BusinessMirror June 19, 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 2014 10 No.Vol. 40 10 No. 253 Friday,18, June 19,Vol.2015

www.businessmirror.com.ph

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

9PERCENT INCREASE IN REVENUES PUSHED FOURMONTH FISCAL SURPLUS TO P19.08 BILLION

Govt spending improved 5% in Jan-April INSIDE

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HE national government posted a fiscal surplus of P52.6 billion in April alone, which brought the fiscal position to a four-month surplus of P19.08 billion.

CAREY MULLIGAN

Life

For justice instead

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OD of love and mercy, protect all those who work against human trafficking. Strengthen the defenders of human dignity. Shine Your light on those who educate the people. Bless those who care for the victims and survivors. Teach the minds, touch the hearts, transform the lives of the traffickers and their supporters.

Change their greed to compassion. Break their chain and network of abuse. Send exploiters to work for justice instead.

All this we seek in Jesus name. Amen.

WORD AND LIFE, FR. SAL PUTZU, SDB AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

CHICKEN THIGHS WITH HONEY, OLIVES AND OREGANO »D3

BusinessMirror

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

Friday, June 19, 2015

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HEN it came to acting out the rural life of her latest character, Far From the Madding Crowd’s feisty heroine Bathsheba Everdene, Carey Mulligan knew what she was doing. The 29-year-old English actress spent portions of her youth on her grandmother’s farm in Wales and became a dab hand at looking after livestock. She can even milk a cow.

Indeed, the week prior to starting work on her latest film, she was helping a local friend shear a sheep. “I wasn’t actually shearing, because it is really difficult,” she says, “but I was bagging up the wool.

I know a lot of people who farm. It is not unfamiliar territory to me.”

Directed by Thomas Vinterberg and based on the literary classic by Thomas Hardy, Far From the Madding Crowd (which opens on July 8 around these parts from 20th Century Fox, distributed

by Warner Bros.—Ed.) is the story of Bathsheba, a fiercely independent and spirited young woman who inherits her uncle’s farm. Beautiful, headstrong and financially autonomous, which was a rarity in Victorian times, she attracts three very different but determined suitors: Gabriel Oak (Matthias Schoenaerts), a sheep farmer captivated by her willfulness; Frank Troy (Tom Sturridge), a handsome and reckless Sergeant; and William Boldwood (Michael Sheen), a prosperous and mature bachelor.

This timeless story of Bathsheba’s choices and passions, while trying to maintain her own

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independence, explores the nature of relationships and love—as well as the human ability to overcome hardship through resilience and perseverance.

Oscar nominated actress Carey Mulligan is one of Hollywood’s most versatile actresses. She is widely known for her role in An Education, which garnered her an Academy Award Best Actress nomination.

She also received nominations for the Golden Globes and Screen Actors Guild Awards, and won an award at the British Academy of Film and Television Arts Film Award. She recently made her West End debut opposite Bill Nighy in a revival of David Hare’s Olivier Award-winning play Skylight and is currently reprising her turn on Broadway.

She recently wrapped production on Suffragette, which details the foot soldiers of the early feminist movement. Directed by Sarah Gavron, Mulligan plays the lead role of Maud opposite Helena Bonham Carter and Meryl Streep.

Do you think Bathsheba is a very modern heroine for her time?

Yes, she is a modern woman and I think it is an extraordinary feat by Hardy to write somebody like that and to kind of enjoy her “otherness.” You can see in the writing that he is taking real joy in writing this different, obtuse, rebellious woman.

She isn’t like the people who surround her. She is different. Just consider the fact that the story starts with a woman turning down a proposal from a hunk.

It’s Gabriel Oak!

C  D

FARM LIFE, WEALTH, INDEPENDENCE AND

CAREY MULLIGAN

LIFE

PHOTOGRAPHED BY STEVIE AND MADA

B D C

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TEAMWORK WORKS

The Department of Finance (DOF) traced the four-month surplus to higher revenue collection that outpaced the rate of disbursement of public funds for the period. The four-month disbursement number represents growth averaging only 5 percent, effectively a poor copy of the performance of the broad economy, which expanded at the rate of 5.2 percent in terms of local output, or the gross domestic product, in the first quarter.

The surplus in April reversed three months’ worth of budgetary deficits intentionally designed to put the $272-billion economy into high gear, not just this year and next but over the next five years at least.

S “S,” A

Sports

NBA Finals draws big ratings

BusinessMirror

B C B

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Contra Costa Times

| FRIDAY, JUNE 19, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

WHAT’S NEXT FOR LEBRON, CAVS AFTER LOSS IN FINALS?

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ALK about strength in numbers. The National Basketball Association (NBA) Finals turned out to be the most-watched and highest-rated ever seen on ABC, according to Nielsen.

The six-game series, in which the Warriors defeated the Cleveland Cavaliers, averaged nearly 20 million viewers and an 11.6 rating nationally. Those figures are up 30 percent and 26 percent, respectively, from last year’s Finals between Miami and San Antonio, and they’re the best numbers posted in the 14 years ABC has carried the championship series.

Taken on its own, Tuesday’s Game Six delivered an average audience of 23,254,000 viewers with a 13.4 rating, and peaked at 28,744,000 viewers in the late going as the Warriors closed in on their first title in 40 years.

Locally, the Game Six clincher drew a sensational 40.7 rating, making it the highest-rated NBA contest ever aired in the market. (Cleveland was even higher at 42.0). ABC7 estimates that, during the last 15 minutes of the game, 72 percent of Bay Area households watching television at the time were tuned into the Warriors.

Even more impressive: The NBA Finals, boosted by the star power of LeBron James and Stephen Curry, outdrew last October’s World Series won by the Giants. The World Series, spanning seven games on Fox, generated an average household rating of 28.6 in the Bay Area. The NBA Finals, over six games, delivered a 32.6 rating locally.

The Finals undoubtedly would have boosted its numbers even higher had it extended to a full seven games.

LEBRON JAMES and the Cleveland Cavaliers are expected to bounce back strong next season. AP

B J Z

WARRIORS’ GROUP MENTALITY MAKES TITLE A TRUE TEAM CELEBRATION

TEAMWORK WORKS

USA Today

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LEVELAND—LeBron James never promised a championship when he returned to the Cleveland Cavaliers.

He only promised it will be difficult to win a championship, and he tried to temper expectations about winning a title this season.

There were several times during the course of the season James privately and publicly questioned Cleveland’s ability to compete for a championship and yet without Kevin Love, Kyrie Irving and Anderson Varejao, that’s exactly what the Cavaliers did.

“This is a process,” Cavs Coach David Blatt said.

“You don’t wake up one morning and fall out of bed and expect to win the National Basketball Association [NBA] Championship. You hope that you can, but it doesn’t always work that way, and our guys did more than anyone could expect to put themselves and put our organization in this situation.”

They fell short to a deeper, more talented (in the present, injuries included) Golden State Warriors team that benefited from three qualities LeBron James said are vital to a title run: health, great basketball and luck.

“You lose in the Finals, they’re all disappointing. Doesn’t matter if I’m playing in Miami or playing in Cleveland or playing on Mars. You lose the Finals, it’s disappointing,” a subdued, thoughtful and disappointed James said.

Despite James telling reporters, “I haven’t thought about next season at all,” it’s already on to next season for the Cavaliers to some degree.

A Cavs front-office staffer was in Europe and watched workouts of US players within the past 10 days to scout for next week’s draft. Free agency opens the week after the draft, and the Cavaliers will send a team of young players and prospects to the NBA’s Las Vegas Summer League in mid-July.

Cavs General Manager David Griffin, an executive of the year candidate this season, has decisions and moves to make.

Regardless of those injuries, the Cavs still need to retain key players and add more depth, starting with resigning forward Kevin Love, if Love chooses to opt out of the final year of his deal and become a free agent. Though he’s said he won’t opt out, it wouldn’t be a surprise if he did, and it’s the prudent route to take.

Will Love re-sign with Cleveland? Who knows. Love has never had that giant pay day and could get one from the Cavs. He could also look elsewhere for a big contact. Signing a two-year deal and opting out after next season and becoming a free agent again is another option. But if he’s truly looking for the scenario which pays him and gives him the best chance to win a championship, Cleveland is the front-runner.

James can also opt out, and if he does, it’s not to look at other teams, it’s to take advantage of a larger max deal because of the increase in the salary cap.

Forward Tristan Thompson, who is a great rebounder with an improving offensive skillset, is a restricted free agent. He also seeks a big contract, and the Cavaliers have the right to match any offer sheet he signs from another team. James appreciates Thompson’s game, and the two share the same agent. If James wants Thompson back (he does), Cleveland will keep him.

Guard Iman Shumpert is also a restricted free agent, and other teams will be interested in him, especially for his defense. But it’s another situation where the Cavs have the right to match, and though he was asked to do a lot more offensively in the playoffs because of injuries, he was a key reason why the Cavaliers turned their season around, going from 19-20 to 53-29.

Guard J.R. Smith has a player option at $6.399 million, and though his shot abandoned him in the Finals, he still provided Cleveland with much-needed offense during the regular season and at times during the playoffs. He also enjoyed playing on the same team as James.

Center Timofey Mozgov gave the Cavs a rim protector on defense, allowing the Cavs to play a more aggressive style on the perimeter. The Cavs have a favorable $4.9 million option on his deal, and Cleveland should pick up that option. Guard Matthew Dellavedova is a restricted free agent, but the Cavs will look for more guard depth.

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B S A USA Today

LEVELAND—The room inside this downtown steakhouse was nearly empty. The revelry had come to an end.

Not long before, the Golden State Warriors had done their best to soak it all in. Their championship. Their journey. Their place in National Basketball Association (NBA) history. Players, coaches, owners, executives and staffers alike just kept hugging one another, shaking their heads and sharing stories about the part that each of them played.

From the bar to the dance floor to the booth in the middle where Finals Most Valuable Player (MVP) Andre Iguodala had sat for so long with his family while reflecting on their magical season, this tight-knit group was packed into the private party at Morton’s restaurant on West Second Street. It was hot, but no one cared. No one was sweating more than the Warriors’ 3-foot tall ice statue that was the centerpiece of their celebration.

“Strength in Numbers,” their familiar motto read in blue and gold.

The head count, fittingly, was growing by the minute.

“This definitely isn’t 77 [people],” a waiter could be heard saying about the Warriors crowd that was so much bigger than originally planned.

But as the sun came up in “The Land,” and they all headed for the hotel, a champagne-soaked straggler strolled through the near-empty joint en route to the exits. Stephen Curry’s celebration, as it turned out, had gone into overtime.

Curry being Curry, he took a few minutes to say hello before heading out and shared one last conversation about how it all came to pass. When it comes to covering sporting events of this magnitude, the real insight gets harder to find with every passing round because of the circus element that just grows and grows.

Players like Curry and LeBron James are in such high demand that the casual reporter-player chats that are so routine during the regular season mostly come to an end.

The podium news conferences have their substantive place, to be sure, but this topic wasn’t the kind of place for that.

I wanted his perspective on a text message that came my way following the Warriors’ Game Six win, one that went right to the heart of the Warriors’ story of sacrifice and the too-good-to-be-true part that Curry played. My wife, who ignores NBA basketball on most days but was among the record-breaking millions who tuned in to this series, had a question about this idea that the Warriors’ best player lost out to one of his own teammates for the top individual honor.

“Is Steph upset he isn’t MVP?”, she wrote.

It certainly didn’t look that way at the time, when the beaming Curry pumped his fist as if he’d sunk the deciding putt at the Ryder Cup when he heard Iguodala’s name announced. Curry grinned and shook his head when the question from my better half was put before him in person, seemingly amazed that people might still be questioning whether his selfless style is real.

Rest assured, Curry felt joy for Iguodala both publicly and privately. And when we chatted about one of the moments that he missed—Iguodala’s parents sobbing and hugging on the Quicken Loans Arena floor when the award came their son’s way—it was as if Curry had just found the extras on the DVD of his favorite movie.

“That’s really cool,” he said.

Curry decided long ago that this group wouldn’t get off the ground if they went down that dark road, the me-overwe path that that leads so many pro sports teams astray.

He set that tone last summer, when all the ingredients were there for the kind of superstar spat that would have changed everything about their culture.

Mark Jackson, the former coach with whom he had grown so close, had been fired despite Curry’s constant support. That’s typically a free pass for the franchise centerpiece to throw a fit, especially when it’s a player who was bringing unprecedented success to this oncelaughable organization. But Curry took the high road, letting it be known that he didn’t agree with the decision but also making it clear that he would lead the way in this new era under Steve Kerr.

When you set the bar that high, it puts a healthy kind of pressure on the rest of the group to meet that mark. Add in the fact that Curry is so universally loved and respected by his teammates, and you had a situation in which they all unofficially agreed to play by his rules and see where this high road took them. Put simply, no one wanted to let Curry down.

GOLDEN State Warriors guard Stephen Curry (foreground) yells as he carries the Larry O’Brien trophy in front of center Andrew Bogut after the team’s flight landed in Oakland, California. Warriors forward Andre Iguodala (left) lifts his Finals Most Valuable Player trophy as he walks past team employees. AP

So when Kerr told Andre Iguodala that he was going to come off the bench so that Harrison Barnes could live the starter’s life, he made the choice not to go south.

When David Lee learned that he wouldn’t be getting his starter’s spot back because Draymond Green had been too good while he was healing, he took great care to keep his frustration private and allow their ship to keep on sailing.

When Andrew Bogut was benched after three games because of Kerr’s series-changing decision to play smallball, the big man didn’t bitch.

The power of groupthink took over, and the chemistry born out it was as crucial as Curry himself.

Now that it’s all over, it seems clear that the Warriors woke up in the fourth quarter of Game Three. Their late surge wasn’t enough to avoid the second consecutive

loss, but the coming days would include some of the most candid self-assessments you’ll ever see.

Yes, Green had said, Kobe Bryant was right when he tweeted that the Cavs were playing like their lives were on the line and the Warriors like a team that was taking the opportunity for granted. No, Curry had admitted, they weren’t fully ready to compete with confidence at this stage. They seized the series and avoided an upset that—especially considering the injuries to Kevin Love and Kyrie Irving—would have been as humiliating as they come.

It’s a good thing for them, too, because nothing is guaranteed in this league. They’ll be an elite team for years to come because the roster is set up beautifully for that kind of run, but there may never be another time

when there’s this kind of health and happiness.

What if Iguodala decides he wants to start next season? What if Kerr finds himself with a big man battle between Bogut and young Festus Ezeli? What if teams like the Thunder or Grizzlies that suffered such ill-timed injuries get the kinds of breaks that the Warriors enjoyed this time around?

None of that mattered when Curry finally called it quits. This was the time to enjoy the present, with this party starting their victory lap that would include the Wednesday welcome home routine and a Friday parade in Oakland that will surely be electric.

Curry walked off into the sunrise, a smile on his face and a sense of satisfaction in his step. For him and these Warriors, it was a new day indeed.

SPORTS

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NET VIA THE INTERNET Motoring BusinessMirror

E1 | Friday, June 19, 2015 | Editor: Tet Andolong

Cars, boats and unliMited

sports at Filinvest

THE Carmudi Racing Team is a force to reckon with in motor racing

More net via the internet S    R R M.   R

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HE Carmudi Racing Team, just like the online portal which is making waves on the Internet, is a force to reckon with at the FORS (Flat Out Race Series), where it placed first in its recent stint.

This was according to Subir Lohani, managing director of Carmudi Philippines, who shared the news during a media discussion for its White Paper listing held at Vikings in SM Jazz, Makati City, early this month.

The driven, young leader further reiterated: “Developing economies in Latin America, Middle East, Africa and Asia emerged as the most solid market base and registered the fastest regional growth since 2011, surpassing the more mature markets, such as the US, the UK, Japan and Western Europe.”

Lohani added, “The potential is enormous as e-commerce sales are expected to

grow by 20.1 percent in 2015, reaching up to $1.5 trillion.”

Lohani also explained that the majority of car dealers around the world are adapting to the digital space in selling vehicles.

In the Philippines Carmudi highlighted that 66.7 percent of car dealers in the country are using the Internet in advertising their listings, with 46 percent of the participants specifically using online classifieds.

According to a study conducted online in 20 countries, which included in-depth interviews with industry influencers across the world, the Philippines ranked seventh in Internet penetration in 2013,

CARMUDI Philippines managing director Subir Lohani garnering a 37-percent score.

Meanwhile, based on Carmudi’s Car Buyer Survey, the largest influencer on purchasing decisions in the country is the Internet, in general, with 28 percent, followed by manufacturer site, Carmudi and auto expos at 25 percent each. Other influencers are dealer sites with 18.7 percent and social media with 15.6 percent.

In terms of advertising online, Facebook dominates among other socialmedia platforms for car dealers, with 53 percent advertising their vehicles on the site. Dealer sites and Instagram are also preferred options for advertising car listings, with over 13 percent and 6 percent, respectively.

Moreover, in a 2013 McKinsey report

on Automotive Retail Innovation, the study pointed out that auto dealers are no longer the primary source of information, especially for millennial consumers between 18 and 34.

Lohani explained that up to 90 percent of consumers in this group use a mix of OEM and dealer sites, forums, blogs and social media to gather information and compare prices and offers before making their final decision.

“Taking to the Internet to research and purchase cars shows no signs of slowing down,” he said.

With this, Lohani aims to capture a majority of the Filipino car buying public next year. As of the moment, Carmudi already has the nod of 25 percent of the car buying population in the country and plans to further up the ante.

Lohani stressed, “Carmudi will continue to make it more convenient for car buyers and sellers to tap their platform.”

On a global scale, the Carmudi report noted that e-commerce sales are expected to skyrocket by 20.1 percent in 2015, reaching up to $41.5 trillion.

So far, Carmudi is on the right track as they’re strongly committed to further make online car purchasing, more than anything else, a valuable experience for Filipinos.

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T’S pure adrenaline dash when RUSH, or Recreation, Unlimited Sports and Hobbies, Fair rise at the Filinvest Tent in Alabang, Muntinlupa City, on June 20 and 21.

The first of its kind in the South, RUSH will showcase under one roof various various car models, car accessories, boats, sporting goods, extreme sports gear, Segways, hobbies, and many more.

“This is for the people in the South who are generally very active. On weekends, they’re more likely to be out on a jog or biking. Some even go out of Manila to areas like Tagaytay, Laguna, or Batangas to pursue some of their hobbies or to go on small adventures,” said Emily de Leon, senior manager for exhibits and conventions at Filinvest Alabang.

Car enthusiasts will not only be revved up by the latest car models from Nissan, Citimotors, Volkswagen, Hyundai, Isuzu and Foton, but also by the adrenalinepumping activities, among them the Philippine Remote Control Drifters Competition (Hall 2); Gold’s Gym Zumba and Pop Hits Aerobics demos; car drifting demo

by Hyundai Lateral Drift Series (parking area); car audio competition by the European Mobile Media Association; Go Kart and ATV demos by the Ozalan Recreational Shop; and a a Segway demo at the Tent’s outdoor landscaped area.

“We want exhibit goers to not just look at the exhibitors’ products but also get a first hand experience themselves of trying out the different activities. The special events are all designed to engage exhibit goers into the RUSH experience,” de Leon added.

One of the highlights of the event is the four displays by The Boat Shop, a hydro boat, tour boat, bow rider and a racing boat. Founded in 1957 as CES Craft Philippines by boat enthusiast Cirilo Salilican, the Boat Shop is known for its durable boat and yacht designs and the technology used to make every single boat produce an exact water displacement. The company has been providing boats for companies, hotels and individuals both here and abroad. It is also known in the international boat racing world for some of its models winning different international powerboat races.

“We rarely participate in boat shows, but RUSH is something we’re very interested in because it’s all about passion. It’s a way for us to share our love of boats and even educate exhibit goers because we will be displaying model crafts. It may even encourage people to develop an interest in the sport,” Salilican stated.

Sports retailing giant, Olympic Village, will have a sale of sports gears, while avid golfers may visit Pacsports and Great Depot booths.

MOTORING

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DEVELOPING NATIONS STILL LAG FAR BEHIND DEVELOPED ECONOMIES EDUCATIONWISE

WEST PHILIPPINE SEADISPUTE Supreme Court Associate Justice Antonio T. Carpio is the guest speaker during the general membership meeting of the Chamber of Thrift Banks. Carpio warns that the nine-dash line of China in the West Philippine Sea would adversely impact the country’s economy. For one, Carpio says, the Philippines could lose 80 percent of its exclusive economic zone, including a portion of the Reed Bank and Malampaya natural-gas field, where Luzon sources 40 percent of its electricity requirement. Carpio adds that it would also affect fishermen and traders in the region. STEPHANIE TUMAMPOS

EVELOPING nations may be growing faster than wealthier nations, and overtaking them on the pace of mobile-phone and luxury-car sales. But there’s at least one area where they lag by a wide margin that will persist for years to come: education.

Globally, the number of children attending primary school has grown to 700 million from 2.3 million over the last 200 years, accounting for almost 90 percent of school-age children.

But it will take another 100 years for children in developing countries to reach the levels of education in developed countries unless

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PESO EXCHANGE RATES n US 45.1380

drastic measures are taken, according to a study by the Brookings Institution.

While there has been global convergence in primaryschool enrollments, there is still a wide gulf when it comes to the average number of years in school and achievement, it said. Adults in the developed world had, on average, completed 12 years of schooling in 2010, while those in the developing world had about sixand-a-half years.

Today’s poorest countries will not reach the level of wealthy nations until 2100, so their people will have to wait 85 years before attaining 12 years of school on average, S “D ,” A

European bloc ready to give PHL goods duty-free access

HE European Free Trade Association (Efta) is willing to give duty-free treatment to all imports coming from the Philippines under the proposed free-trade agreement (FTA) being negotiated by Manila and the fourcountry European bloc.

However, Efta also wants the same concession from the Philippines, something that the country is not prepared to give due to its impact on customs revenues, a ranking trade official said on Thursday at the sidelines of the Tariff Commission (TC) hearing on the

proposed FTA. The source said this makes the negotiations with the four-country bloc— composed of the wealthy nations of Liechtenstein, Norway, Iceland and Switzerland—critical, as quick conclusion of the FTA talks would result in enormous benefits for Philippine exporters.

The trade official, who sought anonymity, said Efta is willing to eliminate tariffs for goods sourced from the Philippines, given the complementation of their two-way trade. “This is a classic case of

ABON: “We have to show them that we are a good investment destination, and there is room to grow our exports in their markets through the free-trade agreement.”

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n JAPAN 0.3656 n UK 71.412800 n HK 5.8223 n CHINA 7.2691 n SINGAPORE 33.7859 n AUSTRALIA 34.6389 n EU 51.1639 n SAUDI ARABIA 12.0368 Source: BSP (18 June 2015)

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News

BusinessMirror

Friday, June 19, 2015

news@businessmirror.com.ph

Special Cabinet meeting reviews P167.9-B recovery efforts

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By Butch Fernandez

resident Aquino convened on Thursday a “special” Cabinet meeting at the Palace to get updates on the P167.9-billion recovery and rehabilitation, including housing and reconstruction, efforts in Eastern Visayan areas devastated by Supertyphoon Yolanda (international code name Haiyan) in November 2013.

Palace reporters were earlier alerted through text messages that the Cabinet meeting was set at 10 a.m. on Thursday, “to review firstsemester performance with emphasis on accelerating implementation of all priority development and reform programs.”

But Cabinet Secretary Rene D. Almendras later clarified that the meeting was “a special, not a regular, Cabinet meeting” to explain why not all Cabinet officials were required to attend.

According to the Cabinet Secretary’s Office, aside from Vice President Jejomar C. Binay, whose functions include overseeing shelter agencies, other Cabinet members

who were not required to attend were Lualhati Antonino of the Mindanao Development Authority; Joel Rocamora of the National Anti-Poverty Commission; Manuel Mamba of the Presidential Legislative Liaison Office; National Security Adviser Cesar Garcia; Yasmin Busran-Lao of the National Commission on Muslim Filipinos; Presidential Spokesman Edwin Lacierda and Ronald Llamas of the Office of the Presidential Adviser on Political Affairs.

Communications Secretar y Herminio B. Coloma said in a separate statement that National Housing Authority chief Chito M. Cruz was asked to present updates on reconstruction and

other housing programs.

Coloma recalled that President Aquino earlier approved the P167.9billion Comprehensive Rehabilitation and Recovery Plan to fast-track completion of the government’s commitment to rebuild devastated areas hit by Yolanda in Eastern Visayas. “ The recovery plan focuses on long-term and sustainable efforts to reduce vulnerabilities and strengthen the capabilities of communities to cope with future hazard events,” Coloma added, noting that the P167.9 billion was to be used to restore infrastructure, settlements and basic community facilities, as well as livelihood and resilience of vulnerable communities.

European bloc ready to give PHL goods duty-free access. . . complementary economics—different production, endowment and tech-nological level—between Efta and the Philippines; so there’s little competition in each other’s markets,” the source added.

The country, however, does not have the capacity to give Efta a similar arrangement, the source said. Moreover, the source clarified that the final goods agreement will depend on what the Philippines is willing to offer.

During the public hearing of the TC on the FTA negotiations with Efta, Chairman Edgardo B. Abon noted the high degree of complementation in the goods traded between Efta and the Philippines. He also urged the Philippine negotiators to speed up its conclusion.

“There seems to be no fear in negotiating this FTA and, hopefully, we can fast-track it,” said Abon during the hearing, which focused on trade in goods.

In terms of sensitivities, documents from the Department of Trade and Industry show that on nonagricultural products, the mostfavored nation rate on almost 100 percent of the Philippines’s imports from the European bloc are at rates not exceeding 15 percent—which indicates imported goods from Efta are not considered to be threats to domestic industries.

For ag r ic u lt u ra l products, 84.52 percent of Philippine imports from Efta, likewise, do not exceed 15-percent tariff, again implying the local market is re-

ceptive to the imported goods.

In its own analysis, the TC said most of the goods that the Philippines exports to Switzerland, Liechtenstein,Norway and Iceland are already at zero tariff, but an FTA will solidify the preferential treatment. “The important effect of the FTA is that we’re binding them at that level. Once they give us zero, they commit that in the FTA, they cannot raise the tariff anymore, regardless of industrial or national policies,” Abon said.

The Philippines’s “offensive and defensive interests” in goods traded—essentially interests of the Philippines in accessing the overseas market, and those that the country wants protected with the entry of Efta products in the local market—

were not seen to be problematic.

Based on the commission’s presentation, the offensive interests— or the in-demand imports from the Philippines—include electronic integrated circuits, frozen fish fillet, artificial teeth and preserved pineapples. The top exports of Efta to the Philippines include aeroplane and helicopter parts, wristwatches, antiHIV medicine and medicaments.

These products, however, are not seen to compete with local industries, as most of the goods are not locally produced, Abon assured.

The Philippines’s potential exports—based on Efta’s importation from other countries and which the Philippines locally produces— include crude palm oil, frozen fish fillets and motorcycles, to name a few.

Continued from A1

The Efta-Philippines FTA is seen to improve the bilateral trade of both nations, as data from the DTI show tempered levels of trade at the moment. The Philippines imported $400 million worth of goods from the Efta in 2013, and exported $300 million to the four-nation bloc in the same year. Both figures represent less than 1 percent of the Philippines’s imports and exports for that year.

Investments have also been on the decline. The Efta’s investment level in the Philippines plunged from P13.81 billion in 2010 to P 37.8 million in 2013.

“We have to show them that we are a good investment destination and there is room to grow our exports in their markets through the FTA,” Abon said. Catherine N. Pillas

Spending. . .

Continued from A1

That deficit was meant to inject as much public funds into the system via the pursuit of a number of infrastructure programs that also ensure continued economic expansion over the medium and long horizon. Without the infrastructure programs in place, continued growth over the medium and long horizon is not assured.

Total revenues collected in April amounted to P209.1 billion, or 7 percent lower than the revenues collected in the same month last year.

The revenue collection from January to April amounted to P679.6 billion, or a growth of 9 percent from the total revenues for the same four-month period last year.

The Bureau of Internal Revenue collected P160.8 billion in April, bringing its total collection from January to April to P467.9 billion, or a growth of 11 percent compared to the collections for the same period last year.

The Bureau of Customs’s (BOC) collection for April amounted only to P28.1 billion, or a P2.6- billion decrease from its collection in April 2014. However, total collection by the BOC for the first four months is at P120.4 billion, or a 3-percent growth from its collection in the same period last year.

The Bureau of the Treasury contributed P11.6 billion in revenues in April, and a total of P49.5 billion in revenues from January to April.

Other revenue-generating agencies of the government contributed P8.6 billion in April, bringing their total contribution to P41.9 billion for the first four months.

On the expenditures side, the total government expenditures for the first four months amounted to P660.6 billion, or an increase of 5 percent from the total disbursements made by the government in the same period last year.

The Department of Finance said that it expects faster government spending in the remaining months of this year, in response to the underspending that the government made for the first quarter of this year.

David Cagahastian

news@businessmirror.com.ph

The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Friday, June 19, 2015 A3

Reopening of pipeline in West Tower leak seen after SC ruling

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By Joel R. San Juan

HE White Oil Pipeline (WOPL) being operated by the Lopez-owned First Philippine Industrial Corp.

(FPIC), which leaked in 2010, may soon get Supreme Court (SC) approval for its reopening.

That is, if tests would show the pipeline is already safe for commercial purpose.

In a resolution issued on June 16, the Court en banc adopted the 2012 report and recommendations issued by the Court of Appeals (CA). It was at the CA where the petition for the writ of kalikasan was filed by West Tower Condominium operators, unit owners and nearby residents in Barangay Bangkal, Makati City, who were forced to vacate their residences due to health and safety concerns purportedly after the WOPL leaked.

The Court enumerated several tests to be undertaken by the FPIC with the supervision of the Department of Energy (DOE) before it can be reopened.

“After the FPIC has undertaken the activities prescribed, the DOE shall determine if the activities and the results of the test run warrant the reopening of the WOPL,” the SC ruled. “In the event that the DOE is satisfied that the WOPL is safe for continued commercial operations, it shall issue an order allowing FPIC to resume the operations of the pipeline.”

The Court also directed the FPIC to undertake and continue “remediation, rehabilitation and restoration” of the affected Barangay Bangkal environment until it is restored to its condition prior to the leakage.

The Court also ordered the FPIC to conduct the following: Perform cleaning pig run and witness the launching and receiving of the intelligent and cleaning pigs.

Demonstrate and observe the various pressure and leakage tests, including “blocked-in pressure test” or the pressure test conducted while all the WOPL’s openings are blocked off or closed off; and “in-operation test” of the hourly monitoring of pressure rating after the pipeline is filled with dyed water and pressurized at a specified rate.

Continue, inspect and oversee the current gas monitoring system, or the monitoring of gas flow from the boreholes and monitoring wells of the WOPL. Check the mass or volume balance computation during the test run The High Tribunal also ordered the DOE to ensure that FPIC complies with measures once the WOPL is re-opened to prevent similar incident in the future.

These include the continued implementation of the company’s Pipeline Integrity Management System (Pims) as reviewed by the DOE. These steps include: The conduct of daily patrols on the entire stretch of the WOPL every two hours; Continued close monitoring of all the boreholes and monitoring wells of the WOPL, pipeline; Regular periodic testing and maintenance based on its PIMS; and The auditing of the pipeline’s mass input versus mass output.

The SC also ordered the FPIC to submit to the DOE a report on its compliance with its directives and any other conditions to be imposed by the DOE. The FPIC must submit the report within 10 days of each succeeding month.

It was the DOE that asked the CA in 2013 to allow the reopening of the 117-kilometer Batangas to Manila WOPL after its leak test conducted in December indicated no more leaks in the pipeline.

The DOE recommended to allow the FPIC to start its operation anew pending the resolution of the petition for a writ of kalikasan with a motion for the issuance of a Permanent Environment Protection Order filed by West Tower residents.

The government agency said the 43-year-old pipeline is still the “safest and most efficient” mode of transporting petroleum

Malacañang still looking for my replacement–Petilla

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UTGOING Energy Secretary Carlos Jericho L. Petilla said he would remain to lead the Department of Energy (DOE) until the end of June.

That is because Malacañang has yet to choose his replacement.

Petilla said he asked anew President Aquino on Monday about his stint in the agency after having submitted his resignation letter in April.

“It is my hope that they will decide on June 30. No date was cited as to when they can name my replacement. I am still waiting for it,” Petilla said on Thursday over the phone.

When asked of his plans if the Palace could still not appoint his replacement by the end of the month, Petilla said: “Let’s just wait for June 30.” Petilla, the only cabinet secretary who has yet to be confirmed, was reappointed until end of this month so as not to disrupt operation in the agency until a new energy secretary takes over.

In his resignation letter, Petilla cited “personal and family reasons,” as to why he wanted to quit his job. He, however, did not deny that he is considering running for higher office in 2016.

He had told the President as early as last year that he wants to pursue his personal plans and that his desire to resign from his post was delayed because he had to deal with so many issues in the power sector. “I could not then because there were so many issues to deal with. There was the Meralco [Manila Electric Co.] rate hike, power restoration after Yolanda and the power situation for the summer of 2015,” he recalled.

In December of 2013, Petilla resigned after he failed to make good on his promise to energize the areas in the Visayas that were badly hit by a tropical storm. President Aquino did not accept his resignation then. Lenie Lectura

products despite the leakage. The DOE said the pipeline “poses lower risks to life and limb.”

It added that the pipeline has a higher level of reliability than transporting the fuel products through lorry trucks as it is not affected by weather, traffic and truck ban in Metro Manila and provides for complete and timely.

Meanwhile, the Court begged off from ruling on the finding of the CA that the individual directors and officers of FPIC and First Gen Corp. are not liable in their individual capacities for the leakage.

The SC noted it is clear in the Rules of Procedure for Environmental cases that in a petition for a writ of kalikasan, the Court cannot grant the award of dam-

ages to individual petitioners.

“As duly noted by the CA, the civil case and criminal complaint filed by petitioners against respondents are the proper proceedings to ventilate and determine the individual, liability of respondents, if any, on their exercise of corporate powers and the management of FPIC relative to the dire environmen-

tal impact of the dumping of petroleum products stemming from the leak in the WOPL,” the SC said.

In a statement, the FPIC welcomed the Court’s ruling and said it is ready to abide by its conditions for the reopening of the WOPL, including the continued conduct of remediation measures in Barangay Bangkal.

Economy

A4 Friday, June 19, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

Retailers told to follow SRP sans price-hike advisories

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he chairman of the House Committee on Trade and Industry and the Department of Trade and Industry (DTI) on Thursday directed supermarkets, grocery stores, wet markets and general merchandise stores to consistently comply with the specified Suggested Retail Prices (SRPs).

Nacionalista Party Rep. Mark A. Villar of Las Piñas City, chairman of the House panel, and DTI-Consumer Protection Group (CPG) Undersecretary lawyer Victorio Mario A. Dimagiba said stores and markets in the country should implement the SRPs for products classified under basic necessities and prime

commodities of the Republic Act (RA) 7581, or the Price Act. Villar made the statement after they visited several supermarkets in Baclaran to check the prices of products.

“We’re happy to report that supermarkets are conforming to the current SRPs. In fact, many

of their products are being sold at prices lower than the set SRPs, if not equivalent,” Villar said.

SRPs are issued by manufacturers to retailers to ensure market share and fair competition. Production cost, distribution cost and profit margins of retailers and distributors are factored in.

“But this should not lead us to our comfort zone. It is the government’s duty to ensure that consumers are protected as manifested in the DTI’s Bantay Presyo program and that consumer rights is always advanced in the legislature,” he added.

Dimagiba also commented on speculations involving a possible increase in the prices of basic and prime goods due to the spikes in fuel cost.

“We have not received requests from the industries for price adjustments, thus, retailers are expected to always observe the existing SRPs,” Dimagiba said. Jovee Marie N. dela Cruz

Power situation in Luzon normal despite Malampaya’s supply cut

By Lenie Lectura

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UZON was spared from power outage on Thursday despite technical glitches suffered by the Malampaya gas facility, which accounts for 40 percent of Luzon grid’s requirements.

“So far, Luzon is normal today,” said Mylene C. Capongcol, director of the Department of Energy (DOE), in a text message.

Based on National Grid Corp. of the Philippines’s power-situation outlook as of 1 p.m. on Thursday, Luzon’s power reserve stood at 1,183 megawatts (MW), way over the ideal buffer of at least 647 MW. When power reserves dwindle and fall below 647 MW, a yellow

alert is issued by the NGCP. On Monday and Wednesday, Luzon was placed on yellow alert because of gas-flow restriction from the Malampaya facility.

The Malampaya facility supplies natural gas to Kepco Philippines’s 1,200-MW Ilijan combined cycle plant and to the 1,000-MW Santa Rita and 500-MW San Lorenzo natural-gas plants of First Gas, a subsidiary of the Lopezes’ First Gen Corp.

The DOE official said gas supply from the Malampaya platform was still constricted as of Thursday.

“Malampaya gas supply is still restricted as of now. We are awaiting feedback from SPEX [Shell Philippines Exploration B.V.],” Capongcol added.

These gas plants, in turn, supplies about 45 percent of Manila Electric Co.’s power requirement.

SPEX, meanwhile, is the upstream company of Shell in the Philippines in charge of operating the Malampaya Deep Water Gas-to-Power Project.

It refused to comment, as always, when asked on the Malampaya gasrestriction incidents.

Capongcol said one unit of Ilijan was still down due to the gas restriction. For the Santa Rita and San Lorenzo plants, “there are units running on gas and the rest on liquid fuel.”

Wednesday’s gas restriction limited Santa Rita and San Lorenzo’s combined natural-gas allocation to about 430 MW.

NAPOLCOM ADVISORY COUNCIL TAKES OATH

Members of the National Police Commission (Napolcom) National Advisory Council for Transformation (NACT) take their oath before lawyer Eduardo U. Escueta (third from left), vice chairman and executive officer of Napolcom. The NACT was tasked primarily to help improve the public image and performance of the Philippine National Police (PNP). The Napolcom administers and controls the PNP. Also in the photo are Napolcom Commissioners Luisito T. Palmera and Constancia de Guzman, PhD; Police Senior Supt. Noel A. Baraceros, director of Napolcom’s Center for Police Strategy Management; Michael T. Toledo, a lawyer and head of MVP Group Media Bureau and senior vice president for Public and Regulatory Affairs at Philex Mining Corp.; Dr. Cecilio K. Pedro of Lamoiyan Corp. and founder of Hapee toothpaste; Carmen Flor, governor of the Soroptimist International of the Philippines Region; and Jesus Estanislao, PhD, formerly director general of the National Economic and Development Authority and now head of the Institute for Solidarity in Asia. Other members of the Advisory Council (not in the photo) are Rep. Ma. Leonor Gerona-Robredo of Camarines Sur, Customs Commissioner Alberto D. Lina, Integrated Bar of the Philippines President Vicente M. Joyas, Dr. Ricardo de Leon of the Philippine Public Safety College, Interior Undersecretary Austere A. Panadero, Rep. Jeffrey Ferrer of the Fourth District of Negros Occidental and Anticrime Crusader Teresita Ang See.

Panasonic Philippines unveiled new components of its Wireless Video Intercom System on Thursday, which are meant for home and business use as the company focuses on the B2B (Business-to-Business) market. Photo shows (from left) Ryogi (Rusher) Kaneko, general manager of the Communication Products Solution Team of Panasonic System Solutions Asia Pacific (Singapore), demonstrating a lobby station; May Gicain, marketing manager of the Systems Solutions Group of Panasonic Philippines, holding a video intercom unit; and Tetsumi Inoue, director of System Network and Communication Group of Panasonic Philippines, displaying a 7-inch monitor.

DOJ backs grant of discounts on electricity bills to elderly

By Joel R. San Juan

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HE Department of Justice (DOJ) has backed a proposed law that would give senior citizens discounts in their electricity bills.

However, Justice Secretary Leila M. de Lima, in her threepage legal opinion submitted to the House of Representatives, urged lawmakers to further conduct consultations with stakeholders on how to restructure the senior-citizen discount for consumed electricity without having to pass the cost of the discount to other consumers.

De Lima submitted her legal position on the proposed bill on the request of Dr. Rogelio J. Espina, chairman of the Committee on Population and Family Relations of the House of Representatives.

Included in the proposed laws is House Bill 3169, introduced by Rep. Jose L. Atienza seeking to further amend Republic Act (RA) 9994, or the Expanded Senior Citizens Act of 2010.

“Anent the grant of a monthly 5-percent discount to the first 100 kilowatt-hours of electricity, thus, consumed, we are of the view that the said measure is inclusive of a wider socioeconomic echelon of senior citizens. This department, therefore, fully supports the rewording of Section 4 [C] of R A 9994,” de Lima said in the opinion.

De Lima also noted the position of the Manila Electric Co. (Meralco) that the cap under RA 9994 should stay, and if the proposed measure would be approved, the discount will be shifted to another segment of the consumers.

“If this is the case, this department is of the view that the Energy Regulatory Commission shall also be invited to solicit their views on how the measure could be fully enjoyed by the senior citizens without shifting the cost to subsidizing customers,” the DOJ chief said.

The Justice secretary also shared the view of Party-list Rodel Batocabe of AKO Bicol to involve in the consultation process representatives from the electric cooperatives of the Philippines.

“A quick technical study on the proposed discount is also suggested to be conducted, especially on the impact of a P50 discount per month that a senior citizen consumer could avail [himself/or herself] of vis-à-vis the economic of scale generated by the electric companies from the majority of its subsidizing consumer,” de Lima added.

Clark authority bill now awaiting House plenary approval

By Ashley Manabat Correspondent

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NGELES CITY—House Bill (HB) 321, or the bill that will make Clark an authority, is now awaiting approval in the plenary after hurdling the committee level at the House of Representatives, Rep. Roseller “Yeng” Guiao of the First District of Pampanga said.

Guiao also said on Monday that similar bills for Davao, Laoag and Aklan are also up for approval in the plenary.

Ruperto Cruz, chairman of the Kapampangan advocacy group Pinoy Gumising Ka

Movement (PGKM), said “imperial Manila is losing its hold on the provinces,” which now seek independence from its impositions.

“Balamu fiefdom de ing pairal da. Balamu okay mung okay karela, but now papakit tamu at least malyari salansang karetang pipilit da [It’s like they’re imposing their own fiefdom.

They think it’s always okay for them, but now we are showing that at least we can go against what they want],” Cruz said.

“The PGKM is the watchdog over developments in Clark,” he assured.

Earlier, Guiao said Clark has already seen three presidents since President Aquino came to power in 2010—Felipe Remollo,

Eduardo Oban and Arthur Tugade. This, he said, creates instability.

This underscores the need to convert Clark into an authority by an act of Congress, he said.

Guiao said the chief executives of Clark should have a fixed term of office to be defined by law to immunize them from politicking, allowing them to set their own pace in the development of the free port.

The Clark Development Corp., the administrator of the Clark Freeport Zone, is a government-owned and -controlled corporation created in April 1993 by Executive Order 80 issued by then President Fidel V. Ramos

as the implementing arm of the Bases Conversion Development Authority (BCDA) to manage the Clark Special Economic Zone.

Guiao said Clark should also have its own charter and corporate identity so it can negotiate with governments and big businesses.

The problem right now, he said, is Clark needs to pass through the BCDA and the Office of the President just to plan its own course.

Guiao said Party-list Rep. Ashley Acedillo of Magdalo headed a team of lawyers that formulated HB 321, which, he admitted, is an improved version of the Cagayan Economic Zone Authority and Aurora Pacific Economic Zone and Freeport laws.

IT can secure homes, offices–Panasonic

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ith security becoming more vital in today’s modern homes and businesses, as evidenced by a recent highprofile home burglary, Panasonic Philippines moved to launched a campaign that aims to improve awareness on the company’s business-to-business (B2B) focus in the local market.

The brand, known locally as a quality producer of TV, washing machines and refrigerators, is hoping that the consumer’s affinity to their products will redound to benefits for its new focus.

“Globally, almost 25 percent of Panasonic Group revenue comes from B2B,” shared Shaun Sato, adviser for the Systems Network Department of Panasonic Philippines. According to market research, the Philippine Security Market will reach $35 million this year.

With this renewed focus for B2B, the Japanese adviser noted that the company is “expecting $2 million in revenue this year and is targeting to achieve 6-percent market share in the Philippines.”

When asked if reaching this target will make Panasonic the top player in the local security market, May Gicain, marketing manager for Panasonic’s Systems Solutions Group, said: “Of course, Panasonic would like to be No. 1, but we would like to first address the industry’s systems requirements in terms of security and communications by providing quality solutions from the Panasonic portfolio of products. If we are able to do this, then from there I think the ranking will just follow.”

To support this strong B2B endeavor, Panasonic Philippines invited a select group of developers, contractors, architects and engineers—top-level industry influencers—for the AEC (Architecture, Engineering and Construction) Solution Day at Hotel InterContinental on Thursday.

Rusher Kaneko, product head for Video Intercom of Panasonic System Solution Asia Pacific, presented the Wireless Video Intercom Solution. Guests tried the solution in the mock-up home booth, where they took calls from any point in the house via intercom to check on guests. This solution for the home or business automatically takes and stores photos of visitors all day long, and at night via infra-red light.

Sato said their mission is to deliver “surveillance beyond surveillance” to their customers. “Of course, our system solution can alert the homeowner once cameras capture any suspect images are registered. In addition to that, [we offer] not only surveillance solution but also totally different new value such as loss prevention or marketing analysis are our strengths that Panasonic can offer.”

In particular, Panasonic’s durable and quality imaging cameras will benefit business customers that need a high level of security, “such as banks, casinos, or resorts,” according to Sato. Shops, meanwhile, will benefit from their unique analysis technologies such as Heat Mapping or People Counting to help improve store management and drive sales up.

To secure big facilities such as stadiums and parking areas and for city surveillance operations, Sato noted that Panasonic’s new full high-definition (HD) 4K cameras can cover nine times wider areas as compared to conventional HD cameras, while delivering even more crisp images.

Hikida Gaku, manager of Security Systems Business Division of Panasonic Systems Solutions Asia Pacific, presented HD cameras that will secure facilities with free management software.

Panasonic Systems Solutions Group Manager Genaro Castro Jr. conducted the third presentation on Office and Communication Solutions. This will help businesses map out how their printers, scanners, projectors and even their telephone systems can be integrated and secured with solutions from Panasonic.

Economy

BusinessMirror Friday, June 19, 2015 A5

Lawmaker files bill granting job seekers 20% discount on fees for govt documents

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By Jovee Marie N. dela Cruz

O help indigent Filipino job applicants, a measure granting them a 20-percent discount on fees in processing government documents for employment purposes has been filed at the House of Representatives.

House Bill 5717, or the “Indigents Pre-Employment Privilege Act of 2015,” authored by Lakas Rep. Rolando G. Andaya Jr. of Camarines Sur, provides that an indigent job applicant, who are seeking gainful employment and have “no visible means of income” or whose income is insufficient for the subsistence of their families, will be given a 20-percent discount in processing clearances from the National Bureau of Investigation, Philippine National Police and the barangay.

The bill also indicated that the job applicant will be charged 20-percent less in processing medical certificate from the Department of Health (DOH), Certificates of Marriage and Birth Certificate from the National Statistics Office (NSO) or the Local Civil Registry and Certificate of Birth of a dependent of the indigent applicant.

The measure calls on the Department of Social Welfare and Development to identify and certify indigent job applicants based on the criteria set under the National Household Targeting System for Poverty Reduction.

The bill also creates the Interagency Coordinating and Monitoring Committee to ensure that the discounts are being implemented. It will be composed of the DSWD secretary as the chairman; National Anti-Poverty Commission chairman as vice chairman; secretaries of the DOH, the Department of Interior and Local Government and the Department of Justice and NSO administrator as members.

It also penalizes any person, government entity, agency or hospital who refuses or fails to provide the discount with imprisonment of not

ANDAYA: “Reducing the processing fee of these documents encourages them to look for jobs in order to become productive members of society.”

less than six months but not more than one year or a fine of not less than P10,000 but not more than P50,000, or both.

Any job applicant who misinterprets his or her status or falsifies his or her document just to avail himself and/or herself of the discount, the bill stated, will be punished with imprisonment of not less than six months but not more than one year or a fine of not less than P5,000 but not more than P10,000 or both, the measure said.

In filing the bill, Andaya said that it is the “state’s obligation to empower its citizens in fighting poverty.”

“The sad truth is that we lack employment opportunities. And even when prospects for employment are present, most Filipinos cannot afford to pay for fees necessary to procure documentary requirements for their job application,” Andaya said.

The least the government can do, he said, is to lessen the financial burden of indigent Filipino job applicants by granting them discounts in acquiring preemployment documents.

“Reducing the processing fee of these documents encourages them to look for jobs in order to become productive members of society,” Andaya said.

Price of construction materials in NCR nearly flat in May—PSA

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he average retail price of construction materials sold in the National Capital Region (NCR) grew by only 0.2 percent yearon-year in May, according to data released by the Philippine Statistics Authority (PSA).

The PSA said that a higher annual increase in painting materials and related compounds and masonry materials boosted its Construction Materials Retail Price Index (CMRPI) in the NCR. “[But] annual declines were noted in the following indices: electrical materials index, -2.3 percent; plumbing materials index, -0.1 percent; tinsmithry materials index, -0.2 percent; and miscellaneous construction materials index, -5.9 percent,” the PSA said.

Also, the annual uptick in carpentry materials index further slowed down to 2.3 percent.

On a monthly basis, the CMRPI in the NCR inched up 0.1 percent in May. “Faster upward adjustments were correspondingly noticed in the indices of electrical materials and painting materials and related compounds at 0.6 percent and 0.5 percent,” the PSA said.

Data showed that the increment in the index of masonry materials eased to 0.1 percent.

“Moreover, declines were posted in plumbing and tinsmithry materials

indices at -0.1 percent and -1.2 percent,” the PSA said.

The General Retail Price Index (GRPI), the PSA said, is a statistical measure of the changes in the prices at which retailers dispose of their goods to consumers or end-users relative to a base year.

The GRPI is an indicator used to monitor the economic situation of the retail trade sector. It is also used as a deflator of the national accounts, especially on the retail-trade sector and serve as a basis for forecasting business in the retail-trade.

In April the PSA said the CMRPI in the NCR dropped by 0.1 percent on an annual basis. Annual declines were noted in the indices of electrical materials and miscellaneous construction materials at -2.6 percent and -5.1 percent.

Also, the annual increase in carpentr y materials index slowed down to 2.8 percent; masonr y materials index, 0.3 percent; and tinsmithr y materials index, 1.5 percent.

On the other hand, a higher annual uptick was noted in painting materials and related compounds index at 2.4 percent. No movement was seen in plumbing materials index as it posted a zero growth during the month.

On a monthly basis, the CMRPI in NCR posted a negative rate of -0.1 percent in April.

A6 Friday, June 19, 2015

Opinion BusinessMirror

editorial

Securing our water supply

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scarcity of freshwater is fast becoming the No. 1 disaster topic, as was “overpopulation” in the 1970s and “global warming” a decade ago.

California in the United States is in the midst of a major drought, as it has been several times in the last 100 years. The Brazilian city of São Paulo is also experiencing a water shortage, as are many places in the Middle East.

While it is true that some 1 billion people lack access to clean and healthy freshwater, is this a result of a shortage of the resource or mismanagement of existing supplies?

Independent and nonbiased studies show that water demand has tripled in the last 50 years. Major critical rivers have experienced significantly reduced water flows. Lakes around the planet are vanishing at an alarming rate; the Aral Sea, for example, is less than a quarter its original size.

The reality is that the global water system is closed, meaning that water is never “lost” but goes from one place to another. The problem is getting water from where it is to where we need it, and using it in the most efficient way possible as with electricity and all other commodities.

Agriculture and industry together account for over 90 percent of the world’s total freshwater use. But the bulk is for growing food, as industrial-water use accounts for approximately 22 percent of global consumption.

While there are many offered solutions to preserve our water resources— conservation and recycling, for example—the solutions often come down to throwing in the towel and admitting defeat in the face of a problem.

Rice uses an enormous amount of water to produce a crop. This gain is so widely eaten that 20 percent of the total human intake of calories comes from eating rice. In the face of water scarcity, one local expert suggests that Filipinos switch from eating rice to bananas and camote, as these crops require much less water. But, that is unrealistic.

Freshwater has always been a human problem since we first settled in communities and gave up the hunter-gather lifestyle. Even the earliest cities built extensive water-catchment and-storage systems to make sure there would always be an ample supply. On small inland-nations throughout the world, such as in the Caribbean Sea and the South Pacific, nearly every home has a personal cistern to catch and store rainwater.

But, in places like the Philippines, that is not part of the thinking. Groundwater is used for irrigation at a pace that is disastrous, and places that use the most groundwater for irrigation (Pakistan, India and California) are suffering the greatest water shortages.

This is not an issue for drama and gloom and doom theatrics. But it is a daily life situation not unlike when our ancestors had to hunt for food.

The Philippine government must start moving on securing an adequate water supply and stop draining groundwater resources, and that means building new dams as soon as possible.

06192015

Five big ideas James Jimenez

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spox

ITH less than four months to go before the registration period finally ends, I find that even some of the most basic ideas continue to elude the grasp of some. Let’s do something about that with these five big ideas.

n First big idea: You have to register in order to vote. While this seems like a no-brainer, there are still some people who seem truly perplexed at the notion. n Second big idea: You only have to be registered in order to vote. You do not need your voter’s identification card in order to vote. While it is true that you will probably be asked to present some form of valid identification on election day, that does not have to be the voter’s ID issued by the Commission on Elections (Comelec).

Driver’s licences, for instance, are honored just as well.

This isn’t to say, however, that a voter’s ID is useless. Some local government units use it as a kind of requirement for enjoying benefits; some banks require it as a valid form of identification; and some people traveling abroad are required to present it.

n Third big idea: You should register as a new voter only once in your lifetime.

There was a time when, if you moved from one place to another, it seemed like it would be much easier to just register as a new voter there and forget about being registered in the place where you came from.

But that was a long time ago. Now, when you’ve transferred residences, all you have to do is tell your local Comelec office: a) that you’re a transferee; b) where you used to reside; and c) that you want to transfer your registration.

If, instead, you try to register as a new voter, the local Comelec will likely find out that you’re not and advise you to just apply for a transfer. In the unlikely event that you do get registered as a new voter, it will eventually be discovered that you have been previously registered, and criminal charges might even be

filed against you, which could result in a fine or imprisonment, or both.

The only exception we can make to this rule applies to the youth who signed up to vote in Sangguniang Kabataan—or SK—elections. SK-registered youths exit the SK list of voters once they turn 18 for the simple reason that the SK system is only for those aged 15 to 17. These former SK voters then need to register as adults if they intend to vote in the national and local elections. n Fourth big idea: After you’ve completed the process at the Comelec—from filling out the forms to having your biometrics taken—you are still not a registered voter. Your application still has to be submitted to the Election Registration Board (ERB) for hearing, in case someone has challenged your eligibility to vote. If a challenge has been made— in other words, someone has formally claimed that you should not be registered as a voter—then you will get the chance to defend yourself before the ERB. If no challenge has been made, your application gets approved, and only then will you actually be a registered voter. n Fifth big idea: If you’ve missed two consecutive regular elections, your registration will be deactivated. Not surprisingly, you will need to have it reactivated if you want to vote in the next elections.

In my experience, this is the most

common reason people don’t find their names on the lists on election day. They forget that they’ve missed two elections and that they’ve been deactivated. This is the reason the Comelec recommends that—before elections—people check up on their registration records, just to be absolutely sure they haven’t been deactivated.

It’s not difficult. All you have to do is visit the local Comelec where you’re registered and tell the Comelec personnel there that you want to validate. They’ll check the records and tell you if your registration is active. If it is, then, voila!, you’re done. If not, then they’ll advise you to file an application for reactivation. All told, you’re likely to spend less than half-an-hour at the Comelec office—a small tradeoff to ensure that you get to vote on election day.

At the risk of being too repetitive for comfort, this is exactly the same process people without biometrics currently need to undergo.

And they only have until October 31, 2015, to do so. After that day, the law requires the Comelec to deactivate everyone without biometrics, without regard to the twoconsecutive-missed-elections rule.

Now, go share this.

James Arthur B. Jimenez is director of the Commission on Elections’s education and information department.

opinion@businessmirror.com.ph

Opinion

Wealth over labor

The vanishing wooden houses

BusinessMirror

Tito Genova Valiente

Leonardo A. Lanzona Jr.

EAGLE WATCH

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HE fire that gutted the Kentex footwear factory in Valenzuela City on May 13 resulted in the death of 72 workers. All belonging to the lower-income classes, these workers were not even trained in fire safety by their employer, thus, denying them any chance of survival. In addition, the company allegedly paid salaries well below minimum wage, as well as withholding pensions, health benefits and other forms of social security.

According to reports, the workers may have been contracted by an illegal and unregistered hiring subcontractor. The company, thus, claims that the subcontractor should be held responsible for the violations.

However, the Department of Labor and Employment (DOLE) asserts that this cannot be used as a valid excuse. For all intents and purposes, both the factory owners and the subcontractor seemed to have connived in breaking the law.

In a recent statement, President Aquino blamed the local government unit of Valenzuela City for granting Kentex a business permit and certificate of occupancy, despite its noncompliance to safety standards, such as securing a fire-security inspection certificate. However, as the militant groups would point out, the DOLE should be equally held liable for the incident for failing to monitor and, thus, allowing the establishment to operate, even as it violated a number of labor laws. For whatever these views are worth, both sides seem to agree that a stricter and tighter enforcement of both local and national laws would be sufficient to prevent the recurrence of this incident.

But is legal enforcement a sufficient solution? What these arguments fail to consider is that a stringent enforcement of these laws would open another can of worms.

I am referring to the issue of unemployment. In fact, in Valenzuela City alone, 13,000 establishments, not 23 as earlier reported, have apparently violated fire-safety regulations. More firms may, likewise, be delinquent as only 83,000 out of the 300,000 establishments in the National Capital Region have been checked for fire safety standards.

Because many firms are likely breaking these fire safety rules, strict laws and their enforcement are expected to dissolve these firms, leading to a major dip in employment, as well as a greater burden to the poor.

What is more important here is that fact that workers are willing to offer their services, even if the work conditions are deplorable and firms are violating the laws. One can blame this behavior to poverty but this is highly correlated with wealth inequality. Under all conditions, persistently high inequality, as in the case of the Philippines, limits social mobility and leads to powerlessness. In the absence of better options, poor workers choose the most readily available job and opt to take the bitter pill.

In the case of the country and, particularly, this footwear company, inequality stands out because of two reasons.

First, while economic growth has been achieved recently, the rate is not high enough for all sectors to benefit. With limited growth, only a few sectors are likely to prosper.

For instance, the productivity agricultural sector has not changed significantly over the years and continues to remain low. Hence, given various forms of investment incentives given to industry and the gains from sector’s growth, the owners of the more capitalized industries are able to secure their wealth.

Second, the high-income social units can collaborate in exploiting the poor by creating intricate systems—in the form of oligarchies or dynasties—designed to violate and circumvent the laws. This can be seen both in the local and national units of the government. For

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annotations HE wooden houses in big cities are vanishing. There are still some left; they are pressed between new big buildings. Some are covered by walls of larger structures.

This predicament where the interest of the relatively wealthy remains intact reminds me of the hypothesis found in one of the most popular books in recent years, Capital in the TwentyFirst Century by Thomas Piketty. Its central premise is that, contrary to the influential theory developed by Simon Kuznets in the 1950s and 1960s, mature capitalist economies do not inevitably evolve toward greater economic equality. instance, the alleged Napoles gang is an obvious case for the latter, while the purported Binay “family” can be the example for the former.

Whatever the means, capital is to be weighed heavier than labor. In Valenzuela City conniving firms apparently kept wages down and reduced whatever expenditures that can raise labor standards. In this way, their capital is invested only in ventures that will yield a higher return, but always at the expense of labor and the poor.

In this situation, the rule of law will not be sufficient. After being caught, violators easily strike back as long as there are workers willing to take their bait. Moreover, the law can be enforced in a way that only a select number of firms can meet the legal requirements. This leads to the creation of “legal” oligopolies that can reduce available jobs and effectively control wages.

Instead of imposing laws and regulations, instituting higher taxes on the wealthy and subsidizing an expanded social-protection system for the poor would be the first best policy. The idea is to offer better options to the workers without restricting productivity and restricting employment.

This predicament where the interest of the relatively wealthy remains intact reminds me of the hypothesis found in one of the most popular books in recent years, Capital in the Twenty-First Century

by Thomas Piketty. Its central premise is that, contrary to the influential theory developed by Simon Kuznets in the 1950s and 1960s, mature capitalist economies do not inevitably evolve toward greater economic equality. Instead, as Piketty contends, the data reveal a deeper historical tendency for the rate of return on capital to outstrip the overall rate of economic growth, leading to greater concentrations of wealth at the very top.

This drift toward “patrimonial capitalism” that Piketty’s charts seemed to show is not in any way due to economic determinism.

Rather, this comes from the discrete actions performed by those in power. “It all depends on what the political system decides,” he says. Of course, the political system depends on the laws—and taxes— that society makes and enforces.

It is time that we review our legal structures, and start looking systematically at the real causes of poverty and inequality.

Leonardo Lanzona Jr. is director of the Ateneo Center for Economic Research and Development and a senior fellow of Eagle Watch, the school’s macroeconomic research and forecasting unit.

The problem with old wooden houses is that no one wants them preserved. They are the first to go in cities that are built to change every day. The heritage societies are not interested in these houses that carry no treasure or history. These wooden houses are homes to ordinary people, the wage earners, and not the decision-makers of the nation. The heritage societies, in general, are keen about the homes of heroes and statesmen, of individuals who are acknowledged to have written the nation’s history. These big houses are display of wealth and

power and tell only of a half of our history. The other half can be found in the neighborhood of individuals who read the history that is written by the elite for the elite.

Some years back, I received a grant from Rikkyo University in Tokyo, Japan. The year was 1987.

A friend from my exchange-student years, a Swiss-Italian, Renato Antonio Pirotta, sent me his documentation of very old farmhouses, or minka, in Yamanashi Prefecture.

The photos and the initial findings spurred my interest to do my own study of the said structures. I

Friday, June 19, 2015

marveled at the Japanese attitude to farmhouses. Again, in our country, no one talks of nipa hut or Filipino farmhouses. They are not seen as telling story. We go for the monuments and monumentalism.

Renato is an architect by profession and he was, thus, interested more in the material aspect of the structures and how they were built to respond to the environment. Renato was focusing also on the technologies of the buildings. I was interested in the social environment.

The one-year fieldwork brought me to the social meaning of houses.

The farmhouses differed from each other not mainly because of the different climate and location but also because societies were imposing regulations on the farmhouses.

Each farmhouse, for example, was allowed only a certain number of rafters. This rule belongs to what are known as sumptuary laws or laws that regulate consumption.

Feudal societies are the sources of these laws, which aim to control not only consumption but also production of commodities.

Were there rules also that applied to those wooden houses of yore?

Two streets in Quezon City—Kamuning and Kamias—used to have many fine and charming wooden houses. Each day, as I pass, I sense these houses as having vanished.

Each day, buildings tower over old neigborhood.

These changes are significant because those wooden houses stood for communities that are not there anymore. If those houses are homes, once destroyed, the people living in them move to other places. In place of communities, we have sites of business and trading.

These wooden houses, which were present in the 1950s and 1960s, always had balconies. Their stairways were built on the side and were always open. Low and usually one-story, the wooden houses had windows that were also open. These houses seem to address the street, with their occupants freely greeting the passersby.

People could always look up to the

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window and hail whoever was there.

Visitors would go up the balcony and stay for a conversation, well within the sight of people.

The houses formed a community. While it was open to people, the community or village of houses, there also was a clear demarcation of who lived there and who was just in transit.

Something drastic is happening along Kamuning and Kamias: separate communities are being built within the extant community.

These new buildings contain people who are there to work, but not to engage the community. The owners and residents of the old wooden houses are now cut from the rest of the neighborhood and have to contend with buildings that are fitted with windows, because they are part of the design of buildings.

But no one opens these windows to look out into the street and talk with people passing by. They could open the windows to let out old air, but not to talk to anyone. Meanwhile, the houses with windows that open to the street or alley have to shut those openings. Security is one reason for shuttered window; lack of people to talk with by the window is the other reason. It is a disturbing, sad reason.

There are still some parts of Kamuning and Kamias that look and feel very provincial. These two places are rare in the area for maintaining names that are of plants rather than politicos.

Kamuning is known as orange jasmine, although it is closer to orange than to jasmine. It bears blossoms that are pungent and sweet. Kamias is also known as cucumber tree, noted for its abundant fruits that grown on its stems and branches.

Sad is the day that these wooden houses are completely vanquished by a new sense of improvement. Sadder still is the day when Kamuning and Kamias are changed into names of dead mayors, congressmen or senators. That would be a sour day in our social history.

E-mail: titovaliente@yahoo.com

Japan joins America’s presidential campaign

Last week the BOJ governor sent the yen soaring by saying the currency is “unlikely to weaken further in real effective terms.” By Monday he was claiming he wasn’t signaling a change in policy. But there’s little doubt he was. I’ve interviewed Kuroda enough times to know how cautious he is when speaking on even anodyne issues, never mind exchange rates. Kuroda’s intention seems to have been to maintain the yen’s 30-percent drop in value, while reassuring the world he won’t weaken the currency any further.

Why would he do that, even as Japan’s export engine sputters anew?

The answer has less to do with economic theory than international politics—specifically, the upcoming US presidential election. The Japanese government would like nothing more than for China’s predatory

trade practices to play a role in the campaign, especially amid America’s ongoing debate over the Trans-Pacific Partnership trade pact.

Of course, China almost certainly won’t take central stage in a campaign likely to be dominated by domestic issues. But Japan wouldn’t mind if candidates tapped into the long US tradition of slamming China for stealing jobs by privileging its own exporters. And Japanese officials appreciate that Hillary Clinton, the likely Democratic nominee, placed a special emphasis on America’s global economic competition with China during her stint running the State Department.

The problem is, as long as America’s ally Japan is indulging in a currency-weakening quantitative-easing program, it’s hard to maintain a vigorous attack against China, whose

central bank has recently been avoiding further currency depreciation.

“The US continues to support Japan’s monetary expansion and associated weakening of the yen while still suggesting that China, which is actually resisting currency depreciation, is somehow engaged in unsavory currency practices,” Eswar Prasad of Cornell University says.

Politicians, he adds, “are eager to retain one of their traditional punching bags, China. However, there is no longer an economic basis for the case that China is keeping the yuan undervalued and thereby hurting US exports.”

That’s not to suggest China’s trade practices don’t deserve criticism.

Beijing has not been playing by the World Trade Organization’s (WTO) rules since joining the club in 2001.

The Chinese government has continued to subsidize politically connected enterprises, disregard intellectual property rights, sponsor international computer hacking, instigate questionable crackdowns on foreign companies and maintain poor environmental and labor standards.

US politicians would be entirely justified to criticize Beijing for flouting WTO conventions. But China is increasingly immune to suggestions that it’s instigating a currency war.

Chinese officials have had good reasons for recently putting a stop to

MAIL

This has reference to the BusinessMirror story on Thursday titled “Bid to increase SSS pension a bad idea,” written by David Cagahastian.

We wish to clarify two points in the news item: 1. The story stated that “In 2014 the SSS made around P44 billion in contributions from members, or around P5 billion less than the benefit payouts extended to members every year.” This is not correct. In

the slide presentation on the 20132014 financial highlights of the SSS, we showed that contribution collections amounted to P102.01 billion in 2013 and P120.65 billion in 2014, while benefit payments were at P91.4 billion in 2013 and P102.6 billion in 2014.

2. The current life of the pension fund is 27 years, or until 2042, and not 15 years, as cited in the story. SSS President Emilio S. de Quiros showed

William Pesek

BLOOMBERG VIEW

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MERICAN politics rarely factors into the policies set by the Bank of Japan (BOJ). But Haruhiko Kuroda’s recent comments about the yen suggest Washington is very much on Tokyo’s mind these days.

Please e-mail your letters to the editor to opinion@businessmirror.com.ph.

Letters chosen for publication in this section are edited for brevity and clarity.

their depreciation policies. In April Kaisa Group became the first Chinese developer to miss payments on its US currency debt; another $12 billion of payments are due this year from companies under increased stress. A weaker yuan would potentially push borrowers over the edge, triggering a devastating wave of defaults.

Meanwhile, Japan’s monetary policies aren’t helping the country’s cause in Washington. Until now, Obama has tolerated Kuroda’s devaluation gambit hoping it would revive the world’s third-biggest economy.

But Japan’s policies are now undermining the ability of US politicians to focus attention on Beijing’s predations. (Beijing’s $1.26 trillion of US Treasuries also tempers American officials’ enthusiasm to castigate China. As Clinton once asked while serving as Obama’s secretary of state: “How do you deal toughly with your banker?”)

In an April speech to the US Congress, Prime Minister Shinzo Abe urged lawmakers to approve the TPP trade deal. Abe’s pitch centered on China’s destabilizing regional ambitions, and the need to contain them. But it’s no accident that he didn’t bring up currency manipulation. To do otherwise—at least until Kuroda’s recent policy shift—would have been to invite attacks against his own country’s policies.

a slide presentation on this, titled “What is the Life of the SSS Fund?”

We hope that you will publish this letter to correct the information in the said story.

Thank you for your continued support to the SSS. Marissu G. Bugante Vice President Public Affairs and Special Events Division Social Security System

2nd Front Page BusinessMirror

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DTI seized ₧177M worth of substandard products in first half

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he Department of Trade and Industry’s (DTI) Consumer Protection Group has seized P177 million worth of substandard ceramic tiles and sanitary wares in the first half of the year.

According to enforcement-activity data from the DTI’s Fair Trade Enforcement Bureau (DTI-FTEB), the two commodities were seized from three establishments in the first half of 2015. The establishments were HMR Trading Haus, CW Home Depot and HOMSS Trading Corp.

From January to June, the FTEB

monitored a total of 2,751 unique business establishments. About 74 of them were issued notice of violation, and 59 were slapped with formal charges.

Among the violations committed by the establishments are the Product Standards law, the Consumer Act of the Philippines and the Accreditation law.

Trade Undersecretary for Consumer Protection Victorio Mario A. Dimagiba said the confiscated goods will be destroyed pursuant to the Consumer Act. Catherine N. Pillas

Developing nations. . . the study showed. The gap is also visible in the skills they are learning: In math, less than two-thirds of developing-country students are meeting basic learning levels. Results for reading are more promising, but a gap remains there, too, the study showed.

Some of this has to do with the lower spending on education.

But it’s important that kids in developing countries get up to speed quickly.

Between 2010 and 2030, 60 percent of the increase in global labor force growth will come from India, other South Asian nations and Africa. At the same time, there will be an additional 360 million

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adults over the age of 55, who are not in the labor force—many of them college-educated, living in high-income countries, and expected to live 20 to 30 years longer than past generations, the study showed. Filling the skills gap left by these retirees is a huge opportunity, as well as a challenge, for the youth in less developed countries.

“Ultimately, it is not important if the gap is 65 years for some measures, or 126 years for others,” the report’s authors, Rebecca Winthrop and Eileen McGivney, said. “What is important is that it is real, it is big and it is inexcusable.”

Bloomberg News

www.businessmirror.com.ph

‘Low and slow’ Fed action to calm PHL markets–BSP

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By Bianca Cuaresma

ndications that the US Federal Reserve (the Fed) will adopt a gradual approach to interest-rate adjustments in the months ahead should help ease tension in the domestic markets, calm investor nerves and help prevent volatility, the Bangko Sentral ng Pilipinas (BSP) said.

In a statement following the conclusion of the Federal Open Market Committee (FOMC) meeting, central bank governor Amando M. Tetangco Jr. told reporters the postmeeting statement of the US Fed should generate positive sentiment toward emerging markets, including the Philippines.

The Fed, at its fourth monetary-policy meeting for the year, opted for a gradual rate rise as the world’s largest economy transits to higher, and more sustainable, economic expansion.

“The committee currently anticipates that, even after employment

TETANGCO: “The Fed’s assessment of the US economy’s resiliency to rate hikes should be positive for trading partners, including the Philippines.”

and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the committee views as nor-

mal in the longer run,” the Fed said in a statement after the meeting.

Bank of the Philippine Islands Research Officer Nicholas Antonio Mapa told the BusinessMirror that the Fed was likely to delay its first interest-rate adjustment to either September or December this year.

This reading of the economic tea leaves, according to Tetangco, should help soothe frazzled investor nerves and prevent wild swings in market sentiment that are the hallmarks of volatility.

“The Fed’s assessment of the US economy’s resiliency to rate hikes should be positive for trading partners, including the Philippines,” Tetangco said.

During the day, the peso strengthened by 23 centavos, relative to the US dollar, or back to the 44 level to 44.95 per dollar at the close of trading, as foreign investors returned to the local equity bond market that helped the peso appreciate further, Mapa said.

The peso began a slide toward the 45-per-dollar territory just this month.

The Philippine Stock Exchange (PSE) index also traded in the greens on Thursday, rising by 0.94

percent, or 70.55 points, from Wednesday’s trade.

“The Fed’s consistency in its message should provide some market calm. But it should also encourage the market to be watchful of developments and avoid extreme actions,” Tetangco said.

“We will take the Fed’s views into consideration during our policy meeting next week,” he added.

The BSP will meet on Thursday, June 25, to decide on whether the rate at which it borrows from or lends to banks warrants an adjustment. This is the fourth meeting of the policy-making Monetary Board. Fed Chairman Janet Yellen reiterated policymakers’ commitment to watch economic data.

Yellen emphasized the importance of the pace and trajectory of rate hikes, saying that the timing of the initial hike is less important.

“Market participants should not focus on the timing of the first rate hike. What’s more important is the entire trajectory of interest rates,” Yellen said during a news conference, emphasizing that after the first rate hike, Fed policy will still be accommodative.

With a report from Steffi Sanchez