BusinessMirror July 17, 2015

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‘ANTMAN’ The smile

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CAN ‘ANT-MAN’ HANG WITH THE SUPERHERO MOVIE BIG BOYS? READY TO SUIT UP Paul

Rudd plays the title role in Ant-Man, the latest from the blockbuster Marvel universe.

B S R The Philadelphia Inquirer

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NTMAN is upon us.

On Friday another superhero heads to the multiplexes. A Silver Age brethren of Iron Man, Spider-Man, and Thor, Ant-Man is, um, a little different. Sure, he has the superhuman strength, the supercool costume, and the supersmart-alecky retorts of a Marvel Comics crimebuster. ((In the Philippines, Ant-Man opened in theaters nationwide on July 15.—Ed.) But this guy is less than an inch high, and if he joined his fellow Formicidae in an invasion of your kitchen pantry, you’d grab the Raid and gun him down with the rest of the pests. How can this tiny speck possibly do battle with evil masterminds bent on world domination?

Marvel put the “ant” in “anthropomorphize” in September 1962 in “Tales to Astonish No. 35,” Ant-Man’s first appearance. If he seems an improbable contender for box-office glory now, put on your magnifiers and look again.

Ant-Man stars Paul Rudd as a busted burglar who gets his chance at redemption when he puts on what looks like an old motorcycle suit. The film is tracking to open in the vicinity of $60 million. Even if its debut weekend doesn’t hit those numbers, the Marvel Studios/Disney release is expected to fare better than Terminator Genisys, which had a franchise brand in its favor and still came up short—a lackluster $44.2 million five-day holiday weekend.

Last summer Guardians of the Galaxy Galaxy, adapted from another forgotten Marvel title (the Guardians debuted in “Marvel SuperHeroes No. 18,” January 1969), surprised just about everybody by opening to the tune of $94.3 million. It went on to become the thirdhighest-grossing film of 2014.

Ant-Man may not have quite the stature of Guardians (sequel release date, May 5, 2017).

But despite some bad early press (director Edgar Wright of Shaun of the Dead fame quit over “creative differences,” to be replaced

by Peyton Reed of the Jim Carrey flop Yes Man), its mostly positive buzz speaks to the incredible success of the superhero genre.

It doesn’t take a Jungian symbologist, a Freudian analyst, or even a Hollywood screenwriting hackinabush to figure out these movies’ appeal: Ordinary men and women, often alienated, angry, or otherwise apart from the mainstream, are somehow given the ability to fly, to light things on fire, to move objects with the sheer force of will, or leap tall buildings in a single bound. It’s a fantasy of might, of right, of “I’ll-show-you-ness.” They wrap themselves in capes and breastplates, tights and hoods, slinging shields and wielding

mallets and eking victory from life’s losses.

To wit, three of the top 10 movies of all time are adaptations of DC or Marvel comics: The Avengers (at No. 3 on the list of worldwide grosses), this year’s Avengers: Age of Ultron (No. 6), and Iron Man 3 (No. 9). If you look at the domestic grosses only, Christopher Nolan’s The Dark Knight and The Dark Knight Rises make the list.

Adjusted for inflation (thanks, Box Office Mojo), 1978’s Superman, starring Christopher Reeve as the undocumented immigrant from Krypton, has a box-office gross ahead of Avengers: Age of Ultron (and just two notches behind 2012’s The Dark Knight Rises Rises). The first Tim Burton-directed Batman, starring Michael Keaton as Gotham City’s brooding crusader, was the biggest movie of 1989.

Adjusted for inflation, its domestic grosses top $511 million.

Total the receipts from the four Reeve Superman films, from Bryan Singer’s 2006 reboot and Zack Snyder’s 2013 re-reboot, Man of Steel. Combine them with the daunting numbers generated from two Keaton Batmans, the respective Val Kilmer and George Clooney iterations, and then Nolan’s Batman: Dark Knight trilogy with Christian Bale, and it’s no wonder that come March 25, 2016, Batman versus Superman: Dawn of Justice will be in theaters. Ben Affleck is Bruce Wayne/Batman, and Henry Cavill, from Man of Steel, returns as Clark Kent/Supey. (Hey, didn’t Affleck already play Daredevil in the 2003 release of the same name? Is that even fair?)

Yes, there have been bombs along the way: Catwoman with Halle Berry, Elektra with Jennifer Garner, Supergirl with Helen Slater, Howard the Duck with a humanoid mallard.

See a trend here? Women and ducks, not so hot. Maybe that’s why Scarlett Johansson, who stars as the sultry Russian martial artiste Black Widow in the Avengers franchise, has failed to get a green light for a stand-alone movie, despite the clamor of fanboys everywhere.

Natasha Romanoff, quack quack.

But there is a new Wonder Woman in preproduction, slated for a 2017 release with Gal Gadot (Gisele in the Fast & Furious franchise) being fitted for her red and gold bustier. Gadot’s Wonder Woman shows up, reportedly, in the DC Universe of Batman versus Superman: Dawn of Justice, too.

Kate Mara plays Sue Storm, the one with the power of invisibility, in Fantastic Four Four,, opening on August 7. Another reboot, the new quartet is rounded out by Miles Teller (Reed Richards/Mr. Fantastic), Michael B. Jordan (Johnny Storm/The Human Torch), and Jamie Bell (Ben Grimm/The Thing). They’ve signed for a sequel, too.

There was a social-media dustup recently

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NEW BEGINNINGS Motoring

Editor: Tet Andolong

Friday, July 17, 2015 E1

THEE Mahindra Enforcer is available in single and double cabs.

S    R R M.   R

to the Philippine National Police, and the inauguration of three new showrooms in Metro Manila.

In a recent grand launch led by Mahindra top brass from India, President and Chief Executive Pravin Shah and Asianbrands Motors Corp. (AMC) head honcho Felix Mabilog, at the Edsa Shangri-La Hotel in Mandaluyong City, made their intentions known to the public. “We are very pleased with how fast we have grown thus far,” Shah said. “In the months and years to come, it is our vision to further expand and strengthen the presence of Mahindra in the Philippine

automotive market. Hence, the inaugural of these new showrooms is in line with our expansion strategy for the Asean market,” he added.

These said dealerships are located in Manila, Las Piñas and Pasay Cities.

At present, all are now open to field inquiries, sales and after-sales needs.

In the following months, more of these dealerships will soon rise in Cebu, Cagayan de Oro and Butuan.

Asianbrands guarantees that clients can expect “state-of-theart” facilities, proficient service technicians and highly knowledgeable sales consultants. It also boasts of spare-parts availability, capable general-repair services and preventive-maintenance assistance, which all ensure a worryfree ownership experience from the Indian automotive brand.

During the launch, there were two models on display: the Enforcer SUV and the Xylo MPV. The Enforcer, available in four variants, and the Xylo, with one, are priced as follows: Enforcer Single Cab 4x2, P650,000; Enforcer Single Cab 4x4, P795,000; Enforcer Double Cab 4x2, P750,000, Enforcer Double Cab 4x4 , P895,000; and Xylo MPV, P850,000.

The Enforcers are all powered by a 2.5-liter four-cylinder turbo-diesel engine, which cranks out 100 hp of power and 240 Nm of torque, while

the seven-seater Xylo has a 2.2-liter four-cylinder diesel engine with a variable-geometry turbo rated at a healthier 120 hp and 280 Nm. “We are looking forward to seeing more and more Mahindra vehicles in the country,” an elated Mabilog shared. “With a growing dealership network, our customers can be rest assured that their Mahindra vehicles will always be in tip-top condition.”

Aside from the aforementioned, the AMC president also presented the new basketball team called the “Mahindra Enforcers,” who will be a force to be reckoned with when it plays in the next season of the Philippine Basketball Association. The team is a revamp of the Kia Carnivals, which played under the same group of companies.

Mahindra & Mahindra is a $16.5-billion group based in Mumbai, India, which employs more than 180,000 people over 100 countries.

It currently enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defense, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and twowheeler industries. Aside from the initial dawn of successes in the country, this writer deems that they also ought to pray for steady growth and years of favorable local outcomes.

been flying loyal customers, or advocates, to South Korea for an all-expense-paid tour of Seoul and of the Korean auto giant’s Global Headquarters and Hwaseong Plant.

Kia Advocates come from all over the world and locally, Columbian Autocar Corp. (CAC), the exclusive distributor of Kia Motors in the Philippines, has always received tremendous support and

enthusiasm from Filipino Kia supporters. CAC After-Sales Director Apollo R. Rosal, expressed that Kia Advocate is “one of the most awaited annual programs of Kia” and that it has consistently been a good gauge of what customers really think and feel about the brand. He also shared more about the program specifics. “I’m very happy to announce that, for the entire

month of July, loyal Kia customers can share blog entries about their own Kia experience or document their passion for Kia cars on www. kia.com. These will all be judged by CAC executives and one winner will be chosen.”

Rosal further explained that another advocate will be chosen based on the number of Kia vehicles he or she owns; the frequency of visits to

ESPITE the differences in the world’s religions, Hinduism prevailed mostly in India and Nepal with about 900 million adherents worldwide. Most prevalent among Hindus’ beliefs is their devotion to the elephant god, “Ganesha,” patron of the arts, sciences, and bringer of success and new beginnings.

And perhaps, new beginnings are what the local distributors of the Indian carmaker, Mahindra, prayed really hard for as the brand officially entered our shores, anew.

Now back with a vengeance from its stumble in the 1990s, India’s current leading sport utilityvehicles manufacturer, Mahindra & Mahindra Ltd. (M&M Ltd.), through its local channel partner M/S Colombian Motors, a large conglomerate and a respected name in the country, kick-started its opening campaign with a strong foray of 1,470 Mahindra Enforcers, which were supplied

K

IA believes that loyalty is a characteristic worth rewarding. While it is the goal of every company to develop good customer relations and earn the public’s unwavering trust, it is also important for brands to actively recognize their supporters and reward them in return. Such is the idea behind Kia Advocate Program.

For many years now, Kia has

ASIANBRANDS Motors Corp. head Honcho Felix Mabilog

THE new Philippine Basketball Association team “Mahindra Enforcers” is introduced to the public.

a different level and on a larger scale. The promo will run until July 31 only so be sure to check out print ads and Kia Motors Philippines’s web site and socialmedia accounts for more details.

You might just be one of the three lucky and loyal Kia advocates, together with a companion each, who will soon have an incredible five-day sojourn to Seoul, South Korea.

MOTORING

RIVALS IN CHECK Sports

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DOCTORS REMOVE BASSO’S TESTICLE

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| FRIDAY, JULY 17, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

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URGEONS have removed the left testicle of two-time Giro d’Italia winner Ivan Basso, Alberto Contador’s teammate who left the Tour de France this week after doctors diagnosed a tumor.

Milan’s San Raffaele hospital says the operation on Wednesday went well and the 37-year-old is “already in great condition” and will be discharged on Thursday.

The hospital’s statement says “the long-term prognosis for this type of testicular tumor is excellent.” nnn

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HE manager of Chris Froome’s team suggests that in addition to drug tests, cycling perhaps also should start analyzing all riders’ performance data in its battle to convince skeptics that doping is no longer widespread in the sport.

Calculating how much power riders generate with their pedal strokes is again a hot topic as Tour observers seek to understand why race leader Froome is crushing his rivals. Video posted on social media this week purported to show his heartbeat, power and other performance numbers on a brutal climb at the 2013 Tour, which he won.

After Stage 11 finished with Froome still comfortably leading, Sky Manager Dave Brailsford said analysis of such data “should be left to the experts.”

Brailsford suggested cycling could “move toward a power passport,” where all “teams could give their power data to experts” so “that way everything would be clear.”

KEEPING RIVALS IN CHECK

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N the bumpiest day of riding in the Pyrenees, Rafal Majka of Poland has won with a daring solo effort, giving his Tinkoff-Saxo team its first stage win at this year’s Tour de France.

The 25-year-old Majka surged away on the ascent of the Tourmalet, the toughest of six climbs on Stage 11. He rode alone over the high-mountain pass, at an altitude of 6,939 feet, and clung on to his lead for nearly 40 kilometers to win at Cauterets.

The teammate of 2007 and 2009 champion Alberto Contador is a recognized climber after winning the polka dot jersey for climbing at his first Tour in 2014, when he also won two stages.

Behind him, race leader Chris Froome was looking to conserve energy and stay safe after his stage win on Tuesday that put the leader of the Sky team in firm control of the race. nnn

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TOUGH day of mountain riding up six ascents under the sun is proving too much for some at the Tour de France, with organizers announcing that six riders have dropped out well before the finish at Cauterets.

The Lampre-Merida team has lost Rui Costa, its leader from Portugal, on Stage 11. French team AG2R La Mondiale is down two riders, Johan Van Summeren and Ben Gastauer.

Organizers say German rider Dominik Nerz, leader of the BoraArgon 18 team, and Astana’s Rein Taaramae, from Estonia, have also abandoned, and a crash ended the Tour of Italian rider Daniele Bennati of the Tinkoff-Saxo team.

At the start on Wednesday in Pau, 183 riders set off on the 188-km trek. nnn

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NE of Chris Froome’s rivals has complained that the British rider’s team is being overly aggressive in protecting the Tour de France leader.

Steve Morabito, a rider on the FDJ team, says “some punches and elbows were thrown” as Froome’s teammates with Sky positioned themselves at the front of the peloton for the last climb on Stage 10.

Froome handily won that stage in the Pyrenees, putting him in control of the race for Wednesday’s Stage 11, which was another trek through the mountains straddling France and Spain.

In a video posted on the team’s Twitter feed, Morabito said FDJ “had a spot at the front” at the foot of the long climb to the La PierreSaint-Martin ski station and that Sky riders “were very aggressive in repositioning themselves.”

He complained that the tactics weren’t “very fair,” saying “that’s not my vision of cycling.” Morabito, who isn’t a contender for victory, appealed for “a bit of calm,” noting that the Tour is only in its second week.

Sky riders led Froome up the first portion of Tuesday’s ascent before he accelerated to win. AP

AUSTRALIA’S Richie Porte, wearing the best climber’s dotted jersey, and Britain’s Geraint Thomas lead the pack as they climb toward Tourmalet pass during the 11th stage on Wednesday. AP

Many seasoned race observers say it will take nearly a miracle for Chris Froome’s main rivals to topple him before the race ends on Paris’s Champs-Elysees on July 26.

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B J K The Associated Press

AUTERETS, France—Tour de France leader Chris Froome understands those who harbor doubts about his dominant performances in a sport long marred by doping. Maybe, he says, it’s time to bring in an independent specialist to test his body and help prove that he’s riding clean.

The 30-year-old Briton cruised through a second day in the Pyrenees mountains on Wednesday, finishing more than five minutes behind Stage 11 winner Rafal Majka of Poland but keeping his main rivals in check.

The bumpy, grueling ride under a hot sun came a day after Froome blew away the pack, prompting new suspicions about doping. Ironically, it came as Lance Armstrong—who was stripped of seven consecutive Tour titles—was to return to French roads nearby, even though he’s persona non grata at the Tour de France.

Armstrong was to take part in charity rides on Thursday and Friday to raise money to fight leukemia, taking the same route that Tour riders will cover a day later.

Froome brushed off Armstrong’s visit as a “nonevent,” noting that “he’s not on the start line with us.”

However, Armstrong’s presence is a reminder that any Tour leader can expect to come under at least some suspicion. To deal with that, Froome is willing to take testing even further.

“I’m open-minded to potentially doing some physiological testing at some point after the Tour, or at whatever point suits,” the Briton said.

“Obviously, there would be some interesting things that come out of it, and maybe as a team we might even learn something from it.”

Speaking to French TV, Froome said he does “sympathize” with people who have their doubts about him, adding: “It’s a normal question to ask” given the sport’s history. But he emphasized his hard work—sometimes from 6 a.m. to 10 p.m.—and decried a “lack of respect” shown by some.

Arriving in France on Wednesday, Armstrong acknowledged to British broadcaster Sky News that he bore some responsibility for the spotlight now being trained on the Briton.

“I know what it’s like for a guy like Chris to be in the middle of a Tour to deal with the constant questions, which of course he is. And to be fair and to

be honest to him, a lot of that is my fault,” Armstrong said.

However, Froome and his team are ready to take on the skeptics.

“Best moment of my day was stopping to have a chat to a guy calling me a doper on the way way back to the bus,” tweeted Sky’s Richie Porte, a key mountain guide for Froome in the race, after Wednesday’s stage. The Australian went on to use an expletive suggesting that he had scared off the critic.

The day’s glory, meanwhile, went to Majka, a 25-year-old Pole whose solo breakaway left behind a small group of rivals. The victory was the first for his strong Tinkoff Saxo Bank team and offered some redemption for the squad whose leader, two-time Tour winner Alberto Contador, has been struggling in this year’s race.

Majka presented little threat to Froome. He had begun the 188-kilometer stage from Pau to Cauterets more than 44 minutes behind.

Majka, who last year won the polka dot jersey awarded to the race’s best climber, burst out of a breakaway bunch on the way up the Tourmalet pass—the highest and most frequently visited Tour peak in the Pyrenees— and was the first over it.

The results had little impact on the overall standings. Froome leads Tejay van Garderen of the United States, who is second, by two minutes and 52 seconds, while Nairo Quintana of Colombia is third, 3:09 back. Contador is sixth, 4:04 off the Briton’s pace.

Defending Tour champion Vincenzo Nibali trailed more than six minutes behind Majka, again losing time to Froome.

Many seasoned race observers say it will take nearly a miracle for Froome’s main rivals to topple him before the race ends on Paris’s ChampsElysees on July 26.

Appropriately enough, Stage 11 took the pack into the Roman Catholic shrine town of Lourdes, made famous because of a peasant girl’s visions of the Virgin Mary over 150 years ago.

Livestock on the sun-baked, grassy mountainsides offered their own hazards for the speeding racers. France’s Warren Barguil had to gingerly veer to the edge of the road on the fast downhill route from the Tourmalet as a pair of cows meandered across the road.

Thursday’s finale in the Pyrenees offers more punishment, with a 195-km trek from Lannemezan to the Plateau de Beille ski resort, featuring another uphill finish.

SPORTS SPORTSC1 A CHILD high-fives with Britain’s Christopher Froome and his teammate, Australia’s Richie Porte, wearing the best climber’s dotted jersey, before Wednesday’s race. AP

percent economic growth posted by the country in the first quarter and the ADB’s decision to downgrade its growth estimates for developing economies like China and Indonesia, as well as regions such as East C  A

GREECE SEEKS RELIEF FROM E.U. LENDERS AFTER BAILOUT TEST

MAHINDRA top executives undertake the ribbon-cutting ceremonies.

a Kia authorized service workshop for vehicle maintenance or repair; and his or her participation to all CAC After-Sales programs.

In its core, the Kia Advocate Program simply aims to strengthen relationships that the brand already established with loyal patrons. Consequently, it provides an opportunity for people to experience the Kia brand on

NCREASED election-related spending for the presidential polls next year is expected to boost consumption this year and in 2016—giving the Asian Development Bank (ADB) enough reason to maintain its growth forecast for the Philippines this year and in 2016—despite the subpar economic output in the January-to-March period.

In a supplement to the Asian Development Outlook report, the Manila-based multilateral development bank kept its growth forecast for the Philippines at 6.4 percent this year and 6.3 percent next year.

This is despite the sluggish 5.2-

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

WHILEELECTIONRELATEDSPENDING WILLBOOST GROWTH, CHALLENGESLIKESTATEUNDERSPENDING REMAIN

INSIDE

EAR Lord, the smile on our face doesn’t mean our life is perfect. We just appreciate what we have and what God has blessed us. The smile on our face simply shows we can strive for more glories because of hard work and to inspire others do the same.

The smile on our face spells out the difference of what we can create of what is life all about. The smile on our face is the image and likeness of God shining on us to make others be good and happy. The smile on our face looks for other smiling faces looking for peace, unity and love. Amen.

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REECE’S troubled left-wing government is seeking urgent relief from European lenders on Thursday, a day after it pushed a harsh austerity package through parliament, triggering a revolt in the ruling party and violent demonstrations in central Athens.

Finance ministers from countries using the euro currency will hold a conference call to consider rescue financing for Greece, while the European Central Bank will mull a request from Athens to increase emergency assistance to troubled Greek banks that have been closed since July 29.

In a post-midnight vote, Greece’s parliament voted 229-64 to implement more austerity measures that include pension cuts and sweeping

PESO EXCHANGE RATES n US 45.2000

sales-tax hikes. But the large majority was provided by pro-European opposition parties and in spite of deepening dissent within Prime Minister Alexis Tsipras’s left-wing Syriza party.

Thirty-eight party lawmakers defied Tsipras—nearly one-in-four —including Tsipras’s powerful energy minister, the speaker of parliament and Yanis Varoufakis, the former finance minister who headed Greece’s bailout strategy until his replacement 10 days ago.

The government described the vote as marking a “serious division” among its lawmakers, and indicated that dissenters in Tsipras’s Cabinet would be swiftly replaced in a Cabinet reshuffle.

S “G,” A

BOOSTING SMALL BUSINESSES (From left) Philippine National Bank Executive Vice President (VP) Jun Audencial Jr.; Go Negosyo Founding Trustee Joey Concepcion; Philippine Long Distance and Telephone Co. EVP and ePLDT President and CEO Eric Alberto; PLDT First VP and Head of SME Business Kat Luna-Abelarde; Philippine Retailers Association Vice Chairman for International Relations Bobby Claudio; and Google Country Manager Ken Lingan lead the ceremonial toast during the launch of the PLDT SME Nation Small Business Month and declare July as Small Business Month in Makati City. See story on B1. ROY DOMINGO

NCC still aiming for upper third rankings B C N. P

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HE National Competitiveness Council (NCC) is maintaining its target of raising the country’s competitiveness to the upper third of rankings in 2016, but concedes it remains a far-off goal for the Philippines.

NCC Private Sector Chairman Guillermo Luz made the statement as he gave updates on the Philippines’s improvement in four of the

12 international competitive reports that the NCC tracks.

“The first four [reports] have released their findings earlier this year.We have improved our rankings modestly in all four. We have moved up eight positions in the Heritage Foundation’s Economic Freedom Index to No. 76 [out of 178]. We also moved up two positions to No. 76 [out of 143] in the World Economic Forum’s [WEF] Global Information Tech-

nology Report, up eight to No. 74 [out of 141] in the WEF Travel and Tourism Report and up one to No. 41 [out of 60] in the IMD World Competitiveness Yearbook,” Luz said in a statement.

While the Philippines has managed to scale up from the bottom third of most global rankings, Luz concedes that “we’re still quite a ways off of our target of moving into the top third by 2016.”

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n JAPAN 0.3652 n UK 70.6973 n HK 5.8322 n CHINA 7.2795 n SINGAPORE 33.1038 n AUSTRALIA 33.3481 n EU 49.4850 n SAUDI ARABIA 12.0524 Source: BSP (16 July 2015)

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News

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Friday, July 17, 2015

ADB keeps PHL growth forecast Continued from A1

Asia and Southeast Asia. “Electionrelated spending is expected to boost domestic demand through May 2016, when elections will be held. Risks to the outlook include weaker-than-expected recovery in the major industrial economies and continued slow public spending despite government measures taken to improve budget execution,” the ADB said.

The bank explained that the lackluster first-quarter economic growth of the Philippine economy was traced by the government to low exports growth and government spending.

Elections. . .

In the first quarter, data from the Philippine Statistics Authority showed that public construction contracted 24.6 percent from January to March from a growth of 17.5 percent in the same period in 2014.

Apart from the contraction in construction spending, the economy also took a hit from the contraction in net exports of 1.8 percent. This was largely due to the slowdown in both exports and imports growth to 1 percent and 4.6 percent, respectively.

“Sluggish government expenditure is attributed to slow budget disbursement and caution

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“We have done this before, being the first mall to have been made into a voting center in the last elections and this is another opportunity for us to give our customers all the convenience, especially at a most crucial period in our country,” Garcia said.

SM Supermalls is currently hosting Comelec’s biometrics registrations in all its 52 malls all over the country.

Over the weekend, Robinsons Malls expressed its support to the plan of the Comelec to conduct mall-based voting next year. This was after Bautista revealed that their “preliminary study” on the proposal indicate that mall-based voting can be done under existing laws.

In a related development, the Comelec is set to establish special mall-based satellite voter registration for PWDs and senior citizens on Friday in select SM malls nationwide.

The Comelec said this is in line with the country’s celebration of the 37th National Disability Prevention and Rehabilitation Week.

“There will be special satellite voter registration for the general public, with priority given to PWDs and senior citizens,” Comelec Spokesman James Jimenez said in a separate statement.

NCC. . .

exercised by agencies following Supreme Court rulings in November 2013 and July 2014 that found some public funds unconstitutional,” the ADB added.

The ADB also projected 2016 gross domestic product growth for the region to come in at 6.2 percent, down from 6.3-percent forecast previously.

ADO is ADB’s flagship annual economic publication.

After a slow first half, full-year 2015 growth in China is now estimated at 7 percent, down from 7.2 percent previously, and will ease further to 6.8 percent next year, the ADB estimates.

The bank said Southeast Asia

will see slower-than-previously forecast growth of 4.6 percent for 2015, weighed down by lowerthan-expected first-half performances in Indonesia, Singapore and Thailand.

In 2016 the subregional economy is projected to expand 5.1 percent, below the 5.3 percent estimated earlier.

The ADB said the softness in fuel prices and subdued food costs are containing inflationary pressures for now, with the projection for 2015 consumer price hikes revised downward to 2.4 percent from 2.6 percent earlier. Inflation is seen at 3 percent in 2016, unchanged from the previous forecast.

Continued from A1

The Philippines is now in the middle of most competitiveness reports on a global scale and within Asean. However, Luz said the target is still within reach now, as more government agencies are collaborating, especially in easing doing business in the country and in the wider participation in its Cities and Municipalities Competitiveness Index (CMCI).

“Nonetheless, I am optimistic of continuous improvement. We’re maintaining the target,” Luz added.

Manila, meanwhile, edged Makati as the most competitive city in the highly urbanized cities segment of the NCC’s CMCI. The country’s most competitive cities and municipalities were lauded during NCC’s Third Regional Competitiveness Summit held at the Philippine International

Convention Center.

The ranking is based on three major factors: infrastructure, government efficiency and economic dynamism.

Each factor has its own set of indicators, and these are totalled to rank the overall competitiveness of cities and municipalities.

The rankings are based on the data submitted by the cities and municipalities. In the overall competitiveness category, Manila emerged as the most competitive highly urbanized city, followed by Makati and Cebu.

Manila had an overall score of 54.96, while Makati scored 54.41.

Cebu’s score was 51.18.

Manila’s 2014 ranking was at a distant 8, since highly urbanized and component cities were combined in one category in the 2014 Index.

According to Luz, Makati fared well in economic dynamism and government efficiency but lagged infrastructure.

Makati got the second spot in economic dynamism and third in government efficiency; in the infrastructure category was at sixth spot.

Manila, on the other hand, was behind Makati in economic dynamism and government efficiency (at fourth and seventh) but compensated in terms of infrastructure as it topped that category.

Among component cities,or cities within provinces, Naga was the most competitive city followed

by San Fernando and Imus. Among provinces, Davao del Sur, was at the top spot, with Misamis Oriental, and Cebu, were at second and third.

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Neda. . .

Continued from A8

It will also include the production of vital statistics and will make the CRS available nationwide through the CRS outlets and other authorized partners.

Once the project is awarded to a winning bidder, the private sector firm will operate and maintain the project for a period of 12 years. This includes the estimated two years of development.

The Neda Board also approved the change in the alignment of the Naia Expressway Project Phase II to the Parañaque Electrical Road from the Domestic Road.

The transfer is consistent with the Department of Public Works and Highways’ (DPWH) recommendation but will require an additional cost amounting to P2.07 billion.

This will bring the total project cost of the Naia Expressway to P17.93 billion. The project was confirmed by the Neda Board on May 30, 2012.

The project, awarded to San Miguel’s Optimal Infrastructure Development Corp., is already under implementation. As of June 2015, the construction is ongoing and is 47.98-percent complete.

The Neda Board also approved the change in scope of the P2.01-billion Daang Hari-Slex Link Road Project, the first PPP awarded under the Aquino administration.

Greece. . .

The change in scope involves the construction of additional civil works to improve access to and from the road link project. This will cover links that can be used for the future expansion of the Slex such as a possible fifth lane.

This will require an additional cost of P223.02 million. The additional cost will raise the new cost of the project to P2.23 billion.

“This [change in scope] is supported by the Toll Regulatory Board’s October 29, 2012, letter to the DPWH citing that Slex was already under Level of Service C and would eventually reach critical level by the year 2018,” Neda said.

The project is being constructed by the Ayala Corp. and is already 99-percent complete. The project, which was approved by the Neda Board in July 2011, is expected to be completed this month.

“President Aquino presided over the meeting of the Neda Board [Wednesday] afternoon focusing on vital public infrastructure projects that seek to spur further economic development,” Commnications Secretary Herminio B. Coloma Jr. said.

At the same time, Coloma reported that the Neda Board calendared for further discussions the Bonifacio Global City and Ortigas Road Link Project, which will decongest traffic on Edsa and C-5. With Butch Fernandez

Continued from A1

Greeks have seen a dramatic decline in living standards since the debt-plagued country lost market access in 2010 and had to impose severe spending cuts in exchange for bailout loans from euro zone countries and the International Monetary Fund.

Before the austerity vote, some 12,000 demonstrators gathered outside parliament in the biggest protest against the government since Tsipras won elections in late January.

The rally turned violent and

several hundred youths attacked police, torched cars, and smashed office displays. Police said about 50 people had been detained during the hour-long clashes that involved youths hurling rocks and petrol bombs outside parliament, and riot police responding with tear gas and baton charges. Tsipras said he had little choice other than to accept the harsh terms offered by lenders for the new three-year bailout worth €85 billion ($93 billion). AP

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The Nation BusinessMirror

New police chief vows to observe meritocracy

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IRECTOR Ricardo Marquez assumed on Thursday the leadership of the Philippine National Police (PNP), vowing to improve crime by sending policemen into the streets and strictly observing meritocracy.

Marquez, the erstwhile chief of the PNP directorate for operations, was installed by President Aquino as the 20th chief of the PNP, replacing Deputy Director General Leonardo Espina, who retired from service.

Marquez is a member of the Philippine Military Academy (PMA) Class of 1982. He was promoted on the spot by Mr. Aquino to the rank of director general (four-star), a rank that was held by dismissed PNP chief Director General Alan Purisima.

“While we have developed the methodology to deliberately reduce crime, as evidenced by the decreasing trend in crime statistics in certain areas, the reality is that the fear of crime remains in the hearts of our citizens, especially our mothers,” Marquez said in his assumption speech.

“We have tried several crime- prevention measures in the past without much success. I believe it is high time to go back to the basics of policing and institutionalize the implementation of patrolling nationwide,” he added.

In order to make the patrolling effective, Marquez immediately ordered for the “systematic dispersal” of personnel from the national, regional and provincial offices to police stations based on the developed patrol plan.

The new PNP chief said he would implement nationwide the Oplan Lambat-Sibat, the anticrime campaign currently implemented in Metro Manila and in Central and Northern Luzon, because of its “impressive results.”

This is to “address the issues of accurate crimeincident recording, effective crime-fighting operations and efficient crime solution.”

Marquez said meritocracy should guide him in

designating officials to positions while punishing those who are unworthy of their “oath,” even as he assured officers coming from the Philippine National Police that they will get their fair share in running the police organization.

“I envision meritocracy in the PNP as a proverbial double-edged sword. Its first cutting edge addresses not only the imperative for excellence, but also the perceived bias against non-PMAers for appointment to key positions,” he said.

“I hereby order the DPRM [directorate for police records and management] to constitute a study group composed of representatives from all sources of commission, plus a human-resources expert from the private sector, to work on the mechanics of a competency-based selection, placement and promotion system that is suitable, fair and reliable. This shall guide higher authorities in making informed decisions when they appoint police commanders,” he added.

A rift is plaguing the PNP after nongraduates of the PMA, like those coming from the PNPA, accused PMA graduates of favoring their academy peers over key positions in the police organization.

“Let me make this very very clear: Do your job well and you will be rewarded. If you are threatened or endangered in the line of duty, I will be there for you,” Marquez said.

On the issue of gun licenses, which caused the suspension of Purisima and his removal later on from the service by the Office of the Ombudsman, Marquez said he would decentralize the service.

Marquez’s first order was for the Directorate for Operations and Firearms and Explosives OfficeCivil Security Group “to develop a comprehensive plan to decentralize these activities to the regional centers and major urban areas as provided for by law.” Also, he “earnestly” requested the National Police Commission for the immediate approval of his recommendation “to set up regional offices in preparation for decentralization.” Rene Acosta

Editor: Dionisio L. Pelayo • Friday, July 17, 2015 A3

No ‘pork’ in our budget–DND

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HE Department of National Defense (DND) denied allegations made by former Sen. Panfilo Lacson that the agency’s budget contained lump-sum appropriations.

The DND statement on Thursday said the agency does not have a P66.4-billion lump-sum allocation as alleged by Lacson.

Instead, the DND said it was given a P55.4billion worth allocation in the Lump Sum Appropriations under the General Appropriations Act (GAA) of 2015.

The amount, the DND said, is held by the budget department and will be subject to the issuance of a Special Allotment Release Order when certain conditions are met.

“As we have always reiterated, the Department of National Defense is transparent with all of its programs, most especially its budget appropriation. This in line with Defense Secretary Voltaire T. Gazmin’s directive to the department to ensure all its affairs are aboveboard and in accordance with law,” the DND said.

The agency explained that since the total number of veterans and retirees would be difficult to predict accurately, the lump-sum funds will help cover the gap for their pensions. The DND said around P42.38 billion of the appropriation will be for the Pension Gratuity Fund. Of

this amount, around P32.48 billion is allocated for pensioners and retirees in the General Headquarters while P9.9 billion is for the Philippine Veterans Affairs Office.

The remaining amount of P13.02 billion will be divided between the Miscellaneous Personnel Benefit Fund (MPBF) and unprogrammed projects under the Armed Forces of the Philippines Modernization Program.

The MPBF is estimated to amount to P2.02 billion, while the unprogrammed projects under the AFP Modernization Program will amount to P10 billion.

In its statement, the DND added that another P10 billion is provided for in the GAA to fund the benefits of military and civilian personnel of the AFP, who will avail themselves of optional retirement from the service.

However, the BusinessMirror’s computation showed that with the additional P10 billion, the total lump sum amount would reach P65.4 billion, almost equal to the lump sum alleged by former Lacson. Cai U. Ordinario

Terrorist group’s key officer slain

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NE of the key leaders of the Abu Say yaf Group (ASG) wanted for string of criminal cases, including kidnapping, was killed on Wednesday in a firefight with soldiers in Sulu, the military said.

Col. Alan Arrojado, commander of the Armed Forces of the Philippines’s Joint Task Group Sulu, identified the ASG leader as Mahmur Jupuri, alias Mahmur. Arrojado said there’s a standing warrant of arrest for Jupuri for murder, kidnapping and illegal detention.

Jupuri was killed after shooting it out with government forces who were serving the warrant issued against him by the Regional Trial Court, Branch 3 at Barangay Poblacion, Indanan, Sulu.

Taken from Jupuri was a .45-caliber pistol, a magazine and ammunition, the military said.

Arrojado said Jupuri was a leader of the ASG in Sulu and has been behind the series of kidnapping in the province.

“Likewise, Jupuri was also involved in the kidnapping of a Malaysian couple on May 14, 2015, in Sandakan, Malaysia,” the local military commander added.

The ASG has been known to snatch victims in Malaysia, including in the islands of Sandakan and Malaysia, and take them to Sulu where they negotiate for the release of their victims through the payment of ransom money. “The Joint Task Group Sulu alerted all units to preempt any escalation,” Arrojado said. Rene Acosta

Economy

A4 Friday, July 17, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Govt rural-electrification program hits 78% of target

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By Lenie Lectura

he National Electrification Administration (NEA) said on Thursday that it has made electricity available to 4,744 more sitios in rural areas during the first semester of the year, bringing to a total of 25,257 sitios electrified.

Under the Sitio Electrification Program (SEP), the state-run agency has committed to electrify 32,441 sitios until the end of President Aquino’s term in June 2016.

So far, it has achieved 78 percent of the target, utilizing P14.6 billion, or an average of P578,411.72 per sitio.

“The provision of electricity to unenergized sitios through the SEP is part of the Aquino administration’s social contract with the

Businessmen asked to be ‘imaginative’ in disaster preparation

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ith the Philippines being prone to natural disasters, businessmen need to be more imaginative to prepare for the worst-case scenario and ensure business continuity.

This was stressed by Philippine Institute of Volcanology and Seismology (Phivolcs) Director Renato Solidum during a business forum in Makati City on Thursday.

Solidum was tapped to discuss the Valley Fault System and the threats in case of movement that could generate a strong earthquake.

By imagining the potential impacts of natural calamities, such as a strong earthquake, he said businesses will be able to identify problems and come up with the right solutions and save lives.

He said businesses should build strong structures for their business that will be resilient to natural calamities. Citing various studies, he said a strong earthquake can cause buildings to collapse, trigger tsunami and disastrous fires.

Solidum also said existing buildings need to be inspected and reinforced at least noting that many structures were constructed without proper engineering intervention.

He said a good evacuation plan in case of disaster is one way of saving lives and minimizing injuries.

He said critical facilities, including water, power and telecommunications should be sec u red a nd a lter n atives should be identified and prepared.

Even in the office, Solidum said employees should have emergency kit or a bag filled with emergency food, water, f lashlight, cellular phone, clothing and medicine.

T he f or u m , at t e nd e d by business owners, franchisers and managers, was organized to help businesses prepare for the worst case scenario in case of a 7.2-magnitude earthquake.

Filipino people. Hence, various strategies are being instituted to fast-track SEP implementation for all Filipinos to enjoy the benefits of electricity soon,” NEA Administrator Edita S. Bueno said.

The NEA and its partner-electric cooperatives (ECs) have electrified these far-flung sitios benefitting initial consumers of 142,329, or 711,600 Filipinos nationwide through the SEP. For the period, Region 6 (Western

Visayas) energized the most number of sitios at 680. Among the ECs, Cebeco I electrified the most number of sitios with 237.

Other ECs which contributed the most are Zamsureco I (173); Dasureco (158); Noneco (145); Quezelco I (140); Cenpelco (140); Anteco (136); Sukelco (123); Noreco I (122); and Panelco I/Kaelco (119). Regions 3 (Central Luzon) and 4A (Calabarzon) have posted the highest SEP accomplishment at 89 percent.

The co-ops which have energized the most number of sitios are Ormeco (895); Cebeco I (845); Ifelco (687); Dasureco (623); and Camelco (566). Eleven ECs, meanwhile, have fully accomplished their SEP targets. These are Inec (18); Panelco I (335); Batanelco (15); Penelco (44); Pelco II (15); Pelco III (3); Zameco II (30); Batelec I (28); Aleco (39); Banelco (147); and Lasureco (62).

Other NEA programs, Bueno said, include house-wiring and installation cost for initial 30 households, which were eventually increased to

60 households; accredited regional technical evaluators; created Sitio Implementation Unit in the Electric ECs; encouraged participation of civil-society organizations; issued unbundled price index of 5 MVA and 10 MVA substations; and seriously complied with the Commission on Audit rules and regulations.

It has also launched its BuildBack-Better Program this year with the issuance of policy and implementing guidelines designed to facilitate project implementation.

Likewise, the ECs have partnered with private organizations; enhanced basic regional services, such as procurement, training of additional linemen and electricians; signed memorandum of agreement between EC and local government units to ease compliance requirements; conducted parallel premembership activities; membership application and assistance to potential consumers; and realigned new projects or turned over to NEA excess electrification funds.

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‘US assets of Napoles should return to PHL’

By Jovee Marie N. dela Cruz

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lawmaker said on Thursday that the supposed $12.5-million US assets of alleged porkbarrel scam mastermind Janet LimNapoles should be forfeited in favor of the Philippine government.

Bayan Muna Rep. Neri Colmenares said the $12.5-million assets of Napoles should be used “for the upliftment of poor Filipino families.”

On Tuesday the US Justice Department moved to seize $12.5 million worth of US properties belonging to Napoles, saying the department will not allow the US to become a playground for the corrupt or a place to hide and invest stolen riches.

“It should be the Filipino people who should benefit from this and not foreigners. He also called on the Philippine government to work overtime to look for other assets of Napoles in other countries so that they would be recovered for the people,” Senior Deputy Minority Leader Colmenares said.

“If the $12.5-million assets of Napoles are given back to the Filipino people, it would mean P600 million that could provide medical assistance and education to thousands of poor Filipinos who have no access to health

COLMENARES: “I also hope that the US Justice Department, along with other state agencies, would work double time in finding other assets of Napoles stateside so that these will also be returned to the Filipino people.”

and education,” he added. Napoles faces charges of graft and plunder in connection with P10-billion pork-scam case, along with Senators Juan Ponce Enrile, Jinggoy Estrada and Ramon Revilla Jr. “As Assistant Attorney General Leslie Caldwell of the Justice Department said, they will not allow the US to become a playground for the corrupt, and I hope that we can immediately discuss the speedy Napoles asset-recovery proceedings in favor of the Philippines because it is gravely needed by our people,” Colmenares said.

“I also hope that the US Justice Department, along with other state agencies, would work double time in finding other assets of Napoles stateside so that these will also be returned to the Filipino people,” he added.

BOC nabs P14M of smuggled construction materials

By Joel R. San Juan

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HE Bureau of Customs (BOC) announced on Thursday the seizure of some P14 million worth of illegally imported goods that arrived in the Port of Manila in various occasions.

The alleged smuggled shipments contained ceramic tiles, sanitary wares, circuit breakers, steel sheets and resin, among others and were seized by the bureau on grounds of technical smuggling in violation of the Tariff and Customs Code of the Philippines (TCCP).

The ceramic tiles and sanitary wares were contained in a seven 40foot container vans and consigned to Linking Enterprises.

The shipment arrived from China through the Port of Manila in January, but was confiscated by the BOC following an issuance of an alert order on the shipment by the bureau’s Enforcement Group.

Customs personnel conducted a document and physical examination and found out that the shipment was grossly undervalued and misdeclared in weight by more than 30 percent.

In its import documents, the importer declared the shipment’s volume at 121,720 kilograms with the declared value at P216,139.

Upon examination, it was found that the shipment’s actual volume is 174,362.80 with a value of P529,382, or a difference of P313,243, or 59 percent.

The bureau also seized a container van of circuit breakers that had also been grossly undervalued by as much as 84 percent.

The shipment arrived in the Port of Manila from Japan in March 2015 and was consigned to Fortress Kinetic Electrical Enterprises.

The BOC also seized two container vans of steels sheets, dryer machine, molding machine, polycarbonate and pigment, which are used to produce galvanized roofs, and were seized due to a discrepancy in weight of more than 30 percent.

LEVEL PLAYING FIELD RJ David, cofounder and managing director of classified ads web site OLX Philippines, says the company is currently focusing on leveling the online classified ads landscape to provide users with equal buying and selling opportunities. NONIE REYES

There were also other items inside that were also not declared.

The shipment consigned to Aberjov Trading has an estimated value of P1.88 million.

The BOC also confiscated a 20foot container van of polyurethane resin, a raw material used in producing an array of products from ink to plastics, for gross undervaluation with the declared value of

Tesda offers 5,532 scholarships

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he Technical Education and Skills Development Authority (Tesda) has partnered with 14 technical-vocational (tech-voc) institutions to make available a total of 5,532 scholarship slots to poor but deserving students, who want to pursue tech-voc education.

A ceremonial turnover of the

scholarship vouchers was held on Thursday during the Scholars Day at the San Jose del Monte covered court, which was attended by the beneficiaries and representatives of tech-voc schools.

The beneficiaries were selected from Districts 1 and 4 and from the Lone District of San

only P97,538, while the actual value upon examination was P258,923 with a discrepancy of P212,595, or 63 percent. The shipment arrived at the Port of Manila in December 2014 from South Korea and was consigned to Richneil Marketing.

“Some importers and brokers try to cheat on paying the correct duties and taxes by dramatically lowering the value and misdeclare

the weight of the items they import. Let this be a lesson to them that any gross undervaluation and misdeclaration made on import entries is a form of technical smuggling and will be dealt with accordingly,” the BOC said.

Under Section 2503 in relation to Section 2530 of the TCCP, any discrepancy between what was declared and what was found that

exceeds 30 percent is gross undervaluation, which constitutes prima facie fraud.

The BOC said the items will be seized in favor of the government and the owners and licensed customs brokers of Linking Enterprises, Fortress Kinetic Electrical Enterprises and Richneil Marketing will be facing smuggling-related charges for the fraudulent importations.

Jose del Monte.

“Tesda scholars are almost always the ones who are burdened with limited resources, but who have the potential to be something more. We want to be at the right place at the right time for them,” Tesda Director General Joel Villanueva said.

The scholarships are under Tesda’s Training for Work Scholarship Program.

It aims to give training that would fill the skills gap and job requirements of priority industries and sectors with high-employment demand.

Villanueva said that Tesda continues to improve the reach of quality tech-voc education to the grassroots and works to encourage techvoc institutions to offer programs in qualifications that will cater to the demands of industries.

After training, Tesda offers free competency assessment to the graduates to ensure they have quality skills and are qualified to receive the National Certificate.

Certified graduates are also linked to potential employers through job fairs. The activity was organized with the Bulacan Association of Technical Schools and the local government unit.

Claudeth Mocon-Ciriaco

Economy BusinessMirror

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Gaming resorts to push host city’s revenues to record highs

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he entry of resorts and casino operators in Parañaque is seen to hike the city’s revenues to new record highs and sustain the robust growth in tax collection that reached P1.1 billion in 2013 and P1.3 billion in 2014.

Parañaque City Mayor Edwin Olivarez expressed optimism that the city’s annual income will tremendously increase this year and the succeeding years, as the city has become the country’s entertainment destination with the opening of the new world-class resort hotels in Parañaque.

He said this was indicated by several business investors that continue to move to Parañaque, as records in the early quarter of this year showed that the latest count was already at 20,000 establishments, with an estimated annual gross sales over P300 billion.

He added that there has been a substantial increase in the number of business registration last year that totaled to some 2,325, while renewal was at 17,122 for a total of 19,447 business establishments operating in the city.

When Olivarez assumed office in 2013, the Commission on Audit and the local treasury informed him that the previous administration has an outstanding loan of P2 billion with the Land Bank of the Philippines and another P2.7-billion cash deficit.

Olivarez noted the massive developments taking place in the city, which is why investors are pouring in huge capital with an estimated amount of over $10 billion in the Entertainment City situated along the coastal road of Parañaque.

“The development in the city led to the generation of job opportunities wherein hundreds of city residents were hired that added to millions of pesos to the city coffers through tax collections,” the mayor explained.

He said the City of Dream Manila Resort, an electrifying, innovative and diverse entertainment destination, that opened in February, played a major role in the development of the city.

The newest world-class gaming resort in the country has a total of six hotel towers, as well as entertainment amenities being developed by Melco Crown Philippines and Sy Group’s Premium Leisure Corp.

Olivarez said the expansion and increase of business shops of the Resorts World Manila (RWM), a modern live-work-play community zone in the country just across the Ninoy Aquino International Airport, will add significant income and economic growth to the city.

The first-termer mayor also said about a hundred local applicants were hired at RWM’s three hotels—the fivestar Marriot Hotel, Remington Hotel and its centerpiece, the luxury all-suite casino, Maxims Hotel.

He added that also in the pipeline of development in Parañaque is Ayala Land Inc.’s plan to build a P12- billion mall complex and a business-process outsourcing center, as well as a hotel within a 9-hectare property.

“It can create at least 10,000 more jobs for city residents and additional billions of pesos in permit fees and taxes for the city in the next three years,” he added.

Olivarez explained that aside from the taxes that they can generate from these multibillion-peso projects, “we can efficiently deliver the basic services, like school and hospital buildings and generate thousands of jobs to city residents.”

“Indeed, this decision by these reputable companies to move and do business in the city is a testament of their trust and confidence to the remarkable leadership of the mayor,” according to Mar L. Jimenez, Special Service Office chief.

Last year the city was adjudged as “2014 Most Economically Dynamic City” by the United States Aid for International, Department of Trade Industry and National Economic Development Authority.

Friday, July 17, 2015 A5

BOC taps PLDT unit in systems upgrade

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By Lorenz S. Marasigan

he Bureau of Customs (BOC) has tapped Cloud computing and data center services firm IP Converge Data Services Inc. (IPC) to improve the agency’s internal collaboration and information dissemination.

Under their partnership, the unit of Philippine Long Distance Telephone Co. will assist the Customs bureau in implementing Google Apps for Work through IPC’s system.

Specifically, Google Sites will be used to create an internal web site for

updates and new information accessible only to authorized personnel.

Che Lazaro, IPC director of salesGoogle for Work, said the agency can also take advantage of features, such as Google Drive, to store documents that need to be accessed by employees

easily, anytime and on any device, such as memos and announcements.

The licenses were provided through IPC and are distributed to the roughly 4,000 staff of the BOC. “Google Apps for Work allows real-time collaboration, enabling multiple users to work on a single document at the same time. This will eliminate multiple versions of one document, improve tracking and accountability, as well as cutting down time in finalizing reports,” Lazaro said.

BOC Management Information Systems and Technology Group Officer in Charge Angelica Sarmiento noted that the upgrade to Google Apps for Work is part of the digitization thrust of the bureau.

“The move will also make it possible for all employees of Customs to have more secure and reliable e-mail communication when using the bureau’s official business e-mail platform,” she said.

Sarmiento explained that Customs employees are very mobile as they can be assigned to any of the 50 ports in the Philippines.

“The upgraded messaging platform will allow them to access business e-mails from any device anywhere,” she said.

The transition to Google Apps for Work will also include creating a singular, centralized repository of all official memos and announcements accessible online.

“The new apps allows real-time

collaboration on Google Drive. Chat and video calls done through Google Hangouts enhance this feature. This way, everyone can work together over the same document and see the same information. This eliminates second-guessing and promotes faster response,” Sarmiento said.

Google Apps for Work, she added, has 99.9-percent availability and is a secure messaging and collaboration platform.

“These upgrades give the Customs employees a more reliable and secure platform that closely meet the global standards. The improved information sharing and communication capabilities will result in more efficient services to the public,” Sarmiento said.

DOTC awards final MRT 3 upkeep deal

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FREE PUBLIC WI-FI

The public-private initiative to provide free Wi-Fi access in public places is set for launch soon as announced by (from left) Science Undersecretary Louis Napoleon C. Casambre, e-Society Deputy Executive Director Beatrice G. Quimson and e-Innovation Deputy Executive Director Monchito B. Ibrahim on Thursday at the Department of Science and Technology office in Quezon City. NONOY LACZA

Weak political system blocking country’s development–experts

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he weak political system in the Philippines has been blocking the country’s full development, according to governance experts.

In a recent forum organized by Stratbase ADR Institute (ADRi) at Tower Club, Phil-Am Life Tower in Makati City, experts from academe, the private sector and civil-society groups cited the need for deep government reforms to strengthen the weak political system that has been stalling the country’s development and competitiveness.

“We have focused so much on personalities; we have lost substance and are wasting too much time in personal attacks, instead of debating on critical issues that would create much needed jobs and boost the country’s competitiveness in the Asean economy,” said Prof. Dindo Manhit, president of ADRi, during the Albert del Rosario’s Governance Forum.

Dr. Danilo Reyes, a professor at the University of the Philippines’s National College of Public Administration and Governance, said the country needs to tackle the issue of globalization, which has been transforming international arrangements and relationships in the world.

He said with the Asean regional integration, the country needs to conduct and pursue more research in understanding the nature of international bureaucracies and Asean connectivity.

Management Association of the Philippines Governor in Charge for National Issues Committee Gregorio Navarro said the Philippines needs to improve on a lot of areas to compete effectively in Asean.

Navarro said in the latest Corporate Governance Watch Asia, the Philippines ranked very low among

10 Asean countries in terms of corporate governance, particularly in the rule of law.

“Out of the highest possible rating of 100 points, we have 15, I think, in the rule of law. We don’t lack laws, rules and regulations, we just don’t know how to implement them,” Navarro said.

He said in his own personal survey among law firms where he asked how much corruption there is in the justice system, “the figure that I got from almost all of the lawyers I asked is 80 percent.”

Navarro said Brunei Darussalam, considered the best in the region in terms of facilitating tax payments, has a 20-percent income-tax rate. The number of taxes in Brunei is about 27, with a total tax rate of about 16.1 percent and it will take a taxpayer about 96 hours in a year to comply with the taxes.

In comparison, the Philippines has a 30-percent income-tax rate with 36 other taxes and a total tax rate of 44.5 percent. The country targets to reduce the number of hours spent on complying with taxes to 193.

Meanwhile, Ramon Casiple, chairman of Consortium for Electoral Reforms, said the patronage system basically poisons the entire political structure or framework in the country.

“Every time they change president, the new president has the authority to appoint something like 17,500 positions. That is only in the Philippines wherein like the President can appoint up to the sixth level of bureaucracy down to the provincial head of the national agency. Of course, that shows a very strong president. But it also reinforces what I call the patronage system,” he said.

Casiple said governance as a whole is tightly related to the patronage system because of the appointments and also because of the policies that would favor dynasties, families and politics.”

“You have to de-link that two.

The marriage of politics and governance is a disaster. Unless that is addressed, all the well-meaning reforms I think would go into nothing,” he said.

Casiple cited the need to have a political mechanism to enhance the vision for national unity. “That mechanism actually is the political party—a genuine political party that talks to other political parties on the basis of programs, platforms, ideas and come up with a national agenda. You will have differences definitely but it is the differences of ideas, not personalities,” he said.

“Unless that political question is addressed, I fear that the Philippines, that would mean the government or even the private sector would not be prepared for Asean integration or for global competitiveness for that matter,” he said.

Dr. Francisco Magno, Trustee and Program Convenor of ADR Institute said the Stratbase ADRi’s Governance forum is part of a series of discussions attended by the country’s experts from academe, the government and the private sector to contribute valuable inputs that will be integrated with the Institute’s flagship project called the Strategic Agenda for National Development.

ADRi was launched in November 2014 as an independent, strategic and international research organization to deliver a meaningful response and contribute to the developmental debate within the East Asian region.

he Department of Transportation and Communications (DOTC) on Thursday said train riders—specifically those with special concerns, such as senior citizens, pregnant women and persons with disability (PWDs)—can expect a more convenient commuting experience soon after it awarded the final maintenance contract for the Metro Rail Transit (MRT) Line 3.

The P8.17-million contract to maintain the 34 escalators and 32 elevators of the line for six months was awarded to International Elevator & Equipment Inc. (IEEI) on Thursday, according to a statement from the agency.

“The train system’s riders, especially those with special concerns such as senior citizens, pregnant women and persons with disability, can expect a more convenient commuting experience now that the IEEI will be obligated to maintain the Mitsubishi-brand conveyance facilities as the brand’s exclusive distributor of elevators and escalators,” the department’s statement read.

Meanwhile, for longer-term improvement efforts, contracts for the rehabilitation of these 34 escalators and the replacement of the 32 elevators are already being procured.

“As to the 12 Schindler-brand escalators, a maintenance contract was no longer procured as a six-month rehabilitation contract was awarded to Jardine Schindler instead,” the statement read further.

Aside from the contract won by IEEI, the government has also awarded the following MRT 3 maintenance contracts: Rail and permanent ways to Jorgman-KorailErin Marty Joint Venture; Building and facilities to Global Epcom Services Inc.; Communications systems to Trilink Technologies Inc.; Ticketing to Future Logic Corp.; Rolling stocks, depot equipment, and signaling to Schunk Bahn-und Industrietechnik GmbH—Comm Builders & Technology Phils.

Corp. Joint Venture.; and Power supply and overhead catenary systems to Manila Electric Co. subsidiary MRAIL Inc. All six contracts have a combined ticket price of P235.99 million.

The subcontractors were engaged directly under a multidisciplinary approach to increase the efficiency of work per component until the long-term maintenance provider is procured.

The agency anticipates that day-to-day repair works and the supply of spare parts will be improved under this approach.

The government will also launch the auction for the P4.2-billion three-year MRT maintenance deal soon, after all requirements for the procurement has been met.

The transport department decided to double the contract price from the original P2.2 billion to increase the interest of maintenance providers.

The contract now includes the lot, the general overhaul of the trains and replacement of signaling system of the MRT. The terms of the sweetened contract will have to go through the approval of the Government Procurement Policy Board and the National Economic and Development Authority.

Currently, a shadowing team from the transport department is assisting APT Global Inc. in maintaining the line. The maintenance provider’s contract expired in the second half of last year, it was, however, extended due to the failed auctions.

The government has also procured 48 new train cars for the MRT 3. But the delivery of the new coaches, according to Transportation Secretary Joseph Emilio A. Abaya, will be delayed by about three months. The deferment, he said, was caused by the prototype’s need to undergo dynamic and static testing and debugging to ensure the new

coaches will function at their optimal level.

Commuters from the north and south of Manila patronize the MRT as it is a cheaper and faster option to riding buses and taxis. But some are now adamant to ride the once-mighty train system because of safety purposes.

The train system saw itself bogging multiple times this year already, once even forcing passengers to walk beside the rails along the station in Guadalupe. There are also fewer trains running due to the lack of spare parts, and a reputable maintenance provider.

But once the 48 new trains come in, MRT 3’s trips per hour will increase from 20 to 24, which will translate to a 60-percent rise in the number of passengers per hour per direction.

This means that there will be 37,824 passengers who can avail of the rail service every hour heading towards one direction. Currently, only about 23,640 people ride an MRT service per way every hour. But that number still depends on how many trains are running that day.

Today, the rail line’s average daily ridership is already over 560,000, and its highest single-day passenger count is 620,000.

The project is aimed at easing the gridlock on Edsa, and “make the MRT 3 experience much more bearable for its riders.“ The government also plans to modify the structure of its trains from three coaches to four in the third quarter this year. But this also seems to be affected by the delay.

A change in platforms at the stations is not necessary, as they are already designed to carry an additional train coach for each set. It will effectively cut the waiting gap per train to three minutes from five.

Aside from adding new coaches to the current MRT fleet, the government is also rolling out P9.7billion worth of projects to improve the train line.

The state also wants to buyout the corporate owner of the line. But several private groups are proposing a different scheme to modernize the train system, which has been under fire for years now for its mediocre services.

The group of businessman Robert John L. Sobrepeña is proposing to do a “quick fix” solution to make the train system safe for public transport.

Together with foreign firms Sumitomo Corp. of Japan and Globalvia Infrastructuras of Spain, Metro Global Holdings Inc. is proposing to “fix” the ailing system through a $150-million investment that involves the procurement of a total of 96 new train cars, and the rehabilitation of the existing 73 coaches, increasing its capacity by fourfold to 1.2 million daily passengers.

Under the proposal, a single point of responsibility will be implemented: meaning the rehabilitation and the maintenance of the line will be handled by a single company.

Separately, Metro Pacific Investments Corp. is proposing to shoulder the upgrade costs of the train system and release the government from the bondage of paying billions of pesos in equity rental payments.

The group of businessman Manuel V. Pangilinan, which earlier entered into a partnership agreement with the corporate owner of the MRT, intends to spend $524-million to overhaul the line.

The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. The multimillion-dollar expansion plan would double the capacity of the line to 700,000 passengers a day from the current 350,000 passengers daily. It was submitted in 2011, but the transportation agency’s chief back then rejected the proposal. Lorenz S. Marasigan

Opinion BusinessMirror

A6 Friday, July 17, 2015

editorial

The disaster area of PHL investments

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he Philippines has been waging a war to bring in substantial amounts of foreign direct investments (FDI) for so long it is getting like the genuine wars against the New People’s Army and the Muslim separatists.

Successive governments have not been able to design a long-term strategy for success and have not been able to show the political will to do the things with enough force and commitment that they know needs to be done.

The amount of FDI as a percentage of the gross domestic product is smaller today than it was a decade ago, even if we like to get excited about the amount of FDI being at an all-time record high. Not only are we so far behind the rest of Southeast Asia in total amount, the Philippine growth of FDI over time is just as dismal. The latest numbers showing that FDI dropped some 40 percent from last year is excused by saying that the fall is not as bad as other countries are experiencing.

The conversation on how to attract more foreign investments always comes back to the constitutional and legal restrictions placed on foreign capital coming into the country. And the moment the conversation starts, the issue of nationalism raises its head and economic considerations are almost forgotten.

However, when foreign money is asked about the problem of Philippine FDI quietly and seriously, the ease of doing business and the rule of law always seem to come before constitutional restrictions when money decisions are being made.

The Global Opportunity Index from the Milken Institute did a survey and kept it simple, measuring “economic fundamentals,” “ease of doing business,” “quality of regulations” and “rule of law.”

Overall, the Philippines ranked 87th out of 136 economies. For economic fundamentals, our ranking was 61st and for quality of regulations the rank was 60th, both not bad. But in ease of doing business, we were at 108th, down from 104th in 2009 but up from 117th in 2014. For rule of law, in 2009 we were 98th and last year we ranked at 118. This year we went up to 104.

It is the rule of law category that is the most disappointing and depressing.

Most of our politicians have some background in law and, yet, we have regulations that stifle business formation. But the rule-of-law issue is really a disgrace. That sector measures legal infrastructure (the judicial system), protection of property rights and protection of investors’ rights, which speaks of the justice system. The Philippine ranking on rule of law is between Mozambique and Ukraine.

Thailand is ruled by a military dictatorship and it ranks at 38th for rule of law. Ukraine is in the middle of civil war and Russian invasion, and both Ukraine and the Philippines have the same score at 3.7 out of 10. But even in a civil war, Ukraine at 73rd place is an easier place to do business than the Philippines.

Our FDI will continue to be a disaster area until the people in power care enough to make it better.

Since 2005

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An idea whose time has come James Jimenez

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spox

ast Saturday Chairman Andres Bautista of the Commission on Elections (Comelec) announced that the poll body is considering the possibility of holding elections in malls, while admitting that the details of implementation needed some study.

This is a good idea, and recent events show that it is remarkably well suited to meet the needs we’re seeing now.

Consider, first and foremost, the comfort and ease of the voters. While there are some areas in the country where the polling places, and the voting centers where they are located, are very well appointed, the fact remains that a vast majority of these places are cramped, poorly ventilated, and vulnerable to power outages. Isn’t it time we did something to relieve the voters of these difficulties?

Malls are the exact opposite of our existing choices for polling places. They are roomier, air-conditioned and have reliable power supply. In an environment like that, voters will have more space while filling out their ballots, adding protection to the secrecy of their votes; Boards of Election Inspectors will have adequate working space so their various paraphernalia aren’t piled up in front of them, minimizing confusion in the identification of

voters and handing out of ballots; and watchers will have more than ample room to observe the process without being distracted by all the jostling that comes with crowded spaces.

The impact of air-conditioning cannot be underestimated, especially with our hot summers getting hotter every year. Hot temperature, humidity, and in some cases, rain—these environmental factors affect the orderliness of the election process because of their adverse impact on the queuing voters.

People waiting in line for their turn to vote may lose their patience, get agitated, and might just leave the line if they are forced to stand around in mounting discomfort.

Of course, we trust Filipino voters to grin and bear the rigors of waiting.

But if a solution to the problem of voter discomfort exists, why not grab it?

Now let’s talk about security. Some

people ask how the electoral process can be safeguarded in a mall. The concern is valid, but perhaps it fails to take into account that the polling place will most likely be in a clearly demarcated area within the mall’s premises. With a well-defined perimeter and adequate signage, securing the voting process becomes easy. On top of that, all entrances to malls are secured to a far greater extent than most public schools are, allowing for easier crowd control in the event that things become unruly.

What about accessibility? For as long as elections have been held in public schools, the accessibility of polling places to persons with disabilities (PWDs), senior citizens and pregnant women has been an issue. Even when polling places are in single-story structures, there is still usually a one- to two-step elevation from the main path leading to the building. In the case of polling places situated in multi-story buildings, the problem becomes even more pronounced. Malls, on the other hand, have built-in accessibility features like ramps and wheelchair elevators, making elections conducted in malls much more inclusive.

It doesn’t take a genius to see that if there’s a way to legally put polling places inside malls, it ought to be done.

I mean, look at how successful voter registration and validation in malls have been so far.

Mall rehistro, as this satellite registration in malls has come to be known on social media, started during the first weekend of July. Over those two

days the Comelec was able to serve more than five thousand people. The following weekend, even more. When you remember that these two weekends actually had terrible weather, the turnout becomes more impressive.

In many of the malls, mall rehistro kiosks even had to establish cut-off times to ensure that everyone already in queue would be properly served.

Building on the success of mall rehistro in Metro Manila, the Comelec has started doing the same in the provinces. To say that this was due to public clamor might seem a bit trite, but the fact is, strong public demand was certainly a factor.

However, lest we forget, voter registration and validation is still being done at local Comelec offices, from Sunday to Friday, from 8 a.m. to 5 p.m. Mall registration, as successful as it is, remains only an adjunct to the main work being done in Comelec offices.

Without a doubt, mall rehistro is enjoying strong support from the public because it has made the process of registration and validation more convenient; and because it works. The same is true of voting in malls, but it will probably take some of us a little time to get used to the idea. But that’s the nice thing about ideas, especially the good ones.

They tend to be unstoppable when their time has come.

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

Opinion BusinessMirror

opinion@businessmirror.com.ph

Friday, July 17, 2015 A7

The urgency of ‘Laudato Si’ Leonardo A. Lanzona Jr.

EAGLE WATCH

T

he new Encyclical of Pope Francis, Laudato Si, touches on many subjects from biblical ecology to environmental policy, from consumerism to the dangers of market and social media. In this sprawling exhortation of contemporary world, one sees signs of hope and messages of danger.

At the heart of the encyclical is a question: “What kind of world do we want to leave to those who come after us, to children who are now growing up?” Certainly, this concern is not new. All parents at one point in their lives have asked this question. The answer, obviously, is a comfortable and secure future, but the process toward this end can be varied. For some, the means can be in the form of physical capital, such as money and assets, including land. In which case, they accumulate wealth over their lifetimes so that they can assure their offspring of a comfortable life when they are gore.

For other parents, the mechanism is perhaps, human capital in the form of health and education. In other words, they invest in their children to become productive and to guarantee for themselves the life they want to lead.

Except perhaps, for the poor households, most will not consider the planet as a possible bequest.

Ironically, the planet is the single most important legacy we can give our children. With a dying planet, neither physical nor human capital will prosper. Wealth loses its luster and human capital depreciates. It is then to the interest of everyone to protect and enrich the planet.

A crucial question then is why people ignore this simple fact. The obvious answer is that the earth or the environment is a collective good.

This means that everyone is sharing this collective good. According to Francis, the environment is “the patrimony of all humanity and the responsibility of everyone. If we make something our own, it is only to administer it for the good of all.”

In the social sciences, collective goods create a particular sort of problem. Known as the “tragedy of the commons,” the view is that rational individuals consuming a common resource for individual gain will inevitably deplete it. In this case, “shared” means that each individual does not have a claim to any part of the resource, but rather, to the use of a portion of it for his/her own benefit. The tragedy is that, in the absence of regulation, individuals have a tendency to exploit the commons to his/her own advantage, typically without limit. In the end, these individuals end up maximizing their welfare, but everyone else shares the cost.

At the root of the tragedy is the unrestrained self-interest of some individuals. According to the Encyclical, the current economic and technological progress in the world offers “those with the knowledge, and especially the economic resources to use them, an impressive dominance over the whole of humanity and the entire world.” It is precisely the mentality of technocratic domination that leads to the destruction of nature and the exploitation of people and the most vulnerable populations.

“The technocratic paradigm also tends to dominate economics and political life,” keeping us from recognizing that “by itself the market cannot guarantee integral human development and social inclusion.”

Hence, the Encyclical extends beyond environmental issues. The observed social malaise is correlated with environmental degradation since these two issues are determined by the same political and technological structures. Francis mentioned that his predecessors have noted this. What differentiates his Encyclical, however, is its sense of urgency. This stems from the pope’s personal assessment that

Pope Francis insists on honest and transparent decisionmaking processes, in order to “discern” which policies and business initiatives can bring about “genuine integral development.” For instance, a proper environmental impact study of new “business ventures and projects demands transparent political processes involving a free exchange of views.” Since the problem is global, he suggests new forms and instruments for global governance. environmental and social problems have engulfed and anguished not only communities but also whole nations, particularly the poor. We were given a personal experience of how this issue has deeply affected the pope when, in the midst of a brewing storm, he visited Tacloban last January.

But how does one avert this tragedy? Some economists, such as Nobel Laureate Ronald Coase, argued that this problem be addressed through privatization—converting common property into property owned by individuals, who would then have strong incentives not to overuse or destroy it. However, in a series of influential articles and books, another Nobel Laureate, Elinor Ostrom, showed that there is an alternative. Through social norms and informal institutions to manage common property resources, Ostrom argues that informal, decentralized approaches to managing common property resources are superior to government-imposed ones. The reason is that the former can take more account of the specialized local knowledge possessed by the people who actually use the resources and depend on them for their livelihoods.

In the same vein, Francis insists on honest and transparent decisionmaking processes, in order to “discern” which policies and business initiatives can bring about “genuine integral development.” For instance, a proper environmental impact study of new “business ventures and projects demands transparent political processes involving a free exchange of views.” Since the problem is global, he suggests new forms and instruments for global governance. He advocates “an agreement on systems of governance for the whole range of the so-called global commons, seeing that “environmental protection cannot be assured solely on the basis of financial calculations of costs and benefits.”

The Encyclical takes its title from the invocation of Saint Francis, “Praise be to You, my Lord,” in his Canticle of the Creatures. It reminds us that the earth, our common home “is like a sister with whom we share our life and a beautiful mother who opens her arms to embrace us.” We have forgotten that “we, ourselves, are dust of the earth; our very bodies are made up of her elements, we breathe her air and we receive life and refreshment from her waters.”

As we approach the presidential elections next year, it is of utmost importance that we know the position of the candidates on the issues raised by Laudato Si. Leonardo Lanzona Jr. is director of the Ateneo Center for Economic Research and Development and a senior fellow of Eagle Watch, the school’s macroeconomic research and forecasting unit.

Suicide Tito Genova Valiente

annotations

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n 1897, the French sociologist, Emile Durkheim, wrote a book simply titled Suicide. The simplicity of the title could not hide the fact that suicide was already baffling and troubling societies.

Leave it then to sociologists to break down a phenomenon—analyze, in other words—and present to us the parts of that greater whole, which is called suicide.

It was the turn of the century, and Durkheim made several conclusions.

One was that the tendency to commit suicide was higher among males than females, higher among single males that those who were married.

Durkheim, in the same book, also concluded that incidents of suicide occur more among Protestants than among Catholics, citing social control as stronger in the latter than in the former.

There are other really curious findings in the book by Durkheim.

Suicides happen more during daytime than night, and take place more during weekdays than weekends.

One could go on and underscore the trivia in this book, but one significant finding of the sociologist is how suicide is a social fact rather than the result of insanity. He stated how the increasing intensity of the events in a society put pressure on certain individuals.

It is 2015 and we are seeing more suicides that the Durkheimian principles could not anymore predict.

Religion, it seems, is not providing a sense of stability, or even escape, for certain persons. It could be also that societies, now secularized more than ever, do not give the social glue that binds people to a group, either by force or by free will.

Age and gender, religious affiliation and civil status—these do not provide any clue as to the profile of the suicide.

A friend was telling me of a friend’s uncle who was diagnosed with depression. The young man attempted one suicide but was not successful. They committed the uncle to several sessions with a psychiatrist and soon he became stable, or so it seemed. The family, however, was still careful not to leave the man alone. One day, maybe because of the whole feeling that the young

uncle has been showing signs that he is stable, the family left him alone.

He managed to kill himself in just a matter of minutes.

A student in a major university was taking antidepressant for days.

His parents did not even know that he was seeing a doctor and he was into medication. He was supposed to see a psychiatrist on Monday, but that Sunday he committed suicide.

For the young uncle, there was the caring family; for the young man he had friends and he was active in the extracurricular activities of the university. But they were looking for something we would never know about. We would never know the pains and fears in their heart. We would never really know them, and we could not judge them.

In March the JAMA Pediatrics published a study, which shows that suicide among youths in rural areas double in rate compared to those in cities. The findings, however, limited perhaps to a particular country, show the blurring of the differences between societies that are considered rural and those that are urban. It used to be that rural societies are pictured to be closely knit and are seen as providing a more secure and stable environment. Placed against the Durkheimian findings, it could be gleaned that cities, as well as rural villages can provide the same socially intense activities, which are seen as causing suicide.

When a young person commits suicide, we are left with no answers.

We do not dare put in our own interpretation of the events. No suicide note can ever explain why a person would take his or her own life.

What happens before a young boy drinks the poison? What goes on his mind as he waits for the toxin to consume him? What does a girl think as she steps on a ledge and contemplates the jump from that height? Is she conscious as she falls?

There is a data in the Internet attributed to the US Centers of Disease Control and Prevention, which points to suicide as the third leading cause of death among youths between the age of 10 and 24. In the same report, which appears in KSBW.com, it is stated that of the suicides between 10 and 24, some 81 percent of them are males. Up to this point, Durkheim is correct in his social clues.

One problem of suicide is that families refuse to talk about the crisis. This is understandable: In a Catholic country like ours, a dark stigma is attached to suicides. The cementerio civil or public cemetery attests to this judgment because Catholic churches and Catholic cemeteries would not allow a suicide within their domain.

In a small town in the south, there is an entrance to the small cemetery, which says, “Via Omnis Carnis,” the Way of all Flesh. It is not for all because there are those who take their own life and will not be blessed to go through that particular way.

E-mail: titovaliente@yahoo.com

Markets aren’t buying China’s rosy GDP claims William Pesek

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BLOOMBERG VIEW

hina’s latest tool to calm investors is a raft of cheerful gross domestic product (GDP) figures. The trouble is they’re looking a bit too cheerful.

Beijing’s attempt to get away with 7-percent growth in the second quarter fell flat with traders, who drove Shanghai stocks down 3 percent on Wednesday. You can just picture President Xi Jinping’s men gathered around a stock spreadsheet wondering what went wrong. Let me save them the suspense: China’s irrational stock rally is reaching its natural end.

There are two reasons the latest burst of GDP creativity didn’t work.

First, the Goldilocks nature of yesterday’s numbers—good enough to suggest the government’s stimulus moves are working, but not so stellar that they would reduce speculations that more are on the way—raised red flags among investors. Everything from commodity prices to electricity usage to export statistics

in neighboring countries suggested China’s economy was decelerating, so markets were incredulous at Beijing’s suggestion otherwise. (It didn’t help matters that the government reported that also grew a tidy 7 percent during the first quarter, too).

Second, this week’s events confirmed fears among investors that Xi, 32 months since becoming China’s president, is still putting growth ahead of economic reform.

There’s no end in sight to the dominance of state-owned enterprises; the financial system remains tightly controlled; shadow banks are running amok; and China is even less transparent than it was in the days of predecessor Hu Jintao (which is saying something).

Instead of the economic glasnost

Xi pledged (heralded as the “Chinese Dream”), Beijing is papering over the country’s many cracks. First, it accelerated the growth of a debt bubble that added $20 trillion of credit between 2009 and 2014. Next, it engineered history’s biggest equity rally to help companies raise capital and make households feel richer. Now, in hopes of keeping those bubbles inflated, Beijing is deploying statisticians to calm investors’ nerves.

China’s growth “partly reflects an unsustainable surge in financial sector activity that will prove shortlived,” says Julian Evans-Pritchard, China economist at Capital Economics. The other part reflects unsustainable jumps in fiscal-spending activity among regional governments all vying for Xi’s favor by boosting national growth. All the while, says economist Li-Gang Liu of Australia & New Zealand Bank, “deflation risk remains elevated.”

Meanwhile, per-capita disposable incomes reportedly rose 10.5 percent from a year earlier to $1,562 in the first six months of the year. “This number would indicate a relatively solid Chinese labor market in the first half of 2015,” says economist Bill Adams of PNC Financial, “but seems inconsistent with sluggish growth in

the cyclical drivers of labor demand: investment, industrial production and construction activity.”

Even if China isn’t fudging its household earnings stats, they wouldn’t hold up in the face of Xi’s promised economic reforms. Any effort to create a vibrant private sector will require tossing millions of state-owned-enterprise staffers out of work. (In the late 1990s, remember, then-Premier Zhu Rongji slashed 40 million jobs from Stateowned Enterprises—and the sector still dominates China’s economy.)

China’s overdue reform program will inevitably mean markedly slower economic growth in the short term. Prominent economists, including former US Treasury Secretary Lawrence Summers suggest China’s revised growth rate would be about 4 percent.

In other words, as long as China’s longer growth stays near 7 percent, investors will suspect Xi’s team isn’t doing enough to modernize the economy. They will assume, not unfairly, that Beijing lacks the confidence to allow markets to rise and fall by their own volition. The government ought to keep that in mind the next time it thinks it can fool the world with a good GDP headline.

2nd Front Page BusinessMirror

A8 Friday, July 17, 2015

www.businessmirror.com.ph

$2.2-billion ‘hot’ money exited PHL in June–BSP Y

By Bianca Cuaresma

iEld-hungry portfolio funds, also known as “hot” money, flowed inward on net basis in the first six months no matter that, in the interim period, the various foreign fund managers were spooked no end by the certitude that US interest rates will move up shortly.

The Bangko Sentral ng Pilipinas (BSP) on Thursday said hot money flowed inward from January to June, totaling $737.58 million. This was a reversal from net outflows of $1.3 billion in the same period last year.

In June alone, however, a total

of $522 million flowed out on net basis, as consequence of gross inf lows of only $1.69 billion against gross outflows amounting to $2.2 billion.

The BSP attributed the exodus of foreign capital in part to weaker-

than-anticipated growth of only 5.2 percent in the first three months in terms of the gross domestic product and to sentiment having soured as a result of disappointing corporate income during the period.

Profit-taking, as well as escalating unease over prospectively higher interest rates in the US and the steady deterioration of Greece as member of good standing in the 19-nation monetary union, also contributed to the net outflow of foreign capital.

The relative ease by which foreign capital leave the country explains in part why the government would rather have foreign direct investments (FDI) than hot money placements, which may be withdrawn at a moment’s notice.

According to the BSP, $4 out of every $5 worth of portfolio invest-

ments in June were for the purchase of listed securities bought and sold at the Philippine Stock Exchange. The purchases benefited mainly holding firms, food, beverage and tobacco companies, banks, property firms and telecommunication companies.

The rest of the investments were in local-currency government securities issues equal to 20.6 percent of the total, while the other 0.2 percent were in other peso debt instruments.

The United States, the United Kingdom, Singapore, Luxembourg and Hong Kong were the top 5 investor-countries for the month, with combined share to total of 80.5 percent. The US, its reputation as investment safe heaven intact, remains the top hot money outflow destination, receiving 77.1 percent of total, the BSP said.

NEDA BOARD OKs P1.59-B CIVIL REGISTRY PPP, NEW NAIA EXPRESSWAY PLAN

By Cai U. Ordinario

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he National Economic and Development Authority (Neda) Board, chaired by the President, has approved the P1.59-billion Civil Registry System (CRS) Information Technology (IT) Project.

The Neda Board also approved the changes made on the Ninoy Aquino International Airport (Naia) Expressway Phase II and the Daang Hari-South Luzon Expressway (Slex) Link Road projects.

“The approval of the Civil Registry System Information Technology Project will extend and enhance the Philippine Statistics Authority’s [PSA] civil registry document services, which is a highly critical need for Filipino citizens,” Economic Planning Secretary Arsenio M. Balisacan said.

“Meanwhile, the adoption of changes in the Naia Expressway Project Phase II and the Daang Hari-Slex Link Road project are responsive in essentially

reconciling the increasing need of motorists and the service capacity of these roads over the course of time,” he added.

The CRS IT Project of the PSA will be implemented through public-private partnership (PPP).

The PPP Center said the project will now be the third PPP project submitted for bidding as of July 2015. Other projects that have recently been put up for bidding are the P23.2-billion North Luzon Expressway-Slex Connector Road and the P298-million Road Transport IT Infrastructure Project Phase II. The Neda said the CRS project involves the computerization of the civil registry operations of the PSA. It is designed to collect, store, maintain and manage civil registry documents and the specimen signatures of all city and municipal registrars using imaging technology.

See “Neda,” A2

52 BRANCHES OF SM SUPERMALLS TO BECOME POLLING PRECINCTS IN 2016 ELECTIONS

By Joel R. San Juan

T

HE Commission on Elections’s (Comelec) bid to tap shopping malls as voting precincts in the 2016 polls received a major boost after SM Supermalls offered its 52 branches for the synchronized elections.

In a statement, Comelec Chairman Andres D. Bautista disclosed that the poll body got the nod of SM to provide the public a convenient and hassle-free way of voting.

Bautista made the announcement after a meeting with SM Supermalls President Annie S. Garcia on Thursday.

“The Comelec remains committed to improve the voting experience of the public. This is why we are delighted to learn that SM is willing to offer its malls as voting centers in the forthcoming elections,” Bautista said.

Bautista said the Comelec and SM Supermalls share the aspirations

of the Filipino people for credible, orderly and peaceful elections.

“In furtherance of such efforts, SM is willing to offer its malls as voting centers in the forthcoming elections. Responsible voting leads to credible elections,” Bautista said. “This is also part of the Comelec’s desire to improve the voting

experience of the public.”

Garcia said, “SM Supermalls has always been supportive of the Comelec’s efforts at ensuring credible, peaceful and orderly elections.”

“In line with this and as part of our commitment to give all the convenience to the public, especially to the mallgoers, we would like to tell

the Comelec that our 52 malls will be made available as voting centers in the 2016 national elections.

She added that SM Supermalls’ accessibility, senior citizens and people with disability (PWD)friendly facilities make the air-conditioned malls ideal for the polls.

See “Elections,” A2