Businessmirror december 20, 2015

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n Sunday, December 20, 2015 Vol. 11 No. 73

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Govt still aiming to close 15 PPP deals in homestretch of Aquino’s Palace term

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By Lorenz S. Marasigan

he government is still bullish that it could sign at least 15 key infrastructure deals before President Aquino steps down from office in 2016, despite hitting a roadblock on a project that the private proponent decided to terminate due to the state’s dilly-dallying act. week ahead

ECONOMIC DATA PREVIEW

n Previous week: The peso in the previous week followed a declining trend, as markets await the conclusion of the Federal Open Market Committee (FOMC).

However, during the actual hike, the trade value of the peso only moved sideways—indicating that the market has already factored in the move from the Federal Reserve. The local currency hit 47.395 to a dollar on the day of the Fed liftoff.

n Week ahead: While some volatility is still expected in the markets after the Fed finally lifted off its rates in the previous week, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said it will not be as significant as in the past. “The regional currencies have already moved lower versus the dollar in recent weeks. This may continue, as would the outflows, but not in significant magnitudes as in the past,” Tetangco said.

Agricultural commodities

The Philippine agricultural sector registered an increase in rice- and corn-stocks inventory in November.

The stock inventory for rice as of November 1 reached 3.11 million metric tons (MMT), compared to the month of October, which had 2.20 MMT. The inventory for the month went significantly higher at 41.5 percent.

Rice-stock share in commercial warehouses was at 28.4 percent, while rice from National Food Authority (NFA) warehouses

See “Outlook,” A2

Now that Megawide Construction Corp. has decided to terminate its P5.69-billion contract to modernize the Philippine Orthopedic Center—no thanks to a Cabinet official’s decision to review the project despite being signed—the government must work much harder to achieve its goals for the PublicPrivate Partnership (PPP) Program.

But, despite this setback, PPP Center Executive Director Cosette V. Canilao is still confident that the government could meet its targets, given the current pace of procurement being undertaken by several agencies.

“We still hope to award and sign 15 contracts. We still have 13 projects that we are currently

CANILAO: “We still have 13 projects that we are currently bidding out. From the number, I think we can achieve that goal.”

bidding out. From the number, I think we can achieve that goal,” she said.

The Department of Transportation and Communications holds the lion’s share from the list. With live tenders are the P108.2-billion deal to develop five regional airports around the See “PPP,” A2

Amid challenges, PHL seen to sustain economic growth

By Bianca Cuaresma

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conomic managers continue to see “sustained resiliency” in the country’s ability to push its growth, despite the dragging factors largely emanating from challenging external environment, as shown in the reassessment of balance of payments (BOP) assumptions.

The Bangko Sentral ng Pilipinas (BSP) reported on Friday that it has retained its assumption of BOP for 2015 this year at a surplus of $2 billion, or 0.6 percent of the country’s GDP, despite lower projections across subcomponents of the country’s BOP, or the summary of the country’s transactions with the rest of the world.

In particular, the current-account surplus for this year, which is the largest component of the coun-

PESO exchange rates n US 47.3050

Congress passes U.S. spending measure to end oil-export ban

Guinigundo: “On the basis of the numbers, we see continued resiliency of BOP in 2015 and 2016.”

try’s BOP, is expected to hit $8.9 billion for 2015. This is a downward revision from the earlier projection of a $14.2-billion surplus in the current account.

The downward assumption came in as the wider trade deficit for the year, brought about by the sharp decline in the country’s exports, pulled down the inflows coming from Filipino migrants’ remittances, tourism and business-process outsourcing (BPO) receipts for the year.

See “Economic growth,” A2

House Minority Leader Nancy Pelosi updates reporters on Democratic reaction to the bipartisan $1.1-trillion omnibus spending bill during a news conference on Capitol Hill in Washington on Thursday. Upset with GOP efforts in lifting a ban on US oil exports, Pelosi suggested there might not be enough Democratic votes to push it through the chamber. Congressional leaders hope to ship both bills, a 2,200-page legislative bundle, to President Barack Obama on Friday for his promised signature and adjourn for the year. AP/J. Scott Applewhite

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ongress passed a $1.1-trillion spending measure that averts a US government shutdown and ends a 40-year-old ban on crude-oil exports, a plan that ensures fiscal peace in Congress through most of 2016. The Senate passed the bill 65-33 on Friday, shortly after a 316-113 House vote.

The legislation, which will finance the government through September 2016, goes to President Barack Obama, who plans to sign it.

“Let’s take steps—as the legislation we’ll consider proposed—to support more jobs, more opportunity and more economic growth,” Senate Majority Leader Mitch McConnell, a Kentucky Republican, said on the Senate floor. “I think it’s legislation worth supporting.”

The end of the 40-year ban on most US crude-oil exports is a “big win,” according to House Speaker Paul Ryan, and it’s a top priority for Republicans. Demo-

crats call it a giveaway to oil companies and, in exchange, they negotiated extensions of environmental measures, including solarand wind-energy tax credits.

The two measures, combined in House Resolution 2029, include about $680 billion in revived tax breaks over the next 10 years. A number of them would be made permanent, including those for business research and development, small-business expenses, individual deductions for

state and local sales taxes, and financing rules for multinational corporations.

The research tax break will be “a booster shot for the innovation economy in America,” said Sen. Ron Wyden of Oregon, the top Democrat on the Finance Committee. Nonetheless, he voted against the bill, because he said it contained “unacceptable” provisions weakening oversight of government surveillance.

Continued on A2

n japan 0.3856 n UK 70.4561 n HK 6.1024 n CHINA 7.2960 n singapore 33.3439 n australia 33.6571 n EU 51.1935 n SAUDI arabia 12.6153

Source: BSP (18 December 2015)

NewsSunday BusinessMirror

A2 Sunday, December 20, 2015

www.businessmirror.com.ph

Congress passes US spending measure to end oil-export ban Continued from a1

Vote drama

Republicans and Democrats in Congress have fought over taxing and spending for years, causing a 16day partial government shutdown in 2013 and twice bringing the US to the brink of a default on the federal debt. Public opinion polls blamed Republicans for the turmoil, and the party under Ryan—elected on October 29 to replace John Boehner—wants to avoid a repeat with the 2016 presidential election approaching, to show that Republicans can govern.

The outcome of the House vote on the spending measure was not without drama. Even though Minority Leader Nancy Pelosi backed the plan and urged fellow Democrats to vote for it, she had said on Thursday she wasn’t confident her party could deliver enough votes to help Ryan get it passed. A number of conservative members of the Republican majority opposed the measure because they said it spends too much money.

‘Deficit buster’

“It is going to bust the deficit.

We are not doing anything for yet another year to take the debt burden off our kids and grandkids,” Republican Rep. John Fleming of Louisiana said on Thursday.

Senators voting for the bill include 27 Republicans, 37 Democrats and one independent, while 26 Republicans, six Democrats and one independent opposed it.

Voting for the bill in the House were 150 Republicans and 166 Democrats, while 95 Republicans and 18 Democrats opposed it. Ryan relied on Democratic votes to help pass the measure as Boehner often had to do. The former speaker’s decision to turn to Democrats for votes was a major complaint of the Republican insurgents who ousted him.

Still, Ryan got support from more than the 79 Republicans who voted for a two-year budget plan the day before he became speaker.

Ryan has emphasized this week that the spending bill is the product of a process he inherited from Boehner, and that he’ll pursue a different strategy next year.

‘Big oil’

“They had to put big oil in the omnibus” to get the spending measure passed, Pelosi told reporters on Friday before the vote. Democrats had wanted the oil provisions to be added to the tax proposal instead.

Conservatives were unhappy when the final version omitted some policy provisions they wanted, including defunding Planned Parenthood and blocking Syrian refugees from entering the US.

Sen. Ted Cruz of Texas, a Republican presidential contender, criticized Republican leaders in an opinion article in Politico said that the bill “effectively forfeits our massive Republican victories of 2014 and cements Obama’s priorities for nearly the full remainder of his term.”

In a letter on Thursday urging fellow Democrats to support the spending bill, Pelosi wrote, “Personally, I was dismayed by Republicans’ insistence on lifting the oil export ban.” But she said Republicans’ “desperate thirst for lifting the oil export ban empowered Democrats to win significant concessions throughout the omnibus, including ridding the bill of scores of deeply destructive poison pill riders.”

Both parties upset

Rep. Joe Barton of Texas, the lead Republican pushing oil export legislation in the House, said, “There are a lot of Republicans upset by what is not in the bill, there are a lot of Democrats who are upset because of what is in the bill.”

Oil producers, including Continental Resources Inc., Pioneer Natural Resources Co. and ConocoPhillips, have been pressing for an end to decades of restrictions on exports of most raw, unprocessed crude oil imposed at a time of shortages in the US.

The spending measure includes Republican wins such as a provision prohibiting the Securities and Exchange Commission from requiring publicly traded companies to disclose their political contributions.

It would scale back a program that allows visa-free entry to the US for citizens of about three dozen countries, including much of Europe. People who have traveled recently to Iraq, Syria or other

House Speaker Paul Ryan meets with reporters on Capitol Hill in Washington on Thursday. White House and congressional negotiators searched for compromise on huge tax and spending bills with a combined price tag of well over $1 trillion, with leaders hoping to clinch agreements and let Congress adjourn for the year next week. “Not everybody gets what you want when you negotiate in divided government,” Ryan told journalists, a nod toward the tough bargaining so far between President Barack Obama and the GOP-controlled Congress. “But I think we will complete this.”

AP/J. Scott Applewhite

countries with significant terrorist activity would have to go through the normal visa process.

Meat processing

The measure would benefit industries including health care, broadcasting and meat processing, increase funding for the FBI, and boost money for child hunger

PPP…

programs. It would restore health benefits for first responders to the September 11 terror attacks who became sick because of their work, and provide health-care aid for cash-strapped Puerto Rico.

The legislation would ratify an International Monetary Fund (IMF) plan approved in 2010 to increase the voting share of emerging

economies and double the amount of permanent funding available to the Washington-based fund. Until now, Republican opposition has prevented the IMF from implementing the changes.

The tax-extension measure passed by the House on Thursday would also make permanent an enhanced child-tax credit and the earned income-tax credit, both Democratic priorities, as well as tax breaks for charitable giving and schoolteachers’ expenses.

The two pieces of legislation would suspend three taxes intended to fund the Affordable Care Act—a so-called Cadillac tax on high-cost health insurance plans would be delayed from 2018 to 2020; a 2.3-percent tax on medical devices would be paused in 2016 and 2017; and a fee on health insurers would be paused for 2016.

Not everyone was on board.

West Virginia Sen. Joe Manchin, a Democrat, said on the Senate floor on Thursday that he planned to oppose the bill because of the amount it would add to the federal deficit.

“I cannot stand here and vote for a bill that tells middle-class Americans, students and veterans, doctors and nurses, mothers and fathers and our seniors that these are our values,” Manchin said. “I would hope we would all think twice before voting for this absolutely unresponsible, irresponsible piece of legislation that adds another $700 billion to the debt.”

Bloomberg News

Continued from a1

Philippines, the contract for the operations and maintenance of the Light Rail Transit (LRT) Line 2; the P19-billion Davao Sasa Port Modernization project, the P171-billion North-South Commuter RailSouth Line deal; and the P298-million Road Transport Information Technology Infrastructure Project Phase II.

“We will also meet the target of finishing five projects before our term ends. We have already completed the Phase 1 and Phase 2 of the PPP School Infrastructure Program [PSIP] under the Department of Education, the Automatic Fare Collection System, the Muntinlupa-Cavite Expressway,” Canilao said. “We should finish Naia Expressway by April.”

Since the launch of the PPP program in late 2010, the government has awarded the following projects to the private sector:

n the P2.2-billion Daang Hari-

South Luzon Expressway project bagged by Ayala Corp. in 2011;

n the P16.42-billion first phase of the PSIP, which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc., as well as the BF Corp.-Riverbanks Development Corp. Consortium;

n the P15.68-billion Naia expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013; and

n the P3.86-billion PSIP Phase II contract, partially awarded in 2013 to Megawide and the BSP & Co., Inc.-Vicente T. Lao Construction consortium;

n the P1.72-billion Automatic Fare Collection System contract awarded to the AF Consortium of Ayala and Metro Pacific Investments Corp. (MPIC) in 2014;

n the P17.5-billion Mactan Cebu International Airport New Passenger Terminal project bagged

Economic growth…

The BOP position of the country as of end-November this year is at $2.136 billion. This commenced as the country posted a BOP deficit in November at $141 million, reversing the surplus seen in the previous month.

BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said the deficit was largely due to the continued debt servicing by the national government, as well as the uncertainty then about the interest-rate hike from the US.

The weakness in the overall BOP is expected to continue in December this year as the 11-month

Outlook…

in 2014 by Megawide and GMR Infrastructures Ltd.;

n the P64.9-billion LRT Line 1 Cavite Extension deal, awarded in 2014 to Light Rail Manila Consortium of Ayala and MPIC;

n the P2.5-billion Integrated Transport System (ITS) Southwest Terminal, won by Megawide and partner Walter Mart Property Management Inc. of billionaire and retail magnate Henry Sy in January;

n the P35.42-billion CaviteLaguna Expressway bagged by MPCALA Holdings Inc. of MPIC in June; and

n the P4-billion ITS South Terminal to Ayala in November.

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

Continued from a1

total of BOP already surpassed the newest government assumption for the year by $136 million.

For 2016, however, the country’s BOP is expected to improve to $2.2 billion, from the assumed $2 billion in 2015, as most of the components improve mirroring the better outlook for the global economy next year.

This is despite the expectation of a lower current account surplus for the year at $5.7 billion, from the projected $8.9-billion currentaccount surplus in 2015.

The central bank said that the lower current account surplus assumption is due to the increase in

imports of goods for the year.

“What we are saying here is that on the basis of the numbers we see continued resiliency of BOP in 2015 and 2016,” Guinigundo said.

The deputy governor expressed confidence on the current assumptions of the government, saying that these are reflective of a strong local economy despite the slowdown in the global economy.

“Given a more challenging external environment, for the BOP to maintain a $2-billion surplus for 2015 and $2.2 billion for 2016 is indeed illustrative of a resilient economy,” he said.

Continued from a1

was at 22.8 percent and 48.8 percent came from households. Compared to the inventory for the month of October, rice stocks from households increased by 95.1 percent, and in commercial warehouses at 32.4 percent, as stocks stored in government warehouses dipped by 5.9 percent.

Corn-stock inventory, on the other hand, decreased for the month of November at 298,200 metric tons (MT), compared to last

month’s inventory of 420,700 MT, or a 29.1-percent decline.

Corn stocks from commercial warehouses dropped by 20.1 percent, and in households, as well, with 41.1 percent for the month of November.

Commercial warehouses had a share of 63.6 percent, while households had 36 percent and NFA warehouses with 0.4 percent. But corn stocks from NFA warehouses rose by 9.8 percent as compared to the month of October.

Week ahead

The sector can expect another update on the price of rice, palay and corn from the Department of Agriculture and Philippine Statistics Authority by December 21. Retailers and traders can adjust accordingly as soon as the updated list of prices comes out.

An update is also expected on other selected agricultural commodities by December 22. Bianca Cuaresma, Rea Cu

NewsSunday

www.businessmirror.com.ph • Editor: Vittorio V. Vitug

Another NGCP transmission line in Maguindanao bombed

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HE National Grid Corp. of the Philippines (NGCP) on Saturday reported another bombing incident involving its transmission line in Maguindanao.

Based on an initial report, tower No. 168 of the 138-kiloVolt (kV) Kabacan-Sultan Kudarat line was bombed at 11 p.m. on December 18.

“One of the tower legs was cut off, but the incident fortunately did not result in a power interruption,” the grid operator said.

Repair will start as soon as the area is secured, the NGCP said.

The same tower was previously bombed by lawless elements. The NGCP warned that if unabated, bombing incidents might prevent customers from enjoying uninterrupted electricity during the holidays.

“The NGCP has repeatedly appealed to the public, the national government, the local government and the Philippine Army for assistance in resolving security issues,” it said.

Early this month, the NGCP reported a bombing incident along the Kibawe-Sultan Kudarat 138-kV line, specifically the portion in Pikit, North Cotabato. The incident caused the power interruption along the Tacurong-Sultan Kudarat line.

Affected were the customers of Cotabato Light, Cotabato Electric Cooperative, and the XXX Electric Cooperative and part of Maguindanao province, part of North Cotabato, and Cotabato City. This was the 11th transmission tower bombed this year.

Lenie Lectura

BusinessMirror

Sunday, December 20, 2015 A3

Meralco inks JV with Repower Energy to develop hydropower

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HE Manila Electric Co. (Meralco) aims to provide millions of customers with green, sustainable energy as it partners with Repower Energy Development Corp. (REDC) in harnessing the country’s hydroelectric power capabilities.

The two companies signed a joint-venture agreement to build and develop mini-hydropower plants using run-of-river resources, for renewable and efficient energy production while minimizing environmental impact.

REDC has over 100 megawatt of mini-hydropower projects under development clustered in Quezon, Camarines Sur, Bukidnon and other provinces. This represents a $400-million investment in mini-hydropower development. Early this month, REDC broke ground in the Rangas mini-hydropower project in Camarines Sur. Its next ground breaking is the Upper Labayat project in Quezon, scheduled for the first quarter of 2016. REDC, through its subsidiary Philippine Power and Development Co., has three operating mini-hydropower plants all in Laguna. The operating plants sell the power output to Meralco.

“Our wide experience in working with sustainable-energy sources has allowed us to maximize its potential through our long-term approach of using best of breed international technologies combined with local excellence in deployments” said Dexter Y. Tiu, REDC chief executive.

This joint venture with Meralco for mini-hydropower projects will use the feed-in-tariff scheme mandated by the Renewable Energy Act of 2008, where the rate is guaranteed by the government for 20 years at P5.90 per kiloWatt-hour.

By partnering with REDC, the initiative marks Meralco’s first foray into mini-hydropower development, a

renewable-energy source set to bring forth more than $40 million in annual savings while reducing the country’s carbon-dioxide emissions. The power generator and distributor sees the Philippines’s abundant water resources as a key to giving millions of consumers more affordable access to electricity that is clean, sustainable and renewable.

The joint venture will lead to a series of project groundbreaking of mini-hydropower plants starting from the first half of 2016 in select regions, following REDC’s vision for its clustered development strategy. The clustered system uses the same transmission lines, infrastructure development, and other fixed costs that result in economies of scale.

Heeding the government’s call for more renewable- energy sources, REDC excels through operational efficiency, focused redevelopment and the introduction of the latest European technology for energy-production optimization.

This joint venture’s first set of hydropower plants will be operational by 2019.

For its technical expertise, REDC has, likewise, tapped Manny M. Vergel III of Vergel Consult, the country’s only Filipino World Bank consultant on mini-hydropower plants, to pursue its projects. Vergel, who is often regarded as “The Father of Mini-hydropower in the Philippines,” has brought more than a dozen mini-hydropower plants to operation from inception.

REDC is a subsidiary of Pure Energy Holdings Corp.

Businesses urged to tap $2-Trillion halal market

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HILIPPINE businesses, especially food manufacturers, are encouraged to get certified to capture into the huge $2-trillion halal industry and increase their share of the market.

Glenn Peñaranda, commercial counselor of the Department of Trade and Industry (DTI)Foreign Trade Service Corps, said the halal market has been growing, owing to rising awareness about the halal concept and rising disposable income of majority of Muslim countries.

Peñaranda also cited the rapid growth of the Muslim population, which is projected to comprise 26 percent of world population by 2030.

As of 2010, Muslims worldwide reached 1.6 billion, of which 252 million were in Asean.

He identified key halal markets as Indonesia, Malaysia, Gulf Cooperation Council (GCC) member-countries, North African countries, Pakistan and other Middle Eastern countries.

Other key halal markets in non-Muslim countries include India, China, European countries, the Americas and South Africa.

Apart from food products, Peñaranda said halal also covers pharmaceuticals, fashion and services such as finance, tourism and logistics.

To seize these business opportunities, he advised local businesses to secure halal certification by a credible halal-certifying body recognized by the importing country.

In the Philippines, Peñaranda said the number of certified companies has reached 514. PhilExport News

NewsSunday BusinessMirror

A4 Sunday, December 20, 2015

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firms in China keen Typhoon Nona damage reaches 20on Japanese relocating businesses to PHL ₧1.8B+; death toll climbs to 24 A

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By Rene Acosta

he devastation wrought by Typhoon Nona (international code name Melor) in the agriculture and infrastructure sectors continue to rise, even as the weather disturbance has already veered out of the country.

tained its preparedness for humanitarian assistance and disaster response (HADR) for tropical depression Onyok in support to the efforts of local disaster management offices in regions 10 and 13.

“In times of disaster we have to focus our efforts in HADR. We have to be proactive in our actions in order to mitigate the effect of the said tropical depression,” said Col. Jose Elly Alberto, acting chief of staff of the 4th ID. The command earlier activated five disaster response task groups all over Caraga and Region 10, while also activating the Emergency Response Company that was initially deployed in Cagayan de Oro for HADR. “ The 4th Infantry Division is the biggest force multiplier

for our rescue efforts. We thank our soldiers that despite their efforts in confronting the threat groups, they still managed to dedicate their efforts in supporting the local government units in ensuring safety of our people,” Alberto added.

As forecasted, Onyok made landfall in Caraga on Friday, but weather forecasters said it has weakened into a low pressure area as it reached land.

As of Saturday Onyok was w ithin the v icinit y of Davao Oriental.

All public storm signals have been lifted in Mindanao, although occasional heavy rains may still occur in Caraga, Davao, Northern Mindanao and the provinces of Lanao del Sur, Maguindanao and Northern Cotabato.

bout 20 Japanese electronics companies based in China have expressed keen interest on relocating their operations here in the Philippines next year, citing, among others, the quality of the Filipino talent pool.

“There are renewed interests among the Japanese companies, especially those that are located in China, to transfer [their bases] from China to the Philippines or to Vietnam or Indonesia,” bared Francisco Ferrer, Philippine Exporters Confederation Inc. (Philexport) trustee representing the electronics sector.

Ferrer said that some of these companies have started relocating in the country this year, and more are coming in 2016 amid escalating wage rates in China, and the quality of Filipino talent pool. “[Wages here in the Philippines are] steady, [and] our history will tell us that increases in wages here are not drastic.... That is very useful

if you are in manufacturing, because you can plan better on your costs, how much you are going to sell your products; you can project,” he said.

Ferrer further said that Japanese investors also factored in the “ideal” manpower stability in the Philippines.

“While they are watching the policies of the government, they do not want inconsistent policies, their ultimate requirement is still good, productive workers. [They also prefer] improved infrastructure, so movement of products will be cheaper,” he added.

Each company is expected to invest $20 million to $100 million, he said. Ferrer added that these new investments can generate 25,000 new jobs next year.

He said most of these Japanese companies want to relocate in Laguna, Batangas and Cavite, where support industries are located.

PHILEXPORT News

A ccord i n g to t he Nat ion a l D i s a s t e r R i s k R e du c t io n and Management Council, the amount of damage due to the flooding caused by the typhoon has already reached a total of P1,893,728,483.

Of this amount, P1,659,759,879 is in the area of agriculture in

regions 3, 4A, 4B, 5 and 8, while the remaining P233,968,604 covers government projects.

Also, the number of fatality count has already reached 34, while the number of injured has risen to 24.

Five others are still missing.

Meanwhile, the Army’s 4th Infantry Division (ID) has main-

Rebisco’s Ng leads BIR’s list of Top 500 individual taxpayers for 2014

‘Going Global Together’ book launched at AIM DENR executive calls

for stronger measures to help migratory birds

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ebisco Group founder Jacinto L. Ng Sr. topped the Bureau of Internal Revenue’s (BIR) 500 individual taxpayers for 2014, dislodging last year’s top 1, eight-division boxing champion and Sarangani Rep. Emmanuel “Manny” Pacquiao.

Data released by the BIR on Friday showed that the FilipinoChinese businessman, who is also chairman of Asia United Bank Corp., paid a total of P280.11 million last year.

His payment is far higher than Pacquiao’s P210.31 million.

Mercur y Drug Corp. President Vivian Que Azcona came in third, after paying a total of P153.55 million.

Logging tycoon and Palawan Gov. Jose Chavez Alvarez is the fourth-highest individual taxpayer, with P73 million.

Jacinto Co Ng Jr., who is the CEO of real-estate developer Elantival Enclaves Inc., made it to the top 5, after paying P66.87 million.

T he President’s sister and TV personality Kristina “Kris” Bernadette Cojuangco-Aquino is the sixth-highest payer, with P54.53 million.

The others who made it to the top 10 are Smart Communications executive Ronaldo Romero Soliman, Coca-Cola Bottlers Philippines.

Inc. president and CEO William Schultz, San Miguel Corp. (SMC) CEO Ramon See Ang and UBS Investments Philippines Managing Director Lauro Baja III. They are the seventh to 10th, respectively.

And while most of those who made it to the top 10 are businessmen, television personalities also made it to the list.

These include Sharon CunetaPangilinan at No. 13, John Lloyd Cruz, 22; Anne Curtis-Smith, 32; Vic Sotto, 45; Piolo Pascual, 48; Coco Martin, 66; and Sara Geronimo, 72.

The complete list of the Top 500 Individual Taxpayers for 2014 can be accessed on www. bir.gov.ph. PNA

A book, focusing on business with inclusive growth in the Philippines, has been launched on December 14 at the Asian Institute of Management (AIM) Center in Makati. Spearheading the book launch are (from left) Maria Elena Herrera, AIM faculty; Jaime Zobel de Ayala, chairman Emeritus of Ayala Corp.; Doris Magsaysay-Ho, chairman of Asean Business Advisory Council Philippines 2015; Hazel Zuellig, representative for the Zuellig family; Jikyeong Kang, AIM president and dean; and Federico Macaranas, author of the book, at the launch of the book. STEPHANIE TUMAMPOS

By Rizal Raoul Reyes Contributor

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ILIPINO entrepreneurs must shun the bandwagon mentality and be more innovative in their pursuit of entrepreneurship.

Dean Rodolfo Ang of the Ateneo de Manila University pointed out that entrepreneurs belonging to the micro, small and medium enterprises (MSMEs) must exert more efforts to build inclusive business in the country. Although there are many entrepreneurs interested in building inclusive business, Ang lamented the lack of innovative ideas among them.

“Sometimes, it goes to the point of being ridiculous because of the lack of business models,” Ang said in his reaction representing the academe during the recent book launch of Going Global Together held at the Asian Institute of Management. Professors Maria Elena Herrera and Federico Macaranas authored the book.

In expounding his point, Ang cited the case of Rags 2 Riches cofounded by social entrepreneur and President Reese Fernandez Ruiz. It is a fashion house that creates urban artisanal home and fashion masterpieces. At the center of Rags 2 Riches operations is a community of artisans who are helping families escape poverty by crafting products from

overstock fabric and indigenous materials.

“Rags 2 Riches spawned a lot of clones,” he said.

He cited the importance of the book because it can preserve business models for study of microentrepreneurs.

“The value of the book preserves models for study. It exposes them to a full range of models to follow,” Ang said.

Aside from that, Ang said Going Global Together also provides the whys and the hows of entrepreneurship.

AIM has partnered with Asean Business Advisory Council that showed the significance of value-driven partnerships wherein MSMEs are integral parts of Global Value Chains. These partnerships were perfectly captured in the book.

“AIM has a wealth of experience in the Asia-Pacific region, since our founding in 1968. We train our graduates to navigate in complex and dynamic spaces, especially in this part of the world where Western knowledge and practice may not always produce the same result,” AIM President, CEO, and Dean Jikyeong Kang said. “This book arrives at a very opportune time when inclusive financial services are extended and committed to smaller business owners. The full potential of our economic community is realized when these MSMEs are integrated into the expanding national and international system.”

“In a world of complexity, uncertainty and vulnerability, Apec [Asia Pacific Economic Cooperation] 2015’s themes of inclusion and resilience were relevant. These were the themes that echoed again and again in the stories of MSMEs that we uncovered. There were many ways and methods to make business more inclusive. The trigger can come from large businesses, government and MSMEs themselves. What is important is for everyone to take a long-term view and focus on shared value,” Herrera said in a media statement.

Among the stories in the book are: Double A’s “Paper from Khan-Na” program, where the company pledged a buy-back guarantee for mature trees and support for farmers in Thailand; Nestlé’s Nescafe Plan, which supports farmers in southern Philippines to grow Robusta coffee beans; Jollibee’s Farmers Entrepreneur Program to help farmers in the Philippines get organized into cooperatives and trained to deliver on requirements of large buyers; and Aero Montreal in Canada, which launched the MACH Initiative to enhance the capability of MSME suppliers in the aerospace supply chain.

“Small businesses coming together with big businesses is indeed a milestone in Apec’s history,” noted Macaranas.

“Coming from 1996, I am pleased to note that the Philippine government carried on with its tradition of bringing the small and big businesses together in the theme of Apec 2015.”

6 Pinoy crewmen missing after Danish cargo ship sinks near Indonesia

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ATAM, Indonesia—Six Filipino crewmen were missing on Thursday, after their cargo ship collided with a chemical tanker and sank off western Indonesia, officials said.

Six other people were rescued.

The Danish cargo ship Thorco Cloud collided with the chemical tanker Stolt Commitment about 13 kilometers off Indonesia's Batam

island late Wednesday, port official Gajah Rooseno said. The collision ripped a large hole below the water line on the cargo ship, causing it to sink, he said.

The tanker, operated by Stolt Tankers, suffered only minor damage.

Rooseno said the cargo ship had 12 crew members from Ukraine and the Philippines, and was

operated by Copenhagen-based Thorco Shipping.

Thomas Mikkelsen, CEO of Thorco Shipping, said the ship’s captain was among those rescued.

He said the vessel was coming from Japan and was en route to western Africa before crossing Brazil.

Rooseno said authorities were investigating the cause of the

collision but initial evidence indicated that one of the ships had attempted to take a short cut and violated traffic separation rules.

Col. Ribut Eko Suyanto, chief of the naval base in Batam, said more than 100 rescuers were deployed on three navy ships and seven rescue boats to search for the missing crew members. The search was halted after nightfall

and would be resumed on Friday morning, he said. “ We w ill investigate the possibility that the missing crewmen are trapped under the wreckage,” Suyanto said.

He said antipollution craft from Singapore were on standby in case of an oil spill. The cargo ship was carrying about 560 tons of fuel, Rooseno said. AP

HE country’s top biodiversity official on Saturday underscored the need for stronger international cooperation for the protection of migratory species of wild animals and their habitats in the face of climate change.

Director Theresa Mundita Lim of the Biodiversity Management Bureau (BMB) said global and regional cooperation will play a vital role in ensuring the survival of migratory species that continue to face various threats, which now include the adverse impact of climate change.

This, as the Department of Environment and Natural Resources (DENR) also gears up for the annual bird count in connection with the Asian Waterbird Census (AWC) next month.

The Philippines will host the 12th meeting of the Conference of Parties (COP) of the Convention of Migratory Species of Wild Animals (CMS) in 2017.

Lim expressed high hopes that important decisions and binding agreements between signatories to the treaty will be reached during the meeting to boost global effort to protect migratory species and conserve their habitats.

“The meeting is very important, as parties to the treaty will tackle ways to further enhance cooperation that will protect migratory animals,” she said.

An environmental treaty under the United Nations Environment Program, the CMS provides a global platform for the conservation and sustainable use of migratory animals and their habitats. There are currently 120 signatories to the CMS. Also called the Bonn Convention, it is the only global convention specializing in the conservation of migratory species, their habitats and migration routes. The official said there is a need to look into the impact of climate change to the migration patterns of these threatened species.

Besides establishing obligations for the parties to the treaty, CMS promotes concerted action among the countries where the migratory species pass through, also called Range States.

Parties to the CMS are obliged to protect migratory species, conserve or restore their habitats, mitigate obstacles to their migration controlling other factors that might endanger these species.

The Philippines became a party to the CMS in 1994.

The meeting is expected strengthen commitment to pursue set goals and objectives for the protection of migratory species, Lim said.

Along with the Department of Foreign Affairs (DFA), the DENR-BMB will take the lead in organizing the international convention, which is expected to gather heads of UN member-countries that acceded to the Convention on Migratory Species.

As host to the meeting, the Philippines has the privilege to set the tone and recommend topics to be tackled by the participants. Aside from whales, dolphins and migratory birds, the DENR-BMB has particular focus on the protection and conservation of sea or marine turtles and bats. Jonathan L. Mayuga

www.businessmirror.com.ph

Science

BusinessMirror

Sunday

Sunday, December 20, 2015

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PHL nuke congress tackles safety measures for radioiodine therapy

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he Health and Medicine Track of the Third Philippine Nuclear Congress held recently discussed the safety measures for administering radioactive iodine therapy, or radioiodine, to a patient with hyperthyroidism.

“Any use of radiation on patients must be justified. You need further tests to make sure that iodine therapy is the best option,” Eulinia M. Valdezco of the Philippine Association for Radiation Protection said during the multisectoral forum organized by the Department of Science and Technology-Philippine Nuclear Research Institute (DOST-PNRI).

Radioactive iodine, which takes the form of an oral capsule, stops the overproduction of the hormone thyroxine by the thyroid gland, which characterizes hyperthyroidism. Thyroxine helps in the digestive process, brain development, heart and muscle function, and bone maintenance. Excessive amounts of the hormone leads to sudden weight loss, sweating, rapid or irregular heartbeat and irritability. Among the safety measures mentioned in the discussion were the medical team’s preparedness for an emergency, such as when the patient is not able to swallow the capsule and expels it instead, thus, spawning the possibility of contamination.

The medical team for the radioiodine treatment is composed of an authorized physician, radiation-protection officer, medical physicist and nuclear-medicine technologist. The team will ensure the protection of the patient,

hospital workers and the patient’s own family. Another safety measure is having the patient himself take the capsule and put it into his mouth, instead of the technologist opening the canister and giving it to the patient.

The necessity of wearing a lead gown or apron was also raised.

Said lead gown should not have been used in x-ray radiology, said Valdezco, formerly the head of the nuclear regulations, licensing and safeguards division of PNRI. An xrayed gown is not optimized protection as it provides less protection, she explained.

“In nuclear medicine, one should minister a radiopharmaceutical to the patient. The source of exposure to radiation is now the patient. Our concern is the safety of the people around the patient—whether it is the workers in the hospital, the doctors who are doing the procedure, the family members once the patient is released from the hospital, and the general public that he encounters in the course of his work,” Valdezco said.

The cells of the thyroid gland are the main cells that can take in iodine. Thus, the other cells in the body are not heavily affected by radiation exposure. Upon absorption of radiation, the thyroid cells shrink and destroyed. There are other treatments available for hyperthyroidism, namely antithyroid medication and surgery.

Radioactive iodine is the most common treatment used in the US. S&T Media Service

Sustainable living now a new form of luxury

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high-end luxury development is offering most residents a pleasant surprise: reduced water and energy bills. In addition to plush surroundings, highly efficient bathroom shower heads, water closets and other fixtures engineered to utilize less water than the traditional models, units have been designed to let in natural light and ventilation—the lack of which mean higher energy usage.

A conscious attempt to allow residents a more sustainable lifestyle is part of the new levels of luxury being offered by the premium, low-density development in Filinvest City in Southern Metro Manila. Designed by US-based Architecture International and Leandro V. Locsin and Partners, Botanika’s three towers each will feature an atrium at the core to let in light and nurture the lush greener y strategically located along the balconies opening out to the central space.

“We will further match worldclass architecture with lavish amenities such as a variety of gardens that connect to one another and upscale finishes inside the units, including homogenous tile flooring and a grand entry door,” according to Catherine Ilagan, Filinvest executive vice president.

Nevertheless, residents are likely to appreciate the conscious effort to use less resources while maximizing residents’ exposure to lush vegetation, an innovation in high-end condominium living.

This scheme is key to Botanika’s goal to be certified green upon

its completion by the Philippine Green Building Council through its Building for Ecologically Responsive Design Excellence Green (Berde) Building Rating program.

It aims to measure and verify the performance of buildings above and beyond existing mandatory building and environmental regulations.

“Overall, buildings contribute to global greenhouse-gas emissions almost as much as transport does,” according to Rowena Ramos, principal consultant of Ecotektonika which advised Botanika’s managers on how to adhere to the Berde guidelines. Botanika has set out to reduce water and energy consumption in addition to devoting as much as 70 percent of its 1.55-hectare land area to greenery as a means to improve air quality for its residents, as well as the rest of the community.

Inside each of the units, great effort has also been exerted to ensure indoor air quality. All paint finishes are water-based acrylic that is lead-free and has low volatile organic compounds and, thus, emits little odor. The balcony door and windows, which are all operable, also provide cross ventilation. In addition, tinted tempered glass and balcony overhangs minimize heat.

Nevertheless, green advocates will most appreciate Botanika’s parking provisions. The parking floors will all be underground offering residents great convenience and easy access to their vehicles while preserving open green space for all.

Students of Catarman High School take their turn in viewing the full moon through a telescope at the school’s quadrangle. The activity is part of the Camiguin Nightscapes project by Kilaha Foundation.

Astronomy for Camiguin teachers and students

Looking at the moon up close Story & photo by Stephanie Tumampos | Special to the BusinessMirror

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t was 7:30 in the evening. Around 80 high-school students gathered around the two telescopes installed on the quadrangle of Catarman High School in Catarman, Camiguin. They were excited to see the full moon rising above Mount Timpoong and HibokHibok in a November sky.

For some, it was their first time to look the sky through a telescope, and for most of them, it was their first time to see the moon up close.

Thanks to the efforts of Kilaha Foundation of Camiguin, a nongovernmental organization that is based and operates in Camiguin, the students experienced and appreciated the night sky through the organization’s school-toschool after-class seminar about the universe called the Camiguin Nightscapes project.

Learning

Kilaha means “learning” based on the oldest language of the Camiguin people. “Kilaha is an organization with the goal of preserving the island of Camiguin and advocate new ways to promote the island. With that in mind, we came up with the nightscape project,” Andres Lluch Narros, president of Kilaha Foundation said.

Narros is from Barcelona, Spain, and came to Camiguin in 2011 for his thesis in his doctoral studies in anthropological development in University of Barcelona. He eventually stayed on the island with his Kilaha team composed of locals and expatriates to help the local

community preserve its culture and environment.

With the help of the provincial government of Camiguin and the local offices of departments of Education (DepEd), Environmental and Natural Resources (DENR), and of Science and Technology, Kilaha targeted 6,000 students to inculcate in them the importance of the night sky, balance of the natural environment and climate-change.

The organization also aims to develop and build a nightscape park for stargazing not only for students but also for tourists.

“We started with a seminar last summer given by the people from the Philippine Atmospheric, Geophysical and Astronomical Services Administration. Kilaha invited them to teach us astronomy,” said Roselyn Jurial, Science Division in-charge at DepEd Camiguin.

Spanish astronomer

She added that Kilaha invited astronomer Dr. David Pino from Universitat Politècnica de Catalunya in Barcelona, Spain, to teach them in-depth lessons in astronomy and climate-change for three weeks in August.

“Around 30 teachers attended

Pino’s seminar. They were applicants who were qualified to teach, and were screened before they were chosen,” Jurial said.

School-to-school campaign

On September 2015 Kilaha and the astronomy-trained science teachers started and launched the school-toschool campaign almost every night at different schools.

“We already have reached more than a thousand out of our target of 6,000 students,” Narros said.

T he school-to-school campaign starts with an outdoor lecture about the universe and the solar system by the science teacher using a projector and a tablet installed with an astronomybased application. They “travel in the space” to each planet and components of the solar system.

This is followed by the lecture on the importance of planet Earth and its features. Capping off the lecture on Earth is a discussion on climate change and the importance of conserving the environment.

Excited to look through the telescope

The most exciting part for the students is the session on looking through the telescope. Most of them expressed their excitement as they wait for their turn to get a peak of the full moon. As a result, the science teachers were elated to have found a new subject to teach the students of Camiguin in a nonconventional way.

“It is challenging since we needed to do further studying and research as we might encounter students who might ask us questions. We go to schools every night with different students and I enjoy doing this a lot said,” said Sheila Balingcos, one of the teachers at Camiguin Nightscapes. Another teacher, Maria Luisa Yecyec, have

expressed her gratitude as they have learned a lot and shared what they have learned. She also expressed her need to learn how to teach the students in a nonconventional way.

“Because of the huge number of students we encounter every night, sometimes I wonder how we could come up with something that could further gain their interest in astronomy as much as we did,” Yecyec said.

“You need patience, and learn more techniques and strategies to keep the attention of students while we teach them,” said Joy Salingay, a fellow teacher at the Camiguin Nightscapes.

Destination for stargazing

Together w ith K i la ha and the science teachers of DepEd Camiguin that Jurial heads, they are optimistic the project will continue next year. Narros commends the cooperation of the Camiguingnon. He intended, on behalf of Kilaha Foundation, that the projects will move forward. “We are looking at the possibility of extending this project after the first phase which will end in March.” Although there are some areas needed to be fixed, Jurial gave assurance that the project will continue.

“Definitely, this is a good project and I have more projects in mind to develop new approaches in teaching astronomy to the students of Camiguin.” Juarial is looking at promoting Camiguin as an ecotourism destination for astronomy in the country. This means bringing tourists to their proposed nightscape park for stargazing.

Narros emphasized that this project would be a near possibility with the coordination of DENR Camiguin as Mount Timpoong and Hibok-Hibok has just been named in November as Asean Heritage Park.

How safe is your house from earthquake?

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he farther a community is from an earthquake’s epicenter or point of origin, the less hazards it will experience.

Right? Wrong!

Joan Salcedo of the Department of Science and Technology-Philippine Institute of Volcanology and Seismology (DOSTPhivolcs) debunked this notion during a recent forum on disaster risk reduction and management (DRRM) at the DOST in Bicutan, Taguig City.

According to Salcedo, there are other factors that determine whether hazards from earthquakes are set to occur besides distance from the epicenter.

These factors are the local soil conditions, intensity of ground shaking and the structural integrity of houses, buildings and other infrastructures. Salcedo, with the help of some forum participants, recounted earthquake incidents in the country that brought considerable damage to communities kilometers away from the epicenter. Reducing disaster risk, she said, is a function of reducing vulnerability through education.

On the other hand, reducing exposure to hazards requires informed actions, such as seismic retrofitting and relocation. Seismic retrofitting is the modification of buildings and houses to

make them resistant to ground shaking and collapse during tremors. Hence, a good approach to improving the implementation of DRRM measures is to start with public awareness, Salcedo said.

Salcedo guided the participants in answering an earthquake-v ulnerabilit y check list developed by Phivolcs dubbed “How Safe is My House?” Besides discussions on earthquake preparedness, a lecture on the technology behind DOST’s Project National Operational Assessment of Hazards (NOAH) was delivered by Neil Eneri Tingin, one of the project researchers.

In a separate interview, Tingin

said familiarization with and appreciation of DRRM technologies is crucial in utilizing them, thus, leading to reduced occurrence of hazards. Tingin also demonstrated the beta version of the new NOAH web site, which features a simpler user interface for easier map navigation and new DRRM tools that are all publicly accessible. The DRRM forum convened members of local government units, students and teachers from Las Piñas, Manila, Marikina, Quezon City and Taguig. The forum was organized by the DOST-National Capital Region office as part of the department’s recently concluded “Science Festival.” S&T Media Service

A6 Sunday, December 20, 2015 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

On urban planning once more

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HIS space has, at every opportunity, supported the idea of planning for our cities, not just to solve such problems as poor housing, bad traffic and environmental pollution, but to improve the physical appearance of our communities. We have argued in this connection for the implementation of the transportation plan that the Japan International Cooperation Agency (Jica) has put forward for Manila, the decentralization of the government, the decongestion of Metro Manila and, above all, the establishment of urban-planning commissions for our rapidly growing towns and cities.

The news broached the other day by Executive Director Arnel Casanova of the Bases Conversion and Development Authority (BCDA) that the government has plans to convert Clark Field in Pampanga to a backup capital for the Philippines reopens the subject. Casanova said the BCDA is ready to allocate some 200 hectares of the former military base for use of the government and prospective residents.

Whether Clark Field can serve as a backup capital of the country is debatable.

What is not debatable is that Metro Manila is paralyzed and rendered inhospitable after every typhoon. Some government departments are rural-oriented and have no justification for being in Manila. Some footloose offices can be located anywhere, just so long as they are easily accessible to the population.

Location is not the only problem of Metro Manila. Other problems are the unbearable traffic mess and the gargantuan housing issue. The traffic problem can be solved systematically, as the Jica plans indicate. On the housing problem, we proposed in one recent article the adoption of the Mumbai, India, model of urban development, which privatizes slum clearance, home building for the poor, the development of commercial centers, tourist areas and the regeneration of the city skyline.

What commends privatization models of urban development is their “winwin” character. If done carefully, with due regard to the needs and sensibilities of affected families, particularly poor families, slum clearance and urban-renewal programs can be unambiguously beneficial to all participants in the exercise— the developers (profits); the government (higher collections of taxes and other sources); and, above all, the families (new housing units, greater opportunities for employment).

The idea of establishing urban-planning commissions in the country’s cities and municipalities is so important and urgent, it cannot be left to the discretion of the Executive. It must be raised to the level of Congress, made out into a law, so that the reconstruction and rehabilitation of our urban centers can be assured.

The current administration, with its remaining life of six months, cannot be expected to carry out this project. That task will have to be borne by the government that will come into power after the May 2016 elections.

Right now, we have a land-use law that lays down the parameters for the proper use of our lands. We can have a law mandating the establishment of urban-planning commissions in our cities and municipalities that will ensure the achievement of the goals of proper land use—the livability, productiveness and aesthetics of our urban centers.

Asean economic integration and its effects on PHL tobacco industry O

Database

By Cecilio T. Arillo

NE of the primordial goals of the Asean Economic Community (AEC) is the establishment of a Single Market and Production Base (SMPB) among membercountries.

For the accomplishment of the SMPB, member-countries agreed to undertake five core elements: 1. Free flow of goods; 2. Free flow of services; 3. Free flow of investments; 4. Free flow of capital; and 5. Free flow of skilled labor.

In the first core element, member-countries agreed to undertake the following: 1. Elimination of tariffs; 2. Elimination of nontariff barriers; 3. Harmonization and standardization of each member’s rules of origin; 4. Harmonization and standardization of each member’s trade and customs process, procedures and relevant information; 5. Member-countries integrate their customs structures, modernization of their tariff classification, customs valuation, origin determination, customs clearance, adoption of risk-management techniques, among others; and 6. Asean Single Window will enable member-countries of a single submission of data and information; single and synchronous processing of data and information; and a single decision-making for customs clearance of cargo, which expedites customs clearance, reduces transaction, time and cost, thereby enhancing efficiency and competitiveness.

As viewed from the AEC Blueprint, the amount of customs duties on the exchange of goods between member-countries is reduced little by little by the gradual reduction in tariff rates and, ultimately, would result to zero imposition of customs duties. This zero imposition of duties is apart from the elimination of nontariff barriers.

According to an economic and legal analyst at Mighty Corp., this eventual zero-tariff rates and ultimate nonimposition of customs duties on imported goods in pursuance of free flow of goods has its positive and negative effects on our country in areas of taxation, trade, farming and manufacturing industry, among others.

Positive effects of free flow of goods on PHL cigarette industry

WITH the ultimate nonimposition of customs duties, cigarette manufacturers can save more on the cost

Gospel

Sunday, December 20, 2015

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of importing raw materials, thus, lowering the cost of production. If the cost of production of cigarettes is lowered or reduced, manufacturers can definitely produce more and sell them to the consumers at a relatively reduced priced. Therefore, many consumers can afford to buy, and it is ultimately good for manufacturers and the entire industry.

With the free flow of goods, there will be more available markets for raw materials that can be availed of by our manufacturers from member-countries. Raw materials from other member-states can easily be brought in to the Philippines at a less cost and nonstringent conditions brought about by the eliminations of nontariff barriers. Our manufacturers can, therefore, have enough, if not more than sufficient, supplies for continuous manufacturing operation.

With the free flow of goods among member-states, raw materials from our country can also easily penetrate the markets of other member-states. With this, our tobacco farmers can export their products (tobacco leaves) to customers from other member-states. With a wide market for their products, our farmers will definitely earn more.

On the part of our cigarette manufacturers, especially the small ones, will be given the opportunity to export their products to buyers from member-states.

Their finished products can easily penetrate foreign markets due to cheaper price brought about by nonimposition of customs duties by the importing country and the simplified and less stringent import procedures, a form of elimination of nontariff barriers.

Possible negative effects of free flow of goods on PHL cigarette industry

WITH the ultimate nonimposition of customs duties and abolition of nontariff barriers, raw materials for cigarettes, as well as finished products (cigarettes), from member-states can easily penetrate our domestic market. Here lies the danger and the likely scenario that our market will be flooded with cheap tobacco products, both as raw materials and as finished cigarettes.

If that scenario will occur, and assuming that the prices of those imported tobacco products are a lot cheaper than locally produced

N those days, Mary arose and went with haste into the hill country, to a city of Judah, and she entered the house of Zechariah and greeted Elizabeth. And when Elizabeth heard the greeting of Mary, the babe leaped in her womb; and Elizabeth was filled with the Holy Spirit and she exclaimed with a loud cry, “Blessed are you among women, and blessed is the

items, then there will be a dire effect on our tobacco and cigarette industry. Clearly, on the part of our tobacco farmers, their products can hardly compete with cheaper imported ones. They will be compelled to sell their tobacco at a price at par or much lower than the imported ones. Our tobacco farmers will, therefore, suffer and that will have a tremendous effect on our economy.

Also, on the part of our cigarette manufacturers, once our market will be flooded with cheap imported cigarettes with prices much lower than that of locally produced ones, then, of course, our manufacturers will suffer, most especially small manufacturers. If this happens, multiple negative effects on our economy will surely occur.

The question is: Will this free flow of goods (nonimposition of customs duties and abolition of nontariff barriers) put an end or, at the least, curb cigarette smuggling in the Philippines?

The answer is no. Note that, despite the nomenclature “free flow of goods,” this does not mean that goods, or tobacco products, in particular, from member-states can be imported without paying taxes at all. On the contrary, like any other importations from nonmember-states, all importations will be assessed with, and taxes collected thereon.

To clarify, what is being done away with free flow of goods is the imposition of customs duties only. Therefore, any other taxes on importations will still be collected by our government. These taxes are the value-added tax (VAT) at 12 percent and excise/ advalorem tax. These two taxes are not customs duties but purely internal-revenue taxes. It must be noted that there is nothing in the AEC Blueprint, much less any agreement on the matter that expressly and impliedly does away with internal-revenue taxes.

Therefore, with the imposition of VAT and/or excise tax on importations, some importers will still be tempted in resorting to measures that will help them avoid, much less save from, these taxes.

Hence, it is very still possible that some importers will resort to undervaluation, underdeclaration, misdeclaration and misclassification on their importations.

fruit of your womb!

“And why is this granted me, that the mother of my Lord should come to me? For behold, when the voice of your greeting came to my ears, the babe in my womb leaped for joy. And blessed is she who believed that there would be a fulfillment of what was spoken to her from the Lord.”– Luke 1:39-45

Opinion BusinessMirror

opinion@businessmirror.com.ph

Sunday, December 20, 2015 A7

Real men

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Free Fire

By Teddy Locsin Jr.

WO presidential candidates are thumping their chests to show who is the meaner gorilla between them. The one who started it insists he is a serial killer. He insists that he ordered or himself carried out the murder of people who might be guilty of noncapital offenses, like dealing or taking drugs. But he won’t show us where the bodies are buried. The other one merely reacted to the first one’s so far baseless claim to be a killer. He challenged him to a slap fest. Hmmmmmm… Oh boy, Mar, that’s so…never mind. But since he issued the challenge, the other guy has the choice of weapons: bare palms or handbags. If handbags are chosen, then the challenger, in turn, can specify Hermes. If the first one accepts, the Bureau of Internal Revenue can investigate him for undeclared wealth.

Is this the way for real men to behave? The blockbuster movie

based on the best-selling novel, To Kill a Mockingbird, has a softspoken hero—a quiet Southern lawyer and his town’s representative to the state legislature, who defends a black man from a crime he could not have committed because he is crippled.

The hero’s name is legendary: Atticus Finch, played by Gregory Peck, the last real man on the silver screen. Atticus is what a real man is like, said Brett and Kate McKay in their online book, The Art of Manliness, teasing out the qualities of the Mockingbird hero.

First because he does the job that no one else wants to do; in this case, defend a black man charged with the rape of a white trash girl. This is like defending Janet Napoles—but it is not taking her money and then dropping her case but keeping the money just the same. It is sticking it out through thick and thin like in a failed marriage just because

you gave your word.

A real man lives with integrity every day. He is the same man in public and in private. He doesn’t pick his nose at home anymore than he does in public. Why defend a black man in a white town? Everyone thinks he is guilty because the girl is trash, sure, but white; and he is black and, therefore, horny.

Atticus says, “Well, folks are entitled to think what they want, but I am obliged to obey my conscience.”

The thing majority rule can’t touch is conscience because the voice of the people is the farthest thing from the voice of God or we would have to accept that the dictator Marcos was divinely ordained since he did get nearly 100 percent of the votes cast to ratify his imposition of martial law. And if any more proof was needed, a supine Supreme Court— and it was the best we have ever had in terms of erudition and integrity, none that followed comes close to

it in either respect—stamped its approval by calling it what it obviously was, a fait accompli which begs the question, Is anything done constitutional because it’s done and there ain’t nothin’ we can do ‘bout what’s done?

Not for Atticus Finch who said, “Here was a case that went to the essence of man’s conscience. I couldn’t go to church and worship God if I did not try to help that man.” Mind you, Atticus believes that white people are better than black folk; but just the same both of ‘em are people and people in trouble got to be helped; simple as that. Atticus added that he couldn’t represent his town in the state legislature either if he couldn’t stand square his actions with his conscience.

Another quality of a real man is that he lives with quiet dignity. The father whose rape of his daughter was pinned on the black man whom Atticus defended spat on Atticus’s

face and said, “Too proud to fight, you nigger-lovin’ bastard?” He didn’t call him chicken because the whole town knew that Atticus had quietly picked up a rifle as a rabid dog charged down the street, took careful aim and put it down.

Atticus replied, “No, too old.” He pulled out a handkerchief, wiped his face, threw it and walked away.

The “spitter” got it right. Atticus was too proud to stoop to fightin’ a base-born man. As he told even his daughter when the slur slipped her mouth, “Don’t say nigger, Scout, that’s common.” So I think I will watch my words from here on.

That’s all for now. There’s more to follow in this season which is preeminently not a season of revelry so much as one of reflection on what it is about being a man that made man’s Maker want to be born a man Himself, and therefore die like a man if that was the price of saving men. Merry Christmas.

Can 1 million women be wrong?

By Ed Diener, Sarah D. Pressman and Sonja Lyubomirsky Los Angeles Times / TNS Forum

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O happier people live longer?

An article in the British medica l jour na l Lancet made headlines this month claiming the answer to that question is no. The researchers based their conclusion on data from the Million Women Study in Britain, and it contradicts a large body of research, not to mention conventional wisdom. Because it was a large study, and the Lancet is a well-regarded publication, the message seemed definitive: Happiness doesn’t matter for your health. But the Lancet study is far from definitive. Happiness does matter for your health. A lot. The data the researchers analyzed are indeed interesting and potentially valuable.

The Million Women Study surveyed women, ages 50 to 69, on multiple issues and followed them for 10 years. More than 846,000 of the participants answered a question about happiness, and after a decade of follow-up, 4 percent of them had died. So far, the researchers say the data show that among healthy, first-world women in their 50s, happiness does predict who will die in their 60s, but this effect evaporates once you statistically account for numerous

other factors. We believe there are methodological concerns about the study that call this finding into question.

First, the happiness measure used in the Lancet study is weak.

In well-crafted research, social scientists think carefully about question and answer design, the ordering of items and how many questions are too many before the participant gives up and stops answering or stops answering honestly. The Million Women Study asked just one happiness question: How often do you feel happy (from “rarely/never” to “most of the time”). A better approach would have been to ask the question in more ways, with a broader range of positive emotions for participants to choose from. What’s more, the happiness question was the 306th item in a 316-item survey.

After answering so many questions about medications, diet and health history, a respondent might be a lot less happy than when she started, and a lot less cooperative.

In fact, about 400,000 women in the Million Women Study apparently quit before reaching this question. If that’s not sufficient to show that the approach was flawed, consider this: The study also looked at other psychological factors associated with health, and it showed that none of the ones measured in the same way as hap-

piness—with one question and late in the survey—affected longevity either. One of those factors was stress, yet stress is a noncontroversial, established correlate of nearly all health problems. If the study’s stress measure doesn’t show a relationship to longevity, the researchers might question whether their measures of other psychological factors, including happiness, are acceptable.

The key to the Lancet study is its statistical analysis of the data.

The average participant was 59 when she enrolled in the Million Women Study. The women selfreported their health (from “poor” to “excellent”) at the beginning of the study, and the authors then applied statistics to these data to counter the possibility that the participants’ health itself was what was influencing their happiness, rather than vice versa. This makes sense, but it changes the nature of the question being answered.

After all, a woman’s happiness for the first six decades of her life could have affected her health, yet the analysis essentially took that out of the picture, as though the middleaged subjects were a blank slate.

The authors’ question, then, was “Does happiness at 59 predict life span beyond its effects during the first six decades?” We also have concerns with the authors’ choice to statistically control so many

other variables. In our work, we hypothesize that the key ways positive feelings influence health are through changes in behaviors.

For example, research has shown that positive individuals sleep better, smoke less and exercise more, all of which are known to predict longevity. Thus, when the authors control for all these variables, they are taking away a major path through which happiness is likely to influence longevity. This is like trying to determine whether a hurricane causes damage after controlling for its wind speed. Again, the question is changed, from “Will happy people live longer” to “Will happy people live longer if we take away their healthier behavior?” Similarly, the authors “held constant” variations in factors such as income, having a romantic partner and religiosity, and yet variations in these factors are likely to be associated with happiness and better health.

Controlling for such factors takes away a major part of why happiness is good for us.

Finally, this analysis of the Million Women Study should not be taken out of context. Other studies—some with more objective health measures and longer periods of follow-up—have found robust links between happiness and longevity. Consider the famous Nun Study: Although it had

a much smaller sample than the Lancet study, it started when the nuns, all living in similar conditions with similar diets, were 22 and followed them until death.

It found that happy nuns survived considerably longer than less happy nuns. This finding is consistent with dozens of other studies, including laboratory research. Cleverly designed investigations have shown that feeling positive is associated with living longer with HIV, cancer and heart disease, and is even tied to a decreased chance of catching a cold after being exposed to the virus.

So can a million women be wrong? We believe what the authors of the Lancet study found was not whether happiness is related to longevity but this: Whether a one-item happiness question will predict a shortened life in healthy middle-aged women, if you delete how happiness has affected their health for their first six decades and if you erase the influence of key pathways to health such as social support, smoking and body mass index. Before we judge the true meaning of this research, we plan on waiting to see the effect of happiness once the study is complete, and we have data on many more of the million women (not just 4 percent of them). We are happy researchers, and so we plan to be around when that happens.

Support for Israelis sinking

By Rebecca Vilkomerson Los Angeles Times TNS Forum

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SRAELI Prime Minister Benjamin Netanyahu has recently been trying to mend some fences in Washington—particularly with liberal Democrats.

Speaking at the progressive Center for American Progress last month, he put it bluntly: “It’s vital to understand how important it is for me that Israel remain an issue of bipartisan consensus in the United States.”

Unconditional support for Israeli policies used to be the norm in Washington from both parties. But no more. New polling by the Brookings Institution shows how deep the partisan divide has become. Asked about the current outbreak of violence in the region, a plurality of Democrats, 37 percent, blamed continued Israeli occupation and the expansion of Jewish settlements; 35 percent blamed the absence of serious

peace talks. Even more telling: 49 percent of Democrats in the poll recommended imposing economic sanctions or taking other serious action in response to Israel’s continued settlement building.

As for Republicans, 40 percent blamed Palestinian extremists for the current spate of violence. The reality is that Israel has the upper hand in this situation, and that’s evident in the casualty counts: Over 100 Palestinians killed and 10,000 wounded since October 1, compared with 19 Israelis killed and 165 wounded.

In the West Bank, Israel conducts violent raids in hospitals, restricts access to water and controls Palestinian freedom of movement. Israel also turns a blind eye to violence against Palestinians by Israeli settlers, who now number nearly half a million. Gaza, which the international community still considers occupied territory because of how Israel controls its borders, is in the midst of a serious humanitarian crisis.

Liberals in the United States are becoming more aware of these problems and of Israel’s record more generally. Adalah, the Legal Center for Arab Minority Rights in Israel, maintains a list of more than 50 laws that discriminate against non-Jews in Israel, including laws that allow the state to confiscate Palestinian land for public purposes and laws that deny state funding to institutions that teach about the Nakba, the 1948 exodus from Israel when perhaps 700,000 Palestinian Arabs fled or were expelled from their homes.

Israel is currently considering a bill that would require representatives of non-governmental organizations that receive foreign money to wear special badges to identify them in the Israeli parliament. The government has arrested Palestinian citizens of Israel for posts they write on Facebook, demolished homes and stripped social services from relatives of violent attackers. These are poli-

cies that should outrage progressives, so it’s no wonder Netanyahu is losing traction with Democrats.

A Gallup poll in February 2015 found that the percentage of Democrats sympathizing with Israel more than Palestinians had fallen 10 points, to 48 percent, over the previous year. Israel’s billions of dollars in military aid are still sacrosanct in Washington—but the cracks in the consensus are showing. In July when the Palestinian village of Susiya was under immediate threat of being razed

by Israeli authorities, Rep. Anna G. Eshoo, Democrat-California, and 10 other Democratic representatives urged Secretary of State John F. Kerry to intervene.

In June 19 representatives sent Kerry a letter asking him to take up the issue of Palestinian children in Israel’s military detention system. American labor unions, a backbone of the Democratic Party, might be the next group to take up Palestinian rights. In September the United Electrical workers

became the first national union to endorse a boycott, divestment and sanctions against Israel. Last month the Connecticut branch of the AFL-CIO voted to encourage the national AFL-CIO to endorse the boycott movement as well. As opinions shift among the Democratic base, US officials increasingly are willing to risk criticizing Israel more bluntly.

Last month Kerry visited Israel hoping to initiate steps that might calm the current violence. Netanyahu had the gall to demand international recognition of Israel’s settlement blocs in the West Bank before he’d dial back the military crackdown.

The White House’s response was, for once, an assertive no.

This new firmness suggests the administration knows how many Democrats find Israeli policies unacceptable. As Israel continues to hurtle down an antidemocratic path, its chances of regaining bipartisan support in the US fade in the distance.

Sports BusinessMirror

A8 | Sun

day, December 20, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

RENOLDS HANGS ON L

INDSAY RENOLDS shook off a fumbling start with a bunch of birdies, then turned in a couple of late par-saving putts to salvage a four-under 68 and keep a one-stroke lead over new pursuer Scott Barr of Australia after two rounds of the Philippine Open at the Luisita Golf and Country Club in Tarlac on Saturday.

Renolds, who shot a flawless 66 on Friday to wrest control of the weathershortened $300,000 event, stumbled with his first bogey on No. 1 but quickly checked his skid with five birdies in the next 11 holes then parred the rest, including a pair of up-and-down feats on Nos. 15 and 16 to preserve a 34-34 card.That also kept the Canadian on top of the elite field with a 134, but Barr charged back from joint 11th to solo second at 135 with an eagle-spiked 66 even as Miguel Tabuena stayed in the thick of things despite falling a shot farther back at 136 after a 69 he highlighted with a closing eagle on No. 9.

“It‘s exciting to be in this position. My game feels good, I feel good,” Renolds said after wrapping up two rounds of tough play

TIERRO, ARCILLA WIN

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OP-seed Patrick John Tierro and No. 2 Johnny Arcilla trampled their respective rivals in varying fashions to remain on track of their keenly awaited showdown for the Palawan Pawnshop-Palawan Express Pera Padala Open crown at the Naga City Tennis Club in Cebu on Saturday.

Tierro, who routed Nilo Ledama, 6-0. 6-0, and held off Janji Soquino, 7-5, 6-2, in the first two rounds of the top-level event, pounced on Roel Capangpangan’s injury to score a 6-1, ret. win to seal a semis duel with third seed Vicente Anasta, who dominated Alvin Labastida, 6-1, 6-1, in the opener but struggled past Deo Talatayod, 6-3, 7-5, and fifth-ranked Fritz Verdad, 7-5, 6-2, to stay in the hunt for the top P40,000 purse.

Arcilla, seeking a sweep of the Open titles in the seasonending event of the country’s premier circuit sponsored by Palawan Pawnshop, overpowered qualifier Gabriel Riconala, 6-1, 6-2, whipped Argil Canizares, 6-0, 6-3, before disposing of Leander Lazaro, 6-1, 6-0, to arrange a Final Four clash with No. 4 Ronard Joven, who eased past Christopher Encarnacion, 6-2, 6-1, trounced Kennex Abadia, 6-3, 6-2, before surviving No. 6 Arvin Ruel, 4-6, 6-1, 4-3 (ret.) in the quarterfinals.

virtually unscathed. “I’m not really worried or nervous. We will see what tomorrow [Sunday] brings. It is just another round of golf for me.”

Finnish Kalle Samooja also rebounded from an opening bogey mishap with seven birdies but missed joining Barr at second with a bogey on the 18th as he settled for 67 and a share of third with Tabuena, Indian Gaganjeet Bhullar, who shot a 69, and Korean Giwhan Kim, who carded a second straight 68 in daylong drizzle.

Tabuena chipped in from 12 feet for eagle on the last hole of a solid 5-wood second shot from 236 yards to stay in the hunt for a first Asian Tour win. The young Filipino was disappointed he did not take advantage of his birdie chances.

With Khalin Joshi of India (67), South African Keith Horne (68), Ireland’s Niall Turner (68), Thai Chinnarat Phadungsil (70) and young Korean ace Jeunghun Wang (70) assembling similar 137s, and Simon Griffiths of England and Thai Tirawat Kaewsiribandit turning in 68 and 70, respectively, for 138s, a fierce final round shootout looms among at least 12 players

slugging it out for the top $54,000 purse in the closing of Asian Tour event.

Like the rest of the contenders, Barr vowed to dish out his best and go for the pin even as he hoped to keep his hot putting going.

“Obviously this is a huge week. For me I just want to play my best and it is going well. I’ll try and be aggressive tomorrow [Sunday],” said Barr, who turned his fortunes around on the greens after receiving a putting tip from former Asian Tour member Ahmad Bateman.

Charles Hong—who, like Tabuena, has won at Luisita this year—fired a 68 but stood five strokes off Renolds at 139 in a tie with Juvic Pagunsan, who fumbled with a late bogey for a 71, former champion Mardan Mamat (71), Korean Charlie Wi (69), Janne Kaske of Finland (68) and Aussie Adam Groom (69).

The other fancied local bets struggled in wet condition with Tony Lascuna and Elmer Salvador barely making the cut at 144 with 72 and 71, respectively, heading to the final round of the 54-hole event.

SHIELA-JANINE, MAICA-APRIL MAKE SEMIS

By Lance Agcaoili

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HIELA PINEDA and Janine Marciano, and Maica Morada and April Hingpit clinched semifinals berth in bracket B of the rain-drenched Beach Volleyball Republic (BVR) Christmas Open on Saturday at the SM Sands by the Bay in Pasay City.

Marciano and Pineda, and Morado and Hingpit won three straight games each to advance to the crossover semifinals on Sunday.

Marciano and Pineda first beat Rose Mary Cailing and April Romero, 21-14, 2115, then downed the Fille Cayetano-Denden Lazaro duo, 21-9, 22-20, before completing the sweep with a 21-19, 21-13 victory over Mich Morente and Mich Otoshi.

“We didn’t have much preparation, so we just enjoyed the game. It’s just hassle because the rain is very strong,” Pineda said.

“We really enjoyed and we’re happy

that we played well and got a 3-0 record,” Marciano said.

Morada and Hingpit, on the other hand, defeated Cayetano and Lazaro, 21-10, 21-10; Morente and Osotshi, 21-17, 21-18; and Cailing and Romero, 21-12, 21-11.

The semifinals will be played on Sunday morning, while the finals are set in the afternoon.

Cayetano and Lazaro placed second in bracket B with a 1-2 won-lost record, Morente and Otoshi wound up with a 0-2 card, and Cailing and Romero lost all their three matches.

The semifinalists from bracket A were to be determined late Saturday.

Bea Tan and Rupia Inck went 3-0 in the bracket A preliminaries—they beat Mariel Sinamban and Julie Anne Tiangco, 21-9, 21-7; Alexa Micek and Charo Soriano, 21-18, 2118; and Arielle Estranero and Vina Alinas, 21-19, 19-21, 15-6.

BARAKO Bull’s Emman Monfort (left) and Alaska’s Chris Banchero go for the loose ball. NONOY LACZA

ACES CLOSE IN ON SEMIFINALS

By Joel Orellana

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LASKA survived Barako Bull’s late rally to eke out a hard-earned 108-100 win and assure itself of a playoff for an automatic semifinal seat in the Philippine Basketball Association (PBA) Philippine Cup on Saturday at the Smart Araneta Coliseum.

The Aces saw their 16-point lead cut to only four after Emman Monfort hit a jumper from the corner for a 95-99 count with three minutes and 15 seconds remaining.

But Calvin Abueva, Vic Manuel and RJ Jazul delivered the knockout punches to secure the victory for the Aces, who finished the elimination phase tied with San Miguel Beer at 9-2 won-lost.

Alaska could reach the semifinals outright if Rain or Shine (8-2) loses to Nlex in Saturday’s second game.

A win by the Elasto Painters will create a three-way tie among Rain or Shine, Alaska and San Miguel Beer. But the

James’s courtside crash raises safety concerns

C

DENDEN LAZARO (right) and Fille Cayetano maintain their poise as they hit the sand. ROY DOMINGO

WARRIORS GET BACK AT BUCKS

GAMES CANCELED

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OOTBALL action in Season 78 of the University Athletic Association of the Philippines on Saturday at the Moro Lorenzo Football Field were canceled because of incessant rain.

Canceled were the matches between defending champion Far Eastern University-Diliman and Ateneo and De La Salle-Zobel against University of Santo Tomas. They will be playing on January 16 in the same venue.

The league will go on a holiday break and will resume action on January 9 with the second round hostilities in juniors basketball at the Filoil Flying V Arena.

O

AKLAND, California—Stephen Curry scored 26 points and Draymond Green fueled a key fourth-quarter run that helped the Golden State Warriors avenge their only loss of the season by beating the Milwaukee Bucks, 121-112, on Friday night.

Six nights after handing the Warriors their first loss of the season and ending a 28-game, regularseason winning streak dating to last season, the Bucks nearly dealt Golden State its first home loss since January 27 against Chicago.

The game ended with some heated words between Green and OJ Mayo as the teams left the court. Security and a few other players got in the middle of it before things calmed down and both teams retreated to their locker rooms.

It didn’t come easy, as Golden State trailed by as many as 15 points in the third quarter and by 11 points with less than eight minutes to play before

Green and Curry took over to improve Golden State to 26-1. Detroit’s Andre Drummond had 33 points and 21 rebounds to help the Pistons outlast the Chicago Bulls, 147-144, over four overtimes.

The Pistons scored the first seven points of the fourth overtime and hung on.

Chicago’s Jimmy Butler, who scored a careerhigh 43 points, made an off-balance three-pointer to cut it to 145-144 with 4.7 seconds left.

The Bulls immediately fouled Reggie Jackson, who made both free throws. Butler then missed a three as time expired, ending the Bulls’ fourgame winning streak. LaMarcus Aldridge had 26 points and 13 rebounds as the San Antonio Spurs remained undefeated at home with a 115-107 win over the Los Angeles Clippers.

Tony Parker scored 10 of his 21 points in the fourth quarter for the Spurs, who are 15-0 at home this season. Chris Paul had 27 points and 10 assists

for Los Angeles. Blake Griffin added 25 points and DeAndre Jordan had 16 points and 17 rebounds for the Clippers. The Toronto Raptors downed the Miami Heat 108-94 after DeMar DeRozan scored 30 points and Kyle Lowry added 21, while Andrew Wiggins had 32 points, 10 rebounds and six assists to lift Minnesota, 99-95, over Sacramento.

In Philadelphia, Arron Afflalo had 22 points and seven rebounds as the New York Knicks beat the 76ers, 107-97, for their third straight win, and the Atlanta Hawks defeated the Boston Celtics, 109-101. In other games, Tobias Harris and Nik Vucevic each scored 25 points as the Orlando Magic downed the Portland Trail Blazers, 102-94; the Indiana Pacers beat the Brooklyn Nets, 104-97; the Dallas Mavericks defeated the Memphis Grizzlies, 97-88; the Phoenix Suns overcame the New Orleans Pelicans, 104-88; and the Utah Jazz were 97-88 winners over the Denver Nuggets. AP

Elasto Painters will emerge No. 1 seed because of a superior quotient. The Aces and Beermen, meanwhile, will fight it out for the No. 2 spot.

“I’m happy we are 9-2. Going into the playoffs, our defense is pretty solid but we need to get better,” said Alaska Head Coach Alex Compton, who had six players scoring at least nine points.

Abueva had 22 points and 13 rebounds, Manuel added 21 markers and seven boards, while Jazul chipped in 11 points.

Cyrus Baguio and Sonny Thoss each had 11 points for Alaska, which threatened to break the game wide open after erecting an 82-66 spread late in the third period.

But the Energy, needing a win to stay in the hunt for a twice-to-beat advantage in the first phase of the quarterfinals, kept the game close behind Willy Wilson, Chico Lanete and Rodney Brondial and were down, 90-92, with 5:34 left in the game.

LEVELAND—For years, National Basketball Associastion (NBA) fans have been willing to pay thousands to sit courtside and watch some of the world’s most powerful athletes run and jump.

Up close, there is nothing quite like the experience.

On Thursday night that thrill came with a heavy price.

Chasing after a loose ball, Cavaliers superstar LeBron James crashed into the wife of Professional Golfers’ Association champion Jason Day, sending her tumbling violently backward from her seat in an incident that could push the league to consider changes to protect its fans.

Ellie Day, who gave birth to her second child last month, was hospitalized from the impact of the scary encounter with the 6-foot-8, 250-pound James.

Ellie Day was released from MetroHealth Medical Center early Friday morning, according to hospital spokesman Tina Shaerban Arundel.

James was unable to slow himself in time from plowing into Ellie Day, who was sitting next to her husband enjoying the Cavs’ 104-100 win over the Oklahoma City Thunder.

It’s not uncommon for players to dive into the stands in NBA games. On a few occasions there have been minor injuries, but to this point nothing serious. But fans are paying big money for premium seats that are closer than ever, creating the potential for problems.

Cavs Coach David Blatt, who spent years coaching in Europe, has long been worried about courtside-fan safety.

“It’s always concerned me, the sideline seats,” he said. “Always concerned me, because things like that, when you’re talking about players of this speed and physicality and effort level, it’s not a simple thing. The powers that be are the ones that really need to decide how to deal with that. He [James] made an honest attempt at the basketball, that’s all, obviously. We all hope she’s OK.” The league has recently taken steps to improve safety, including cutting the number of photographers allowed to sit along the baselines to reduce the risk of contact with players.

With a full slate of Christmas Day games just a week away, it may be time for the NBA to consider implementing changes to make the game experience safe for fans so close to the floor.

Other leagues have had to address fan safety following incidents. Major League Baseball this month recommended extra protective netting for seats near the field after a summer of fans being hurt by foul balls and flying bats. In 2002 a young fan died two days after being hit by a deflected puck at a Columbus Blue Jackets game. Brittanie Cecil was killed two days before her 14th birthday, a tragedy that led to the installation of more protective netting at National Hockey League arenas. AP