BusinessMirror April 2-3, 2015

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UNUSUAL ‘BACKSTAGE’ THINGS YOU CAN ONLY DO IN LONDON D

EAR Father, You are the ruler of the universe, the king of the world, the master of the human heart. There is nothing beyond Your reach; nothing lies outside Your power. You order the course of the planets, the changing of the seasons, the laws of nature, the instincts of animals. But also Your will that human persons be free. You made us so that we can choose to do good or evil, to serve You or an idol. Today, at home and at work, we will have to make several choices, but we should always remember that You have a say in our choice.

Amen.

VIRGIE SALAZAR AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

VISITORS to the Houses of Parliament begin their tour in Westminster Hall.

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COLORFUL ‘HOME’ IS A PLEASANT ADVENTURE »D2

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A CALM, RESTFUL EASTER AT BELLEVUE

Unusual ‘backstage’ things you can only do in London B G H | Airfarewatchdog.com

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N February Los Angeles resident Adaeze Uyanwah won what was perhaps the ultimate travel contest. After submitting a brief statement and short video explaining why she should be picked, the University of California, Los Angeles film student got a call informing her that she was chosen from among over 10,000 entrants to visit London for two weeks as London’s “Guest of Honour”. After much incredulous screaming, she was soon on her way via Air New Zealand business class.

And it was a truly unusual visit. She toured the Science Museum with Prof. Stephen Hawking (who quipped that Eddie Redmayne did a good job but didn’t have his looks), met Mayor of London Boris Johnson, had tea with Downton Abbey’s Mr. Carson (actor Jim Carter), visited 10 Downing Street (the prime minister wasn’t available unfortunately), took a private tour of the Houses of Parliament and Warner Bros. Studios Tour London, lowered and raised the famous Tower Bridge, toured the Royal Opera House backstage, and much more (the £5,000 she received for a shopping spree on Oxford Street didn’t hurt, either).

It was a true “insider” look at London and you, too, can experience some amazing “backstage” experiences on your next London visit. Here are seven unusual things you can do that most visitors, and even Londoners, scarcely know about: ‘FLY’ A BRITISH AIRWAYS JET http://bit.ly/1EUykj0 IF you like video games, have ever dreamed of being a

pilot, or just want the thrill of a lifetime, British Airways will let you “fly” in the same flight simulators used to train their pilots. I did this for several hours and I was quite giddy. It’s an incredible experience.

TOUR THE HOUSES OF PARLIAMENT http://bit.ly/1C0PoTF ADAEZE got a private tour of the Palace of Westminster with the speaker of the House of Commons, but anyone can visit and watch debates in a group tour. The interior architecture will have you craning your neck in every direction.

BACKSTAGE TOUR OF THE ROYAL OPERA HOUSE http://www.roh.org.uk/tours/backstage-tour PERHAPS you’ll watch a ballet class in progress, see current and historic stage sets, or even spy a famous opera or ballet star. And if you get a chance, pick up some tickets for a performance.

TOUR THE ORIGINAL HOGWARTS EXPRESS http://www.wbstudiotour.co.uk/ IF you’re a Harry Potter fan, taking a tour of Warner Bros. Studios Tour London is a must. Opened just recently, a new exhibit shows visitors the original Hogwarts Express steam engine and a recreation of Platform 9 3/4 provides a glimpse into how some of the films’ most iconic scenes were created.

BACKSTAGE TOURS OF LONDON THEATERS http://bit.ly/1wpvAL0 LONDON’S Guest of Honour actually got to be an

mixture of baking soda and peroxide onto your nails and leaving it to sit for up to 15 minutes.

Once rinsed, you’ll have lightened nails returned to their natural shade.

From there, you can go with a basic, product-free pedicure or try a lighter polish. Either way, the darker yellow stains won’t be there to detract from your chosen look. n Strands: If you’re the type of person who’s a bit addicted to hair products, leaving your favorite potions at home can put you into a grooming tailspin. When backpacking, you can use baking soda as a dry shampoo to apply around roots and throughout your locks when that 16-hour bus ride gets extended due to a flat tire. Simply brush

TRYING to save carry-on space and security stress by avoiding packed liquids? While you may enjoy using your favorite toiletries on vacation, the hard truth is that lugging them along may cause you more aggravation during the trip than they’re worth. A basic box of baking soda can be purchased inexpensively upon arrival at your chosen destination, and used to assist you with a variety of beauty needs. n Stains: Bright red pedicures and clear polish without sunscreen typically result in stained toenails. Longterm travelers stranded far from a spa can address this issue by scrubbing a

ENJOY a relaxing retreat with your loved ones this Lenten Season as five-star The Bellevue Manila in Alabang offers an enticing room promo for the whole month of April.

Get that much-needed break and book an overnight stay complete with amazing inclusions, like two tickets to The Bellevue Manila Easter Kiddie Party, daily buffet breakfast, welcome drinks at Vue Bar, complimentary use of swimming pool and gym facilities, unlimited in-room broadband Internet access, shuttle service to Alabang Town Center, Festival Mall and other nearby commercial/financial districts, daily local newspaper and two bottles of mineral water replenished daily at only P6,500 net for Deluxe Room (Main Wing) and P7,500 net for Deluxe Room (Tower Wing).

For inquiries, call (02) 771-8181 or e-mail tbmnl@ thebellevue.com.

extra in the chorus of the London cast of Mama Mia! for an evening.

Sorry, but that’s not on offer. However, if you’re a theater fan, these tours are a must. The National Theatre and Theatre Royal Drury Lane are two especially good ones.

TOUR AND WITNESS THE ROYAL COURTS OF JUSTICE IN ACTION http://bit.ly/1B0wqsV NO country does justice with quite the pomp and circumstance (wigs and gowns for days!) that England does.

Not only is the architecture impressive but the proceedings, which you can witness from the gallery, are fascinating too. Guided tours should be booked far in advance of your trip OPEN HOUSE LONDON http://www.openhouselondon.org.uk/ FOR the ultimate “backstage” experience, this annual event literally opens to the public buildings that are normally off-limits (this year the event happens September 19 and 20).

The theme is “revealing great architecture for free,” and, indeed, the entire weekend offers free admission.

For example, last year you could visit 10 Downing Street (the UK’s White House equivalent) if you were lucky enough to win a lottery for the limited number of places.

So if you’ve visited London dozens of times and done the “top 10” things such as the Tower of London and so on, next time put these “backstage” opportunities on your list. n

Baking soda answers budget beauty needs on the road B M T Tribune News Service

to remove the loose grains after the oils have been absorbed, and you’ll be good to go. You can also mix a little bit into the hotel shampoo to remove buildup from other hair products and deal with chlorine discoloration. Clarifying shampoo can be difficult to find at certain locations, but this solution is something you can implement anywhere for pennies. n Skin: Changes in climate and excessive beach time can leave your face and body in need of additional attention.

Baking soda can be added to shower gel for all-over exfoliating, or gently massaged on your face to polish things up prior to makeup application. Don’t forget to treat rough patches on your heels, knees and elbows, as well.

n Smiles: Vacation beverages can take a toll on your teeth in the form of discoloration. Keeping a little baking soda in your room will help you combat the effects of things such as red wine, coffee, hot chocolate, iced tea and more.

Simply apply some to your toothbrush to scrub your teeth prior to your regular paste brushing. It will remove recent staining, and save you the cost of an expensive bleach treatment at the dentist’s office back home. n Myscha Theriault is a best-selling author and avid traveler. She is currently traveling through North America with her husband and Labrador retriever.

Readers can follow their adventures on Twitter by following @MyschaTheriault.

PHILIPPINE TOURISM GETS ANOTHER BOOST

THE Philippines saw 2014 as a successful year in tourism with more tourists visiting the country.

According to the Department of Tourism, inbound visitors during the year grew by 3.25 percent, while total earnings from inbound tourism increased by 10 percent against previous year’s earnings.

This upward trend drove Globe Telecom, together with trusted one-stop online travel solutions site AsiaTravel.com, to offer tourists exclusive connectivity deals that will allow them to stay in touch anytime, anywhere with the Globe Traveler SIM and the TravelSurf promo.

“The Philippines is rapidly becoming a destination hub for tourists worldwide on the back of our booming economy and top vacation spots. In order to complete their travel experience in the country, we at Globe aim to be their connectivity partner of choice with our innovative and affordable deals,” Globe SVP for International Business Rizza ManiegoEala shares.

Available to Philippine tourists, the Globe Traveler SIM (www.globe.com.ph/traveler-sim) www.globe.com.ph/traveler-sim) offers local www.globe.com.ph/traveler-sim rates for calls, texts and mobile data services.

With the SIM, users can call abroad for as low as $0.40 per minute; receive calls and SMS from abroad for free, and cut costs on mobile data with a TravelSurf promo. With TravelSurf, users can access the Internet on mobile for only P500 for seven days or P1,000 for 30 days.

With the special SIM and the TravelSurf promo, tourists can connect with their contacts from around the world through calls, texts and mobile Internet, enabling access to instant messaging, social networking, e-mails and search engines, as well as their favorite apps. They also get the best treats that include free Globe mobile Internet services or free AsiaTravel vouchers.

Travelers who booked their trips in the Philippines via www.AsiaTravel.com will also get a free Traveler SIM loaded with free mobile Internet service. Tourists get a minimum of two days of free mobile Internet access for an overnight stay in the Philippines to as many as 30 days for a 16-night stay or more. Meanwhile, existing Globe customers who also purchase their own Traveler SIM or subscribe to a TravelSurf promo are also entitled to compelling offers.

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HONORING NORA AUNOR Show BusinessMirror

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REELING TITO GENOVA VALIENTE

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Nora entered the venue. Everyone stood up as Nora approached the presidential table occupied by the mayor, his wife, Farrah, and their daughter. Around the table were the city councilors and two poets, Vic Nierva and lawyer Dan Adan, who would read poems dedicated to Nora. The city mayor began with the line: “I am a Noranian and proudly so.” He recalled how his mother Gloria would play day in and day out the songs of Nora on their phonograph. Vice Mayor Nelson Legacion was introduced as a Noranian when he was called to read the citation for Nora as honorary Nagueña. Legacion, before reading the resolution, called in what he called the “other Noranians,” the other councilors present.

Before Nora was called to the stage, the room dimmed and an image of a blue night sky and moon was flashed on-screen. Zayda Rifareal, an employee of the City Hall, went up and sang a cool and enchanting version of “Moonlight Becomes You.” The enchanting standard was Nora’s winning piece in Tawag ng Tanghalan.

After the song, the singer took a bouquet from Allen Reondanga, the man behind the fascinating night.

Zayda approached Nora who touched her cheeks and whispered: “Thank you.” Zayda just kept on bowing.

Applause resounded all around.

Nora was called to the stage. In a long and animated speech, which the crowd did not want to end, she introduced herself by mentioning in full the names of her father and mother. A life of poverty was what Nora was narrating. There was no bitterness in the voice. She was proving herself to be a raconteur as she recalled how she would listen to the neighbor’s radio and write down the lyrics of the song she loved. ““Mali-mali ang lyrics [the lyrics were wrong].” Indeed, in her early years, one could nitpick and speak ill of the pronunciation and wrong wording. But, no one—absolutely no one—dared comment badly on that voice that was a cross between alto and angel’s voice, whose interpretations of songs were pure genius and grandeur.

Nora Aunor could have gone one and on. Like the song that she sang on and on in Naga City when she was a small, dusky little girl with pain and joy in that voice, “You and the Night and the Music.” Soon, the taking of pictures began. It was fun and chaos until Allen started to call each by group. March 27 began at 9 in the morning. The gate of the Ateneo de Naga University was closed at 8 in the morning, only for it to be opened when the car carrying Nora Aunor arrived at the gate.

At past 9, we were informed, the car was passing over the Colgante Bridge, the bridge that fell down in 1972 during the Peñafrancia celebration. The members scampered for their respective positions. Soon Nora was going up to the landing in front of the iconic Four Pillars of the university.

The building was constructed in 1940. The war broke out and the Japanese occupied the structure behind it for their headquarters. The university was called the “Fort Santiago” of the Bikol region.

Nora Aunor was entering a historic place. She made history as that girl from a very poor background who rose to prominence in cinema not only in the Philippines but in the world.

The university recognized her contribution to the region; thus, the Bulawan na Bikolnon (Golden Bikolnon) Service to the Bikol Award.

From the Four Pillars, Nora was escorted to the Saint Ignatius Park where she laid a wreath and offered a prayer to the founder of the Jesuit Order. By this time, the Baccalaureate Mass was over and the graduates were taking their break. But very few people were leaving their seats. The contingent of Noranians from Manila were already in their designated place.

At 10 in the morning, Nora entered the covered court. Those who were not seated were the first to see her. Mobile phones went up but, instead of a noisy clamor, there was a hush. As the small figure came into sight, the applause started to roll from the last row and went soaring. The sound was deafening as Nora Aunor began her ascent to the stage. Up the stage, she whispered to me how nervous she was. I assured her it was home.

The citation was read and Fr. Primitivo Viray, SJ, president of Ateneo de Naga University, handed her the award. She was ushered to the rostrum.

Nora was all candor as she recalled once more a life of poverty. She spoke of destiny and following one’s dreams, of a father who woke up immediately

when the sound of train was heard for that meant work, of debts from neighbors. She sounded blunt when she recalled how she could not believe that she would become an artista because at the time, actors and actresses were tall, fair-skinned, and beautiful. ““Itum-itom ko na, makanoson pa [I was very ugly and very dark].” She was speaking in Naga-Bikol and in Irigueña. She was remembering a childhood that, given what she has achieved, appeared to have no link to her present celebrity. She mentioned once more how she sang first at Plaza Quezon in Naga City. Then the crowd started to chant: “Sing, sing, sing.” Nora talked about what happened to her years back, how she lost her voice. There was no sadness in those words. She was all strength. She was at ease with the crowd. The students were getting to know her. Everyone became a Noranian that morning.

A city and a university were honoring her. She honored them, as well.

Nora Aunor was home.

line in the tune “Night Changes” to acknowledge his mate’s departure, Gossip Cop reported. “Having no regrets is all that she really wants” became, “Having no regrets is all that he knew he wants.”

Johannesburg fans could also still buy concert merchandise bearing all five faces, the web site said.

“I am leaving because I want to be a normal 22-year-old who is able to relax and have some private time out of the spotlight,” Malik said in a statement last week.

Apparently, “normal” includes shopping for a multimillion-dollar house with your fiancée, according to pictures of him and Perrie Edwards taken last week and published over the weekend by London’s Mirror.

Mirror Mirror.

Looks as if everyone’s OK with moving on.... LOS ANGELES TIMES

SHOW

ZAYN MALIK

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TRANSPORTATION STRIKE SHUTS DOWN ARGENTINA B2

NEW YORK—Fresh off buying the nation’s fourth-largest chain of car dealers, billionaire investor Warren Buffett says he expects to buy more dealerships even as a robust auto market makes showrooms more expensive. Sitting on a panel at the NADA/J.D. Power Automotive Forum on Tuesday, Buffett said he doesn’t worry about overpaying for a dealer. It’s a business where you can estimate within 5 percent to 10 percent the price you’re going to pay, he said. Buffett’s Berkshire Hathaway acquired the Van Tuyl Group this month. Both Buffett and Larry Van Tuyl, who now runs Berkshire’s automotive group, said they don’t view Tesla’s direct-toconsumer distribution model as a threat because of the electric car maker’s small sales volume. AP

Transportation strike shuts down Argentina

Thousands strike at major shoe factory in Vietnam

HANOI, Vietnam—Thousands of Vietnamese workers at a major footwear factory are on strike for the sixth straight day to protest a socialinsurance law. Vietnam is hit by several hundred labor strikes a year mostly over poor working condition and low pay, but protesting a government policy is rare. Several thousand workers began the stoppage on Thursday at the compound of the Taiwanese-owned Pou Yuen factory in southern Ho Chi Minh City. Pou Yuen Vietnam, which employs more than 80,000 workers, is a subsidiary of Pou Chen Group and makes footwear for companies such as Nike and adidas.

Workers are protesting a new law, which comes into effect next year, requiring them to buy social insurance when they retire instead of getting a one-time payment. AP

Better lives sought for larimar miners in Dominican Republic

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AHORUCO, Dominican Republic—The men in ragged clothes, many barefoot and covered in grime, scramble deep into the earth, searching for veins of a blue-green stone believed to exist only in the southwestern mountains of the Dominican Republic. The stone is larimar, and its existence under these wooded slopes has been both a boon and a curse for men such as Juan Pablo Feliz, who says there is no other work in the impoverished region. Few strike it rich, but the gem has provided modest incomes for about 1,000 miners and their families since they began working the deposits four decades ago.

Now, Dominican officials are trying to make mining safer and more profitable for the men who toil in roughly five dozen makeshift tunnels that pockmark the forested mountains of Barahona province like ugly scars.

In March authorities celebrated the completion of a 400-meter tunnel meant to make the work safer. And the government opened a school last fall to train locals to cut and polish larimar and turn it into jewelry, hoping to increase their meager income. Prices for larimar jewelry can vary from a few dollars for a bauble sold on a Dominican beach to thousands of dollars in an upscale store or abroad. “The idea is to give some added value to the stone, and to see that value stay in this region,” said Brunildo Espinosa, director of the school, which now has 130 students whose works will be sold at a state-sponsored store in the Punta Cana resort complex and in the capital, Santo Domingo.

The new projects are part of the government’s efforts to promote tourism in Barahona and neighboring Pedernales province, which share some of the most beautiful seascapes of the country, including the pristine Bahia de las Aguilas. AP

A CYCLIST has the road to herself, left empty by a transportation strike in Buenos Aires, Argentina, on March 31.

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UENOS AIRES, Argentina— Transportation unions brought Argentina to a standstill on Tuesday with a one-day national strike to protest income-tax rates and high inflation they say is eroding their earnings.

Flights were canceled, schools shut down, banks closed and thousands of businesses were shuttered along largely empty streets.

While transportation workers represent only a small part of the South American country’s work force, shutting down trains and buses created a domino effect because many Argentines have no other way to get to work or school.

Most domestic and international flights were canceled because transportation unions represent many airport workers. Some schools canceled classes and others announced half-days as teachers had trouble getting to work.

Even drivers with their own cars had a hard time getting into the capital because members of the Socialist Workers party blocked the principal

routes into Buenos Aires.

“Total impact,” said Roberto Fernandez, leader of the Automotive Tramways Union, one of the main organizers, told Radio Mitre. “But for us there is no happiness here because the country loses. Unfortunately, the government refuses to be reasonable.”

The unions argue that high taxes and inflation, which private economists put at around 35 percent, have eroded wage gains. They also want to raise the minimum income on which taxes are applied.

Top officials in President Cristina Fernandez’s say the tax rates are fair and affect only a small percentage of workers, those who earn more than P15,000 ($1,765) a month.

Cabinet chief Anibal Fernandez told reporters that the government

believed 95 percent of people who stayed home wanted to work but had no way to get there. “#YoNoParo,” or “I don’t strike,” was a trending hashtag on Twitter, where Argentines joked about having to stay home and defended job creation under Fernandez’s government. The strike comes during Holy Week, a time when business generally slows down and some people take days off from work. It follows the recent collapse of negotiations between the government and the unions.

Unions hold great influence in Argentina, representing an estimated 30 percent to 40 percent of the 11 million registered workers across all sectors of South America’s second-largest economy.

More than trying to extract concessions from a lame-duck president, the strike was a way to send a signal to candidates before the October elections, said Patricio Giusto, director of Political Diagnostic, an Argentine think tank. Fernandez is barred from running for a third term in October.

“Whoever wins, the next president is going to have to deal with this situation,” Giusto said.

“It’s unavoidable if they don’t want to have conflicts” with a large sector of the population. AP

Son of Argentine president denies news reports about bank account

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UENOS A IR ES, A rgentina—The son of Argentina’s president on Tuesday denied anonymously sourced press reports alleging he had foreign bank accounts, calling them false accusations designed to smear his mother’s administration.

“Let’s be clear. I never had and do not have any account abroad, absolutely nothing,” Maximo Kirchner told local radio Continental during an interview.

On Sunday the newspaper Clarin, which has long been at odds with President Cristina Fernandez, published a story saying Kirchner held joint accounts in the US and Cayman Islands with Nilda Garre, a former defense minister who is now Argentine ambassador to the Organization of American States.

Citing unidentified bank sources, Clarin said the accounts had tens of millions of dollars. Garre also had two accounts in an Iranian bank, which created “suspicions of business triangulation between Argentina, Iran and Venezuela,” Clarin said.

The Brazilian magazine Veja

published on Monday a similar report, citing an unidentified US financial sector investigator. Earlier this month, Veja published a report claiming Iran asked former Venezuelan President Hugo Chavez to mediate a deal with Argentina in which the South American country would cover up the roles of Iranians wanted in the 1994 car-bombing of a Jewish community center.

Garre strongly denied the claims over the weekend. On Tuesday Kirchner said he did not usually respond to false reports, but said the allegations were so strong that he felt compelled to speak out.

“Nobody called me, not the Brazilian publication or Clarin, to check this information,” said Kirchner, who rarely grants interviews.

Kirchner said the reports were an attempt to hurt his mother’s government by keeping attention on the death of prosecutor Alberto Nisman.

Days before he was found shot dead in this apartment on January 18, Nisman had accused Fernandez and top administration officials of orchestrating a secret deal with

Iran to cover up the roles of several Iranian officials wanted in the community center attack, which killed 85 people and wounded hundreds. Nisman said the Argentine government made the agreement in exchange for favorable trade deals with the Middle Eastern country.

Fernandez has strongly denied the allegations, saying Argentina had nothing to gain from such a deal, and Iran has long denied involvement in the attack.

Nisman’s death, which has captivated Argentines, has not been solved. Authorities say they are investigating a possible homicide or suicide. The case that Nisman built against Fernandez is in limbo and has become a flashpoint in a sharply polarized country ahead of the presidential election in October.

The case was thrown out by a federal judge in February, and then upon appeal, was thrown out again by the Federal Chamber. In both cases, the judges said there was no proof a crime had been committed.

The case was appealed on Tuesday to the Criminal Appeals Court. AP

Google, Microsoft battle drives down prices for PCs, tablets

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AN FR ANCISCO—Google is releasing its cheapest Chromebook laptops yet, two versions priced at $149 aimed at undercutting Microsoft’s Windows franchise and gaining ground in even more classrooms. Various PC manufacturers have been working with Google to design lightweight laptops running on the Chrome operating system since 2011. The newest versions are made by Hisense and Haier.

Hisense’s Chromebook can be ordered beginning on Tuesday at Walmart.com and Haier’s version can be bought at Amazon.com.

Their arrival coincides with Microsoft’s rollout of a lower-priced Surface tablet in an effort to reach students and budget-conscious families. Preorders for that device began on Tuesday, too.

As the prices for tablets and smartphones have been declining, it has forced on PC makers to lower their prices, said International Data Corp. (IDC) analyst Jay Chou. The success of the Chromebook line is intensifying the PC pricing pressure.

“It has been good news for consumers, but not so good for vendors,” Chou said.

The cheaper version of the Surface Pro 3 sells for $499, compared with $799 to $1,949 for the higherend models. The discounted version has a slightly smaller screen—10.8 inches rather than 12—a slower processor, and less flexible kickstand—just three angles rather than unlimited positions.

The Chromebook has served a dual purpose for Google. Like the company’s Android software for

mobile devices, the Chrome system is set up so users will automatically begin using Google’s search engine and other services, such as Gmail and YouTube.

Google has used the Chromebooks as a prod to bring down the prices of all PCs, something the company wanted to do because it has more opportunities to show the digital ads that bring in most of its revenue when more people can afford to buy an Internetconnected device.

“We cannot be happier that Microsoft is helping drive down the prices of PCs,” said Caesar Sengupta, Google’s vice president of product management for Chromebooks.

“If Microsoft is reacting to [Chromebook’s low prices], that’s fantastic. We love it.”

Unlike most computers, Chromebooks don’t have a hard drive. Instead, they function as terminals dependent on an Internet connection to get most work done. Despite those limitations, Chromebooks have been steadily gaining in popularity, particularly in schools, as more applications and services made available over Internet connections—a phenomenon known as “cloud computing” that has reduced the need for hard drives.

About 6 million Chromebooks were sold worldwide last year, more than doubling from 2.7 million in 2013, according to IDC. In contrast, sales in the overall PC market slipped 2 percent last year, marking the third consecutive annual decline. IDC is projecting 8 million Chromebooks will be sold this year. AP

Fast-food labor organizers plan actions for April 15

IN this March 17 file photo, dozens of fast-food workers and their supporters protest workplace conditions in front of a McDonald’s restaurant in New York. AP

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EW YORK—Fast-food labor organizers say they’re expanding the scope of their campaign for $15 an hour and unionization, this time with a day of actions including other low-wage workers and demonstrations on college campuses.

Kendall Fells, organizing director for Fight for $15, said on Tuesday the protests will take place on April 15 and are planned to include actions on about 170 college campuses, as well as cities around the country and abroad.

At an event announcing the actions in front of a McDonald’s in New York City’s Times Square, organizers said home health-care aides, airport workers, adjunct professors, child-care workers and Wal-Mart workers will be among those turning out in April.

Terrence Wise, a Burger King worker from Kansas City, Missouri, and a national leader for the Fight for $15 push, said more than 2,000 groups including Jobs With Justice and the Center for Popular Democracy will show their support as well.

“This will be the biggest mobilization America has seen in decades,” Wise said at the rally as pedestrians walked past on the busy street. The plans are a continuation of a campaign that began in late 2012. The push is being spearheaded by the Service Employees International

Union and has included demonstrations nationwide to build public support for raising pay for fastfood and other low-wage workers, although turnout has varied from city to city.

Last May the campaign reached the doorsteps of McDonald’s headquarters in Oak Brook, Illinois, where protesters were arrested after declining to leave the property ahead of the company’s annual meeting. Fells, an SEIU employee, said April 15 was picked for the next day of actions because workers are fighting “for 15.”

“It’s a little play on words,” he said.

Fells noted that while the push began as a fast-food worker movement, it has morphed into a broader push for low-wage workers and is now shifting into a social justice movement with the involvement of “Black Lives Matter” activists joining in in the April protests. Still, he said McDonald’s Corp. remained a primary target.

“McDonald’s needs to come to the table because they could settle this issue,” he said. In a statement, McDonald’s said it respects people’s right to peacefully protest, but added that the demonstrations over the past two years have been “organized rallies designed to garner media attention” and that “very few” McDonald’s workers have participated. AP

WORLD

HE International Monetary Fund (IMF), one of the most conservative institutions there is and always very hard to please, scaled up its growth forecast for the Philippines to 6.7 percent in terms of local output, or the gross domestic product (GDP), this year. demand and a result of a weeklong visit by a team of IMF experts to the Philippines.

In the wake of that visit, growth was seen rising moderately as a C  A

CHINACREATING‘GREAT WALL OFSAND’INSEAU.S. ADMIRAL

n Credit for the successful events in Naga City belong to Allen Reondanga and his team in the City Events, Protocol and Public Information Office, for the tribute given by the City of Naga. On the Ateneo de Naga University side, Dr. Noel Volante and Aiemon Salvamante led the planning and coordinating with Kristian Cordero, Rico Raquitico, Ryvin Mercado, Belen Amaro, Reggie Regondola, Marlon Razon, and the Administrative Office of the Ateneo de Naga University.

Zayn who? One Direction moves on after scrubbing Malik from intro video HEY, Zayn Malik, don’t let the door hit you on the way out: One Direction has reportedly already scrubbed the group’s former fifth man from the video intro that kicks off its On the Road Again concerts.

Malik’s mug was absent from the video at the now-quartet’s Saturday show in Johannesburg, South Africa, according to Britain’s Independent.

He took himself off tour on March 19 and officially quit the group last Wednesday. The Johannesburg gig was the band’s first since that permanent parting of the ways.

Niall Horan and Louis Tomlinson performed Malik’s solos on Saturday, the Independent said. The boy band had already done four-man shows in Jakarta, Indonesia, and in Manila.

Liam Payne appeared to tweak a

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The accelerated growth path seen for the $272-billion economy this year came at a time when economies around Asia were forecast to slow down, as consequence of more moderate-than-expected global

Honoring Nora Aunor

HE traveled by land from Albay to Naga City. It was almost three in the afternoon when Nora Aunor stepped into Avenue Hotel, the finest in the city and one of the best in the region. She was with three media representatives (Crispina Martinez-Belen, Bayani San Diego and William Reyes) and her entourage of three.

In Legaspi City, she would be given an “onra,” a corrupted spelling of the Spanish word “honra,” which means “honor” or “pride.”

That pride or honor would multiply as she arrived in Naga City for two more awards and the indeterminable love of the many Bikolanos who still treasured being with Nora Aunor, as we would find out later.

On the evening of March 25, we welcomed Nora Aunor and her team at Jimmy and Tang, a restaurant in the residence of the late Dolores Hernandez-Sison.

The dining area is a cross between a local gourmet center and home cooking. It is important to give this description because the place is cozy, and what would happen that night was a sweet preview of the days to come. The dining area had four tables, with two round tables flanking the main door. One table was already filled up by several balikbayan out to surprise a relative.

The group all belonged to prominent families of the city.

When I saw the car from the Ateneo de Naga University tasked with fetching her, I stood up to welcome Nora.

She entered and, upon seeing the group to her right, she greeted them with ““Dios marhay na banggi po saindo gabos” (literally, “Good evening to you all”). She then walked to the farthest end of the room. I heard someone said: “Garo si Nora Aunor [She looks like Nora Aunor].” Someone joined in: Si Nora! I didn’t know what happened but soon a hand was leading Nora to a nearby table. Cameras and mobile phones were whisked out. Nora was smiling throught half-amused and halfpleased. Someone turned to me and exclaimed: She was our idol when we were in high school. The instant photo session began to look like a reunion, with Nora Aunor a batchmate come home.

The dinner was finished at 8 pm. By that time, a busload of Nora Aunor fans, some of them officials of the oldest fans club in the country. They had been planning this trip and they were in a tourist bus. They came as guests of Naga city and the Ateneo de Naga University. I would meet them behind the Basilica of the Virgin of Peñafrancia. While Nora was in Buhi upon the invitation of philantropist Cyrus Obsuna, the Noranians had a tour of Naga City and the surrounding areas. At 3 in the afternoon, they sponsored a Mass in the Basilica with Nora Aunor and her team. Fr. Lito Heraldo, an admirer of Nora, officiated the Mass. Nora offered to “Ina,” as the Virgin of Peñafrancia is addressed by devotees. They would tell me the next day that they had a marathon screening via the TV on the bus of Nora Aunor’s films and concert.

The 26th was the night for the city to honor her with the symbolic key to the city and the Honorary Nagueña award. Nora is not from Naga; she is from Iriga. The city was officially adopting her as a citizen and daughter.

This act was done through a resolution and voted unanimously by the council. That night, Mayor John G. Bongat led the city in welcoming Nora to the Avenue Convention Center.

A young violinist played “Sarung Banggi” and

P.  |     | 7 DAYS A WEEK

I.M.F. NOWSEESECONOMYGROWING 6.7% THISYEAR, BUTSTILLBELOWOFFICIALGOV’T TARGET

INSIDE

To make several choices

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HINA is“creating a great wall of sand” through land reclamation in the South China Sea (West Philippine Sea), causing serious concerns about its territorial intentions, the commander of the US Pacific Fleet said on Tuesday.

Adm. Harry Harris Jr. told a naval conference in Australia that competing territorial claims by several nations in the South China Sea are “increasing regional tensions and the potential for miscalculation.”

“But what’s really drawing a lot of concern in the here and now is the unprecedented land reclamation currently being conducted by China,” he said.

“China is building artificial land by pumping sand on to live coral reefs—some of them submerged —and paving over them with concrete. China has now created over 4 square kilometers [1.5 square miles] of artificial landmass,” he said.

Harris said the region is known

PESO EXCHANGE RATES n US 44.7250

for its beautiful natural islands, but “in sharp contrast, China is creating a great wall of sand with dredges and bulldozers over the course of months.”

China claims virtually all of the South China Sea. The Philippines and other countries which have territorial disputes with China in the busy sea have been particularly concerned by the land-reclamation projects, which have turned a number of previously submerged reefs in the Spratlys archipelago into artificial islands with buildings, runways and wharves.

The islands could be used for military and other facilities to bolster China’s territorial claims.

Harris said the pace of China’s construction of artificial islands “raises serious questions about Chinese intentions.”

He said the United States continues to urge all claimants to C  A

‘BISIKLETA IGLESIA’ Bikers give a new twist to the traditional Visita Iglesia, a pious Roman Catholic Lenten tradition of visiting seven churches or religious sites, with the Bisikleta Iglesia 2015. Hosted by Lima Park Hotel and presented by First Asia Institute of Technology and Humanities, Bisikleta Iglesia 2015 is a religious and heritage biking tour through three towns, seven churches that include five shrines, and 52 kilometers of rustic roads and Batangas culture. The tour itinerary includes visits to Santo Niño Parish Church, Marawoy, Marian Orchard, Balete, Divino Amor ChapelRedemptorist, Parish of Mary, Mediatrix of All Grace, Our Lady of Mount Carmel Monastery, Metropolitan Cathedral of San Sebastian and Parish of Saint Thérèse of the Child Jesus. ROY DOMINGO

Henry Sy to build micro cities around his malls B

I L L ION A I R E Hen r y Sy Sr., the richest person in the Philippines, will start to develop apartments, offices and hotels around his shopping malls to maximize the value of his property holdings in the face of similar moves by competitors.

Fifteen of 50 shopping malls now owned by Sy’s SM Prime Holdings Inc. are on land large enough for high-density, mixed-used development, Executive Vice President Jeffrey Lim, 53, said in an interview in Manila on Monday.

Depending on demand, five so-

LIM: “Our thrust is to maximize the synergies of integrated development.

Building lifestyle cities will maximize the potential of our properties.”

called townships will be built in two years and about 10 more over five years, he said.

The townships will be part of SM Prime’s P500-billion ($11-bil-

lion) expansion from now through 2019, Lim added. They will pit the largest Philippine mall developer against Ayala Land Inc. and Megaworld Corp., the biggest builders of mixed-used projects.

Ayala and Megaworld have been building townships for several years, capitalizing on the rising office-space needs of outsourcing companies, while higher remittances from Filipinos abroad have fueled home purchases.

“SM Prime has plenty of resources around its malls, and these C  A

n JAPAN 0.3726 n UK 66.3182 n HK 5.7687 n CHINA 7.2142 n SINGAPORE 32.6055 n AUSTRALIA 34.1256 n EU 48.0570 n SAUDI ARABIA 11.9238 Source: BSP (1 April 2015)

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Henry Sy to build micro cities around his malls

NSRP. . .

Continued from A8

that are far below the train systems of its peers. In a matter of five years, the railway system, which will run from Bulacan to Sorosogon, will be commercially opened, providing connectivity and ease of travel.

The first phase of the facility will involve the construction of a 36.7-kilometer narrow-gauge elevated commuter railway from Malolos, Bulacan, to Tutuban in Manila. It is seen to be completed by the third quarter of 2020. The second phase, which will extend the commuter rail to Matnog, Sorsogon, will be completed by the fourth quarter of 2019.

The two-phase deal will be implemented through the official development assistance and the PublicPrivate Partnership (PPP) Program.

“The NSRP Transfer Station will be located at Tutuban Center, which will put it in the forefront of this massive railway-transport project of the government,” the statement read.

The government also plans to extend the Light Rail Transit (LRT) Line 2 to the western part of Manila all the way to the port area. The statement said it will have one “major station” right in front of the Tutuban Center. “The LRT Line 2 Station will then interconnect with the NSRP Transfer Station and Tutuban Center. This will facilitate the transfer of passengers from the NSRP to the LRT Line 2 and vice versa. Based on initial studies made for the NSRP, the interconnection is expected to bring in additional 400,000 foot traffic per day to Tutuban Center’s area,” the statement read.

The state intends to plug the gap in the country’s transportation facility in the next decade by rolling out massive infrastructure projects that are seen to spur economic growth.

for about 10 percent of the nation’s economy, the World Bank estimates.

“The live-work-play lifestyle in these townships have resulted in a lot of success for some major developers,” Michael McCullough, Manila-based managing director at KMC MAG Group Inc., the local associate of Savills, said in mid-March.

SM Prime “has to be on its toes to continue to have the upper hand,” said Allan Yu, first vice president at Manila- based Metropolitan Bank & Trust Co. He helps manage about $7.5 billion, including SM Prime shares. “They have to upgrade their existing assets, not just expand their portfolio.”

Continued from A1

will become expensive parking lots if they don’t do this,” said Richard Laneda, an analyst at COL Financial Group Inc., who has a buy rating on the company’s stock. “If they don’t do this, the market will go to the other developers.”

The publicly held Philippine builders’ push for townships in and out of Manila boosted its capital spending to a record P331 billion, according to broker Savills Plc. Congestion in Metro Manila is driving demand in these microdistricts, it said.

‘On its toes’

Growing land bank

Remittances climbed 5.8 percent to a record $24.3 billion last year.

Money transfers from Filipinos living and working overseas account

SM Prime has gained 37 percent over the last year, exceeding the 30-percent gain in Megaworld and the

29-percent advance in Ayala Land.

The Philippine Stock Exchange index has added 24 percent in that period, and the Bloomberg Asia Pacific Real Estate Index 24 percent. SM Prime and the Philippine index were little changed at 10:39 a.m. local time.

Net income will climb 19 percent this year to P21.87 billion, according to median of 13 analyst estimates compiled by Bloomberg.

The company’s land bank stands at 900 hectares (2,224 acres), Lim said. Before Sy pooled his property assets into SM Prime in 2013, the mall builder’s land bank was about 120 hectares, Lim said.

Sy, who is 90, has an estimated net worth of $13.4 billion, according to the Bloomberg Billionaires Index.

He migrated to the Philippines from China in 1936 and started selling rice, sardines and soap in his father’s

IMF ups PHL growth forecast . . .

result of lower commodity prices, accelerated public spending and export growth, as well as continued and robust private consumption activities. Nevertheless, the scaled-up forecast growth this year compares poorly against official growth target averaging 7 percent to 8 percent for 2015. Based on data from the Department of Finance, the IMF always projects growth 0.5 percent lower than actual growth performance the past 20 years.

The IMF also projected that inflation were to average at the low end of the BSP’s 2-percent to 4-percent scaled-back target for the year to reflect lower commodity prices seen down the line. Year-to-date infla-

tion averaged 2.4 percent based on BSP data.

The decline in oil prices and inflows from business-process outsourcing, tourism and remittances were, likewise, seen to boost the country’s current-account surplus, a key economic yardstick that has made the Philippines a net lender to the rest of the world.

The Cabinet-level Development Budget Coordination Committee earlier projected a current-account surplus averaging more or less 2 percent of GDP, or $6.8 billion, this year.

The visiting IMF team took note of the country’s strong performance in 2014, as well as its

APRIL 2, 2015 | THURSDAY

TODAY’S WEATHER

cushion. “External demand could be weaker if risks of deflation and lower potential growth in advanced economies and key emerging markets were to materialize,” the IMF also said.

More recent preemptive BSP adjustments to arrest inflationary pressures in 2014 impressed the IMF, saying these resulted to more moderate liquidity and credit growth that reduced financial-stability risks.

“The BSP’s generally proactive approach to oversight of the financial sector, particularly real-estate exposures, provides additional support in this regard,” the IMF said.

The IMF also looks to the gov-

ernment to pick up its budget execution this year and next to achieve a deficit equal to 2 percent of GDP under the program.

“Over the medium term, structural policy issues center around increasing investment, particularly in infrastructure and human capital.

In this regard, continued efforts at enhancing revenue mobilization will be critical to address the large spending needs, including enacting measures to offset any revenueeroding policy change and preferably through a comprehensive tax reform,” the IMF said. Another team of experts is set to visit Manila in May this year under the terms of the country’s Article IV covenant with the IMF.

Manila reclamation

APR 3 FRIDAY

APR 4 SATURDAY

METRO MANILA

23 – 33°C

23 – 32°C

TUGUEGARAO

23 – 34°C

23 – 33°C

APR 5 SUNDAY

LAOAG

LAOAG CITY 23 – 32°C

SBMA/CLARK 24 – 34°C

APR 5 SUNDAY

23 – 31°C

25 – 32°C

25 – 32°C

24 – 32°C

23 – 32°C

TACLOBAN

25 – 31°C

24 – 31°C

24 – 30°C

23 – 31°C

CAGAYAN DE ORO

TAGAYTAY CITY 21 – 32°C

23 – 33°C

23 – 32°C

23 – 32°C

23 – 32°C

24 – 32°C

24 – 35°C

24 – 34°C

24 – 34°C

25 – 35°C

25 – 35°C

24 – 34°C

BAGUIO

15 – 25°C

14 – 24°C

14 – 23°C

SBMA/ CLARK

23 – 34°C

23 – 32°C

23 – 32°C

ZAMBOANGA

TAGAYTAY

22 – 32°C

21 – 31°C

LEGAZPI ILOILO/ BACOLOD 25 – 31°C METRO CEBU 25 – 31°C

TACLOBAN CITY 24 – 31°C

CAGAYAN DE ORO CITY 22 – 31°C

ZAMBOANGA CITY 25 – 34°C

PUERTO PRINCESA

ILOILO/ BACOLOD

25 – 32°C

24 – 31°C

23 – 30°C

SUNSET

MOONSET

MOONRISE

5:51 AM

6:08 PM

4:14 AM

4:28 PM

HALF MOON FULL MOON

3:43 PM

26 – 33°C

25 – 33°C

25 – 33°C

APR 4

8:06 PM

CELEBES SEA

3:41 AM

0.09 METER

9:21 PM

0.71 METER

Partly cloudy to at times cloudy with rainshowers and/or thunderstorms Partly cloudy skies

25 – 32°C

25 – 32°C

24 – 32°C

Cloudy to at times cloudy with rainshowers and/or thunderstorms Rains wiht Gusty Winds

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

www.panahon.tv

SABAH

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

MAR 27

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

METRO DAVAO 24 – 35°C

SUNRISE 20 – 30°C

LEGAZPI CITY 25 – 32°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

APR 4 SATURDAY

METRO CEBU

METRO DAVAO

TUGUEGARAO CITY 23 – 35°C

BAGUIO CITY 15 – 26°C

PUERTO PRINCESA CITY 26 – 32°C

APR 3 3-DAY FRIDAY EXTENDED FORECAST

RIDGE OF HIGH PRESSURE AREA EXTENDING OVER NORTHERN LUZON (AS OF APRIL 1, 5:00 PM)

Ridge of High Pressure Area (HPA) will bring fair weather to the country except for isolated rainshowers and thunderstorms in the afternoon or evening.

METRO MANILA 24 – 34°C

SM Prime plans to spend P70 billion this year to build malls and homes. After constructing three to four malls a year, SM Prime has said it plans to open as many as five in 2015. It plans to start five new residential projects this year and expand existing developments if there is demand As part of its strategy for 2015, SM Prime aims to sell as many as 14,000 homes, valued at about P3 million each, Lim said.

There is no supply glut in that portion of the market, he said. The company gets about a third of revenue from home sales.

For the longer term, the company

has applied to reclaim 600 hectares of land along the Manila Bay and spend about P100 billion to turn the property into a master-planned integrated and mixed-use community.

The development is adjacent to the group’s Mall of Asia complex and the strip of four integrated casino resorts that will make up the Manila Entertainment City.

That plan, which has won permission from the city governments of Pasay and Parañaque, will be among the single biggest contiguous developments in Manila if approved by the nation’s economic-planning agency.

“A number of our malls have excess land, and these are just there untouched,” Lim said. “Our thrust is to maximize the synergies of integrated development. Building lifestyle cities will maximize the potential of our properties.” Bloomberg News

Continued from A8

downtrending unemployment rate during the period. Still, the incidence of poverty in the country, an indication of the magnitude of policy and reform programs that must be pursued down the line to achieve a more equitable society, “remained a challenge,” it said.

The IMF also cited so-called risks to the 2015 growth outlook coming from both external and domestic sources. In particular, the IMF warned of disruptive assetprice shifts in financial markets cropping up as a result of divergent monetary policies in the advanced economies even as the visiting experts said the Philippines’s strong fundamentals provide a

3-DAY EXTENDED FORECAST

Manila store. He opened a shoe store in 1948, and eventually built his business empire in the 1980s by opening malls.

@PanahonTV

Stormy

The Nation

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BusinessMirror Editor: Dionisio L. Pelayo • Thursday-Friday, April 2-3, 2015 A3

Govt ready for Chedeng–Aquino

P

By Butch Fernandez

RESIDENT Aquino made sure on Wednesday all hands are on deck, double checking preparations by government agencies concerned in anticipation of Typhoon Chedeng that is expected to hit Luzon later this week.

Aquino assured that steps have been taken to mitigate Chedeng’s impact when it makes landfall in Aurora and Isabel even as typhoon trackers predicted it could eventually weaken.

“Every department is expected to be prepared,” Aquino told reporters, adding that apart from the Department of Public Works and Highways, the Department of Transportation and Communications is also closely monitoring the weather situation to be able to provide timely advise to ships still out at sea.

Once a typhoon signal is raised anywhere in the country, he said, “prevented na ang ships from sailing.”

At the same time, Aquino reported that the Department of Social Welfare and Development had also assured him that it “has a lready prepositioned ” relief goods, particularly in Isabela and Quirino provinces.

The President, however, disclosed that Science Secretary Mario G. Montejo, who is keeping track of the typhoon, had just updated him

that there is yet no need to convene the National Disaster Risk Reduction and Management Council (NDRRMC), headed by Secretary Alexander Pama.

Aquino said Montejo informed him that Chedeng, that has been classified as a super typhoon, is still “out of the country presently.”

“Sabi niya: ‘Mister President, Typhoon Chedeng’s strength is almost super-typhoon status but it is expected to weaken before entering the Philippine Area of Responsibility [PAR] and making landfall between Aurora and Isabela, which is expected on Saturday,’” Aquino said, adding Montejo assured he would be provided regularly with the weather updates.

Montejo, Aquino said, is not yet recommending that the President convene a crisis committee meeting.

“If I may, sir, I would not yet recommend for you to convene a meeting.

Sir, I believe the regular NDRRMC meeting would suffice. We’ll regularly give update especially if conditions worsen than expected,” Aquino

quoted Montejo as saying.

The President, instead, instructed Montejo, to “please keep him [Aquino] posted especially as developments happen, especially if they worsen.”

Chedeng was expected to enter PAR on Wednesday evening or early morning Thursday, according to Philippine Atmospheric, Geophysical and Astronomical Services Administration.

Military ready

Power facilities secure

MILITARY units in Luzon and the Visayas went on red alert on Wednesday afternoon, hours before Chedeng was expected to enter the country even as the National Police activated its disasterresponse plan.

Red alert was raised at around 1 p.m. on Wednesday by the Armed Forces chief of staff, Gen. Gregorio Pio Catapang, after the same alert status was ordered by the NDRRMC for disaster-response units around the country.

The NDRRMC also advised local officials to activate their evacuation plan and implement force or mandatory evacuation of residents living in flood-prone and low-lying areas that will be directly hit by the typhoon.

Catapang’s order covered the Armed Forces Northern Luzon Command, Southern Luzon Command, Central Command and Joint Task Force National Capital Region.

“The Disaster Response Operations teams under the aforementioned major units are placed on standby to support the local government and the Office of the Civil Defense for possible humanitarian and disaster-relief missions in calamity-affected areas,” Catapang said.

All other unified commands of the military are on blue alert as

DFA ready to explain note verbale

By Recto Mercene

T

HE Department of Foreign Affairs (DFA) said on Wednesday that it is ready to set the record straight regarding the alleged dropping of the Philippines’s Sabah claim.

“We reiterate in absolute terms that our note verbale of March 16 is not about Sabah. If necessary, we are prepared to clarify the matter in an executive session,” DFA Spokesman Charles Jose said in a briefing.

Jose did not explain why the department’s clarification would be made behind closed doors.

The DFA was responding to the Vera Files report that the DFA is offering a review of its 2009 protest against Kuala Lumpur’s submission to a United Nations (UN) body that impinged on the Philippines’s Sabah claim.

Vera Files said the note verbale was a tacit solicitation of Malaysia’s support for Manila’s case against China in the South China Sea maritime row.

The DFA responded to the story the following day, stressing that the note verbale

JOSE: “We reiterate in absolute terms that our note verbale of March 16 is not about Sabah.

If necessary, we are prepared to clarify the matter in an executive session.”

did not, in any way, mention the Sabah claim, much less hint at any offer to downgrade Manila’s claim.

Following the publication of the controversial story, Malaysian Foreign Minister Datuk Seri Anifah Aman said Kuala Lumpur “has not, and does not, acknowledge the Philippines’s claim on Sabah.”

Asked for reaction to Anifah’s comment, Jose said: “Historical records that entitle our claim to Sabah and we are still pursuing this claim.”

“While they dismiss our claim, at the same time, they are paying rent to the Sultan of Sulu,” Jose added.

Kiram was the acknowledged leader of the Sultanate of Sulu

and North Borneo.

The sultanate that is based in Mindanao once controlled North Borneo, which is now known as Sabah. It acquired Sabah as a reward for helping the Sultan of Brunei Darussalam defeat a rebellion.

According to the sultanate, it did not relinquish its sovereignty over Sabah and only leased the territory to the British North Borneo Co. starting in 1878.

Up to now, the heirs of the sultanate receive rental for Sabah from the Malaysian government currently equivalent to P70,000 a year.

According to Kiram, the rent they receive only proves that the sultanate owns Sabah.

Former Philippine Permanent Representative to the UN Lauro Baja Jr. said the Philippine claim to Sabah will be “prejudiced” if Malaysia accedes to the DFA’s request.

However, Baja said that economically, the timber and mineral-rich Sabah is much more valuable than Spratlys, and the Philippines position on the Sabah claim was stronger than its claim on the Spratlys.

THE country’s largest power-distribution utility and the grid operator separately said on Wednesday that they are well prepared to respond to the challenges that may result from Chedeng.

Manila Electric Co. (Meralco) is on alert and is gearing all its efforts to prepare its systems and personnel.

“As a 24-hour service company, we are committed to respond to these types of emergency. Our crews are on standby to attend to any trouble that may affect our facilities in areas that might be hit by the typhoon,” Meralco Senior Vice President and Head for Customer Retail Services and Corporate Communications Alfredo S. Panlilio said.

Panlilio added that Meralco has put in place necessary measures to mitigate the possible impact of the typhoon. The company, for example, has issued advisories on the appropriate precautionary measures to take before a typhoon.

“Meralco, for instance, has consistently requested billboard owners and operators to temporarily roll their billboards up to prevent these structures from being toppled by the strong winds,” Panlilio said.

Billboards that fall into electrical facilities are among the main reasons for power outages whenever there are strong typhoons.

Meanwhile, the National Grid

Corp. of the Philippines (NGCP) has started implementing the necessary preparations and precautions to minimize the impact of Chedeng on power-transmission operations and facilities.

The power-grid operator and transmission service provider will activate on April 2 its North and South Luzon Regional Command Centers and District Command Centers.

Unicef gears for Chedeng

THE United Nations Children’s Fund (Unicef) is ready to support the government with prepositioned emergency supplies from its local warehouses in Manila, Tacloban and Cotabato once Chedeng hits the country.

“In times of disasters, children face the risk of disease outbreaks, malnutrition, violence and disrupted education. Our priority is to ensure that children and their rights and welfare are protected before, during and after disasters,” Lotta Sylwander, Unicef Philippines representative, said.

Unicef has prepositioned essential supplies that include water kits, hygiene kits, water-purification units, school tents, student and teacher materials, child-friendly space tents, medical supplies, nutritional therapeutic food items to combat malnutrition, oral rehydration salts, tarpaulins and generators for at least 10,000 families.

The UN organ has staff members on standby in Manila, Tacloban and Cotabato City ready to be deployed in rapid assessments as soon as it is safe to travel.

With Rene Acosta and Lenie Lectura

NPA rebel killed, cop wounded in ambush

By Rene Acosta

A

NEW People’s Army (NPA) guerrilla was killed on Tuesday in Camarines Sur in the first attack against government forces to be perpetrated by communist three days after they celebrated their 46th founding anniversary.

A policeman and another rebel were also wounded during the ambush, which was perpetrated by four rebels, according to Sr. Insp. Maria Luisa Calubaquib, spokesman for the Bicol regional police.

Calubaquib identified the wounded policeman as Police Officer 2 Christian DJ Vibares, of the Tigaon, Camarines Sur, police force.

Vibares was on his way to report to the police station for his duty, when the four gunmen fired at him at Barangay New Moriones, Ocampo, Camarines Sur, at around 7:50 p.m. on Tuesday.

Although wounded, the policeman managed to return fire before he managed to call for reinforcement from the nearby Ocampo police station.

Calubaquib said members of the Ocampo police rescued Vibares and

took him to the nearest hospital.

During the exchange of gunfire, Vibares, however, killed one of his attackers and wounded another.

The rebel casualties have not been identified. Calubaquib said two M-16 rifles were also recovered from the rebels. The ambush of Vibares was the first attack to be carried out by the NPA since it celebrated its anniversary on Sunday.

Earlier, Brig. Gen. Joselito Kakilala, Armed Forces spokesman, said that the rebels are already marginalized and are no longer capable of carrying out attacks against bigger targets. Kakilala said this is the reason the guerrillas have resorted to “hit-and-run” tactics and pick on smaller targets like policemen or soldiers moving alone or in twos.

Kakilala said the demise of the communist movement was being brought by the construction of development projects in places where they are operating or used to operate.

He said the military is hoping to reduce the communist rebel movement into an “inconsequential force” at the end of President Aquino’s term next year.

briefs espina leads lenten retreat

DEPUTY Director General Leonardo Espina, National Police officer in charge, led on Wednesday the force’s Lenten retreat and called on the 150,000 policemen to reflect on their individual roles as public servants and law enforcers in pursuing the changemanagement agenda of the agency.

“In this season of Lent and sacrifice, let us take the time to renew our faith in God and renew our commitment to ourselves and the Filipino people; and in reforming our organization,” Espina said.

Espina particularly urged policemen to internalize and pledge individual commitment and support for the Peace and Order Agenda for Transformation and upholding the Rule of Law (Patrol Plan 2030), the force’s strategic blueprint for raising the standards of governance at the national level.

Espina expressed optimism that “nothing can get in the way of the National Police’s desire to introduce change and completely reform the organization in all aspects of administration, operations and individual performance.” Rene Acosta

b.i.f.f. attacks army troopers’ ambulance

CAMP SIONGCO, Maguindanao— The Army’s Sixth Infantry “Kampilan” Division (6ID) on Tuesday condemned the ambush and killing of a military ambulance driver by suspected Bangsamoro Islamic Freedom Fighters (BIFF) in Maguindanao on Sunday.

Maj. Gen. Edmundo R. Pangilinan, 6ID commander, said the fatality was transporting wounded infantrymen from the Army-BIFF encounter in Shariff Saydona to the Maguidanao provincial hospital when ambushed in Barangay Elian, Datu Saudi Ampatuan, Maguindanao.

“It only shows that these bandits do not observe and respect the international humanitarian law,” he said.

A band of BIFF gunmen fired at the ambulance transporting wounded soldiers. The medical team was able to fire back at the bandits while bringing the wounded soldiers to a safer area. PNA

quakes jolt surigao sur, zambales TWO moderate earthquakes rocked Surigao del Sur and Zambales on Wednesday morning, the Philippine Institute of Volcanology and Seismology (Phivolcs) reported.

In a bulletin, Phivolcs said that the first quake with magnitude 3.3 occurred at 1:12 a.m., with its epicenter traced 119 kilometers southwest of Palauig town in Zambales.

The tremblor, which was tectonic in origin, has a shallow depth of 33 kilometers.

The second quake happened around 2:22 a.m., with a magnitude 3.5 jolted Surigao del Sur. Its epicenter was located northwest of Bislig, about 55 km and tremor had a depth of 9 km.

The agency said that Intensity 1 was felt in Bislig town. PNA

Shoe on other foot, Mangudadatu accused of persecution T

By Joel R. San Juan

HE elected mayor of Datu Unsay, Maguindanao, has accused Gov. Esmael Mangudadatu of fabricating charges to silence his political rivals and persecute “innocent” members of the Ampatuan clan.

In a letter to Justice Secretary Leila de Lima, Datu Unsay Mayor Bai Reshal Ampatuan, one of the 50 new respondents in the second batch of case filed before the Department of Justice (DOJ) in connection with the 2009 Ampatuan Massacre, said Mangudadatu is

using the crime as a leverage to persecute his political enemies.

Bai Reshal claimed that most of the 50 new suspects in the 2009 massacre were political rivals of Mangudadatu.

Bai Reshal, the first wife of Datu Andal Ampatuan Jr., also asked de Lima to look into the abuses being committed by Mangudadatu and his allies in the province.

“I am asking for your [de Lima] help because I feel that your department is being used by Governor Mangudadatu for his own vested interest,” she said in her letter to the DOJ chief.

“Since we had been duly elected by the constituents, Gov. Toto [Mangudadatu] has resorted to using his power to unseat all those who opposed him so that he could replace them with his own trusted men,” she added.

While Bai Reshal said she commiserates with Mangudadatu for the loss of some of his family members in the November 2009 massacre, she said “he should not use the tragedy as a license to commit abuses and persecute all those whom he thinks are against him.”

In her letter to de Lima, Bai Reshal recounted how Mangudadatu alleg-

edly used his power to intimidate and harass his political enemies.

She claimed that the governor ordered a certain Kagui Akmad Baganian Ampatuan to burn the house of her husband, Andal Jr., in June 28, 2014.

It can be recalled that Akmad is being considered as one of the principal witnesses against the new batch of suspects in the massacre and has been placed by de Lima under the Witness Protection Program.

Bai Reshal said they learned that Mangudadatu allegedly was responsible for the burning of their house from one of the suspects, who

confessed those who were behind in the arson.

The case, she said, was already in the Regional Trial Court in Cotabato City.

As part of the alleged intimidation against their family, the incumbent mayor claimed that Mangudadatu had trumped-up charges against their remaining relatives, citing the case of Shariff Aguak, Maguindanao, Mayor Zahara Ampatuan, whom she said was wrongly linked to the death of a man in Shariff Aguak.

“Zahara, who is a woman and a mother, was forced to hide from authorities despite her ailments, not

because she was guilty of the allegations against her, but due to the fact that she fear of going to jail despite her innocence,” Bai Reshal said.

After Zahara was charged with murder, Bai Reshal said Mangudadatu then linked her and her vice mayor and niece, Bai Janine Julhaya Mamalapat, to the killing of her uncle, Abdullah K. Ampatuan, in July 2013 by a certain Kaharudin Saudagal.

“The filing of cases against the members of the opposition in Maguindanao is very suspicious, especially that 2016 elections is just around the corner. Clearly, all of this is politically motivated,” Bai Reshal said.

News

A4 Thursday-Friday, April 2-3, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

IC imposes tighter criteria on appointing foreign insurers’ agents

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By David Cagahastian

HE Insurance Commission is imposing stricter requirements on the appointment of resident agents of unauthorized foreign insurers to ensure that legal processes may be brought against these foreign insurers in connection with their transactions with local insurance companies.

Insurance Commissioner Emmanuel F. Dooc has issued Circular Letter 2015-2016, prescribing the rules and processes in the appointment of resident agents of unauthorized foreign insurers, reinsurers or brokers with whom local insurance companies transact with, mainly through reinsurance contracts.

Under current jurisprudence, unauthorized corporations that have transacted business in the Philippines can bring suit to assert a claim against persons they transact with, despite an express prohibition in the Corporation Code that prevents foreign corporations from transacting business in the Philippines without a license from maintaining a suit here.

Dooc’s new circular ensures the appointment of a resident agent by such unauthorized foreign insurance companies to ensure that domestic insurance companies that have

transacted business with these foreign insurers can sue back, and that Philippine courts can easily acquire jurisdiction over the foreign insurers through their resident agents here.

The appointment of resident agents is mandated by Section 223 of the amended Insurance Code, which provides that, “No insurance company doing business in the Philippines shall cede all or part of any risks situated in the Philippines by way of reinsurance directly to any foreign insurer not authorized to do business in the Philippines, unless such foreign insurer or, if the services of a nonresident broker are utilized, such nonresident broker is represented in the Philippines by a resident agent duly registered with the commissioner as required in this code.”

The provisions on the appointment of a resident agent of unau-

thorized foreign insurance companies are meant to ensure that legal processes could be brought against these foreign corporations should disputes arise out of their transactions with domestic insurance companies.

The circular letter provides the requirements for the application and renewal of certificates of registration to act as resident agents of unauthorized foreign insurance companies. These requirements include capitalization requirements for the principal, and proof of authorization and financial capacity of the resident agent.

“In order to ensure the financial capacity of the [unauthorized foreign insurers], they must [a] meet the capitalization requirements equivalent to what is required of their domestic counterparts, or [b] must have a minimum financial strength rating duly certified by any of the following rating organizations: A.M. Best [‘A’- rating]; Fitch [‘AA’ rating]; Moody’s [‘Aa’ rating]; Standard and Poor’s [‘AA’ rating],” the circular said regarding the required capitalization of the unauthorized foreign insurer.

The resident agent must also submit the audited financial statements for the last three years of the unauthorized foreign insurer.

As to the resident agent, the requirements include a copy of the power of attorney authorizing the applicant to receive notices, summons and legal processes for and in behalf of the foreign insurer in connection with the actions or legal proceedings in the Philippines against such foreign insurer, such power of attorney duly notarized and authenticated by the Philippine consul in the place where the foreign insurer is domiciled; and the income-tax return of the resident agent.

Prime Meridian seeks ERC okay for $6.7-M Batangas natural-gas power facility

P

By Lenie Lectura

RIME Meridian Powergen Corp. (PMPC), a subsidiary of First Gen Corp. of the Lopez group, has sought approval from the Energy Regulatory Commission (ERC) to develop a $6.7-million pointto-point transmission facility for its 100 -megawatt (MW ) Avion natural-gas power plant in Batangas.

The facility will connect the Avion power plant and the 434MW San Gabriel power projects to the transmission system of the National Grid Corp. of the Philippines via the existing Santa Rita switchyard. “ The application filed by PMPC for the authority to develop, own and operate a dedicated

point-to-point limited facility to connect to the existing switchyard of the Santa Rita power plant, is hereby approved,” the ERC said in its 27-page decision.

The commission said PMPC is financially capable of funding the project as development and construction of the facility will be funded by 100-percent equity of First Gen. Without the transmission facility, PMPC said the Avion plant may become idle and its capacity put to waste. More important, the projected power demand of the country will not be met.

“The Department of Energy [DOE] projects that an additional capacity of 500 MW will be needed by 2016.

“This projection assumes that the committed plants for 2014

and 2015 are timely completed.

Otherwise, additional capacity will be needed,” PMPC said.

For the Luzon grid, the DOE projected the energy demand to increase at an average annual growth rate of 4.13 percent, from 7,969 MW in 2012 to 10,693 MW in 2020 and will increase further to 16,477 MW in 2030.

First Gen has a portfolio of 15 power-generation plants with a combined capacity of 2,763 MW. PMPC will benefit from the vast experience of its parent company in its development, construction, operation and maintenance of the plant that will be connected to the existing switchyard of Santa Rita.

T he Av ion power facilit y is expected to be completed this year.

ICTSI unit services biggest vessel to dock in Croatia

By Lorenz S. Marasigan

A

N offshore subsidiary of locally listed International Container Terminal Services Inc. (ICTSI) has serviced the largest vessel to call at the Port of Rijeka in Croatia, the port operator said in a statement.

In a media release on Tuesday, the Razon-led firm said its subsidiary Adriatic Gate Container Terminal (AGCT) recently welcomed the Gerda Maersk, which has a 10,000-twenty-foot-equivalentunit (TEU) capacity, at the Croatian port.

“I am very proud to be here today, having the honor to welcome the largest vessel not just in the history of Adriatic Gate Container Terminal, but in the whole Port of Rijeka. This event will certainly be long remembered in the development of Rijeka, not just as a port but also as s gateway,” AGCT Chief Executive Alessandro Becce said in the e-mailed statement.

The 367-meter Gerda Maersk, is part of the 2M Alliance by two of the world’s megaliners: Maersk and Mediterranean Shipping Co. The alliance, which connects Rijeka and the Far East, deploys 15 vessels with average capacities of 9,600 TEUs to 11,300 TEUs. The service starts from the US West Coast and passes through the Pacific, making regular port calls in Busan, South Korea and key ports in the Far East, Middle East and the Adriatic: Shanghai, Hong Kong, Chiwan, Singapore, Port Said, Koper, Trieste, Rijeka, Tanjung Pelepas, Vung Tao, Yantian and Ningbo.

The service includes calls to three north Adriatic ports Koper, Trieste and Rijeka once a week— with Rijeka as the destination on Thursdays, opening up opportunities to attract additional cargo from Central and Southeast Europe.

The previous record was held by CMA CGM’s Cendrillon, an 8,500TEU megaboxship which made its maiden call at Berth 2 of the AGCT in May 2014.

ICTSI is the largest port operator in the Philippines, which has operations in more than 20 countries across the Asia Pacific, the US, Europe, Middle East and Africa.

News

BusinessMirror

A5

Editor: Vittorio V. Vitug Thursday-Friday, April 2-3, 2015

Evap widens search for investors to rev up local e-vehicle program

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By Catherine N. Pillas

he Electric Vehicle Association of the Philippines (Evap) is in search of investor-partners for the wider use of electric cars as the group continues its push for more funding in the electric vehicle (EV) program.

“We need funders, financing people or angel investors to come in and tie up with credible and reliable EV players to finally catapult the EV industry into the mainstream and achieve economies of scale,” Evap President Rommel T. Juan said in a news statement.

Juan said that with the proliferation of pollutant-emitting public transportation vehicles, environment-friendly “green” vehicles will be a welcome change.

The Evap head, likewise, encouraged interested investors to consult with Evap for prospective supplier-partners.

Evap is keeping a keen eye on multinational companies with a green corporate social-responsibility agenda as possible partners.

“We recommend hooking up with experienced public transport operators such as EVEE-I or MServ,” Juan said.

EVEE-I operates the Filinvest 360 Ecoloop at Filinvest City Alabang, while MServ runs the Ateneo e-jeeps.

Juan said EV operations are viable to long-term investors as it has a return on investment of 24 percent, or a period of about four years.

Evap members are accredited in the Manufacturers, Assemblers, Importers and Distributors program of the Land Transportation Office, which is needed to secure permits and license plates for locally assembled EVs.

Jica extends P50- million quick impact projects for Bangsamoro communities

By Cai U. Ordinario

T

he Japanese government is undertaking P50 million worth of quick-impact projects (QIPs) in Mindanao to support the peace process and promote inclusive growth in the region.

The Japan International Cooperation Agency (Jica), which is the one undertaking the projects, said the 20 QIPs include multipurpose halls, warehouses with solar dryers and school buildings to be constructed in Bangsamoro communities.

The communities that will benefit from these projects include conflict-affected areas like Maguindanao, Cotabato, Lanao del Sur, Lanao del Norte, Basilan, Sulu, Sarangani, Tawi-Tawi, Sultan Kudarat, Compostela Valley, Davao Oriental and Zamboanga Sibugay.

“Jica is a development partner of the Philippines for many decades. Our activities in Mindanao aim to ensure that the region’s future development is sustainable through transparent, participatory and inclusive implementation of cooperation projects,” Jica Philippines Chief Representative Noriaki Niwa said.

The Japanese development agency said the QIPs are part of Japan’s development assistance to Bangsamoro communities following the signing of the Comprehensive Agreement on the Bangsamoro (CAB) last year.

Jica President Akihiko Tanaka said the agency’s continuous support to Mindanao’s peace and development through QIPs was emphasized during his visit in Manila last year to witness the CAB signing.

The QIPs are deemed crucial cooperation activities to assist Bangsamoro communities realize the dividends of peace inclusively, and improve the quality of their lives.

Aside from QIPs, Jica is also assisting Mindanao with a P390-million-worth capacity-building project for the establishment of the Bangsamoro government.

Jica’s aid efforts in Mindanao peace and development began in 2002, through its assistance to the Autonomous Region in Muslim Mindanao (ARMM) Social Fund for Peace and Development. Some 707 community development-assistance projects and 32 infrastructure projects have since been implemented.

In 2006 Jica launched the Japan-Bangsamoro Initiatives for Reconstruction and Development program to further support Mindanao. Japan’s total official development assistance provided to the region has reached around P7.55 billion.

Years of conflict have disadvantaged thousands of people in Mindanao who are continuously mired in poverty and lack of economic opportunities, as well as affected Mindanao’s overall economy considered to be a pillar for connectivity in Southeast Asia.

Latest Philippine Statistics Authority Annual Poverty Indicators Survey showed the ARMM as among the poorest regions, with a 54-percent poverty-incidence rate.

A6 Thursday-Friday, April 2-3, 2015

Opinion BusinessMirror

editorial

Does God hate money?

N

O Holy Week message would ever be complete— in a business paper like ours, at least—if we fail to talk of how God views money.

If we go by what the Good Book says, it is apparent that the Bible has a lot to say about money, and how people should approach it. Yes, approach it. It is not something to be feared, nor is it a thing that God hates.

Quite the contrary, the writers of the Bible often depict God as “the giver of all good gifts” and the “provider” of all our needs.

No, money is not the root of all evil, as often attributed to the Bible, albeit erroneously. In 1 Timothy 6:10, it says that “the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.”

So, how does God view money? Of the hundreds of passages that speak of money in the Bible, here are a few we can consider: First, it is God who is the source of wealth. This must be clear from the beginning. As 1 Samuel 2:7 says, “The Lord sends poverty and wealth; He humbles and He exalts.”

Second, the best way to earn money is to be industrious. Proverbs 10:4 is clear: “Lazy hands make a man poor, but diligent hands bring wealth.”

If the choice boils down to having money or wisdom, the latter is a more handy and practical choice. As Ecclesiastes 7:12 says: “Wisdom is a shelter as money is a shelter, but the advantage of knowledge is this: that wisdom preserves the life of its possessor.”

It is also the nature of wealth to be tentative and indeterminate, highly unreliable. We have seen this in the stock-market crash of 1929 and succeeding economic flops in history. Thus, people should not put their hopes in wealth.

Money can be put to its proper use through the generosity of the rich. Saint Paul wrote to Timothy (1 Timothy 6:17-19): “Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. In this way, they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life.”

Last, though not the least, money gained in dishonest ways will not last.

It’s a spiritual principle that no one should ever forget. In Proverbs 13:11, “Dishonest money dwindles away, but he who gathers money little by little makes it grow.”

This Holy Week, it is imperative that people consider seriously where they place their treasures, for a man cannot serve God and money at the same time.

God will not allow a rival for the devotion He richly deserves. As we go about our business, let us always recall Matthew’s words: “For where your treasure is, there your heart will be also.”

Reduce taxes; reduce poverty John Mangun

OUTSIDE THE BOX

T

HE Holy Week holiday is always a good time to reflect on the good fortune that we have been given and achieved.

We are also admonished to help those that do not have the material possessions that make the quality of life more enjoyable.

It is good to share.

However the raging question is, how can economic growth be more inclusive, thereby raising the standard of living for all and not just a few as a nation’s economy grows.

There are those well-meaning souls that tell us that we who have more are the problem. If we did not have so much, then there would be more available for the poor. Therefore, it is the responsibility of the government to perform its “Robin Hood” duties to take from the rich and give to the poor through government programs.

Others firmly believe that the economic system of a free market inherently creates imbalances and wealth disparity. That is partially true. The idea that “the rich get richer and the poor get children” has some basis in reality. Money or capital can grow faster than the overall economic growth, which means that your excess funds can increase your wealth faster than your income through working can do.

If that is true, then the solution to poverty might have been to give every poor family a P50,000 stock market mutual-fund account in 2009 and seen the value triple or more. While a P500-billion one-time investment for the lowest on the economic ladder might seem a huge amount, it would have done wonders for helping bridge the “wealth disparity” gap.

But to the 12 million Filipino families in poverty and struggling to meet every day expenses, wealth disparity is the least of their current worries.

These people need more income and that is the immediate problem.

We tend to see the issue as highly complicated, wanting to address issues such as education and expanding the core of economic activity through increased manufacturing for example. But the long-term empirical evidence across the globe validates that a rising economic tide lifts all boats regardless of where that growth comes from. In other words, it matters more that the

economy has high growth than if that growth is from call centers or rubber-shoe factories.

In a 2001 paper titled “Growth Is Good for the Poor,” economists Art Kraay and David Dollar of the World Bank found that when average incomes rise, the average incomes of the poorest fifth of society rise proportionately. In 2013, more than a decade after their original paper, Kraay and Dollar explored the relationship between economic growth and poverty again, using data from 118 countries over four decades.

They came to the same conclusion.

Here is the key finding as reported by the Foundation for Economic Freedom: “This evidence confirms the central importance of economic growth for poverty reduction. Institutions and policies that promote economic growth in general, will, on average, raise incomes of the poor equiproportionally, thereby promoting ‘shared prosperity.’

There are almost no cases in which growth is significantly pro-poor or pro-rich. Economic growth, not transfer programs, is, in fact, the primary driver of poverty reduction, and this empirical truth has been proved for a long time.”

A rising tide lifts all boats.

In fact, the study concluded that regarding the factors of “primary educational attainment, public spending on health and education, labor productivity in agriculture relative to the rest of the economy, and for-

mal democratic institutions, we are unable to uncover any systematic evidence that they raise the share of income of the poorest in our large cross-country sample.”

In other words, the most important factor in alleviating poverty was overall economic growth.

If economic growth is the key to poverty alleviation, then what is the most important factor influencing economic growth? Taxes.

A study, “Tax Changes and Economic Growth” of 26 economies from 1965 to 2007 by the European Central Bank found that, “An increase in taxes on real gross domestic product [GDP] per capita is negative and persistent. An increase in the total tax rate [measured as the total tax ratio to GDP] by 1 percent of GDP has a long-run effect on real GDP per capita of negative 0.5 percent to negative 1 percent.”

Here is the reality based on 40 years of global studies and not some “feel-good” social or economic wishful thinking or ideology. Poor people see their incomes go higher when economic growth is stronger. Economic growth goes up when taxes go down.

Reduce taxes and you will reduce poverty. Good luck telling that to the politicians.

E-mail me at mangun@gmail.com.

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

A pilot’s lethal decision in the age of automation

By Peter Garrison Los Angeles Times/TNS

O

NE of the subtler ironies of the Germanwings accident—though the word “accident” may no longer be appropriate—is that the airplane involved used so-called fly-by-wire technology. The flight crew’s control inputs go not to the ailerons and elevators, but, instead, to a computer that decides how to execute the pilots’ commands. One of the functions of this technology, which is present in all new airliners, is to guard against faulty or ill-advised pilot actions.

But the pilot still has the last word. If he chooses, he can override the computers. It is one of the axioms of aviation, handed down over generations, that the pilot’s authority—presumably for the safety of the flight and its passengers—is absolute. He is a monarch, and the airplane is his kingdom.

And so, while computers can protect us against pilot error, they cannot defend us against pilot malice.

No algorithm, no existing technology, can stop a pilot bent on killing himself, with a plane full of people as collateral damage—as appears to have happened in the Alps.

We have now learned something about the complex locks and overrides in the armored doors that are supposed to separate a flight crew from a terrorist passenger. Some committee must have labored long and hard over the imagined actionmovie scenarios that would result in their destruction. But the task of designing those doors, after 9/11, was not a riddle about a chicken, a fox, a river and a raft, to which a sufficiently patient and logical person could arrive at a correct answer.

When passengers, flight attendants and pilots are all potential enemies, what combination of locks and protocols can possibly work?

Suicide by airplane is very rare. In most cases—all cases, that I know of, in private planes, which are the majority—the pilot is alone. In the last couple of decades, however, there have been five or six instances in which

a flight crew member deliberately crashed a plane full of passengers.

The strange stew of malice, despair and grandiosity that leads people to unite suicide with slaughter is hardly a specialty of airline pilots, however; we encounter it regularly in the news, in instances as disparate as the suicide bomber in the mosque and the distraught father who kills his children and then himself.

As airline engines, avionics and airframes become more and more reliable, pilots continue to be the cause of most accidents—although human error finds fewer opportunities in the increasingly automated skies. From shortly after takeoff to shortly before touchdown, airplanes fly themselves while pilots talk with controllers and one another and punch data into flight-management systems.

In dense fog, with suitably equipped airports and airplanes, completely blind landings are made. Oddly, it is the takeoff, arguably the simplest part of flying an airplane, that has, so far, eluded automation—more because of the resistance of pilots than

the difficulty of the task. Eventually even that may change. If cars can be made self-driving—as supposedly they can—then airplanes too could perhaps be freed of the last layer of unreliability: The crew.

But how would you feel, boarding a plane, if there were no one up front to fly it? Would you not rather see a human crew? Most people would. We cannot help feeling that the agility and resourcefulness of the human mind may some day be needed to save us from some unforeseeable mischance of flight. It’s happened before, and will surely happen again.

We overlook even egregious pilot errors—Colgan Air, Air France 447 and TransAsia are recent examples—in our faith that human beings are ultimately more reliable than machines. What makes the Germanwings accident so terrible to contemplate is that, if it turns out to be true that the first officer deliberately crashed the plane, it offends our sense of common humanity. We may forget mistakes, but we cannot forgive a betrayal.

opinion@businessmirror.com.ph

Opinion

This is our graduation

He has been raised

BusinessMirror

Msgr. Sabino A. Vengco Jr.

James Jimenez

spox

I

T’S that season again when the colorful tarpaulins of politicians bloom all over the metropolis. And as the days march steadily toward the elections of 2016, we can only expect things to get worse. After all, these tarps won’t just blow away and disappear over time. These eyesores stick around, long after they’ve worn out their welcome that, unless you’re a supporter, lasts only so long as it takes someone to realize what’s on the tarp.

For a lot of people, the outrage stems primarily from the belief that public money is being expended for something that clearly does not benefit the public. Others think it’s in poor taste—baduy—for public figures to be promoting themselves so brazenly.

For some, on the other hand, the objection arises from their refusal to be co-opted by politicians seeking to score brownie points with the public. Take this open letter, for instance, written by a college student apparently fed up with seeing tarps of local politicians extending their congratulations to the class of 2015.

Clearly writing from the heart, she evokes images of graduates and parents trooping to graduation venues, surrounded by pictures of politicians with plastered grins. She asks, in all the hustle and excitement of preparing for graduation day: “Do your greetings matter?”

“If anyone’s faces are to be displayed at graduation rites, they should be the faces of students who, like myself, devoted ourselves to our studies and are now receiving rightful recognition for our efforts.” More important, she adds, “the faces on those tarps should be those of our parents, who worked hard to get us through school. They’re the ones who should be held as heroes; they’re the ones who deserve the limelight, not you.”

“This is our graduation,” she writes. “Not your campaign period.”

She makes an excellent point; one that politicians would do well to heed.

I’m excerpting her letter here. It’s written in Filipino, using the idiom of the writer’s generation. I would have tried to render it all in English, but it would have lost too much in translation. Considering that she is also dreaming of working in the civil service—a worthy ambition for the youth—I am omitting her name, lest some benighted politician doesn’t respond well to being lectured by a young person. Personally, however, I think the College of St. Benilde is doing a great job with this one.

“Sa mga politikong halal o nangangarap mahalal, “Ang liham na ito ay para sa inyo.

Marso na kasi at, sigurado ako, ilang libong gaya ko na nagpupursigeng makatapos ng pag-aaral ang magmamartsa para tanggapin ang inaasam na diploma. Inaasahan ko na ang mabi-

gat na trapiko, ang hirap sa paghahanap ng espasyo para sa parking ng mga mapalad na may minamanehong kotse o ang agawan sa taxi ng mga nakapormang magsisipagtapos, ang haba ng pila ng mga magulang at mga estudyanteng sabik pumanhik ng entablado, ang mga talumpati ng mga piling estudyanteng umani ng iba’t-ibang parangal, mga magulang na umiiyak sa tuwa at mga magsisipagtapos na nasasabik at natatakot sa kung ano ang naghihintay sa kanila pagkatapos ng seremonya.

Iba’t-ibang eksena sa mga graduation venue na napaliligiran ng mga nakasasakit sa mata at nakadudumi sa paligid na mga tarpaulin ng pagbati kuno ng mga Photoshopped na imahe ninyo.

“Opo, kayo po.

“Kayong mga nasa kongreso hanggang sa kapit-bahay naming kagawad ng barangay, walang okasyon na nakalimot kayong isabit sa kung saan ang inyong mga ‘greetings.’ As if naman nakapagdudulot ng masayang pakiramdam ang bawat tarpaulin na isinasabit n’yo sa kanto. May ‘impact’ ba sa amin ang mga mensahe ng inyong pagbati sa mga nagkalat na tarpaulin? Hindi namin kailangan makita ang tikas at kakisigan o kagandahan ng inyong mukha kasama ang napaka palasak na mga kataga.

“Kung may dapat mang ipaskil na mga larawan sa mga lugar na pagdadausan ng aming pagtatapos, iyon ay ang litrato ng mga katulad kong naghirap sa pag-aaral at siyang pararangalan. Kung may dapat pang ipaskil bukod sa mga estudyanteng napagtagumpayan ang lahat ng hirap, ito ay ang larawan ng mga uliran at masisikap na mga magulang na nagpursigeng mapatapos kami sa aming pag-aaral. Sila ang dapat maging sikat sa panahong ito. Sila ang karapatdapat sa limelight at hindi kayo.

“At hindi naman kailangang kayo ang magpa-print ng mga ganitong tarpaulin para sa amin upang masingitan nyo lamang ng inyong pangalan at mukha.

Hindi dapat kayo nakiki-esksena sa mga mahalagang okasyon sa aming buhay.

Iwasan din maging ‘epal’ pag may time.

‘Wag maging ‘photobomber’.

“Graduation po namin ito, hindi po ninyo campaign period. This is our moment. This is our time. Hindi namin nais ipagamit ang okasyong ilang taon naming hinintay para lamang sa inyong pamumulitika.

“Tama na ang pagiging epal. Hindi po bawal ang magkaro’n ng kahihiyan.”

James Jimenez is the spokesman of the Commission on Elections.

Alálaong Bagá

T

he Lord is good: in His mercy His servant shall not die but live and proclaim the wonderful works of the Lord (Psalm 118:1-2, 16-17, 22-23). The women who came to the tomb of Jesus to anoint His body found instead a young man in white announcing that Jesus has been raised, and they were told to tell the others (Mark 16:1-7).

I shall not die but live THE responsorial psalm for the Easter Vigil is a song praising God’s power and victory. The worshipping community is being led to cry out in jubilation and thanksgiving because the Lord is good and merciful. Divine mercy (hesed) indicates God’s steadfast love for His covenant partner Israel. That is why the whole house of Israel is directly called upon to respond and repeat the refrain: “His mercy endures forever.” God’s chosen people have experienced divine mercy and have witnessed the power and the victory wrought by God’s hand.

The psalmist himself (the prayerleader or the servant-king) has personal experience of divine power and victory. Amid the perils and threats that assailed him, he knew and found out: “I shall not die, but live.” A final, powerful image captures the reversal of fortunes the person loved by God actually undergoes: rejected and persecuted by others, he is eventu-

ally vindicated and even exalted like the stone the builders rejected only to become the cornerstone holding everything together. Preserved from death, he now commits himself to proclaim and recount to all God’s marvelous deeds, for it is by the Lord that this wonder has been done.

He is not here

MARY Magdalene, Mary the mother of James and Joses, and Salome were among the women who looked on from a distance at the death of Jesus on the cross (Mark 14:40). They had ministered to Him in Galilee and had followed Him to Jerusalem. The first two woman-followers watched, in particular, where the body of Jesus was laid by Joseph of Arimathea (14:47). And now, the day after the Sabbath, Jesus having died and was buried the day before the Sabbath, the three women very early that first day of the week went to the tomb of Jesus bringing spices in order to

Bloomberg View

I

F any national leader can claim to have worked an economic miracle, it’s Singapore’s Lee Kuan Yew. During his time as prime minister, from 1959 to 1990, the gross domestic product of this tiny country grew more than tenfold—from $8 billion (in 2010 inflationadjusted dollars) to $98 billion. Today the number is pushing $400 billion. When Lee took office, Singapore was poor; in 2015, it’s one of the richest countries in the world.

Lee was indisputably the architect of this astonishing transformation. He was also, it so happens, learned and brilliant, and an articulate spokesman for what he saw as a distinctively non-Western path of economic development. Deng Xiaoping admired him and sought his advice. It isn’t outlandish to say that Lee deserves some credit for China’s equally startling economic expansion starting in the 1970s—a transformation that will

reshape the world.

Westerners think that prosperity and liberty go hand in hand. Lee and Deng believed that order, more than liberty, is the handmaiden of growth.

Their successors, and leaders elsewhere who’d like to emulate them, agree. Lee thought a competent meritocratic government should have the paramount role, not just in providing order but also in guiding economic development. The success of “Asian capitalism” seems to prove him correct.

Is this right? Well, bad government certainly isn’t good for growth, in Asia or anywhere else. The question is how you avoid it. One can be in awe of what Lee achieved in Singapore without believing that Asia’s answer to that question must be different from the West’s—or that there are two different capitalisms, each best suited to regionally distinctive values and culture.

Start with that second proposition, that there’s such a thing as Asian capitalism. In fact, East Asia’s miracle econo-

anoint Him. They came to anoint His dead body; clearly, they had as yet no faith in His resurrection. Their anointing was intended to merely soften the stench of decomposition.

The women knew Jesus was dead, and they expected his body would be undisturbed. The only problem they anticipated was how to move the stone that has been rolled against the entrance to the tomb. They thought the tomb would be sealed and, therefore, would not be a walk-in for them.

To their surprise, they found the stone at the entrance of the tomb already rolled back, and they just walked in. Their surprise turned to amazement when they entered the tomb and found no dead Jesus. Before them, instead, was a young man robed in white, presumably an angel, who responded to their amazement as they were overwhelmed by this supernatural experience: Jesus of Nazareth, the crucified, whom they seek, is not here. “He has been raised.”

Go and tell His disciples

THE words of the heavenly figure are both proclamation and commission: Jesus who was crucified has been raised by God from the dead, and the three women who first learned of this tremendous turn of events must tell the same to Jesus’ other followers. The young man dressed in white first confirms that it was, indeed, Jesus of Nazareth, who was crucified and who died, who was buried in that tomb. This Jesus is no longer there because God has raised Him from the dead. (The aorist

Japan’s newest export: Deflation William Pesek

BLOOMBERG VIEW

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N 2006, seven years before he became Bank of Japan governor, a testy Haruhiko Kuroda told me he thought China was raising its own living standards at the expense of its Asian neighbors.

“The relationship between exchange rates and poverty reduction is not so direct, but a more flexible Chinese exchange rate would benefit Asia,” Kuroda, who at the time was head of the Asian Development Bank, told me in his office overlooking the Manila skyline. “It would make a difference.”

Today, those remarks demand to be read with a sense of irony. As Japan’s leading central banker for the past two years, Kuroda has relentlessly weakened the yen, which means he is now responsible for precisely the same regional dynamic he once lamented.

None of this is to suggest Kuroda is up to anything sinister. His mandate, after all, is to produce 2-percent inflation for Japan, and thus pull its $4.9-trillion economy out of a two-decade deflationary spiral.

But it’s impossible to deny that the yen’s weak exchange rate is indirectly exporting deflation to the region.

Taiwan’s export-dependent economy is feeling the strain, and Singapore might be next. But South Korea has been hit particularly hard. The country’s 4.7-percent plunge in industrial output in February is the latest sign that deflation is on its doorstep. The country’s consumer prices also rose by only 0.5 percent last month (the slowest pace since 1999), and its exports were down 3.4 percent.

Korean manufacturers have responded to the yen’s 20-percent drop in value by trying to keep the prices of their own products down.

In practice, that’s meant executives with excess cash on their balance sheets have avoided making investments or giving workers a raise. The resulting wage suppression, however,

Lee Kuan Yew and the myth of Asian capitalism

By Clive Crook

Thursday-Friday, April 2-3, 2015

mies achieved rapid growth in different ways. For instance, in its years of fastest growth, Hong Kong’s approach was close to laissez-faire; South Korea relied heavily on state-directed investment; Taiwan and Singapore were somewhere in between. Across the region, the role of industrial policy, state-owned enterprises, business alliances and inward foreign investment all varied from country to country, and still do. The same goes for legal codes and political systems.

American capitalism is different from German capitalism, and China’s is different from Singapore’s. It’s easy to exaggerate the family resemblances.

The main thing East Asian economies had in common was reliance on export-led growth. Ways of promoting trade differed from case to case, but the goal was to succeed in global markets.

Some countries relied more heavily on import barriers and state-directed investment, but success in export markets guided their interventions. This forced their producers to compete with more

efficient producers, made their policies more transparent and helped guard against persisting with planning that didn’t work.

If Asian capitalism means anything, it’s “embrace globalization.” Lee’s Singapore embodied that principle to the maximum. In their zeal to succeed in global markets, East Asia’s most successful economies certainly differed from many other poor nations, which turned inward—but not from the rich West. The West was already global.

Put the debate about economic policy, and the respective roles of state and market, to one side. Lee’s critics would argue that he stood for the simpler proposition that authoritarianism works, and that this is why China’s leaders, especially, look at Singapore with admiration and interest. Singapore is a democracy, but not a liberal one. The government is paternalistic and stern. The ruling People’s Action Party, led by Lee’s son, Lee Hsien Loong, is clean, competent and undeniably popular—but intolerant of critics

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passive verb form “He has been raised” means divine action and power in the New Testament Greek.)

The women themselves could see that the place does not have the body of Jesus anymore. They who came to attend to the dead have become the first witnesses to God’s power over death. And they were tasked to be the first heralds of the resurrection.

They were to tell the others, especially Peter, to go to Galilee and there they would all see Jesus himself. “As he told you, he is going before you to Galilee”—the reference is to the promise of Jesus made during the last supper (Mark 14:28) that though, like sheep dispersed when the shepherd was struck, the disciples waivered in their faith and abandoned Him, after His resurrection He would gather them again in Galilee where He first called them (Mark 1:14-20).

Alálaong bagá, death is not the last word in the story of Jesus. It is the power of God revealed in His resurrection from the dead. The event of His passion, death and burial may be bewildering, but the mercy of God is clearly manifest and endures forever.

The Son of God through His death and resurrection carried out God’s plan for our salvation. His victory over death, which is the victory over sin of all who follow Him, is God’s marvelous deed.

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.

is having negative consequences of its own, by hampering domestic consumption. (It doesn’t help that Korean households are sitting on record debt, equivalent to about 70 percent of gross domestic product.)

Take Samsung Electronics, Korea’s biggest and most important family-owned conglomerate, or chaebol. Last month it decided to freeze the salaries of all workers in Korea for the first time in six years amid weak sales and plunging earnings.

The company didn’t tie the move to the yen. But for economists like Ronald Man of HSBC in Hong Kong, it’s pretty clear what’s going wrong in corporate Korea at the moment.

“Monetary easing in Japan may not push its neighbors into outright deflation just yet, but deflationary pressures are certainly rising,” Man explains. He added that “a number of companies, including the chaebol, have decided to freeze wages entirely.

The key implication is that even if inflation remains at a multiyear low, real wages will still contract. This hurts private consumption.”

The last thing Korea should do is read too much into its recent announcement of a healthy 2.7-percent growth rate. As long as the two biggest economies in the region—China (which is struggling to meet its 7-percent growth target) and Japan (which

saw a 3.4-percent drop in industrial production in February)—are in a malaise, the region’s economic situation will be fragile. It may only be a matter of time until Kuroda drops the yen’s exchange rate even farther.

Containing the fallout will require a united front in Seoul. The first step would be for the Bank of Korea to push for lower short-term interest rates, something it had been reluctant to do. On March 12 central bank Governor Lee Ju-yeol finally faced reality and cut the benchmark interest rate to 1.75 percent. But the bond market suggests Korea should drop its rate by another 25 to 50 basis points. Lee should get over his fears of high household debt and commit to monetary stimulus.

President Park Geun-hye should also quickly craft a supplementary budget to boost demand, while also accelerating her efforts to build a more “creative economy”—a start-up boom would lift the country’s productivity and its wages. She should also implement her plan to tax excessive cash hoards that companies like Samsung could use to fatten paychecks.

If Kuroda’s experience can teach Korea anything, it’s that deflation is the most stubborn of all policy challenges. Seoul needs to do all it can to avoid that fate—for its own sake, and the region’s.

and seemingly immovable.

The idea that “Asian values” incline people of the region to a preference for authority over liberty is implausible.

There’s no need to invoke any such innate cultural preference. Experience of disorder, especially violent disorder, is what inclines people that way, regardless of where they’re from.

Culture, on the other hand, is malleable, as Lee himself often observed.

He was, among other things, a shaper of culture. (One example: English is the main language of instruction in Singapore’s schools. Singaporeans are expected to master the language of global communication and technology, and the country’s other official tongues, Malay, Mandarin and Tamil, are taught as second languages.)

Liberal Western politics can be turbulent. It involves fruitless politicking, too-frequent changes of government, populist incompetence and excessive attention to the short term. But these are side effects of the checks and bal-

ances that keep politicians accountable.

In an imperfect world, full of imperfect leaders, effective opposition isn’t unpatriotic; it’s indispensable.

Lee was right that Western democracy is flawed, and that an enlightened and meritocratic authoritarian can govern well: The first is self-evident and he proved the second. But a system of government cannot be good if it stakes everything on the emergence, somehow, of a uniquely gifted individual, or on the possibility that an excellent leader will continue to be excellent. Just as companies must be forced to test themselves against others and compete, so must political leaders and political parties.

For every Lee, there’s a crowd of cynical, incompetent or exhausted candidates for high office. Constitutions must be designed for the world as it is.

It’s odd that Lee failed to see this. He often said he was a pragmatist, interested only in what works. The constitutional pragmatist, Asian or otherwise, chooses the turbulence of liberal democracy.

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Thai deputy PM sets two-day visit to PHL

By Recto Mercene

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hai Deputy Prime Minister Gen. Tanasak Patimapragorn will undertake a two-day official visit to the Philippines starting on April 6 to discuss pressing economic and security issues in the region with his counterparts here.

Included in the itinerary of Patimapragorn, also the foreign minister of Thailand, is a meeting with Foreign Secretary Albert F. del Rosario. They will discuss ways to further the Manila-Bangkok bilateral relations, according to Charles Jose, spokesman of the Department of Foreign Affairs.

“The two ministers will also discuss issues of mutual concern in

the fields of economy, trade and investments, agriculture, education, defense, technical cooperation, as well as relevant developments in the region,” Jose said.

Patimapragorn served as the Supreme Commander of the Royal Thai Armed Forces.He was appointed minister of foreign affairs in September 2014. This is his first visit to the Philippines as deputy prime minister and foreign minister.

Thailand is one of the Philippines’s long-standing friends and closest partners in the region, with engagement and cooperation in various areas spanning 67 years. Formal bilateral relations between the Philippines and Thailand were established with the signing of the Treaty of Friendship on June 14, 1949.

NSRP blueprint ready by Oct

By Lorenz S. Marasigan

T

HE master plan for the multibillion-peso mass-transit system that will connect the northern and southern provinces of Luzon would be finalized by October.

Prime Orion Philippines Inc., the company behind the Tutuban Center in Divisoria, Manila, said in a statement that the Department of Transportation and Communica-

tions, the Philippine National Railways (PNR) and Tutuban Properties Inc. have signed a memorandum of understanding on April 1 that calls for the cooperation of all the parties involved in finalizing and completing the plans for the P287-billion NorthSouth Rail Project (NSRP).

Essentially, the project aims to revive the Bicol line of the PNR, while improving its decades-old facilities See “NSRP,” A2

www.businessmirror.com.ph

Investors await Manila’s sukuk benchmark issue

S

By Bianca Cuaresma

INGAPORE—Sukuk bond investors see good prospects for the specialized capital market in the Philippines, but would rather wait for a benchmark issue before embarking on such issuances in the country, regional banking giant Maybank said.

At the sidelines of Maybank’s Invest Asean conference in Singapore, Maybank Kim Eng Group CEO John Chong said the Philippines can tap into the unused potential of the sukuk market in the country for its

funding needs.

“I think there is opportunity for the Philippines…so, I think, No. 1, is you need to create a benchmark issue to capture it and subsequently I think the sukuk market can be de-

veloped onshore in the Philippines, but you have to start off by creating a benchmark,” Chong told members of the Philippine media at the conference.

Sukuks are the Islamic equivalent of the conventional global bonds that comply with sharia, or the Islamic law. A benchmark issuance, meanwhile, is a bond that will provide a standard measure of performance against other bonds. Governmentissued bonds are usually used as the benchmark bond.

There have been pronouncements in 2014 from the National Treasurer on the issuance of the first sukuk bonds in the country to raise funds and attract Islamic investors. The plan, however, has not been pursued yet.

“I think there is great potential in Asean year by year. I think, in

other countries, they are creating the benchmark issues. So, I think, that is the first thing to do for the Philippines,” Chong said.

Aside from benchmark bonds, Chong also said tax issues must also be cleared before investors and banks can come in and invest or issue bonds in the country.

“Because sukuk is obviously a special-purpose vehicle, all these must be tax-neutral to the issuer or it doesn’t make sense for them to do it. Singapore and Malaysia are doing this already,” Chong said.

Regional banking giant Maybank is one of the largest global players in the sukuk arena, emerging in the top 3 in the global sukuk market among banks. It is, likewise, one of the banks with the top Islamic banking services globally.

China creating ‘great wall of sand’ in sea–US admiral. . . conform to the 2002 China-Asean Declaration of Conduct, in which the parties committed to “exercise self-restraint in the conduct of activities that would complicate or escalate disputes and affect peace and stability.”

“How China proceeds will be a key indictator of whether the region is heading toward confrontation or cooperation,” he said. The US says it has a national interest in the peaceful resolution of the disputes in a region

crucial for world trade. China says its territorial claims have a historical basis and objects to what it considers US meddling. Harris said the US is on track to reposition 60 percent of its navy to the Pacific Fleet by 2020.

Continued from A1

“By maintaining a capable and credible forward presence in the region, we’re able to improve our ability to maintain stability and security,” he said.

“If any crisis does break out, we’re better positioned to quickly respond.” AP

ASEAN SEEN FOLLOWING CHINA’S GROWTH PATH ON RISING SPENDING

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INGAPORE—The region may follow China’s robust growth pattern a decade ago, with the continuous rise in capital expenditure (capex) seen as the driver of economic growth in Southeast Asia, a research of a regional banking giant showed.

In the public briefing, following one of the plenaries in its annual Invest Asean conference in Singapore, Maybank said Asean is currently at a “capital inflection point,” which means that the capex of the region is on the rise as a portion of its gross domestic product (GDP).

The bank said if the region “gets it right”—through the elimination of several forms of trade barriers—the inflection point of capital expenditure will be the main driver of strong growth in Asean, similar to what happened to China starting in 2001, when the now economic powerhouse decided to enter the World Trade Orga-

nization. China has since become an important trade and economic giant in the world and has grown its GDP during the decade by about fourfold.

The potential growth of the capex in the region will also contrast with the now slowing capex of China, as it shifts to a more domestic-driven expansion in recent years.

This rise of capital investments is likely to be seen in countries in the region with low debt-to-GDP ratios, as underleveraged individual nations have more potential to grow their credit cycles to fund the demand for capex.

The Philippines is seen to be one of these countries to benefit from the demand of funds for capex, as it has one of the lowest debt-to-GDP ratios, indicating capacity to accelerate credit cycles.

In particular, Maybank said the country has the second to the lowest debt-to-GDP ratio in the region, fol-

lowed by Vietnam at third. Indonesia is the most underleveraged country in the region.

For infrastructure alone, Maybank cited data that the region needs approximately $7 trillion to fund the infrastructure needs of Asean countries between 2014 and 2030.

“Given strong urbanization and demographic trends, such spending will need to occur to prevent growth from being curtailed by infrastructure bottlenecks,” Maybank said, citing 2014 data from a research institute in 2014.

In the data, the Philippines has the second-highest need for infrastructure spending at $900 billion. This is followed by Thailand, at $800 million; and Malaysia, Singapore and Vietnam, at $700 million.

Indonesia has the largest infrastructure-spending need at $2.7 billion, according to data cited by Maybank in its conference. Bianca Cuaresma

CALVARY IN THE CITY Wooden crosses are being installed by residents of Zobel in Poblacion, Makati City, in preparation for their yearly Kalbaryo, or “mini-Calvary,” which aims to represent episodes of the suffering of Jesus Christ, ending in His crucifixion. The tableaus are works of faith with their elaborate designs and life-size antique religious images that serve as the main focus of attention. NONIE REYES