BusinessMirror August 26, 2015

BusinessMirror

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

U.N. MEDIA AWARD 2008

A broader look at today’s business Saturday 18,August 2014 Vol.26, 10 No. 40 Vol. 10 No. 321 Wednesday, 2015

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

China gloom dims hopes for further imports rise

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HE surge in the inward flow of electronic products pushed the country’s merchandise imports to a 22.6-percent growth in June to $5.919 billion, although the recovery is seen temporary due to the impact of the developments in China, the country’s top source of imported goods.

INSIDE

FOR YOUR KIDS’ TECH NEEDS, FOCUS ON ESSENTIALS AND PRICE D

To the guidance of Your will

EAR Lord, take all our freedom, accept the whole of our memory, understanding and will. Whatever we have or hold comes to us from Your bounty. We give them back to You. We surrender them all to the guidance of Your will.

Your grace and the love of You are wealth and more than treasures, enough to quench our thirst in all the days of our life. Help us to be in the state of grace always. Amen.

DAILY PRAYERS, VIRGIE SALAZAR AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

B C U. O

Wednesday, August 26, 2015

consumer activities during the third quarter of the year due to low seasonal demand for consumer goods, the recovery of government spending should keep imports afloat, particularly on imported capital goods,” he explained.

However, former Philippine Economic Society (PES) President Alvin P. Ang said that, while the hike in imports is certainly a “good news” for the Philippine economy, it may only be temporary.

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SPECIAL REPORT

WHEN IS A MICHELANGELO NOT A MICHELANGELO? »D4

BusinessMirror

The double-digit increase in June was not enough to pull up the country’s imports growth to positive in the first semester. In the January-to-June period, imports contracted 2.8 percent to $30.724 billion, from $31.611 billion in the same period last year.

“For the remaining months of the year, domestic demand is expected to prop up imports growth,” National Economic and Development Authority (Neda) Director General Arsenio M. Balisacan said.

“While there may be a slack in

D1

For your kids’ tech needs, focus on essentials and price

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B O L. G Austin American-Statesman

OU’RE forgiven if you’re a parent and you left some tech shopping for your child for the last minute.

It can feel like a trap, buying something you hope will last the whole school year—a smartphone, computer or data storage device—with the nagging feeling that something better is right around the corner.

First, let’s cast out that bad feeling right now. Sure, there’s probably a new iPhone coming soon and gadgets are ever-evolving. But it’s not your fault that Microsoft released Windows 10 late in the summer, unleashing from PC companies a flurry of attention-grabbing new—or updated—laptops and tablets. Or that Apple uses promotions to unload inventory just as it’s readying new gear for the holiday season.

Take a few deep breaths. Relax. It’s fine. What can you do? I think the first thing is to recognize that not all tech gear aimed at students is essential. And certainly for students, who tend to put more wear and tear on gadgets as they’re on the go, it’s not always smart to opt for the most-expensive tools.

So let’s take it category by category to figure out what you should and shouldn’t be looking for as the first day of school approaches.

LAPTOPS THERE was a time when it seemed like tablets, such as Apple’s iPad, were going to decimate the market for laptops and desktop computers.

But then tablet sales fell back down to earth as people realized they’re not always ideal for getting schoolwork or desk work done all day. Meanwhile, phone screens keep getting larger and laptops slimmer and lighter, so tablets seem less essential.

A good laptop is still a no-brainer for any student, but except for the most demanding college students studying, say, design or engineering, a top-of-the line model with tons of horsepower isn’t necessary.

Chromebooks, which run Web applications and primarily use online storage, can be great bargains at under $250, while some Windows 10 hybrid devices that can double as a touch-screen tablet can be had for under $500, though some of them are limited in storage when you deduct the space that Windows takes up.

Apple’s MacBook Air and Dell’s XPS 13 are the gold standards for sleek, lightweight and durable laptops, though you’re looking at prices that start at around $800-$900. An older model on clearance or refurbished models are options to drop the price down further and still get a versatile notebook computer with a warranty.

TABLETS AND E-READERS SOME schools issue tablets to students for the use of educational apps or to access school curriculum portals online. If that’s not the case for you, tablets can still be a good investment, especially if they’re also being used as e-Book readers.

The iPad (Air starts at $399) is still dominant in terms of the number of quality tablet-specific apps available, but if the goal is mostly to access the Web, Android-based tablets can be cheaper.

Tablets that run Windows 10 often lack enough memory to install many full-scale Windows apps beyond

the basic operating system. If you go this route, you’ll want to invest in some external storage, either USB memory sticks or an external hard drive. Of course, there’s also online storage, which we’ll get to in the next section. As far as traditional black-and-white e-Book readers, Amazon’s Kindle is still the unrivaled leader.

The six-inch Kindle Paperwhite is probably your best bet.

STORAGE THIS is very simple. If your student has a laptop where they keep schoolwork and any ongoing projects, they need to have a regular backup. That can be an online backup, like using Apple’s iCloud, Microsoft’s OneDrive, Dropbox or any other online data services. Doubling up with a hardware backup as well is even better.

Most students should have at least two USB thumb drives; one always manages to get lost. Don’t spend a lot on a thumb drive unless your student needs a largerthan-usual capacity drive for enormous files. If that’s the case, an external hard drive might be a better option.

How big should an external hard drive be for backups?

Twice the size of a computer’s hard drive is a good rule of thumb, especially if it’s going to be used for more than just backups. A 1-terabyte (TB) external drive size is pretty standard and not too expensive.

includes 1 TB of online storage as well. You can find an even cheaper student version aimed at college students that lasts four years.

As long as you keep subscribing, you’ll have the latest versions of all the Office apps whether your student uses Windows, PC or mobile devices.

CHARGERS STUDENTS and other busy people on the go always need at least one more USB charger or charging cable for their phone. These can wear out quickly or get lost, so having extras on hand that can power up tablets, phones

and other USB-powered devices is always a good idea.

WHAT TO AVOID HERE’S what not to buy a student: a video-game console (I’m shocked that lots of back-to-school gift guides include PlayStation 4 and Xbox One systems), a prepaid account for online storage (most students can more than get by with a free account) or a big-screen HDTV. Especially in a dorm situation where space is at a premium, a modest TV is fine—and lots of students are going to be watching video on their computer monitors, laptop screens, tablets or phones anyway. ■

OFFICE 365 WHEN Microsoft introduced its Office 365 software suite—which means you pay a yearly subscription to use Word, Excel, PowerPoint, etc., instead of owning them forever—I was pretty skeptical.

But 365 won me over, especially since there are lots of discounts on the software for students and educators—and because it now includes Office 2016 for Mac, a big overhaul. If you have a home with a mix of Windows, Mac and mobile devices, it makes sense to buy a code that entitles you to install Microsoft Office on five devices, whether they’re Macs, Windows machines or tablets, including iPads.

Amazon has it listed for $74 as of this writing—and you can share the subscription with the whole family. It

TURNING UP SOUND TO A WHOLE NEW LEVEL MARSHALL headphones and Marshall amplification proudly introduce Major II, the latest headphones succeeding the original Marshall Major.

An impressive second act, the classic Major kicks up its performance a few notches. Updated sound, looks, durability, and improved ergonomics give way to a whole new level of listening. A rock-solid character that’s built to last, the Major II makes its presence known.

Its more advanced sound features include customized drivers to deliver deeper bass and more extended detailed highs with a redefined mid-range and overall lower distortion. The detachable double-ended coil cord with mic and remote is equipped with an

L-plug end, providing improved durability and carrying case. The dual 3.5mm jacks allow you to choose which side you prefer to wear your cable on or plug in and share your music with a friend.

The Major’s classic good looks have been upgraded to a more rounded construction and extra durable vinyl finish. With its newly constructed hinges and headband design, the Major II fits better than ever. Allowing for increased flexibility and the ear caps to rotate more freely, the Major II adapts to your head shape for increased comfort during those long listening sessions.

True to form, the Major II is yet another solid workhorse manufactured in the trademark Marshall way.

LIFE

D1

PROPERTY OF THE MONTH

THE QUAINT AMBIANCE OF COUNTRYSIDE EUROPE

PHL’S SLOW BUT EXPENSIVE INTERNET SERVICE

BusinessMirror E1 | Wednesday, August 26, 2015 Editor: Tet Andolong

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Megaworld establishes a residential condominium cluster in the country’s first and only vineyard resort community in Tagaytay.

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THE QUAINT AMBIANCE OF COUNTRYSIDE EUROPE T B I Q

HE morning air is always crisp, the afternoons are often a mixture of subdued warmth and a laid-back atmosphere, and the sun turns slowly from vibrant yellow to fiery orange over the sloping hills of the Taal Volcano. Then there comes the night to cool the weather, with fog covering the rows of lush pine trees and wide roads.

This is a typical setting in Tagaytay City—its unique charm and accessibility make it undeniably one of the country’s most popular tourist destinations near Manila. And, sometimes, it becomes so enticing to simply commune with nature and find a permanent home in this prime vacation spot.

Megaworld’s Global-Estate Resorts Inc., the leading developer of tourism estate in the Philippines, creates this exclusive, low-density residential condominium cluster impelled by the rustic allure of Tagaytay’s rolling terrains and the quaint ambiance of countryside Europe—The Vineyard Residences.

The Vineyard Residences is a vast 2.62-hectare residential cluster in the 1,200-hectare integrated tourism estate, Twin Lakes. It features three midrise condominium towers named after the world’s finest grape varieties such as Merlot,

Chardonnay and Shiraz.

The Merlot has eight stories featuring a total of 81 condominium units; the Chardonnay has seven stories, which have a total of 70 units; and the Shiraz with six stories. All three buildings offer one-bedroom units ranging from 27 square meters to 102.2 sq m, which offer a range of studio types to two bedrooms.

The units at the second floor will have a pocket garden, and units on the third floor will have a skylight, while the rest will have a balcony for private view of the Taal Volcano and Taal Lake.

Unit owners will also be given the distinct privilege of being in the midst of the very first vineyard resort community—The Vineyard.

With over 69 hectares of land, The Vineyard will have a stunning 10-hectare landscape of tidy rows of real grapes, a setting that mirrors

the world-renowned vineyards in Tuscany and Napa Valley.

Producing its own vineyard products of the finest vintage, the real vineyard will be overseen by Filipino farmer-scientist Avelino

Lomboy, while Spanish consultants will be on top of making brandies and wines.

The products of the vineyard will then be stored and showcased in a traditional wine chateau.

The French-inspired wine manor, named Chateau Twin Lakes, will be next to Twin Lake’s beautiful manmade lake.

While close to the natural treasures of Tagaytay, residents will still get access to modern-day conveniences. Embodying the township blueprint of Megaworld, Twin Lakes is a complete integrated tourism community of expansive nature spaces linked by residential villas, condominiums, townhouses, hotel and resort, commercial and retail hubs, and leisure facilities. Residents, who get to be in the middle of all the action, have the first access

to the township’s unique offerings.

Currently, the Shopping Village, at the entrance of Twin Lakes, has opened its doors to signal the beginning of the township’s developments. Open to visitors, it houses stopover joints like Bag of Beans and what is dubbed as the “most beautiful” Starbucks store in the country.

Apart from The Vineyard Residences, Twin Lakes also features four residential villages, namely, Domaine Le Jardin, Domaine Le Montagne, Domaine Le Soleil and Domaine Du Lac. www.megaworldcorp.com

PROPERTY

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E1

Conclusion

IVEN that the slow but expensive Internet connection in the Philippines is a result of a confluence of problems—from the lack of infrastructure investment to inadequate government funding and the absence of sustainable peering among providers—ad-

dressing the need for better Web access can only be achieved in a holistic manner.

Aside from updating the law that hampers the National Telecommunications Commission (NTC) from regulating Internet as a basic service and several measures that pertain to competition, foreign ownership and public service, the national government must also team up with

the private sector to address the problem comprehensively.

NTC Director for Regulations Edgardo V. Cabarios underscored the importance of a universal-access fund to increase government spending for Internet access.

“One of the reasons Internet connection prices are high is because of subsidies being spent by telco to provide access to lowtraffic areas. The government

should invest, so we can reduce the subsidies by the private sector,” he said.

Philippine Long Distance Telephone Co. (PLDT) Spokesman Ramon R. Isberto, on the other hand, pointed out that the private sector would find it more attractiveif thegovernentwouldgrant incentives to investments in the information and communications C  A

PHL EMERGES AS REGION’S SAFEST HAVEN AMIDSELLOFF

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T’S more what the Philippines doesn’t have than what it does have that’s making the country Southeast Asia’s safe haven amid an emerging-market rout.

Relatively low levels of foreign investment in its bonds and stocks are shielding the Philippines from an intensifying sell-off, while a comparative lack of raw materials means it’s less vulnerable than Indonesia or Malaysia to sliding commodities prices. Stability under President Aquino stands in contrast to Thailand, which is ruled by the military since May 2014; and Malaysia, where the prime minister is facing calls to resign amid a political scandal.

Philippine local-currency sovereign bonds returned 2.8 percent over the last three months, the most in Southeast Asia. The peso has held up better than its peers this year, losing 4.6 percent, compared with drops of 7.6 percent in Thailand’s baht, 12 percent in Indonesia’s rupiah and 18 percent in Malaysia’s ringgit. The benchmark Manila stocks index has also declined the least in the region over three months.

“It’s definitely the regional star,” said Edwin Gutierrez, who helps oversee $13 billion as the head of emerging-market sovereign debt at Aberdeen Asset Management Plc. in London. “In a world starved of growth, Philippine growth— albeit slowing—is holding up relatively well,” he said, adding that a relative lack of foreign participation had protected the country from capital flight.

BPO

THE economy expanded 5.7 percent last quarter from a year earlier, according to a Bloomberg survey before data due on August 27. That would be an improvement from a 5.2-percent expansion in the first three months, although slower than 6.1 percent in 2014. Indonesian and Malaysian growth slowed to 4.67 percent and 4.9 percent, respectively, last quarter, while Thai gross domestic product increased 2.8 percent.

A burgeoning business-process outsourcing (BPO) industry is aiding the Philippine economy. Revenue from BPO, which includes customer call centers, as well as the farming out of accounting C  A

PESO EXCHANGE RATES ■ US 46.7970

■ JAPAN 0.3947 ■ UK 73.7848 ■ HK 6.0344 ■ CHINA 7.3070 ■ SINGAPORE 33.1964 ■ AUSTRALIA 33.6379 ■ EU 54.3079 ■ SAUDI ARABIA 12.4779 Source: BSP (25 August 2015)

BMReports BusinessMirror

A2 Wednesday, August 26, 2015

Phl’s slow but expensive Internet service continued from A1 technology (ICT) sector.

“There are no private-sector incentives for investment in ICT infrastructure. There is no current program in that area. That seems to be puzzling why there is no such provision,” he lamented.

Isberto,whoalsospeaksforSmartCommunications Inc. and its subsidiaries, noted that his group is ready to invest more to improve the state of Internet service in the country.

His camp, he emphasized, is willing to work hand-in-hand with the government to put the Philippine Internet market on a par with its neighbors. Cabarios also suggested the establishment of an interagency body to review how the government should move to improve Internet speed in the Philippines.

“I recommend the creation of an interagency body with Congress to study government intervention in infrastructure to increase Internet speed and penetration,” he said.

This points to the establishment of a stateowned backbone, which, according to ICT policy and regulation think tank Learning Initiatives on Reforms for Network Economies Asia fellow Mary Grace Mirandilla-Santos, is a need to lessen costs and improve speed.

“The lack of government support to set up a national backbone prevents us from improving the state of the Internet in the Philippines,”she said. Globe General Legal Counsel Froilan M. Castelo agreed, saying that Internet-service providers (ISPs) must peer through a telco-neutral Internet exchange to lower costs and improve speed.

“The absence of an effective and reliable domestic Internet protocol [IP] peering among local telecommunication providers weighs down on local Internet speeds. An IP peering arrangement will enhance Internet speeds and could possibly lower Internet connectivity costs,” he said.

But for Isberto and Cabarios, IP peering is only a short-term solution.

“IP peering should help improve the quality of user experience for local Internet traffic. This will

benefit not only our customers but also those of other ISPs. But, as we have explained in previous discussions, this is not enough. This is because the bulk of Internet content accessed by Filipinos comes from overseas,” Isberto said.

To improve customer experience for this type of Internet traffic, wherein 90 percent of content comes from abroad, ISPs should increase their international IP transit capacity and, at the same, increase the amount of popular global Internet content stored or “cached” in the Philippines.

“IP peering will address some concerns, but not everything,”he said. “The government really needs to invest.” At the end of the day, a partnership between the private sector and the government will address the problems in Internet access and speed.

“It’s both a government intervention or a private sector or market solution,” Sen. Paolo Benigno A. Aquino IV said. “We can only improve and speed up Internet connection in our country by the said partnership.”

Economic impact

The fuss with all the talks on Internet speed, price and access is relevant to the growth of the Philippine economy, the country’s chief economic planner said.

The current state of the Internet in the Philippines is constraining the economy from growing further, National Economic and Development Authority Director General Arsenio M. Balisacan explained.

“The high cost of Internet, and the very slow speed, is constraining the capacity of the economy to achieve a faster growth. We really need to do something about that because it is a major driver for our growth,” he said.

Cabarios agreed, saying that there is a direct correlation between broadband access and the growth of a country’s gross domestic product (GDP).

“Where there is an increase of 10 percent in broadband penetration, there is also a 1.23-percent increase in GDP. When you double the speed of the connection, the GDP will also rise by 0.3 percent,” he said.

The economic planner added that the government

should invest more in ICT infrastructure to bolster the growth of the economy, if not sustain it.

“For our economy to sustain its rapid growth of 6 percent to 7 percent in the coming two to three decades—the period that we would need to catch up with our neighbors—we would need to invest aggressively and massively in infrastructure; and ICT is one of them,” he said.

The government spent about P1.76 billion in ICT development last year. For 2015 the government has earmarked about P3.18 billion to develop the sector.

Now the government is moving to increase the budget for ICT development next year with a proposed allocation of P4.37 billion.

“I think we should have more given the backlogs in the access to ICT,” he noted. “If we want inclusivity, the tool for achieving that low-lying fruit needs a few billion pesos more.”

He added that his office will be discussing the next medium-term plan, or through 2022, ahead of the next administration.

“We’ll be happy to help. In 2016 we’ll be crafting the next medium-term plan of 2017 to 2022. This is an opportunity to put into the plan an aggressive stance on ICT access,” Balisacan said.

Promote inclusive growth

Balisacan also said that the Internet is a means to promote inclusive growth, calling it a“great equalizer” that needs to be improved.

“If you want inclusive growth, we need to get information accessible to areas without Internet connection,” he said.

Indeed, the Internet will play a key role in shaping the future of the Philippine economy, the International Data Corp. (IDC), an ICT think tank, predicted.

According to IDC Philippines Country Head Jubert Alberto, telecommunications companies will focus on developing their network and coverage to provide better access to Filipinos. They have been, in fact, transitioning from a legacy mobile and telephony providers to digital enablers.

“The telco space in the Philippines is bolstered by the evolving role of telcos from being a pure

connectivity provider to becoming a total ICT provider.

The ‘one to majority’ marketplace allows for telcos in the Philippines to be the services provider that can service various marketplaces,” he said.

PLDT and Globe Telecom Inc. have been, over the past few years, launching various digital initiatives that promote the access to the Web. Smart, Sun and Talk ‘N Text—the mobile brands of PLDT—are currently offering free Web access with a data cap of 30 megabytes per day. This is on top of the free access to several applications, like social-media site Facebook.

Globe, on the other hand, offers free access to Facebook and Viber.

Many Filipinos today get relevant information from social media, as smartphone penetration in the Philippines continues to grow. It is now pegged at more than 50 percent, thanks to the proliferation of cheap mobile devices from China.

Mobile phones are also being used as virtual wallets. Both Smart and Globe offer their own e-money service. PLDT even partnered with the government to release conditional cash transfers to the poorest of the poor.

There is still a large number of Filipinos who remain unbanked and uncarded. World Bank data showed that only three of 10 Filipinos have bank accounts, and only 18 percent of all adults in the poorest 40 percent of the households in the Philippines are banked.

Financial inclusion, according to the monetary agency, is classified as “having an account that allows adults to store money and make and receive electronic payments.”

Aside from these, the top 2 telcos in the Philippines are also ramping up their efforts to promote the digital lifestyle to Filipinos. This also entails services that promote inclusive growth to the poorest of the poor.

“If we can make available those possibilities also for our poor people, those outside of Metro Manila and those who are in far-flung areas, then you have developed a tool for inclusive growth,” Balisacan said.

news@businessmirror.com.ph

Phl emerges as region’s safest haven amid sell-off continued from A1

tasks, will rise to $21.2 billion this year and $25 billion in 2016 from $18 billion in 2014, according to the IT and Business Process Association of the Philippines.

Money sent home by Filipinos living abroad, which makes up about 10 percent of GDP, increased 5.6 percent to $12.1 billion in the first half from a year earlier. A net oil importer, the Philippines has also benefited from falling crude prices. The country ran a $3.3-billion current-account surplus in the first quarter, compared with $1.5 billion in the same period of 2014, according to central bank data.

Foreign ownership

The Philippines’s consumption-based economy and steady dollar inflows mean it’s insulated from China’s yuan devaluation and US interest-rate increases, according to Jay Peiris, the International Monetary Fund’s representative in Manila.

“It’s very hard to think of a country that’s less vulnerable,” he said in an August 20 interview.

Peso sovereign notes are the best performers in Asia after Taiwanese securities in the last three months, according to Bloomberg indexes. Thai debt returned 0.8 percent, while Malaysian and Indonesian paper declined 1.4 percent and 3.7 percent, respectively.

Around 10 percent of Philippine bonds are foreign-owned, according to BPI Asset Management and Trust Group, part of the country’s second-largest lender. That compares with 39 percent in Indonesia, 31 percent in Malaysia and 17 percent in Thailand at end-March, Asian Development Bank figures show.

Domestic dominance

“Philippine fixed-income assets stand out versus their Asian peers largely due to the dominance of domestic investors,” said Mario Miranda, senior vice president at BPI Asset in Manila.

Outflows from Philippine stocks have also been more modest than for regional peers. Some $332 million has been pulled from the country’s shares this quarter, compared with $587 million from Indonesia and $1.6 billion from Thailand. The Philippine benchmark share gauge is down 13 percent in three months, trailing drops of 13.8 percent in Thailand, 14.3 percent in Malaysia and 21.2 percent in Indonesia. Bloomberg News

news@businessmirror.com.ph

Escanilla widow leaves justice in the hands of human-rights group

By Oliver Samson Correspondent

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HE widow of the slain Sorsogon human-rights worker Teodorico Escanilla has entrusted the pursuit for justice for her husband’s killing in the hands of his colleagues.

“I leave it to my husband’s group,” Eden E. Escanilla said in the local tongue at her husband’s wake in Tagdon, Barcelona, on August 22.

She said no further comment.

Escanilla was the spokesman for KarapatanSorsogon and anchor of radio dzMS “Pamana ng Lahi” program.

For 10 years, he tackled human-rights issues and social justice during his weekly program.

In his last airing, he decried the killing of three civilians in Irosin, another municipality of Sorsogon.

Escanilla was shot by unidentified men as he peered from his window at Barangay Tagdon, Barcelona, at 11:30 p.m., on August 19, according to his widow.

One of the suspects was talking to her while the gunmen fired at Escanilla.

Residents said they heard gunshots from automatic rifle and pistol and spotted a tricycle and two motorcycles fleeing towards the direction of Bulusan municipality after the shooting.

Escanilla was rushed to the hospital in Sorsogon City where he died. He left eight children and a grandchild.

The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Wednesday, August 26, 2015 A3

Armed Forces to recall 20,000 defective rifles T

‘Albularyo’ certification program bared by DOST

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By Rene Acosta

ORE than 20,000 M-4 assault rifles that have been issued to soldiers were defective, prompting the leadership of the Armed Forces of the Philippines (AFP) to order a recall.

The weapons, part of the 27,000 ordered by the military from US manufacturer Remington, was delivered last year during the term of former AFP Chief of Staff Gen. Gregorio Pio Catapang Jr. AFP Public Affairs Office Chief Lt. Col. Noel Detoyato said members of the military’s tactical inspection and acceptance committee (TIAC) discovered the defects.

The TIAC found out defects on the sights, according to Detoyato.

“The sights were moving. The defects were on the side of the supplier and so the supplier has to shoulder and correct the discrepancy before it will be accepted,” he added.

The military handed to the Army and the Marines about 27,300 units of 5.56-millimeter M-4 rifles in a ceremonial distribution in August last year. President Aquino led the ceremonies at Camp Aguinaldo.

The rifles were delivered in two batches: on July 5, 2014 with 100 pieces and on July 31 with 27,200 units.

The remaining 23,329 units were supposed to have

been delivered in December.

However, Detoyato said members of the TIAC discovered during a random testing that the assault rifles that went to the Army have sighting defects.

Some of the defective rifles have been issued to soldiers assigned at the 7th Infantry Division at Fort Magsaysay in Nueva Ecija.

Detoyato said the Army is recommending that all of the firearms be repaired by the supplier.

“That’s what we are going to do.”

The acquisition of the M-4 rifles jumpstarted the modernization of the firepower capability of the military’s ground forces, which is an integral component of the AFP modernization program.

The delivery of the firearms specifically formed part of the Joint Philippine Army–Philippine Marine Corps Assault Rifle Acquisition Project.

Under this project, the AFP was to receive a total of 50,629 units of M-4 rifles, with 44,186 pieces going to the Army and 6,443 for the Navy.

HE Department of Science and Technology (DOST) launched recently a program that would mainstream traditional healers or albularyo in the medical field.

Jaime Montoya, executive director of the Philippine Council for Health Research and Development (PCHRD) of the DOST, said they have partnered with the Philippine Institute for Traditional and Alternative Healthcare (Pitah) for a P100-million, five-year survey and research to be able to give certification to the albularyo in 2016.

The partnership between PCHRD and Pitah, a unit of the Department of Health, started in 2012, according to Montoya. “[There’s] a whole lot of what we call traditional specialties; we just have to go through them one by one.”

Montoya explained Pitah “is actually in charge of looking into and reviewing all the traditional modalities being used by ethnic communities both here and abroad.”

Besides those practicing hilot or massage therapy, Montoya said the program targets the albularyo who also uses herbs.

This practice of using herbs may have a scientific basis, that’s what we are subjecting to further study, Montoya told reporters during the Global Forum 2015 for Health Solutions for the World in Pasay City.

“Some successful herbs became drugs eventually, like lagundi, sambong and herba buena. Herbs derived from traditional health practitioners in the different communities in the Philippines. So, there is worth in what they are doing, and this is part of the traditional knowledge digital library that we are setting up. We are actually looking at all the traditional practices from north to south of all ethnic communities.” Claudete Mocon-Ciriaco

Economy

A4 Wednesday, August 26, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Tourist arrivals up 8% to 2.33M in H1

By Ma. Stella F. Arnaldo | Special to the BusinessMirror

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OREIGN visitor arrivals in the Philippines registered a robust growth in the first half of 2015, climbing almost 8 percent to 2.33 million.

Latest data from the Department of Tour ism (DOT) also showed a 1.16-percent increase in tourism receipts to P111.05 billion, at pace with the agency’s P199billion target for 2015.

Tourism Secretary Ramon R. Jimenez Jr. underscored the importance of tourism receipts over the headcount, saying, “Tourism is a business, and creates employment. We’re more focused on the income and jobs that are created, rather than the nosecount. Negosyo lang.”

Jimenez, along with other DOT officials, was at the House of Representatives on Monday to defend

the agency’s proposed budget of P3.61 billion for 2016. This is 44 percent higher than the P2.5 billion it received under this year’s approved appropriations. The 2016 proposed budget include funding for the National Parks Development Committee and the Intramuros Administration.

Although the growth in visitor arrivals in the first half was slower than the 8.5 percent recorded from January to May, DOT officials still see a spike in foreign arrivals toward the later months of the year.

DOT Spokesman and Undersecretary for Market Development Benito C. Bengzon Jr. told

the BusinessMirror: “We expect a spike in arrivals in the second half of the year, with new flights to be introduced by Philippine and foreign air carriers. It should also be noted that the last quarter of the year historically produces big numbers, especially from longhaul markets.”

The DOT has lined up a number of major tourism activities this year, dubbed as “Visit Philippines Year 2015.” These activities, coupled with high-profile events, such as the Asia-Pacific Economic Cooperation (Apec) meetings leading up to the Apec Leaders Summit in November, are expected to attract more foreign visitors to the Philippines.

Most of the top 10 visitor markets grew substantially in the first six months, except for China, which contracted by 15.85 percent to 190,325. Despite the drop, China still remained as the fourth-largest source of tourists for the Philippines.

Aside from the informal ban by the Beijing government on travels to the Philippines due to

diplomatic differences over the West Philippines Sea (South China Sea), the China government also launched a crackdown on corruption and lavish lifestyles of its officials, keeping many of its high spenders at home.

But Bengzon said, “The decline in Chinese arrivals has been arrested by the double-digit growth posted month-on-month in June 2015.” Arrivals from mainland China grew by 19.41 percent to 32,495 in June alone.

DOT Assistant Secretary for Tourism Development Planning Rolando Canizal added that the turnaround in the Chinese market “can be attributed to our continuing efforts to make our presence felt in the market and our work with the travel trade industry to mount more charter flights [to the Philippines].”

The South Korean market, which was tepid last year, expanded by 17.34 percent with 642,985 arrivals in the first six months.

Other double-digit increases were noted in the Taiwan market

(up 27.06 percent with 84,500 arrivals); Malaysia (up 16.72 percent with 77,966 arrivals); and the United Kingdom (up 10.83 percent with 76,024 arrivals).

The other countries in the top 10 visitor markets of the Philippines also posted respectable increments.

The United States still maintained its position as the secondlargest visitor market, with 415,949 visitors in the first half of the year (up 6.8 percent). Japan ranked third, with 237,264 visitors (up 7.7 percent).

In fifth place was Australia with 119,120 arrivals (up 6.7 percent), followed by Singapore with 92,817 arrivals (up 1.23 percent). Visitors from Canada rose 8.6 percent to 82,153; while those from Hong Kong advanced 9.3 percent to 62,785.

Overseas Filipinos, or Philippine passport holders permanently residing abroad (excluding overseas Filipino workers), grew by almost 1 percent to 107,087 in the first half of the year. With this market, total visitor arrivals

in the country for the period rose 7.7 percent to 2.43 million.

Bengzon said: “We continue to maintain an optimum mix of source markets that will allow us to achieve both arrival and revenue targets. Through closer cooperation with the Tourism Promotions Board [TPB], we will step up our presence in key markets, such as Korea, the US and Japan.

Our Market Development Group, meanwhile, will continue to target priority segments in opportunity markets, such as India, Russia, the Middle East and the Association of Southeast Asian Nations.” The TPB is the marketing arm of the DOT. Travelers from Asia accounted for the largest arrivals in the Philippines for the first half of the year at 1.51 million, for a 58-percent share.

This was followed by the Americas with 503,582 arrivals, for a 19.22-percent share; Europe with 279,282 arrivals, for a 10.66-percent share; and Australasia/Pacific at 148,822 arrivals, for a 5.68-percent share.

Metro traffic to cost ₧6B a day by 2030

By Recto Mercene

A

NEOPHYTE senator has warned that economic losses due to heavy traffic in Metro Manila could balloon to P6 billion a day, from the current P2.4 billion, by 2030.

For this reason, Sen. Bam Aquino IV has filed a resolution seeking to review the existing Roadmap for Transport Infrastructure Development. He aims to find solutions to address the negative economic impact of the worsening traffic conditions in Metro Manila.

“Commuters, as well as private vehicle owners, suffer the monstrous and extremely costly traffic every day in Metro Manila,” Aquino stressed in his Senate Resolution 1532, citing a study conducted by the Japan International Cooperation Agency.

The study, entitled “Roadmap for Transport Infrastructure Development for Metro Manila and Surrounding Areas,” was conducted in coordination with the Department of Transportation and Communications, the Department of Public Works and Highways (DPWH), Metropolitan Manila Development Authority (MMDA) and other relevant agencies.

The road map was approved on September 2 last year by the National Economic and Development Authority Board.

According to the study’s preliminary analysis, lower-income households will be the hardest-hit when congestion worsens by 2030, as they will spend no less than 20 percent of their monthly household income for transport.

“Without intervention, traffic demand will likely increase by 13 percent in 2030, and transport cost will be 2.5 percent higher,” Aquino said. He added that concerned government agencies and local government units must contribute to the crafting of an effective planning strategy and trafficmanagement system in order to improve traffic conditions in Metro Manila.

“The MMDA cannot solve the worsening traffic condition alone. The DPWH, Land Transportation Office and Land Transportation Franchising and Regulatory Board and the private sector must also do their share in solving the dilemma,” the senator added.

Among the factors that contributed to the worsening traffic condition is the significant population increase in Metro Manila, which now stands at 16.5 million.

“Maaantala ang ating kaunlaran kung ang araw-araw na biyahe ay ikalulugi ng ating mga mamamayan at ng buong bansa [Our progress would be delayed if the citizens and the country suffers from the daily commute],” said Aquino, a micro, small and medium enterprises’ welfare advocate.

EASY DOES IT

A young lady tourist gets her first lesson on horseback riding by the beach in Palauig, Zambales. KEVIN DE LA CRUZ

After being slammed for anti-OFW policy, Lina loses bid to scrap BOC’s ₧650-million computerization deal

By Joel R. San Juan

T

HE Regional Trial Court in Manila City stopped Customs Commissioner Alberto D. Lina on Tuesday from canceling the award of the P650-million contract to the joint venture of Omniprime Marketing Inc. and Intrasoft International Inc. for a modern integrated enhanced customs-processing system (IECPS).

In an 18-page Omnibus Order, Manila RTC Branch 47 Presiding Judge Paulino Gallegos issued a writ of preliminary injunction enjoining respondents Lina and lawyer Jose Tomas Syquia, head of the the Department of Budget and Management (DBM) Procurement Service, from implementing the Bureau of Customs’s (BOC’s) May 6, 2015, letter of Lina aborting the competitive bidding for the computerization program and the May 7, 2015, cancellation issued by Syquia.

The trial court also directed the BOC and the DBM to continue with the remaining procurement process of signing the contract and to issue to Omniprime the notice to

proceed with the project.

It also enjoins the respondents from conducting another bidding to replace the present customs systems, which is the subject matter of the case.

“Petitioner’s right to be awarded with the project is already clear and present, were it not for the cancellation and with absence of the grounds provided by law,” the order stated.

The trial court found meritorious Omniprime’s petition for injunctive relief as its rights as a bidder “appear, from the evidence presented” by both parties, to have been “unduly and unfairly violated” by the sudden cancellation of the procurement process for the Philippine National Single Window 2 project.

It noted that the process was then almost to end up in a week by the remaining acts of declaring Omniprime as the highest rated and responsive bid, awarding of contract and signing thereof, and notice to proceed, were it not for cancellation.

The trial court pointed out that the cancellation was not based on grounds and procedures required under the law and in the bidding documents..

“This is coupled by the injustice that petitioner suffered out of the sudden cancellation following years-long and rigorous bidding process for its qualification, and to which injunctive writ, as strong arm of equity, is the temporary remedy to prevent petitioner’s suffering therefrom,” it explained.

Earlier, Omniprime, through its lawyer Harry Roque, filed plunder charges against Lina and several other officials for causing injury to Omniprime and for entering into a government contract with private interest.

Omniprime sought redress before the trial court to stop Lina’s decision to cancel the contract, which he said has been successfully bidded out by the DBM. Roque claimed that “one of the five losing bidders in the project, E-Konek, is a company where Lina has a 96.48percent stake.”

On April 13 this year the DBM issued in favor of Omniprime a notice of highest-rated bid through a letter of invitation, wherein our client was invited to immediately start negotiation on the contract provisions right after the opening

of the financial documents.

The contract negotiation was finalized since April 23, 2015, and that Omniprime was just awaiting the final contract being prepared by the DBMProcurement Service (PS) for signing.

But, Roque said, what took even months for DBM-PS to conduct the entire bidding process, it only took Lina two weeks from his assumption as BOC head to cancel the project.

The IECPS is composed of two consolidated computer programs necessary for the Association of Southeast Asian Nations integration.

The integrated system, along with a national single window (NSW), is seen as the long sought—after solution to address smuggling in the Philippines. It establishes a central database system that tracks in real time all customs procedures nationwide. It aims to be a fully electronic, paperless, and human contact-free system of recording and monitoring customs transactions.

The NSW consolidates relevant services from all government agencies involved in customs procedures using international standards.

Economy BusinessMirror

news@businessmirror.com.ph

briefs dpwh bares p1.7-b infra projects in cdo CAGAYAN DE ORO CITY—The national government is set to build P1.7 billion worth of projects in this city in the next three years.

The Department of Public Works and Highways (DPWH) on Tuesday said these projects include the construction of four bridges and four interchanges.

Leowald Pacore, an engineer at the regional office of the DPWH said that the ongoing project at the Bitan-ag Creek project has an allocation of P75 million.

Under the said project, the existing clogged up box culvert at the creek will be removed and replaced by a 14-meter long bridge with an elevation of 1.85 meters.

This will pave the way for the efficient flow of water in the said creek.

In addition, another 12-meter long bridge at the Sapang Creek located along the national highway would be elevated by one meter in order to replace the old box culvert.

Pacore said other infrastructure projects in the city include the 10-kilometer, 30-meter wide roadway of the JR Borja Extension in the city’s east district.

The said road project has an initial cost of P70 million which will start from the junction of Galaxy and would pass through the front of Nestlé Philippines toward the Sayre Highway going to Bukidnon. PNA

deliberations on plea to stop water-rate hike set sept. 1 The Supreme Court (SC) has set on September 1 the deliberations on the petition to stop the government from paying Manila Water Co. (Manila Water) and Maynilad Water Corp. (Maynilad) for their claims for losses amounting to P79 billion, which was incurred after they were disallowed from recovering their corporate income taxes by hiking their water rates.

During Tuesday’s en banc deliberations, the SC justices decided to reset the deliberations since the ponente of the case is now on leave.

Associate Justice Arturo D. Brion is the ponente of the case or the one tasked to write the opinion of the Court.

In a petition for certiorari before the SC, Bayan Muna Party-list Reps. Neri Colmenares and Carlos Zarate argued that corporate income taxes of the two water concessionaires cannot be considered as expenditures and cannot be passed on directly or indirectly to water consumers which would affect 12 million consumers.

Named respondents to the case are Department of Finance Secretary Cesar V. Purisima, Manila Waterworks and Sewerage System (MWSS) Administrator Gerardo Esquivel, MWSS Chief Regulator Joel Yu, Maynilad and Manila Water. PNA

dpwh resumes magallanes interchange repair The Department of Public Works and Highways (DPWH) announced the resumption of its repair and strengthening works at the Magallanes interchange in Makati City.

The agency on Tuesday said the continuation of its works at the area started on August 21 with the removal and installation of expansion joints at Stage 1 which covers the Manila-Alabang segment.

DPWH Secretary Rogelio Singson said the agency and the contractor J. D. Legaspi Construction has considered the project’s impact to vehicular traffic by working one lane at a time to keep the other lane open for public use.

Road repair clearance from the Metropolitan Manila Development Authority (MMDA) allows the DPWH contractor to work on the structure on weeknights from 11 p.m. to 5 a.m. PNA

Wednesday, August 26, 2015 A5

Customs shelves new policy to inspect ‘balikbayan’ boxes

T

By Joel R. San Juan

HE Bureau of Customs (BOC) has abandoned its planned clampdown on balikbayan boxes, saying that it will no longer conduct random physical inspections of such packages mostly coming from overseas Filipino workers (OFWs).

Customs Commissioner A lberto Lina said his agency will comply with President Aquino’s directive not to open balikbayan boxes except “in cases where there are derogatory findings from the x-ray or K-9 examination.”

“The bureau will follow the President’s directive on balikbayan boxes effective immediately. Instead of random physical inspections, we will do a mandatory x-ray examination of containers of consolidated shipments and balikbayan boxes at no cost to the sender or OFW, and ensure the necessary checks, balances and witnesses are present in the event that a physical inspection is made,” Lina said.

Mr. Aquino’s order to Lina came after strong public clamor against the new policy of the BOC on balikbayan boxes.

Instead, Lina said the agency will tap the assistance of freight forwarder companies to install their own x-ray machines in their warehouses following specifications that Customs will require in order to expedite

clearance of balikbayan boxes.

“We are already looking into ways of acquiring K9 units and additional CCTV cameras for our ports through emergency procurement,” Lina said.

Lina also urged the public to report Customs employees who conduct unauthorized physical inspections of balikbayan boxes.

Likewise, the BOC chief urged lawmakers to prioritize the passage of Customs Modernization and Tariff Act (CMTA) in order to “harmonize, modernize and simplify” Customs procedures.

Lina explained that the CMTA will also benefit the OFWs as it will increase the threshold value for taxable imported goods.

The BOC backtracked on its plan to randomly open balikbayan boxes following a meeting between President Aquino, Finance Secretary Cesar V. Purisima and Lina on Monday.

During the meeting President Aquino “emphasized that OFW families view the balikbayan box as an integral part of the family

relationship to nurture loved ones at home and as a tangible sign of their love and concern for their family members.”

In order to avoid tampering or theft of the content of balikbayan boxes, Mr. Aquino directed the BOC to stop random or arbitrary physical inspection of balikbayan boxes.

Instead, balikbayan boxes should undergo mandatory x-ray and K-9 examination—at no cost to the sender or the OFW. In the event of a physical inspection, the President required the presence of a representative from the Overseas Workers Welfare Administration (OWWA) or a designated officer of an OFW Association be present, with provisions for CCTV monitoring of the inspection areas.

Wrong premise

Vice President Jejomar C. Binay said that Customs should change its wrong premise that OFWs are criminals who smuggle goods through the balikbayan boxes they send home.

“Huwag po nating siraan ’yong imahe ng ating mga OFW. ’Yong pagbubukas ng kahon na ’yon, ang pinagmumulan noon ay ‘nag-i-smuggle kayo. Lumalabag kayo sa batas.’ Huwag naman [sanang ganoon ang perception].[Please dont destroy the image of our OFW. Opening boxes is the start of smuggling. You’re going against the law. Let us stop this perception],” the Vice President said in an interview over Radyo 5 Tuesday.

Binay, the former presidential adviser on OFW Concerns, said only the courts can decide if a person has violated the law or not.

‘Victory for the people’

Party-list Rep Neri J. Colmenares of Bayan Muna said Customs retreated on the random opening of balikbayan boxes due to the people’s outrage and not because of the good sense of Lina.

This episode, Colmenares explained, shows that the government can be forced to withdraw its antipeople policies if the people will assert their rights and muster the courage to tell President Aquino and his minions to back off.

Nonetheless, the investigation of the Lina policy will continue even if the BOC scuttled its plan to recoup what it said was the loss of P600 million in revenues.

“But even with this initial victory we have filed the resolution to investigate and we will pursue the investigation to find out: First, what happened to the hundreds of millions allocated to the BOC for the buying of x-ray machines, K9 units and other antismuggling equipment? Second, how much revenue was lost by the BOC due to big-time smuggling of luxury cars, smuggled rice, container vans containing luxury items, including the status of 2,000 container vans reportedly lost by the BOC a number of years ago? Third, what should be the current duty exempt valuation for balikbayan boxes, considering the current prices and the inflation rate?

“The current P10,000 limit is too low, dapat iakyat na ito dahil tumaas na rin ang presyo ng mga commodities abroad, kahit ukayukay,” Colmenares said. With Recto Mercene, Butch Fernandez, Marvyn N. Benaning

DOE firm on CSP implementation to all DUs and ECs, Monsada says

By Lenie Lectura

T

he Department of Energy (DOE) remains firm on its stance that the controversial Competitive Selection Process (CSP) policy should be mandated on all distribution utilities (DUs) and electric cooperatives (ECs).

DOE Officer in Charge Zenaida Monsada said that the CSP must not be implemented on a voluntary basis, saying the circular was not crafted that way.

“For as long as that is the circular then the guidelines should be amenable to that,” Monsada said when asked to comment on Manila Electric Co. (Meralco) view that securing power-supply contracts via auction should be voluntary.

Monsada said that if the DOE circular’s intention is to enforce it voluntarily then “the circular must be changed.” However, this is not the case, she pointed out.

The DOE, she said, is aware of some DUs’ disapproval on the CSP. The Meralco has publicly stated that the CSP would best work if implemented voluntarily.

“Let’s cross the bridge when we get there. There are no formal oppositions yet. We hope that the guidelines will address those concerns,” Monsada added.

Without the implementing rules and regulations (IRR), the DOE circular on CSP could not be enforced. It is the Energy Regulatory Commission (ERC) that will craft the guidelines.

The DOE on June 30 issued a department circular that requires all DUs and ECs to bid out their power requirements instead of entering into negotiated contracts with power producers or powergeneration companies.

The ERC is expected to issue the IRR on October 27. However, this is only a working target. “This is the target date. Best efforts. I hope that

the ERC will issue the rules by then,” Monsada said.

The ERC would still have to conduct public hearings on this.

The DOE circular states that all DUs shall procure power supply agreements only through CSP conducted through a third party duly recognized by the ERC and the DOE. Though it is mandatory, Monsada said the implementation could be carried out in phases. “It’s not as if it will be implemented immediately,” she said, clarifying that the CSP is mandatory but its enforcement is gradual.

Last week ERC commissioners said they will “act more prudent” in dealing with the CSP. Meralco, a DU that sources majority of its power requirements through bilateral contracts, is against the mandatory implementation of CSP. “Our view is it doesn’t promote the best interest of consumers.

It’s a nice concept, an attractive concept, but do it on a voluntary basis,” Meralco President Oscar Reyes earlier commented.

Meralco officials said the CSP scheme is unfair because only the DUs and ECs are mandated to comply but not the generation companies. “What if the participating gencos [generation companies] are flippers or those that are not serious? How can the DUs, such as us, get the best rate for our consumers in such cases,” they lamented.

When asked if Meralco would volunteer to adopt the CSP, Reyes said the most appropriate model for Meralco would be “a mix of bilateral, voluntary CSP, and WESM [Wholesale Electricity Spot Market].”

Reyes pointed out that different utilities have different requirements. “Will the template for CSP fit everyone? Are we sure that all gencos that will participate are serious? We are only mindful of what’s best for the consumers.”

bamboo propagation

Sen. Cynthia Villar (left) led the ceremonial planting of bamboos at the Las Pinas-Paranaque Critical Habitat and Ecotourism Area (LPPCHEA) on Tuesday at the Freedom Island in Las Pinas City. Villar commended the Department of Environment and Natural Resources and the Laguna Lake Development Authority (LLDA) for recognizing the importance of bamboo reforestation in the country. PNA

Japanese investors optimistic AEC will begin to bear fruit in 1 to 2 years

K

UALA LUMPUR—Japanese investors are optimistic that the Association of Southeast Asian Nations (Asean) Economic Community (AEC) will start to bear fruit in the next one to two years, creating more business opportunities across the region.

Japan External Trade Organization (JETRO) Kuala Lumpur Managing Director Akira Kajita said amid concerns over a slowdown of China’s economy, most Japanese companies have adopted a “waitand-see” approach.

“We are hoping that the positive trend will get back on track once the AEC is established.

“It will provide a better and

streamline-investment climates in the region, especially with all member-states currently having different rules and regulations for foreign investors,” he told Bernama on the sidelines of the 47th Asean Economic Ministers’ Meeting and Related Meetings here on Tuesday.

He said more integration of standards, elimination of nontariff barriers, as well as further liberalization of the services sector could further boost Japan-Asean trade and investment.

Kajita also said that the role of small, medium enterprises (SMEs) were also seen as one of the catalyst for growth of the 10-member grouping.

He said JETRO assisted 1,500

Japanese SMEs to start business last year with more than half interested in doing business in the Asean region of 600 million people.

In Malaysia, he said, out of about 1,400 Japanese companies which invested in the country, more than half were SMEs. He also took note of the proposal made by the Federation of Japanese Chambers of Commerce and Industry in Asean (FJCCIA) which suggested the establishment of a creditrating reference body in the region.

The chamber said the credit-rating agency can evaluate credit-worthiness and account performances of every company across the region.

Currently, he said it was difficult

for Japanese companies, for example, to evaluate “company A” from Malaysia and “company B” from Indonesia, which have their own financial and accounting rules.

It was difficult to make business evaluation when it comes to comparing companies from different countries, Kajita pointed out.

“We want to have one Asean measure to evaluate these companies, a single standard-credit reference so that companies can evaluate their potential and performances better,” he added. Japanese investment in Asean has been increasing steadily, recording over $20 billion in 2013 and 2014, three times more when compared with China last year. PNA

A6 Wednesday, August 26, 2015

Opinion BusinessMirror

editorial

The govt of the Philippines: Privatization, anyone?

I

N the culture of plunder that our highest-ranking officials, notably the senators, have introduced into our society, it is easy to generalize and include all civil servants as guilty of a shameless disregard of the national interest. This is wrong because, in the main, civil servants are faithful to their vow of loyalty to the service of the people. It is only fitting and proper that the Civil Service Commission (CSC) pays tribute to these public servants every now and then.

Having said that, it is equally true that the image of government offices and the officials and employees working there, to most Filipinos, is not at all pleasant. Visit any government office, and the first thing you will discover is that the building elevator is “out of order,” and you just have to tackle those stairs by yourself, bad heart notwithstanding. The next thing you will find out is the discomforting message that the comfort room is “under repair.” Otherwise, it is flooded and stinking to high heavens. And then a newspaper-reading staff member tells you that the official you want to see is not available, because “he is in a meeting.” Finally, try writing a letter to any government office to seek assistance, and you will either receive a reply that is one or two months late or, worse, you get no response at all.

Given these considerations, it will make sense for the CSC to regularly conduct an “audit” of government offices, officers and employees to ensure that these offices do not present the picture of pigsties to the public, and that public officials, allegedly attending so-called meetings, do not present the picture of merely holding out for some consideration.

On the correspondence issue, Republic Act 6713, otherwise known as the Code of Conduct and Ethical Standards for Public Officials and Employees, makes clear the punishment for any failure to respond within three weeks to queries from the public: reprimand for the first offense; suspension of one to 30 days for the second offense; and dismissal from service for the third offense.

Let the CSC mete out these penalties as it deems appropriate.

The government guarantees security of tenure to government employees with appropriate eligibilities, to free them from victimization by officials or people with ulterior motives. Ironically, however, it is the assurance that they cannot be dismissed from their positions without due process that emboldens some civil servants to act oblivious of their sworn duties.

This is the age of privatization—the transfer of public offices or functions to the private sector for cost-cutting and efficiency considerations. Already, we have experience under the build-operate-transfer law, which is the basis of the current Public-Private Partnership Program, suggesting clearly that the private sector is superior to the government in the operation and maintenance of public facilities. So why not turn over to the private sector the right to administer these facilities in perpetuity, for the good of all?

If our high public officials and employees do not shape up, somebody someday will have to propose the privatization of the entire government. Let the people vote on that.

What to do when your SSS records are not in order Susie G. Bugante

All About Social Security

Q

uite a number of Social Security System (SSS) members encounter some problems with their records just when they are about to file their retirement claims. These problems often cause the delay in the processing of their claims.

Among the common issues of members include discrepancies in their registered names with the SSS and their birth certificates; discrepancies in their birth dates; and so on. Problems like these may be corrected by filling out Form E-4, or the Correction of Member’s Data Form, together with the appropriate supporting documents.

Aside from these types of concerns, members also realize that they have registered several times with the SSS, thus they have multiple social-security numbers, and this means that their contributions need to be consolidated under one

number for them to get the most out of their membership.

What must members do when they find themselves in this situation? They must fill out a Request/ Verification Form (COV-01205), where they must indicate the request or verification they wish to make. For instance, to request the cancellation of multiple social-security numbers, they must check the appropriate box and provide the information being asked. They must also check the box indicating the consolidation of contributions. As a matter of procedure, the first number that is reported

with contributions is the number that is retained. All other contributions reported in subsequent SS numbers will be consolidated under the first number. This process requires a thorough verification of the member’s employment history and recorded contributions before effecting the cancellation of extraneous numbers.

Because it takes some time for records to be corrected, members who are about to file their retirement claims are advised to ensure that their records are in order ahead of time so that their retirement claims will get processed on time.

On another note, the SSS is turning 58 years old next week on September 1. Created by virtue of Republic Act (RA) 1161 (Social Security Act of 1954), it was not until September 1, 1957, that the law was implemented after it was amended

by RA 1792. The SSS law was further strengthened by RA 8282 (Social Security Act of 1997), which provided for better benefits, expansion of coverage and flexibility of investments, among others.

Since it started in 1957, the

Asia should call truce on currency war William Pesek

T

BLOOMBERG VIEW

he finance secretary of the Philippines has a message for Asian policy-makers tempted to follow China’s lead by devaluing their currencies: Don’t do it. “We must be mindful of the trade-offs involved in using the exchange rate as a trade tool to boost competitiveness,” Cesar V. Purisima said on Sunday.

Chinese exchange-rate officials probably have a thing or two to say about trade-offs. Since its surprise devaluation on August 11, Beijing has been struggling to keep the yuan from outright free fall. On Monday Shanghai stocks tumbled a further 8.5 percent. China perfectly encapsulates Purisima’s point: The shortterm benefits of a weaker currency pale in comparison to the costs.

If Asian policy-makers are feeling any lingering doubt, here are four further reasons they should resist the urge to devalue. n Rising debt-servicing costs.

A key reason that China’s devaluation has been a meager 3 percent is the Kaisa factor. In April that Shenzhen group became the first Chinese developer to default on dollar-denominated debt. Since then, very few borrowers have missed bond payments (in part because Beijing forbade it). But if the yuan suddenly plunged, President Xi Jinping’s government—and global financial markets—wouldn’t be able to control the subsequent wave of defaults.

The same goes for neighboring

economies like Indonesia and Malaysia that have gorged on overseas loans in recent years. As of July, companies in those countries, together with their governments, had sold more foreign-currency debt this year than they did in all of 2014. That’s becoming a clear vulnerability with the ringgit and rupiah down 18 percent and 12 percent, respectively, this year. n One-way-bet risk. Vietnam and Kazakhstan have already tried to shore up their exports by devaluing, and analysts suspect Thailand will be next. But in a weak global economy, slashing currency rates amounts to pushing on a string. Asia’s two biggest economies—China and Japan— are sputtering to the point that their consumers will be of little help to exporters elsewhere in the region.

Europe is, at best, walking in place, or at worst destined for a renewed crisis. And while the US economy is stable, a mix of stagnant wages and high household debt limits its ability to help revive Asia’s exporters.

The bigger risk is that lower currencies will invite investors to test

how far officials will let the slide continue, as seen during the 1997 Asian financial crisis. Capital outflows would be far riskier than a few quarters of weak export growth. That’s especially true for Asia’s weakest countries, where currency reserves may prove inadequate to withstand speculative attacks. At the moment, Indonesia’s reserves (about $107 billion) are only enough to cover seven months of imports; Malaysia’s are enough for 7.5 months. n Torpedoed confidence. Asia has come a long way over the last 18 years in terms of preventing market panic. Financial systems are stronger, governments more transparent and so-called macroprudential limits on capital flows can shield economies from market turmoil. But Asian policy-makers should also embrace the benefits of a rising currency.

A strong exchange rate attracts long-term capital flows, not just hot money from investors looking to make a quick buck. It also contains inflation, reduces government debt burdens, allows companies to borrow at lower rates and encourages entire economies to move upmarket, from sweatshops to startups.

The Philippines is an unlikely case in point. For years, Purisima and central bank Governor Amando M. Tetangco Jr. have been under pressure from exporters to devalue the peso. Instead, the government concentrated on putting its fiscal house in order, which won investmentgrade ratings from credit agencies and lowered the government’s borrowing costs. That freed up money to invest in infrastructure, education and poverty reduction. One big

SSS has proven to be faithful to its mandate of providing socialsecurity protection to the privatesector workers and their families against contingencies, such as sickness, childbirth, disability, old age and death.

Today the SSS has over 32 million members scattered worldwide, including overseas Filipino workers.

Its assets as of end-2014 amounted to P427 billion. It disbursed P102.6 billion in benefits for the year 2014.

It has established 285 offices here and abroad in order to serve its members better and plans to add more.

With the continued trust and support of its members, the SSS is committed to pursue its mission and carry out its mandate for a long time.

For more information about the SSS and its programs, call its 24-hour call center at (632) 920-6446 to 55, Monday to Friday, or send an e-mail to member_relations@sss.gov.ph.

Susie G. Bugante is the vice president for public affairs and special events of the SSS. Send comments about this column to susiebugante. bmirror@gmail.com.

reason to be optimistic about Asia’s 12th biggest economy is that Purisima is still refusing to devalue. n Less urgency for reform.

For all the progress made since the 1997 Asian financial crisis, Asia has yet to abandon its addiction to exports. That’s an untenable position as two big threats—China’s slowdown and the prospect of Federal Reserve rate hikes—hit the region simultaneously for the first time in 21 years. In 1994 the Alan Greenspan Fed began doubling short-term rates over a 12-month period. That triggered hundreds of billions of dollars of bond-market losses; it also set in motion a crisis that three years later would topple the economies of Indonesia, South Korea and Thailand. That was also the year when China last devalued, which increased pressure on neighboring economies to follow suit.

Today Washington and Beijing are positioning themselves in similarly worrisome fashion. Fed Chairman Janet Yellen wants to move US borrowing costs a step or two away from zero, while Xi has been devaluing the yuan as part of a desperate bid to stabilize China’s listing economy and plunging stock market. The rest of Asia would be in a far better position to ride out today’s storm if they’d done something in the years since the last crisis to diversify their growth engines.

Instead, they opted for the sugar high of weak currencies.

Asian policy-makers need to understand that currency devaluations aren’t a cure-all—and if they pursue trade-offs, as Purisima warns, there’s no avoiding their downsides.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Wednesday, August 26, 2015

Why oil-producing countries The meaning of Donald Trump keep on pumping

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Clive Crook

By Leonid Bershidsky | Bloomberg View

he big oil-producing countries keep on pumping, even though prices are at a six-year low: Don’t they know they’re only making things worse? Chances are they do—each has its own reasons to continue—but this won’t go on forever. Someone will blink in the next year or so, most probably US shale producers.

In the US, the crude oil price has dipped below $40 a barrel. Brent, the European blend, trades below $45. Still, output from the Organization of Petroleum Exporting Countries (Opec) increased to 31.5 million barrels a day in July.

Production in Saudi Arabia, Iraq and Venezuela is at or near the highest level in a year. Russia, now the biggest crude producer in the world, increased its output by 1.3 percent year-on-year in January through July, and is pumping 10.6 million barrels a day. US production has dipped slightly in recent weeks, to 9.3 million barrels a day from the June peak of 9.6 billion, but it’s still substantially higher than a year ago, when prices were more than twice as high.

The simplest explanation for this phenomenon is that the producers need the cash; the lower the price, the more they need to sell to maintain revenue. Among the trio of top oil producers—Russia, Saudi Arabia and the US—this need-forcash argument works best for Russia.

Last year, as crude prices began to tank, it quickly floated its currency.

Since then, the ruble has devalued in lockstep with oil, so that every extra barrel sold produces the same revenue in rubles, which is the currency of the government’s budget.

As a result, Russia has no reason to cut production, even if it probably will suffer a future decline in output, because its major oil companies have sharply reduced investment.

The Saudis haven’t unpegged the riyal from the US dollar, so selling more oil at lower prices doesn’t make much economic sense for them.

They are convinced, however, that it makes strategic sense. Although the first onslaught on the US shale producers has proved ineffective, they are determined to press on. “It is becoming apparent that non-Opec producers are not as responsive to low oil prices as had been thought, at least in the short-run,” the Saudi central bank said in its latest stability report, adding: The main impact of the current lower prices has been to cut back on developmental drilling of new oil wells, rather than slowing the flow of oil from existing wells. Thus, the impact of lower prices today is expected to be on future oil production, rather than current production.

This requires more patience on Opec oil producers and a willingness to maintain steady production until the demand catches up with the current supply levels.

The risk for the Saudis is that they have misjudged US shale. Last year investment banks estimated breakeven costs for major US shale plays at more than $60 a barrel, but a recent Bloomberg Industries analysis suggests this was inaccurate. It shows, for example, that in North Dakota’s McKenzie County, part of the Bakken shale play, the break-even price is about $29. Neighboring counties only need a slightly higher price to break even. Analysts had underestimated the ability of tight oil producers to cut costs and apply new technologies to increase output per rig. The US Energy Information Administration says production per rig has significantly increased in the past year, for all of the country’s shale areas.

That, however, was only to be expected in a price war. The Saudis couldn’t have hoped that their US rivals would just roll over and won’t be deterred by this show of resilience. Besides, they have reason to believe that new technology and costcutting weren’t the only reasons US shale hasn’t buckled.

In July Bloomberg News reported that at least 15 percent of the first-quarter revenue for 30 of 62 oil

and gas companies in the Bloomberg Intelligence North America Exploration and Production Index came from hedges, derivative contracts that allow producers to lock in prices. In effect, the hedges allow companies to go on receiving a higher-thanmarket price for their output. The share of revenue accounted for by hedges is likely to have increased in the following two quarters, as crude became cheaper.

The hedges are a big part of the explanation why US companies have maintained production levels, but most will run out by the end of this year. It’s unlikely they will be renewed, because it’s too expensive in the current market to fix future prices at up to $90 a barrel, the kind of money frackers are often still paid now, thanks to derivatives.

At that point, US drillers will find it difficult to pay back their combined $235 billion of debt. By then, the added technological and financial efficiency unleashed this year will have peaked. New credit will be less readily available and the shale drillers won’t be able to repeat their feat from the first half of 2015, when they raised $44 billion through bonds and share sales. Even if their break-even costs are lower than previous estimates, the low crude prices make them look unattractive to lenders and investors.

To predict who is going to gain ground in this drawn-out price war, it’s worth assessing the protagonists’ arsenals. Apart from $672 billion of international reserves (a cushion that shrank 8.5 percent between January and June), the Saudis still have the devaluation card up their sleeve. When Kazakhstan belatedly followed Russia in abandoning its dollar peg last week, Prime Minister Karim Massimov predicted that Saudi Arabia and some of its Gulf neighbors would also have to float their currencies to deal with the new reality of crude prices. And the Saudi financial system has other untapped resources: the country doesn’t currently even collect income tax; it pays out huge energy subsidies that could be cut; and its government debt is just 1.6 percent of gross domestic product, leaving lots of room to borrow.

King Salman may not want to throw those reserves into a price war with US shale, of course, but he has them. By contrast, all that protects American frackers is their ability to innovate and drive costs down. This year has shown that ability is not to be underestimated, but it is surely finite—at any rate, US production has stopped growing.

In those circumstances, it’s understandable that the Saudis are unwilling to accept defeat. Saudi Arabia won’t be satisfied with another temporary rebound in oil prices, such as the one that occurred last spring: Their US competitors would just increase output again. They must inflict permanent damage by demonstrating to investors that with shale, they can’t bet on any kind of predictable return. So far, the (probably overblown) threat of Iran’s return to global oil markets is helping the Saudis with this task, but it’s a long-term gamble and the situation is volatile.

The Saudis may be temporarily thwarted by production decreases in those oil economies unable to hold their corners in the price war, such as Nigeria, where production has been in decline since last fall. Lost production in these countries may send prices up again slightly, giving US frackers a little more breathing space. But until either the US shale industry or Saudi Arabia has triumphed, the onlookers—even big ones like Russia—won’t be able to benefit from higher oil revenue.

BLOOMBERG view

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N many ways, Donald Trump’s campaign for the presidency is so preposterous that it demands to be dismissed as a joke. This would be a mistake.

Trump deserves attention—though not because he’s likely to win the Republican nomination, much less the presidency. Almost anything is possible in politics, but President Trump strains the outer limits of improbability. He should be taken seriously, nonetheless, for two reasons.

First, he could dictate the outcome next year even if, as is likely, the Republicans nominate somebody else. Second, his following and the interest he’s aroused are significant in their own right.

I ought to mention that I’m more hesitant in ruling out Trump’s chances of winning the nomination than I was a couple of weeks ago. Immediately after the Republicans’ first debate, I ventured to disagree with a neighbor in West Virginia—a retired coal miner, Democrat-turned-Republican, Trump supporter—who said his man did well.

I said I thought Trump made an ass of himself and would pay for it in the postdebate polls. My friend laughed and said, “We’ll see.”

He and many other Trump supporters regard their candidate as a Ronald Reagan for these times. Reagan, like Trump, was an object of disdain among those who consider themselves smarter than the average voter. The liberal media thought Reagan was a joke, and kept on saying so all through his two terms in the White House. That contempt helped him a lot.

It’s helping Trump, too. Truly, he invites derision—a pit bull with a combover—and revels in it. You think he looks funny? He’s immensely rich and you’re not, so who’s laughing?

Trump is no Reagan. Reagan was a popular and successful governor before he ran for the White House. He was charming, too—gentle, sunny and courteous. In that respect, Trump is the anti-Reagan. He’s brutish and angry and excessively proud of it. Those are the traits most likely to limit his appeal.

And to succeed, he’ll need to broaden his appeal a lot. It’s easy to forget that, to win the nomination, Trump needs much more support than he’s received so

Europe’s refugee crisis

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ll this year, Europe has been struggling with a massive influx of refugees fleeing war and poverty in their home countries throughout the Mideast and North Africa. Since January some 340,000 migrants have arrived in the countries of the European Union (EU), more than three times the number that entered in 2014. But EU officials still haven’t formulated a unified response to the problem despite the fact that hundreds of thousands more refugees are expected to brave the perilous journey across the Mediterranean Sea in coming years. As a result, we are seeing a humanitarian disaster unfold on Europe’s southern flank that the continent’s leaders are stubbornly refusing to acknowledge.

By the end of this year, Germany alone could find itself coping with as many as 800,000 refugees, the government says—four times the number it received all of last year. Germany is one of the top destinations for refugees in Europe, along with Italy, Greece and Hungary, who are all facing similar problems.

The Italian authorities say they

can’t possibly accommodate all the refugees arriving daily on their country’s shores, and Greece is struggling with a debt crisis that has stretched its resources to the limit. The crisis has developed to the point where Hungary recently threatened to build a fence along its border to prevent migrants from entering the country and to send thousands of police officers to patrol its southern border.

The refugees attempting to reach Europe from smugglers’ ports in Syria, Libya and elsewhere in Africa know they are taking their lives in their hands when they embark on the Mediterranean crossing in rickety wooden fishing boats or open rafts.

So far this year, some 2,000 have died making the journey, more than half of them in just the last four months. This week Italian police reported that 49 refugees died after smugglers forced them to stay below decks in a fishing boat’s hold, where they suffocated on engine fumes. Earlier this month another 50 migrants may have drowned when their rubber dingy sank, and 200 more are thought to have died when their boat

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far. Polls put him at around 22 percent of Republican voters. He’s dominating the race only because the field is still huge. The question is, how much support will he gather as other candidates drop out? His upside seems limited. A lot of Republicans actively dislike him. As the field gets winnowed down, Jeb Bush or Marco Rubio are more likely to benefit.

Yet, failing to win the nomination won’t make Trump electorally irrelevant. As he told the Republican Party in response to the opening question of that televised debate, he won’t rule out a run as an independent. His chance of winning the presidency that way would be poor, but his chances of splitting the conservative vote and helping a Democrat get elected would be good.

Only a publicity-seeking celebrity-addicted narcissist with money to burn would choose to run under those conditions, you say? Maybe so. What’s your point?

Whatever Trump’s role in the election, his magnetism is telling. Granted, in channeling frustration with politics as usual, he’s doing nothing new. Trump is hardly the first to see that frustration and exploit it. He does, on the other hand, have an interesting idea about its cause.

Trump is in no true sense conservative—or, for that matter, a centrist or progressive. Nobody would call him a wonk. His populism is of a purer strand.

He is a man of widely assorted convictions, many of them both false and repellent, each expressed with total commitment until the next one comes along. To hell with coherence. He is beyond ideol-

ogy—unless “Action This Day” counts as a worldview.

Trump doesn’t see gridlock in Washington as the result of polarization and an increased reluctance to reach pragmatic centrist compromises, or any such smarty-pants nonsense. He rejects trade-offs as firmly as any hardline partisan would, but not because his principles rule them out. His certainties are simply a matter of when you’re right, you’re right.

In effect, he attributes the capital’s malaise to a failure of character. Trump says career politicians are all much alike, and it doesn’t much matter whether they’re Democrats or Republicans: They know how to talk, and talk, and talk, but not how to get something done.

My neighbor would ask, “Is he wrong?”

Alas, not entirely. One of Washington’s working assumptions is that it doesn’t matter how little the government actually achieves, or how far Congress and the White House sink in popular esteem. The view seems to be that if literally nobody bothered to vote, that could be a problem—but as long as a few people keep turning out to record a preference, candidates can get elected and the system remains viable, if not as a method of government, then at least, as a rewarding career path and a way to gratify political ambition.

At some point, perhaps, voters may decide enough is enough and do something rash. It may not be Trump, but others will come along. Meantime, if nothing else, The Donald has called Washington’s limitless complacency into question.

capsized off the Libyan coast.

Yet, it’s clear why the flood of refugees continues despite such dangers.

While some may indeed be economic migrants drawn by the prospect of jobs and a better life in Europe, the vast majority of refugees are fleeing in genuine fear for their lives, especially those from failed states, such as Syria and Libya, or countries like Iraq, where Islamic State militants threaten to slaughter anyone opposed to the group’s radical ideology. Journalists who have interviewed survivors of the journey to Europe cite stories of atrocities that include mass executions of civilians, widespread rape of women and girls, and the forcible enlistment of child soldiers into the insurgents’ ranks.

Antiimmigration political parties in Europe have sought to block efforts to resettle refugees in the EU, or even to allow their countries to cooperate in organizing desperately needed humanitarian aid for the new arrivals.

As a result, European policy-makers have been so paralyzed by political pressures they’ve become little more than hapless witnesses to the catastrophe

washing up on their shores. But domestic politics won’t absolve them of the tremendous loss of life their indecision has permitted, nor relieve them of their moral responsibility to come to the aid of people whose desperate circumstances have rendered them unable to help themselves.

The Obama administration has been uncharacteristically muted in its efforts to prod European leaders to respond more decisively to what is shaping up as one of the largest migrations of displaced persons since the end of World War II. Secretary of State John Kerry, understandably, has been preoccupied for months with working out a nuclear deal to prevent Iran from building a bomb. But the growing refugee problem in Europe constitutes another kind of potential bomb—a diplomatic and demographic one—whose effects on the EU’s security and wellbeing over the long run could be just as explosive if left unattended. Because of that, the US has a vital interest in how Europe handles the current crisis and now is the time for it to be saying, so loud and clear. TNS

2nd Front Page BusinessMirror

A8 Wednesday, August 26, 2015

Maybank sees 7% PHL GDP growth

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By Genivi Factao

alayan Banking Berhad (Maybank), Asean’s fourthlargest bank by assets, projects growth averaging 7 percent for the Philippines this year, driven in the main by the country’s so-called large demographic dividend.

Maybank Group CEO Datuk Abdul Farid Alias said the country’s potential gross domestic product (GDP) growth was seen averaging 6 percent to 7 percent, but that its demographic dividends, borne of a young and upwardly mobile population, were seen pushing local output higher to 7 percent up to 8 percent.

“Our economic outlook is very positive and that’s why we’re here and the global investors, as well.

What we see in the marketplace is a robust economy and its fundamentals strong. The 7-percent GDP is possible. The 7-percent to 8-percent growth rate is the rate that keeps moving in Asia,” he told the BusinessMirror.

He sees the Philippines reaping huge demographic dividends that

FARID said the country’s potential gross domestic product growth was seen averaging 6 percent to 7 percent, but that its demographic dividends, borne of a young and upwardly mobile population, were seen pushing local output higher to 7 percent up to 8 percent.

will help push growth higher for several decades to come.

He said the Philippines has a young population, with a median age of 23, and a declining fertility rate that will lead to an increase in the number of working adults who will drive domestic demand and spur economic growth.

“The lower fertility rate will impact the Philippines’s population structure, resulting in an increase in the size of the work force relative to young and old dependents. This could lead to a rise in disposable income and the doubling of the middle class, which bodes well for the Philippines where private consumption is the bedrock of its economy, accounting for about 70 percent of total GDP,” he said at the lender’s Invest Asean Philippines conference.

Farid added that the Philippines is in a good place, with strong GDP growth, a structural current-account surplus and a robust banking sector to finance future growth.

To reap the demographic dividends, Farid said the right policies need to be in place. He cited education and labor policies, as well as measures such as building better infrastructure, as key to improving employment and productivity for the working-age adults who will generate growth for the $272-billion Philippine economy.

The Philippines is rated as one of the fastest-growing economies in Asia, with average GDP growth sustained at some 6 percent the last five years. The country continued to report respectable growth of 5.2 percent in the first quarter this year.

Maybank hosted the Invest Asean Philippines, with the theme “Riding the boom: Asean’s demographic dividends,” at a Makati City hotel.

TETANGCO RECEIVES 5TH ‘A’ GRADE FROM ‘GLOBAL FINANCE’

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By Bianca Cuaresma

or the fifth time in a row, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. was recognized as one of just a few central bankers in the world able to help steer their economic ships to safety against a backdrop of strong global headwinds throughout the year.

The prestigious magazine Global Finance announced in its web site on Tuesday that Tetangco was one of nine central bank governors worldwide given an “A” grade, the highest rating possible, for helping steer the $272billion economy off worrisome economic grounds that have put some of its more economically endowed peers in trouble.

“The Central Banker Report Cards, published annually by Global Finance since 1994, grade the central bank governors of nearly 75 key countries [and the European Union] on an ‘A’ to ‘F’ scale for success in areas such as inflation control, economic growth goals, currency stability and interest-rate management,” the Global Finance said in its statement posted on its web site.

For this year, Tetangco kept his reputation intact as one of the best monetary minds in the world—along with the Czech Republic’s Miroslav Singer, European Union’s Mario Draghi, India’s Raghuram Rajan, Israel’s Karnit Flug,

Malaysia’s Zeti Akhar Aziz, Paraguay’s Carlos Fernandez Valdovinos, Peru’s Julio Velarde Flores and Taiwan’s FaiNan Perng.

The grade A rating, Global Finance said, reflects Tetangco’s excellent performance in handling the monetary affairs of one of Southeast Asia’s fastest- growing economy.

Prior to this year, the international finance publication extended to Tetangco the same recognition in 2006, 2007, 2011, 2012, 2013 and 2014, making 2015 his seventh such recognition and his fifth in a row.

“Global economies are starting to recover. This comes despite a number of challenges, including a strengthening US dollar and the end of the Federal Reserve’s easy money policy. Central bankers remain crucial in overcoming these hurdles. Sound monetary policies can dampen the effects of currency swings and rising interest rates—and thus spur economic growth,” Global Finance Publisher and Editorial Director Joseph Giarraputo said.

Only recently, the Philippine central bank was tested by a string of volatilities as global markets tumbled due to developments triggered in part by events in China.

The local currency lost 31.5 centavos in a single day’s trade on Monday to 46.815 per dollar, its lowest in more than five years.

www.businessmirror.com.ph

China gloom dims hopes for further imports rise Continued from A1

Ang said a lot is riding on what will happen in China in the next few months. Already, the impact of the devaluation in China, combined with the steep fall in Wall Street, has sent stock markets worldwide plunging to recordlows on Monday.

The Philippine stock market lost P764 billion in a single day’s trading. The benchmark PSE index (PSEi) shed 487.97 points, or 6.7 percent, to close at 6,791.01, on huge sell-offs.

“It’s good data but we have to wait for what will happen in China to determine how this will affect the economy,” Ang said.

Data showed that electronic product imports grew 120.2 percent in June 2015 to $1.955 billion, from $887.60 million in June 2014. It accounted for 33 percent of the country’s total imports in June.

The main driver of the growth of electronic imports was Semiconductors, which rebounded with a growth of 168.1 percent in June.

Semiconductors accounted for 28 percent of electronic products. The value of these shipments grew to $1.655 billion in June 2015, from $617.08 million in June 2014.

Meanwhile, the country’s top import sources were China, which accounted for 14.9 percent of total imports, followed by the United States with 14.3 percent and Japan, 8.3 percent.

Imports from China were recorded at $884.06 million. This represented an increase of 1.7 percent from $869.11 million in June 2014.

Shipments from the US amounted to $845.29 million, up 123.8 percent from $377.75 million in June 2014. Japan’s share in the country’s import bill reached $494.12 million in June 2015. It was a 6-percent growth from the $466.29 million posted in June 2014.