October 2, 2015

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Income tax-reform bill now considered dead–Speaker

By Jovee Marie N. dela Cruz

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INSIDE

‘thrilla in manila’ Sports ‘THRILLA IN MANILA’ BusinessMirror

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| Friday, OCtOber 2, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

By Tim Dahlberg The Associated Press

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T was, Muhammad Ali would later say, the closest thing to death he had ever known.

He and Joe Frazier had gone 14 brutal rounds in stifling heat of a Philippines morning before Frazier’s trainer Eddie Futch mercifully signaled things to an end, his fighter blind and battered and feeling pretty close to death himself.

It was the final time the two fighters would meet in a trilogy that transcended the sport of boxing. The last meeting would take place in the most unlikely of places, and be a fight so epic it would live up to its name.

It was 40 years ago, October 1, 1975, and the “Thrilla in Manila” was just that. Neither fighter gave an inch as Frazier relentlessly pursued Ali, and Ali responded by unleashing the fury of his fists on the oncoming challenger’s head.

“They told me Joe Frazier was washed up,” Ali said to Frazier at one point.

“They lied,” Frazier growled, throwing yet another left hook at a target he could barely see.

The fight was for the heavyweight title that Ali won a year earlier from George Foreman in another fight with a name. If the “Rumble in the Jungle” was Ali’s finest hour— at least in his late career—the defense against Frazier was surely his most gutty performance.

Ali’s business manager, Gene Kilroy, was watching from ringside, fearful for the health of both fighters.

“I was thinking to myself, why don’t they just ban boxing now?” Kilroy said.

The president of the Philippines had welcomed the two fighters to his country, and Ferdinand Marcos and his wife, Imelda, were among the 28,000 crowded inside the steamy Araneta Coliseum to watch the biggest sporting event the nation had ever hosted.

A fight of a different sort had broken out in the days before the bout when Ali’s wife, Belinda, arrived unexpectedly after reports surfaced about the champion squiring a 20-year-old named Veronica around town and introducing her as his wife. She barged into Ali’s hotel suite and exchanged words with him for about 15 minutes before heading back to the airport.

Ali’s domestic issues hadn’t prevented him from training hard for Frazier. He knew from their first two fights—this was the rubber match—that there was never any quit in the former champion, despite his knockout loss to Foreman two years earlier.

Frazier would be especially relentless this time, angry with Ali for calling him a “gorilla” and belittling him as an Uncle Tom. “He knew that Frazier would never be washed up against him,” Kilroy said. “If Frazier was 60 he would have still been ready to fight Ali.” Ali came out throwing big punches, hoping to stop Frazier in his tracks. He buckled Frazier’s legs twice in the first round, and was giving him a beating through the early rounds.

But Frazier began finding the mark with his signature left hook, snapping Ali’s head back. He began backing Ali up, taking the fight to him, and by the end of the 10th round, Ali sat exhausted on his ring stool, his head bowed and seemingly ready to quit.

“Ali took terrible punishment,” said retired Associated Press boxing writer Ed Schuyler Jr., who was ringside. “In the sixth round he hit him with a hook that almost made it look like his head was on a swivel. Joe just wouldn’t stop.”

Somehow, Ali took the punches and remained upright.

Somehow, he found a way to turn the fight back in his favor.

By the 14th round, the big right hands Ali was landing had made Frazier’s face almost unrecognizable. Frazier’s punches no longer had their zip, but even with his eyes almost completely swollen shut he continued throwing left hook after left hook, hoping one might find its mark.

Finally, Futch told Frazier he couldn’t go on. Frazier briefly protested, but Futch wouldn’t budge, knowing what one final round might bring.

In the other corner, Ali got up and briefly held his hands up in victory. Then he collapsed on his stool, finally finished himself.

“God knows what might have happened if they hadn’t stopped the fight,” Kilroy said.

Neither fighter was what they were five years earlier when Frazier beat Ali in the “Fight of the Century” at Madison Square Garden, though, it didn’t matter that morning in Manilla. Both dug deep into somewhere they had never been before to put on one of the most memorable heavyweight title fights ever.

Unfortunately, it came at a great cost. Frazier would fight ineffectively just two more times, and Ali was a shadow of himself even as he continued to fight on.

“It was the last hurrah for both of them,” Schuyler said.

“They both should have quit after that fight.”

Frazier died four years ago, still bitter about the way Ali treated him. Ali, who suffers from Parkinson’s Syndrome from taking too many punches, attended the funeral.

Last month they unveiled a long overdue statue of Frazier in Philadelphia, and Kilroy went to the ceremony. He and Marvis Frazier, son of the late champion, went to Frazier’s grave and laid a wreath inscribed with a message from Ali. “To Joe Frazier from Muhammad Ali,” it read. “Rest in peace, Joe, until we meet again. Next time we’re not going to fight, we’re just going to hug each other.”

It was 40 years ago, October 1, 1975, and the “Thrilla in Manila” was just that. Neither fighter gave an inch as Joe Frazier relentlessly pursued Muhammad Ali, and Ali responded by unleashing the fury of his fists on the oncoming challenger’s head.

MuhaMMad ali (second from left) and Joe Frazier (fourth from left) get furious at a news conference on July 17, 1975, in New York City and on October 1, 1975, exchanges blows—with Filipino boxing referee Carlos Padilla (third from left) closely watching them—in what is now, perhaps, the most classic heavyweight showdown in boxing history. AP

SPORTS

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The ‘apple’ of archie rodriguez’s eye

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To Our Lady of Assumption

EAR Mother of Jesus, we are confident that you watch our daily lives and that we ask that you intercede for us now. We are comforted by our faith in the coming resurrection, and we look to you for prayers and comfort. Daily, we ask through you our basic needs and our spiritual guidance so that we can always be closer to your Son, Jesus Christ. Amen.

NOVENA PRAYER OT OUR LAD, SIS. LINDA R. AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life BusinessMirror

Continued on A2 ON THE MENU: SALT-ROASTED ROCKFISH WITH TOMATO-OLIVE SALSA »D3

Friday, October 2, 2015

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B G M

EYE EVOLVING PALATE RODRIGUEZ is hoping Applebee’s selection of burgers, ribs and fries will strike a lingering chord with the Filipino palate, which has evolved in previous years, thanks to the plethora of options now available to many.

“It used to be sweet-savory; now it’s changing, becoming sweetspicy or sour spicy. Filipinos are naturally curious consumers. If something new opens, we’re going to try it. Look at all the new restaurants that keep coming up. Come to think of it, since we Filipinos have been colonized by several countries, our palate has been exposed to different kinds of cuisines. We probably have the most global palate of all,” he laughs.

NO FORMULA FOR SUCCESS AS a successful restaurateur of some 18 years, Rodriguez has a lot to celebrate, not the least of which is the unprecedented cult following engendered by his restaurants, particularly IHOP. The breakfast chain now boasts of eight branches within the Metro, with one more opening in Baguio in the next few months.

“IHOP was a surprise, to me, personally. I did not think it would be as popular as it has been,” he says.

“No one really has a tried-and-true formula when it comes to establishing a successful restaurant. You know, when we open a restaurant and we choose a brand, there is some thought that goes into it. Like we do market research, we let our regulars and employees and family try and see if they like it. A lot of times, we look for an emotional attachment. But the truth is you won’t know until you open the restaurant whether it’s going to be successful or not. We’ve had successes and we’ve had our challenges, but we work through them. It’s a business after all.”

By keeping his ears to the ground and staying abreast of current trends, Rodriguez has developed a feel for what consumers are into, but he says real success is measured by the restaurant’s staying power.

“I think if you just stick to your promise and make sure you deliver on your commitment to your guests—the food needs to be consistent, the service needs to be friendly and amiable—people will keep coming back because they know what to expect. There are a lot of new players who come out, they do a great job when they first open, and then all of a sudden their service and the quality of food start falling apart.

“Sustainability is making sure you deliver on your promise. You have to build a trust, a relationship with your customers. Without that relationship or that trust, they won’t keep coming back. As an operator, our company’s vision is to meet or exceed our customers’ expectations each and every time. We’re hoping that they have such an incredible experience when they dine with us that they’re going to want to keep coming back.” ■

By Catherine N. Pillas

LIFE

A BITE OF THE BIG APPLE “The truth is you won’t know until you open the restaurant whether it’s going to be successful or not. We’ve had successes and we’ve had our challenges, but we work through them,” says Archie Rodriguez, Global Restaurant Concepts president and chief executive officer. NONIE REYES

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‘Samulnori’ Korean dancers perform a traditional dance called Samulnori at the 2015 Korean CSR Awards in the Philippines held at the Marriott Grand Ballroom in Pasay City. ROY DOMINGO

PHL not affected by VW’s ‘diesel dupe’

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THE ‘APPLE’ OF ARCHIE RODRIGUEZ’S E arrives just as the spicy breaded beans are served, and within minutes is extolling the virtues of perfectly seasoned Korean-flavored ribs.

Affable, unflappable and obviously in his element, Archie Rodriguez slips into the role of host without hardly missing a beat, despite being neck-deep into preparations for the opening of Applebee’s Grill and Bar at the Bonifacio Global City.

“Ever since we put up the sign, people have been stopping by and asking when it’s going to open,” he shares. The 35-yearold restaurant chain, which boasts of over 4,000 branches all over the world, is the latest franchise of Global Restaurant Concepts, and as its company president and CEO, Rodriguez is understandably buzzed.

“I’m excited by the innovations in Applebee’s new menu and its new concept,” Rodriguez says. The restaurant will be debuting a new design that differs somewhat from its American counterparts.

“We wanted it to be more playful, so we worked with international and local designers to come up with what we have now.” In fact, the restaurant’s cheerful atmosphere dovetails nicely with the company’s philosophy that “there’s always a reason to celebrate.”

“Filipinos love celebrations. There’s always someone’s birthday, always an excuse to celebrate. What we’re saying is that life itself is a reason to celebrate. If it rains like crazy like the other night? Come to Applebee’s, there’s a reason to celebrate.”

Applebee’s is a joint venture between its parent company DineEquity and Global Restaurant Concept, whose portfolio includes California Pizza Kitchen and IHOP. IHOP is the sister company of Applebee’s. The new casual-dining destination has opened shop on the ground floor of the W Global Center, 30th Street corner 9th Avenue, Bonifacio Global City, Taguig.

“We are delighted to bring the classic American grill-and-bar experience to guests in the Philippines, which has long been a goal for all of us at DineEquity,” said Daniel del Olmo, president of International, DineEquity Inc. “Our largest-ever consumer-research study identified the Philippines as a market with great growth opportunity for Applebee’s.”

“But key to our plan was to find a franchise partner who would bring the same level of commitment, quality and guest satisfaction that we experienced with our IHOP franchise partner Archie Rodriguez and Global Restaurant Concepts, who, in their first year of operations, won our IHOP International Franchisee of the Year Award,” del Olmo continued. “Once they expressed interest in bringing Applebee’s to the market, we knew we had found the perfect partner and the perfect opportunity.”

By Bianca Cuaresma

arring late endorsement from President Aquino, the bill lowering the country’s individual and corporate income-tax rates can no longer be passed by the House of Representatives this Congress due to lack of time, Speaker Feliciano Belmonte Jr. said on Thursday.

While admitting that the government needs to tweak the income-tax regime to increase the take-home pay of ordinary workers, Belmonte said the lower chamber no longer has the time to pass the tax-reform

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he Philippines is not included in the markets affected by the so-called diesel dupe software of Volkswagen (VW), the German auto brand’s local distributor announced on Thursday.

“Volkswagen Philippines has just received official information from Volkswagen AG that all vehicles distributed and sold by Volkswagen Philippines are not affected by the particular software used in diesel engines,” VW Philippines said.

This comes on the heels of the Department of Trade and Industry’s (DTI) order to VW Philippines to immediately alert the agency if any vehicle sold in the local market is

PESO exchange rates n US 46.8310

‘NO REASON FOR BSP TO HIKE RATES THIS YEAR’ A

equipped with the “defeat device.”

Its mother company is still reeling from the worldwide controversy that ensued, when its top official admitted that its 11 million diesel engines contain a defeat device that lowers emissions during emissions testing.

This was discovered by the International Council on Clean Transportation in the United States, and reported to the US Environment Protection Agency.

But the compliance of VW vehicles in the emissions standards of the Philippines was unlikely to be questioned anyway, given that the country is a laggard in enforcing strict vehicle-emissions standards.

The country will only shift to

Euro 4 emissions standards in 2016, while more environment-conscious markets, such as Japan, Europe and the US, have long been imposing Euro 6/Euro 6+ standards.

VW vehicles sold in the country are equipped with Euro 6-ready engines. However, even with the advanced engines of VW vehicles, the question of whether these have capability to cheat emissions standards has put the DTI’s Consumer Protection Group on guard.

Trade Undersecretary Victorio Mario A. Dimagiba held a meeting with VW Philippines officials earlier this week to discuss the matter.

Now that its locally sold vehicles have been cleared of the controversy, VW Philippines reiterated that it is

compliant to local emissions standards. “We at Volkswagen Philippines sincerely apologize to all our customers for the undue stress and inconvenience this issue may have caused. All vehicles distributed and sold by Volkswagen Philippines comply with Philippine emissions regulations and standards. Volkswagen Philippines highly appreciates the continued trust and confidence provided by the Filipino consumers to the Volkswagen brand,” VW Philippines said.

According to VW Philippines officials, less than 1,000 units have been sold by the local unit since the brand returned to the market in 2013. About 60 percent of the vehicles sold were diesel cars.

lthough most economists say otherwise, London-based Standard Chartered Bank bared on Thursday a contrarian view on inflation, and ruled out a Bangko Sentral ng Pilipinas (BSP) interest-rate adjustment this year or next.

While in the Philippines, Standard Chartered economist Jeff Ng said he is convinced the BSP will not make the adjustmentst this year and next, essentially because inflations were to remain low and global volatilities likely persisting for some time still.

“I think this is nonconsensus, as well.

We don’t expect policy-rate hikes for the rest of this year and also for the full of next year. I think some of the research houses are expecting a rate hike next year,” Ng said.

“We don’t see [inflation] going out of the 2-percent to 4-percent target [next year], which is why there is really no reason and no impetus for the central bank to do anything in the midst of global volatility and while expecting the Fed hike,” he added.

Ng also said the lender has scaled back its forecast inflation this year to only 1.5 percent, instead of 1.9 percent as bared earlier. This was similarly lower than target inflation set by the government, ranging from 2 percent to 4 percent this year, and certainly lower than the revised central bank forecast inflation of 1.6 percent this year.

The average inflation in the Januaryto-August period stands at only 1.7 percent. The September inflation print will be released by the Philippine Statistics Authority next week.

Ng also said the lender’s forecast inflation for 2016 has similarly been adjusted to 2.7 percent, from 2.5 percent originally.

This was within the government target inflation, ranging from 2 percent to 4 percent in 2016 but higher than the latest BSP inflation forecast of 2.6 percent for next year. At present, the central bank has kept the repurchase rate at 6 percent and the reverse repurchase rate at 4 percent. Its special deposit accounts rate stands at 2.5 percent.

Ng cited the country’s resilient growth despite “noisy” global environment. Ng looks forward to local output growth averaging unchanged at 5.7 percent for the Philippines.

For next year, Standard Chartered Bank forecasts growth averaging 6 percent.

Both forecasts are below the government target of 7 percent to 8 percent for this year and next.

n japan 0.3907 n UK 70.8366 n HK 6.0427 n CHINA 7.3592 n singapore 32.9124 n australia 32.9309 n EU 52.3477 n SAUDI arabia 12.4873 Source: BSP (1 October 2015)

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Friday, October 2, 2015

Income tax-reform bill now considered dead–Speaker Continued from A1

proposal, now that lawmakers are focusing on the proposed 2016 P3.002trillion national budget and the upcoming 2016 national elections.

“I am in favor of the proposal lowering income tax, but in a rational way; not in a way that we are all being rushed because this is popular with the electorates,” Belmonte said.

“I don’t think [we can pass it] as we only have few days left before the recess [to give time for the filing of the certificate of candidacy on October 12]; also I don’t think even you would want an electiondriven reform. Also, the measure need to be passed here [in the House], in the Senate, in the bicameral conference committee and President Aquino to become a law,” the Speaker said.

B a s e d on t he l e g i s l at i v e

calendar, Congress will adjourn on October 10 and resume on November 3 before taking another break on December 19. The third and last regular session of the 16th Congress is expected to be cut short because of the 2016 national and local elections in May. Belmonte said it is now up to the next administration to find solutions on how to increase the takehome pay of Filipino workers.

“Personally I could have wanted discussions on it, more indepth study. Let’s get momentum in its favor and then make it one of the first priorities of the next administration. Let them reap the reward of this,” he said.

On September 14, Malacañang, taking the cue from the Department of Finance (DOF), already rejected the passage in Congress of a long-pending bill mandating

adjustments in individual and corporate income-tax rates, saying the government “cannot put our fiscal sustainability and credit rating at risk by doing piecemeal revenuereducing legislation.”

The DOF has warned lawmakers that reducing the individual income- and corporate tax rates may cause the government to lose revenues totaling as much as 1.5 percent of the country’s gross domestic product, or P30 billion.

But amid strong calls to pass the tax-reform measure, House Committee on Ways and Means Chairman and Liberal Party Rep. Romero S. Quimbo of Marikina and Senate Committee on Ways and Means Chairman Sen. Juan Edgardo Angara said the DOF is currently reconsidering the taxreform proposals as instructed by the President during their meeting on September 24.

According to Angara, he and Quimbo presented before President Aquino “various arguments and reasons for tax reform, from the level of individual households at the micro level and the benefits to society and the economy at large.”

In a separate statement, Angara said the Senate can not approve the tax-reform measure “because under the Constitution, the House must first pass it. So if the House passes a bill then the Senate Committee on Ways and Means can also pass a version, since my impression is that the majority of senators support some form of income-tax reform.”

The House version of the measure seek the revision of income taxes for compensation income earners, self-employed, professionals and corporations through the simplification of tiers and rates, and indexation to inflation.

Japan Inc.’s confidence is waning as headwinds hit Abenomics. . .

and rising profits under Abe have yet to make a significant commitment to expanding domestic investment. Both Abe and Bank of Japan Governor Haruhiko Kuroda have said investment and wage growth is needed to keep the economy out of deflation and on a growth path.

“The Tankan results indicate that Japan’s outlook remains grim,” said

Yuichi Kodama, an economist at Meiji Yasuda Life Insurance Co. in Tokyo. Kodama, who estimates the economy contracted by an annualized 0.9 percent last quarter, said large manufacturers are less confident about Japan’s outlook because exports are sluggish with the slowdown in China.

K u ro d a t h i s we e k u r ge d

companies to act quickly as wages and capital spending remain “lackluster.” Large companies have reported record profits as the weak yen boosts overseas income, and this is filling up in their coffers, instead of being invested in production at home or higher wages.

Large companies in a range of industries plan to increase capi-

TROPICAL DEPRESSION “KABAYAN” 105 KM NORTH NORTHEAST OF DAET, CAMARINES NORTE (OCTOBER 1, 5:00 PM)

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tal expenditure by 10.9 percent in the fiscal year through March 2016. Despite bullish forecasts by companies, their investment actually dropped 0.9 percent in the second quarter from the first three months of the year, when there was a modest 2.6-percent gain, separate Cabinet Office data show.

Bloomberg News

news@businessmirror.com.ph

New operator starts LRT assessment for upgrade

By Lorenz S. Marasigan

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he operator of the country’s oldest overhead train system has started assessing the railway line to determine the extent of work that needs to be done to improve the service of the mass-transit transport mode that serves about 400,000 passengers daily.

Light Rail Manila Corp. (LRMC) President Jesus P. Francisco said his company is now conducting the overall evaluation of the Light Rail Transit (LRT) Line 1, and will be putting prime importance to the “baseline requirements for passenger safety and convenience.”

“The priority is to bring back more light rail vehicles [LRVs] on the line to reduce the customers’ waiting time,” he said on Thursday.

“We also need to improve the condition of the rails in preparation for the time when we can bring up the trains up to speed.”

A partnership between Metro Pacific Investments Corp. and Ayala Corp., the private company started operating the train system two weeks ago.

Francisco explained that his company is working with the Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA) to assess even the power supply, signaling, telecommunications and line and catenary systems of the overhead railway.

“We will work to complete the full assessment of Line 1 as soon as possible,” he added.

The company also plans to upgrade the passenger terminals, including their escalators and elevators—all 32 of which across the stations will be repaired and overhauled. Already, the company has started with the restoration of lighting at all passenger terminals for enhanced passenger safety.

“LRMC is committed to passenger safety and convenience, which are the foremost objectives of our partnership with the government,” Francisco explained. “Expanding the capacity of the trains to lessen waiting time means refurbishing existing trains and purchasing new ones to complement the government’s acquisition of new light rail vehicles which we hope will come as per the DOTC and LRTA’s timetable.”

The private company holds the concession for the operations, maintenance and extension of the train line. It signed the agreement with the government in October last year.

Under the contract, the consortium will operate and maintain the existing line and construct an 11-kilometer extension from the present end-point at Baclaran to the Niog area in Bacoor, Cavite. The company will operate and maintain the oldest train system in the Philippines for 32 years.

A total of eight new stations will be built along this route, which traverses the cities of Parañaque and Las Piñas up to Bacoor, Cavite.

The extension is expected to enhance commercial development around the rail stations.

The Nation

Editor: Dionisio L. Pelayo

BusinessMirror Friday, October 2, 2015 A3

Miaa suspends airport staff as OFW complains online

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T least 25 Office for Transportation Security (OTS) personnel were suspended in August by the Manila International Airport Authority (Miaa) for various offenses.

The Miaa did not reveal the names of the suspended personnel but said the employees are under investigation and their security access passes were canceled, preventing them entry to the airport.

Technically, we did not suspend them as screening officers, according to Miaa Spokesman David de Castro. “We [only] canceled their access passes pending investigation for various offenses.”

T he su s pended employees are under investigation for reported extortion and various

offenses, such as the laglag-bala scam and pilferage.

Meanwhile, more than 7,000 Filipinos all over the world reacted to the statement of a Filipina domestic helper in Hong Kong when she posted on her Facebook account that she also fell victim to extortion at the Ninoy Aquino International Airport (Naia) Terminal 2.

The overseas Filipino worker (OFW) chose to remain anonymous but identified herself as a member of the group calling itself the United OFWs Worldwide.

The unidentified OFW said she was at Gate 5 of the Naia 2 on May 26 on the way back to Hong Kong when a female screener rummage through her bag after it was run through an x-ray machine.

“That fat lady whose hair is tied up called me and opened my bag,” the OFW said in Filipino, adding that the same airport staff rummaged inside her bag, opened her wallet and took HK$500.

“I refused when the lady said she wanted to keep the money because that’s my allowance in Hong Kong,” the OFW said on a Facebook post.

“She asked me to be quiet, returned HK$100 and left. I called out to her but she ignored me,” the OFW added.

“Sa sobrang inis ko, piniktyuran ko sya. Tapos nagalit ang mga kasama nya dahil bawal daw sila kuhaan ng picture.

Maybe I am not her only victim,” the OFW said. Recto Mercene

Police, troops launch bid to rescue 2 soldiers snatched by armed men

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OLICE and the military launched a bid to rescue two soldiers abducted on Wednesday allegedly by suspected members of the New People’s Army (NPA) in Compostela Valley.

Supt. Antonio Rivera, spokesman of the Southern Mindanao regional police, identified the snatched soldiers as Private First Class (PFC) Alabaso and PFC Añueber, members of the Army’s 25th Infantry Battalion.

The “kidnapping” allegedly occurred at around 2:15 p.m. on Wednesday at Barangay Casoon, Monkayo, Compostela Valley.

Rivera said the two soldiers are now the objects of rescue operations by a joint police and military team.

Initial investigation showed that Alabaso and Añueber left their patrol base at Barangay Banlag, Monkayo, onboard a motorcycle.

However, upon reaching Barangay Casoon,

witnesses said armed men flagged down the pair and left with the two soldiers.

“The suspects, together with the victims, fled toward unknown direction,” Rivera said.

He added that immediately after the incident was reported, members of the Monkayo Municipal Police Station put up a checkpoint, possibly to apprehend the alleged kidnappers and their victims.

Rene Acosta

DepEd spells out K to 12 partnership guidelines

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‘MAY DAY EVE’

The Philippines Graphic (PG) magazine and its partners held the 2015 Nick Joaquin Awards Night themed “May Day Eve” at a hotel in Bonifacio Global City, Taguig, on September 29.

Shown in the photo are (from left) PG Vice President for Advertising Sales Marvin Nisperos Estigoy, Manny O’ Wines Chief Commercial Advisor Richard Miller, Acer Philippines Inc. (API) Marketing Director Agnes Neria-Espino, API General Manager-Manuel Wong, PG Literary Award (PGLA) third-prize winner Jenny Ortuoste, National Artist for Literature F. Sionil Jose, PGLA first-prize winner Edgardo Maranan, PG Editor in Chief Joel Pablo Salud , PGLA second-prize winner Beting Laygo Dolor, Prulife UK Senior Vice President and Chief Marketing Officer, PG Literary Editor Alma Anonas Carpio and BusinessMirror Executive Vice President and COO Frederick M. Alegre. ALYSA SALEN

Cops, MMDA mull allowing double-decker bus on Edsa

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AKING cue from Bataan Rep. Enrique Garcia Jr., the Philippine National Police-Highway Patrol Group (PNP-HPG) and the Metropolitan Manila Development Authority (MMDA) are seriously considering the deployment of doubledecker buses along Epifanio de los Santos Avenue (Edsa) to address the traffic problem there.

Garcia had suggested the use of the double-decker buses to solve what he said is the “horrendous traffic congestion.”

HPG Director Chief Supt. Arnold Gunnacao said that based on the legislator’s proposal, it is high time to use such type of twolevel buses that could accommodate and ferry more passengers to

their destinations compared with regular buses.

Double-decker buses can also compensate for the limited road system and high volume of vehicular traffic in Metro Manila, Gunnacao said, citing Garcia’s observations.

In the 1980s, double-decker buses were first used by the Metro Manila Transit Corp. in their fleet.

Another transport company, Matorco, also employed double-decker buses with their tops open to carry local and foreign tourists around Roxas Boulevard in Manila.

Though viewed as a novelty ride today, double-decker buses are currently used by the Mall of Asia to shuttle patrons and shoppers to and from their destinations. Such

buses are also a staple ride inside the Subic Bay Metropolitan Authority complex.

Garcia’s proposal would also eventually get rid of dilapidated buses plying along the stretch of Edsa as bus companies would be required to deploy double-decker units instead.

MMDA Chairman Francis N. Tolentino said double-decker buses are space savers as they accommodate more passengers.

“Of the 4,936 franchised buses in Metro Manila, 3,421 are currently plying along Edsa. If double-deck buses are used, we not only lessen pollution but provide more road space as well without lessening seating capacity,” Tolentino said. Claudeth Mocon-Ciriaco

DUCATION Secretary Bro. Armin A. Luistro Jr. said on Thursday that guidelines in forging partnerships with education stakeholders from different sectors for the nationwide K to 12 Program are ready.

Luistro, former President of the De La Salle University, said this is in time with the full implementation of the Senior High School (SHS) Program next year. The Department of Education (DepEd) is following a well-planned procedure in building partnerships with the private sector, non-governmental organizations (NGOs) and other government agencies to see through the K to 12 Program, according to Luistro.

“Our partnership-building activities shall include research and needs analysis, identification of potential partners, meeting with potential partners, designing and finalizing formal agreements—either through memorandum of agreement or memorandum of understanding and managing, monitoring and evaluating the partnerships.”

The DepEd, through its assigned focal persons from its field offices and schools, will form linkages with different stakeholders and organiza-

tions for work-immersion opportunities for SHS students.

The work immersion will expose the SHS students to actual workplace setting, which will enrich their learning and competencies.

Other areas of partnership include the use of company facilities and equipment, additional training opportunities for teachers, and additional resources in the form of donations.

Donations may be in the form of parcel of land, infrastructure such as building, classroom, machinery, tools, equipment, training, consultancy, logistics and other technology support.

Among the target partners in the K to 12 Program are local government units, national government agencies such as the Department of Labor and Employment, Department of Public Works and Highways, Technical Education and Skills Development Authority, private companies and business establishments, NGOs and/or faithbased organizations, cooperative and micro-finance institutions, other schools and training institutions that will not offer basic education program. PNA

DOH urges use of statistics to intensify health services

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HEDepartmentofHealth(DOH) cited on Thursday the importance of statistics and its utilization in improving the people’s lives and achieving fully the goals for universal health-care program of the government.

In a speech she delivered during the opening ceremony of the 26th National Statistics Month (NSM) observance hosted by the DOH at the Heritage Hotel in Pasay City, Health Secretary Janette L. Garin said the task of statistics is not merely to produce data, but more important to assess whether the data are transformed into information as decision-making tool of policymakers and data users.

“Statistics play a vital function in maintaining good health status of the population and combating dilemma of health inequity,” she added.

Garin noted it is necessary that health services, technologies and innovations are driven in this modern age by evidence-based information.

She said that through accurate statistics, policy-makers can monitor the adequacy of currently implemented programs and initiatives.

“Also, it serves as baseline in determining if efforts are needed to be intensified further,” she added.

This year’s NSM observance by the Philippine Statistics System carries the theme: “Pagyamanin at Gamitin ang Estadistika, Kalusugan Para sa Lahat ay Abot-Kamay Na.” The annual celebration of the NSM is aimed at promoting, enhancing and instilling nationwide awareness and appreciation of the importance and value of statistics to the differ-

ent sectors of society. The celebration is also aimed to elicit the cooperation and support of the general public in upgrading quality and standards of statistics in the country.

The focus of this year’s NSM is on the government’s thrust in Universal Health Care and recognition of the various endeavors of official statisticians and technical personnel involved in the generation of health and nutrition statistics.

The DOH chief also said that statistics serve a critical role in achieving the Millennium Development Goals directed toward health which pertains to maternal and infant mortality and combating diseases such as HIV human immunodeficiency virus and acute immune deficiency syndrome, malaria and other diseases. PNA

Economy

A4 Friday, October 2, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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‘Ugly scars’ left by miners overshadow development

M

ining disasters often leave behind ugly scars, grim reminders of the destruction brought by mining operations that overshadow promised development in host communities, environmental activists said.

Even mined-out areas still bear the ugly face of mineral-extraction activities many years after the operations have ceased, leaders of Kalikasan-People’s Network for the Environment (Kalikasan-PNE) and Alyansa Tigil Mina (ATM) added, as they challenged anew the government to review mining’s benefits as against the damage it causes the environment.

According to Jaybee Garganera, national coordinator of ATM, the scars left behind by Marcopper in Marinduque and Philex in Benguet are among the worst in the country’s history.

Kalikasan-PNE and ATM are vocal critics of the mining-liberalization policy of the government and want largescale mining in the country stopped.

Both are calling for the repeal of the Philippine Mining Act of 1995 and President Aquino’s Executive Order 79. They also seek the enactment of a mining law that will protect the environment and give more benefits to the people.

The groups said despite the so-

called economic benefits and the aggressive promotion of the government, mining sector’s contribution to the national economy remains insignificant.

Mining companies, they say, rake huge profit in exploiting the country’s mineral resources, but pay very little taxes, and some companies even get to enjoy tax holidays under the current mining fiscal regime, they lamented.

They added that the taxes mining companies pay to the government, little as they are, are hardly felt by the residents of the host communities, whose lives and livelihood are first to be affected when a mining disaster struck.

Mining companies, through the various projects, have made their presence felt in many areas, where roads, bridges, schools, health and civic centers were put up in host communities. But these, according to their critics, are nothing compared to what mining companies get from exploiting the country’s rich mineral deposits.

Garganera said mining’s contribution to the gross domestic product

(GDP) is less than 1 percent. Annual employment generated by the mining sector, he said, ranges from 200,000 to 250,000. This includes quarrying and small-scale mining operations.

Revenues generated by the government from mining, he said, is even lower than the taxes paid by tobacco and liquor companies.

Citing a comparative study on the economic contributions of industries in terms of excise tax by Cielo Magno of Bantay Kita, in 2012, Garganera noted that 45.5 percent of the P22-billion excise tax collected by the government came from tobacco companies, while 33.3 percent came from alcohol companies. Mining only chipped in 3 percent.

“In terms of toxicity, Marcopper is the worst. Philex’s [mining disaster] is worst in terms of vol-

ume,” Garganera says.

“The difference is that Marcopper did not pay for its crime, while Philex settled over P1 billion in fines to the government,” he said.

In between Marcopper and Philex mining disasters, the Rapu-Rapu mining disaster in 2005 was also note mentioning, he said.

Even so, he said the over P1 billion in fines the company paid for the accidental tailings pond leak in August 2013 from the company’s Padcal copper and gold mine in Benguet, is not enough to cover for the massive environmental damage.

He added that there is no way to know whether the fines and penalties paid by mining companies have in fact been used for the rehabilitation of affected areas.

The accidental leak at Philex’s

Padcal mine dumped over 20 million metric tons of sediments into the Balog Creek in Benguet and Agno River in Pangasinan and reached the San Roque Dam. The Marcopper Mining Disaster on March 24, 1996, in the islandprovince of Marinduque, on the other hand, rendered the Boac River “biologically dead.”

A fact-finding report by Catholic Bishops’ Conference of the Philippines-NASSA, he said, indicate that communities still suffer from the impacts of Philex mining disaster even though the government had already allowed the company to resume its normal operations.

He said the government should first come up with a comprehensive st udy a nd deter m i ne t he economic value of forestry, agriculture and fisheries as against the benefits offered by mining before opening an area to largescale mining companies.

“This, I believe, is the primary consideration why the provincial government of South Cotabato has decided not to allow the open-pit mining method because of the potential adverse impact to agriculture, watersheds and forest resources of the province,” he said.

Also, he said the government should come up with a methodology where fines and penalties paid by mining companies for environmental violations are exclusively used for the protection and conservation of the country’s natural wealth.

Clemente Bautista, national coordinator of Kalikasan-PNE, said damage to the environment as a result of mining disasters remains a big problem. “There has been no actual rehabilitation,” he said.

He cited that of the P900-million fine paid by Rapu-Rapu for the dumping cyanide in coastal areas of Rapu Rapu Island in Albay, more than half, or P500 million, was used to pay for the consultation on how to rehabilitate affected coastal areas in the Bicol region.

“Whatever happened to the P1billion fine paid by Philex? Nobody knows. The Department of Environment and Natural Resources should tell the people where it is now,” he said.

“Even if these companies have bad records, the government even give them awards and citation. Until now, there are traces of tailings waste along the Balog Creek and Agno River.”

Mining companies like Philex, he said, are “recidivists” and often get away with their crimes.

“Mining disasters happen not once, but twice and even thrice already but the government has done nothing to prevent disasters,” he said.

He said there should be a moratorium on large-scale mining operation, and until such time that a new mining policy has been put in place, mining should not be allowed to take place.

“The government should impose a mining moratorium; first look into the promised benefits of mining and the potential damage to the environment they may eventually cause,” he said. Jonathan L. Mayuga

Benigno B.Ramos P

EACEFULLY joined his Creator on September 27, 2015, at the age of 77.

He was born on November 20, 1937, in Makati City. He is the president of the Barangay 201 Pasay City Senior Citizens Association and a retired member of the Makati City Police Department.

He is survived by his wife, Estelita V. Ramos; children and in-laws, Belinda and William de Vera, Benjie and Rosebelle, Bernie and Maria Isabel, and Blanca and Dilbert Dimaunahan.

He has 10 grandchildren: Paola Kristina, Karen Patricia, Brenzis Ranier, Kenneth Brian, Andrea Faustine, Brennan Raynor, Karlos Gabriel, Gail Bernice, Paul Benedict and Christian Jozef.

His remains lie at the Loyola Memorial Chapels & Crematorium, Guadalupe Viejo, Makati City.

Interment rites will be held on Saturday, October 3, 2015, at the Manila Memorial Park, Parañaque City, after the 9 a.m. Mass at the Loyola Memorial Chapels & Crematorium.

Economy BusinessMirror

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Value of domestic trade down 33.1% in Q2–PSA

DTI urges flour millers to cut prices

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By Catherine N. Pillas

he Department of Trade and Industry (DTI) on Thursday said it will ask flour millers and bread manufacturers to reduce the price of their products amid the decline in the price of imported wheat.

By Cai U. Ordinario

T

he value of commodities traded within the country contracted 33.1 percent in the second quarter of 2015, according to data released by the Philippine Statistics Authority (PSA) on Thursday.

Data showed that the total value of commodities that flowed within the country decreased to P113.93 billion in the April-to-June period in 2015, from P170.20 billion in the same period in 2014.

The PSA also said the quantity of domestic trade that flowed within the country declined to 3.72 million tons in the second quarter of 2015, from 4.87 million tons in 2014.

“Commodity flow or domestic trade refers to the flow of commodities through the water, air and railtransport systems in the country,” the PSA said.

In the second quarter of 2015, the bulk of the value of commodities, or 30.2 percent, that flowed throughout the country came from food and live animals amounting to P34.41 billion.

This was followed by manufactured goods classified chiefly by materials with P19.58 billion, or 17.2 percent of the total and machinery and transport equipment with P19.22 billion, or 16.9 percent.

Animal and vegetable oils, fats and waxes had the least value of P1.37 billion or 1.2 percent.

Food and live animals contributed the largest value in the second quarter of 2014, amounting to P49.65 billion, or 29.2 percent.

M ac h i ner y a nd t r a n s por t equipment followed next with P38.71 billion, or 22.7 percent, while manufactured goods classified chiefly by material recorded P23.72 billion, or 13.9 percent.

Animal and vegetable oils, fats and waxes also shared the least value of P2.14 billion, or 1.3 percent of the total.

National Capital Region reported the highest share on domestic trade at 25.5 percent in the second quarter of 2015.

Central Visayas was second with a 21.6-percent share, followed by Western Visayas with 21.3 percent and Northern Mindanao with 9.7 percent.

PSA data, however, showed that Calabarzon domestic trade contributed the least share among the regions, with only 0.2 percent of the total.

Data on the inflow and outflow of commodities in the different regions of the country are used by the government to construct interregional and interindustry relation tables.

These serve as bases in the formulation and implementation of various regional development programs, like countryside development and port planning.

Friday, October 2, 2015 A5

PHL SHOPPING FESTIVAL Paul Santos (from left) Philippine Retail Association (PRA) vice president and president of Picture City; Lorenzo For-

moso, PRA president and COO of Duty Free Philippines; and Roberto Claudio, PRA vice chairman and chairman of Toby’s Sports, present to the media the plans for the Philippine Shopping Festival 2015 at a news conference held at Solaire Grand Ballroom on September 29. Together with the Department of Tourism-Tourism Promotions Board (DOT-TPB), the revival of the Philippine Shopping Festival this year will make way for the development of the Philippine retail industry and support the aim of the country to be the new shopping destination in the Asia-Pacific region. The festival will be held from October 23 to November 8, which will be participated in by over 50 malls in the country. Stephanie Tumampos

Trade Undersecretary Victorio Mario A. Dimagiba said the agency is set to meet with flour millers and bread manufacturers next week.

“We waited for three months before knocking again on the doors of flour millers. For July to August, the price of wheat has gone down by 25 percent. This has a big impact on the price of flour,” Dimagiba told reporters in a media briefing.

The Consumer Protection Group (CPG) of the DTI noted that from January to April, global wheat prices have gone down by an average of 28 percent. This has already been reflected in bread prices in August.

CPG said the latest round of price cut for wheat should result in a reduction of P1 in the prices of flour-based products.

Dimagiba also said that the weakening of the peso has a minimal impact on the cost incurred

by flour millers.

Local four millers imports around 2 million metric tons of wheat annually.

Meanwhile, CPG said it is set to release the list of suggested retail prices (SRP) for flowers, candles and bottled water this month to guide consumers ahead of All Saints’ Day. “By October 15, we’ll release the SRP of brands of candles and bottled water, then also the price list of flowers online. We want to be early so that customers will have more time to buy these basic needs for All Saints’ Day,” Dimagiba said.

The DTI also plans to expand the SRP scheme to include 15 more candle brands.

As for Noche Buena products or those that are popular during Christmas season, Dimagiba said manufacturers will submit their price list to the DTI by October 15.

Convert unused airports into Harmonization of policies on biotech commercial areas—Drilon to facilitate agricultural trade in Apec

By Recto Mercene

A

ll idle real-estate assets of the Civil Aviation Authority of the Philippines (Caap), such as unused airports, could be converted into commercial areas, Senate President Franklin M. Drilon said on Thursday.

Instead of lying idle, Drilon said the government could use some Caap assets to generate more revenues and create jobs.

“Halimbawa na lang, ’yung Bacolod airport, this is 30 hectares of prime government property. Why is it not being developed? These are assets which can generate activity,” he said during an ambush interview.

Drilon said there are some unused airports in the country that have already been converted into commercial areas.

“We should look at these idle assets of the government and see what can be done to generate employment and economic activity,” he said.

Drilon said developing idle Caap assets would allow the government to earn billions of pesos.

“These idle government assets, if properly attended to, can benefit our economy,” he said.

Drilon cited as an example the present Ayala Avenue, which used to be Nielson Airport during World War II. It was closed in the 1950s and turned into the highly successful Ayala Commercial Center, while the airport was brought to the Pasay/ Parañaque boundary to become the Manila Domestic Airport and later the Ninoy Aquino International Airport with the addition of an international runway, 06-24.

Meanwhile, Drilon said many of the country’s airports now look like the Epifanio de los Santos Avenue (Edsa), where there are numerous billboards.

“Alam mo, mukhang Edsa na ang ating mga airports, puno ng advertisements. Sa akin ay dapat tingnan kung talagang kailangan natin iyan o kailangan natin ang mas malinis na terminals,” he said.

Drilon called for a review of rules that govern the putting up of billboards in local airports.

“Kapag ni-negotiate lamang ay hindi malalaman if this is the true value of the government asset we are getting. So all I ask is for all of these policies to be reviewed,” he said.

I

LOILO CITY—Member-economies of the Asia-Pacific Economic Cooperation (Apec) are urged to harmonize regulations on agricultural biotechnology to hasten trade in the region.

In a media briefing on the sidelines of the Apec High Level Policy Dialogue on Agricultural Biotechnology (HLPDAB) Meeting here on Thursday, Department of Agriculture-Biotechnology Advisory Council (DA-BAT) Chairman Saturnina Halos reiterated the importance of aligning policies in agricultural biotechnology among Apec economies.

Halos said having common policies in agricultural biotechnology can result to faster movement of agriculture products, as well as cutting trade cost of these commodities.

Agr icultura l biotechnolog y uses scientific tools and techniques that modified agriculture products for purposes of increasing yields, introducing nutri-

tive value on crops, and making crops more resilient to weather and pests.

She said one of the regulations that need to be aligned is the series of studies required before a crop or commodity that undergone biotechnology can access a particular market.

“It’s difficult to trade with different regulations. If one market requires this study while the other market doesn’t require it, you will still undergo to that particular study required in the former market, which means additional cost to the importer,” she said in Filipino.

“We need to hasten trade and reduce its cost,” she added, noting that one of Apec’s goals is to push for open and free trade.

Harmonizing the regulatory systems is relative to the region with the growing trade of biotech crops among Apec economies.

Halos cited that in the United States, about 80 percent of its

biotech corn crops are exported, while the Philippines is heavily importing biotech soybeans from the US. Currently, only seven of the 21 Apec member-economies are engaged in agricultural biotechnology farming, which include the Philippines, US, Canada, China, Chile, Australia and Mexico.

Vietnam and Indonesia are also adopting biotechnology into farming, the DA-BAT chairman said.

However, it was noted that the complex policies on trade of products applied with agricultural biotechnolog y limit the trade flow of these products in the Apec region.

Halos noted that farmers who utilize biotech crops globally increased their yields by 22 percent, while profits were up by 68 percent.

From 1996 to 2012, global net economic gains at the farm level reached $116.6 billion with the use of agricultural biotechnology. PNA

Business leader pushes further development of MSMEs in Negros Occidental

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ACOLOD CITY—The president of Metro Bacolod Chamber of Commerce and Industry (MBCCI) underscored the need for further development of small businesses so that the entire business sector can feel the growth of commerce in the country.

Frank Carbon stressed this in his talk before a group of micro, small and medium enterprises (MSMEs) in Negros Occidental during Wednesday’s forum on the Department of Science and Technology (DOST) programs and projects held at the Negros First Negosyo Center in this city.

He said that concerned government agencies should provide integrated and comprehensive assistance to MSMEs for them to graduate from being micro to small, and move toward small to medium.

Carbon said that although MSMEs are comprised of at least 90 percent of registered estab-

lishments employing almost 70 percent of the country’s total workforce, “We cannot really feel yet the trickling down of the benefits of the national growth to the local economy.”

“Once they have graduated from being micro and small, they are now more bankable and can take care of themselves and know where to go,” the business leader said.

“They can now provide higher wages and give benefits to their employees, thus, economic growth and prosperity can be felt more,” he added.

The DOST-Negros Occidental Provincial Director Francis Allan Daraug said that through the forum, they will be able to present to participants, who are mostly from the food and manufacturing businesses, the agency’s programs and projects that they can avail. “ There are lots of technologies, consultancies and traini ngs t h at need to be t ra n s -

ferred,” Daraug said.

The DOST has provided assistance through its Innovation System and Support Fund Program to 250 MSMEs in the province.

In terms of upgrading of facilities and purchase of production equipment, the agency has released P14 million last year with no default of payments since the program started in 2013, Daraug added.

Meanwhile, the Department of Trade and Industry Negros Occidental also enumerated during the forum the department’s role and services for MSMEs, such as improving and ensuring their business productivity.

DTI Officer in Charge-Provincial Director Rachel Nufable said that through various skills development trainings, MSMEs are also being assisted to maintain the quality of their products and how to efficiently market them.

They are also capacitated to join and even initiate their own trade fairs, Nufable added. PNA

SMUGGLED SUGAR The Bureau of Customs (BOC) has seized 12 container vans of smuggled refined sugar, valued at more than P1 million,

from Thailand. The shipment, which was declared as kitchenware, is the BOC’s biggest haul of smuggled sugar in terms of volume and value. NONIE REYES

A6 Friday, October 2, 2015

Opinion BusinessMirror

editorial

Asean regional stock market

T

heRE is no question that the Southeast Asian region, as embodied in the Association of Southeast Asian Nations (Asean), is the bright spot of the global economy, and will remain so for years to come.

The region is moving toward more economic integration not only to enhance the individual countries of Asean, but as a buffer and protection against other regions and, of course, China.

No one knows exactly how this integration is going to play out. It will be a mostly free-trade zone, but without a common currency similar to the North American Free Trade Agreement. There may be some lifting of travel requirements to cross borders, but nothing like the Schengen area of Europe, which has abolished passports.

Investment flow will be increased between Asean members, but there will still be some restrictions and, frankly, hesitation and caution about letting full completion of many economic sectors.

However, there is little doubt that Asean members are committed to move forward as much out of necessity in the current global environment as from a desire to help each other improve.

The Asean members are a very mixed bag of economic development and progress from Cambodia and Myanmar to Singapore and Malaysia. But there are some common interests and traits which may be able to hold the Asean integration together without too many problems.

Part of the reason that Asean integration will be successful is that it has been a process, almost an informal joining over many years.

The stock exchanges in Singapore, Malaysia and Thailand launched the so-called Asean Trading Link in 2012. This platform was designed to facilitate investors being able to trade on the home stock-market listed shares of companies in the other countries. But three stock markets do not make for a regional exchange. In fact, the Asean trading link was first only Singapore and Malaysia, which makes sense since those two countries are already closely integrated with some large companies being as much Singaporean as they are Malaysian.

Philippine Stock Exchange (PSE) CEO Hans B. Sicat said this past week that the PSE intends to join the trading system as early as 2016. This would be a good move for both the Philippines and the Asean.

There are problems with integrating government rules and regulations across borders that must first be resolved, perhaps requiring some changes in Philippine securities laws. Sicat said that Filipino investors are not currently allowed to buy stocks abroad through brokerage accounts at home, which is typical of our misguided protectionist policies.

Hopefully, some in the legislature will recognize the need for the PSE joining the regional stock markets and will champion this cause. This is good for the Philippines, and it is good for Filipino investors.

BUSINESSMIRROR 10022015

Luna’s choice James Jimenez

A

spox

ssuming that the movie Heneral Luna has already grossed a hundred million—I know it’s made more, but bear with me here—and assuming further that a ticket costs P250, we can arrive at the estimate that at least 400,000 people have watched it.

Four hundred thousand people who, presumably, have felt the power of “Negosyo o kalayaan, bayan o sarili?

Pumili ka!” Four hundred thousand who, on a daily basis, need to decide whether to put country over self. Of that number, I wonder how many actually make the choice that would set Heneral Luna’s mustache quivering with joy.

Today I saw a man choose the other option. Stopped on a traffic violation, this man tried to discreetly slip a P200 bill to a traffic enforcer. He may have not thought of his action in quite the same light as Luna would have, but, right then and there, he was faced with the option of respecting the law of the land—by accepting the penalty for his reckless endangerment of other cars on the road—or subverting it, by using money to buy impunity for himself.

I reflected how, if asked directly, this man would probably always re-

ply that he would be willing to suffer hardship for the sake of his country; or that, if told to identify the most important characteristic a Philippine President could have, would quickly answer, “not corrupt.” And yet, at that very moment when he had the concrete opportunity to back his words up with action, he failed to measure up. To say that I was disappointed by his choice, however, would be a lie.

Disappointment implies that I had expected him to act differently.

The sad thing is, I truly didn’t. I certainly hoped that he would do the right thing, but I wasn’t holding my breath for that. And I’m betting that you agree. Can you blame me? Can you blame yourself?

In May 2014 the Commission on Elections announced the opening of the registration period for the 2016 elections. At the same time, it announced that, by law, people who

didn’t have biometrics by the end of the registration period would be unable to exercise their right of suffrage.

Millions of letters were sent out to people without biometrics, reminding them to see to their voter-registration requirements; Comelec offices nationwide stayed open on Sundays and holidays so that working people and students would have the opportunity to register; mall developers gave up precious space to host satellite registration centers so that their clients could more easily meet civic responsibilities; media entities united behind a single call to action rather than insisting on their own hashtags and brandings; schools and universities opened their gates to their communities; students mobilized other students. It was an impressively wellsustained national effort.

Now, more than 16 months later, with that deadline almost upon us, there are those who can’t rage enough that registration isn’t easier for them.

Interestingly, many of these people are also the ones who have made a big deal about how a bit of movie dialogue moved them. The irony seems to be lost to them.

Luna’s choice—nation or self— isn’t a fork in the road that happens only in times of national crises.

Neither is it always a life-or-death situation. More often than not, it is as simple as a question of inconvenience versus convenience.

It is a daily, almost pedestrian,

commitment that needs to be made more often than we might realize.

Whether it is as simple as deciding to toss trash out of the car window or choosing to hit that retweet button on a tweet you know to be false, or looking the other way in exchange for filthy lucre, we are almost always put in situations where we are given the chance to rise above our selfish motivations and consider interests bigger than our own. How often do we disappoint Luna then?

Still, I refuse to believe that all is lost. Today, after seeing one man turn his back on his nation in favor of his own convenience, I watched as another gave up easy money. The enforcer who was offered the P200 ex-deal unhesitatingly called the attention of an on-duty police officer and reported the attempted bribery.

Good job, chief! For a moment there, I could have sworn that I saw Antonio Luna’s mustache on your upper lip. The funny thing is, I bet the guy—stuck every day as he probably is, trying to get people through traffic as quickly as possible come rain or blistering sun—has never even seen the movie. And yet, without needing to be reminded to choose nation over self, he demonstrated the undeniable truth that we all have it in ourselves to be heroes.

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

opinion@businessmirror.com.ph

Opinion

Economic ‘Seoulmate’

The AlDub nation is also Luna country

BusinessMirror

Tito Genova Valiente

Ser Percival K. Peña-Reyes

T

he fates of the Philippines and South Korea are increasingly being intertwined by two monumental events that are set to happen a year apart from each other. In December last year the 25th year of relations between the Association of Southeast Asian Nations (Asean) and South Korea was highlighted by a commemorative summit held in Busan, South Korea. With “Building Trust, Bringing Happiness” as the chosen theme for the occasion, Asean leaders met with South Korean President Park Geun-hye and issued a joint statement promoting increased political, economic and sociocultural cooperation.

Come end-December this year, the Asean Economic Community (AEC) will be marking its official culmination. The AEC envisions the transformation of Asean into a region with free movement of goods, services, investment, skilled labor and capital.

Indeed, these events could augur well for the growth and prosperity of the countries involved. Given the growing interaction among Asean nations, together with the growing interaction between Asean and South Korea, how can the Philippines take advantage of these relations and maximize its participation in the Asean-South Korea partnership?

As far as economists are concerned, part of the answer requires a broad review of the economic prospects and policy challenges of the Philippines and South Korea. The Asian Development Outlook 2015 (ADO 2015) serves as a useful piece of reference, and its data suggest that the economic outlook for both countries is generally positive, with low and stable inflation expected to support output growth.

The ADO 2015 also notes that the main policy challenge for the Philippines is to stimulate investment to help make economic growth more inclusive.

For South Korea it needs to diversify its international trade market to cope with slower growth and structural changes in China, which has been its largest export destination since 2003. Southeast Asia appears to be a logical choice for South Korean expansion, so the Philippines should actively seek opportunities to increase its trade share. Definitely, enhanced economic relations with South Korea could benefit the Philippines in several areas, and with the limited space here, perhaps, four important areas are worth highlighting.

First, there is infrastructure, which South Korean investors can help build in the Philippines through public-private partnerships. Without question, South Korean infrastructure is more globally competitive than Philippine infrastructure. Also, as Dr. Cielito Habito opines in his weekly column, the Philippines must open its door wider so that foreigners can expand the pool of private sector partners who can quickly help take the Philippines out of its massive infrastructure backlog.

Second, there is tourism, which is considered to be an inclusive growth driver. Notwithstanding problems with its infrastructure, the Philippines was

actually the second-largest Asean tourist destination for South Koreans in 2010.

More recent data (as of July 2015) from the Department of Tourism indicate that South Korea still provided the biggest visitor earnings for the Philippines with 5.520 billion.

Third, there is official development assistance (ODA). Based on the 2013 ODA Portfolio Review published by the National Economic and Development Authority, South Korea ranks seventh among the development partners of the Philippines, with $524.76 million in loans and $83.96 million in grants, for a total of $608.72 million. It is expected that total South Korean ODA to the entire Asean region will double this year, as South Korea has vowed to give more assistance to narrow the development gap among Asean member-countries.

Fourth, there is trade in services. According to the 2014 Economic Survey for South Korea published by the Organization for Economic Cooperation and Development (OECD), South Korea needs to foster a so-called creative economy.

While spending for research and development in South Korea was the highest among OECD members at 4.4 percent of gross domestic product in 2012, weaknesses in the innovation system limit the return. International collaboration in patenting and research is low, and the role of universities is small. The productivity gap between large and small firms is also widening, and this could reflect problems in services. So, by promoting the free exchange of scientists, scholars, and other innovators, South Korea can, perhaps, work more closely with the Philippines in fostering a creative economy, and it can look to the booming services sector of the Philippines to support its domestic needs.

Of course, to be in a position to enjoy the benefits of enhanced economic relations with South Korea, the Philippines must undertake reforms and assert its presence within the Asean region.

Ironically, greater cooperation implies greater competition as well, and this whole arrangement is intended to push the Philippines to do the right things, as Habito would say. Finding its economic “Seoulmate,” as it were, should prove to be worth all the effort.

This article was written by Ser Percival K. Peña-Reyes, Lecturer on Macroeconomics at the Department of Economics, Ateneo de Manila University.

Evidence of liquid water boosts hopes of life there

D

uring a morning news conference this week, National Aeronautics and Space Administration (Nasa) announced that, using spectral analysis, the Mars Reconnaissance Orbiter detected what scientists believe to be definitive signs of liquid water on Mars.

No, the orbiter didn’t detect water flowing through mythical “canals” once thought to be crisscrossing the red planet’s surface. The announcement sounds borderline unsexy when laid out scientifically.

Nasa now believes that what it calls “recurring slope lineae,” the dark streaks that run downhill on the sides of craters and other vertical topography during the Martian summer, are evidence that liquid water exists just beneath the planet’s surface.

This is a big deal because the presence of liquid water is arguably the most necessary element for the evolution of life as we know it. The water on Mars is believed to be briny and far saltier than any on Earth. It isn’t

annotations

EAGLE WATCH

drinkable and would be toxic to bacterial life from Earth, but it may have harbored Martian single cell life at one time. It may currently be the home of life that has adapted to its harsh chemistry.

Nasa’s scientists are confident that what they’re describing as seepage on the surface is evidence of subsurface reservoirs and rivers. Theories are already starting to circulate about what Mars may have been like 3.5 billion years ago and when it was covered with oceans.

There’s a hope that where rivers and oceans once existed on Mars, there may be evidence of long dead bacterial life, as well. The presence of water beneath the surface could also mean we’re on the verge of discovering life on another planet.

This tantalizing possibility is all the more reason for Nasa to proceed with more robotic missions to Mars in preparation for manned missions in the 2020s and 2030s. This is the most exciting news about Mars in a very long time. TNS

‘A

lDub” must be the most recognizable portmanteau in the country, or even outside where there are Filipinos. The name refers to the combined names of Alden Richards, the actor, and this person named DubMash, who has assumed the role of yaya or nanny.

Many things have happened since I wrote about the phenomenal success of this long-running show called Eat Bulaga. It was at the beginning of the “kalyeseries,” a play on the label “teleseries” or telenovela.

As early as August 5, I wrote about the show in the Lifestyle section of this newspaper. The article came out in my column called “Reeling,” and bore the title “Creating Characters and New Market: The Wonderful Case of Eat Bulaga.”

When I wrote about the pretty girl plucked from obscurity, who only talked through songs that were not even completed, that part of the show had not yet attained the wild success it is now having. The time the column came out, civic organizations have not yet endorsed the program as promoting traditional values. Then, there were no rabid critics yet of the program.

Cultural workers and theoreticians are all going to town analyzing why the show about a young man who met only this girl via TV screen is breaking all records. The first time they met—or dated—the tweets went beyond 10 million. By the time the young man, who by the way, basically communicates through words written on a white cardboard, visited Yaya Dub in the mansion of the three elderly taking care of her, the tweet more than doubled, or 25.6 million, and, according to one of the show’s top honcho, Joey de Leon, still counting.

Those who do not like the show sound lame and dull with their protestations. There were even posts warning those who are part of the AlDub nation that they will go dumb if they patronize this TV romance.

If there is a way to look at Al-

Dub, it is not only in the show that one should search for its magic but in its audience. We are this AlDub nation screaming to find out what will happen to two charming lovers while three women dispense advise and create strategies. This show is a lot more engaging than all these presidential candidates vowing to eradicate poverty. Those who love AlDub certainly find a good heart in two young people than in any of these politicians and I mean, “all.”

While Richards and Maine Mendoza, the real name of Yaya Dub, are making history, an aspect of national history is making waves (as in pabebe waves, that clipped, handwave made famous by the show).

By word of mouth and through the social media, the film by Jerrold

Friday, October 2, 2015 A7

Tarog has attracted quite an attention and a box-office crowd one associates with the silly films churned out by major networks. The hero, Luna, and the other patriots are getting a lot of drubbing and polishing because of this film. Gratitude should be given to E. A. Rocha who has produced Bonifacio earlier, and now Heneral Luna.

Both films are handsomely packaged. And yet, it is this film Heneral Luna that has gained a following— and a slew of criticism from all sectors.

Heneral Luna, is, without doubt, a gilded product. In my review of the said film (see “Reeling,” BusinessMirror, September 16, 2015), I took note of the fact that, for all the popular appeal of the film and its hero, Luna remains an elite who did not have high regards for the regular, ordinary soldier.

What the film, Heneral Luna, gives to this country presently is the many questions it has raised.

And the questions are not about the heroes, but those who hold them as heroes—us. We do not really know our heroes to the point that history teachers are being blamed for this national ignorance, and historians are asking if we are treating our history properly.

Social-media reports went viral about how some people were wonder ing why Epy Quizon,

Can Business Insider make money?

Leonid Bershidsky

BLOOMBERG VIEW

B

usiness Insider’s acquisition by Germany’s biggest publisher, Axel Springer, could mark the redemption of disgraced stock analyst Henry Blodget, or his revenge.

Blodget’s stor y has become emblematic of the excesses of the dotcom bubble: As a Merrill Lynch analyst, he relentlessly promoted tech shares, even as he described those stocks as “dogs” in personal e-mails. He was charged with securities fraud, and in a settlement, was banned from the securities industry, paid a $2-million fine and returned $2 million in profit.

Blodget always has insisted that he was sincere in his analysis, saying that he invested his own money in some of the stocks, too, and lost most of it when the bubble burst. Nonetheless, he was mocked and vilified. He was a central protagonist of Blood on the Street: The Sensational Inside Story of How Wall Street Analysts Duped a Generation of Investors, a book on the scandal by Charles Gasparino.

Blodget switched to business journalism and ended up as chief executive and editor of Business Insider.

From the beginning, in 2009, the site specialized in click-bait headlines, but it quickly acquired an audience by aggregating business news and selecting the most important stories. Venture investors, led by Amazon.com founder Jeff Bezos, soon took an interest. Axel Springer acquired 7 percent of the company during one of Business Insider’s seven financing rounds that raised $55.6 million. The German publisher

later expanded its stake to 9 percent.

Springer, a venerable Berlin company best known as the publisher of Bild, Germany’s biggest tabloid, is the exact opposite of Business Insider.

It’s a legacy business with a golden high-rise headquarters and a stable of print publications that are household names in Germany. It has been trying for years to transform itself into a digital, international company.

(Full disclosure: I worked for Springer in 2003 and 2004 when the company entered Russia). The transformation largely has succeeded: Only slightly more than half of Springer’s revenue now comes from Germany, and in the first half of this year, digital media accounted for 62 percent of that revenue and for 75 percent of earnings before interest, tax and depreciation.

The legacy business, with its shrinking circulation and advertising revenue, is increasingly becoming a drag. The company has almost quadrupled its debt since 2010, to €1.3 billion ($1.46 billion), to pay for its digital transition, and it has prevented revenue from slipping, but it has not built or acquired a real flagship for the new era.

Earlier this year Springer pursued the Financial Times (FT). But Japan’s Nikkei, also looking for a global flagship, outbid it, paying $1.3 billion in

cash. It wouldn’t have been easy for Springer, with a €5-billion market cap, to raise that kind of money.

So Chief Executive Mathias Doepfner called Blodget, who said on an analyst call on Tuesday that he hadn’t been looking to sell, though he had suggested in the past that the company would eventually either grow through acquisitions or be acquired.

In a way, Business Insider was an even better target for Springer than the FT. It’s exclusively digital, with a younger audience than other business media: 60 percent of its traffic comes from mobile devices and 39 percent from social networks. Axel Springer said it would buy 88 percent of Business Insider, bringing its stake to about 97 percent, for $343 million.

The deal sends a powerful message about Axel Springer’s ambitions. The company said on Tuesday that the acquisition puts it in sixth place among international publishers by audience reach—a feat made possible by Business Insider’s 76 million unique visitors per month. Doepfner called the purchase Springer’s biggest step into the English-speaking world.

As a business proposition, the benefits of the acquisition are less clear. Springer’s chief financial officer, Julian Deutz, said on Tuesday that Business Insider would have been profitable this year had it not invested in global expansion and two new sites, Tech Insider and simply Insider, a general interest offering. In 2016 Springer projects Business Insider’s valuation to equal six times revenue, and break-even is only expected in 2018.

The German company reports the results of the US site among its “paid models” assets, so called because they include titles that have paying subscribers—such as Bild. About

playing the role of Apolinario Mabini, never stood up at any point of the discussion in the film.

Historians are quibbling about the history presented. Just as memory plays tricks when it comes to remembering important dates, art can make heroes more engaging. Besides, the “when” does not matter more than the “why.” It is, perhaps, the reasons posed by the film, Heneral Luna, that has brought the audience to cinema.

If cinema can urge the people to rethink about heroes, then Heneral Luna is a good book to start with.

There are other good books to read— the Dagohoy Rebellion, which shows the courage of the ordinary people away from the elitist obsession, is just one of these sources for new heroes. Then there are the nativistic movements that eschew the role of the nation and the falsity of national heroes.

Two histories are being played out on screen: The free TV through a drama that takes place on the street, which is telling us there is another world that is not caught in the web of politics, and the film Heneral Luna that pokes us how the politics of heroes has always been about self and self-interest.

Give me AlDub, anytime!

E-mail: titovaliente@yahoo.com

half of that segment’s revenue comes from subscriptions. Business Insider, though, makes almost all of its money from advertising—that’s what makes it vastly different from the FT with its 720,000 digital subscribers. Business Insider is essentially a traffic reseller, producing lots of stories with catchy headlines and selling advertisers on the eyeballs they collect.

Internet advertising is overdue for a reappraisal. It’s not clear what advertisers are buying, who gets to see the ads—bots or real people—or whether they help sell anything. Like other ad-financed web sites, Business Insider has bet heavily on video ads.

The site can claim these have reached a consumer even when an annoyed user clicks away two seconds into a clip.

Advertising, of course, supports major players, such as Google and Facebook, but I doubt it can be a sustainable business model in the long term. As traditional publishers, such as Springer know, a content-based publication needs subscription revenue, not just ad sales. At the moment, it’s hard to imagine who would pay to subscribe to Business Insider (with the possible exception of its tiny offshoot that sells original analytical reports): The site has such a huge audience because it distributes for free the stories for which other business publications— which usually do more of their own reporting —want to be paid.

Blodget has shown he could build and sell a tech company, which should be a satisfying comeback from his exile from Wall Street. Yet, Axel Springer may have acquired a company with some of the characteristics of the dot-com dogs Blodget once pitched. Eventually the German publisher may need to invest more money in Business Insider to turn it into a convincing flagship.

2nd Front Page BusinessMirror

A8 Friday, October 2, 2015

Deficit down to ₧3.4B on better revenue haul

T

By David Cagahastian

he government achieved a budget surplus of P15 billion in August, cutting the year-to-date budget deficit to a low of P3.4 billion.

The Department of Finance (DOF) said the lower budget deficit is due to higher revenue collection, which, as of August, amounted to P1.44 trillion, or 13 percent higher than the revenue haul for the same period last year.

The budget deficit of P3.4 billion is approximately 0.25 percent of the gross domestic product (GDP), much lower than the government target of 2 percent of GDP. The government again stressed that underspending is not the cause

of the lower budget deficit.

In the area of expenditures, the government disbursed a total of P1.44 trillion from January to August, or an increase of 11 percent from disbursements made for the same period last year. Of this amount, interest payments amounted only to P225.7 billion, or P24.7 billion lower than the amount allocated for interest payments.

The amount disbursed for interest payments constituted only 16 percent of the total expenditures,

down from the 18-percent interest payments-to-expenditures ratio that was registered last year. This suggests that more cash was used for social and economic projects, instead of merely using it to pay off interest on the government’s debt.

“Sound fiscal management burnishes our credentials as one of Asia’s safest and strongest, a boon for our investment and growth prospects.

The Filipino people benefit from a better fiscal position: The better we can resist the turns of the tides in volatile times, the better we can chart the path for our own future,” Finance Secretary Cesar V. Purisima said in a statement welcoming the low budget deficit.

In the area of revenues, the government collected P176.7 billion in August to bring the year-to-date collection to P1.44 billion.

The Bureau of Internal Revenue

contributed the biggest amount, with year-to-date collection amounting to P962.6 billion, or an 8-percent growth from the agency’s collection for the same period last year.

The Bureau of Customs (BOC) raised P26.9 billion in August, increasing January-to-August figures to P235.6 billion. Even as the weighted average values of imported oil continue to sag with a 31-percent year-on-year decline, total BOC collections for January to August still beat year-ago figures by 1 percent, propelled by the 12-percent improvement in collections from nonoil commodities. Meanwhile, income from the Bureau of the Treasury (BTr) amounted to P2.7 billion for August, pushing the year-to-date total to P83.9 billion, or 11 percent higher than year-ago figures. As of August, the BTr has already exceeded its fullyear target by 38 percent.

Japan Inc.’s confidence is waning as headwinds hit Abenomics

W

eakness in the Japanese economy and the slowdown in Asit are chipping away at the nation’s business confidence, with the latest survey from the central bank showing sentiment

among large manufacturers worsening. The Tankan index for large manufacturers fell to 12 in September from 15 in June, the Bank of Japan said on Thursday, lower than the median estimate of 13 in

a Bloomberg survey of economists.

The index is forecast to drop to 10 in December.

There’s growing concern that Japan’s economy may have contracted in the quarter that’s just ended,

which would tip the nation into its second recession since Japanese Prime Minister Shinzo Abe took office in 2012. Large companies that have benefited from the weak yen

www.businessmirror.com.ph

FORTUNE LOSES SC APPEAL ON EXCISE TAX CASE VS B.I.R.

By Joel R. San Juan

T

he Supreme Court (SC) has turned down the petition filed by Fortune Tobacco Corp. seeking a tax credit or refund in the amount of P219 million, representing the alleged overpaid excise tax for the period, covering from June 1 to December 31, 2004, on technicality.

In a 14-page decision penned by Associate Justice Jose Catral Mendoza, the SC Second Division held that Fortune Tobacco failed to produce the necessary documents to prove its claim for tax refund.

The SC pointed out that Fortune Tobacco failed to not only comply with the basic procedural requirement of presenting only the original copies of its documentary evidence, but also to adhere to the requirement of properly making its offer of proof or tender of excluded evidence for proper consideration of the court.

It noted that the petitioner relied heavily on photocopied documents to prove its claim.

“Indeed, while it is true that litigation is not a game of technicalities—it is equally true, however, that every case must be established in

accordance with the prescribed procedure to ensure an orderly and speedy administration of justice,” the SC stressed.

“In all, the Court finds that the failure of petitioner to prove its claim in accordance with the settled rules merits its dismissal,” it added.

Based on records, Fortune Tobacco filed a claim for tax credit or refund under Section 229 of the National Internal Revenue Code of 1997 against the Bureau of Internal Revenue (BIR) for illegally collecting the P219-million excise tax.

After hearing the merits, the Former First Division of the Court of Tax Appeals (CTA) denied the petition for tax refund on April 30, 2009, for insufficiency of evidence. Fortune Tobacco elevated the case before the CTA en banc, which also denied its claim.

In upholding the CTA ruling, the SC declared that the “one who claims that he is entitled to a tax refund must not only claim that the transaction subject of tax is clearly and unequivocally not subject to tax—the amount of the claim must still be proven in the normal course, in accordance with the prescribed rules on evidence.”

Continued on A2

The Management and Staff of the BusinessMirror announce with deep sorrow the passing away of the father of our President, Benjamin V. Ramos

He died on September 27, 2015, at his home in Pasay City.

He was born on November 20, 1937, in Makati City. He is the president of Barangay 201 Pasay City Senior Citizens Association and a retired member of the Makati City Police Department.

He is survived by his wife, Estelita V. Ramos; children and in-laws, Belinda and William de Vera, Benjie and Rosebelle, Bernie and Maria Isabel, and Blanca and Dilbert Dimaunahan.

He has 10 grandchildren: Paola Kristina, Karen Patricia, Brenzis Ranier, Kenneth Brian, Andrea Faustine, Brennan Raynor, Karlos Gabriel, Gail Bernice, Paul Benedict and Christian Jozef.

His remains lie at the Loyola Memorial Chapels & Crematorium in Guadalupe Viejo, Makati City. Interment rites will be held on Saturday, October 3, 2015, at the Manila Memorial Park, Parañaque City, after the 9 a.m. Mass at the Loyola Memorial Park Chapels & Crematorium.