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Thursday 18, 2014 Vol. No. 40 Friday, December 18,102015 Vol. 11 No. 71

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BSP HOLDS RATES IN OWN VOTE OF CONFIDENCE FOR ECONOMY

‘Fed liftoff should not impact on PHL’s cost of borrowing’

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he country’s borrowing costs were seen cheaper and should not widen or become more expensive next year, even though interest rates in the US have just been adjusted upward, according to the Department of Finance.

INSIDE

all-new Elantra

At the same time, inflation, or the rate of change in prices, were to remain below target this year, even as the same

motoring

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isuzu 4x4 roadfest

motoring

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DEFECTORS GIVE BACK

sports

A12

were to move up only marginally higher next year and only begin to ramp up significantly by 2017, according to the

INVESTORS CHEER YELLEN STATEMENT ON U.S. ECONOMY

Bangko Sentral ng Pilipinas (BSP).

These developments were to proceed from the decision early Thursday by the US Federal Reserve (the Fed), still the world’s most influential central bank, lifting its borrowing rate a quarter-point higher to a range of 0.25 percent to 0.5 percent, from near-zero borrowing rates the past seven years.

“As we have long watched this development closely, today’s liftoff will not change our financing Continued on A2

Palace approves ₧19-B fund for El Niño impact mitigation T he President has approved a budget of P19 billion for the government’s mitigation measures to combat the ill effects of El Niño, Economic Planning Secretary Arsenio M. Balisacan said.

Some P6.6 billion has already been included in the government’s budget for this year, while the remaining P12.4 billion will be sourced from government savings and spent for El Niño-related programs next year.

“We have the money already for this, identified by our budget secretary. Roughly P6.6 billion is in the current budget and the rest will be sourced from the savings, [such as] savings from bids or projects that have been bid [out] and [were] cheaper than the initial amount,” Balisacan said.

Apart from the budget, Balisacan also said the El Niño Task Force has recommended the additional importation of 300,000 metric tons (MT) to 400,000 MT of rice in the second quarter.

The government is already expecting the arrival of 500,000 MT of rice in the first quarter.

However, El Niño has the potential to cut the country’s rice production next year.

Balisacan said El Niño is expected to peak between March and May next year. This makes the importation of rice necessary since, apart from the actual rice requirements, the government

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Security Bank wins ‘Bank of the Year-Philippines’ award for the second time Security Bank Corp. (SBC) President and CEO Alfonso L.

Salcedo (center) receives the 2015 Bank of the Year-Philippines award from The Banker, the international banking and finance magazine of the Financial Times Ltd. SBC first received this recognition in 2012. The Bank of the Year Awards is regarded as the “Oscars of the global banking industry” and is the world’s longest-running international banking title. Only one bank is selected per country based on overall banking excellence, citing strong management, sound business model and prudent risk-management approach.

With Salcedo are BBC broadcast journalist Michael Buerk and Asia editor of The Banker Stefania Palma during the awards dinner in London.

F

ederal Reserve (the Fed) Chairman Janet Yellen delivered a two-pronged message that stock-market investors cheered: The US economy is performing well and the central bank is in no rush to raise interest rates again.

She told a news conference that the central bank had put itself in a position to nurture the six-and-a-half-year-old expansion by raising rates a bit now to avoid having to increase them a lot later.

That will enable the Fed to tighten policy gradually, moving rates up in fits and starts to keep the economy on track.

While US exports had been hurt by weaker overseas growth and a stronger dollar, Yellen said these headwinds were being offset by a solid expansion in domestic spending. “Americans should realize that the Fed’s decision today reflects our confidence in the US economy,” Yellen said. “While things may be uneven across regions of the country and different industrial sectors, we see an economy that is on a path of sustainable improvement.”

Equity prices rallied in response, with the Standard & Poor’s 500 Index of US stocks rising 1.5 percent to 2,073.07 in New York.

Bond prices fell on the prospects of higher short-term interest rates, though yields on the benchmark 10-year Treasury note remained below levels seen last month.

‘True leadership’

“She has managed to pull it all together,” said Chris Rupkey, chief financial economist with Bank of Tokyo-Mitsubishi UFJ Ltd. in See “Investors,” A2

See “El Niño,” A2

PESO exchange rates n US 47.3240

n japan 0.3873 n UK 71.0144 n HK 6.1066 n CHINA 7.3107 n singapore 33.6013 n australia 34.0877 n EU 51.6258 n SAUDI arabia 12.6147

Source: BSP (17 December 2015)

A2

News

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Friday, December 18, 2015

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‘Fed liftoff should not impact on PHL’s cost of borrowing’ Continued from A1

plans. We have taken care to do our homework: for example, our general government debt-to-GDP ratio is now at 36.2 percent from 44.3 percent in 2009. I believe our borrowing costs will continue to narrow because of positive investor sentiment on the back of good fundamentals,” Finance Secretary Cesar V. Purisima said.

Over at the central bank, BSP Governor Amando M. Tetangco Jr. released the following statement: “The Monetary Board [MB] has considered the potential impact of the recent monetary-policy adjustment in the US on global financial conditions, noting that keeping the monetary-policy settings steady at this juncture would allow the BSP some room to continue to assess evolving global economic conditions and calibrate its policy tools as appropriate.”

“With these considerations, the Monetary Board believes that prevailing monetary-policy set-

El Niño. . .

tings are appropriate, given the outlook for inflation and domestic economic activity,” Tetangco quickly added.

Against this backdrop, he ruled out price movements causing inflation to range beyond 1.4 percent this year, the 11-month inflation having actually averaged also only at 1.4 percent.

For next year, Deputy BSP Governor for the Monetary Stability Sector Diwa C. Guinigundo said inflation should average 2.4 percent, slightly up from the November forecast of 2.3 percent.

In 2017, inflation was forecast to hit 3.2 percent, up from 2.9 percent reported in November.

Both the 2016 and 2017 forecasts are within the BSP’s target range of 2 percent to 4 percent. Guinigundo cited three reasons for the increase in the inflation forecasts.

“One is the higher reading for the November inf lation rate.

Second, the board also noted the impact of the weakening of the peso against the US dollar so the

depreciation of the peso could impose pressures on inf lation moving forward.”

“And, finally, the price of key commodities due to weather disturbance,” Guinigundo said.

From the fiscal point of view, the US interest-rate hike should have minimal impact on the $285-billion economy as the adjustment had long been anticipated and factored into local bond issuances.

“The US Federal Reserve decision raising rates after almost a decade of near-zero rates is necessary to prevent mispricing of risks and assets. It has also been widely expected, and thus, has allowed markets to price in its effects. Indeed, we have seen the impact of the anticipated liftoff across the region—but after the usual knee-jerk reactions, proof emerges that markets do differentiate economies based on fundamentals,” Purisima said in a statement.

Finance Undersecretary and chief economist Gil S. Beltran acknowl-

edged that, while current stock and bond prices already factored in the rate increase in the US, there could still be some volatility under current price ranges.

“The Fed liftoff has been long awaited and has been priced in by market players. We expect more volatility around existing levels,” Beltran said.

As a consequence, the local currency the peso fell by 5.5 centavos to close the day at P47.395 per dollar from P47.43 on Wednesday.

The Philippine Stock Exchange index (PSEi) was also up by 1.44 percent and reported an increase across all subindices except the property sector.

The BSP backed this up, saying the Fed’s action should prove positive for the country as this puts an end to the uncertainty of the liftoff in borrowing costs.

“The Fed’s statement should anchor confidence on the path of growth and inflation in the US. We may see the US yield curve f latten, which would be posi-

tive for EMEs [emerging-market economies] that have exposures in the long end of the curve or are planning to tap this sector for funding,” Tetangco said.

He also said currencies previously moved lower versus the US dollar in recent weeks in anticipation of the hike. While weaker currencies and capital outflows could result from these developments, he gave assurance such movements should not happen in significant volumes like in the past. “ The Fed promised gradual hikes. That may be further moderated as the US enters an election year.

That said, on balance, the Fed action should be constructive for EMEs,” the governor said.

Also, Fitch Ratings Associate Director for Sovereign Ratings Mervyn Tang said the country’s long-standing state of surplus in its current account helps make the Philippines “more resilient than many other emergingmarket economies to any shift in global investor sentiment following the Fed rate hike,” Tang said.

Continued from A1

still needs to maintain a 45-day buffer stock.

“I estimated that if things would not improve or there would be no major changes ahead we would be seeing the need to import 1.3 million MT for the second quarter of 2016. Now, with the new numbers, we don’t need that much of import now. We probably need to import around 300,000 to 400,000 MT for two things,” Balisacan said.

“One, as I said earlier, the production is not likely to be as bad as initially estimated, even the new data. second, we have put in place appropriate program for the RAIN, or the Roadmap to Address the Impact of El Niño, and part of the program is to maximize the opportunities for increasing production in area where there is still, there will be water sup-

ply and not so badly affected by the drought or the dry spell,” he added.

Balisacan said the government will implement cash-for-work programs, which are estimated to cost P2.9 billion this year and P7.3 billion in the first semester of next year.

The cash-for-work programs will be implemented by the National Irrigation Administration (NIA); departments of Public Works and Highways; Labor and Employment; Trade and Industry and the Technical Education and Skills Development Authority.

Apart from these programs, the government will also be allocating some P3.75 billion for water management, particularly for farm production. Balisacan said P1.75 billion will be spent by the Department of Agriculture, the NIA, and the De-

partment Environment and Natural Resources in the remaining months of this year. The bulk or P2 billion is allocated for the first semester of 2016.

Further, Balisacan said the Department of Social Welfare and Development will also be introducing food stamps to farmers or those in allied industries that may also be affected by the drought. This intervention, he said, will require a budget of P1.3 billion for the remaining months of 2015 and P1.9 billion for the first semester of 2016.

P10-B disaster fund

MalacaÑang has assured that over P10 billion in standy funds are still available for quick release to bankroll the government’s immediate postdisaster response in

areas that could be hit by typhoons in the last two weeks of 2015.

Communications Secretary Herminio B. Coloma Jr. told reporters that Budget Secretary Florencio B. Abad gave the assurance, even as the Aquino administration braces for the relief and rehabilitation efforts it is expected to mount in the aftermath of other weather anomalies likely to affect the country before the year-end.

“According to Secretary Abad, we still have a balance of more than 4 billion in the calamity fund and savings of at least P6 billion more that can be used for relief and rehabilitation purposes,” Coloma said.

Coloma added that in the 2016 budget, which the Palace expects to approved soon, “there is a provision of P19 billion in the calamity fund.”

“Ang ginagamit ngayon ay ’yung mga quick-response funds ng mga kagawaran natin. Ina-augment kaagad ng DBM [Department of Budget and Management] para ma-release ’yung quick-response funds at makatulong kaagad sa ating mga kababayan,” the Palace official said.

He disclosed that President Aquino had been receiving field reports directly from concerned local officials, but these still need to be validated in order to provide the appropriate government response.

He said they are now waiting for the reports from Mindoro island.

As part of standard procedures of the National Disaster Risk Reduction Management Council, he added, it first needs to do a rapid assessment of the situation.

With Butch Fernandez

Fitch maintains a positive outlook on the “BBB minus,” or “BBB-,” standing of the Philippines.

The BSP looks forward to a current account surplus totaling $14.2 billion this year equal to 4.4 percent of the country’s local output or the GDP. Such, however, remains subject to revisions over the short term.

As a result of these developments, the BSP kept the rate at which it borrows from or lends to banks steady on Thursday at 4 percent and 6 percent, respectively.

Tetangco reiterated the view that the Philippines remains on a solid path to continued growth even though the outlook on other parts of the world are uncertain for some.

He a l so sa id t he MB h a s confidence to retain its policy stance, and delay adjustments further as domestic conditions were likely to stay firm, supported by solid private household and capital spending, buoyant market sentiment and adequate domestic liquidity.

Investors. . .

Continued from A1

New York. “Speaking out to the American public and telling them with a first rate hike that the economy is on the path to sustainable improvement is a move that shows true leadership.”

Wednesday’s quarter-point increase in borrowing costs was the culmination of a yearlong effort by the Fed to prepare investors, consumers and companies for the end of an unprecedented era of ultra-easy money.The Federal Open Market Committee lowered its benchmark rate to zero to 0.25 percent in December 2008, three months after the collapse of investment bank Lehman Brothers Holdings Inc. and 10 months before unemployment in the US peaked at 10 percent. “ The first move is very significant,” Richard Davis, CEO of US Bancorp, the nation’s largest regional bank, said in an interview. “It gives everyone permission to agree that we are now moving forward with the recovery.”

Confident outlook

Yellen repeatedly stressed her confidence in the health of the US economy and played down concerns that it would be knocked off course by weakness overseas or by the recent tumult in the high-yield bond market.

Since the recovery began in June 2009, GDP has grown at a steady, albeit unspectacular, pace of 2.2 percent per quarter on average. The expansion has already lasted longer than the post-World War II mean of just under five years.

“It’s a myth that expansions die of old age,” Yellen said. “I don’t see anything in the underlying strength of the economy that would lead me to be concerned” about a recession.

She acknowledged in response to a question that central banks in the past have killed off expansions by tightening policy. But she argued that was because policy-makers felt compelled to raise rates sharply and abruptly because they had waited too long to move. “It is because we don’t want to cause a recession through that type of dynamic at some future date that it is prudent to begin early and gradually,” she said.

Yellen used the word “gradually” or “gradual” about a dozen times in her hour-long news conference to describe the pace of future rate increases. Policymakers forecast that the short-term policy rate will rise to 1.375 percent at the end of 2016,implyingfourquarter-pointincreases in the target range next year, based on the median number from 17 officials.

“I do want to emphasize that while we have said gradual, gradual does not mean mechanical—evenly timed, equally sized, interest-rate changes,” she said. “As the outlook evolves, we’ll respond appropriately. I strongly doubt that it will mean equally spaced hikes,” she added. The Fed will be able to take such an approach because inflation is so far below its 2-percent goal. As measured by the personal consumption expenditure price index, it rose by 0.2 percent in the 12 months through October. Bloomberg News

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The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Friday, December 18, 2015 A3

C. Luzon flooding feared in wake of Typhoon Nona

Naia opens P452-M taxiway extension

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By Rene Acosta

he government on Thursday warned residents of Central Luzon against the threat of massive flooding that may come from cascading waters from Siera Madre due to the strong overnight rain on Wednesday in the provinces of Aurora, Zambales and Nueva Ecija.

Mahar Lagmay, head of the Project Noah of the Department of Science and Technology (DOST), issued the warning amid the increasing number of deaths due to landslides and widespread flooding in Southern Luzon, the Bicol region and Northern Luzon in the aftermath of Typhoon Nona (international code name Melor).

The National Disaster Risk Reduction and Management Council (NDRRMC) put its official number of fatalities from the typhoon to eight as of Thursday, although unofficial reports collated as of Wednesday already pegged it at 12.

In Mimaropa (Mindoro, Marinduque, Rombon and Palawan), or Region 4B, alone, which is one of the regions hardest hit by Nona, at least 11 deaths have been reported by Supt. Imelda Tolentino, spokesman of the region’s police, while at least four barangays in Oriental Mindoro are still under water.

In Quezon province 25-year-old Army Lt. Michelle Mae Deliarte died, while three of her colleagues were injured, after they were hit by a landslide while traversing the national highway in the town of Infanta on Wednesday night.

Those who were injured were Lt. Sarah Jane Bagasol, 24; Cpl. Cheryl Ramirez, 24; and Cpl. Renato Villanueva, 32, all of the 1st Infantry Battalion.

A landslide hit the Isuzu Crosswind carrying the victims, causing it to overturn several times.

Mangahas said the large volume of water accumulated by the Siera

Madre will cascade downstream threatening Central Luzon provinces, especially Bulacan and Pampanga.

He said the probability of massive flooding could approximate the flooding generated by Typhoon Ondoy (international code name Ketsana) in 2009, which turned Eastern Metro Manila into a big swamp.

The overnight rain has flooded several areas in Nueva Ecija, Aurora and Nueva Vizcaya, spreading Nona’s devastation from Southern Luzon to Northern Samar to Central Luzon.

Local disaster officials said provinces in Regions 4A, 4B and 8, and in the Bicol region were still recovering from the destruction brought by the first typhoon to hit the country this month.

The NDRRMC said the provinces of Albay and Sorsogon have already declared state of calamities, while two cities and 38 municipalities in other typhoon-affected provinces were still without power.

Telecommunications in Northern Samar, supposedly the hardest-hit province, is still spotty.

The NDRRMC also reported at least 1,695 houses that were damaged, a figure that is much lower than the number reported by local disaster officials in areas battered by the typhoon. It also said at least P320 million worth of agriculture crops and infrastructure have been damaged or destroyed.

As Nona has weakened into a low pressure area, the Philippine Atmospheric, Geophysical and Astronomical Services Administration said it is still expected to dump rains in the provinces of Bataan and Zambales on Thursday and Friday, as Tropical Depression Onyok is threatening Caraga and the Davao region.

As of 10 a.m. on Thursday, state weather forecasters said Onyok was at 625 km east of Hinatuan, Surigao del Sur, and was moving north at the speed of 55 kilometers per hour.

Comelec accepts Duterte’s COC amid disqualification case

By Joel R. San Juan

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HE Commission on Elections (Comelec) on Thursday accepted the certificate of candidacy (COC) for president of Davao City Mayor Rodrigo Duterte, despite a petition seeking his exclusion from the presidential race.

Comelec Chairman Andres D. Bautista said the poll body’s en banc voted 6-1 in favor of Duterte. However, he clarified that the decision is without prejudice to the ongoing hearing of the disqualification case filed against Duterte by broadcaster Ruben Castor.

Castor earlier asked the Comelec to nullify the COC filed by Martin Diño for president under the PDPLaban and render Duterte’s substitution for him invalid.

Castor argued that Duterte cannot substitute for Diño, because the latter wrote in his COC for president that he is running for the position of Pasay City mayor.

Bautista said the Comelec “resolved to acknowledge and accept the COC for president of Rodrigo Duterte, being a ministerial function of the commission.”

He added that the resolution “is entirely without prejudice to the pending disqualification case” filed

by Castor.

As a result, Duterte is now included on the list of presidential bets.

The Comelec’s First Division is set to conduct a hearing on Castor’s petition on Friday.

Meanwhile, presidential wannabe and Sen. Grace Poe filed on Wednesday a motion for reconsideration of the decision issued by the Comelec First Division nullifying her COC for not being a natural-born Filipino citizen and for failure to meet the 10-year residency requirement.

In a 90-page petition filed by her lawyer, George Garcia, Poe asked the Cormelc to reverse the December 11 ruling of the First Division, insisting that she did not commit any material misrepresentation in her COC for president.

“Considering that respondent did not commit any material misrepresentation in her COC for president, the three cases now pending before the Comelec en banc are relegated to nothing but premature attempts to attack respondent’s eligibility for the presidency,” Poe’s counsel said.

Earlier, the Comelec’s First Division, with a vote of 2-1, ruled to cancel the COC of Poe, after she was found to have made material misrepresentation in claiming to be a natural-born citizen and a resident of the Philippines for 10 years.

The decision stemmed from the consolidated petitions filed by former University of the East Law Dean Amado Valdez, former Sen. Francisco “Kit” Tatad and De La Salle University Prof. Antonio Contreras.

In its ruling, the Comelec’s First Division said it is incumbent upon a person who claims Philippine citizenship to prove to the Court that he is really a Filipino, to which Poe failed to do.

The camp of Poe questioned the ruling of the Comelec’s First Division, as it runs against the finding of the Senate Electoral Tribunal (SET), which recently ruled Poe as being a natural-born citizen.

Poe argued that it is unacceptable that the Comelec’s First Division has disregarded the decision of the SET, being the “first and only standing, final and executory ruling on the issue that Poe is a natural-born Filipino.”

By Recto Mercene

he premier airport’s congestion is expected to ease shortly with the inauguration on Friday (December 18) of the Ninoy Aquino International Airport’s (Naia) taxiway extension, code named “November,” from a length of 610 meters to 1,500 meters, which would allow connection to another taxiway code named “Charlie.”

The Manila International Airport Authority (Miaa) announced that the taxiway is in front of the tarmac of the Naia 3.

“The P452-million extension project aims to further decongest

Military, ASG firefight rages in Basilan

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ntermittent fighting continued for the fifth day on Thursday between the military and the Abu Sayyaf Group (ASG) defending its camp from being overran by government forces in the hinterlands of Basilan.

The firefight continued, as the bandits, reportedly headed by ASG commander Isnilon Hapilon, managed to put up pockets of resistance against a closing-in battalion of ground forces tasked to capture the bandits’ camp sitting on a forested area in Al Barka.

Three soldiers, including one of the leaders of the assaulting forces, Capt. Vincent Cordero, commander of the Army’s 8th Scout Ranger Company, have been killed, according to Maj. Filemon Tan, spokesman for the Armed Forces Western Mindanao Command.

Tan also identified the two other casualties as Pfc. Marctan Tirambulo, member of the 1st Scout Ranger Company; and Staff Sgt. Jesus Toting, a member of the Marine Special Operations Group.

On Tuesday intense fighting broke out between the soldiers and more than 80 terrorists, who were initially defending the big camp, which resulted in the death of three soldiers and the wounding of 13 others. The firefight spilled over into the barangays of Al Barka, including Macalang.

Tan said ground forces also killed at least 13 bandits and wounded at least 10 others, although he admitted that they have yet to recover the bodies because the ASG, as well as other lawless groups operating in Mindanao usually take along with it the bodies of its dead colleagues.

On Sunday elite troops, including Scout Rangers, Special Forces and those from the Marine Special Operations Group and the Navy’s Special Operations Group, assaulted a newly discovered, but almost impenetrable, camp of the ASG in Al Barka, as the government intensified its campaign against the group.

Tan said the elite soldiers were backed by armored vehicles.

The campaign was ordered by President Aquino in the aftermath of the series of kidnappings perpetrated by the bandit group and its beheading of its Malaysian kidnap victim Bernard Then.

As of Thursday, the troops were still struggling to take control of the ASG fortress, which is dotted by heavily manned underground outposts, due to resistance from the bandits, led by Hapilon, one of the ASG leaders sought by the United States under its Rewards for Justice Program. Rene Acosta

the taxiway—particularly at the intersection of the runways—and to facilitate ground-handling flexibility of international operations,” the Miaa Media Affairs Division (Mad) said in a statement.

Construction began in November 2014 and was completed in October this year.

Communications Secretary Emilio Joseph A. Abaya was invited to attend the event as the guest of honor.

The Miaa invited the media to cover the event.

Due to the increased number of airplane f leets by local air carriers, including increased frequency of international airlines, air traffic at the Naia had shot up considerably over the years, leading to congestions. This, despite the increased parking aprons provided by the Naia’s four passenger terminals.

The increased length of the ta xiway, along runway 13-31 and activation of the rapid-exit taxiway on runway 06-24, would hopefully do away with congestions that, in the past, forced aircraft to wait for as long as one hour, Mad said.

“A rapid-exit taxiway branches out of the main runway in a slightly diagonal direction before joining the taxiway, allowing aircraft to exit at a faster clip and permitting succeeding airplanes to land or depart in a shorter space of time,” Mad added.

This is in contrast to previous taxiways that were constructed at a 90-degree angle to the runway, which forced airplanes to make a full stop before turning into the runway, consuming much time between landings.

Currently, the intersecting design of the Naia runways requires at least one minute and 40 seconds to exit but with the proposed construction of the rapid-exit taxiway, this would be shortened to one minute.

The new taxiways will increase the number of hourly landings and takeoffs from its current 40 to 60 aircraft movement, Mad said.

Economy

A4 Friday, December 18, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Govt okayed ₧48.6B worth of foreign investments in Q3

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By Cai U. Ordinario

he government approved a total of P48.6 billion worth of foreign investments in the third quarter of 2015, according to the Philippine Statistics Authority (PSA).

PSA data showed that this was a 165-percent increase from the P18.3 billion worth of foreign investments approved in the same period in 2014.

Data showed that the total approved foreign investments in January to September reached P106.6 billion. This represented a 16.2-percent increase from P91.8 billion recorded in the previous year.

More than half of these prospec-

tive investments will come from the Netherlands with P27.7 billion, or 56.9 percent, of the total. Other sources of investments are Japan and South Korea, which accounted for 8.4 percent and 7.5 percent of the total approved foreign investments, respectively.

The electricity, gas, steam and air-conditioning supply sector cornered a chunk, or 57 percent, of foreign-investment pledges. Total

investment pledges for this sector hit P27.8 billion.

In terms of location, the PSA said around 66.3 percent, or P32.2 billion, will go to Region 4A or Calabarzon.

Region 3 and the National Capital Region are the two other big recipients of foreign investments at P7.6 billion and P4.9 billion, respectively.

Meanwhile, investment pledges made by both Filipino and foreign investors amounted to P168.2 billion. This is 5.4 percent higher than the P159.6 billion posted in the same period last year.

“Filipino nationals continued to dominate investments approved during the quarter, sharing 71.1 percent, or P119.6 billion, worth of pledges,” the PSA said.

Among the industries, electricity, gas, steam and air-conditioning supply accounted for the lion’s share at P83.4 billion, or 49.6 percent, of total approved investments.

Projects of foreign and Filipino investors approved by the government in the July-to-September period are expected to generate 48,776 jobs. The PSA said this is lower by 10.7 percent from last year’s projected employment of 54,606.

Out of the total anticipated jobs for the period, 78.1 percent would come from projects with foreign interest. Among the industries, manufacturing will generate the most number of jobs at 15,330.

The data on investment pledges was obtained from the approvals made by the country’s seven Investment Promotion Agencies (IPAs)—the Board of Investments (BOI), Clark Development Corp., Philippine Economic Zone Authority, and Subic Bay Metropolitan Authority, Freeport Area of Bataan, BOI-Autonomous Region in Muslim Mindanao and the Cagayan Economic Zone Authority.

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DTI recommends third-party testing of ‘problematic’ Mitsubishi Monteros

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N independent third party should be tapped to determine the cause of the so-called sudden unintended acceleration (SUA) problem of Mitsubishi Montero vehicles, the Department of Trade and Industry (DTI) said on Thursday.

The DTI also said it will hold off the recall of “problematic” Mitsubishi Monteros pending the findings of the independent consultant.

Trade Undersecretary for Consumer Protection Victorio Mario A. Dimagiba said these recommendations were made following the DTI’s two-week investigation on the SUA issue.

“On the technical side, we recommend an independent third party to conduct an investigation on the cause of the SUA,” Dimagiba said in a media briefing on Thursday.

He said the DTI recommended third-party testing as the findings of car owners and Mitsubishi Motors Philippines Corp. (MMPC) during the two-week period were “self-serving.”

The findings of the resource persons hired by the investigating panel were tested through plant inspection but, even with the involvement of the Department of Science and Technol-

Davao City Council blocks Sasa Port bidding

By VG Cabuag & Lorenz S. Marasigan

nwrb to release irrigation water from angat dam

solon wants to look into implementation of phl’s traffic laws

FLOODED CROPS Corn crops and coconut trees in Santiago City, Isabela, were submerged in floodwaters following days of intense rainfall brought by Typhoon Nona (international code name Melor). LEONARDO PERANTE II

steel, wheat, fertilizer, motor vehicles, heavy equipment and other cargo not suitable for containers went through the port in 2014, the city council said citing data from the Philippine Ports Authority (PPA).

The Davao Integrated Port and Stevedoring Services Corp., a unit of ICTSI, said the current capacity of Sasa stands at 700,000 twenty foot equivalent units (TEUs). The yearly volume handled by the operator is only

300,000 TEUs. Valoria said the container shipping requirements are already met by the existing private ports such as DICT, Terminal Facilities and Services Corp., Sumifru, Unifrutti, Dole/Pacinter and the planned Hijo International Port Services Inc., another unit of ICTSI. He said three quarters of foreign containers totalling 358,312 TEUs are already using the

said private ports.

The initial PPP proposal by the PPA estimated that P4.7 billion was needed to modernize Sasa Port.

The DOTC, together with the Development Bank of the Philippines and the International Finance Corp., then commissioned Hamburg Port Consultants for an alternate study, which jacked up the cost by almost fivefold.

House OKs bill creating Department of Housing and Urban Development

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briefs Farmers in Bulacan and Pampanga will have water for their irrigation needs in December and January as the National Water Resources Board (NWRB) assured on Thursday it will release water for farm use from the Angat Dam. NWRB Executive Director Sevillo D. David said the board has approved the allocation of 25 cubic meters per second (cms) of irrigation water from Angat Dam from December 16 to 31 and for the month of January due to the increase in the water elevation of the reservoir.

According to David, Angat Dam’s water level as of 8 a.m. on December 17 has reached 213.10 meters, which is higher than the dam’s normal high water level of 212 meters.

Aside from irrigation water, the NWRB has also approved the distribution of 40 cms of water from the Angat Dam for domestic use.

Mary Grace Padin

T

he Davao City Council said it is opposing the bidding for the Davao Sasa Port Modernization project, currently being operated

by International Container Terminal Services Inc. (ICTSI) for the containerized cargo, after the national government failed to consult with the local government.

“This unnecessary project was being forced upon Davao without the proper consultation. This resolution will now enable Davaoeños to contribute meaningfully toward defining the correct need and use of Sasa Port,” said Alexander Valoria, president of the Anflocor Management and Investment Corp.

Anflocor is the operator of the Davao International Container Terminal (DICT).

The bidding for P19-billion project is being carried out by the Department of Transportation and Communications (DOTC) and one of the last projects under the Aquino administration’s Private-Public Partnership Program.

The project faces overwhelming reactions, concerns, apprehensions, questions and opposition from the Davao City Chamber of Commerce and Industry, consumers, labor unions and even informal settlers, the local city council said.

They said there is no plan for break-bulk and bulk cargo, which is important for Davao City.

The port, also called as Sasa Wharf, is designed for break bulk cargo vessels, which is vital to the economy of Davao City.

About 500,000 metric tons of

ogy (DOST), the results were “inconclusive.” This is because the country has no facility for full-vehicle testing.

Two Germany-based facilities are being eyed by the DTI to test the problematic Mitsubishi Monteros.

Enrico del Moro, manager of the DOST’s Product Development Center, said the independent third party can isolate the real cause of the SUA issue.

The DTI said there is no timeline for the testing process but the department aims to tap a consultant within 30 days to expedite the resolution of the problem.

Meanwhile, the DTI investigating panel said it has filed a formal administrative charge against MMPC based on the sworn testimonies of alleged SUA victims.

“We have filed a formal charge against MMPC for defective products, deceptive sales and Article 10 for the sale of hazardous and dangerous products,” Fair Trade Enforcement Bureau Director Danilo B. Enriquez said.

Enriquez added that the DTI has filed the case based on the 24 SUA complainants’ sworn statements.

Catherine N. Pillas

he House of Representatives has approved on third and final reading a measure creating the Department of Housing and Urban Development.

With 221 votes, House Deputy Speaker Giorgidi Aggabao announced the approval of House Bill (HB) 6194, or the Department of Housing and Urban Development Act, late Wednesday.

The HB 6194 was principally authored

by Chairman of the House Committee on Housing and Urban Development Alfredo Benitez of Negros Occidental, Liberal Party (LP) Rep. Rodolfo Biazon of Muntinlupa, LP Rep. Jose Christopher Belmonte of Quezon City, Lakas Rep. Gloria Macapagal-Arroyo of Pampanga and Party-list Rep. Silvestre Bello III of 1-BAP. According to Benitez, the bill seeks to create the Department of Housing and Urban Development, which will be headed by

a secretary and four undersecretaries, by consolidating the Housing and Urban Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB).

Benitez said that the bill abolishes the HUDCC and transfers its powers, function, funds and appropriations, records, equipment, property and personnel to the department while it also reconstitutes the HLURB as the Human Settlements Adjudicatory Commission, which shall operate as an independent commission within the department.

According to the lawmaker the department shall act as the primary national government entity responsible for the management of housing an urban development, saying the agency shall be the sole and main planning and policy-making, regulatory, program coordination and performance- monitoring entity for all housing and urban- development

concerns, primarily focusing on the access to and affordability of basic human needs.

Among the functions assigned to the proposed department are the formulation of national and urban development and housing policy and strategy that will be consistent to the Philippine Development Plan and assume the lead role in coordinating, supervising government activities relative to housing and urban development, Benitez said.

The measure also seeks to rationalize and coordinate the functions and power of the National Home Mortgage Finance Corp., Home Guaranty Corp., Home Development Mutual Fund and National Housing Authority.

It provides that the department shall promulgate, adopt, amend, modify and/or repeal, such rules and regulations, as may be necessary to complement the intent and purposes of the act.

The measure said the amount necessary

for the initial implementation of the act shall be charged against the current year’s appropriations of the HUDCC and HLURB. Thereafter, such sums as may be necessary for the continued implementation of this act shall be included in the annual General Appropriations Act. Also, for the purpose of designating lands for housing and urban and rural development, the housing department, the Department of Environment and Natural Resources, the Department of Agrarian Reform and the Department of Agriculture shall, within in 180 days from the effectivity of this, jointly identify agricultural lands.

The bill provides the creation of Social Housing One-Stop Processing Centers, which shall be responsible for the centralized processing and issuance of all required housing-related permit, clearances and licenses. Jovee Marie N. dela Cruz

A lawmaker has recently asked the House Committee on Transportation to investigate the implementation of existing traffic laws.

In House Resolution 2449, Liberal Party Rep. Rodolfo Biazon of Muntinlupa said that the lower chamber should probe the implementation of existing laws to improve road safety in the country as road accidents have become the fourth leading cause of deaths in the Philippines.

“The death and injury of persons, including damage to property resulting from road accidents, is costing the Philippines $19 billion annually according to the Asian Development Bank [ADB] of the Philippines’s Regional Safety Program,” Biazon said.

Biazon also asked the panel to summon the officials of the Department of Transportation and Communications, the Philippine National Police and the private sectors to shed light on the matter. Jovee Marie N. dela Cruz

Two-thirds of smes IN ASIA PACIFIC SHY AWAY FROM EXPORT ACTIVITY–SURVEY Some two-thirds of small and medium enterprises (SMEs) in the Asia-Pacific region are not engaging in export activity as risks such as losses from foreign-exchange transactions and uncertainty of payment hinder their participation.

This was revealed in the “Asia-Pacific SME Export eBook: Export trends and behaviours among SMEs in Asia Pacific,” commissioned by FedEx Express, a subsidiary of New York Stock Exchangelisted logistics giant FedEx Corp.

The ebook is part of a broader study conducted by market research consultancy firm Harris Interactive on behalf of FedEx, entitled, “Global Opportunities: Examining Import and Export Trends Among Small Businesses.”

The study polled , 6,891 senior executives from 13 markets Brazil, China, Colombia, France, Germany, Hong Kong, India, Italy, Japan, Singapore, South Korea, Spain, Taiwan, including 3,315 from the Asia-Pacific region. Catherine N. Pillas

National Energy Consciousness Month A BusinessMirror Special Feature

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Friday, December 18, 2015

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DOE promotes energy resiliency in vulnerable Philippines

W

B L R. G

HEN Supertyphoon Yolanda (international code name Haiyan) wreaked havoc on the Philippines in November 2013, the most urgent needs were food, water, shelter and medical supplies.

After these basic human-survival essentials, restoring power is a vital element to disaster response—to keep overstretched hospitals running, provide light to restore order at night, provide warmth if needed and power for vital communications.

Unfortunately, Yolanda has left the Philippines’s power grid badly damaged and out of action. The National Grid Corp. of the Philippines has reported some 566 transmission towers and

poles leaning or toppled, and seven substations hit by the supertyphoon, leaving the people of Eastern Samar, Bohol and Cebu with limited or no power for months.

This is far from an energy-resilient infrastructure we have in mind, which is to be able to withstand man-made and natural disasters and immediately return to normalcy.

On the average, about 19 typhoons hit the Philippines every year, which

also consequently bring about flash floods, storm surges and landslides.

The country, which lies within the Pacific Ring of Fire, is also prone to earthquakes.

With the Philippines being one of the most vulnerable countries to disasters, the Department of Energy (DOE) pushes for “Energy Resiliency for Sustainable Growth” for the National Energy Consciousness Month (NECM) this December.

“Calamities do not only impede continuous flow of energy, but have a larger impact to economic growth and stability,” Energy Sec. Zenaida Y. Monsada said.

For 2015, the government, through the DOE, is aggressively pursuing the thrust to ensure energy-resilient systems not only in the Philippines, but also among neighboring and trading nations around the world; and in international conventions, such as the Asean Ministers’ Energy Meeting in Malaysia, Singapore Energy Week and the 21st Conference of the Parties in Paris.

The DOE also led the hosting of the Asia-Pacific Economic Cooperation

(Apec) 12th Energy Ministers’ Meeting (EMM12), which was held from October 12 to 14 in Cebu City, in which membereconomies committed to build energyresilient communities to sustain growth.

In line with the NECM’s theme, the DOE hosted a series of activities for December, among them, Safety and Health Association of the Philippine Energy Sector (SHAPES) sharing of Best Practices and Awarding Ceremonies 2015; Don Emilio Abello Energy Efficiency Awards; Oil and Gas Security Exercise; DOE-Gender and Development Energy Toolkit launch; Philippine Electricity Summit 2015, leading to the Presentation of Fuel Economy Run Results on December 17.

DOE field offices also held different activities in various provinces, such as Calibration Training for LGUs in Bohol; Energy 101 for Engineering Students in Bacolod; IECs on Energy Conservation and Forum on Renewable Energy in Negros Occidental, culminating to IECs on Students Exposure for Comprehensive on Renewable Energy Technologies and Downstream Oil Industry Energy Conservation in

Davao City on December 21.

The NECM, an annual monthlong celebration in accordance with Proclamation 1427, is spearheaded by the DOE. This event aims to increase public awareness on energy-related campaigns, activities and programs, strengthening the government’s policy on energy efficiency.

Apec forms task force on energy resiliency

DURING the Apec-EMM12 in Cebu City, the Philippines and the Unied States cochaired a task force that the Apec Energy Working Group has created on energy resilience.

The task force is set to work on disaster-proofing energy infrastructure; advancing cutting-edge energy-efficiency technologies; promoting community-based clean-energy use in poverty-stricken areas; and improving energy trade and investment in Apec.

“This task force will eventually become a working group,” said Monsada, who is the chairman of the Apec Energy Ministerial Meeting this year.

The creation of the task force is

contained in the Cebu Declaration and Instructions, a joint statement issued by the 21 Apec energy ministers. The document contains instructions to draw up action plans that will concretize the vision of having energy-resilient infrastructure.

To achieve this, the ministers adopted the following recommendations: conducting vulnerability assessment, including regional geo-hazard maps; exploring of best practices in enhancing the quality of electricpower infrastructure; undertaking research and development programs; and sharing information on energyinfrastructure technology advancements and technological innovations.

To advance energy-efficiency technologies, Monsada said, the ministers agreed to undertake a cost-benefit analysis of available energy-efficient technologies; develop minimum energy-performance standards; explore the potential adoption of fuel quality and vehicle-efficiency standards; and pursue the Apec goal of reducing energy intensity by 45 percent by 2035.

A BusinessMir

PHILIPPINE PO A6 Friday, December 18, 2015 | www.businessmirror.com.ph

APEC PORT SERVICES NETWORK MAKES ITS MAJOR STRIDES T

A

S an offshoot of the 22nd AsiaPacific Economic Cooperation (Apec) Economic Leaders’ Declaration held in Beijing, China, in November 2014, transport ministers in the Apec region once again met in Cebu City on October 9 to discuss domestic and regional plans and initiatives, as well as current challenges and needs.

The transport ministers obviously recognize the significant role of the transport sector in achieving Apec’s goal of free and open trade and investment in the Asia-Pacific region, while working on strengthening physical connectivity.

The meeting carried the theme “Driving Economic Growth through

Inclusive Mobility and Sustainable Transport System,” and sought to ensure that the Apec transportation sector reinforces the shared vision, which were articulated by economic leaders.

The Philippines was represented during the meeting by Transportation Secretary Joseph Emilio A. Abaya.

Just like any Apec initiatives, the efforts are meant to tangibly improve the lives of all the citizens of member-countries, while moving toward common goals built through trade and investment liberalization and facilitation, as well as economic and technical cooperation.

Apec Port Services Network

THE Apec Port Services Network (APSN) is a nonprofit organization established on May 18, 2008, in response to the directives of the 14th Apec Economic Leaders’ Meeting held in November 2006 in Hanoi, Vietnam.

The APSN was established to serve as a platform for communication and collaboration among ports and port-related industries through information sharing, capacity-building and technical cooperation. It also served as a unique channel in presenting the views of stakeholders in regional port industries.

The Philippines is ably represented in the APSN by outgoing Philippine Ports Authority (PPA) General Manager Juan C. Sta. Ana and other

officials of the port regulating body as council members, with Abaya as an advisory board member.

The establishment of the APSN was endorsed by the Apec Economic Leaders’ Meeting and the APSN constitution was adopted by the Apec Transportation Working Group (TPTWG). Thus, the APSN is responsible to the TPTWG to whom it reports on its work annually or more frequently, if required.

In fact, during the Eighth Transportation Ministerial Meeting (TMM8) held in Japan in 2013, the report of the Apec TPTWG focused on the major strides of the APSN. The work of the APSN are part of the overall forward-looking initiatives of Apec transport leaders that include the gathering of information and collating best practices as bases to advance the understanding and implementation of public-private partnerships (PPPs), particularly on sustainable transportation-infrastructure investment, financing and operations, the development of a quality transport vision, encompassing user-friendliness, ease of access, efficiency, environment friendliness, safety, resilience and the lowering of life-cycle cost as priorities, and the creation of an Apec Connectivity Map, visualizing the membercountries’ ideal of physical and institutional integration to be reached by the year 2020.

The TPTWG has henceforth set its sight on three major initiatives toward such end, including inclusive mobility; developing sustainable transport system; and encouraging Innovation in Transport Systems.

APSN latest meeting and workshop

WHEN the APSN was formed, it has outlined five major goals, including promoting the development of the Apec port industry; ensure safety, security, efficiency and environment social responsibility; encourage capacity-building and information-sharing; ensure that interests and views are truly presented to member-economies and networking for stronger port industry and better community.

About a month after the transport ministers meeting of the Apec in Cebu, the APSN Council had its eighth meeting and workshop, also held in the same city in the Visayas.

Held from November 10 to 13 at the Radisson Hotel in Cebu City, the four-day meet was officially called as “The 8th Meeting of the APSN Council and Workshop on Improving Port and Supply Chain Connectivity,” which obviously falls under the three major initiatives set out during the TMM8.

The meeting was opened by Tim Meisner, president of the APSN Council, while Sta. Ana, council member, also welcomed the participants to the Philippines.

Fei Weijun expressed the gratitude of the APSN members to the PPA and the Cebu Ports Authority (CPA) for the excellent and considerate arrangement for the meeting and workshop.

The APSN meeting had extensive discussions on the following issues: APSN Issue Scan; Update on APSN Five-Year Strategic Plan; Action Plan 2016; Amendments to Rules of Procedure; the Implementation Plan and update report for APSN Green Port Award System (GPAS); Update on Membership Dues Collection; APSN Budget for 2016; APSN Progress Report and Port Development Report 2014; as well as outcomes of the APSN Workshop.

The council thanked the Secretariat for the update on the Five-Year Strategic Plan and agreed that it helped to guide the APSN’s activities and key objectives. This also helps to build the APSN’s brand and future directions.

The council adopted the amendments to Rules of Procedure. The council recognized the importance of the participation of advisory board members, and encouraged them to continue active participation in APSN activities.

The council recognized the progress made in the last year on the implementation of GPAS, including the development of the Application and Evaluation Guidelines; the comparison with Green Marine and Eco Ports; the ongoing formation of an Expert Pool to evaluate GPAS applications; and the completion of the second pilot project. The council thanked the Secretariat for its efforts and it was noted that at the recently held Ninth Apec Transport Minister’s Meeting, the efforts of developing GPAS were applauded and encouraged for its launch in 2016.

The council adopted the implementation plan for membership

dues collection recognizing that it will be an evergreen document to be continuously improved and updated. The council also agreed that the membership benefits package is critical in demonstrating the value of the APSN. Council members were requested to promote APSN in their respective economies and to encourage their ports and related sectors to join APSN. The APSN council thanked the Secretariat for the progress report and expressed its appreciation to the Secretariat for its work over the past year. The council noted the development of the new web site as a positive step in the promotion of the APSN. The council agreed that all presentations made at the workshop will be available on the APSN web site for easy access. The council also agreed that the workshop report will be shared with all speakers and will be posted on the APSN’s web site for access by all members, as well as the general public, and will also be provided for information to the Apec TPTWG meeting and its maritime experts group.

Strides of the Apec transport ministers

BECAUSE of the major initiatives of the APSN, the Apec TPTWG has gained major headway on its three major overall initiatives as set out during the TMM8.

Inclusive mobility

RECOGNIZING that improving mobility increases people’s productivity, and results to the acceleration of economic growth, the Apec transport leaders started the initiative on creating an Inclusive Mobility Framework for the Apec region.

It is envisioned to pave the way for the development of projects, programs, activities and transport planning mechanisms to address the transport needs of all individuals, especially those of the most vulnerable members of society, including persons with disabilities, older people, women, children and students, and other such groups.

Developing sustainable transport systems

THIS particular initiative is further broken down in three components, including enhancing transportation

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TOWARD IMPROVING PORT AND SUPPLY CHAIN CONNECTIVITY safety and security; investing in resilient infrastructure; and promoting green technology in transportation.

The Apec transport ministers has mapped out the initiatives toward each component, to wit: n Enhancing Transportation Safety and Security. The enhancement of the safety and security of transportation networks in the Apec region must remain among the highest priorities of the transport leaders. Both are fundamental elements in a viable transportation system that is able to facilitate the effective movement of passengers and goods.

Thus, the Apec transport ministers shall continue to collaborate with the public and private sectors from all modes of transportation, as well as other Apec forums and international organizations—like the International Civil Aviation Organization and the International Maritime Organization—to address any gap or need in safety and security, and improve, through capacity building, membereconomies’ governance, compliance and services in these aspects, while also taking into consideration the energy efficiency and environmental sustainability of operations.

The adherence to recognized international safety and security measures for all modes of transport standards is a priority. These standards must be complementary and aligned to ensure safety and security objectives are pursued in the most efficient way, and without compromise on facilitation to movement of passengers and goods.

Economies are also encouraged to utilize the latest transportation-security technology and give a high priority to providing comprehensive training to transportation-security personnel. n Investing in Resilient Infrastructure. In support of relevant international agreements, the transport leaders have called on economies to promote the resilience of new and existing critical transportation infrastructure to ensure that they remain safe, effective and operational during and after disasters in order to provide lifesaving and essential services.

Meanwhile, the transport ministers have also commended the ongoing work, under the Supply Chain Resilience program promoting the Seven Principles of Supply Chain Resilience, to improve the viability of businesses and the physical and social infrastructure of the supply

chain for disaster situations. It has noted the benefits of the workshop held in Peru in May on “Using Hazard and Risk Mapping to Improve Supply Chain Resilience,” and the knowledge transfer it facilitated to numerous Apec economies. The leaders have committed to continue to support the multiyear, United States-led program, where all Apec economies will focus on one of the seven principles each year. n Promoting Green Technology in Transportation. The leaders note that the transportation sector is one of the largest emitters of greenhouse gases. As such, they have committed to support global efforts to address climate change.

They have also applauded the ongoing efforts by the Apec Port Services Network to promote green growth in the Apec port industry, including the creation of the Green Port Award System. They encourage all economies to participate in this program, as it serves as an important platform for best-practices sharing, the promotion of efficiency and sustainability, and the improvement of the overall competitiveness of the Apec port industry.

The working group further encourageeconomiestopromoteenergy-

efficient and environment-friendly modes of transportation.

Encouraging innovation in transportation systems

THE specific initiative is further broken down into six components, including Harmonizing Vehicle Standards; Studying Disruptive Technology and Evolving Regulations; Using Intelligent TransPort Systems to Improve Transportation Efficiency and Effectiveness; Promoting Connectivity; Capacity Building; Women in Transport, Cross-fora Collaboration. n Harmonizing Vehicle Standards.

The Apec transport leaders have been encouraging economies to participate, to the extent possible, in international discussions aiming at improving of the safety and environmental performance of vehicles, as well as greater economic integration through harmonized vehicle standards and technical requirements. n Studying Disruptive Technology and Evolving Regulations. They also acknowledge that today’s innovations and new technologies can enhance the capacity, sustainability and efficiency of transportation systems.

The leaders have instructed the TPTWG to encourage economies’ participation in existing fora, including standards development organizations; and to provide additional venues, as needed, for dialogue and collaboration among economies on the uses of these technologies in the transportation sector, as well as on the mechanisms to be put in place to address any subsequent challenges. n Using Intelligent Transport Systems (ITS) to Improve Transportation Efficiency and Effectiveness. The development of ITS is essential to the improvement of the transportation system in the Apec region. In this light, the transport leaders have encouraged economies to implement ITS to enhance the efficiency and effectiveness of transport infrastructure, especially recognizing the significant safety and environmental benefits which may be realized simultaneously.

They have also encouraged economies to cooperate with the relevant authorities or organizations to ensure data protection and system integration and integrity. In addition, security measures need to be put in place and actively maintained to support the use of big data in ITS applications.

n Promoting Connectivity. The transport leaders also reiterate their commitment to implement the Apec Connectivity Blueprint (20152025), and achieve the overarching goal of strengthening physical, institutional and people-to-people connectivity—by taking agreed actions and meeting agreed targets by 2025.

The objectives are to achieve a seamless and comprehensively connected and integrated Asia Pacific, as well as develop, maintain and renew quality infrastructure under physical connectivity—of which cross-sectoral aspects include quality of infrastructure, good practices and principles, and people-centered investment—to improve transportation systems to ease the flow of goods, people, services and investments in the Apec region. They have instructed the TPTWG to continue to enhance its work on connectivity of transportation networks.

They have welcomed the progress made by economies in developing and liberalizing intra-Apec aviation markets according to their respective situations and requirements, and recommend that they continue their work based on the spirit of Apec cooperation.

S “A P,”... A

A BusinessMirror Special Feature

PHILIPPINE PORTS AUTHORITY Year-end Reports

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PPA general manager to move forward after accomplishing goals in the port authority

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ORE than five years after moving back to the Philippine Ports Authority (PPA) to take on the unenviable position of general manager, Juan C. Sta. Ana is quitting his post effective end of December 2015.

Port industry stakeholders believe that Sta. Ana has accomplished much of the PPA’s goals that he set out when he assumed the position following the appointment of President Aquino back in 2010.

Sta. Ana handed his resignation to the President through the Transportation Secretary Joseph Emilio A. Abaya on December 4.

In his letter of resignation to the President, Sta. Ana stated that “it is with heavy heart that he has decided to return to the private sector.”

It has been disclosed that Sta. Ana has been contemplating of resigning from his post to rejoin the private sector a few months ago.

Sta. Ana held on to the post to finish the PPA pending organization plan and placement of employees, as well as wound up his international

commitments. Sta. Ana was elected chairman of Asean Ports Authorities Association for two years and he completed his term on November 3 in a turnover ceremony held in Brunei, handing the chairmanship over to Malaysia. The PPA’s international commitment of hosting the Apec Ports Services Network (APSN), where he serve as council member, was successfully completed on November 13 in Cebu City.

In the last five years, Sta. Ana focused on good governance issues, among others, simplication of business processess in ports to make it easy for the public to transact business and transparency in corporate governance. He also pushed for port modernization in various gateway projects, port efficiency and productivity in the handling of cargoes and connectivity.

PHILIPPINE Ports Authority (PPA) General Manager Juan C. Sta. Ana discusses to PPA officials and employees

Under his watch, the Governance Commission for Government Owned or Controlled Corporation (GCG) elevated PPA status to First Class government corporation (Classification A) based on the Commission on Audit (COA)-Audited Financial Statements for 2012, 2013 and 2014. Based on 2014 COA Report on PPA’s Financial

Statements, its assets are valued at P114.53 billion and its audited revenues for the years 2012, 2013 and 2014 enormously increased to P10.4 billion, P11.7 billion and P13.2 billion, respectively, noting very significant and commendable increases in the last five years.

In addition to being PPA CEO, he

is vice chairman of the PPA Board of Directors and chairman of the PPA Executive Board.

“With all these commitments almost done, I think I could already go and return to the private life.” Sta. Ana said.

Before joining PPA in 2010, Sta. Ana was senior vice president of FF Cruz & Co. Inc., one of the largest

construction companies in the country, and played a key role in several subsidiaries of that company.

The appointment of Sta. Ana, made on 13 July 2010, was one of the earliest made by President Aquino, who assumed his Presidency on July 1, 2010. Sta. Ana was PPA general manager for five years and five months.

PPA EXPECTS TO WIND UP 2015 WITH HIGHER NET INCOME

I

F the net income of the Philippine Ports Authority (PPA) during the first four months of 2015 is to be the basis of an upward trend, it is likely that the port authority will wind up the year with higher net income compared to last year.

At the start of the second half of 2015, the PPA posted a significant hike in its net income for the first four months of the year, due mainly to the hike in cargo traffic in majority of its controlled ports.

The data from the PPA showed that net income increased by 22.41 percent to P2.54 billion, from P2.08 billion posted in the same period last year. Against the target of P1.36 billion, the actual figure is also higher by 86.47 percent.

Gross revenues, on the other hand, posted a 20-percent hike to P4.45 billion for the period, against last year’s figure of P3.70, wherein port revenues contributed P4.42 billion and the Fund Management Income (FMI) chipped in P29.80 million.

The port revenue registered was also higher by 20.36 percent, compared to last year’s P3.67 billion, while the FMI soared by at least

16.73 percent, from P25.53 billion posted in the same period last year.

“Such increase was primarily attributable to the surge in cargo traffic at the ports,” outgoing PPA General Manager Juan C. Sta. Ana said.

“The favorable FMI, meanwhile, was due to the increased volume of funds placed under special and high yield deposits with Land Bank and the Veteran’s Bank,” Sta. Ana added.

Total expenses incurred by the authority during the period amounted to P1.90 billion, up by P286 million or 17.66 percent, against the previous year’s P1.61 billion. However, it is lower than the target by P409 million or 17.67 percent. In the same way, operating expenses went up by P369.11 million, which is equal to 24.39 percent from P1.51 billion expended in 2014, because of PPA’s continued repair and maintenance projects

Apec Port...  A

practices for expanding their educational, recruitment, retention and leadership opportunities.

n Capacity Building. The Apec transport ministers also recognize that the success of a safe, secure, effective and seamless transport system in the Apec region will depend largely on the competence of human resources. As such, they have encourage economies to put more effort into collaborating on developing joint personnel training in smart and green-supply chain connectivity.

They also stressed that there is a continued need to provide effective economic and technical cooperation for the further development of the transportation sector, achieving our goal of bridging development gaps. n Women in Transportation. The Apec transport ministers commended the WiT Task Force for its efforts toward the facilitation of the exchange of information among economies on initiatives, outreach and measures to increase the role of women in transportation and share best

n Cross-fora Collaboration. The transport ministers have reiterated the need to strengthen engagement and collaborative efforts with other fora within and beyond Apec in working toward the achievement of the TPTWG’s objectives.

They have encouraged more collaboration with the Tourism Working Group on passenger transport. We acknowledge the progress made on the Travel Facilitation Initiative (TFI) and welcome the midterm review and its recommendations. They have instructed the TPTWG to redouble efforts to achieve the goals of making travel easier, faster and more secure throughout the Asia-Pacific region.

Moving forward

IN addition to the directives and recommendations they have set out, the Apec transport leaders have directed the TPTWG to continue its

in addition to the recognition of amortization of intangible asset, i.e., computer software.

Nonoperating expenses (e.g., gain/loss on foreign exchange, other losses, etc.) fell by P83.10 million or 78.11 percent, compared to last year.

The drop in expenses was principally due to the decline in guarantee fees and interest expense on domestic loan, or the P1-billion Philippine Veterans Bank Term Loan.

Meanwhile, the PPA remained in the “billionaires” club for dividends for the fiscal year 2014, when it remitted about P1.817 billion to the national coffers.

The PPA ranked fifth in the club behind the Bases Conversion and Development Authority; the Development Bank of the Philippines; the Food Terminal Inc.; and the Philippine Deposit Insurance Corp.

The amount remitted for 2014 is also higher by 80 percent compared to the dividend the state-owned agency remitted in 2013 amounting to P1.009 billion.

“The PPA continues to make necessary adjustments not only to bring in more revenues to the government, also to make our ports more responsive to the prevailing economic conditions particularly in safety, safety and convenience of cargo and passengers passing through our ports,” Sta. Ana added. efforts with respect to the implementation of directives and recommendations set out during the TMM8 and previous ministerial meetings.

They have, likewise, agreed to meet again in 2017 to work toward the further advancement of the transportation sector in the Apec region.

The Apec transport leaders noted that the TPTWG has proved an effective tool for enhancing cooperation amongst transportation ministries since its inception in 1991, almost 25 years ago. With the TPTWG continuing efficacy in mind, they have directed the working group to conduct a review of its own internal structure to ensure that its current composition of expert groups subexpert groups and task forces, as well as its interactions with other Apec fora, are appropriate to meeting the transportation needs of Apec member economies for the next quarter century. The Lead Shepherd will provide recommendations to ministers at the next Apec Transportation Ministerial Meeting.

A9 Friday, December 18, 2015 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Why the Philippines wins

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his is not about the winning exploits of Nonito “The Filipino Flash” Donaire Jr. or Filipina beauty queen Angelica Ong as Miss Earth. It is not even about our Filipino singing and talent stars around the world or the student team that took home gold in the China International Mathematics Competition.

It is about the Philippines having learned the lessons of the 1997 Asian financial crisis and the public and private sectors positioning themselves against a recurrence. It is also about taking advantage of opportunities and not wasting them.

The 1997 Asian crisis was about the wrong kind of debt creating a currency crisis that then became a debt crisis. Governments in South Korea and Thailand borrowed in US dollars—and encouraged corporations to do the same—to take on debt at a much lower interest rate than what was available in the domestic market. The problem was that revenues, both government and private sector, were in the local currency. But the debt payments had to be made in dollars.

The demand for dollars then forced a devaluation of the Thai baht and South Korean won. That, in turn, created a vicious cycle as the dollar-debt repayments became even high in local currency terms. The currencies, the corporations and the economies collapsed.

The Philippines was relatively unscathed as, being the “basket-case” of Asia, no one wanted to loan dollars to the Philippines at any reasonable interest rate. Thailand and South Korea had dollar-denominated debt five to eight times higher than the Philippines. But that was acceptable because they were “Tiger Cubs” and the Philippines was a “Dead Duck.”

In 2015 the dollar-debt/currency problem is coming back. Indonesia, Thailand and Malaysia have increased their exposure to dollar debt. A recent Bloomberg news article incorrectly included the Philippines in their assessment that this debt is up. It is not the Philippines, but the others that have the problem. For example, the total amount of Philippine government and corporate-foreign debt has actually decreased in 2015 by 3 percent.

Some Philippine companies, such as Petron Corp., are flashing warning signals as to the increase in foreign-currency borrowings. But with the vast majority of corporations and the Philippine government borrowings relatively small in foreign currency, there is no problem. In fact, comparing Indonesia, Malaysia, Thailand and the Philippines, the country has the lowest risk of debt problems as measured by the cost of insuring against default through Credit Default Swaps.

The key at this point is the currency-exchange rate. The peso has fallen by about 6 percent against the dollar in 2015. However, Indonesia’s currency is down 19 percent and the Malaysian ringgit has lost 12 percent.

The baht is nearly 9 percent lower.

The Philippine government and our local corporations learned fiscal responsibility from the 1997 Asian crisis, and the benefits of that knowledge are showing up today.

‘Sona libre’ James Jimenez

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spox

ear politicians, I am fully aware that this regulatory limbo that we’re in right now—where everyone knows you’re running for office, but there’s really nothing anyone can do to regulate your acts—is something of a godsend for you.

It provides you with a sort of laboratory, in which to test narratives and strategies, to see which ones will fly best when the campaign season officially starts; it gives you the opportunity to promote yourselves, sometimes shamelessly (let’s not mince words), with overproduced infomercials or whatever it is you call those advertisements; and it allows you to take potshots at each other. Happy times, all around, courtesy of a law some of you—in one way or the other—helped pass, and which the Supreme Court once said it was your responsibility to fix. And which you haven’t.

Knowing that this is essentially a sona libre for you, however, does not make it any easier for me to accept that this time is for your benefit alone. In fact, because you can do pretty much anything now and still get away with it, now is precisely the time for you to show your mettle. “Nearly all men can

stand adversity,” Abraham Lincoln might’ve once said, “but if you want to test a man’s character, give him power.”

Well, you have power now. The power that comes with having people rooting for you, the power that comes with being well-funded, the power that comes from ordinary folks being afraid to call you out, lest they incur the ire of your minions or be accused of partisanship.

And what do you do with that power?

From where I stand, knee deep in flood water, stuck in traffic on a major thoroughfare, with a mobile phone that keeps dropping calls even in the middle of the business district, I see that you—either directly or through your surrogates—seem content to paint us glowing pictures of how perfect the country will be once you’ve been elected.

On the sidewalks, the growing number of homeless huddle under cardboard

blankets at night, and yet hundreds of thousand are being spent on television ads that, nightly, let you into our homes.

I suppose we should be flattered at the attention, but might not those homeless need that attention more?

And in the papers, violent crimes are being reported alongside stories of you pointing out each other’s shortcomings. Normally, I’d say that was part of the campaign process, except that I cannot help but wonder whether it would be more helpful to simply dwell on the solutions you’re proposing— assuming, of course, that you do have proposed solutions. I truly believe that you—arguably among the best of us— can do more than this.

Not that I’m saying you’ve got a monopoly on the blame. We, voters, can be really lousy at this whole “higher standards” thing, and politicians, if nothing else, are naturally responsive to public sentiment. Sometimes, in fact, I wonder whether politicians who brag about having done things aren’t just playing to the crowd. Sometimes it works, and sometimes, they fall embarrassingly flat on their faces.

In any case, the point remains the same. A lot of the bad behavior we see from your ranks can probably be attributed to the need to keep potential voters entertained. Some of us love watching you folks sing, so you do; some of us get ridiculously titillated at pissing contests between “our” candidate and “their” candidate, so both of them aim

for the sky; and too many of us still think selling our votes is a good idea and so out comes the cash. The problem is that the success of pandering politician only proves the effectiveness of the strategy. It’s a vicious cycle.

So dear politicians—sona libre or not—I sincerely hope breaking that cycle is high up on your to-do list. It’s all well and good to promise tax cuts and better roads, but until we, Filipinos, are able to vote people into office who weren’t just buoyed up by fame, fortune, or foolishness it’s really difficult to see how whatever good you’re able to accomplish will be sustainable in any meaningful way.

Government was never meant to be run by superstars and rockstars, but by hardworking women and men who put the country’s best interests first, no matter how anonymous their efforts might be. Elected office isn’t supposed to be a reward for entertaining people, but a choice made in earnest and for the right reasons. And, most important, public service—which should be the end-all and be-all of any candidacy— does not mean only keeping your present set of constituents happy, but also strengthening the foundations of our nation, no matter how unpopular you become, to secure the future.

I am a voter. Thank you for listening.

James Arthur B. Jimenez is director of the Commission on Elections’s Education and Information Department.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Deconstructing the Q3 2015 GDP results Riz L. Jao

EAGLE WATCH

T

hree weeks ago, the Philippine Statistics Authority (PSA) announced that the Philippine economy grew by 6.04 percent in third quarter, bringing our nine-month year-to-date growth rate to 5.60 percent. This was a bit above most economists’ forecasts—including our own of 5.80 percent.

A large part of the discrepancy between what was observed and what we projected can be traced to the dramatic acceleration of government spending during the three months ending September. So let’s take a closer look at the numbers to see which sectors turned in surprising performances, both to the upside and to the downside.

On the expenditure-front, Consumption continued its dominant showing, contributing 4.31 percent (up 11.44 percent from its twoyear trend) of the total 6.04-percent growth recorded in the third quarter. Investments, on the other hand, reversed its strong secondquarter performance by contributing only 2.01 percent (down 37.09 percent from its trend).

This can be traced back to a reversion to the mean recorded in Construction up 5.29 percent (as compared to second quarter’s +13.13 percent) which overpowered the otherwise large upswing achieved in Durable Equipment (up 12.13 percent) brought about by the gains in the sales of Road Vehicles (up 41.98 percent— no wonder traffic has been so bad these days), Aircon and Refrigeration Equipment (up 11.61 percent) and Other Electrical Machinery and Apparatus (up 57.43 percent).

Government spending, which has been quietly outperforming its trend since the fourth quarter of last year, was no doubt the star of the show, turning in a heroic performance by contributing 1.69 percent (up a sizzling 368.39 percent from its trend) of the aggregate 6.04 percent. All in all, the local scene has continued to be remarkably robust.

We see no reason for that trend to dissipate in the foreseeable future.

Setting our sights across our borders, it’s clear that front leaves a little to be desired. On the plus side, Exports had a solid showing, contributing 3.50 percent (up 52.58 percent from its trend) of the aggregate growth figure on the back of a strong resurgence in the Exports of Goods (up 5.37 percent as compared to the contraction recorded last quarter), which itself can be traced back to continued strong performances in Semiconductors (up 36.21 percent), Office Equipment (up 30.77 percent), Telecommunications (up 20.16 percent) and Consumer Electronics (up 84.42 percent).

This more than offset the continued bleeding we’re seeing in the Exports of Agricultural and Fishery Products like bananas (down 58.89 percent), coconut oil (down 26.96 percent), sugar (down 89.16 percent), shrimps (down 57.68 percent) and tuna (down 22.24 percent).

Overall, bright spots in the Exports sector—outside of those dealing in Electronic Components—remain few and far in between. Some examples include mangoes (up 97.82 percent), pineapples (up 38.95 percent) and ignition wiring sets (up 7.40 percent).

On the other hand, Imports accelerated at a faster than expected 12.67 percent, wiping a whopping 7.35 percent (up 135.41 percent from its trend) off the aggregate growth figure. This despite the slowing down we saw in the Imports of Services (up just 9.31 percent as compared to the double-digit increases

recorded since late last year). Therefore, the large increase in Imports comes from the Imports of Goods (up 14.38 percent) which itself can be traced back to large increases in Electronics (up 24.19 percent), Machinery and Mechanical Appliances (up 40.67 percent), Medical and Pharmaceutical Products (up 81.17 percent), Electrical Machinery (up 21.11 percent) and Base Metals (up 30.29 percent).

The uptick recorded in the Imports of Electronics can itself be linked to large increases in the Imports for Semiconductors (up 20.32 percent), Electronic Data Processing (up 19.61 percent) and Telecommunications (up 85.66 percent). Notice that these industries were also among the star performers in the Exports side.

No doubt the increase in Imports represents the purchase of the necessary raw materials needed to meet demand on that front. This highlights the importance of new investments to internalize further some of the production processes in that sector—especially in Semiconductors, which alone accounted for 4.65 percent of the 14.38-percent overall growth in Imports. Thankfully, there’s a lot to be excited on that front thanks to the efforts of the Department of Trade and Industry, Board of Investments and the Semiconductors and Electronics Industries in the Philippines.

Overall, Net Exports ended up deducting 3.85 percent (up 364.66 percent on the downside from its trend) off the aggregate growth figure. While larger than we originally anticipated, we continue to reiterate our viewpoint that the external environment remains unclear and that it would be best to look beyond sizable increases in Exports as the avenue to fuel our economic growth.

We mentioned at the beginning of this year that the Philippine growth story seems poised to continue further on the back of robust showings in Construction, Manufacturing and Consumption. We also noted that the uncertainty in the global economic environment continues to represent the largest risk in derailing us from our current path of high growth. The data of these last few quarters has supported our judgments. We, therefore, maintain our 2015 forecasted growth rate at 5.8 percent.

Stay tuned for our updated fourth quarter GDP forecast, as well as our economic outlook for what to expect in 2016 by joining us at the upcoming Eagle Watch Economic Briefing on January 20, 2016. Please don’t hesitate to reach out to us at 426-6001 (Ate Sai or Ate Rea) to find out more details. See you then!

Riz L. Jao is a lecturer of economics and a research associate for Eagle Watch at the Ateneo de Manila University.

Friday, December 18, 2015 A10

Ben Anderson bids farewell to his imagined communities Tito Genova Valiente

annotations

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enedict Anderson passed away on December 12, 2015.

It seemed appropriate that the death of this Irish-Englishman happened not in England nor in Ireland, but in Indonesia. In fact, true to his theorizing, the label of ethnicity does not really matter for this scholar who was called by Jeet Heer in New Republic as a “Man Without a Nation.”

Anderson was not a refugee or a fugitive, but someone who repudiated, to put it simplistically, the notion of locality as creating one’s identity.

In 1983 he came out with a book, Imagined Communities, a work that challenged centuries-old notion of nationalism, nation and national identity. In that book, Anderson explains why a nation is imagined because “even the smallest nation will never know their fellow-members, meet them, or even hear of them, yet in the minds of each lives the image of their communion.”

For Anderson, he considers a nation as a community because in a nation, there is “this fraternity that

makes it possible, over the past two centuries, for so many millions of people, not so much to kill, as willingly to die for such limited imaginings.”

For the young scholars of the mid- and late-1980s, Anderson’s idea of imagined communities was a big help in analyzing what was happening then. Globalization was blurring social and economic boundaries; migration was creating significant groups outside the countries of origin. Indochinese refugees, as they were called then, would leave their first country of asylum only to settle in foreign countries and, there, look for persons and individuals coming from their respective villages.

Filipino scholars in Japan had to contend with the massive migration that was labelled the “Japayuki” phenomenon. Women and young girls, as well as male laborers left their cities and small towns to form communities in different places in a country like Japan. There was a culture that they had to understand and work ethics to live by but there was also the desire of these Filipinos to converge during Sundays around the Catholic Mass. In the absence of a Mass said in Filipino language, the migrant Filipinos co-opted the English Masses.

National holidays that were ignored by these citizens when they were back in the Philippines became emotional gatherings. The Philippine embassy and consulates recognized the phenomena and transformed Independence Day celebrations into family days.

Kinship became doubly significant; memories were crucial in recalling and remembering folk songs and folk dances. The idea of authenticity was continually challenged as migrant groups presented themselves in colors and content that separated them from the rest of migrants and foreign communities. Cultural icons were invented and reimagined where those who thought of them were far from the said national luminaries.

Anderson has provided a handle for the young scholars to understand cultures uprooted. No more was culture tied to the land but rather floated and flew, became in transit.

By the late 1980s, Anderson was simply Ben Anderson to many Filipino academics. He was a familiar figure in conferences and academic meetings in the country. Out of Indonesia, Anderson problematized the works, particularly the two novels, of Jose Rizal. The stature of Rizal as national hero in a territory whose

Women Stepping UP

F

rom textile and animal skin, to embroidery and beadwork, the Great Women Lifestyle Collection is borne of rich culture and modern expression. A production that begins in the hands of women micro producers and weavers from various communities, cooperatives and indigenous groups from all over the Philippines, then synthesized in the workshops of designers, product developers, manufacturers and lifestyle entrepreneurs.

On November 9, Tesoro’s Handicrafts revealed the Great Women Brand in their flagship store on A. Arnaiz Avenue in Makati City, celebrating yet another milestone on its 70th year in retail, as well as affirming its advocacy to provide women equal opportunity.

T he Great Women Lifest yle

Collection acquaints us to a class of responsible luxury. n Statement cuffs by jewelry designer Wynn Wynn Ong, featuring semiprecious stones—such as carnelian and clear and smoky quartz—held together by a Bagobo kinatkat band, textile woven in Bansalan, Southern Mindanao.

E-mail: titovaliente@yahoo.com

Fed’s smooth liftoff doesn’t signal mission accomplished

By Mohamed A. El-Erian Bloomberg View

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he Federal Reserve (the Fed) deserves praise for managing once again to carry out a tricky transition without causing disruptions in financial markets and creating too much risk for the real economy.

Sustaining this success will require more than just the central bank’s continued responsive policy-making. Much will depend on fiscal policy and structural reforms in the US, as well as the ability of financial markets to reconcile the divergence between Fed policy and the actions of other systemically important central banks (particularly the European Central Bank, the Bank of Japan and the People’s Bank of China).

In August 2010 the Fed pivoted from policies aimed at normalizing financial markets to actions that would allow it to deliver broad macroeconomic outcomes.

When that shift began, I doubt that many Fed officials expected to be dragged so deep into experimental policy measures,

or for these initiatives to last as long as they did. As the extent of the bank’s involvement in unconventional policies became evident, there were mounting concerns about whether it would be able to exit them without causing immediate market distress. These concerns were amplified by two factors.

The Fed continued to be the “only game in town.” It received little support from other policy-making entities as political polarization in Congress paralyzed both fiscal policy and structural reforms.

This required the Fed to continue to carry an enormous policy burden even though it didn’t have the tools that were best suited to the task.

Markets responded with what has been dubbed the “taper tantrum” in May to June 2013 after Fed Chairman Ben Bernanke signaled on May 22 that the bank would gradually reduce its support of the economy via its quantitativeeasing (QE) program involving largescale purchases of securities. For about six weeks after Bernanke mentioned the desire to taper, markets slipped into a

disorderly behavior pattern that erased trillions of dollars of value and challenged their efficient functioning. Thanks to yet more experimentation, comprehensive testing of policy tools, and lots of communication—some very effective, some less so—the Fed succeeded in first exiting from its QE program and on Wednesday was able to hike interest rates for the first time in almost 10 years.

As Fed Chairman Janet M. Yellen noted on Wednesday, this historic decision signaled the “end of an extraordinary seven-year period of near-zero Fed funds rate.” Importantly, this signal was packaged in dovish wrapping, including repeated emphasis that the increases would be gradual. In other words, the Fed indicated that this would be the “loosest tightening” in its modern history.

If the US economy were left to its own devices, the Fed would stand a good chance of completing its policy normalization process without undue financial and economic stress. But without the support of other policy-making entities, the central bank would have to act

The Great Women Brand and responsible luxury at Tesoro’s Camille R. Escudero

concept of a nation is terrifically contested and negotiated is the focus of the book that was written by Anderson much later. Published by the University of Hawa’ii Press and distributed by the Ateneo de Manila University Press, the book bears the title Counting What Counts: A Study of Forms of Consciousness and Problems of Language in Noli Me Tangere and El Filibusterismo. The book was launched at the Institute of Philippine Culture in the Ateneo de Manila.

This was, I believe, the last time I would see Anderson. I remember now what we were telling each other, that only well-funded researchers could do what Anderson did. He counted words that reflected and refracted the sense of the nation in the said two novels of Rizal. For all the debates about national heroes, it was very clear for Anderson and those who agreed with him that Rizal constructed our idea of a nation through his fiction. Readers of the Noli and the Fili responded to the many words that pointed to nation and love of nation, among many other terms and concepts, in the two works.

Anderson, in the book Counting What Counts, counted words like “nacion” and patria as they appeared in the stories of Noli and Fili.

If our social analysis matters now as we pay tribute to Anderson, then this is the right time to express our thanks to this man who assured us nations are not locked by lands and buffeted by season that nations can happen anywhere where people of similar memories converge. If our religion is the perspective by which we honor this great scholar, then Anderson must be satisfied where he is now, a land where one can imagine one’s community or where one can go on forever without a land tied to one’s person or soul.

n Color f u l , pl ay f u l ba ng les beaded by Subanen women from Zamboanga del Sur. n Functional home accents such as: Glass covers of traditional patadyong textile woven by the Miag-ao community of weavers from Iloilo, weighted by beaded animals by the T’boli community of Lake Sebu, Southern Mindanao.

Triangular tissue holders made from indigenous textiles by the indigenous communities from the southern Philippines.

Accent art pillow sets by artist Jeannie Javelosa, mixing the T’boli’s t’nalak textiles with her digitally printed 1989 lithograph entitled Nature Rising. n One-of-a-kind beaded evening clutch bags with beadwork by the Bagobo community. n Executive envelope clutch of fine cowhide leather and Bagobo kinatkat textile. n Reversible satin stole with traditional Marawi langkit weaving.

n Ivory-colored sleep or lounge wear trimmed with piña fabric.

Great Women also encourages consumers to proudly carry and wear your culture—for instance: n Casual canvas tote bag with leather accented by Bagobo kinatkat textile. n Carry your statement through the #hashtag envelope clutch accented

by Bagobo kinatkat textile. n T-shirt accented with patadyong textile woven in Miag-ao, Iloilo. n Blouses trimmed with yakan textile woven in Zamboanga del Sur and Basilan.

With artist Jeannie Javelosa leading the pack, other featured designers are Philippine-based Burmese jewelry designer Ong, bag maker Zarah Juan, and lingerie maker Camille R. Escudero.

These women breathe leading-edge styling into the traditional.

In an economic environment saturated by pop or commercial goods, Great Women leverages on the creative and

the artisanal, on the indigenous yet contemporary, on the natural and organic. By working with local communities, Great Women helps to revive the craft industry, and provide sustainable livelihood to artisans and their families. Behind each product is an aweinspiring story demonstrating that a purchase is more than just a business transaction—rather, one with a gender lens, supporting efforts to uplift the lives of women and girls. Impassioned by women empowering women, Tesoro CEO Maria Isabel “Beng” Tesoro wraps up the intimate gathering with “We wish for a world that gives opportunities to everyone for advancement, regardless of gender, so the engines of economic growth can churn better and faster and benefit more, especially those in the countryside who need help the most.” nnn The Great Women Brand stands for Gender Responsive Economic Actions for the Transformation of Women.

in a context of rather low growth and pressure on future growth potential.

It would also have to be on the lookout for risks to financial stability on the basis of market valuations that are not being validated quickly enough by improving fundamentals.

The Fed also finds itself operating in a fluid and unusual global environment, characterized by multispeed growth and unusual political uncertainty, and now subject to greater divergence of monetary policy among the most influential central banks. With political divisions preventing other types of policy adjustments from reconciling this divergence in a smooth fashion, the role falls primarily to financial markets that have a lot less inherent liquidity these days.

The rate decision constitutes an important further step in normalizing monetary policy after the trauma of the global financial crisis. But it is not an occasion for the Fed, or anyone else, to proclaim “mission accomplished.”

The path ahead remains tricky for the global economy.

It represents the product-development efforts of ECHOsi (Empowering Communities with Hope and Opportunities through Sustainable Initiatives) Foundation, and is the private sector’s retail support to the Philippine gender platform.

Formally launched in March 2013 at the Yuchengco Museum, it is an integrated and inclusive public-private partnership between the Canadian and Philippine governments to address gender issues in both micro and social enterprise development and to deliver a truly inclusive economic development. The goal is to help women up the supply and value chain. #WomenHelpingWomen Camille R. Escudero is president of Quality Philippine Export Lingerie & Apparel and founder of Lily of the Valley Period Panties, Active Wear, and Breast Care. She supports an export manufacturing company with 400 employees, 91 percent of whom are women.

She is also a member of Business and Professional Women-Makati Chapter.

Sports BusinessMirror

mirror_sports@yahoo.com.ph | sports@businessmirror.com.ph

Friday, December 18, 2015 A11

DE LA SALLE Elite in crucial match with Star OFFICIALLY B HIRES AYO

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By Joel Orellana

E LA SALLE officially welcomed on Wednesday Aldin Ayo as its head coach for the coming University Athletic Association of the Philippines (UAAP) men’s basketball tournament.

The school’s Office of Sports Development (OSD) released the statement on Ayo’s appointment, confirming weeks of speculation that the former Letran College coach is headed to Taft after leading the Knights to the National

LACKWATER fights for survival, while GlobalPort eyes a victory that will put the Batang Pier in a better spot in the quarterfinals in the Philippine Basketball Association (PBA) Philippine Cup on Friday at the Smart Araneta Coliseum.

The Elite (2-7) clash with the underachieving Star (3-7) in the opener at 4:15 p.m., while the Batang Pier (7-3) gun for their fifth straight victory against Talk ‘N Text (5-4) in the main game at 7 in the evening.

Three teams are battling for the last quarterfinal seat—Blackwater, Star and Mahindra (2-8)—and the Elite know they could not afford to lose against the Hotshots if they want to reach their first quarterfinals appearance in the league.

The wards of Head Coach Leo Isaac enter the crucial match with some confidence after beating Barako Bull, 116-92, behind the 38-point explosion of Carlo Lastimosa.

“We keep telling the players the importance of our remaining games. Our win [versus Energy] gives us the confidence and the morale of the players is high,” said Isaac, who is also eyeing his first back-to-back victories in the league.

“That’s why we really push them hard in practice because we still have a chance to move to the next round,” he added.

The Star, under rookie Coach Jason Webb, has been a

Johnny A. leads Cebu tilt

disappointment in the conference with only three wins to show despite a solid roster, led by two-time Most Valuable Player James Yap, top rookie Norbert Torres and the acquisition of forwards Jake Pascual and Ronald Pascual.

The Hotshots are coming off an 83-101 loss to the Energy and a win will secure them a spot in the next round. Joel Orellana

J

MERALCO’S Chris Newsome »(11) tries to shake off Rain or Shine’s Raymond Almazan during their game on Wednesday night at the Smart Araneta Coliseum. The Elasto Painters won, 9787. ALYSA SALEN

ELITE FIELD IN PHL OPEN W

DE LA SALLE confirms Aldin Ayo’s appointment.

Collegiate Athletic Association (NCAA) crown.

“Upon deliberation of a search committee and consultation with the administration and alumni, De La Salle University is pleased to announce that Aldin Ayo is the new head coach of the men’s basketball team,” the OSD statement said.

OSD Director Nonong Calanog told the BusinessMirror on Thursday that Ayo has already started coaching the Green Archers.

“Actually he already started [even before the announcement]. But because we are already on break for the holidays, we will just resume after the break,” Calanog said.

“He informally started working with the team last week but the team was incomplete because some are already on vacation. Formal practice as a complete unit will be in January,” Calanog added.

Ayo, who replaced Juno Sauler, served as one of the assistant coaches of playing-coach Manny Pacquiao at Kia (now Mahindra) in the Philippine Basketball Association (PBA) in 2014, but it was in Letran where he flourished as a bench tactician.

The Sorsogon native shocked the National Collegiate Athletic Association tournament after beating title favorite San Beda College in the finals.

“Through his guidance and leadership, the Letran Knights captured the men’s basketball title in the current season of the NCAA,” the statement added. “The university welcomes Coach Aldin to the Lasallian community as he charts the new direction of the Green Archers.”

La Salle President Bro. Raymundo Suplido, FSC, and basketball patron Eduardo “Danding” Cojuangco welcomed Ayo and his coaching staff on Wednesday.

Siot Tanquingcen was the only holdover from the previous coaching staff. Ayo brought in his trusted assistant Louie Gonzales. Also in his satff are Glenn Capacio, Austin Erestain and Paolo Sauler.

ITH the skies cleared after days of heavy downpour, the 98th Philippine Open finally gets going on Friday with the elite field all raring to put on a strong start for the momentum needed in a top-level event reduced to 54 holes.

A shootout looms right in the first round with defending champion Marcus Both drawing local ace and former Asian Tour No. 1 Juvic

U

Pagunsan and Thai ace Thaworn Wiratchant in the featured 7 a.m. flight on No. 10 of the tight Luisita Golf and Country Club here.

Both, a three-time Asian Tour winner, needs to fire on all cylinders against a talent-laden field, which includes talented Miguel Tabuena of the Philippines, Paul Peterson of the US, who is the highest ranked player this week, and multiple winner Gaganjeet Bhullar of India.

The $300,000 Asian Tour event, sponsored

by International Container Terminal Services

Makati softbelles extend win streak

NBEATEN Makati continued to dominate the field, posting another shutout 12-0 win, this time over Marikina, while Manila subdued undermanned Woodrose School, 11-5, at the resumption of the 2015 National Inter-Secondary Girls Softball Championships in Marikina City on Thursday.

Not even the one-day postponement due to inclement weather could slow down the Makati lasses, who flashed fierce form just the same to dispose of the hosts at the Barangka Baseball Field and stretch their win run to seven in Bracket A. Already assured of a semis spot, Makati shoots for a sweep against defending champion San Mateo in the final day of elims today.

Over at the Santo Niño field, Manila leaned on a late charge to defuse Woodrose and hike its record to 7-1 in Bracket B to nail the second semis seat in the weeklong tournament sanctioned by the Amateur Softball Association of the Philippines and sponsored by Cebuana Lhuillier headed by sports patron Jean Henri Lhuillier.

With Trisha Mae Tiozon coming through with a three-run home run, the Big City girls took a 3-1 lead in the early going but Woodrose struck back with a three-run binge

in the fourth frame to wrest the lead.

But Ma. Celyn Ojare and Denden Corbillon stepped up in the sixth inning as Manila exploded with seven runs against Alisha Vergara and Lucia Lorenzo, while holding Woodrose, who missed the service of top hurler Kevyn Lacson, to just a run en route to posting the victory and dealing Woodrose its first loss in six games.

“We are entering the crucial phase of the tournament and I’m glad to see our local teams doing well. We can see a lot of potential talents here and we’ll do our best in Asaphil to hone them,” Lhuillier said.

The tournament, aimed at discovering and developing talents who could be trained for future national pool, stakes P25,000 to the champion with the second and third placers receiving P15,000 and P10,000, respectively.

Over in Baguio, University of MindanaoDavao’s Irene Lumanas beat University of the Philippines’s Cochise Diolata in a pitching duel to power her team to a 1-0 win for a 4-0 mark in the 2015 Inter Collegiate Championships.

In other results, Ateneo de Manila demolished Papua, Indonesia, 10-2, while the Polytechnic University of the Philippines beat Rizal Technological Institute, 4-1.

HOBE BIHON TOPS DELEAGUE HOOPS

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OBE Bihon-Cars Unlimited slipped past Far Eastern University-NRMF, 81-76, on Tuesday night to rule the Fifth DELeague Basketball Tournament of Champions at the Marikina Sports Center in Marikina City.

Hobe Bihon, however, had to teeter before snatching their third title in the last four years.

Former pro Roger Yap sank three crucial free throws inside the last 30 seconds to lift Hobe Bihon to victory.

The Tamaraws threatened, 76-78, on Leo Avenido’s three-pointer with 27 seconds remaining. But Yap was fouled in the next play and split his free throws, before again trooping

THE victorious members of the Hobe Bihon-Cars Unlimited pose with their trophy with Marikina Vice Mayor Jose Fabian Cadiz and city councilors.

to the line for two charities that virtually settled the issue for Hobe Bihon, which also won the titles in 2012 and 2013.

Rodrigue Ebondo led Hobe Bihon with 16 points and was named Most Valuable Player in the league, supported by Mayor Del de Guzman and sponsored by PSBank, Accel Sportswear, PCA-Marivalley, Fat Cousins, Angel’s Burger, Mckies Construction Equipment Sales and Rentals, Luyong Panciteria, Azucar Boulangerie and Patisserie, JAJ Quick Print Advertising, Mall Tile Experts Corp., Jay Marcelo Tires, Polar Glass and Aluminum Supply and Mr. and Mrs. Dot Escalona.

Joining Ebondo in the Mythical Five were Francis “Kiko” Adriano (Sta. Lucia Land Inc.), Leo Avenido (FEU-NRMF), Prince Eze (FEU-NRMF) and Bonbon Custodio (Hobe Bihon-Cars Unlimited).

Bright Akhuetie had 17 points and 11 rebounds for the Tamaraws, who were undefeated in the eliminations and semifinals and had a twice-to-beat advantage in the finals.

Hobe Bihon bagged the P200,000 champion’s purse, while FEU-NRMF took home P100,000.

Inc., was shortened to 54-holes, with the opening round delayed to Friday due to persistent rain. The Robert Trent Jones Sr.designed layout was closed in the last two days and most players will enter the first day without playing a practice round.

“I played nine holes on Monday and another nine on Tuesday. I’ve seen the course but how much it is going to change with all the rain, we will know tomorrow. Everyone will be going out there like a practice round!

Guys will figure out the course by the second round so you need to take advantage of the first day,” Both said.

The Australian dramatically won the Philippine Open last year after losing his Tour card. He is staring at a similar position again where he sits in 132nd position on the Order of Merit (OOM) and will need a victory to retain full playing rights on the 2016 Asian Tour season.

But he will be up against the smoothswinging Pagunsan, who hopes to finally nail the major crown missing in his vast trophy collection, and Wiratchant, a former two-time Asian Tour OOM winner, ensuring a spirited battle right in the opener of the event.

Meanwhile, the 21-year-old Tabuena,

who is battling a cold and high fever, will take advantage of his course knowledge after winning here on the local circuit in September with a winning total of 22-under under preferred lies, which will also be applied this week.

“Since it’s preferred lies and the greens are relatively soft due to recent rains, I think the leader will be around 65-66,” said Luisita’s Jeric Hechanova.

Tabuena tees off at No. 1 with Hung Chienyao of Chinese Taipei and Danthai Boonma of Thailand at 11:30 a.m. while the other local bet tipped to contend for the crown, Tony Lascuña joins Mardan Mamat of Singapore and Paul Peterson of the US at 11:40 a.m.

Cassius Casas, also a former Philippine Open winner, tees off 12 noon with Jonathan Moore of the US and Thammanoon Sriroj of Thailand.

The storied Philippine Open has celebrated many worthy champions in the past, including Australia’s Peter Thomson, Lu Liang-huan and Hsieh Min-nan of Chinese Taipei, Mamat and Filipino stars Frankie Miñoza, Angelo Que, Larry Montes, Celestino Tugot, Ben Arda and Luis “Golem” Silverio, who won as an amateur in 1966.

OHNNY ARCILLA gears up for a tough outing against an equally top-conditioned rivals as he guns for a sweep of the Palawan Pawnshop-Palawan Express Pera Padala Open crowns in the Dagitab Festival Open Tennis Championship firing off on Friday at the Naga City Tennis Club in Cebu.

Arcilla, the many-time Philippine Columbian Association Open champion, bested a talent-laden field to cop the Tuna Festival Open title in General Santos City in September then flashed the same form to capture the Pintaflores plum in San Carlos early last month.

“I’ve prepared hard for this since I want to win Palawan Pawnshop’s year-end tournament and complete a sweep,” Arcilla said. “But I expect the field to be doubly tougher, especially PJ [Tierro].”

Tierro, a veteran Davis Cupper like Arcilla, is the event’s top seed and is expected to meet the likes of either No. 3 Vicente Anasta, fifth-ranked Fritz Verdad or No. 7 Roel Capangpangan for a crack at the crown, while Arcilla, at No. 2, is tipped to get through No. 4 Ronard Joven, sixth-ranked Arvin Ruel or No. 8 John Mari Altiche for a shot at a third Open title in the event, sponsored

by Palawan Pawnshop and held as part of the Dagitab Festival celebrations.

“This is going to be another slam-bang battle with PJ, Anasta and Joven going all out to foil Arcilla’s bid for a sweep of the Open crowns,” said Palawan Pawnshop CEO and President Bobby Castro, also the man at the helm of the country’s longest-running, nationwide, yearlong age-group tennis circuit.

The winner will receive P40,000 with the second and third placers to get P20,000 and P10,000, respectively, according to Bobby Mangunay, PPS-PEPP organizer and sports program development director.

PWU under-25 titlist

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hiang Kai Shek College and Saint Paul-Pasig gave De la Salle-Zobel School a double heartbreak, while Philippine Women’s University (PWU) emerged champion in the 25-under class of the recent 28th Women’s Basketball League sponsored by Milo at the Xavier School Gym. PWU banked on Most Valuable Player Charlene Camba in trashing Polytechnic University of the Philippines, 48-40, for the 25-under crown.

Enderun Colleges, meanwhile, nipped University of Santo Tomas, 34-33, for third place.

Saint Paul-Pasig also edged DLS-Z, 33-31, to claim the 13-under championship of the tournament, organized by the multiawarded Basketball Efficiency and Scientific Training Center founded by former national coach Nic Jorge.

DLS-Z took another loss also to Chiang Kai Shek College, 39-49, in the 17-under competitive division final.

New Era High School demolished Saint Stephen’s High School, 37-16, to capture the 17-under developmental crown.

Sports BusinessMirror

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| Friday, December 18, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

DEFECTORS GIVE BACK H

By Andrea Rodriguez

AVANA—More than 100 Cuban boys wearing the uniforms of local baseball teams stood in rows, smiling nervously on Wednesday as they got tips and training from some of their major league idols—men who were born on the island and were once disdained by the Communist government for defecting to the United States.

Los Angeles Dodgers outfielder Yasiel Puig, St. Louis Cardinals catcher Brayan Pena and Chicago White Sox first baseman Jose Abreu were among those who ran 10- and 11-yearold Cuban players through a three-hour skills camp on the second day of a three-day mission meant to warm relations between Major League Baseball (MLB) and Cuba.

Joined by pitcher Pedro Luis Lazo and other Cuban baseball stars who have stayed on the island, the major league stars divided the youths into five groups and ran them through calisthenics and batting, pitching and catching drills. And they offered their advice.

“We’re going to give our best on this visit and we appreciate the opportunity we’ve been given,” said Yasiel Puig, who left Cuba illegally in 2012. “Everything else we leave to God and destiny.”

Eleven-year-old Yassel Veranes grinned widely as he waited for the clinic to begin. “It’s my dream to be here to see them,” said the boy, who was brought to Havana’s Latinoamericano Stadium by his father, Elio Veranes, who watched the proceedings with pride.

The official return on Tuesday of baseball defectors earning millions in the major leagues was a landmark in the new

THE Los Angeles Dodgers’ Yasiel Puig holds a young player as he poses for photos before giving a baseball clinic to children in Havana, Cuba, on Wednesday. AP

WNBA, players fire back at Arenas for ‘ignorant insults’

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EW YORK—The Women’s National Basketball Association (WNBA) and several angry players fired back at former NBA guard Gilbert Arenas, who suggested that they play in underwear to improve the popularity of the league.

Spokesman Mike Bass responded to the comments in a statement on Wednesday on

behalf of the NBA and the WNBA, saying, “Gilbert Arenas’s comments are repugnant, utterly disrespectful and flat-out wrong.

WNBA players are strong, talented and determined individuals who give it their all on the court and serve as inspiring role models to millions around the world.

“They should be celebrated for their

The Associated Press

accomplishments, not disparaged with ignorant insults.”

Arenas, a 33-year-old former three-time NBA All-Star who was suspended for most of the 2009-2010 season after violating league rules on handguns, said in an Instagram post that having players play in skimpy underwear would help the league.

His comments angered players, prompting Swin Cash, Ivory Latta, Elena Delle Donne and others to respond to Arenas via social media.

The WNBA, launched in 1996 following the Atlanta Olympics, is about to embark on its 20th season. AP

NBA RESULTS Indiana 107, Dallas 81 Orlando 113, Charlotte 98 Miami 104, Brooklyn 98 Detroit 119, Boston 116 New York 107, Minnesota 102 Chicago 98, Memphis 85 Oklahoma City 106, Portland 90 Atlanta 127, Philadelphia 106 San Antonio 114, Washington 95 New Orleans 104, Utah 94 Golden State 128, Phoenix 103 LA Clippers 103, Milwaukee 90

relationship between Cuba and the US, and a dramatic manifestation of Cuba’s shifting attitude toward the hundreds of players who have abandoned the country that trained them.

One year ago this week, Presidents Barack Obama and Raul Castro announced that their countries were restoring diplomatic ties, opening the door for better baseball relations between the countries.

Cuba and the US always have shared a love of baseball, despite deep political and ideological differences over the years.

From the Negro Leagues to the current crop of Cuban stars, the communist island and the US are linked by century-old baseball ties.

During their current trip, Major League Baseball Players Association executives planned to talk business with their Cuban counterparts, saying they were optimistic about sealing a deal by early next year for the Tampa Bay Rays to play two spring training games in Cuba. They also hope to make progress toward creating a legal route for Cuban players to make their way to the major leagues.

“There’s some hurdles to negotiate, there’s no question, and hopefully this trip of goodwill will make the conversations work better,” Major League Baseball chief baseball officer Joe Torre said.

When they weren’t getting tips or training, the boys asked their idols to sign baseball, or have their photograph taken together.

Pena, dressed in his St. Louis team jersey, said he was happy “to come back to see my family, to share with them.”

The player said he also enjoyed meeting with his young fans in Havana.

Another clinic was planned on Thursday in Matanzas, east of the capital.

Traditionally, Cuban state television has avoided airing games featuring defectors, but fans watch their idols’ performances on pirated recordings distributed on computer USB drives. Most sports experts agree that the future does not look bright without a solution to the problem of baseball talent fleeing the country. But fans who gathered to see the Cuban baseball stars said their return to the island filled them with optimism.

US teams played spring training games in Cuba before Castro’s revolution but none appeared here from March 1959 until the Baltimore Orioles faced Cuba’s national team in Havana in March 1999.

MLB has not returned since.

Under Castro, a passionate baseball fan who saw sports as an expression of national glory, defectors were banished from official memory, never mentioned on Cuban television even as they made headlines on US sports pages.

BACK ON TRACK

Golden State Warriors’ Shaun Livingston (right) drives against Phoenix Suns’ Devin Booker during the first half of their National Basketball Association game on Wednesday in Oakland, California. The Warriors won, 128-103. AP

Z

URICH—More than 1 billion people watched the 2014 World Cup final, according to International Football Federation (Fifa) figures published on Wednesday.

A total of 1.013 billion saw at least one minute of Germany’s 1-0 win over Argentina in extra time at Maracana Stadium in Rio de Janeiro, according to research by Fifa and Kantar Media.

Television audiences at home and people watching in public spaces are counted, but not online viewers and mobile-phone users.

Fifa reported a 7-percent rise in a TV rating that is often seen as the broadcasting industry’s most accurate.

The 2014 final had an “average in-home global audience” of 570.1 million. It was 530.9 million for the 2010 World Cup final.

Germany’s 7-1 rout of host Brazil in the semifinals got an in-home average audience

1 BILLION VIEWERS

of 390.2 million viewers.

The average in-home audience across each live match was 186.7 million, Fifa said.

In total, 57 of the 64 matches topped 100 million viewers.

Fifa claimed that 3.2 billion people watched at least one minute of a match. The total was the same in 2010 due mainly to the time zone.

“The Asian market observed a decline in audience reach due to the less favorable kick off times,” Fifa said.

Fifa reported record viewing figures in the United States.

The ESPN broadcast of the US team’s 2-2 draw with Portugal got an average audience of 18.2 million, and a 10.4 million average for Univision coverage of Mexico’s round of 16 loss to the Netherlands was the most-watched Spanish-language program ever.

More than 105 million American residents watched at least 20 minutes of a match, Fifa

claimed. Adidas casts doubt on World Cup deal if Fifa reforms fail .

The CEO of World Cup sponsor adidas, meanwhile, said it will reevaluate its Fifa deal if the scandal-hit governing body fails to change.

Herbert Hainer tells German business daily Handelsblatt “if Fifa manages to reform itself— and from my point of view they are on the right track—we will continue.”

If Fifa falls short, adidas “will consider what the alternatives are,” Hainer says.

Adidas is Fifa’s longest-standing sponsor. It signed up to provide the ball for the 1970 World Cup and renewed through 2030.

The German firm helped bring Sepp Blatter to Fifa in 1975.

Adidas’s support for Germany’s football federation is unaffected by bribery allegations about the 2006 World Cup hosting bid.

Hainer says: “The scandal cannot be compared with the scale of the one at Fifa.” AP