Businessmirror 10 16 2014

Hospital safety guidelines The CDC provides guidelines for hospitals in the prevention and control of Ebola transmission. These are the personal protective gear recommendations for health care personnel working with a potentially infected patient.

Sequence for putting on necessary protective equipment

1 Isolation gown

2 Mask or respirator should fit snugly to face and cover bridge of nose to below the chin.

Ties or elastic band should be secure at middle of head and neck.

must fully cover torso from neck to knees, arms to end of wrists and be wrapped around the back and fastened.

3 Goggles or face shield must fit securely and shield eyes.

Safe work practices • Keep hands away from face.

• Limit surfaces touched.

• Change gloves when torn or heavily contaminated.

• Wash hands immediately after removing all protective equipment.

4 Gloves are

equipped last and should extend to cover the wrist of the gown.

© 2014 MCT Source: Centers for Disease Control and Prevention Graphic: Troy Oxford, Dallas Morning News

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Dallas nurses on Ebola hospital care: ‘There was no protocol’ No evidence dogs, cats can spread Ebola virus

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U.N. Media Award 2008

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44-minute game?

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| Thursday, OCTOber 16, 2014 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

“I have no doubt in my mind that if I went to Steve and said tomorrow, ‘You know what, I’m going to start Jeremy and the games that you’re available, we’re going to bring you off the bench,’ he’s such a professional that I don’t think it would be a problem whatsoever,” Scott said on Tuesday.

Nash was not available for comment after practice but he would not fight the switch, according to a person familiar with his thinking. Either way, the Lakers planned to sit him for about one-fourth of their games in the regular season.

Lin probably won’t play in Thursday’s game against Utah because of a sprained ankle but should be ready on Sunday for the Lakers’ fifth preseason game out of eight.

Lin said he would “no question” like to start but had a hard time expressing his thoughts, mainly because he respected Nash while watching NBA games as a teenager, long before he began playing in them.

“Just talking to him, he wants to be

healthy, he wants to enjoy what is probably his last year and I would want them for him, as well,” Lin said. “But at the end of the day, whatever position [Scott] calls me to, or whatever it is, I’m going to do my best.”

players or get rid of them or discard them... this organization doesn’t do that.”

Bryant also wondered whether there would be a lockout in coming years even though the NBA just agreed to a broadcasting deal worth $24 billion with the parent companies of TNT, ABC and ESPN. “It’s very easy to look at the elite players around the league and talk about the amount of money they get paid,” Bryant said. “But we don’t look at what the owners get paid, or how much revenue they generate off the backs of these players.

“Now you have a TV deal that comes out and you look at it almost being up a billion dollars from the previous one. It’s going to be interesting to see what happens in this next labor agreement.... I’m sure they’ll try to lock us out again, and harden the cap even more.” Los Angeles Times

KOBE TALKS MONEY

KOBE BRYANT said he was grateful the Lakers went against the trend of some other franchises that have convinced some of their stars to take contracts below market value.

“I’m one of the luckiest basketball players in the league because I got very fortunate to be with an organization that takes care of its players,” said Bryant, who signed a well-scrutinized two-year, $48.5-million contract extension last November to stay with the Lakers. “I think it speaks volumes not only to me and to the city, but to other players around the league, as well. When you look around at some of the other owners that try to milk their

44-MINUTE

GAME? THE Brooklyn Nets’ Cory Jefferson leads a basketball clinic for children with disabilities in Beijing, China, on Tuesday. The Brooklyn Nets will play a preseason game against the Sacremento Kings on Wednesday. AP

The National Basketball Association’s (NBA) willingness to explore the impact of shortened game should not be minimized. The league doesn’t make these moves lightly, and there’s a chance the NBA will experiment with 44-minute games next preseason and in the NBA Development League, which is often used as testing ground for new concepts.

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LOS ANGELES Lakers guard Kobe Bryant (24) and guard Jabari Brown sit on the bench during their preseason game against the Golden State Warriors in Ontario, Canada, over the weekend. AP

By Jeff Zillgitt

just reached a nine-year, $24-billion TV deal— also shared by both sides—and that amount is based on the number of games the networks can televise each season.

Unless both sides are interested in making less money, a shorter season is not happening.

Now, the NBA, coaches and the competition committee will watch minutes played per player.

One thought is that it would reduce the number of minutes played, which would eliminate miles on a player not only during the season but over the course of a career.

If the NBA played 44-minute games for an 82-game season, it would eliminate about seven games worth of minutes from a regular season, which would be a nod to reducing player minutes without eliminating games. However, that doesn’t mean a coach would play certain players fewer minutes.

Thorn acknowledged the league doesn’t know how substitutions will play out, and that’s one reason this is exploratory. The league wants to start gathering data, and that’s why it won’t be a surprise if additional 44-minute test games are added a year from now and in D-League contests.

“Let’s get some empirical evidence regarding this and take a fresh look at it,” Thorn said.

If the average game is about two hours and 15 minutes, squeezing the game into a two-hour time frame might result in a better fan experience at the arena and at home.

Not everyone is happy about it. Indiana Pacers Coach Frank Vogel said he sees problems.

“I see why they are doing it...but personally I don’t really like it,” Vogel told reporters on Tuesday.

“I don’t have enough minutes to get all my guys enough minutes to keep them happy. So going to take away four minutes of the game that’s going to make my job a lot harder.”

The league will examine Sunday’s game with a close eye on total time of the game and player substitution patterns.

There’s no suggestion yet that the NBA is headed to making this permanent. But it strengthens the notion that NBA Commissioner Adam Silver is open to ideas that challenge the status quo.

USA Today

HE 44-minute National Basketball Association (NBA) preseason game— four minutes less than a regulation contest—between the Brooklyn Nets and Boston Celtics is an experiment.

This is only a test for the NBA. Forty-four minute games are not imminent, NBA President of Basketball Operations Rod Thorn told USA TODAY Sports on Tuesday.

But, likewise, the NBA’s willingness to explore the impact of shortened game should not be minimized. The league doesn’t make these moves lightly, and there’s a chance the NBA will experiment with 44-minute games next preseason and in the NBA Development League, which is often used as testing ground for new concepts.

At the NBA coaches meeting last month, length of games was a topic, and it was suggested the NBA consider a shorter format that would reduce the length of game as a means to reduce minutes for some players and maybe improve the flow of the game.

“We have looked at everything that we do and are taking a fresh look at all the different things we do,” Thorn said. “One of the things that keeps coming up is our schedule and the length of our games.... Our coaches talked about it, and a lot of them seemed to be in favor of at least taking a look at it. We talked with our competition committee, and they were in favor of taking a look at it.”

On Twitter, the barometer in which public opinion is often measured today, there was support and opposition to the idea.

The dissenters had these refrains: The minutes don’t need to be reduced. It’s fine the way it is.

Cut back on the number of regular-season games played—instead of an 82-game season, play 70.

The reduced minutes will impact reserves, limiting their time on the court and possibly affecting how they are paid.

A shorter regular season is highly unlikely because it cuts into ticket revenue, which is shared by players and owners. Also, the league

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U.S.-Russia vow intel-sharing on I.S. The World BusinessMirror

B3-6 Thursday, October 16, 2014

US, Russia vow intel-sharing on Islamic State

US Secretary of State John Kerry (left) and Russian Foreign Minister Sergey Lavrov talk as they walk together on the grounds of the Chief of Mission Residence in Paris, France, on Tuesday. The top US and Russian diplomats are hoping to find a way to begin reversing a yearlong spike in tensions stemming from Ukraine’s revolution and civil war.

AP/CARoLyn KASTeR

Obama, allies plot anti-ISIS strategy

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A S H I N G T O N—P r e s i dent Barack Obama and military chiefs from more than 20 nations gathered on Tuesday in a show of strength against Islamic State (IS) fighters in Iraq and Syria.

But the alliance faced a fresh test as Turkey launched air strikes against Kurdish rebels inside its borders, defying pleas from the US to instead focus on the IS. The attacks marked Turkey’s first major air strikes against Kurdish rebels on its own soil since peace talks began two years ago, and occurred amid heightened concern over Islamic State advances on the Syrian town of Kobani.

Kurds in Turkey accuse the government there of standing idly by while Syrian Kurds are being killed in the besieged border town.

The US has been pressing Turkey to take a more active role in the campaign to destroy the Islamic State group. Officials from Ankara were participating in Tuesday’s meeting at Andrews Air Force Base, Maryland, where US officials said the coalition countries were to discuss their strategy.

“This is an operation that involves

the world against ISIL [Islamic State of Iraq and the Levant],” Obama declared, referring to the militant group by one of its many names.

Officials from Ankara participated in the meeting at Andrews Air Force Base.

A US military official familiar with the talks said the chiefs of defense agreed to recommend to their governments that they continue to move forward together against the extremists, “to contribute capabilities best suited to each nation, and to take action to build on the successes already achieved by coalition efforts on the ground and in the air.” The official requested anonymity for providing the information.

Earlier Tuesday the US-led coalition launched 21 air strikes in and around Kobani. One of the strikes targeted the Tel Shair hill that overlooks parts of the city, according to Idriss Nassan, deputy head of Kobani’s foreign relations committee.

Nassan said Kurdish fighters later captured the hill and brought down the black flag of the IS group.

The extremist group still controls more than a third of the predomi-

Rights group: Iraq Shiite militias killing Sunnis

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AGHDAD—Iraq’s Shiite militias have abducted and killed scores of Sunni civilians with the tacit support of the government in retaliation for Islamic State group attacks, Amnesty International said on Tuesday, as a suicide car bombing claimed by the Sunni extremists killed 23 people, including a Shiite lawmaker.

The Shiite militiamen number in the tens of thousands and wear military uniforms but operate outside any legal framework and without any official oversight, the London-based watchdog said, adding that they are not prosecuted for the crimes.

The accusations were based on interviews with relatives of victims and survivors who claimed that members of four prominent Iraqi Shiite militias—Asaib Ahl al-Haq, the Badr Brigades, the Mahdi Army, and Ketaeb Hizbollah—were behind many abductions and killings of Sunnis in the country, the rights group said in a 28-page report, entitled “Absolute Impunity: Militia Rule in Iraq.”

Sunni grievances have metastasized since the US-led invasion that toppled Saddam Hussein in 2003 and handed power to the longoppressed Shiite majority.

Sunni anger helped fuel the rampage across northern and western Iraq by the Islamic State group and the onslaught has aggravated sectarian tensions elsewhere, again driving Iraq to the brink of civil war.

Asaib Ahl al-Haq and the Hezbollah Brigades were among a group of Shiite militias backed by Iran that carried out lethal attacks against US bases in June 2012.

A spokesman for the Iraqi military, Brig.

Gen. Saad Maan Ibrahim, dismissed the Amnesty report, saying that the government would “in no way be an accomplice for killing its own citizens.”

He added that the Iraqi government and its military “do not support any group, including militias, which work to kill innocent people.”

Amnesty says the fate of many of the Sunni abductees remains unknown and that some captives have been killed even after their families paid ransoms of $80,000 and more.

Waleed Khalid, a shop owner in Baghdad’s Sunni-majority Slueikh district, was headed to Sadr City for his weekly trip to restock his store when he received a call on Monday from a Shiite friend warning that the militias were out in force, kidnapping Sunnis they came across in the Shiite stronghold. AP

nantly Kurdish town.

While the White House has tried to point out progress in the campaign against the militants, the government is also preparing the American public for a military effort that could extend well beyond Obama’s presidency.

Officials acknowledged on Tuesday that the air strikes in Kobani might not be enough to prevent a militant takeover, given the lack of an effective fighting force on the ground.

“We certainly do not want the town to fall,” White House spokesman Josh Earnest said. “At the same time, our capacity to prevent that town from falling is limited by the fact that air strikes can only do so much.”

Syrian Kurds have been begging the international community for heavy weapons to help bolster their defense of Kobani. They’ve also called for Turkey to open the border to allow members of the Kurdish militia in northwestern Syria—known as the People’s Protection Units—to travel through Turkish territory to reinforce the city. So far, both requests have gone unfulfilled. AP

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world

Grace and favor

EAR God, we know from the very start that Your grace and favor make up all we have from You, not by luck nor chance. We strive each day to earn our daily bread and other basic needs.

We express our desires and goals but we believe that Your will ultimately sums up everything we want to have. May Your grace and favor be abundant to each one of us. Amen.

CITAS SUGUE AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

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Ways to prevent and fix air-travel ‘fail’ B G H | Airfarewatchdog.com

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VERYONE likes to complain about air travel these days and all the things that can go wrong—canceled flights, missed connections, overbooking, lost bags, and bad customer service. Here are some common air travel woes, and how to prevent, and fix, them.

I WAS BUMPED FROM MY FLIGHT ■ How to prevent: Bumping (involuntary boarding) is relatively rare, but some airlines are worse than others, so avoid them. Avoiding peak travel days (Tuesday and Wednesday are the slowest) and peak holiday periods also helps. Don’t be the last person to check in for your flight, get to the airport as early as possible, and if you have status in the airline’s frequent flyer program, that helps too.

■ How to fix: Ask to be put on another airline’s flight if that will get you to where you’re going faster than your original airline (some airlines still offer this option if there are seats available). If you’ll be delayed more than an hour, you’re entitled to cash compensation (refuse to accept an airline travel voucher). To lessen the pain, ask for a free pass to the airline’s airport lounge if you’re not already a member. If you’re on Twitter, many airlines try to fix bumping issues there; Google airlines’ Twitter “handles.”

MY CHECKED BAGS (OR CONTENTS) WERE STOLEN ■ How to prevent: Other than not checking bags in the first place, there’s no sure way to prevent theft. Bags and their contents can be pilfered by baggage handlers, TSA agents, and even by thieves who hang around the luggage carousels. Some bags are taken from carousels by accident because they all look alike, so choose one in a bright color rather than black. Locks help, but only so far. Never pack valuables or electronics in checked bags, because

>>

MORE THAN D2 ECSTATIC TO BE ‘LEFT BEHIND’

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airlines won’t compensate for these if lost or stolen. If traveling internationally, consider buying “excess valuation” coverage from your airline (it’s inexpensive), since airlines offer paltry compensation for international travel. Make sure you have receipts for any expensive items in your bag. And make sure you don’t lose your checked bag receipt. It’s also not a bad idea to lock your carry-on bag while in the overhead compartment.

■ How to fix: Even if your bag arrives at the bag claim safely, it’s a good idea to open the bag and check the contents. If there’s a problem, file a claim with the airline before leaving the airport. Airlines are required to cover up to $3,400 for domestic travel, but much less for international flights, and they will depreciate the value of the contents. If the airline denies your claim or only pays part of the bag’s value, check your credit card: most cards offer lost or damaged bag insurance for free, even for carryon bags, and some even cover electronics such as cameras and computers, as long as you paid for the trip with the card.

MY FLIGHT WAS CANCELED OR DELAYED ■ How to prevent: Every US domestic flight is required to have an on-time performance score assigned to it and some flights are more prone to cancellations or delays than others. For example, in August, United flight 5714 from New York JFK to Washington Dulles was canceled 6 percent of the time and on-time (defined as within 15 minutes of schedule) just 45 percent of the time—not very reassuring if you’re making a connection. Some airlines, such as United, post this information online or you can call the airline and ask for its on-time and cancellation numbers. Avoid flights with dismal performance statistics, and naturally you up your chances of success by avoiding connecting flights.

If you must connect, avoid doing so in winter through cold weather airports that are prone to snow storms, such as Chicago and Minneapolis, opting for Phoenix or

Thursday, October 16, 2014

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FRIGHTFUL FUN AT CRIMSON

EXPERIENCE a one-of-a-kind family affair this Halloween as Crimson Hotel Filinvest City, Manila (tinyurl.com/ovprpvn), sets a frightfully fun escapade that will surely have you and your family scream in delight. Spend a bewitching night in one of the hotel’s luxurious rooms for a quick and easy way to celebrate Halloween.

For as low as P4,888 net per night, get to stay in a Deluxe Room inclusive of buffet breakfast for two and two passes for the Tricks and Treats Halloween Festival on October 26. This room package is valid until festival day.

The whole family can enjoy the spirit of Halloween and Thanksgiving with Tricks and Treats Halloween Festival, which happens at the Crimson Grand Ballroom. Kids can go trick-or-treating in their favorite and most creative costumes and enjoy a lot of other “spooktacular” activities.

This family festivity is in partnership with Kids First Discovery Space as it celebrates its 10th anniversary, and with Rajito, kiddie couture by fashion designer Rajo Laurel.

Expect a trail of fun and entertainment starting off with a Silent Auction for the benefit of Move. org Foundation and Starlight Training School for Special Youth, followed by a fashion show featuring Rajito, puppet and magic show, mom and pop trunk show, looming workshop, arts and crafts, haunted playhouse, and more.

Halloween ticket price is at P950 net per person.

Children aged 2 and below are free of charge.

For room and ticket reservations and inquiries, call 863-2222.

Houston instead.

■ How to fix: Have a plan B. Keep a list of alternate flights, even if on a competing airline, and ask to be rebooked. It’s often faster to use Twitter rather than waiting in line at the airport. If all else fails and you have to overnight, ask—nicely—for hotel accommodations (airlines are not required to provide rooms or meals, but many do). Again, your credit card may include free compensation (usually $100 per day) if you incur expenses due to a delay or cancellation.

I COULDN’T FIND SEATS NEXT TO MY TRAVELING COMPANION(S) ■ How to prevent: Book seats as early as possible.

If you’re traveling with a child 12 years of age or younger, be sure to indicate that when you make your reservation since airlines do attempt to sit children together with companions if they know the child’s age. Or call the airline’s reservation number and request adjacent seats ■ How to fix: If all else fails, get to the airport super early and ask for seat reassignment. And if that doesn’t work, bring along some Starbucks gift certificates of movie passes to “bribe” passengers to switch seats with you.

I CAN’T FIND FREQUENT FLYER SEATS FOR THE DATES I WANT ■ How to prevent: The best strategy is to look for seats way ahead, or at the last minute. Airlines open up frequent flyer seats close in to departure if it looks like they won’t be able to sell them. Look for seats on partner airlines.

■ How to fix: If all else fails, don’t hesitate to call the airline’s frequent flyer service number rather than just looking online. And check for seats often, since inventory changes frequently as people holding seats release them or change their plans.

■ George Hobica is founder of the low-airfare listing web site Airfarewatchdog.com.

A ROOM with a divine view in Discovery Country Suites Tagaytay.

TRAVEL IN STYLE WITH DISCOVERY

IT’S never too early to plan a vacation and travel in style. The Discovery Leisure Co. Inc., the management company behind the Discovery hotels and resorts, presents its Second Visit Discovery Travel Mart ongoing until October 16 at the SM Megamall Atrium.

The Visit Discovery campaign is Discovery’s open invitation to the public to experience Discovery Suites in Ortigas Center, Discovery Shores Boracay, Discovery Country Suites Tagaytay and Club Paradise in Palawan.

It is also a unique opportunity for our guests to get a glimpse of the exciting new developments happening with the Discovery group, including the much-awaited opening of Discovery Primea in Makati City.

Take advantage of the special rates offered exclusively during the travel mart. Join the My Discovery Elite loyalty program and enjoy bigger discounts on room rates during the travel mart. Tick off Palawan, Tagaytay, Boracay from your travel bucket list next summer or grab the opportunity to book a staycation during the Christmas holiday in Makati or Ortigas with the Discovery hotels at the travel mart.

For details, visit www.discoveryhotels-resorts. com.

Airport travelers to face new Ebola measures THE deadly Ebola virus scare will impact every international passenger arriving on international flights into Detroit Metro Airport and other American airports, the government announced on October 8.

All passengers will closely be observed for signs of illness and given information about Ebola symptoms as they pass through customs and immigration.

In addition, the temperatures of passengers will be taken by Center for Disease Control (CDC) officials as they arrive from West Africa into five airports—New York’s JFK, Washington Dulles, Chicago O’Hare, Newark and Atlanta, the White House announced.

The measures to protect the American public took on new urgency on Wednesday with the death of Liberian

Ebola patient Thomas Eric Duncan in Dallas.

Michigan passengers supported the precaution.

“I wouldn’t have a problem if someone took my temperature,” said Kathy Sidebottom of Battle Creek, who was at Metro Airport awaiting a flight to Rhode Island.

“I would want to know if someone could be a potential threat.”

On October 8 the Department of Homeland Security instructed its agents at all airports and other ports of entry to observe all arriving passengers entering the country for signs of Ebola and “general signs of illness.”

Last week the Association of Professional Flight Attendants, which represents 60,000 flight attendants at 19 airlines, urged the government to do more.

Detroit has 16 flights arriving from overseas per day, said airport spokesman Michael Conway, 35 if you count flights arriving from Canada and Mexico. Detroit has no incoming flights directly from West Africa, or even the continent of Africa. However, many passengers from all over the world connect to flights that come through Detroit via Frankfurt, Paris and Amsterdam.

For example, in 2009, Umar Farouk Abdulmutallab, also known as the underwear bomber, flew from the West African nation of Ghana to Amsterdam before connecting to Northwest Flight 253 onward to Detroit.

Detroit is one of 20 US airports to have a CDC quarantine area in its international arrivals area. If someone is sick, he or she is observed and treated in this

area by trained paramedics.

In addition, Michigan has four vehicle international ports of entry from Canada: two in Detroit (the bridge and the tunnel); Port Huron, and Sault Ste. Marie.

Ebola is a virus that has killed about 70 percent of those who contracted it during the latest outbreak in West Africa. It is transmitted by contact with its victims’ bodily fluids—such as vomit, blood or saliva. More than 3,400 people have died of Ebola in West Africa during the current outbreak—the worst on record.

The outbreak was first detected in Guinea in March and has since affected Liberia, Sierra Leone, Nigeria and Senegal, where at least one patient has been identified. In addition, a nurse in Spain who treated two Ebola-stricken

missionaries has tested positive for the disease and is in isolation. Hers is the first known transmission of the virus outside Africa.

This morning at Metro Airport, arriving international passengers had mixed feelings about the risk of Ebola to themselves or other travelers.

“You hate to trample on people’s rights,” said frequent international traveler Brian Schwanitz of Houston, who was in Detroit en route from Moscow via Amsterdam.

“Traveling is complicated enough without adding health risks and another level of concern.”

However, he supported evaluation of any international patient who appeared ill, “distressed or sweating.”

life

DETROIT FREE PRESS/MCT

The Bangko Sentral ng Pilipinas (BSP) on Wednesday reported that overseas Filipino workers (OFWs) sent home in August $2.053 billion in cash remittances, bringing the total remittances in the first eight months to $15.538 billion.

The remittances in August proved 6 percent larger than in the same month last year, having grown largely unchanged from July’s remittance-growth numbers.

The cumulative inflows in the first eight months of the year, meanwhile, grew 5.8 percent. This was also unchanged from the June-and-July year-to-date growth rates this year.

The central bank remained optimistic on future remittances of the more or less 10 million overseas Filipinos, citing the strong demand for their well-known skills and competence.

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ABU KHATALLAH InDICTeD on BenGHAzI ATTACK ASHInGTon—Ahmed Abu Khatallah, who is suspected of helping direct the September 2012 attack on the US diplomatic mission in Benghazi, was indicted on Tuesday as the “leader of an extremist military group” who conspired to carry out the fiery ambush that killed the US ambassador to Libya and three other Americans.

Abu Khatallah, the only person taken into US custody in the assault, could face the death penalty if convicted. He faces a total of 18 charges, including counts of murder “in the course of an attack on a federal facility.”

The federal indictment identified Abu Khatallah as the “commander of the Ubaydah Bin Jarrah, an Islamist extremist militia in Benghazi which had the goal of establishing sharia law in Libya.”

The group merged in 2011 with Ansar al Sharia, another Islamist extremist entity, and Abu Khatallah became the “Benghazibased leader” of the combined organization, according to the indictment. MCT

ways to prevent and fix air-travel ‘fail’ D

Sept. 30: Tests confirm Duncan has Ebola.

Friday: Nina Pham, who cared for Duncan at Presbyterian, discovers she has a fever.

She arrives at the hospital and is isolated.

© 2014 MCT Source: Wire reports; Dallas Morning News research Graphic: Troy Oxford, Dallas Morning News

September October 24 25 26 27 28 29 30 1 2 3

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Late Saturday: A blood test conducted by the state confirms that Pham has the Ebola virus.

Oct. 31: The last day on which those who came in contact with Pham before her isolation will be monitored.

Early Sunday: State officials announce Pham’s illness.

It’s thought to be the first case of Ebola transmission in the U.S.

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Thursday, October 16, 2014 Vol. 10 No. 8

P25.00 nationwide | 6 sections 30 pages | 7 days a week

he strong stream of growth-boosting remittances persisted in August, which brought in another $2 billion during the month, helping provide fresh fuel for the $270-billion economy.

Global economic slump may force Fed to delay hike

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the main threat to the whole Mideast.”

The divide in their positions over Ukraine clearly persisted, however. Russia and its allied forces in the country must halt remaining violence in the restive east, pull back forces and weapons and release any hostages, Kerry said, noting that he’d told Lavrov that any independence referendums wouldn’t be recognized by the world.

The tone of Kerry’s news conference harkened back to the Obama administration’s first term, when Obama sought to reset ties between Washington and Moscow that were badly frayed by the 2008 war in Georgia and other tensions.

The spirit of goodwill yielded a nucleararms reduction pact and some other diplomatic successes, but the relationship became increasingly defined by hostility after Vladimir Putin’s return to the presidency in 2012.

The Ukraine crisis sent them to a post-Cold War low.

The “bulk” of Tuesday’s talks focused on issues other than Ukraine, Kerry stressed.

He highlighted the international campaign against the Islamic State group in particular, saying both countries recognize the group “has absolutely no place in the 21st century.” AP

Nina Pham Sept. 25: He arrives at Texas Health Presbyterian Hospital Dallas with the fever and other symptoms.

He is sent home early the next morning.

A broader look at today’s business

See “Remittances,” A2

ARIS—The United States and Russia vowed on Tuesday to renew cooperation on a broad array of global security matters, including intelligence sharing on Islamic State (IS) militants, even as the two powers remained deeply at odds over the crisis in Ukraine.

Although Secretary of State John Kerry didn’t use the term “reset”—a relationshipmending term President Barack Obama coined in his first term to tighten US-Russian ties—he employed familiar language about managing differences and forging a better partnership on matters where they agree.

After meeting for more than three hours in Paris with Russian Foreign Minister Sergey Lavrov, Kerry said both sides need to recognize they have “major responsibilities” as world powers, from combating Islamist extremism in the Middle East to dealing with Iran and North Korea’s nuclear programs.

As a concrete example of their work together, he said the US and Russia would start sharing intelligence on the IS militants, which the US and allies are fighting in Iraq and Syria.

Lavrov, speaking separately, confirmed intelligence-sharing would begin and also spoke positively about improving US-Russian ties.

“Mr. Kerry and I don’t represent warring sides,” he said.

The nations play a “special role” in the world, he said. “We can cooperate better together to increase the effectiveness of settling problems for larger society. That especially concerns the fight against terrorism, which has now become

Oct. 8: Duncan dies.

By Bianca Cuaresma

health&fitness

STEVE NASH plays well in the Lakers’ exhibition opener, but sits out their second game and pulls himself out of their third exhibition at halftime because he didn’t feel right.

Sept. 28: Duncan returns to Presbyterian by ambulance and is isolated.

August remittances up 6% T

health supplements: to take or not to take

OS ANGELES—Steve Nash has had an incredible career, but the two-time Most Valuable Player (MVP) might have to endure a new role in what is probably his final National Basketball Association season— coming off the bench as a backup.

Lakers Coach Byron Scott indicated Jeremy Lin could become the starting point guard because of Nash’s recurring back problems, a switch that made sense because of Nash’s onagain, off-again availability.

Nash played well in the Lakers’ exhibition opener, but sat out their second game and pulled himself out of their third exhibition at halftime because he didn’t feel right.

Nash, who turns 41 in February, played only 15 games last season and is in the last year of a three-year, $28-million contract. He averaged 6.8 points and 5.7 assists last season.

Scott said he hadn’t officially decided on a permanent switch but appeared to lean toward Lin for continuity’s sake.

Sept. 24: Thomas Eric Duncan begins running a fever.

MONEY SENT HOME BY OFWs IN FIRST EIGHT MONTHS INCREASED BY 5.8% TO $15.538B

INSIDE

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Oct. 19: The last day on which those who came in contact with Duncan before his isolation must be monitored.

Thomas Eric Duncan

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three-time rotary club of manila journalism awardee

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Timeline of patients

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ust as the United States job market has finally strengthened, the Federal Reserve (the Fed) now confronts a new worry: A sputtering global economy that’s spooked investors across the world.

The economic slump could spill into the US, potentially weakening job growth and keeping inflation well below the Fed’s target rate. Such fear has led some analysts to suggest that the Fed might wait until deep into next year to start raising interest rates—and then raise them more gradually than expected.

“I’m beginning to think that the Fed might delay [a rate increase],” said Bob Baur, chief economist at Principal Global Advisors, an asset-management firm. “If we don’t see a better situation in Europe and better things out of Japan and stability in China, they might hang on just a little bit longer.”

Yet, so far, the prospect of continued lower rates —which make loans cheaper and can fuel stock gains—is being outweighed by investors’ mounting fears of weakness from Asia to Europe to Latin America. After shedding 223 points on Monday, the Dow Jones industrial average is now more than 5 percent below its September peak. Americans with stocks in their retirement accounts have taken a beating—at least for now.

Continued on A2

PESO exchange rates n US 44.7590

Michael Raeuber (from left), president of the European Chamber of Commerce of the Philippines; John Forbes, senior adviser and director of the American Chamber of Commerce of the Philippines; and Nobuo Fujii, vice president of the Japanese Chamber of Commerce and Industry of the Philippines, voice their concerns over the port congestion at a news conference in Makati City on Wednesday. NONOY LACZA

Ill-timed, misplaced rules causing supply delays–eccp

By Catherine N. Pillas

A

shortage in the supply of needed goods and commodities in the weeks leading up to the Christmas season can be avoided if supply-chain bottlenecks within and outside of Manila’s ports are resolved, truckers associations and foreign chambers putting forward a list of proposals for the government to consider said on Friday.

“There could be a shortage of some of the goods Filipinos used to have in abundance during the Christmas season. If there is short supply, what does that mean? Prices will go up with importation impaired. We can see more and more of that,”said Michael Raeuber, president of the European Chamber of Commerce in the Philippines (Eccp).

The Eccp executive, however, clarified that the shortage will not be realized, and demand for goods and commodities will be met if the government heeds the remedial measures being pushed by the foreign chamber.

The supply-bottleneck situation, now emerging in the wake of the lifting of the truck ban and attendant port congestion, is more of a coordination and policy issue rather than a port capacity-related problem, according to Raeuber.

“Ill-timed and misplaced regulatory restrictions, the absence of long-term strategic planning and infrastructure development, and the confluence of lack of proper coordination between the national and local governments; all of these now impede the free flow of cargo and create damaging effects to the supply chain and to the economy altogether,” Raeuber said in a statement delivered at a news conference held at the Dusit Thani Hotel on Wednesday.

Continued on A2

Ayala Corp. adding P4B to debt-servicing funds

By VG Cabuag

A

yala Corp. dropped its plan to use the proceeds of its preferred-shares sale to augment the company’s capital spending, and will channel the money instead to its debt-servicing program.

The company earlier earmarked the proceeds to fund P4 billion worth of projects under AC Infrastructure.

Ayala will be selling 30 million class B preferred shares at P500 apiece. The offer is structured as perpetual equity securities, and will be priced based on the prevailing rate of either the five-year or the seven-year secondary-market bond rate plus a premium.

The company added a P5-billion BDO Unibank Inc. loan carrying a floating rate to the list of obligations to be paid out of the share-sale proceeds, while revising the composition of the original debts to be paid.

Among the other debts that it will pay off include the P1.46-billion loan from Metropolitan Bank and Trust Co., carrying an interest rate of 6.7 percent; various corporate notes maturing with

an interest rate of 6.8 percent at P1.49 billion; and another P5-billion BDO loan carrying a floating interest rate.

At an earlier filing by Ayala, it placed the varying corporate notes at P2.82 billion with the average rate at 7.45 percent.

The preferred shares will be offered at an initial tranche of 20 million and the remaining 10 million covering the oversubscription option. Each share will be cumulative and nonvoting.

The preferred shares will also have its dividend rate reset on the fifth and 10th anniversary of its issue date.

The company earlier said it plans to spend as much as P18 billion in capital spending between this year and the next for its list of power and infrastructure projects. For the first half of the year, it reported profits of P9.8 billion from revenues of P91.16 billion, a 34-percent increase in profit over last year, while revenues were up 22.2 percent.

The company already bagged the Light Rail Transit 1 expansion contract, together with the Metro Pacific group, and was the highest complying bidder, together with the Aboitiz group, for the Cavite-Laguna Expressway project.

n japan 0.4182 n UK 71.2250 n HK 5.7709 n CHINA 7.3079 n singapore 35.0968 n australia 39.0704 n EU 56.6738 n SAUDI arabia 11.9319 Source: BSP (15 October 2014)

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News BusinessMirror

Thursday, October 16, 2014

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Ill-timed, misplaced rules causing supply delays–eccp Continued from a1 Mary Zapata, president of the Aduana Business Club (ABC), spoke specifically against a multilayer regulatory system imposed by the Bureau of Customs (BoC) in the form of a new accreditation system that now adds the participation of the Bureau of Internal Revenue (BIR) as one of the approving bodies.

“With that kind of situation, there are a lot of importers who have been importing for a long time and do not have a derogatory record with the BoC. But because they have not yet complied with the fees and requirements [of the new system], the importers were cut and their cargo are held [up] at the BoC,” Zapata lamented.

She quickly added the customs office has already cut the accreditation of at least 1,000 importers since the imposition of the new system although exact number has not been released by the government agency.

The Eccp, in rallying behind the local business organization, added that productivity loss has also increased the demand of trucks previously from only 6,000 units to 8,000 units serving Manila ports to above 20,000 units, aggravating traffic and tripling the cost of deliveries due to the lack of trucks.

ing importers, consignees and shippers.

This can be done through a Shipper’s Council, the group suggested.

Raeuber noted that shipping lines charge hefty detention charges to consignees who fail to return empty containers within 72 hours from pickup, per day, as well as demurrage charges to truckers for their container not picked up at the port.

■ Upgrade the equipment in the secondary ports of Batangas and Subic to increase their capacity, especially the Batangas port whose utilization rate has been pegged at over 90 percent.

■ Create a direct link from the South Luzon Expressway-North Luzon Expressway connector to the port of Manila.

Rina Papa, director of Actoo, contested the franchise requirement for trucks for hire and proposed the government to review the franchise law in order to exclude the trucking sector.

“Truckers should not be under this law because we are not public-utility vehicles; our transactions are not with the public [but] rather with a limited private clientele with whom we negotiate on equal footing. We are appealing for the government to subject the franchise law, with application to the trucking sector, to a review,” Papa said

The proposals of the European, Canadian, American and Japanese Chambers of Commerce, together with the Alliance of Concerned Truck Owners and Organizations (Actoo), the ABC and the Integrated North Truckers Association (Inta) include the following: ■ Ban all bans, essentially requesting the national government to assert its jurisdiction over national roads that cut across cities in Metro Manila and expand or open 24/7 express lanes for delivery trucks. Even with the daytime truck ban in Manila lifted, the truck bans imposed by the Metropolitan Manila Development Authority should also be lifted.

■ Remove the expiration of gate passes or delivery orders for container vans in the port. These, said the groups, should be without expiration once cargo is cleared through customs. Removing the expiration will remove the validation timeline and speed up the delivery system at the port.

■ Government regulation of the allowable demurrage and detention charges for containers as the congestion and inefficiency in the delivery system in the Manila ports have led to unrestricted charging of demurrage and detention fees by shipping lines, affect-

Remittances. . . continued from a1 The BSP also said the more efficient network of bank and nonbank remittance channels established worldwide and their efforts to expand their financial services to cater to the various needs of OFWs, likewise, provided support to the inflow of remittances.

Cash remittances expanded both from land-based and sea-based migrant workers during the period.

In particular, the cash remittances from land-based workers rose by 5.2 percent to reach $11.8 billion in the first eight months of the year, while money sent home by seabased workers grew faster at 8 percent to contribute $3.7 billion to the total pool of remittances in January to August this year.

Most of the remittances, approximately 79 percent of the total, during the pe-

at the news conference.

Teddy Gervacio, president of Inta, said that container yards should also do their part in accepting empty container vans as only a number of container yards operate 24/7. Another potential problem facing truckers is the plan of the Land Transportation Franchising and Regulatory Board (Ltfrb) to phase out trucks that are more than 25 years old, which puts 80 percent to 90 percent of existing trucks of the association in danger of losing their registration.

Raeuber said neighboring countries have a similar policy but imposing one now would only add to the supply delivery constraints.

Raeuber added that if the supply problems are not resolved, the business communities in other countries may think twice when investing in the Philippines.

“The CEOs of [foreign] countries would have to justify why they are investing in the Philippines. If these problems are not resolved, the CEOs would not take the risk. In the interest of all, we have to work hand in hand to try to resolve the problem as quickly as possible. Otherwise we would not have continued growth of foreign investments. It may not suddenly stop, but it can slow down,” Raeuber said.

riod came from the United States, Saudi Arabia, the United Arab Emirates (UAE), the United Kingdom, Singapore, Japan, Canada and Hong Kong.

Personal remittances also grew during the period, albeit at a faster rate of 7.2 percent to hit $2.274 billion. The total personal remittances in the first eight months of the year hit $17.232 billion. Personal remit-

3-DAY EXTENDED FORECAST OCTOBER 16, 2014 | THURSDAY

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 440 KM EAST OF HINATUAN, SURIGAO DEL SUR. (AS OF OCTOBER 15, 5:00 PM)

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tion and professional, technical and related workers in Saudi Arabia, the UAE, Kuwait, Taiwan and Qatar.

The remittances from Filipinos working abroad remain as among the key drivers of the local economy, especially in fueling consumption. In 2013 remittances accounted for about 8 percent of the country’s gross domestic product.

3-DAY EXTENDED FORECAST

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to rein in government and private debt have slowed its expansion. And consumers in Japan are still spending listlessly after a big sales tax increase took effect in April. “The world economy’s engines have been sputtering,”said Douglas Porter, chief economist at BMO Financial Group.

Against the backdrop of a limping global economy, the United States looks like a comparative standout, even though the US economy hasn’t yet regained full health. That widening gap has boosted the value of the dollar. Compared with a basket of other currencies, the dollar has risen 7.5 percent in the past three months, TD Economics estimates.

A stronger dollar makes American goods more expensive in foreign markets and can reduce US exports. It also makes imports cheaper for Americans and puts downward pressure on US inflation.

Michael Hanson, an economist at Bank of America Merrill Lynch, estimates that a 10-percent increase in the dollar’s value over a year would reduce the US inflation rate by 0.25 percentage point. The Fed’s preferred inflation gauge is already a half-point below its 2-percent target, and an additional drop could give the Fed another reason to delay a rate increase. AP

On Tuesday solid earnings from several large US banks gave stocks an initial boost before share prices faded by the close. The Dow lost about six points.

Since the Great Recession ended five years ago, Fed officials have often stressed that their policies were devised to nurture the US economy and job market alone.

But Fed officials are now assuring international financial leaders that they will closely monitor the effects of the Fed’s policies on overseas economies.

And the Fed’s vice chairman has publicly acknowledged that the turmoil abroad could lead the Fed to act more cautiously.

“If foreign growth is weaker than anticipated, the consequences for the US economy could lead the Fed to [raise rates] more slowly than otherwise,” Vice Chairman Stanley Fischer said in a speech last weekend.

Fischer’s remarks followed a rash of data last week that pointed to slower growth worldwide. Germany reported sharp declines in factory output and exports, which raised fears that Europe’s biggest and strongest economic power could fall into recession. China’s efforts

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tances are those sent by the OFWs both in cash and in kind.

In its report on remittances, the BSP also cited the preliminary data from the Philippine Overseas Employment Administration showing 619,388 job orders for January to August this year.

About 40 percent of the processed job orders are intended for service, produc-

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The Nation BusinessMirror

Lawmaker: Exempt retirement pay from taxes

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CONGRESSMAN recently filed a measure seeking the tax exemption of the retirement pay of officials and employees who have reached the age of 45 years and have worked with the same employer for 10 years.

House Bill 4704, filed by Nationalist People’s Coalition Rep. Evelio Leonardia of Bacolod City, said the tax exemption is also sought on the retirement benefits of these officials and workers in their subsequent employment in another office.

HB 4704, now pending at the House Committee on Ways and Means, chaired by Liberal Party Rep. Romero Quimbo of Markina City, seeks the amendment of Section 32 (B) (6) (a) of Republic Act (RA) 8424, or the National Internal Revenue Code of 1997, as amended, so that retirement benefits received under RA 7641 and those received by officials and employees of private firms, whether individual or corporate, are in accordance with a reasonable private benefit plan maintained by the employer.

RA 7641 is “An Act Amending Article 287 of Presidential Decree 442, as amended, Otherwise Known as The Labor Code of the Philippines,

by Providing For Retirement Pay to Qualified Private Sector Employees in the Absence of Any Retirement Plan in the Establishment.”

The bill further provides that the retiring official or employee has been in the service of the same employer

for at least 10 years and is not less than 45 years old.

The same exclusion from gross income applies to the retiring official or employee who subsequently gets employed for another 10 years or more with private firms whether individual or corporate or with public firms with a benefit plan or retirement plan, the bill added.

The bill refers to “reasonable private benefit plan” as “a pension, gratuity, stock bonus or profit-sharing plan maintained by an employer for the officials or employees, wherein contributions are made by such employer for the officials or employees, or both, for the purpose of distributing to such officials or employees the earnings and principal of the fund, thus accumulated, and wherein it is provided in said plan that at no time shall any part of the corpus or income of the fund be used for, or be diverted to, any purpose other than for the exclusive benefit of the said officials and employees.”

In filing the bill, Leonardia said that in most instances, many employees opt to retire at an early age to subsequently work at another employer for better compensation or career advancement.

But the lawmaker said that this decision to retire early may be deterred because of the taxability of the worker’s retirement pay as provided by RA 8424, or by the fact that the retirement pay under the worker’s next job is also taxable.

Jovee Marie N. dela Cruz

Editor: Dionisio L. Pelayo • Thursday, October 16, 2014 A3

Aquino ally sees House approval of emergency powers in 2 weeks

T

By Lenie Lectura

HE chairman of the House of Representatives’ Committee on Energy, Liberal Party Rep. Reynaldo Umali of Occidental Mindoro on Wednesday said the congressional joint resolution that seeks to grant President Aquino special powers to address the power-supply shortage next year is expected to be approved not later than end of this month.

“I see this being approved on the third and final reading. We will be done and over with this before October ends. The majority of us in the House will approve it,” said Umali.

Congress is currently on a threeweek break and will resume work on October 20, before going on another break on October 31. “On the week of October 22, the draft would have already been approved in the committee level. Then on the week of October 27, before going on another break, the House version should be approved already by Congress,” Umali added.

A separate version of the joint draft resolution is pending at the Senate.

Sen. Sergio Osmeña III, Committee on Energy chairman, earlier said the sentiment of most lawmakers is for the government to distance itself from the power-generating sector.

“I can’t speak for Senator Osmeña.

But he is only one of the many senators. So, let’s wait and see. As far as the House is concerned, we will approve it within October,” Umali said.

The Lower House received the request for the grant of special powers on September 12. Umali said several hearings were conducted since then.

A draft of the resolution submitted by the Department of Energy (DOE) seeks to grant the President an authority to negotiate contracts for the acquisition of additional generation capacity—either via lease or purchase—of about 500 megawatts (MW).

The Electric Power Industry Reform Act (Epira) prohibits the government from putting up power plants. However, Section 71 of the said law states that the President, upon determination of an imminent shortage of supply of electricity, may ask for Congress for authority, through a joint resolution to establish additional generating capacity under such terms and conditions.

When asked what are the possible revisions of the draft joint resolution that the lower house is looking into, Umali stressed that the period covered within which the special power takes effect should cover only the months of March up to July.

“Also, we have to define how many megawatts of additional capacity is needed. It can’t be a moving target.

Our third concern here is the cost.

Definitely, we are pushing for government subsidy,” Umali added.

For the government to purchase additional capacity, it should shell out P10 billion, excluding fuel. If the government opts for lease, then

it would still have to pay P6 billion, plus fuel cost.

Funding can be sourced from the Malampaya Funds, which amounted to P148 billion as of December last year.

“We are pushing for government subsidy, but the cost would really depend on what option will be chosen. We are giving the President the flexibility,” Umali said.

Aside from additional generating capacity, the government is also looking into expanding the Interruptible Load Program (ILP).

Earlier, the Manila Electric Co. (Meralco) said its customers may have to pay an additional 7.5 centavos per kilowatt-hour in monthly generation charge so the utility firm can compensate ILP participants for the power-generation capacity that they are willing to deload.

Meralco needs to compensate its ILP participants for the expenses, particularly fuel cost, they will incur when they operate their own generator sets, instead of sourcing power from the grid.

The power distributor estimates a P200-million payment for every 300 MW of accumulated committed interruptible load capacity from the ILP participants. Meralco, in turn, would have to pass this on to its customers.

GENCARS , I A4

A BusinessMirr

Thursday, October 16, 2014 | www.businessmirror.com.ph

SUSTAINING EXCELLENCE

THE plush and sparkling showroom of Isuzu Gencars Makati at Dominga Building 3 on Chino Roces Avenue, corner De La Rosa Street, Makati City. Behind this building stand the administrative and sales offices and the five-star service shop of Isuzu Gencars.

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HE Philippine automotive industry is on a roll. Industry reports show that vehicle sales for the month of September increased by 41.7 percent, or 20,924 passenger cars and commercial vehicles sold compared to the same month in 2013.

Year-to-date sales in 2014 reached 169,727 units, or a growth of 29.2 percent, according to a joint statement of

the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association.

Sales over the past few months have been exceptionally strong, the two automotive associations stated, proof that the automotive industry is continuously growing and aiming for better sales performance.

Isuzu Gencars Inc. rides the wave of these vigorous sales as it celebrates

its 36th anniversary today with the theme “Sustaining excellence,” affirming its mission statement, “To be one of the best dealers in the motor-vehicle industry, committed to market only the best products, and to provide quality service to achieve complete customer satisfaction.”

“Gencars is committed to excellence and determined to sustain our objective of delivering only the best

diesel-powered vehicles from Isuzu and to render only the highest quality service to our clients,” said D. Edgard A. Cabangon, Isuzu Gencars managing director.

When he established Gencars on October 16, 1978, Ambassador Antonio L. Cabangon Chua, founder and chairman emeritus, made this the guiding spirit behind the operation of the company: A commitment to excellence in marketing performance and the delivery of after-sales service to customers.

His son Edgard, as the current head of Gencars, ably steers the company toward success and leadership in the automotive industry.

For faithfully sustaining its drive for excellence over its 36 years of operation, Gencars is recognized today as a leading partner of Isuzu in bringing its durable and powerful trucks, buses and cars to Filipinos.

Its reward for maintaining this record of excellence through the years is a long list of awards. Foremost of these is the Dealer of the Year Award in 2004 conferred for the first time by Isuzu Philippines Corp. (IPC) in March 2005. The following year, 2006, it was again named Dealer of the Year for 2005, making it the first and only back-to-back Dealer of the Year Awardee of IPC. Isuzu Gencars once again made a major feat by making it to second place as Dealer of the Year Awardee for 2010.

Besides these landmark awards from IPC, Isuzu Gencars has also won the 2004 National Shopper’s Choice Award as No. 1 Isuzu Dealer in the Philippines, the 2005 National Product Quality Excellence Award as Best Isuzu Car Dealer nationwide, and other major awards from prestigious award-giving organizations in the motoring industry.

But more than anything else, Gencars takes pride in its role as a Filipino company that helps maintain Isuzu’s leadership in the manufacture and marketing of light-duty trucks, in particular, and in all diesel engine-powered vehicles.

ISUZU Gencars Batangas in Santo Tomas town

ISUZU Gencars in San Pablo City, Laguna province

THE GENCARS STORY

G

ENCARS Inc. operates as one of the leading franchised dealers on which Isuzu Philippines Corp. (IPC) relies for its Philippine operations. Today, 36 years after its founding, it operates as a network of dealerships that bring Isuzu’s strong and durable vehicles to Filipinos in key places extending from Metro Manila to the progressive areas of Santo Tomas, Batangas; San Pablo City in Laguna; and the cities of Naga and Legazpi in Bicolandia.

It all began from a strategically located 1-hectare lot housing a spacious Isuzu vehicle showroom, a five five-star service shop at the corner

of Chino Roces Avenue (formerly Pasong Tamo) and De La Rosa Street in Makati City.

Gencars was conceptualized and established on October 16, 1978, by Ambassador Antonio L. Cabangon Chua.

The dealerships evolved from the General Motors franchise of Ambassador Cabangon Chua, father and mentor of present Managing Director D. Edgard A. Cabangon. General Motors of the United States, in partnership with Isuzu of Japan, introduced the Isuzu brand in the country through its trucks in the 1950s.

These were much in demand to meet

th Celebrates 36 INC . Anniversary

ror Special Feature

ISUZU Gencars Legaspi City

ISUZU Gencars Naga City

post-war development needs.

After a brief interruption in its Philippine operations, Isuzu resumed operations in the Philippines in 1989 as Isuzu Motors Pilipinas Inc. Gencars again became one of its franchised dealers.

An offer from Sime Darby Philippines in 1994 to become tire distributor paved the way for the establishment of the Gencars Building, which now houses the sales and administrative offices of Isuzu Gencars Makati.

In July 1996, IPC took over the business operation from Isuzu Motors Pilipinas, awarding a franchise to Gencars as one of its dealers.

Isuzu Batangas—first dealership outside Metro Manila

ON November 7, 1996 Gencars opened up a second dealership in Batangas on a 5,884-square-meter lot at the Crossing of Barangay San Roque in Santo Tomas town, known today as Isuzu Batangas. The dealership provides for the vehicle requirements and the motoring-service needs of motor-vehicle owners residing in the Southern Tagalog region, which includes Calamba, Batangas, Lucena, Mindoro and Bicol.

www.businessmirror.com.ph | Thursday, October 16, 2014 In 1997 the company adopted the trade name Isuzu Makati with Gencars Inc. as its corporate name. This change in name further binds Gencars to the image of strength and dependability, precisely the qualities that customers count on for their Isuzu vehicles.

In May 2000 Gencars, together with IPC, embarked on its special offsite service, or SOS, in the Bicol region.

This was a quarterly caravanstyle on-the-road activity that aimed to allow Isuzu vehicle owners in the region to avail themselves of the world-class diesel vehicle preventive maintenance service and sales of genuine auto parts.

Isuzu San Pablo City

ISUZU San Pablo City, the company’s third outlet which started its operations on November 17, 2000, is situated on a 1,070-sq-m piece of land along Colago Avenue, Barangay 1-A, San Pablo City, Laguna. This third dealership caters to the brand-new vehicle requirements, as well as the vehicle-service needs of Isuzu vehicle owners in Laguna, Quezon province and the Bicol region.

After more than six years of providing the Bicol region’s proud Isuzu vehicle owners with quarterly SOS, Gencars management finally decided to establish its fourth outlet, Isuzu Legazpi, on July 17, 2006, at the Ground Floor, ALC Fortune Building, J. P. Rizal Street, Legazpi Port District, Legazpi City, Albay.

A fifth outlet, Isuzu Naga, opened on August 8, 2008, at Kilometer 443 Maharlika Highway, Barangay Palestina Pili, Camarines Sur. Both outlets serve the motoring needs of major establishments in Bicolandia that require an improved mode of transport with modern facilities for after-sales service and parts.

In the early part of 2001, Gencars ventured into a tie-up with Fortune

A5

FIVE-STAR SERVICE SHOP THE All-New Isuzu mu-X, launched recently in the local market by Isuzu Philippines. Isuzu Gencars once more is proud to be Isuzu’s dynamic partner in bringing its latest flagship model to Filipino motorists.

I

Message

EXTEND my heartiest greetings to the officers and staff, sales and marketing personnel, service crew, all the men and women of Gencars on our 36th founding anniversary.

We are truly blessed to be celebrating this milestone. Not all enterprises can survive this long, only the strongest and most stable. We made it, with your support and cooperation. For this, I extend my most heartfelt thanks to you.

The success of Gencars took many years of hard work, perseverance and good leadership that started with our founder and chairman emeritus, Ambassador Antonio L. Cabangon Chua. His great vision for an automotive dealership that delivers only the best quality products and services to our people remained firm and determined from the earliest day, inspiring and guiding the pioneering leaders and then the succeeding leaders to make Gencars the strong and stable company that it is today.

We are proud to have workers who remain dedicated and diligent at their respective assignments, from the office staffs to our sales and marketing people to our highly motivated technicians and mechanics in the Service Division.

Your pride in your work, your love for it, are strong factors in the longevity and success of Gencars. On behalf of management, thank you and carry on.

As we rejoice over our achievements and move on to another year for Gencars, may we remain inspired and motivated to offer our countrymen only the best motoring products and services.

Once again, happy anniversary to all of us!

D. EDGARD A. CABANGON Managing Director General Insurance Corp. and Citystate Savings Bank for their Lion King Card, an offshoot of Gencard Vehicle Maintenance Plan. The bank’s Lion King Club members are assured round-the-clock emergency services, particularly emergency roadside assistance and towing service within Metro Manila.

The one thing that stands out about Gencars Inc. in all its years of operation is its experience and expertise in the competitive field of motor vehicles, giving it a definite edge over other dealers. Certificates of excellence are consistently received by Gencars from IPC and other national award-giving bodies.

ISUZU Gencars’s competent service technicians at work.

T

HE Service Division of Isuzu Gencars is proud to be counted as one of the best providers of after-sales automotive centers in the country. Proof of this is the numerous awards it has received from Isuzu Philippines Corp. (IPC) for its quality service operations. IPC believes that its responsibility to its customers does not end after a sale but continues to the upkeep and maintenance of its vehicles.

Gencars service shop won classification as a five-star automotive service shop after passing the standards set by the Department of Trade and Industry. For years, it has been among the industry’s service provider for vehicles.

A perfect balance of professionalism and good customer relations accounts for the top sales volume and excellence in service that the Parts and Service Divisions render.

The Isuzu Gencars Service Division, in particular, has proven its capability to guarantee total customer satisfaction. First, there is its pool of

client-friendly crew who are equipped with the latest technical expertise in car maintenance and repair.

Regular update training for its mechanics and other car-care staff are held to guarantee that their skills continuously improve. They are trained to repair all kinds of vehicles, of any brand, available in the market today.

And to make sure that each vehicle is given full attention and the proper care, Gencars implements a “service by appointment” scheme for a more organized handling of repairs and checkups. Roving mechanics are also sent out in the field to attend to customers who prefer to have their vehicles service at home or at the office.

Gencars service shop’s top-ofthe-line equipment also ensure more efficient car-maintenance services.

Among these are two huge painting ovens including a wonder laser with television monitor for computerized wheel balancing and a computerized wheel-alignment system that attends to an average of 40 vehicle units everyday.

Opinion BusinessMirror

A6 Thursday, October 16, 2014

Editor: Alvin I. Dacanay

editorial

Heritage sites: On the brink of destruction?

T

HE first anniversary of the 7.2-magnitude earthquake that struck Bohol and Cebu provinces on October 15, 2013, and destroyed a host of heritage sites, including centuries-old churches, has resurrected an important question: Are our heritage sites on the brink of destruction?

The possibility is there for us to consider. It seemed only recently that the national government finally recognized the conservation of heritage as part of public interest.

The government’s apparent lack of appreciation hindered much of the supposed reconstruction of heritage sites in Bohol. Not only that, the National Museum and the National Historical Commission of the Philippines (NHCP) seem to have done little beyond clearing the debris at the sites, ignoring not only safety protocols, but also basic principles in archaeology and documentation.

Another problem of heritage conservation can be traced expressly to the NHCP’s “policy” of avoiding restriction of private property rights. The NHCP, which is tasked to protect heritage sites, is now moving to question the ceaseand-desist order issued by the National Commission of Culture and the Arts on CDC Holdings Inc., which is planning to construct a condominium building in Manila’s Santa Ana district, a heritage zone.

The NHCP is the same organization that approved plans to renovate the Army and Navy Club, inadvertently resulting in its demolition. It also handed a permit to Anchor Land Holdings Inc., which ended up demolishing the historic Admiral Hotel, and gave DMCI Homes the nod to build the controversial Torre de Manila building.

Sources who want to remain anonymous say the NHCP’s penchant for declaring historic sites does not come with the necessary responsibility to care for those same sites.

The real problem facing the country, however, comes from local governments like the city of Manila: It allegedly has no comprehensive land-use plan (CLUP). This means that all construction efforts in this city are deemed illegal under the law. No major infrastructure projects may be undertaken or permits given until a CLUP has been drafted.

In other words, all efforts at progress and development are deemed illegal under the law if the city has no such plan.

With the Association of Southeast Asian Nations economic integration looming, the risk of losing heritage sites becomes even more critical if and when the NHCP prioritizes shared infrastructure projects with our regional neighbors.

While it may be true that infrastructure is integral in a globalized setting, it is our heritage sites that anchor Filipinos to their rich history.

And losing history is no different from losing the national identity that Filipinos never got around to knowing and enjoying.

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John Mangun

OUTSIDE THE BOX

A

LL governments and leaders would like people to believe that, under their control, the world is a harmonious place.

Thanks to their wisdom, it has become like team-building for a multilevel marketing company, where everyone holds hands and tells each other how great he or she is.

Don’t believe it? Just look at the “team” pictures taken at any global meeting, from the Seventh Bali Democracy Forum to the Asia-Pacific Economic Cooperation (Apec) conference. Remember the 1996 Apec Ministerial Meeting in Subic, Zambales province, where all the leaders were wearing barong Tagalog made of piña fiber? The Philippines gets to host it again in 2015; maybe each leader will wear a golden salakot this time.

Global geopolitics is more like a fraternity hazing: It’s just as brutal and vicious, and has the same motives: the power and wealth that goes with it.

The Middle East has been about oil since its initial discovery in 1908 in Iran and in 1938 in Saudi Arabia. It is interesting that those two countries are the major players in the regional conflicts.

The civil war currently raging in Syria,

which now also involves the Islamic State (IS), is still about oil.

Qatar has been trying to overthrow the Syrian government for years, as it wants free access and control of a pipeline running through that country, so that it would be able to sell directly to Europe.

Russia has been supporting the Syrian government in stopping that pipeline.

Saudi Arabia used to be opposed to the pipeline, but is now in favor of it, as they see an opening, thanks to the United States, to take control from Qatar.

But since the Russians took Crimea from Ukraine, which took the US out of the eastern European-influence picture, the situation has become like “the enemy of my enemy is my friend.” By this, I mean the US is using Saudi Arabia (and vice versa) to get back at Russia.

Crude-oil prices are collapsing. You

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would think that Saudi Arabia would be doing everything it can to move prices higher, since it depends on oil for its existence. The same can be said of Russia.

Low oil prices will soon severely damage the Russian economy, more than the problems it already has as a result of the sanctions imposed by the US and European Union. European Brent crude oil is now at about $86 a barrel. Russia really needs oil over $100 to meet its production costs and governmentspending needs.

In return, Saudi Arabia is being supported by the US in its quest to control the Syrian pipeline.

But there are always side effects. Over the last three years the US has been producing more oil than it has since 1972, thanks to shale-oil extraction. Except that US shale-oil producers need oil at $75, at least, to break even on production costs and over $84 to continue spending for more wells and more exploration efforts.

Meanwhile, Qatar and the United Arab Emirates are trying to figure out how to counter the US-Saudi Arabia alliance and make sure their mercenaries in the IS remember that it is supposed to be a Qatari pipeline, if and when they take over Syria. The US is hoping that Russia will “fall” before its own shaleoil industry does.

While the big boys fight over oil, prices may collapse even further, which is very good for the Philippines. Local

gasoline prices are down 10 percent in the last few months. That is a major reason inflation—which is critical to the economy—will continue to drop.

Sometimes, though, the best thing to do is to not join any fraternity. Taking sides can be dangerous and difficult.

During the Cold War, the NonAligned Movement saw India effectively play the Soviet Union against the US, with China in the middle. India received funding from both the US and the Soviet Union to keep China under control.

The Philippines recently decided to use the US to counter the Chinese with the Enhanced Defense Cooperation Agreement. Now the killing of a transgender woman in Olongapo City, allegedly by a US Marine, adds a new dimension to that agreement. China is probably very pleased.

The country has improved and is becoming more economically mature. Philippine businesses are no longer afraid to compete globally and are expanding abroad, like what the major multinational companies in the West have done.

But when it comes to some government policies and far too many political leaders, maturity is a distant goal.

E-mail me at mangun@gmail.com.

Visit my website at www.mangunonmarkets.com. Follow me on Twitter at @ mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Limits of politics: What the private sector must do

Romeo M. del Castillo

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It’s time to get serious

Ariel Nepomuceno

DECISION TIME

W

HEN our political system fails to cure the ills plaguing our society for generations, and when the government is held hostage by the difficulties of our dysfunctional democracy, the private sector has no other choice but to become resilient and come to the rescue of our country.

We must accept the fact that, for the last 100 years of our independence, we have not succeeded in making our country strong enough to be among the best in Southeast Asia in terms of sustained economic progress and social stability. We are dwarfed by the achievements of our neighbors, like Thailand, Singapore and Malaysia. We could even hardly recall and believe that we once ranked second only to Japan in the 1960s. Now, even Vietnam, Myanmar and Indonesia seem to outpace us.

We must accept the reality that, in the coming decades, poverty and corruption will keep haunting us, since our political system is not capable of quickly paving the way for the solutions that we urgently need. Meanwhile, our neighbors are resolutely focused on strengthening their capabilities and competitiveness.

survival and progress is the patriotic response of our business organizations to relentlessly pursue excellence in the field of wealth creation. They must learn how to virtually ignore the limits of our political system. The frustration and desperation they feel in response to the endless scandals, investigations and prolonged political battles must not derail their expansion plans.

While they lobby for adjustments in some of the economic policies of the government, and while they risk their corporate interest when they openly advocate for the end of the corruption that victimizes them, those in the business sector must simultaneously become successful in terms of stability, growth and the employment they create.

Our business groups must also believe and strive in becoming global leaders. That is their historic obligation.

Challenge to business groups

THE government must always be sensitive and responsive to the

PAR AMOUNT to our countr y’s

Role of civil society

criticisms and clamor of the community. However, we must not cease from organizing ourselves when the government callously ignores our dilemma and aspirations. On the contrary, when the government is alienated from our needs, it becomes even more important that we are organized and proactive.

Civil society must address our common interests. It must ensure that, in the absence of a political system that efficiently delivers the services and programs that uplift our people’s welfare, it must maintain our core values and aspirations.

In debates, discourses or even clashes, where the battle lines are clearly drawn between what is morally right and wrong, we must throw our full support behind the heroes and the advocates of integrity and honesty. We must rally behind those who valiantly fight for the welfare of our country. We must not allow the enemies of reforms, who prefer corruption to continue to thrive in our government agencies and ruin the efforts of the few good men who oppose the usual schemes of betraying our people, to succeed.

We cannot replace or duplicate the fundamental functions of the government, but we also cannot afford to wait in vain until the government becomes available for the delivery of our most basic needs. Civil society has already proven its contribution to our quest for real change. It must continue with its selfless and occasionally risky social campaigns, especially when the government appears complacent.

The mandate of our intellectuals

A SOCIETY that has ceased to define its dreams is destined to fail. We are entitled to list our best objectives, and we are obliged to design the framework for our success and strategic vision as a society.

The intellectuals who are capable of providing the blueprint for our success must ensure that our road map gives premium to our country’s best interest. They must provide us the tools to influence the leaders of our government. The strength of our civil society is only as good as the vision impressed on our national consciousness. We must know for sure where we want to bring our nation.

Those who are capable of dreaming for our people must use all available avenues to advocate reforms, and plan on how to improve the lives of Filipinos and make them proud of our collective achievements. Our intellectuals and dreamers must join academe, research institutions, the media, civic organizations and government agencies, and help build our vision for the country.

The apparent weakness of our political system must not be the end of our road. We must accept our historic duty to always move forward when all else seem to have failed. The role and power of the private sector is deeply engraved in our history.

Ariel Nepomuceno is the deputy commissioner for the Enforcement Group of the Bureau of Customs.

Opinion BusinessMirror

oped@businessmirror.com.ph

Modes of service in tax assessments

Giving God glory Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

Atty. Pierre Martin D. Reyes

Tax law for business

I

N countless cases, the Supreme Court has held that failure to receive assessment notices is tantamount to a denial of due process of law. These notices must be served on and received by the taxpayer. Otherwise, the assessment is void. It is, thus, important for taxpayers to be aware of the modes of service of assessment notices under current Bureau of Internal Revenue (BIR) regulations.

Previously, under Revenue Regulations (RR) 12-99, there are only two modes of service: personal service and registered mail. This was expanded to three—personal service, substituted service and mail— under RR 18-2013, which amended RR 12-99.

Under personal service, the notice shall be served by delivering personally a copy thereof to the taxpayer at his registered or known address, or wherever he may be found. The phrase “wherever he may be found” is noteworthy. This is similar to the rule on personal service of summons under Section 6, Rule 14 of the Rules of Court. In Sansio v Mogul, GR 177007, July 14, 2009, the SC interpreted this provision to mean that service may be made “wherever he may be found; that is, wherever he may be, provided he is in the Philippines.”

In case personal service is not possible, the notice shall be served by substituted service or by mail.

Substituted service can be only used when the taxpayer is not at his registered or known address. The notice may be left at either his registered address or a known address, which is his business address. In both places, the notice may be left with only two persons: his clerk or a person having charge thereof. This is similar to substituted service of summons under Section 8, Rule 15 of the Rules of Court. The SC held in Manotoc v Court of Appeals, GR 130974, August 16, 2006, that “a person having charge thereof” refers to one managing the office or business, such as a president or manager; and such an individual must have sufficient knowledge to understand the obligation of the defendant in the summons, its importance and its prejudicial effects arising from inaction.

If the known address is the taxpayer’s residence, substituted service can be made by leaving the notice with a person of legal age who is residing there. Again, this is similar to the rule on substituted service of summons. In Manotoc, the SC held that this person refers to one who understands the importance of the summons and who has a “relation of confidence,” ensuring that the taxpayer would receive or, at least, be notified of the receipt of the summons.

If no person is found either at the

registered or known address, the revenue officer shall bring a barangay official and two disinterested witnesses to the address to attest to the absence, and the notice shall be given to the barangay official. It must be noted that such fact must be contained at the bottom portion of the notice, as well as the names, official positions and signatures of the witnesses. The procedure is similar if the taxpayer refuses to receive the notice.

As to mail, under RR 18-2013, the BIR now has three options: registered mail; reputable courier; and ordinary mail, if no registry or reputable courier is available in the locality of the taxpayer. With the exception of the reputable courier, this adopts the rule on service by mail of pleadings, judgments and other papers under Section 7, Rule 13 of the Rules of Court. The proof of service by mail are: a written report under oath, setting forth the manner, place and date of service, the name of the person who received the same; and registry receipt or official receipt, in the case of the reputable courier.

Last, RR 18-2013 provides that service to the tax agent/practitioner shall be deemed service to the taxpayer. This is comparable to the well-established doctrine that “when a client is represented by counsel, notice to counsel is notice to client.”

It is incumbent upon the BIR to strictly comply with the rules of service of notices in RR 18-2013. It must be stressed that, while taxpayers owe diligence to the government in the payment of taxes, the government also owes diligence to taxpayers in ensuring the proper service of assessment notices.

The author is a junior associate of Du-Baladad and Associates Law Offices, a member-firm of the World Tax Services Alliance.

The article is for general information only, and is neither intended nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. For comments or questions about the article, e-mail the author at pierremartin.reyes@bdblaw.com.ph or call 4032001, local 311.

G

OD is the Lord of all and is wondrous in His deeds; praise and worship Him (Psalm 96:1, 3, 4–5, 7–8, 9–10). We must give to God what belongs to God (Matthew 22:15–22).

Give glory to the Lord THE psalmist calls on all peoples to acclaim the Lord. The call for such praise is made twice by the psalmist, emphasizing that: first, it is to be a new song of praise because, apparently, the old songs are no longer sufficient to fulfill their purpose; and second, the call for a new song is directed to all the earth.

This song of praise should be sung by all the lands and all the nations of the earth; both the entire natural world and all the human societies in it must declare God’s glory. This glory (kabod) of God is meant as the visible manifestation of divine splendor, which is associated here with His wondrous deeds.

The Lord is great and is to be highly praised. Compared to Him, the gods of the nations are nothing but worthless idols, things of naught.

The Lord is awesome, for He created the heavens that stretch over the entire earth. That is why the families of nations are summoned to give to the Lord the praise and glory that is

BLOOMBERG VIEW

C

HINA has the Great Hall of the People; Hong Kong has the “Great Hall of the Tycoons.”

The abovementioned phrase was uttered by Briton David Webb on Saturday night as he addressed a crowd of demonstrators in Hong Kong. Webb, a shareholder-rights activist who has earned the enmity of Hong Kong’s powerful oligarchs, cut right to the heart of things in his rousing speech.

“The government claims to believe in free markets and competition, but where is the free market in leadership?” Webb asked while perched atop a ladder. “Don’t worry about the small economic impact of these protests,” he added. “Think about the large economic benefits of a more dynamic economy, ending collusion between

the government and the tycoons who currently elect the chief executive.”

If Beijing learns anything from the biggest frontal assault on its authority since the British returned the keys to Hong Kong in 1997, it should be this: Hong Kongers want competent leaders, not cronies. As the Umbrella Revolution begins to fold up—at least,

Give to God what belongs to God

THE Pharisees believed that only God should rule over them; they did not approve of Roman sovereignty over the Jewish people. The Herodians, on the other hand, have accepted Gentile rule and have even learned how to benefit from it. The two camps, usually bitter enemies, have joined forces to entrap their common nemesis: Jesus. The issue of the Roman tax that each must pay certainly divided the people then and could easily reveal the true political color of Jesus. So the question they raised to Jesus—Is it

lawful for a Jew to pay the census tax to the emperor or not?—was a two-edged sword that was intended to cut Jesus, either way.

The feigned flattery that they prefaced their entrapment with is part of the plan to get Jesus to speak truthfully and fearlessly, and without evading their question or pandering to those in authority. They wanted to lead Jesus to talk recklessly and, in so doing, be at odds with the Roman rulers or, at the very least, be downgraded in the eyes of the people.

In reply, Jesus first shames His opponents by calling them hypocrites, and then He makes them produce and identify a Roman coin with the image and name of the Roman emperor, which is something abhorrent to the Jews. By having such a coin in their possession, they have been caught in their own trap. Jesus then directs them to give back to God what belongs to God, and to the emperor what belongs to the emperor.

Give to the emperor

THERE is no conflict between worshipping God and being loyal to some secular power or being active in some political activities. In fact, God’s primacy and the proper obedience to Him guide and shed light on other human involvements. The Pharisees are duplicitous in their question and just want Jesus to get into trouble with the civil authorities. They themselves keep a Roman coin for tax purposes; it belongs to the emperor and should be given back to him.

A7

One is not discredited before God simply because he or she submits to paying the civil tax. Religion and taxes do not necessarily clash; they are on different spheres of life and can run alongside each other in harmony. But to some malicious men, they are exclusive of each other, as if it is a contest between God and any other authority. It was with such false alternatives that the Pharisees tried to corner Jesus in an either-or, yesor-no thinking or situation.

Alálaong bagá, giving glory to God does not mean refusing to recognize anybody else. But Jesus’s reply left in suspense the matter regarding what belongs to the emperor or to God. But clearly, one cannot serve two masters; one cannot be the slave of both God and wealth (Matthew 6:24). When wealth ceases to be regarded as a gift from God and as not only for one’s benefit, but for the good of all, then from such confusion comes conflict and from such exclusivist mindset comes violence and destruction.

We do not forget that we have a dual set of responsibilities: toward God and toward our neighbor in society. In loving our neighbor, we love God. And our love of others is shown in helping the common good by paying our lawful taxes.

Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.

Can China pacify its restive minorities peacefully?

By Piero Sarmiento

BUT without forsaking its “iron fist,” the government in Beijing is now experimenting with different approaches to balancing majorityminority relations without the use of force.

One such unorthodox tool has been encouraging interracial marriages. In order to promote these matches, economic and social incentives have been offered, including paid vacations, social security and

employment prospects. Even though there are still few of these interracial marriages, the numbers have more than quadrupled since 2008, going over the 4,000 mark.

Not everyone is thrilled at the strategy, however. Many minorities view intermarriage, like the earlier efforts to relocate Han to the Western regions, as just another strategy to absorb and integrate non-Han Chinese into the dominant Han culture. The ultimate goal, they warn, is the destruction of minority cultures.

Other parties are experimenting with media outreach. A Chinese film company known as Shenzhen Qianheng, for example, is developing a 3D cartoon called Princess Fragrant, a love story about an 18th-century Han Chinese emperor and his Uighur consort. The cartoon’s Han creators hope it will encourage curiosity and communication between Uighurs and Hans.

Intermarriage and cartoons are certainly preferable to violent suppression. But they will not ease the tensions that have been boiling over for decades. The Chinese government needs to address the structural issues that have generated the mistrust and resentment.

But Beijing is not going to allow the vast, geopolitically significant

territories of Xinjiang and Tibet to secede from the country. A common ground has to be found and more freedoms have to be granted if China is, indeed, going to maintain its internal cohesion in a peaceful and productive way.

Tohti’s imprisonment and the higher degree of surveillance imposed in Xinjiang and Tibet shows that the Chinese government will not hesitate to keep the country unified by any means. The long-term effects of such actions, however, might potentially escalate the existing conflict.

Sharon Hom, the executive director of Human Rights in China, believes that the Tohti verdict is only going to aggravate the overall domestic situation: “Rather than encouraging sensible, moderate voices like Tohti’s,” she said, “this will exacerbate the tensions in the region.”

After Tohti was incarcerated, many lost hope for the peaceful road to ethnic equality that he actively supported. It’s not too late, however, for the Chinese government to realize that a policy of carrots will be more successful in the long term than the sticks that it has recently deployed.

daughter’s Facebook updates mocking the city’s urban poor. Really, where does Beijing find these people?

Some in the Communist Party may see Leung as a useful patsy to enact unpopular laws. The chief executive couldn’t be any more disliked or compromised, so why not use him to impose new limits on press freedom and political assembly? Doing so, however, would court even bigger protests and risk turning Hong Kong into the next Bangkok. Better to dump Leung at the earliest opportunity and start afresh. n Find a decent replacement: Each of the three chief executives chosen since the handover has been worse than the other. And Beijing’s proposed system for electing the next one in 2017 promises to produce yet another dud: A rule change that requires any candidate to win 50 percent support from a tightly controlled election committee will ensure that loyalty to Beijing is the

main criterion for victory.

China has one more shot at this.

A smart, creative leader who serves Hong Kongers, not the tycoons, and addresses the causes of inequality would greatly ease public discontent. At the least, any new chief executive should exhibit a competence to match Hong Kong’s institutions, which have handled this crisis with patience and skill. Yes, Hong Kong’s police erred when they fired tear gas at demonstrators on September 28.

But since then, Americans like myself have to admit that cops in Ferguson, Missouri, could learn much from the restraint and professionalism on display in Hong Kong. n Learn from Hong Kong’s young people: Xi’s generation of Chinese leaders would be wrong to view the architects of this standoff as some ideological fringe. Even the shopowners and triad gangs complaining about lost business have a stake in what protesters are demand-

ing. While anger has coalesced around Leung, those lining the streets cite everything from Beijing’s meddling to inequality to pollution to inflation as driving forces behind this revolution.

Addressing any of these grievances requires greater openness, transparency and accountability. That’s as true in China as it is in Hong Kong.

“There is no large economy in the world with high levels of prosperity that does not have democracy,” Webb told protesters on Saturday night. “So if China wants world-class prosperity, and not the current 20 percent of world-class, then it must have democracy and the civic freedoms that go with it. Freedom of speech, freedom of assembly and freedom of the media.”

It’s this ability to speak, gather and write freely that made Hong Kong the vibrant place it is today. If they were honest, even the tycoons would admit that China should be emulating Hong Kong’s success, not strangling it with incompetent courtiers.

Inter Press Service

Conclusion

O

NE of the most recent tragic events took place in the Chinese province beside Tibet, known as Yunnan. In March knifewielding assailants assaulted crowds in the Kunming train station, leaving 29 people dead and more than 140 wounded in a bloodbath the Chinese government blamed on Uighur separatists.

Another dramatic attack followed two months later in Xinjiang’s capital, Urumqi, when attackers crashed cars and threw explosives at a crowded marketplace, killing 31.

An earlier incident occurred in October 2013, when a car crashed in Beijing’s Tiananmen Square and burst into flames in a suspected suicide attack. Five people were killed, including three in the car, and dozens were injured. In August the Chinese government executed eight Uighurs it accused of fomenting terrorism, including one allegedly linked to the Tiananmen attack.

The situation in Tibet—where there have been few reports of violent resistance since the uprising of 2008—has been somewhat different.

There, protestors have relied on “passive-aggressive” tactics, including more than 120 cases of self-immolations. The Communist Party has blamed the Dalai Lama for in-

Cronies are killing Hong Kong William Pesek

due to His holy name. Their burnt offerings, sacrifices and gifts are to be brought to the altar; they are to enter the courts of the Lord (Isaiah 56:6–7). All the earth is called to worship the Lord, to cry, “The Lord is king!” in adoration. This kingship of God is revealed wondrously in His reign over the whole world, in His universal and equitable rule over all peoples.

Thursday, October 16, 2014

for now—here are three things that Chinese President Xi Jinping can do to keep the former British colony from succumbing to an endless cycle of protests and crackdowns: n Dump the current chief executive: No one seriously expects Xi to fire Leung Chun-ying this week, no matter how much of a lightning rod he has become. Forcing Leung out now would be an open admission that the current system of choosing leaders is flawed. It might also inspire copycat protests across China calling for mayors, party secretaries and even Xi to step down. But China must, at least, begin telegraphing Leung’s departure in the weeks ahead.

Xi could spin the sacking as part of his anticorruption drive. Leung faces a fast-growing number of questions about the more than $6.1 million he reportedly received from an Australian engineering company before taking office in 2012. Leung’s toxic presence hasn’t been helped by his

citing these activities and incarcerated many Buddhists who have attempted the same or urged others to do so. Most of these “separatist revolutionaries” have been labeled as traitors, given death sentences or put behind bars.

Soft power

Piero Sarmiento is a contributor to Foreign Policy in Focus.

2nd Front Page BusinessMirror

A8 Thursday, October 16, 2014

Electric-vehicle industry seen to generate 10,000 fresh jobs

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By Lenie Lectura

he electric-vehicle (EV) industry is seen to generate as much as 10,000 additional jobs if the Philippines would become the EV manufacturing hub in the region, the Electric Vehicle Association of the Philippines (Evap) said on Wednesday.

“In a country where mass public transport is not yet that efficient and reliable, the Philippines is finally embracing electric vehicles and, slowly but surely, more forward thinkers are realizing their viability as an alternative transport solution for the country,” Evap President

Rommel Juan said.

Currently, the Makati Green Route (MGR) utilizes over 20 electric jeepneys (e-jeepneys) in the Makati City villages of Legaspi and Salcedo.

Juan said the e-jeepneys that ply along the MGR are the first to ever receive the new orange

Land Transportation Office license plates for e-jeepneys. “It is also the first mass-transport operations to receive an LTFRB [Land Transportation Franchising andRegulatory Board] franchise. It truly was a real trailblazer. Now, seven years after the introduction of the first e-jeepney route, at last many other areas are following suit,” Juan said.

The Manila Electric Co. (Meralco), for one, utilizes EVs within its compound. The Ateneo de Manila University, De La Salle University in Cavite and the College of Saint Benilde all have a fleet of e-jeepneys going around their respective campuses. Moreover, Filinvest City announced that it will operate e-jeepneys inside its sprawling mall in Alabang.

Aside from e-jeepneys, the group also promotes electric tricycles (etrikes). Evap Executive Director Bodie Pulido said Kia Motors, a pio-

JUAN: “In a country where mass public transport is not yet that efficient and reliable, the Philippines is finally embracing electric vehicles and, slowly but surely, more forward thinkers are realizing their viability as an alternative transport solution for the country.”

neer e-trike manufacturer, recently launched a fleet of e-trikes and the very first commercial charging station in Bacoor, Cavite.

“There are also three Japanese companies now offering e-trikes locally—Terra Motors, Prozza Hirose and Beet Philippines. But what has excited the market even more is a new concept in mass-transport operations, the lease-to-own business model,” Pulido said.

This model essentially assists tricycle drivers to own their own e-trike for only P250 a day.

“It seems that using EVs for public transport has very little or no bad side at all. The issue of initial high cost has already been addressed by companies providing their own financing schemes to make it available and more affordable for users,” Pulido added.

The Evap officials stressed the viability of the EVs as compared to other utility vehicles. “ They are eco-friendly and cheaper to maintain. Electricity is cheaper than fuel. We computed that in operating EVs vis-à-vis regular fuel-fed vehicles. You can generate total cost savings of up to 40 percent.

Most important, the EV industry will generate additional jobs. There is finally an industry we can call our own and that we can be proud of,” Pulido said.

Europe, japan economic woes push peso still lower

By Bianca Cuaresma

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he local currency continued to display weakness on Wednesday and approached the 45 territory anew on stronger dollar sentiment.

Data from the Philippine Dealing System showed the peso hitting 44.825 to a dollar at the close on Wednesday, losing half a centavo in value from the previous day’s 44.82 against the dollar. This was its lowest in two weeks.

The total traded volume stood at $629.2 million, higher than the $511.1-million traded volume the previous day.

The local currency traded as high as 44.95

“If both Europe and Japan continue to be soft, and capital flows will be in the direction of the US, what will happen is the US dollar will significantly appreciate,” BSP Deputy Governor for the Monetary Stability Diwa C. Guinigundo said. to a dollar and as low as 44.8 against the greenback during the day. The peso has been slip sliding since Friday last week.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said the strength of the

US dollar is a reflection of the negative market sentiment on weakened global growth, particularly in Europe and Japan.

“If both Europe and Japan continue to be soft, and capital flows will be in the direction of the US, what will happen is the

US dollar will significantly appreciate,” Guinigundo said.

The peso has lost value consistently since Friday last week, even as the dollar continued to gain strength. However, the strength of dollar is not all good for the world’s largest economy, according to Guinigundo.

“In the process US exports might lose competitiveness, so that can also moderate the recovery of the US economy,” he said.

The governor also said the ebb and flow of the exchange rate cannot be judged merely on the basis of one or two days of nominal movement. However, Guinigundo acknowledged that big daily declines are a cause of concern for the central bank.

Lack of access to basic needs making poverty worse in PHL

By Cai U. Ordinario

L

ow income is not the only thing that makes Filipinos poor, but also access to basic services, according to the National Economic and Development Authority (Neda).

Socioeconomic Planning Secretary and Neda Director General Arsenio M. Balisacan said poor Filipinos are also poor because they lack access to basic services such as health and education.

Balisacan said this is the reason the national government is increasing its investments in education and health to achieve a trickle-down effect in these basic services.

“Our country has made a deliberate effort to substantially increase spending for health and education, including the Conditional Cash-Transfer Program,” Balisacan said at a recent World Bank high-level panel on Shared Prosperity, Inequality and Poverty in East Asia and Pacific.

“Our current fiscal space, which is a direct result of our institutional reforms, has allowed us to channel resources into human capital and support social-protection programs,” he added.

These efforts, Balisacan said, include those that seek to improve the skills of the Filipino work force in a way that will allow them to be more responsive to the changing times.

Balisacan said the current labor market is rapidly changing, and this requires workers to have advanced technological skills for them to take advantage of unique opportunities.

He cited the impact of technologies, which changed the mix of jobs and required better quality of education and skill content from the labor force.

“A much easier and faster way of addressing inequality is mobility and enhanced

BALISACAN: “Our country has made a deliberate effort to substantially increase spending for health and education, including the Conditional Cash-Transfer Program.”

capacity of people to choose any sector or location of employment.

This is why education is such a powerful equalizer. It explains why Filipinos are everywhere. When they can’t find opportunities near them, they move elsewhere if they have human capital,” Balisacan said.

These interventions, Balisacan said, are also in accordance with the efforts to prepare for the Asean Economic Community (AEC). The deadline to meet the commitments for the AEC is in December 2015 and its implementation is on January 1, 2016.

Balisacan said interventions like these and increased investments in infrastructure have improved the Philippines’s latest rankings on competitiveness and ease of doing business.

“By increasing it from about 2 percent of GDP [gross domestic product] in 2012, to 5 percent by 2016, we are addressing one of the country’s biggest constraints to development and opening up for a bigger market,” Balisacan said.

The World Bank session discussed how countries in developing East Asia and the Pacific can address the challenges of promoting shared prosperity, reducing inequality and eliminating poverty and the lessons they can use from their past successes.

www.businessmirror.com.ph

German, US economies take different growth routes

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he dollar gained versus peers for a second day as the United States economy’s momentum contrasted with concerns that Germany, Europe’s biggest economy, is slipping toward recession.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, rose before the Federal Reserve releases its Beige Book on economic conditions. The euro fell ahead of a speech on Wednesday by European Central Bank President Mario Draghi.

The pound touched an 11-month low, after data showed the slowest United Kingdom inflation in five years. The yuan fell as its daily fixing was cut and consumer-price gains slowed.

“The US is in a much better place compared to its peers,”said Stan Shamu, a markets strategist in Melbourne at IG Australia, a unit of IG Group Holdings Plc. “The US dollar will ultimately benefit.”

The Bloomberg dollar index rose 0.1 percent to 1,069.24 as of 2 p.m. in Tokyo from Tuesday, when it advanced 0.3 percent. The dollar gained 0.1 percent to $1.2640 per euro, adding to a 0.7-percent rally on Tuesday that was the strongest gain since October 3.

The greenback climbed 0.2 percent to ¥107.27. The euro was little changed at ¥135.59. The US economy will expand 2.2 percent this year and 3 percent in 2015, according to Bloomberg News surveys. The euro area will grow 0.8 percent and 1.3 percent, while Japan will gain 1 percent in 2014 and 1.2 percent, the surveys predict.

Germany teetering

Germany’s Economy Ministry on Tuesday cut its 2014 forecast to 1.2 percent from 1.8 percent, and reduced its estimate for next year to 1.3 percent from 2 percent. The ZEW Center for European Economic Research said its index of investor and analyst expectations slid for a 10th month. ZEW President Clemens Fuest said he doesn’t rule out a technical recession.

The euro has dropped 1 percent in the past three months against a basket of nine developed-market currencies tracked by Bloomberg Correlation Weighted Indexes.The dollar is up 7.1 percent, while the yen has gained 1 percent.

Draghi is set to speak in Frankfurt on Wednesday after saying on October 11 that the central bank will use further unconventional monetary-policy instruments if needed to support a recovery. It has implemented a negative deposit rate, offered cheap loans to banks and unveiled a plan to buy asset-backed securities.

“We continue to expect further easing measures in the first quarter, and would look for ECB officials to continue to stress willingness to do more if necessary,” Daniel Katzive and Vassili Serebriakov, New York-based strategists at BNP Paribas SA, wrote in a note to clients. BNP is recommending investors make bets that would benefit if the euro extends declines against the dollar.

Slowing inflation

The pound fell the most in a month on Tuesday as a report showed UK inflation slowed, damping expectations the Bank of England will increase interest rates. The annual pace of consumerprice growth dropped to 1.2 percent in September, the Office for National Statistics said.

Sterling was little changed at $1.5902 following a 1.1 percent slide on Tuesday, the steepest since September 8.

It touched $1.5877 on Wednesday, the least since November 12.

China’s yuan ended two days of gains as a report showed consumer price gains slowed to 1.6 percent from a year earlier in September, compared with 2 percent in August. That was less than the 1.7percent median estimate in a Bloomberg survey.

The People’s Bank of China lowered its reference rate for the yuan by 0.08 percent, the biggest reduction since August 21, to 6.1455 against the greenback. Bloomberg News