BusinessMirror June 15, 2015

BusinessMirror

THREETIME ROTARY CLUB OF MANILA JOURNALISM AWARDEE 2006, 2010, 2012

U.N. MEDIA AWARD 2008

A broader look at today’s business Saturday 18,June 201415, Vol.2015 10 No. 40 Monday, Vol. 10 No. 249

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COMMITTEE ON TRANSPORTATION WANTS DOTC, LTFRB TO STOP OPERATION OF TNVS, TNCs

House panel: Uber, GrabCar colorum ASEAN SINGLE AVIATION MARKET T Life B J M N.  C

INSIDE

HE House Committee on Transportation’s technical working group (TWG) has recommended the suspension of the operation of the Transportation Network Vehicles Services (TNVS) and transportation network companies (TNCs), such as Uber and GrabCar.

OF PARISIAN CHEEK

Life is but a call

ALL ACCESS: ONE BIG STEP TO FOREVER »D2

D

EAR Lord, life is so full of success and defeat.

Often, we struggle doubly and tempted to quit.

Yet, when all things crumble at our feet, then we realize that it is You we all need.

Success, after all, is not our life’s goal, for in this passing world, life is but a call. It is for us to be ever faithful to You, as You bless and forgive us all. Amen.

WORD AND LIFE, FR. VIC CERVANIA, VANIA, SDB AND LOUIE M. LACSON V Word&Life Publications • teacherlouie1965@yahoo.com

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Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Monday, June 15, 2015 D1

Of Parisian cheek

FRANCK MESNEL, the founder and chairman of the board of Eden Park Paris

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DEN Park Paris, with its ubiquitous pink bow tie, is a clothing brand that is relatively unknown in the Philippines. It was launched in 1987 in France by five rugby players and was named after the Auckland, New Zealand, stadium where the first rugby union World Cup was held. New Zealand defeated France, 29-9.

So, I asked Franck Mesnel, the founder and chairman of the board who was recently in town to open the 99-square-meter Eden Park store at the Central Square, Bonifacio Global City: Why name your brand after a venue where you lost the final game?

“When talking about rugby, it’s really

THE 99-square-meter Eden Park store at the Central Square, Bonifacio Global City in a blazer with a scarf strewn nonchalantly around his neck. “It’s the French way. You know, when you’re waiting for a French guy and he’s not in the place where you are meeting him, he’s always in another place.

This is typically French, and I think we’re sharing that with Filipinos. We share the same sense of humor. And, may I say, we’re not too far in terms of culture?”

The French gentleman continued: “I must be more French than I am. I’m in this casual world which is not haute couture. Haute couture is clear, especially for a woman.

France means Paris-haute couture-woman.

Paris doesn’t mean haute couture-men. It’s more Italy. So for me, I have to tell people that we are French, and I’m going to explain that through my garments and I’m playing a lot on the DNA of rugby, but not a lot because the items must be elegant before being rugby.”

The gold medal success of the Philippine Rugby Team in the Sotheast Asian Games notwithstanding, the country doesn’t have a strong rugby tradition. That said, how optimistic is he about his brand’s prospects in the country?

“It’s not so strong, but the Sevens is

about the All Blacks [New Zealand national rugby union team]. Even losing the game, it’s still a huge souvenir for me. It was a good way, as well, you know, four letters in Eden and Park, and I just have to put the bow tie in the middle. It looks very well like Hugo Boss,” he explained, with a chuckle.

Having played for France 56 times in a nine-year international career, Mesnel and his teammates are all too familiar about rugby jerseys, making collections of the right quality, stitching and weight. Since their mascot was the Pink Panther, pink became the color for their bow-tie logo.

He and his colleagues realized they had hit upon what they wanted to do with their new bow-tied fame. “We made the jerseys of just the right quality, stitching and weight—340 grams, I remember,” he said. “Our mascot was the Pink Panther, so we chose this pink color for our bow-tie logo.”

“I’m happy to be able to talk about the true stories, people need this not just for marketing. I’m personally crazy about quality. Then when you have your quality, when you have your brand, it’s important to share your philosophy because this bow tie means something,” said Mesnel, so chic

coming. The Sevens is taking off. It’s a different kind of rugby, but it is extremely famous in Asia, like the Hong Kong Sevens and I’ve already seen the Philippines [the Volcanoes, as the national team is also called] in this tournament,” Mesnel explained. “So, it doesn’t matter. What is important is to link rugby, which for me is crucial, which is education. I’m a little bit disappointed by adults. So waiting for adults to be more mature, I have this obsession to give knowledge to the kids, to let them be able to get the right choice.”

After his rugby days, Mesnel studied architecture at the Beaux Arts. “It is not so far from fashion, talking about colors, about graphics. So it wasn’t hard for me at the beginning to input my designs. It was more

difficult for me to discover what was textile and understanding the way to do it. But for the design, I wouldn’t say that I was comfortable, but we had a design team from outside to build the first collection,” Mesnel revealed.

As he tells Together magazine, there isn’t much difference between sports and fashion: “There are many similarities between rugby and business— you need motivation in both. I have to be under pressure in my business life; I am built like that, and sport gave me that feeling. Even back then, I [and quite a few other rugby players] were quite fashion-conscious. I was always conscious of my appearance and so, for me, the link between the rough world of my sport and fashion was not as distant as you might think. I love color and design and wanted to do something that involved this.”

TOKIDOKI’S SUMMER TOUR

TOKIDOKI sneakers by Asics

TOKIDOKI’S black and white shirt with Karl Lagerfeld’s image

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ALLGOERS had the rare opportunity to meet Simone Legno, founder and creative director of the young and fun global lifestyle brand Tokidoki, during the recent launch of “Tokidoki in the City” at SM Aura Premier.

Tokidoki, which translates as “sometimes” in Japanese, is the vision of Italian artist Legno and his partners that has amassed a cult-like following for its larger-than-life characters since it was launched in 2005.

Now a sought-after global lifestyle brand, this innovative company is known, not only for its eye-popping aesthetic and criminally cute characters, but also its collaborations with premium brands. These include Karl Lagerfeld, LeSportsac, Onitsuka Tiger, Marvel, New Era, Hello Kitty, Fujitsu, Levi’s, Smashbox cosmetics, Xbox, T-mobile, Fornarina, Skullcandy and Medicom Toy.

During the event, avid Tokidoki collectors brought their most prized collection to be signed and sketched by Legno himself. Among these were Tim Yap, fashion stylist Cat Arambulo-Antonio and JM Rodriguez. Legno also graciously treated his fans to a live art painting session where he had personalized character drawing and a photo-op.

The Tokidoki exhibit showcases of the brand’s most exclusive and collectible items of the brand, like the limited-edition Karl Lagerfeld x, The Tokidoki doll, Tokidoki Sneakers by Asic, LeSportssac bags and the Tokidoki pouches.

After SM Aura and a stop at SM Megamall, Tokidoki now transforms SM Southmall into a delightful gallery with larger-than-life installations of Tokidoki characters Adios, Kaiju, Cactus Friend, Ciao Ciao and Unicorno, White Tiger and Cactus

LIFE

TOKIDOKI creator and founder Simone Legno (right) with SM SVP for Operations Steven Tan Friend, along with a showcase of some Tokidoki collectible items. Shoppers may also have their photos taken at the lineup of Tokidoki art panels at the exhibit, which is ongoing until June 21. Its next stop will be SM Mall of Asia from June 24 to 30.

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ROBOT JOBS BusinessMirror

www.businessmirror.com.ph

Monday, June 15, 2015 E 1

WE SHOULD WANT ROBOT ROBOTS

A tournament pits strategists against each other

TO TAKE AKE SOME JOBS I T

According to Ray Kurzweil, Elon Musk and others, once artificially intelligent machines are able to design other machines, humans will become an endangered species.

We appear to be subscribing to the narrow view that crowds man and machine onto the same tasks.

But there is an alternative view.

While in the minority, arguments exist for a symbiotic man-machine future. They celebrate that which is uniquely human—meaning and creativity—and which, in my opinion, should be the primary business of humans in the first place.

In a recent TechCrunch article, David Nordfors distinguishes between a task- and human-centered economy. In the task-centered economy, humans have no value beyond the tasks they perform.

Consequently, they are indistinguishable from machines and will be replaced by them. In the humancentered economy, machines liberate humans from predefined tasks with prestated outcomes.

This allows them to exercise the value that emerges from collaborating with other humans on open-ended, creativeendeavors.In Reinventing the Sacred, Stuart Kauff-

man points out that higher-order human mental processes are beyond algorithms. He eloquently describes how machine algorithms can only solve problems bounded by prestated assumptions.

Why do I subscribe to their vivi sions? Because, as a consultant, I constantly see how the task econoecono my dehumanizes people into gloriglori fied algorithm machines. Most of my clients have forgotten how to solve problems that aren’t tamable by algorithms. In the 21st century, creating meaning and innovatinnovat ing will be democratized through technology. We are on the verge of forever eliminating the last form of human slavery: meaningless, dehudehu manizing, algorithmic work.

Any task that has an outcome that can be prestated or even guessed, should eventually be performed by a machine. Humans should be left to deal with open-ended endeavors that generate new organic value. As Peter Drucker surmised, effectiveeffective ness should be a human pursuit, while efficiency should be delegated to machines.

Liviu Nedelescu is the founder and CEO of Avansys Solutions.

HOW PINTEREST’S BUY BUTTONS CAN CHANGE ECOMMERCE A S

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ILL buyable pins turn Pinterest into the Web’s new shopping mecca? That’s the question marketing and e-commerce professionals need to answer now that Pinterest has announced it will soon offer “buy” buttons to let users buy products directly within its app. And while there are plenty of reasons to think that buyable pins could turn the platform into an e-commerce powerhouse, it stands a greater chance of succeeding if it adapts key features offered by other online retailers to the Pinterest community’s unique habits.

What will Pinterest get out of my spending the entire weekend online shopping for dresses? Well, it won’t take a direct cut; for now all the revenue earned through buyable pins will go straight to retailers—though Pinterest will make money by charging companies to promote their pins.

An the platform stands to win big by plugging what is currently a major hole in its user experience: For all the time for all the time that shoppers spend curating potential purchases on Pinterest, we have to go elsewhere to take out our credit cards. By making it easier for shoppers to buy directly from Pinterest, brands may shift some

offline shopping back online, which would allow Pinterest to establish more clearly the return on investment of promoted pins. One of the platform’s unique strengths is the power of curacura tion: Forty-three percent of Pinterest purchasers said that the platform inin fluenced their purchase by providing product reviews, usually from other users. An affiliate program, for example, would allow dedicated tastemakers to earn some portion of the revenue of any item purchased through a buyable pin on their boards. This would encourage curators to prioritize buyable pins— which gives retailers a reason for paying to promote their pins.

Facebook, Twitter and Instagram have already created their own “buy” tools, blurring the line between social networks and e-commerce sites. What will make on-site purchasing work— particularly for Pinterest—is treating instant purchase as an extra feature in the content, rather than as a reason for putting it in front of them. Well-handled, a purchase feature means that the stuff our friends or favorite style-setters share is easier for us to buy. Handled badly, it turns our social relationships into just another shopping mall.

B M C

T is hard to study competitive strategy. As a result, we don’t know much about what actually works. There’s plenty of evidence about what’s profitable to have. For example, The PIMS Program, an observational study on thousands of businesses, showed that it’s profitable to have low investment intensity, high market share and positive differentiation. But there’s much less evidence about how businesses can getwhat’s profitable to have.

That takes strategy. If we can’t experiment on real-life strategists running real-life businesses, how about if we experiment on real-life strategists running simulated businesses?

I’ve conducted the Top Pricer Tournament for several years. Over 650 people—managers, consultants, academics and students from the US and elsewhere—have entered. So far, no human has found the best possible tournament strategies.

The computer running the tournament has found them. Its solutions made slap-my-forehead sense. The tournament is based on three fictitious industries: Ailing, Fast Growth and Mature. Each industry has three competitors that start out identical in every way.

The time horizon is three years and entrants devise strategies that make quarterly moves. Price is the only lever entrants can pull. The tournament analyzes over 139 million simulations per industry. The number of possible outcomes in each industry is more than 3 billion.

Here’s what I’ve observed from the data: n People selected different strategies in the three industries. Only 11 people out of 653 used the same strategy in all three, and only 35 used the same strategy in two. n People specified their goals— profitability, market share or a combination—differently in the three industries. Market share was heavily favored in Fast Growth, and profitability in the others. That matches conventional wisdom. n Some people selected their strategies saying they wanted to achieve high profits without regard to market share. Others adopted precisely the same strategies saying they wanted to achieve high market share without regard to profits. That suggests people find it hard to predict a strategy’s outcome. n The range of outcomes that their strategies produce is very wide, which suggests that people find it hard to tell the difference between a good strategy and a bad one.

Until we know what works—or are more skilled at letting computers test strategies for us—human strategists must continue to guess and gamble with competitive strategy. No computer will find a (legal) strategy guaranteed to work. But it takes only a few percentage points to separate the casino from the gambler.

B L N

HE latest witch hunt is under way and gaining momentum.

The witches are the rapid innovation in robotics and computing, slated to replace humans in performing increasingly sophisticated tasks and thus, to displace jobs across the employment spectrum. The dominant dismal view is that rapid technological innovation has been gobbling up jobs faster than it is creating them.

Mark Chussil is the founder and CEO of Advanced Competitive Strategies Inc.

I

T seems like every company is trying to tap into the millennial market. And for good reason: This year Pew predicts that millennials will overtake the baby boomers in number, with around 75 million people in the US under 34.

And they are reaching the age of independent consumption, starting to have children and becoming a presence in the work force. So when research comes out showing that millennials behave differently from the rest of the population, it’s no surprise that everyone’s ears perk up. A recent Gallup survey, showed that 44 percent of US millennials believe firms will keep

their personal data private all or most of the time, compared to 32 percent of Gen X and baby boomers. Does this mean that millennials are willing to share more of their personal data in exchange for your services? Should you design your products and services with this in mind?

In our view, such thinking is misguided. Designing for generational cohorts brings little value because so little unites them other than perhaps life stage. And when companies do attempt to place a generational lens on a product or service, we find that the outcomes are either meaningless or potentially damaging.

A better approach is to design for archetypes representative of certain attitudinal and behavioral traits, and

then combine these with social, market and emerging technology trends—all things that transcend age or generation.This allows you to create solutions that resonate with a larger group of people.

We find it hard to identify one emotional or functional aspiration—such as the desire for adventure or wellpriced goods—that is exclusive to one generation. We may look to particular age groups to inspire our thinking about specific attitudes, beliefs and marketplace behaviors, but we quickly expand this view to include a broader emotional and behavioral appeal.

For example, a financial services firm recently asked us to redesign their tablet experience to attract a segment of wealthy, generally more elderly cus-

tomers. But our design research showed that the people who wanted to interact with the bank via a tablet were technologically savvy and financially literate, an attitudinal group spread across age and wealth. What started as a simple app project turned into a companywide rethinking of how they should interact with their customers.

This is how product design should work. Meeting the functional and emotional needs of a group of people is much more likely to generate transformative results than targeting a generational cohort with tenuous links.

MONDAY MORNING

Alexandra Samuel is an expert in online engagement and the author of Work Smarter

Timothy Morey is the vice president of innovation strategy at frog, a global product strategy and design firm. Allison Schoop is an associate strategy director at frog.

© 2013 Harvard Business School Publishing Corp. (Distributed by The New York Times Syndicate)

E1

CLINTON PROMISE Perspective BusinessMirror

E4 Monday, June 15, 2015

Clinton calling for new era of shared economic prosperity

DEMOCRATIC presidential candidate, former Secretary of State Hillary Rodham Clinton acknowledges supporters as her husband, former President Bill Clinton (center right), their daughter Chelsea Clinton (center left), and her husband Marc Mezvinsky watch after a speech on Saturday on Roosevelt Island in New York. AP/JULIO CORTEZ

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B L L | The Associated Press

ILLARY RODHAM CLINTON formally opened her presidential bid with a deeply personal address that promised thousands of supporters gathered at a rally in New York City that she would champion “an economy for everyday Americans.”

Hillary’s unfavorable score ticks up Favorable

Unfavorable

59%

AP/FRANK FRANKLIN II

The former first lady, secretary of state and favored candidate for the Democratic presidential nomination offered a fullthroated embrace of the populist rhetoric backed by the party’s progressive wing, cit-

No opinion

50%

37%

50% 46%

4% March 2014

CHELSEA (center) hugs Hillary, as Bill watches them on Saturday on Roosevelt Island in New York.

on Saturday.

Speaking on Roosevelt Island on Saturday, Clinton described her broad vision for her second presidential campaign—with a platform designed to appeal to the coalition of young and minority voters that twice boosted Obama to 39% victory.

“Prosperity can’t be just for CEOs and hedge11% fund managers,” she said.

4% “You brought our country back, now it’s time your March May time to secure the gains 2015 2015 and move ahead.”

While she shied away from specific policy proposals, she laid out a wish list of Democratic policies to the cheering crowd. Over the course of her roughly 45-minute remarks, Clinton backed universal pre-K education, Wall Street regulation, paid sick leave, a path to citizenship for immigrants, equal pay, campaign finance reform, and banning discrimination against gay workers and their families.

Aides said she plans to give a policy address almost every week during the summer and fall, detailing her positions on issues including college affordability, jobs and the economy.

Clinton dedicated only a short section of her remarks to the foreign policy, vowing to “do whatever it takes to keep Americans safe.”

But unlike in the early Republican primary contest, where more than a dozen candidates often describe a nation under pressing threat from global terrorism, Clinton said she sees an America far more secure in its global position.

Hillary Clinton’s favorable rating from the American people has been steady all spring, but her unfavorable rating has inched higher and is now 46%, up from 39% in March.

ing the liberal legacy of former president Franklin D. Roosevelt and her husband, Bill Clinton. And she made clear that her potential to make history as the country’s first female president would be a major part of that liberal message.

“I’ve been called many things by many people,” Clinton told the 5,550 cheering voters. “Quitter is not one of them.”

Her focus marked a sharp departure from her previous presidential bid, when Clinton was reluctant to dwell on her gender during until nearly the final moments of her campaign. After a months-long primary contest against President Barack Obama, she conceded defeat with an address that acknowledged the “18 million cracks” her bid put in the “that highest, hardest glass ceiling.” The path, she said then, “will be a little easier next time.”

“I may not be the youngest candidate in this race but I will be the youngest woman president in the history of the United States and the first grandmother,” she said

“I was in the situation room on the day we got bin Laden, but I know we have to be smart as well as strong,” she said. “I believe the future holds far more opportunity than threats.”

While Clinton has been particularly vocal on immigration and other issues important to key parts of the Democratic base, she stayed silent on policy questions that have divided the party, including a current debate over trade.

Her remarks come in the midst of a contentious debate over the Trans-Pacific Partnership, a trade deal backed by Obama and opposed by organized labor, liberals and others who say such pacts cost the US jobs. Liberal activists and labor union organizers have been pushing Clinton to take a stronger position against the deal.

“This was mostly a typical Democratic speech—much better than the direction Republicans offer America, but not the bold economic vision that most Americans want and need,” said activist Adam Green, cofounder, Progressive Change Campaign Committee.

Clinton, meanwhile, cast the race as a choice about the economic future of the middle class, saying the Republican field is “singing the same old song.”

“They reject what it takes to build an inclusive economy,” she said. “What I once called a village that has a place for everyone.

My values and lifetime of experience have given me a different vision for America.”

As part of an effort by her campaign to reintroduce Clinton to the public, she stressed her career history of advocacy work—a calling she said that was inspired by her mother’s difficult upbringing. After the Saturday speech, she’ll embark on a tour of early-voting states, with events focused on her relationship with her mother and her father’s background as a veteran and small businessman.

PERSPECTIVE

certificates of public convenience for public-utility vehicles.

DO 2015-01 recognizes new forms of transportation services, such as the TNCs that include Uber, GrabCar and EasyCars, to promote mobility, and modernize and improve transport services.

Abu said the meeting was conducted to determine whether the TNCs and TNVS are public utilities, and to discuss their liability in case of accidents, as well as their tax obligations.

Abu added that the working

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T

HE tollways arm of Metro Pacific Investments Corp. is hoping that its petitions for tollrate increase before the Toll Regulatory Board (TRB) will be approved before it jump-starts its multibillion-peso expansion initiatives for the North Luzon Expressway (Nlex).

Manila North Tollways Corp.

(MNTC) President Rodrigo E. Franco said the company’s design proposal to expand the expressway to the North has been approved by the regulator last month.

“But we still have to negotiate the investment recovery. It is a P5billion investment,” he said. “It will add one lane on each direction, from Santa Rita to San Fernando, and then another lane in Santa Inez.”

The target, he said, will depend on when the whole proposal will be ap-

PESO EXCHANGE RATES n US 44.9660

TALKING REGIONAL BUT ACTING NATIONAL

C  A

Start of Nlex upgrade hinges on investment-recovery deal

Stop designing for millennials B T M  A S

At a recent TWG meeting, which was presided by Nacionalista Party Rep. Raneo E. Abu of Batangas City, working group members also criticized the Department of Transportation and Communications (DOTC) and the Land Transportation Franchising and Regulatory Board (LTFRB) for allowing private vehicles to be used as taxis while suspending the issuance of taxi franchises.

DOTC Department Order (DO) 2015-01 amends DO 97-1097, and standardizes the classification of public-transport conveyances used as basis for the issuance of

SPECIAL REPORT

FRANCO said the company’s design proposal to expand the expressway to the North has been approved by the regulator last month.

proved. “We can start construction immediately after it is approved, as it doesn’t require the acquisition of any right-of-way,” Franco added.

The executive is also hoping that the regulator approves the investment-recovery scheme soon.

“It is not necessarily a toll-rate adjustment. There are several ways

THE Ninoy Aquino International Airport is expected to handle some 37.78 million passengers by yearend, way beyond its 30 million annual passenger capacity. BUTCH FERNANDEZ

B L S. M First of three parts

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EVELOPING an aviation sector bearing the Association of Southeast Asian Nations (Asean) brand is fraught with challenges and opportunities.

And with the constraints on infrastructure and policy development still hounding the country, the Philippines is one of the least-enthusiastic participants in this endeavor. Experts and industry players all agreed that the integration of the aviation sectors in the Asean will be both a boon and a bane to each country. Some economies will enjoy faster growth, while others will be lagging behind.

This will be inevitable, but progress will still depend on how a government and its private partners will respond to each arising need.

The idea of developing an Asean Single Aviation

Market (Asam) was first introduced more than a decade-and-a-half ago, when Southeast Asian nations agreed to be integrated into one economic bloc.

According to documents from the Asean Secretariat, the development of a single-aviation market will enable the economic bloc to leverage on its location at the crossroads of Northeast Asia, South Asia and Oceania.

The development of Asam—which will include necessary actions and measures essential in improving the overall performance of the Asean airtransport sector with respect to the independence, sovereignty, equality, territorial integrity and national identity of all Asean member-states—is a key pillar to support the establishment of the Asean Economic Community (AEC). The single-aviation market will help facilitate free, efficient, safe and secure movement of people and goods within, and potentially beyond, Southeast Asia.

C  A

S “N ,” A

n JAPAN 0.3667 n UK 69.8457 n HK 5.7997 n CHINA 7.2455 n SINGAPORE 33.3972 n AUSTRALIA 34.8763 n EU 50.9420 n SAUDI ARABIA 11.9916 Source: BSP (11 June 2015)

A2 Monday, June 15, 2015

BMReports BusinessMirror

news@businessmirror.com.ph

Asean Single Aviation Market: Talking regional but acting national Continued from A1

Asam will also contribute toward “a more competitive and resilient Asean, as it will bring people closer together and facilitate the efficient, safe and secure movement of goods, services and capital closer together.”

In order to achieve this, economic and technical requirements must first be met. The two include policies on market access, airline ownership and control, tariffs, competition law and state assistance, consumer protection, disputeresolutions,aviationsafetyand security, and air-traffic management.

Hence, Asean member-states (AMS) came up with an implementation framework that contains a road map that provides specific timebound measures that they must pursue to achieve Asam.

The liberalization measures cover the movement or carriage of both passengers and cargo or freight by air transport.

The road map is a multiyear action plan that goes beyond 2015.

But as of today, a number of AMS are still adamant to implement the measure.

One of them is the Philippines.

Cloudy skies

National University of Singapore Prof. Alan Tan, who is also an expert in aviation law, said the Philippines stands to largely benefit from the integration of the aviation markets in Southeast Asia.

But, with its current stance on issues on policy and the holes in

infrastructure development, the Pearl of the Orient might not reap the potentially large harvest of the Asam.

“The benefits of the Asam are that there will be more competition and choice for consumers in the form of airlines that they can pick for travel. The Asean liberalization we are talking about does not extend to Philippine domestic flights, but only to international flights,” he said.

Hence, a Philippine carrier will gain unlimited capacity to fly from Philippine points to other Asean points, while a Singaporean carrier will gain unlimited capacity to fly from Singapore points to Philippine points.

“However, the Philippines has accepted this liberalization for all its points except for its capital, Manila. Hence, other Asean carriers’ flights from their capitals to Manila would still be restricted. By the same token, Philippine carriers’ flights from Manila to the Asean capitals would also be restricted,” Tan explained.

In fact, all the Southeast Asian states have opened up their capitals, except for the Philippines.

Filipino government officials have repeatedly said the refusal comes from the slot-constrained Ninoy Aquino International Airport (Naia).

“But this does not prevent the Philippines from acceding to the Asean agreement that opens up the rights into Manila. This is because slots are different from rights,” he said.

Currently, local and foreign carriers are battling for slots at the

capital’s terminals. The Naia, built more than three decades ago, has reached its limits both in runway capacity and terminal volumes.

This even led to low-cost carrier Cebu Pacific’s acquisition of Tigerair Philippines—now operating as Cebgo—in 2014 to secure more slots, market watchers said.

The Japan International Cooperation Agency even predicted that this year would mark the start of the main gateway’s dark days. The airport is expected to handle some 37.78 million passengers by yearend, way beyond its 30-million annual passenger capacity and a few notches up from its maximum capacity of 35 million passengers per year.

“In reality, little will change on the ground because of the slot constraints. Because of limited slots, other Asean airlines will not be able to fly unlimited into Manila in any event; so the Philippines has nothing to lose by accepting the Asean agreement that provides for unlimited rights,” the law professor explained.

Think regional

But for Wolfgang Sander-Fischer, an aviation expert at the European Aviation Safety Agency, opening up Asean capitals is one thing and liberalizing air-traffic rights even in secondary airports is another.

He called on governments to fully subscribe to the nine freedom rights established by the International Civil Aviation Organization’s, thereby allowing each nation to tap into a large route network in the

Asean. “To achieve Asam, the Asean community needs liberalization, but liberalization will not create Asam.

Achieving it is far more ambitious than liberalization,” the aviation expert said.

Sander-Fischer explained that the subscription to all rights will allow a Filipino carrier to fly, say, to Hanoi, then directly serve passengers to Ho Chi Minh.

Simply put, when the Asean region subscribes to all nine, airlines could operate not only international services, but also tap into the domestic routes of their sister nations.

But to achieve this very ambitious prospect, the Asean bloc must first link themselves through mutual airservices agreements.

“We must not forget that it is open sky out there on third-, fourth- and fifth-freedom traffic among international airports within the region.

We have it in around 10 of them and soon more. Imagine Laotians, Cambodians, Burmese, flying straight to Boracay, Bohol, Bacolod and many new other international airports in the countryside. Our domestic tourism has come of age. They would be happy to know it just expanded. It would be much easier, cheaper, to see the temples of Yangon, Angkor Wat of Cambodia, and the Cu Chi tunnels of Vietnam. The bucket list of the Filipino tourist would grow much longer,” Avelino L. Zapanta, a former president at Philippine Airlines, added.

Fifth-freedom traffic rights refer to an airline’s right to carry traffic

between two foreign countries on a flight that originates and terminates in one’s own country.

Manila remains to be the only Asean nation that has yet to subscribe to the said right.

“Member-states have to accept the concept of regional community.

The national spirits still prevail.

There is no Asean community spirit yet. They all want it, but to do something for it is another step,” SanderFischer added.

AirAsia Philippines Chairman Marianne M. Hontiveros agreed, saying AMS must first have a change in mindset to implement the improvements needed for the deployment of Asam. She lamented over several problems that each Southeast Asian nation must face in order to achieve a single aviation market. These problems must be addressed in order to facilitate further growth.

“Current aviation problems impede Asam. There are protectionist policies in place—a resistance to regional standards, which can be good for efficiency and to reduce redundancy in, for instance, permit applications. There is also a lack of transparency, for instance, in the granting of slots and limited staff mobility due to existing regulatory restrictions, which we can get rid of if we have Asam,” she said.

Thus, she called on each stakeholder to “rethink how we look at aviation.” “Aviation has to be seen holistically. It is not only about operating flights; it is not a stand-

alone industry. Aviation is very closely linked to tourism, but also to security, political stability, economic empowerment, good infrastructure, the health of the people.

To usher in Asam, we need mind-set change,” she said.

Hotiveros said governments need “to be more transparent, act quicker, remove red tape, and be in tune to the needs of aviation today.”

The private sector, on the other hand, needs to go beyond thinking only of what benefits it but also consider what benefits the public.

“Governments need to change their protectionist policies. Gone is the era of single national carriers,” she said. “The region needs to be committed to Asam. We need this to grow tourism—a key economic generator—in the region and to offer real Asean connectivity, which is a necessity for the success of One Asean Community.”

The Philippines aims to generate $4.6 billion in tourism revenues by attracting 6 million tourists through 2016. This will allow the sector to contribute 6.35 percent to the country’s gross domestic product.

“Right now, there is a tendency for many of us to talk regional but act national. We need to transcend national and think regional. The Philippines has a population of around 100 million. Big. But by going Asean, we expand our market more than six times to 625 million.

That’s roughly half the population of China and of India,” Hontiveros said. To be continued

www.businessmirror.com.ph

BusinessMirror Special Feature

Monday, June 15, 2015 A3

Economy

A4 Monday, June 15, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Abad blames lack of technical know-how for underspending

By Estrella Torres

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he Department of Budget and Management (DBM) said lack of concrete planning has been causing failed biddings, and delaying the award of projects in key agencies and departments.

This was part of Budget Secretary Florencio B. Abad’s presentation on the department’s assessment of the P303billion underspending in 2014, before the Joint Congressional Oversight Committee on Public Expenditures.

He said problems were mainly caused by poor planning in government agencies and departments.

Public biddings at the agency and department levels, he added, have failed or suffered delays due to specific problems on identifying technical specifications/terms of reference.

These include problems of government agencies to understand highly complex technical specifications or specialized goods when making procurement.

Abad also said agencies and departments usually fail to submit purchase requisition that caused failure in public biddings and eventually procurement.

The assessment of the DBM was based on the Agency Procurement Compliance and Performance Indicators, a method to assess the performance of a government agency’s procurement activities. The assessment aims to compare the agency’s procurement system with that of the national public procurement and international best

ABAD: “The lack of appropriate personnel to handle public bidding, and the agencies’ varying interpretation of rules, have caused delays and failures in public bidding.”

practices and standards using baseline standards and indicators.

Abad also said poor cost estimates of projects put out for bidding by departments and agencies have resulted in failure and delays in public biddings.

Meanwhile, the low number of bidders for government projects also contributed to the problems that cause the delay and failure of bidding process.

At the same time, Abad admitted that delays in the release of DBM’s Special Allotment Release Order also led to the bidding woes.

“The lack of appropriate personnel to handle public bidding, and the agencies’ varying interpretation of rules, have caused delays and failures in public bidding,” Abad said.

The budget chief said, of the P2.284.3-trillion national budget for 2014, the government’s actual spending only reached P1.9 81.6 trillion, leaving a P303-billion underspent budget.

Meanwhile, the DBM has released P30.9 billion to allow key agencies to

create new positions in their respective Bids and Awards Committees (BACs) and help the accelerate spending, particularly in infrastructure projects.

Abad said among the measures to address underspending is to assign full-time support staff in key line agencies to ensure there are enough personnel and resources to coordinate with the DBM on organization adjustments.

Among these key line agencies that need to increase disbursements include the Department of Transportation and Communications, Department of Education, Department of Public Works and Highway, Department of Health and the Department of Social Welfare and Development.

Abad said in a recent hearing of the Joint Congressional Oversight Committee on Public Expenditures that so far, these line agencies have complied with the measures by creating 90 full-time positions for their BACs. He said these key spending agencies should increase the number of their BACs to handle their procurement procedures.

He said the line agencies have also been tasked to disaggregate project listings. They were also directed to submit to the DBM their implementation plans for the programs and projects in 2015.

The DBM has so far released P30.9 billion worth of lump-sum appropriations for these line agencies besides their respective allocation in the national budget.

news@businessmirror.com.ph

House think tank outlines ways to end port logjam

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By Jovee Marie N. dela Cruz

O address the problem of port congestion in Metro Manila, the House of Representatives’ Congressional Policy and Budget Research Department (CPBRD) has urged the government to consider Batangas and Subic ports as alternative main sea gateways and upgrade the country’s infrastructure.

CPBRD, the research body of the lower chamber, said in a discussion paper that it is imperative that the government seriously consider gradually shifting international container traffic to Batangas and Subic ports to solve the growing congestion problem in Metro Manila and to catalyze growth in adjacent regions.

It also encouraged the government to study carefully the proposal to cap volume in the Port of Manila (POM), and consider the impact of this policy in terms of the potential additional cost to shippers.

The CPBRD, citing a study by supply-chain stakeholders, said around 70 percent of the imported raw materials, equipment, supplies and consumer goods go to Metro Manila and Northern Cavite. About 18 percent go to Laguna, 6 percent to Batangas and Quezon; and 6 percent to Pampanga and other areas north of Metro Manila.

A big part of the exports come from Metro Manila and Northern Cavite, at 73 percent.

“The Joint Foreign Chambers [JFC] of the Philippines has suggested that the local government units of Metro Manila impose higher taxes on factories and warehouses as incentives to move to hubs like Batangas and Subic,” the research body said.

It added that “various groups have [also] advocated for the Batangas and Subic ports as alternatives of the POM to deliberately address the issue concerning the underutilization of these ports, albeit, improving in recent years.”

According to the CPBRD, around P17.5 billion was borrowed during President Gloria Macapagal-Arroyo’s administration to finance the development of Batangas and Subic ports, excluding the additional investments of around P111.1 billion that funded the expressways leading to these ports.

The CPBRD also proposed separating the regulatory and operational functions of the Philippine Ports Authority (PPA).

“While the Batangas Port is under the PPA, the Subic Port is owned by the Subic Bay Metropolitan Authority [SBMA]. Thus, it may seem challenging for the PPA to strongly promote the Subic Port as a competitor to the PPA-owned ports, including the POM, because of its potential to erode the PPA’s revenues substantially,” the paper said.

According to the CPBRD, the port-congestion problem in 2014 was unprecedented.

“The PPA had dealt with port-congestion problems in the past but only during Christmas season, when there is substantial increase in import volume. But the port congestion last year was far more complex and urgent, triggered by the Manila truck-ban ordinance,” it said.

The port-congestion problem last year has prompted the government to establish a Cabinet cluster, whose task was solely to address the port logjam, a result of the Manila truck ban, limited road capacity in Metro Manila and the growing trade volume.

Infrastructure projects

The research body also backed the proposals to construct a “mega port” within or outside Manila to support a growing trade volume in the next five to six years.

“Undoubtedly, the root of the congestion problem in the country is the lack of well-planned and efficient infrastructure,” it said.

The CPBRD added that the country’s infrastructure is among those identified by multilateral companies as one of the major weaknesses in its growing economy.

“Indeed, solving the country’s congestion problem requires more investment in infrastructure development,” the body said.

Also, it added that port stakeholders have suggested the need to build a dedicated elevated expressway connecting the POM directly to the North and South Luzon expressways.

“Some have even proposed to revive the railways from POM to Divisoria and Tutuban to Caloocan, and connecting them with North and South Luzon. The fast and cost-effective service by rail transport makes it a preferred mode of transporting passengers and cargoes,” the CPBRD said.

It said the country’s remarkable economic growth in recent years, as well as the expected gains from the upcoming Asean Economic Integration, is seen to facilitate robust international trade to support a consumption-driven economy and a booming manufacturing industry, adding: “The increasing capacity of ships calling at world ports requires port infrastructure that could accommodate post-Panamax vessels containing more than 14,000 to 18,000 20-foot equivalent units [TEUs], from the current 8,000 to 10,000 TEUs.”

National transport policy

One of the major shortcomings of the country’s infrastructure sector is the lack of an integrated national transport plan, the CPBRD said.

“The port-congestion problem would have been prevented had there been a national transport policy in place that guides and harmonize the development goals of the national and local governments. It is, therefore, imperative to put in place a comprehensive long-term National Transport Policy toward achieving a well-coordinated and integrated multimodal transport system in the country,” the research body added.

A national transport policy will also institutionalize and insulate the country’s national transportdevelopment plan from political interventions as the case of the Manila truck ban, it said. “[Also] it is vital for the transport-infrastructure network, such as port, airport, roads, rail transport, to be planned as a system to ensure the stability and sustainability of the key industries’ supply chain,” it said.

The CPBRD also adopted the proposal of the JFC for the formulation of a “master plan,” which should aim, for instance, to transform Manila into a financial and service center—tourism, finance, education, medical and business-process outsourcing.

“This would require moving factories and manufacturing activities to the outskirts of Metro Manila, particularly Cavite, Laguna, Bulacan, Pampanga, Batangas and Subic. Moreover, it is important to equip Batangas and Subic ports with world-class logistics facilities, including warehouses and distribution centers,” the lower chamber’s research body said.

Filipino designs stand out at New York furniture fair

By Rizal Raoul Reyes Correspondent

P

hilippine exhibits at the recently concluded International Contemporary Furniture Fair (ICFF) in New York generated more than $500,000, according to Executive Director Rosvi C. Gaetos of the Center for International Trade Expositions and Missions (Citem).

The export-promotions arm of the Department of Trade and Industry said Philippine companies attracted interest among foreign visitors, with two Philippine-made goods getting featured, as among the best in the exhibit.

“This intriguing divider is as much art as function.

The honeycomb structure of Vito Selma’s piece provides dimension and shadow. The warm wood color is particularly pleasing,” global communicator Vera Dordick said in Homedit’s Best of ICFF. “With moveable components, the pyramid-like pieces can be folded inward or outward to change the look,” Dordick added. Selma is a multiawarded designer and recipient of the Young Entrepreneur of the Year Award from the Cebu Chamber of Commerce and Industry.

Gaetos said the Philippine exhibits were the only Asian products lined up with those from the US, Italy, the United Kingdom, Belgium, Canada and Austria by Homedit.com,

as the best of ICFF 2015. This gave the Philippine products a gateway to Europe and the other half of North America.

The other Philippine design exporters that joined ICFF exhibit are Kenneth Cobonpue, Bon-Ace, Ito Kish, Tadeco Home and Triboa Bay Living.

Aside from raking in actual sales during the ICFF’s four-day run, the Filipinos are also expected to produce business deals even after two years from participation in the show, which attracted some 30,000 interior designers, architects, retailers, manufacturers, representatives, distributors and developers, all constituting a big market for supply contracts.

The ICFF was held in New York City’s Jacob K. Javits Convention Center, where the show has been attracting more than 700 exhibitors from 30 countries and 32,000 visitors annually. New York is globally acknowledged as “central to the US economy.”

“The New York fair provides optimum brand visibility and prominence to our furniture exports for the high-end US market and other parts of the globe, and Citem always makes sure that Philippine exhibits stand out and elicit vast market attention and preference,” Gaetos said.

Furniture and home furnishings reportedly generated about $101.41 billion worth of sales i n the US

in 2013.

Economy BusinessMirror

news@businessmirror.com.ph

Exports drop no effect on GDP growth–DBS

By Bianca Cuaresma

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he disappointing export d at a in Apr i l shou ld not unduly impact the country’s continued expansion as the local economy relies on various other growth drivers to sustain its development, a regional banking giant said.

Economists at DBS Bank said the $272-billion economy should not worry too much about the contraction of Philippine exports in April.

The DBS economists said this development, which has been blamed for the volatility in global demand, has little impact on their outlook on Philippine gross domestic product (GDP) growth this year for two reasons.

“First, the main drivers of the economy are its resilient consumption and robust investment.

Both private consumption and investment have contributed an average of 6 percentage points to GDP growth in the past three years. Going by the March quarter data, we are likely to see this trend sustained for this year,” the Singapore-based bank said.

“Second, export growth was always meant to normalize this year. The past three years have seen exports averaging near double-digit growth. It is hard to

make it four years in a row, given the state of the global economy,” the bank added.

According to the lender, investment growth and the manufacturing sector were likely to make up for the weakness in the country’s exports.

“Investment growth outperformed our expectations in the March quarter, and another fullyear double-digit investment growth is not to be ruled out,” the bank said.

“More important, we continue to see encouraging signs in the manufacturing sector. Exports of electronics managed to grow a modest 7 percent on-year in the March quarter. This is likely to remain supportive of the manufacturing sector, helping to take some burden off services and construction,” the bank added.

T he Philippine Statistics Authority (PSA) reported just last week that exports came wel l below ex pectations in April, the sector having posted a deceleration of 4.1 percent during the month.Despite its continued optimism on the countr y’s growth momentum, DBS Bank reiterated the country’s forecast growth should remain below the government target for the year of 7 percent to 8 percent.

Monday, June 15, 2015 A5

PHL, European bloc to hold second round of trade talks

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By Catherine N. Pillas

he Department of Trade and Industry (DTI) will be having the second round of negotiations with the European Free Trade Association (Efta) countries this month to determine the areas that will be included in the proposed free-trade agreement (FTA) with the four-member economic bloc.

“We’ll be negotiating the second round on June 27 until the first week of July in Geneva,” Trade Undersecretary Adrian S. Cristobal Jr. said in an interview last week.

The second round of negotiations will center on specific interests of the Philippines and Efta countries, he said.

Cristobal cited intellectual property right (IPR) protection as a salient area of discussion.

“IPR would be an important area of concern on both sides. On their side, they are a bloc that produces high-technology products and they also have active phar-

maceutical industries. As for us, we have active creative industries also,” Cristobal added.

In a previous interview, a Swiss envoy said IPR protection is an area they would like to see enforced in an FTA with the Philippines, as before 2013, the country’s track record on IPR enforcement has been poor.

Cristobal still refused to give a timeline for the conclusion of the Philippines-Efta FTA, but the European country-bloc is keen on finishing an agreement before the end of the present administration.

The wealthy Efta bloc—composed of Switzerland, Norway, Iceland and

Liechtenstein—is being targeted by the Philippines as source of substantial investments, particularly in manufacturing and services.

“In general, we’re looking at the gains of bringing in investments, because as a market, Efta is relatively small. But in investments, they have large multinational corporations, so we want to attract them in manufacturing and services,” Cristobal said.

Efta economies are among countries with the highest percapita gross domestic product (GDP) in the world.

Liechtenstein has the second highest per-capita GDP globally at $89,400, while Switzerland, the largest market among the Efta memberstates, has a per-capita GDP $54,800 and ranks 11th worldwide.

Efta-Philippines total merchandise trade amounted to $633 million in 2013.

Efta economies’ exports to the Philippines amounted to $440 mil lion, composed mainly of pharmaceutical products, aircraft and machinery.

Cristobal earlier expressed confidence an FTA with the bloc of wealthy European countries can be completed by 2016. “It’s doable. We did studies on that, and our economies are com-

plementary. We already did a round of consultations last year and started scoping talks last year. An agreement with Efta can be done by 2016.”

Trade Secretary Gregory L. Domingo also expressed the same sentiment, as most of the groundwork for an FTA has already been laid down in the past year.

Areas for cooperation that may be beneficial for local industries, said Cristobal, are in shipbuilding, iron and steel, auto and auto-parts components, aerospace, informationtechnology (IT)-business-process management and pharmaceuticals.

C r i s t ob a l me nt ione d t he strengths of the country and its possible offering to the European bloc, citing voice and nonvoice services and IT solutions, as well as in the sectors of banking, shipbuilding, precision engineering, pharmaceuticals and chemicals.

There is export potential, as well, to Efta for creative services, such as editing, sound mixing, dubbing, animation and computer graphics.

Raoul Imbach, deputy head of Mission at the Swiss Embassy, in a previous report, said export sectors in the Philippines that may benefit from the FTA include agriculture, fisheries, handicrafts and IT.

Tourism&E

Busines

A6 Monday, June 15, 2015 • Editor: Carla Mortel-Baricaua

A Wedding Experien

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Story & photos By Gael Hilotin

he rising sun lights a path across the azure sea and through ruggedly enchanting rock formations. Meanwhile, pillowpump clouds float overhead the San Carlos Borromeo Church, one of the 26 churches in the country recognized as cultural icons because of their exceptional beauty and impeccable state of preservation.

Weddings in Mahatao are still traditional, they schedule it based on the pilaton, an age-old calendar created by the Ivatan elders.

It’s still early morning, yet the crowd dash like ants in a vernacular house near the age-old church in the old-fashioned town of Mahatao, just 6 kilometers away from Basco, Batanes. Age-old traditional houses in this province are built out of stone, lime, wood, and thatch to survive the harsh and bipolar weather.

As I walk inside the confines of the time-tested residence, I see about a dozen men, both young and old, patiently chopping the meat of a cow which was slaughtered around 3 a.m.

“Here in Mahatao, you need to butcher a cow and a pig when you get married, because you have to give food to the entire community during

the reception. Everyone is invited in a wedding,” Ryan Cardona, owner of Bisumi Tours and Services, a local tour agency in Batanes tells me.

I am lucky to have Cardona as my companion, an experienced and well-known Ivatan tour guide in Batanes before he set up his own tour company last year. When he learned I have 18 days to spend in his province, he suggested an itinerary that will introduce me and let me immerse in Ivatan culture. Because his brother-in-law will tie the knot, he invited me to witness the traditional wedding preparation.

“This is my third time attending a wedding in Batanes. I’m now

Well-wishers dance in celebration at the wedding reception.

Neighbo in prepar

the official wedding crasher!” I quip.

“Do you know why there’s a lot of wedding this week?” Cardona asks. “Weddings here are scheduled based on the pilaton, an age-old calendar created by the Ivatan elders. We consult them on when is the best time to hold a wedding, when to travel and when to open a business, among others,” he explains.

He then leads me to an old kitchen where the women are busy preparing the ingredients for the cuisine, which are mostly traditional. I get my own knife and sit shoulder to shoulder with them as I peel the onions.

Kitchens in old houses in Batanes are typically built separately. They usually bear a resemblance to a sinadumparan, a stonehouse with twosloped cogon roof, only smaller in size. They have a built-in stove called rapuyan, which is constructed out of

the doo in her of peop prepara food in

Men help in butchering a cow and pig to be served to the community at the wedding reception.

stone and mortar. Above the stove is a wooden storage called paya, used for stocking dried fish, vegetables, garlic, onions and other condiments.

An amiable woman standing by

Entertainment

ssMirror

nce in Batanes

ors, friends and relatives of the bride and groom help ring and cooking the meals for the wedding.

or asks for my name and jots it down notebook, which contains the list ple who are helping in the wedding ration. Later on, a traditional Ivatan n vunung leaf is given to those who

tourism@businessmirror.com.ph • Monday, June 15, 2015 A7

Tourists help reforest Catanduanes

women prepare the vunung leaves to be used as plate for food.

lend a hand by two men roaming around, carrying a container full of vunung.

“This is our breakfast for today,” the woman tells me.

On the other side of the yard, Cardona shows me another group of women who are busy cooking. Colossal vats, pans and casseroles dapple the area. They let me try to mix the food, which is not as easy as it looks as smoke starts to get into my eyes.

I laugh in tears.

I continue peeling the onions with the other women, until someone asks us to stop because the ingredients are enough already. By lunch, they hand us another round of vunung.

The wedding ceremony itself is already modern, but the reception is a mix of modern and traditional. Traditions, in order to survive, need to adapt to the changing times.

At the makeshift dance floor accentuated with rainbow-hued lamps and en-

demic flowers, men ask women “Maparin ka itada [Can I dance with you]?” Those who invite women to dance will have to pay any amount on the table. In return, they get a free liquor shot, pulutan and a cigarette. There are also assigned manayay, people who asks others to dance, but does not have to pay, they do this to entice more dancers and fill the dance floor.

Participating in a local wedding in Batanes is truly an experience worth remembering. I rarely get to witness a traditional wedding preparation like this. I find it amazing how the residents of Mahatao exhibit the spirit of bayanihan (communal unity) through occasions like weddings.

There is something about their traditions that reminds me of my roots. Sometimes, I find it heart-rending how I travel to faraway places to find and experience something that we used to have. They say all traditions are meant to be broken, but I wish they do not.

A Foreign tourist plants a tree in Catanduanes.

C

atanduanes was once called the “Land of Howling Wind” because of its location along the path of typhoons in the Pacific Ocean seaboard.

Situated east of the Bicol peninsula, Catanduanes is a promising destination for its dive sites, fine-sand beaches, enchanting waterfalls and its iconic Puraran “Majestic” surfing spot in Baras.

Aside from touring its destinations, visitors to the island-province can now enjoy its natural allure and, at the same time, do their share in caring for Mother Earth.

This, after the provincial government adopted a unique program that gives tourists the opportunity to plant trees during their stay.

Dubbed “One Tourist, One Tree,” the drive encourages foreign and local

tourists to plant a tree in areas identified by the Provincial Tourism Office.

According to Catanduanes Gov. Araceli Wong, the program was conceived based on suggestions by foreign tourists who were impressed by the province’s forest cover.

It takes pride in its 60,000 hectares of forests considered as the largest green patch in the Bicol region, which include the 26,010-hectare Watershed Forest Reserve, the 1,500 hectares of old- and second-growth forests and vast abaca plantations, which are home to various wildlife species.

She said that the undertaking also intends to help the National Greening Program of the Department of Environment and Natural Resources (DENR), aimed at reforesting the archipelago to

mitigate the impact of climate change.

The Philippines’s top producer of abaca fiber, Catanduanes is listed by the DENR as among the country’s most important biodiversity areas.

Wong added that a plant nursery at the Capitol Complex has been set up where tree seedlings are propagated to make the environmental initiative sustainable.

The Taiwanese, who are volunteers of an international environmental foundation, planted trees in Caramoran town while the Americans, who are members of the International Service Corps of Asia, planted in San Andres town.

So far, 88 Taiwanese and seven Americans have registered in the program since its launch in April.

TheElderly

A8

BusinessMirror

Monday, June 15, 2015 • Editor: Efleda P. Campos

news@businessmirror.com.ph

San Juan validating beneficiaries for social pension

TERESITA C. Cumba (left), Office for Seniors Citizens Affairs (Osca) San Juan head, and Teresa T. Tongol, a barangay senior citizens association leader, at the city’s Osca office. OLIVER SAMSON

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By Oliver Samson | Correspondent

HE city of San Juan’s Office for Senior Citizens Affairs (Osca) recently started validating the eligibility of individuals applying for the seniors’ social pension after the minimum age requirement was lowered by the Department of Social Welfare and Development (DSWD).

Osca San Juan is conducting social investigations to establish the qualification of applicants, said Teresita C. Cumba, Osca San Juan head, in a recent interview.

“Under the law, only indigent seniors are entitled to receive the monthly social pension,” she said.

“The Osca will have the applications well-validated.”

The applicant must not be a re-

cipient of pensions from the Social Security System, Government Service Insurance System, or veterans’ pension, Cumba said.

“Also, the applicant must have no regular source of income or financial support from relatives,” she said.

Physically handicaped and sickly seniors who have no financial sources may also qualify, she added.

The Osca conducts very detailed investigations since the office had numerous experiences of seniors applying for the social pension who are recipients of other government pensions, Cumba said.

“It will violate the provision of R A [Republic Act] 9994,” she noted.

The age requirement was lowered by the DSWD from 77 to 65 to cover more seniors, she said.

“Starting this year, eligible seniors, 65 years of age and above, will receive the monthly social pension,” she said.

Under RA 9994, also known as the Expanded Senior Citizens Act of 2010, seniors aged 60 and older shall receive a monthly social pension under the government’s protection program for seniors.

But due to limited resources, the department set the minimum age requirement at 77 years old until 2014, Cumba said.

San Juan seniors, aged below 77, have been clamoring for years to lower the minimum age requirement, said Teresa T. Tongol, a senior citizens barangay association leader in the city.

The seniors in the city have constantly wailed over the minimum age requirement of 77 years old, she added.

“How can the seniors avail themselves of the social pension if some are dying at the age of 60?”

Tongol said.

Eligible seniors will start receiving the monthly stipend this year, Cumba noted. The DSWD will have it delivered to the address of the recipient.

Osca estimated over 1, 000 seniors in San Juan will receive the social pension, she added. The office has set the goal to cover a total of 2,154 seniors this year.

The social welfare’s proposal to lower the minimum age requirement was approved by both houses of Congress, she added.

The General Appropriation Act of 2015 is inclusive of the monthly social pension for senior citizens. The government has allocated over P5 billion for the social pension of seniors across the country.

REMOVING SILVER HAIR Elderly woman is busy removing the white hair of her colleague while waiting for customers in front of their stall at the

People’s Park in Baguio City.

MAU VICTA

House OKs P100K cash gift to Filipino centenarians

A

MEASURE granting P100,000 gift to Filipino centenarians here and abroad was approved on third reading last week by the House of Representatives.

House Bill (HB) 5780, to be known as the “Centenarians Act,” also declares every September 25 as the “National Day of Respect for Centenarians” as part of the annual Family Week celebration from September 19 to 28.

The Committees on Population and Family Relations, Ways and Means, and Appropriations earlier endorsed the measure for plenary passage in substitution of HB 35, 100 and 3134 authored, respectively,

by Reps. Marcelino R. Teodoro (First District, Marikina City), Edcel B. Lagman (First District, Albay) and Rogelio J. Espina (Lone District, Biliran).

Teodoro said the measure hopes to honor and provide monetary incentives to all Filipino cente-

70 years a devotee of the Black Nazarene Story and Photo

by Mia Rosienna P. Mallari Intern

A

FTER seven decades, Zenaida Parcero has worn countless hats, but one she has never taken off is the humble hat of a devotee of the Black Nazarene.

Zeny was born and raised in Pasay, the fifth of eight siblings. She grew up under the watchful eyes of her grandparents. Unlike other children her age running back and forth the street of Taylo, Zeny was confined in their compound, tasked to help around the household. “ Wala akong kalayaan tulad ng ibang bata. Magbabasa ako ng magazine tapos ang sasabihin sa akin 'Dasalan ang hawakan mo,’” she said while adjusting her thinrimmed spectacles.

She ran her hand through her graying hair and recalled how her grandmother used to wake her up at 2 a.m. to pray and how she strictly followed a schedule when going to church each week. On Wednesdays, she would head to Baclaran; Thursdays were reserved for Saint Jude in Malacañang Compound; and Fridays were dedicated to the Black Nazarene in Quiapo.

Churches and cathedrals also served as her primary landmarks whenever she had an opportunity to travel.

Though it may seem like she grew up in a conservative environment, there is no hint of resent-

ZENY Parcero (left) shares a laugh with her younger sister Emerenciana.

ment in Zeny’s eyes.

“Okay lang naman kasi halos lahat ng hinihiling ko natutupad at naniniwala ako na ’yung mga bagay na hindi Niya pa naibibigay, may rason ang Diyos kung bakit hindi Niya binigay,” she said.

Her life definitely has never been a walk in the park. Zeny and her family hurdled challenge after challenge, facing their problems head on instead of dodging them.

She claims that her lifelong devotion to the Black Nazarene has changed her life in more ways than one.

Coming from a simple, middleclass family, Zeny never asked for a life of luxury and comfort. She prayed for goodness. At age 21, she married Severino, a carpenter and mason who was then working on a project

in Zeny’s neigborhood.

Severino dedicated much of his time and his salary to Zeny, who, at the time of their marriage, had trouble bearing a child. Zeny already suffered two miscarriages and the bills were beginning to pile up.

She craned her neck to see if her husband was listening from the other end of the room before softly saying, “Pinapasok ko lahat ng trabaho noon, labendera, plantsadora, kasambahay pero hindi ko sinasabi sa kanya.

Magagalit kasi.”

Having moved to Cavite after they married, Zeny often told Sev that she would be gone to visit her mother in Pasay, but instead, she took some extra work to make up for the meager income they had.

Tough times dawned and the couple almost lost hope. Zeny decided to dedicate a novena to the patron closest to her heart. She religiously traveled to Quiapo amid rains and flood, tight budget and being robbed.

“Nagsangla pa ako ng wedding ring tapos nanakawan pa. Pero nagpapasalamat ako na may natira pa,” she said.

Zeny thought she was going to have another miscarriage but she continued to pray very hard. No checkups, she depended only on the local hilot. She only sought help from the local center once. Exactly nine months later, Zeny gave birth to a healthy girl. They christened her Myra, my mother.

“Psalm 24, iyan ang lagi kong binabasa. ‘They will receive blessing from the Lord and vindication from God their Savior.’ Madami pa,” she said.

“Masaya kasi kahit hindi mayaman, sama-sama naman kami sa bahay.”

Over the years, she has waded through harsh waters with her head leveled and palms together. With hard work, both she and her husband managed to go abroad for a short time, managing to build their own house and set up a vegetable stall in the public market.

Even now with problems in their family business, she remains steadfast in her faith. “Kaya namin ’to. Hindi kami pababayaan ng Diyos. Hindi Niya kami bibigyan ng problema na hindi namin kaya. Kaya nagpapasalamat pa rin ako sa Kanya.”

narians for having led long and exemplary lives.

“As our nation’s role model for living long, healthy and disciplined lives, centenarians should indeed be honored and respected accordingly by the younger generations, through the government’s appropriate recognition and allocation of substantial pecuniary incentives,” Teodoro said.

The bill provides that, upon reaching the age of 100, every Filipino residing in the Philippines or abroad shall be honored with a letter of felicitation from the President of the Philippines congratulating the celebrant with a centenarian’s gift in the amount of P100,000.

Every September 25, during the observance of the “National Day of Respect for Centenarians,” all Filipinos who have turned 100 years in the current fiscal year shall be awarded a plaque of recognition

and cash incentive, which amount shall be determined and provided by their respective city or municipality of residence.

The bill states that all living centenarians who have reached 100 years prior to the effectivity of the act shall be honored during the first celebration of the National Day of Respect for Centenarians. Each of them shall be honored with the letter of felicitation from the President and a P100,000 centenarian gift. They shall also be awarded plaques of recognition and cash incentives.

In the same event, a posthumous plaque of recognition in honor of each deceased centenarian shall be presented to their nearest surviving relative or representative. The names of the deceased centenarians shall be sourced from the Register of Deaths in the Local Civil Registrar’s Office of every city and municipality. PNA

DENR cited for promoting work space friendly to elderly, PWDs

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HE Department of Environment and Natural Resources (DENR) has been cited by the Commission on Audit (COA) for giving the elderly and persons with disability (PWDs) equal employment opportunity and access to workplace amenities.

In its recently released audit observation for 2014, the COA commended in particular the efforts of the department to make its six-story central office building on Visayas Avenue in Quezon City more conducive to senior citizens and PWDs. “We are thankful to the COA for appreciating our efforts in promoting the welfare of our senior citizens and PWDs,” Environment Secretary Ramon J.P. Paje said.

Paje said that as a government agency, the DENR fully supports the thrust of the Aquino administration in improving the total well-being of not only the elderly and PWDs, but also women and children.

“With climate change and other environmental disasters posing greater threat on women, children and the elderly, rest assured that the DENR will always be mindful in the formulation of our policies and programs, as well as in the design of our facilities, to prevent undue disadvantage on the vulnerable sectors,” he said.

The COA audit team headed by Aurora Caramat noted how the DENR has been responsive to the needs of senior citizens and PWDs by providing them with facilities and services like well-

furnished waiting lounge and Internet kiosk at the lobby, ramps, covered walkways, elevators, restroom cubicles in all floors and parking slots near the main entrance door.

The audit team also praised the DENR management for giving equal opportunities to employees with disabilities in compliance with Republic Act (RA) 10524, or “An Act Expanding the Positions Reserved for Persons with Disability.”

The team said there are plenty of PWDs working at the DENR central office dispensing supervisory, technical and administrative duties. These include a director, a forester, a legal staff officer, an information technology officer, an administrative staff member and a speech writer.

Signed into law by President Aquino in May 2013, RA 10524 mandates government agencies and governmentowned and –controlled corporations to reserve 1 percent of their work force for PWDs. The COA also lauded the DENR for allocating funds for activities promoting the rights and welfare of PWDs and senior citizens working at the department.

Last year the DENR either organized or coorganized events for Hypertension Awareness Month, Brain attack Awareness Week, Head and Neck Consciousness Week, International Day of PWDs, World Autism Awareness Day, Cerebral Palsy Awareness and Protection Week, Down Syndrome Consciousness Week, among others. PNA

The Regions BusinessMirror

news@businessmirror.com.ph

Monday, June 15, 2015 • Editor: Dionisio L. Pelayo

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DOE boss wants to suspend auction of CBK hydro plant

By Lenie Lectura

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NERGY Secretary Carlos Jericho L. Petilla wants to suspend the privatization of the 727-megawatts (MW) Caliraya-Botocan-Kalayaan (CBK) hydropower facility which the Power Sector Assets and Liabilities Management Corp.

(PSALM) has scheduled for auction in 2016. Petilla strongly believes the CBK should remain as the government’s regulating power reserve.

“I feel that it should not be privatized because it is the only asset left in this country that serves as regulating reserve. It’s the best defense this country has to regulate the grid,” Petilla said.

PSALM intends to privatize the CBK hydropower facility in the second half of 2016. Likewise, the state firm has set the indicative turnover of the administrator of the CBK contracts by the first semester of 2017.

If Petilla, vice chairman of the PSALM board, would have his way, “I would defer the auction.” He said it is because of CBK that Luzon was able to avert a power outage.

“We did not have brownouts because of that. CBK remains the only regulating asset in this country that its main use is for security.”

Sergio Osmeña III, chairman of the Senate Committee on Energy, said in March that Luzon has found a new source of power-generation capacity and electricity consumers can count on this to augment the power supply even beyond the summer months of 2015.

He said the CBK pump-storage power plant in Laguna province would run at its full capacity during

the dry months to help address an anticipated power shortage. “The NGCP [National Grid Corp. of the Philippines] has energized the Lumban line. So CBK will now give us 720 MW, not only for three months this summer, but forever,” Osmeña had said. Due to line constraints and other issues, the CBK is only able to deliver around 300 MW. “I personally went there to ask why CBK is not running at its full capacity.

The answer I got was because, aside from the transmission line, the resorts nearby would complain if water level will increase.

So we talked to the resort owners and owners of small houses there and told them they will be compensated if they will relocate. CBK was created as a pump storage and not as a resort lake,” Osmeña said.

The Senate had earlier proposed to declare CBK plants as “must run” units during peak hours to achieve the desired water elevation of the Caliraya Lake and optimize the existing output of the said units.

The Senate then urged the Department of Energy to declare all CBK pump-storage power plant units as “must load” units from 8 p.m. to 8 a.m. from Monday to Saturday and Sunday, if and when requested by PSALM, and as “must run” units during peak period hours to achieve the desired water elevation of the Caliraya Lake and optimize the existing output of the said units.

PSALM is the agency mandated

by Republic Act 9136, or the Electric Power Industry Reform Act of 2001, to handle the sale of the remaining state power assets and financial obligations of the National Power Corp.

Decommissioning of MILF fighters to start on Tuesday

By Manuel T. Cayon

Mindanao Bureau Chief

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AVAO CITY—The panels of both the government and the Moro Islamic Liberation Front (MILF) announced that the first set of guerrilla fighters and their weapons will be decommissioned in Central Mindanao starting on Tuesday.

The Office of the Presidential Adviser on the Peace Process said that “Phase 1 of the decommissioning process scheduled on Tuesday will be seen by all stakeholders as the beginning of genuine peace in Mindanao.”

Government chief peace negotiator Miriam Coronel-Ferrer told a news conference earlier that the peace panel had sent out invitations for the ceremonial decommissioning of MILF weapons to everyone involved in the peace process, “especially members of Congress.”

“Although it’s a ceremonial program, it signals something that took a long time to prepare both the hearts and minds of the people who are

involved in this process,” she added.

She said the decommissioning would involve the identified 75 MILF weapons and 145 members of its armed wing, the Bangsamoro Islamic Armed Forces. “It is part of the normalization program that were listed and to be implemented under the Comprehensive Agreement on the Bangsamoro,” she said.

Ferrer emphasized that Phase 1 “is very important because the 145 MILF combatants who have agreed to undergo the initial stage will serve as pioneers and help gauge the success rate of the normalization process.”

MILF chief negotiator Mohagher Iqbal assured that “even if the Bangsamoro basic law (BBL) is delayed, they will comply with the initial phase of the graduated decommissioning of MILF forces and their weapons.”

“We will see to it that we will comply with our obligations. We have to undertake this whether the BBL is moving in Congress or not,” Iqbal said.

“Honestly, there’s no other way, but to have peace in Mindanao.”

CLEARING THE WATERWAYS A farmer clears the edge of an irrigation canal in Villa Marso, Cordon, Isabela, as flowing water traverses rice farms in the area. The water from the Magat Dam irrigates 75,000 hectares of rice lands in Isabela and parts of Quirino province. LEONARDO PERANTE II

Families seek DOJ help for release of Abadilla 5

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By Joel R. San Juan

HE families of five men convicted for the 1996 killing of police Col. Rolando Abadilla have sought the assistance of the Department of Justice (DOJ) for the immediate arrest of 10 policemen who allegedly tortured the so-called Abadilla 5 into admitting the murder.

In a letter submitted to Justice Secretary Leila de Lima, the wives of two of the five convicts now serving life sentences at the New Bilibid Prison in Muntinlupa City, said the police officers remained at large 19 years after the incident.

Melanie de Guzman and Marilou Lumanog said the Regional Trial

Court of Quezon City Branch 225 ordered the arrest of the 15 cops accused of torture and human-rights cases, but only three of them appeared before the court and posted bail: Supt. Dario Anasco, Senior Police Officer (SPO) 2 Pio Tarala and SPO1 Edilberto Nicanor.

Two of the accused have already died, while the 10 others remain

at-large. Still at-large are Chief Insp. Robert Ganzon, Romeo Rejis, Anthony Rodolfo and Rogelio Castillo; and others known only as Insp. Ceddamon; SPO4 Ramira, SPO3 Juanito Cabiling, SPO2 C. Nocum, SPO1 Pobre and PO3 Wilfredo Hidalgo.

“Nineteen years after we filed human-rights violations against 15 [Philippine National Police] officers, arraignment of the accused was finally conducted on June 9, 2015,” de Guzman and Lumanog lamented.

“We are humbly seeking your assistance for the arrest of [the 10 PNP officers who remain at-large].”

They also asked the DOJ to move for the immediate resolution of their cases by pushing for marathon hearings.

De Guzman is the common-law wife of Rameses de Jesus, while Lumanog is the wife of Leonardo Lumanog. The other three members of the Abadilla 5 are SPO2 Cesar Fortuna, Joel de Jesus and

Augusto Santos. The five have been in jail for almost 19 years now, after being convicted in the assassination of Abadilla, chief of police of the defunct Metropolitan Command Intelligence and Security Group during the Marcos era.

In 2011 the Supreme Court affirmed with finality the conviction of the Abadilla 5, noting the inconsistencies in the testimony of security guard Freddie Alejo, who witnessed the whole shooting incident. A month prior to their conviction, the Ombudsman issued a resolution, which found probable cause for filing torture and human-rights cases against 15 policemen.

But the families of the Abadilla 5 failed to submit the report to the high court before the affirmation of conviction. De Lima had earlier recommended the Abadilla 5 for presidential pardon, citing findings of torture in an earlier probe.

China opens its door to Davao’s durian

By Noel T. Provido

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DAVAO Durian Council Chairman Larry Miculob checks on the quality of durian fruits in his farm in Upper Kawayan, Calinan, Davao City. Miculob said the acceptance of Davao durian in the Singapore and China markets shows Philippine durian is on az par with other leading producers in the world.

Contributor

AVAO’S favorite fruit durian is spreading its smell into the international markets. From Singapore in 2013, this year, our locally grown fruit has recently set foot in China, the world’s largest market.

Durian grower Larry Miculob made his first shipment of 14 tons of durian to China in May through three Chinese fruit processors he met in Manila.

Miculob said Thailand and Malaysia are the leading durian suppliers to China, but lately, we’re not able to cope with the huge demand, thus, paving the way for Chinese buyers to consider importing the fruit from the Philippines, particularly in Davao City.

“The initial export of durian to China only shows that our product is at par with leading global suppliers and that we can compete with them in terms of quality,” he said. Miculob, also the chairman of the Davao Durian Industry Council (DDIC), attributed “the improved quality of our durian fruits to the package of technologies, developed and disseminated by the Department of Agriculture [DA],” which enabled the

farmers to observe good agricultural practices. “The DA, through the High Value Crops Development Program [HVCDP] has also provided us equipment such as shedder, biofertilizer facilities, and marketing support which help the industry link with prospective buyers,” Miculob said. He stressed the need for the industry to continuously increase its volume of production to meet the increasing demand in the international markets. He is confident that after the first shipment to China, more orders will be placed. He added that Hong Kong is also in demand of 36 tons to 40 tons a week of durian fruits.

“Expanding our export market is one opportunity local durian growers should seize to avoid a supply glut, especially during peak season. The council [DDIC] is seeking the support of the DA for the establishment of a cold-storage facility to address not only oversupply, but also to ensure year round availability for global market,” Miculob said.

Miculob said the DDIC, in partnership with the DA, is also looking into product consolidation to meet the growing demand of durian.

“We need to have comprehensive information on growers’ volume of production and their respective

site for easier consolidation. This will also help us ensure not only the required quantity but the safety and quality requirements of our existing and potential markets,”he said. Miculob said the industry should also look into the varieties preferred by the international markets which, he said, are mostly Puyat, Chanee, Monthong and Duyaya as these are meaty, creamier and with higher recovery for exporters.

“Vacuum-packed technology is also helpful in improving the quality of our durian exports, as this will prolong the fruit’s shelf life, keep the juice intact and make the packaging more attractive,” he added.

“As Davao’s agri-products such as durian make it in international markets, the DA is now looking into how we can sustain and make a dent in the midst of stiffer competition due to Asean integration,” DA Davao Regional Director Remelyn Recoter said.

“In partnership with industry stakeholders, the DA-HVCDP will continue to put in place the needed interventions such as production and technical support, including strengthening of marketing promotions to better position our durian commodity in the global market,” she said.

A10 Monday, June 15, 2015

Opinion BusinessMirror

editorial Save the PostalBank

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OST of us are too young to remember when the “Post Office” was the primary window to the outside world for many communities. The postal system was based on a government-established distribution system for mail and had an obligation to service virtually all areas of the country where private business might not find any profitability.

Along with providing for the delivery of mail and packages, many countries used the post-office network to provide banking services that private banks were unable or unwilling to do. The Japan Post Bank, while now a government-owned and -controlled corporation (GOCC), began in 1875 as a service to citizens seeking safe and convenient savings-deposit services. It became the largest savings bank in the world. Its spin-off from the mail-handling company Japan Post was to integrate it into the banking system. However, Japan Post Bank is only for deposits and money transfers, is still not a lender.

The Philippine Postal Savings Bank (PostalBank) was founded in 1906, but did not use the physical facilities of the Philippine post office, as did Japan Post Bank. It currently has 25 branches.

The PostalBank is at a crossroads.

The PostalBank has an authorized capital of P1 billion, of which only P500 million had been subscribed by the national government. PostalBank CEO Josefina M. de la Cruz is asking the government to increase the capitalization of the bank in order for the bank to be a viable banking institution.

The government intends to merge the Development Bank of the Philippine and the Land Bank of the Philippines (LandBank) to create the largest bank in the country, competing directly against privately owned banks. It is proposed that the capital of the surviving entity—the LandBank—be increased to P200 billion. We will not comment on the idea of a government bank going into business against the private sector.

But the PostalBank is unique, and could fill a critical need not being fully met by the private sector. That is what the government should be doing.

Under de la Cruz’s leadership, the PostalBank wants to expand its microfinance banking office (MBO) program and establish MBOs all over the nation, including in the 1,500 existing post offices. The PostalBank will establish its presence in the 37 percent of municipalities that are unbanked, as well as penetrate the other municipalities, that are financially underserved.

But, with most noble purposes, there may also be a hidden agenda. There is some talk of allowing the PostalBank to be sold to a local or especially a foreign company, as Asian financial integration progresses.

The PostalBank appears now to be a well-managed GOCC, which is often the exception. Its plan to expand its microbanking and microfinancing facilities is another critical piece of the inclusive economic-growth puzzle.

We say, save the PostalBank and give it the resources to do its unique job, and not to sell it to the highest bidder.

Planning for the future Atty. Jose Ferdinand M. Rojas II

RISING SUN

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HE Philippine Charity Sweepstakes Office (PCSO) held a three-day strategic planning seminar in the first week of June to assess the previous year’s results, brainstorm strategies and plan the direction of the agency over the short, medium and long term.

The sessions were facilitated

by Guthrie-Jensen’s Louie Ramos and Ralph Guzman, who also led a similar seminar for the PCSO last year. The attendees this year included agency Chairman Ayong Maliksi and his staff; directors Betty Nantes, Mabel Mamba, Francisco Joaquin and Bem Noel, senior managers and staff, and myself.

Guzman shared valuable data on markets and trends, such as the rise of the use of social media for marketing.

Ramos explained key business concepts and guided our assessments and analysis, targeting, and strategic planning, as well as the creation of balanced scorecards.

Those in the private sector will find such activities commonplace, perhaps; but it was not until the Aquino administration made it a

requirement, in its effort to professionalize the civil service and ensure the quality of performance of government agencies, that such became mandatory, particularly for government-owned and -controlled corporations.

Today the Governance Commission on GOCCs (GCG) requires all GOCCs annually to sign commitments with regard to key major final output targets, which are reached through negotiation with the GCG and after presentation of the GOCC’s balanced scorecard and strategic plan.

In the case of the PCSO, such targets are related to the agency’s two core services—revenue generation through gaming and charity-fund allocation.

For next year and over the medium term, the PCSO will seek to

improve its performance in these two areas. Some of the strategies the agency will implement are related to the enhancement of present games; development of new and exciting ones, even faster processing times for applications for assistance through computerized modules; and the expansion of the agency’s network of branches, now at 45 nationwide, to all the provinces.

Also to be fast-tracked is the construction of the PCSO’s permanent headquarters at its property in San Marcelino, Manila, where the agency’s security printing department and motorpool are located.

The PCSO is also committed to pursuing its ISO 9001 certification by implementing workplace and other quality-related policy standards agency-wide, also in line with the Aquino administration’s pursuit of excellence in governance and administration. nnn

LAST Friday the nation took a break from work to commemorate its 117th Independence Day with familiar rites, such as flag-raisings and parades in most major cities.

President Aquino led the national celebration in Iloilo City, the first time for it to be held there and not, as usual, in Manila. He visited the sites of several infrastructure projects; unveiled a historical marker; led a flag-raising in

China’s answer to Europe’s need

By Adam Minter Bloomberg

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LTHOUGH Budapest and Beijing are separated by 6,000 miles, they’ve just agreed to become much closer. In a quiet ceremony held last weekend, Hungary became the first European country to sign onto China’s New Silk Road initiative, a multibillion-dollar program to build up infrastructure and trade along the land and maritime routes of the ancient Silk Road that stretched across Asia and Europe.

Right now, Hungary’s participation probably won’t have an impact beyond its own borders. But as other countries follow its lead, China’s economic and political relationship with Europe will likely undergo a dramatic shift—one that may not be to the European Union’s liking.

The Chinese government’s interest in Europe isn’t new. In recent years, it has made substantial investments in Greek port facilities, and agreed to help finance the development of high-speed rail service between Belgrade and Budapest.

In both cases, China wanted to simplify the logistics of exporting to European markets. In return, it offered something to the countries in question: help building infrastructure, and easier access to Chinese markets (assuming they could figure out something to export back).

The novelty of the New Silk Road initiative is that China is now pursu-

ing far deeper partnerships as part of a comprehensive political strategy.

Previously, policy-makers in Beijing tended to treat, say, an investment in Tajikistan as a discrete exchange— you get a pipeline, we get gas. Under the New Silk Road framework, it’s part of an explicit effort to expand Chinese influence across Eurasia— one step toward earning primacy for China on the global stage.

Beijing hasn’t denied having vast ambitions for a program it expects to spur $2.5 trillion in annual trade by the end of the decade. In March Xinhua, China’s official state news wire, announced the purpose of the program is nothing less than to “change the world political and economic landscape.”

According to an analysis by Barclays, China’s economy will benefit enormously from opening up new markets for its excess capacity. For example, China’s massive state-

owned sector currently earns an average return on investment of just over 4 percent. In contrast, Barclays estimates the average return for Chinese firms on New Silk Road infrastructure projects to be between 10 percent and 15 percent.

What’s in it for Hungary? In 2013 Prime Minister Viktor Orban noted that central Europe is in desperate need of infrastructure that “the euro zone is unable to finance in its current situation.” Two years later, that assessment still holds. Meanwhile, China’s need to diversify its investments beyond its own slowing economy has only grown. For Hungary, turning toward China might appear to be an easy decision.

Nonetheless, the program comes with risks to China’s potential partners, from Pakistan to Hungary. The New Silk Road initiative foresees lowering trade barriers to encourage trade. But, given its overcapacity production, China would almost certainly be the dominant exporter in any resulting trade relationship, to the detriment of local industries in partner-countries. China has not hesitated to leave local manufacturers out in the cold when building roads and rail in partner-countries; Chinese companies have tended to be designated the projects’ official suppliers and contractors.

Santa Barbara town; and held the traditional vin d’honneur at the Old Iloilo Capitol with some 29 Cabinet members, 90 members of the diplomatic corps, four senators and four members of the lower house.

For the President to attend a commemoration outside of Manila shows his commitment to promoting an environment of inclusiveness—a sense of welcoming everyone and including them in significant activities— under the umbrella of good governance that is a hallmark of his administration.

This goes a long way toward fostering unity among the peoples scattered over our 7,100 islands, and even those of the diaspora, our overseas workers and residents who still have families in the Philippines and take a keen interest in local affairs.

T he President’s gesture of s pend i ng I nde pendence Day in Iloilo, thus, gives a deeper meaning to this year’s celebration, and reminds us of all the democracy we struggled to restore and that we now seek to sustain and strengthen.

Mabuhay ang sambayanang Pilipinas!

Atty. Jose Ferdinand M. Rojas II is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

Then there are the political risks.

The New Silk Road initiative’s founding document declares the initiative will uphold the “five principles” of China’s foreign policy, including “mutual nonaggression” and “mutual noninterference in each other’s internal affairs.” In recent years, Chinese officials have placed a special emphasis on that latter point, especially when responding to criticism of its human-rights record in regions with ethnic minorities, including Tibet. Development assistance always comes with strings attached, of course, no matter the donor-country.

But China’s investments are best understood as a cumulative means to a geopolitical end—one at odds with some of the West’s own principles.

That Hungary has signed up for this project may not come as a shock, given that its government has shown an authoritarian streak of its own. And with so much potential investment at stake, it wouldn’t be surprising if other European countries are tempted to forge their own partnerships with China. But they should understand that China is unlikely to back down on its national interests when it comes to investing in Europe. It’s up to Europe’s potential New Silk Road countries to remember to hold onto their own.

opinion@businessmirror.com.ph

Opinion

Jenner is undeserving of ESPN courage award

Government ought to support, not obstruct, homeschoolers

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BusinessMirror

By Christine M. Flowers | Philadelphia Daily News/TNS

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By Veronica Andreades | The Philadelphia Inquirer/TNS

HERE are as many types of courage as there are personalities and human struggles. There isn’t a blueprint with bullet points to follow, although I think we’d all agree that soldiers, police officers and firefighters are entitled to an automatic assumption of heroism (until and unless they contradict it by their own actions).

HE last thing my mom expected was an unannounced visit from a social worker to “check up” on us. Yet, there was a woman from the Board of Education, looking in on a homeschooling family of four kids living in New York City, where public-school classrooms averaged 34 students each and private educational institutions were charging $30,000 or more per year.

But, basically, courage comes in many colors, cadences and creeds.

The teenager afflicted with an inoperable brain cancer who continues to play basketball until she can no longer hold the ball is the epitome of courage, more so than the young woman who, afflicted with a similar form of cancer, chooses to commit suicide and avoid the pain. We can have compassion for the one who chose a premature death, because none of us who has been spared that promised, anguished end has the right to judge (and yet I have, in memory of my brother, who also extinguished the light of his life by his own hand).

But there is no courage in seeking an end to pain, even though many called Brittany Maynard heroic. It is a human impulse, and mere humanity is not courageous. On the other hand, Lauren Hill, who by her insistence on living the last moments of a cruelly shortened life with joy and purpose, raising millions of dollars for cancer research and turning her small candle into a towering flame that cursed the darkness, transcended mere humanity, and became immortal. That is courage.

That is what should be remembered when we look upward for an example and not inward for an explanation.

These are the thoughts that were triggered by the announcement by ESPN that it would give this year’s “courage” award, named in honor of the great Arthur Ashe, to Caitlyn (née Bruce) Jenner. For those who have only a passing acquaintance with Ashe, it’s important to examine his life and the reasons that it became the model for true courage in the field of sports.

According to his web site, ArthurAshe.org, the athlete was a “top-ranked tennis player in the 1960s and 1970s” at a time when racism, never absent from the sports world, was more overt than it is today. He was raised in the segregated south, becoming the first African-American male tennis player to win a Grand Slam tournament.

He was a humanitarian, an educator and a role model throughout his life, winning the Presidential Medal of Freedom. Ironically, though, it was in the manner in which he faced death that he showed the measure of his courage. Ashe died in 1993 after contracting AIDS through a tainted blood transfusion. The dignity with which he lived the final, unfair chapter of an amazing human narrative made it impossible for ESPN to choose anyone else to represent the face of courage.

And while the winners haven’t always been sportsmen, they have always been exceptional for the contributions that they made to society, and not because of any politically convenient agenda. Here is a partial list of previous winners: Muhammad Ali (1997); Todd Beamer, Mark Bingham, Tom Burnett and

I was a middle schooler, and mom told my younger brother and me to stay put with our workbooks.

That visit was uneventful, but not all families are so lucky. A couple in Missouri, with the help of the Home School Legal Defense Association, has filed a lawsuit after a police raid on their home last year resulted in the state taking custody of their children. All this started from an anonymous tip that this homeschooling family’s house was messy.

It is one thing to have families submit a record of educational progress and for the state to look out for the welfare of children.

There will be calls for more such oversight after the tragic deaths in Detroit of Stoni Blair and Stephen Berry, whose mother is facing murder charges. Their deaths are nothing short of horrifying, and already Michigan lawmakers are calling for more accountability in the homeschooling system, which their mother claimed to be part of.

Pennsylva n i a recent ly up dated its homeschooling code, a change that I appreciate. Last year Gov. Tom Corbett signed a bill that eased up on the regulations and processes parents

Jeremy Glick (2002); Pat Tillman and Kevin Tillman (2003); Nelson Mandela (2009); Pat Summit (2012); and Robin Roberts (2013).

Each one of these honorees, from a great champion of a fighter who let us see him fade into the darkness of Parkinson’s with heartbreaking generosity, to the valiant civilians who stared death down on Flight 93 and sacrificed themselves for America, to the star safety-turnedwarrior on the battlefield who, regardless of the ultimate conditions of his death, gave up the gilded trappings of gridiron glory and enlisted to serve, one among many. There is the giant who exchanged a quarter century and the best years of his youth for a guarantee of equality, and two fine women who battled and are still battling illnesses that steal strength and memory, but not hope and commitment.

These are all the different colors, cadences and creeds of courage. They are a pure reflection of Arthur Ashe and do honor to the award that bears his name.

But when I see Caitlyn (née Bruce) Jenner, the reflection I see is far from that purity. Jenner, an admittedly transcendent and historic athlete, could have been given the award years ago for winning the decathlon at a moment in time when the United States was still locked in a psychological and philosophical battle with the Soviet Union.

When he raised that American flag and ran around the Olympic track with the wind of Mercury at his feet, he gave this country a reason to celebrate. Ironically, he now says that this was the moment in his life when he felt the most fear and most like a fraud. So, perhaps, the courage it took to overcome his doubts is the type that deserves a trophy and adulation.

Except that they’re not giving him an award for that. Jenner has been chosen because he has come out as a woman, has transitioned quite publicly, has laid it all out for us on the cover of a popular magazine.

This is audacious, but in a society where we vilify those who support traditional values, it is hardly a courageous act to exhibit your newly acquired identity. Courage implies something less egotistical and more transcendent, like giving your life for your country, or showing the world that 28 years in prison can break your body but not your spirit.

I’m sure there are a lot of people who think Jenner is the epitome of courage, simply because he was able to say “I’m Caitlyn” in a world that still has a problem understanding the alleged fluidity of gender.

They’re entitled to their opinions.

But I’m entitled to believe that on the night of the ESPY awards, Arthur Ashe will find Lauren Hill in that paradise they both surely inhabit, take her hand in his own, and raise it up.

must endure to receive approval to teach their children. Pennsylvania has some of the strictest requirements and accountability procedures for homeschooling.

Learning at home creates the capability to cater to the needs of the child. My older brother was dyslexic. To help him tell a “b” from a “d,” my mom tried four different phonics curricula and finally made up her own rhyming, illustrated story system. The ability to efficiently address his reading problem allowed him to cultivate his strengths. He copied every page of George Bridgman’s Constructive Anatomy and downloaded Maya, a computer-animation program.

After graduating this year from the School of Visual Arts in New York City, he already has a job in his field.

The option to homebrew an education is invaluable. It allows parents, in their own three-bedroom, two-bath castles, to foster the talents of gifted pupils in a direct way that would be impossible in regular school. There are kids like my 11-year-old cousin, who composes fugues and visits Chinese restaurants, where he orders and converses with the waiter in

The Philadelphia Inquirer/TNS

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OU put in overtime hours, but don’t get overtime pay. Sound familiar? For millions of Americans, unpaid overtime is a big problem. But it wasn’t always like this—and it doesn’t have to be this way. Here’s the story: In 1938 the US Congress passed the Fair Labor Standards Act, which abolished child labor, established a minimum wage, and gave the Department of Labor enforcement powers to protect American workers from being exploited at work.

The Labor Department protected American workers by making sure that if they worked more than 40 hours, they

would get paid time and a half. To make sure the rule applied only to workers who lacked the bargaining power to set their own time and tasks, certain qualifiers were put in place. One of these was a threshold salary below which workers were required to receive overtime pay.

Today all hourly American workers plus salaried workers who make less than $23,660 a year are required to get

Mandarin. And someone who has a learning disability or illness can learn at his or her own pace without fear of falling behind the crowd.

Then you have people, like me, who are very average, and who could easily operate in a classroom environment but have chosen to take the do-it-yourself route.

Some think that governmentfunded educational establishments are something specia l academically. Admittedly, some of them are, like New York City’s Bronx High School of Science, where one of my brothers attended high school and joined its nationally renowned, 200-person debate team. However, I recently overheard a teen barista talking about his public-school classes: “I’ve never studied in my life, and I’ve made it this far,” he said.

Currently, the United States has 2.2 million scholars being schooled at their bedroom desks. These teens score 15 to 30 points higher on standardized academic achievement tests than their counterparts in regular classrooms. Yet, we’re still looked down on. Even though our country has prided itself on liberty and equality, people still fear diversity of thought and look down on different ways of doing things. We’re not alone in such fears. Twenty-eight nations have banned homeschooling.

Homeschooling isn’t for everyone. Physics in the living room requires a certain amount of organization. Some parents do not or cannot give adequate attention to

Enhance your summer reading by listening to some good books

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By Dick Meyer | Scripps Washington Bureau/TNS

ASHINGTON—Being read to is one of the great joys of childhood. And reading to a child is one of the treats of being a parent. Over the past few years, I’ve discovered a way to recapture this cozy delight: audiobooks.

Audiobooks are oases for grownups. They double or even triple the amount I “read.” When I am too tired to read a book, I can listen.

On a long car ride, I can listen. In boring morning hours in the gym, I can listen. When my attention span is fried by long days with short bits of digital downloads, I can listen.

So I thought I might start the summer by recommending some audiobooks I have loved.

My favorite kind of listening is a big ambitious work of history. I like to combine the listening with brief online expeditions to see pictures of the players, maps or reference materials.

The ultimate was The Rise and Fall of the Third Reich by William L. Shirer. I have had the book for at least 20 years, but was daunted by its 1,280 pages. So I listened and learned. It turns out I retain nearly as much from listening as reading.

Supplemented by rereading important passages and looking at maps and photographs, I hold on to even more. And it is incredibly fun and engrossing.

Napoleon: A Life by Andrew Roberts was fascinating and following the battles with military maps was like playing with toy soldiers as a kid. I had the same fun with a couple of Civil War books, such as James McPherson’s The Battle Cry of Freedom and the first volume of Shelby Foote’s The Civil War: A Narrative: Volume 1: Fort Sumter to Perryville.

I am saving volumes two and three for the winter.

This might be some kind of heresy, but audiobooks are a fine way to tackle classics that are gathering dust on The Great Shelf of Ambitious Reading. I lost myself listening to Bram Stoker’s Dracula, George Eliot’s Middlemarch and W. Somerset Maugham’s Of Human Bondage (though a little less).

Rereads are almost better. I hadn’t picked up Great Expectations since sophomore year in high school, and listening to it last year was familiar, yet fresh.

I re a d D o s to y e v s k y ’s T he B rothe r s K a ra ma z ov i n h i g h school, too, and I even understood a chapter or two. Listening

Overtime work in US deserves overtime pay

By Janice Fine

Monday, June 15, 2015 A11

time-and-a-half for overtime. But the poverty level for a family of four in the United States is $24,250. That means that as US Secretary of Labor Thomas Perez put it, “Under the current rules, even if you’re poor, you may not qualify for overtime. That doesn’t make sense.”

Under the current system, if you are a low-income, salaried worker, you could work 50, 60, or 70 hours a week— or more—and it is basically up to your employer whether to compensate you for that additional work.

Salaried workers who make more than $23,660 can be exempted from the right to overtime pay if they are classified as professionals, administrators or executives. The haziness of these exemptions means employers can and do use them to avoid paying overtime.

But are low-level supervisors really executives who should be exempt from protection? Today many restaurant workers, social workers, loan officers, computer technicians, office administrators, customer service reps, retail sales workers, and insurance clerks and agents are subject to the so-called white-collar exemption.

The notion that workers who make less than $30,000 do not deserve protections is hopelessly outdated—indeed, you could argue that workers don’t achieve real bargaining power of their own until they are making $50,000 or more.

If the Department of Labor updated its regulations to ensure that everyone who makes $50,000 or less had the right to overtime, more than 6 million

maintaining a schedule. Kids can fail to reenter the public-school system smoothly. Others can rebel against their parents and refuse to learn.

But retaining the freedom of choice for families that raise skillful and smart children is a right that should not be withheld. The mothers who we know are responsibly caring for their children’s schooling reevaluate curricula and strategize on how to get their students into college. They adapt, abandoning what doesn’t work and trying something new. Such parents are deeply invested in their children’s success.

Having accountability to and support from the state as we work through this process would be wonderful, and Pennsylvania’s new law is encouraging. But government workers don’t always treat us kindly, and such behavior can make homeschooling families wary of the state’s involvement.

During that long-ago visit in New York, my mother, remembering her civil rights, did not allow the unannounced Board of Education representative into her home.

The woman’s appearance turned out to be a misunderstanding over a missing piece of paper. Why she couldn’t have just called we never found out.

Oblivious to the hostile presence outside our door, I continued reading for history, when my mom reappeared and resumed using multiplication flash cards with my little brother.

was the only way I was going to tackle it again and it was worth it, though hard. Anna Karenina, however, was so absorbing, it was almost a guilty pleasure.

When a great narrator reads a great book, it is like great theater— except you don’t have to share the experience with an audience. Tom Parker’s reading of The Adventures of Augie March by Saul Bellow is that. “Augie” is an urban, Jewish Huck Finn and Parker’s voices and accents are brilliant and hilarious.

The slang is awesome.

Same with Ralph Ellison’s The Invisible Man, read by Joe Morton. Together, these two audiobooks are an incredible tour of American cities in the middle of the 20th century.

The novelist Donna Tartt gives a gorgeous performance reading True Grit by Charles Portis. True Grit should be read by more people and Tartt will help that cause.

Her love for the main character, Mattie Ross, oozes. Portis, by the way, is underrated. His Dog of the South is as entertaining as an audiobook can be.

In the same vein, listening to Lee Horsley read Lonesome Dove

by Larry McMurtry is simply one of the great pleasures an adult can have. I’d fight over it. The prequels, Dead Man’s Walk and Com-

manche Moon are also great listens.

The sequel, Streets of Laredo, well, not so much. But John Randolph Jones’s reading of The Last Picture Show is p’ert near as good as Peter Bogdanovich’s film version (or try them together).

When it comes to crime fiction (my chosen escape) and light stuff, I’ve found that if I’ve liked an author, I’ll like the audiobooks, too.

I rarely indulge because I like giving in to a page-turner and then turning the pages all night, literally. (For the record, I disdain ebooks, except in emergencies.) But I’ve enjoyed listening to books by John Grisham, Michael Connelly, Carl Hiaasen, Stephen King and Greg Iles.

I prefer reading good, contemporary fiction to listening. But Tom Wolfe’s novels make for good listening, particularly My Name is Charlotte Simmons.

It is so funny, you might need an adult diaper if you’re listening on a road trip.

In the past year or so, I’ve also liked Tartt’s The Goldfinch, Kate Atkinson’s Life after Life and Capital by John Lanchester.

Regardless of what I like, listening is a wonderful way to know more books—and that’s a wonderful way to unclutter your mind in a cluttered world.

workers would benefit, according to the Economic Policy Institute.

In March of last year, President Barack Obama sent a memo on the issue to the Labor Department, urging the agency to “update existing protections consistent with the intent of the act.”

Unfortunately, you can’t take a memo to the bank.

The US Department of Labor spent the last year seeking public comment on the issue and has yet to take action. If the president’s goal is to help as many people as possible, the only true solution is to up the cap to at least $50,000.

A half measure won’t do.

Some national business groups have argued that paying workers more could hurt business and might even cause employers to cut pay or use fewer workers.

But this is false.

If employers want to avoid paying overtime, they could choose to do more hiring, shrinking the unemployment rate. Or they could simply pay time-and-a-half to their current work force, putting more take-home pay in their pockets. And since consumer spending represents more than half of all economic activity, a boost in either employment or take home pay would likely result in more spending and more economic growth.

By almost every measure, corporate profits and productivity have soared over the last few decades. Middleclass and low-income families have not shared in this prosperity. They are working overtime to make ends meet—and deserve to be paid better.

2nd Front Page BusinessMirror

A12 Monday, June 15, 2015

www.businessmirror.com.ph

DTI to set hurdles for CARS perks T

By Catherine N. Pillas

he Department of Trade and Industry (DTI) will be giving flexibilities in the form of minimum volume hurdle to car manufacturers wishing to avail themselves of incentives under the government’s Comprehensive Automotive Resurgence Strategy (CARS) Program, which will be detailed in the implementing rules and regulations (IRR) set for release in July.

Cristobal said the incentives may be prorated, depending on production milestones reached by participants.

The DTI, however, is yet to determine the specific volume hurdles.

“[Manufacturers] are required to make 200,000 units by the sixth year. But, definitely, there will be a benchmark for the volume so they can start enjoying incentives,” Trade Undersecretary for Industry Development and Trade Policy Adrian S. Cristobal said.

Cristobal said the incentives may be prorated, depending on production milestones reached by participants. The DTI, however, is yet to determine the specific volume hurdles.

The trade official hinted that the volume that will be set may be at a level that can already be reached in the first two years of the CARS Program’s six-year life span.

The specific criteria to qualify

for the two types of incentives will be spelled out in the IRR, Cristobal added.

Qualified participants are entitled to two types of fiscal support under the CARS Program, or Executive Order (EO) 182. One is dependent on the fixed investments made by the participant and the other on the production volume.

The fiscal support, totaling P27 billion and to be spread among three car models, will come in the form of tax-payment certificates.

The certificates will waive the tax and duty obligations of participants to the national government, specifically excise tax, income tax, import duties and value-added tax.

Since the release of the EO, a

Toyota official has said the car company has plans to ramp up production to qualify as a CARS participant, while Mitsubishi Motor Philippines Corp. (MMPC) has kept mum on the subject. Toyota and Mitsubishi are the top vehicle brands in the country today.

Automotive players have said the 200,000-unit hurdle is already a tall order, and many are awaiting the IRR to see if the government will grant flexibilities in meeting the requirement.

Out of the 272,000-unit sales of the auto industry in 2014, only 88,000 units were produced locally. Toyota Motor Philippines and MMPC accounted for 50,000 units of the total locally assembled vehicles.

PHL’s growth trajectory still points upward–BPI

By Genivi Factao

T

he Bank of the Philippine Islands (BPI), the country’s second-largest lender by assets, has retained its base casegrowth projection this year, where local output, measured as the gross domestic product (GDP), should still average 6 percent, no matter the disappointing 5.2-percent expansion reported in the first quarter.

BPI President and CEO Cezar P. Consing said most people see the reported GDP number as a disappointment.

He pointed out that data on foreign direct investments, as well as exports, were similarly underwhelming.

But no matter the disappointing first-quarter growth data, BPI is convinced the country’s growth trajectory still points skyward. “ The under whelming eco-

nomic number came at the time when there’s a lot of volatility. If you separate them and focus on what’s happening to our country, you’ll see that business is still very exciting. You’ll see the growth trajectory, and we see no reason to change our plans,” the top BPI executive told reporters.

“Our view is that the base case has not changed. We think it should still be a good growth year,” he said.

He emphasized that hitting the government’s GDP target remains possible and for the Philippines to meet growth target, local output should be at least 6 percent or 7 percent in the second half of the year.

“We’re data-driven. So far, we expect government spending to pick up. We expect the services sector to pick up, and we’re keeping our base case,” he said.

At the BPI, Consing said there had

been no changes as to their plans.

The lender will continue pushing for more corporate and retail products through its branches, and will continue to do more for its customers.

He said 2013 was unique because of extraordinary trading gains, but that a lot of that went away last year.

This year he sees a much more balanced growth for the bank.

BPI started the year with a strong momentum, as net income grew 36 percent to P4.9 billion in the first quarter.

The bank said net loans grew 14 percent to P730 billion, as lending to corporates increased by 13 percent, while retail loans went up by 16 percent.

Total deposits rose 17 percent year-on-year to P1.159 trillion.

BPI’s total capital adequacy ratio stood at 15.67 percent.

House panel: Uber, GrabCar colorum. . . group members also urged that the fleet operations of Uber, GrabCar and similar platforms be suspended until they have complied with government regulations.

Pending compliance, Abu said Uber and other transport entities allegedly are “colorum” vehicles, and wondered why the Philippine National Police has not apprehended these illegal vehicles.

Unang Sigaw Rep. Estrellita B. Suansing of Nueva Ecija said the owners of Uber should appear before the committee to explain their business model.

“W hy are they allowed to operate, when they are only listed as system developer? They are not

Nlex upgrade. . . of investment recovery, like direct reimbursement from the government, extension of concession period, or toll hike,” he said.

But still, Franco’s team is assuming that its long-delayed toll-rate hike will be approved by the TRB before the expansion initiative starts.

“We’ll be assuming that there will be a toll hike. Before we implement the project, we have to reach an agreement first on the investment recovery; that is part of the negotiation,” he said.

He noted: “But the periodic tollrate adjustment is a separate issue on the investment on the Nlex expansion.” The toll regulator has not acted on the company’s two petitions, one filed in 2012 and another

certified transport services,” Suansing said.

Securities and Exchange Commission Corporate and Partnership Registration Division Assistant Director Mary Anne Morales-Lagura acknowledged that Uber Philippines Inc. is registered only as a system developer.

Suansing also questioned the rationale of opening the applications for TNVS and TNCs, when there is a standing moratorium on the issuance of new taxi franchises.

She said TNCs should utilize franchise taxis, instead of privately owned vehicles.

On the issue of tax obligation, Suansing said that since TNCs is-

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sue receipts, they should be taxed not only for the commission in arranging the trip but for the cost or fare collected from passengers.

She urged the Bureau of Internal Revenue to study the business model of TNCs, so the government can efficiently collect the correct tax.

Lakas Rep. Philip A. Pichay of Surigao del Sur said the tax allocation should be clear and that tax clearance from both the BIR and the Bureau of Customs should be required from the TNCs. Pichay also requested Uber and GrabCar to submit to the panel copies of their income-tax record and audited financial statements.

Continued from A1

filed in 2014.

The first petition was due on first January 1, 2013. The second one, submitted on September 30 last year, would bring the cumulative toll-rate adjustment to 15 percent, of which 12 percent is long overdue.

The concession that the Pangilinan-controlled company holds allows for toll adjustments every two years.

Current toll fees at the thoroughfare (from Mindanao Avenue to Santa Ines) amount to P218 for Class 1 vehicles (cars, jeepneys, pickup trucks and vans); P544 for Class 2 vehicles (two-axle trucks, buses and vans); and P652 for Class 3 vehicles (trucks and trailers with three or more axles).

Metro Pacific is the largest

toll-road operator in the Philippines. It recently bagged the Cavite-Laguna Expressway deal from the Department of Public Works and Highways.

In a related development, at least two business groups are expecting the best and the worst for the Cavite-Laguna Expressway, possibly the most controversial publicprivate partnership deal that the government has awarded so far.

Despite all the positive news that came with the rebidding of the contract, European Chamber of Commerce of the Philippines External Vice President Henry J. Schumacher is still not convinced that the government made the right decision, when it called on for the rebidding of the project.