BusinessMirror October 16, 2015 by BusinessMirror

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Thursday 2014 16, Vol. 102015 No. 40Vol. Friday,18, October 11 No. 8

‘OFW remittance drop no cause for concern’

spielberg: Childhood memories, pope francis and a ‘bridge of spies’

LIFE

By Bianca Cuaresma

ash sent home by Filipinos abroad contracted for the first time in 12 years in August, although economists said this is not a cause for concern yet, as seasonality could be in play.

INSIDE

Data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed cash remittances from overseas Filipino workers (OFWs) declined by 0.6 percent in August to $2.044 billion. This is lower compared to the previous month’s inflows at $2.078 billion and August 2014’s $2.054 billion. From January to August, however, cash-remittance growth remained in the positive territory at 4.1 percent to $16.2 billion. The BSP did not readily give an explanation on the drop in cash sent home by OFWs. Economists,

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however, said the fluctuations in remittances are normal, since the level has plateaud for now. “There is no major long-term changes in the movement of overseas workers, so as of now, I think, we are still on course to hit the 5-percent target at the end of the year,” said Alvin Ang, professor of economics at the Ateneo de Manila University. He said the bulk of remittances will still come in the fourth quarter, and, as long as there is no prolonged Middle East issues, any decline in the previous months would still be compensated by the inflows in

October-to-December period. Benjamin E. Diokno, former budget secretary and professor at the University of the Philippines School of Economics, said the decline in August was just a temporary blip. “It should not be a cause for concern; probably they [OFWs] are just saving for the holidays,” he said, noting that the country’s gross international reserves are still good for one year. This is the first drop in cash remittances on a yearly basis since April 2003, when the money sent home by OFWs fell by 10.9 percent. But the growth of monthly remittances has been relatively shaky in 2015. On a month-on-month basis, growth hit a low of negative 0.6 percent to a high of 11.3 percent in the first eight months of the year. This is contrary to the growth pace seen in 2014, which settled mostly on the 5 percent-to-8 percent range. Last month BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said the recent slowdown in remittances—most

Chinese military reaches out amid South China Sea tensions

In this file photo, an aerial photo taken through a glass window of a military plane shows China’s alleged ongoing reclamation of the Mischief Reef in the Spratly Islands in the South China Sea. As expectations grow that the US Navy will directly challenge Beijing’s South China Sea claims, China is engaging in some serious image-building for its own military by hosting two international security forums beginning on Friday. Ritchie B. TongoPool Photo via AP

EIJING—As expectations grow that the US Navy will directly challenge Beijing’s South China Sea claims, China is engaging in some serious imagebuilding for its own military by hosting two international security forums this week. The events kick off on Friday with an informal meeting of defense

ministers from the 10-member Association of Southeast Asian Nations, known as Asean—four of which exercise claims to seas and islands in the South China Sea that clash with Beijing’s own. It is the first time China has hosted such a meeting. That will be followed by the Xiangshan Forum, at which analysts, See “Chinese military,” A2

See “Remittance,” A2

Onboard the British Leaper

MOTORING

love the luv: Suzuki ertiga

MOTORING

NETWORKING WITH BRITISH FIRMS British Deputy Ambassador Nigel Boud delivers his opening remarks at the networking reception for the UK Telecommunications and Broadcast Mission in Makati City. British firms are currently in Manila to explore projects and partnerships in the vibrant telecommunications and media sectors in the Philippines. These companies can provide telecommunication technologies and solutions that would help address the growing needs of the Philippine market, including information technology-enabled industries, service sectors and the over 100 million mobile subscribers across the country. ROY DOMINGO E2-E3

MPIC expects strong returns from ₧326.52-M Indra deal By VG Cabuag

BusinessMirror media partner

etro Pacific Investments Corp. (MPIC) on Thursday said it is acquiring the stake of power distributor Manila Electric Co. (Meralco) in Indra Philippines Inc., a local unit of a Spanish technology firm. The company said in its disclosure to the Philippine Stock Exchange that it is buying Meralco’s 84,012 common shares, or about 24.95 percent, in Indra for P326.52 million. The acquisition was approved by MPIC board

PESO exchange rates n US 46.0920

way back on December 19 last year. “Indra has worked on a number of large systems projects for various MPIC portfolio companies. MPIC is now seeking to further commercialize the expertise developed as part of these projects,” the company said. “This will be a modest investment for MPIC, [which is] expected to yield strong returns serving business and government sectors that MPIC is already familiar with. Economic benefits are expected to accrue to MPIC as a shareholder of Indra Phils., as [it] expands its See “MPIC,” A2

n japan 0.3878 n UK 71.3366 n HK 5.9473 n CHINA 7.2612 n singapore 33.4485 n australia 33.4898 n EU 52.8906 n SAUDI arabia 12.2958

Source: BSP (15 October 2015)

News

BusinessMirror

Friday, October 16, 2015

Wind-power projects get lower guaranteed rate T By Lenie Lectura

MPIC. . .

Continued from A1

business in the Philippines and in Southeast Asia,” it added. Indra Phils. is a unit of Spain’s Indra Sistemas, S.A., which claims to have knowledge, experience and track record in the information-technology (IT) business all over the world. Indra has been operating in the Philippines for the past 18 years and is a provider of IT solutions to various businesses and industries in the Philippines, with engagements in utilities and telecommunications, financial services and public administration. MPIC holds a 32.48-percent stake in Meralco. It said the price was deter-

Remittance. . .

news@businessmirror.com.ph

mined after a valuation process conducted by CLSA as an independent third-party appraiser. MPIC Chairman Manuel V. Pangilinan earlier said the MPIC is already using the services of Indra’s services for its water, hospitals and tollways units. Indra’s parent is one of the parties that submitted its bid for the Commission on Elections Voter Verification Systems to be used for the upcoming elections. MPIC earlier said it had a consolidated core net income of P5.9 billion for the first six months of the year, some 27 percent higher than the P4.6 billion last year.

Continued from A1

evident in the first eight months of the year—is a sign that the remittance business is reaching its so-called maturity stage. Guinigundo said remittances being “more mature” in the cycle means that the previously high-growing foreign-exchange inflows in the country already had a high base because of the years of expansion, making it harder to sustain. He also reiterated during that time that the BSP’s growth assumption of 5 percent to 6 percent remains “appropriate.” Cash remittances from land-based and sea-based workers totaled $12.4 billion and $3.8 billion, respectively. The bulk of cash remittances came from the United States, Saudi Arabia, the United Arab Emirates, the United Kingdom, Singapore, Japan, Hong Kong and Canada. “The steady deployment for OFWs continued to provide support to remittance inflows,” the BSP said, noting preliminary data from the Philippine Overseas Employment Administration (POEA) The central bank said data from the POEA showed that for the January–to-August period, total job orders reached 584,816, of which 41.5 percent were processed. These job orders were intended mainly for service, production and professional, technical and related workers in Saudi Arabia, Kuwait, Qatar, Taiwan and Hong Kong. Personal remittance—or the remittances both in cash and in kind —hit $17.9 billion in the first eight months of the year. With Cai U. Ordinario

HE feed-in tariff (FiT) rate for windpower projects has been adjusted to P7.40 per kilowatt-hour (kWh) to accommodate the increased capacity allocation from 200 megawatts (MW) to 400 MW, an official of the Energy Regulatory Commission (ERC) said on Wednesday night.

“We already approved the amount of P7.40 per kWh for wind FiT2 during our October 6 Commission meeting. It’s lower by P1.13 per kWh compared to the wind FiT1 of P8.53 per kWh,” ERC Chairman Jose Vicente Salazar said. The FiT1 rate for wind projects was linked to a 200-MW installation target issued by the Department of Energy. This was later increased to

400 MW, as the total capacity of wind projects built and commissioned, or to be commissioned, within the year now exceeds 200 MW. Hence, the need to consequently adjust the FiT rates. It is the National Renewable Energy Board (NREB) that applies for adjusted FiT rates for renewable energy (RE). The NREB is the body tasked by

Chinese military. . .

military leaders and others from around the globe will grapple with Asian-Pacific security, maritime issues and antiterrorism. “China wants to use these sorts of forums to promote China’s views, explain China’s policies and improve China’s security image,” said Regional Security expert Li Mingjiang of Singapore’s Nanyang Technological University. Since 2013, China has accelerated the construction of new islands atop reefs and atolls in the South China Sea and is adding buildings and airstrips in apparent attempts to boost its sovereignty claims to the territory. Unnamed Pentagon officials said last week that the US Navy may soon receive approval to sail a ship inside the 12-nautical mile (21-kilometer) territorial limit surrounding China’s man-made islands, reported the Navy Times, which is closely affiliated with the US Navy. Asean member Philippines expressed support this week for such a move. Sailing within the 12-mile (21-km) boundary would mark the first time the US has directly challenged China’s territorial claims since 2012, and reinforce Washing-

Continued from A1

ton’s assertion that the land reclamation does not add sovereign territory. The US and its allies, including the Philippines, insist that the newly made islands threaten stability in an increasingly militarized region. Chinese Foreign Ministry Spokesman Hua Chunying said on Wednesday the artificial islands were created for the public good and have“nothing to do”with militarization. China has also sparred with Vietnam, another Asean member, over ownership of the Paracel island group, leading to a weekslong confrontation last year, when Beijing moved a massive oil drilling platform into contested waters. On Thursday Vietnam accused China of sinking one of its fishing boats near the disputed islands. The incident was apparently motivated by a desire to steal the ship’s catch of fish and put it out of commission. There was no immediate evidence that any Chinese government ships were involved, although Beijing’s aggressive actions are believed to embolden Chinese fishermen in the area. AP

the Renewable Energy Act of 2008 to recommend policies, rules and standards to govern the implementation of the law, which granted fiscal and nonfiscal incentives to RE projects. The NREB initially applied for a rate of P9.49 per kWh but later revised the proposed rate to P7.93 per kWh for the second batch of wind-power projects that has been commissioned, or are to be commissioned, within the year totaling to 393 MW. “The recommended rate of NREB is P7.93 per kWh but we adjusted the same to P7.40 per kWh,” the ERC official added. The NREB assumed that the other wind projects that would be eligible under the second round of FiT are Trans-Asia Renewable Energy Corp.’s 54-MW Guimaras wind project; PetroWind Energy Inc.’s 36-MW Nabas wind farm; and Alternergy Wind One Corp.’s 54-MW Pililla wind project.

FiT is the per kWh rate guaranteed to RE developers to ensure the viability of their projects. Consumers are the ones who shoulder this under FiT-Allowance, a separate line component in the power bills. They are now paying an additional P0.0406 per kWh since February. The FiT rate for solar technology was also adjusted early this year to P8.69 per kWh from the original P9.68 per kWh after the capacity allocation was hiked to 500 MW. The wind power projects that have certificates of compliance under the FiT scheme were identified as the 150-MW Burgos wind farm of Energy Development Corp.; the 19.8MW Bangui expansion of Northwind Power Development Corp.; and the 81-MW Caparispisan project of North Luzon Renewable Energy Corp. Under the FiT scheme, RE developers will dispatch the electricity generated by their projects at a premium rate over a period of 20 years.

briefs ➜FPI REGISTERED

NET OUTFLOW IN SEPT

Global volatilities continued to register in the local scene as shortterm investments made by foreign investors were largely pulled out of the country in September, central bank data showed. The Bangko Sentral ng Pilipinas reported on Thursday that the country’s foreign portfolio investments (FPI) hit a net outflow of $324 million in September this year. T h i s com me nce d , a s t he $1.367-billion total inflows for the entire month of September failed to cover for the $1.691-billion total outflows for the period. The larger outflow during the month was blamed on “profit taking and continued concerns on the slowdown of the Chinese economy and its impact on the global market.” Bianca Cuaresma

➜FRESH P25.86-B PPPs

EARN ICC-CC’S NOD

The interagenc y Investment Coordination Committee-Cabinet Committee (ICC-CC) has recently approved P25.86 billion worth of public-private partnership (PPP) projects. The PPP Center disclosed the approved PPP project are the P14.721-billion Batangas-Manila 1 Natural Gas Pipeline project of the Philippine National Oil Co.; P9.39-billion Plaridel Bypass Toll Road of the Department of Public Works and Highways; and the P1.75 billion Philippine Travel Center Complex. “After the ICC-CC approval, the projects are set for Neda [National Economic and Development Authority] Board, which is chaired by President Aquino,” the PPP Center said. Cai U. Ordinario

The Nation

Editor: Dionisio L. Pelayo

BusinessMirror Friday, October 16, 2015 A3

DILG tells LGUs to prepare for typhoons, calamities

By Rene Acosta

NTERIOR Secretary Mel Senen S. Sarmiento has ordered all local government officials to come up with their own early-preparedness plans in response to typhoon and other calamities, as the country has experienced increased and more severe disasters over the past years.

In a directive issued to all provincial governors, city and municipal mayors and even barangay chairmen, Sarmiento said early-preparedness actions include creating necessary systems and structures; institutionalizing policies and plans; building competencies and prepositioning equipment and supplies. “Ngayon pa lang ay dapat handa na tayo sa anumang sakuna at sa panganib na dala nito,” said Sarmiento, vice chairman for Disaster Preparedness of the National Disaster Risk Reduction and Management Council (NDRRMC). He said an incident command system should be established in every local government units (LGUs) which will be activated in response

to disasters, and LGUs should hire one local disaster risk-reduction and management (DRRM) officer and three DRRM staff, including barangay DRRM committees. The secretary said local executives should also prepare, review and update their contingency plans which include the activation of early-warning system, activation of predesignated evacuation centers, evacuation routes and map, search and rescue, emergency response, medical and counseling services, distribution of relief goods and evacuation center management. Sarmiento urged the LGUs to review their protocols and policies and issue an executive order resolution or pass an ordinance to institutionalize preemptive and forced evacuation

when a disaster or emergency has been declared and danger of loss of lives is imminent. “Kailangan din ang communitybased DRRM training, simulation exercises at evacuation drills sa bawat barangay upang masanay sapaghahanda sa sakuna, maging hanggang sa ng mga tahanan o household level,” he said. Sarmiento directed local officials to stockpile basic emergency equipment and supplies, purchase and maintain water level and rain gauge stations, and ensure the installation of signages and markers in identified hazard and danger zones in coordination with concerned agencies. In order to effectively implement the early-preparedness actions, he said LGUs may utilize 70 percent of their local DRRM fund pursuant to an NDRRMC, the Department of Budget and Management, and the Department of the Interior and Local Government Joint Memo Circular issued earlier on the allocation and use of the DRRM fund. Sarmiento also advised the LGUs to use the Operation Listo and other disaster manuals published by the DILG, including the “Early Preparations for Mayors” and “Critical Preparations for Mayors” as well as “a checklist for MLGOOs, COPs, and FMs” for further guidance on the minimum actions to do before, during and after a typhoon.

BOC turns over ₧100-M banned drugs seized in May, July to PDEA By Joel R. San Juan & Recto Mercene

OME P100 million worth of prohibited drugs, impounded by the airport Customs bureau on two separate occasion in May and July this year, were presented to Commissioner Alberto D. Lina, after the owners failed to claim them. Ninoy Aquino International Airport District Collector Edgar Macabeo said the hot items came in 18 boxes from Pakistan and India, and declared as pharmaceutical drugs and medicines. The breakdown includes 100,000 tablets of Cytotec; 31,014 capsules of Valium 10 mg; 27,000 tablets of

Zolmux; 24,000 tablets of Ritalin; 27,492 tables of Alprazolam; and 7,000 of Ambin 10mg tablets. Cytotec is a medication intended to treat stomach ulcers. However, it also can also induce abortion, hence, prohibited by the Philippine Food and Drug Administration. Alprazolam and the rest are classified as dangerous drugs under Republic Act 9165 and, therefore, importation permit is needed from the drug enforcement agency. Macabeo said the importation arrived at the Post Office and Miascor warehouse on May 24 and July 15 using fictitious recipients such as Jimmy Carter, Richo Marketing and Joey Requengco.

“We waited for five many months for the claimants to appear so we can arrest them, but probably they were alerted by informants,” Macabeo said. Lina congratulated Macabeo and his officials for the confiscation of the drugs. “Many thanks to all of you, those prohibited drugs would no longer reach the black market,” Lina said. Lina added that the victims of these drugs would probably be the well-off because a tablet of Cytotec, which had to be prescribed by a doctor, costs P500. The drugs were turned over to the Philippine Drug Enforcement Agency (PDEA) regional director, Erwin Sangre Ogario.

Comelec urged to extend voter registration to January 8, 2016

PARTY-LIST lawmaker on Thursday asked the Commission on Elections (Comelec) en banc to extend the voters registration period until January 8 next year. In two separate communications sent to Comelec, Party-list Rep. Terry Ridon of Kabataan also asked poll body to provide local absentee voting to business-process outsourcing (BPO) workers. Ridon requested for the extension of the voter registration period from October 31 stipulated in Comelec Resolution 9853 to January 8, 2016. He said that the date is “the maximum mandated period under Republic Act (RA) 8189, otherwise known as “The Voters Registration Act of 1996.” Section 8 of RA 8189 states, “The personal filing of application of registration of voters shall be conducted daily in the office of the Election

Officer during regular office hours. No registration shall, however, be conducted during the period starting 120 days before a regular election and 90 days before a special election.” He also cited the Supreme Court case Palatino v Comelec (G.R. 189868), wherein the high court stated that there is no conflict with the mandate of continuing voter registration under RA 8189 and the authority of the Comelec under RA 6646 and RA 8436 to fix other dates for preelection acts. “In fact, the Court in Palatino v Comelec found no ground to hold that the mandate of continuing voter registration cannot be reasonably held within the period, provided by RA 8189, Section 8, daily during office hours, except during the period starting 120 days before the May 10, 2010 regular elections,” Ridon said. Palatino vs Comelec was a case won by former Party-list Rep.

Raymond Palatino of Kabataan back in 2009, which led to the extension of the voters registration period for the 2010 elections. In a separate letter to the Comelec, Ridon also requested the poll body to issue a resolution that will allow special elections for BPO workers, similar to the local absentee voting granted to mass media practitioners. Ridon said several BPO workers’ groups, including the BPO Industry Employees Network, have expressed concern over the fact that BPO employers “disregard Philippine holidays, which include May 9, election day,” thus, denying BPO workers their right to suffrage. “It is the fervent wish of this representation that the Comelec attend to the urgent plea of BPO workers,” Ridon said, noting the BIEN estimates that a million BPO workers might be disenfranchised in the coming 2016 elections. Jovee Marie N. dela Cruz

Gencar

th An

37 YEAR

A BusinessMirr

Friday, October 16, 2015 | www.businessmirror.com.ph

POPEMOBILE CROWNS GENCARS’ 37TH YEAR

By Ivee L. Johnson

HE Philippines continues to enjoy a robust economy, with various sectors contributing to its steady growth and continued progress. Among the industries that have been performing well since last year is the local motor vehicle manufacturing, which posted a year-on-year growth of 18.5 percent as of July this year, according to the Chamber of Automotive Manufacturers of the Philippines, Inc., or CAMPI. Gencars, Inc. takes part in this triumph by the local auto industry not only through its outstanding performance in sales but also through the important role that it played during the visit of His Holiness Pope Francis to the Philippines early this year. Celebrating “37 Years of Innovation and Excellence,” Gencars had a great start of the year when it provided the Popemobile used by Pope Francis in going around Manila during his January visit. The company donated the Isuzu D-Max unit that was customized with the help of Almazora Motors to meet strict Vatican standards, and at the same time add a Pinoy touch to its overall design. “We considered it a great privilege and a blessing to be asked to do-

nate the Popemobile. We were able to serve His Holiness, and while doing so we also managed to prove our commitment to excellence and innovation,” D. Edgard A. Cabangon, Gencars managing director said, adding that the Isuzu Popemobile, which the Pope himself commended, saying it was a “beautiful car,” is also proof that Filipinos are definitely capable of building world-class vehicles. Because of the outstanding quality of the Filipino-made Isuzu Popemobile, the pope has requested another one to be brought to the Vatican so he can use it in his official visits to other countries, a request that was graciously granted by the Cabangon family. After making the necessary arrangements, another D-Max unit donated by Isuzu Gencars was customized with the help of the Almazora Group. This second Isuzu Popemobile, which was airlifted to Rome, Italy on June 30, was officially turned over to His Holiness by members of the Cabangon family, headed by D. Edgard A. Cabangon, during a special

THREE GENARATIONS OF CABANGON Ambassador Antonio L. Cabangon-Chua (Center), with his

son D. Edgard A. Cabangon (extreme right) and grandson AC Cabangon (second to the right), personal encounter with Pope Francis during the Papal visit in the Philippines slated from January 15 to 19.

audience with Pope Francis at the Vatican on October 14, 2015. The simple but innovative and practical design of the Gencars Popemobile has also become the basis of other countries in making their own popemobile. Meanwhile, the original D-Max Popemobile that Pope Francis used during his Philippine visit is now being kept at the Apostolic Nunciature in Manila. Indeed such opportunity to serve the highest leader of the Catholic Church is a victory for the company, whose mission is “to be

one of the best dealers in the motor vehicle industry, commit to market only the best Isuzu products, and to provide quality service to achieve complete customer satisfaction.” Gencars has been successfully fulfilling this mission for 37 years now, through its 5-star service shop that provides only the best after-sales assistance to its valued customers. Rendering of such excellent service is made possible by the service shop’s pool of competent mechanics, whose skills are periodically enhanced to make sure their knowl-

D. EDGARD A. CABANGON (right), managing director of Gencars, Inc., hands a miniature model of the Isuzu D-Max Popemobile to Pope Francis during the ceremonial turnover of the vehicle to the Pope. Looking on are other Vatican officials.

edge of car care and repair remains up-to-date. Gencars’ automotive repair shop is also equipped with modern facilities, such as a wonder laser with television monitor for computerized wheel balancing, two huge painting ovens, and a computerized wheel alignment system. Maintenance and upgrading of these equipment are also done regularly to make sure they stay in top condition and to guarantee uninterrupted service to Gencars’ patrons. Today Gencars proudly maintains its role of being a major player

in ensuring that Isuzu remains the leading provider of diesel enginepowered vehicles in the country, particularly the light-duty trucks. As it continues to soar in the local vehicle manufacturing business, Gencars will also continue to abide by the standards of excellence set by its founder, Amb. Antonio L. Cabangon Chua, whose vision of giving only the best products and after-sales services to the Filipino motorist, has been fuelling the company since it was founded on October 16, 1978.

rs , Inc .

Anniversary

R S O F I N N O V AT I O N A N D E X C E L L E N C E

ror Special Feature

www.businessmirror.com.ph | Friday, October 16, 2015

DETERMINED TO GET BIGGER ISUZU BATANGAS

ISUZU SAN PABLO

Message O

UR theme for this milestone, “37 Years of Innovation and Excellence,” fittingly expresses the spirit that has guided and sustained the growth and stability of Gencars over the 37 years of its existence. In the beginning, our pioneering leaders, led by our Founder and Chairman Emeritus Ambassador Antonio L. Cabangon Chua, dreamed of bringing about something new and better in the Philippine automotive industry. Establishing Gencars in 1978, they made available for the country’s development needs the powerful and durable Isuzu vehicles. Proving that Gencars has been making the right moves are the thousands of Filipino motorists who have happily embraced the motoring experience it provides through its products and services. Coupled with the spirit of innovation is our persistent commitment to excellence in products and services. Commitment that started from our heart, has been tested by the years, and resulted in achievement. Gencars holds today the distinction of being a leading automotive distributor because it lives up to its commitment to excellence through all these 37 years. Management is aware that we owe our success to the support and cooperation of the officers and staff, sales and marketing personnel, the hard-working service crew and technicians of Gencars, Inc. On behalf of our Founder and Chairman Emeritus, Ambassador Antonio L. Cabangon Chua, congratulations to all the men and women of Gencars on our 37th anniversary.

D. EDGARD A. CABANGON Managing Director ISUZU NAGA

ISUZU MAKATI

NTERNATIONAL financial institutions predict that the Philippines will sustain its economic growth better compared to other Asian countries in the face of economic crises in leading economies like the US and China. Gencars, Inc. shares this optimism as it affirms its commitment to expand to new areas where the market is promising for its excellent diesel-powered cars, vans, trucks and other vehicles as well as its well-

known quality automotive service. As it celebrates its 37th anniversary, moves are ongoing to extend its reach. Expected to open early next year is another branch in Batangas province, where it already has Gencars in Sto. Tomas, Batangas, its very first outlet outside Metro Manila. Gencars Batangas City, which will be the sixth in the Gencars network, will be located on a one-hectare lot located at Diversion Road, Alangilan, Batangas City. The place is known as Automotive

Row in the province of Batangas for being the home of several major automotive vehicle manufacturers. “We have faith that with the country’s improving economy, the outlook is very promising for setting up a new dealership, especially in such a prosperous and progressive place as Batangas City and the province as a whole,” D. Edgard A. Cabangon expressed the company’s optimism. The expansion from the first outlet in Makati began in November 7, 1996, when Gencars opened up its second dealership in Batangas located on a 5,900 square meter lot at Crossing

ISUZU LEGAZPI

in barangay San Roque in Sto. Tomas town, known today as Isuzu Batangas. The dealership provides for the vehicle requirements and the motoring service needs of motor vehicle owners residing in the Southern Tagalog Region which includes Calamba, Batangas, Lucena, Mindoro and Bicol. Isuzu San Pablo City, the company's third outlet opened on June 14, 2001, is situated on a 1,100 square meter piece of land along Colago Avenue, Barangay 1-A, San Pablo City, Laguna. This third dealership caters to the brand-new vehicle requirements as well as the vehicle service needs of Isuzu vehicle owners in Laguna,

Quezon Province and the Bicol Region. Gencars also provided quarterly Special Off-Site Services to Isuzu vehicle owners in the Bicol Region for six years. This was a quarterly caravanstyle on-the-road activity that aimed to allow Isuzu vehicle owners in the region to avail of the world-class diesel vehicle preventive maintenance service and sales of genuine auto parts. On July 17, 2006, Gencars management finally decided to establish its fourth outlet, Isuzu Legazpi at the Ground Floor, ALC Fortune Building, J. P. Rizal Street, Legazpi Port District, Legazpi City, Albay. A fifth outlet, Isuzu Naga, opened on August 8, 2008 at Km. 443 Maha-

rlika Highway Brgy. Palestina Pili, Camarines Sur. Both outlets serve the motoring needs of major establishments in Bicolandia that require an improved mode of transportation with modern facilities for after-sales service and parts. Besides the opening up of new outlets, Gencars has also pursued growth by expanding existing ones. From 1,100 square meters, Isuzu San Pablo now occupies a 2,100-sqm lot, while Naga has expanded from 1,900 sqm to 3,600 sqm. In Metro Manila, Gencars has acquired a 700 sqm lot in Bangkal, Makati City, where it will open a stockyard. This can accommodate more than 50 new vehicles.

A6 Friday, October 16, 2015 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

More questions for the candidates

overnment has an obligation, after it has collected taxes from the people, to spend those funds, providing services and projects that are more effectively accomplished by the public sector. The Aquino administration has failed in some respects to fulfill its duty. But we already knew that.

However, the current administration has successfully continued and built on the accomplishments of the Gloria Macapagal-Arroyo presidency with regard to putting the government’s financial house in order. While there are those who are convinced that the government can do nothing right regardless of who occupies Malacañang, they are wrong. Those who say grudgingly that the Philippine economy is only successful even in small measure because of remittances—which is income to the nation —are economically ignorant. Although it is true that the economy derives substantial benefit from those remittances as it does from outsourcing, income is only part of the economic equation. We all have heard stories of the person who makes a large income, but who is virtually broke due to simply spending too much money. But sovereign governments never go “broke” as we would if our spending was greater than our income. Government has almost unlimited borrowing power. People do not. Until a decade ago, the Philippine government was being strangled with debt. The Corazon Aquino administration was unable to reduce the massive debt burden of the last years of the Ferdinand Marcos presidency as she battled to form a democracy. Then-President Fidel V. Ramos had other priorities, like finding ways to generate enough electricity for the country. The 1997 Asian economic crisis, among other factors, kept the Joseph Estrada administration’s debt burden too large. Only in the last 10 years has the government debt been reduced to levels that have allowed the economy to grow. The vicious cycle of government debt that kills the economic growth potential works like this: Government borrows money that, for whatever reason, is not used properly to create national wealth. The government then raises taxes to pay that debt. Taking more money out of the private sector through higher taxes causes lower economic growth over time, which, in turn, reduces the tax revenue. With lower revenue, government must now borrow even more to support its spending. And the cycle continues to the point, as in the West, that the debt burden, high taxes and lower economic growth spiral out of control. Every time a political candidate offers a wonderful sounding program or project that he or she wants to implement, that person must absolutely and decisively be held to specifically answer these two questions: Will the funding come from existing revenues or must taxes be raised or debt increased to pay for it? How will the program or project provide for eventually increased economic growth? The time must be over for “feel-good” statements and ideas. Any candidate who cannot understand and specifically answer to 21st-century economic realities is unqualified to hold public office. Voters like you must realize this, because the Philippines’s and your financial future is at stake.

On nuisance candidacies James Jimenez

spox

S of this writing, 60 persons have filed a certificate of candidacy (COC) for the position of president; 13 have filed for the position of vice president; and 61 for senator. Some would call this a sign of a vibrant democracy, where citizens feel empowered enough to aspire for the highest offices in the land. Others take a one look at the people filing their COCs, label them nuisances, and call this a symptom of a system run riot, needing desperate change. As hokey as it might sound, I agree with the first idea and roundly reject the second. The ideal democracy—at least to my mind—is the one where literally any person can rise to a position of leadership by way of popular vote. Under such arrangement, the only real determinant of success is the person’s ability to sway other people with his thoughts and ideas; to convince them that he has the ability to secure future prosperity and peace for all; to move the electorate enough that they put his name on the ballot and call him their leader. Reality, however, in the usual way that it intrudes upon perfection, creates a situation where power, wealth and popularity are actually more significant in the process of selecting elective leaders than the candidates’ intellect,

vision or proven ability. The candidates that many of the public now laughingly deride as nuisances represent a denial of this reality, and a determination to run where the brave dare not go. That’s pretty damned inspiring, if you ask me. But then again, not everyone agrees. All some people want is to erect a barrier against these “other” candidates, who have outlandish ideas and notions that fly in the face of reality and common sense. Well, their ideas are outlandish. Which is precisely why laws exist to make sure that the people who espouse these ideas are ultimately not found on the ballot. Section 69 of the Omnibus Election Code states that “the Commission may motu proprio, or upon a verified petition of an interested party, refuse to give due course to, or cancel a certificate of

candidacy if it is shown that said certificate has been filed to put the election process in mockery or disrepute, or to cause confusion among the voters by the similarity of the names of the registered candidates, or by other circumstances or acts, which clearly demonstrate that the candidate has no bona fide intention to run for the office for which the certificate of candidacy has been filed and, thus, prevent a faithful determination of the true will of the electorate.” Let’s unpack that handful. There are three conditions under which a candidate can be declared a nuisance. First, that his COC has been filed to deliberately mock or undermine the election process; second, that his COC has been filed to cause confusion among the voters by the similarity of names of the registered candidates; or that third, his COC has been filed without any good faith intention to run, as shown by other circumstances or acts. Most of the people making headlines now with their COCs would fall in the third category. However, what’s really important to note is the reason the law gives why these people’s COCs cannot be given “due course” or, in plain words, should be rejected. According to the law, these COCs, if allowed to ripen into actual candidacies, will “prevent a faithful determination of the true will of the electorate.” And it’s easy to see why. A candidate who runs to make a mockery of elections obviously has no business participating in such a critical activity, while a proliferation of candidates will,

among other things, fragment the electorate to such an extent that no one candidate can get a decisive plurality, let alone a majority. And, of course, allowing similar sounding names on the ballot might very easily lead to “impostors” siphoning off voters who had not intended to pick them but their namesakes. So, you might ask, if these candidacies are so harmful, why allow these people to file their COCs at all? Again, the answer is in the Code. Elsewhere in Batas Pambansa Blg. 881, the commission is given the ministerial duty of receiving and acknowledging receipt of the COCs. A “ministerial duty” means that the function (receiving the COCs) is performed without the use of judgment (“Should I accept this COC or not?”) by the person performing the act (the Commission on Elections [Comelec]). Bottom line: Sure, there are a lot of filers who fall outside the pale of what most people would consider normal. But what of it? The system in place for dealing with those who submit their candidacy papers is more than equal to the task of weeding out those who have no reasonable expectation of meaningful participation. There is, therefore, no cogent reason for the Comelec to erect a gate where laws and jurisprudence, the Constitution, and the very notion of democracy itself have laid a wideopen road. James Arthur B. Jimenez is director of the Commission on Elections’s education and information department.

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Closing the gender gaps in the Apec Region Boots Geotina-Garcia

Women Stepping UP

he 2014 Global Gender Gap Report by the World Economic Forum (WEF) named the Philippines the best in Asia in terms of women’s rights in education, health, economic participation and political empowerment. It ranked the Philippines as the ninth most gender-equal economy among 142 countries.

Still, there is much work to be done as gender gaps remain in various sectors, including in business. We at the Women’s Business Council of the Philippines (WomenBizPH) are cognizant of this fact, and so we continue to create and identify platforms that will allow more stakeholders to discuss and analyze issues affecting women in business.

A step to closing gender gaps

WomenBizPH was given the privilege of being designated as lead private-sector organization for the Philippines’s hosting of the Apec Women and the Economy Fora 2015 (Apec WEF 2015). Together with the Department of Trade and Industry as chair, under the leadership of undersecretary Nora K. Terrado, and the Philippine Commission on Women (PCW), headed by its Executive Director Emmeline L. Verzosa, WomenBizPH reached out to stakeholders to provide AsiaPacific Economic Cooperation (Apec) delegates and guests opportunities to exchange views and insights on empowerment of women-led micro-, small-and medium-sized enterprises and trade integration. After months of preparations, on September 17, we saw over 800 delegates from 19 Apec membereconomies converge at the PublicPrivate Dialogue on Women and Economy (PPDWE), one of the three components of Apec WEF 2015. The theme of Apec WEF 2015 was “Women as Prime Movers of Inclusive Growth.” During the PPDWE, we listened to and learned from the experiences shared and the wisdom shown by PPDWE’s esteemed resource persons. Our keynote speaker was President Aquino, a champion world leader of the “HeForShe” campaign, a solidarity campaign for gender equality of UN Women.

Technology and women empowerment

AT the forum, we discussed creative “disruptions” resulting from technological advancements. Panelists and guests recognized how these disruptions have changed the way we do business, connect with others, innovate, and build networks and relations. We noted how these create opportunities for women’s increased economic participation. Thanks to technology, more women can now access international markets through e-commerce. Mothers are able to work from home because of virtual office setups and online communication tools. It is also easier for women to build their start-up businesses, because technology helps substantially reduce their capital requirement. The PPDWE recommended the establishment of information and communications technology infrastructure that will connect more businesswomen to customers and markets, value chain support, mentoring and networking initiatives, as well as e-commerce programs. The region was encouraged to create an Apec-wide digital-exchange platform for women-owned enterprises and women suppliers.

The Millennial women

One of the more interesting sessions at the PPDWE featured young woman-entrepreneurs who shared how they became “change agents” in their respective fields. We heard the compelling stories of Kathy, a

serial entrepreneur in China; Anna, an investment expert in Russia; Maria, an advocate and PCW board member; and Victoria, a Canadian social entrepreneur. From them, we saw the youth’s talent, energy, leader-ship and idealism. We also heard the story of Marita Cheng, the genius behind a robotics company in Australia, which is now developing mobile phone-controlled robotic arms. These robots could help people with limited upper mobility in their daily tasks. Many were impressed by her IQ but were also equally inspired by her passion to encourage more women to join the fields of science and engineering.

Invest in education and the youth

Various recommendations at the PPDWE pertained to investing in the next generation of women. Speakers talked about strengthening young women’s capability in the areas of science, technology, engineering and mathematics. They called for a retooling of today’s education system given the rising demand for talents in the fields of information technology, research and innovation. Many speakers also cited the importance of identifying role models who can serve as inspiration for young women in pursuing their goals and objectives. They called for continuous mentorship and training programs on various areas of entrepreneurship and development.

The “bottom of the pyramid” and inclusive growth

Apec recognizes women as prime movers of inclusive growth. At the forum, parallel to recommendations to increase women’s voice and leadership in companies and organizations, we also heard calls for increased empowerment of those who are at the bottom of the pyramid. One of the speakers said the best solutions to poverty are not found in the boardroom, but can be found in the minds of the people themselves. Speakers proposed increasing consultations with lowincome women in order to discover more effective ways of economically empowering them. Another recommendation is to support more inclusive businesses, particularly those with women empowerment in their business strategy. Support can be in the form of providing direct capital to inclusive businesses and social enterprises that are womenowned or women-led, and offering products and services benefiting women and girls.

High optimism

WomenBizPH presented the results of the PPDWE at the High-Level Policy Dialogue on Women and the Economy held on September 18. Through efforts at the Apec level, we look forward to seeing positive developments in closing gender gaps not only in the Philippines but also in Asia Pacific. Given the momentum gained from Apec WEF 2015, WomenBizPh, as an advocacy group, will pursue projects and activities to support the implementation of the recommendations resulting from PPDWE. Ma. Aurora “ Boots” Geotina-Garcia is chairman of Women’s Business Council Phils. Inc. and president of Mageo Consulting Inc. She is chairman of the Management Association of the Philippines Programs Committee.

Friday, October 16, 2015 A7

‘Echo: It’s Just a Temporary Thing’ Tito Genova Valiente

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huge screen was tucked upstage and played for minutes a busy scene in a restaurant. Waiters and caretakers moved about preparing dumplings on trays and carted the services around forever it seems. Faces came close to the camera and looked down on the audience, part of which watched the video and part ignored the moving images. The video went on and on and, as the audience appeared to get used to the agitations and action, the theater dimmed. Onstage, one could apprehend two doll-like figures, tiny as they stood unobtrusively with the video still running behind them. Then, the two figures started not so much as to dance but to go through a series of broad gestures with their arms. As the two walked downstage, the hand strokes began to take on the form of a dance, with one person’s one hand movement ahead of the other. At certain points, they were in unison. At some points, the one figure would disappear behind the other by the effect of light and choreography. One dancer wore green and yellow; the other was in blue and white. The solid colors worked to create clean and clear lines onstage. The dancers were Riki von Falken, German; and Naim Syarashad, Malaysian. Not that ethnicity matters but this event, a dance-cum-audiovisual presentation, was a collaboration between two individuals coming from two different musical and dance traditions. Von Falken received a grant to work with a dance academy where she met Syarashad. The latter claimed he was the best in the academy. The night offered no comparison but, given his performance with von Falken, there was no denying he had tremendous skills. It was also in the Malaysian context that the dance included plates, yes, plates onstage, a nod to a Malaysian dance form that incorporates said utensils. When the two dancers reached center stage, the audience saw glistening shapes on the floor. The German dancer called them “installation.” But, in the Asian dance form,

we know they were organic to the dance, Naim first tread on them and picked one plate and another. He held the plates and, as he bent softly from the wrist to the hands, the two plates assumed malleability. In a world that requires always that stage performances should be interpreted and have meanings, one has to rethink something like this happening called Echo. In fact, students who were, I believe, assigned by their teachers to do a paper on the dance-theater, were summoning lessons about the

environment and human psychology as they tried to make sense of the two human beings on the stage and the nonhuman plates. Adding, perhaps, to their confusion were the scenes that paid tribute to Southeast Asian shadow plays. Local audiences have been weaned on plots and narratives, that when the stage yields to movements and visuals that do not complement each other, we readily call the performance “abstract.” We wish the music would accompany the sway of arm and the stomping of the feet. Something not really primeval happened in the Philippine Educational Theater Association (Peta) Theater Center that night but ordinary. It took the wisdom of dance to grace beyond the body and summon the technologies that capture the everyday. Life is not, as formal literature and dramaturgy creates it, organized and well-wrought. Life can be disjointed as scenes in the restaurant, as two people echoing their movement and ritualizing plates, and as they roll and stride while traffic looms against their postures.

Our dances truly commemorate the everyday. Von Falken and Syarashad saw these realities and proceeded to stage them for us, as they find startling beauty in the ephemeral and transitory. In their hands and bodies, the movement is not necessarily dictated by music. Sounds, in fact, come and go and create their own frenzy and omen. When the movements took on a sense of dread, the effect of the sound was incidental, and even more affecting. I wonder how our folk dances that make use of the things around us— bamboo, pots and candles in glasses —will look like once their origin of the everyday and the regular are remembered in other forms? The performance, called Echo: It’s a Temporary Thing, was presented by Peta in cooperation with the Goethe Institut, on October 2 and 3. Artistic Director and Choreographer was Riki von Falken; Naim Syahrashad was choreographer. Katja Kettner was responsible for the dramaturgie or dance drama; Oscar Loeser did the video.

E-mail: titovaliente@yahoo.com.

Should government cut income taxes? Let’s wait awhile Ranelle Jasmin Asi and Luis F. Dumlao

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Let’s wait awhile before it’s too late Let’s wait awhile before we go too far (lyrics borrowed from Janet Jackson)

rom 1994 to 2014, bonuses and other benefits, including the 13th-month pay that were less than P30,000, were exempted from tax; everything over was taxed. With the P30,000 exemption set in 1994, it was deemed outdated. For example, the government estimated that P30,000 in 1994, if adjusted for inflation, has the same purchasing power as P82,000 in 2014. In consideration of this, Republic Act (RA) 10653 was passed, raising the exemption from P30,000 to P82,000, with the President having the authority to adjust the exemption every three years, in accordance with inflation. We agree with Sen. Juan Edgardo M. Angara that there is “injustice” when an exemption is not adjusted for inflation for as long as 20 years. A person receiving P30,000 in 1994 has much more purchasing power than a person receiving P30,000 in 2015. So to correct the injustice, the “justifiable” policy is to cut the tax of the person receiving P30,000 today. But suppose we reword injustice with “price” and justifiable with “costly.” Then, there is “price” when an exemption is not adjusted, and it is costly that people receiving P30,000 in bonuses should be taxed less. The price is easy to explain,

because almost all can relate to it. Everyone who earns wage both in the private and government sectors, including these authors, pay for the price every time one receives the 13th-month pay. But reducing the price might be costly financially and developmentally. In finance, while debt was equivalent to 61 percent of the GDP in 1994, it is now less than 40 percent. In development, there was no Conditional Cash Transfer (CCT) in 1994, there are now 4 million recipients of CCT. Indeed, many of us pay the price, but price has been the cost of improving finance and development. Still, there is injustice in that

it is not right for certain groups of people to be paying the price. But if certain groups of people should not be responsible for paying the price, it cannot be that nobody is responsible for paying the price. So, if someone’s tax is cut, someone else’s tax should be raised. Consider the position of the Department of Finance (DOF) before RA 10653 was passed. It said that compensating revenue measures must also be enacted into law. But instead, the government did not wait awhile and passed RA 10653. With elections coming in, it is too late for no politician will propose a bill that will compensate for the tax cut. Furthermore, bills further cutting taxes have been proposed. For example, the lowest marginal tax bracket of zero tax to those earning less than P10,000 has been proposed to become zero tax to those earning less than P150,000. The highest marginal tax bracket of 32 percent to those earning more than P500,000 has been proposed to become 25 percent to those earning more than P10 million. The debate is on. On one side, the DOF predicts significant decrease in revenue. On the other, legislators argue that cutting the taxes will increase households’ take-home income. With more take-home income to spend, consumption will increase, which then increases business income eventually increasing tax revenue. Fortunately, in just awhile, the impact of RA 10653 will enable the government to produce data that will

show whether tax cuts result in government losing or gaining revenue. Before RA 10653 was passed, here were the predictions: Finance Undersecretary Jeremiah Paul told Congress that revenue loss would range from P10.3 billion to P43.6 million. Senators Angara and Ralph Recto debunked the claims of the DOF, and in separate interviews, the senators said that the Philippine Institute for Development Studies and other economists (excluding us) pegged the possible revenue losses between P3.5 billion and P7.3 billion. We are now in mid-October, less than two months away from receiving the 13th-month pay and feeling the benefit of RA 10653; less than three months away from closing the book on 2015; and about four months away from the government being able to calculate the effect of tax cuts on economic growth and government revenue. Will the RA 10653 tax cut actually slow economic growth and decrease government revenue? In 1987 pop star Janet Jackson sang the importance of not rushing into actions that might irreversibly damage something young women hold dear. Nostalgic sentimentalism aside, we should not rush into reducing taxes that might irreversibly damage the long run financial stability and developmental goals we hold dear. Let’s wait awhile. Ranelle Jasmin Asi is graduate research assistant and Luis Dumlao is former chairman, Department of Economics.