Businessmirror 10 15 2014

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U.N. Media Award 2008

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ebola deflating hopes for 3 poor african economies The World BusinessMirror

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Wednesday, October 15, 2014 B3-3

Fake invoice doubts revived as China trade skyrockets

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PeoPle do business at the Waterside local market in the center of Monrovia, liberia. Just as their economies had begun to recover from the man-made horror of coups and civil war, the West African nations of Guinea, liberia and Sierra leone have been knocked back down by the ebola virus. AP/AbbAs Dulleh

Ebola deflating hopes for 3 poor African economies

By Paul Wiseman & Boubacar Diallo | The Associated Press

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ASHINGTON—Just as their economies had begun to recover from the manmade horror of coups and civil war, the West African nations of Guinea, Liberia and Sierra Leone have been knocked back down by a terrifying force of nature: the Ebola virus.

In addition to the human toll— more than 4,000 dead so far—the outbreak has paralyzed economic life. Across the Ebola zone, shops are closed, hotels vacant, flights canceled, fields untended, investments on hold.

In Conakry, capital of Guinea, stray dogs, goats and sheep are plopping down next to empty stalls in street markets devoid of shoppers.

About the only things people want to buy are products meant to guard against Ebola—antiseptic gels and devices that attach to faucets and add chlorine to the water.

“These are selling like bread at the market,” said Cece Loua, who sells pharmaceutical products in Conakry.

The World Bank has dramatically downgraded its expectations for economic growth this year in the three countries hardest hit by the outbreak.

Guinea will grow 2.4 percent, down from a previously forecast 4.5 percent, it predicts; Liberia 2.5 percent, down from 5.9 percent; and

Sierra Leone 8 percent, down from 11.3 percent. “It’s been really devastating,” said Rosa Whitaker, CEO of the consultancy the Whitaker Group and a former US trade official.

It’s an especially cruel turn for the three impoverished economies that had been making steady progress after years of devastating conflict:  In Sierra Leone, which endured a civil war from 1991 to 2002 that killed 70,000 and left 2.6 million homeless, the economy surged 20 percent last year and 15 percent in 2012.  Liberia, which lost 250,000 people to civil wars from 1989 to 2003, has recorded double-digit economic growth four of the past five years.  Guinea, with a history of bloody coups and political strife, has grown more slowly (2.5 percent last year and 3.9 percent in 2012), but had expected its economy to accelerate as foreign companies invested in such projects as the Simandou iron ore mine.

“No one could have imagined the extent of the economic and social turnaround,” said Steven Radelet, a foreign-aid expert at Georgetown University and an adviser to the Liberian government.

“The past 10 years, there’s been remarkable progress, and a lot of investors coming in.”

Ebola has frozen the economic revival. “They were coming back and now have been set back in a big way,” said Francisco Ferreira, the World Bank’s chief economist for Africa.

T he epidemic damages the economy directly. Commerce stops.

The sick can’t work. Contaminated areas close down. Tax collections dry up. Health-care costs swell, squeezing governments already struggling with expenses.

But the indirect damage can be even worse as fear paralyzes Ebolastricken communities.

“People are obviously very afraid of it,” Ferreira said. “People stay home and don’t consume.... Flights are being canceled because no one wants to go there. Hotels are firing people because no one is staying there.”

Liberia canceled soccer games because it’s “a contact sport, and Ebola is spread through sweat,” said Musa Bility, president of the Liberia Football Association. The suspension of sporting events has hurt Boima Folley’s sporting goods shop in the Liberian capital Monrovia.

“No one comes to even ask for— let alone buy—sports materials these days,” he said.

Analysts are at least optimistic that the economic damage from the crisis can be contained to the hardest-hit countries. The three Ebolastricken nations are, after all, economically small, and their troubles are unlikely to disrupt commerce be-

annual gains since 2005 that saw the yuan rise about 33 percent versus the dollar, speculators have come to see China’s currency as a one-way trade.

That prompts hot money to seek out China on currency appreciation bets.

Worries about distortions had abated this year after a government crack down and as the yuan dropped 1.4 percent against the greenback in the first nine months of 2014.

The jump in exports to Hong Kong coincided with renewed appreciation of China’s currency, triggering “concerns that speculative trade flows to ride on RMB appreciation could have reemerged,” economists led by Liu Li-Gang at ANZ Bank wrote.

China’s currency appreciated 0.06 percent against the US dollar last month—the only emerging-market currency to advance against the greenback.

ONG KONG unexpectedly overtook the US in September as the top destination for Chinese shipments. However, not everyone is convinced those flows were genuine. Analysts at banks including Everbright Securities Co., Australia and New Zealand Banking Group Ltd. and Bank of Communications Co. said overinvoicing and over-reporting may explain the 34-percent surge in exports to Hong Kong from a year earlier.

A discrepancy between Hong Kong data for imports from China and Chinese figures for exports to the city in the past highlighted the practice of overinvoicing that’s used to disguise capital inflows to bet on China’s rising currency.

China’s exports increased 15.3 percent from a year earlier, the biggest increase since February 2013 and beating the 12-percent median estimate in a Bloomberg survey of analysts, according to government data released on Monday, prompting déjà vu for some.

“Signs of distortion might have reemerged in the trade data,” Xu Gao, chief economist at Everbright Securities, said in a note on Monday. “If policymakers overestimate external demand due to these fake trade figures and reduce the efforts to stabilize growth domestically, the outlook for the economy will be very worrying.”

Xu, who formerly worked at the World Bank, pointed out the surge in exports included shipments of precious metals, which have been at the center of dodgy invoicing in the past. Government policies to support exports “seem to have stimulated fake exports instead,” he said.

The customs administration didn’t respond to faxed questions on speculation the September data was distorted.

Hong Kong is scheduled to report September trade figures on October 27, when the size of any discrepancy may become clearer.

yond their borders: Combined, their three economies amount to half the size of Vermont’s.

Last week, the International Monetary Fund forecast that the 25 African countries it has grouped as “low income”—including the three most hit by Ebola—would register a combined 6.3-percent economic growth this year, faster than the 6.1 percent in 2013.

One factor in Africa’s favor: Nigeria, West Africa’s dominant economy, and Senegal moved decisively to identify and isolate Ebola victims and those who had come into contact with them.

“We’re incredibly impressed by the ability of Nigeria and Senegal to keep their epidemics contained,” Ferreira said. The World Bank still fears a worst-case scenario in which Ebola breaks out of three countries and spreads across West Africa. Under that scenario, economic losses across West Africa would rise as high as $32.6 billion this year and next, up from no more than $9 billion if the disease were contained.

Continent-wide, Africa has made significant strides. Six of the world’s fastest-growing economies are in Africa, the White House reported at an August US-Africa Summit meant to celebrate the continent’s rise.

Most analysts think Africa’s overall economy will continue to expand.

The momentum remains strong, and damage from Ebola still seems likely to be contained.

“I don’t think there will be lasting damage,” said Anna Rosenberg, head of Frontier Strategy Group’s sub-Saharan Africa practice.

“The growth story coming out of sub-Saharan Africa is too big and too real to be ignored. There’s nothing that is going to stop it going forward.”

Disguising flows

WHILE China’s government has strict regulations on importing capital, those aiming to exploit yuan appreciation can evade the limit by disguising money inflows as payment for goods exported to foreign countries or territories, especially Hong Kong.

Companies have “faked, forged and illegally reused” documents for exports and imports, Wu Ruilin, a deputy head of the State Administration of Foreign Exchange’s inspection department, said at a briefing in Beijing last month. The country has uncovered almost $10 billion in fraudulent trades nationwide since April last year.

The reemergence of fake invoices might be attributed to the Shanghai-Hong Kong Stock Connect, which is set to be rolled out soon, attracting overseas capital, analysts at Bank of Communications led by Lian Ping said in a note on Monday.

Analysts at Goldman Sachs Group Inc. led by Song Yu saw a different possible explanation for the export surge: overreporting as local governments strive to reach their growth targets. They noted there was no clear evidence of that.

Excluding the Hong Kong jump, exports growth held up largely unchanged at 12 percent, according to their calculation.

Bloomberg News

Stocks slip

CHINESE stocks maintained declines after the data. The Shanghai Composite Index fell 0.4 percent at the close while the Hang Seng China Enterprises Index lost 0.2 percent.

After almost uninterrupted

ShiPPinG containers and cranes stand at the Kwai Tsing Container Terminals in hong Kong, China. bloomberg

Skyscrapers stalled: Singapore construction falls most since ’10

By Sharon Chen

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CoMMerCiAl buildings in the central business district are reflected on a building façade in Singapore. bloomberg

world

the second quarter and compares with a 4.6-percent drop in the third quarter of 2010, following a global slowdown.

The data add to evidence that Singapore’s measures to rein in property prices in Asia’s second-most expensive housing market are having an impact, with home prices declining for a fourth consecutive period last quarter, the longest losing streak in five years. At the same time, a

Bloomberg

HE high-rise buildings that make up Singapore’s skyline aren’t soaring as much these days. Construction, which made up 4.4 percent of the economy last year, fell 2.7 percent in the three months through September from the previous period, data showed on Tuesday.

That extends a fall of 2.4 percent in

clampdown on foreign labor amid an economic restructuring plan has made it harder for developers who had become accustomed to a steady supply of cheap overseas workers.

“The whole cooling measures, plus foreign manpower curbs are really starting to bite,” said Selena Ling, an economist at Oversea-Chinese Banking Corp. in Singapore.

“It’s no surprise that you see construction continuing to cool,

but the pace of the cooling in the third quarter, I must say, was a little bit eye-boggling.” Prime Minister Lee Hsien Loong said in May the government would defer S$2 billion ($1.6 billion) worth of building projects for one to two years to spread out the demand for construction workers.

The move may save 20,000 to 30,000 foreign workers, he said. Expect fewer skyscrapers.

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capturing streaming video is a snap Your glow

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EAR Lord, we know that our light are in the forms of inspiration, hope, kindness, good ways and simple, clean lives. And, when this light burns from within, even the poorest of men can feel. Even the blind can see your glow. Even the sinners can sin no more. Even the indifferent can love again. May this light offer your glow and us, as well. Amen.

ANNIE P. AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

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‘GONE GIRL’ D2 TOPS ‘DRACULA,’ ‘ALEXANDER’ AND ‘THE JUDGE’

BusinessMirror

Wednesday, October 15, 2014

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A TWITTER post makes fun of the “hairy” situations being caused by Apple’s iPhone 6.

iPHONE 6: AFTER ‘BENDGATE’, NOW IT’S ‘HAIRGATE’.

HAVE YOU BEEN SNAGGED?

IT seems the iPhone 6 just can’t stop making fashion faux pas. First, there was #Bendgate, in which some users’ phones were bending in the pockets of their skinny jeans. Now it’s #Hairgate.

This week, it emerged that some iPhone 6 users were getting their hair, including beard hair, snagged in the phone. According to a community post on 9 to 5 Mac, the users’ hair was getting caught in the seam between the aluminum backing and the front glass.

Some others took to Twitter to lament about the hairy situation. Still, others said, #Hairgate was not a thing. A very unscientific experiment by @latimes found that the hair of one in three testers was snagged.

Capturing streaming video is a snap B H G McClatchy-Tribune News Service

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Y 4-year-old grandson has many passions: pasta with no sauce, strawberry ice cream (he always saves a few bites for his dad) and Curious George and The Cat in the Hat videos. His parents don’t have a TV, and the only videos he can watch on their PC are beyond G-rated.

Those videos express high moral values, no violence and no off-color language. So my grandson is growing up in a world where people basically are nice to each other. But when he comes over to our house, he gets to watch one 10-minute video of the latest Cat in the Hat or Curious George episode. He has a few episodes that he really likes, so much so that he can watch them over and over. But, when the family was planning a long plane trip, he wouldn’t be able to watch his monkey and cat pals, even if he behaved himself.

Grandpa to the rescue.

Audials Moviebox allows me to record a Curious

George episode on Netflix as it streams across my Windows PC screen. I can save it to my PC’s hard drive, edit it and burn it to a CD or DVD disc. In my exercises, it recorded both video and sound in the same high quality as when it streamed. Now grandson can take DVDs of his favorite characters and play them on his parents’ laptop or even on their iPad mini (more about the mini later).

But wait: Is this legal? Avanquest, the company that distributes Moviebox, says it is. More than that, they promise that you can legally copy actual movie DVDs, even those that are protected.

I’m not a copyright lawyer, so I can’t say if Avanquest has it right. But the program does work. I was able to record a streaming movie on HBO GO and burn it to a DVD, and it played back just fine.

I had some hiccups installing Moviebox, and some problems with help files that noted things like, “If that doesn’t work, try this.” Everything should work, folks, or there’s something wrong with the software. The program is only marginally intuitive, although, once I got the hang of it, I didn’t have any problem.

To record, I told Moviebox to detect the streaming video that was playing in a browser window on my PC. While it should automatically detect the browser

LOS ANGELES TIMES

window, every so often it clipped off the main part of the window. Streaming can be monitored in a small window from within Moviebox. The program automatically records audio and video on separate tracks in mp3 for sound and wmv for video, but there are other choices, as well. Curiously, it won’t convert video files to the mov format. There also are conversions for iPhones (up to 5s), iPads, Android devices and more.

If I were taking a long trip, I’d want to bring along the SanDisk Connect Wireless Media Drive, which sets up a private Wi-Fi network, allowing me to transfer files from the device to an iPad, for example. The drive, which is about the size of a Post-it pad, costs $119 on Amazon for the 64-gig version.

Now, even at his home, my grandson gets to watch 10 minutes of Curious George or his funny-hatted friend whenever he behaves well and doesn’t irritate his nemesis, my granddaughter. And he might even get to watch a whole Curious George movie as he wings his way over Kansas.

All told, Moviebox does its job far better than I had expected, and you can’t beat the price for what it does.

Moviebox can be bought and downloaded from www.avanquest.com/USA/. It retails for $39, but I bought it on sale for $19. ■

Acer bares latest smartphones A LEADING global computer brand, Acer (www.acer.com.ph) is throwing even more weight in expanding its market with the release of its latest cutting-edge smartphones. All are designed to offer the latest solutions and applications that will delight an increasingly mobile consumer market, while helping users to maximize the use of their preferred phone to their own unique advantages.

Take, for example, the Acer Liquid Jade smartphone, designed for the go-getters and power users who demand seamless performance wherever they may be—at work or at play. Its 5-inch IPS HD screen allows convenient viewing of documents, photos and videos, each displayed in stunning quality.

The Acer Liquid Jade comes in a smooth form factor yet packs a formidable razor-sharp punch. Inside, the 1.3GHz quad-core processor

allows snappy performance all the time so users can carry out several functions that a traditional computing device can perform, even on a 7.5mm ultra-thin smartphone powered by the latest version of the market-leading Android OS (4.4, also known as KitKat).

And, since most professionals do their business outside the office, the 21Mbps HSPA+ connectivity guarantees speedy connection to any network and allows them to browse their favorite web sites and socialmedia platforms. All these while using a smartphone that boasts of.

With the 13 MP rear and 2 MP front cameras, it would be a breeze for users to record all kinds of activities with family, friends or co-workers, and the resulting videos and images boast of outstanding quality.

“It has always been Acer’s mission and vision to provide our customers

the best that technology can offer,” Acer Philippines General Manager Manuel Wong says.

“So we brought the kind of technology in our smartphones that people actually need, and this is because we have remained sensitive and listened to what our customers say and feel.”

Aside from the Jade, the other smartphone models in the Acer Liquid lineup include the Liquid X1, the Liquid E700, the Liquid Z500 and the Liquid Z200.

Also available to forward-thinking professionals on the move are Acer’s Iconia Series tablets—the Acer Iconia Tab 10 (A3-A20FHD), Acer Iconia Tab 8 (A1-840FHD), Acer Iconia Tab 7 (A1-713), and Acer Iconia One 7 (B1-730HD), any of which makes a perfect complement to the Acer latest smartphone or as a standalone device.

WINNERS of Gold tickets troop to Smart offices to claim their “passports” to the much-anticipated One Direction concert in 2015.

ONE DIRECTION FANS GET ‘SMART’

IT’S not only free mobile Internet that Smart Prepaid is providing to subscribers, but also hundreds of tickets to what could be the most anticipated concert tour to hit Manila. Yes, that would be the One Direction concert scheduled to hit Manila next year.

Legions of Filipino fans of Niall Horan, Zayn Malik, Liam Payne, Harry Styles and Louis Tomlinson may now catch the boy band live on March 21 and 22, 2015, at the SM Mall of Asia Concert Grounds for the much-hyped Manila-leg of 1D’s On the Road Again concert tour. Subscribers only need to load up any denomination worth of prepaid load or avail themselves of the promos in order to secure electronic raffle entries. Seven hundred bona fide 1D fans will get two Gold tickets each. The promo covers all Smart Prepaid’s top promos, including CTM 15, AT 20, UCT 25, All In 99, Jump All Out 15, Jump All Out 25 and Jump All Out 50.

“If you think that you’ve run out of ways to watch the One Direction concert, think again. Smart Prepaid is opening up thousands of doors so that chance can become a reality,” said Joel Lumanlan, head of Smart Prepaid. On October 3 winning prepaid subscribers trooped to Smart offices to claim the first batch of tickets. One of the winners, Jeffrey Quiambao of Pampanga, said he joined the promo so he could win tickets for his nieces.

“Talagang nagsikap akong makasali para manalo ng tickets na plano ko ipa-raffle sa mga pamangkin ko pag-uwi ko ng Pampanga,” said Quiambao, who has been a Smart Prepaid subscriber for 13 years. “Plano ko pa ulit sumali para mas mapasaya ko ang mga pamangkin. Maraming salamat, Smart.”

To register, text REG <NAME, ADDRESS>, then send to 316 for free. Promo is ongoing until March 6, 2015. Entries from the previous month will be carried over the succeeding months and are qualified to win the monthly draws.

The English-Irish boy band behind the hits “What Makes You Beautiful,” “Live While We’re Young” and “Story of My Life” is bringing its On the Road Again Tour to Manila. One Direction also has Australia, Japan, Singapore, Thailand and Hong Kong as other concert stops. Go to www.ontheroadagain.com for tour schedule. For more details on how to win, visit www1.smart.com.ph.

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Wednesday, October 15, 2014 Vol. 10 No. 7

P25.00 nationwide | 8 sections 36 pages | 7 days a week

BSP dismisses reaccelerated inflation in final 3 months

INSIDE

news@businessmirror.com.ph

A broader look at today’s business

D1

By Bianca Cuaresma

nflation, which has tried to reaccelerate on two separate periods this year and could do so again in the months leading and up to the long Christmas holidays, was seen coming down instead, as price pressures ease during the period.

cnn phl: ‘we are here to win‘

DE LIMA: The agency’s P299.3billion target for approved investments for 2014 is definitely within reach, even if end-September investment figures are only at half of the target.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo expressed optimism that inflation will continue to fall from September level, averaging 4.4 percent, due to factors seen to pull down inflation in the closing months of the year.

The factors include expectations of a more subdued global growth this year, the resolution of supply issues due to port congestion and rice importation, as well as the end of the lean season and the start of the harvest season.

“Hopefully, the more decisive resolution of the supply pressures would provide greater momentum to more moderate inflation toward the end of the year,” the deputy

By Catherine N. Pillas

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See “Inflation,” A2

game up. With Westbrook sidelined after Christmas until the All-Star break last season, Durant took control of the MVP race by averaging 35 points, 7.5 rebounds and 6.3 assists while leading the Thunder to a 19-7 record.

“He did what he needed to do to help us win games,” Westbrook said. “He continued to have confidence in his teammates.” AP

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Editor: Jun Lomibao

| Wednesday, OCtOber 15, 2014 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph

Sports

Why plunge in oil prices may not be good for US

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ConTador

KLAHOMA CITY—For the first time, the Oklahoma City Thunder will be forced to play without Kevin Durant for more than a handful of games.

The team announced on Sunday that the league’s reigning Most Valuable Player (MVP) would be out for an undetermined length of time with a fracture in his right foot, at the base of the small toe. Typically, the injury requires surgery and six to eight weeks of healing.

The Thunder haven’t officially determined what’s next, although General Manager Sam Presti said surgery would be likely.

The Thunder will play without Durant on Tuesday night in a preseason game against Memphis.

“No one’s feeling sorry for us,” Oklahoma City Coach Scott Brooks said. “I can honestly say I did not receive any text messages from coaches around the league looking to postpone the season.”

Opponents have seen more than enough of Durant. Since he entered the league in 2007, he leads the league in points and minutes played. He has missed just 16 regular season games in his seven-year career and has never missed more than eight games in a season.

His longest absence was a seven-game stretch during the 2008-09 season because of a sprained right ankle. He missed one game last season, one game the season before, played in all 82 games during the 2009-2010 season and all 66 games during the lockout-shortened 2011-2012 season.

“When you look at Kevin, you see all the great offense of abilities and leadership qualities, but you never really think about the toughness, for him to be able to play all those years and play just about every game at a high level, and he continues to get back up,” Brooks said.

Point guard Russell Westbrook, who has missed significant time the past two years with a knee injury, admires how durable Durant has been over the years.

“Very, very impressive,” Westbrook said. “He’s probably one of the hardest working guys I’ve seen.

He comes in every day and does what he’s supposed to do. He doesn’t take days off in practice. He tries to compete every day. It’s definitely unfortunate, but he’s a strong guy mentally and physically, and he’ll get back to his better form.”

Brooks said Durant is struggling with the idea of missing games, even though it’s the preseason.

“He’s about as good as anybody can possibly be,” Brooks said. “One of the things I love about Kevin is

Thunder prepare To play wiThouT Kd

he loves to play. He loves the game of basketball. He’s very passionate about it. It’s not a hobby for him.”

Durant felt discomfort in the foot on Saturday and told the Thunder staff, leading to the diagnosis.

Brooks said the injury could have been much worse if Durant had waited to get help.

“This is a minor, minor setback in the big scope of things,” Brooks said. “He’s going to come back in no time, and like I said, our goal is to be a better team when he gets back from where we are today without him.”

The injury puts more of the focus on Westbrook, an explosive scoring point guard who averaged 26.7 points, 7.3 rebounds and 8.1 assists during last year’s playoffs. This season on media day, Brooks called Westbrook the best point guard in the NBA. Westbrook said his role won’t change.

“It’s not about me, it’s about our team,” he said.

“I can’t win games by myself. I can’t do anything by myself, so I kind of want to take the attention off of me and put it on more of the team. Everybody keeps asking what I’m going to do and how I’m going to change. I think it’s more about our team, and what we can do to get better.”

Westbrook said while he fought through injuries, he learned a lot from the way Durant stepped his

TinKov

ARIS—According to Tinkoff-Saxo cycling team, Russian billionaire Oleg Tinkov’s €1-million challenge is no “joke” and will help develop the sport’s popularity.

Tinkov is trying to entice Alberto Contador and his three biggest rivals to compete in all three Grand Tours next year with a €1-million prize to share if they commit to racing at the Giro d’Italia, the Tour de France and the Spanish Vuelta in 2015.

The eccentric businessman’s proposal received a positive welcome and Tinkoff-Saxo said on Monday the idea “will be beneficial to the sport of cycling” because it will boost audiences worldwide.

In addition to Contador, who rides for Tinkov’s team and has already won all three Grand Tours, the billionaire is hoping to convince Chris Froome, Nairo Quintana and Vincenzo Nibali to be on the starting line of the three-week events.

Contador has already said he will be targeting a Giro-Tour double this season but his participation at the Vuelta has yet to be confirmed.

“Racing in the three Grand Tours isn’t an issue in itself for the world’s best riders, they will not have any problems with that,” Saxo-Tinkoff Team Manager Bjarne Riis said. “However, winning or going for a podium place in all three is another thing and that will narrow it down to very few people.

I think there is a very small number of riders that are able to accomplish such a remarkable feat and we still don’t know who they might be, because it hasn’t been done before. That’s the beauty of this challenge.”

Three-week races are so challenging that no rider has been able to win more than two in the same season. The last rider to have achieved the feat is the late Marco Pantani, who won both the Giro and the Tour in 1998, at a time when cycling was riddled with doping problems.

Only six riders, including Contador and this year’s Tour champion Nibali, have won all three Grand Tours in a career.

Saxo-Tinkoff CEO Stefano Feltrin said on Monday he received positive feedback after approaching rival teams about Tinkov’s project.

“This isn’t a joke or a publicity stunt. We are very serious about it and we feel it is a proposal that will help cycling move forward,” Feltrin said in a statement. “We look forward to further discussing it with the key stakeholders.”

Team Sky General Manager Dave Brailsford, who guided Bradley Wiggins and Froome to Tour de France wins, said having the best riders racing together in the biggest races

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The Associated Press

By Samuel Petrequin

would please the fans, although winning the three races the same year would pose a huge physical challenge.

Like Contador, Nibali is planning on competing at both the Giro and the Tour, but not the Vuelta.

“Nothing is impossible but winning both is really difficult,” Nibali said in a Gazzetta dello Sport video. “It would mean that afterward you wouldn’t see me again for the rest of the season.”

So does that mean Nibali is turning down the €1-million offer?

“Divided in four that’s only €250,000, which is still a lot, but that’s not what you race for,” the Italian said.

Froome’s schedule remains to be defined. Giro champion Quintana is expected to focus on the Tour de France after his runner-up finish to Froome in 2013.

“I think there’s a reason why it hasn’t been done,” Brailsford said. “There’s also a reason why the Tour de France hasn’t been won by the same rider for quite a long time, and neither has the Tour de France and Tour of Italy double, or Tour de France-Tour of Spain double been done for quite some time.”

The routes for the 2015 Tour and Vuelta have yet to be announced but Riis is convinced Contador can achieve a top-3 finish at all Grand Tours if he decides to take up the challenge.

“He has the capacity to do it. Nevertheless, I think that extraordinary physical capacity alone will not be enough,” Riis said. “It is a very important factor but a rider needs three more crucial elements: the ability to recover between races, the mental strength and a perfect preparation and planning of the season.”

The €1-Million ChallenGe

IT’S NO JOKE!

QuinTana

BusinessMirror

nibali

Kevin duranT is struggling with the idea of missing games, even though it’s the preseason. AP

it’s no joke!

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pro-friends bullish on asean economic union BusinessMirror

E1 | Wednesday, October 15, 2014 • Editor: Tet Andolong

Pro-Friends bullish

on Asean economic union

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B R R R

Edward Integrated School, a school established inside Lancaster New City in 2012, gives families the option to send their children to a school that prides itself in raising globally competitive students with a strong sense of character. It has a dynamic project-oriented curriculum, which aims to address the needs of different types of learners. It has life labs, clubs and organizations that allow students to develop their talents and equip them with real-life practical skills.

Lancaster New City has a pioneer information-technology park of Cavite—SuntechiPark. Being ProFriends’s first office IT park development, SuntechiPark is designed to give residents the option to work close to home, thus giving them more time to spend with the family. Lancaster New City is also developing its transport system that would easily bring residents from their place of work to their homes in less time.

Lancaster New City will be building Downtown Lancaster, a 25-hectare commercial-business-lifestyle district that will provide retail and leisure activities to both office workers and its residents. Within Downtown Lancaster, residents and office workers alike will enjoy the convergence of SuntechiPark with the Square, its commercial area and Central Greens.

For worship, Lancaster New City has the Church of the Holy Family. Built in 2012, the Church of the Holy Family became a place of worship where families may attend Sunday Mass, hold their wedding vows and ceremonies, or celebrate the simbang gabi tradition.

OWER-and medium-market housing developer Property of Company of Friends (Pro-Friends) is looking forward to the start of the Association of Southeast Asian (Asean) economic integration on 2015.

In a recent interview with the BusinessMirror, Augusto Leonardo, chief operating officer of Pro-Friends, said the economic integration can bring more growth to the company. “Once the AEC [Asean Economic Community]comes in, it will mean more demand for houses,” he said.

“Hopefully, more investors will come into the country. When they come there will be a bigger need for houses, and we are ready to provide the shelter component,” he stated.

As fat as the lower and medium markets may seem, Leonardo said they remain underserved as 3 million homes are still needed by families who belong to these categories.

For the same price as a condominium, one could buy a lot here with twice the size. More important, you own land.

Leonardo said Pro-Friends will continue to build its landbank in Cavite because the area will offer a bigger potential once the CaviteLaguna Expressway and Light Rail Transit 1 Extension projects are completed.

“We will continue developments in the area if there’s availability and demand,” he added.

At present, Pro-Friends has a landbank of 1, 400 hectares for its Lancaster New City project.

Starting with its first phase in 2007, Lancaster has quickly evolved into a master-planned community that spans to more than 1,400 hectares, which cover Kawit, General Trias, and Imus in Cavite. Situated near the Manila-Cavite Expressway (Cavitex), families now have the option to own reasonably priced homes in a unique township near Metro Manila.

Lancaster New City currently has a selection of two- and three-story townhomes, as well as two-story single-attached homes designed for young professionals, start-up families and bigger growing families.

Each home is efficiently laid out to maximize space so that dwellers may comfortably move around inside the house.

In September Lancaster New City introduced six new Modern Asian inspired homes

CHESA interior

that celebrate the use of light and space. Its high ceilings and windows are created to allow more light and ventilation inside the rooms.

In consideration of the Internet’s importance to any growing family, four of the new house models (Briana, Chessa, Mabelle and Adelle) have ready outlets for home Internet cables.

Residents of selected house models have their very own family courtyard or family enclaves, extra spaces either at the back or in front of each single-attached home, where children may safely play or they may have their special private gatherings.

Aside from providing homes, Lancaster New City sought to make high-quality and affordable education accessible to its residents. Saint

LEIGHTON Hall

MABELLE

SANDARI BATULAO AWARDS LOT TITLE ANEW

O

N September 22 Citystate Properties and Management Corp.

(CPMC) turned over the Transfer Certificate of Title (TCT) to Leonardo and Luisa Soriano for a lot they purchased at Nalé, Sandari Batulao. The turnover took place at the CPMC showroom in Makati City.

Seen in photo are (from left) Leny A. Santos, CPMC Sales Documentation Department head; Maria Guia C. Buenaventura, CPMC VP for sales; Luisa Soriano and Leonardo Soriano, lot owners; Josephine Sanchez also a lot owner; and Engr. Alexander A. Vergara, CPMC project engineer. Not in photo are Ma. Lualhati Rojales, licensed broker of A&M Luckyland Realty; and Amelita Lejano, sales manager of A&M Luckyland Realty.

CPMC is the developer of Sandari Batulao, a luxurious eco-centric mountainside residential and leisure development with majestic Mount Batulao as its backdrop. Sandari Batulao is 10 minutes away from Metro Tagaytay and 15 minutes away from the beaches of Nasugbu, Batangas. www.sandaribatulao.com

PROPERTY

E1

I

f you’re a driver, a shipper or an airline, low oil prices sure feel nice. But there are downsides to the recent plunge in oil prices—for the oil industry and for the economy.

Low fuel prices can help boost economic growth by reducing fuel bills and leaving consumers and companies with more money to spend on other things. Problem is, two factors behind the oil-price drop—a weaker global economy and a stronger dollar—could hurt the US economy by reducing exports, employment and spending. And all that, in turn, could outweigh the economic benefit of cheaper fuel.

“Initially, [a lower oil price] will provide a boost to an economy that already has some momentum,” says Diane Swonk, chief economist at Mesirow Financial. “It’s like a tax cut. The problem is that it will come back to haunt us in 2015.”

Peza still confident of hitting 2014 goals

AMBASSADOR Antonio L. Cabangon Chua (third from left), president of Nine Media Corp., and Greg Beitchman (right), senior vice president, CNN global content and partnerships, shake hands as Armie Jarin-Bennett (left), executive director, CNN content sales and partnership; and Reggie Galura, president of Nine Media Corp., stand beside them. The partnership between Nine Media Corp., which owns 9TV, and Turner Broadcasting System Asia-Pacific Inc., which owns CNN, signals the rebranding of the former RPN-9 as CNN Philippines and involves brand- and content-sharing between the two media outfits.

By Lorenz S. Marasigan

T

he fusion of an international media outfit’s brand into one of the broadcast facilities of former Ambassador Antonio L. Cabangon Chua was seen to dispel the gray outlook of the self-made businessman’s recently acquired television network.

Turner Broadcasting SystemAsia Pacific and Nine Media Corp. recently entered into a five-year

partnership agreement to launch CNN Philippines, a predominantly English news channel on free-toair television.

CNN Worldwide President Jeff Zucker said the partnership enables the global media outfit to provide “first-class news and information to millions of Filipinos in a way that we have not been able to previously.”

“It is part of our strategy to grow channels like this. It’s ex-

citing to see things a bit energized—we wouldn’t do this just anywhere,” CNN International Senior Vice President Greg Beitchman added.

CNN Philippines, which will start airing its programs sometime in the first quarter of 2015, will operate from studio facilities in Manila and will replace 9TV on the Radio Philippines Network Inc.’s (RPN-9) nationwide network.

Continued on A2

he Philippine Economic Zone Authority (Peza) registered a modest year-to-date growth in approved investments as of the ninth month of the year, boosting its confidence of hitting its full-year investment and job targets.

In an interview with reporters at the sidelines of the International Information Technology and Business Process Management Summit, Peza Director General Lilia B. de Lima said the agency’s P299.3-billion target for approved investments for 2014 is definitely within reach, even if end-September investment figures are only at half of the target.

Documents show that Peza’s P148.213-billion approved investments from January to September reflect a 6.18-percent growth.

Peza’s approved investments as of end-September, however, is only 49.5 percent of the full-year target of P299.3 billion.

Peza’s actual approved investment in 2013 stood at P276.1 billion.

De Lima reiterated that the figures reported by Peza locators are always lower than the actual investments, as the companies only compute and report full investments at the end of the year in their audited financial statements.

According to Peza Promotions and Public Relations Group Manager Elmer H. San Pascual, of the total P148.213 billion, 60 percent are expansion projects, while 40 percent are new investments.

In terms of employment, the investment-promotion agency is

THEA

See “Oil prices,” A2

PESO exchange rates n US 44.7880

See “Peza,” A2

n japan 0.4190 n UK 72.1132 n HK 5.7730 n CHINA 7.3112 n singapore 35.2134 n australia 39.2018 n EU 57.0375 n SAUDI arabia 11.9403 Source: BSP (14 October 2014)

A2

News BusinessMirror

Wednesday, October 15, 2014

cnn phl: ‘we are here to win‘

Oil prices. . . continued from a1 A boom in US oil production, which has helped reduce dependence on foreign oil, has been propelled by high prices. Drilling in some areas of North Dakota and Texas, for example, produces only a slight output per day. If prices fell further, drilling would have to slow because it would no longer be profitable.

Oil hasn’t fallen quite far enough for that to happen, analysts say.

Even the more expensive drilling operations are still profitable when oil sells for $85 a barrel, and oil closed just below $86 on Monday. In general, oil companies would have to expect oil prices to stay below $80 a barrel for many months to scale back their drilling plans.

Unless supplies drop, perhaps from a cut in production from Saudi Arabia or Opec, or a sudden turnaround in the global economy that would increase demand, prices could fall further.

“It’s problematic,”says Gary Ross, CEO of Pira Energy Group. “The wake-up call is on its way.”

In the meantime, drivers will be enjoying the lowest gas prices in four years. Tom Kloza, chief oil analyst at the Oil Price Information Service and Gasbuddy.com, says the national average could fall under $3 a gallon before year’s end for the first time since 2010.

Benchmark US crude oil peaked in late June at $107 after Islamic State

Peza. . . continued from a1

targeting a 10-percent growth from 2013’s 1.48 million.

As of September, employment count was at 1.12 million, a 11.73-percent rise from 2013’s tally of 1 million employees.

Peza exports, estimated at $29.02 billion as of the end of the third quarter, grew 3.8 percent from last year’s comparable period

fighters seized control of some cities and Iraq and seemed capable of disrupting exports from Opec’s second-largest exporter. Upheaval in Libya sharply cut its output.

Global supplies were unstable, and demand appeared robust. US refiners were churning through more oil than ever and making and exporting records amounts of fuel. The picture soon flipped. The threat to Iraq’s exports diminished. Libyan exports returned to the market. And refineries in the US and Asia slowed for seasonal maintenance.

At the same time, slower growth in Europe and China led forecasters to reduce expectations for oil demand.

The weak global economic forecast, combined with a relatively strong one for the United States, raised the dollar’s value to a four-year high against other currencies. Because oil is priced in dollars, a stronger dollar makes oil more expensive and tends to reduce demand.

Suddenly there was plenty of supply and not enough demand. By the end of last week, oil had plunged $20 a barrel from its peak. It ended the week below $86 a barrel for the first time in nearly two years. Energy company stocks have fallen 16 percent since late June, compared with a drop of 2 percent in the Standard & Poor’s 500 stock index, according to FactSet. AP

Continued from a1

The negotiations started in June, Cabangon-Chua said, quipping that everything started informally.

“But, it was properly studied. The proposal is good, as it will be mutually beneficial. CNN is currently available through pay-TV coverage, but with this partnership, they could air via free-toair TV—there will be more exposure for them,” he said. “On our end, our current reporters will be trained by them, and they will be sending consultants here to train our present complement.”

Nine Media President Reggie D. Galura said CNN Philippines will be airing a dynamic combination of local and international news, as well as current affairs, feature programming and documentaries. “ We will tr y to reinvent CNN International in the Philippine setting,” said Jing F. Magsaysay, senior vice president for news and current affairs at Nine Media Corp.

“We are proud to offer our viewers a global perspective of key issues and worldwide trending stories, as

well as championing Filipino values and culture through locally produced content,“ Galura said.

BULLISH ON PHL PROSPECTS CNN International Senior Vice President Ellena Lee said her firm is bullish about the prospects in the Philippines, especially since the country has been expanding at paces faster than its neighbors around Asia.

“We are very optimistic about the Philippines. We’re here because we’re optimistic where the news consumption is going.

We will also tap Nine Media to be the best news agency in the Philippines to be offered internationally,” she pointed out.

Executives declined to give the amount of investment for the said venture, but noted that they are confident on the prospect of returns.

“I think media companies and news companies are challenged to make money. I think that by brining in our methods, thereby raising the bar, hopefully we could attract advertisers. I hope they would like our model, and are willing to try to reach their audience through our network. We are confident that it will work,” Beitchman

Inflation. . . continued from a1 governor said.

Guinigundo further said the confluence of the downside factors could provide a “more conducive inflation environment” for the country toward the end of 2014.

“Globa l g row t h i s com i ng down and International Monetary Fund just came out with those forecast of lower global grow th. So demand for commodities could be lower and the

of $27.959 billion.

The full-year goal for exports, pegged at 8 percent over last year’s $42.87 billion, is $46.3 billion.

As part of its investmentpromotion drive for the remainder of the year, San Pascual said de Lima is slated for two more visits to Japan in the last two months of the year.

tendency for the prices of commodities will not be that high,” Guinigundo said.

“The other downside risks [pertain to] the effort to address the supply issues. The National Food Authority was awarded a government-to-government import permit from Thailand and Vietnam,” he added.

“Thirdly, the lean season is about to come to an end. And then you’ll

3-DAY EXTENDED FORECAST OCTOBER 15, 2014 | WEDNESDAY

TODAY’S WEATHER Low Pressure Area (LPA) develops when warm and moist air rises from the Earth’s surface.

LOW PRESSURE AREA (LPA) WAS ESTIMATED AT 610 KM EAST OF MINDANAO. (AS OF OCTOBER 14, 5:00 PM)

SBMA/CLARK 24 – 30°C METRO MANILA 24 – 32°C

TAGAYTAY CITY 21 – 28°C

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told the BusinessMirror separately.

RPN-9 Director Benjamin V. Ramos added that hopes are high for the soonto-be launched news outfit, as the improvements in the network are expected to yield better results.

Cabangon Chua in August made his foray into television broadcasting through the acquisition of the 34-percent significant minority stake of Solar TV Network Inc. in RPN-9. Analysts earlier said Cabangon Chua’s investment in the formerly state-owned broadcasting firm is very risky, as the television station has never been ranked high in the audience ratings game before.

The profitability of RPN-9 was questionable back then, but Ramos said the former ambassador would like to take the challenge of bringing the company back to the black.

First Grade Holdings Inc. Managing Director Astro C. del Castillo said the entry of the CNN brand will allow the local network to get back on its feet again and be more competitive in capturing market share. “It will take time, however, as CNN is just one of the ingredients in trying to lure more sponsors to shore up revenues,”

OCT 18

SATURDAY

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

PUERTO PRINCESA CITY 23 – 32°C

TACLOBAN CITY 25 – 31°C

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CAGAYAN DE ORO

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METRO CEBU 23 – 31°C CAGAYAN DE ORO CITY 24 – 31°C ZAMBOANGA CITY 24 – 32°C

ILOILO/ BACOLOD

SUNSET

MOONSET

5:47 AM

5:36 PM

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FULL MOON HALF MOON

24 – 32°C

OCT 16

3:12 PM

CELEBES SEA

10:32 AM

0.05 METER Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms

HIGH TIDE

1:39 AM

0.99 METER

Partly cloudy to at times cloudy with rain showers

25 – 31°C

24 – 31°C

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Cloudy skies with rain showers and/or thunderstorms Light Rains

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

SABAH

LOW TIDE

11:40 AM

MANILA BAY

OCT 08

24 – 31°C

MOONRISE

21 – 27°C

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

METRO DAVAO 25 – 33°C

SUNRISE

6:51 PM

23 – 31°C

OCT 18

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24 – 32°C

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LEGAZPI

MacSorley said.

The 2014 GHI examines levels of hunger in 120 developing countries and countries in transition, and scores them based on three equally weighted indicators: the proportion of people who are undernourished, the proportion of children under 5 who are underweight, and the mortality rate of children under 5.

24 – 31°C

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continued from a8

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Hunger. . .

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LEGAZPI CITY 24 – 30°C

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3-DAY EXTENDED FORECAST

BAGUIO

TAGAYTAY

he said in a phone interview, when asked for comment.

Beitchman noted that the joint venture will be“very competitive”in the Philippine television market, which is dominated by GMA Network Inc. and ABS-CBN Corp.

“We have to bite into the market, and to do that we have to be very competitive, as it is a competitive market.

What’s interesting is that advertising expense is projected to rise here, in line with the GDP [gross domestic product] growth. The advertising market is fairly optimistic,” he explained.

“We are here to win.”

CNN Philippines will also be available in key cities around the Philippines, such as Cebu, Davao, Zamboanga, Baguio and Bacolod.

“We will assess our current structure and restructure according to what we think is best to deliver in the next year immediately and five years longer,” Magsaysay said. Cabangon Chua holds significant interests in media outfits nationwide, including the Aliw Broadcasting Corp., and Philippine Business Daily Mirror Publishing Inc., the operator of the B usiness M irror.

have the harvest season. So harvest season, plus more importation of rice, and then much less port congestion, I think, will help bring about a more conducive inflation environment,” Guinigundo said.

In a separate commentary, ING Bank Manila economist Joey Cuyegkeng said that the downside risks pertain not only to the 2014 inflation numbers but more so to the 2015 inflation forecast, as well.

METRO DAVAO

TUGUEGARAO CITY 24 – 28°C BAGUIO CITY 17 – 21°C

OCT 16

METRO MANILA

LAOAG

LAOAG CITY 23 – 29°C

news@businessmirror.com.ph

@PanahonTV

The Nation BusinessMirror

news@businessmirror.com.ph

CA orders BCDA: Resolve dispute with CJHDevco through arbitration

By Joel R. San Juan

T

HE Court of Appeals (CA) has issued a decision compelling the Bases Conversion and Development Authority (BCDA) to settle through arbitration its dispute with Camp John Hay Development Corp. (CJHDevco) over the development of the 247-hectare rest and recreation site in Baguio City.

In a 14-page decision written by Associate Justice Victoria Isabel Paredes, the CA’s Special Eleventh Division affirmed the order issued by Judge Cleto Villacorta III of Branch 6 of the Regional Trial Court in Baguio City on July 13, 2012, which directed the BCDA to arbitrate with CJHDevco.

“Finally, the records of the case reveal that the factual allegations of the parties already refer to the merits of the controversy between them, which is the alleged breach of their RMOA [restructuring memorandum of agreement]. These issues are best threshed out in the appropriate arbitration proceedings,” the CA ruled.

Earlier, the CJHDevco asked the BCDA to sit down and resolve through arbitration their impasse involving the development of the 247-hectare John Hay Special Economic Zone (JHSEZ).

Arbitration is the dispute resolution mechanism provided for in the lease agreement between BCDA and CJHDevco.

BCDA has refused to submit itself to arbitration proceedings, insisting that CJHDevco committed “incurable material breaches” of its contract with BCDA, thus, has no clear right to remain in possession of the leased property.

It can be recalled that in October 1996, CJHDevco was awarded the contract to develop Camp John Hay after the original winning bidder, the Manuela Consortium, backed out owing to issues on the delivery of the 247-hectare leased area.

CJHDevco Chairman and CEO Robert John Sobrepeña said the company expected to subsequently receive the 247-hectare property, clean and free to commence development, together with the Environment Compliance Certificate (ECC), as warranted by the BCDA. The dispute stemmed from BCDA’s failure to handover “clean” possession of 32 hectares of the most suitable for development of the 247hectare leased property.

Despite these breaches by the BCDA, CJHDevco paid another P425 million in lease payment in 1997, Sobrepeña said.

He added that the ECC was released only in 1998 or two years late of what was agreed upon.

Since the issues involving 32 hectares were only resolved in the year 2000, the BCDA and CJHDevco agreed to enter into a first RMOA in the same year during the term of President Joseph Estrada.

But still, the first RMOA remained ineffective since BCDA failed to secure a Commission on Audit approval from the newly installed administration of then President Gloria Arroyo, he added.

The second RMOA was signed in 2003 which obliged CJHDevco to pay P50 million in rental payments.

Several months after the signing of the second RMOA, the Supreme Court (SC) revoked the Special Economic Zone tax and fiscal incentives in Camp John Hay. This derailed the financial viability of the project, forcing CJHDevco to suspend rental payments and prevented it from proceeding with any further construction, Sobrepeña said.

Owing to the SC ruling, then-Baguio City Mayor Braulio Yaranon, revoked all building and development permits in Camp John Hay, resulting in the complete stoppage of all construction and development work at Camp John Hay. Sobrepeña noted that it took five years before Congress partially restored the benefits of the JHSEZ. With investment by CJHDevco in Camp John Hay already over P2.6 billion and despite the five-year period it took the government to partially restore the fiscal and tax incentives in Camp John Hay, CJHDevco agreed to acknowledge the rental during the period BCDA was in default, on the condition that BCDA would guarantee it would establish a One-Stop-Action Center which would process and issue all permits within a 30-day period.

On July 1, 2008, BCDA and CJHDevco entered into a compromise which was called the third RMOA, where the latter agreed to several substantial concessions, including the assumption of prior rental obligations amounting to more than P2.69 billion and current annual rental of P150 million.

The BCDA undertook to establish an effective mechanism that would facilitate CJHDevco development of Camp John Hay.

Editor: Dionisio L. Pelayo • Wednesday, October 15, 2014 A3

Govt asserts jurisdiction in transgender killing, but not custody of suspect

M

By Butch Fernandez

ALACAÑANG on Tuesday vowed to assert Philippine jurisdiction over the case of Filipino transgender Jeffrey Laude, who was killed allegedly by a US marine in Olongapo City, but the Palace also conceded that the United States will retain custody of the American soldier suspected of committing the crime, invoking provisions of the RP-US Visiting Forces Agreement (VFA).

“Mahalaga sa ating pamahalaan na mabigyan ng solusyon ang krimen na ito at magawaran ng katarungan ang pagpaslang sa isang mamamayang Pilipino,” Communications Secretary Herminio B. Coloma Jr. told reporters at a briefing.

At Camp Crame, Quezon City, the National Police identified the US marine suspected of killing Laude as Pfc. Joseph Scott Pemberton of 2nd Battalion, 9th Marines.

Senior Supt. Pedrito de los Reyes, Olongapo police chief, said Pemberton was “positively identified” by witness Mark Clarence Gelviro from a “photo lineup” provided by the US Naval Criminal Investigative Service.

Coloma quoted Undersecretary Eduardo Oban of the VFA Commission as saying that officials of the Philippine and the US governments already “agreed upon the importance of a thorough investigation so that the ends

Aquino ally mulls filing impeachment rap against Binay

By Jovee Marie N. dela Cruz

A

N ally of President Aquino in the House of Representatives on Tuesday said he is planning to file an impeachment complaint against Vice President Jejomar C. Binay.

Liberal Party (LP) Rep. Edgar Erice of Caloocan, in a news conference, said that Binay may be impeached for betrayal of public trust following the Senate investigation on alleged corruption in the reportedly overpriced construction of the Makati City Hall Building II when he was the mayor of Makati City.

Erice said the revelation of Makati City Vice Mayor Ernesto Mercado, during a Senate hearing, that the Vice President was able to raise more than P1 billion for his 2010 vice presidential campaign from the kickbacks is an impeachable offense.

The lawmaker also said Binay also violated the Republic Act 6713, or the Code of Condut and Ethical Standards for Public Officials and Employees, for failing to declare his farms in Batangas and Tagaytay in his Statement of Assets and Liabilities Net worth (SALN).

“May nakikita na akong mga dahilan. Una, iyong sinabi ni Mercado during the [Senate] hearing na ginamit iyong proceeds from the Makati building and other buildings to finance the campaign of VP Binay. I think that’s an impeachable offense. Second, sinabi ni [United Nationalist Alliance Secretary-General] JV Bautista that the property in Tagaytay was sold in 2012. Noong nakita ko iyong SALN ni VP Binay for 2008, 2009, wala iyong property na iyon sa kanyang SALN. So mali iyong SALN,” he said.

Earlier, Erice, a known critic of Binay, said he is still planning to file a political amendment to the Constitution lifting the six-year single term limit for the President.

He said that he believed that only President Aquino can sustain the reform.

But LP Rep. Jerry Treñas of Iloilo has said that Binay may not be impeached for an allegedly overpriced parking building because the allegations happened when he was the Makati City mayor.

Under the rules, impeachable officers only include the President, Vice President, members of the Supreme Court, the Ombudsman and members of constitutional commissions.

Binay and son Makati Mayor Erwin “JunJun” Binay and several city councilors have been accused of plunder before the Ombudsman over the supposed overpricing of New Makati City Parking Building contract, which considered the most expensive parking complex in the country.

In a nine-page complaint-affidavit, lawyer Renato Bondal and Nicholas Enciso VI accused the two Binays and the officials as being behind the overpricing of a new parking building built along F. Zobel Street in 2007.

The building was worth P2.3 billion but complainants said according to National Statistics Office data, the cost should have only been P245.6 million.

A Senate subcommittee is conducting an investigation on the alleged overpricing.

Speaker Feliciano Belmonte Jr. already said the lower chamber will not investigate the alleged overpricing of the Makati building.

of justice will be served.”

Confirming that the principal suspect, Pemberton, is still in the country, Coloma said the Palace was leaving it up to the National Police to provide updates and disclose other details on the progress of their investigation of the crime reported to have been committed in Olongapo, site of the former US Subic Naval Base.

“Ipauubaya po natin sa National Police ang paghahayag ng mga detalye hinggil sa pagsisiyasat. Sila po ang lead agency ng ating pamahalaan hinggil dito at sila ay nakikipag-ugnayan sa Naval Criminal Investigation Service,” he added.

Coloma explained that in consonance with the Mutual Defense Treaty between the Philippines and the US, the VFA was adopted to govern the periodic visits of the elements of the US armed forces in the Philippines.

“This is an integral part of the Philippines’s national defense framework. The VFA contains specific provisions on the legal processes to ensure that justice will prevail. The Philippine government is firmly committed to attain this objective,” Coloma asserted.

He cited a provision of the VFA, “Paragraph Number 6, Article 5” which, he said, specifically deals with criminal jurisdiction.

“Kailangang ihiwalay natin iyong aspeto ng

criminal jurisdiction sa aspeto ng custody.

Sa aspeto ng criminal jurisdiction, ang mayroong hurisdiksyon sa mga paglabag sa batas sa loob ng bansang Pilipinas ay ang pamahalaan ng Republika ng Pilipinas. At sa aspeto naman ng custody, ayon sa VFA, ang may custody ay ang pamahalaan ng Estados Unidos.”

Coloma assured that the Philippine government will enforce the detailed processes spelled out under the VFA, the primary aim of which is to render justice when a crime is committed.

“Kailangan pong masunod ang mga umiiral ng probisyon ng Visiting Forces Agreement. At gaya ng aking naipaliwanag...ang jurisdiction ay nasa Republika ng Pilipinas, at ang custody kung ang sangkot ay US military personnel, ay nasa kamay naman ng Estados Unidos,” he said.

A ranking Department of Justice official meanwhile said the Philippines may seek custody of Pemberton.

Justice Undersecretary Jose Justiano noted the Philippine government also has the right to take custody of Pemberton pending proceedings in connection with the killing of Laude.

Justiniano, however, added that it is the Department of Foreign Affairs (DFA) that has the authority to intepret and implement the provisions of the VFA. With Joel San Juan

Economy

A4 Wednesday, October 15, 2014 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

DPWH steps up construction of P15.52-B Naia expressway project

briefs energy dept pushes for ENERGY-CONSERVATION THE Department of Energy (DOE) has issued a circular to promote energy-conservation measures for the summer of 2015. ”The circular enjoins all sectors to implement energy-conservation measures to reduce the country’s demand for supply of electricity,” the Energy department said in a news release on Monday.

The DOE issued Department Circular (DC) 2004-08-0014 entitled “Enjoining all ElectricityConsuming Sectors to Implement Demand-side Management Program and other Energy Conservation Measures” to promote energy savings from both household and private institutions.

The circular excludes hospitals, military installations and airports, along with other facilities.

Under the circular, the Energy Utilization Management Bureau (EUMB) will develop and implement various electricity demand-side management programs and projects around the country. It includes incentives and penalties for following or breaking the provisions of the circular based on public consultations.

“Energy conservation must be keenly practiced in order to secure a steady supply of energy in the country...as we develop awareness on energy efficiency and utilization must be prioritized to produce confident, well-informed and responsible electricity consumers,” EUMB Director Patrick T. Aquino said.

The EUMB director noted that the conservation plans include government offices and governmentowned and controlled corporations.

Aquino emphasized that government offices will not use airconditioning units if the weather is cool enough.

On the occasion it is used, the thermostat shall be set no lower than 25º Celsius. PNA

dbm releases p98.5m to boost trade promotions THE Department of Budget and Management (DBM) has released P98.5 million to boost trade promotions by holding expositions and missions.

Budget Secretary Florencio B. Abad said the P98.5 million was released to the Center for International Trade Expositions and Missions (Citem) to fund international trade events, as well as the Manila FAME and Design Week scheduled this month.

He said that a total of P49.9 million will be allotted to the 60th Manila FAME and Design Week Philippines, the country’s annual design and lifestyle event that showcases locally made furniture and products to the world market.

“This occasion will provide opportunities for small mediumscale entrepreneurs [SMEs], artisans, and manufacturers to feature their creations to the local and international audience,” Abad said in a news statement released on Tuesday.

Abad said the funds are not only meant to meet the country’s growth targets but increase international interest in the Philippines as a source of quality products and services.

“Events like these support our local industries, especially the SMEs, as their efforts can help contribute to the country’s rising growth,” Abad said.

Citem, the export-promotions arm of the Department of Trade and Industry (DTI), provides exportdriven programs and spearheads official participation in overseas trade fairs. It also organizes signature trade events in the Philippines and other promotional activities in key markets abroad.

Abad also said P37 million will be used to spend for other international events. The rest of the funds will be used for Citem’s general administration and support for its trade-promotion activities.

Estrella Torres

By Lorenz S. Marasigan

C

handicraft store

A stallkeeper tends to his merchandise of novelty gift items comprised of Capiz-made wall decorations, varnished wooden boxes and shelves among others at a bazaar in Greenhills, San Juan. Most of the items on display can be bought at a reasonable price ranging from P300 to P500. With the approach of the holiday season, similar stalls carrying and selling different gift items are expected to mushroom in every nook and cranny of the city. Nonie Reyes

Palace: P1.056T SPF in 2015 budget bill won’t be spent for 2016 poll campaign

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By Butch Fernandez

alacañang on Tuesday allayed fears that the Aquino administration’s trillionpeso special-purpose fund (SPF), which sharply increased by P379-billion in the proposed 2015 budget, could be used for campaign-related purposes in advance of the 2016 national elections.

Former National Treasurer Leonor Briones had earlier aired apprehensions shared by concerned sectors that portions of the huge SPF, being lump sum, may be diverted to bankroll various projects not specified under the regular budget in order to boost Palace-backed candidates likely to run in the administration ticket.

The Department of Budget and Management (DBM), in a briefer on the “special-purpose funds in the national budget,” confirmed that total SPFs in the 2014 National Expenditure Program already add up to P1.056 trillion.

But the Budget department explained that SPFs are budgetary allocations in the General Appropriations Act (GAA) allocated for specific purposes, adding that “these are usually lump sum in nature, as the recipient departments or agencies and/or the specific programs and projects have not yet been identified during budget preparation and legislation.”

It added that the SPFs are then made available for allocation to

agencies in addition to their built-in appropriations during budget execution, pursuant to special provisions and conditions pertaining to the SPF. The DBM clarified, however, that these funds have specified socioeconomic purposes, citing, for instance, the calamity fund and contingency fund which, it said, “have to remain in lump-sum form due to the specific purposes that the funds serve.”

But it added that “certain funds are, in fact, fleshed out into detail, like Budgetary Support to Government Corporations and the International Commitments Fund.”

Communications Secretary Herminio B. Coloma Jr. cited President Aquino’s 2015 budget message sent earlier to Congress explaining that, “based on established management practice, it is customary that a certain portion of the annual budget is set aside for contingency expenditures that are essentially variable and not amenable to precise determination at the time of budget preparation.”

“The national government, perhaps the largest corporation in the

Philippines, follows such best practice in establishing the special-purpose funds totaling P501-billion.

Out of this amount, P378 billion are programmed appropriations, while the P123-billion are unprogrammed appropriations,” the Palace statement said.

It pointed out that programmed appropriations include allocations “for which the availability of funds has already been determined and assured, while those that are unprogrammed will be appropriated only if there are additional sources of revenue or excess of revenues over projected revenues, new loans, new loan proceeds and other new sources of revenue.”

Coloma added that, in order to promote inclusive development, the biggest portion of the budget is allotted to social services at P967.9billion, or 37.2 percent. The 2015 budget, he said, also focuses on delivering high impact projects in 44 provinces with the following characteristics: high poverty magnitude, where more job opportunities will be created; high poverty incidence that requires adequate social safety nets; and those that are vulnerable to natural calamities.

“This budget also enhances government’s accountability for the results of public spending. According to the President—and I quote—“We continue to implement the basic management principle that each peso that the government spends must be tightly linked to measurable results.”

He recalled that, in the 2014 budget, the performance targets were pegged against the outputs or tangible goods and services that the agencies must deliver. The pro-

posed budget for 2015 now includes indicators for outcomes. “Hence, this budget does not only show how many households or families, for example, will benefit from the Pantawid Pamilyang Pilipino Program, but also discloses how many of these beneficiaries will actually be lifted from the level of survival to a level of subsistence, and eventually to a level of self-sufficiency.”

Coloma then proceeded to give a breakdown of the P378 billion in programmed appropriations: calamity funds, P14 billion; contingency funds, P2-billion; international commitment fund (used to pay obligations to the United Nations and other international organizations), P7.4-billion; pension and gratuity funds, P140.6-billion; miscellaneous personnel and benefit fund (for the vacant and unfilled positions and for the performance-based bonus, bonuses, and other incentives), P118billion; E-government, P1-billion; rehabilitation and reconstruction, P1-billion; budgetary support to government-owned and -controlled corporation (GOCC), such as PhilHealth, Napocor, and others, P62.7 billion; and allocation to local government units, P33 billion, for a total of P378 billion.

Under the unprogrammed appropriations, Coloma also listed the following among the major components: budgetary support to GOCCs, P5 billion; Armed Forces of the Philippines modernization, P10-billion; and Equity buyout of the Metro Rail Transit Corp., P53.9 billion.

“If you want to examine how these funds are going to be disbursed, you may wish to look at the readily available document, which is the GAA for

ONSTRUCTION works for the completion of the P15.52-billion Ninoy Aquino International Airport (Naia) Expressway project have shifted to high gear, a Cabinet official reported.

This development, however, would result in traffic congestion along the cities of Pasay and Parañaque.

Department of Public Works and Highways (DPWH) Secretary Rogelio L. Singson had advised motorists to take alternative routes, such as Edsa and Roxas Boulevard when going to and from the international gateway.

“As construction activities shift to high gear at Naia Expressway, a 7.15-kilometer four-lane elevated expressway project under the public private partnership program, we anticipate that vehicular movement along the vicinity of Andrews Avenue, Domestic Road, MIA Road and Diosdado Macapagal Boulevard will be affected by the ongoing works,” Singson said.

Singson added that, “While San Miguel Corp.’s infrastructure arm Optimal Infrastructure Development Inc. and its nominated civil work contractors will do their best to manage traffic along the road network traversed by the project, we hope the motorists and commuters will also plan their trips, be aware of the traffic conditions leading to the airport and take other route options.”

To date, cumulative work accomplishment is at 10.6 percent, with construction implementation divided into two phases: Phase 2A between Entertainment City to Naia Terminals 1 and 2 and Phase 2B from Domestic Road to Terminal 3 at Sales Street.

The project will provide better access to the Naia and the Entertainment City and will connect to the Skyway network of Metro Manila with the existing Manila South Luzon Expressway at Sales Interchange. About 80,000 travelers per day will benefit from reduced travel time once the elevated road opens as scheduled by October 2015.

Agas-Agas Bridge

IN another development, Singson directed his office’s arm in Region 8 to protect the structural stability of AgasAgas Bridge, the highest bridge in the Philippines situated along the Daang Maharlika in Sogod, Southern Leyte.

“In view of the observed occurrence of landslides and scouring at bridge piers 1 and 2 following recent experience of heavy rains in the area, this could seriously damage the foundation of the superstructure if neglected,” he said.

DPWH Region 8 Director Rolando M. Asis, for his part, reported that his office has already taken measures to facilitate the appropriate restoration and rehabilitation methods.

“Program of work and plan to protect the bridge from imminent damage are being readied for submission to the DPWH Central Office,” Asis added.

In an inspection in August 2014 by a team of engineers, led by Southern Leyte District Engineer Ma. Margarita C. Junia, it was found out that the 84-meter-high bridge spanning 350-long is exposed to damage risks since the ground where both piers of the bridge (Bridge Pier 1 and Bridge Pier 2) are rooted has scoured and the access road to underneath the bridge had collapsed.

Lawmaker smells something fishy in DOTC move to defer bidding of MRT 3 maintenance contract

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arty-list Rep. Terry L. Ridon of Kabataan on Tuesday questioned the decision of the Department of Transportation and Communications (DOTC) to defer the public bidding for the maintenance contract of the Metro Rail Transit 3 (MRT-3).

The excuse advanced, Ridon said, was supposedly to give prospective bidders more time to prepare.

In a bid bulletin released recently, the DOTC moved the deadline for submission and opening of bids for

the P2.2-billion three-year maintenance contract of MRT 3 from the original October 17 to October 28.

“It is highly suspicious, especially as the said train line has a long history of anomalous dealings, which even the Ombudsman is now investigating. We like to ask if this adjustment in the bidding schedule is being done to accommodate a favored bidder,” Ridon said.

The DOTC explained that the deferment of the deadline for submission of bids aims to allow bidders to

“prepare more competitive bids.”

“With all the issues hounding the operations of the MRT 3, the last thing the public needs is a rigged maintenance contract,” Ridon added.

The youth lawmaker has earlier castigated DOTC for failing to pay for maintenance services in the last seven months.

During the plenary debates on the DOTC budget in September, it was revealed that the DOTC has failed to pay APT Global, the current maintenance contractor, for seven months now.

The DOTC explained that the seven-month nonpayment was due to the penalties that they had imposed on APT Global.

However, Ridon disputed this claim as the DOTC has even extended the APT Global contract for a few more months until a new bidding for the maintenance contract has commenced. “Clearly,theDOTCcouldhave adequately spent for the maintenance of the MRT. But it did not. We must remember that the serious maintenance issues arose only in the last six months

of its continuing nonpayment of the maintenance contractor.”

Ridon said that, by restricting the MRT’s maintenance cash flow, the DOTC was unreasonably putting the riding public in danger.

“The DOTC under the Aquino administration seems to be forcing the MRT to systematically bog down. If the coach doors remain open during transit, it is the ultimate responsibility of the DOTC and the current presidency,” Ridon said.

Marvyn N. Benaning

Economy BusinessMirror

news@businessmirror.com.ph

briefs mmda, jica sign p74.7-m agreement to restore ncr flood-monitoring system

THE Japan International Cooperation Agency (Jica) on Tuesday signed a memorandum of understanding (MOU) with the Metropolitan Manila Development Authority (MMDA) for the improvement and restoration of telemetry equipment of effective flood control operation system (EFCOS).

MMDA Chairman Francis N. Tolentino said the agreement paves the way for the upgrade of the gathering of real-time flood information for disaster preparedness and flood-mitigation activities in Metro Manila and nearby provinces.

“The restoration will improve the whole system of telecommunication by the newly approved frequency assignment,” Tolentino said, adding that under the agreement, Jica will provide the funding amounting to P74.7 million for the restoration of the system.

The MMDA, on the other hand, will shoulder the maintenance and customs taxes and duties of EFCOS estimated to cost around P16.1 million. The project is set to start in January next year and the rehabilitation is expected to be completed within 15 months.

Tolentino said they have crafted a proposal for Phase III of the project that aims to restore the components damaged by typhoons.

The advance warning system provides appropriate gauging of rainfall and water levels at each gauge station. Jica Philippines Chief Representative Noriaki Niwa said the rehabilitation of damaged facilities will mitigate the loss of lives and properties in Metro Manila.

“The project will have a safer place for people living in Metro Manila,” Niwa said. Claudeth Mocon-Ciriaco

ona: phl’s response to health challenges must ‘go beyond borders’ Health Secretary Enrique T. Ona declared on Tuesday that the country’s response to global health challenges must “go beyond borders” following the Philippines’s election as head of this year’s 65th Session of the World Health Organization (WHO) Regional Committee for the Western Pacific region.

The WHO Regional Committee for the Western Pacific opened on Monday in Manila to review WHO’s work over the past year and to discuss major health issues. The Regional Committee will also decide on measures the organization will take to address the health and well-being of the region’s 1.8 billion people.

“The health challenges we face today are borderless. Hence our response must go beyond borders as well,” Ona said as he welcomed the country’s election as chairman of the annual meeting of the WHO’s Governing Body in the region.

“The Philippines is fortunate to have experienced this borderless response during Supertyphoon Yolanda [international code name Haiyan]. This same spirit can be used to any threat to health in any part of our region,” Ona said, adding that indeed, health and hope for better health can be borderless.

“I believe that, as ministers, we need to work more closely with local government authorities. And we need to cast our net widely, so to speak, and engage other partners in the private sector, to work on the health of cities and densely populated areas, particularly in relation to health and the environment,” Ona said.

Over the next few days, the health chief said that he is looking forward to “your active participation in the discussions on very important health issues that require our urgent attention and action.”

Meanwhile, in his opening address to the Regional Committee, WHO Regional Director for the Western Pacific Dr. Shin Young-soo expressed gratitude to the Philippines that has served as the home of the WHO Regional Office for the Western Pacific since 1951. Claudeth Mocon-Ciriaco

Wednesday, October 15, 2014 A5

In anticipation of cargo-volume growth with the approach of holiday season

LTFRB extends issuance of PA to port truckers

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By Lorenz S. Marasigan

he land-transportation regulator is now accepting applications of trucks-for-hire that operate in and out of the two ports in Manila, a move seen to mitigate congestion brought about by the anticipated growth in cargo volume during the holidays.

Diskwento Caravan leather bags

The Mandaluyong City local government plays host to a pre-Christmas season Diskwento Caravan in partnership with the trade department. Photo shows one of the stalls that sells locally made leather bags. Nonie Reyes

Local entrepreneurs positive on PHL business outlook, GEI survey shows

F

ilipino entrepreneurs remain confident that the country’s economic environment would improve in the next six months.

In the Philippine release of the recent Global Entrepreneur Indicator (GEI) by the local chapter of the Entrepreneurs’ Organization (EO), 60 percent of business owners said they expect a better operating environment, while 40 percent think it would stay the same. This is a stark difference versus the average global sentiment of 33.24-percent improvement, 2.72-percent deterioration, and 61.80-percent continuation of the status quo.

The survey also said that 73.33 percent of local businesses reported a favorable business environment while 93.33 percent predict it to be better in next six months.

The GEI, released globally every year for the last five years, uses five indicators such as job creation, outlook, employment, debt and revenues to forecast global trends. It reflects key figures from 2,800 members of the EO, mostly small and medium enterprises (SMEs) across 46 countries.

The data in the Philippine study was based on the responses of local chapter members.

Opportunities

Data from the Philippine Institute for Development Studies and the Trade department said SMEs—which account for 99.6 percent of total registered enterprises, currently contribute 35 percent to the country’s gross domestic product.

Among other SME merits include the stimulation of local demand through job creation, competition and innovation.

At the backdrop of the Asean economic integration, which takes effect in 2015, SMEs are still faced with challenges such as access to finance and information.

To further the growth of the sector, the 2011 to 2016 micro, small and medium enterprise development plan indicated a target of increasing its contribution to 40 percent gross value added through government support in terms of competitiveness and productivity.

No dissolution order yet for two PNOC subsidiaries

By Lenie Lectura

E

nergy Secretary Carlos Jericho L. Petilla said on Wednesday that the two subsidiaries of the Philippine National Oil Co. (PNOC), which were ordered abolished by Malacañang, would continue to operate pending a formal dissolution notice.

President Aquino earlier approved the abolition of Development and Management Corp. (DMC), the real-estate arm of state-owned PNOC, and Alternative Fuels Corp. (AFC), formerly known as Philippine Petrochemical Development Corp., due to their respective poor performances cited by the Governance Commission for Government-Owned and -Controlled Corporations.

“Order has been given by Malacañang. The same directive asked the DOE [Department of Energy] and the SEC [Securities and Exchange Commission] to conduct a TWG [technical working group] for the dissolution of the two subsidiaries.

However, until such time that a formal dissolution is implemented, the two will continue to operate but without entering into new contracts,” Petilla said.

The TWG was tasked to implement the winding down of the operation, disposition of assets and settlement of liabilities of PNOCDMC and PNOC-AFC. “The final output of the TWG is to produce a discussion document outlining the liquidation to guide the TWG members in their respective roles and responsibilities, with due regard to the most expeditious and convenient manner of implementing the President’s order of action,” Governance Commission Chairman Cesar Villanueva said in a letter.

PNOC-AFC was established in July 2006. Its primary mandate is to explore, develop and accelerate the utilization and commercialization of alternative fuels in the country.

Land Transportation and Franchising Regulatory Board (LTFRB) Chairman Winston M. Ginez said the board was directed by the Cabinet Cluster on Port Congestion to accept new applications for provisional authority (PA) from port-operating trucks.

There are approximately 12,000 trucks that operate at the ports in the capital. Only 5,000 trucks have PA at the moment.

“After a careful study of the port situation and consideration of the plight of truck port users, as well as the possible economic impact to our local agribusiness sector and consumers, we will comply with the directive of the Cabinet Cluster,” Ginez said.

He said the agency’s move aims to address the current backlog and ease port congestion in time for the coming holiday season.

“We support the national government’s recommendation to extend the issuance of provisional authorities to truck port users to ensure sufficiency and availabil-

Peza: Ecozone locators may pull out if power woes persist

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ocators in economic zones may pull out their investments in the country if the government fails to avert the looming power crisis next year, warned Philippine Economic Zone Authority (Peza) Director General Lilia de Lima.

De Lima said the government should assure the investors that there will be enough power supply to prevent any disruption in business operations.

“Very sensitive po sila, ’yung sa electronics, even a second of interruption, they will have to throw their products. They need not only power supply, but clear and uninterruptible power,” de Lima said on Tuesday.

“Kung mangyayari ’yan [brownouts], pupunta po sila sa ibang walang aberya,” she added.

De Lima said private companies have committed 318 megawatts under the Interruptible Load Program, which they will use to power their generators during the power crisis in the summer of 2015.

Energy Secretary Carlos Jericho L. Petilla said rotating outages next year should only last seven weeks and concentrated during peak hours due to a projected deficit in energy supply.

President Aquino has requested for additional powers to address the situation while assuring energy investors that the market will not be affected.

He earlier said that his request for a joint resolution authorizing the national government to contract additional generating capacity “is to make sure our economy does not lose its momentum in the event of an energy shortage.”

“I am aware that investors in the energy sector are worried about these measures distorting the market, but let me assure you: government intervention is meant only to address the shortage,” he said. ABS-CBNnews.com

ity of cargo trucks to decongest the ports of Manila,” Ginez said.

The tight bottleneck at the ports during the past few months was caused by the recently lifted truckban policy of Manila. It resulted in roughly billions of dollars in lost revenue from February to July.

Since the ban was lifted, the movement of goods in and out of the ports have increased by as much as 40 percent. However, with still a high volume of shipments that need to be cleared from the port, congestion remains a problem.

“The lack of cargo trucks will cause massive problems for consumers and businessmen, especially now that we have a backlog of more than 20 ships queued for berthing at the Port of Manila,” said George S. Chua, president of the Federation of Philippine Industries.

He added, “At this point, any plan that can help get precious goods in and out of the country and help sustain the country’s fast-growing economy is welcome.”

Opinion BusinessMirror

A6 Wednesday, October 15, 2014

Editor: Alvin I. Dacanay

editorial

Going beyond trust and approval ratings

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ATELY, survey firms have been reporting that the Senate Blue Ribbon subcommittee’s investigation of Vice President Jejomar C. Binay in connection with the alleged overpricing of Makati City Hall Building II has affected his trust and approval ratings very badly. His sympathizers are distressed by this turn of events, while his opponents are jumping with joy.

But how are we, the people, supposed to react to this development? Do we condemn the Vice President? Absolve him? Or ignore it altogether?

It is good that we are thinking of the issue, for it is different from having an opinion about it. The survey reports are reports of perception, of assumption and, yes, of opinion. Not of facts, not of so-called objective truths.

This is where the difficulty lies. Perception reports, heavy with numbers and backed by a particularly precise methodology, present the appearance of solidity, misleading the public into believing that they show the guilt or innocence of the person involved.

The issue that is of real interest to the nation—in this case, the moral culpability of the Vice President—is lost in the shuffle. The so-called bandwagon effect takes over—voters who want to identify with the winners shift to the side of the majority, to the chagrin of the prospective winners and to the dismay of the prospective losers.

This is dangerous in a democracy, where such an effect determines the outcome of elections. It is one thing to argue that survey firms are merely exercising their freedom of expression or reporting public opinion, but it is another to point out that survey reports, in fact, influence public opinion.

In the normal scheme of things, perception surveys are polls conducted by a business to determine whether a product or service it is contemplating to launch will be well-received by consumers. The extent of the responding public’s enthusiasm shapes the business’s subsequent decisions and actions.

At its end, the whole exercise leaves everybody better off: consumers, with greater satisfaction; the business, with greater profits.

When these surveys intrude into the political sphere, the reporting of their results produces not the benign effects of the polls conducted by businesses, but effects that are rather questionable. Their intrusion into the electoral process distorts the process. Prior opinion becomes de facto opinion. It is true that prior opinion can be reversed, as exemplified by the famous Truman-Dewey reversal, but the probability of this happening is slim, unless the electoral race is extremely close, as the perception pollsters themselves will testify.

What are we to do in light of all this? Nobody will want to deny survey firms the right to free expression, much less the right to earn income—which are fundamental rights in our democracy—but, perhaps, we may want to establish some boundaries or a time frame on what they can do, for the sake of the democracy we want to preserve.

Why not go easy on so-called trust and approval ratings, which are unabashedly based on perception and conjecture, and focus more on fact-based opinion? On the matter of elections, why not pay more attention to, say, professional qualifications and service records of prospective candidates, and, of course, exit polls, where the results can be as factually based as anything else?

These issues are not new. They were confronted by our judicial system some 15 years ago. Perhaps, it is time to revisit them.

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Pinoy workers in Germany to benefit from social-security deal Susie G. Bugante

All About Social Security

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AST month Manila and Berlin signed a social-security agreement to ensure the equal protection of Filipinos working in Germany and Germans working in the Philippines.

Officials from the Department of Foreign Affairs, the Social Security System (SSS) and other government agencies were the signatories to the bilateral agreement, which was initiated in March last year. It will then be ratified by the Philippine Senate and approved by President Aquino.

After his talks with German Chancellor Angela Merkel in Berlin last month, President Aquino said the agreement would not only foster equality of treatment in the workplace, but “also improve the processing of claims and prevent dual coverage.”

Among the highlights of the agreement are the “totalization” and export of social-security benefits.

Totalization means that Filipino

workers who have divided their career time between the Philippines and Germany will be able to combine the contributions they made in both countries to meet eligibility requirements for social-security benefits or pension in either or both countries.

If a Filipino worker in Germany has not reached the required number of contributions to qualify for a benefit, the concerned German institution will take into account that worker’s

contributions in either the SSS or the Government Service Insurance System (GSIS).

The export of social-security benefits, on the other hand, means that a covered Filipino worker in Germany, including his or her dependents or survivors, shall be eligible for socialsecurity benefits under the same conditions as German citizens in Germany. In addition, a worker will continue to receive his or her benefits wherever he or she decides to reside in the Philippines, Germany or another country.

A Filipino worker residing in Germany does not have to return to the Philippines to file a claim. The German liaison agency will transmit his or her claim to its Philippine counterpart. Workers covered by this agreement are assured of administrative assistance from designated liaison agencies, such as the SSS and the GSIS in the Philippines, and select key agencies; the administering pension and steelworkers’ insurance; farmers’ oldage security; and health-insurance funds in Germany.

The agreement will benefit about 55,821 Filipinos in Germany, of whom 45,647 are permanent residents, while 10,174 are temporary.

Aside from this agreement, the Philippines has also entered into similar bilateral deals with Austria, Belgium, Canada, France, Switzerland, Spain and the United Kingdom, which are now being implemented. Bilateral agreements with Portugal and Denmark have also been signed and submitted to the Senate for ratification. The salient features of the agreements are consistent with International Labor Organization conventions.

For more information about socialsecurity bilateral agreements with other countries, contact Atty. Roberto Bautista, the head of the SSS International Affairs Department at (632) 920-6401, local 5737, or e-mail him at bautistara@ sss.gov.ph.

Susie G. Bugante is the vice president for public affairs and special events of the Social Security System. For comments about this column, e-mail her at susiebugante.bmirror@gmail.com.

Nobel for the Charles Barkley of economics

By Noah Smith Bloomberg View

I

MANAGED to call this year’s Economics Nobel correctly.

Actually, it wasn’t difficult. Jean Tirole is a name uttered so frequently in the field that the most surprising thing about his Nobel win on Monday was that he hadn’t won the prize already.

That’s how the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel works—it’s usually a lifetime achievement award, rather than an award for a specific innovation or discovery.

That fact made the committee’s decision particularly hard this year, because Tirole is an economics polymath. Bill Walton once said of Charles Barkley: “[He doesn’t] really play a position. He plays everything.

He plays basketball.” Tirole is kind of like the Charles Barkley of economics, only without the politically incorrect commentary.

If you could summarize Tirole’s area of research in a single sentence, it would be about corporations. One might think that corporations are one of the easiest, most natural things for economists to study, but one would be wrong. In fact, many economists wonder why corporations even exist.

A lot of macroeconomic models, for instance, assume that companies work like Chinese peasants in the Great Leap Forward—a million identical little producers, all making steel in their backyards.

Only a few economists have both the mathematical chops and the sheer mental doggedness to try to slice through the jungle that is the

modern United States corporation, but Tirole has both of these. The machete he wields is game theory. Game theory is very different from the typical economic theory you hear about; Adam Smith’s “invisible hand” is nowhere to be found. Instead, game theory deals with strategic interactions, with smart people trying to bluster, wheedle, threaten and team up with each other.

That sounds a lot like working in a corporation. And it also sounds a lot like the way corporations interact with each other, and with the government. The work the Nobel committee finally decided to cite in Tirole’s award was about the way that government should regulate firms in different kinds of competitive environments. If you have a monopoly, that requires different regulation from an oligopoly, which, in turn, is different from a perfectly competitive situation. Things such as mergers and acquisitions require their own sort of regulation, as do cartels. Smith warned darkly about

cartels, but it wasn’t until the advent of the game theory that we understood something about how to deal with them.

Notice that Tirole’s work on regulation defies the typical stereotype of what economists do. Many people think that economics is all about providing justifications for free markets, or assuming that businesses always do what’s best for their shareholders.

Tirole, instead, takes a more practical approach, dealing with businesses as they are, not as they should be, and recommending government intervention when such an intervention could improve the situation.

Personally, I’m familiar with a different side of Tirole’s oeuvre—his work on finance. Tirole has written a book on the theory of corporate finance (called, not surprisingly, The Theory of Corporate Finance). It deals with all the aspects of finance theory that don’t get a lot of attention in the media—hostile takeovers, for example, or corporations’ bias toward financing themselves with debt. The basic idea is that to understand how corporations finance themselves, you have to understand the strategic interactions among managers, shareholders, bondholders, customers, suppliers, employees, the government and others. If the Efficient Market Hypothesis—the idea that markets rapidly assimilate all information, making it hard for investors to profit—makes an appearance in Tirole’s theory, it is only

as a very bit player.

But rest assured, Tirole has also taken on the topic of asset markets and efficiency. In fact, Tirole has shown not one, but at least two ways that efficiency could fail and bubbles could take over. The first way is if traders think only in the short term and ignore the long term—not an unrealistic idea, for those of us who have met some real-world traders.

The second way results from trading between older and younger generations. Tirole has also done a lot of theory about financial crises and liquidity, the things that demonstrated their importance in 2008.

One point to note about Tirole’s work is that it’s mostly theoretical—and by “mostly,” I mean everything I’ve ever read or seen. Another common knock against economists is that they focus too much on deduction and theory, imagining how people should interact without going out and seeing how they do interact.

But that criticism doesn’t always hit the mark—it’s perfectly natural to have a division of labor where some people make the theories and others test them. And many of Tirole’s theories are perfectly testable.

There is a lot more to Tirole’s work than what I’ve managed to describe here, but that would be true even if I wrote three times as much as I have.

When you’re dealing with the Charles Barkley of economics, sometimes all you can do is sit back and admire the whole body of work.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Can China pacify its restive minorities peacefully?

Butch del Castillo

Inter Press Service

OMERTA

First of two parts

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Cynically, Chinese authorities treated his dedication to broader understanding among Chinese ethnic groups as a threat to the country’s territorial integrity.

Tohti’s supporters consider him a peaceful, yet passionate advocate for human rights. Instead, he has been treated as just another Islamic extremist from the Xinjiang region.

In recent years minority groups all over China have grown progressively more restive, with peaceful demonstrations increasing alongside violent terrorism. Separatists in the western regions have launched attacks against government buildings and innocent bystanders, while others have engaged in acts of civil disobedience, including hundreds of self-immolations.

These are not arbitrary actions. Uighurs and Tibetans, among other underrepresented ethnic groups in China, have long felt oppressed by Communist Party policies. The government’s initial response has been to crack down on these “separatist forces” with an iron fist as a means to maintain social order and a semblance of unity.

Yet, this response has only led to deeper resentment, prompting the government to explore alternative measures. Although the government has not completely abandoned the “iron fist” policy, as the story of Tohti reveals, the Communist Party has devised a number of other strategies to address ethnic unrest. Many of these fall into the category of “soft power.” Nowadays, the Chinese leadership is vigorously pursuing both approaches, deploying either a carrot or a stick, depending on the circumstances.

Rising unrest

TIBET is overwhelmingly populated by ethnic Tibetans, while Uighurs constitute a plurality in Xinjiang. Han Chinese have increasingly settled in both regions, especially in Xinjiang, where their numbers nearly match those of the Uighurs, which has led to clashes.

Even though China’s official language is Mandarin, Tibetan and Uighur are the preferred languages—and, sometimes,

the only spoken ones—among the many natives of the western regions. Unlike the generally nonreligious Han, Uighurs and Tibetans are highly religious: the Uighurs are overwhelmingly Muslim; the Tibetans, overwhelmingly Buddhist.

Many Uighurs and Tibetans do not consider themselves as actual Chinese citizens, or their homelands as part of mainland China. For example, Uighurs in Xinjiang often refer to their region as East Turkestan and refuse to use any other name.

Even though minorities are exempted from certain national laws, such as the one-child policy, the Chinese government’s rigorous political oversight of their territories has created friction among the various ethnic groups. Many Muslims in Xinjiang believe that government policies pose a threat to their cultural identity and dignity.

In 2014, for example, Chinese authorities restricted the observance of Ramadan. Drastic measures were taken to prohibit the use of the Koran in educational settings, discourage attendance at madrasas, and curtail customary fasting habits.

Younger generations have been the most vulnerable to these sanctions, since they find themselves obliged by their teachers and superiors to ignore their Islamic traditions. The government in Beijing is not only targeting children and average Uighur citizens, but also the local authorities. Xinjiang officials themselves have been reprimanded for openly expressing their religious beliefs.

The people holding the highest positions of power in China tend to come from the dominant Han ethnic group.

Smaller communities have been perennially marginalized and overshadowed.

Lately, this underlying animosity has escalated, resulting in outbursts of violence, not only in Tibet and Xinjiang, but all over the nation.

To be concluded on Thursday Piero Sarmiento is a contributor to Foreign Policy in Focus.

Why Jennifer Lawrence is so wrong about her stolen nude photos

By Robin Abcarian Los Angeles Times (TNS)

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AS actress Jennifer Lawrence sexually violated when someone stole her nude photographs and posted them on Internet sites a few months ago?

She seems to think so.

“It is not a scandal,” she told Vanity Fair contributing editor Sam Kashner in the magazine’s November issue. “It is a sex crime. It is a sexual violation. It’s disgusting. The law needs to be changed, and we need to change.”

No doubt, Lawrence and other actresses whose privacy was similarly violated were victims, and the Federal Bureau of Investigation is reportedly investigating the theft of photos and videos.

Technically, what happened is not a sex crime. But it definitely was a crime.

The question is: Which existing law was violated?

The Washington Post offers several possibilities, noting that the man who hacked photos of Mila Kunis and Scarlett Johansson was fined $66,179 and sentenced to 10 years in prison in 2012 for violating wiretapping laws. That seems pretty just to me.

I read and reread Vanity Fair’s interview with Lawrence, trying to decide if I agreed with her. Her outrage is palpable, and understandable.

But it’s hard to take her seriously as the face of criminal justice reform when she says things like this: “Anybody who looked at those pictures, you’re perpetrating a sexual offense. You should cower with shame. Even people who I know and love say, ‘Oh, yeah, I looked

at the pictures.’ I don’t want to get mad, but at the same time I’m thinking, I didn’t tell you that you could look at my naked body.”

People who I know and love?

I don’t want to get mad?

Why would you not want to get mad at people you know and love, and who, by your own definition, have sexually violated you?

Because, I would submit, looking at stolen nude photos is not the heinous crime everyone is pretending it to be.

The fact that Lawrence’s own friends and loved ones are looking at the images perversely proves my point.

I would never discount Lawrence’s feelings of exploitation and violation, but I dare say, she is a complicit member of the very generation that has normalized digital nakedness. She was not victimized by paparazzi aiming a long lens at her bedroom or into her vacation villa.

She shot a selfie and pressed “send.”

I’m not the first to point out that we are in a great social conundrum here.

We are both obsessed with digital privacy and obsessed with digital exposure.

Those two impulses are always and inevitably on a collision course. But I just don’t think this is a case where the law has failed to catch up with technology.

I think this is a case of misplacing our faith in technology itself. Call me callous, but I think that anyone who stores naked photos on cloud servers, or sends them to another person, has, in a very real sense, forfeited control of the images.

“Either your boyfriend is going to look at porn or he’s going to look at you,” Lawrence told Vanity Fair.

And so, in this complicated age, is everyone else.

A7

Infrastructure: Why P-Noy can’t soar like an eagle

By Piero Sarmiento

ONG KONG—The Uighur scholar Ilham Tohti was recently sentenced to life imprisonment on charges of separatism.

The former economics professor, who resided in Beijing for most of his career, is internationally known for his countless articles promoting stronger interethnic dialogue between Uighurs and China’s majority Han population. Through writing and peaceful advocacy, Tohti tried to lessen the friction between Uighurs and the Han community while advocating for Uighur rights.

Wednesday, October 15, 2014

Conclusion

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RESIDENT Aquino is being urged by the Philippine Business Conference (PBC) to “focus on the infrastructure deliverables during the remainder of his term of less than two years.” That quote came from PBC Chairman George T. Barcelon. He said the President should, henceforth, avoid being sidetracked by politics and the 2016 presidential elections.

Among the big-ticket projects in the public-private partnership (PPP) pipeline that has been left on the back burner since it was first proposed is the North Luzon Expressway-South Luzon Expressway Connector Road Project.

The proponent of this project is the Metro Pacific Tollways Development Corp. (MPTDC). In 2010 it submitted an unsolicited proposal to the newly installed Aquino administration, specifying the details of what looks like a brilliant infrastructure idea.

In that proposal, MPTDC volunteered to connect both expressways through an elevated highway above the Philippine National Railways railroad line, so there would be no right-of-way problems to contend with and allow its untrammeled construction. To me, this is the brilliant aspect of that proposal.

(For a broader view of what Metro Manila needs to end its “infrastructure woes,” a study conducted by the Japan International Cooperation Agency estimates that Metro Manila needs to construct at least 137 kilometers of new roads, another 78 km of urban expressways and more than 200 km of new rail transit lines, both elevated and underground.)

The length of the elevated connector road that MPTDC is proposing to build may be only 13 km, but, once constructed, it would significantly ease the daily gridlock in Metro Manila by offering an alternative route to vehicles that must traverse the metropolis from north to south, and vice versa.

Besides, it is a strategic approach,

since it would also link the Ninoy Aquino and Clark international airports, and provide better access to Manila’s ports.

This approach is similar to that taken by some of our neighbors, such as Singapore, Hong Kong and Bangkok, which have had to construct elevated roads because of the scarcity of available ground-level spaces.

Legal soundness

UNFORTUNATELY, four years after the proposal was first submitted, government authorities are still sitting on it, as if they expected to remain in office for more than six years. Every time MPTDC followed up on the project, it was told that the due diligence being done by the

government was still in progress.

Part of that due diligence, as officials of the Toll Regulatory Board (TRB) would tell them, was finding out if the project is legally sound.

I don’ think its legal soundness would take longer than one year, at the most, for the Department of Justice (DOJ) to rule on. Here is a clear case of foot-dragging or dillydallying by the bureaucracy.

But it soon became evident that it was the TRB that has been blocking the project all along, for reasons only it can—and must—explain.

No wonder the Aquino administration’s infrastructure-accomplishment record is so dismal. How can PNoy soar like an eagle if he is working with a bunch of turkeys at the TRB? It will be recalled that, in January, a group of “concerned citizens” wrote a letter to the Department of Transportation and Communications (DOTC), Department of Public Works and Highways, TRB, Philippine National Construction Corp.

(PNCC) and the PPP Center on behalf of a group of foreign and local investors to ask if they could present a Swiss challenge to MPDTC’s unsolicited proposal.

But, as far as MPTDC was concerned, the letter from the so-called concerned citizens was obviously yet another way for the government to withhold action on its longpending unsolicited proposal.

Incidentally, sometime before

the letter was submitted, the DOTC asked MPTDC if it was amenable to doing the road-connector project in partnership with PNCC. The proposed partnership would make the project a government-private project under Presidential Decree 1894, instead of under the buildoperate-transfer mode, which is also allowed by law.

Earlier, TRB Executive Director Edmundo Reyes Jr. announced that “certain legal issues” (which were not specified) were holding up the approval process. He cited privatesector opposition to the mode of implementation of the road-connector project. He also said the TRB had asked the DOJ to resolve those issues.

It’s a pity because, had the project been approved and allowed to start in the middle of last year, there would have been enough time to complete it before President Aquino’s term ends. But obviously, that opportunity was wasted by those turkeys at the TRB. They seem to be working at cross-purposes with higher economic-planning authorities.

As we Filipinos would say in Filipino, sayang. The project would have been the sixth among the infrastructure deliverables that the PPP Center could have proudly announced during the Philippine Economic Briefing on September 30.

E-mail: omerta_bdc@yahoo.com.

Public-private partnerships: Boon or bane?

Lito U. Gagni

MARKET FILES

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HEN President Aquino returned from his working visit to Europe and the United States last month with $2.3 billion in investment commitments, with $904 million already in the bag, the buzz they created was more about the Philippines’s public-private partnership (PPP) projects, and how they could become a game-changer for a nation dealing with potholes, floods and other problems in the economy. This is the reason the President made a pitch for PPPs that would mean the entry of much-desired foreign direct investments (FDI).

This pitch, in which President Aquino underscored the attempt to make PPP project biddings transparent as part and parcel of his daang matuwid (straight path) campaign, may have unduly raised the expectations of the international business community. This is just as well, for if these expectations are unmet, it would hurt not just Mr. Aquino’s legacy and the country’s image in the global market, but also the government’s efforts to receive more FDI that would further grow the economy.

FDI, after all, are what the country needs to generate jobs, reduce poverty and net a better quality of life for Filipinos. This is what PPPs aspire for: Economic growth based on investments and not just on consumption, which is the reason for the lack of inclusive growth. Hence, even with the quarterly 7-percent growth in gross domestic product, unemployment and underemploy-

ment rates remain high.

President Aquino, who cited the country’s economic growth at each stop of his two-continent trip, himself said the investments translated into 55,500 jobs. It is, thus, imperative for his administration to ensure that the rosy investment picture he presented before the investing community is 100-percent true. International investors want a country’s investment environment to meet certain requirements.

One such requirement is that prospective projects are free from potential major conflicts and that the bidding and award process for such projects are well-defined, respected and free from politics. The President is in a good position to get more foreign and local investments in infrastructure and energy projects in the country through a credible PPP program. This means that the government should assure local and foreign businessmen that

the bidding and award process has adequate safeguards to keep it fair.

The memory of the botched handling of the Ninoy Aquino International Airport Terminal 2 project is still fresh in the minds of many foreign investors. For this reason, the country’s attempt to bid out what is, by far, its biggest PPP project—the much-ballyhooed P123-billion Laguna Lakeshore Expressway Dike Project—should be handled with great care. It is the Aquino administration’s showpiece, as far as PPP projects are concerned, and, as such, the government needs to ensure that no controversy hounds it.

Sticky issues about the project, such as the grievances aired by officials and communities in Region 4A (Cavite, Laguna, Batangas, Rizal and Quezon provinces, or Calabarzon), should be adequately addressed.

These officials, after all, are raging against the planned implementation of the project, which, they say, is not in accordance with what was agreed upon during the consultations with stakeholders. It appears that the original agreement was to implement the project on all sides of the lake, because if it is implemented on only one side, the other areas will be affected by floods.

There are two components of this particular project: a 47-kilometer road dike and the reclamation of about 700 hectares of foreshore and offshore areas in the cities of Taguig and Muntinlupa for mixedland use. As it turns out, the dikecum-highway will be built only on the Laguna side, making several areas in Metro Manila and Rizal a virtual catch-basin for waters from the

lake whenever it overflows. This is precisely the concern the stakeholders raised when they were asked for their feedback.

Aside from this, the business community is wary about the bidding and award process that accompanies some PPP projects, especially after Malacañang appeared to have shelved a major PPP project after it underwent that process. This merely fanned speculations that the process may not be free from possible intervention at all.

These are the problems that confront certain PPP projects that the government should steer clear of.

Once it removes them, the government should be able to woo more investments than what President Aquino has brought from his recent trip to Europe and the US. Foreign investments that are as large as those received by Indonesia would hopefully go a long way in getting longoverdue infrastructure projects off the ground.

If the expectations of the international business community regarding the Philippines’s investment climate and the integrity of the rules of the investment game are met, PPPs can be a boon for the country. However, the Palace must admit that there are doubts that must be dispelled. It is hoped that the government would honor what it has discussed and agreed on during its consultations with stakeholders, as well as the integrity of the bidding and awards process for PPP projects. That way, PPPs can be a boon, rather than the bane, for the Aquino administration.

E-mail: hugagni@yahoo.com.

2nd Front Page BusinessMirror

A8 Wednesday, October 15, 2014

Hunger still ‘serious’ in PHL, study shows

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By Cai U. Ordinario

espite the government’s efforts to end poverty in the Philippines, the International Food Policy Research Institute (Ifpri) said hunger in the country was still deemed “serious,” according to the 2014 Global Hunger Index (GHI).

Ifpri data showed that the country ranked 29th out of 76 countries with GHI scores of above 5. The Philippines and Lesotho were ranked 29th, and had the same GHI score of 13.1.

In 2013 the country’s ranking was 28th out of 78 countries, with a score of 13.2. This is still within the range of the 10 to 19.9 score, which indicates a serious level of hunger.

“We are excited to see that there are improvements in India, and also globally,” Ifpri Director General Shenggen Fan said. “The GHI shows that hunger has been decreasing since 1990, but there is much more to be done to address hunger—including hidden hunger—to ensure food and nutrition security for the most vulnerable.”

FAN: “We are excited to see that there are improvements in India, and also globally.”

Data also showed that in the Philippines, hunger has decreased by around 25 percent to 49.9 percent since 1990.

The Ifpri said hunger in a number of developing countries has fallen by 39 percent, and 26 countries have reduced their scores by 50 percent or more.

Angola, Bangladesh, Cambodia, Chad, Ghana, Malawi, Niger, Rwanda, Thailand and Vietnam have seen the greatest improvements in their scores between the 1990 GHI and the 2014 GHI. However, levels of hunger are still “alarming” in 14 countries, and “extremely alarming” in two—Burundi and Eritrea.

The Ifpri said one particular concern is hidden hunger, which is the focus of the report. The institute said hidden hunger is difficult to detect, but could be devastating for individuals and the countries they live in.

The report stated that hidden hunger weakens the immune system, stunts physical and intellectual growth, and can lead to death.

It also wreaks economic havoc, as well, locking countries into cycles of poor nutrition, lost productivity, poverty and reduced economic growth.

“What is needed now is more practical action on the ground, such as our RAIN project in Zambia, [which is ] included in this year’s GHI report, and more political action at the international level to end all forms of malnutrition,” Concern Worldwide CEO Dominic See “Hunger,” A2

DOMESTIC HELPS IN HK TO GET HIKES IN COMPENSATION

I

t’s official. Foreign domestic helps (FDH) in Hong Kong, which include over 130,000 Filipinos, will receive starting October 1 a HK$100 (P575.25) increase in their minimum wages and an additional HK$ 44 (P253.11) in food allowance.

Labor Secretary Rosalinda DimapilisBaldoz announced this on Monday, after she received a report on the increase from Hong Kong-based Labor Attaché Officer in Charge Ma. Nene G. German.

“The report says that the increase in minimum wage and food allowance will apply to all contracts signed on or after October 1, 2014,” Baldoz said.

In her report, German said the Hong Kong Labor Department announced the increase during a meeting it held with the consulate generals of India, Indonesia, Nepal, the Philippines, Sri Lanka and Thailand.

The increase brings the minimum-allowance wage of FDH in Hong Kong to HK$4,110 (P23,642.77) and the food allowance to HK$ 964 (P5,545.41).

At present, the majority of Hong Kong employers provide free food to FDH. Employers may, however, choose to pay a food allowance in lieu thereof. Under the Standard Employment Contract for hiring FDH, employers are required to provide FDH with food free of charge. PNA

www.businessmirror.com.ph

SM Keppel sets $265-M expansion of The Podium

By VG Cabuag

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M Land Inc. and Keppel Philippines Properties Inc. on Tuesday said they will embark on the second phase of the expansion of The Podium mall in Ortigas Center.

The two companies’ joint venture, SM Keppel Land Inc., said it will spend some $265 million, or about P11.8 billion, for the expansion of the property, which currently consists of a five-story retail mall and a 42story office building.

“The retail expansion will add over 34,000 square meters of retail space to The Podium, bringing the total leasable space to over 50,000 sq m when the expansion is completed in 2016,” the company said.

The new mall will also be five stories high and will have a six-level basement car park.

The expanded mall, which has a budget of $80 million, is expected to be completed by 2016.

On the other hand, the new 42-story office tower will be completed in 2019, and will offer a net leasable area of over 89,000 sq m of office space.

The new tower, which will have a development cost of about $155 million, will be located at the expanded mall.

SM Keppel is a joint venture among Banco de Oro, Unibank and Keppel Properties.

Keppel Properties, which mainly derives its income from management, advisory and consultancy fees, reported a net loss of P3.55 million for the first half of the year, from last year’s profit of P8.85 million.

For the second quarter alone, its revenues only reached P6.6 million, down by P2.9 million from last year.

With The Podium undergoing major renovation in its retail spaces, it resulted in lower occupancy and rental rates.

On the other hand, its general and administrative expenses grew by 31 percent to P5.5 million for the second quarter.