This Tuesday on The Millennials
Teens, technology and friendships For today’s teens, friendships can start digitally – 57% of teens have met a new friend online. Social media and online gameplay are the most common digital venues for meeting friends The number of friends teens % who have met in have met online person Refused
3%
1%
29%
43%
More than 5 friends
77%
No friends
The share of Americans for whom Twitter and Facebook serve as a source of news is continuing to rise.
Refused Have not met any online friend in person
22% 2-5 friends
6% 1 friend
20%
Source: Pew Research Center Graphic: Staff, Tribune News Service
three-time rotary club of manila journalism awardee 2006, 2010, 2012
U.N. Media Award 2008
Do you use Twitter or Facebook for news?
Have met an online friend in person
63%
who is the Filipino Millennial?
52%
63%
The % who have kept up with a news event as it was happening
47%
59% Facebook 31% 2013
2015
2013
2015
Source: Pew Research Center Graphic:Staff, tribune News Service
BusinessMirror
www.businessmirror.com.ph
A broader look at today’s business
n Sunday, August 9, 2015 Vol. 10 No. 304
P25.00 nationwide | 7 sections 32 pages | 7 days a week
Red tape snags MRT 3 rehab T
week ahead
By Lorenz S. Marasigan
HE little breather that passengers of the Metro Rail Transit (MRT) Line 3 need depends on whether the Government Procurement Policy Board (GPPB) approves the emergency auction for the multibillion-peso maintenance of the ailing train system.
Interest rates in US expected to rise
W
ASHINGTON—After another month of solid job increases in July and a heartening uptick in wages, something else is more likely to rise: interest rates. Job creation index at record high
Confidence in economy low
The percentage of U.S. workers who say their employers are hiring new people minus the percentage who say their employers are letting people go.
The weekly index made significant gains in the latter half of 2014, coincident with the decline in gas prices, and peaked in January at +5. Since then, scores have generally declined, with the latest figures representing the index's lowest since late October.
30
ECONOMIC DATA PREVIEW n Previous week: The local currency treaded near the 46 territory in the previous week, starting the trading week at 45.66 to a dollar. This was followed by a slight correction to hit 45.61 to a dollar on Tuesday. On Wednesday the peso hit 47.45 to a dollar, which further decelerated in value at 45.79 to a dollar on Thursday. This was the lowest value of the peso for the week. The peso then slightly recovered to 45.74 to a dollar at the close of the week’s trade on Friday. The total traded volume during the week was at $2.824 billion and posted an average of 45.709 to a dollar. n Week ahead: Bank of the Philippine Islands told its clients that the peso is likely to stay within the range, as markets search for market moving developments.
August 11 Tuesday
June Production Index Data
n May production index: The country’s manufacturing See “Outlook,” A2
This was revealed by Transportation Secretary Joseph Emilio A. Abaya, who said the Department of Transportation and Communications (DOTC) aims to deploy up to 20 trains along the railway line during peak hours. Currently, Abaya said, the train line operates with only 15 trains during rush hours. He said the GPPB Review Committee has approved the DOTC proposal to conduct an emergency-procurement process for the train line’s
three-year maintenance contract. However, the contract must still be reviewed by Cabinet officials who comprise the GPPB. “We have to go through the general review committee, which has unanimously recommended the approval of the emergency procurement, and the final GPPB, which is composed of undersecretaries and secretaries of different departments,” he said. Continued on A2
Monetary Board expected to maintain policy settings By Bianca Cuaresma
A
MID increasing policy space to ease current monetarypolicy settings owing to falling inflation, the Bangko Sentral is still seen to maintain all policy settings on hold in its scheduled meeting on Thursday. Local and international economists interviewed by the BusinessMirror showed that the experts still bet on an unchanged policy setting on August 13, when
PESO exchange rates n US 45.7820
the central bank’s Monetary Board (MB) will meet for the fifth time this year to discuss the moves—or the lack thereof—on the country’s monetary setting in the light of recent developments. Economists acknowledged that the BSP has room to cut rates, as inflation went down in recent months—most recently at 0.8 percent in July this year. They, however, said that the central bank is not likely to choose this path next week. “We argue that the BSP will stay on hold due to three reasons: uncertainty regarding the Fed rate See “Monetary Board,” A2
26%
32%
U.S. economic confidence index
20
2 0 -4 -8 -12
10 0 -10
’08
’09
’10
’11
’12
’13
’14
’15
Source: Gallup Graphic: Staff, Tribune News Service
-24
Aug. ’14 Oct. ’14 Dec. ’14 Feb. ’15
New data from the Labor Department on Friday pave the way for the Federal Reserve (the Fed) to raise its benchmark interest rate for the first time since 2006, economists said. “The job creation to date is sufficient to give them the green light,” said Chris Rupkey, chief financial economist at Union Bank in New York, who put odds at about 70 percent that the Fed raises the rate at its September meeting. The economy added 215,000 net new jobs last month, led by hiring from retailers and health-care providers. The unemployment rate held steady at a seven-year low of 5.3 percent. In a hopeful sign for consumers’ wallets, average hourly earnings increased by 5 cents to $24.99 after declining by a penny in June. “The evidence overall is clear that the labor market has improved dramatically in recent years,” said Andrew Chamberlain, chief economist at Glassdoor, an online job search and recruiting web site. Job creation was down from June’s upwardly revised figure of 231,000. The July figure was in line with analysts’ expectations and was the 15th time in the 17 months that the labor market expanded by more than 200,000 net new jobs. Such “a boring report can be a good jobs report,” because it shows the economy is back on track after the Great Recession, Chamberlain said.
-11
-16 -20
Apr. ’15 Jun. ’15
Source: Gallup Graphic: Staff, Tribune News service
However, advocates for workers said there still are too many unemployed Americans, and wage growth is too slow to warrant an interest-rate increase any time soon. Still, investors appeared worried that a rate hike, which would start to increase business borrowing costs, is coming after the Fed’s September meeting. The Dow Jones industrial average dropped 46.37 points, or 0.3 percent, to close at 17,373.38. The so-called federal funds rate has been near zero since late 2008, as central bank officials tried to stimulate economic growth during and after the Great Recession by making it cheaper to spend and borrow than save. The rate applies to short-term lending between banks but has become a benchmark for consumer and business loans. After their meeting last month, Fed policymakers said a rate hike would be appropriate when there was “some further improvement in the labor market.” Economists said Friday’s jobs report showed conditions were getting better. “A similar report for August...would likely be enough to ‘seal the deal’ See “Interest,” A2
n japan 0.3670 n UK 71.0445 n HK 5.9067 n CHINA 7.3726 n singapore 33.0914 n australia 33.6360 n EU 50.0351 n SAUDI arabia 12.2082 Source: BSP (7 August 2015)
NewsSunday BusinessMirror
A2 Sunday, August 9, 2015
Red tape snags MRT 3 rehab continued from A1
Hopefully, the GPPB Board will schedule their meeting this month, Abaya added. “Negotiations will start once we get the approval. It’s hard to start the talks without getting the the go signal from the GPPB,” he said. To recall, the government started procuring the three-year maintenance deal in September 2014. The auction, however, was ditched by prospective bidders, as they were spooked by the current condition of the train line. In order to entice investors, the government then sweetened the contract and increased its price. However, no one still wanted the P4.2-billion deal owing to the problems at the MRT. “Assuming that the GPPB Board approves the deal, we will have it tendered,” said Roman Buenafe, MRT general manager. Given the said time frame, the new maintenance provider will start its work by December. Currently, several companies are maintaining the train line. The subcontractors were engaged directly under a multidisciplinary approach to increase the efficiency of work per component until the long-term maintenance provider is procured. Abaya also reported that the prototype of the 48 train coaches of the MRT 3 will arrive between August 12 and 18. Once the 48 new train cars arrive, MRT 3’s trips per hour will increase from 20 to 24. This means that there will be 37,824 passengers who can avail themselves of the rail service every hour heading toward one
direction. Currently, only about 23,640 people ride an MRT service per way every hour. But that number still depends on how many trains are running that day. Today the rail line’s average daily ridership is already over 560,000, and its highest singleday passenger count is 620,000. Aside from adding new coaches to the current MRT fleet, the government is also rolling out P9.7 billion worth of projects to improve the train line. The state also wants to buy out the corporate owner of the line. But several private groups are proposing a different scheme to modernize the train system, which has been under fire for years now for its mediocre services. The group of businessman Robert John L. Sobrepeña is proposing to do a “quick fix” solution to make the train system safe for public transport. Together with foreign companies Sumitomo Corp. of Japan and Globalvia Infrastructuras of Spain, Metro Global Holdings Inc. is proposing to fix the ailing system through a $150-million investment that involves the procurement of a total of 96 new train cars, and the rehabilitation of the existing 73 coaches, thus increasing its capacity by fourfold to 1.2 million daily passengers. Under the proposal, a single point of responsibility will be implemented: meaning the rehabilitation and the maintenance of the line will be handled by a single company. Separately, Metro Pacific Investments Corp. is proposing to shoulder the upgrade costs of
the train system and release the government from the bondage of paying billions of pesos in equity rental payments. The group of businessman Manuel V. Pangilinan, which earlier entered into a partnership agreement with the corporate owner of the MRT, intends to spend $524 million to overhaul the line. The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. The multimillion-dollar expansion plan would double the capacity of the line to 700,000 passengers a day from the current 350,000 passengers daily. It was submitted in 2011, but then-Transportation Secretary Manuel A. Roxas II rejected the proposal. On the other hand, German companies Schunk Bahn -und Industrietechnik GmbH and HEAG Mobilo GmbH are seeking to place whole train system under a massive transformation program to augment its capacity and to provide a safe and comfortable travel to commuters from the northern and southern corridors of Metro Manila. The P4.64-billion proposal, submitted in February with Filipino partner Comm Builders and Technology Phils. Corp., calls for the complete overhaul of the 73 light-rail vehicles of the MRT, the replacement of the rails, the upgrading of the line’s ancillary system, the upgrade of the track circuit and signaling systems, the modernization of the conveyance system, and a three-year maintenance contract.
news@businessmirror.com.ph
Interest...
continued from A1
for a mid-September rate hike,” said Gus Faucher, senior economist at PNC Financial Services Group. Last month retailers added 36,000 net new jobs in July, health-care providers increased payrolls by 28,000, and positions in professional and technical services, such as architects and computer system designers, were up by 27,000. Manufacturers also posted a strong gain of 15,000 net new jobs, the best since January and nearly as many positions as were added in the five previous months combined. Still, many of the new jobs are in low-paying sectors and wages are growing slowly. They were up just 2.1 percent for the year ended July 31, although that is well above
the low inflation rate. In a small positive move, the length of the average workweek inched up for the first time in five months and matched the highest level since the end of the Great Recession. The Labor Department revised job growth in May and June upward by a combined 14,000 net new positions. That modest gain means the economy averaged 235,000 jobs a month created from May through July. The figure is down from a 246,000 average for the year ended July 31, but is still considered solid job growth. The unemployment rate remained at its lowest level since April 2008, in the early days of the Great Recession. TNS
Outlook...
continued from A1
output declined by 3.1 percent in May on the back of weak global demand and the prolonged dry spell, the Monthly Integrated Survey of Selected Industries (Missi), released by the Philippine Statistics Authority (PSA), showed. This is a reversal of the 12.7-percent growth in the same month last year. The five sectors that significantly contributed to the decline were footwear and wearing apparel, which contracted 19.2 percent; wood and wood products, 18.4 percent; basic metals, 16 percent; food manufacturing, 13.9 percent; and beverages, 10.2 percent. n June production index: Economists see the manufacturing sector recovering in June this year due to the recovery of oil-related production during the month.
August 13 Thursday
BSP MB policy setting
n Previous MB meeting: In its previous meeting, the BSP decided to maintain its key policy rates at 4 percent for the overnight borrowing, or reverse repurchase facility, and 6 percent for the overnight lending, or repurchase facility. “The Monetary Board’s decision is based on its assessment that the inflation environment continues to be manageable.” n Upcoming policy meeting: Economists still believe that the BSP will continue to hold policy rates on current conditions despite recent developments in the external and internal economy, particularly the slowing inflation outturn in the country. (See related story) Bianca Cuaresma
Monetary Board... continued from A1
hike, ample liquidity and strong credit growth; and accelerating fiscal spending,” Hongkong and Shanghai Banking Corp. economist Trinh Nguyen said. Moody’s Analytics economist for the Philippines Katrina Ell also said the central bank will not change its settings, owing to the coming upward pressure to inflation that will likely bring it back to about 2 percent toward the end of the year. “We expect the central bank will sit pat at upcoming monetarypolicy meetings. Even though inflation has moderated recently, global oil prices appear to have found a floor and, coupled with the depreciating peso, will add upside risk to inflation in coming months,” Ell told the BusinessMirror. ING Bank economist in Manila Joey Cuyegkeng also had his baseline forecast at a “no-change” for next week’s meeting but explored on the possibility of a possible reserve requirement ratio (RRR) cut next week. “No change at next week’s meeting. But consideration of easing due to low inflation in the near term and of any accommodation’s impact on financial market volatility would be a focus also at the August 13 meeting aside from inflation forecasts and economic activity,” Cuyegkeng said. “Market talk of possible RRR cut has been around in the last few weeks. We cannot fully rule this out but BSP would carefully weigh such a move in relation also to volatility in the financial market and an eventual possible response to US monetary policy tightening,” he added. Continued on A8
EconomySunday
www.businessmirror.com.ph • Editor: Vittorio V. Vitug
BusinessMirror
Asean integration to boost PHL manufacturing industry–Neda
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he government will continue implementing businessfriendly governance and policy reforms to attract and sustain investments, even as the country faces the transition to a new government next year. While such challenge persists, Socioeconomic Planning Secretary Arsenio M. Balisacan is optimistic that the private sector will continue supporting governance and economic reforms and contribute significantly to the Philippine industry’s growth. “The government recognizes the value of attracting and sustaining private investments, and nurturing prospects for the industry sector. We are thus pursuing reforms and programs to enhance the business environment in the country,” he said during the Laguna Technopark induction ceremony on Friday. Balisacan, also the National Economic and Development Authority director general, listed some of these reforms, including the newly enacted Philippine Competition law and the Amendment to the Cabotage law that will level the business playing field. “Important, we are also pushing
for initiatives that are responsive to the challenges of the Asean integration that offers opportunities for growth and job generation,” he said. Balisacan said that the Asean integration, which is set to culminate in a few months, is also expected to boost the Philippine industry, particularly manufacturing. This, as the country continues to attract foreign investors, especially given its increasing attractiveness as an investment destination in the region, he said. “Without a doubt, this is a great time for the Philippine economy, particularly the industrial sector, including logistics. However, while opportunities abound and growth prospects in the sector are very encouraging, there remain a number of major challenges that we need to aggressively address in order to maximize the sector’s full potential,” he added. Balisacan underscored the need for the country to continue pursuing market reforms to further sharpen the competitiveness of Philippinebased industries and reap the benefits of Asean economic integration. PNA
Kurdistan invites Filipino investors By Recto Mercene
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HE Philippines should take a second look at Kurdistan and explore trade, investment and other opportunities that are available for Filipino companies in Iraq’s thriving northern autonomous region. This was the message of officials of the Kurdistan Regional Government, led by Deputy Prime Minister Qubad Talabani, who asked the Philippine Embassy in Baghdad to convey the message to Manila. “The Philippines can actually do more in Kurdistan because of our strong potential for economic growth and our stable security situation,” Talabani told Philippine Chargé d’Affaires Elmer G. Cato during his recent visit to Erbil, the regional capital. Kurdistan region is in Upper Mesopotamia and the Zagros Mountains, including parts of southeastern Anatolia, Northern Syria, Northern Iraq and Northwestern Iranian plateau. The Kurdish official said the Philippines should expand its presence in Kurdistan and take advantage of the numerous opportunities for trade and investment that are available to Philippine companies in the region. At the same time, Talabani cited the positive contribution of Filipinos in Kurdistan and assured Cato that they are protected in the region. He also said that no less than his own wife, Sherri, has personally been
helping Filipinos in distress. Of the estimated 1,500 Filipinos in Iraq, more than 1,000 are working in the oil-rich region, particularly in the areas of Erbil, Sulaymaniyah and Dohuk. Many are engineers, nurses, managers, administrative staff, hotel, airport and restaurant employees. Talabani also said he is aware of the good reputation of health workers from the Philippines because Filipino nurses are taking care of his father, former Iraqi President Jalal Talabani. A fan of Filipino boxing icon Rep. Manny Pacquiao, the deputy prime minister said he would also want to pursue sports cooperation, especially between Filipino and Kurdish youth. “We are thankful for the hospitality the Kurdish people have extended to our kababayan who have made Kurdistan their second home,” Cato told the deputy prime minister. “We look forward to not only deepening our people-to-people ties but also exploring other areas where we could cooperate.” Aside from Talabani, Cato also met separately with Foreign Minister Falah Mustafa Bakir, Interior Minister Karim Sinjari and Trade and Industry, Minister Samal Sardar Mahmood. He also had meetings with immigration and labor officials and members of the Erbil Chamber of Commerce and Industry, as well as local business leaders and journalists.
House sets 2016 natl budget bill deliberations on Monday
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T
Top 10
By Jovee Marie N. dela Cruz
he House of Representatives is set to start on Monday its marathon deliberations on the proposed P3.002-trillion national budget for 2016. Liberal Party Rep. Isidro Ungab of Davao, chairman of the House Committee on Appropriations, said the budget deliberation is set to begin on Monday with the Development Budget Coordinating Committee as first committee that will present next year’s budget proposal. The committee is composed of the Department of Budget and Management, National Economic and Development Authority, the Department of Finance and Bangko Sentral ng Pilipinas. Ungab also vowed to pass the proposed 2016 P3.002-trillion national budget on time as he sees no delay in the approval of the funds. The lawmaker said the panel is eyeing to pass the budget by September. House Speaker Feliciano Bel-
monte Jr. said Congress would study the budget proposal well to ensure government programs and their funding are justified. “We intend to scrutinize it carefully and do our proper job of acting on the 2016 national budget,” the Speaker said. In his Budget Message to Congress, President Aquino said the proposed 2016 national budget is designed to consolidate the reforms the government has introduced since 2010 and provide a strong foundation for inclusive development. “This P3-trillion budget is anchored on four principles that define public financial management under our administration—principles that must continue to characterize budgeting and management beyond our term,” the President said.
During the turnover ceremony of the National Expenditure Program for 2016 to the House of Representatives, Budget Secretary Florencio Abad said that as mandated by the 1987 Constitution, the Department of Education will get the biggest chunk of the budget next year with P435.9 billion, saying it’s higher compared to the agency’s P377.7-billion budget this year. T he Depar tment of Public Works and Highways and the Department of National Defense will get the next biggest proposed budget, with P394.5 billion (from 2015’s P304.1 billion) and P172.7 billion (from this year’s P154.1 billion), respectively. “This allocation [for defense department] will fund the modernization of the Armed Forces of the Philippines in light of the territorial disputes in the West Philippine Sea,” Abad said. The Department of the Interior and Local Government will get P154 billion (higher than 2015’s P147.2 billion), the Department of Health with P128.4 billion (higher than 2015’s P102.6 billion), and the Department of Social Welfare and Development
with P104.2 billion (lower than this year’s P108.3 billion). The Department of Agriculture 2016 budget is P93.4 billion (higher than 2015’s P90.2 billion), DOF will get P55.3 billion (higher than 2015’s P16.6 billion,) while the Department of Transportation and Communications and the Department of Environment and Natural Resources will receive P49.3 billion (lower than P59.4 billion) and P25.8 billion (higher than 2015’s P21.7 billion), respectively. According to Abad, the proposed 2016 national budget is double the budget of the past six years, from P1.541 trillion of the 2010 General Appropriations Act to the P3.002 trillion planned for next year. “This is also 15.2 percent higher than the 2015 enacted budget. On the other hand, the GDP [gross domestic product] share of 19.5 percent in 2016 will take up a larger share of the economy as compared to 18.7 percent of the GDP in 2015 and 16.4 percent of the GDP [actual obligations] in 2010,” he said. Abad said the government expects to earn P2.7 trillion next year, adding that the deficit is expected to reach P309 billion, or 10.3 percent of the budget.
china sugar, firecrackers
Customs Deputy Commissioner Jessie Dellosa presents the P46.5 million worth of smuggled sugar and firecrackers concealed in 15 40-foot container vans from China, owned by Blue Chelsea Enterprises, on Friday at the Manila International Container Port at the North Harbor in Manila. PNA
Marina extends MACs’ authority to conduct exams until end Oct
he Maritime Industry AuthorityStandards of Training, Certification and Watchkeeping Office has extended the provisional authority of Maritime Assessment Centers (MACs) to conduct examinations and practical assessments for rating until the end of October this year. “Pursuant to Republic Act 10635 and its Implementing Rules and Regulations, and the 1978 International Convention on Standards of Training, Certification and Watchkeeping [STCW ’78] for Seafarers, as amended, and further to STCW Advisory 2015-10, the Provisional Authority granted to all existing Assessment Centers for Ratings is hereby extended until October 30, 2015,” STCW Advisory 2015-18 said. “Furthermore, in view of the issuance of STCW Circular 2015-10 entitled ‘Policies, Rules and Regulations on the
Sunday, August 9, 2015 A3
Accreditation of Assessment Centers for the Conduct of Theoretical Examination and Practical Assessment,’ all existing MACs for ratings and maritime institutions which have the expertise and capabilities to carry out the duties and responsibilities appurtenant thereto, are hereby enjoined to submit their application with the necessary supporting documents indicating compliance with the basic requirements as stipulated in the aforementioned circular,” it added. Marina made the move as it is still establishing procedures for maritime centers which were planning to conduct practical and written assessment operations. It was supposed to end this June but lack of facilities and personnel prompted the regulatory body to extend the provisional authority anew. PNA
Support for low-cost housing developers urged to cut 5.5 million housing backlog
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ow-cost housing developers can help in resolving the 5.5 million housing backlog in the country, Chamber of Real Estate and Builders’ Associations (Creba) Vice Chairman Florentino S. Dulalia Jr. said. Dulalia, who is also the chairman and CEO of F.S. Dulalia Realty Inc., urged the government to support the sector through improved access to finance and easing regulations for small and medium players in the real-estate sector. “The government should encourage developments from small and medium firms because we can address our housing backlog,” he said. He said these players offer affordable prices and easier payment terms for buyers compared to big developers. In order for small and medium firms to hasten their developments and thrive in the local market, Dulalia said a more
relaxed regulation shall be given to these developers. Currently, the market has the same set of requirements and process for small and medium developers and big developers for their projects. “For us not to be eaten by big developers, [ease of] doing of business for small and medium developers should be [put] in place,” Dulalia added. He also mentioned the Asean economic integration taking place at end-2015 can also be a threat and an opportunity for the real-estate sector. As foreign investors can now get share in the local market and the government must extend support to the small and medium players in the industry. Dulalia also noted that the Asean integration will also allow local companies to get foreign partners to hasten and expand developments in the local market. PNA
9 of 10 workers hurdle tech-voc competency assessment–Tesda
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INE out of 10 workers who took the National Technical Vocational Education and Training Competency Assessment and Certification (Natcac) passed and were awarded National Certificates, Technical Education Secretary Joel Villanueva announced over the weekend. “This is a good mark to show that more skilled workers now realize the value of certification to affirm their competence,” said Villanueva, director general of the Technical Education and Skills Development Authority (Tesda). A total of 3,149 were assessed in 160 assessment centers nationwide on the opening day of the Natcac on July 31. Of this, 2,762, or 88 percent, passed the assessment. Industry partners in the National Capital Region also signed a Covenant of Support to manifest their commitment to send their workers for assessment and certification. Tesda organized the Natcac as part of a series of assessment and certification that will be held simultaneously all over the country for the months of August and November this year. Claudeth Mocon-Ciriaco
SundayV
Busine
A4 Sunday, August 9, 2015
editorial
Getting started on the Metro Manila Transport Master Plan
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O the people of Metro Manila who have been suffering from traffic congestion and air pollution these last several years and the airline passengers stranded in provincial airports waiting for clearance of Manila’s crowded Ninoy Aquino International Airport (Naia), the news that the Japanese government has pledged a $2-billion loan to the Philippines to jump-start a component of the Metro Manila Transport Master Plan cannot have come any sooner. Now, at last, there is prospect for relief. The master plan, prepared by the Japan International Cooperation Agency (Jica) on the request of the Philippine government, was approved by the National Economic and Development Authority, under the chairmanship of the President, in September 2014. The plan calls for the establishment of a modern, well-integrated and -coordinated, and affordable transport system for Metro Manila and the adjacent areas of Bulacan, Pampanga, Cavite and Batangas. The system will consist of expressways, new roads elevated and on ground, railways elevated and on ground, subways, airports and seaports. Near-term components are for completion by 2016, while medium- and longer-term components are for completion by 2020 and 2030, respectively. When completed, the plan will accomplish at least three objectives: The reduction of traffic congestion in the metropolitan area; the diminution of air pollution in the metropolitan area and its environs; and the reduction of transportation costs to the urban population, especially the poor and other low-income groups. At the level of the individual, completion will result in the reduction of the average travel fare of commuters from the current P42 to P24, and also the lowering of the current average travel time of 80 minutes to 31 minutes. As reported, the $2 billion is the largest single official development assistance (ODA) that Japan has ever granted to a development partner, a product of a Japan commitment to help the Philippines develop its infrastructure. Manila will use the grant to build the first phase of the $6.27-billion North-South Commuter Railway component of the master plan. The component consists of two parts: The first, a 36.7-kilometer narrow-gauge elevated commuter railway from Malolos, Bulacan, to Tutuban, Manila; and the second, a commuter railway to Matnog, Sorsogon. The second part is to be auctioned off to the private sector via the government’s Public-Private Partnership (PPP) Program. The whole railway project is expected to be completed by 2020. All that is for the future. At the moment, the Philippine government has bidded out 10 components of the master plan under the PPP Program and is poised to auction off 13 more. The bidding period for the whole Master Plan will last to the end of the Aquino administration. The Japan ODA will not ensure the completion of the master plan but will hopefully spark a national effort to get started in the work envisioned. This will, at least, provide breathing space to the hapless citizens of Metro Manila and the outside regions who are struggling to break out of traffic gridlocks, suffocating air pollutions and other disamenities of the urban environment.
The road to Paris and the path to renewable energy M
IPS
By Jed Alegado
Gospel
Sunday, August 9, 2015
ANILA—Renewable energy is now being seen by many people around the world as a cost-effective development solution, both for developed and developing nations. Countries have slowly been realizing that the use of coal and the huge amount of carbon emissions it generates harms the environment and impacts our daily activities. In fact, according to Christine Lins, executive secretary of the Renewable Energy Network for the 21st Century, “last year, for the first time in 40 years, economic and emissions growth have decoupled.” “If you look back 10 years a g o , renewable energies were providing 3 per cent of global energy, and now they provide something close to 22 percent, so that has really skyrocketed,” Lins noted. This is being led most obviously by countries like Uruguay, which aims to generate 90 percent of its electricity from renewable sources by 2015; and Costa Rica, which maintained 100-percent renewableenergy generation for the first 100 days of this year. These countries are not alone and are fast becoming the norm rather than the “alternative.” Even small developing countries, such as Burundi, Jordan and Kenya, are leading the world in investments in renewable energies as a percentage of gross domestic product. In 2008 the Philippines has enacted the Renewable Energy Act of 2008, aiming to “increase the utilization of renewable energy by institutionalizing the development of national and local capabilities in the use of renewable-energy system…and reduce the country’s dependence on fossil fuels.” However, after seven years of its implementation, the Philippines hasn’t yet fully maximized the use of renewable energy, according to Advocates of Science and Technology for the People (Agham), a nongovernmental organization based
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in the Philippines promoting the use of local science and technology practices. Recently, the Philippine government gave the go-ahead for the construction of 21 coal-powered projects despite President Aquino’s promise in 2011 during the launch of the Philippine government’s National Renewable Energy Plan to “nearly triple the country’s renewablesbased capacity from around 5,400 megawatt (MW) in 2010 to 15,300 MW in 2030.” In the next five years, the new coal plants that are expected to be constructed are the following: the Aboitiz company Therma South Inc.’s 300-MW plant in Davao City (2016); the 400-MW expansion of Team Energy’s Pagbilao coal-fired power plant in Quezon (2017); the 600-MW Redondo Peninsula Energy Inc. plant in Subic, Zambales (2018); the San Miguel Corp. Global’s 300-MW plant in Davao (2017); and a 600-MW plant in Bataan (2016). While the government has provided incentives to companies to make use of renewable energy, the private sector is not keen on doing so because of the profit generated by coal. Furthermore, they are also looking at the short-term gain of using it—the relatively cheaper price of harnessing the so-called dirty energy. A report, titled “Powering Up Against Poverty: Why Renewable Energy is the Future,” released last week by the international development organization Oxfam argues that renewable energy is, in fact, a more affordable-energy source than coal for poor people in developing countries. The report argues that, as a result of the changing energy landscape around the world, the decreasing price of renewable energies, and the often remote location of the majority of people who don’t have access to electricity, renewable energy may actually offer a more reliable and ef-
HE Jews then murmured at Him, because He said, “I am the Bread, which came down from Heaven.” They said, “Is not this Jesus, the Son of Joseph, whose father and mother we know? How does He now say, ‘I have come down from heaven?’” Jesus answered them, “Do not murmur among yourselves. No one can come to Me unless the Father Who sent Me draws him; and I will raise him up at the last day. It is written in the prophets, ‘And they shall all be taught by God.’ Every one who has heard and learned
fective energy source. Furthermore, the report stated that, “Four out of five people without electricity live in rural areas that are often not connected to a centralized-energy grid, so local, renewable-energy solutions offer a much more affordable, practical and healthy solution than coal.” “But, as well as failing to improve energy access for the world’s poorest people, burning coal contributes to hundreds of thousands of premature deaths each year due to air pollution, and is the single biggest contributor to climate change.” This supports statements made this year by the World Bank, the International Monetary Fund and former United Nations chief Kofi Annan, who have all argued that renewable energy and not fossil fuels are key to improving energy access and reducing inequality, especially in developing countries. If the Philippines wants to show to the world that our country is the rallying point against climate change, especially in the global climate talks, our government needs to walk the talk on renewable energy. Indeed, climateadaptation practices are not enough. We need to show other countries and lead the way toward climate-change mitigation by leading the path to sustainable development and use of renewable energy. Similarly, countries under the United Nations Framework Convention on Climate Change Conference of the Parties must agree on a fair and legally binding agreement in Paris in December. We cannot afford another failed climate negotiations, like the one in Copenhagen in 2009, to happen again. Jed Alegado (@jedalegado) is a climate campaigner based in the Philippines. He holds a master’s deg ree in P u blic Management from the Ateneo School of Government and is also one of the climate trackers for Adopt a Negotiator’s #Call4Climate campaign.
from the Father comes to Me. Not that any one has seen the Father except Him who is from God; He has seen the Father. Truly, truly, I say to you, he who believes has eternal life. I am the Bread of life. Your fathers ate the manna in the wilderness, and they died. This is the bread which comes down from heaven, that a man may eat of it and not die. I am the living Bread which came down from heaven; if any one eats of this Bread, he will live for ever; and the Bread which I shall give for the life of the world is My Flesh.”— John 6:41-51
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essMirror
opinion@businessmirror.com.ph • Sunday, August 9, 2015 A5
Paid democracy D Free Fire
By Teddy Locsin Jr.
AN SCHNEIDER in the Atlantic Monthly shows that American democracy has finally caught up with Philippine democracy. Donald Trump was exposed as having hired actors at $50 apiece to cheer the announcement of his presidential candidacy. If you ask me, his paying shows respect for the acting profession. The flashes from the pan of genuine grassroots support—Obama in 2008, Ron Paul in 2012 and socialist Bernie Sanders today— are rare and unpredictable. People are unpredictable, except where money is concerned: Everyone wants it and most need it badly.
Indeed, if you want people to believe that other people are listening to you, so maybe they should also pay attention—in short, if you want to create a bandwagon effect, American politicians are finally doing what ours have done time out of mind; which is to say for grassroots support from the same needy people. The US claims a longer history with immigrants showing up to create the illusion of a rally, the unemployed paid by unions to picket factories in which they want jobs. But those people really needed something from the people paying them; and small hand-
outs just helped keep them around a while longer. They wanted to be welcome in the land of the free, employed in the land of plenty. Here, paid crowds have no expectations—thereby, showing our political maturity. We’re just there for the money. We have no consciousness of anything else. “Crowds on Demand” is a Los Angeles-based company that provides rental crowds for campaign rallies and protests. Other outfits are “Crowds for Rent” and the Trump-hired “Extra Mile Casting.” You can contract their services for product launches and, in the case of a progay rally, as
hecklers to give it the color of persecution. Crowds on Demand operates where there are actors aplenty, like Los Angeles and New York. It can furnish smaller casts for hot spots, like Iowa and New Hampshire. It is nonpartisan; neither Republican, Democrat nor Independent; it will rally for whoever or whatever pays. The business is going international. There’s a British outfit called “Envisage Promotions” and a Ukrainian one called “Easy Work” that pays students $4 an hour to support and oppose whatever. Still, we hold the record for longest history of crowds for hire in
terms of size at a much less price and for giving what no professional outfits provide: a genuine enthusiasm. It starts out contrived but soon everyone gets into the spirit of things, and they shout with authentic regard. Here, you’re paid, not just for showing up but for caring, at least for the evening. It goes farther to include voting but that is a separate transaction. The beauty of it is that it is not subcontracted but, like Uber, it is self-generated once financially motivated. Indeed, for the night you booked, you deny the other side the benefit of a big attendance.
A Japanese development course for India By Noah Smith Bloomberg View
F
OR decades, I’ve been hearing about India’s need to modernize its infrastructure. Infrastructure is crucial for manufacturing, since various inputs need to travel quickly and reliably between and within cities in order to create stable supply chains. Manufacturing, in turn, is central to development: It moves people from farms to cities, where they become more productive, and it helps local companies absorb advanced technology from the rest of the world. A lthough manufacturing is declining in importance in the global economy, there is still a chance that India can hop on the manufacturing-based development bus. At a minimum, it’s definitely worth a shot. And to do so, India needs much better infrastructure—roads, railways, airports and power grids. Economic research even supports this hypothesis—India’s Golden Quadrilateral highway project, started in 2001, has helped Indian companies and boosted productivity. Yet, India needs to do a lot more
in the infrastructure department. A 2013 report by PricewaterhouseCoopers puts it thus: Rapid industrialization is intensifying the strain on (India’s) unreliable networks for electricity and water. The railway system— already infamously overcrowded —faces rising demand for freight capacity. And the government has fallen far short of its plans to build 20 kilometers of roads each day— an urgent requirement in a nation where 65 percent of all freight is transported by road, and where traffic is so severe that the maximum highway speed for trucks and buses is only 30 to 40 km per hour. The need to upgrade India’s infrastructure is especially acute in huge cities, such as Mumbai, New Delhi, Kolkata and Bangalore.... [M]assive investment will be required in everything, from metro systems to clean water supplies, power generation to affordable housing. Why is India such an infrastructure laggard, always struggling to patch things together, while China—the world’s other supergiant developing country—races ahead? The traditional answer is that democracy is holding India
back. China, we are told, was able to build topnotch road, rail and water transport networks because, as a dictatorship, it could simply order peasants to move out of the way. Many take this as a received truth—India, they say, simply has to choose between democracy and efficient government. But this story, convincing as it sounds, isn’t right. History shows that it’s possible for democracies to build effective infrastructure. Perhaps, the best example is Japan. Japan is a strongly democratic nation, consistently receiving high marks in terms of political freedoms. And it’s impossible to deny that the country has built one of the world’s best infrastructure systems. It’s shocking how easy it is to get from Point A to Point B in Japan, whether you’re a business traveler riding a high-speed train or a trucker driving down the highway. One general lesson many people took from Japan’s success—at least, before the Japanese economy stalled out in the 1990s—is the power of technocracy. If they work efficiently, technocracies allow democratically elected legislatures to give small groups of experts the ability to make policy in the short
term, while keeping them accountable in the long term. If the technocrats overstep their bounds and do something strongly contrary to the public’s wishes, the legislature can rein them in. But most of the time they can operate with a long leash, getting things done quickly and decisively. During its early development, Japan combined powerful ministries, with members recruited from top schools, with powerful public corporations. India seems to be taking that general lesson to heart. The government of Prime Minister Narendra Modi has established a National Investment and Infrastructure Fund, for which it promises to recruit the “best talent in the world.” With India’s huge population and deep talent pool, it will not have to look far. In addition, Modi has promised $1 trillion of infrastructure spending by 2017. Of course, bureaucracies are not omnipotent. Some researchers claim that Japan’s system of competition between government ministries has reduced the effectiveness of Japan’s infrastructure programs in recent years. And Japan has overbuilt infrastructure, according to a recent McKinsey
report, in a misguided effort to stimulate growth. As for those vaunted public corporations, many are now unprofitable. That said, India is still poor enough that a powerful elite bureaucracy may be an effective way of getting a fractious democracy to build modern infrastructure. In addition to copying Japan’s classic approach, India can also leverage Japanese expertise more directly, by hiring Japanese companies to build its roads and rails. Moreover, Japanese Prime Minister Shinzo Abe is trying to foster an alliance with India in order to hedge against the rise of China, so, Japan’s government may be prepared to offer India cheap infrastructure financing. Abe recently unveiled a $110-billion funding initiative to help poor countries in Asia—of which India is by far the biggest— invest in infrastructure. And Japanese institutional investors, facing very low yields in Japan, have a big incentive to buy higher-yielding Indian development bonds. So in many ways, Japan may be key to solving India’s infrastructure woes—as an institutional model, as a source of expertise and as a source of funds.
Time to turn two-party system into three-party system By Dick Meyer
Scripps Washington Bureau (TNS)
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ASHINGTON—The hulking, wounded elephant in the room of American politics is the disgraceful, scandalous performance of the two political parties over the past 50 years. “Elephants” are truths that are obvious but too big, too established or too awkward to talk about. It’s easy to ignore them. We follow the parties like sports—sometimes frantically, sometimes with disgust, but most voters don’t have a favorite team; we follow the players, elections and the fights in Washington. We don’t view the two parties through a wider lens; we don’t think about if they serve their proper function; we don’t really take them seriously as institutions. Why? Mostly because we have no expectations that parties are anything but, well, political in the worst sense of word. Congress passes laws. The president signs them and is commander in chief. The Supreme Court judges laws. Parties don’t belong to that great chain of governing. They are just the two teams that supply the players and trash talk. Unfortunately, we assume the
two-party system permanent and unalterable. But the very phrase— “two-party system”—is a misnomer. Nothing in the Constitution sanctions a two-party system. The two-party duopoly is an accident of history, not the work of the framers. My list of complaints is long: They have created a primary system so prolonged that elected officials are usually in campaign mode; they ceded the power to select and finance candidates and so have little power over their caucuses in Congress; they don’t recruit and promote the best and brightest; they have lost the trust and loyalty of voters. But my chief gripe is that they have made it nearly impossible for a third party or an independent presidential candidate to have a fighting chance. They literally have committed a crime of antitrust by conspiring to secure a two party monopoly on political power. This is their great and legal scandal. This duopoly creates a Catch-22: The rational way to attempt repairing public trust in government and hyperpartisan gridlock in Washington is with major changes in how elections are held. Only those who hold political power can do that, but that’s against the self-interests
My list of complaints is long: They have created a primary system so prolonged that elected officials are usually in campaign mode; they ceded the power to select and finance candidates and so have little power over their caucuses in Congress; they don’t recruit and promote the best and brightest; they have lost the trust and loyalty of voters. But my chief gripe is that they have made it nearly impossible for a third party or an independent presidential candidate to have a fighting chance. of the parties. The only hope for civic improvement can come from outside the duopoly. I believe the only vaguely plausible scenario for that is a well-funded, reformbased, “disruptive” third party. I hate the word but name a business that hasn’t been disrupted in the past 50 years? I can think of one: the parties. Lusting after a third party is considered politically immature, totally unrealistic and goofy by the grizzled wise. It
is like a fan thinking his team can trade a couple draft picks for Aaron Rodgers. That is a shame because the country needs something to stir the pot (besides legalizing pot) and to shoot the elephant in the room. A successful third party is feasible. Rarely has there been a better opportunity. In most recent elections there has been some third-party spasm, however quixotic: John Anderson, Ross Perot, Unity ’08 and Americans Elect in 2012. It is weird that nothing is cooking this round. Why is 2016 ripe? Thanks to the Roberts court, the economics of American elections have been deregulated. It would be easy to finance a thirdparty campaign. It might be unsavory and against the spirit of reform, but it would be easy. A couple hundred million dollars would fund a competitive campaign. Is there any doubt, for example, that the Koch network could manufacture a credible third-party ticket in 2016? None. It would have a clear libertarian ideology, a ready-made platform, a grassroots network and the best polling, data mining, marketing and dirty tricks money could by.
Remember, David Koch was the Libertarian VP candidate in 1980. Here is the other reason: There have never been more voters who call themselves Independents. Flipping it, there have never been fewer Democrats and Republicans. The average favorability rating of the two parties combined has been declining on the same steep line as evening news ratings and typewriter sales. This may seem odd because the political arguments we eavesdrop on in social media, online comment boards, cable TV, blogs, political ads and congressional debates is so rabidly partisan, obnoxious and uncompromising. But true believers are a minority of a minority. They just yell the loudest, donate a lot and vote in primaries. So political hacks suck up to them. Polls about trust in the institutions of government— Congress, the presidency, the Supreme Court, political parties— have been hitting new lows for years, essentially since 1968. This is no passing phase. It is the new normal. Black is the new black. A third party is the logical response. Next week we’ll look at how we might be able to trade for Aaron Rodgers in 2016. (Go Bears!)
NewsSunday
A6 Sunday, August 9, 2015 • Editor: Vittorio V. Vitug
BusinessMirror
www.businessmirror.com.ph
Lawmaker to Roxas, de Lima: Don’t forget SAF 44 case before hitting campaign trail
Group lauds publication’s retraction of positive report on ‘golden rice’
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GROUP of agricultural scientists on Saturday lauded the retraction made by the American Journal of Clinical Nutrition (AJCN) of its report that gave the controversial “golden rice” a positive review. Magsasaka at Siyentipiko para sa Pag-unlad ng Agrikultura (Masipag) National Coordinator Chito Medina said the retraction vindicates Filipino farmers who uprooted golden rice stalks planted near the regional office of the Department of Agriculture in Pili, Camarines Sur, in August 2013. “This is a welcome development to those who oppose the golden rice. The farmers feel vindicated that they uprooted the golden rice undergoing field trial in August 2013. They are strongly against the field trial of the said crop, as it might affect their crops, health and environment. With this retraction, no nutritional or safety studies exist that support the benefits of golden rice,” Medina said in a news statement. The retraction by the AJCN of the article “B-Carotene in Golden Rice is as good as B- Carotene in oil in providing vitamin A to children” was published in its September 2012 issue. An order of the Massachusetts Superior Court, which denied the appeal of the senior author, Guangwen Tang, paved the way for the retraction. According to the AJCN, on July 17
By Jovee Marie N. dela Cruz
party-list lawmaker has asked the heads of the Department of the Interior and Local Government (DILG) and the Department of Justice (DOJ) to resolve first the case of the slain 44 Philippine National Police-Special Action Force (PNP-SAF) commandos before focusing on their campaign for the 2016 elections.
Party-list Rep. Samuel D. Pagdilao Jr. of the Anti-Crime and Terrorism through Community Involvement and Support said now is the time for Interior Secretary Manuel A. Roxas II to terminate any pending or unfinished business in his department,
particularly the case of the SAF 44. Roxas has expressed intention to resign from his post following his endorsement by President Aquino as the administration’s candidate for presidency. “It must not be forgotten that on
January 25, 44 members of the PNPSAF were killed while performing an official mission sanctioned by no less than the President. This is one of the many unfinished businesses of the Aquino administration, particularly of the DILG, under the leadership of Roxas, which made the headlines. The majority of our people are crying for justice,” he said. Members of the PNP-SAF were in Mamasapano,Maguindanao,onJanuary 25 to serve warrants of arrest on Basit Usman and Zulkifli bin Hir, alias Marwan, both with alleged links to the terrorist group Jema’ah Islamiyah. “As father of the National Police Commission, Roxas must facilitate the closure of this pending case as his last homage before he steps down from his office and move on to the next chapter of his political career. This might just be one of those acts that the people are waiting from Roxas before they support him as President Aquino’s heir,” Pagdilao added.
Pagdilao also said the DOJ should now file criminal charges against those who are involved in the illfated Mamasapano mission, saying the lives of the 44 commandos were sacrificed to save the peace process. “The pursuit of the case rests on the DOJ’s Leila de Lima’s shoulder, where it remains hanging. Now that her running for the Senate seem highly probable and her endorsement by the administration not far behind, her resignation is also bound to happen. Thus, she must consider the pending case against those MILF [Moro Islamic Liberation Front] involved in the Mamasapano her unfinished business. While the 2016 elections is looming in the distance, political agenda should not overshadow the government’s promise to give justice to the family of SAF 44,” the lawmaker said. De Lima was reportedly eyeing the Senate position in 2016 under the Liberal Party.
LRT 1 ticketing system undergoes upgrade By Lorenz S. Marasigan
P
ASSENGERS of the Light Rail Transit (LRT) Line 1 now receive paper receipts as tickets for their rides, as its ticketing system is currently undergoing an upgrade. AF Payments Inc. CEO Peter Maher explained that his company needs to decommission the old magnetic-
ticketing system to start the installation of the new gates on the Northbound direction of the train system. The temporary ticketing scheme started on Saturday. “The LRT Authority [LRTA] further announced that it will stop selling magnetic cards for LRT 1 stations beginning on August 8. Holders of the magnetic stored-value cards will have the option to refund the
remaining value of their cards in all LRT 1 station teller’s booths from August 8 to 15,” he said. Maher also reported that during the trial of the new system at the LRT 2, train riders were able to purchase and top-up beep cards of different variations. Commuters were, likewise, able to use the gates that accept the new contactless cards for
entry and exit in the stations. In almost three weeks of pilot testing, LRT 2 commuters purchased 67,000 beep cards, used them 460,000 times to pay for their trips and completed 150,000 top-ups. “During the trial over the past couple of weeks, we were able to assess the equipment’s performance in a real public usage and traffic scenario,” Maher said. “The positive results we got from this trial give us and the LRTA the confidence to start rollout activities on the Southbound direction of LRT 1 in the coming weeks,” he added. The shift to a contactless ticketing system aims to enable seamless transfers from one metro line to another by unifying their ticketing schemes, and to shorter queuing time for the riding public. A transition period before completely rolling out the system is needed to identify any possible bugs in the system and to familiarize passengers with the new payment scheme.
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the court decided to clear the way for the American Society of Nutrition, the copyright owner of the journal, to retract. The article was retracted on July 29. The court based its decision on moral and ethical grounds, saying that there was insufficient information given to the Chinese school-age children, and their parents and or guardians, who underwent golden rice feed testing. Tang, a researcher based in Tufts University, headed a team of scientists to conduct a nutritional study on golden rice on children in Hunan province in China. Masipag opposes the commercialization of golden rice, a genetically modified crop being eyed by scientists as a solution to widespread micronutrient deficiency and malnutrition among women and children worldwide. Golden rice is genetically engineered to be rich in beta-carotene and will address vitamin A deficiency among children and pregnant women. Proponents of golden rice have completed the multilocation field trials in the Philippines and is now in the process of collating the data for regulatory approval. The International Rice Research Institute and Philippine Rice Research Institute are pushing to commercialize golden rice by 2016. Golden rice is also being field tested in contained areas in Indonesia and Bangladesh. Jonathan L. Mayuga
briefs
zambo mayor inaugurates P9.6-M school building
ZAMBOANGA CITY—Mayor Ma. Isabelle Climaco-Salazar has unveiled the newly constructed P9.6-million two-story eight-classroom school building in Barangay Taluksangay, 19 kilometers east of the City Hall. Salazar said the school- building project is in line with her administration’s thrust on education with the end in view of preparing a better future for the children. Salazar added that equally important as education is human security and health, stressing that a well-secured community and healthy people make economic progress and development easier to achieve. She thanked barangay officials of Taluksangay for embracing the children of families displaced during the 21-day September 2013 siege. PNA
legazpi city to adopt pangasinan’s crm model
LINGAYEN, Pangasinan—Legazpi City is among the many local government units in the Philippines that expressed intent to replicate Pangasinan’s model Coastal Resource Management (CRM) Program. This after officials of the City Environment and Natural Resources Office of Legazpi City in Albay province conducted a study tour here last month, where they were presented Pangasinan’s pioneering programs in fishery management, and projects for river and coastal area protection and preservation. “You have good CRM project, which we intend to adopt,” said Salve Corral, City Environment and Natural Resources officer of Legazpi when they arrived at the Pangasinan capitol. PNA
P10-million harvest
Armed Forces Chief of Staff Gen. Hernando Iriberri hands over a P10-million wad of money as reward to the informant who guided army and police personnel in arresting communist leader Benito Tiamzon during the awarding of rewards on Friday at Camp General Emilio Aguinaldo in Quezon City. PNA
Ilocos Norte expands Night Express
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AOAG CITY—The provincial government of Ilocos Norte has expanded the service of the Night Express, where jeepneys and buses ferry residents and tourists to various municipalities during night time. From the three-day schedule a week, Night Express will now run for seven days a week to eight towns and one city—Bacarra, Vintar, Pasuquin, Dingras, Pagudpud, Burgos, Paoay, Nueva Era and Batac City. The Metro Ilocos Norte Council (MINC) has approved the schedule after the success of the dry run of the service during the summer season. It has been observed that a considerable number of residents have benefited since most of them work in Laoag City and go home to the neighboring municipalities. Ernesto Tumaviene, a resident of Cadaratan in Bacarra town who goes home from his work in Laoag
City about 7:30 to 8 p.m., took advantage of the Night Express, said that it had saved him money and time since the province established the program. “I used to rent a tricycle going home which costs me P150 to P200 a night. Now that the Night Express is here, I have to pay only P70 and the jeepney will bring me safely up to the doorstep of our home,” Tumaviene said. Transport drivers here also support the program wherein majority of them said that the program, provides them additional income for their families. The service is available from 8 p.m. to 1 a.m. and is offered with regular fare. Ilocos Norte Gov. Imee R. Marcos’s vision to provide Ilocanos with improved transportation services in key economic zones in the province prompted the creation of the MINC. PNA
Shopping
A BusinessMirror Special Feature
www.businessmirror.com.ph
Sunday, August 9, 2015 A7
SM BEAUTY CELEBRATES INTERNATIONAL LIPSTICK DAY AT SM MAKATI BYS is giving 20% off on basic lipsticks and lip glosses; Elf gives a free essential color stick for every purchase of 3 essential lipsticks; and The Body Shop offers 40% off on select lip products
Covergirl is giving 50% off on all Lip Perfection lipsticks; Max Factor has a buy1 take1 promo on select lipstick products; and NYX has 20% off on Lip Butter lipsticks
Enjoy Essence’s trendy lipsticks at Php100 from; Maybelline’s buy any 2 items and get a 3rd item for FREE promo; and Makeover’s 50% off on lipsticks and lip glosses
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Great deals at SM's Lipstick Festival: Get a Macquillage Professional lipstick (selected range) from and Lacquer Gloss for only 2,000 from Shiseido; Free lipstick from VMVfor a minimum purchase of 5,000; and Free Nutrishine lipstick from L'OREAL for every Color Riche lipstick purchase
IN2IT is up to 50% off on selected lipsticks; Bobbi Cosmetics is giving 20% off on all lip crayons; and LA Girl with up to 20% off on glazed lip paints and matte lip glosses
S the first to launch International Lipstick Day in the Philippines on July 29, The SM Store’s Beauty Section celebrates it in a big way with a gathering of stylish lippie lovers at SM Makati, and Lipstick Festival, which is ongoing until August 26. There was a lot to celebrate as lipstick, after all has always fascinated us. We all know how it can be a huge confidence booster and mood transformer, but in England in the 1500’s, people, including Queen Elizabeth actually believed it had magical powers. During World War II, all other cosmetics were rationed in Great Britain, but lipstick was kept in production because Winston Churchill felt it boosted morale. In a US study, it is said that the average women spends $15,000 on cosmetics in her lifetime—and of that amount $1,780 goes to lipstick. The SM launch was a beautyfull event hosted by Miss Philippines Water 2012, Samantha Purvor; and graced by three other beauty queens —Venus Raj, Shamcey Supsup, and Ariella Arida. They shared their different lip tips and personal stories to encourage ladies to feel more confident in exploring the world of lipstick. Venus shared that it’s important to know one’s “undertone color” to perfectly match with the right lip color. Shamcey on the other hand, says that lip moisturizing is a must because, “us-
ing too much lipstick can lead to dry lips, which is why it is important that you exfoliate and moisturize.” Ariella gave tips on picking the right lip color that should always go with one’s “day or night looks.” “We join make-up fans all over the world on International Lipstick Day,” says May Abarquez, Watsons & SM Beauty’s Beauty Trading Controller. “I know Filipinas are big fans of lipstick, and we’ve made the celebration more fun for them.” With that, top brands like Happy Skin, Shiseido, L’Oreal, Revlon, Maxfactor, NYX, Maybelline, The Body Shop, BYS and others are offering lip makeup services and discounts up to 50% until August 26. SM Makati shoppers can also get the latest trends in li p color from luxury brands like Dior, MAC, Clinique and Shu Uemura. Complete your look with other lip care products and must haves like lip balm, liners, and glosses. The Lipstick Festival is ongoing at the Beauty Section of all SM Stores. Share your instagram-worthy photos with #SMLipfie, tag @ SMBeautyPH and get a chance to win special prizes.
Beauty queens Venus Raj, Sam Purvor, Ariella Arida, and Shamcey Supsup-Lee shared their “lip tips” at the SM Beauty Lipstick Festival
The winning team at the Lip Marks Challenge. Retty Contreras of Cosmo.ph with bloggers Christianna Collings and Janina Manipol
The Lipstick Festival is ongoing at the Beauty Section of all SM Stores
Enjoy the Lipstick Festival ongoing until August 26 in the Beauty Section of all SM Stores
2nd Front Page BusinessMirror
A8 Sunday, August 9, 2015
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Each Pinoy owes ₧61,205–legislator
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By Jovee Marie N. dela Cruz
LAWMAKER over the weekend said that each of the 101.6 million Filipinos will have a nominal debt per capita of P61,205 by December 2015. Party-list Rep. Terry Ridon of Kabataan, citing the Department of Budget and Management, said that for 2015, each Filipino will owe an estimated P41,871 domestic debt and P19,334 foreign debt, for a total of P61,205 outstanding debt per capita. According to Ridon, the figures are based on the estimated P6.2-trillion outstanding debt of the national government by yearend 2015 reported by the Bureau of the Treasury in the 2016 Budget of Expenditures and Sources of Financing (BESF). “Ang ibig sabihin nito, kahit ang sanggol na isisilang pa lang ngayong taon, libo-libo na ang nag-aabang na utang,” Ridon said. The lawmaker said the P6.2-trillion outstanding national debt for 2015 is comprised of domestic debt,
amounting to P4.25 trillion; and foreign debt, totaling P1.96 trillion. With the nominal gross domestic product (GDP) for 2015 estimated to be between P13.9 trillion and P14.1 trillion, the debt-to-GDP ratio by year-end is projected to be between 44 percent and 45 percent, he said. “This means that, if we want to wipe our debts completely, we need to allocate at least P44 to debt service for every P100 worth of goods and services we produce in the domestic economy,” Ridon said. “This large debt per-capita figure is the result of the government’s continued reliance on debt to fund ambitious programs and projects that do not necessarily translate to more stable macroeconomic fundamentals,” Ridon added. Meanwhile, Ridon said that
the proposed P3.002-trillion national budget for 2016 is 15.2 percent higher than the current P2.606-trillion budget. To fund the 2016 budget, the government seeks to collect P2.7 trillion in tax, nontax revenues and privatization next year, he said. However, Ridon added that the government intends to borrow an additional P674.8 billion to plug the projected P308.7-billion budget deficit and pay for the amortization of P347.7 billion in maturing national government debt. Ridon said the government’s targeted borrowings highlight the debt-driven nature of the country’s fiscal program. “Just like what it does every year, the government again intends to borrow money from domestic and foreign sources not only to plug our deficit, but also to pay off maturing debts. In other words, we are stuck with a cycle of endless debt,” he said. The lawmaker said that, based on the 2016 BESF, the national government, in fact, targets higher added borrowings for next year. “For 2016, the national government targets to incur an additional P1.029 trillion in domestic and foreign borrowings, increasing the total outstanding debt of the
national government to P6.42 trillion by year-end 2016,” he said, citing the BESF. Ridon said that this translates to a higher projected nominal debt of P62,209 for every Filipino next year, using the estimated 103.24 million population projection of the Philippine Statistics Authority for 2016.
According to the legislator, as long as our fiscal program remains highly dependent on loans, the country would continue to incur exponential debts, “which, in turn, compel the national government to scrimp on funds allotted for services to the people.” Even with the Aquino administration’s “good debtor” policy on
serving debt, Ridon said national government debt has still steadily increased since the Aquino administration assumed office in 2010, a time when the outstanding debt of the national government was just P4.639 trillion and debt burden per capita was P49,817 (for 93.1 million Filipinos). With Marvyn Benaning
MGB: Nickel, gold output to continue upward trend W ITH three nickelmining companies resuming operations in Zambales and a gold project going on stream within the year, the country’s metallic minerals output is expected to sustain the upward trend this year. The metallic-mineral production value in the first three months of 2015 reached P23.72 billion, slightly up by 7.17 percent, from the P22.14 billion in the same period last year, or a growth of P1.59 billion. In its 2015 first-quarter review released on Friday, the Mines and Geosciences Bureau (MGB) said direct-shipping nickel ore and mixed nickel-cobalt sulfide were the key mineral products with a combined share of 42.46 percent, or P10.07 billion, of the country’s minerals exports. Gold and copper accounted for 36.12 percent, or P8.57 billion; and 20.60 percent, or P4.89 billion, respectively. The combined output value of silver, chromite and iron ore was at 0.81 percent of the total, or P0.19 billion. In 2014 total metallic production value increased by P27.65 billion, or 37 percent, compared the previous year. This year the MGB expects the trend to continue, with nickel and gold showing good performance. MGB Director Leo L. Jasareno said the temporary lifting of the suspension order for nickelmining operations in February is expected to boost nickel
output further, as exports of direct-shipping nickel ore to China are expected to continue owing to Indonesia’s raw-ore export ban imposed in January 2014. The temporary lifting of suspension order of Lnl Archipelago Minerals Inc. on February 10; and Benguet Corp. Nickel Mines Inc. and Eramen Mineral Inc. on February 20, all operating in Zambales, is expected to give nickel production a boost this year, Jasareno said. The nickel companies, he said, are exerting effort to comply with the conditions of the MGB in their bid to have the suspension permanently lifted. “The major condition is for them to construct the mine road. We verified that the three mining companies have agreed to construct the mine road,” he said. Jasareno said a memorandum of agreement that provides for the construction of the mine road has been signed by the mining companies and the local governments of Zambales and Santa Cruz town. In additon, he said that the companies are tapping University of the Philippines-based geologists for a one-year study on the sedimentation of water bodies in Zambales to determine the source of sedimentation, “to prove that the mining companies are not to blame for the water pollution. He added that the companies are also coordinating with the Bureau of Fisheries and Aquatic Resources
for another study regarding pollution of coastal waters. Nickel production slowed down last year because of the suspension slapped by the MGB, owing to environmental problems last year. With the companies resuming full-scale operations, Jasareno said nickel-production value is expected to increase further. Meanwhile, he said gold is also expected to post higher production with the reentry of Siana Gold Project of Greenstone Resources Corp. in Surigao del Norte to the production stream early this year. The project reported zero production in 2014, after it was issued a cease-and-desist order (CDO) on June 6, 2013, owing to the tension crack found on the embankment of its Tailings Storage Facility (TSF) 4. The CDO was lifted on December 18, 2014, after the rehabilitation of its TSFs 3 and 4. The company produced 363 kilograms of gold, with estimated value of P623 million; and 322 kg of silver, with estimated value of P7.64 million, in the first quarter of the year. Another gold project, that of FCF Minerals Corp. in Nueva Vizcaya, is being eyed to start commercial production within the year, Jasareno said. FCF is expected to produce 100,000 ounces of gold annually. “This is the first time that the company will start commercial production of gold,” he said. Jonathan L. Mayuga
Defense gets 11.5% budget increase
T
HE Department of Budget and Management has increased the allocation for defense by 11.5 percent to P129.1 billion next year to strengthen maritime defense, amid the continuing Chinese military buildup in the disputed islands on the West Philippine Sea (South China Sea). Budget Secretary Florencio B. Abad said the additional allocation will fund the modernization of the Armed Forces. “We’ve already laid down measures to help agencies make optimal use of their allocations so that they can focus on the prompt delivery of public services. That’s why we’re confident that the implementation of the proposed 2016 budget will not only provide inclusive development for all Filipinos, but will, likewise, make this
growth sustainable past 2016,” Abad said in a statement. Earlier, Foreign Secretary Albert F. del Rosario urged delegates to the East Asia Summit (EAS) to address vital regional security issues, particularly the tension on the West Philippine Sea. Del Rosario said the EAS and the Asean are key to addressing the worsening security situation in the region owing to the rising Chinese military buildup. He said that over the past several years the Philippines and its Asean partners and China have sought to fully implement the Declaration of Conduct of Parties in the South China Sea and concluding the binding Code of Conduct. “While there have been some
movements in this regard, this is by no means sufficient to manage the recent increase in tensions arising from disputes and aggressive unilateral actions, including massive reclamation activities,” del Rosario added. The Philippines also had sought through bilateral and multilateral means to resolve these problems with China. “Ultimately, these all failed. Therefore, the Philippines turned to arbitration as a transparent, friendly, durable and peaceful dispute-settlement mechanism consistent with international law, including the United Nations Convention on the Law of the Sea. “More important, we pursued the arbitration procedure to precisely preserve a valued friendship,” he added. Estrella Torres
Monetary Board expected to maintain policy settings continued from A2 This sentiment was shared by Security Bank economist Patrick Ella. “I agree that the BSP will keep rates unchanged at the August 13 MB meeting. I have been arguing for a rate cut.. mild one since late last year but I think the BSP is more serious now in, at least, considering a cut in the reserves ratio, I see a possible 100-basis-point reduction,” he said. Meanwhile, Bank of the Philippine
Islands (BPI) research officer Nicholas Antonio T. Mapa said that, while the cenral bank will not likely react to the recent so-called “cost push” inflation, especially when the factors are so apparent, it should signal its next move in the coming weeks for guidance to the markets. “I’m basing my call on comments from the governor [Amando Tetangco Jr.], who indicated at a July 21 interview that ’at this time, we don’t see a need to change [monetary
policy].’ This was pretty much in line with the policy statement of the BSP at its last meeting where they said that ‘domestic demand remains firm and supported by solid private household and capital spending,’” Mapa said. “The BSP may need to signal policy moves in the next few weeks as their most recent comments have been neutral. Should they intend to adjust monetary policy, they may need to do so soon, with the Fed primed to hike rates as early as September,” he added.