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Asean leaders head to South Korea meet
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UE to “encouraging” developments in the aftermath of Typhoon Ruby (international code name Hagupit), President Aquino has decided to attend the summit between the Asean and the Republic of Korea on December 11 and 12 in Busan, South Korea.
Busan. He has full trust and confidence in the members of the Cabinet who have been on the ground since before Typhoon Ruby made landfall, as well as in the NDRRMC, local government units, and other government personnel who are engaged in the task of relief and recovery,” Valte said. The President leaves for Busan at 9 a.m. on December 11. Vietnamese Prime Minister Nguyen Tan Dung has left Hanoi for Seoul to attend the summit. The commemorative summit, which takes the theme of “Building Trust, Bringing Happiness,” is expected to focus on reviewing and drawing out development orientations for Asean-South Korea dialogue relations. Asean and South Korean leaders will also discuss regional and international issues of mutual concern and issue a joint statement on a vision for their relationship, which is expected to define the orientation and create a framework for the bilateral strategic partnership. The prime minister is also
POLICE officers stand guard at the venue of the Asean-Republic of Korea Commemorative Summit in Busan, South Korea, on December 10. The summit will be held in Busan on December 12 and 13.
scheduled to hold talks with South Korean President Park Geun-hye. Thai Prime Minister Prayut Chan-o-cha on Wednesday also left for Busan for the meeting. Prayut will also have bilateral talks with the South Korean president and the king of Brunei, while meeting with delegates from leading
South Korean businesses, including Samsung Electronics, LG, Hyundai Motor and K-Water, said in a statement posted on the Thai government’s web site. The prime minister will take this opportunity to explain global and regional economic trends and the role of Asia in mobilizing world economy,
encourage Asean and South Korea to collaborate in mutually potential areas of business, and address Thailand’s economic policies and measures, such as those related to reduction of trade barriers, promotion of connectivity, and development of border economic zones, digital economy, and green economy, the
Charoen said to start due diligence for United Engineers
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HAILAND’S richest man Charoen Sirivadhanabhakdi is poised to start examining the finances of United Engineers Ltd., people with knowledge of the matter said, laying the groundwork for a potential acquisition of the Singapore property and construction company. Charoen’s TCC Top Enterprise Ltd. plans to begin due diligence on United Engineers and its WBL Corp. unit next week, the people said, asking not to be named as the process is private.
Palm oil. . .
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in the next few months,” David Ng, a Kuala Lumpur-based derivatives specialist at Phillip Futures Sdn., said by phone. “We are watching export estimates from the cargo surveyors very closely in the next few weeks. This will be shaping the market sentiment.”
Weaker ringgit
FUTURES rose as much as 1.6 percent to 2,165 ringgit on Bursa Malaysia Derivatives on Wednesday and traded at 2,164 ringgit at 3:25 p.m. local time. Prices closed at 2,336 ringgit on November 3, more than 20 percent above the 1,929 ringgit settlement on August 29, meeting the common definition of a bull market. Futures are down 19 percent this year. Exports climbed 1.7 percent to 407,425 tons in the first 10 days of December from the same period a month earlier, surveyor Intertek said on Wednesday. Malaysia’s palm imports
Lao. . .
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foreign firms to list on the SET while listing on other Asean markets. Sompop Sakpanpanom, chief executive of APM Lao, the financial adviser of PTL, said next year alone the company planned to bring two new IPOs to list on the LSXSuwanee Group, a building and construction materials trading company, and
Exclusive talks with minority shareholder Oversea-Chinese Banking Corp. (OCBC) and its insurance arm will expire six weeks after due diligence starts, according to an August filing. OCBC, its Great Eastern Holdings Ltd. unit and the bank’s founding Lee family own a combined 34.1 percent stake in United Engineers, according to a filing in August last year. Under Singapore rules, buying more than 30 percent would trigger a mandatory takeover offer for United
increased 19 percent to 98,940 tons last month, board data showed. While demand from China and Europe usually slows during the winter, duty-free exports and the weaker ringgit may boost shipments from Malaysia to countries like India and Bangladesh, Ng said. The tropical oil clouds in cooler temperatures. Malaysia scrapped an export tax for two months through October and extended the exemption to December to help boost shipments and curb stockpiles. The duty-free status may be kept in January as prices stay below a threshold for the tax. Indonesia cut taxes on most exports to zero for the last three months of the year. The two countries supply 86 percent of global output, the US Department of Agriculture estimates. Reserves in Indonesia probably climbed in November for the first time in three months after production increased and exports retreated from a six-year high. Stockpiles rose 7.1 percent to 2.25 million tons last month from October, according a Bloomberg survey. Bloomberg News Pongsawan Bank. Suwanee plans to be the first dual listing on the SET and LSX, he said. Sompop said APM Lao, a subsidiary of APM Asset Management, planned to bring 15 IPOs to list on the LSX. The company has been appointed financial adviser for many companies. “The LSX can be an interesting market for investment in light of its low price-to-earnings ratio of nine to 10 times, with attractive dividend yields of up to 8 percent to 10 percent,” he said. MCT
Engineers, which has a market capitalization of S$1.83 billion ($1.4 billion). Representatives for TCC, OCBC and United Engineers declined to comment or weren’t immediately available. On Wednesday is a public holiday in Thailand. Shares in United Engineers have jumped 26 percent since August 21, when news broke about Charoen’s talks to buy OCBC’s stake in the company. They have traded at an average S$2.84 since August 22, the day after OCBC disclosed
the discussions. United Engineers has been divesting assets after buying Singapore-based builder WBL Corp. last year for $725 million including debt. It reached a deal in October to sell a majority stake in an engineering and construction business, UE E&C Ltd., for S$230 million. In August United Engineers agreed to sell its car-dealership unit to Malaysia’s Samling Group for S$455 million and its MFS Technology business for S$124 million. Bloomberg News
CP Group plans more EU health-care investments
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H A ROEN Pokphand (CP) Group’s stake in a Swedish health-care company is a first step to other investments in the industry, said Tse Ping, vice chairman of the Thai conglomerate. Assets are relatively cheap in Sweden and cheaper than in other European Union countries such as Germany and France, Tse said in an interview in Stockholm on Tuesday. CP Group last month announced its first major European deal, a 63-million-krona ($8.3-million) equity stake in Karolinska Development AB. The Solna, Sweden-based company invests in research from scientists at Sweden’s largest medical university. CP also bought 273 million kronor of Karolinska Development convertible bonds. “Opportunity exists right now” in Sweden, Tse said. “With our previous experience in Asia, we believe we can combine the strength of the market in Asia with innovative capacity here in Sweden. We are quite worried that the scientists, the innovators, couldn’t get enough funding during this financial crisis period.” Bangkok-based CP Group is a conglomerate controlled by Thai billionaire Dhanin Chearavanont, who with his brothers has expanded the business into the country’s biggest agricultural group. CP Group has been expanding abroad, using deals to reach as far as Indonesia, Turkey and Vietnam. The group invested $9.4 billion in 2013 to become the largest investor in Chinese insurer Ping An Insurance Group Co.
Pharma subsidiary
THE Thai company also operates in the food, life sciences, retail and telecommunications industries, and had revenue of $41 billion in 2013. Its CP Pharma subsidiary focuses on health care and the life sciences, and part of that business is listed on the Hong Kong Stock Exchange as Sino Biopharmaceutical Ltd. CP Group plans to announce another collaboration in Sweden on December 11, Tse said. Karolinska Development, formed in 2006, has investments in more than 30 projects from Karolinska Institute, according to the company’s web site. The institute accounts for more than 40 percent of the academic medical research conducted in Sweden. Karolinska Development shares were unchanged on Tuesday at 15 kronor. The stock has slumped 51 percent this year. At a later stage, CP Group may initiate partnerships in Sweden that would enable it to bring Asian patients to Sweden for treatment, Tse said. “We are interested in all industries relating to health care and are planning to invest in research and development and also have a plan to bring high-end clients from Asia to Sweden,” he said. Tse is undeterred by the political turmoil in Sweden, which saw Prime Minister Stefan Loefven last week fail to get his budget proposal through parliament and call snap elections scheduled for March. Bloomberg News
statement said. Thailand will raised at the summit the subjects on development of economic cooperation, development of connectivity among people, support for South Korea’s promotion of peace and stability, as well as propriety within this region, according to the statement. PNA
Coffee exports from Indonesia seen sliding as local sales rise
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OFFEE shipments from Indonesia, the third-biggest producer, will probably extend their decline in 2015 as domestic consumption increases in the world’s fourth most populous nation. Overseas sales will tumble about 10 percent after dropping as much as 15 percent in 2014, from 480,000 metric tons last year, according to Irfan Anwar, chairman of the Association of Indonesian Coffee Exporters and Industries. Local demand will climb to about 350,000 tons in 2015, from 300,000 tons this year and 260,000 tons in 2013, he said in an interview. Shrinking supplies from Indonesia may support robusta futures, which have surged 21 percent in London this year as the market heads for its biggest shortage since 2006. The harvest in Vietnam, the top grower of beans used by Nestlé SA in instant drinks, is set to drop, a Bloomberg survey shows, while a drought has hurt trees in Brazil, the largest producer of arabica beans and the second-biggest supplier of robusta. “Coffee shops are growing with more creative products and better marketing programs,” Irfan said at a conference in Ho Chi Minh City on December 5. “There’s a new culture of drinking coffee. In the past, only old men drank it. Now teenagers also drink coffee.” Robusta traded at $2,030 a ton on ICE Futures Europe on Tuesday. Arabica, favored by Starbucks Corp., climbed 61 percent this year to $1.7875 a pound. Arabica’s premium over robusta was 86.62 cents, down 30 percent from a two-year high October 14.
there, so there is a lot of capacity for growth and it won’t be leveling out anytime soon,” Keith Flury, head of coffee research at Volcafe Ltd., a unit of trader ED&F Man Holdings Ltd., said in an interview. Vietnam is also seeing faster growth in local demand as the young generation favors coffee and many micro-roasters are emerging, according to Luong Van Tu, chairman of Vietnam Coffee & Cocoa Association, in an interview. Exports from Vietnam are rising as Indonesian shipments decrease. Sales are set to climb in 2015 because stockpiles were a record high at the end of September, Flury said at the conference. Exports in the first 11 months of this year jumped 35 percent to 1.58 million tons from a year earlier, according to estimates from the General Statistics Office. While the rate of consumption growth is probably similar in the two countries, the increase in demand is spurring Indonesia to boost imports, especially from Vietnam, Flury said.
World shortage
OVERSEAS purchases by Indonesia are estimated at 70,000 tons this year, said Irfan from the exporters association. The harvest will be about 700,000 tons in 2014 and in 2015, he said. The worldwide shortage of robusta beans will probably be 3 million bags of 60 kilograms (132 pounds) each in 2014 to 2015, wider than a previous estimate of 1.9 million bags, according to Volcafe based in Winterthur, Switzerland. Global coffee supplies, which also include arabica, will lag behind demand by 9.9 million bags, the company estimates. The crop in Vietnam will slide to 1.65 million tons in the year started October 1, according to a survey of 12 traders compiled by Bloomberg and published on December 2. That’s 3.5 percent less than the record 1.71 million tons a year earlier. Bloomberg News
New lifestyle
CONSUMPTION in Indonesia is driven by demand from young people, rising incomes, changing lifestyles and more knowledge about the beverage, Irfan said in a conference presentation. “There are so many people
Asean
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A mystery of redemption
EAR Lord, Your entire life is a revelation. What was visible in Your earthly life leads us to the invisible mystery of Your divine sonship: “Whoever has seen Me has seen the Father” (John 14:9). Furthermore, even though salvation comes completely from the cross and the resurrection, Your entire life is a mystery of redemption because everything that you did, said and suffered had for its aim the salvation of fallen human beings and the restoration of their vocation as children of God. Amen. COMPENDIUM OF THE CATECHISM OF THE CATHOLIC CHURCH, FR. SAL PUTZU, SDB AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com
Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com
Life
GIVE THE GIFT OF BOOKS ABOUT MOVIES »D4
BusinessMirror
Thursday, December 11, 2014
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The perks and quirks of large resorts
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B M T McClatchy-Tribune News Service
ARGE resorts are a significant draw for many travelers. All-in-one activity options, happy-hour offerings within easy walking distance, and included fitness classes make an attractive package when it comes to planning a low-stress getaway. There are perks and quirks with this type of vacation plan, however, and it pays to know what some of them are before you throw down your credit card. ■ Parking: One-stop vacation resorts provide the perk of only needing to coordinate parking upon arrival. After that, there isn’t necessarily a reason to deal with driving on unfamiliar streets, finding that missingin-action parking spot near the hottest downtown restaurant or experience any of the traditional parkingrelated stress unless you choose. Couples can enjoy drinks on site, rather than one person constantly having to play designated driver. The quirks? Parking is often nowhere near your room, which can be a huge pain if you forget something and need to run to the vehicle every time you want to swap out your hiking boots for that pair of dress shoes that you have in the bottom of your trunk. Parking is often available to resort guests only at an extra charge per day, which can add up quickly. Researching whether or not your resort of choice considers parking complimentary will keep this expense from being an inconvenient surprise. ■ Proximity: With free poolside music, onproperty dining and amenities such as spas, golf courses and concert facilities, it can be a relief not to have to spend valuable vacation time strolling the nearby streets to find things to do. Entertainment can easily be found just footsteps away from your room or cottage. That said, if you’re in the mood for instant access to relaxation, walking nearly a mile through meandering hallways and stairwells to get to the nearest swimming pool or access your massage appointment can feel like a bit of a drag to say the least. The best way to determine whether or not you’re up for a large resort experience is to think about how the size of the venue and number of other guests will make you feel. If the word that comes to mind is overwhelmed, then you might want to choose a more intimate escape and save the glitzier getaway for another time. The value of on-site activities is also something you want to research ahead of time, along with how many of them are included with your resort fee. If a venue charges a modest daily fee that grants you access to golf carts, tee times, spa discounts, beach yoga classes, kayaks and more, that’s one thing. If you are throwing down 40 bucks a day to access a less-than-stellar fitness center and still need to throw down extra monies to park your car, that’s another. You may find off-site attractions are a better value. It’s all part of the trip research it pays to do ahead of time. ■ Logistics: With pets, some resorts are OK with your occasionally chatty dog being in your room while you have an early on-property dinner, particularly if you leave the desk attendant with your cellphone number so you can be on standby. Compared to some of the accommodations they make for other travelers, this isn’t a huge stress. Personally, we don’t reward this consideration by staying out late. We book an early dinner so we are out of the room when most other
people are and back behind closed doors with our pooch long before most of our fellow travelers are returning and ready to go to bed. Not that we get the same consideration from their stereo-blasting teenagers, mind you, but we do our part regardless. Another perk with many of the larger resorts is that you stand a greater chance of having something for everyone when you travel with your entire family. With kid camp activities, bicycles, tennis court access and spin classes, the whole gang can have fun in one convenient location. As children age and interests diversify, this can be tough to accomplish under traditional vacation circumstances. On the other hand, coordinating communications efficiently can often cost you a pretty penny if your resort charges a daily Internet access fee that’s nearly a third of your monthly total back home. This is a tad ironic, since many of the mid-priced business hotels tend to include it for free and often do a better job providing decent access speeds. Definitely check in
advance to see if your Internet access on location will only be available for a charge. Whether or not you pay for it will be completely up to you, but at least you’ll be informed ahead of time. An additional quirk is repeated luggage loading and unloading. This is of particular concern at those resorts where parking near the suite isn’t an option for anyone, and resort employees need to take you and your luggage there by golf cart or shuttle. Factor in stairs from the cart lane down to a lower level and then up again to your second-floor entry, and you can see how things can get seriously annoying in a hurry. ■ Intimacy: Not only do you not always want to walk a long distance to the resort pool, you also might not want to share it with 60-plus people you don’t know. That’s where smaller resorts, or even private vacation rentals can shine. Impersonal can often be the default mode for mega-resorts, whereas many smaller places offer more personal service with absolutely no crowds to be found. That said, every resort is different. Some really
do it up right, with separate family and adults-only pools, private cottages and more. The right resort can still feel intimate and romantic for couples, depending on how set apart the accommodations are, immediacy of beach access, private pool availability and how the room service menu compares to the one at the restaurant across the property. Bottom line? Large resorts can be just what the travel doctor ordered, or less than suited for the vacation experience you’re trying to plan. Deciding exactly what you want before you book your trip, and researching as much as possible about the layout, ratings and amenities of the venue under consideration will go a long way toward making that determination. ■ 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.
Study reveals where to find the best hotels in the world AGODA.COM, one of Asia’s leading hotelbooking sites and part of Nasdaq-listed Priceline Group, has revealed the results of its most recent “Travel Smarts” study, which shows where to find the best hotels in the world. The study looked at nearly 7 million customer reviews on Agoda.com to see which destinations had the highest rated hotels. Overall, Cape Town, South Africa, took the No. 1 spot with the highest-rated hotels of any destination, scoring an average of 8.43 out of a possible 10. Location
Cape Town, South Africa Maldives Islands
Average Hotel Score 8.43 8.33
Zermatt, Switzerland Queenstown, New Zealand Seychelles Islands Budapest, Hungary Santorini, Greece Bruges, Belgium Gdansk, Poland Hoi An, Vietnam Sofia, Bulgaria Crete Island, Greece Verona, Italy Rotorua, New Zealand Khao Lak, Thailand Hualien, Taiwan Sunshine Coast, Australia Edinburgh, Scotland Cuzco, Peru Chicago, USA Krakow, Poland
8.29 8.28 8.21 8.16 8.14 8.12 8.10 8.10 8.09 8.07 8.07 8.06 8.03 8.03 8.02 8.01 8.00 8.00 8.00
Nagano, Japan Durban, South Africa Granada, Spain Marrakech, Morocco
7.99 7.96 7.95 7.95
The Maldives, the ever popular honeymoon spot, came in second with an 8.33 average hotel review score. Zermatt, a skiing village in the Swiss Alps at the base of the Matterhorn, was number three at 8.29. Though the Maldives and Zermatt are known for pricey, luxurious hotels, some of the destinations that made the Top 25 list are very budgetfriendly. Some of the highest ranked hotels in Cape Town are inexpensive B&Bs and small boutique hotels. In Budapest, hotels for less than $100 per night are the norm, and Hoi An in
Vietnam is filled with small B&Bs for far less; accommodations in both places consistently get very high review scores from Agoda.com customers. “People assume that you need to spend a lot of money to have an amazing vacation, but that is not true. There are fantastic places to stay at all price points and star ratings if you know where to look,” said Errol Cooke, vice president, Global Hotels. What these destinations do seem to Category Value for Money Location Staff Performance Hotel Condition/Cleanliness Room Comfort/Standard Food/Dining
have in common is a beautiful physical landscape, lots of activities or attractions for tourists, and a reputation for excellent service. Agoda.com users can submit reviews for hotels after every stay. In addition to their written remarks, they score hotels on a scale of 0 to 10 in six categories. A hotel’s total review score is an average of those numbers. Here are the top destinations by review category:
Location Budapest Sunshine Coast, Australia Cape Town Zermatt, Switzerland Cape Town Bruges
life Average Score 8.5 8.75 8.6 8.79 8.54 7.87
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| Thursday, deCember 11, 2014 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao
INDERMERE, Florida—The Ladies European Tour (LET) concludes its season in Dubai with a new sponsor that Laura Davies hopes will bring the circuit some more attention. Swiss-based Omega continued to expand its presence in golf when it announced a 10year partnership with the LET. The partnership includes Omega being the official timekeeper and the sponsor of the tour’s award for rookie of the year. It already is the title sponsor of the Omega Dubai Ladies Masters, and it recently signed a personal endorsement deal with English teenager Charley Hull. “We get big companies like Omega involved, that’s a step forward,” Davies said. “Because other multinational companies want to be involved with other multinational companies, so hopefully that will draw in some more big support, especially for the LET—more television for us. I know that’s one of the things our chief executive is trying to do, and if we get much more live TV, I think everything gets elevated.” In recent years, Omega struck up a partnership with the Professional Golfers’ Association (PGA) of America and the Ryder Cup (when it is played in America). It is title sponsor for two European Tour events (Switzerland and Dubai) and the finale on the LET. Hull is the youngest in an Omega stable that includes Rory McIlroy, Sergio Garcia, Greg Norman, along with Michelle Wie and Stacy Lewis. Hull, a star for Europe in its first Solheim Cup victory in America last year, narrowly missed out on her full Ladies PGA Tour card last week and received only conditional status. The 18-year-old is on the cusp of winning the LET
money title going into Dubai. “It is important to the brand that we show our appreciation of golf as a while, and we are happy to bring greater attention to the professional women golfers who are taking the game to a new, exciting level,” Omega President Stephen Urquhart said. DALY DOINGS JOHN DALY hasn’t had a week like this in some time. Not only did he win, he got engaged. Daly announced on Twitter last week that he popped the question to Anna Cladakis, whom he has been with for the last six years. “Tonite I asked my best friend, soul mate & no one better to marry me & she said yes!” Daly tweeted. Then, he shot a 63 in the second round of the Beko Classic in Turkey and went on to his first victory in 10 years. The tournament is not attached to any tour, and thus offered no ranking points. Daly earned $8,000 for the victory. It will be the fifth marriage for Daly, who is eligible for the Champions Tour in April 2016. ANOTHER AWARD EUROPEANS had such a banner year in the big events that their winning Ryder Cup team—normally the story of the year in golf—finished third in media voting for the Golf Writers Trophy. The British-based Association of Golf Writers voted Rory McIlroy as the winner for the second time in three years. McIlroy was the overwhelming choice after winning two majors (the British Open and PGA Championship), a World Golf Championship
and the BMW PGA Championship at Wentworth. The Golf Writers Trophy is awarded to the European who has made the most outstanding contribution to the sport. Martin Kaymer was runner-up after his wire-to-wire, eight-shot victory in the US Open at Pinehurst, along with his victory in The Players Championship. The Ryder Cup team, which had an easy time beating the US at Gleneagles, finished third. BUBBA FLOWER BED THIS might have been the first time Bubba Watson had a flower bed named after him. The weekend before the Hero World Challenge, someone sent the two-time Masters champion a photo from the seventh hole at Isleworth. One of the residents gave Watson the ultimate tribute by fashioning flowers to spell “Bubba” on the right side of the fairway. Watson, a member at Isleworth, said he plays in the money games with the neighbor and “he’s pulling for a guy who lives here.” “He didn’t ask me. He did it just for this week,” Watson said. “Somebody sent me a picture on Saturday or Sunday and said, ‘Hey, look at the flower bed.’ That’s the only time I knew about it. I thought it was funny. It would be like you doing something for your buddy or someone you like. I think he likes me.” AP
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» JOHN DALY is engaged.
Set within the 55-million-square-foot master community of Akoya Oxygen, the “Trump World Golf Club, Dubai” will include a state-of-the-art clubhouse, world-class restaurant and pro shop. The course will be situated at the heart of the development, with some of the highest premium, residential developments in Dubai overlooking the course.
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UBAI—Golf superstar Tiger Woods will design the new 18-hole championship golf course in Dubai to be built by luxury real-estate developers, Damac Properties and operated by The Trump Organization. Set within the 55-million-square-foot master community of Akoya Oxygen, the “Trump World Golf Club, Dubai” will include a state-ofthe-art clubhouse, world-class restaurant and pro shop. The course will be situated at the heart of the development, with some of the highest premium, residential developments in Dubai overlooking the course. “Tiger Woods is one of the most famous and iconic sportsmen in the world who will bring his design expertise and worldwide playing experience to this amazing development,” said Ziad El Chaar, managing director, Damac Properties. “Add to that the golfing prowess and skills of The Trump Organization, our leadership position in luxury real-estate development, with the global appeal of Dubai, we believe The Trump World Golf Club Dubai, designed by Tiger Woods, will be a market leader, judged against the best golf courses in the world.” “Bringing Tiger Woods to Dubai is a testament to the luxury and quality that can be anticipated at Akoya Oxygen—where fashion meets the outdoors, and green really is the new black.” Woods has already gained a strong reputation for golf course design, with projects under way in Mexico and the United States. His first course to open for play will be El Cardonal in Mexico, which is scheduled to open before the end of the year. In reference to the style of course that he is creating, Woods said: “I’ve been fortunate to play great golf courses all over the globe, from the original links courses in Scotland to the famous parkland courses in America and the distinctive layouts on the sandbelt of Australia. I hope to bring elements of those great courses and others to the Trump World Golf Club Dubai with the end result being a course that golfers will want to play again and again.” Woods has won 14 Majors in golf, second only to Jack Nicklaus, and is one of the most iconic sportsmen ever to grace the game. The two-time winner of the Dubai Desert Classic (2006 and 2008), who had previously looked at the opportunity to
design a course in Dubai, is now returning to realize that dream. He has won 105 tournaments, 79 on the Professional Golfers’ Association (PGA) Tour including four Masters Tournaments, four PGA Championships, three US Open Championships, and three British Open Championships. With his second Masters victory in 2001, Woods became the first player ever to hold all four professional major championships at the same time. “I can’t wait to see this stunning project come to life,” Woods added. “Dubai is fast becoming one of the most influential golfing destinations in the world, both for the professional game and for amateurs looking to enjoy the great weather, great courses and amazing lifestyle.” “We plan to create a distinct and memorable golf course that players of all abilities find enjoyable,” he added. “I am very much looking forward to adding to the great courses of Dubai.” Site preparation work on the Trump World Golf Club Dubai is already under way, with the course due to open by the end of 2017. This will be the Trump Organization’s 18th golf property in the world and marks the second worldclass course in Dubai with Damac Properties.
STRANGE SEASON
THE lost year for Tiger Woods because of back issues can be illustrated by three results from the Hero World Challenge. While he tied for last place in the 18-man field, it was Woods’s highest finish in the nine tournaments he entered in 2014. The tie for 17th topped his previous best, which was a tie for 25 in the World Golf Championship at Doral. Woods earned $102,500, his biggest paycheck of the year (on the golf course). In the seven PGA Tour events he entered, Woods made $108,275. He was awarded 3.16 points toward the world ranking, his second-highest points from any tournament this year. Woods received 3.58 points from Doral. For the year, Woods received 9.729 points, the fewest of any player from the top 200 in the world. Arab News
» TIGER WOODS to design golf course for Akoya Oxygen in Dubai. AP
sports
SLAMMING GRIZZ Grizz, the Memphis Grizzlies mascot, dunks the ball during a break between quarters of the Memphis-Dallas game on Tuesday in Memphis. The Grizzlies beat the Mavericks, 114-105. AP C2
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‘Anvaya Cove success shows potential of second-home market’ By VG Cabuag
TIGER ‘THE DESIGNER’ W
reemptive regulations of the Bangko Sentral ng Pilipinas (BSP) to prevent another real-estate bubble may slow the growth of the property sector, particularly in the residential segment, according to Jones Lang LaSalle (JLL) real-estate services firm.
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tiger ‘the Designer’ Sports
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The company, however, did not venture to give an estimate on the negative effect of the BSP regulations on the real-estate sector. “These controls may lead to stricter credit standards, which may lead to tapering off of demand for residential buyers, especially those that are heavily reliant on loans from banks. The potential slowdown in demand may lead to slower rolling out of projects by developers,” said Claro Cordero, head of Research and Consulting at JLL, during the company’s 2014 Year-End Report and 2015 Forecast. The BSP controls cited by Cordero include the proposed cap on banks’ real-estate loans to 60 percent of collateral value from the previous 80 percent; BSP Circular 839, or the Real-Estate Stress Test, introduced early this year; and the existing capping of real-estate loans at 20 percent of a bank’s total loan portfolio. The said regulations were put in place by the central bank to manage the risks attendant to banks’ exposure to the
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Tuesday, Thursday,November December18, 11,2014 2014Vol. Vol.1010No. No.4063
BSP curbs threaten property sector
asean leaders head to south korea meet
“President Aquino has decided to push through with the original plan to attend the 25th Asean-Republic of Korea Commemorative Summit. This is in keeping with the Philippines’s international commitments to Korea, which has always been a staunch partner and ally, our sister nation in Asean, and the rest of the global community,” Deputy Presidential Spokesman Abigail Valte said in a statement posted on www.gov.ph. “As Typhoon Ruby is set to exit the Philippine area of responsibility, reports from government representatives in the frontlines have consistently been encouraging,” Valte said, attributing the positive developments to the high level of preparedness achieved by the National Disaster Risk Reduction Management Council (NDRRMC) and concerned local government units. She said the President will keep tabs on developments in the areas affected by the typhoon. “Rest assured that the President has been closely monitoring the situation, and will continue to do so, even as he represents the country in
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JONES LANG LASALLE SAYS STRICTER CREDIT STANDARDS TO AFFECT DEMAND, ROLLOUT OF NEW PROJECTS
INSIDE
B3-2 Thursday, December 11, 2014
A broader look at today’s business
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yala Land Premier on Wednesday said it has been able to sell most of the units in its 470-hectare Anvaya Cove in Morong, Bataan. Jose Juan Jugo, Ayala Land Premier group head and Ayala Land Inc. vice president, said it sold close to P9 billion of its total inventory in Anvaya Cove, the company’s first venture in leisure real-estate development. “Sales started from the Anvaya launch in 2005. Velocity picked up since we formally opened the beach and nature club in 2008, then it continued to perform well, especially when we opened the golf and sports club,” Jugo said in a briefing with reporters. See “Anvaya,” A8
PESO exchange rates n US 44.5820
‘MISERANDO ATQUE ELIGENDO’ Dondon Awa, 52, shows a photo of Pope Francis on his tablet which he used as model to carve an image of the pontiff at his shop in Manila. Sales of statues of the pope and the Santo Niño are expected to rise as the papal visit nears, since Pope Francis will be celebrating a huge Mass at the Quirino Grandstand in Manila on the feast day of the Santo Niño. The personal motto of the pope is miserando atque eligendo, which means lowly but chosen. ALYSA SALEN
GLOBAL GROWTH SEEN ACCELERATING IN 2015
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lobal economic growth will accelerate moderately next year, and some economists predict that the bull market in equities can continue to rally, although at a slower pace. The global real gross domestic product (GDP) growth is projected to reach 3.7 percent next year, compared with 3.2 percent this year, economists at Bank of America Merrill Lynch said recently at a year-ahead outlook news conference. The US GDP growth is forecast to be 3.3 percent in 2015, higher than the 2.3 percent forecast for 2014. Robust US economic growth continues to outpace the rest of the world, boding well for US employment, wages and housing in 2015, the economists said. See “Global growth,” A2
Difficulties faced by trade partners to hurt exporters By Cai U. Ordinario
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he “economic difficulties” experienced by the Philippines’s trading partners could dampen export growth in the near term, the National Economic and Development Authority (Neda) said on Wednesday. Socioeconomic Planning Secretary and Neda Director General Arsenio M. Balisacan said the country’s export performance in October already reflects this. Export growth during the period eased to 2.9 percent from 14 percent in the same
BALISACAN: “We must remain vigilant, as the October performance of the exports sector generally reflected the softening of the country’s main trading partners. ”
month last year. Export growth in October was the slowest since April 2014, when Continued on A2
n japan 0.3728 n UK 69.8555 n HK 5.7505 n CHINA 7.2075 n singapore 33.8846 n australia 37.2044 n EU 55.1613 n SAUDI arabia 11.8812 Source: BSP (10 December 2014)
News BusinessMirror
A2 Thursday, December 11, 2014
Calax. . . continued from a8
process could now move forward as Team Orion’s decision clears a roadblock to the tender. “We did not receive any appeal from them,” he said in a phone interview. Angeles explained that the government gave the consortium 15 days to file an appeal. The group was allowed to seek legal recourse until December 10, Wednesday. Despite this, the agency would still have to wait for a few more days before officially opening the auction process through a published invitation to bid. “We can’t start the bidding process this week. But we will try to publish the invitation within the month. We are awaiting the President’s approval of the terms of reference and the bid process itself,” he explained. The auction, Public Works Secretary Rogelio L. Singson said, would be conducted under the same terms and conditions of the initial bidding. It will also be implemented under a single-stage bidding process. But despite having the same terms as the original tender, the agency will include the provision of a floor price of P20.1 billion in premium to ensure the government will receive a higher amount from the private sector. President Aquino late last month decided to void the outcome of the deal’s original bidding, with Team Orion emerging as the top bidder with a premium bid of P11.33 billion. The President’s decision came after four months of reviewing the petition of thendisqualified party San Miguel Corp., which urged Malacañang to declare its allegedly P20.1-billion bid as compliant. Optimal Infrastructure Development Inc., a unit of the food-to-infrastructure firm, was disqualified from the initial tender after failing the evaluation of its technical proposal. The firm’s bid bond, a form of security that supports the company’s claim that it has the financial capability to finish the project, was four days short of the required period. The government expects to receive higher investor participation in the second auction for the deal. But the four original bidders are currently at loggerheads over their participa-
tion in the fresh tender. Optimal, chaired by businessman Eduardo Cojuangco Jr., an uncle of President Aquino, is firm in its decision to make a bid for the project anew. Metro Pacific Investments Corp., which trailed Team Orion in the original auction, is still weighing the economic and political implications of the original auction. It, however, renewed its bid bond, signifying its intention to join the fresh tender. Team Orion and MTD Philippines Inc., on the other hand, are already disinterested in the deal. The latter will take a look at the contract’s new terms, but would more likely shy away from the auction. Influential business groups earlier warned President Aquino that his key infrastructure program’s good name may lose its credibility due to inconsistencies in rules, not to mention a violation of the law. On the other hand, the Philippine Chamber of Commerce and Industry (PCCI), the largest business group in the Philippines, backed Mr. Aquino’s decision, as this would maximize the economic benefits of the state from the bidding. The project is a 47-kilometer thoroughfare that will link the Manila-Cavite Toll Expressway and the South Luzon Expressway aimed at enhancing trade and socioeconomic activities in the region. The private partner will take on the financing, design, construction, and operation and maintenance of the entire four-lane toll road. The project will also include the construction of centralized toll plazas, a toll-collection system, viaducts and bridges. The construction of the multibillion-peso expressway is seen to start by October next year and is expected to be completed in September 2017. But with the rebidding, this timetable might be pushed back by a year or two. The government has awarded eight contracts since the infrastructure program’s inception in 2010. It aims to sign at least 15 contracts by the time President Aquino steps down from office in 2016.
Difficulties faced by trade partners to hurt exporters Continued from A1
export earnings grew only 1.3 percent. The country’s revenues from exports reached $5.17 billion, higher than the $5.02 billion posted in the same month last year. “We must remain vigilant as the October performance of the exports sector generally reflected the softening of the country’s main trading partners. Major economies, such as Japan, China and the Euro area are facing a myriad of economic difficulties, which could dampen exports growth in the short run,” Balisacan said. Despite the lackluster performance of the export sector in October, the Philippines remains on track in hitting its export growth target of 10 percent for 2014. In the 10 months to October, total export revenues reached $51.76 billion, up by 9.2 percent from $47.41 billion in the same period in 2013. Electronic products remained as the country’s top export with total receipts of $2.22 billion, accounting for 43 percent of the total export revenues in October. While receipts from outward shipments of electronic products grew by 4.5 percent during the period,
“We think the US will enjoy above-trend growth in the next two years,” said Ethan Harris, co-head of Global Economics Research at Bank of America Merrill Lynch. “What’s happened in the US is after the 2008-2009 crisis, we really had substantial healing in the economy, with banks normalizing, the housing market normalizing and household balance sheet improving,” Harris said. The US, which is becoming a bigger oil producer, will benefit from low oil prices, and that’s going to have
DECEMBER 11, 2014 | THURSDAY
Tropical Storm is a cyclone category with winds of 64 - 118 kph. Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rains and showers.
the increase was slower than the 12-percent year-on-year hike posted in October 2013. Among the major groups of electronic products, semiconductors comprised 29.5 percent of total exports. Export earnings derived from the shipment of semiconductors reached $1.52 billion, 6.9 percent higher than the $1.42 billion recorded in October 2013. “For the fifth consecutive month, exports of electronic products grew by 4.5 percent, at $2.2 billion from $2.1 billion in October 2013, backed by robust sales of semiconductors, consumer electronics, control and instrumentation, medical and industrial instrumentation, telecommunication, communication/ radar, and office equipment,” the Neda said. Meanwhile, the decline in international prices of crude oil affected the country’s earnings from petroleum exports. With a total sales receipt amounting to $54.3 million in October, it is lower by 4.4 percent, from $56.84 million recorded in the same period a year ago. Similarly, outbound shipments of forest products contracted by 32.5 percent, from
TROPICAL STORM “RUBY” (HAGUPIT) WAS LOCATED AT 350 KPH NORTHEAST OF PAGASA ISLAND, PALAWAN.
DEC 12 FRIDAY
another extra kick to the economy, Harris said. Emerging markets should experience moderate acceleration in 2015, with economic growth in emerging markets expected to improve to 4.5 percent next year, up slightly from a disappointing 4.2 percent growth in 2014. The economists noted that the improvement in emerging markets’ growth next year should be driven by stronger US growth, lower energy prices and cyclical rebounds in a few large economies, like Brazil and India.
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Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).
Cloudy skies with rain showers and/or thunderstorms. Light rains
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SABAH
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In comparison, they believed the euro-area economy is expected to grow 1.2 percent in 2015, from 0.8 percent this year. However, the anemic growth cannot fix problems Europe is facing. The economists also pointed out that low inflation is driving policy across the world. “Low inflation slows the Federal Reserve’s exit from quantitative easing, speeds quantitative easing in Europe, keeps the Bank of Japan expanding and allows China and India to add stimulus until growth is restored,” Harris noted. PNA
METRO CEBU
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$7.97 million in October of previous year to $5.38 million in October. “This period’s positive performance, despite the decline in three commodity groups, puts us in a relatively better position than our neighbors because we managed to sustain growth amid weak exports performance of almost half of the trade-oriented Asian economies,” Balisacan said. The top 3 export markets of the Philippines in October were Japan, including Okinawa, which accounted for 21.7 percent, followed by the US including Alaska and Hawaii with 15.1 percent and China with 12.5 percent. Exports to Japan amounted to $1.12 billion. It increased by 4.7 percent, from $1.07 billion recorded in same month a year ago. Shipments to the US reached $779.19 million in October. This recorded was 7.5 percent higher than the $724.57 million posted in same month last year. Export earnings for products shipped to China amounted to $644.41 million. However, it declined by 3 percent, from $664.53 million a year ago.
Global growth. . . continued from a1
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Editor: Dionisio L. Pelayo • Thursday, December 11, 2014 A3
Purisima asks CA to stop his suspension
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By Joel R. San Juan
HE embattled National Police chief, Director General Alan LM Purisima, has asked the Court of Appeals to stop the Ombudsman from implementing her order, placing him and 17 other police officials under a six-month preventive suspension pending investigation into their alleged involvement in an anomalous contract that the force entered into with a courier service in 2011.
In a petition for certiorari filed through his lawyer, Kristoffer James Purisima, the National Police chief asked the Court to issue a temporary restraining order or a status quo ante order or a writ of preliminary injunction prohibiting Ombudsman Conchita Carpio-Morales from enforcing the suspension order she issued on December 3. Purisima also asked the appellate court to eventually nullify the Om-
budsman’s order for “having been issued with grave abuse of discretion.” Purisima argued that the Ombudsman has no basis to order his suspension, considering that his approval of the memorandum issued by Director Gil Meneses, then-Civil Security Group (CSG) chief, was just mandatory on his part, thus, does not constitute gross negligence or gross neglect of duty or both. “With all due respect, it is clear
and undeniable grave abuse of discretion amounting to lack or excess of jurisdiction for respondent to order petitioner’s preventive suspension on the mere reliance on assumptions, conjectures and suppositions that have no merit whatsoever,” Purisima stressed. Purisima pointed out that when he approved the recommendation in the memorandum dated February 12, 2014, it was only on the manner of giving firearms license cards, that is by delivery to the gun owners’ registered addresses, and nothing else. “Otherwise stated, petitioner merely approved as mandatory the use of a courier service as the means to deliver firearms license cards to gun owners, as opposed to gun owners picking up said firearms license cards at the National Police Firearms and Explosives Office [FEO],” Purisima said. “With all due respect, by whatever stretch of the imagination, that is hardly evidence of petitioner’s alleged gross negligence or gross neglect of duty or both, which connotes a breach of duty that is flagrant and palpable. No such breach of duty exists on the part of petitioner,” he added.
Binay’s survey-rating drop no cause for worry–legislator By Recto Mercene
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N opposition stalwart has downplayed the latest Pulse Asia survey results showing Vice President Jejomar C. Binay’s numbers again plunging by 5 percentage points—from 31 points in the third quarter to 26 points in the last quarter of 2014. “What is important here is that the feared free fall in Vice President Binay’s numbers has been arrested,” says Nationalist People’s Coalition (NPC) Rep. Sherwin “Win” Gatchalian of Valenzuela City. “His biggest drop was during the third- quarter survey, when his numbers dropped by a whopping 10 points, from 41 to 31. The VP’s 5-percent drop in the latest survey could be considered as marginal.” Gatchalian said, “The fact that Vice President Binay is still the presidential front-runner, up by 8 percentage points from second placer Sen. Grace Poe, is a strong indication that he is still the top choice by the majority of the Filipino people to lead the country, “if the 2016 elections were held today.” Results of the nationwide survey, conducted from November 14 to 20, showed that Binay continued to lead the pack of
potential candidates for president, with a 26-percent rating. The survey covered 1,200 respondents, 18 years old and above, and has a margin of error of plus or minus 3 percentage points. “VP Binay’s current ratings have already reached the bottom, meaning that there is no way for the Vice President’s number to go but up. They have thrown everything at him, including the kitchen sink. And despite the massive negative media attacks, Binay is still the top choice for president,” Gatchalian pointed out. Gatchalian attributed the staying power of Binay in the presidential race not only “on his solid track record as local chief executive for 20 years but also on his appeal and charisma to ordinary Filipinos in the provinces.” He added that Binay’s detractors overdid their negative campaign by including issues like the Makati City condominium and the Dingalan, Aurora, property, which turned out to be kuryente, or bum steer, but which some media entities accepted as “gospel truth.” “The public has a saturation point, wherein an overload of information will result in confusion and subsequent perception that everything being thrown against Vice President Binay is pure political propaganda,” Gatchalian said.
Police blame BIFF for fatal Bukidnon bus bombing
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AGAYAN DE ORO CITY—The regional police here has tagged the Bangsamoro Islamic Freedom Fighters (BIFF) as responsible for the Tuesday bombing of a passenger bus in Bukidnon. Supt. Bernardo Mendoza, the spokesman for the National Police Northern Mindanao command based in Camp Vicente Alagar here, said that police investigators in Bukidnon are 80 percent certain that the bombing was the handiwork of the BIFF. He said that the National Police regional command received an initial report that nine people died on the spot, some of them students of the Central Mindanao University (CMU), in Maramag, Bukidnon. The number climbed to 11, however, in subsequent reports as two of the wounded victims died later in the hospital. Mendoza said the passenger bus owned by the Rural Transit Mindanao Inc. (RTMI) left Wao, a town in Lanao Del Sur, about 3 p.m. last Tuesday en route to this city. He said the bus made a stopover to
pick up eight passengers in front of the CMU, a state-owned university that specializes in agriculture, forestry and animal science studies. “The bomb, an improvised explosive device, exploded inside the bus about 100 meters from the CMU gate,” Mendoza said. He said that police have tagged the BIFF responsible for the bombing since the homemade bomb was similar to the one that exploded inside the RTMI passenger bus a month ago on November 6 in San Fernando, Bukidnon. “No one was killed in the November 6 explosion, but four passengers were treated for minor shrapnel wounds since the bomb exploded at the back of the bus,” Mendoza said. He said the motive for the bombing was extortion since the bus company refused to give in to the BIFF demand about two years ago. Mendoza said police investigators have already filed charges against Amir UmraKato, the leader of the BIFF, and his followers in connection with the November 6 bombing of the RTMI bus. PNA, Rene Acosta
PURISIMA: “With all due respect, it is clear and undeniable grave abuse of discretion amounting to lack or excess of jurisdiction for respondent to order petitioner’s preventive suspension on the mere reliance on assumptions, conjectures and suppositions that have no merit whatsoever.”
In addition, Purisima said, he relied on good faith on the regularity in the performance of duties of his subordinaes when he approved the recommendation. In the said memorandum, Meneses informed Purisima that Werfast Documentary Agency was accredited as courier for the delivery of approved firearms license cards to gun owners after complying with all the documentary requirements under the FEO Policy on Accreditation. But based on the complaint filed before the Ombudsman by a certain Glenn Gerard Ricafranca, Purisima, along with other police
officials, entered into a contract with Werfast in 2011 for the delivery of firearms license cards even without proper accreditation. According to the Fact-Finding Investigation Bureau of the Office of the Deputy Ombudsman, the company was accredited two years after it signed the contract with the National Police. The accreditation was approved by Meneses, then-CSG head, and subsequently approved by Purisima in 2013. Purisima was installed as National Police chief in December 2012, when President Aquino cut short the watch of Director General Nicanor Bartolome, who retired months before reaching the mandatory retirement age of 56. The fact-finding investigation also uncovered that the company was incorporated only after the execution of the agreement. Its capitalization stood at P65,000. However, Purisima argued that he was not obligated to personally verify the entire records in relation to the accreditation of Werfast, and that he can rely on the recommendations of his subordinates without any showing of irregularity.
Purisima also denied the Ombudsman’s finding that he conspired with the other police officials in implementing the contract. “It should be emphasized that no evidence whatsoever is offered either in the complaint...or in the assailed order to establish that petitioner committed any acts pointing to his participation in the alleged conspiracy. Neither the complaint... did not offer any evidence to establish that petitioner supposedly made it mandatory to use Werfast ...for firearms license deliveries,” the petitioner added. He added that there is also no necessity to place him under preventive suspension since, contrary to the claim of the Ombudsman, he is in no position to tamper with evidence or influence the testimonies of witnesses, since it is not the National Police that is investigating the case. “The implementation of the assailed order despite the absence of substantial evidence with grave abuse of discretion would result in petitioner’s unsullied reputation in public service being unduly tarnished and besmirched by an administrative charge that is without basis in fact and in law,” he added.
Economy
A4 Thursday, December 11, 2014 • Editors: Vittorio V. Vitug and Max V. de Leon
BusinessMirror
news@businessmirror.com.ph
Typhoon Ruby affects 800,000 workers–ILO
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By Cai U. Ordinario
part from infrastructure and agriculture damages, Typhoon Ruby (international code name Hagupit) also affected the jobs and sources of livelihood of 800,000 Filipinos.
The International Labor Organization (ILO) said that about 370,000 of these workers were in vulnerable employment, living in poverty and accepting whatever work is available to them. “Eastern Visayas accounted for the highest share of affected workers after Typhoon Ruby, and most of them are still recovering from income lost to Supertyphoon Haiyan [or Yolanda last year],” the ILO said. Over 350,000 workers, or roughly 20 percent of the total, employed in Eastern Visayas were affected by Ruby. Of these, more than half were in vulnerable forms of employment. Initial ILO estimates covered eight regions in the country battered by the typhoon—Eastern, Central and Western Visayas, Caraga, Bicol,
Calabarzon (Region 4A), Mimaropa (Region 4B) and Metro Manila. These numbers may not bode well for the country’s employment situation in the near term, considering that almost half a million Filipinos joined the ranks of the underemployed based on the October issue of the Labor Force Survey (LFS). The Philippine Statistics Authority (PSA) on Wednesday said that while the employment and unemployment rates improved, the underemployment rate worsened to 18.7 percent. The PSA explained that underemployed persons who work for less than 40 hours in a week are called visibly underemployed persons. “Challenges to uplift the quality of employment across sectors remain. Hence, the government needs to sus-
Bicam approves proposed P2.606-T 2015 natl budget
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he bicameral conference committee on Wednesday approved the proposed P2.606trillion national budget for 2015, with total realignments amounting to P72.542 billion. It took only a little over five minutes for the bicameral members to adopt the committee report, which will be sent back to the House and the Senate for ratification before it will be submitted to Malacañang for signature of President Aquino. Senate Finance Committee Chairman Francis Escudero said the bicam panel did not reduce the ceiling but realigned P72.542 billion, a big chunk of it came from the unprogrammed funds within agencies. He said the bicam panel also agreed to not restore the P53.9 billion for the buyout of the Metro Rail Transit (MRT) Line 3. “What was restored for MRT 3 is payment for the remaining 15-percent outstanding bonds, which is approximately P4 billion and P6.6 billion for tax in connection with BOT [build-operate-transfer] contract,” Escudero told the Senate media after the bicam meeting. He said a big part of the P53.9 billion has been realigned to rehabilitation fund of the calamity-hit areas, and also for rehabilitation of MRT 3, amounting to P5 billion. Escudero said the bicameral committee also removed the P8 billion allotted by the Department of Budget and Management for the Bangsamoro entity. “If the Bangsamoro basic law will be approved, there will be a Bangsamoro transition commission which will handle the ARMM [Autonomous Region in Muslim Mindanao] fund amounting to P24 billion. That’s enough [for Bangsamoro],” Escudero said. The Senate finance panel chief said the bicam committee also adopted almost all of the Senate definition on savings in accordance with the Supreme Court decision declaring some provisions of the Disbursement Acceleration Program illegal. “Almost all. They cannot declare savings if the projects did not push through because of their own faults,” Escudero explained. The bicam, according to Escudero, also approved the P2-billion contingency fund for the Office of the President and P14-billion allocation for the National Disaster Risk Reduction and Management, formerly named Calamity Fund. Escudero said P1 billion each for the Quick Response Fund of the
departments of Social Welfare and Development, Health, Public Works, and Science and Technology for relief and rehabilitation. “Actually, the P1 billion is not enough. For the airport of Tacloban alone, if it will be repaired, that [P1 billion] is not enough,” he said. The Department of Education will get the largest budget next year, amounting to P323.56 billion, followed by the DPWH, with P292.57 billion; DSWD, with P109.34 billion; Department of the Interior and Local Government, with P104.57 billion; and the Department of National Defense, with P99.92 billion. Escudero said the Senate might ratify the bicam report during its Wednesday afternoon session.
Early transmittal
Malacañang expects early transmittal of the Congress-approved final version of the P2.606-trillion national budget for 2015 before lawmakers go on their Christmas vacation next week, so President Aquino could sign the annual money measure into law before year-end. “We look forward to the final steps of getting the approved budget bill from the bicam to the President’s table,” Deputy Spokesman Abigail Valte said on Wednesday, referring to the final version adopted by a bicameral committee that reconciled conflicting provisions in the budget bills separately passed by the Senate and the House earlier. “We’d like to thank our fellow workers in Congress and in the Senate for devoting their time and attention to the crafting of the national budget,” Valte said. She noted that the budget debates in both chambers “have been very vigorous” but reports said it took the Senate-House conference committee no more than five minutes to agree and adopt the bicameral panel’s final version of the 2015 budget. “Both sides have been called to produce the numbers, to produce the basis for our submissions, and we thank them for that,” Valte said. The Palace official acknowledged that Executive officials defending their respective department’s budget proposals before the lawmakers “always go through a very rigorous process of deliberations when it comes to the national budget.” Valte, however, declined to go into details of the approved 2015 budget, saying she would defer to Budget Secretary Florencio B. Abad, who, she said, is “entirely more knowledgeable about the submissions to Congress.” PNA with Butch Fernandez
tain the implementation of multidimensional approach to raise investments, particularly in the rural areas, and improve productivity, as well as income per capita in the country. It is also important to encourage income diversification and labor mobility in and out of agriculture,” Socioeconomic Planning Secretary Arsenio M. Balisacan said. This increase placed the number of underemployed Filipinos at 7.28 million in October 2014. This was 490,000 more than the 6.79 million recorded in October 2013. It can be noted that the latest PSA estimates did not include the province of Leyte, which is still reeling from the damage wrought by Yolanda and now has also suffered from the brunt of Ruby. “For purposes of comparing with the October 2014 results, the October 2013 labor and employment indicators were computed using the October 2013 LFS data that excludes those for the province of Leyte,” the PSA said. By comparison, the underemployed persons who worked for 40 hours or more in a week made up 41.6 percent in October 2014. By sector, 42.3 percent of the
underemployed worked in the agriculture sector, while 41 percent were in the services sector. Those in the industry sector accounted for 16.7 percent. The jobless rate, meanwhile, eased to 6 percent in October 2014, from 6.4 percent in October 2013. This placed the total number of unemployed Filipinos at 2.48 million, lower than the 2.6 million posted in October 2013. The National Economic and Development Authority (Neda) said the October unemployment rate was the lowest recorded since April 2005. “It is worth noting that workers with higher educational attainment registered higher unemployment rates compared to workers with lower-grade completion. This further supports the view that the lower income group [or those whose workers with lower educational attainment] can not afford to be unemployed, while the more educated can prolong the time spent looking for work,” Balisacan said. Among the regions, the unemployment rate in Metro Manila was at 9.8 percent; Ilocos region, 7.5 percent; Central Luzon, 7.4 percent; and Calabarzon, 7.1 percent, had
unemployment rates higher than the national figure. PSA data showed that the country’s employment rate in October was at 94 percent, higher than the 93.6 percent posted in October 2013. In October 2013 workers in the services sector accounted for 53.4 percent of the total employed, with those engaged in wholesale and retail trade, or in the repair of motor vehicles and motorcycles, making up the largest proportion at 35.3 percent of workers in services sector. To help the government address the situation, the ILO said it stands ready to allocate $1.5 million to support the government through emergency employment and sustainable livelihood. Emergency-employment programs guarantee minimum wage, extend social security, health and accident-insurance coverage, and ensure safety at work through the presence of on-site medical support and provision of personal protective equipment, such as mask, hat, gloves, boots and protective clothing. “We’re not only putting muchneeded cash into these areas, but also helping affected workers to develop new skills, to earn a decent
wage and access better working conditions, including social-protection coverage. These are not just labor rights but also basic human rights, which we need to take into account in times of crisis and disaster,” ILO Philippine Country Office Director Lawrence Jeff Johnson said. Working closely with the government, employers’ and workers’ organizations and the Humanitarian Country Team, the ILO will support partners and assist affected regions to ensure decent work and livelihood is at the forefront of recovery. The Department of Labor and Employment (DOLE) has further set aside funds for emergency employment. Labor and Employment Secretary Rosalinda Baldoz activated the DOLE Quick Response Team to immediately help displaced workers. In 2013 the ILO emergency-employment program in areas affected by Yolanda contributed to massive efforts for debris clearing and repair of critical community facilities and infrastructure. Emergency employment has now transitioned to medium-term labor-based community work, skills training and enterprise development in affected areas. With Estrella Torres
For Europeans, connectivity not security is prime concern in Mindanao travel By Ma. Stella F. Arnaldo Special to the BusinessMirror
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OR Europeans, touring Mindanao doesn’t hinge on peaceand-order issues, but on concerns on air/land connections. This was the assessment of Tourism Assistant Secretary for Mindanao Arturo Boncato Jr., who had just arrived from the World Travel Market (WTM) in London, the secondlargest travel fair and exhibit in the global tourism industry. “You know we were never really faced with those types of questions on peace and order or security, even if they knew we were selling Mindanao destinations,” said Boncato, on the sidelines of the launch of the Department of Tourism’s “Countdown to Christmas: Celebrating the Regions” exhibit. Featured until the end of this week are the different regions in Mindanao and their respective products. He added: “Their question usually was, ‘What else can we do there?’ And connectivity was more an issue for them: ‘Ah, you mean we have to go through Manila?’ It’s a good development because the fact is, even if parts of Mindanao are in their travel advisories, they’re not totally banned from traveling anyway. So it’s getting the interest of individuals and smaller groups to visit.” Pioneering flag carrier Philippine Airlines (PAL) has a direct service between London and Manila, and will soon be offering other routes in Europe. Several local carriers also fly direct services between Manila or Cebu to various destinations in Mindanao. “Like when we talk about Siargao, for instance, really, we were just talking about surfing, but when the conversation progresses, they were asking for more [things to do], so we introduced different activities. For Camiguin, it’s an island so it’s a ‘sun and beach’ destination. For Zamboanga, it’s our link to Europe or our main link to the Spaniards way of living. It’s the seat of history and heritage because of Fort Pilar there, the National Museum, etc.,” Boncato said. It also helps that Europeans are Internet-savvy and read about other foreigners’ experiences about the Philippines in travel blogs and web sites, like TripAdvisor, he said. Data from the Department of Tourism (DOT) showed in 2012, total visitor arrivals in Mindanao reached 4.74 million, of which 243,626 were foreign tourists. The data do not include the
Leticia Tan, Caraga regional director of the Department of Tourism (DOT), explains to a Philippine Pavilion visitor the exciting adventures in Siargao, Mindanao’s surfing capital. The DOT noted Europeans were more concerned about connectivity rather than peace--and-order issues in Mindanao. Art Boncato, DOT-Mindanao
Autonomous Region in Muslim Mindanao. Mindanao made a strong showing at the WTM in London from November 3 to 6. The DOT has been trying to attract more Europeans to visit the Philippines because they stay longer and spend more in the places they travel. No longer able to hit its visitor arrivals targets, the DOT is aiming to reach its tourismreceipts targets instead. For 2014, the tourism-receipts target is P1.41 trillion, and for 2015, P1.56 trillion. The DOT said its 155-man delegation was, “by far, the largest” in the history of its attendance at WTM. It also inked a major deal with a leading youth tour specialist, aside from the already announced agreement with Global Tourism Interface Network. (See “Tourism dept ties up with international marketing group to boost PHL’s online presence,” in the BusinessMirror, November 7, 2014.) In a news statement, the DOT said, under its agreement with STA Travel, a campaign targeting young travelers between 19 and 35 years old will be undertaken for a year in key European markets, such as Austria, Australia, France,
Germany, Switzerland and the United Kingdom. The partnership aims to increase youth travel to the Philippines by 80 percent to 100 percent, or an additional 8,000 visitor arrivals over a 12-month period. Richard de Villa, sales and promotions officer at the Philippine Embassy London, said participants also signed “numerous individual deals” during the travel fair. “WTM 2014 for the Philippines has been a bumper event,” he noted. “It has, by far, been the largest yet on many fronts, including publicity, number of destinations represented and the size of the delegation. Most of our private-sector partners, including tour operators, hotels and resorts, reported the inclusion of Philippine packages by new tour operators in the UK. The likes of Ethos Travel and Tropical Sky, to name a few, have said they will soon be featuring the country in their destination portfolio,” he added. The DOT and its marketing arm, the Tourism Promotions Board, also unveiled events for the “Visit the Philippines Year 2015”
(VPY 2015). The campaign aims to attract 8.2-million-visitor arrivals that year, when major international events will be held, starting with the visit of Pope Francis in January; the Madrid-Manila Fusion in April; the Apec Leaders Summit in November with several presummit conferences, as well as sports events. Among the 155 Filipino delegates were representatives from nine local government units, 35 private-sector partners that included PAL, which relaunched its London-Manila service last year, after an absence of 15 years. The Philippines also took full advantage of the new WTM Festivals program, which saw exhibitors hosting networking events and parties on their stands on Day Three of the event. More than 50 performers who took part in the Philippines’s festival, including national dancers, beatboxers, hip-hop performers, West End stars and a percussion group, entertained a 700-strong crowd. Event organizers expected some £2.5 billion, or P154 billion, in global industry deals to be closed during the four-day WTM 2014.
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briefs d.o.e. scrutinizes commercial viability of biliran power project
THE Department of Energy (DOE) is closely evaluating the geothermal project of Biliran Geothermal Inc. (BGI) before it issues a certificate of confirmation of commerciality. Once the certificate is issued, BGI can proceed with the construction of the power facility. “Depending on further drilling, we are a little cautious if they can deliver 40 to 50 megawatts [MW]. It depends upon the data they will give us,” Energy Secretary Carlos Jericho L. Petilla said. The Biliran geothermal project is at the town of Biliran, province of Biliran. It is targeted to be in full operation by 2016, augmenting power supply in the Visayas. “Initially, their successful identification of resource was indicated at 20 MW, but declaration of commerciality is for about 40 to 50 MW,” Petilla said. BGI has already applied for the issuance of the certificate. When ask if the DOE will grant it the certificate, Petilla said, “Based on declaration of commerciality they filed, they have fully identified 40 to 50 MW. They will just redevelop holes. Then, it's a power plant.” Lenie Lectura
former legislator files technical malversation raps vs dbm’s abad
A former Iloilo lawmaker on Wednesday filed technical malversation charges against Budget Secretary Florencio B. Abad in connection with the implementation of the controversial Disbursement Acceleration Program, part of which was declared unconstitutional by the Supreme Court. In a 17-page complaint-affidavit, former Iloilo Rep. Augusto Syjuco Jr. said that Abad allegedly committed the crime of malversation when they misappropriated public funds on projects, activities and programs which are not included in the approved General Appropriations Act (GAA). The complainant also said that Abad committed the crime of malversation when the DBM allocated P4.5 billion for Metro Rail Transit 3 to purchase “additional train cars,” when, in fact, according to the Department of Transportation and Communications, there will be no additional train cars until the end of the term of President Aquino. Syjuco said the crime of malversation was allegedly committed when Abad allocated P1.8 billion for the Moro National Liberation Front and the Cordillera People’s Liberation Army through the amorphous Pamana fund. The fund, Syjuco said, is questionable, especially since it is not found in the 2011 or 2012 GAA; P26.9 billion for government-owned and -controlled corporations and benefits of its officials; and an P8.5-billion “stimulus fund” for the Autonomous Region in Muslim Mindanao on top of its regular budget of P11.8 billion. Jovee Marie N. dela Cruz
four prequalify to bid for its south project
FOUR groups have pre-qualified to vie for the P4-billion Integrated Transport System (ITS) South Terminal deal, a bid bulletin showed on Wednesday. The Department of Transportation and Communications (DOTC) listed the four firms as Ayala Land Inc., Datem Inc, Filinvest Land Inc., and Megawide Construction Corp. These companies are “qualified after fulfilling the legal, technical and financial capability qualification requirements for the project,” the bid bulletin added. Only four firms joined the prequalification stage of the auction held in November, with Robinsons Land Inc. and San Miguel Corp. backing out of the bidding process. The deadline for the submission of bids is scheduled on March 16. Technical proposal shall be opened at the same date. Jae Denise Adolfo
Thursday, December 11, 2014 A5
House approves grant of emergency powers to Aquino
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By Jovee Marie N. dela Cruz
espite strong opposition from minority lawmakers, the House of Representatives on Wednesday approved on final reading House Joint Resolution (HJR) 21 granting President Aquino emergency powers to deal with the projected power shortage in Luzon in the summer of next year.
Liberal Party Rep. Reynaldo Umali of Oriental Mindoro, chairman of the House Committee on Energy, said the majority of the lawmakers voted to pass the emergencypowers measure on second and third readings on Wednesday. Last week President Aquino has certified as urgent the HJR 21, meaning the lower chamber can approve the measure on second and third readings in the same day. “We approved the emergency powers with a no-pass on provision. The government will shoulder the additional cost of electricity. We
are eyeing Malampaya funds as subsidy,” Umali, also co-chairman of the Joint Congressional Power Commission, said. According to Umali, the cost for additional electricity would be sourced from Malampaya funds. The joint resolution will be transmitted anytime to the Senate for its own deliberations. Buhay Hayaang Yumabong (Buhay) Party-list Rep. Lito Atienza, a senior member of the House independent bloc led by Lakas Rep. Ferdinand Martin Romualdez of Leyte, slammed Energy Secretary
Carlos Jericho L. Petilla, saying he should leave the Aquino administration for his belated solution to the power crisis. In his earlier interpellation, Atienza also scored at Umali for saying that Filipino power consumers themselves were to blame for the impending power shortage in 2015, adding Petilla should be blamed. Meanwhile, with the approval of the resolution, Party-list Rep. Terry Ridon of Kabataan said the measure also grants the President “great powers” that include the suspension of pertinent laws, rules and regulations that protect the environment and prevent abuse in the power industry. “Joint Resolution 21 will give [Mr.] Aquino the authority to waive the required technical, financial and environmental requirements of generation companies. It will result in an ‘open season’ for environmental degradation and abuse, given that the operability of several laws will be suspended from March to July next year,” Ridon said. According to HJR 1, relevant laws, rules and regulations including the Wholesale Electricity Spot Market law, the Biofuels Act, the Clean Air Act, the Philippine Grid Code, the Philippine Distribution Code, and other “environmental and labor laws
would need at least P450 million for the implementation of the ILP. Based on established protocols, ILP is implemented during a red-alert status (minimal power reserve) upon the notice of the National Grid Corp. of the Philippines and the distribution utilities informing ILP participants to deload from the grid. The ILP is a voluntary program that requires businesses such as malls and factories that have their own generators can be disconnected from the power grid in times of short supply, and can sell any excess power they generate to distributors. Through the ILP, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the summer season. Besides the ILP, the resolution said that additional generating capacity shall be sourced from the fast-tracking of new committed projects; plants for interconnection and rehabilitation; and adoption and execution of energy efficiency and conservation measures shall be pursued vigorously in both public and private sectors. The resolution was principally authored by Umali, House Speaker Feliciano Belmonte Jr. and Majority Leader Neptali Gonzales II.
IBON disputes Palace claim of economic ‘turnaround’ for PHL with Apec hosting
PSA: Manufacturing output slowed to 7.5% in October By Cai U. Ordinario
By David Cahagastian
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he country’s manufacturing output slowed to 7.5 percent in October 2014, according to the latest data released by the Philippine Statistics Authority (PSA) on Wednesday. The PSA said the Volume of Production Index (VoPI) slowed from the 21.1-percent growth posted in October 2013. This was despite increases in the production in printing of 266.8 percent and fabricated metal products at 51.3 percent. The volume of production in nonferrous metals which posted a decline of 27.1 percent; tobacco, 23.2 percent; and glass and glass products, 18.7 percent. Meanwhile, the Value of Production Index (VaPI) tracked the performance of the VoPI which also slowed to 7.2 percent in October 2014 compared to 14.1 percent in October 2013. This was despite six of 12 major manufacturing sectors exhibited two-digit growth in production value led by printing which posted a growth of 266.8 percent. The other five major sectors that posted two-digit increases were fabricated metal products at 42.5 percent. On the other hand, the average capacity utilization in October 2014 for total manufacturing stood at 83.6 percent. The PSA said over 50 percent, or 11 of the 20 major industries, operated at 80 percent and above capacity utilization rates. “The proportion of establishments that operated at full capacity [90 percent to 100 percent] was 23.3 percent in October 2014. About 57.7 percent of the establishments operated at 70 percent to 89 percent capacity, while 19 percent of the establishments operated below 70 percent capacity,” the PSA said. The Monthly Integrated Survey of Selected Industries is a non-probability sample survey of manufacturing establishments. Selection of sample units for this survey is done purposively so as to include only the large establishments or the socalled industry leaders. The survey is conducted monthly nationwide using a shuttle questionnaire that provides the respondents with a running account of the previous months’ data for one year.
that may affect the operation and transmission of the contracted generation capacities” will be suspended for the period of March to July 2015. On September 12, President Aquino requested Congress for authority to establish additional power-generating capacity to ensure the energy requirements of the country during periods of very tight energy supply as a strategic response to the need for specific, focused, and targeted acquisition of additional energy capacities to meet the imminent power shortage in the Luzon grid due to the Malampaya turnaround, increased levels of forced outages of power plants, and delays in the commissioning of committed power projects. Pursuant to Section 71 of Republic Act 9136, also known as the Electric Power Industry Reform Act, Congress may, upon the determination by the President of an imminent shortage of the supply of electricity, authorize the President, through a joint resolution, to provide for the establishment of additional generating capacity. The joint resolution wants the government to mainly use the Interruptible Load Program (ILP) scheme in generating additional power capacity. Petilla has said the government
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Bountiful freshwater catch
A fish-port worker sorts a bountiful catch of largesized milkfish at the Navotas Fish Port Complex on Tuesday morning. There was noted scarcity in the delivery of fish of the saltwater variety after Typhoon Ruby (international code name Hagupit) kept fishermen away from fishing on rough seas. Kevin de la Cruz
esearch group IBON refuted on Wednesday Malacañang’s claim of an economic “turnaround” made by the Philippines since hosting the last Asia-Pacific Economic Cooperation (Apec) summit in 1996, citing figures that economic growth and unemployment continue to plague the country. IBON Executive Director Sonny Africa pointed out that gross domestic product (GDP) growth during the first three quarters of 1996 is even slightly higher than the 5.8-percent GDP growth that was registered during the same period this year. During the two-day Apec Informal Senior Officials Meeting in Manila, Executive Secretary Paquito N. Ochoa Jr. said the country has seen a “remarkable turnaround” since 1996, but IBON said that there are more unemployed Filipinos now, and that more Filipino families are considered poor in today’s standards of living. “The number of unemployed Filipinos has increased from 2.55 million in 1996 to 4.49 million in 2013, or an increase of 1.95 million. Moreover, the
number of poor Filipinos has increased from 26.8 million in 1997 to 35.1 million in 2012, or an increase of some 8.3 million,” IBON said in a news statement released on Wednesday. “The number of unemployed in 2013 was estimated by IBON, using data from the National Statistics Office, for comparability with the official figures in 1996. Similarly, the number of poor in 2012 was estimated by IBON for comparability with the official figures in 1997,” the statement added. Apec was established in 1989 to facilitate economic growth, cooperation, trade and investment in the Asia-Pacific region. Although agreements in this forum are not binding, Apec has been successful in pushing free-market economic policies in high-level political venues such as its annual leaders meetings, and in numerous technical meetings throughout the year. But IBON said that liberallization policies, such as those pushed by the developed countries in Apec, have weakened the country’s agriculture and other industries, causing joblessness and poverty.
SC grants govt’s bid to get P60B from coco-levy fund By Joel R. San Juan
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HE Supreme Court (SC) granted the government’s bid on Wednesday to get hold of the P60-billion proceeds from the 24-percent block of shares, or 753,848,312, in San Miguel Corp. (SMC) that the SC earlier forfeited in favor of the government. At a news conference, SC Spokesman Theodore Te said the 15-man Court en banc approved the motion filed by the Office of the Solicitor General (OSG) filed on October 14, asking the Court to issue an entry of judgment for its final decision issued on September 4, 2012. In the said ruling, the Court affirmed with finality the decision issued by the Sandiganbayan in May 2004, which awarded the subject shares in
SMC registered in the names of Coconut Industry Investment Fund (CIIF) and its holding companies to the government, which holds it in trust for the country’s coconut farmers. The said 24-percent SMC shares, which is estimated to value between P50 billion and P100 billion, has earlier been ordered by the Court, through its ruling on September 17, 2009, to be converted from common shares into preferred shares. The conversion, the SC added, is necessary to preserve the value of the 753,848,312 sequestered CIIF SMC common shares. “Acting on respondent Republic of the Philippines’s motion for partial entry of judgment dated October 14, 2014, as supplemented by its manifestation and supplemental motion for partial entry of judgment dated
October 20, 2014, let entry of judgment of the Court’s September 4, 2012, resolution be immediately issued,” the Court said in a unanimous decision Solicitor General Florin Hilbay said that although the government was still contesting ownership of 4 percent of Treasury shares, which was “inadvertently excluded” from the ruling in 2012, the government’s ownership of the 753,848,312 SMC Series 1 preferred shares is no longer being disputed. “If granted, the government’s motion will translate decades of litigation into public funds amounting to around P60 billion that can be used to support the country’s coconut farmers and their industry,” Hilbay said in his motion for partial judgment. It can be recalled that in 1986, the government seized the 24 percent of
SMC shares on suspicion that these were acquired illegally through the dummies of the late strongman former President FerdinandMarcosusingcoco-levyfunds. This 24-percent share (originally 27 percent but was diluted with the investment of Japanese brewer Kirin in SMC) was part of the 47-percent bloc of San Miguel shares sequestered by the Presidential Commission on Good Government in 1986 on suspicion that these were acquired illegally through dummies using coco-levy funds. In a resolution issued in 2011, the Court declared final its decision declaring that the 20-percent shares of businessman Eduardo “Danding” Cojuangco in SMC are legally acquired contrary to the government’s claim that it is ill-gotten wealth, being part of the coco-levy funds of the farmers.
Opinion BusinessMirror
A6 Thursday, December 11, 2014
Editor: Alvin I. Dacanay
editorial
Death toll
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HE Philippines is ravaged by an average of 23 storms a year, two or three of which could transform into Category 5 super typhoons. Yolanda (international code name Haiyan), which hit the country on November 8, 2013, was one such typhoon. It left in its wake thousands of people dead and damaged property worth billions of pesos.
After a year of “rehabilitation”, Yolanda-ravaged cities and provinces, including Tacloban City in Leyte province, and much of Central Visayas still lay in shambles. The Yolanda death toll sparked criticisms, both online and offline. The government insisted that it was less than 10,000—a figure put forth by Chief Supt. Elmer Soria, director of the Philippine National Police in Region 8 (Eastern Visayas), who was initially sacked for providing it. The government has pegged the Yolanda’s official death toll at a little over 6,000. Soria was later reinstated as local and international organizations pegged the death toll closer to the figure he gave. Today a similar debate is adding fuel to the flames of an already heated situation. The Philippine National Red Cross on Wednesday put the death toll from Typhoon Ruby (international code name Hagupit) at 25. The government, however, insisted that only 11 had perished. This raised issues about the government’s alleged attempts to “polish” figures as a means to bolster its waning popularity with the public. Typhoons have apparently become a litmus test of our government’s ability to respond to environmental anomalies. The word of Malacañang prior to Yolanda’s whiplash—that it was ready to face the storm—fell by the wayside, so to speak, after photos of the devastation wreaked by the super typhoon appeared on social media. That promise, it was clear, was nothing but lip service. Death and destruction, as seen on the streets of Tacloban, was more than enough proof that the Aquino administration was not capable of handling a devastation of that magnitude. Official government figures fail to give the public the real score, reputedly because of political reasons. Presidential elections are just around the bend. With the government’s popularity waning, it needs a bit of a boost. Pegging a smaller death toll from super typhoons apparently offers that boost. But what this administration doesn’t know is that every bit of falsehood pushes public perception down the popularity ladder. As far as the families of the deceased are concerned, that’s a few thousand votes less in the polls. Moreover, the Red Cross is a certified organization. Its experience in counting the dead during calamities remains unchallenged. What’s in it for the Red Cross to buff the figures? Fabrications don’t help in times of calamity. “Honesty is the best policy” remains the prime principle, as far as political popularity is concerned. The government should remember that that bit of a lie—however good its intentions (provided there is one)—could ring a political career’s own death toll.
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Philippine government debt and the PSE John Mangun
OUTSIDE THE BOX
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HE government held an auction for its seven-year Treasury bonds on Tuesday. This auction, which was of average size, raised P25 billion for the government’s coffers. Actually, this bond offering was not really new, since this was only a reissue, or “roll over”, of existing debt. Government borrowing is down by 40 percent for the first 10 months of 2014 over the figure posted in the same period last year. The bonds are paying 3.5 percent, which is down 24.2 basis points from the 3.7543-percent average interest rate paid at the government’s previous debt auction. In comparison, the Untied States government is currently paying 2.02 percent for seven years. Coincidentally, on the same day the auction was held, the Philippine Stock Exchange Composite index (PSEi) dropped 0.65 percent. But, in truth, it is not a coincidence. Conventional wisdom says some money will always be placed in fixedincome debt, and other money will always go to equity investments, like the stock market. In practice, however, buying debt is, more or less, guaranteed, and equity investment
The yen is falling! William Pesek
BLOOMBERG VIEW
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is risky, although it is bought with the anticipation of a return greater than the investment. Conventional wisdom also says we need to remember that the higher the risk the debt will not be paid off, the greater the interest rate that is paid on the debt. However, the fact that the government is paying a higher interest rate than the US is not based on the potential for default. The interest rate is higher because Philippine debt is denominated in pesos, while US debt is in dollars. Because of the massive amount of cross-border shifting of money and assets, currency fluctuations are as equally important as the creditworthiness of the debt issuer. The fact that the Philippine government pays
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EARLY two decades after America rolled out its strong-dollar mantra, Japan seems to have adopted the opposite chant. Finance Minister Taro Aso reminded reporters on Tuesday about the yen’s vital role in boosting job and wage growth: In the opaque world of currency predictions, that counts as a pretty clear sign that he expects the currency to drop even further than its current rate of 120 to the dollar, down 16 percent since midyear. How low might the yen go? Opposition lawmaker Takeshi Fujimaki, a former banker, may be off-base when he warns that the currency could eventually hit 200 per dollar. But with growth faltering and Prime Minister Shinzo Abe doing far more talking than restructuring, Japan is depending on a weaker exchange rate to boost export earnings. A rate nearer to 150 is hardly out of the question. There’s a view in Tokyo—and a certain tolerance in Washington for it—that if a weaker yen helps Japan whip deflation, then the end justifies the means. But this reasoning suffers from two big flaws. First, while the
yen’s plunge has filled the coffers of large exporters and boosted tourism receipts, overall it’s doing more harm than good by making imports much more expensive. Windfall corporate profits are lifting the onus off Japan Inc. to innovate and Abe to deregulate the economy. The second problem involves the economic and geopolitical fallout of the yen’s swoon. Just as the United States Federal Reserve needs to think carefully about how raising US interest rates will affect developing nations, Japan must consider the damage caused by a continuing freefall. It’s no coincidence that China’s yuan plunged the most in six years
an interest rate higher than what the US government pays shows that there is more risk of a devaluation of the peso in relation to the dollar. The ability of a government to pay its debt is only a consideration for nations like Venezuela and Argentina, which are so far down in the economic hole that a default is a real possibility. For nations like the US and Japan, which have the ability to print money, no matter how far down the debt hole they might be, they are safer investments. The reason they’re safer is that, in the land of the blind, the one-eyed man is king. If Japan eventually pays its debt in greatly devalued yen, at least you can use than money to buy sushi and high-rise buildings in Tokyo. So foreign money wants a higher interest rate on its peso lending, because it fears peso devaluation against the almighty dollar, and it prefers condominiums in San Francisco than in Manila. But what’s important to consider is that most of that P25-billion debt was bought with local, not foreign, money. This brings us to Tuesday’s government-debt auction’s connection to the PSE. The wisdom that says some money should be placed in debt instruments and others in equities is as outdated as the idea that depositing your excess cash in a bank is safe.
Any financial expert who tells you to “save for a rainy day” is either working for the bank or selling umbrellas on the side. Your return must always equal the inflation rate, at least. Notice that the yield on treasury bonds and the interest rate are nearly equal to the current inflation rate. Furthermore, the market value of those bonds will rise if—and as— the inflation rate falls. While the Philippine stock market has performed well in 2014, the question for investors choosing between the PSE and government bonds is this: Over the next 90 days, on a percentage basis, will the stock market go up as much as inflation goes down? The inflation rate dropped to 3.7 percent in November from 4.3 percent in October. The PSEi did not increase between the end of September and the end of November. All investments and comparisons are not created equal. But these days, you put your money where you think the greatest return will come, regardless of the type of investment vehicle used.
on Tuesday, spurring fears of a new currency war in Asia. “The Bank of Japan’s effort to weaken the yen is a beggar-thyneighbor approach that is inducing policy reactions throughout Asia and around the world,” Nouriel Roubini warned in a recent op-ed piece. “Central banks in China, South Korea, Taiwan, Singapore and Thailand, fearful of losing competitiveness relative to Japan, are easing their own monetary policies, or will soon ease more.” Exchange-rate battles are largely a zero-sum game. For one currency to drop, another must rise—just as when one government’s trade balance brightens, another’s darkens. In 1997 a round of competitive devaluations rocked the region. This time around, a regional currency war could encourage Europe to follow suit, complicating America’s recovery as the dollar soars. US senators will have a hard time demanding that China stick to a stronger yuan while giving ally Japan a free pass. President Barack Obama is sure to hear complaints from key US allies, as well. Bank of Korea Governor Lee Ju-yeol has already warned, “We will not stand pat” as Japan devalues. If China follows suit, countries like the Philippines,
Indonesia, Malaysia and Vietnam that are competing at the lower end of the manufacturing spectrum will face a rough 2015. For such an advanced economy, Japan takes an almost developingnation view of exchange rates. Remember that Washington’s strongdollar policy, the brainchild of thenTreasury Secretary Robert Rubin, began in 1995 just as deflation was wrapping its tentacles around Japan. Nearly 20 years on, Japan still favors the quick-and-easy fix afforded by a falling currency. Its competitiveness has only suffered. So has its debt position. Fujimaki’s ¥200 scenario sees Bank of Japan Governor Haruhiko Kuroda running out of options to “camouflage” rising default risks. Fujimaki worries the yen “will spiral out of control” as the disconnect between Japan’s 250-percent debt-to-gross-domestic-product ratio and its shrinking population grows. Tokyo appears to have zero plans to address the problem, save the odd sales-tax hike. Unsurprisingly, the government isn’t talking much about that crushing debt burden ahead of Sunday’s snap elections. Aso and Abe might want to cut out the winks and nods. Japan— and the world—deserve a real debate about where the yen is headed.
Send me an e-mail at mangun@ gmail.com. Visit my website at www. mangunonmarkets.com. Follow me on Twitter at @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.
opinion@businessmirror.com.ph
Opinion
Agriculture is the key
Go out and seek your fortune!
BusinessMirror
Ariel Nepomuceno
DECISION TIME
I
N our country, being a farmer is almost synonymous with being trapped in poverty, with having no formal education, with being deprived of basic needs and, sometimes, with being a victim of injustice. This should not be the case. We are blessed with rich agricultural resources. We have to harness our agricultural strength in creating a vibrant economy that will help ensure that more Filipinos will be freed from their long years of financial and social hardships. It is almost too late. We have neglected our agricultural sector to the point that our farmers and their families would virtually fall into the liability side of our national balance sheet. The countryside will show us the tillers of the land, the descendants of the farmers whose history will show a litany of broken dreams and unfulfilled hopes. At present, we have about 12 million farmers in the country. According to 2013 statistics, they make up 31 percent of our workers nationwide. The average daily income of rice farmers is P256; for corn farmers, P206. They practically use the same outmoded system of farming that they have inherited from their parents and grandparents. The result is always an income that is too small to sustain their families.
the lands that were suddenly entrusted to the farmers. Economies of scale, as a corporate advantage, were overlooked. The small farm lots that were handed to them were managed separately, in spite of the heroic efforts of countless agricultural cooperatives to bind them and achieve superiority in numbers. The operational efficiency of a bigger operation was hardly achieved. Each landowner must individually pursue the best market for his or her produce, worry about access to dependable irrigation, secure cheaper credit facilities, or even adopt the best practices that could only fit huge agricultural companies. As an industry, our agricultural sector became dismally uncompetitive in the global arena.
Urban migration
THE government must do everything it can to modernize our agricultural sector. The annual billion-peso funds intended for this purpose must be fully utilized to ensure that our farmers would be able to efficiently prepare their farm lands. Farm-to-market access must be a basic support to the industry. Modern farm equipment, like tractors and dryers, and irrigation systems should be treated as basic government obligations. The strategic role of the National Food Authority, under its new administrator Renan Dalisay, protégé of former senator and food-security czar Francis “Kiko” Pangilinan, has to be renewed. As former studentactivists and leaders in the 1980s, the two men could provide the means to improve the lives of our farmers. Emergency- and calamity-support mechanisms must be institutionalized to protect farmers from natural disasters like Supertyphoon Yolanda (international code name Haiyan) and Typhoon Ruby (international code name Hagupit). More important, an organized corporate approach to production, logistics management, finance and marketing must be instilled in the fragmented micro organizations of our agricultural workers. An important pillar of our country’s economic growth is a successful agricultural industry. Without it, we will continue to be burdened by such issues as food shortages; the high prices of agricultural products, especially rice; urban overpopulation; and social unrest in the provinces. Along with our growing manufacturing sector and the overseas Filipino workers who regularly remit billions of dollars to the country, a modern agricultural sector can ensure our nation’s rise as one of Southeast Asia’s most successful economies.
MOST of the informal settlers who contribute to the congestion in our cities are migrants who escaped the poor economic conditions in the countryside. According to a 2010 Asian Development Bank report, there are at least 16 million of them in the whole country, and roughly 35 percent of them are in Metro Manila. We could hardly blame them for erroneously believing that the metropolis will be generous in providing better opportunities for them and their families, compared with those offered in the provinces from where they came. Even worse, the children and grandchildren of the migrants who were born here are already oblivious to the life that their parents and grandparents used to have in the provinces. The worldview of these children is that of living in extreme poverty under the bridges or on the sidewalks. They could hardly distinguish between the normal and decent standard of living and the subhuman conditions that they were subjected to. In dumpsites, for example, young girls who carry cartons as improvised mattresses would reportedly perform quick sexual services in any shaded or secluded portion of the stinking hills of garbage for P60 to P100. Afterward, they would buy rugby and inhale it to escape from a distorted reality.
Limited land reform
THE Comprehensive Land Reform Program (CARP) of June 1988 paved the way for the attainment of the noble goal of distributing farmlands to those who worked to feed the nation. However, even though it represented a breakthrough in managing the dilemma of the farmers, the entire program had inherent weakness. The CARP was practically nothing more than a landdistribution scheme. It failed to ensure an efficient and effective production of
Modernize and organize
E-mail: anepo.businessmirror@ gmail.com.
By Ambassador Antonio L. Cabangon Chua
Speech of Ambassador Antonio L. Cabangon Chua during the oath-taking ceremony of the country’s new certified public accountants at the Philippine International Convention Center in Pasay City on December 9, 2014.
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T is with great pleasure that I congratulate our new certified public accountants (CPAs), who will be taking their oath today. Welcome to the world of accountants, where everybody counts!
When I received the invitation of Chairman Joel L. Tan Torres of the Board of Accountancy of the Professional Regulation Commission (PRC) to speak to you today, I felt so honored that I sent my acceptance the very next day. Let me tell you why: The accounting profession is very close to my heart. The acronym “CPA” is proudly written next to my name in my business cards and in all of my official communications. I was once like you, young and full of hope. I can’t help but be reminded of the day when I took my oath as a CPA. It was definitely one of the proudest moments of my life. But before that triumphant day, we had to endure the long wait for the results of the board exams. It took months, which made it even more agonizing. It was so agonizing that I even planned to enter the military profession if the result did not come before my scheduled call to active duty, or CAD. I should have taken a different path. Today, the PRC released the result a few days after the exam. You did not need to go anywhere to see if you made it. You simply had to go online using your laptops, tablets or smartphones. Maybe some of you got the news via Facebook or Twit-
Alálaong Bagá
G
OD, in His mercy, has done great things for His lowly servant Mary, who is called blessed by all generations (Luke 1:46–48, 49–50, 53–54). John was sent by God to give testimony to the light, the one coming after him (John 1:6–8, 19–28).
His lowly servant LIKE Miriam (Exodus 15:1–18), Hannah (1 Samuel 2:1–10) and Judith (Judith 16:1–17), Mary sang her victory hymn, proclaiming the greatness of God with her whole being. Her soul (her vitality and consciousness, her intellect and will) and spirit (her entire person open to God) praise God for what He is doing in her and to her. The lowly servant re-
joices that the Almighty has looked upon her lowliness with mercy; His loving plan is not hindered by her littleness. God’s goodness, not her own piety or qualities, has made her blessed, and all generations will call her so, that, with her consent, a child for the salvation of all will be born. Mary rejoices in her blessedness, acclaiming God’s power and goodness. Truly, God’s name is holy. He is holy and
ter. And how many of you posted a photo of your name, highlighted on the list of new CPAs, on Instagram? While a lot of things have changed, the fact remains that CPAs are still among the most important professionals in the world today. Whether you’ll serve in the public or private sector, you will be performing a great service to your community and country. I was able to make use of my accounting knowledge when I worked for an auditing firm after I graduated from college. That was before I passed the board exam, and the only time I ever worked as an employee. I did not want to be a white-collar employee all my life. I wanted to go into business. I promised myself that I will earn my first million at age 40. It became my personal goal. So, I’m very happy when I issued and signed my first P1-million check at 35. My first business with my mother was a sari-sari store. From there, I put up a pawnshop in Paco. It was launched using our own savings and money borrowed from friends. I was the lone clerk, janitor, security guard and accountant wrapped into one. My lone assistant was an appraiser. From the sari-sari store, I diver-
Ambassador Antonio L. Cabangon Chua
sified into sari-sari businesses. Today the ALC Group of Companies embraces newspaper and magazine publishing; radio and television broadcasting; banking and finance; life, nonlife and health insurance; and real estate, among others. There are several core principles that served as my compass in life. I hope I will not sound as if I’m lecturing, as I feel that I am part of you, but, please, listen with an open mind. First, do not wait for things to happen. Make things happen. Second, the best fertilizer in any business undertaking is the footprints of the owner. Third, use time wisely. God gave us all 24 hours a day—no more, no less, whether rich or poor—to live our life and define our future. Fourth, take care of your people. Reward hard work. Recognize talent. Make your employees grow with your business. Fifth, pray hard, and pray every day. Panghuli, ibabahagi ko sa inyo ang
A7
aking naging salawikain sa buhay na aking sinusunod, mula noon hanggang ngayon: “Sa mundo ay walang maipapalit sa sipag at tiyaga. “Hindi talino; pangkaraniwan lamang ang matalinong nabibigo. “Hindi kakayahan; halos kasabihan na ang pambihirang kakayahan na ‘di napapakinabangan. “’Di sapat ang napag-aralan; maraming may mataas na napag-aralan ang naging pabaya. “Sikap at tiyaga lamang ang batis ng walang-hanggang kapangyarihan.” I am not an accelerated student. But I took summer classes. Thus, I completed my high-school and college education in only six years. I cross-enrolled in the Guzman Institute of Technology, where I took up an automotive-mechanic course. Kaya, mekaniko rin po ako. I was a young man in a hurry then. Now, they are calling me an old man in a hurry for putting up more businesses to generate more jobs. This is because I do not have the luxury of time. My young friends, where do you go from here? You may wish to learn from my experience. Go into business. You can start as an employee and do your best to save. From your savings, start a small business, then venture into bigger stakes. Start in your own backyard or on a sidewalk. Firmly resolve to make your first million at age 40. Sinasabi ko palagi: “Saan ba nanggaling ang kalakhan, kundi sa kaliitan?” Again, my congratulations! Pagpalain nawa kayo ng Panginoon. Now, go out and seek your fortune. Maraming salamat po at mabuhay tayong lahat!
‘Other disposition of real property’ construed Reynaldo M. Prudenciado Jr.
Tax Law for Business
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N the crafting of legal provisions, the phrase ejusdem generis (“of the same kind” in Latin) is often encountered. Under the ejusdem generis principle, in which a general term follows the designation of particular things or classes of persons or subjects, that term will be construed to include those things or persons of the same class or of the same nature as those enumerated. The Tax Code contains various provisions that may be interpreted through the application of the ejusdem generis rule. An example of this is Section 24(D)(1) of the code, which imposes taxes on “capital gains presumed to have been realized from sale, exchange or other disposition of real property” in the Philippines and classified as capital assets. From this provision, there are three transactions that are being taxed: sale, exchange or other disposition of real property. The rules and case laws are clear on what constitute “sale” or “exchange”, but are silent with respect to the phrase “other disposition of real property”. Apparently, this phrase is preceded by “sale” and “exchange”. When applying the ejusdem generis principle, should this be interpreted to be in the same category as a sale or exchange? Until very recently, the Bureau of Internal Revenue (BIR) issued rulings that construe “other
Witnesses to God’s kindness Msgr. Sabino A. Vengco Jr.
Thursday, December 11, 2014
completely different, because He singles out the lowly, as Mary herself has experienced. From age to age, He offers mercy to those who are open to it, to those who stand in fear and awe of His greatness. God reverses their fortunes, as Israel has experienced in the past; the hungry in their needs are filled with good things; and the rich, boasting of their abundance, are sent away empty. Israel’s blessing is now Mary’s with God coming in mercy to the aid of His servant, in spite of lowliness and unworthiness, as He has promised in His covenant with Abraham and his descendants.
He was not the light
JOHN the Baptizer is directly identified as a man sent by God with a mission to testify to the light, “the light of the human race, the light that shines in the darkness” (John 1:4–5), the eternal Word of God through whom life came. John was not the light. John came to give testimony, “to testify to the light, so that all
disposition of real property”. In BIR Ruling 355-14, a real property was the subject of a real-estate mortgage. The mortgage was subsequently foreclosed and, after the redemption period had lapsed, the mortgagee successfully secured a new title under its name. The previous owner, however, subsequently filed a case against the mortgagee for declaration of absolute nullity and/or unenforceability of the promissory notes and real-estate mortgage. The court eventually dismissed the case based on a compromise agreement entered into by the parties. The court approved this agreement and required the issuance of a new title in the name of the previous owner. The conveyance to the previous owner was then the subject of an application for ruling—that the same does not constitute a sale or exchange subject to capital-gains tax under Section 24(D)(1) of the code. The BIR ruled in
might believe through him.” That is his relationship with the true light, which is to come into the world. He has been divinely chosen to bear witness to the Savior of the world who is soon to come. John knew that he is someone people go “through”, not someone they “arrive at”. People are looking for the light, which he is not. Jesus himself would later call him “a burning and shining lamp” (John 5:34), pointing to “the true light, which enlightens everyone” (v.9), sort of a reflection of the larger light. From out of his own darkness, John was a voice crying out and proclaiming the light that is soon to come.
But to testify to our Savior
IN all honesty and humility, John admitted to the priests and Levites, who were sent from Jerusalem to crossexamine him, that he was neither the Christ nor the Anointed One, neither Elijah who returned to restore Israel nor the promised Prophet of long ago.
the negative, holding that the conveyance of property in favor of the original owner, though pursuant to a court order approving the compromise agreement entered into by the parties to amicably settle their dispute over the property, is covered by the clause “other dispositions of real property”, which then makes it subject to the capital-gains tax. It should be noted that a different pronouncement was made earlier in BIR Ruling 461-11. Based on this ruling, the original owner filed a case for declaration of nullity of the foreclosure proceedings. The trial court rendered judgment on the compromise, in which the defendant acknowledged that the foreclosure sale did not have any legal basis. Accordingly, the cancellation of the title in the name of the original owners and the issuance of a new title to the mortgagee also had no legal basis. Thus, titles to the properties must revert to the original owner. Insofar as the taxability of the reconvenyance of title to the original owner is concerned, the BIR ruled that, since the reconveyance is without consideration, and the reconveyance was made in order to return the properties to its legal owners, the transfer of properties is not subject to taxes. It would appear that there is no significant difference between the facts in the two rulings to warrant a deviation of the BIR’s position. But a closer look at BIR Ruling 355-14 would show that there was no decision declaring the nullity of the foreclosure proceedings. The court dismissed the civil case, and approved, in toto, the compromise agreement entered into by the parties. So there
was no pronouncement of the nullity of the title issued in the name of the mortgagee. There being a valid title in the name of the mortgagee, the issuance of a new title in the name of the original owner constitutes a disposition of a valid title in real property by the mortgagee in favor of the original owner. This makes the disposition subject to the transfer taxes. In BIR Ruling 461-11, however, the trial court upheld the illegality of the foreclosure sale, and the compromise agreement was only issued later. With the foreclosure sale declared illegal, no valid title was issued in the name of the mortgagee. Thus, the issuance of a new title in the name of the original owner did not constitute a disposition of property by the mortgagee. If we are to examine these rulings, a simple twist of the facts could make a difference. Nevertheless, taxpayers should be aware that, whenever there is a disposition of real property, whether voluntary or involuntary, taxes are certainly unavoidable.
John did not identify himself with any of these messianic figures. All he wanted to say of himself was that he was the “the voice of one crying out in the desert, ‘Make straight the way of the Lord” (Isaiah 40:3). In other words, he was merely someone preparing the way for somebody else. His inquisitors took another tack and queried John about his activities. Why does he baptize, if he is not the Christ, Elijah or the Prophet? These personalities are obviously expected to make big demands from the people. John sidestepped them. If they really want to know why he is baptizing people, then they should know who the person is, who he is preparing for. He baptized with water only; this person will baptize with the Holy Spirit (Mark 1:8), for he is even the Anointed One with the Spirit of God. This one who comes after him and for whom he prepares the people, is so great that John is not worthy to untie his sandals. This Christ is already
in the midst of those questioning John, but they do not recognize Him, because they are not open to Him. For himself, John is content to be His herald and His witness giving testimony to Him.
The author is a senior tax specialist of the DuBaladad and Associates Law Offices, a member-firm of the World Tax Services Alliance. The article is for general information only, and is neither intended nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. For comments or questions about the article, send an e-mail to the author at reynaldo.prudenciado@ bdblaw.com.ph or call 403-2001, local 380.
Alálaong bagá, both Mary and John the Baptizer believed in the marvelous plan of God for the salvation of all; both humbly admitted of their lowliness vis-àvis the greatness of God; and both testify to the power and love of God, who chose them to bear witness to the fulfillment of the divine plan. Midway into Advent, we have this Laetare Sunday—the Sunday of Joy, not only because Christmas is near, but also because the readings tell us of the joyous experience of those chosen and willing to be witnesses to the good news of God’s mercy and goodness. 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.
2nd Front Page BusinessMirror
A8 Thursday, December 11, 2014
Exxon sees abundant oil, gas far into future
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orth America, once a sponge that sucked in a significant portion of the world’s oil, will instead be supplying the world with oil and other liquid hydrocarbons by the end of this decade, according to ExxonMobil’s annual long-term energy forecast. And the “almost unspeakable” amount of natural gas found in recent years in the US and elsewhere in North America will be enough to make the region one of the world’s biggest exporters of that fuel by 2025, even as domestic demand for it increases, according to Bill Colton, Exxon’s chief strategist. “The world has such an improved outlook for supplies,” Colton said in an interview. “Peak oil theorists have been run out of town by American ingenuity.” In a forecast that might make economists happy but environmentalists fret, Exxon’s two chief products, oil and natural gas, will be abundant and affordable enough to meet the rising demand for energy in the developing world as the global middle class swells to 5 billion from 2 billion and buys energy-hungry conveniences such as cars and air conditioners. This is a result of advances in drilling technology that have made it possible for engineers to reach oil and gas in unconventional rock and extreme locations and quieted talk that the world was quickly running out of oil. And it is despite what Exxon assumes will be increasingly strict policies around the world on emissions of carbon dioxide and other gasses emitted by fossil fuel use that scientists say are triggering dangerous changes to the world’s climate. Exxon’s outlook forecasts world energy supply and demand through 2040 and is updated every year. It is noted by investors and policy-makers and used by Exxon to shape its long-term strategy. Colton said the recent sharp decline in oil prices does not have much effect on the company’s long-term vision, and that the company expects prices to rise and fall, sometimes dramatically, throughout the period. Exxon’s vision is broadly similar to that of other forecasters, including those by the International Energy Agency, which released its most recent long-term forecast last month. Demand for energy will grow rapidly in coming decades in the developing world, while demand in the developed world is expected to be flat or even decline as countries impose stricter emissions policies and become more efficient. AP
FDI inflows continue to exceed govt target
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By Bianca Cuaresma
oreign direct investments (FDI), or those invested in long-horizon investment activities in the Philippines, exceeded the government’s target of only $4.4 billion by $480 million to $4.88 billion in the first nine months. These are investments poured into so-called bricks-and-mortar businesses in the country that generate not just taxes for the nation’s coffers but employment for quite a number of otherwise unemployed Filipinos. The Bangko Sentral ng Pilipinas (BSP) said on Wednesday the country’s FDI more than doubled in September to $640 million, up from the year-ago level of $314 million. The inflows were more than double than the previous month’s FDI at $299 million.
September’s inflows brought the total FDI from January to September to $4.88 billion, exceeding the government’s new target of $4.4 billion by about $480 million. The new target was announced by the central bank in November on evidence of the country’s improving macroeconomic fundamentals. The new target proved higher than the $1-billion target announced in July. “Increases were posted in all FDI components. The sustained increase in net inflows during the
month reflects continued investor confidence in the countr y’s solid macroeconomic fundamentals,” the BSP said. The FDI flows came from equity investments whose positive impact was magnified by lower equity withdrawals during the period. Net equity placements hit $161 million, up from the $7 million seen last year. “The bulk of equity capital investments in September 2014—coming largely from the United States, Singapore, Taiwan, Japan and Germany —was channeled to the manufacturing; real estate; wholesale and retail trade; financial and insurance; and transportation and storage sectors,” the central bank said. The BSP also reported that investments issued by local affiliates consisting of intercompany loans, grew by 73.8 percent to hit $458 million in September this year, up from the $263 million in the previous year. The reinvestment of earnings, meanwhile, reached $61 million— higher by 41 percent than the $43 million seen last year. FDI are investments placed by nonresidents into the country in search for long-term prospects, making them less volatile and more coveted than foreign portfolio investments.
www.businessmirror.com.ph
Team Orion opts not to appeal rebid of Calax deal By Lorenz S. Marasigan
T
he coast has been cleared for the fresh tender of the P35.42-billion CaviteLaguna Expressway (Calax) deal after the winning bidder for the initial auction decided not to exercise its right to legally challenge the controversial rebidding. Team Orion of Aboitiz Land Inc. and AC Infrastructure Holdings Corp. did not seek the intervention of the Supreme Court to allow the project to move on. “We won’t stand in the way. We hope that the project is implemented soonest,” Ayala Corp. Managing Director John Eric T. Francia told the BusinessMirror in a brief text message. Aboitiz Equity Ventures Inc. First Vice President Roman Anthony V. Azanza III said separately that Team Orion “expects that the rebid will be conducted expeditiously, transparently and in line with the buildoperate-transfer law.” “In the interest of ensuring that this critical infrastructure project will not be further delayed, Team Orion will not be filing an appeal to the Office of the President’s decision,” he added. This was confirmed by Department of Public Works and Highways (DPWH) PublicPrivate Partnership (PPP) Officer in Charge Ariel C. Angeles, who said the rebidding See “Calax,” A2
BINAY AT DWIZ Vice President Jejomar C. Binay with DWIZ’s Karambola hosts (from left) Party-list Rep. Jonathan de la Cruz of
Abakada; Josephine Reyes, executive vice president-general manager of Aliw Broadcasting, DWIZ; Thelma Dumpit-Murillo; Cely OregaBueno; and Joel Paredes. NONOY LACZA
BSP curbs threaten property sector Continued from A1
property sector, as well as to regulate banks’ lending to the said sector. The executive acknowledged the benefits of the BSP controls to the real-estate sector, citing potential improvement of cash flows for developers from the lower loan-to-value ratio, and insulation of the entire banking sector from any negative shocks to the real-estate sector. “The intention is really to curb the formation of a real-estate bubble
and to protect the banking industry and, therefore, for us to clearly assess whether there are negative downward effect on the sector or not, will take a couple of months, then we will assess the effect of these regulations,” Cordero said. The tightened credit standards notwithstanding, stable investment demand in the residential segment is seen in 2015, and will be driven by traditional growth sources, such as flow of overseas Filipino workers remittances.
Anvaya. . . continued from a1 “It is a testament to what there is in the second-home market. Anvaya was very successful, which shows the potential of the market if you have a very good leisure product,” he said. Anvaya targeted the second-home market, which refers to homes that buyers buy for weekend or vacation purposes. At the moment, only a handful of unit owners actually live in their respective houses, most of whom are expatriates, while the rest opted to rent-out their units.
The property offers a variety of living space options from low-rise condominiums and maisonettes, French term for “little house,” with prices ranging from P6 million to P25 million. Lot sizes of 400 square meters to 1,500 sq m are priced at a minimum of P5 million, or about P40,000 per sq m. To date, some 58 homes have been built and an additional 17 are expected to be completed by 2015. Company officials said that an average of 10 houses are built in Anvaya a year. The development also features an 18-
On the 58,800 residential units forecast for 2015, up from 2014’s additional supply of 45,000 units, Cordero said the majority of the supply will be covered by big developers, such as SM Development Corp., Megaworld Corp., Ayala Land Inc. and DMCI. JLL said the estimated take-up rate of newly completed and future developments from 2015 to 2020 in the residential projects of the said key developers is at an average 73 percent, above industry standards.
hole golf course, which was recognized as the “Best New Course in Asia” by Asian Golf Monthly magazine. Residents have the option to buy either beach club shares, starting at P800,000, or golf club shares from P1.45 million. Since its grand launch in December 2013, Anvaya Cove Golf and Sports Club has sold 750 shares, while the Anvaya Cove Beach and Nature Club sold 1,650 shares. Anvaya Cove is allowed to sell as much as 2,500 shares each for golf and beach clubs.