BusinessMirror June 22, 2015

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

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A broader look at today’s business Saturday 18,June 201422, Vol.2015 10 No. 40 Monday, Vol. 10 No. 256

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MERALCO HOPING NO UNSCHEDULED PLANT SHUTDOWNS WILL OCCUR

Luzon on the brink of blackouts anew T

By Lenie Lectura

he Manila Electric Co. (Meralco) is crossing its fingers that there will be no unscheduled shutdown of power plants where it sources electricity, as this could result in blackouts given the prevailing thin power reserves.

Meralco said it is now preparing for the months ahead, when more power plants are scheduled for maintenance shutdown.

Based on the list provided by Me-

ralco, a number of major power plants where Meralco sources its requirements will go offline until October this year. The list is trimmed down come

November and December.

“These are the maintenance schedule of the power plants that we have contracts with. We hope that there will be no unscheduled shutdown of power plants coinciding with the list of scheduled maintenance,” Meralco Utility Economics Head Lawrence Fernandez said.

Unit 1 of the Sual power station, which is a 1,200-megawatt (MW) coal-fired power plant in Pangasinan, will be shut down from August 8 to September 6. The capacity of each of the two Sual units is 600 MW. A day after September 6, Sual 2 will also undergo maintenance shutdown until November 5.

P25.00 nationwide | 7 sections 36 pages | 7 days a week

PAL, Cebu Pacific dispute additional Australia seats

By Lorenz S. Marasigan

T

he two largest carriers in the Philippines are battling it out for the additional flight frequencies to Australia, with the Philippine Airlines (PAL) seeking to corner almost all of the new entitlements to expand its growing longhaul operations in the Land Down Under.

Documents from the local regulator

showed that the legacy carrier wants to secure an allocation of about 3,115 weekly seats from Manila to Australia.

Broken down, the request involves the allocation of 2,319 weekly seats this coming winter and another 796 weekly seats for the summer of 2016.

Cebu Pacific, meanwhile, sought for 1,722 weekly seats on top of its current allocation.

Continued on A2

Continued on A12

special report

Another administration, another failure for economic Cha-cha‘choreographers’

By Catherine N. Pillas & Jovee Marie N. dela Cruz

W

First of three parts

ith the Asean integration drawing near, the Philippines appears to have already folded its hand early in the game, after it failed to remove foreign-ownership restrictions in the Constitution at a time when dis-

mantling barriers to foreign investment is as paramount as ever.

House Speaker Feliciano Belmonte Jr. decided not to put his bill—Resolution of Both Houses (RBH) 1—to a vote before Congress went to adjournment sine die.

RBH 1 was meant to be the first step to liberalize the stringent economic provisions of the Constitution limit-

PESO exchange rates n US 45.0170

ing foreign participation in particular business sectors.

The lawmaker, who has been pushing for the measure for several Congress now, reasoned that he did not have the necessary numbers for the measure to hurdle the third and final reading, and, as such, did not push the House to vote.

The proposed resolution would Continued on A2

n japan 0.3662 n UK 71.5140 n HK 5.8070 n CHINA 7.2520 n singapore 33.7459 n australia 35.2853 n EU 51.1888 n SAUDI arabia 12.0049 Source: BSP (19 June 2015)

A2 Monday, June 22, 2015

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Another administration, another failure for economic Cha-cha ‘choreographers’ Continued from A1

insert the phrase “unless otherwise provided by law” in foreign-ownership provisions of the Constitution, including land, public utilities, natural resources, media and advertising industries.

The sections identified by Belmonte are (1) Section 2, Article XII, on exploration, development and utilization of natural resources; Section 3, Article XII on alienable lands on the public domain; Section 7, Article XII, on conveyance on private lands; Section 10, Article XII ,on reserved investments; Section 11, Article XII, on grant of franchises, certificates, or any other forms of authorization for the operation of public utility; Section 4 (2), Article XIV, on ownership of educational institutions; and Section 11 (1 and 2), Article XVI, on ownership and management of mass media and on the policy for engagement in the advertising industry.

The insertion would pave the way for the sectors to open up to foreign participation by virtue of future legislation.

The proposed bill, now dead in the water, will effectively change the country’s course in capturing future foreign direct investments (FDI), foreign and local businesses say.

The Makati Business Club and the Management Association of the Philippines, along with the European Chamber of Commerce of the Philippines and the American Chamber of Commerce, said, with foreign restrictions still in

place, the country’s standing as a laggard recipient of FDI in Asean may be cemented.

In 2014 the Philippines reached a record-breaking $6.2-billion FDI, a growth of 66 percent from the previous year, and above the target of $4.4 billion assumed by the government.

Despite the milestone, the fact remains that, historically, the Philippines has been capturing the least FDI in the region for over a decade.

Even as the Philippines steadily improves its economic profile on various fronts, notching creditrating upgrades and improving in competitiveness rankings, foreign restrictions still pose as front-liners in barring investments. FDI is not just a major source of external financing for emerging economies, such as the Philippines, but is also a driver for economic development.

With FDI comes capital formation, knowledge and technology transfer. This type of cross-border investment entails acquiring a long-term interest in a domestic enterprise, and may comprise construction or improvement of a factory, capital infusion and reinvestment of funds earned by a subsidiary.

The Asean region has received more FDI, as a percentage of national output, than any other developing region, says the World Bank in its East Asia and Pacific Economic Update, released in 2014. However, even as the region takes the lion’s share of FDI, the Philippines’s cut has been

relatively low compared to other Asean economies. The Philippines’s failure to capture a larger chunk of the strong inflow of FDI into the region has been widely observed by global think tanks and economicdevelopment authorities.

The World Bank estimates that between 1979 and 2012, the country has been attracting less than $500 million annually in FDI. After 2009, the bank said, the Philippines experienced some semblance of stability in the economy, but is still hampered by the many foreign-ownership restrictions in areas such as services and land ownership.

While each Asean member-state imposes its own restrictions on FDI, the Philippines has often been tagged as among the most restrictive in the region.

In the Organisation for Economic Co-operation and Development’s (OECD) FDI Regulatory Restrictiveness Index for 2013 (or the FDI Index), the Philippines ranked as the most restrictive country

among 60 economies.

The index measured restrictive regulations in terms of foreign-equity ownership, in screening and approval of FDI, restrictions on foreign personnel and other restrictions, such as land ownership.

The OECD’s Southeast Asia Investment Policy Perspectives 2014 notes that the restrictiveness score is inversely proportional to the FDI stock a country receives.

The Philippines and Myanmar have among the most stringent regulations and received the least FDI stock as a percentage of gross domestic product.

The Asian Institute of Management’s (AIM) Policy Center compared other Asean economies’ FDI flows in sectors that are restricted in the Philippines.

The FDI in the restricted sectors, the AIM said, accounted for a sizable part of other Asean nations’ total FDI. In Malaysia these sectors accounted for 28.5 percent of its total FDI, while in Indonesia, these

comprise 11.4 percent. The research authority said mining and quarrying accounted for the bulk of the inflows of restricted sectors in other Asean economies.

FDI in electricity, gas and water, transport, storage and communication in Vietnam, from 2009 to 2012, was tenfold the amount received by the Philippines during the same period, according to a policy paper of the AIM. Most of these sectors are partially restricted from foreign ownership in the Philippines.

Other Asean nations, meanwhile, have gradually been taking steps to liberalize their protected sectors and have reaped the benefits of opening up their economy to foreign participation.

Thailand increased the allowable foreign equity from 25 percent to 100 percent, and the share of the financial sector’s FDI rose from 3 percent to 16 percent. The country also passed the Foreign Business Act of 1999, which increased FDI to the industrial sector, as it opened up

previously restricted areas such as cement manufacturing, textiles, liquor, garment, footwear and retail, to name a few.

Vietnam also undertook reforms in its foreign-ownership restrictions from 1990 to 2005, leading to a growth in FDI according to the World Bank. Its Foreign Investment Law, passed in the late-1980s, allowed 100-percent foreign-equity participation, but only issued licenses for wholly owned foreign projects that have substantial benefits. According to the bank, this was gradually relaxed over the years that, in the 2000s, over 60 percent of projects were wholly owned by foreigners.

Cambodia, one of the most open economies to foreign activity next to Singapore, amended its law on foreign investment in 2003. FDI was encouraged through incentives, such as renewal of land leases up to 99 percent; full exemption on duties of imported inputs; no price controls; and no discrimination between foreign and local investors.

In the case of the Philippines, the limitations on investments are on two lists under the Foreign Investment Negative List: List A and List B. List A contains restrictions enshrined in the Constitution and specific laws, while B are those restricted for public health, national security and defense reasons.

List A consists of both professions limited only to Filipinos and sectors where foreign participation ranges from 25 percent to 40 percent. To be continued

PAL, Cebu Pacific dispute additional Australia seats Continued from A1

Currently, local aviation companies are fully utilizing the old entitlements, with PAL operating f lights to Sydney, Melbourne, Brisbane and Darwin; and Cebu Pacific to Sydney.

In April Manila and Canberra signed a new memorandum of understanding on air services, expanding the seat entitlements between the Philippines and Asia from the current 6,000 seats per week to 9,300 seats per week.

The two countries also agreed to allow third-country code sharing, which will enable designated airlines of the Philippines or Australia to operate services jointly with an airline of a third country to, from or via the other country to improve market distribution.

Total tourist traffic between the two countries was about 327,000 in 2014, a growth of 10 percent over 2013. Tourists from Australia was about 224,000 in 2014, which is about 5 percent bigger than 2014. There are about 400,000 Filipinos living in Australia.

Vacancy. . .

Continued from A12

Even more compelling is the prospect for revenue to double by 2020, amounting to around $48 billion.

According to Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo, BPO remains resilient, as it is both procyclical and anticyclical, since it has the likelihood of expanding regardless of economic situation.

He said, when times are good, offshore firms need to outsource noncore services to stay in the competition. But when their economies are not in a good shape, he noted that they have to outsource so as to cut on costs.

While the demand is strong, there’s still enough supply in the office market, as per the report.

Adding to inventory are the new buildings in Makati City (including the Alphaland Tower) and Bonifacio Global City (BGC) in Taguig, Salas said. In Makati the weighted average monthly lease rates of Premium Grade A, as well as B and C buildings, are pegged at P1,275 per square meter (sq m) and P650 per sq m, respectively. The average rent in BGC is comparable to the Makati’s Grade A at P850 per sq m.

In both Ortigas and Alabang CBDs, rent is estimated at P625 per sq m per month. In Quezon City monthly lease fee remains unchanged at P625 per sq m.

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De Lima assigns new guards for high-profile NBP inmates

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USTICE Secretary Leila M. de Lima announced on Friday she has assigned a set of new guards at the National Bureau of Investigation (NBI), where 19 high-profile inmates are currently detained following the government’s crackdown against illegal activities at the national penitentiary.

De Lima told reporters that the new guards will be place under the direct supervision of the NBI Deputy Director for Intelligence Services Jose Doloiras.

De Lima said she designated a new team to guard the inmates after a recent series of surprise inspections yielded mobile phones and things they are prohibited access to as convicts.

“The entire NBI complement team assigned at the NBI detention facility have been relieved of their duties vis-á-vis said facilility, pending investigation,” she confirmed in a text message.

De Lima added: “DD Doloiras is also on top of the investigation into those recent discoveries of cell phones in both the regular detention facility and New Bilibid Prison [NBP] extension facility at NBI.” The justice secretary said administrative sanctions may be imposed against the members of the previous team if evidence would show they connived with the in-

mate in smuggling the prohibited items.

Handheld devices were seized from the prison cells of some of the so-called Bilibid 19 and other high-profile detainees, like former Pagadian City Mayor Samuel Co and pyramiding scam suspect Jacob Rasuman. The items were seized during inspections of jail cell in mid-June.

The cell phones were discovered in various concealments: inside a secret compartment of a water cooler, a false bottom of a cooking utensil, underneath washing machines and between soles of shoes and slippers. De Lima earlier said a witness claimed the inmates—mostly convicted drug traffickers—paid P1.5 million to three to four agents tasked to regularly search and check the facility allegedly for every use of a cell phone.

She said the witness has already been placed under government protection.

Among the 19 high-profile inmates temporarily detained at the NBI facility were Peter Co, Amin Imam Boratong, Michael Ong, Willy Sy, Noel Martinez, Eugene Chua, Chua Sam Li, Vincent Sy, George Sy, Joel Capones, Herbert Colangco, Clarence Dongail, Tom Chua, Rommel Capones, Jojo Baligad, Willy Chua, Jacky King Sy, Herman Agojo and Benjamin Marcelo. Joel R. San Juan

Editor: Dionisio L. Pelayo • Monday, June 22, 2015 A3

Terrorism to persist in Mindanao even after peace deal–US report

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ERRORISM will continue in Mindanao despite the signing of a peace agreement by the Philippine government with the Moro Islamic Liberation Front (MILF), a report from the United States State Department revealed.

The “Country Reports on Terrorism 2014” released on Saturday by the Bureau of Counterterrorism of the US State Department said terrorism will persist in the island group due to the presence of other armed groups, thus belying the government’s usual line that the deal with the Moro group will bring permanent peace in the South.

The US noted in its report that the agreement with the MILF gave birth to “peace spoilers” such as the Bangsamoro Islamic Freedom Fighters (BIFF), rogue MILF members and other groups which have been carrying terrorist attacks and other criminal acts in Mindanao.

“The Philippine government submitted to Congress [a] draft legislation known as the

Bangsamoro basic law in 2014 to establish a new autonomous government entity in the Southern Philippines, as stipulated by the CAB [Comprehensive Agreement on the Bangsamoro],” the US said in its counterterrorism report.

“However, with several splinter groups —including rogue elements of the MILF, the BIFF and others—claiming they will not be bound by the law and are unwilling to forsake violence, a number of small-scale terrorist attacks occurred,” the report added.

Although the report noted a decline in the number of terrorist attacks in Mindanao during the previous year as a result of the signing of the CAB, groups opposed to the agreement have emerged.

“As a result, some of the groups who tra-

ditionally were committed to Moro secessionism now either back the peace deal or have splintered into less coherent groups like the BIFF,” the report said.

It added that after the signing of the CAB in March last year, “violent clashes with the BIFF continued in central Mindanao, indicating that violent spoilers to a lasting peace remain.”

The report noted not only the presence of the BIFF, but even the existence of terrorist groups such as the Abu Sayyaf Group and the Jema’ah Islamiyah and even the New People’s Army in Mindanao that have added to the terrorism cases in the South.

“Although Philippine counterterrorism efforts sustained pressure on terrorist organizations, members of these groups were suspected to have carried out attacks against the government, public and private facilities, primarily in the central and western areas of Mindanao,” it said.

“Others were linked to extortion operations in other parts of the country. In addition, terrorist and rebel groups in the southern Philippines retained the capability and intent to conduct bomb-making training, small-scale shootings and ambushes,” it added. Rene Acosta

Economy

A4 Monday, June 22, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

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PHL should increase exports to China–Philexport chief

F

ilipino businesses should consider shipping out more products to China to meet increasing consumption spurred by manufacturing growth amid its rise as an economic powerhouse.

Philippine Exporters Confederation Inc. (Philexport) President Sergio Ortiz-Luis Jr. made a call for increased exports to China, as the two countries aim to ramp up trade to $60 billion by 2016.

“The signs are very clear: as the most populous country in the world, with over 1.3 billion people and counting, China will need outside help to sustain the requirements of its people,” Ortiz-Luis said during a recent roundtable on China trade and investments in the Philippines.

The event was organized by the Asia Pacific Pathways to Progress Foundation Inc. and Philexport.

Ortiz-Luis said China’s imports include agri-based products, metals and electronics.

He particularly cited the increasing Chinese demand for processed Philippine food products and fresh fruits, like bananas, as well as minerals and metals, like iron ore, copper and nickel.

“Such consumption trend is also

being pushed by the manufacturing boom that helped fuel China’s growth, even as its expanding domestic industries and infrastructure boosted demand for metals, farm produce and electronics,” he added.

The Philippines now enjoys a favorable balance of trade with China, with the mainland as the country’s second-largest source of imports and third-largest export destination.

“But it is not surprising to see Chinese exports to the Philippines growing at a rate of 50 percent, as its manufacturing sector gained steam through the years,” Ortiz-Luis further said.

The Philexport chief said it is “imperative” for the Philippines to produce more marketable and competitive products that the Chinese need, noting that it can benefit most from China in the field of technology transfer.

“The Chinese are not as jealous as the Western capitalists over

patents and copyrights. They are more willing to share their cheaper technology on food processing, manufacturing, farm mechanization and biotechnology. These can be best acquired though development assistance or joint-venture projects,” he said.

Meanwhile, Ortiz-Luis urged Chinese business leaders to invest in the Philippines, especially in electronics, real estate and agribusiness, and food sectors, which are domestically strong in the country.

“There appears to be no considerable investments made by Chinese investors in the Philippines compared to other Asean countries since 2005.

Most of China's foreign direct investments are in Singapore, Brunei Darussalam, Myanmar, Cambodia and Lao PDR,” he said.

In 2012 Philexport said the Philippine investments in China were recorded at $2.5 billion, while Chinese investments in the country reached $1 billion.

ELECTRONIC SIGNS Electronic signs are on display on Avenida Avenue in Manila. These signs are increasingly being used by shops and restaurants in the Philippines. ROY DOMINGO

LGUs should ask for bigger IRA share–Sen. Marcos

By Recto Mercene

MARCOS: “Let us carefully plan on what else we can do so that in the coming years we can ensure that local governments will be given the priority and importance they truly deserve.” Marcos, chairman of the Senate Committee on Local Government, is supporting initiatives in the Senate to increase the IRA share of LGUs.

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ocal government units (LGUs) should not abandon efforts to seek a bigger share in the national taxes even if the current administration has flatly rejected such proposals, Sen. Ferdinand R. Marcos Jr. said.

Speaking at the 62nd national assembly of the League of Vice Governors of the Philippines in Tuguegarao City on Friday night, Marcos said LGUs should work together to press for their “reasonable share” in the Internal Revenue Allotment (IRA).

“Let us carefully plan on what else we can do so that in the coming years we can ensure that local governments will be given the priority and importance they truly deserve,” Marcos said.

Marcos, chairman of the Senate Committee on Local Government, is supporting initiatives in the Senate to increase the IRA share of LGUs. One proposal is to increase the current 4060 percent sharing scheme in favor of national government to a 50-50 split.

Another proposal is to increase the tax base by including in the computation of IRA not only on all national taxes collected by the Bureau of Internal Revenue, but also the excise taxes and value-added taxes collected by the Bureau of Customs, estimated at P192 billion annually.

However, Marcos noted that Malacañang is cold to such kinds of proposals and apparently distrusts LGUs. He cited reports that in the general assembly of the League of Municipalities of the Philippines (LMP) in April, the President rejected LMP’s request to certify as urgent a bill seeking to expand the tax base and increase the shares of local governments from 40 percent to 50 percent of the national taxes.

Worse, Marcos noted that the government failed

to release the 2013 IRA share of LGUs, amounting to over P300 billion.

Despite this, Marcos said, Malacañang admitted underspending around P303 billion of the 2014 budget, which many economists tag as the culprit for the recent economic slowdown.

According to the National Economic and Development Authority, the economy grew by only 5.2 percent during the first quarter of the year, the slowest growth posted since 2012.

If these funds had been released to LGUs, these could have gone into projects that could have, in turn, contributed to economic growth.

Marcos, who served as Ilocos Norte governor for three terms, thinks the attitude of Malacañang toward LGUs is due to the fact that very few national leaders have had experience as a local government official.

Earlier, President Benigno Aquino III did not provide a categorical answer to the request of LGUs to increase their IRA share.

Mr. Aquino, however, noted that the LGUs' share in IRA rose to P389.86 billion this year from P265.8 billion in 2010.

The president also urged LGUs to consider the need to be prudent in fiscal management.

Korea Retailers to send big delegation to Manila APRCE

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he Korea Retailers Association (KRA) has signified its full support for the upcoming 17th Asia Pacific Retailers Convention and Exhibition (APRCE) 2015 from October 28 to 30 at the SMX Convention Center-Manila.

Philippine Retailers Association (PRA) President Lorenzo C. Formoso, COO of Duty Free Philippines, said his group’s meeting with their Korean counterparts resulted in the latter’s full support for the event.

At least five South Korean retail moguls are set to speak during the forum—Hyun-Chul Park of Lotte Corp. to discuss The Present State and Outline of Lotte World Mall Tower, Woo-Jung Choi of E-Mart Co. Ltd., to share the Online Grocery Business and Supply Chain Management in South Korea; and Dr. Seungho Ahn of Korea Distribution Association, to discuss facilitating modernization of retail distribution; Its Agenda and Methods. Sehyun (Francis) Oh of Kantar Worldpanel Korea will share about the new normal in Asia-Pacific Retail Industry, and Kim Yuntai of Korea On-Line Shopping Association, to join the panel discussion on the Retail Policy Forum focusing on e-commerce.

“The Korean Retail Association has committed to promote the APRCE extensively to their members to generate a bigger delegation and the Philippine Embassy in Seoul has also agreed to extend all assistance to the Korean delegates,” Formoso emphasized.

He added that during their meeting, the two retail groups, KRA and PRA, also talked about the trends and the overall position of the retail sector in both South

Hyun-Chul Park

woo-jUng choi

Korea and the Philippines.

Formoso said local officials have also shared some information about the Philippines—its economic growth, growing industries, the retail market and consumer behavior, among others.

Now on its 17th year, the APRCE aims to explore new approaches to the latest issues facing the region’s retailers and highlight innovative solutions that can help retailers assert their distinct expertise and to deliver greater value to consumers in Asia and the Pacific region.

The PRA, the country’s recognized organization of retailers and suppliers to the retail industry, will host the 17th APRCE, the biggest and most important retail industry event in the Asia-Pacific region, organized by the Federation of Asia Pacific Retailers Association, the regional organization of 17 recognized national retail associations in Asia Pacific.

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BusinessMirror Monday, June 22, 2015

A5

FTA with European bloc possible by 2016–DTI

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By Catherine N. Pillas

he Department of Trade and Industry (DTI) is looking to conclude negotiations with the European Free Trade Association (Efta), a bloc of four wealthy nations, for a free-trade agreement (FTA) before the present administration ends.

A trade official privy to the negotiations said there is a good chance this can be realized given the push of the present leadership.

“The administration looks eager to finish this before the elections so we can already have a solid agreement by early 2016,” said the source, who asked for anonymity.

According to documents from the DTI, the third round of negotiations for the FTA will take place in September, with the fourth and perhaps final round seen to happen in November. A factor that can further accelerate the conclusion of the talks is the fact that there seems to be few “sensitivities” expected, at least in the trade in goods between the two countries.

About 99.9 percent of the non-agricultural goods that the Philippine imports from Efta have most-favored nation (MFN) tariff impositions not exceeding 15 percent, a sign, the DTI official said, that indicates there is little impact of these imports on the domestic market.

On agricultural goods, the MFN rates also do not exceed 15 percent for the majority of the imports, or 84.5 percent of Philippines’s importation from Efta.

Trade officials have long announced that the Philippines and Efta—composed of Liechtenstein, Norway, Iceland and Switzerland—have very complementary economies, so little competition is seen in each other’s

market. This makes a quick negotiation possible.

Notably, the Efta bloc has floated the possibility of giving duty-free access of all goods coming from the Philippines early on in the negotiations—a sign that there is no fear from the side of the European bloc on the influx of Philippine-made goods since these are seen to be non-threatening.

Other areas to be covered by the Philippines-Efta FTA include trade in services and investments.

Philippine-Efta exchange of trade and investments is currently at a dismal level, a fact that the trade department wants to reverse with the conclusion of an FTA. From 2011 to 2013, Philippine imports have been growing at an annual average growth rate of 3.76 percent, with exports inching up 8.93 percent.

However, the share of Efta in Philippine exports and imports globally are both at less than 1 percent.

On the side of Efta, the figures are similar: the wealthy nation bloc has only been shipping 0.09 percent of its total exports to the Philippines (around $372 million in 2013), while it has imported $ 332 million, or 0.11 percent of its global imports, in the same period from the Philippines.

According to figures from the Tariff Commission, among the top imports of Liechtenstein and Switzerland from the Philippines are integrated circuits, fresh or chilled fillets of fish and artificial teeth.

ADRI: Trusted cloud critical in securing IT investments

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egional think tank Stratbase ADR Institute (ADRI) highlighted critical issues in adopting cloud technologies that the government must consider to effectively implement billions of anticipated investments in information and communications technology (ICT).

Dindo Manhit, president of ADRI said, “As data security becomes increasingly crucial, the government needs to retool its information infrastructure so it can deliver transparent, efficient and accessible services, but critical to the success of an IT-empowered government is to build trust and confidence, to build a trusted cloud.”

In the era of constant cyberthreats, establishing a “trusted cloud” is key if the government is to fully take advantage of the billions of anticipated investments in the field of ICT, Manhit added.

The forum on “Trusted Cloud Services” saw IT

professionals advising government officials on a range of topics, including cloud computing, data security measures and trends in government use of cloud technology.

Security is the most important aspect of the cloud, said Edwin Fallorina, director of IT Systems for US-based multimedia company E-Scribir Inc. “You need absolute confidentiality with the parties. You have to make sure that the integrity of your data is there while, at the same time, you guarantee its availability. The government, as a policymaking body, has the capacity or to build a group that can have access to cloud services,” he added.

The picture of cybersecurity in the Philippines and the region is very grim and need to be addressed, said Pierre Noel, chief security advisor of Microsoft Asia.

“The Philippines is in the red in terms

of malware infection. In China 60 percent of computers are infected with malware.

The global average in terms of Asian infection of malware is roughly 20 percent and, in the Philippines, is roughly 35 perceny,” he said.

Attendees included representatives from the Armed Forces of the Philippines, the Department of Science and Technology, the Department of Budget and Management, the Department of Trade and Industry, Pag-IBIG, the Department of Education, Social Security System, the Department of Energy and the Philippine National Police, among others.

Launched in 2014, the Stratbase ADRI is an independent strategic and international research organization, which aims to influence domestic and East Asia policy in development and security by building and sharing key research and information.

Tourism&E

Busines

A6 Monday, June 22, 2015 • Editor: Carla Mortel-Baricaua

PAST AND PRESENT COLLIDE I

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S   B J B

HE sound of horns honking, obnoxious drivers trying to beat the red light, and annoying vendors trying to sell me kitschy souvenirs; another day in the bustling city of Saigon.

COLORFUL lanterns light up the river creating an intimate and romantic atmosphere.

The city has its charms and contradictions; the old colonial buildings side-by-side with skyscrapers, shopping centers, and small businesses. If I wanted to experience city life, I would never have left home.

I was tired of the city and its frenetic pace.

The charming old town of Hoi An

I EAGERLY booked an open-bus ticket for 440,000 Vietnamese Dong or P850 from Ho Chi Minh City to Hoi An with a stop in Nha Trang. I could not go the full 20-hours on a bus directly to the city.

The days spent in Nha Trang swiftly came, and there I was in Hoi An. Tourists from all over the world flocked to see this small town in Central Vietnam. I have always liked smaller towns compared to imposing cities.

I felt right at home in Hoi An. Since the town is a famous tourist destination, many modern hotels and shops lined its streets. Thankfully, there was no McDonald’s in sight, street-food stalls and small, family-owned restaurants are ideal places to taste local cuisine such as cao lau. This regional dish is made of pork, greens and noodles.

There was something about the bustle in this small town: The frantic movement of people, the eagerness of the shop owners. It was much like Ho Chi Minh City, but different.

As I walked closer to the old town, things started to change. The midrise buildings, hotels and modern shops gave way to ancient houses, quaint and colorful cafes, and old stores selling multicolored lanterns.

Walking into the United Nations Educational, Scientific and Cultural Organization-listed old town was like walking into the past.

Hoi An’s Ancient Town exemplifies an old Southeast-Asian trading port. Many boats, big and small, line the docks. Although they no longer set sail to faraway lands, visitors can experience a short ride up and down the river, glimpsing

The Hindu-influenced temples in My Son are reminiscent of the ones in Siem.

SHOP owners display colorful lanterns outside their stores.

how life was like centuries ago.

The old town is best seen and explored on foot. Its streets and buildings are vestiges of the town’s indigenous and foreign past.

Walking along the streets of the ancient town made me feel as if time stood still. Hoi An was a former Asian trading port from the 15th to the 19th century.

The early morning bustle is the best time to see the town in its most authentic self. Locals wearing traditional dress and conical hats peddle vegetables, fruits and local treats sit on small chairs or roamed the streets.

The stores display trade mark Hoi An-made tailored clothes for both men and women. Foreigners and locals alike got their measurements taken for dresses and suits they would take back home.

When the sun sets

THE streets overflowed with roadside food stalls selling com ga, a local chicken dish, cao lau and other local cuisine. I sat on one of the small chairs and tables by the river to taste cao lau; the noodle-dish is reminiscent of the usual pho served in other Vietnamese cities. Get the best view

THE vibrant town of Hoi An begins life early as locals sell vegetables before tourists come in by the hundreds.

LOCALS roaming the streets of old town peddling food, souvenirs and other items.

of the last rays of light bathing the town with its soft orange hands by the river with tea or coffee on hand, or stand by the bridge to watch boatmen sail to and from.

The town changes from a quiet fishing port in the early light of the day to a bustling tourist haven when night arrives. All sorts of local games take place in various parts of the town. Locals and foreigners occupy the famous cafés and street side restaurants, with only small tables and chairs outside

their owner’s houses, to get their fix of delectable local cuisine.

The night lights up with the hues of multicolored lanterns displayed outside of shops. Tints of blue, orange, red and yellow glow, lighting up the streets.

Locals and visitors alike cast small, candle-lit lanterns down the river, making a wish for good fortune. The yellow, red and blue lanterns slowly drift down the river, creating an intimate light show.

Hoi An’s charm makes it a popular destination for locals getting an engagement photoshoot. There was no day during my stay in Hoi An, where a bride and groom-to-be didn’t take intimate photos with each other on the candle-lit river or in one of the ancient temples or houses in town.

Hoi An is fast-paced yet slow, and old yet modern, making it an ideal place to visit to see past and present collide.

The historical ruins of My Son

THE fascinating town of Hoi An may be difficult to leave, but there is more to discover outside of its borders.

Heading to My Son, is an adventure that would take you further back in time.

The My Son ruins are remarkable because of their ruinous state.

I find rubble and broken structures romantic; they tell their own stories or you conjure up your own myths about them until someone tells you

Entertainment

ssMirror

IN HOI AN

tourism@businessmirror.com.ph • Monday, June 22, 2015 A7

Etihad Airways Butlers’ second group completes Savoy Academy Training T

HE second group of Etihad Airways Butlers has completed the intensive Savoy Butler Academy training program in the United Kingdom. The course was conducted by the London School of Hospitality and Tourism at the University of West London, in conjunction with the legendary Savoy Hotel.

The Abu Dhabi-based team of 12 men and women, who have all worked as food and beverage managers on board Etihad Airways’s longhaul fleet, graduated recently at a ceremony held in Abu Dhabi, the capital of the United Arab Emirates (UAE).

The elite group of talented hospitality personnel are now fully qualified to perform their duties, catering to the needs of guests staying in The Residence by Etihad, the airline’s recently launched pri-

vate living space on the upper deck of the airline’s fleet of Airbus A380 aircraft. Featuring a living room, private shower room and double bedroom, the revolutionary cabin boasts the innovations and exclusive features normally associated with private jets and luxury yachts.

Linda Celestino, Etihad Airways vice president guest services said, “These highly skilled and talented professionals have successfully completed a challenging program which has provided them with all the knowledge and the tools necessary for one of the most unique roles in the airline industry. They are the ultimate ambassadors for the Etihad Airways brand, and will bring to reality the airline’s vision of providing a totally reimagined travel experience for the discerning guests flying in The Residence by

Etihad. We are very proud of them.”

The syllabus included a series of master classes given by the Savoy head Butler, Sean Davoren, covering international protocol and etiquette, VIP guest care, valet skills and organizing travel arrangements. The Butlers ensure that the needs and expectations of guests in The Residence by Etihad are met and exceeded at all times, utlilizing Etihad Airways’s full inflight connectivity service to provide a 24-hour service in the air and on the ground.

The training program, which took place in various departments of the Savoy Hotel, saw the Butler trainees complete an attachment shadowing the famous establishment’s own worldrenowned butlers, allowing them unhindered access and exposure to their training.

Anne Klinkert, 27, who joined

Etihad Airways in 2014, added, “The training really opened my eyes. An Etihad Airways Butlers’ role goes far beyond simply serving a guest.

Reading your guests is the key and being able to surprise them and exceed their expectations is such a satisfying feeling. The word “no” is not in our vocabulary, there is always a solution or an alternative. I am grateful for the opportunity Etihad has given me. Being a flying Butler is such unique role in air travel and being part of this makes me extremely proud.”

The first Etihad Airways A380 service was inaugurated from the UAE capital to London’s Heathrow Airport on December 27, 2014. On May 31 the airline deployed a new A380 on one of its two daily flights to Sydney. One of the airline’s double daily services to New York JFK will also be upgraded to the A380 on December 1.

EXPLORING TOHOKU’S EXQUISITE HANDICRAFTS L ACQUERWARE, baskets, and more, take center stage in a traveling exhibition as The Japan Foundation Manila (JFM), in partnership with Ayala Museum and with support from JT International (Philippines) Inc., commemorates the 2011 Tohoku Earthquake and Tsunami. This traveling exhibition recognizes the traditional handicrafts of the region steadfastly recovering from the calamity. Beautiful Handicrafts of Tohoku, Japan, opened on June 16 at the Ground Floor Gallery of the Ayala Museum.

On exhibition are around 70 works that best exemplify the craftsmen’s high level of skill in basket weaving, lacquerware, pottery, embroidery, and wood crafts. Some of the curated works include tsugaru lacquerware and kogin embroidery from Aomori prefecture; Mage wappa (bent woodwork) and kaba zaiku (bark craftsmanship) from Akita prefecture; E-rosoku (decorated candles) and cloth decorated using tsutsugaki dyeing technique from Fukushima prefecture.

The traveling exhibition also features the late mingei (folk craft)

movement artists who were not necessarily from the Tohoku region but whose works were significantly influenced by the traditional Tohoku handicrafts. There are wood block prints by Shiko Munakata, screens and textiles by Keisuke Serizawa, and ceramics by Shoji Hamada and Kanjiro Kawai. Serizawa and Hamada were both designated as Holder of Important Intangible Cultural Property by the Japanese government.

In July a one-day lecture and hands-on workshop on a traditional craft common to both Tohoku and

the Philippines will be held. Schedule and other details will be released soon.

Prior to Manila, the exhibition has already traveled to Hungary, China, Vietnam and Thailand.

Beautiful Handicrafts of Tohoku, Japan runs at the Ayala Museum until July 26 before it travels to South Korea. The exhibition is also part of JFM’s lineup of activities for the 2015 PhilippinesJapan Friendship Month in July.

Visit www.jfmo.org.ph and www. facebook.com/jfmanila for updates.

You may also send a message to email@jfmo.org.ph for inquiries.

MV ‘LOGOS HOPE’ IN SUBIC

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their history. These moments of imagination are what piques my interest in them.

The heavy bombings that took place during the Vietnam War severely damaged most of the temples.

Dubbed as Unesco Heritage Site since 1999, the ruins attract a sizable number of tourists despite their state.

The Hindu-influenced temples trace their origins between the 4th and 13th centuries. The Champa rulers of that time used the temples for

religious ceremonies and also served as a burial ground for heroes and royalty.

As I walked around the buffer zone listening to the guide, I can’t help but notice the similarity of the temples to the ones I’ve seen in Siem Reap and Myanmar.

Without a guide, it would be difficult to put the rubble and ruins in proper context. They would seem nothing more than a pile of bricks in the wilderness.

V Logos Hope is now open to the public in Subic Bay. With 400 crew members from across the globe, the unique vessel offers both onshore and onboard events for people of all ages, in addition to its array of quality, affordable books.

Logos Hope offers an expanded selection of over 5,000 book titles at affordable prices. They cover a range of subjects, including science, sports, hobbies, and family life. With children’s titles, academic texts, dictionaries, atlases and more, the book fair is something the whole family can enjoy.

Aside from book shopping, visitors have the opportunity to meet the international crew member and join the events onboard such as the Fun Night Café on June 21 and Board Game on June 28.

Additionally, the rest of the Visitor Experience deck is also open for the public to explore. The Welcome Area introduces the new vessel through a short movie and interactive displays while the International Café has ice cream, drinks and snacks available.

Tickets for these special events are at P50 each and both events have limited seats. Children under 13

years old and senior citizens 60 years old and above can enjoy free entrance.

Children aged 14 and below must be accompanied by an adult. Identification card might be required.

Logos Hope is open to the public

in Subic Bay until July 5. Ticket costs P20 per person. Opening hours are from 10 a.m to 9:30 p.m. from Tuesday to Saturday and 1 to 9:30 p.m. every Sunday. The ship will be closed on Monday.

For more information, please contact the Advance Preparation Team, Attn: Salvador Dorantes, by sending e-mails to salvador.dorantes@gbaships. org, or log on to www.logoshope.org/ subicbay

TheElderly

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Monday, June 22, 2015 • Editor: Efleda P. Campos

BusinessMirror

news@businessmirror.com.ph

Retired Daughters of St. Paul relish continuing their lifetime of prayer

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By Oliver Samson | Correspondent

ETIRED Daughters of Saint Paul joined their congregation sisters, other religious people, benefactors, collaborators, relatives and friends from the Philippines and Malaysia at a Mass on June 14 that highlighted the celebration of their centennial.

Some of them wheelchairbound, they lined the front and left sides of the beautiful Queen of the Apostles chapel at their central community in Pasay throughout the Mass that was presided by Cebu Archbishop Jose Palma.

Many years back, some of them helped in building the chapel, lifting construction materials, like gravels and lumbers.

Some are former residents of the congregation’s community across the country.

Today, after fruitful years of missions here and abroad, they are being taken care at the home in Pasay intended for retired sisters.

Most went to missions overseas, like Italy, Malaysia, Thailand and Papua New Guinea.

Their ascetic and solemn appearance in light blue habit, which looks beautiful to the eye that loves simplicity and depth, conceal the long years of tests, and perhaps, sorrow that they have undergone through in evangelizing communities here and abroad.

“We are happy,” Gloria V. Felix said. “And even happy in sorrow because the man we chose to follow carried the cross.”

Felix, 79, has been in the military and police ministry since the time of Marcos. But she is not yet retired.

She currently conducts formation of the Pasay police.

The Daughters of Saint Paul, otherwise known as Paulines, are usually not retired by age unless their physical condition does.

They are about 25 at the congregation’s home for the elderly at their central community in Pasay, said Evangelina Canag, former Philippine province superior.

One of them is Sis. Maria Imelda Dandoy, 78.

She was superior of the Daughters of Saint Paul’s community in Baguio when a astray bullet from a cop, who was practicing firing, hit and pierced her back about two inches deep while outside the house.

“I heard the gunshot,” Dandoy said. “I thought it was not coming to me. So, I continued sweeping, until I felt something in my back. I felt heavy and I fell.”

She rode a cab to take herself to a hospital. After her recovery, she phoned the police not to practice firing at her anymore. She did not file any charges.

The retired nuns, the likes of

RETIRED Daughters of Saint Paul eat lunch after Mass at the Queen of the Apostles chapel at the congregation’s provincial house in Pasay on June 14, the congregation’s 100th founding anniversary. OLIVER SAMSON

Dandoy, continue relishing the joy of religious life. Prayer is a nutrient that sustains them daily, so tasty that it seems to pamper the tastebuds of their soul.

They also serve as testament to the congregation’s fruitful journey, and guardians, through prayer, of their young and active sisters. “ T hey are our treasure,” Canag said. “ T hey are a lso our prayer war r iors.”

Canag herself has also ripened to an age, which usually retires other seniors. She is 74, but still

active in apostolate.

Together with other nuns, she evangelizes the living among the dead—the urban homeless who colonized Pasay cemetery.

Paulines are known for their apostolate of evangelization like their patron Saint Paul. The congregation was founded by Blessed James Alberione, an Italian Catholic priest, together with Venerable Mother Tecla Merlo in Italy in 1915.

In the late 1930s, in its first attempts to sow seed in Asia, their earlier nuns had tasted bitter cup

in China and India.

They met rejection in both countries, Canag said. Even in the Philippines, the leaders of the Catholic church did not like them at the start.

They settled in Lipa, which is “the cradle of our foundation” in the Philippine province, said Sis. Pinky Barrientos, former CBCP News/CBCP Monitor associate editor.

Today the Daughters of Saint Paul harnesses the advancement in communications technology to carry on evangelization in an era when

some of the mainstream media, using Internet platforms, undermine the formative years of the young with all sorts of moral turpitude.

The congregation is currently present and active in 51 countries in all the five continents with a worldwide number of 2, 267 nuns, Barrientos said in an earlier interview.

The Philippine province, which covers the Philippines, Malaysia, Thailand and Papua New Guinea, has 18 communities, four of which abroad, she added. Professed sisters in the Philippines are 179.

New shelter to offer haven for abused seniors in Michigan Young and old fight over jobs in South Korea as generation gap widens

By Robin Erb

Detroit Free Press (TNS)

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E

MERGENCY housing for elderly victims of neglect, abuse and exploitation on opened on June 15 in West Bloomfield—believed to be the first such permanent shelter in Michigan.

Jewish Senior Life of Metropolitan Detroit will provide a haven for seniors who are victims of domestic abuse, neglected by caregivers, or who are financially exploited by family members, for example. Such safe places are a next step in the fight against elder abuse—driven by a better understanding of the vulnerability of older adults, along with a growing 65-plus population, said Julie Schoen, deputy director of the National Center on Elder Abuse, part of the US Administration on Aging.

“You’re on the cusp of what we’re seeing emerging” in abuse shelters for elderly people across the country, she said. In West Bloomfield, the word “shelter” is a loose term.

It’s more a collection of studio or one-bedroom apartments primarily at the Eugene & Marcia Applebaum Jewish Community Campus.

There, Jewish Senior Life focuses on improving the quality of life for Michigan seniors. Through grants and contributions, the organization will cover the cost of seniors’ stay for 90 days as they try to regain control of their lives.

Those 60 and older are eligible, and they do not need to be from Oakland County. As part of their stay, they will be connected to social workers and services.

Just how many of America’s elderly are abused is unclear. One study puts that number at up to one in 10 older adults. Another study finds that nearly one-half of seniors with dementia are being abused or exploited. About 15 percent of Michiganders, or nearly 1.5 million, are 65

keeping with tai chi

Carmela Bangogan, 73, teaches summer tai chi every morning to park goers at the Rose Garden in Burnham Park in Baguio City.

The limber elderly is a delightful sight at the park. MAU VICTA

or older, according to the US Census Bureau. Experts say seniors can be particularly vulnerable because of dementia and memory problems.

And some don’t report crimes because they worry they will put their abuser—often a family member—in prison. Others keep silent because they fear losing their independence.

“When the [grown] child’s telling you, ‘I’m going to put you in the home,’ that’s a real threat to people,” said Trish Gerard, who heads the Elder Abuse unit of the Wayne County Prosecutor’s Office, which last year handled more than 200 cases of crimes against seniors, including 19 homicides and 113 assaults.

One study found that nine out of 10 abusers are family members,

according to the National Center on Elder Abuse.

“Elder abuse victims are profiled—not unlike child abuse victims. They’re seen as weaker, better victims—an easy mark,” Gerard said.

More traditional shelters might sometimes take older residents, but that can mean a bed in an overnight, emergency shelter for the homeless or a spot for a frail senior along with younger, battered women and their children, for example. And sometimes, domestic violence shelters don’t accept men. At times, seniors sometimes might be hospitalized because there simply is no other option, Schoen said. The uncertainty of each day, in addition to the general chaos of some shelters or a hospital,

may further traumatize a senior, said Kari Sederburg, executive director for Aging and Adult Services Agency within the Michigan Department of Health and Human Services.

Housing intentionally constructed and furnished to be “age-friendly” and filled with neighbors of the same age is more comfortable, she said.

“What they’re doing is really exciting,” Sederburg said of Jewish Senior Life’s efforts. Setting aside housing aligns with the office’s mission, said Barb Giles, director of the shelter. She said the group has been collaborating with the New York-based SPRiNG Alliance, which is building a network of such shelters or housing units across the US. The Michigan effort is the 11th, according to SPRiNG.

ITH youth unemployment near a 15-year high and the government planning to raise the retirement age, intergenerational conflict over jobs is rising in South Korea.

The jobless rate for workers aged 15 to 29 touched 11 percent earlier this year and is about four times higher than for those aged 40 and above. At the other end of the spectrum, South Korea has an underdeveloped pension system and the highest elderly poverty rate in the Organisation for Economic Co-operation and Development (OECD), as companies push employees in their 50s into early retirement to contain costs.

An overall unemployment rate that’s close to the 10-year average belies the difficulty facing policymakers seeking to balance the needs of the young and the old as society ages and economic growth eases after the heady gains of previous decades.

Working longer would have helped Lee Jong-ho, 59, who retired from Korea Railroad Corp. two years ago and has been looking for another job ever since. Lee’s 2.2-million-won ($1,970) monthly pension isn’t enough to support him and his wife, after pouring savings into raising their children.

“Healthy people like me should work at least until 70 given that the average life span of people now is easily over 80,” Lee said. “I know that extending the retirement age could mean fewer jobs for young people.

I’m willing to get paid a little less if I can keep working.”

While currently there is no official retirement age in South Korea, a typical worker’s career ends around 53, government data show.

After that, many try to get by on a combination of pension payments, savings, part-time work or small business ventures.

A new law taking effect next year mandates that large companies allow employees to work until at least 60.

Kang Jin Ho, an English major at Hankuk University of Foreign Studies in Seoul, is 26 and still trying to get into the work force. He’s deferred graduating for years to maximize his employment chances, as many companies limit new entry hires to people still in school. Kang’s applied for more than 70 jobs already in 2015 and has been rejected every time.

“Getting a job was so much easier for my parents’ generation, when the economy was expanding fast,” he said. “The average age of job seekers in my study group is 30.”

Projections from the OECD paint a gloomy picture for Kang and the next generation of students who will follow. The number of people 65 an older in South Korea will surge from 11 percent in 2010 to more than 37 percent by 2050, according to the OECD. President Park Geun-hye’s government will announce next month its fourth set of measures in two years to help ease unemployment among the young.

Previous efforts have included improvements to career training at school and incentives for young people to join small- and mediumsized enterprises, not just the large corporate icons that dominate the public imagination.

This time around the government may begin addressing the problems faced by Lee and Kang at the same time.

According to a finance ministry statement in May, financial support could be offered to companies that keep on older workers, while trimming their wages and using the savings to hire more young employees. The ministry didn’t offer further details. Bloomberg News

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The Regions BusinessMirror

6 Hawaiian students with Ilocano roots visit Ilocos Sur for immersion

By Mau Victa

S

Correspondent

ix of the 15 students from Hawaii with Filipino roots who finished a threemonth course on the Ilocano language and immersion visited Ilocos Sur starting June 9 as part of the first Ilocano language and immersion program in Hawaii.

Accompanied by coordinator Bernadette Dario Fajardo, who also traces her roots in Candon, Ilocos Sur, the six students, who were born and raised in Hawaii, visited the cities of Candon and Vigan in Ilocos Sur for the first time and met with the communities for them to be aware of their Filipino roots and learn their Ilocano culture and heritage.

The students, who are either third- or fourth-generation Filipino Americans are Vanessa

Jacob, Devani Gaoing Agbayani, Laetitia Manorey, Bryant Acoba, Kendrick Go and Christian Paulo Alingbuya.

Before their trip to the Philippines, Fajardo said the students underwent the Ilocano language Acquisition and Immersion for the New Generation (iLAING), at the Filipino Community Center in Waipahu, Hawaii, from March to May with University of Hawaii Ilocano Language Program Professor Dr. Aurelio Agcaoili.

Fajardo said the idea was for the students to learn basic Ilocano words and culture. Since three months is not enough for them to be fluent, she said the plan is for them to continue harnessing their ability to speak the language.

“Many members of the new generation forget about their culture, so we want to address this

through the iLAING program,” Fajardo said, adding that about 90 percent of Filipinos currently settled in Hawaii are Ilocanos.

They make up the largest population in this US state, whose settlement until the present generation there was paved by the 15 sakadas from Ilocos who were hired by the Hawaii government as sugarcane laborers in 1904.

Fajador said the iLAING is the first project under the sisterhood ties of the cities of Candon and Honolulu, which was forged last month. The project was initiated by the Philippine Consulate General in Honolulu and partner organizations FilCom Center, Candonians of Hawaii, the offices of Ilocos Sur Rep. Eric Singson and Candon City Mayor Ericson Singson, Etrata Foundation, Philippine Airlines and Western Union.

Monday, June 22, 2015 • Editor: Dionisio L. Pelayo

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$2-M sanitary disposal project to rise in Clark

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By Joey Pavia | Correspondent

LARK FREEPORT—Korean investors and their business partners based in Pampanga will construct a $2-million sewerage handling and sanitary disposal project in Barangay Calumpang, Mabalacat City.

Representatives of TesuPhils Inc. and LC Soliman Septic Tank Inc. signed on Tuesday night the memorandum of agreement (MOA) for the project on a 1.5-hectare land in Calumpang, which is part of the subzone of Clark. The facility is

expected to be completed in August this year, said Alfredo Soliman, director of LC Soliman.

Soliman said their facility will serve businesses and residents of Pampanga and other provinces in Central Luzon, Metro Manila and

Calabarzon. “We also made sure our future facility passed the necessary requirements and permits required by local and national governments,” Soliman said.

Sen. Manuel “Lito” Lapid, Central Luzon Police Regional Office 3 Officer-in-Charge Chief Supt.

Ronald Santos and Malabanias, Angeles City Barangay Captain Rey Gueco graced the signing at the Clark Hills Building here.

Lapid arrived with Lydia Soliman, president of LC Soliman, and officials of the Korean firm TesuPhils led by its chairman, Si Young Chon.Si said he is living and doing businesses in Pampanga and Clark for over 24 years. “It’s good doing business in the Philippines.

The people in Pampanga are nice,” Si said.

Crossbred ‘ligers’ and ‘tigons’ are new Subic theme-park attractions

By Henry Empeño Correspondent

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UBIC BAY FREEPORT—The Zoobic Safari theme park here, which became popular because of its animal shows and a close encounter program with tigers, has brought in new attractions: “ligers” and “tigons,” which are crossbreeds of lions and tigers.

Four specimens of the two “new” breeds of the big cats arrived here on Thursday afternoon, instantly creating new stars in an animal farm that has staked its reputation as an interactive zoo of exotic species.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia said the new attractions at Zoobic Safari will tremendously boost tourism in the free port, as they are reputed

to be among the few specimens in the country today.

“There are really lots of new things to see and experience in Subic,” he said. “Now, we have rare animals that you can only see in just a few places in the world, and Subic is one of them.”

Dr. Norilyn Molleno, the resident veterinarian at Zoobic Safari, said the ligers that arrived here are named “Neema” and “Princess,” while the

two tigons are called “Togo” and “Baby.” All are about two years old on the average.

The four crossbreeds arrived here by plane from the United Arab Emirates (UAE), along with three lions, three lionesses.

Molleno said “ligers” are offsprings of a male lion and a female tiger, while “tigons” are crossbreeds of a male tiger and a female lion.

“Accidental crossbreeding happens in the wild, and it is a good idea that the public should know that this is really possible,” she added.

Molleno said that ligers may weigh from 800 kilograms to 1,000 kg in adulthood at about three years old. They are bigger than the tigons, which weigh only from 500 kg to 800 kg.

Both are bigger, however, than

purebred tigers and lions, Molleno said. The crossbreeds and the six other purebred lions were donated by a sheikh in the UAE who wishes to remain anonymous.

The sheikh reportedly donated the animals to Zoobic Safari for educational purposes, but only after confirming that the facility has the capability to handle and take good care of the animals.

A10 Monday, June 22, 2015

Opinion BusinessMirror

editorial

Renewable energy: Be realistic

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NSTEAD of simply being an economic or technological issue, the use of renewable energy (RE) is more like a religion, where belief and faith is sometimes more important than fact.

In 2008 the Renewable Energy Act of 2008 was passed to encourage “the development of RE resources, such as, but not limited to, biomass, solar, wind, hydro, geothermal and ocean energy sources.” That is all noble, but, the reality is, contrary to what most politicians think, passing a law is not a magic wand that makes things happen.

There was an increase of only 118 megawatts (MW) in RE capacity to 5,391 MW from 2007 of the total energy supply of some 16,163 MW. However, in practical and available RE like hydropower and geothermal power, the Philippines does well with both, producing some 5,274 MW. Unfortunately, our hydropower plants are old and are not equipped to handle the dry months to be able to produce at full output. Increasing geothermal production has been stopped on numerous occasions by those with environmental concerns.

Other RE sources, such as wind, solar and biofuel, make up only 117 MW of the total, indicating great potential for growth.

However, Michael Guarin, an alternative-energy consultant, said in a paper commissioned by Amsterdam-based KPMG Global Energy Institute that a key problem is that RE does not yet offer as much “bang for the buck” as fossil fuels. Guarin notes that power plants that use RE cost more to build than those that burn coal, oil or natural gas, and RE is currently also more expensive to produce.

The reality for the Philippines is that “it is a political issue in a nation where a large part of the population can barely put food on the table and where the cost of electricity is already the sixth highest in the world.”

There are other economics involved. Existing fossil-fuel power plants make a profit, employ thousands and pay taxes. Most RE plants require tax breaks, and they usually do not create many jobs.

Even Mario Marasigan, head of the Department of Energy’s Renewable Energy Management Bureau, is quoted as saying, “We cannot do away with fossil fuels, at least not in our lifetime.”

What the nation needs to do is, first, ensure an ample supply of power at the lowest cost possible. The goal is to add another desperately needed 5,000 MW of electricity from fossil fuels. Luzon has an installed capacity of 11,805 MW for more than 44 million people, compared with Singapore’s 12,521 MW for a population of fewer than 6 million.

We must encourage even with fiscal incentives and appreciate private enterprises, like malls, that are installing solar and other RE sources. However, as a national priority, the government must focus more on additional and cheaper fossil-fuel-generating capacity.

PCSO continues raising funds for charity Atty. Jose Ferdinand M. Rojas II

RISING SUN

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N June 15 it was my pleasure to attend the flag-raising ceremony of the Philippine National Police (PNP) Aviation Security Group (Avsegroup) and donate an ambulance for the use of its security programs.

Avsegroup, headed by Director Pablo Balagtas, is implementing the PNP’s Patrol Plan 2013. Patrol stands for “Peace and Order Agenda for Transformation and Upholding the Rule of Law,” a program that will provide safety, peace and order, and protection.

This, indeed, is the mandate of Avsegroup, particularly with regard to civil aviation. It is tasked to coordinate with airport authorities in securing the nation’s airports against “offensive and terroristic acts that threaten civil aviation; exercise operation control and supervision over all agencies involved in airport-security operation; and enforce all laws and regulations relative to air-travel protection and safety,” according to an online article.

In these times of highly competitive airlines and cheaper and more affordable air travel, and given the government’s thrust toward increased promotion of

local tourism, the number of passengers that flow through our airports has significantly increased.

This makes Avsegroup’s work that much more complex and difficult, given also the all-too-real threat of terrorism.

The ambulance that the Philippine Charity Sweepstakes Office (PCSO) donated to their unit will be used in their operations related to their mandate, particularly in situations where they would be the first responders.

Also, as part of our activities related to the PCSO’s Ambulance Donation Program, we visited Bulacan on June 9 to turn over eight units to hospitals in the province.

Included in our party were PCSO Chairman Ayong Maliksi and directors Mabel Mamba, Betty Nantes and Francisco Joaquin III. On hand to greet us were Bulacan Vice Gov. Daniel Fernando and other local government unit (LGU) officials.

The recipients of the ambulances were Bulacan Medical Center, Bulacan Medical Center Annex, San Miguel District Hospital, Emilio G. Perez District Hospital, Calumpit District Hospital, Baliwag District Hospital, Rogaciano M. Mercado Memorial Hospital and the Bulacan Provincial Disaster Risk Reduction Management Office.

More units were given away last week to other hospitals and LGUs. Under the PCSO’s Ambulance Donation Program, LGUs and institutions can request units every five years. These ambulances and rescue vehicles are of great service to our kababayan during times of emergency and crisis, especially to those in remote areas far from a hospital or health center.

The PCSO has many other social-welfare programs, including its flagship Individual Medical Assistance Program. It subsidizes hospitalizations; treatments, such as dialysis and chemotherapy; implants and prostheses; and other forms of medical and health care.

On June 12 we celebrated our country’s day of independence.

That day, Director Joaquin and I visited biliary atresia patient Jacob Figueroa at The Medical City (TMC) Hospital in Mandaluyong City.

Jacob is only 3 years old, but his medical condition was so severe that it was deemed necessary for him to have a liver transplant immediately. The transplant team

at TMC, headed by surgeon Ma. Vanessa de Villa, performed a successful operation. The PCSO extended P1.5 million in financial assistance for Jacob’s procedure.

But where does the PCSO get the funds to give away ambulances and subsidize medical care for those who cannot afford it?

The PCSO raises funds for charity through the popular Lotto and other games that it runs. Fifty-five percent of gaming revenues go to the prize fund, 30 percent to the charity fund and 15 percent to operating expenses. It is from the charity fund that programs, such as ambulance donation, individual medical assistance and all others, are funded.

The PCSO does not receive any fund from the national government. Thus, the higher its sales, the higher the allocation to the charity fund, and even more people will be benefited.

We appeal to you to help us help others by supporting PCSO games, such as Lotto, digit games scratchit and other number games. With every ticket you buy, not only do you get the chance to be a multimillionaire, you also help our fellow Filipinos with their medical and health-care needs and become a participant in the PCSO’s charity work.

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

Dad’s advice? Just don’t fall for that moron

By Gina Barreca The Hartford Courant/TNS

T

HE most important thing my father ever said to me was, “You can always take the next bus home.” He said it in reply to the panic on my face as he dropped me off for my first year of college. Other girls looked like Grace Kelly: On a good day in 1975, I looked like Janis Joplin. They had BMWs with ski racks on the roof; we had a 1967 Skylark with a muffler on the ground.

He knew I wanted him to turn around and get us out of town. But what he said was, “You don’t like it? You can always take the next bus home.”

My father gave me permission to take risks by offering a safety net.

“Go ahead, doll; even if you fail, you’re one of mine and I love you.”

He’d always been a man of few words, my father, but he used them wisely. My mother died when I was in high school and I was alone a lot. I started dating an older guy my father didn’t like.

He told me he didn’t want this boy picking me up at school every day.

I rolled my eyes and said, “Dad, nothing is going on.” My father looked me in the eye and said, “I don’t care if you’re sleeping with

the guy. Sex isn’t gonna kill you.

I just don’t want you falling in love with this moron.”

I broke up with the kid about a week later.

There are as many kinds of paternal advice as there are fathers and father figures. I asked around and some of it surprised me—and I’m not easily surprised.

The blue ribbon for straightforward advice from a dad goes to Carly, whose parent told her: “Make him use a condom. He won’t like it, but he’ll like it good enough.”

Pamela S’s father, who was an electronic technician, put it in different terms: “Males have plugs, females have outlets. You have to be careful of corroded wires; never forget a surge protector.”

Even if most fathers mean well,

their advice needs a context.

Jay Heinrichs, author of Thank You For Arguing, told me his dad warned him, “Never go to France.

I’ve been there and the people are terrible.”

Jay explained, “My dad had been to France once, landing in Normandy in World War II. I went and told him they had improved—somewhat.”

In contrast, Roger’s father offered a lesson more direct, if not tougher, than one learned on June 6: “My father taught by example.

By the time I was 12, I knew everything that a father could do wrong and knew that I never wanted to be like him.”

Many men of different ages told similar tales. Some fathers are unforgivably hard on sons.

Although daughters were disappointed by fathers who told them to get “Mrs.” degrees, or to learn to type because they’d never have a better skill, or to avoid “getting as fat as your mother,” many take the best of what they’ve heard to heart.

Anne Barreca, my niece and director of the Battery Park City Library in New York, was instructed

to “never trust a man who’s rude to the waiter.” I hear my father’s voice in my brother’s advice.

My pal Kate’s father insisted that his daughters always have a $20 bill stashed somewhere hidden so they could get a cab and get themselves out of a bad date or party. “The message was clear: Get home safely, then we can sort out what happened,” she says.

A startling amount of advice to daughters focused on vehicles.

Eileen’s dad wanted her to change tires and check oil. Helen’s father said, “If you don’t like how things are going, take your foot off the gas,” which is smart thinking on all occasions.

One friend’s lesson, while superficially different from the one offered by my dad, carries essentially the same message. As Pam W’s dad dropped his daughter off for her first day of college, he yelled out the window, “Enjoy not knowing where anything is!” Pam says, “Now with every new, scary, brave change, I sink into the joy of not knowing.”

Here’s to the men who helped make their sons and daughters brave, smart and independent.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Monday, June 22, 2015 A11

Filipino First Policy Atty. Lorna Patajo-Kapunan

F

legally speaking

ILIPINO First Policy is a rule under Article XII Section 9 of the 1987 Constitution, which heavily favors Filipino businessmen over foreign investors with respect to the grant of rights, privileges, and concessions covering the national economy and patrimony. On February 3, 1997, the Supreme Court (SC) decided the landmark case of Manila Prince Hotel v. Government Service Insurance System et. al (G.R. No. 122156) and enlightened the people as to why a living testimonial of Philippine heritage like that of Manila Hotel, which has become a part of our national economy and patrimony, should be kept within the control of Filipinos.

In the said case, Government Service Insurance System (GSIS) sold through public bidding 30 percent to 51 percent of the issued and outstanding shares of Manila Hotel Corp.

(MHC) pursuant to the privatization program of the government. There were only two bidders which participated. Manila Prince Hotel Corp.

(Manila Prince), a Filipino corporation, offered to buy 51 percent of the MHC, or 15,300,000 shares, at P41.58 per share. Renong Berhad, a Malaysian firm, bid for the same number of shares at P44 per share, or P2.42 more than the bid of Manila Prince.

Pending the declaration of Renong Berhad as the winning bidder, Manila Prince wrote a letter to the GSIS and matched the bid price of P44 per share tendered by Renong Berhad. It also sent a manager’s check for P33 million as bid security to match Renong Berhad’s bid. However, the GSIS did not act on its letter and refused to accept the same. Thus, Manila Prince went to the SC and filed a Petition for Prohibition and Mandamus, invoking the above-mentioned provision of the 1987 Constitution. Manila Prince sought to prohibit MHC from perfecting and consummating the sale to Renong Berhad. Manila Prince maintained that since the Manila Hotel is part of the national economy and patrimony, it should be preferred over Renong Berhad after it has matched the latter’s bid offer, in accordance with the Filipino First Policy enshrined in the aforesaid provision of the Constitution. The GSIS, on the other hand, argued that Manila Hotel does not fall under the term national patrimony.

In deciding for Manila Prince, the SC ruled that the term patrimony pertains to heritage and that Manila Hotel has become a landmark—a living testimonial of Philippine heritage. While it was restrictively an American hotel when it first opened in 1912, it immediately evolved to be truly Filipino.

Formerly a concourse for the elite, it has since then become the venue of various significant events which

have shaped Philippine history.

Dubbed as the Official Guest House of the Philippine Government, it plays host to dignitaries and official visitors who are accorded the traditional Philippine hospitality.

Moreover, the SC emphasized that for more than eight decades, the Manila Hotel has bore mute witness to the triumphs and failures, loves and frustrations of the Filipinos; its existence is impressed with public interest; its own historicity associated with our struggle for sovereignty, independence and nationhood. Verily, Manila Hotel has become part of our national economy and patrimony.

The SC held that privatization of a business asset for purposes of enhancing its business viability and preventing further losses, regardless of the character of the asset, should not take precedence over nonmaterial values. A commercial, nay even a budgetary, objective should not be pursued at the expense of national pride and dignity. The Manila Hotel or, for that matter, 51 percent of the MHC, is not just any commodity to be sold to the highest bidder solely for the sake of privatization. The hotel is not an ordinary piece of property in a commercial district, but a historic relic that has hosted many of the most important events in the short history of the Philippines as a nation. This hotel has played and continues to play a significant role as an authentic repository of 20thcentury Philippine history and culture. In this sense, according to the SC, has become truly a reflection of the Filipino soul—a place with a history of grandeur; a most historical setting that has played a part in the shaping of a country.

In view of the foregoing, the SC directed the GSIS to cease and desist from selling 51 percent of the shares of MHC to Renong Berhad, and to accept the matching bid of Manila Prince to purchase the subject 51 percent of the shares of MHC at P44 per share.

Monarchy is best Teddy Locsin Jr.

I

Free fire

WAS in Bosnia-Herzegovina when Pope Francis was there: I in Medjugorje; he in nearby Sarajevo. He said nothing, either affirming or taking back, what he said sarcastically last year about the apparitions and messages received there. He said that the Virgin Mary is not a post office that delivers messages on a daily basis.

More than 30 years since the first ones, the visionaries continue to experience apparitions and receive messages from her: one of them, Ivan, on the second of each month; the other, Mirjana, on a daily basis; the rest at longer intervals. I watched Mirjana address a crowd from the balcony of her home, and Ivan at the mass for pilgrims; and Mirjana again at the foot of Apparition Hill while experiencing an apparition and speaking about it later. (That is some hill.

It is a high mound of huge broken limestone, with jagged edges that can cut your hand, and without the slightest trace of a trail of kinder stones.) All the visionaries have led normal lives. They are married and

have happy families. Ivan lives in Boston with his family.

The final report of a special Inquisition is due out soon. Indications are that it will not be favorable. The Vatican is pissed at the Franciscans at the site for their lack of distance and Pope Francis is not sympathetic. While he favors popular devotion to religious images and sites, he is not happy with this one. He says that faith does not need props.

It may also be that it is one thing to pray to pictures or carvings of Jesus and Mary that will not answer you back and quite another to listen to mediums who claim to be speaking on their behalf. You see the possibility of improvisation

with the best intentions.

But be all that as it may, if the verdict is not good for Medjugorje devotees yet it will surely contain the consolation that devotions inspired by merely apparent apparitions do not lose an iota of their sincerity. The Church has always said, “Hey, whatever works,” especially when the messages merely reaffirm old papal teachings like peace on earth and frequent confessions. Indeed, the best confessors converge on Medjugorje.

Although I am not a member of the Inquisition, even if I act like one at times, I think it is the ordinariness, the very commonplaceness of the messages, that makes the Church suspicious about their celestial origin. Why appear at all merely to repeat what every pope has said? But that begs the question: Do the faithful listen to popes?

Be a l l that as it may, the Medjugorje issue—and the wary way the Church is approaching it—underscores once again that monarchy is the best form of government. Here is the world’s last and globally the biggest monarchy in history—what government has ever commanded the willing loyalty of a billion and a half?— with jurisdiction over heaven

Time for the Philippines to find more sustainable growth models

I

By Lord Mark Malloch-Brown

have followed the Philippines closely for more than 30 years from the Marcos dictatorship to democracy. I have watched the fortunes—and misfortunes—of its economic performance over that time. For much of the period, despite a People Power Revolution that caught the world’s imagination, it remained in growth terms the Sick Man of its region.

Today, both because of mounting political and economic difficulties across Asia and more happily because of a sharply improving performance of the Philippines itself, yesterday’s patient can be tomorrow’s leader. There are, however, challenges to be met.

Political difficulties in Asia are hampering even greater economic success. By my count there are more than a dozen dangerous conflict situations. Several other Asian nations also continue to suffer from protracted unresolved internal conflicts, which cause misery for those affected and drastically hold back development.

And, at the international end of the scale, increasing tensions in the South China and East China Seas and the Korean Peninsula only to add to this uncertainty. China’s release of an assertive white paper on

military strategy last month, with a strongly worded section on maritime affairs, did nothing to defuse such disputes. The Philippines has quite robust treaty-based security protection but clearly diplomatic compromise needs to replace confrontation if the Philippines is to escape the political risks that are starting to attach to those in the path of a resurgent China.

Alongside political concerns, natural disasters continue to wreak havoc in the region, with consequences that reach beyond the initial damage they cause.

These events, such as the devastating Supertyphoon Yolanda (international code name Haiyan) of 2013, are exacerbated by the straining pressures of demography and urbanization, and have been particularly damaging to Asian countries in recent years. Some

80 percent of the world’s natural disasters are now in Asia reflecting the tragic price of successful economic growth that has put a strain on resources such as water, food, land and forest cover. The Philippines, along with the rest of the region, needs to find much more sustainable models of growth.

It is within this context of rising political and climate challenges that the recent global slowdown in emerging markets including Asia has taken place. A principal driver of this change has been the decline of the China-led commodities boom, which seriously affected growth rates in many of the emerging economies, especially for those who have benefited from increased international trade in recent years.

The latest slump in international trade, particularly in the South-South trade dr iven by China, has perhaps in part been the cause of disappointing firstquarter gross domestic product (GDP) growth postings for the Philippines this year: 5.2 percent, down from 6.6 percent in the fourth quarter of 2014 and the lowest since 2011. But it’s still

It is within this context of rising political and climate challenges that the recent global slowdown in emerging markets including Asia has taken place. A principal driver of this change has been the decline of the China-led commodities boom, which seriously affected growth rates in many of the emerging economies, especially for those who have benefited from increased international trade in recent years.

growing faster than its neighbors.

The Philippines has consistently been forced to rely less on international trade to drive GDP growth than Asean rivals such as Malaysia, Thailand or Indonesia.

This has been seen as a disadvantage in past years, but in the current climate it could mean that the Philippines suffers less than others in the region. With luck, the worst effects of the international trade slump have already been inflicted on the Philippines, and as remittances grow at their fastest pace for six years, the na-

tion may be well placed to bounce back, with private consumption driving GDP growth.

But it is still true that the Philippines needs to attract more trade and foreign direct investment, by really making a muscular effort to advertise its potential as a stable and fruitful investment environment and trading partner. Foreign investment has long lagged behind growth because of the drag on its reputation of perceived weak institutions and leadership.

Recent political developments have been positive. Just this week members of the Moro Islamic Liberation Front began to lay down their arms as part of a disarmament ceremony in Mindanao, paving the way for a resolution to a conflict that has claimed over 100,000 lives and held back economic progress on an island that is rich in mineral resources.

At the same time, electoral politics in the Philippines has much improved in recent years. A company I recently became chairman of, Smartmatic, has provided election services for the Philippines since 2008, and the 2013 midterm elec-

and earth. And yet the Church is the first, and in this case the only one, to investigate and cast doubt on claims that would only bolster its royal authority if declared to be true.

Only monarchies have the chutzpah to doubt themselves in the open. Whereas to this day it is political suicide for an American politician to doubt that Saddam’s Iraq really possessed the weapons of mass destruction that justified the American invasion and the resulting chaos there; while America’s greatest general in Iraq was vilified by the American public and press for having an affair with the stunning young woman who was writing his biography.

The reason is that a monarchy answers only to a higher law, whereas a democracy answers only to the ignorant and the ignoramuses they elect. A pope is picked only by a select few of the smartest, most devout and apostolically experienced candidates—and only from among themselves. In short, it is the best picking the best. Is it any wonder that the Church is the oldest uninterruptedly existing state, with an unbroken line of political succession, in the history of the world?

tions showcased the largely stable atmosphere in which politics in the Philippines can now take place. Automated elections meant that the result was known much quicker, and the tense 40-day wait of 2004, while votes were counted, is now a thing of the past. As outside commentators have noted, Philippine elections are now conducted in the most modern, secure and effective way of any in Asia.

With progress also made on wider issues of good governance, it’s clear that the Philippines has a lot to promote. But yours is a country prone to noisily questioning its own successes with the consequence that the world too often sees the squabbles and political fights rather than the strategic progress that is being made. As a friend, one can perhaps suggest it’s time for more pride and less backbiting in the nation’s politics.

Lord Malloch-Brown is chairman of Smartmatic and a former deputy secretary-general of the United Nations and UK Minister.

In the 1980s he was an adviser to President Corazon Aquino.

2nd Front Page BusinessMirror

A12 Monday, June 22, 2015

www.businessmirror.com.ph

Foreign-currency debt fell 3% in Q1 T

By Bianca Cuaresma

he country’s foreign-currency debt position improved by 3 percent in the first three months to only $75.3 billion, the result of a conscious government effort to pay down its external obligations as they mature and seek more local-currency financing, instead.

The improvement represented a reduction in obligations by $2.4 billion, from $77.7 billion in the quarter ending December 2014, as repayments exceeded new borrowings during the period, the Bangko Sentral ng Pilipinas (BSP) said.

According to the BSP, the decline resulted from a deliberate debtrepayment program, as well as the revaluation of the peso helping push the country’s foreign debt down.

“Negative foreign-exchange revaluation, amounting to $220 million, arising from the strengthening of the US dollar against other currencies, and an increase in residents’ investments in Philippine debt papers, amounting to $100 million, also contributed to the decline in the debt stock,” the central bank said.

At this level, the country’s external debt is considered at a very prudent level, according to BSP Governor Amando M. Tetangco Jr., as the $272-billion economy owns gross international reserves sufficient enough to cover 6.1 times the country’s short-term external debt under original maturity.

Likewise, the country’s external debt ratio, as percent of gross national income (GNI), improved to 21.5 percent, from 22.5 percent a quarter ago and from 18.3 percent 12 months earlier. The GNI is essentially local

output, or the gross domestic product (GDP) plus net receipts from abroad of wages and salaries and of property income plus net taxes and subsidies.

“The same trend was observed using GDP as denominator, as the debt stock dropped by $2.4 billion vis-à-vis the 5.2-percent growth of the Philippine economy in the first quarter of 2015. The ratio is an indicator of the country’s capacity to service foreign obligations,” the central bank said.

The report also showed economic managers having consciously borrowed with prudence, the bulk of the borrowings maturing over medium to long term. According to the BSP, the country’s medium- to long-term debts accounted for 82.6 percent of total external debt in the first quarter this year.

Debt accounts with mediumto long-term maturity profiles are

those that fall due longer than a year.

The bulk of the country’s external debt is denominated in two major currencies, with US dollar debt accounting for the bulk, or 64.6 percent of total, while yendenominated obligations account for another 12.7 percent.

Investors looking to put money in the Philippines typically consider the country’s debt profile as a way of determining its capacity to service maturing obligations down the line.

Government debt, as percent of GDP, for example, has been brought down to 45.4 percent as of 2014, from 49.2 percent a year earlier. The ratio stood at an all-time high of 74.9 percent of GDP in 1993, when Manila still relied on financing from the International Monetary Fund to help it service maturing external obligations.

Office-market vacancy rate drops to below 4%

By Roderick L. Abad

L

OW vacancy continues to prevail in the office market, translating to a spike in rental rates across key central business districts (CBDs) in Metro Manila.

Based on the Market Insight June 2015 Report of Pinnacle Real Estate Consulting Services Inc. (Precsi), the overall vacancy rate is now below 4 percent.

The high take-up for office space is evident in the ever-growing businessprocess outsourcing (BPO) sector.

“This continuous growth of the

industry translates to additional demand for office spaces across all major business districts,” Precsi Director for Research and Consulting Jojo Salas said in the study.

Outsourcing is the biggest contributor to the Philippines’s gross domestic product (GDP), accounting for 6.2 percent in 2014.

It is also a top job creator, reaching the 1 million full-time employment level as of September last year, and is expected to generate 1.23 million jobs in 2015.

Expectations remain bullish, given the projected revenue hike by

around 15 percent to 18 percent from 2014 to 2016, including the estimated $21.8-billion top-line this year.

Next year industry’s revenue is seen to reach $25.5 billion, from $24.5 billion last year, while employment is seen to increase from 1.3 million to 1.4 million for the periods in review.

Given the continued BPO investments by the government and improving investors’ confidence in the country, it is poised to partake 14 percent of the global industry share.

See “Vacancy,” A2

Agencies directed to ensure effective budget execution

By Butch Fernandez

M

alaca ñang moved quickly over the weekend to recover from Moody’s scaled-back growth outlook of only 6 percent in terms of the gross domestic product (GDP) from 6.5 percent originally and blamed in part on government underspending and slow global trading.

“President Aquino has tasked the Cabinet to ensure that all agencies under the Executive branch shall pursue an effective and consistent budget execution based on the 2015 General Appropriations Act,” Communications

Secretary Herminio B. Coloma Jr. said.

The secretary reported that the government has taken note of the latest forecast by Moody’s, lowering the estimated GDP growth for the Philippines from 6.5 percent to 6 percent. Moody’s attributed the scaled-back growth forecast to “weak global trade alongside low government spending.”

At the same time, the Palace official said the Department of Budget and Management was also given marching orders by Mr. Aquino to continue to closely monitor disbursements of all agencies “to ensure that the agencies meet

their targets.”

Earlier, Malacañang announced it was dispatching a high-level mission to three cities in the United States—New York, Washington and San Francisco—to point out opportunities for American businessmen in various Philippine infrastructure projects.

Malacañang has confirmed that among those joining the mission were Public Works and Highways Secretary Rogelio L. Singson, Trade Secretary Gregorio L. Domingo, Finance Secretary Cesar V. Purisima and Bases Conversion and Development Authority chief Ariel Casanova.

Luzon on the brink of blackouts anew. . .

Pagbilao Unit 2, with a capacity of 367.5 MW, will go offline starting July 4 up to August 2. The first unit, another 367.5 MW of powergenerating capacity, will end its 29-day preventive maintenance shutdown on June 28.

The Pagbilao power station is a 735-MW coal-fired thermal power plant in Pagbilao, Quezon, and is operated by Team Energy Corp.

The 600-MW Ilijan Unit 1 is also scheduled for maintenance from June 29 to August 5.

Ilijan-2 had finished its 30-day maintenance on April 14. The 1,200-MW Ilijan-combined cycle natural gas is one of the country’s largest energy producers, accounting for about 15 percent of Luzon power-grid requirement. It is operated by Kepco Philippines.

Santa Rita modules 10, 20, 30 and 40 are scheduled to go offline starting next month.

Each has a capacity of 250 MW. According to the list, Module 10 will go offline on July 14 and 15; Module 20 on July

18 and19 and from August 8 to September 6; Module 30 on July 4 and 5; and Module 40 from June 24 to 28.

Module 60 of the San Lorenzo power plant will shutdown from August 15 to 19 and from October 3 to 7. Its capacity is also 250 MW. San Lorenzo’s Module 50, on the other hand, will go offline from October 10 to 14.

Each module can generate 250 MW. The 1,000-MW Santa Rita and 500-MW San Lorenzo are natural-gas power plants of First Gas, a subsidiary of the Lopezes’ First Gen Corp.

Together with Ilijan power plant, these three power facilities supply about 45 percent of Meralco’s power requirement. They source gas from the Malampaya facility in Palawan.

Last in the list is the 600-MW thermal coalfired Calaca power plant in Batangas. The first unit, with a capacity of 300 MW, will undergo maintenance from August 22 to October 5.

Continued from A1

Calaca Unit 2, another 300 MW, is scheduled from November 16 to December 15.

“Our view is that absent any forced outages, particularly overlapping forced outages, we should have enough capacity and reserve in the system to accommodate what we won’t have due to these scheduled shutdowns,” Meralco President Oscar Reyes said.

It can be recalled that most of these power plants were supposed to undergo maintenance shutdown during summer. However, the Department of Energy had requested to move the schedule after summer so as not to coincide with the rising demand and the shutdown of the Malampaya facility for 30 days in March.

“We are hoping to get through this without any disruption in service, at least within our franchise area,” Reyes said.

Meralco is banking on the Interruptible Load Program to get it through the critical times, if and when there won’t be enough reserves.