BusinessMirror July 24, 2015

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A broader look at today’s business Saturday 18,July 2014 10 No.Vol. 4010 No. 288 n Friday, 24,Vol. 2015

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

BSP SAYS AVERAGE RATE OF PRICE INCREASES TO GO BACK WITHIN TARGET RANGE TOWARD YEAREND

Inflation seen inching up by Q4

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RICE pressures were seen to remain muted in the immediate term but should begin to ramp up and approach 2 percent toward year-end, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

INSIDE

CARA DELEVINGNE

Life

The smile

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

Friday, July 24, 2015

BEYOND I STRIKING POSES

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B E L

N Paper Towns—which opens in Philippine theaters on July 22 from 20th Century Fox—Quentin Jacobson, or simply Q, has been entranced with the mysterious Margo Roth Spiegelman since the day she and her family moved into the house next door in his suburban neighborhood. He was nine years old at the time.

Close as children, now they have different groups of friends, little in common and no longer even talk to one another. Nat Wolff’s Q is academic, nerdy and hangs out with the equally nerdy Ben (Austin Abrams) and Radar (Justice Smith).

The charismatic Cara Delevingne is perfectly cast as the elusive Margo, who is adored by everyone. In contrast to Q, who wants to be a doctor and has his future mapped out, Margo is instinctive, impetuous and fearless. “It’s a bit of a mystery to me how charisma works, but Cara has more than anyone I’ve ever met. She has it by the boatload and she’s great as Margo,” Paper Towns author John Green says, who is also one of the film’s producers. “She’s an intense, fun person and a very good actress. One of the reasons that Cara is so good in the role is that, like Margo, she understands how frustrating it is to have people making broad conclusions about you based on very limited information.”

CARA DELEVINGNE

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C  D

LIFE

CARA DELEVINGNE PHOTOGRAPHED BY BRIAN BOWEN SMITH

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A TALE OF THREE CARS, FUELS, TERRAINS Motoring BusinessMirror

Henry Ford Awards Best Motoring Section 2007, 2008, 2009, 2010 2011 Hall of Fame

Editor: Tet Andolong

Friday, July 24, 2015 E1

In a briefing the BSP hosted as part of the review of developments in the second quarter, the anticipated ramping up of inflation pressures in the waning months this year was to result from base impact, whose full force has, likewise, dissipated. “[F]ood prices peaked at around July and August [last year; and the reverse of the base effects, the reverse pattern, should be peaking on the downside [this year]. As the food supply normalizes, then you will have the base effects dissipating.

Next year base effects should have faded out,” BSP Director for the Department of Economic Research Zeno Ronald R. Abenoja said in the conference.

In 2014 inflation started ticking upward in April and peaked at 4.9 percent in July and August.

This year inflation decelerated in March and hit 1.2 percent in June, the lowest inflation on record for the country.

“Inflation should begin to inch in the fourth quarter. Inflation S “I,” A

WIN ON ALL TERRAINS Three types of cars with three different fuels for three unique terrains.

WIN AGAINST GUNK AND CORROSION Shell Fuel Scientist, Mae Cayetano-Ascan, explains the benefits of using Shell V-Power+ fuels.”

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But very few petroleum trademarks have the formulation to act as cleaning agent and prevent engines from losing its needed performance. One of them is the “Shell V-Power Nitro +” premium performance fuels.

“In our thrust to continue bringing exciting drives on the road, we at Shell believe that maintenance and performance go hand in hand. Through the Shell V-Power Nitro+ “Stay Ahead” campaign, we aim to help motorists

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UZUKI Philippines amps up the competition in the local compact car segment with the upcoming launch of its newest automobile offering—the all-new Suzuki Celerio.

The newest variant of the well-loved Celerio will be available locally in manual transmission and continuous variable transmission (CVT), which will be priced at P507,000 and P542,000, respectively.

With the car’s official release set this August, interested customers can already preview the all-new Suzuki Celerio on display in all Suzuki dealerships nationwide and make early reservations to avail themselves of a P20,000 discount. The all-new Celerio boasts of being developed with an A+ compact design in mind. The A+ compact concept builds on the strengths and exceeds the limits of the A segment car by implementing the “small on the outside, big in the inside” idea.

PHL SHOULD BE NATURAL PART OF SILK ROADZHAO

THE convoy and initial media car assignments.

S    R S. P

UEL is an important catalyst not only because it runs the vehicle, but mainly for the type and octane that are specifically formulated to produce the desired combustion. win against the double threats of gunk and corrosion, which hinder their vehicles from performing at its best,” Pilipinas Shell Vice President for Retail Anthony Lawrence Yam said.

To prove how maintenance and performance work together, Pilipinas Shell recently invited select members of the media for the “Win On All Terrains” event. Partnering with Ford Philippines, the group drove from Bonifacio Global City all the way to Clark, Pampanga. And to

test the V-Power Nitro + Gasoline, Diesel and Racing fuels, the activity was designed for a three-leg crusade involving different terrains. Three media teams were formed for the task of determining the winner at the end of the day.

Teamed up with fellow scribes Mikka Fernandez-David and Ferdz Vinzon, we boarded the Ford Focus Titanium variant for the initial stretch. First stop was at Shell gas station in Balintawak, were we filled up with Shell V-Power Nitro + Gasoline. The lay over greeted us with the riddle challenge to test our wits. We then continued traversing Edsa all the way to North Luzon Expressway and made another stop at Shell station in Tabang. There, the group of motoring journalists played another game involving mechanical parts identification. Afterward, we navigated Subic–Clark–Tarlac Expressway until we reached Clark International Speedway, where another contest was waiting for us.

The group reconvened and were

briefed on the next hurdle, which highlighted the Shell V-Power Nitro+ Diesel. We were set to navigate the lahar landscape with unpredictable sandy terrain representing the off-road experiment.

Waiting for us were three Ford Ranger 4x4 Wildtraks that were put to the test in an extreme environment. This writer took the wheel and traversed the quarry land all the way to the targeted destination. The objective was to complete the route, gather points through pit stops and, most important, not to stall, that would result to points deduction. Soon after, rain poured and the sand started to soften making it more difficult for the tires, while water splashed from hollow rivers made it even worse, giving almost zero visibility to drive. We completed the task and made it back, while another group unfortunately got wedged, yet made it back safely.

After enjoying sumptuous local cuisines, we headed back to the headquarters for a presenta-

tion. This time, Malaysia-based Shell Fuel Scientist Mae Cayetano-Ascan explained the harmful contaminant associated with diesel engines. “Gunk is sponge-like in nature and can absorb some of the fuel that has been injected in the engine thereby affecting the responsiveness of your vehicle.

This is why Shell V-Power Nitro + fuels are formulated with powerful cleaning agents that prevent and remove performance-robbing engine deposits,” Ascan said. In a compelling demonstration, one valve contaminated with gunk burned longer than the clean one proving the theory. Next demonstration was about corrosion. Holding an engine piston as specimen, Ascan explained how the V-Power Nitro + Racing fuel transforms into a protective layer against corrosion.

After the off-road ordeal, we tested our driving skills inside the race circuit. Excitement rose when we found out that the iconic Ford Mustang 5.0 V8 GT Premium

would be the test car. The trial was facilitated and copiloted by no other than renowned race driver George Ramirez. Faced with obstacles, plastic pylons representing guides for braking and apexes, the groups were all excited to get their hands on the Mustang. And when the author boarded the pony, the signal to launch prompted a wideopen throttle delivering that neck-breaking acceleration. In fact, the mesmerizing engine roar created a diversion—in a good way—while listening to George’s instructions. After completing the lap, the anxious feeling for another round was evident among us. Nevertheless, it was a rewarding experience for everyone.

We returned to Manila and reached the final destination just in time for dinner. After tallying the scores from different challenges, our team garnered the most number of points and were declared the winners. After all, the victory is what we needed after that long and tiring, yet exciting day.

B R M

As an A+ compact, the all-new Celerio promises to deliver the same dynamism and easy maneuvering that compact cars are known for, while offering impressive interior space and luggage capacity at the same time. Compared to its predecessor, the all-new Celerio features a longer body and wheelbase, a wider front and rear tread, and a bigger headroom. The new Celerio variant still sports a K10B three-cylinder engine that produces a maximum output of 67 hp at 6,000 rpm and 90 Nm at 3,500 rpm for excellent fuel efficiency.

Suzuki Philippines President Hiroshi Suzuki shared, “We are very excited to introduce our A+ compact to the Filipino market. With its superior design, best-in-class luggage capacity, superb ease of driving, and outstanding fuel efficiency, we are confident that the allnew Suzuki Celerio is set to be the new standard in this segment.” www.suzuki.com.ph

MOTORING

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said. “We are seeing an all-or-nothing approach.”

The descent wasn’t unknown to Froome. He’d previously raced and trained on it and that inside knowledge helped him negotiate the bends.

“I have never felt that descending has really been a weakness for me. I have always been quite comfortable on the descents,” he said.

Alejandro Valverde of Spain, Quintana’s Movistar teammate who has been riding strongly, rose from fourth to third overall, 4:09 behind Froome.

Froome’s Sky teammate Geraint Thomas climbed from sixth to fourth, vaulting over Contador, and is 6:34 behind his team leader.

Riding solo for over an hour from such a long way out, up the two final climbs and alone down the descent was risky. But Geschke said he knew that other riders in his group were stronger climbers, so he decided to shake them off as early as he could.

“I took the only chance I had,” he said. “I thought, OK. If it doesn’t work out, it doesn’t work out.’”

“It’s incredible it worked out,” he added. bike,” Contador said. “I tried to descend as well as I could, but at the bottom of the climb I had to change back to one of my own bikes to minimize the losses.”

While the Spaniard stays in fifth place, the Tinkoff-Saxo leader who was hoping to add the Tour to his Giro d’Italia win in May is now a substantial 6 minutes and 40 seconds behind the Team Sky rider overall—and all but out of contention.

Froome and Nairo Quintana sprinted together for the line, with the Colombian just beating the Briton this time. Quintana remains second overall—still 3:10 behind Froome—but was very active over the day’s five climbs, testing Froome with bursts of speed that the 2013 Tour winner was forced to match.

With time running out for podium contenders to claw back a few minutes, Froome is expecting more attacks in the next three days of progressively harder Alpine climbing before the largely ceremonial ride on the Champs-Elysees in Paris on Sunday.

“My rivals are going to take bigger risks,” Froome The Associated Press

B J K

GERMANY’S Simon Geschke celebrates as he crosses the finish line to win the 17th stage. AP

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HE biggest difficulty on Stage 17 and the Tour’s first day in the Alps isn’t uphill, but downhill.

A 16-kilometer descent from the Allos mountain pass into a valley before the final climb to the Pra Loup ski station is treacherous because of its bends and uneven road surface.

Eddy Seigneur, sporting director of the IAM team, told the race organizers’ web site before the start on Wednesday in Digne-Les-Bains that the downhill is “extremely dangerous,” and “the key of the stage.” AP

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REG LEMOND said some riders have put motors in their bikes to cheat in cycling’s biggest races, including the Tour de France.

Speaking to the Associated Press during Stage 17 of the Tour, the three-time winner of the race said: “I believe it’s been used in racing. I believe it’s been used sometimes in the Grand Tours.”

The UCI said it has checked bikes for motors at this Tour and found none.

LeMond, however, felt “they’re not doing enough” and described the UCI’s checks as “fluff” and “all words.”

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HE Tour de France’s tough Stage 17, an Alpine route after on Tuesday’s rest day, has claimed another rider.

World champion Michal Kwiatkowski of the EtixxQuick Step team joined five others who have already pulled out before the finish at the Pra Loup ski station.

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FEW more bends, and perhaps, Andrew Talansky might have got him.

The American rider said he simply “ran out of road” in his hot pursuit of bearded German Simon Geschke up the final climb of Stage 17. Geschke held on Wednesday for the fifth win by a German at this Tour.

Talansky, who rides for Cannondale-Garmin, said he “thought I had a good chance” and “was pretty confident I was the best climber” in the group of riders he ascended with.

But he added that “Geschke just had a bit too much time coming into that final climb” and “I ended up being second. But I did everything I could.”

He rode in 32 seconds behind the winner for Giant-Alpecin.

HRIS FROOME said it would be “crazy” for his Team Sky to bow to calls to publicly release all of the data and files it has collected about the Tour de France leader’s riding performances at races and in training.

Froome said Sky would surrender “everything” if other teams did too, to bodies like the World AntiDoping Agency or to the governing body of cycling, the International Cycling Union (UCI).

But Froome said publicly releasing “all my power data, all my training files, all my racing files”—which he said needed to have a full understanding of why he rides so strongly—”would mean giving away our training programs” to other teams and “that’s our competitive advantage.”

He added: “Obviously it’s crazy for us just to give it away” to “other teams that haven’t made that kind of investment in the training” that Sky has.

FROOME: THAT’S CRAZY C

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| FRIDAY, JULY 24, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

BusinessMirror

Sports

Chris Froome showed great bike-handling skill on the Allos descent, where he whizzed in single-file with three of his rivals, each kicking out knees on the twisting, narrow bends.

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RA LOUP, France—The speedometer clocked between 50 and 60 kilometers per hour as the pine trees whipped by, and the riders leaned left to right and back again to negotiate the snaking, bumpy descent.

Winning the Tour de France isn’t only about having the ability to get uphill fast. You’ve got to have nerves of steel going downhill too.

Chris Froome proved on Wednesday that he’s got both.

The 30-year-old Briton retained the leader’s yellow jersey as the Tour sped toward its crescendo in the Alps.

The 17th stage included a harrowing 16-kilometer descent that dealt, perhaps, the final blow to Alberto Contador’s distant hope of a third Tour victory and doused the ambitions of promising French rider Thibaut Pinot for a stage win. They both

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lost time after hitting the asphalt on the way down from the treacherous Allos Pass.

Germany’s Simon Geschke won the stage by surging out of a breakaway bunch and keeping at bay Andrew Talansky of the US, who was second, by 32 seconds, at the end of the 161-kilometer ride from Digne-Les-Bains to Pra Loup ski resort.

Fellow American Tejay van Garderen, who was third overall as the stage began, pulled out of the race with a headache and a lack of energy after fighting a respiratory infection for several days.

“It almost feels like I just want to disappear right now,” a despondent Van Garderen said. “It was hard to look my teammates in the eyes [and] it was hard to call my wife and explain to her what was going on.”

Froome, meanwhile, emerged unscathed in the first of four punishing days in the Alps, staving off multiple attacks from his top rivals. He showed great bike-handling skill on the Allos descent, where he whizzed in single-file with three of

| MONDAY, FEBRUARY 23, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

them, each kicking out knees on the twisting, narrow bends.

Geschke was first down the slope, having ridden off ahead with 50 kilometers still to go. Pinot hit the deck when his wheels slipped from under him on a left-hand bend.

“It was really challenging,” said Geschke, whose stage victory was the fifth by a German on this Tour, and ideal for an event that is back on public television in Germany after a hiatus of several years because of doping scandals that tarnished the sport’s image.

“The best day of my life as a rider,” he said of his win.

Contador hit a hole and crashed in the downhill section, tearing his shorts. The 2007 and 2009 champion was forced to swap bikes with teammate Peter Sagan, and rode in more than two minutes after Froome.

“My wheel slipped and I fell. We tried to fix my bike, but it wasn’t working and I took Peter’s

UNSCATHED IN THE ALPS

CHRIS FROOME is followed by Alberto Losada, Vincenzo Nibali and Alejandro Valverde on the descent. AP

UNSCATHED IN THE ALPS

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HINESE Ambassador Zhao Jianhua on Wednesday sought to repair the tattered relations between Manila and Beijing by saying that the Philippines should be a “natural part” of the 21st Century Maritime Silk Road.

Zhao made the statement during the celebration of the 40th anniversary of the start of diplomatic relations between the Philippines and China held in Manila. “ When we talk about the 21st Century Maritime Silk Road, the Philippines is going to be a natural part of this Silk Road; and it is China’s hope that we can work with the Philippines to establish and to start this Maritime Silk Road so that

PESO EXCHANGE RATES n US 45.2470

both our countries can benefit from this great initiative,” he said.

In 2013 Chinese President Xi Jinping, wanting to revive the ancient Silk Road, proposed that China and countries along the route would build together the 21st Century Maritime Silk Road.

Zhao added that China is also promoting regional cooperation through the establishment of the Asia Infrastructure Investment Bank (AIIB), which would be operational by the end of the year.

“We’re glad the Philippines participated in the process; and it is our sincere hope that before end of this year, the Philippines will become one of the founding members of AIIB,” he said.

S “S R,” A

PREPARING FOR THE ‘BIG ONE’ Policemen and commuters cover their heads to simulate a powerful earthquake during a drill at a commercial center in suburban Taguig City on Thursday. Various earthquake drills took place nationwide, as officials and first responders assessed their emergency preparedness. AP/BULLIT MARQUEZ

Apec calls for more private sector investments in infra I B D C

NVESTMENTS in infrastructure to support Asia Pacific’s rapid urban development can be profitable ventures for the private sector, particularly pension funds and insurance firms, the Asia-Pacific Economic Cooperation’s (Apec) Workshop on Infrastructure Financing and Capital Market Development on Thursday showed. At the forum held in Iloilo City, it was discussed that a large amount of capital worldwide

is conservatively invested.

According to the Organisation for Economic Co-operation and Development’s (OECD) Pension Markets in Focus 2014, about two-thirds of the total $96.2 trillion in institutional assets of investors worldwide are invested in insurance firms and pension funds.

The OECD publication said these pension funds have long-term liabilities, which could potentially be matched by long-term assets, such as infrastructure.

The Apec discussions revealed that the development of quality infrastructure has not kept pace with the rapid growth of Apec economies, resulting in traffic congestion, power shortages and inadequate public services, which threaten economic gains of many member-economies.

These problems have earlier been identified in discussions made under the auspices of the Apec Finance Ministers’ Process in previous years.

S “A,” A

n JAPAN 0.3650 n UK 70.6306 n HK 5.8382 n CHINA 7.2868 n SINGAPORE 33.1480 n AUSTRALIA 33.3779 n EU 49.4142 n SAUDI ARABIA 12.0649 Source: BSP (23 July 2015)

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News

BusinessMirror

Friday, July 24, 2015

news@businessmirror.com.ph

Dalian told to ensure delivery of MRT train-car prototype within the month

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By Lorenz S. Marasigan

he transport agency has ordered Chinese train manufacturer Dalian Locomotive to deliver the prototype train car for the Metro Rail Transit (MRT) Line 3 to the Philippines before the end of the month.

Transportation Secretary Joseph Emilio A. Abaya noted that the decision came even though the project implementation team has yet to finish the last stage of the prototype’s inspection.

The prototype is scheduled to be delivered on July 29. “ T h i s b r i n g s u s a not he r step closer to upgrading and

Silk Road. . .

modernizing the MRT 3, and improving our services to the public.

After the prototype’s arrival in the middle of next month, it will be assembled by the manufacturer’s personnel, and we will start static testing by September,” he said.

The project-implementation team is currently going through a checklist with Dalian Locomotive

Continued from A1

Zhao said the Chinese have a very long memory “because we have a very long history.”

“Forty years of cooperation and friendship and they’re good, so we shall look into the future and should not be limited to the next 40 years, the future should be 400 years or maybe 4,000 years,” he said.

“We are friends, we are partners, friends don’t fight against each other,” Zhao said to the applause of the audience.

The Philippines and China relived the warm friendship and cooperation that have existed between them on

to ensure that the prototype train is compliant with the technical components and specifications of the train coaches.

During its last visit in June, the team approved Dalian Locomotive’s choice of better traction motors, which incorporate alternating current technology for the 48 brandnew train cars.

This will result in lesser maintenance requirements in the future.

With shipment scheduled to push through on July 29, the prototype is expected to arrive at the Port of Manila within the week of August 10 to 14.

Earlier, Chinese firm Dalian Locomotive and Rolling Stock Co. committed to deliver at most 13 new coaches by the end of 2015. This will boost the capacity of the system by a sixth, or by roughly 59,000 more daily passengers.

Wednesday, which started when former President Ferdinand Marcos established diplomatic relations during a visit to its capital, Beijing, in 1974, accompanied by then First Lady, now Rep. Imelda Marcos of First District of Leyte.

Mrs. Marcos, along with Manila Mayor Joseph Estrada, were among the guests that coincided with the oath taking of new members of the Filipino-Chinese General Chamber of Commerce Inc. and the Philippine Chinese Charitable Association.

A commemorative stamp was also launched.

Apec. . .

But it seems the relief is a few more miles away, as Abaya announced that the new delivery schedule of the new coaches are set for January, a quarter delayed from the original October target.

The prototype, he explained, will undergo dynamic and static testing and debugging to ensure the new coaches will function at their optimal level.

This will involve the utilization of bogies, devices that support the rail vehicle of the body.

A bogie is used to ensure the train car’s stability both on curved and straight tracks. It also absorbs vibration and minimizes the generation of track irregularities and rail abrasion.

The whole expansion project, amounting to P3.7 billion, will increase the capacity of the line to 880,000 daily passengers, or 66

percent more than the current 350,000 commuters per day.

The project has already been long delayed due to issues with the line’s corporate owner.

The government also plans to modify the structure of its trains from three coaches to four in the third quarter of the year.

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.

The MRT has been under fire for more than a year now due to its bad service that arose from its sorry state. The government is currently rolling out P9.7 billion worth of projects to improve the train line. The state also wants to buy out the corporate owner of the line.

Continued from A1

These problems stem from two major obstacles, namely, the lack of a pipeline for bankable infrastructure projects that can attract capital from institutional investors, and the lack of appropriate financial instruments and enabling policy frameworks for pension funds and insurance firms to expand their investments in infrastructure projects in emerging economies. Finance Secretary Cesar V. Purisima welcomed the private- and public-sector participants in the ongoing Apec forum, and pitched for more investments in infrastructure, especially in developing economies like the Philippines where

such investment opportunities are abundant.

“Making growth sustainable for the long-term benefit of our people involves making smart regional investments now on the future of our economies. We want our economies to work for our people: better connectivity and mobility to better support our growing, upward-moving populations,” Purisima said. “Growing the size of our economies exacts a high demand for quality infrastructure to support such growth. Together, we can unlock smarter ways to keep moving forward as we keep growing,” he added.

Inflation. . .

Continued from A1

will be going back to within target range,” Monetary Policy sub-Sector Managing Director Francisco Dakila Jr. said in confirming this viewpoint.

Aside from base effects, the drivers that will drive inflation upward in the waning months of the year include the lean harvest season and the effects of the expected adverse weather conditions due to El Niño.

“Based on the advisory of Philippine Atmospheric, Geophysical and Astronomical Services Administration, they have upgraded their outlook. El Niño is now expected until the first quarter of 2016. El Niño may intensify in incoming months. However, the negative impact is already been addressed in terms of preemptive importation,” Abenoja said.

Meanwhile, in terms of the country’s output growth, Dakila said, based on his personal assessment, there are expectations that the disappointing first-quarter growth was the floor or the lowest for this year.

Among the early indicators, according to Dakila, stronger growth contributors in the coming months include the robust vehicle sales in the second quarter averaging 17.3 percent.

He also said that the Purchasing Managers’ Index, an indicator of the relative health of manufacturing sector, remains above 50 across several sectors, indicating robust expansion in the second quarter of the year.

The July inf lation numbers will be released in the first week of August.

news@businessmirror.com.ph

The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Friday, July 24, 2015 A3

landing craft heavy Ships seen boosting Philippine Navy’s disaster response capability

Australia vessels to end long good-bye in Manila

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NCE they gift-land in Manila in August, two landing craft heavy (LCH) vessels donated by the Australian government to the Philippines would have ended their long good-bye that began in Cairns last year.

The LCH vessels were formally handed over to the Philippine Navy on Thursday in Cairns, Australia, and immediately departed for Manila, according to Navy spokesman Cmdr. Lued Lincuna.

Lincuna said the turnover of the vessels to the Philippines is the first big-ticket item from the Canberra government. He added that this was made through the signing of a memorandum of understanding between Navy chief Vice Adm. Jesus Millan and Royal Australian Navy (RAN) chief Vice Adm. Tim Barret.

Lincuna said the signing was witnessed by Rear Adm. Leopoldo Alano, commander of the Philippine fleet; and Commo.

Narciso Vingson, commander of the Sealift Amphibious Force.

The turnover ceremony was followed by the commissioning and subsequent send-off of the two vessels and their crew for a voyage to the Philippines. It would be the last leg of a long good-bye that, according to the RAN’s Navy Daily newsletter, began on July 23 last year in Cairns with beaching exercises in Cowley Beach.

The event marked the last time the vessels will sail in company, together with HMAS Labuan, following a history of over 41 years for the Balikpapan Class LCHs. The Australian government announced the donation of the two LCHs in January 2015, following their decommissioning last year. Lincuna, however, said the two vessels are considered in top shape, having been decommissioned from the services of the Australian military on November 19, 2014, where they are known as HMAS Tarakan and HMAS Brunei, respectively.

In his acceptance remarks, Millan conveyed his gratitude to the Australian government and to the RAN for the generous donation, saying that the two LCHs will certainly boost the capability of the Philippine Navy to transport personnel, equipment and aid during humanitarian-assistance and disaster-relief operations.

The vessels will also be useful in transporting troops from one operational area to another.

Early this month the Navy sent to Cairns its designated sailing crew for familiarization and training, which included deck seamanship, ship handling and navigation, as well as shipboard procedures and proper operations of machineries and other equipment onboard the vessels.

Lincuna said the two vessels were expected to arrive in the country on the first week of August.

Years ago, Australia has also donated 21 rubber boats to the military, some of which are being used by a riverine unit of the Army’s Special Forces in patrolling and securing Central Mindanao’s shallow waters, particularly the Liguasan Marsh, which is dotted by Moro bandits.

Once they arrive in the country, the vessels will add to the five LCHs of the Navy. Millan said three of the existing LCHs were on “rotational operations” only.

Aside from Australia, the country is also expecting an LCH from South Korea but, which Millan said earlier, would have to be refurbished before it could be put into operation by the Navy.

South Korea is also providing a squadron of brand-new FA50 fighter jets, two of which will be arriving in December, in a government-to-government contract. Rene Acosta

Palace justifies Aquino exclusion from potential Mamasapano raps

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OMMUNICATIONS Secretary Herminio B. Coloma Jr. justified the exclusion of President Aquino from the list of liable officials recommended for indictment for the death of policemen in Mamasapano, Maguindanao, in January.

Coloma indicated on Thursday that the Palace had nothing to do with the Office of the Ombudsman’s decision to exclude Mr. Aquino with the erring Philippine National Police (PNP), the former being an independent body.

The exclusion, according to the Presidential Communications Operations Office secretary, is part of the country’s legal process.

“Bahagi po ito ng mga prosesong legal na naayon sa ating mga batas,” Coloma told former Sen. Orlando Mercado in Filipino in a radio interview. That is a decision by the Ombudsman, which is an independent constitutional body, he said in Tagalog. “We respect their decision on this matter.”

As far as the Palace is concerned, what is important to the Executive is for the people to see that government branches, including an independent constitutional body like the Ombudsman, is responding to the clamor for accountability in what happened at Mamasapano, he added.

The clamor to make officials accountable ensued after a massacre of 44 PNP Special Action Force commandos in a botched police operation on January 25.

Bringing those accountable is what many of our citizens expect, Coloma said in Filipino, adding those found responsible for the deaths should be made accountable.

Those found responsible must face their liability and ensuring they do so is part of the process of ensuring we can resolve this issue, he added.

However, Coloma clarified it would be inaccurate to say Mr. Aquino was “cleared” of any liability in the Mamasapano massacre, even as the President had admitted responsibility for the bungled police operation.

The Palace official noted that from the beginning, the president was not impleaded in the case. His name wasn’t on the list of people in the complaint filed at the Office of the Ombudsman, Coloma said.

He said the Ombudsman’s spokesman also clarified that the probers found no evidence that Mr. Aquino participated in any of the alleged violations of the law in the Mamasapano massacre. Butch Fernandez

Economy

A4 Friday, July 24, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

46% of Pinoys say P-Noy failed to curb corruption

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By Joel R. San Juan

RECENT survey conducted by Radio Veritas Global Broadcasting System Inc. showed that 46 percent of Filipinos believe that President Aquino’s campaign for “Daang Matuwid” has failed to curb corruption.

Based on the nationw ide pol l conducted by Ver itas Tr uth Surve y i n t he second qu a r ter, 41 percent of the 1,200 Filipino respondents replied “unsure,” and only 13 percent said Aquino succeeded in addressing cor r uption in gover nment.

The survey also showed that the majority, or 53 percent, of those surveyed from Luzon and 48 percent from Mindanao, believe Mr. Aquino’s antigraft campaign failed, while 47 percent from the Visayas said they are unsure.

The survey was conducted in both urban and rural areas nationwide and the respondents were chosen on the basis of stratified random sampling with +/-3 percent margin.

By educational attainment, 52 percent of high-school graduates said President Aquino was unable to address corruption; while 46 percent

of elementary graduates, 45 percent of vocational graduates, 42 percent of college graduates and 44 percent of those with postgraduate degrees said they are unsure.

Veritas Vice President Rev. Fr. Anton C.T Pascual said the survey also identified the government agencies that are perceived to be corrupt, with the Senate and the House of Representatives landing in the first and second spots with 49 percent and 48 percent, respectively.

About 42 percent of the respondents said the Office of the President is moderately corrupt. Also said to be moderately corrupt were the Office of the Vice President, 39 percent; Cabinet secretaries, 46 percent, the judiciary 48 percent.

The Veritas Truth Survey was conducted by the research department of Radio Veritas headed by Dr. Clifford Sorita.

Radio Veritas officials (from left) Rev. Fr. Anton C.T. Pascual, president and executive director of Caritas Manila; Most Rev. Fr. Broderick Pabillo, auxiliary bishop of Manila; Most Rev. Fr. Teodoro Bacani Jr. Novaliches bishop emeritus; and Clifford Sorita, resident sociologist, present the results of the Public Perception Survey on Philippine Corruption in Intramuros, Manila. ROY DOMINGO

Vendors slam privatization of Manila’s 17 public markets

By Marvyn N. Benaning Correspondent

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endors in 17 public markets in Manila are up in arms against a city ordinance that seeks to privatize all of these markets, thus, forcing them out of their jobs.

Supporting the vendors in their opposition to the privatization plan is the Bagong Alyansang Makabayan (Bayan), which is organizing protest actions to compel Manila Mayor Joseph Estrada to retreat from backing Manila City Ordinance 8346, also known as the Manila Joint Venture (JV) Ordinance.

Bayan Metro Manila Spokesman Ram Carlo Bautista said the plan to privatize the 17 public markets appears to be Manila’s own version of President Aquino’s

Public-Private Partnership (PPP).

Under Section 10-B of the Manila JV Ordinance, the city government will offer publicly owned businesses, social services and markets for joint ventures with private firms.

Covered by the ordinance are highways, ports, housing, land reclamation projects, education and school facilities, hospitals and health services.

Bayan Manila said that by implementing the ordinance, Estrada becomes a junior partner of Mr. Aquino “in clearly serving for the best interests of big businesses and not of their constituents.”

It is like fixing things that are not broken, Bautista quipped.

The vendors claimed that seven out of the 17 public markets targeted for privatization will be offered to private parties.

These are Quinta Market, Trabajo Market, San Andres Market, Sampaloc Market, New Antipolo Market, Santa Ana Market and Pritil Market.

To show that it is serious in its own version of PPP, the vendors said the demolition of stalls in Quinta Market in Quiapo, Manila, has reportedly been scheduled on July 27, right in time for Aquino’s final State of the Nation Address.

To show their opposition to the plan, hundreds of vendors and stall owners in Trabajo Market mounted a protest march from Sampaloc to Quinta Market and held a media briefing at the soon-to-be privatized public market.

After the media briefing, they marched to the Manila City Hall to tell Estrada to stop the privatization plan and junk the Manila JV Ordinance soonest.

South Korean firms entering Asean market through PHL

By Catherine N. Pillas

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outh Korean and Philippine firms inked partnerships during the First Korean-Asean Grand Project Partnerships Forum, with more opportunities for cooperation seen in infrastructure, climate change and power, the Department of Trade and Industry (DTI) said.

The DTI said the Grand Project Partnerships Forum—held to support Korean firms entering the Asean market—has already opened up areas for collaboration through the signing of agreements between three Korean and Philippine firms.

Samjin LND Co. Ltd., a Korean LED light manufacturer, signed an agreement with Dazzling Lites Enterprises, a Philippine company that formed an agreement with the Department of Environment and Natural Resources for its “1 LED Tube, 1 Tree Planting and

Growing Program for Climate Change Solution,” or better known as the “1 LED Tube, 1 Tree” LED Tube Campaign.

Korea District Heating Corp. also signed an agreement with Metro Clark Waste-Management Corp. on the use of household-waste material and biomass residual fuel to propel the new power plant being constructed in Clark.

ENESG Co. Ltd., a Korean company that provides power-plant diagnostic technology, also signed an agreement with Cynergie Power Systems & Automation International to improve the performance of aging power plants in Asean countries.

These firms are using the Philippines as staging point for their Asean expansion.

The forum was attended by 72 Korean businessmen, 46 Philippine senior officials and about 200 attendees from Cambodia, Indonesia, Lao

PDR, Malaysia, Myanmar, Thailand, Vietnam and the Philippines.

Trade Undersecretary Ponciano Manalo Jr. said the Asean and South Korea remain important trading partners. South Korea, he said, maintained its position as the fifth-largest trading partner of Asean. The Asean, he added, is the second-largest trade partner of South Korea.

Foreign direct investment flow from South Korea to Asean, meanwhile, increased by 105.88 percent in 2013.

Manalo said South Korea has continuously kept its strong position in terms of trade and investments in the Philippines.

It ranked as the Philippines’s fifth major trading partner, seventh export market, and import supplier. It stands as the 11th top investing foreign country, with $93.21 million worth of investment pledges approved last year.

Experts to detail global trends in store design, ‘9 Ps’ of retailing at Manila APRCE

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ave you heard about the “9 Ps” in retail design and how they have become more critical for a brand’s success today when the “omnichannel strategy” is becoming the norm in the global retail industry?

The 9 Ps in retailing design are just some of the key points international experts will discuss in detail at the Asia-Pacific Retailers Convention and Exhibition (APRCE) 2015 at the SMX Convention Center in Pasay City from October 28 to 30 this year.

During plenary discussions on the topic “Store Design: Trends that Change the Retail Landscape,” Singapore-based Simon Ong, group managing director of Kingsmen Creatives Ltd., will join fellow global design experts in giving attendees in the three-day APRCE fresh ideas on how retailers can thrive in this highly globalized and digitized era.

Ong manages retail and corporate Kingsmen’s Interior Division’s key accounts, including Abercrombie & Fitch, Aldo, Dickson Group, Dior, Fendi, Ralph Lauren, Robinsons, Tiffany & Co., Uniqlo and Victoria’s Secret.

“Design is not only used to complement business, but to solve problems for business, as well. For instance, a well-designed brand strategy plays a big role in creating a seamless customer experience for a corporate interior, showroom, retail store, web site and marketing

ONG

collaterals. These are all part and parcel of a business’s communication strategy, and will help businesses to consistently communicate the right message to their target markets when designed properly. In today’s wellconnected and fast-changing global market, we need an integrated communication strategy in the physical and digital space. Hence, design is essential to bridge the gap between the two spaces,” Ong stressed.

He noted that store or retail design is a physical expression of a retailer’s marketing objectives. “Today store design is even more important compared to the past, when digital space was not in play. With an increasing number of retailers embracing omnichannel retailing, store design is crucial to redefine

this new “click-and-mortar” space by creating a brand experience that remains relevant to a brand’s retail strategy,” Ong explained.

“In a physical store space, we have to imagine ourselves as the ideal customer and think of every touch point for that particular customer—from the time she first approaches the store and walks through the entrance, to the entire shopping experience that she is about to encounter. We have to consider everything, from how the visual merchandising display will attract her attention, visible signage and lighting to colors and fixtures, etc. All these are important physical touchpoints within the store that constitute Physical Ambience, which is one of the 9 Ps in retailing.

It is the responsibility of a designer to know and address the other 8 Ps of retailing—i.e., Purpose, Positioning, Products, Promotions, Place, Pricing, People [staff and customers] and Processes—to achieve the ideal store design and meet the retailer’s objectives.”

Within the next decade, Ong said more retailers will embrace an omnichannel strategy that straddles the physical store and online space, and the “click-and-mortar” will change the way transactions are done instores and inevitably affect how retailers operate and how a designer designs the store.

With this, he said the integration

of technology, such as mobile apps, interactive screens, video walls, and RFID and beacon technology, will offer customers added convenience and greater connectivity when browsing and purchasing products.

“As a result, store designers will have to explore different ways to maximize dwell time in-store, without compromising online or mobile accessibility for customers.

Customer touchpoints and psychographic patterns must be analyzed to redefine and redesign a whole new retail experience—including alternative-store processes—to facilitate sales transactions across several platforms,” he added.

Ong said a good design propagates a positive perception of a brand, often influencing customers to take action by learning more about the brand, making a purchase, or telling others about it. He gave these examples:

Store design. Good design can encourage and entice customers to act positively, by attracting their attention to try products in-store. For example, a sophisticated fitting room in a ladies fashion store with control switches for different mood lighting would prompt customers to try on a range of clothing—from work dresses to ball gowns—in relevant settings within a single location, thus, providing a private experience that enables easier decision-making.

Way finding. Well-designed and strategically positioned signages

will help customers save time by pointing them in the right direction.

Visual merchandising display. Well-coordinated VM displays tend to capture the attention of customers with an invisible sign that says “buy me, buy me,” hence encouraging them to purchase more items.

The Singapore expert said there are many outstanding store designs globally. He cited three stores belonging to different retail categories in different countries as examples:

Apple flagship store in New York City. Although it has been around for years, this Apple store is still an outstanding store with an excellent design that continues to attract many people to enter its premises whenever they are in its vicinity. You may only see a big Apple logo within a glass house and nothing else from the outside, but it will “pull” you in to enjoy a friendly shopping experience and other surprises when you are inside the store;

Lane Crawford flagship department store in Shanghai. This is another example of an outstanding store design. Their approach is simple and focused on giving its merchandise the limelight. The store design is understated but elegant, paying attention to the design language and exhibiting excellent quality in the smallest details—from ceiling to flooring and all touchpoints from the entrance to the visual merchandise. When all the important areas

of store design are taken cared of, the rest is up to their superior concierge services from the sales floor to the VVIP rooms; and

The new DFS store in Singapore Changi Airport’s Terminal 3. This new double-story store has a duplex façade that resembles any high-street flagship store that takes residence inside the airport, unlike a typical airport duty-free store. It is the first of its kind and aims to provide a new customer experience where one can browse and sample special collections of fine liquor or lounge at the famous ‘Raffles Long Bar’ to enjoy a Singapore Sling and other cocktails—all in the house.

The store design and ambience befit a prestigious men’s club with a private escalator within the store.

Over 30 international experts will speak and share their insights on the trends and updates on the global retail and marketing industries during the APRCE 2015.

PRA President Lorenzo C. Formoso said the three-day event aims to explore and discover new approaches to issues facing the region’s retailers and highlight innovative solutions that can help them differentiate themselves from competitors, and to deliver greater value to consumers.

APRCE Manila 2015 is spearheaded by PRA Chairman Frederick Go, president of Robinsons Recreation Inc., as the overall chairman.

news@businessmirror.com.ph

Economy BusinessMirror

Friday, July 24, 2015 A5

Lotilla: ERC should be under DOE, not OP

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By Lenie Lectura

ORMER Energy Secretary Rafael Perpetuo M. Lotilla on Thursday stressed the importance of placing the Energy Regulatory Commission (ERC) under the Department of Energy (DOE) as a way to enhance and institutionalize their coordination.

During the Ayala-University of the Philippines School of Economics (UPSE) Economic Forum on Challenges of Governance in the Power Sector, Lotilla said it is not right to place the ERC under the Office of the President (OP), as mandated by the Electric Power Industry Reform Act (Epira).

“The law [Epira] does not attach the ERC to the DOE because the regulatory agency has always been attached to the OP for political reasons,” said Lotilla, citing oil price, which was then a major political issue.

“It was more vulnerable when attached to OP because the relationship was more direct and politically sensitive,” he said, citing that institutions matter, particularly in building an enabling environment for private initiative. “Strengthening institutions and working together is important.”

His proposal does not require a new law since ERC’s mandate, when it comes to making decisions to protect

Release of rehab funds still delayed

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e l ay s

BRIONES: “It’s still ‘business as in the usual’ for the government and release the agencies appear to have no of funds continsense of urgency in dealing with a ue to hound the humanitarian crisis. The absence government’s efof a clear central and authoritative forts in rehabiliagency/body that will implement, tating areas deoversee, coordinate and have stroyed by Superstrong mandate to monitor all typhoon Yolanda reconstruction/recovery initiatives (international is the problem.” code name Haiyan), according to civil-society group Social Watch Philippines (SWP).

SWP convener and former National Treasurer Prof. Leonor Magtolis-Briones said this is despite the Department of Budget and Management’s (DBM) disclosure that it released P84 billion from the Comprehensive Rehabilitation and Recovery Plan (CRRP).

The civil-society organization said these funds were intended not only for Yolanda-affected areas but also for the rehabilitation of areas affected by the Bohol earthquake and areas hit by typhoons Sendong and Pablo.

“It’s still ‘business as usual’ for the government and the agencies appear to have no sense of urgency in dealing with a humanitarian crisis. The absence of a clear central and authoritative agency/body that will implement, oversee, coordinate and have strong mandate to monitor all reconstruction/ recovery initiatives is the problem,” Briones said.

Further, the CRRP funds also have a resettlement cluster, which comprises the majority, or P75.679 billion, of the total.

The National Housing Authority, the main implementing agency for resettlement, is getting the highest allocation of P72.255 billionfor the construction of resilient and build-back-better-compliant housing for Yolanda-affected families.

Briones said less than a third, or only P21.438 billion, of the P75.679-billion CRRP funding requirement for resettlement has been released as of June 15. Only 73,000 housing units out of the 205,128 requirements are currently being built.

The bulk of the funds for delivery of Emergency Shelter Assistance was reportedly downloaded to local government units as of June 30, but has not been received by intended beneficiaries.

“Snags in finding appropriate lands for resettlement areas continue to haunt the fast delivery of shelter to Yolanda survivors. Families who continue to stay in areas declared ‘unsafe’ and do not want to move to relocation/resettlement sites are not entitled to housing assistance and the government has no clear interventions for them,” Briones explained.

Information and data-transparency issues were also raised by the group with unclear sources of funds for the P170-billion funding commitment of President Aquino for the CRRP. By law, the funds should come from the National Disaster Risk Reduction Management Fund, regular budget and foreign donations only.

The Rehabilitation and Reconstruction Program (RRP) allocation in 2014 was P20 billion and P1 billion this year. The proposed RRP for 2016 is 18.9 billion.

The SWP reported that budget allocation does not specify the programs, activities and projects intended for Yolanda reconstruction and rehabilitation. Some of the budget items were found to be part of the regular operations of the agencies for disaster-risk reduction management and not specifically for Yolanda. Janine Soliman

the consumers, will remain.

“No, that is not needed. All that is needed is for the President to transfer ERC from the OP to the DOE. I think that transfer should be accompanied by additional resources for ERC, in terms of budgetary support to carry out its functions, as well as for the rationalization of salaries for ERC staff,” he said.

And if the government cannot provide a bigger budgetary amount that is needed by the ERC, Lotilla said the ERC should be allowed to keep part of its in-

come to support various activities.

Vicente S. Perez Jr., also a former energy secretary who was among the panelists, agreed. “Yes, the ERC needs to keep whatever amount it collects and not remit it fully to the Department of Budget and Management.”

When sought for comment, ERC Executive Director Francis Saturnino Juan said coordination between the two agencies exists. “The objective he mentioned—the coordination between the DOE and ERC—can be achieved under the existing setup.

Former Secretary Petilla knows that.”

He added: “In terms of discharge of functions, ERC was made by law independent even of the OP.” But Lotilla replied: “But even if we are not able to attach ERC to the DOE, we still have other mechanisms like bilateral consultations and having more frequent coordination and interaction between the DOE and ERC.” Petilla, on the other hand, said: “Either way is fine by me on whether ERC should be under the DOE. The important thing is that both agencies work together.”

A6 Friday, July 24, 2015

Opinion BusinessMirror

editorial

Open High School System

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ecently signed into law by President Aquino, Republic Act 10665, or the Open High School System Act, will hopefully give more Filipinos access to a better education.

The purpose of the law, according to Rep. Kimi Cojuangco of Pangasinan, is to “provide equal opportunity for adults and young people of high-school age who are out of school to avail themselves of free open high-school education through the distance learning modality.” Cojuangco, who chairs the House Committee on Basic Education and Culture, was the author of the House version.

The “Open High School System” (OHSS) will be available all over the country under the Department of Education’s (DepEd) alternative secondary education program. This program is designed to allow eligible students—both young people and adults—to learn on their own without necessarily having to attend formal classes. It will be provided without cost to those who qualify.

No matter how noble the intent, and despite ongoing efforts, there are too many Filipinos who simply drop through the cracks of getting even a high-school education. The country is too large with many remote areas.

The wealth and income disparity between urban and provincial locations is too wide to ensure that what may work in the metropolitan areas to bring a sound educational system to a target audience will also properly function in the provinces.

The bill is to provide a framework for the DepEd, the Department of the Interior and Local Government, and local government units (LGUs) to each play a critical role in the OHSS. The concept is to provide instructions by whatever means, or what works best or suitable for local conditions. Rather than a traditional classroom environment with a daily schedule, it is envisioned that instruction could be given through print, radio, television and computer-based communications, satellite broadcasts, teleconferences, and other multimedia learning and teaching technologies that allow students to learn on their own.

The problem with these kinds of ideas that tend to look good on paper is that the implementation is bound to be faulty and haphazard. However, a closer reading of the bill shows that Cojuangco and her associates may have shown more than we have come to expect from our legislators at times. The DepEd will have the responsibility to train teachers, teacher advisers and community advisers, in coordination with LGUs and non-governmental organizations concerned, for the OHSS. That provision provides both a chain of command and a chain of responsibility for the OHSS program. Teachers and support personnel will receive incentives, monetary compensation and honoraria as they are trained in relevant modules of the OHSS. An individual program like OHSS is not going to solve our educational system’s problems. But each one successfully executed together with other ideas will make a large and better difference for the nation’s future.

Pyrrhic James Jimenez

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spox

hen I was much younger, I was a delegate to a Model United Nations assembly, representing Lebanon. There was a motion on the floor that called for a selective logging ban that would have protected a critical watershed in a region that was on the brink of a massive water crisis. It wasn’t an acceptable solution for everyone, of course.

After almost an entire afternoon of debating, the house was finally divided and the matter was put to a vote. The proposed logging ban was struck down by the thinnest of margins, and after the last nay vote was counted, a spontaneous cheer broke out among those who voted against. The triumphant delegates congratulated their allies and patted each other’s backs. “We won, we won,” they started chanting.

It went on for about five minutes until one of the moderators strode to the microphone and had us all settle down. In a serious voice, he cautioned us to look at what had just transpired in a different way. Sure, he said, one side won and another side lost, but in the end the bigger defeat was the inability to come to a consensus which would have averted a crisis. Those against the measure, he continued, succeeded in protecting their interests, but in doing so effectively chose not to solve the problem that af-

fected everyone. Personal interest— albeit cloaked in the mantle of a nobler cause—took precedence over the need for a solution.

The air was heavy with the unspoken question: Was the personal victory worth it?

The elections are less than 10 months away and it seems that every effort by the Commission on Elections (Comelec) to ensure automation, as mandated by law, is being stymied at every turn by various groups avidly pursuing their own interests, seemingly mindless of the potential consequences of their efforts.

There are those whose avowed goal is to prevent an unpopular corporation from getting the automation contract simply because they don’t trust the corporation. There are others who are out to prevent a competitor from getting the contract because they want the contract themselves. And there are those who wave a flag they call “nationalism.” The

list of motivations is endless, and yet, although each of these groups claims to be moved by laudable intentions—and they might very well be—their obvious willingness to bring the country’s automated elections system to its knees at all costs ultimately negates their nobler agenda.

By continually throwing roadblocks in the Comelec’s way instead of constructively engaging the poll body to ensure that the system in use meets the most stringent requirements of transparency and security, these groups are pushing the country closer and closer to the point where a return to manual elections remains the only viable option. Worse, they are doing this without actually presenting alternatives that do not require a massive overhaul of existing election laws, nor even credibly provide the kinds of guarantees they claim are missing from the system currently in use.

A return to manual elections will result in a massive resurgence of people trying to subvert elections, and there is no guarantee that all those efforts will be discovered and stopped in time to prevent fraudulent wins. Based on the fact that not a single claim of cheating from 2010 and 2013 has been proven, the bogeyman of possible manipulation under the automated election system pales into insignificance—especially when compared with the certainty of cheating in manual elections.

A return to manual elections will once again paint bull’s eyes on the backs of the Boards of Election Inspectors, making them targets for bribery, harassment,

intimidation and violence. Teachers will once again be the focal point of efforts to illegally influence the outcome of elections at every stage, from vote counting to the preparation of results; where teachers are bullied and threatened mortal harm. That these things happened under manual elections is a fact, and facts don’t change. Nor can they be prevented from happening again with the insulting proposal to “just pay the teachers double.”

A return to manual elections will reintroduce the anomaly of “incomplete and unofficial results” being reported as news while the country waits for weeks and weeks before knowing who the winners actually are. The long wait for complete and official results is a fertile breeding ground for speculation and political machinations that undermine the credibility of the elections and erode the mandate of those who are eventually declared winners.

With shaky mandates, these winners will never be able to govern as effectively as they could—as we need them to—and it is perhaps inevitable that these winners themselves will learn to be insecure leaders obsessed with ensuring their next electoral victory, thereby perpetuating the problem.

Perhaps it is time for people to sober up and ask themselves if such a pyrrhic victory would be worth it, simply so that this handful of worthy men and women could have their way.

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

Opinion BusinessMirror

opinion@businessmirror.com.ph

Friday, July 24, 2015 A7

Competition and scams Alvin P. Ang

EAGLE WATCH

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wo critical and important pieces of legislations were signed into law by President Aquino this week. These are the Philippine Competition Act, or Republic Act 10667, and the amendments to the cabotage law. These came at the homestretch of the Aquino administration and further strengthening the country’s commitments to the Asean economic integration.

In gist, the laws are designed to

provide fair play in the course of doing business in the country. They are to benefit consumers by allowing an environment of expanding choices and prices determined through efficiency and not through agreements, negotiations and influence. The amendments to the cabotage law effectively removed the internal barrier that limits foreign vessels from directly bringing cargoes to other ports within the country. This has made products costlier in the provinces and has, in a way, contributed to higher inflation. Thus, these laws will certainly attract more foreign investments, lower the cost of doing business, and provide consumers with efficiently priced products.

Again, in the midst of these good news, a barrage of alarming news on the proliferation of investment scams came along. The competition laws again are buried by these economic news that are immediately affecting people. The recent debacle involving One Dream Global Marketing and the subsequent warnings of the Securities and Exchange Commission (SEC) on related schemes, such as FLAG and Success2000, bring to fore a recurring issue that no existing law is able to stop. Consider these data on the biggest investment scams and losses from Salve Duplito: 1. Legacy Group (2008)—P30 billion 2. Multinational Telecom Investment Corp. (2002)—P25 billion 3. Aman Futures (2012)—P12 billion 4. Performance Investment Products Corp. (2007)—P11 billion 5. Mateo Ma nagement Cor p.

(2003)—P4.3 billion There are still a number of smaller schemes implementing almost the same low risk—high return approach that have gone unnoticed, or because people did not bother to complain. The reality is that these scams recur because there remains a huge gap in financial literacy and inclusion in the country. It can be observed that the scams rode with the economic boom. For instance, those that occurred in the late 1990s to early 2000s rode on the crest of the economic expansion under former President Fidel V. Ramos. At that time, the target were local workers and professionals concentrated in urban centers—mostly in Metro Manila. For those riding the recent growth of the economy, the approach has been to target locals, as in the case of Aman Futures and the recent One Dream.

Nonetheless, because of social media, they have been able to penetrate a wider segment of the populace, including overseas Filipino workers (OFWs).

Understandably, as the economy

continues to expand and incomes grow, people are looking for opportunities and investment instruments that give a higher return for their savings. With the local interest rates hitting all time lows (we have projected it to remain at these levels for some time), those with extra cash are tempted to look for other investment opportunities with higher returns. This tells us that people with extra resources are in need of basic financial information and knowledge.

We have found this to be true in our research of OFWs, their families and those families who do not have OFWs. Most Filipinos claim that their financial knowledge is self-developed and not learned from anywhere. Responses to basic financial-literacy test, such as interest rates, inflation and savings, showed that correct answers are just about half of the respondents.

With these news coming together at the same time, there need to be a basic response from the government beyond warnings from the SEC. Putting the brains into jail cannot bring back the lost investments—much more the dreams and aspirations of those who were gypped. In line with this, a small analogy on competition and scams can be considered. Competition, when allowed freely, will definitely lead to more information, better choices and better quality products (investment instruments). In small investors, the competition for investments is dictated by the returns—hardly anyone looks at the three other conjoined characteristics, i.e., risk, liquidity and taxes.

This means that going into investments requires beyond having street-smart knowledge and needs to have a more detailed understanding of these four characteristics. It is hoped that beyond creating the fair environment for competing for investments, the government should jump-start a massive financial information and literacy campaign that can be implemented by schools, universities, and even different civil-society advocacy groups. This should set the standards and competencies of having an organized financial- literacy campaign that will support the competitive environment. Competition works best when the participants and beneficiaries are wellinformed on the nature of their choices.

We would like to invite you to the Ateneo Eagle Watch Mid-Year Briefing, scheduled August 6, 2015, at the Ateneo Rockwell Campus. As seats are limited, please reserve your seats via eaglewatch.soss@ateneo. edu, or call 426-5661, local 5221 or 5222, and look for Riz Jao. Alvin P. Ang, PhD, is professor of Economics and senior fellow of Eagle Watch, Ateneo de Manila University’s macroeconomic forecasting unit.

Blaming the media

BLOOMBERG VIEW

I

t’s too bad the central-banking profession has no Hippocratic oath. If it did, Haruhiko Kuroda would’ve known better than to harm Japan’s reflation regimen by saying prices are about to “accelerate considerably.”

Everyone knows the Bank of Japan (BOJ) governor is gunning for a 2-percent inflation. Now, they also know how delusional his team is becoming as that goal fades further into the future. Kuroda’s comment cuts both ways: If he’s right that consumer prices are about to surge, then he has just scared Japan’s 127 million people into spending even less.

And if he’s wrong, the BOJ has just

burned the last shreds of its credibility with world markets.

For now, the latter seems more likely. Markets called Kuroda’s bluff as the yen and Japanese government bond (JGB) yields barely budged. Had traders believed Kuroda’s warning, 10-year yields wouldn’t have fallen to 0.40 percent on Wednesday, compared with 2.32 percent in the US. That explains why, with a couple

ago. Anyone now can be a singer by posting his or her performance on social media. Anyone can be a writer by blogging. Anyone, in fact, can call himself or herself a film critic by coming up with his or her own Web page of film criticisms.

There are two territories that have been remiss in all these debates: the home and the school. People talk about how there is a lack of role models for the youth. We do not need heroes from the pages of history because, for many generations, parents have served as the heroes of home. But, then again, globalization and migration has caused the loss of parents at home.

In schools, universities now tend to please the students and the parents. The stronghold of the faculty members, the so-called teachers, is gone. The colorful mentor is not welcome anymore with his colorful phrases to describe the status of the pupils. Students are sensitive and are in need of protection. The edgy debate to which the previous generations had been exposed is not mainstream anymore. The classroom is ran through tweets and FB postings.

A teacher should be cool and should be a dude.

In the 1950s the war served as an inspiration for the young men and women of that period. We should have not fought that war, the historians would comment afterward.

Even the doubts became an act of faith. On what wings of belief does the present generation fly?

on the verge of an inflation surge.

Nor do Japan’s mainstream price gauges fit Kuroda’s narrative, which explains why his team is eyeing a new measure. It’s highlighting charts showing that inflation advanced 0.7 percent in May, well ahead of the official 0.1 percent. To get there, staffers stripped out both fresh food and energy (the monthly consumer price index excludes only food). But this is a slippery slope. Fudging data won’t change perceptions. Only increased confidence in Japan’s future can do that.

Kuroda might consider talking less and doing more to achieve that goal. One suggestion: Focus on qualitative, rather than quantitative, easing. The quantity of money has surged since April 2013, when Kuroda pushed the BOJ into uncharted territory. He expanded the bond-buying campaign in October 2014, when policy-makers pledged

to purchase about $700 billion of public debt each year. The BOJ also quadrupled purchases of JGBs maturing in 25 years or more.

Yet, the bank is beginning to “run out of road,” said Andrew Colquhoun, head of Asia-Pacific sovereign ratings at Fitch. Volatility has all but disappeared from trading in Japanese government debt, as monetary largess corners the market. A similar dynamic is deadening debt backed by mortgages, assets and local-government IOUs. The focus, Colquhoun said, must be on evaluating which securities the BOJ buys to see what’s gaining traction and what’s not—and recalibrating accordingly.

Kuroda also should be prodding the government to carry out the structural reforms needed to boost wages and gross domestic product.

In its latest growth strategy unveiled last month, Prime Minister Shinzo

Abe’s government said it’s aiming for a 2-percent real growth over the next few years. That’s highly unlikely to happen, though, without extending the yen’s already massive 35-percent drop under Abe, Colquhoun said. “We need real progress on reforms to get there,” he said.

To that extent, Kuroda is stuck.

Government officials make it clear that a yen below 125 to the dollar is undesirable (it’s now about 123).

That’s why Pimco has a point in favoring longer-term debt. “The long end of the JGB yield curve remains attractive on a relative basis, given the BOJ’s powerful support firmly in place,” Masanao said.

The BOJ, in other words, can talk about surging inflation all it wants, but conditions on the ground indicate otherwise. In the meantime, as he tries to change them, Kuroda should be mindful that job one is to do no harm to Japan’s revival.

Tito Genova Valiente

T

annotations

here is an ad showing on TV where celebrity parents Ryan Agoncillo and Judy Ann Santos face a quandary. Their daughter has just asked them what is the meaning of kabit.

The two parents turn to the nanny, who points to the TV set on top of the table. The next scene shows the parents talking to the child. We do not know what they are telling their daughter. There is no assurance that the questioning of the girl will stop there to terminate the moral crisis of her parents.

The irony of the scene is not lost to the critical audience. The two parents are part of TV programs and, for that matter, films, where certain things that young children ought not to know are bandied about or articulated or dramatized.

The ad’s lesson is also not lost in terms of its value. The problems of the Agoncillos are not unique to them. All young parents with young wards are faced with the same problems: How to shield their kids from atrocious, horrible shows and programs that are the regular fare of free TV and films.

The notion of censorship has remained more contentious than ever. We, adults, do not relish the idea of giving judgment on what we should be watching to people who are not exactly known for their critical judgment.

Sex and sexuality are two domains our society has not come to

Bank of Japan only imagines inflation William Pesek

resolve yet. We remain prude and crude when dealing with the notions of sex. Malice and lust are two favored flavors we use to coat our narrative about the sexuality of men and women. Unfortunately, we have not succeeded in our attempts to teach any generation how to contend with issues of morality. What we easily get in terms of comprehension is that we should protect our children from stories about sexual affairs and cohabitation. Corruption does not bother us. Bad taste, which is in abundance in television shows, does not occupy a greater concern of parents and guardians.

In other countries, there are TV programs that are loathsome but there is also a preponderance of presentations that aim to educate or initiate young minds to ask questions.

Our newscast is showbiz or gimmickry, with newscasters parlaying charm, or what they think to

be allure, instead of wisdom. I have written about this again and again: the wordings of news items follow a formula, with words and terms limited to a few phrases. Count the frequency of the word patay, meaning “killed,” and you get the feel of what is news for the networks and what is substantial eventually for the listeners. The hyperbole or exaggeration is preferred over even languages. The world screams of murder and massacre that we end up exhausted or jaded.

The control over what is right is gone. Listen to the discussions about how nonsingers are becoming more popular than singers in the music sector, and you can understand how standards and norms have changed.

This is not even capitalism at work; the present dispensation over television networks is marked by the dominance of the mercenary.

Boy Abunda, who, for a long time, projected an aura of critical thinking, with a command of English not found readily in other showbiz commentators, is quoted as favoring the nonsingers. He is said to have admonished the critics of nonsingers to look at these creatures and take note of what makes them popular. The advice, if indeed it was given, is asking people to follow the models of the mediocre and the gross.

I am not surprised at all that the dumbing of discussions is happening. Anti-intellectualism is on a surge. The average is favored, because knowledge has been made available through computers and technologies. Technologies have made available to many what was rare years

of regrettable words at a Bangkok conference on Tuesday, Kuroda undermined more than two years of unprecedented monetary stimulus.

Unless the BOJ has compelling data—and is willing to share it— showing that inflation expectations are moving its way, this is a risky gambit. The folks at Pacific Investment Management Co., for example, think more monetary easing is on the table as headwinds mount. China’s slowdown alone may be reason for the BOJ to stick to an easing stance, said Pimco’s Tomoya Masanao. Risks abound for a deflationary shock from global equities, currencies or oil prices.

Gold, meanwhile, may soon sink below $1,000 an ounce for the first time since 2009, according to Goldman Sachs analyst Jeffrey Currie.

That’s hardly a sign that markets sense any of the world’s three biggest economies (Japan is No. 3) are

E-mail: titovaliente@yahoo.com