lose sight of the importance behind work, school, dreams and other relationships in our lives. And so does your significant other.

But, after a few months go by, you start to realize the consequences behind these blurry-minded decisions. Reality strikes and it all falls out all over.

It turns out, quirks aren’t cute anymore, in fact, they’re quite annoying. You keep explaining your thoughts and ends up being ignored.

You feel resentful and long for something new because this person isn’t filling you up the same way anymore.

You start to wonder, “Do I even still have feelings for this person?

What changed?”

Well, you did. The difference is that you didn’t change when you fell out of love with this person. You changed when you fell in love in the first place.

Sometimes, getting so caught up in the idea of something deprives people of getting to know someone for who they are. You stop being yourself, and so does your partner.

You tell them stories about the past, but the present is a blank page.

Then, we run out of things to talk about, and that’s that.

It’s easy to forget who you are

in the early stages of a relationship, and the reason behind this cruel reality is finally clear: You’re not ready.

As fun as relationships can be in the beginning, it’s always important to consider beyond that. If you see a problematic pattern and unclear about whose fault it is, remember that it’s probably no one’s fault; it’s just not your time.

From my experience of watching each of my relationships expire, one after the other, I learned that I still had a great deal of growing up before I was meant to grow with another person.

I found myself wanting to kick these ladies to the curb so early, I never understood why. They were good to me, just not for me. It turned out that no one was good for me.

Not all of us are lucky enough to stumble upon the love of our lives on the first try, and that’s just life.

We’re human beings. We’re selfish and, in this case, that’s okay. We’re allowed to dip our toes in the water to discover our likes and dislikes, keeping in mind these qualities for the future when we’re ready.

It’s just a matter of being honest and not taking the world of dating too seriously.

We have our entire lives to find love. In the meantime, get out there, grab a hold of your aspirations and do something awesome.

Editor’s Note: Millennials have kicked out baby boomers out of the room but we haven’t heard from them.

Hence, every week, this space would devote a textual gramophone for the 15- to 29-year-olds. If you belong to this generation, send an 800-worded essay to opinion@businessmirror.com. ph. Editorial rules apply.

Crowdfunding? How about crowdinvesting?

S

URELY one of the most glorious absurdities of American capitalism is that it’s easier to raise money online to make some potato salad than, say, to start an actual business. Of course, it should be more difficult to get people to invest in an idea than in a side dish.

But it shouldn’t be this hard.

The Securities and Exchange Commission (SEC) could fix this.

Congress passed a law in 2012 allowing entrepreneurs to sell small amounts of stock through crowdfunding web sites. The idea was to streamline the contradictory and confusing federal and state rules about the practice, which would be faster and cheaper—and require less bureaucratic oversight—than formal SEC registration.

Yet, the SEC still hasn’t issued the necessary final rules to allow for this form of raising capital, mostly because it is worried that crowdfunding could make it easier for scam artists to separate investors from their money.

The law includes adequate protections for investors. If their annual income is below $100,000, they can buy only up to $2,000 worth of shares (those with higher incomes can invest up to $10,000).

Companies, which can’t raise more than $1 million a year through crowdfunding, must make financial statements available online. Portals that match buyers with sellers must register with the SEC and vet entrepreneurs and investors.

All in all, it’s not fail-safe—but neither is the SEC’s usual registra-

tion and reporting system.

It is true that the Internet fosters some pretty crazy schemes, as Zack Danger Brown will attest.

(He’s the Ohio man who raised $55,492 online last year to make some potato salad.) Tens of thousands of more serious projects, from filmmakers and software developers to food-truck vendors and clothing designers, have raised close to $2 billion from sites, such as Kickstarter and Indiegogo. But there is little upside for investors, who can be rewarded only with gifts such as free samples and movie tickets.

More than a dozen states, meanwhile, have marched ahead with their own rules that allow the sale of securities over the Internet to investors within their borders. A dozen more are considering doing so. Instead of one uniform national rule, the US is on its way to having 50.

The SEC has shown it knows how to retrofit an archaic rule for a changing market. In May it will liberalize a rarely used capital-formation process by allowing mediumsized companies to sell as much as $50 million in equity, up from an existing $5 million cap, without registering their securities. It also will let smaller investors get in on such mini-initial public offering.

Yes, the Internet is a whole new venue for ruses that securities regulators need to worry about. But their bigger worry should be how to adapt their rules to new financial markets, technologies and business models. Bloomberg

Edgardo J. Angara

T

he United Nations predicted that by 2050 more than 65 percent of Filipinos (around 100 million) will live in urban areas. Such trend—barely 35 years away—opens up critical policy issues on land use and water management.

Land, like water, is finite. It’s vital to many economic activities such as food production. Recently, Hilal Elver, the UN special rapporteur on the Right to Food, visited the Philippines and announced in a preliminary report on widespread hunger and malnutrition, that massive land conversion was among the factors that adversely affected food production in the country.

I have written in previous

columns how poor water governance is posing a clear and present danger to our growth momentum. This is equally true, perhaps in an even more immediate degree, with respect to the lack of forward planning and haphazard land-use management.

Food production is just one activity affected by poor land use.

Current land-use policies are found in different national laws, including the Local Government

Truculent legislator Ernesto M. Hilario

ABOUT TOWN

I

must admit at the outset that I voted for Sen. Antonio Trillanes IV in 2007. I now believe I made a big mistake in doing so.

I had thought then that Trillanes deserved to sit in the Senate after taking a

principled stand against corruption in the Arroyo administration and leading two failed mutinies for which he spent seven years in prison.

He came across as an angry young man with high ideals then. Thus, he was elected to the Senate by millions of voters who were disenchanted with the Arroyo administration.

But Trillanes’s record as a lawmaker since then has raised questions about his integrity and competence.

For one thing, he spent the most among all senators while in prison.

What’s his output in terms of laws he authored and laws that were actually passed into law that would justify the gargantuan amount spent by his office while he was detained on coup d’etat charges?

Another question pertains to how he spent his Priority Development Assistance Fund and Development Acceleration Program, both of which the Supreme Court has declared unconstitutional. Where did all the money go?

I still remember how he treated former Armed Forces of the Philippines Chief of Staff and later Defense Secretary Angelo Reyes in an overbearing manner during a Senate hearing not

too long ago. Reyes later killed himself rather than have his honor further smeared by unfounded allegations.

Later, Trillanes also crossed swords with then-Senate President Juan Ponce Enrile, whom he accused—unfairly, it turns out—of masterminding on behalf of the detained former President Gloria Macapagal-Arroyo the creation of a new province, Nueva Camarines, in the Bicol region. Enrile denied having anything to do with the plan.

And of course, everyone knows by now that Trillanes has been keeping a high-profile, along with Sen. Alan Cayetano, in the Senate investigation of alleged involvement in corruption of former Makati Mayor and now Vice President Jejomar C. Binay. The two senators belonging to the Nacionalista Party have been monopolizing the Senate Blue Ribbon subcommittee hearings—18 have been held so far, the longest probe on any issue in the history of the Senate, if I’m not mistaken—and their common denominator is that they both want to run for higher public office in 2016.

Trillanes has been hurling allegations of corruption against the Binays

Tuesday, April 21, 2015

Code, as well as the Agricultural and Fisheries Modernization Act of 1997. Land disposition and distribution are entrusted to various agencies, including the Department of Environment and Natural Resources, the Department of Justice and the National Commission on Indigenous Peoples. The multiplicity of laws and regulations as well of the governing bodies, the lack of harmonization and coordination among them, reflect the chaotic state of land-use governance.

Such discord leads to the many substandard comprehensive landuse plans (CLUPs) that several local government units have formulated.

A 2014 Philippine Institute for Development Studies report emphasizes that many CLUPS were slanted toward residential and commercial development, while plans for productivity-enhancing infrastructure and environmental conservation were minimal.

A 2012 Human Development Network study shows such plans were short of long-term vision and clear-cut strategies to achieve growth and sustain it. As a consequence, informal settlements—often built on precarious geohazard sites and protection zones (e.g. salvage areas of seas and rivers, or roads and rail set-asides)—have become major slum colonies in Metro Manila and in the rest of the country’s other big cities and towns, as well.

In 2013 President Aquino certified as urgent the National Land Use Act to create a unified framework for land resource management. Congress, however, has yet to pass such a measure to date. A land-use policy, alongside with water sector reforms, should be fast-tracked to ensure the sustainability of our country’s economic growth.

since the hearings started, but it appears that he’s been very reckless and shooting from the hip as he does not offer solid evidence, leading many to think that his tirades in the Senate floor are not in aid not of legislation but rather election to higher office.

All the noise that Trillanes is making in the Senate and in the media seems calculated to put his name in the headlines and thus further his political ambition. His latest reckless accusation is that the two Court of Appeals justices who issued a temporary restraining order (TRO) on the preventive suspension of Makati Mayor Junjun Binay were bribed.

The two justices have described the Trillanes tirade as “harassment.”

Trillanes initially declared he wants to run for president in 2016. But when surveys showed his dismal ranking among possible presidential contenders, he indicated that he would settle for the vice presidency.

What Trillanes is doing in the Senate with his recklessness and slashand-burn politicking is to impair the image of the institution and erode the trust and confidence of the people in a bulwark of our democratic system.

contract with Smartmatic-TIM last December for the diagnostic work and upgrade of the PCOS machines that the government first leased in 2010 and then purchased in 2013 for the country’s globally acclaimed first two automated balloting.

The Comelec started the maintenance work on these machines in February as part of its hectic timetable for next year’s computerized elections. But the job was suspended on March 24 after the SC finally granted the TRO requested by the same group of electoral reform activists who have been claiming that the Automated Election System (AES)/PCOS technology is deeply flawed and ought to be junked.

This despite the praise that the 2010 and 2013 polls have reaped from the majority of Filipino voters, not to mention global leaders and international poll observers.

The SC has already rejected twice the hackneyed charges of wholesale electoral fraud in two of its rulings that affirmed the accuracy of the PCOS machines and the validity of Comelec’s contract with Smartmatic, the service provider or supplier of the AES/PCOS technology. It is likely that it will be no different this time when the High Tribunal renders its third ruling that would decide on whether the Philippines could either replicate—or even surpass—the success of its first two automated polls or go back to what one legislator has dubbed the “Jurassic” era of manual balloting that brought with it the triple scourge of dagdag-bawas, ballot switching and ballot-box snatching schemes, and Election Day violence.

Will the SC uphold the PCOS deal?

THE Supreme Court recently issued a TRO on the extended warranty deal between the Commission on Elections (Comelec) and its private partner Smartmatic-Total Information Management (TIM). But the scuttlebutt is that the High Court could clear the way to reusing the 81,000-plus Precinct Count Optical Scan (PCOS) machines in the third computerized Philippine polls in 2016. The Comelec signed the P268.8-million

Segway’s second chance in China Adam Minter

BLOOMBERG VIEW

S

EGWAYS are a revolutionary mode of transportation embraced by mall cops and helmeted tourists, but seemingly very few others. Some cities have banned them. A US president has toppled off of one. And in 2010 the company’s (then) owner accidentally drove his off a cliff.

Yet despite these setbacks, and sales that have never approached expectations, Ninebot, a Chinese Segway competitor, announced last week that it was purchasing Segway for an undisclosed sum.

The sale marks a second chance for Segway. In a different way, it also marks a second chance for Chinese commuters.

China is in desperate need of the sort of transportation revolution that Segways once promised. Rapid urbanization, an explosion in the number of automobiles, and a failure to build roads and highways fast enough to meet ever-increasing demand have made China home to some of the world’s worst traffic. In 2011 investment firm UBS published data on the average speed of traffic in five Chinese

cities. Beijing averaged 7.5 miles per hour (mph). Only one, Wuhan, with average speeds of 12.7 miles per hour, exceeded that of a Segway’s basic model at its top speed of 12.5 mph.

At one time, of course, Beijing and the rest of China was a bicycle-based society. But those days are long gone, victim of a state-run industrial policy that has subsidized the development of a massive Chinese automobile industry, and urban planning that has actively eliminated bike-friendly lanes in favor of more space for cars. Meanwhile, upwardly mobile Chinese have rejected the bike as a commuting relic of the past; they want something quicker, and more modern.

Mass transit is one answer. But, amid China’s breakneck urbanization,

A7

it’s nearly impossible for the government to provide transit infrastructure sufficient to satisfy the public’s demand. In Shanghai, home to the world’s longest subway system, and Beijing, where the system exceeds London’s, waiting times to enter stations during morning rush hour are often longer than commutes (I’ve seen 30 minute waits), and key transfer hubs are dangerously overcrowded.

When it comes to commuting in China, the most popular alternative to a car (which many Chinese still cannot afford) or a subway, is the batterypowered electric bicycle, which retails for as little as a few hundred dollars.

Slower than a car (they typically operate between 20 mph and 30 mph), but faster and less sweat-inducing than a human-powered bicycle, the e-bike is a sensible and affordable option for China’s chaotic roads, especially when riders travel in packs. According to Chinese media, there were 200 million of them on Chinese roads as of 2013.

Segways can make a play for that market. Ninebot co-founder Wang Ye says the Chinese public will quickly appreciate that Segways have huge advantages on electric bicycles and cars: “They’re more portable, you can bring them indoors, you don’t have to worry about parking, and they won’t get stolen.” And there’s reason to believe that Chinese consumers

E-mail: angara.ed@gmail.com.

E-mail: ernhil@yahoo.com.

will find the devices to be stylish.

Last year electric scooter companies (skateboards with battery-powered motors and handlebars) shipped 30 million units in China.

And while Segway was struggling in the US, Segway knock-offs were quietly finding an audience—and cachet—in China. Law enforcement and the military were the first to embrace the devices, and these days they’re common enough (especially in Tiananmen Square) that nobody turns their head when an officer wheels by on an electric chariot. Airports, restaurants, amusement parks and other entertainment venues have embraced them as efficient and novel ways to move staff. Tourist destinations, such as beaches, offer them as popular rentals. Today, a search for “Segway” on Alibaba returns 272 pages of Segway-like devices, including several made by Ninebot which—prior to its acquisition by Segway—was accused by Segway of being one of several Chinese firms that have stolen its patents.

Now Ninebot owns those patents, and the Segway name. The acquisitions perfectly position the company to not only grow with, but lead the development of China’s world-beating small electric vehicle market. If that happens, Segway’s many critics might soon find the joke is on them.

2nd Front Page BusinessMirror

A8 Tuesday, April 21, 2015

March BOP back to deficit but Q1 total still in surplus

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By Bianca Cuaresma

atest data from the Bangko Sentral ng Pilipinas (BSP) show the balance of payments (BOP) reverting once again to a deficit in March after having posted a series of surpluses the previous three months.

The BOP in March, essentially a summary of the country’s transactions with the rest of the world, hit a deficit of $244 million, from a surplus aggregating $985 million surplus the previous months.

A BOP deficit is indicative of an economy whose foreign-currency earnings are insufficient cover of its foreign-currency expenses.

The BOP data in March represent the first such imbalance thus far this

year. In November last year, the BSP reported a deficit totaling $314 million for the month.

Compared to March last year, however, the net deficit this year proved smaller than the March 2014 deficit of $340 million.

As a result, the first-quarter BOP position stood as a surplus of only $877 million, from the previous month’s surplus totaling $1.121 billion.

For the Philippines to hit the selfimposed surplus goal of $1 billion in the BOPs the central bank needs to post a surplus totaling $123 million in the months ahead.

Compared to the same threemonth period last year, the firstquarter BOP position proved in a much better shape than the $4.475billion deficit in the first quarter of 2014.

This was when markets were heavily affected by the so-called taper tantrum or the uncertainty over the magnitude and timing of the United States Federal Reserve’s (the Fed) rate normalization—which caused speculation and sentiment shift in markets across the globe.

This year, while BSP officials do not expect another taper tantrum See “BOP,” A2

Nigeria, Algeria see oil prices staying low for a long time Continued from A1

The Opec meeting is likely to be tense after Saudi Arabia, the world’s largest oil exporter, boosted production to the highest in three decades in March, with a surge equal to half the daily output of the Bakken formation in North Dakota.

Opec nations such as Nigeria and Algeria are suffering more than Saudi Arabia and other Gulf countries from the drop in oil prices because they built smaller foreignexchange reserves.

Nigeria has responded to the oil rout by cutting expenditures and with revenue-raising measures including

a tax on luxury items such as yachts.

Longer term, the government seeks to diversify the economy “beyond oil,” Okonjo-Iweala said.

Price outlook

Asked where she expected prices to be in 12 months, Okonjo-Iweala said $60 to $70 a barrel.

Bank of Algeria Governor Mohammed Laksaci said the “drastic” oil slump has eroded the country’s foreign reserves and budget position. Algeria’s hard currency reserves dropped in January by $11.6 billion, the biggest monthly drop in more than 30 years, according to data from the IMF. “Given that oil prices are generally

expected to remain low for a prolonged period, the degree of resilience of our economy may rapidly erode,” he said during the panel, declining to estimate where prices will be a year from now.

Mauricio Cardenas, the finance minister of Colombia, which over the past five years has become a big producer, agreed on the longer-term outlook, though he said the price of Brent crude may rise to $70 a barrel in the next few years.

“We think of this in the framework of a permanent reduction in oil prices,” said Cardenas, who estimated prices in a year would be $65 a barrel.

While the IMF projected last week

that low oil prices should boost global growth, it warned that the combination of a strong US dollar and depressed crude market could bite hard in emerging economies that rely heavily on oil exports.

David Lipton, the No. 2 official at the Washington-based lender, said during the discussion that oil futures imply a modest increase in prices over the next five years.

“From the standpoint of policymakers, I think the smart thing to do is presume this will be durable because we’ve seen that it’s come from the supply side,” he said. “It’s not something that’s going to go away just with the economic recovery.” Bloomberg News

www.businessmirror.com.ph

POOREST FILIPINOS STILL HAVE NO ACCESS TO SAFE WATER, SANITARY TOILET

By Cai U. Ordinario

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hile the Philippines, as a whole, is expected to meet the Millennium Development Goal (MDG) on safe water supply and access to sanitary toilet facilities, the Philippine Statistics Authority (PSA) said there are disparities across income classes and regions in the country.

Based on the 2014 Annual Poverty Indicators Survey (APIS), some 85.5 percent of the 22.7 million families have access to safe water supply.

In terms of sanitary toilet facilities, around 94.1 percent of families have access to sanitary toilet facilities.

The access to safe water supply performance of the country was still below the target of 86.8 percent by 2015, while the country’s performance in achieving the sanitary toilet facility indicator has already exceeded the 83.8-percent target by 2015.

“Based on per-capita family income, families were grouped into top-70-percent and bottom-30-percent strata. Nationwide, about 27.4 percent at the bottom-30-percent families use unsafe water source and 14.1 percent used unsanitary toilet,” the PSA said.

“Results show that the national MDG target is likely to be achieved by 2015, however, there are observed disparities among regions,” it added.

This was particularly the case in safe water supply. PSA data showed that around 14.5 percent of families

in the country still do not have access to safe water sources.

These families obtain their water supply from unprotected well, spring, river, pond, lake, rainwater and tanker trucks or peddlers.

Further, only seven regions have proportion of families having access to safe water supply on par with, or higher, than the national average ranging from 84.7 percent to 98.9 percent.

These regions are Caraga with an average of 84.7 percent; Region 8, 86.5 percent; National Capital Region, 90.3 percent; Region 1, 90.7 percent; Region 9A, 90.9 percent; Region 2, 96 percent; and Region 3, 98.9 percent.

In terms of sanitary toilet facilities, the PSA said in Region 8, or Eastern Visayas, which was ravaged by Supertyphoon Yolanda, only 83.5 percent of families have access to sanitary toilet facilities.

The PSA said this region is the only one that has not met the MDG indicator on sanitary toilet facilities which refers to flush toilet (either owned or shared) and close pit facilities.

“All regions had successfully achieved the MDG target with proportions of families having sanitary toilet ranging from 84.7 percent in Autonomous Region in Muslim Mindanao to 99.1 percent in Regions1, 2, 3 and 4A,” the PSA said.

The MDGs are a set of eight goals, 22 quantitative targets and more than 60 specific indicators meant to serve as See “Poorest Filipinos,” A2