BusinessMirror August 24, 2015

BusinessMirror

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U.N. Media Award 2008

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A broader look at today’s business Saturday 2014 24, Vol. 10 No. 40Vol.

Monday,18, August 2015 10 No. 319

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Arab airlines crowding out Philippine carriers T

MANILA SEEKS $3.41-B ODAs FROM WORLD BANK, ADB

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INSIDE

OMPETING with Middle Eastern carriers that receive billions of dollars in government subsidies is a losing battle that may force Filipino airlines to abandon their flights to several Arab and European markets, the president of the Philippines’s flag carrier said on Sunday.

djokovic faces federer in finals; serena williams there, too

Sports BusinessMirror

C |

By Lorenz S. Marasigan

M, A , 

mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

STREAK AT STAKE

TIGER WOODS tosses grass clippings before teeing off on the second hole during the third round of the Wyndham Championship.

AP

B J K The Associated Press

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ASON, Ohio—Novak Djokovic had to rally against a lowly qualifier to get another shot at a title he’s never won. Next in his way: Roger Federer, who has more Cincinnati trophies than anyone else.

Djokovic got a little help in the tiebreaker and pulled away to a 4-6, 7-6 (5), 6-2, victory over Alexandr Dolgopolov on Saturday to reach the Western & Southern Open final.

He’ll face Federer, a six-time champion who has never lost a Cincinnati title match.

“There’s always a lot at stake, this one in particular,” Federer said.

The top-ranked Djokovic is 0-4 career in finals at Cincinnati, where he’s never even won a set. It’s the only one of the nine Association of Tennis Professionals (ATP) Masters to elude him.

A victory on Sunday would make him the first player to win all nine ATP Masters during his career.

“I gave myself another chance to fight for the trophy,” Djokovic said. “That was the goal and that was the wish coming here in Cincinnati. Obviously, last couple of years, it was always in the back of my mind, the potential history making and obviously, that motivates me even more.

“Having that in back of my mind helped me to go through matches like the one today.”

On the women’s side, defending champion Serena

years stand to be wiped out due to the unfair advantage that Middle Eastern carriers have.

Most, if not all, Arab carriers operating in and out of Manila fly to the Middle East, using airports in the United Arab Emirates (UAE) as jumpoff points to European destinations.

“Should the UAE airlines get the additional entitlements they seek during the coming Philippine-UAE air talks, this will undermine the Continued on A4

special report

DJOKOVIC FACES FEDERER IN FINALS; SERENA WILLIAMS THERE, TOO

SERBIA’S Novak Djokovic returns the ball to Alexandr Dolgopolov of Ukraine during their semifinals at the Western & Southern Open. Serena Williams (inset) after scoring a point against Elina Svitolina.

AP

Philippine Airlines (PAL) President Jaime J. Bautista said Gulf carriers—which are alleged to have received roughly $23 billion in state subsidies—will drive out competition if they manage to secure new entitlements in the forthcoming bilateral air talks between Middle Eastern countries and the Philippines.

He lamented that, without a level playing field, the gains that the flag carrier booked during the last two

Williams gave herself a chance to make it two Cincinnati titles in a row. She beat 14th-seeded Elina Svitolina, 6-4, 6-3.

Williams will face third-seeded Simona Halep, who beat Jelena Jankovic, 6-1, 6-2, in the other semifinal.

Halep’s win will move her ahead of Maria Sharapova, who withdrew from Cincinnati with a leg injury, into the No. 2 seed for the US Open.

“It definitely feels good to be back in the finals,” Williams said. “I was playing aggressive more today and it really helped me, and it can keep me going for the next few weeks.”

Federer won the marquee matchup of the semifinals, using his steady serve to beat Andy Murray, 6-4, 7-6 (6). The defending champion is trying for an unprecedented seventh title in Cincinnati.

It’s his first tournament since he beat Murray in straight sets at Wimbledon before losing to Djokovic in the finals. And he’s looking very fresh, especially with his serve.

He hasn’t been broken during his four matches, a total of 29 service games. He lost only 14 points off his serve, while beating Murray for the fifth time in a row.

“I’ve definitely been holding my serve very well,” Federer said. “If you seldom get broken or you don’t get broken in a match, it’s quite hard to lose at this point.”

Murray played a lot of long, draining matches during the last week. Mainly, he couldn’t keep up with Federer’s serve.

“Today it was a tough one,” Murray said. “I started

slowly the last couple of days. Almost got myself back in the match today, and I just didn’t return as well as I would have liked. That was the difference.”

For a while, it looked like Djokovic was going to come up short of his finals destination again. He needed a few mistakes by the 66th-ranked Ukranian to help him pull it out.

Dolgopolov took advantage of Djokovic’s sluggish start and won the first set in 31 minutes. It wasn’t the first time that Djokovic has fallen behind to him: Dolgopolov got up 7-6, 4-1, at Miami earlier this season before losing in three sets.

Djokovic took a medical timeout after the fifth

PHL’S SLOW BUT EXPENSIVE INTERNET SERVICE

game of the second set. A trainer checked his lower rib cage on his left side and his abdomen—Djokovic called it a “minor problem.” He went back out on court and took it to a tiebreaker.

Up 5-4 and serving, Dolgopolov dumped a pair of backhand shots into the net. Djokovic closed out the 67-minute set with a forehand winner.

“He just makes you play, and [he] plays more careful on the big points,” Dolgopolov said. “You have to beat him and go for the risk.

“Ifs, a lot of ifs. You make a decision and you have to roll on it.” Dolgopolov committed 20 unforced errors as the third set slipped away.

FOR A CHANGE, TIGER TO PLAY IN FINAL ROUND B J MC The Associated Press

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REENSBORO, North Carolina— Tiger Woods couldn’t have asked for much more at his first Wyndham Championship.

He’s playing with confidence. His scores show it. And now he’ll play a Sunday round that matters.

Woods shot a two-under 68 in the third round on Saturday, leaving him two strokes behind leader and longtime friend Jason Gore in a three-way tie for second. Gore had a career-best 62 to reach 15-under 195 at Sedgefield Country Club.

“I need to go out there tomorrow and make a run, and get myself up there and make some birdies,” Woods said. “There’s a bunch of guys...at 13 [under]. There’s a whole slew of guys at 12, 11, 10. Anybody can make a run and shoot the score Jason and Jonas [Blixt] did.”

Woods—whose streak of 28 holes without a bogey ended on the 18th when his 6-foot par putt lipped out—reeled off 10 straight pars before briefly moving within one stroke of Gore with a birdie on the par-3 16th.

“I felt very steady from the word ‘go,’” Woods said.

Blixt and Scott Brown joined Woods

at 13 under. Blixt shot a career-best 62, and Brown had a 66.

Former Wyndham winners Webb Simpson (64) and Brandt Snedeker (67) were three strokes back along with Paul Casey (66), Jim Herman (66) and Cameron Percy (67).

Woods was poised to make a run at his first win in more than two years— one that would earn him enough points to clinch a spot in the FedEx Cup playoffs opener next week in New Jersey.

Depending on the math, a solo secondplace finish also might be enough for Woods, who’s at No. 187.

“I think it’s awesome to see him playing well again, to see him playing like Tiger Woods,” Gore said, “because that’s what we all want to see.”

He also moved one step closer to his 80th Professional Golfers’ Association Tour victory—and first since the 2013 World Golf Championship (WGC)Bridgestone Invitational.

Playing the Wyndham for the first time in an effort to hone his game and earn a spot in The Barclays, Woods is attempting to win a tournament in his first try for the first time since 1999—when he won the WGC-Cadillac Championship in Spain.

For him, this day was about consis-

tently making pars—15 in all, including a remarkable save on the 10th with a 24-foot putt.

“The putter just felt really good. My pace, I felt like I could be aggressive,” Woods said. “I took a few runs at putts and ripped them past the hole, but I never felt like I was going to miss any of them. I took a rip at them. Some I made, some I didn’t.”

His only birdie on the back nine was an important one. He plopped his tee shot on 16 about 12 feet from the hole and rolled in the putt to move to 14 under before giving that stroke back on his final hole.

That bogey prevented a final Sunday pairing with Gore—who was instead paired with Blixt. Gore says he’s known Woods “since we’ve been 12 years old” as kids in California.

Gore started the round six strokes off the lead. He took over the top spot at 14 under with a birdie on the 15th, then closed with another on the 18th—hitting his second shot to 7 to set up his ninth birdie of the day.

At No. 166 on the points list, Gore put himself in position for his second career win on tour and his first since the 84 Lumber Classic in 2005. He has just 15 top-10 finishes in the past decade.

“Contrary to popular belief,” Gore

quipped, “I’m still a good golfer.”

His big round came in relative anonymity because once again, an overflow crowd followed Woods’s every move.

Woods began the day sharing the lead with rookie Tom Hoge at 11 under, but claimed sole possession for the first time with a birdie on the first hole.

Blixt joined him at 12 under moments later, then jumped ahead with a birdie on the 17th. Woods caught him by rolling in a 5-foot birdie putt on the fifth before Gore shot past them both.

Still, Blixt has given himself a shot to make the playoffs and earn his tour card for next year. He’s at No. 135 on the points list and No. 147 on the money list, and said he’d be “very pleased if I secured my job.”

“A win will take care of that,” he added. “Shoot another 62, I should have a good chance.”

Erik Compton, a two-time heart transplant recipient who shared the firstround lead, withdrew before his third round with an injured left ankle but says he’s hopeful of playing in The Barclays.

Had he pulled out a day earlier, the cut line would have moved to two under and 19 more players—including bubble players Michael Putnam (No. 134) and Tom Gillis (No. 138) would still be around this weekend.

Sports

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bombing the latest of many challenges for thailand’s military leaders Perspective BusinessMirror

E4 Monday, August 24, 2015

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JUNTA’S WOES

Bombing the latest of many challenges for Thailand’s military leaders

By Lorenz S. Marasigan TRAFFIC passes the Erawan Shrine, the site of Monday’s deadly bombing, at Rajprasong intersection in Bangkok, Thailand. The central Bangkok shrine reopened on Wednesday to the public.AP/KARLY DOMB SADOF

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B D D. G | The Associated Press

ANGKOK—When a military coup last year ended months of political turmoil and violence in Thailand, even some democracy advocates welcomed the junta’s promise to restore stability and return “happiness to the people.”

But 15 months later, a deadly bomb that ripped through a venerated shrine in downtown Bangkok highlights a critical question: Are the generals losing their grip on troubles blitzing them from all directions, in a land that once seemed endowed with a magic touch?

Prime Minister Prayuth Chan-ocha, the former army chief who engineered the May 2014 coup, has said he had to take over the government to end protests and political clashes that left about 30 people dead. With the junta cracking down on dissent, most of the country had been relatively peaceful until the August 17 bombing, which killed 20 people and injured scores of others.

Speculation about possible motives and culprits ranges from antigovernment radicals to Muslim extremists to a renegade military faction, underscoring the array of woes facing the country. Prayuth described the attack as “the worst incident that has ever happened in Thailand.”

The prime minister has said he will step aside for a new elected government as soon as possible, but when that will happen, and the true strength of that future government, has grown increasingly murky. Prayuth is spearheading the drafting of a constitution that would ensure that the military and traditional ruling elite retain sufficient political power beyond the general elections, which would be held a year from now at the earliest.

Some analysts say Prayuth is trying to turn the clock back to an era when a feudallike hierarchy dominated. They say that won’t work in an increasingly diverse, Internet-connected society, and that men in

uniform simply don’t have the know-how to resolve contemporary complexities.

Thailand’s economy has been flagging under the junta, with disappointing figures for both foreign investment and domestic consumption. Tourism—which accounts for 9 percent of the economy—has been relatively resilient, but Monday’s bombing has already driven some visitors away. Prayuth replaced the country’s economic leadership in a Cabinet shake-up on Thursday.

On a continent earlier populated by military strongmen, Thailand remains the last country in Asia overtly ruled by the military. Uniformed or ex-military men have led Thailand for 55 of the 83 years since absolute monarchy was overthrown in 1932, with coups occurring almost as frequently as the monsoons.

“I think the military is capable of fi xing problems in the short run, but superficially because the use of force and fear is a painkiller. But like with a painkiller, the real problem is not understood, let alone solved,” says Thongchai Winichakul, a Thai professor of Southeast Asian history at the University of Wisconsin.

Prayuth, however, stresses that Thailand needs a cooling-off period of reform and reconciliation before “Thai-democracy” can be instituted and political chaos avoided.

Sharp differences voiced daily over the future constitution reflect the deep rifts in society that gathered momentum as the country so rapidly modernized: between Bangkok and rural regions, the entrenched traditional elite and pro-democracy forces, the haves and have-nots.

The dividing lines have changed little

THAILAND’S Prime Minister Prayuth Chan-ocha, the former army chief who engineered the May 2014 coup, has said he had to take over the government to end protests and political clashes. AP

since 2010, when the military cracked down on “Red Shirt” protesters in central Bangkok, leaving about 90 people dead. The Red Shirts were key supporters of the elected government that the military ousted last year.

“National-level political conflict is the overarching challenge facing Thailand right now,” says Matthew Wheeler, Southeast Asia analyst for the think tank International Crisis Group.

But this is hardly the only tribulation in today’s Thailand, which despite periods of turbulence has historically enjoyed multiple advantages, from abundance of natural resources to absence of war on its soil since the 1790s.

Now, Muslim insurgents continue to fight for autonomy in the country’s southernmost provinces, where more than 5,000 people have died since 2004. Peace talks are producing no results. Last month, Thailand also sparked the ire of the Islamic world— along with condemnation by Washington and the United Nations—for forcibly repatriating more than 100 Muslim Uighur refugees to China, where it was feared some would face punishment for involvement in antigovernment activities.

US-based Human Rights Watch says Thailand’s human rights are in “free fall” with crackdowns on peaceful protests and

trials of civilians in military courts.

Prosecutions under a draconian law proscribing insults to the Thai monarchy have increased in recent years and continued under the junta. Since the coup, at least 51 people have been sentenced under the law, including some who had been declared mentally ill and a young woman imprisoned for 28 years for a posting on her Facebook page.

Once a poster child for press freedom in Asia, Thailand dropped four places to 134th out of 180 countries on the 2015 press freedom index compiled by Reporters Without Borders.

The US State Department last month retained Thailand’s lowest Tier 3 ranking in its annual Trafficking in Persons report, citing persistent forced labor and sex trafficking. The ranking could trigger bars on US foreign assistance and access to World Bank funds. An Associated Press investigation this year exposed slave labor aboard Thai fishing vessels.

Tourism has been a steady bright spot, seemingly immune from political violence, natural disasters and other crises as visitors come to the “Land of Smiles” for its numerous attractions, low prices and hospitable people.

But the bombing could damage the industry, since it is Thailand’s first major attack on an area popular with tourists.

Also hanging heavily over Thailand is the future of the 700-year-old monarchy.

King Bhumibol Adulyadej, regarded as a key stabilizing and much revered figure for decades, is 87 and ailing. Crown Prince Vajiralongkorn, the probable successor, does not possess his stature or popularity, and there are reportedly conflicts about how the transition should proceed.

“Thailand is coming to the end of an era, and there’s a lack of consensus on what will follow, what will work for Thailand,” Wheeler said.

Other challenges for the country include being “red-flagged” by the International Civil Aviation Organization over aviation safety standards, and an ongoing failure to reform its outdated education system and raise the level of English. A Swiss survey ranked Thailand 55th among 60 countries where English is not a mother tongue.

“No single Thai administration is capable of solving the country’s most chronic and deeply embedded problems. For the past 50 years, we have swept so many problems under the carpet. The chickens are now coming home to roost,” Songkran Grachangnetara, a businessman and analyst, wrote recently in the English-language Bangkok Post.

Critics of the junta doubt it will take up the sweeping reforms Thailand needs. Instead, the military is trying to tackle some of these problems by promoting “Thainess,” incorporating 12 core values that schoolchildren must recite daily, including respect for teachers, religion, nation and monarchy.

What persists, says Thongchai, the history professor, are politics of personal relations, loyalty to superiors and a “mentality suitable to a village” rather than modern society.

Charles F. Keyes, an American anthropologist who has studied Thai culture for half a century, says military leaders, in alliance with other conservative forces, seek a throwback to the “despotic paternalism” of the past.

“It is becoming clear that the vast majority of people in upcountry Thailand and the majority in Bangkok are not willing to be compelled to accept a hierarchical order such as existed through the 1950s,” he said, predicting that such opposition could “lead to more political turmoil in the kingdom of no-longer-smiling Thai.”

PERSPECTIVE

First of three parts

E4

I

NTERNET access is no longer just a privilege for the rich, thanks to the ongoing global digital revolution. In the Philippines, however, access to the Web remains to be at the lower end of the spectrum.

And considering pronouncements from the United Nations (UN), this is another basic human right that Filipinos are being deprived of.

For Frank La Rue, the special rapporteur on freedom of expression and opinion of the UN, the Internet is a human right. Access to the Web, La Rue argued, is not merely a privilege for the rich and the famous, but is now

considered a basic need, as the Internet is an avenue where people can enjoy their rights to freedom of expression and opinion.

It also gives people the access to a marketplace of information—a library of ideas and opinions, where people converge and exchange concepts and ideas encompassing basically anything under the sun.

Continued on A2

By Cai U. Ordinario

he Philippines is seeking a total $3.41 billion in submarket official development assistance (ODA) loans and grants from the World Bank and the Asian Development Bank (ADB).

Data from the World Bank indicate that Manila is seeking some $2.08 billion worth of loans and grants from the Washingtonbased lender.

Another $1.33 billion is sought from the ADB, the Manila-based multilateral development bank.

The anticipated ODA loans and grants from the World Bank cover nine projects. Of these, the largest are the Second Disaster Risk Management (DRM) Development Policy Loan (DPL) with a Catastrophe Deferred Drawdown Option (Cat-DDO) and the Philippine National Program Support for Social Protection Project.

The second DRM DPL with CATDDO Project would cost $500 million, which is to be funded entirely by the World Bank.

The new project is a follow-up on the first DPL with a CAT-DDO, also in the amount of $500 million. The CAT-DDO was fully drawn after Typhoon Sendong (international code name Washi) resulted in a presidential declaration of a state of calamity in the Philippines in December 2011.

“The proposed operation will provide the government with an emergency line of credit, increasing the government’s postdisaster financial-response capacity,” the World Bank said.

The National Program Support for Social Protection Project has a total project cost of $450 million.

The entire amount is proposed for World Bank funding.

The program aims to support social-protection projects of the Department of Social Welfare and Development (DSWD), particularly its so-called Conditional Cash-Transfer (CCT) program.

Project documents show support for the CCT Program will require $350 million. This will cover grants Continued on A4

PESO exchange rates n US 46.3060

n japan 0.3739 n UK 72.6124 n HK 5.9727 n CHINA 7.2404 n singapore 33.0073 n australia 33.9512 n EU 51.5201 n SAUDI arabia 12.3456 Source: BSP (20 August 2015)

BMReports BusinessMirror

A2 Monday, August 24, 2015

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Phl’s slow but expensive Internet service continued from A1

La Rue pointed out that the Internet, like any other medium, enables individuals to “seek, receive and impart information and ideas of all kinds instantaneously and inexpensively across national boarders.”

“Given that the Internet has become an indispensable tool for realizing a range of human rights, combating inequality and accelerating development and human progress, ensuring universal access to the Internet should be a priority for all states. Each state should, thus, develop a concrete and effective policy...to make the Internet widely available, accessible and affordable to all segments of population,” he said.

But access to the Web in the Philippines remains low. In 2013 a United Nations Broadband Commission report that was published last year showed that only 23 of every 100 Filipino homes have access to broadband Internet.

It ranked the Philippines as 106th out of 191 countries surveyed for overall Internet-user penetration at a rate of 37 percent. This should have increasedbynow,asPhilippineLongDistance Telephone Co. (PLDT) and Globe Telecom Inc. have launched in 2014 free Internet access to their subscribers.

Smart Communications Inc.’s mobile brands Smart, Sun and Talk ’N Text offered basic access to the Internet via mobile phones, while Globe Telecom Inc. offered free access to certain online applications such as Facebook and Viber.

“Access to the Internet has transitioned from a want to a need,” National Telecommunications Com-

mission (NTC) Director for Regulations Edgardo V. Cabarios said. “Thus the need for us to regulate it.”

Slow but expensive

While Internet penetration in the Philippines is expected to grow this year, the country’s average broadband speed versus the average price can be considered as being at the lower band of the service frequencies.

Again, the Philippines is an Asean laggard in this aspect.

Studies show that there is a significant disparity between the Philippines’s average speed and price, as compared to its neighbors.

For one, according to studies conducted by Ookla, an Internet metrics provider, the Philippines has the second-slowest average download speed among 22 countries in Asia.

As of May, the country’s average download speed reached 3.64 Mbps, ranking 176th out of 202 nations around the world. It is eight times slower than the global average broadband download speed of 23.3 Mbps.

Not surprisingly, Singapore, Hong Kong, Japan and South Korea topped the test in Asia. The Philippines has the slowest average broadband speed among the 10 Asean nations.

The Ookla report also showed that Filipinos pay more than their neighbors with an average user spend of $18.19 per Mbps versus the global average of $5.21 per Mbps.

In a separate report, cloud services provider Akamai Technologies said that, while the Philippines might have improved its connection by a percentage point, its overall ranking in Asia still remains at num-

ber 13 out of 15, or the third-worst connection in the region.

Filipinos, according to the firstquarter report of Akamai, enjoyed an average download speed of 2.8 Mbps during the period under review. Trailing behind are India and Indonesia with 2.3 Mpbs and 2.2 Mbps average speed, respectively.

Again, South Korea, Hong Kong, Japan and Singapore were the top 4, with their connection speeds touching the 70-Mbps to 98.5-Mbps range at peak.

‘Pathetic’

As the Philippines continues its losing streak in the broadbandspeed wars, lawmakers are moving to conduct a probe to help improve the “pathetic state” of the Internet in the country.

The upper chamber was not at all happy with the numbers above. Sen. Paolo Benigno A. Aquino IV initiated a Senate investigation on the slow, but expensive Internet-service offerings in the country last year.

This year Sen. Francis G. Escudero also called for another inquiry on the state of the Philippine broadband market, calling it “unacceptable” given that it has a direct impact to many industries, like the business -process outsourcing sector, which currently helps grow the Philippine economy.

“The current situation in the country is, sad to say, unacceptable. The state of Internet speed is pathetic, and unless we remedy this situation, our IT [information technology] sector is likely to suffer in the long term,” he said. He called on the NTC to start cracking the whip and

fix the system immediately.

“If they have to be mandated to allocate some of their earnings for improving Internet speed, mainly through investing in more equipment and hardware, then so be it,” Escudero said.

He added: “These telcos have been going to town in the past few years telling their shareholders that they have been earning billions of pesos. But they conveniently forget the millions of subscribers and users who put those billions in their coffers but who continue to suffer from poor service.”

As of end-June, PLDT and Globe have a combined net income of P27.4 billion. “The point is, something needs to be done and done very soon,” he said. “The problem is that government agencies that are supposed to monitor these telcos and help consumers don’t seem to feel the urgency of the situation.”

Just last week another Senate investigation was launched. Stakeholders gave updates as to the situation of the Internet market in the Philippines, and the updates were not at all too positive.

Teeth not sharp enough

But broadband is not a basic service, making it hard for the telecommunications commission to regulate the operations of Internet-service providers.

Cabarios admitted that the office’s power in regulating the Internet speed and price is limited, despite the glaring fact that it has been a need for most Filipinos.

“We really need to amend the ex-

isting laws to give the commission additional powers to respond to new challenges,” he said.

Cabarios said the complaints filed at the NTC will show that Internet is not just a value-added service, but is already a need. “The number of complaints on broadband and data services have been increasing quickly—especially the mobile broadband segment.”

From January to July about 406 complaints on broadband connection were filed before the regulator. The number from the first month of the year to the seventh rose at an average rate of 80 percent.

The NTC started to segregate the complaints by their nature only this year, but Cabarios was sure that the complaints filed against telcos on legacy services—calls and texts— have been declining since Filipinos were introduced to free access to social media.

Making the Internet a basic service means the government will have the right to dictate the price and the speed of the connection.

There are proposals in Congress to amend the Public Service Act of 1936 to help the NTC regulate the price and speed of Internet services, but none has progressed so far.

“In the absence of a new law, we have to make use of the existing ones, and their limitations. We have to be creative as a regulator to do much within the limits of the law,” Cabarios said.

For example, since broadband is simply a value-added service, the regulator just issued the guidelines for a “minimum broadband speed” in the country.

NTC Commissioner Gamaliel A. Cordoba said his office has ordered Internet service providers to disclose the average speed of their connection per location starting September.

In a memo, Cordoba said the average connection for a fixed-line broadband plan should be on a par with the standard of the International Telecommunications Union, or at 256 kilobits per second.

Subscribers, he said, should always be updated as to the connection service that they are using, whether they reach the minimum requirement or not.

The NTC will procure Internet speed-test technologies to enact the memo, Cabarios said. Results will be published per area every month.

On the instance that subscribers will not enjoy the speed that were advertised to them, they can file complaints before the regulator, or the Department of Trade and Industry if it involves false advertising.

But the teeth of the law are not that sharp enough, Cordoba said.

“According to Public Service Act of 1936, the penalty for such complaints is around P200. The law was promulgated in the 1930s, thus, it needs to be updated,” he said. The National Economic and Development Authority estimates that P200, when the law was promulgated, is equivalent to about P1.4 million in present time.

While the absence of the law restricts the regulator from its job, there are also other factors that affect Internet connection in the Philippines.

These are topography, the lack of investments and the inefficiency in local peering. To be continued

news@businessmirror.com.ph

The Nation BusinessMirror

Eternal Gardens inaugurates Santa Rosa de Lima Plaza

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TERNAL Gardens celebrated on August 22 the inauguration and blessing of the Santa Rosa de Lima Plaza and groundbreaking of the Eternal Memorial Chapel at its branch in Santa Rosa City, Laguna.

Local government officials, headed by Rep. Danilo Fernandez of the First District of Laguna, Santa Rosa City Mayor Arlene Arcillas and Vice Mayor Arnel Gomez graced the special event.

They were welcomed by top company officials of Eternal Gardens, led by its chairman and CEO D. Edgard A. Cabangon.

The event started with a thanksgiving Mass celebrated by Rev. Fr. Jose Segudo of the Our Mother of Perpetual Help Parish. Segudo also officiated the blessing.

The Santa Rosa de Lima Plaza is the company’s latest rendering of its corporate trademark of blending art and religion in its parks by putting up artistic sculptures of saints in beautifully

designed plazas built in their honor. The most famous of these sculptural works is the image of the Transfiguration of Jesus, which is found in all its 10 parks.

The beautiful concrete image of the saint that adorns the plaza has been created by veteran sculptor Conrado F. Balubayan, who also crafted the statue of the Santo Niño also found in a plaza in honor of the Infant Jesus in the same park.

Eternal Gardens Santa Rosa is eighth of the company’s network of 10 parks. It opened on February 28, 2008 in Barangay Pulong Santa Cruz, along the Santa Rosa-Tagaytay Road, in the progressive City of Santa Rosa.

Saint Rose of Lima, a Peruvian girl born in the 16th century of Spanish parents, is the first person in the new world to be canonized. She has been proclaimed as the patroness of Peru, all the Americas and the Philippines.

Editor: Dionisio L. Pelayo • Monday, August 24, 2015 A3

Chopper rescue delayed as 8 Ilocos towns near inundation

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By Rene Acosta

OVERNMENT disaster-response officials can only pray on Sunday, as bad weather continues to hamper the rescue of 70 families in villages threatened to be washed away by rampaging waters.

National Disaster Risk Reduction and Management Council (NDRRMC) Executive Director Alexander Pama said they are praying the weather “could at least improve so that helicopters could fly and rescue the families isolated by floodwaters in eight villages of the coastal towns of Cauayan and Santa in Ilocos Sur. In a news briefing, Pama said houses in these towns are threatened to be completely taken away by water “cascading from the mountain and even by sea water.”

“There is no high ground where they could run to. The effort is for

them to be evacuated.”

Pama said NDRRMC staff are rushing as fast as they can to pluck out the families from the isolated villages in Ilocos Sur. Meanwhile, other rescue workers continue to work through the debris of a landslide in Benguet in the hope of finding 17 people who are still missing as of August 23.

The flooding in Northern Luzon and the landslide in the Cordillera Administrative Region (CAR) spawned by heavy rains were a characteristic of the fury of Typhoon Ineng (international code name

Goni), which has already killed at least 10 people, according to NDRRMC’s latest report.

According to Pama, the choppers to be fielded would also attempt to drop food packs prepared by the Department of Social Welfare and Development, as the affected families may have been hungry following their isolation because of the flooding brought by continuous rain.

Pama said the flooded villages sits at the tip of the already-swelled Ilocos-Abra River and at the mouth of the sea that bordered the towns of Santa and Cauayan.

Still, Social Welfare Secretary Corazon Soliman said they were already boarding thousands of food packs into a Navy boat that Defense Secretary Voltaire T. Gazmin ordered to leave Sangley Point in Cavite for Northern Luzon to transport relief goods, not only for Ilocos Sur but for the other affected provinces, such as Ilocos Norte and even La Union.

Meanwhile, the landslide in Barangay Taneg in the town of Mankayan, Benguet, was just among the pocket of landslides that hit the

province following days of experiencing downpour. The local government is expected to declare a state of calamity on August 24.

The NDRRMC said that Ineng has initially killed 10 people and injured 10 others. At least three more people are missing.

At least a total of 7,470 families, or 32,648 persons in Regions 1, 2, 4A and in CAR were also evacuated due to the typhoon. Government data cited that 3,327 families, or 13,159 persons have sought shelters in government-run evacuation centers.

At least a total of 197 houses were also damaged in Regions 1, 2 and in CAR. Initial damage to infrastructure and agriculture in these regions were estimated at nearly P124.82 million.

As of Sunday, a total of 36 roads and six bridges in Northern Luzon and in the Cordilleras were still not passable due to flooding and landslides.

A total of 39 municipalities in seven provinces in Regions 1, 2, 3 and in CAR were also experiencing power interruptions.

Economy

A4 Monday, August 24, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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ERC may review DOE order on CSP

T

By Lenie Lectura

HE Energy Regulatory Commission (ERC) may review the controversial Department of Energy (DOE) circular that requires distribution utilities (DUs) to resort to auction in securing their power requirements from power-generation companies.

ERC Commissioner Josefina Patricia M. Asirit said the agency will “act more prudent” in dealing with the DOE circular on Competitive Selection Process (CSP). The ERC is tasked to come up with the implementing rules and regulations (IRR) in October this year.

Asirit said there could be “farreaching implications” arising from the implementation of the DOE circular. “But if it will compromise certain aspects, then maybe we should revisit it.”

The DOE circular states that all DUs shall procure power supply agreements (PSAs) only through CSP conducted through a third party duly recognized by the ERC and the DOE. The circular applies to future contracts. It does not apply to existing PSAs that have been approved or have been filed for approval before the ERC.

Asirit said a technical working group composed of experts from the ERC and DOE was formed to craft the IRR, supposedly within 120 days from the time the circular took effect on June 30.

But the crafting of IRR is a long process, as this would still have to undergo public hearings to solicit comments from industry stakeholders.

Besides, she said, Malacañang had just appointed a new ERC chairman.

“This is something which has not been brought yet to the new ERC chair. This is something that we, among the commissioners, need to discuss. There are publications and possibly parties that may want to intervene, which will make the process long,” she explained.

ERC Chairman Jose Vicente B. Salazar, for his part, said the agency “can hire more technical people” to assist in crafting the

IRR, and that there is no need to tap the services of third-party consultants. A third-party consultant, he said, “has no accountability.”

Former Energy Secretary Carlos Jericho L. Petilla, who signed the controversial DOE circular shortly before he resigned, earlier said the International Finance Corp. has been tapped by the DOE to conduct a study on the IRR and that the results of which will be forwarded to the ERC. There is no update from the DOE on this.

Salazar said the ERC will promulgate the rules for CSP, but it also has the option to “revisit” the policy. “I’ve been known to be impartial. When I was with the DOJ [Department of Justice], we would consider all arguments and set aside all biases so we could arrive at a fair decision on the matter. I can assure everyone that I will thoroughly study it and that the decision will be fair,” the former undersecretary of the DOJ said.

The Manila Electric Co. (Meralco), a DU that sources the majority of its power requirements through bilateral contracts, is against the mandatory implementation of CSP, saying it will best work if implemented voluntarily.

“Our view is it doesn’t promote the best interest of consumers. It’s a nice concept, an attractive concept, but do it on a voluntary basis,” Meralco President Oscar S. Reyes earlier commented.

Meralco officials said the CSP

scheme is unfair because only the DUs and electric cooperatives (ECs) are mandated to comply, but not the generation companies (gencos).

“What if the participating gencos are flippers, or those that are not serious? How can the DUs, such as us, get the best rate for our consumers in such cases,” they lamented.

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

Reyes pointed out that different utilities have different requirements.

“Will the template for CSP fit everyone? Are we sure that all gencos that will participate are serious? We are only mindful of what’s best for the consumers.” AC Energy Holdings Inc. of the Ayala group, on the other hand, is in favor of the CSP. “We are obviously in favor and we don’t see that any different from what is already happening in the PPP (public-private partnership] as long as it is run properly,” AC Energy Holdings Inc. President John Eric Francia said.

Francia said the next crucial part is the drafting of IRR. “The devil is in the details. A lot of details and variables need to be thoroughly studied so the intent and the spirit of the circular is addressed properly.”

Francia said power producers, such as AC Energy, should not be mandated to also participate in the

CSP. “According to the DOE circular, it’s not mandatory for the gencos. So, we can sell to contestable customers or at the WESM,” he said.

Petilla said he expected industry stakeholders to oppose this all the way to the courts. “For me, this is just common sense. Why is it good and why is it not good? I am quite sure that the DOE will take into consideration any opposition they have, but the main reason we will have CSP is transparency,” Petilla had said.

Industry sources said CSP is also meant “to eliminate self-dealing activities in cases when the DU has an affiliate or sister firms engaged in power generation.”

In the power industry, it is a known fact that Meralco has a power arm engaged in the generation business, while AboitizPower is also involved in distribution business via Visayan Electric Co., Subic Enerzone Lima Enerzone and Davao Light.

Another former energy secretary, Francisco L. Viray, however, viewed it differently. “If that’s what is being targeted, then that is what should be addressed. Why allow cross ownership in the first place?”

Besides, Viray said, there could be other ways in procuring competitively. He also noted that the crafting of the template for the auction is a difficult task. “If it’s going to be an open bidding, then that could even be an avenue for court litigation,” which, Viray noted, could only delay the entire process.

PHL, Mexico ink expanded I.P. deal

T

By Recto Mercene

he Philippines and Mexico have signed a new and expanded intellectual property (IP) cooperation agreement that aims to boost trade and transfer of innovation between the two countries.

The signing was made on the sidelines of the Asia Pacific Economic Cooperation IP Rights Experts’ Group meeting in Cebu City. Mexico chairs the meeting.

Over 40 IP experts and policy- makers are attending the meeting in Cebu City, the second meeting hosted by the Philippines this year.

“With the Mexico delegation present, in full force, here in Cebu City, we took this rare opportunity to finalize an expanded IP agreement. The Philippines has so many things in common with Mexico. We both were former colonies of Spain and are now emerging as economic powerhouses in our respective regions.

This agreement ensures stronger cooperation in IP, which is a critical area in the promotion of innovation, trade and investment,” said lawyer Allan B. Gepty, deputy director general/officer in charge of the Intellectual Property Office of the Philippines (IPOPHL).

The agreement builds on the technical collaboration agreement signed by the Philippines and Mexico in September 2013 in Geneva, Switzerland. Under the agreement, the IPOPHL and the Mexican Institute of Industrial Property (Impi) vowed to work together to promote innovation, creativity and technological advancement.

Arab airlines crowding out Philippine carriers. . . continued from a1

investments PAL and other airlines have made for the country in opening new routes to serve Philippine tourism and overseas Filipino workers,” Bautista said.

During the 1990s, the national flag carrier stopped its flights to the UAE and Europe due to the unfair competition against well-funded Middle Eastern carriers that siphon passenger traffic via their hubs in Dubai, Abu Dhabi and other airports in the Gulf region. It also stopped operations to Saudi Arabia in 2006.

Six European airlines also suspended their routes to Manila during the same period, as Arab carriers employed their multimillion-dollar advantage to devastating effects.

Today, the healthy state of competition in the Philippines’s global aviation network is at risk because of the forthcoming air-services talks. Some of the destinations that PAL fears would be negatively affected by the additional frequencies are London, New York, Abu Dhabi, Dubai, Riyadh and Dammam.

Other Philippine and European airlines have opened their own routes to Dubai, Kuwait, Riyadh, Doha and Istanbul, all of which are vulnerable to another “ill-timed onslaught” by

Emirates and Etihad Airways, if the Arab government is able to secure increased frequencies between Manila and the Middle East.

The current valid bilateral air pact with the UAE already allows Emirates and Etihad a maximum of 28 weekly flights to Manila and unlimited flights to Clark, Cebu and other airports in the Philippines.

Emirates and other gulf carriers have been lobbying for more flights into Manila to be able to carry passengers to destinations beyond the UAE. “We respectfully call on the Philippine panel to the air talks to promote fair competition and support our airlines, which have invested much in re-opening service to the Middle East and Europe,” Bautista said.

Meanwhile, three of the country’s major airlines are battling for the recently bagged frequencies to several cities in Russia, separate filings to Manila’s aviation-services regulator showed.

PAL is seeking to operate five weekly flights to Moscow and thrice weekly to Khabarovsk. It also seeks to serve the Cebu-Khabarovsk route for three times a week. It has been operating flights to Vladivostok out of Manila and Kalibo since 2013.

Sister PAL Express is also seeking

to be designated as an official Philippine carrier to Russia. It did not specify which route it would like to operate.

Cebu Pacific, on the other hand, would like to operate a thrice-weekly service out of Manila to Moscow. It also seeks to fly out of Manila to Vladivostok.

Budget carrier AirAsia Zest is also seeking to serve the Russian market via Kalibo, seeking four allocations to operate the Kalibo-Vladivostok route.

The Philippines and Russia signed on July 23 a memorandum of understanding modernizing their bilateral air-services agreement to further enhance the civil-aviation cooperation between the two countries.

Negotiations were held in Moscow.

The new arrangement allows Philippine carriers to conduct operations between any point in the country and three destinations in Russia, including Moscow.

Also, travelers between the Philippines and Europe or North America will benefit from faster and more competitively priced direct flights with the use of Russian airspace.

About 40,000 Russian tourists visit the country every year, while more than 2 million travelers from Russia and the Commonwealth of Independent States visit the other Asean countries.

Manila seeks $3.41-B ODAs from World Bank, ADB ... continued from a1

of around $345 million and implementation support of another $5 million.

The program will also support an $80 million component on increasing the employability prospects of CCT beneficiaries. This will cover sustainable livelihood program (SLP) training grants worth $75 million and implementation support of $5 million.

The last two components of the project relates to $1.5 million worth of support for the DSWD’s role in disaster and emergency response and $18.5 million for DSWD’s Policy and Institutional Capacity Development program.

Meanwhile, there are 11 projects proposed for funding by the ADB. The projects

that will require the most funding are those earmarked for the Public-Private Partnership (PPP) program.

These projects include the Encouraging Investment Through Capital Market Reforms Program worth $400 million and the Expanding Private Participation in Infrastructure Program worth P300 millon.

The Encouraging Investment Through Capital Market Reforms Program will require an ordinary capital resources (OCR) loan from ADB worth $300 million and funding from the Japan International Cooperation Agency (Jica) worth another $100 million.

The other program, the Expanding Private Participation in Infrastructure Program, aims

to provide financial support to PPPs and expanded and efficiently implemented pipeline of PPP projects.

“The government has requested a loan of $300 million from ADB’s ordinary capital resources to help finance subprogram 1 (financial support for PPPs). The program government’s expenditure program. The Government of Japan (through the Japan International Cooperation Agency) is considering co-financing the program,” the ADB said.

In 2014 the World Bank was the country’s biggest source of ODA loans with 39.8 percent share or $4.45 billion. This was followed by Jica and the ADB with 28.3 percent worth $3.16 billion) and 20 percent or $2.23 billion shares, respectively.

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Aerospace industry boosting MRO capability

T

By Catherine N. Pillas

he country’s aerospace industry is taking more efforts to fill the gap in its supply chain, with the goal of enticing more manufacturing companies to produce aerospace parts and boosting its capability in the maintenance, repair and overhaul (MRO) segment.

“We’re looking for Philippine manufacturers to invest in aerospace. We’re looking at other industries in manufacturing, like in automotive, motorcycle, die and mold, and we’re inviting them to join the aerospace supply chain,” said John Lee, president of the Aerospace Industries Association of the Philippines (AIAP).

The local aerospace industry held

an investment forum late in July for that purpose, with Tier-1 companies, or those directly supplying to globalaircraft manufacturers, such as Boeing and Airbus, in attendance.

Following the forum, the AIAP president is hoping companies interested to join the supply chain can be included in the Department of Science and Technology—Metals Industry Research and Development

Centre’s program in coordination with the Department of Trade and Industry (DTI).

The two agencies’ program seeks to upgrade the manufacturing capabilities of companies to “industry grade,” especially in aerospace processes, such as metrology.

“We want more companies to get into sheet metal and Computer Numerical Control machining, and other aerospace special processes,” Lee added.

Lee said the DTI may fund the program for the incoming year, although they have yet to propose an amount.

The program will also be expanded this year to include processes, such as soldering and welding, to focus on the MRO side of the industry.

Rising demand for aviation mechanics

Notably, on the human resource side, the industry is also

col l a b or at i n g w it h av i at ion schools to scale up the skills of students in aviation mechanics.

“We’re enticing more people into the MRO side with an aviation mechanics program because a lot of planes, worldwide, are now being commissioned, and there’s a demand for their upkeep. Globally, there is a backlog of 30,000 commissioned planes, and Boeing and Airbus are saying 40,000 to 50,000 workers are needed,” Lee said.

In the Asean region, there is a demand for the profession, as well. During the recent investment forum, Lee said a Malaysian company was looking for more than 18,000 aviation mechanics for the next three years.

“We need more mechanics to train; what we have now is not enough. Worldwide, demand is growing,” Lee said. “We’re ahead of our [industry] road map, but we need to fill in our supply-chain gap so we can have a better growth rate,” he added.

Monday, August 24, 2015 A5

Recto wants BOC to stop opening ‘balikbayan’ boxes

T

Recto Mercene

he chairman of the Senate Finance Subcommittee reviewing the Bureau of Customs (BOC) budget said agency officials will be grilled on the status of the shift to non-intrusive inspection techniques, which could detect contraband goods without opening the balikbayan boxes sent home by overseas Filipino workers (OFWs).

“There are ways to catch the rat without burning the entire house down,” Senate President Pro-Tempore Ralph G. Recto said, stressing “that programs to find big-time smugglers and not a few bars of bath soap in a balikbayan box” are already funded under the BOC’s operating budget this year.

One of these is the P298 million allotted for the upkeep of 30 “big” x-ray machines from China, which are installed in the country‘s 10 biggest ports, Recto said.

The x-ray machines, which can scan one 40and 20-foot shipping container in minutes, were acquired in 2006 at $2.5 million each through a loan from the Chinese government.

Recto said under a Palace order governing the “Non-Intrusive Container Inspection System,” each 40-footer van is charged a “container security fee” of $10, while a 20 footer is charged $5.

“This year, fees collected from the operation of these x-ray machines will reach almost P1.2 billion,” he said. Seventy-five percent of this amount will be used to repay China.

According to Recto, the x-ray program “was meant to do away with manual inspections since the use of the x-ray is like seeing through inside the van.”

“It was designed to replace tedious, inefficient manual and balikbayan box-to-balikbayan box inspection and was supposed to make the opening of boxes redundant,” Recto said.

To augment the Chinese-made x-ray machines, Recto said the BOC invited bidders to a P148-million contract to supply 20 x-ray machines to be installed in airports in 2013.

Recto suggested that x-ray machines should also be installed in post offices where BOC personnel are detailed to check incoming parcel for taxable goods.

Tourism&E

Busines

A6 Monday, August 24, 2015 • Editor: Carla Mortel-Baricaua

HIROSHIMA, 70 YEARS LATER

PASSAGE way leading into the Hall of Remembrance at the Hiroshima National Peace Memorial Hall for the Atomic Bomb Victims.

SEVERAL flowers and wreaths lay at the Cenotaph for the A-Bomb Victims.

THE Peace Bell’s message is to have a world of true peaceful coexistence.

THE Hypocenter marker where the first atomic bomb exploded.

S    S B O. S

A

UGUST 6, 1945, at exactly 8:15 in the morning may have very well been the day the Earth stood still for those old enough to be alive then and up this day. Hiroshima and its atomic bombing will forever be etched in human history for both its role in virtually ending World War II, and for the devastation that it brought both physically and emotionally to the people of Japan.

Not too many Filipinos get to see this United Nations Educational, Scientific and Cultural Organization (Unesco) World Heritage site as most would first go to either Osaka, Kyoto, or Tokyo for their first taste of the Land of the Rising Sun. In fact, I was only able to include a day tour of Hiroshima during my last trip because of a sudden change in my flight itinerary.

The one-and-a-half and twoand-a-half hour (depends on the type of train you board), 300-plus kilometer train ride from JR ShinOsaka via the Sanyo shinkansen (bullet train) is very well worth the time and effort to visit a very historic place that is now commemorating the 70th year of the fi rst atomic bombing.

From the JR Hiroshima station to Genbaku Dome-mae station

GOING around Hiroshima means visitors riding the public electric tram system. The ground-level ride is rather slow but has great scenic value and passengers can pay the fare using Japan’s Icoca, Haruka, or Suica smart cards.

Genbaku Dome-mae or the Atomic Bomb Dome station, 10 stations or 16 minutes away from JR Hiroshima, is the main gateway to the A-Bomb Dome, the Hypocenter and the vast Peace Memorial Park. I could easily see the A-Dome from across the small tram platform; until all repairs and fixes have been completed, current visitors would unfortunately have to bear with all the scaffoldings surrounding the structure that originally served as Hiroshima’s Commercial Exhibition Hall.

Near the vicinity of the A-Bomb Dome is the Memorial Tower to the Mobilized Students, a tower built to commemorate the 6,300 or so national upper level school students killed when the atomic bomb was dropped.

Walking further, the 122,100-squaremeter Peace Memorial Park can be easily reached by foot by crossing the Motoyasu Bridge.

The park grounds houses several memorials, statues and museums, most notable of which are the Children’s Peace Monument, Peace Bell,

THE orange torii gate serves as an entrance to the Itsukushima Shrine.

THE Memorial Tower to the Mobilized Students is dedicated to students killed by the bombing.

Cenotaph for the A-Bomb Victims, Flame of Peace and the Peace Memorial Hall for the Atomic Bomb Victims.

With current post card-worthy, manicured landscape of the park, I could not help but imagine what the area must have looked like moments after the detonation of the atomic bomb.

During the day that I visited, I even witnessed several wreath and flower laying ceremonies by what I suppose foreign dignitaries at the Cenotaph for the A-Bomb Victims. The neighboring, three-story (one above, two below) National Peace Memorial Hall for the Atomic Bomb Victims is a must visit for anyone visiting Hiroshima.

Built in 2002, the Hall serves as both museum and memorial for the estimated 140,000 Japanese who lost their lives during that time. Inside, photographs, video interviews of survivors and relics serve as literal and physical effects of the bombing aftermath, while the whole hall itself is full of symbolic characteristics related to the event.

Hypocenter Marker

BEFORE going back to the Genbaku Dome-mae station, I noticed a small dark red/clay color granite in front of what is now a medical clinic. It turned out to be the marker for the Hypocenter of the Hiroshima bombing: “Carried to Hiroshima from Tinian Island by

STANLEY SEE

THE A-Bomb Dome is unfortunately currently under repairs and reenforcement.

the Enola Gay, a US Army B-29 bomber, the first atomic bomb used in the history of humankind exploded approximately 600 meters above this spot.”

At that time, I really could not help but to look upward and image what the atomic bomb, cutely nicknamed as “Little Boy,” looked like falling from that US Army plane.

Aside from the getting a quick lesson in history and a deeper appreciation for world peace, the best thing about all the places mentioned above is that they are all free to visit; no admission or entrance fees.

Side trip to Miyajima/Itsukushima

AT mid-afternoon and still with plenty of time to spare, I made a quick side trip to the island of Miyajima to see the picturesque Itsukushima Shrine and its world-famous “floating” torii gate.

From Genbaku Dome-mae, a short electric tram ride to Yokogawa tram station brought me to the JR Yokogawa train station. From JR Yokogawa, JR Miyajima-guchi station is a mere 22-minute train ride. It takes another 10-minute ferry ride from the Miyajima-guchi pier (Hiroshima side) to the Miyajima pier.

Two things went against my way by the time the JR ferry docked at the Miyajima pier: first the tide was low and this meant the large, orange torii did not have its distinct floating effect.

Second, the sun was already setting and the amount of available light to have a decent photo is decreasing by the minute.

There are several rows of resorts and restaurants on Omotesando, the main shopping street between the pier and the Itsukushima Shrine. Do not be alarmed if deers suddenly appear as these are usually tame animals and wander freely within the area.

Aside from being a Unesco World Heritage site, Itsukushima Shrine is also one of a handful Shinto shrines designated as National Treasures by the Japanese government. The bright red/orange torii gate dates back to the year 1875, stands at about 16 meters in height and serves as a symbolic entrance to the Itsukushima Shrine.

As luck would have it, dusk is not the best time to view or photograph such as important attraction; but at least I get to have a reason or excuse to go back to this place again. Visiting Hiroshima and Miyajima/Itsukushima is definitely one of the highlights of my recent Japan visit. Wonderful places that I, just as recently, have only read in books, seen in magazines or saw on TV. These are the reasons Japan, despite all its technological advances, is revered around the world for zealously preserving and promoting its history and culture.

Entertainment

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A VIEW of Baybay from Barangay Lintaon

In the sweet by and by

SUNSET at Barangay Pomponan

‘I

S    H F. P

N the sweet by and by, we shall meet on that beautiful shore.” When hymn writer Fillmore Bennett wrote these well-loved lyrics in 1868, little did he know that his classical work would not just be referring to the great beyond prepared by the Almighty.

Down south in Leyte is the beguiling city of Baybay, which is, likewise, characterized in the song.

A host of apocryphal stories abounds how the city got its name. But the most logical explanation is that the town has the longest coastline in Leyte province, and common sense dictates that it be named “Baybay,” which literally means “beach.”

It goes without saying that its major tourist magnet is its beach, which will captivate every stranger

on the shore.

Baybay may not be as popular as the well-known white-sand island beaches, but what it offers is its natural charm, away from the madding crowd.

To put to the fore its coastal bounty, the city recently celebrated the Binaybayon Festival, a thanksgiving ritual influenced by the traditional Waray curacha dance. Coinciding with the patron’s feast, the festival is also inspired by the townfolk’s pastoral

way of life with the street dances depicting the various stages of the planting and harvest seasons.

When Baybay was declared a component city of Leyte in 2007, the festival was incepted to showcase the strides it has made in economic progress and tourism development.

Tourists can expect more than the usual sight-seeing trips, just as Baybay’s tagline states, a “City of discovery, beauty and serenity.”

Sandwiched by the mighty Pangasugan mountain ranges, the tranquil Camotes Sea and comely Camotes Islands, Baybay offers the allure of both worlds.

This experience can be had at the Visayas State University (VSU), a sprawling educational enclave, which has earned the moniker “resort university” because of its enviable beachfront location.

One of the country’s biggest agricultural schools, VSU is a vital component of the city’s blossoming agro-industrial tourism.

The city also takes pride in its 13,820-hectare coconut plantation, the biggest in Eastern Visayas, making it the home of two world-class coconut oil factories and a pulp paper exporter.

Baybay is also Leyte’s de facto “heritage city” due to its well-

BAYBAY Boulevard and seaport

BINAYBAYON Festival

AMBACAN River

preserved American-era ancestral houses. Visitors can walk around the heritage lane, which will transport them back in time as they visit the antediluvian homes, which have become “living museums.”

As part of its expansion, the city is reclaiming a 9-hectare new central business district, which will house the public market and transport terminal, a P200-million sports complex, a hotel, fishport, fishing area, a shopping mall and a tent city garden park.

These developments will offer a front-row seat to a romantic sunset, while munching on the local lechon manok (chicken barbecue).

In the city’s outskirts is the wind-swept upland village of Lintaon, which affords guests a breath-taking view of the city and the mountain ranges. The area is ideal for a zipline or cable car park, a retreat center, Stations of the Cross, or a back-to-the-basics nature camping grounds.

The more adventurous can explore its cavernous chambers of Lintaon Cave, dip at the rejuvenating waters of Bakwitan Falls, paddle at Ambacan River, or trek Mount Pangasungan.

With its beauty and serenity, Baybay is, indeed, a sweet by and by.

PLAZA Rizal Obelisk in Baybay

tourism@businessmirror.com.ph • Monday, August 24, 2015 A7

TheElderly BusinessMirror

A8 Monday, August 24, 2015 • Editor: Efleda P. Campos

In her ‘laboratory of learning’

By Nauriel Faye Carreos | Special to the BusinessMirror

S

HE comfortably positioned herself on the soft cushion placed over the firm narra single-seater. Her eyes were solemn, yet filled with delight and wonder; the crinkles on the tips meant she must have smiled a lot. She was very mindful of her posture, straightening herself up from time to time, and then pulling the edges of her red shirt. Calm and composed, a smile painted across her face, followed by a giggle, as she recalled her recent trip to Brunei Darussalam and her encounter with a relative of the Sultan.

“I spent an afternoon with the lady and she asked me to make a proposal [on the school]. I forgot about it but she e-mailed me. Maybe one of these days, I’d e-mail her back and say, ‘Here’s the proposal,’ but only a year later,” she said, before erupting into a heartfelt laughter.

More than a woman stocked with stories of her own mischief, she is a treasure trove of experience, wit and charm that she unselfishly shares with the people around her.

Nationa l President of the Kapisanan ng mga Guro ng Pilipinas (Kaguro), an organization that aims to inspire and empower teachers all over the country, 71-year-old Ophelia Veniegas dedicated her life to uplifting the standards of teaching to the highest level of professional

SM City Cauayan holds gadget literary tutorial for senior citizens

C

AUAYAN CIT Y, Isabela—SM City Cauayan has conducted a gadget literacy tutorial to senior citizens with its Oldies but Techies Program at the cyberzone bridge way of the mall, in partnership with the mall ’s cyberzone tenants.

Krystal Gayle Agbulig, public relations officer of SM City Cauayan, said the Oldies but Techies is an annual event conducted by SM Supermalls across its malls nationwide. It aims to teach the seniors how to use the Internet, which helps sharpen minds and update skills. Seniors are also guided in navigating social-networking sites and different gadgets.

Agbulig said the tutorial program started in 2011 as “High Tech si Lolo at Lola Ko,” demonstrating how to use computers and laptops.

Then later on, evolved to Oldies but Techies that hooks with the alternation in technology, educating the seniors how to access social media.

She said the projects of SM Cares Program for senior citizens aim to create change that nurtures senior citizens from the moment they enter and move out in the mall. She said, truly, age is never an excuse not to catch up with new trends in technology. PNA

practice in the belief that every child deserves quality education as every teacher deserves quality life.

“There are many organizations that are into teachers’ benefits, but only a few are really focused on standards—the quality. We are trying to help teachers both in their professional and personal life,” she said.

After earning her PhD in Education from the University of the Philippines Diliman, Ophel owed most of her experience and knowledge as she set foot in the international arena, working as a research and training specialist for the Southeast Asian Ministers of Education Organization (Seameo) Regional Center for Educational Innovation and Technology (Innotech).

“The work was from A to Z. I was

Ophelia Veniegas

always asked to manage the international conferences, forums. I was asked to organize,” Ophel said.

The practical knowledge she gained with the nature of her work in Seameo Innotech and in pursuit of her vision of raising the standards of professional practice in the field of education not only inspired her to establish her own teachertraining facility, Brain Connections, but also to start her own school, Einstein School for Kids.

Ophel said different from traditional formal schools, Einstein is the offspring of different curricular programs all over the world and her own experience in education research and training.

“I made the curriculum myself.

[It is] still based on the Department of Education basic set of competen-

cies, but we enriched to include 21stcentury learning skills,” Ophel said.

With her devotion to the field of education, it is unimaginable that Ophel did not initially intend to place herself in this area.

Hailing from a family of educators in Cagayan, for Ophel to follow suit and become a teacher, as well, only made sense—but not to her.

She dreamt of a different path as a medical practitioner, yet life’s circumstances and her family’s wishes prevailed. “Actually, I didn’t want to be a teacher. But most of my [relatives], almost everybody in our clan, were teachers. So, actually I wanted to be a doctor—a medical doctor— pero hindi namin kaya,” she said.

Nevertheless, the field she was deeply reluctant to enter is now her greatest project yet—her “labora-

tory of learning.” With a vision to provide quality education to Filipino children in the country, Ophel plans to establish mission schools in poor communities.

“Even though we’re a private school and it’s supposed to be a trade secret, we are giving away our technology so that kids in depressed areas can have a taste of the Einstein methodology,” she happily said.

Giving back to the community is not new to Ophel; it may be even said that it is already in her very nature to help those who are in need.

As a member of the local chapter of Couples for Christ, she believes that she must serve her part as a servant leader and fulfill the mission of providing aid to people. If her hands are not tied to other commitments, she spends her time organizing weekly senacles or outreach programs as a member of Daughters of Immaculate Mary, a charity mandated by the parish.

“I guess it’s a habit of mine. I would be bored if I had nothing to do—I feel so powerless, useless,” Ophel lamented, as she imagined her life without all the commitments she has. The picture of a blackout on a rainy day, stuck at home without a thing to do is a nightmare for Ophel. As a very hands-on person, she defies all odds as she still manages to go to different places all over the country to deliver talks, host seminars and conduct trainings for school teachers, despite her age—and she has no plans of stopping anytime soon.

“I pray to God that He grants me as many years as I can,” Ophel said. “I feel fulfilled when I’m into many things. Every year, I have new things for the school and society.

It’s nakakataba ng puso.”

news@businessmirror.com.ph

Saudi elderly return home angry, minus regular payments

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EDDAH, Saudi Arabia—Irate senior citizens and widows in Haql have called on the Social Affairs Ministry to set up an office in the region because they have, for a second week, not been able to get their payments.

The beneficiaries have had to deal with the scorching heat because no one has turned up to help them, an online publication reported recently. The publication posted several pictures showing the plight of the citizens.

The publication has over the years reported about the situation of citizens in this region. This is because there is no branch of the ministry in the area.

Citizens are forced to queue up in front of the welfare association in Haql, hoping that a social affairs official arrives from Tabuk to assist them. An official is supposed to visit the region every Thursday to take their documents and return to Tabuk to complete the process.

This formality takes several weeks.

Several senior citizens and widows cannot travel to Tabuk. The citizens of Haql are not the only ones suffering. Many in Dhaba face the same problem. They have raised concerns about the lack of services because the government has allocated huge amounts for social welfare.

Several citizens from Haql and Dhaba were quoted as saying that they want Minister of Social Affairs Majed Al-Qassabi to intervene and provide an effective and long-term solution to their plight. They want a social affairs official appointed fulltime in their area or a ministry office opened.

The web site, citing an unnamed source, said that the suffering of the beneficiaries would end in the coming two weeks. Haql’s mayor is expected to take up the matter. The source said the ministry was capable of providing services to beneficiariesanywhereinthecountry. TNS

Texas group home investigated after complaints of abuse, poor conditions

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EVERAL residents reshuffled from an illegal group home in East Austin last week found themselves placed in a North Austin facility infested with bugs, founded by a convicted felon and possibly operating illegally.

On Friday state authorities performed an early morning surprise inspection at Zoe’s Safe Place at 8007 Burnet Road after receiving several complaints this week. Inspectors from the Texas Department of Aging and Disability Services learned on Thursday of poor living conditions and possible abuse at Zoe’s Safe Place. It was elevated to a priority one incident, and inspectors arrived at the facility at 4:30 a.m. on Friday. Inside, they found the facility didn’t have enough beds for its estimated 70 residents, with numerous people sleeping on floors and in halls, department spokesman Cecilia Cavuto said.

The inspection triggered a large response from numerous local public-safety agencies, including police, fire, paramedics and the Austin and Travis County health department.

Several of the facility’s residents had just arrived this week from another group home in East Austin that officials shut down on August 14 after finding more than 20 people crammed into a small house with no air conditioning. But even after finding infestations of bed bugs, cockroaches and head lice—along with a large amount of rotten food and its own air-conditioning issues— residents were allowed to remain at Zoe’s Safe Place on Friday. Many opted to leave, residents interviewed on Friday said. Officials with aging and disability services may seek to shut down Zoe’s Safe Place through a court order if investigators find that the staff performed assisted-living services without a license, Cavuto said.

Assisted-living facilities are longterm homes that provide personal-

super ‘lola’

A grandmother carries a plastic bag on her head after she buys some basic items for her family from the Baguio City public market. MAU VICTA

care services, such as bathing, dressing, transportation and administering medication. Such facilities must be licensed, inspected and overseen by the state. The question is whether Zoe’s was illegally operating as such a facility. According to its web site, the home provides medication monitoring, meals, transportation and has a certified nurse’s aide on staff. The site features a video in which one resident says that “there are always medical teams coming through the door” to help her with her health needs.

Public records showed Zoe’s Safe Place was founded by Tommie Yvette McKinney, a woman with an extensive criminal history, who was arrested in 2009

while operating a smaller group home in East Austin for opening credit-card accounts in the name of one of her home’s residents.

McKinney pleaded guilty to a charge of reckless exploitation of an elderly person in September 2011, which was dismissed in 2013 after she completed two years of probation, court records showed. McKinney was unreachable for comment on Friday. Zoe’s Safe Place was registered as a nonprofit with the Texas secretary of state in April 2010 under the name Zoe’s Safe Haven. In its paperwork, McKinney described the home as one formed exclusively for charitable, educational and religious purposes. Its mission, she wrote, was

to meet the “special physical, social, recreation, spiritual, health care, housing, transportation and education needs of the poor, distressed, elderly and handicapped residents of Travis County in Central Texas.”

McKinney changed the facility’s name to Zoe’s Safe Place last December. Resident Connor A. Kutach, 23, said he was unsure if he would move.

Kutach has lived in the facility since April. “It is not as bad as most places,” he said. “If this place gets shut down, you’re going to have a lot of people on disability and Social Security go homeless,” Kutach said. But Kutach had noticed the filthy conditions. On Thursday, he took a fellow resident to the emergency room at University

Medical Center Brackenridge after she woke up covered in bed bug bites, he said. He also said police visited the facility almost every day.

Records show police have been called to Zoe’s Safe Place 161 times since the beginning of 2015. Family Eldercare, a nonprofit that provides services to adults with disabilities, has placed a handful of people at Zoe’s Safe Place over the last year, said Shontell Gauthier, the organization’s director of money management services. Caseworkers visit Zoe’s Safe Place once a week and have reported no problems, she said. The nonprofit knew about McKinney’s history, she said, but kept a close eye on its clients.

The clients haven’t complained about the facility, and “they feel like this one is fairly decent,” she said. Social services groups regularly struggle to find quality homes for people with disabilities because of the lack of affordable housing, Gauthier said.

“Oftentimes we have no choice but to access board and care homes to prevent clients from being homeless,” she said. Zoe’s Safe Place advertises itself as a home where people are showered with “love and affection.”

The web site states the facility also offers residents food, Wi-Fi, a community computer room and washers and dryers. One employee was in charge of “keeping all communal areas safe for conjugal time.”

In a YouTube video posted in April, McKinney said she was inspired to help people with mental illness after being diagnosed with bipolar disorder. “At that point, I didn’t want anyone to live or feel the way I felt,” she said. “Everybody deserves to have a home. Everybody deserves to feel love.” Austin Travis County Integral Care, which provides services for people with mental illness and developmental disabilities, dispatched its mobile crisis unit to the scene on Friday to assess whether any of the clients needed help, said Sherry Blyth, director of crisis services. TNS

news@businessmirror.com.ph

The Regions BusinessMirror

Editor: Dionisio L. Pelayo • Monday, August 24, 2015

A9

‘Trains needed for Clark to N. Luzon’

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B J P | Correspondent

NGELES CITY—Clark International Airport Corp. (CIAC) President and CEO Emigdio Tanjuatco III said he is batting for the construction of a railway system connecting Clark to areas in North Luzon to increase passengers at the international airport in Pampanga.

Tanjuatco bared his preference to businessman Ruperto Cruz of the Pinoy Gumising Ka Movement (PGKM), a Pampangabased advocacy group pushing for the full development of the Clark International Airport (CRK).

Tanjuatco said it’s more beneficial for the CRK if the railway covers routes from Clark to areas north of Luzon, notably at Pangasinan and Baguio City.

Public officials and private groups, including the Manuel V. Pangilinan-led infrastructure conglomerate Metro Pacific Investments Corp., expressed support for the construction of a railway system connecting CRK to the Ninoy Aquino International Airports in Metro Manila.

Government statistics showed that many overseas Filipino workers come from Central and Northern Luzon.

“Those train passengers from North Luzon will likely use Clark when they leave for abroad,” Tanjuatco said. He earlier disclosed that there were 443,507 passengers at the CRK from January to June of this year.

Tanjuatco expressed confidence that the annual- passenger volume at the CRK will breach the one-million mark this year, like the 1.3 million in 2012 and the 1.2 million in 2013.

In 2014 there were at least 877,000 passengers. The departures of AirAsia Philippines and Emirates hurt CRK’s operations. In the same meeting, Tanjuatco said South East Asian Airlines International (SEAIR) will resume operations at the CRK, either by September or October this year. It will launch regular flights to Incheon in South Korea, Taiwan, Kalibo (Boracay) in Aklan and Palau.

Tanjuatco said AirAsia Philippines will also resume operations at the CRK “soon.” There are at least eight airlines operating at the CRK, including Cebu Pacific Air.

NPA liaison officer arrested in Davao City

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OINT military and police units have arrested a New People’s Army (NPA) liaison officer during checkpoint operations in Barangay Sirawan, Toril District, Davao City on Saturday night. The incident took place at 9 p.m., said Eastern Mindanao Command public affairs office chief Capt. Alberto Caber.

The arrested rebel was identified as John Omega Nebris alias “Part” and affiliated with the NPA Southern Mindanao Regional Committee.

Recovered from his possession were a .45 pistol caliber, a fragmentation grenade, three cellular phones, 13 SIM cards, and P5,000 in cash and personal belongings.

Nebris is now detained at Toril PNP station while a case is being prepared against him.

The former’s arrest stemmed from reports coming from a concerned citizen.

Caber said Nebris’s arrest is a big blow to the NPA movement as he is knowledgeable of the rebels’ activities in the region.

As this developed, the Eastern Mindanao Command is now conducting pursuit operations against thee NPAs who destroyed four backhoes, two graders, a crane and a dump truck in Santa Cruz, Davao Del Sur on Saturday night. Extortion is being eyed as the motive for these attacks. PNA

Agno River water rising downstream

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AGUPAN CITY—The water level of the downstream portion of the Agno river in Pangasinan has further risen, as the National Power Corp. (Napocor) increased its discharge of impounded water of the San Roque Multipurpose Dam Project to three meters from one opened gate as of 6 a.m. on Sunday.

The increased water discharge from San Roque was reported by the Philippine Atmospheric Geophysical and Astronomical Services Administrationin its web site consolidated from reports of various agencies monitoring the conditions of dams as a result of increased rains spawned by Typhoon “Ineng,” which as of Sunday was already outside the Philippine Area of Responsibility.

The volume was two meters higher than the two-gate half meter each opening when Napocor started its water discharge at noon of August 22, which was made at one-gate opening at two meters at 4 p.m. that day. Water elevation of the San Roque dam, the largest rock-fill dam in Southeast Asia and only the second in Asia, at 6 a.m. on Sunday was 283.51 meters above sea level (masl), or 3.51 meters above its critical level of 280 masl, thus the need for the water increased water discharge downstream of the Agno river. PNA

A10 Monday, August 24, 2015

Opinion BusinessMirror

editorial

Should the government invest in the stock market?

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veryone wants the government to make more money, particularly when it is the people’s money that is at stake, as in the case of the state-run Government Service Insurance System (GSIS).

We are about to witness how this is done, after GSIS President and General Manager Robert G. Vergara announced that the pension fund intends to raise the cap on equity investments to 30 percent of its total investible funds after securing approval from the board of trustees.

Currently, the GSIS holds about P850 billion in investible funds. About 47 percent of these are placed in interest-bearing fixed income, while 25 percent, or P217 billion, are loans extended to members, and about 18 percent are invested in the stock market. Another 3.4 percent are invested in real estate.

An increase from the current 20-percent level for equity investment to 30 percent would mean an additional P87 billion for shares.

The GSIS has, as all government-controlled and-managed pension funds have, an obligation to maximize its returns while absolutely protecting the principal amount. That is a difficult line to follow, as investments always have an element of risk. Often, the higher the return, the greater the risk involved.

A long-term “buy-and-hold” strategy in the stock market has always outperformed other investments. That is to be expected, again because of the inherent risk in equity investing, as opposed to fixed-income or even real-estate investments. However, stock-market investors are willing to tolerate the added risk, not only for the historically higher returns, but, more important, because the stock market offers immediate liquidity.

Holding on for a long time is fine if you will not need the cash if and when the value of the investment decreases.

That is one problem for government pension funds investing in the market.

It is assumed that proper investment management would take small losses in the portfolio rather than hold for the sake of holding.

However, there are added problems with large government investments in the stock market.

There is a genuine risk that if a government entity has a large stock-market exposure, both policies and indirect influence might be made to keep stock prices higher. China just proved that risk by changing stock-market trading rules in an attempt to push share prices higher. That is not to say it would happen in the Philippines, but it is a consideration.

An P87-billion GSIS investment is not to be taken lightly because of the size.

Of course, those funds would not be committed all at once, as that would definitely cause price distortion. Likewise, a quick selling would do the same thing.

In this sense, the pension fund is not just any other investor. If a private fund decided to sell out, it would not be concerned at all with any price distortion.

But if this is done by an arm of the government which regulates the exchange, this would have to be thoroughly thought about.

Certainly, the GSIS should be investing in the stock market, both for returns and for the added effect of boosting market confidence. But how much is too much for the GSIS? That is a difficult question to answer.

Why we should never forget Ninoy Atty. Jose Ferdinand M. Rojas II

RISING SUN

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ast August 21 was a nonworking holiday that, falling as it did on a Friday, created a long weekend that everyone took advantage of to rest, go out of town, or to indulge in hobbies or leisure activities.

But how many of us actually remember the significance of the holiday, and what it was all about, who it honored and why?

That day marked the 32nd death anniversar y of Sen. Benig no “Ninoy” Aquino Jr., whose assassination in 1983 catapulted the country into a state where a longed-for change brought Filipinos together to witness a renewal of the spirit of democracy.

Ninoy was born in Tarlac on November 27, 1932, to a prominent landowning and political family. He was a precocious and determined boy, who, at the age of 17, became the youngest journalist to cover the Korean War for the Manila Times. For this feat, he received the Philippine Legion of Honor award when he was 18.

At 21, he assisted President Ramon Magsaysay by negotiating for the unconditional surrender of Hukbalahap rebel group leader Luis Taruc, for which he received a second Philippine Legion of Honor award.

At 22, he became mayor of Concepcion, Tarlac.

At 27, he was elected vice governor of the province.

At 29, he became governor.

At 34, he became a senator.

At 50, he was dead, martyred for a cause he believed in and fought for—the freedom of the Philippines from the tyranny of a dictator.

His most famous words are “The Filipino is worth dying for.”

This, for him, was never empty rhetoric, because he returned from

exile knowing full well the risk to his life. In fact, we can say he predicted almost exactly the instant of his death. He lived and died by these words, believing that his kapwa-Pilipino, his countrymen, were worth the greatest sacrifice one could give—one’s life.

How many of us have similarly accomplished so much of import and significance in such short time? Not everyone can be a Ninoy, but we can strive to be like him in the passion of his convictions and the sincerity of his faith, in offering on the altar of our Inang Bayan, our Motherland, not a death of martyrdom but a lifetime of genuine service.

This is why Ninoy needs to be remembered and his story told, again and again—not only because a nation’s gratitude needs to be renewed, but also for the youth to emulate a role model, in the sense of having something to live and work for that is meaningful and of substance, that is of genuine help for and service to their fellow Filipinos.

Ninoy could have pursued a career in the United States. If he had, he might still be alive today, aged 83. But, instead, he turned his back on that opportunity and faced bravely what lay ahead, no matter how bitter, how unjust, how

fatal, because he believed that this was his duty—to join his fellow Filipinos in the struggle for the restoration of freedom and rights.

From his undelivered arrival speech, he reiterated with courage his mission and values that led him along the long and weary road of peaceful activism: “On one of the long corridors of Harvard University are carved in granite the words of Archibald Macleish: “How shall freedom be defended? By arms, when it is attacked by arms; by truth, when it is attacked by lies; by democratic faith, when it is attacked by authoritarian dogma. Always, and in the final act, by determination and faith.”

“I return from exile and to an uncertain future with only determination and faith to offer—faith in our people and faith in God.” And in that same determination and faith, our country found its courage for a renewed struggle that led to its redemption and rebirth in a revitalized atmosphere of democracy.

For this, we thank Ninoy Aquino, and vow that he will never be forgotten.

Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

A brutal week in markets, but what comes next?

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By Mohamed A. El-Erian | Bloomberg View

nvestors around the world will be looking to next week with some anxiety as they lick their wounds. A brutal week of losses was accentuated by an unpleasant close for the US stock markets that saw the Dow Jones Industrial Average plunge more than 500 points (3 percent) for the day and taking it into correction territory, or down more than 10 percent from its last high. The losses for the week were accompanied by even larger ones elsewhere, including emerging-market currencies and oil.

In assessing what lies ahead, investors would be well advised to consider six major factors that have brought markets to this uncomfortable point. ​1 . Un l i k e s o m e p r e v i o u s episodes—including the 2008 global financial crisis and the 2013 “taper tantrum,” as well as those associated with eurozone concerns—the catalyst for this market retreat came from outside the developed world.

It l argely ref lected concer ns about slowing growth in emerging economies (China, in particular, but also Brazil, Russia and Turkey), compounding the entrenched economic sluggishness in Europe and Japan. ​2 . Global grow th concerns were intensified by the struggles policy-makers in emerging markets are having in stabilizing

t hei r domest ic f i n a nces a nd limiting further damage to their economies. Again, China is under the spotlight given questions about whether government interventions have stabilized its domestic stock market. ​3 . The impact of lower global growth was particularly painful for other markets that already were under pressure from developments on t he supply side. As such, the plunge in oil prices highlighted the extent t o w h i c h t he m a r k e t ’s ne w de facto swing producer—the US—doesn’t play the same role that the Organization of the Petroleum Exporting Countries did at the height of its power. ​4 . Ex por ts f rom emerg ing economies, par t icu l arly rawmaterials producers, are most at risk from the combination

Yes, the People’s Bank of China could loosen monetary policy; and, yes, the Fed could hold off hiking rates in September. But the impact on global growth would likely be limited unless these steps are accompanied by a more comprehensive policy response. Otherwise, prices need to fall a lot more before wary investors get off the sidelines. of slowing growth and lower worldw ide commodit y prices.

Accordingly, the market carnage was greatest in emerging-market currencies, pushing losses to levels beyond what was experienced during the global financial crisis in 2008. And these markets are technically the most prone to overshoot, with significant and adverse spillover effects on other markets. ​5. Because some portfolios are designed to unwind during turmoil and heightened volatility, financial markets slipped into the destabilizing grip of contagion— with the risk of overshooting.

The VIX, commonly referred to as the fear index, soared.

Richly valued stocks, particularly in the tech industry, were battered. This inevitably undermines the buy-on-dips mentality, leading investors with dry investing powder to wait on the sidelines for now.

6 ​ . There is less confidence that central banks—repeatedly the markets’ best friends—can act as immediate and effective stabilizers. Moreover, the Federal Reserve’s minutes released on Wednesday—in which the central bank had no choice but to seem wishy-washy—highlights the policy challenges in a world that has come to over-rely on central banks. Indeed, the cult of central banks has driven a wedge between asset prices and economic fundamentals.

Yes, t he People’s B a n k of China could loosen monetar y policy; and, yes, the Fed could hold off hiking rates in September. But the impact on global growth would likely be limited, unless these steps are accompanied by a more comprehensive policy response.

Otherwise, prices need to fall a lot more before wary investors get off the sidelines.

Opinion BusinessMirror

opinion@businessmirror.com.ph

The human ‘superpredator’ is unique and unsustainable

Election 101

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f you’re looking for the world’s top “superpredator,” look no further than your own reflection. A new study that examined more than 2,000 predator-prey interactions in populations around the globe has found that humans don’t only kill top carnivores at a rate far higher than all other top predators combined, but that our particular hunting behaviors are so devastating to species on land and sea that they challenge these populations’ ability to recover—and, in some cases, could alter the course of their evolution.

“Ultimately, humanity is feeling the impacts of our predatory dominance,” said lead author Chris Darimont, a conservation scientist at the University of Victoria.

The findings, published in the journal Science, reveal the extent of the damage wrought by human hunting and fishing practices, and reveal that there might be hope for recovery—if we learn better practices from the same carnivores that we are hunting down.

“We have the unusual ability to analyze and consciously adjust our behavior to minimize deleterious consequences,” Boris Worm of Dalhousie University, who was not involved in the paper, wrote in a commentary.

“This final point, I believe, will prove critical for our continued coexistence with viable wildlife population on land and in the sea.”

Many of the world’s large fish and land-based top predators—your lions, your tigers, your bears—have been on the decline for years, and it’s thought that humans have had a major hand in their downfall. Hunting, along with climate change and human habitat encroachment, all likely play a role.

That’s not a new pattern: Within the last tens of thousands of years, marvelous megafauna—woolly mammoths, saber-toothed cats, giant sloths— roamed the Earth, and many of them began disappearing around the same time humans arrived in their habitats.

To get a better handle on the effect of human hunting, the researchers collected data on 2,125 predator-prey interactions in different populations on land and sea to calculate the rates at which predators exploited their available adult prey — in other words, what share of the adult population they killed each year. These interactions included both human and other natural hunters.

They found that the human take of adult fish each year was a whopping 14.1 times the rate of other marine predators’ take. On land, humans killed top predators at a rate 9.2 times the rate that those top carnivores killed each other.

“We predicted that there would be difference, but we were surprised by the magnitude of that difference,” said Darimont, who also serves as science director of the Raincoast Conservation Foundation in British Columbia.

While other top predators do kill each other occasionally, he added, it’s usually because of competition between members of the same species.

That’s all the more shocking, given that the rate at which humans killed these carnivores was 3.7 times the rate at which they killed herbivores.

Human hunters, it seems, like to specialize in turning other predators into prey.

It wasn’t just the magnitude of the catch or hunt that was the issue—humans have a very different, and problematic, hunting strategy from nature’s other successful hunters. Humans tend to pick out adults rather than younger, smaller, weaker members of a species. In the case of trophy hunting, it’s likely for reasons of prestige—big-game seekers place higher value on killing a larger animal.

“Typically, human hunters remove one in five large carnivores from the planet each year, and that’s kind of spooky because most large carnivores do not have the reproductive ability to withstand that sort of mortality,” Darimont said. “They simply did not evolve as prey.”

In short, these land-based meat eaters can’t make babies that grow into adults fast enough to sustain their population levels. And that’s why humans’ focus on killing adults is so dangerous, Darimont said.

Think of it from a business perspective, the researchers said. An adult female, for example, is like your capital; the young that she produces are the interest generated by that capital. If you kill an adult animal today, it will take years for another to grow up and take her place. But if you kill a young animal, it will (theoretically) take only until the

next breeding season to produce another. In other words, it’s better to use the up interest rather than to draw down the capital, because the capital is much more difficult to build back. Once it’s gone, it’s gone—and so is the interest.

But highly successful hunters, such as fishing birds, naturally draw on the interest, rather than the capital —they actually tend to pick off the young and small of a species, rather than the adults. That’s in part because the young are often easier to catch and eat —and many animals, such as birds, are limited in what they can gulp down by the size of their mouths (known as gape limitation).

Although that may not seem sportsmanlike, it’s actually the reason predators are able to keep prey populations in balance without wiping them out—a lesson humans have yet to learn.

That’s probably what has been happening for the last tens of thousands of years, in fact—and perhaps part of why so many charismatic megafauna that shared territory with humans no longer exist.

“Many vulnerable wildlife species on land have already disappeared during the past 40,000 years in successive waves of extinction on continents and islands that were colonized by people,” Worm wrote.

The loss of these fearsome carnivores is also deeply worrisome to ecologists because top predators play a major role in keeping their ecosystems in balance.

In the case of fishing, fish populations aren’t just dwindling—their “demographics” are changing. In some populations, killing the large adults means that later generations end up smaller when they reach reproductive age, which means they lay fewer eggs that will ultimately hatch more small fish, and so on. This doesn’t just affect the evolutionary track of the fish population—it also affects our future supply of fish.

The solution, the study authors say, is to hunt and fish in ways that are more like our fellow natural predators, who have been hunting sustainably for millions of years: focus on the young, and preserve the large adults, capable of bearing more offspring. In other words, preserve the capital.

“We reason that natural predators, which almost never cause prey to decline rapidly…are the only true models of long-term sustainable exploitation,” Darimont said. “In that respect, they can provide us some behavioral guidance.”

Changing the practices of some fisheries may help to bring declining populations back from the brink. But for land-based predators, it’s probably best not to kill them in the first place, Darimont said.

“No matter how you slice it—pardon the macabre pun—hunting large carnivores that have not evolved as prey is a dangerous thing to do,” he said. “They just cannot withstand much mortality…large carnivores are so sensitive to habitat disturbance and human activity that they’re best left alone if we want future generations to see them.”

The scientist recommended compensating livestock owners when one of their animals is killed by a wild animal so that they’re less motivated to go out and kill the offending meat-eater. In terms of trophy hunting, many countries use what’s called a “sustainable” model, where the money that big-game hunters spend in a country is said to go back to the local communities. But the scientist argued that ecotourism—sans bloodshed—could be an equally lucrative way to exploit those natural resources while not drawing them down.

“Ecotourism, specifically wildlife ecotourism, is the fastest-growing segment of the tourism market,” Darimont said. “You can make as much or more money from shooting large carnivores with cameras, not guns.” TNS

Atty. Lorna Patajo-Kapunan

S

legally speaking

uffrage, or one’s right to vote, is known to be the utmost equalizer in a democratic society. No matter what one’s stature in life is, whether you are a top executive of a multinational company or a simple tambay, come election time, you are entitled to cast your one vote.

In less than a year, this country will once again witness one of the most important exercises in a democratic society that occurs every six years—the presidential elections. At the moment, we are assured of two gentlemen who have declared their intention to vie for the highest position in the government – the presidency. In the days to come, we can expect other aspirants to join this hullabaloo.

As we approach the May 9, 2016, elections, allow me to enlighten our readers on some issues that affect both the candidates and voters during this season.

Filing of COC of appointed and elective officials

From October 12 to 16, candidates for the 2016 polls will file their certificates of candidacy (COC). When an appointed official files his/her COC, he/she is deemed ipso facto resigned from his/her position (Section 66 of the Omnibus Election Code [OEC]). Meanwhile, when an elective official, whether national or local, files his/her COC, he/she is not deemed to have resigned (Section 14, Fair Election Act which repealed Section 67 of the OEC). So, when Secretary Mar Roxas files his COC for presidency in October, assuming he has not resigned by then, he will be deemed ipso facto resigned from his position as secretary of the Department of the Interior and Local Government. However, when Vice President Jejomar Binay files his COC, he will not be considered resigned from his post as vice president and will continue to hold his position until after he leaves his post on June 30, 2016.

At first glance, it appears that the

distinction between the effect of the filing of COC of an appointed official and an elected official is violative of the equal protection clause enshrined under the Constitution. However, as ruled by the Supreme Court in the case of Quinto v Comelec (GR 189698, February 22, 2010), the equal protection of the law clause in the Constitution is not absolute, and is subject to reasonable classification. There exist substantial distinctions between elective officials and appointive officials. The former occupy their office by virtue of the mandate of the electorate where they are elected to an office for a definite term and may be removed therefrom only upon stringent conditions. On the other hand, appointive officials hold their office by virtue of their designation thereto by an appointing authority, where some may hold a permanent capacity and are entitled to security of tenure, while others serve at the pleasure of the appointing authority. Also, under the Administrative Code of 1987, appointive officials are strictly prohibited from engaging in any partisan political activity or to take part in any election except to vote, which is not the case for elective officials.

Campaign period and premature campaigning

Under the OEC, the campaign period for the presidency and the vice presidency is 90 days, which does not include the day before the election and election day itself. The campaign period for the 2016 presidential elections starts on February 9, 2016 and ends on May 7, 2016.

It is unlawful for any person or party to engage in election campaign or partisan political activity

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except during the campaign period, otherwise they may be accused of premature campaigning. However, it is undeniable that in this country, even prior to the campaign period, some aspirants have already made their intentions known to the electorate, either explicitly or impliedly.

It is, therefore, just a matter of being creative and how to go around said prohibition.

It is a normal sight when election day is nearing that some government officials-cum-aspirant candidates advertise their so-called office’s/ department’s programs on national television or radio using public money. They are not anymore deterred by the Commission on Elections warning on premature campaigning since the same has been rendered inutile when the Supreme Court rendered a decision in the case of Penera v Comelec, (G.R. 181613, November 25, 2009) stating that only after the aspirant officially becomes a candidate, at the start of the campaign period, can it be said that he/she is doing premature campaigning.

Technically speaking, those television and radio advertisements as early as now, cannot be considered premature campaigning since these aspirants are not yet considered candidates for not having filed their COCs yet.

Disqualification of a nuisance candidate

Not all are entitled to run for a public office. A person who files a COC to put the election process in mockery or disrepute or to cause confusion among the voters or which clearly demonstrate that the candidate has no bona-fide intention to run for the office will be considered a nuisance candidate and be disqualified to run (Section 79, OEC).

During the last election, a person by the name of Juanito Pepito Cayetano was declared a nuisance candidate after Sen. Peter Cayetano questioned his intention to run for senator. If Juanito Pepito Cayetano, who declared his nickname to be “Peter”, was not disqualified, all “Cayetano” votes would have been declared invalid.

The disqualification of a nuisance candidate is a reflection that no one is allowed to disrespect the election

process and interfere with the true will of the electorate.

Limitation on election expenditure

The limitation on election expenditure appears to be an unserious matter until after Gov. ER Ejercito was unseated as governor of Laguna for overspending during the 2013 midterm elections. Who would have thought that after all these years, there will come a time that the Comelec would divest an elected official of his office due to overspending?

Under Republic Act 7166, the aggregate amount that a candidate or registered political party may spend for election campaign is P10 for president and vice president and P3 for other candidates, for every voter currently registered in the constituency where he filed his COC. For a candidate without a political party, he may be allowed to spend P5 for every voter. This has been in effect since the enactment of the law in 1991. Although this has been in effect for more than two decades now, candidates are still mandated to abide by these limitations. Otherwise, they may suffer the same fate as the governor.

If there is anything good at all that election brings, aside from it being the embodiment of a true democracy, election spending will add more money to the economy. There will be an influx of money coming from campaign expenditures ranging from candidates’ television, radio and print advertisements, printing of election banners and streamers and other paraphernalia. According to the Comelec, as of July 2015, there are 50 million registered voters for the 2016 polls. With this alone, we can expect P500 million to enter the economy.

In the end, regardless of how much capital the election contributes to the economy, we should all be grateful for the opportunity to choose the next leader of this country.

Let us vote wisely.

Just remember what President Theodore Roosevelt said: “A vote is like a rifle: its usefulness depends upon the character of the user.”

The future of this country lies in the hands of the electorate and our wisdom to choose the right leader.

FDA approves first drug to improve libido for women

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fter clearing the way for Viagra and more than two dozen other treatments to enhance the sex lives of men, the US Food and Drug Administration (FDA) on Tuesday gave its blessing to the first medication designed to increase sexual desire in women.

The FDA’s approval of flibanserin reverses two earlier rejections of the pill as a treatment for hypoactive sexual desire disorder, or HSDD. The decision follows a public campaign challenging the agency to close a yawning gap between the number of drugs available for men’s sexual health and those available to women.

The approval of flibanserin, which will be marketed as Addyi, offers women distressed by their low sex drive a oncea-day salmon-colored pill. Clinical trials presented to the FDA showed that compared to pre-menopausal women who got a placebo, those who took flibanserin reported a modest but measurable rise in sexual desire and increased their number of “sexually satisfying encounters” by roughly one per month, from a median of two to three to between two-and-ahalf and four.

In tests, the most common side effects of the drug included dizziness, sleepiness, nausea, fatigue and insomnia. Addyi should be taken at bedtime to reduce these risks, the FDA said.

Researchers estimate that about 8.3 percent of women between 30 and 70 in the United States suffer distress from lack of sexual desire. The condition, only recently deemed a medical disorder, appears to peak between the ages of 40 and 60.

While many of those women may seek prescriptions for Addyi, the FDA said the drug could be marketed as safe and effective only for patients who had not yet reached menopause. For most women, that happens when they are in their late 40s or early 50s. However, once a drug wins FDA approval, doctors are free to

prescribe it to patients as they see fit.

Addyi acts to increase the activity of the neurochemical serotonin in the brain. It was initially developed as an antidepressant, then abandoned by the German drug company Boehringer Ingelheim for lack of effectiveness. The mechanism by which the drug improves female sexual desire — a hugely complex confluence of hormones, mood, circumstance and physiology—is not known.

Sprout Pharmaceuticals, which bought the rights to flibanserin in 2011, said it plans to make Addyi available to patients starting mid-October. Gynecologists are expected to be the main prescribers, but it could also be offered by primary care physicians and mental health professionals who specialize in sexual health.

Cindy Whitehead, chief executive of the Raleigh, North Carolina, company, said Addyi would be priced so that women with insurance coverage could get a one-month supply with a copayment of between $30 and $75 per month.

That would make the drug as financially accessible to women as most erectile dysfunction drugs are to men, she said.

Sprout’s bid to get flibanserin approved on its third try has stirred controversy and debate among doctors, feminist groups, consumer advocates and researchers specializing in female sexuality.

A campaign called “Even the Score” has charged that gender bias at the FDA has left women with sexual problems stranded, while some 26 products for men have been waved through the approval process since Viagra was approved

in 1998. The lobbying campaign was launched and largely funded by Sprout but joined by many women’s health advocates and consumer groups who got members of Congress to send the FDA letters in support of the drug.

Among Addyi’s supporters was Amanda Parrish, a 52-year-old resident of Brentwood, Tennessee, who tested the drug in an early clinical trial. She said it was “patronizing” to deny women the right to decide what risks they would be willing to take to restore their sex drive.

“We live in a huge double standard world, and I do think the FDA has set a different standard for women,” Parrish said.

Dr. Maureen Whelihan, a Florida gynecologist who specializes in treating women with low libido, said the FDA’s action was important because it recognizes the need for drugs designed for women.

“This opens a big door to research on women’s’ sexual dysfunction coming down the pike,” she said.

Until now, doctors have had few options beyond recommending counseling, psychotherapy, and the off-label usage of testosterone and estrogen therapy.

In clinical trials, as many as half of women taking Addyi failed to respond to the medication. But for those who do, Whelihan said, even one additional satisfying sexual encounter a month can be “hugely impactful, because like many things, once you have more of something you like, you want more.”

But others complained that all the lobbying had the potential to overshadow concerns about the drug’s safety. Dr. Adrian Fugh-Berman, director of Georgetown University’s pharmaceutical watchdog project PharmedOut, told an FDA advisory panel in June that “to approve this drug will set the worst kind of precedent—that companies that spend enough money

can force the FDA to approve useless or dangerous drugs.” The panel voted 18-6 to recommend the drug.

Last month three members of that advisory panel fretted in the pages of the Journal of the American Medical Association that the agency was forced to adjudicate questions about Addyi’s safety and effectiveness in a “politically charged atmosphere.” The FDA acknowledged it had lingering questions about Addyi’s safety. Concern has largely centered on its potential for inducing dizziness, lightheadedness or fainting caused by a sudden drop in blood pressure. That danger appears greatest when those taking the drug are heavy consumers of alcohol, or take CYP3A4 inhibitors, a class of drugs that includes several antifungal medications, antibiotics, HIV drugs and some bloodpressure medications.

“Because of a potentially serious interaction with alcohol, treatment with Addyi will only be available through certified health-care professionals and certified pharmacies,” said Dr. Janet Woodcock, director of the FDA’s Center for Drug Evaluation and Research. “Patients and prescribers should fully understand the risks associated with the use of Addyi before considering treatment.” The FDA will require a boxed warning to highlight these risks. At the same time, Woodcock sought to counter charges of gender bias in the drug-approval process.

“The FDA strives to protect and advance the health of women, and we are committed to supporting the development of safe and effective treatments for female sexual dysfunction,” she said in announcing the agency’s decision.

Parrish said she is eager to get back on a drug that “truly did restore my interest in sex. I wanted to get on the rooftop and shout about it.” TNS