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A broader look at today’s business
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Tuesday, Monday,November December 18, 29, 2014 Vol. Vol.10 10No. No.40 81
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ANALYSTS claim UNDERSPENDING RESULTED IN SLOWER 2014 ECONOMIC GROWTH
PAPAL VISIT 2015
‘Infra projects to boost 2015 GDP’
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he Bangko Sentral ng Pilipinas (BSP) expressed confidence that the national government will want to add fuel to the economy and accelerate the disbursement of public funds next year, following the lower-than-expected growth, measured as the gross domestic product (GDP), in the first nine months, which was blamed on below-target fiscal spending.
16 DAYS INSIDE
+ marks the luxe spot The lay faithful
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EAR Lord, as we end the Year of the Laity, we are reminded of the lay faithful that have as their own vocation to seek the Kingdom of God by illuminating and ordering temporal affairs according to the plan of God. They carry out in this way their call to holiness and to the apostolate, a call given to all the baptized. May we remain the lay faithful You wish us to be. Amen. COMPENDIUM OF THE CATECHISM OF THE CATHOLIC CHURCH, FR. SAL PUTZU, SDB, AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com
Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com
Life
MADONNA HIT WITH SECOND MAJOR LEAK AS 14 SONGS SURFACE »C2 »
BusinessMirror
Monday, December 29, 2014
In an interview with Global Source Partners, a New York-based think tank, BSP Governor Amando M. Tetangco Jr. said the national government was likely to accelerate its spending activities in 2015, particularly on infrastructure projects. Tetangco also said the so-called downside risks include continued government underspending, which could prove a bigger worry than disinflation, which is a period of slowing inflation rates.
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+ marks the luxe spot
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IRST creating a scintillating stir in fall/winter 2009, the luxury collaboration line +J of Uniqlo returns following overwhelming demand from global consumers hankering for its timeless yet forward-looking style and affordable quality. Just in time to dress up stylish individuals in this season of merrymaking that plays on well beyond Christmas, the global lifestyle brand reissues a “best of” +J collection—thoughtfully curated garments from past seasons that capture the +J philosophy. The collection includes items such as the classic men’s button-down shirt, an indispensable building block for any stylish man’s wardrobe. For men and women, the collection’s wool items such as sweaters, blazers and coats are rich in character, blending easy-cozy style with sartorial structure. Meanwhile, +J’s signature down jackets and parkas—weightless and warm—remain subtle testaments to the perfection of technical outerwear. Throughout the +J collection from Uniqlo, precision tailoring, avant-garde fabrication and modern silhouettes combine to create the stylish personal uniform for a modern world that’s more down on quiet fabulosity. The +J Collection is available in Uniqlo SM Megamall, SM Aura Premier and Glorietta 5 in special prices until December 31. ■
A SKIRT made from a wool blend that’s lightweight and warm. It features a high waist and a mermaid silhouette that enhances female curves. It looks great with a top tucked in or out.
THIS elegant men’s jacket is made from top-quality Australian wool flannel material with an intriguing mixed color tone. Although it is thin and slim-fitting, it retains the signature refined texture of wool. Pair it with bottoms of the same material for a stylish look.
THIS premium dress shirt is made from long-fiber cotton with a high thread count for an unparalleled smooth and fine texture. The slim cut creates a sharp, stylish outline. Designed to exact specifications with details such as real shell buttons.
THIS long-sleeved dress has been painstakingly cut to accentuate and flatter those curves. Calculated design details such as darts and slightly higher breast pockets create a complex but very stylish silhouette. Made from wool-nylon blend, it offers easy elegance.
By Bianca Cuaresma
Continued on A2
LIFE
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Ju.d bakes fruitcakes year-round
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BusinessMirror
TheElderly
A8 Monday, December 29, 2014 • Editor: Efleda P. Campos
Ju.D bakes fruitcakes year-round
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news@businessmirror.com.ph
Senior dental problems
By Rizal Raoul Reyes | Correspondent
By Cheridine P. Oro-Josef, MD, FPAFP, FPCGM
URING Christmas, Ju.D Lao’s artisanal fruitcakes lord it over other fruitcakes in the market. Food critics, such as Nancy Reyes Lumen and Margaux Salcedo, have given Lao’s fruitcakes high marks in terms of taste and quality. Lao, 60, proves age is just a number and not a hindrance to becoming a productive individual. In a recent interview with the BusinessMirror, Lao said she started to sell her products to her mother, friends and relatives. However, Lao’s brother challenged her to sell to the market after he told her “you are nothing if you are only selling to your friends and families.” “I had to sell my fruitcakes door-todoor just like the salesmen of encyclopedias during those days,” Lao said. Lao, who started baking fruitcakes in 1975 after graduating with a Fine Arts degree from the University of Santos Tomas, never attended any cooking classes, but engaged in self study by reading a lot of cook books. She also experimented on recipes that caught her fancy. “And, since I’m from a big family, we’re never short of guinea pigs or, should I say, brave and curious souls,” she said. Lao said consistency is key in maintaining the quality of the fruitcakes. She said she has not changed any of their ingredients since 1975. One thing Lao does not do is sell fruitcakes during the off, season because walnuts get rancid easily. “When we started, we always got rancid walnuts between the months of February and September, so we decided to do fruitcakes only when walnuts are fresh. That became our tradition even though the availability of walnuts has become all-year round now. We somehow retained this tradition though we still bake a few pieces from time to time just to satisfy some customers,” she said. Aside from pursuing her passion,
making fruitcakes allows her to do her own corporate social responsibility. Through the years, her work force has been composed of neighbors’ maids, out-of-school youth, parents from schools, who are in financial need but cannot take regular jobs. “We only sell fruitcakes during the Christmas season. We cannot afford to hire regular employees so this arrangement has been a win-win situation for all of us. I remember a few years back, we had a group of young ladies from El Shaddai Choir, who came to help us, and, from time to time, they’d burst out singing while working. That was a very lovely and memorable Christmas for us,” Lao said. She said she had a hard time perfecting her first fruitcake because of the absence of a cookbook and Google to get the instructions. “It was hardest for the Ju.D Blue, which is coffee-flavored fruitcake. We had to source for Blue Mountain Coffee flavor and the right liquor to age the fruitcake. For that, we spent about eight months. Lately, we have been experimenting with some cookies and it’s been a big challenge for us, too,” she said. With her cooking experience, Lao already penned two vegetarian cookbooks for the TzuChi Foundation available in about 50 TzuChi chapters worldwide. In Manila, the cookbooks are available at the TzuChi office in Quezon City. As of now, Lao does not sell vegetarian dishes. But she is not closing the door to pursue the vegetarian route to encourage more people to become vegetarian to
RIGHT TO HEALTH
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N older person said, in one of my lectures, “Doktora, the only problem we seniors really have is lack of money!” According to the Food and Nutrition Research Institute, one of the reasons Filipino senior citizens do not meet their daily protein requirement is dental problems. There is an old saying about the eyes being windows to the soul, but the latest medical and dental researches show that the mouth truly is a window into one’s overall health. Senior dental problems can be as common as dry mouth or such severe cases as periodontal disease. People suffering from severe periodontal disease may double the risk of fatal heart disease. Tooth infection has the potential to cause bacterial endocarditis. This is an inflammation of the heart valves and tissues due to bacterial infestation. People in their old age are at higher risk for malnutrition. One of the reasons for such is ill-fitting dentures. Bad dentures can be a culprit in poor nutrition among older persons. Older persons lose their natural teeth when their jaw bones start to shrink due to aging. The jaw bones continue to “remodel” itself leading to improper fitting of dentures. Many times, older persons complain that their dentures no longer fit them well; it starts to become “slippery” so they start limiting the kind of food that they eat. Chewing becomes an ordeal. Add to that the embarrassment of not being able to munch meat and hard food during parties or festive occasions. Another social issue affects dental care. Senior parents are hesitant to ask money from their children for their dental health. They endure the difficulty and the discomfort of not having the proper dentures and eventually they become malnourished. It is advisable that older persons look into their dental health as well as they take good care of their physical health. Sometimes, oral problems are sources of metabolic problems. With Babit Dacal-Welsh, DMD For comments: e-mail to cheridinemd@gmail.com
JU.D LAO with one of her fruitcakes
lessen the killing of innocent animals. Lao is a volunteer for the TzuChi Foundation. Aside from helping in calamities, she teaches cooking vegetarian dishes and do translations for the foundation. Lao, along with her fellow TzuChi members, actively helped in relief operations after the country was hit by typhoons Ondoy and Yolanda. “TzuChi initiated the cash-forwork program in the disaster-stricken areas because we want the victims
to maintain their dignity,” Lao said. She starts selling her fruitcakes in November. But since fruitcakes can “stand the test of time,” she usually keeps a few classic fruitcakes on hand for anyone with the craving for fruitcakes between January and November. If not, it’ll take three weeks to have them aged. Asked what motivates her to cook, she said: “Maybe I love to share or maybe I like to see happy faces once they tried my products.”
Scarecrows outnumber people in dying Japan town
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AGORO, Japan—This village deep in the rugged mountains of southern Japan once was home to hundreds of families. Now, only 35 people remain, outnumbered three-toone by scarecrows that Tsukimi Ayano crafted to help fill the days and replace neighbors who died or moved away. At 65, Ayano is one of the younger residents of Nagoro. She moved back from Osaka to look after her 85-year-old father after decades away. “They bring back memories,” Ayano said of the life-sized dolls crowded into corners of her farmhouse home, perched on fences and trees, huddled side-by-side at a produce stall, the bus stop, anywhere a living person might stop to take a rest. “That old lady used to come and chat and drink tea. That old man used to love to drink sake and tell stories. It reminds me of the old times, when they were still alive and well,” she said. Even more than its fading status as an export superpower, Japan’s dwindling population may be its biggest challenge. More than 10,000 towns and villages in Japan are depopulated, the homes and infrastructure crumbling as the countryside empties thanks to the falling birthrate and rapid aging. First the jobs go. Then the schools. Eventually, the electricity meters stop. Neither Prime Minister Shinzo Abe’s ruling Liberal Democratic Party nor any of its rivals have figured out how to “revive localities,” an issue that has perplexed Japanese leaders for decades. But local communities are trying various strategies for attracting younger residents, slowing if not reversing their decline. In Kamiyama, a farming community closer to the regional capital, community organizers have mapped out plans for attracting artists and high-tech companies. Nagoro is more typical of the thousands of communities that are turning into ghost towns or at best, open-air museums, frozen in time. The one-street town is mostly abandoned, its shops and homes permanently shuttered. The closure of the local elementary school
IN this November 6, photo, white smoke rises from an outdoor hearth at Tsukimi Ayano’s house sat by scarecrows she made in Nagoro, Tokushima Prefecture, southern Japan. This village deep in the rugged mountains of southern Japan once was home to hundreds of families. Now, only 35 people remain, outnumbered three-toone by scarecrows that Ayano crafted to help fill the days and replace neighbors who died or moved away. At 65, Ayano is one of the younger residents of Nagoro. She moved back from Osaka to look after her 85-year-old father after decades away. “They bring back memories,” Ayano said of the life-sized dolls crowded into corners of her farmhouse home. AP
two years ago was the last straw. Ayano unlocks the door and guides visitors through spotless classrooms populated with scarecrow students and teachers. When she returned to her hometown 13 years ago, Ayano tried farming. Thinking her radish seeds may have been eaten by crows, she decided to make some scarecrows. Now there are more 100 scattered around Nagoro and nearby towns. Like handcarved Buddhist sculptures, each has its own whimsical expression. Some sleep, their eyelids permanently shut. Others cuddle toddler scarecrows or man plows and hoes.
Ayano brings one along for company on her 90-minute drive to buy groceries in the nearest big town. But most remain behind, to be photographed and marveled at by tourists who detour through the winding mountain roads. “If I hadn’t made these scarecrows, people would just drive right by,” Ayano said. The plight of Japan’s countryside is partly a consequence of the country’s economic success. As Japan grew increasingly affluent after World War II, younger Japanese flooded into the cities to fill jobs in factories and service industries, leaving their elders to tend small farms. Greater Tokyo, with more than 37 million people
and Osaka-Kobe, with 11.5 million, account for nearly 40 percent of the country’s 127 million people. “There’s been this huge sucking sound as the countryside is emptied out,” said Joel Cohen, a professor at Columbia University’s Laboratory of Populations. Japan’s population began to decline in 2010 from a peak of 128 million. Without a drastic increase in the birthrate or a loosening of the staunch Japanese resistance to immigration, it is forecast to fall to 108 million by 2050 and to 87 million by 2060. By then, four in 10 Japanese will be over 65 years old. The population of Miyoshi, which is the town closest to Nagoro, fell from 45,340 in 1985 to about 27,000 last year. A quarter of its population is over 75 years old. To entice residents to have more children, the town began offering free nursery care for third children, free diapers and formula to age 2 and free health care through junior high-school. “The way to stop this is to get people to have more babies,” Mayor Seiichi Kurokawa said. “Apart from that, we need for people to return here or move here.” But it’s not an easy sell, despite the fresh air and abundant space. “You can’t just grab people by the necks like kittens and drag them here,” Kurokawa said. Getting residents of half-empty towns to accept newcomers can also be a challenge. In Kamiyama, to the east, the town still struggles to convince owners who are often relatives living in distant cities to open up abandoned homes for rent or renovation, said Shinya Ominami, chairman of a civic group that has led efforts to revive the town. In a briefing for potential investors and visiting officials, Ominami shows a slide of the town’s shopping street, dotted with houses that are empty, and then another with some of the buildings filled with new businesses—a bistro, a design studio, an IT incubation hub. “Once we accept this is the reality, we can figure out how to cope with it,” Ominami said. AP
4 Nueva Vizcaya centenarians each get P100,000 incentive
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AYOMBONG, Nueva Vizcaya —Four more elderly people here received cash incentives on December 23, from the provincial government as part of the recognition of senior citizens in the province. The recipients were Alfredo Ilas Ramos, 102, of Barangay Lantap in Bagabag town; Rufina Esteban, 100, of Barangay La Torre South in Bayombong town; Emelyn Naabos-Nganoy, 102, of Barangay Oyao, Dupax del Norte town; and Peter Dupingay, 106, Barangay Didipio in Kasibu town. The four elderly received P100,000 each from Gov. Ruth Padilla, together with Vice Gov. Lambert Galima Jr. and board members. The four represents the fourth batch of recipient centenarians of the provincial government’s cash incentive since the implementation of the Centenarian Ordinance early this year. The measure is one of the high-impact projects of the provincial government in recognition and support of the senior citizens in the province. PNA
Grant will help low-income Connecticut seniors get food
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EW HAVEN, Connecticut—The state’s federal delegation hoped it was just the beginning. Connecticut, one of seven states cut out of the Commodity Supplemental Food Program for decades, was successful this year in getting some money to help low-income seniors who are going hungry. US Rep. Rosa DeLauro, D-3, and US Senators Chris Murphy and Richard Blumenthal, both D-Conn., on December 22 said the exact amount the state will be allocated from the total $2.8million grant hasn’t been determined. They estimated, however, that 2,500, to 3,000 seniors in Connecticut will be able to get extra nonperishable food on a monthly basis through the program. Murphy said the average Social Security check is $1,200, which after rent and monthly bills doesn’t leave a lot for food. “This is desperately needed,” he said. DeLauro’s office said four in 10 low-income seniors have trouble getting enough money for food. Almost two-thirds, however, do not qualify for food stamps, now known as Supplemental Nutrition Assistance Program, or SNAP. The Commodity Supplemental Food Program helps those seniors who do not qualify for other government programs. The package, which would be available at food pantries, or delivered, if needed, will contain tuna fish, cereal, juice, evaporated milk, peanut butter, fruits, vegetables and macaroni. Murphy said people who go hungry are more susceptible to illnesses. Blumenthal said the country should be ashamed that any senior is going to bed hungry at night. “That is a disgrace,” he said. DeLauro, who has fought for food programs for decades, said they will continue to fight for more assistance. She said the government has a “moral responsibility” to end hunger, but not everyone in Congress feels that way. Tribune Content Agency, LLC
ELDERLY
Japan’s Abe unleashes stimulus plan to spur ECONOmIC growth
A8
OKYO—Japan’s Cabinet approved ¥3.5 trillion ($29 billion) in fresh stimulus on Saturday for the ailing economy, pledging to get growth back on track and restore the country’s precarious public finances. Prime Minister Shinzo Abe is wrapping up his second year in office hard-pressed to salvage a recovery that fizzled into recession after a sales-tax hike in April. The stimulus plan endorsed by the Cabinet includes ¥600 billion ($5 billion) earmarked for stagnant regional economies. It also lays out Abe’s vision for countering longer-term trends, such as Japan’s surging public debt, and a declining and aging population. “A strong economy is the wellspring of Japan’s national strength,” a summary of the plan released by the government said. It pledged to restore vitality to local regions to enable young Japanese “to have dreams and hopes for See “Japan,” A2 the future.”
PESO exchange rates n US 44.6520
ANOTHER MISSING JETLINER In this November 10, 2014, file photo, AirAsia Airbus A320-200 passenger jets are parked on the tarmac at low-cost terminal KLIA2 in Sepang, Malaysia. An AirAsia plane, with 161 people onboard, lost contact with ground control on Sunday while flying over the Java Sea, after taking off from a provincial city in Indonesia for Singapore. The planes in this photo are not the plane that went missing while flying from Indonesia to Singapore but one of the same models. AP/Lai Seng Sin
Unilever gets incentives for $120-million project By Catherine N. Pillas
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he Board of Investments has granted Unilever Philippines’s $120-million expansion project a pioneer status, the program having been classified as an investment in a “strategic” sector. According to the Omnibus Investments Code, a project receiving pioneer status is eligible for a six-year income-tax holiday (ITH), plus a two-year bonus, depending on whether the project meets certain conditions in rolling out the investment, such as in exporting. The ITH can be as long as eight years. The ITH incentive period in the case of a pioneer investment project lasts for as long as eight years maximum, while a non-
pioneer project is eligible for a minimum of four years. Other perks that the global consumergoods manufacturer is entitled to include duty-free importation of capital equipment; additional tax deduction on training expenses, and employment of foreign nationals, among others. Earlier Unilever committed to bring in “pioneering technology,” as it embarked on an expansion plan lasting until 2020. The expansion plan will entail investments of up to $120 million. Seventy-five percent, or $90 million, of the total amount was allocated for the purchase of new equipment, while the rest will be used to upgrade existing technology, and in the expansion and increase of Unilever’s asset base.
Specifically, the purchase of new equipment and improvement of existing ones will be in the processing, filling and packaging operations of its local manufacturing unit. The consumer-goods giant said that, by 2020, it will have acquired 58 new end-ofline packaging units, 60 new filling lines, and would have purchased 11 processing lines, on top of the modernization of existing equipment. Documents show the expansion plan was forecast to increase production capacity to 100,000 tons, but will be carried out incrementally or in phases. Unilever Philippines operates a plant in Pandacan, Cavite and Manggahan, where it produces laundry and personal-care products under well-known brands. It also processes food items.
n japan 0.3719 n UK 69.5901 n HK 5.7573 n CHINA 7.1769 n singapore 33.8735 n australia 36.3616 n EU 54.5960 n SAUDI arabia 11.8958 Source: BSP (23 December 2014)
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News BusinessMirror
Monday, December 29, 2014
‘Infra projects to boost 2015 GDP’
ILP. . . Continued from A12
Luzon grid’s requirements. Naturally, Petilla explained, the power output of the generating plants would be affected. Another major factor that will lead to a power crisis includes unscheduled power outages of old power plants. “The big problem really happens when one or more than one power plant conks out unexpectedly. Where do we get the power that is supposed to be supplied by that power plant that just broke down?” Petilla asked rhetorically.
Continued from A1
“I would say fiscal underspending rather than disinflation. I say this because confidence and aggregate demand remain buoyant to ward off disinflation. Private consumption and construction continue to contribute positively to growth,” Tetangco said. Analysts have since blamed the relative lack of growth-boosting government spending on local output growth averaging only 5.3 percent in the third quarter, sharply lower than growth averaging 6.4 percent in the April-toJune period. The industry sector grew by only 0.7 percent in the third quarter or sharply lower than growth of 2.9 percent in the second quarter. The services sector, which include the banks, among others, grew by 0.9 percent from 1.5 percent.
ILP, answer to power woes
At first, the intent was to procure modular generating sets either via lease agreements with power firms or direct purchase so that the government can produce as much 500 MW of additional capacity. But this was now impossible because it takes six months from the issuance of the joint resolution for the government to negotiate and sign a contract with the private sector willing to provide the additional capacity to the grid. This was no longer feasible as March 2015 approaches, according to Petilla. “The option to purchase or lease has diminished because there is no time [left],” the energy chief said. The only other option is the ILP program, which seeks to encourage heavy users of electricity to run their own generator sets during peak demand periods next year, instead of getting their supply from the Luzon grid. The electricity that would not be taken from the grid would be available to household and small users, preventing the feared rotating blackouts. Energy Committee Chairman Reynaldo Umali said the success of ILP largely depends on the cooperation of the malls, factories and other private establishments to use their own generator sets as the National Grid Corp. of the Philippines anticipates the supply of electricity to fall short of demand. Sen. Sergio Osmeña III, chairman of the Senate Committee on Energy, said in a recent hearing the ILP should be implemented voluntarily. “The ILP works better when it’s not mandatory, when it’s voluntary.” He explained some private firms are reluctant to commit a number because they might also need the capacity to run their own businesses when the power fails. Last week the top official of the Manila Electric Co. (Meralco) said the target is to gather up to 800 MW of committed interruptible load (CIL) capacity until January 31, 2015. The utility firm has, so far, signed up 38 ILP participants representing a CIL of 263.45 MW. When asked if ILP is enough to address the power shortage, Reyes said, “It could, but only when there would be no forced power-plant outages.” “We want to have a buffer, so to speak, so that if and when a power plant goes on an unscheduled shutdown we will have a backup supply to replace the power. So, you see, it really depends on how the power plants will behave next year,” Meralco President Oscar Reyes said in an interview.
But the central bank governor further said the outlook for fiscal spending down the line remains positive. “That said, the national government has not stepped back from its target on infrastructure spending; and we do badly need infrastructure,” Tetangco said. “We’re going to see spending for the improvements in relation to Apec [Asia-Pacific Economic Cooperation] meetings plus reconstruction following natural calamities in addition to the projects that are already in the pipeline,” he added. The government targets infrastructure spending to equal about 5 percent of the country’s gross domestic product in 2016. Other major risks to the country’s growth in 2015 mentioned by Tetangco include power shortages and natural disasters.
But the document also acknowledged the narrow policy options open to Japan’s leaders given the country’s massive public debt, which is twice the size of the economy. The government is sticking to its pledge to balance its budget by 2020, despite a recent decision by Abe to defer a tax hike due for next year until April 2017. Abe has sought to spur growth and end a long spell of deflation through aggressive monetary easing and increased
DECEMBER 29, 2014 | MONDAY TROPICAL DEPRESSION “SENIANG” WAS ESTIMATED AT 150 KM EAST OF HINATUAN, SURIGAO DEL SUR.
Tropical Depression is a cyclone category with winds of 45 - 60 kph. Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rains and showers.
Moody’s. . . Continued from A12 high levels for a president in the second half of their term,” it added. Moody’s, however, warned of increasing risks to what the international credit-rating agency called as an administration that has exhibited a “stronger degree of political maturity” and “improved credibility of national institutions”. “Political positioning ahead of the next elections in mid-2016 could stall the reform momentum,” Moody’s said. Longer-term issues are also seen to cause political unrest in the country in the coming years. “For the Philippines, the absence
Stock picks
(DPJ), the leading opposition party, issued a statement on Saturday expressing its disappointment with the stimulus plan, which it said relied on old pork-barrel tactics that have failed in the past. I t s a i d D PJ l aw m a k e r s wo u l d p u s h f o r p o l i c i e s “i n v e s t i n g i n people,” to help improve incomes and boost growth. Japan’s central bank is buying up to ¥80 trillion ($660 billion) in assets each month, mostly government bonds, to
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help spur inflation, but, so far, has not attained its target of 2-percent price increases overall. Data released on Friday showed inflation eased slightly in November as incomes and household spending dropped. Since wage increases have not kept pace with inflation, rising share prices and corporate profits have done little to stimulate consumer demand, apart from a rush of purchasing ahead of the April tax hike. AP
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Corp., the holding firm of the Sy family, no matter that its retail segment has grown due to holiday spending even as it enjoys stable rental income from its malls and office buildings. It said, however, it had flat residential property sales and signs of margin erosion at its property segment. SMIC’s shares closed last week lower to P798.50. VG Cabuag
Traders said investors will now pick stocks that have good potential for next year. “Select property and holdings might also take notice, especially those with double-digit growth potentials for 2015,” Escartin said. Broker Regina Capital, however, placed a hold recommendation on SM Investments
public spending. He also promised to undertake bold steps to break through the “bedrock” of Japan’s vested interests and bureaucracy, but has made little headway in areas such as labor and farm-sector reforms. After taking office for a third term following a snap election earlier this month, the prime minister faces growing pressure to show that his “Abenomics” strategy for nurturing growth through inflation can succeed. The Democratic Party of Japan
DEC 30 TUESDAY
of significant progress on unemployment, poverty alleviation and a distinct improvement on international benchmarks could lead to a ramping up of political noise,” Moody’s said. Moody’s also tackled the sea disputes between China and the Philippines—saying that the country will largely still run to diplomatic means to resolve the tensions. “The Philippines does not have the fiscal space to ramp up defense spending in response to emerging security risks. As such, it will continue to rely on diplomatic means to help defuse tensions,” Moody’s said.
Stock-market outlook. . . Continued from A12
Japan. . . Continued from A1
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BusinessMirror
Editor: Dionisio L. Pelayo • Monday, December 29, 2014 A3
CTA: PSALM owes BIR P9-B unpaid VAT
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By David Cagahastian
HE Court of Tax Appeals (CTA) has affirmed the Bureau of Internal Revenue’s (BIR) P9billion deficiency value-added tax (VAT) assessment against the Power Sector Asset and Liabilities Management Corp. (PSALM) for the sale of powergenerating assets in 2008.
In the case filed by PSALM to nullify the deficiency VAT assessment of the BIR, the CTA ruled that PSALM’s sale of power-generating assets of the National Power Corp. (Napocor) constituted transactions subject to VAT, thus affirming the multibillion-peso deficiency VAT assessment issued by the BIR against PSALM for certain transactions in 2008. PSALM said the repeal of Napocor’s VAT-exemption does not affect PSALM itself because PSALM has a separate VAT exemption granted by Republic Act (RA) 9136,
or the Electric Power Industry Reform Act of 2001 (Epira). PSALM presented as evidence a BIR ruling issued in 2002, wherein the BIR ruled that the privatization of Napocor assets by PSALM is not subject to VAT. BIR Ruling 20-2002 reads in part that: “Since the disposition or sale of the assets is a consequence of PSALM’s mandate to ensure the orderly sale or disposition of the property and thereafter to liquidate the outstanding loans and obligations of Napocor, utilizing the proceeds from sales and other property con-
tributed to it, including the proceeds from the Universal Charge, and not conducted in pursuit of any commercial or profitable activity, including transactions incidental thereto, the same will be considered an isolated transaction, which will therefore not be subject to VAT.” But the BIR argued that PSALM’s VAT exemption and the said BIR ruling have already been repealed by RA 9337, which amended certain provisions of the National Internal Revenue Code (NIRC), including the provisions on the imposition of VAT on goods and services. The CTA ruled in favor of the BIR, saying that RA 9337 had subjected the electric power industry’s main business activity, and all transactions considered as incidental to its main business activity, as subject to VAT. “With the enactment of RA 9337, the electric power industry’s main business activities were made subject to VAT. Therefore, by classifying petitioner’s income from its main business activity as subject to VAT, it follows that its incidental income shall likewise be subject to VAT,” the CTA said in its decision. The CTA said that since the sale
of the power-generating assets are the incidental transactions made by PSALM in its main business, such sales are subject to VAT. “Based on the foregoing, if petitioner’s property is one used in trade or business, the sale thereof shall be subject to VAT being a transaction incidental to its main business. Hence, even if petitioner’s property is classified as not being primarily held for sale or lease in the ordinary course of trade or business, the provision of exemption is negated by the fact that it is incidental to its main business and not merely an isolated transaction,” the CTA said. “Clearly, the sale by petitioner of its generating assets regarded as real properties used in trade or business and the lease of its Naga Complex shall be subject to VAT under Sections 106 and 108 of the Tax Code, as amended by RA 9337. There is no provision under the Tax Code that exempts the said transactions from VAT nor subjects it as zero-rated,” the CTA added. Thus, the CTA affirmed the BIR’s deficiency VAT assessment against PSALM for P9.56 billion for transactions made in 2008, inclusive of delinquency interest.
medical mission in Negros Occidental
World Medical Relief Inc (WMRI) President and CEO George Samson and WMRI volunteer Mike Montelibano interview polio victim Edgar Millionada (left) of Barangay Bagtok, Silay City, during a recent medical mission in Negros Occidental. WMRI will be replacing Millionada’s dilapidated wooden crutches. WMRI was founded in 1953 to help the poor and needy. It has since donated hospital equipment, medicines and medical supplies in various parts of the globe.
Environmentalists, animal-welfare advocates say no to firecrackers
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NVIRONMENT Secretary Ramon J.P. Paje found a strong ally in environmental and animal welfare advocates who support the call to celebrate the New
Year sans the dangerous and expensive firecrackers and pyrotechnics. Members of the EcoWaste Coalition, Care for the Earth Ministry of Our Lady of Remedies
Parish, Animal Kingdom Foundation Inc. (AKF), Compassion and Responsibility for Animals (Cara Welfare Philippines) and the Philippine Pug Lovers Club on Sunday gathered in front of the
Malate Catholic Church to appeal to the pulic not to blow up firecrackers and pyrotechnics as part of the “Iwas PapuToxic” drive toward a cleaner, greener and safer celebration of the New Year.
Aside from causing air and noise pollution, the protesters said exploding firecrackers cause a lot of stress to animals. The group marched around the immediate
vicinity of the church and then to the nearby Plaza Rajah Sulayman, brandishing a banner with the message “Be Kind to Animals: Say No to Firecrackers.” Jonathan L. Mayuga
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BusinessMirror
A4 Monday, December 29, 2014
DOTC: Transport woes unlikely to be solved in next 18 months T
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For 2014, Customs declares success in anti-smuggling drive
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By Lorenz S. Marasigan
he chronic congestion along major thoroughfares, train systems and airports, and the lack of infrastructure for sea travel are unlikely to be solved in the next 18 months, the transport chief has conceded.
However, these persistent problems could be alleviated, at least in the long run, with the launching of several projects that could be undertaken by the next administration, Transportation Secretary Joseph Emilio A. Abaya said. He noted that the best way to go is to follow the P4.76-trillion Roadmap for Transport Infrastructure Development for Metro Manila and its Surrounding Areas, otherwise known as the Dream Plan, laid out by the Japan International Cooperation Agency (Jica). “The problems won’t be solved in 18 months. We have enough projects in the pipeline. Let’s say, in the Dream Plan submitted by Jica, some of the components have been addressed, some have not been touched on, that would be the base template,” Abaya said in an interview. The plan now, he said, is to make the Aquino administration’s transportation agency as a launch pad for the next leadership to easily implement the projects that his office will roll out.
“I think the plan would be to carry connectivity, access and transportation even beyond this administration. These will be key strategic game-changing infrastructure projects, which would solve the headaches, woes and congestions of today and, hopefully, something that the next administration and whoever will replace us will continue and see that it was crafted on its merits, no agenda and no political interest, then it will help them hit the ground running,” the transport chief explained. Currently, the government is implementing the Japanese agency’s multitrillion-peso, multiyear road map for transport infrastructure. The transport road map was approved by the National Economic and Development Authority Board in September this year. The Dream Plan lists the transport infrastructure that the Philippines need to remove potential losses and gain from prospective savings. The Japanese consultants said around
P539 billion must be invested in traffic infrastructure beginning 2014 up to 2016, and another P1.52 trillion must be invested from 2017 to 2022. The biggest investment requirement was seen in the period 2023 to 2030, costing at least P2.69 trillion. These investments, Jica said, will translate to a reduction in transport fares and reduced travel time, resulting in gains and savings. Economically, savings would amount to roughly P2.1 billion a day from vehicle operating costs. But if the transport road map would not be implemented through 2030, the Philippines stands to lose roughly P6 billion daily in traffic costs. Some of the proposals in the road map are currently being undertaken by the private sector and the state under the Aquino administration’s key infrastructure thrust. So far, the government has awarded eight public-private partnership deals since the flagship infrastructure program was launched in 2010, involving the P2.01-billion Daang Hari-South Luzon Expressway; the P16.42-billion first phase of the PPP School Infrastructure Program (PSIP); the P15.68-billion Ninoy Aquino International Airport Expressway; the P3.86-billion PSIP Phase II; P5.69-billion Modernization of the Philippine Orthopedic Center; the P17.5-billion Mactan Cebu International Airport New Passenger Terminal; the P1.72-billion Automatic Fare Collection System; and the P64.9-billion Light Rail Transit Line 1 Cavite Extension.
By Joel R. San Juan
HE Bureau of Customs (BOC) has reported a significant increase in the volume of oil imports in 2014, a development it claimed is an indication that its anti-smuggling drive is paying off. Customs Commissioner John Sevilla also said that, aside from addressing oil smuggling, the agency has also put a stop to big-time rice-smuggling operations in the country. Sevilla noted that the volume of fuel oil imported in 2014 increased by 17 percent, while the diesel volume went up by 25 percent. Meanwhile, the volume of gasoline this year went up by 10 percent. “These are abnormally higher. No oil company would believe that our consumption went up that much. We don’t use 25 percent for diesel, we don’t use this amount of fuel under normal circumstances,” Sevilla noted. Sevilla believes the increase in the volume of oil imports is attributable to oil that used to be smuggled in the past but now come in through the proper channel instead.
“But to have this kind of volume, I think, is a pretty strong indicator [of a sharp] reduction in smuggling,” Sevilla added. Only in October Sevilla dismissed retired Army Brig. Gen. Ernesto Aradanas, former chief of the BOC Davao collection district, for his alleged involvement in oil smuggling and other irregularities based on an intelligence report. Aradanas has denied the allegations and asked for due process and an impartial investigation of the case. Aside from oil smuggling, Sevilla said the BOC is inclined to believe it has stopped the entry of large-volume smuggling of rice in major ports around the country. However, Sevilla acknowledged a resurgence of rice smuggling in a few minor ports in the country, particularly in Zamboanga. “Unfortunately, in recent months, there had been incidents of rice smuggling. It is not happening in the usual way. It is not happening in the usual places,” the BOC chief said. “Next year we will pay more attention to what’s going on in those ports,” he said.
Dra. Esmeralda Atutubo of Jose R. Reyes Memorial Medical Center in Manila shows to the media some of the orthopedic surgery equipment that will be utilized for the medical operation and treatment of firecracker victims during the New Year’s Eve revelry on Wednesday and Thursday. Roy Domingo
DOH intensifies anti-firecracker drive By Leilani S. Junio
Philippines News Agency
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he Department of Health (DOH) is intensifying its campaign against the use of firecrackers to protect lives by preventing injuries, or event deaths, during the coming New Year’s Eve revelry. Stressing that life is precious, the health department continuously spreading information materials urging the public to stay away from firecrackers and calling on everyone to support the campaign to make the coming year-end celebration safe and truly full of joy. According to Health Assistant Secretary Gerardo Bayugo, the campaign is highlighted by posting or showing posters warning the people on the painful consequences of gambling one’s future in using firecrackers. “These posters are placed in DOH central and regional hospitals. There are also 30-second commercials that can be viewed in television,” Bayugo said. He added that there is also the “Iwas Paputok” video, which can be shared in the social networking sites so that more people can help in spreading the “reminder to stay away from firecrackers” and instead choose a safer, happy way of welcoming the New Year. “Every Filipino citizen can be part of the anti-firecracker advocacy. We are encouraging them to share the Iwas Paputok video which is now posted on social networking sites such as Facebook, Twitter and YouTube,” Bayugo said.
He noted that through the video, the public can develop the change of mindset that instead of buying or using firecrackers, it is better to buy food and other necessities, adding that firecrackers bring painful lifetime teaching experience that can create a scar which cannot be erased by tears and regrets. The video also informs the public about the dangers of picking unexploded firecrackers and how firecrackers can cause wounds, eye damage, poisoning and amputation or losing of hands and feet. In addition, the video also informs the public on the importance of first aid in case somebody is wounded or injured by firecracker explosion. In such a case, the wounds must be washed and cleaned up immediately and covered with sterilized gauze bandages before bringing the victim to the hospital for proper treatment. The DOH said it is important that the victim is taken to the hospital for the necessary anti-tetanus shot and correct antibiotics to be given to avoid other complications. Meanwhile, to ensure the success of the campaign, the DOH is coordinating with various other government agencies, such as the Philippine National Police, Bureau of Fire Protection, as well as local government units, through the governors, mayors and barangay officials, to strictly enforce in their jurisdiction Republic Act (RA) 7183 of the Anti-Firecrackers law. RA 7813 is an act regulating the sale, manufacture, distribution and use of firecrackers and other pyrotechnic devices for the prevention of injuries, death and damage to properties caused by firecrackers.
LRTA allots P403M to relocate squatters affected by LRT 1 Cavite Extension project
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he operator of the Light Rail Transit (LRT) Line 1 is auctioning off the multimillion-peso deal to relocate squatter-dwellers along the pathway of the train system’s multibillion-peso extension in Cavite. In a bid bulletin, the LRT Authority (LRTA) said the government has earmarked P403 million for the “relocation housing units and amenities for informal settlers” affected by the P65-billion LRT 1 Cavite Extension project. A prebid conference is scheduled on January 9, while the deadline for the submission of bids is set for February 11. Light Rail Manila Corp. (LRMC) of Metro Pacific Investments Corp. (MPIC) and Ayala Corp. bagged the multibillion-peso deal to extend, operate and maintain the oldest overhead railway system in the country under a 32-year concession agreement. Under the contract, the consortium will operate and maintain the existing line and construct an 11-kilometer extension from the present end-point at Baclaran to the Niog area in Bacoor, Cavite. A total of eight new stations will be built along this
route, which traverses the cities of Parañaque and Las Piñas up to Bacoor, Cavite. In signing the agreement, the concessionaire agreed to invest P35 billion to construct the extension of the line, which is envisioned to help ease the worsening traffic conditions in the Parañaque-Las Piñas-Cavite corridor. The remaining P30 billion will be spent by the government to procure train coaches, construct and expand depots, and the acquisition of the right of way. The extension is expected to enhance commercial development around the rail stations. LRMC will start operating and maintaining the LRT Line 1 by October next year, and the construction of the additional stations to Cavite will start thereafter. It will take five years from now for the extension to be commercially operational. Aside from this deal, the MPIC-Ayala tandem also won the P1.72-billion Automated Fare Collection System Project, which will effectively integrate the ticketing system in all three train systems in the Philippines by September next year. Lorenz S. Marasigan
News BusinessMirror
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STI: Benitez Group approved JASMS commercialization By VG Cabuag
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TI Holdings Inc. said over the weekend that the Benitez family, through the board of Philippine Women’s University (PWU), approved the development of Jose Abad Santos Memorial School (JASMS) in Quezon City into a commercial area. STI President Monico Jacob said in a news statement that the approval of the commercialization of JASMS’s 2.1-hectare compound along Edsa in Quezon City was approved by the the Benitez Group way back in mid-1990s. Jacob said that for the project, PWU received P250 million from Jardine Land Inc. and Northpine One Residences Inc. The Benitez Group failed to deliver, which resulted to the foreclosure of the property, he said. “Up until last week when we cited them in default, it was the Benitez Group that called all the shots in PWU. We were a minority and only decided to accept their prepared resignations as provided in our agreements when it became clear we would not be paid,” Jacob said. The Benitez Group, on the other hand, claimed that the Tanco-led STI “retaliated” after the stakeholders of JASMS-Quezon City campus resisted the plan to transform the grounds into a commercial complex with the Ayala Land Inc. “The current act of takeover of PWU was triggered by, and in retaliation for,
the refusal of the JASMS community to agree to Tanco’s idea of commercializing the JASMS campus,” it said in a previous statement. JASMS is a PWU-affiliated school offering basic education. Its campuses are in Quezon City and Manila. Ayala Land and STI had already signed an agreement to co-develop JASMS, with the companies creating a residential and commercial community with the school at the center. The two companies may spend a combined amount P2 billion to P3 billion with STI spending for the new school building, while Ayala Land for the residential buildings and a community mall, Eusebio Tanco, STI chairman, told reporters recently. “We try to experiment new ideas. Especially JASMS offers basic education, they could go to a mall and there is also the residential component. But a lot of residential [units] are being built around schools or universities,” Tanco said, adding that the company may break ground for the project soon. Tanco said the residential component would have around 4,000 square meters of gross floor area for the ninestory new school building at 2,000 sq m to 3,000 sq m, and the community mall that will be called JASMS District Mall will have 8,000 sq m. He said Ayala Land will be the one building all the new facilities. The residential component involves Amaia Land building’s two towers that can be completed in within two years.
Monday, December 29, 2014 A5
Aquino OKs additional tax exemption on workers’ benefits
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By Butch Fernandez
alacañang announced on Sunday that President Aquino has approved an additional P10,000 upward adjustment in tax exemptions on workers’ benefit packages, a belated Christmas gift that employees can enjoy starting January 2015. Communications Secretary Herminio B. Coloma Jr. said the tax break was part of the expanded tax exemptions granted by Mr. Aquino on benefits given to workers as part of their collective-bargaining agreements and productivity-incentive schemes. “Bunga ito ng tuloy-tuloy na pakikipagdiyalogo ni Pangulong Aquino sa mga organisasyon ng mga manggagawa nitong taong 2014,” Coloma said. Coloma added that President Aquino’s order is estimated to raise up to P104,225 the total benefits that would be covered by the exemption
order, from the current P94,225 taxexemption limit. The Palace official said that Mr. Aquino’s directive for additional exemptions, estimated to result in P17-billion foregone tax take, will be implemented by the Bureau of Internal Revenue (BIR) by next month. “Ipatutupad ang bagong patakaran sa Enero 2015 sa pamamagitan ng isang revenue regulation na ipapalabas ng BIR,” Coloma said. He quoted Finance Secretary Cesar V. Purisima as saying that the additional tax exemption on so-called de minimis benefits is deemed rea-
sonable given the huge number of workers expected to benefit from the President’s order. “Ayon kay Kalihim Purisima, ang dagdag na tax exemption sa mga tinaguriang de minimis benefits ay makatuwiran dahil sa milyon-milyong mang gagawang mabibiyayaan nito. Sila ay kabilang sa mga may pinakamababang antas ng sahod sa hanay ng mga manggagawa,” he said. This developed as the Palace welcomed the United States’s International Labor Organization’s (ILO) $1-million grant to the Philippines. In a news statement, the Palace said Labor Secretary Rosalinda Dimapilis-Baldoz expressed elation over the $1-million grant of the United States’s ILO for the Philippines’s new labor laws-compliance system. According to Baldoz, Washington has already announced the award of the technical assistance grant, the Palace added. “This is a welcome gift to the Philippines and will boost the implementation of the DOLE’s [Department of Labor and Employment] new labor laws-compliance system, which President Aquino himself had endorsed with his grant of 372 new plantilla item positions for labor laws-compliance officers who
will be equipped with electronic gadgets to boost our capacity to enforce all labor laws,” it added.
Toll operators remind motorists to plan journey back to Manila
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he operators of three major expressways in the Philippines are advising motorists to avoid the holiday rush by staggering their journey back to Metro Manila over a four-day period. The managements of the North Luzon, the Manila-Cavite Toll and the Subic-Clark-Tarlac expressways (Nlex, Cavitex, SCTEx) issued this advisory on Sunday to remind motorists about the expected uptick in traffic at the toll roads. “Nlex, SCTEx and Cavitex are issuing advisories to motorists to please stagger their journey back to Metro Manila over the period of January 1 through 4, to avoid heavy congestion on the tollways,” the advisory read. “We’re taking extra steps to alleviate the heavier-than-expected traffic these holidays,” it added. Lorenz S. Marasigan
Tourism
A6 Monday, December 29, 2014 • Editor: Alvin I. Dacanay
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B B J. H | The Associated Press
EW YORK—See Cuba before it changes. Check out the Expo in Milan. And if you’re heading to New York City to see the view from One World Trade Center’s observatory (scheduled to open in late spring), take the subway to Queens and see if you can figure out why it topped Lonely Planet’s “best in the US” destinations for 2015. Several major anniversaries will also be marked by a variety of events in 2015, including 70 years since the end of World War II, the 60th anniversary of the opening of Disneyland and 10 years since Hurricane Katrina hit New Orleans.
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Europe
THE Milan Expo opens in May for six months and is expected to draw 20 million visitors. The expo is the modern incarnation of the old World’s Fairs that thrilled 19th- and 20th-century guests with new products and technology. The theme of the Milan Expo is food and nutrition, and dozens of countries will be participating. The US will be doing its part by sending six authentic food trucks to Italy featuring regional American and ethnic-fusion menus. Milan’s famous opera house, La Scala, normally closed in the summer, will host performances daily during the expo. Elsewhere in Europe: January 1 marks the day Lithuania officially adopts the euro as its currency. Pilsen, in the Czech Republic— home to pilsner-style beer and a Gothic cathedral—and Mons, Belgium—known for history ranging from World War I back to the ancient Romans—have been named 2015 European Capitals of Culture. And Norway made a number of “where to go in 2015” lists, thanks to its connection to Disney’s blockbuster film Frozen.
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Anniversaries
SINGAPORE celebrates its golden jubilee—50 years since gaining independence from the United Kingdom. Vietnam celebrates 70 years since gaining independence from France and 50 years since the first US combat troops arrived at Da Nang, which some historians say marked the start of the Vietnam War, even though Americans had been sent to the country in prior years. A number of US museums and historic sites will be hosting exhibits and events to mark 150 years since the assassination of Abraham Lincoln and the end of the Civil War. The new year also marks 70 years since the end of World War II, both the defeat of Nazi Germany and the atomic bombing of Japan that ended the war in Asia.
Hiroshima and Nagasaki are planning memorial services on the August anniversaries of the bombings, along with numerous arts projects and peace-themed events throughout the year. In New Orleans August 29 will mark 10 years since the devastation of Katrina. “Come see the new New Orleans” is a mantra in the tourist industry there for showcasing trendy emerging neighborhoods and a vibrant restaurant scene. South Dakota expects crowds for the 50th Custer State Park Buffalo Roundup in September and the 75th Sturgis Motorcycle Rally in August.
Cuba
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m&Entertainment BusinessMirror
tourism@businessmirror.com.ph • Monday, December 29, 2014 A7
WELCOME 2015 IN DESTINATIONS FOR 2015 STYLE AT EASTWOOD MILAN, CUBA, RICHMONDE HOTEL 2
QUEENS&MORE
d lead to a rush of travelers ing to experience the island ore it loses its frozen-ine culture to an onslaught of erican chain stores, hotels tourists. But don’t pack r bags just yet: For the near re, the only way you can ley visit Cuba as an American zen is to take a “people to ple” cultural-exchange tour nsed by the US government. tours are expensive and eraries are limited.
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1 IN this September 7 photo, One World Trade Center towers above the lower Manhattan skyline in New York. The One World Trade observatory is expected to open in late spring 2015. AP 2 IN this December 17 file photo, tourists relax at the Hotel National, overlooking Morro Castle, in Havana, Cuba. AP 3 IN this March 29, 2009, file photo, a bartender pours a glass of beer at a restaurant in the Pilsner Urquell factory in Pilsen, Czech Republic. AP 4 IN this September 26, 2011, file photo, Phill Randall of Custer, South Dakota, carries the American flag during the Custer State Park Buffalo Roundup near Custer. AP
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w York City
O big openings take place in Big Apple in 2015: the obserry at One World Trade in late ng and the new Whitney Mum of American Art in May in nhattan’s Meatpacking Dist near the High Line and the son River. The city also got a Christmas from Lonely Planet, which med the borough of Queens “best in the US” destina. Manhattan has been givground to trendy Brooklyn ecent years, but the elevaof Queens as the next big ng was a bit of a surprise. that New Yorkers and tour-
ists alike don’t love Queens attractions like the 1964 World’s Fair grounds, the hipster beach scene in the Rockaways, Chinatown in Flushing, the Asian and Latin American ethnic mix in Jackson Heights and the emerging industrial-chic ambia`nce of Long Island City. But the borough is not quite on tourist radars yet—though the Lonely Planet pronouncement may change that.
Theme parks
UNIVERSAL Studios Hollywood debuts two new attractions in 2015: Springfield, an immersive area opening in spring surrounding “The Simpsons Ride”, and “Fast & Furious Supercharged”, a thrill ride opening in summer based on the film series. Disneyland opens “Frozen Fun” in January in Anaheim, California, with a sing-along, “Olaf's Snow Fest”, and meet-and-greets with Anna and Elsa, among other
attractions. The California theme park also celebrates its 60th anniversary this year, with celebration details to be revealed at the end of January. Disney World, near Orlando, Florida, has several 2015 openings, including a new Italian restaurant, Trattoria al Forno; an Africa Marketplace at Disney’s Animal Kingdom; and at the new Disney Springs complex, three restaurants, STK, Morimoto Asia and The Boathouse.
S 2014 comes to an end, Eastwood Richmonde Hotel is preparing a spectacular evening that you won’t soon forget. What better way to ring in the new year than enjoying sumptuous dishes, free-flowing drinks and lively music? Start the revelry early by indulging in a delectable array of international dishes that are part of the hotel’s New Year’s Eve Dinner Buffet at Eastwood Café. These include freshly cooked items from the buffet’s action stations and mouthwatering dishes—Oyster Rockefeller, Roasted Turkey with Stuffing, Roasted Prime Rib
of Beef and Grilled Spiced Salmon, among others—which all cost only P1,580 net. Bring the entire family, and kids who are 5 years old and younger get to eat for free, while those between 6 and 12 years old get a 50-percent discount. Get ready for a fun and filling New Year’s Eve Countdown Party at The Gallery, starting at 9 p.m. Wait for the clock to strike midnight while munching on finger food at the bar-chow buffet; downing limitless drinks from the bar’s selection of local beers, featured cocktails, iced tea and sodas; and enjoying the awesome covers of the Ammo Band, all for just P1,080 net! Come New Year’s Day, start the year right and get together with loved ones over Eastwood Café’s New Year’s Day Bubbly Brunch Buffet, which includes an assortment of tasty breakfast and lunch dishes; special carvings of Roasted Chuck Eye Beef and Homemade Glazed Ham; and a glass of Moscato and other drinks—all for just P1,580 net! For inquiries and reservations, visit www.richmondehotels.com.ph.
BusinessMirror
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TheElderly
Monday, December 29, 2014 • Editor: Efleda P. Campos
Ju.D bakes fruitcakes year-round
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news@businessmirror.com.ph
Senior dental problems
By Rizal Raoul Reyes | Correspondent
By Cheridine P. Oro-Josef, MD, FPAFP, FPCGM
URING Christmas, Ju.D Lao’s artisanal fruitcakes lord it over other fruitcakes in the market. Food critics, such as Nancy Reyes Lumen and Margaux Salcedo, have given Lao’s fruitcakes high marks in terms of taste and quality. Lao, 60, proves age is just a number and not a hindrance to becoming a productive individual. In a recent interview with the BusinessMirror, Lao said she started to sell her products to her mother, friends and relatives. However, Lao’s brother challenged her to sell to the market after he told her “you are nothing if you are only selling to your friends and families.” “I had to sell my fruitcakes door-todoor just like the salesmen of encyclopedias during those days,” Lao said. Lao, who started baking fruitcakes in 1975 after graduating with a Fine Arts degree from the University of Santos Tomas, never attended any cooking classes, but engaged in self study by reading a lot of cook books. She also experimented on recipes that caught her fancy. “And, since I’m from a big family, we’re never short of guinea pigs or, should I say, brave and curious souls,” she said. Lao said consistency is key in maintaining the quality of the fruitcakes. She said she has not changed any of their ingredients since 1975. One thing Lao does not do is sell fruitcakes during the off, season because walnuts get rancid easily. “When we started, we always got rancid walnuts between the months of February and September, so we decided to do fruitcakes only when walnuts are fresh. That became our tradition even though the availability of walnuts has become all-year round now. We somehow retained this tradition though we still bake a few pieces from time to time just to satisfy some customers,” she said. Aside from pursuing her passion,
making fruitcakes allows her to do her own corporate social responsibility. Through the years, her work force has been composed of neighbors’ maids, out-of-school youth, parents from schools, who are in financial need but cannot take regular jobs. “We only sell fruitcakes during the Christmas season. We cannot afford to hire regular employees so this arrangement has been a win-win situation for all of us. I remember a few years back, we had a group of young ladies from El Shaddai Choir, who came to help us, and, from time to time, they’d burst out singing while working. That was a very lovely and memorable Christmas for us,” Lao said. She said she had a hard time perfecting her first fruitcake because of the absence of a cookbook and Google to get the instructions. “It was hardest for the Ju.D Blue, which is coffee-flavored fruitcake. We had to source for Blue Mountain Coffee flavor and the right liquor to age the fruitcake. For that, we spent about eight months. Lately, we have been experimenting with some cookies and it’s been a big challenge for us, too,” she said. With her cooking experience, Lao already penned two vegetarian cookbooks for the TzuChi Foundation available in about 50 TzuChi chapters worldwide. In Manila, the cookbooks are available at the TzuChi office in Quezon City. As of now, Lao does not sell vegetarian dishes. But she is not closing the door to pursue the vegetarian route to encourage more people to become vegetarian to
right to health
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N older person said, in one of my lectures, “Doktora, the only problem we seniors really have is lack of money!” According to the Food and Nutrition Research Institute, one of the reasons Filipino senior citizens do not meet their daily protein requirement is dental problems. There is an old saying about the eyes being windows to the soul, but the latest medical and dental researches show that the mouth truly is a window into one’s overall health. Senior dental problems can be as common as dry mouth or such severe cases as periodontal disease. People suffering from severe periodontal disease may double the risk of fatal heart disease. Tooth infection has the potential to cause bacterial endocarditis. This is an inflammation of the heart valves and tissues due to bacterial infestation. People in their old age are at higher risk for malnutrition. One of the reasons for such is ill-fitting dentures. Bad dentures can be a culprit in poor nutrition among older persons. Older persons lose their natural teeth when their jaw bones start to shrink due to aging. The jaw bones continue to “remodel” itself leading to improper fitting of dentures. Many times, older persons complain that their dentures no longer fit them well; it starts to become “slippery” so they start limiting the kind of food that they eat. Chewing becomes an ordeal. Add to that the embarrassment of not being able to munch meat and hard food during parties or festive occasions. Another social issue affects dental care. Senior parents are hesitant to ask money from their children for their dental health. They endure the difficulty and the discomfort of not having the proper dentures and eventually they become malnourished. It is advisable that older persons look into their dental health as well as they take good care of their physical health. Sometimes, oral problems are sources of metabolic problems. With Babit Dacal-Welsh, DMD For comments: e-mail to cheridinemd@gmail.com
JU.D Lao with one of her fruitcakes
lessen the killing of innocent animals. Lao is a volunteer for the TzuChi Foundation. Aside from helping in calamities, she teaches cooking vegetarian dishes and do translations for the foundation. Lao, along with her fellow TzuChi members, actively helped in relief operations after the country was hit by typhoons Ondoy and Yolanda. “TzuChi initiated the cash-forwork program in the disaster-stricken areas because we want the victims
to maintain their dignity,” Lao said. She starts selling her fruitcakes in November. But since fruitcakes can “stand the test of time,” she usually keeps a few classic fruitcakes on hand for anyone with the craving for fruitcakes between January and November. If not, it’ll take three weeks to have them aged. Asked what motivates her to cook, she said: “Maybe I love to share or maybe I like to see happy faces once they tried my products.”
Scarecrows outnumber people in dying Japan town
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AGORO, Japan—This village deep in the rugged mountains of southern Japan once was home to hundreds of families. Now, only 35 people remain, outnumbered three-toone by scarecrows that Tsukimi Ayano crafted to help fill the days and replace neighbors who died or moved away. At 65, Ayano is one of the younger residents of Nagoro. She moved back from Osaka to look after her 85-year-old father after decades away. “They bring back memories,” Ayano said of the life-sized dolls crowded into corners of her farmhouse home, perched on fences and trees, huddled side-by-side at a produce stall, the bus stop, anywhere a living person might stop to take a rest. “That old lady used to come and chat and drink tea. That old man used to love to drink sake and tell stories. It reminds me of the old times, when they were still alive and well,” she said. Even more than its fading status as an export superpower, Japan’s dwindling population may be its biggest challenge. More than 10,000 towns and villages in Japan are depopulated, the homes and infrastructure crumbling as the countryside empties thanks to the falling birthrate and rapid aging. First the jobs go. Then the schools. Eventually, the electricity meters stop. Neither Prime Minister Shinzo Abe’s ruling Liberal Democratic Party nor any of its rivals have figured out how to “revive localities,” an issue that has perplexed Japanese leaders for decades. But local communities are trying various strategies for attracting younger residents, slowing if not reversing their decline. In Kamiyama, a farming community closer to the regional capital, community organizers have mapped out plans for attracting artists and high-tech companies. Nagoro is more typical of the thousands of communities that are turning into ghost towns or at best, open-air museums, frozen in time. The one-street town is mostly abandoned, its shops and homes permanently shuttered. The closure of the local elementary school
IN this November 6, photo, white smoke rises from an outdoor hearth at Tsukimi Ayano’s house sat by scarecrows she made in Nagoro, Tokushima Prefecture, southern Japan. This village deep in the rugged mountains of southern Japan once was home to hundreds of families. Now, only 35 people remain, outnumbered three-toone by scarecrows that Ayano crafted to help fill the days and replace neighbors who died or moved away. At 65, Ayano is one of the younger residents of Nagoro. She moved back from Osaka to look after her 85-year-old father after decades away. “They bring back memories,” Ayano said of the life-sized dolls crowded into corners of her farmhouse home. AP
two years ago was the last straw. Ayano unlocks the door and guides visitors through spotless classrooms populated with scarecrow students and teachers. When she returned to her hometown 13 years ago, Ayano tried farming. Thinking her radish seeds may have been eaten by crows, she decided to make some scarecrows. Now there are more 100 scattered around Nagoro and nearby towns. Like handcarved Buddhist sculptures, each has its own whimsical expression. Some sleep, their eyelids permanently shut. Others cuddle toddler scarecrows or man plows and hoes.
Ayano brings one along for company on her 90-minute drive to buy groceries in the nearest big town. But most remain behind, to be photographed and marveled at by tourists who detour through the winding mountain roads. “If I hadn’t made these scarecrows, people would just drive right by,” Ayano said. The plight of Japan’s countryside is partly a consequence of the country’s economic success. As Japan grew increasingly affluent after World War II, younger Japanese flooded into the cities to fill jobs in factories and service industries, leaving their elders to tend small farms. Greater Tokyo, with more than 37 million people
and Osaka-Kobe, with 11.5 million, account for nearly 40 percent of the country’s 127 million people. “There’s been this huge sucking sound as the countryside is emptied out,” said Joel Cohen, a professor at Columbia University’s Laboratory of Populations. Japan’s population began to decline in 2010 from a peak of 128 million. Without a drastic increase in the birthrate or a loosening of the staunch Japanese resistance to immigration, it is forecast to fall to 108 million by 2050 and to 87 million by 2060. By then, four in 10 Japanese will be over 65 years old. The population of Miyoshi, which is the town closest to Nagoro, fell from 45,340 in 1985 to about 27,000 last year. A quarter of its population is over 75 years old. To entice residents to have more children, the town began offering free nursery care for third children, free diapers and formula to age 2 and free health care through junior high-school. “The way to stop this is to get people to have more babies,” Mayor Seiichi Kurokawa said. “Apart from that, we need for people to return here or move here.” But it’s not an easy sell, despite the fresh air and abundant space. “You can’t just grab people by the necks like kittens and drag them here,” Kurokawa said. Getting residents of half-empty towns to accept newcomers can also be a challenge. In Kamiyama, to the east, the town still struggles to convince owners who are often relatives living in distant cities to open up abandoned homes for rent or renovation, said Shinya Ominami, chairman of a civic group that has led efforts to revive the town. In a briefing for potential investors and visiting officials, Ominami shows a slide of the town’s shopping street, dotted with houses that are empty, and then another with some of the buildings filled with new businesses—a bistro, a design studio, an IT incubation hub. “Once we accept this is the reality, we can figure out how to cope with it,” Ominami said. AP
4 Nueva Vizcaya centenarians each get P100,000 incentive
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AYOMBONG, Nueva Vizcaya —Four more elderly people here received cash incentives on December 23, from the provincial government as part of the recognition of senior citizens in the province. The recipients were Alfredo Ilas Ramos, 102, of Barangay Lantap in Bagabag town; Rufina Esteban, 100, of Barangay La Torre South in Bayombong town; Emelyn Naabos-Nganoy, 102, of Barangay Oyao, Dupax del Norte town; and Peter Dupingay, 106, Barangay Didipio in Kasibu town. The four elderly received P100,000 each from Gov. Ruth Padilla, together with Vice Gov. Lambert Galima Jr. and board members. The four represents the fourth batch of recipient centenarians of the provincial government’s cash incentive since the implementation of the Centenarian Ordinance early this year. The measure is one of the high-impact projects of the provincial government in recognition and support of the senior citizens in the province. PNA
Grant will help low-income Connecticut seniors get food
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EW HAVEN, Connecticut—The state’s federal delegation hoped it was just the beginning. Connecticut, one of seven states cut out of the Commodity Supplemental Food Program for decades, was successful this year in getting some money to help low-income seniors who are going hungry. US Rep. Rosa DeLauro, D-3, and US Senators Chris Murphy and Richard Blumenthal, both D-Conn., on December 22 said the exact amount the state will be allocated from the total $2.8million grant hasn’t been determined. They estimated, however, that 2,500, to 3,000 seniors in Connecticut will be able to get extra nonperishable food on a monthly basis through the program. Murphy said the average Social Security check is $1,200, which after rent and monthly bills doesn’t leave a lot for food. “This is desperately needed,” he said. DeLauro’s office said four in 10 low-income seniors have trouble getting enough money for food. Almost two-thirds, however, do not qualify for food stamps, now known as Supplemental Nutrition Assistance Program, or SNAP. The Commodity Supplemental Food Program helps those seniors who do not qualify for other government programs. The package, which would be available at food pantries, or delivered, if needed, will contain tuna fish, cereal, juice, evaporated milk, peanut butter, fruits, vegetables and macaroni. Murphy said people who go hungry are more susceptible to illnesses. Blumenthal said the country should be ashamed that any senior is going to bed hungry at night. “That is a disgrace,” he said. DeLauro, who has fought for food programs for decades, said they will continue to fight for more assistance. She said the government has a “moral responsibility” to end hunger, but not everyone in Congress feels that way. Tribune Content Agency, LLC
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Monday, December 29, 2014
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Sarangani hospital gets upgrade, gov wants equal service for all
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By Manuel T. Cayon | Mindanao Bureau Chief
AVAO CITY—The government hospital in Sarangani province in Southern Mindanao got a multimillion-peso upgrade on its facilities and important equipment.
Provincial government executives warned hospital staff against discriminating their ser v ices against the poor. The Kiamba District Hospital had its emergency room, outpatient
department complex, operating room and delivery room complex upgraded from funds coming from the Department of Health (DOH) and the provincial government. The Sarangani provincial gov-
Taiwan firm proudly hires Filipino workers
ernment gave P4 million for the emergency room and outpatient complex, while the DOH allotted P16.5 million from its Health Facility Enhancement Program for the operating and delivery rooms. The DOH allotted P9 million to construct the social-hygiene clinic, dietary and laundry building, isolation room and the renovation of the hospital main building, while the provincial government appropriated almost P2 million for its perimeter fence and cadaverholding area. Ongoing improvement, worth P44 million from the DOH, are currently constructing the ward expansion with more private rooms, waste-water treatment facility,
supply records room, dormitory for hospital staff, watcher’s pavilion, motorpool and improvement of the main building which includes the administrative section, pharmacy, and x-ray and ultrasound area. Almost P4 million worth of equipment from the DOH and the World Bank were delivered to the Kiamba Hospital since last year to upgrade its hospital beds, operating room and operating bed and intravenous stands. About P500,000 from the provincial government was also used to purchase additional equipment, and P2.7 million to purchase stateof-the-art operating-room lights, instruments, monitors and suction machines.
The Sarangani information office also disclosed that the Sarangani Provincial Hospital inside the capitol compound in the capital town of Alabel was upgraded of its first-phase construction worth P55 million in November. The upgrade included a laboratory, an emergency room, private rooms and three wards. The second phase of the upgrading would be worth P100 million, of which half would come from the Department of Public Works and Highways and another P50 million from the DOH. This would be implemented next year to complete the operating theater, commonly known as the operating room, on the second
Congress commends Dr. William Dar
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JACK Lin, associate director of I-Mei, one of the biggest food-and-beverage companies in Taiwan, said in an international media briefing that any tie-ups with the Philippines is “always welcome” and he is happy to say that the only foreign workers in I-Mei are Filipinos. K.C. NiÑa Pusing By K.C. Niña Pusing
Special and exclusive to the BusinessMirror
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NE of the biggest food-andbeverage companies in Taiwan only hires Filipino workers, with the owner saying Filipino employees are adaptable, passionate and easy to work with. I-Mei Foods Co. Ltd. is a wellknown brand in Taiwan that concentrates on quality food products. For more than 70 years, it has been an active player in the food industry specializing in confectionaries and sweets, frozen and ready-to-eat meals, gift packs, dairy products and beverages. The company is currently the supplier of McDonald’s breakfast muffins and ice cream, providing food products to international fast-food chains, such as Burger King, KFC, Mos Burger and A&W in Taiwan. Sandra Chen, a public relations officer of I-Mei, said the company started accepting foreign workers since 1991. The policy of the Ministry of Labor under the Taiwan ROC government said a company can only hire 300 foreign workers at most. I-Mei “used to hire Indonesians and Thais. However, there are some situations about religion, life habits, communication abilities and adaptation existing among employees from these two countries,” she said. What makes Filipinos different from other international laborers, Chen said, is that “[they] are more passionate so they can get used to
overseas job environment more easily.” Filipinos are English-proficient, which “can help the internal company training workable and effective in time.” While some companies hire Filipinos only in low-rank jobs, I-Mei proudly said there are Filipino workers, who are managers of manufacturing lines, production-line technicians, professional quality-control personnel and engineers. Since most of its overseas Filipino workers (OFWs) perform exceptionally well, many of them have stayed in Taiwan for nearly 12 years, which, in turn, make them longtime I-Mei employees. Jack Lin, I-Mei associate director, told the BusinessMirror that I-Mei representatives visit the Philippines from time to time to select and hire potential workers, who are at least college-level undergraduates. The BusinessMirror personally met two of its employees—Eugene Jerome Alaban from Isabela and Mark Anthony Alaban from Cagayan de Oro—machine operators with three-year contracts with I-Mei. They said they’re working like most OFWs do to earn money and give a better future to their families. Given the continuous growth of I-Mei, Lin said international exchanges, particularly with the Philippines, are “welcome in any term of collaboration with its mission to “provide best-quality food products to customers in every corner of the world.”
HE House of Representatives, led by Speaker Feliciano Belmonte Jr., has commended former agriculture secretary and International Crops Research Institute for the Semi-Arid Tropics (Icrisat) Director General Dr. William D. Dar for his “exemplary public service to our country and in appreciation of his notable achievements as a recipient of the prestigious Agriculture Leadership Award during the seventh International Leadership Summit 2014 in New Delhi, India. A native of Santa Maria, Ilocos Sur, Dar received his commendation—contained in Resolution 164, adopted by the House of Representatives on December 11—from Deputy Speaker Carlos M. Padilla during a launch of a farmers’ livelihood program in Nueva Vizcaya on December 22, witnessed by Nueva Vizcaya Gov. Ruth Padilla and Beatriz Dar. “On behalf of my family and Icrisat, I humbly acknowledge the commendation of the members of the House of Representatives, led by Speaker Belmonte and Deputy Speaker Padilla,” said Dar, who concludes an unprecedented 15-year term on December 31, as director general of Icrisat. “I share this honor with millions of small Filipino farmers, whom I will serve again starting next year,” he said. Early this month Dar also received from President Aquino a Pamana ng Pilipino Award, along with 32 other outstanding Filipinos overseas, for “his exemplary leadership in successfully extending the
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Pampanga vice gov lauds SM for treating 72 kids at Sky Ranch park By Joey Pavia Correspondent
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ITY OF SAN FERNANDO— Vice Gov. Dennis “Delta” Pineda expressed gratitude to the management and officials of the SM City Pampanga for allowing 72 young Aytas to have “an unforgettable and happy day” at the mall’s Sky Ranch Pampanga amusement park recently. Pineda and Angelina “Angie” Blanco, head of the Provincial Disaster Risk Reduction and Management Office, led the Christmas treat for the Aytas at the latest crowd-drawer at the SM Pampanga. Blanco said the SM gave free un-
limited rides to the young people adding “more color” to the project initiated by Pineda and his parents. SM Supermalls Vice President for Operations Bien Mateo welcomed the Pineda-led delegation, which arrived before lunch. They enjoyed the 22 rides at the amusement park, including the Pampanga Eye, Loop Roller Coaster and Super Viking. In interviews with the Aytas, they said “we are happy because we enjoyed the park and there were no other guests.” “We are very grateful to the Pineda family for this wonderful experience. We will never forget this day,” they added in the dialect.
Gov. Lilia Pineda pushed for the improvement of the general welfare of the some 4,000 Ayta families since she assumed her post in 2010. They are mostly based in Mabalacat City, and Floridablanca and Porac towns. In a statement, the SM management said the Sky Ranch is the first amusement park and the newest destination for both local residents and tourists in North and Central Luzon. The park was developed by SMPHI in partnership with S&T Leisure Inc. and Westech Philippines. Sky Ranch Pampanga is open for walk-in customers and group tours that offer exciting rides for all ages.
NPA: Compostela jail warden in our custody By Rene Acosta
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DR. William Dar receives a commendation from Deputy House Speaker Carlos Padilla (second from left). With them are Nueva Vizcaya Gov. Ruth Padilla (left) and Mrs. Beatriz Dar.
frontiers of science and technology to ensure food security for all, and for his staunch advocacy of the important role of professional horticulturists in this endeavor.” To date, Dar is the only Filipino who has served as director general of a global agricultural research institute. He leaves behind a legacy benefiting millions of farmers in India, Africa and other dryland
countries in the world, including the Philippines. Through his strong leadership and governance, he has transformed Icrisat into a leading agricultural research institute in terms of innovative research programs, impact on farmers and financial stability, quadrupling the income and investments poured into Icrisat since 2000, from $21 million to $85 million in 2014.
Soccsksargen LGUs get ₧63M from DA AVAO CITY—Eleven towns of the Cotabato provinces received P63 million worth of projects to improve or enhance their agriculture and agribusiness ventures. Cotabato City plucked the biggest assistance at P12.8 million, followed by Midsayap of North Cotabato, at P12.7 million. The DA also downloaded its assistance to the other North Cotabato towns of Makilala (P6.1 million) and
floor of the hospital. The provincial hospital will initially operate at the soonest time possible. Gov. Steve Chiongbian Solon said the “only caveat, one instruction I have is that the service that you have to give here to the rich and the poor has to be top quality. Walang nambabastos.” “The fastest way that you can get removed or terminated is by treating the patients poorly. Kahit walang pera yung pasyente, kahit madumi, kahit ano, dapat ang treatment talaga natin sa kanila ay parang world-class sila,” Solon warned. He said he wanted the hospital staff to strive to make the district hospital the best in the region.
Arakan Valley (P1.2 million), to the South Cotabato towns of Lake Sebu (P7.6 million), Tantangan (P3.9million), T’boli (P3.5 million), Polomolok (P2.5 million) and Santo Niño (P2.5 million), to the Sarangani town of Glan (P7.3 million) and the Sultan Kudarat town of Lebak (P2.7 million). Regional Director Amalia JayagDatukan of the Department of Agriculture in the Soccsksargen Region, said the department shelled out P63-
milyon to the 11 local government units under the Grassroots Participatory Budgeting (GPB) and Payapa at Masaganang Pamayanan (Pamana). The amount was part of the P118million approved budget given this year to municipal and city agriculturists and other department heads of the LGUs. All the assistance was given to infrastructure and livelihood proposals of the communities. Manuel T. Cayon
Flood, landslide cause evacuation in Compostela Valley By Manuel T. Cayon Mindanao Bureau Chief
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AVAO CITY—People living in flood and landslide-prone areas in Compostela Valley have been ordered to evacuate as a preemptive move to avert a huge loss to lives as Typhoon Senyang moves closer to northeastern Mindanao on Monday. Raul Villocino, chief of the Provincial Disaster Risk Reduction Management Council, said mining activities in many towns have been stopped since December 25 due to the continued though light to moderate rains. But since Saturday, residents were ordered to leave their houses along river banks and flooded
areas, including the 21 Ayta tribal families who made temporary shelters along a “poblacion” river in Compostela town. The tribal families were residents of a mountain barangay in the town and only stayed in the town center to do caroling around the town. They have been evacuated to the poblacion gymnasium. The town mayor of New Bataan, where a fatal mudslide killed people when Typhoon Pablo hit in 2012, already ordered the evacuation of all places severely hit by Pablo. Villocino said evacuations were ordered in all river-bank villages although the river waters have not overflowed. He said they are closely monitoring the Batoto River in Maragusan town, toward the boundary with coastal Davao Oriental province.
HE New People’s A r my (NPA) confirmed on Sunday that it has in its custody the provincial jail warden of Compostela Valley whom the police reported last week as having been abducted by four unidentified armed men, while he was tending to his business in Davao del Norte. Through Aris Francisco, their spokesman in Southern Mindanao, the rebels said they have in their custody Jose Mervin Coquilla, whom they are investigating over allegations of negligence and illegal-drugs trade in Compostela Valley’s provincial jail. “Coquilla was taken into custody by the NPA in order to subject him to an investigation to determine his individual culpability, with respect to the complaints lodged against him before the People’s Democratic Government by jail inmates and their families,” Francisco said. “Complaints against Coquilla include his willful negligence in the supervision of inmates and his direct and indirect, overt and covert participation of drug trade and drug use inside the Compostala Valley al jail,” Francisco added of the NPA’s Compostala Valley-North Davao-South Agusan Subregion, Subregional Command. The jail warden was abducted by four men at around 8:10 p.m. on Tuesday last week, while he was tending to his car wash business located beside his house at Barangay Santo Niño, Panabo City, Davao del Norte, according to Supt. Antonio Rivera, spokesman for the Southern Mindanao regional police. Rivera said the victim was loaded by his kidnappers into a Nissan Navarra pickup with license plate KGK131 which sped away. Francisco said Coquilla allegedly siphoned off funds of the Compostela Provincial Jail. “According to the complaints received by the NPA, Coquilla’s corruption has resulted in the inadequate medical and health care and food provision for inmates,” claimed the local rebel spokesman. Francisco said in order to exercise “absolute and fascist control, Coquilla’s guards” allegedly perpetrate physical abuse to their prisoners. “Coquilla has also purportedly maintained double standards and discriminatory practices. He supposedly imposes strict and inhumane regulations for visiting families who are forced to talk to their loved ones while behind bars. But he allegedly turns a blind eye to inmates who were caught using illegal drugs, and to jail guards who were involved in drugs inside the prison cells,” the guerrilla spokesman said. However, Francisco said the jail warden is presumed innocent until proven guilty “beyond reasonable doubt,” and as such, he is being treated “leniently and humanely” by the NPA custodial force.
Opinion BusinessMirror
A10 Monday, December 29, 2014
Editor: Alvin I. Dacanay
editorial
Can government succeed with LLED?
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FTER several delays, the latest word is that the Department of Public Works and Highways (DPWH) has targeted the beginning of August 2015 for the awarding of the Laguna Lakeshore Expressway-Dike (LLED) project. As we have previously written, this is an important project that will have substantial and offers long-term benefits to Metro Manila and the surrounding area. The first phase is a 47-kilometer-long six-lane road that incorporates a flood-control dike, bridges, pumping stations and floodgates. The expressway will run from the city of Taguig to the municipality of Los Baños in the province of Laguna. The second part of the LLED will be the reclamation of approximately 700 hectares west of the expressway-dike in Taguig and Muntinlupa, separated from the existing Laguna de Bay shoreline by a 100-meter to 150-meter channel. The total project cost is estimated at P123 billion and is being undertaken as a public-private partnership (PPP) project. As with all government infrastructure proposals, and perhaps particularly with the LLED, there are some controversies. The LLED is not simply building a new road, but will forever change the Laguna de Bay and surrounding area. However, there is always going to be opposition to change, even if that change is useful and advantageous. It is only human nature. The LLED is the largest PPP project in terms of cost. But the importance of the project is that it is a “game-changer” that will forever alter the region. This is not simply building a road or a flood-control dike. While certainly on a much smaller scale, this is like China’s Three Gorges Dam in terms of economic and social impact. This project changes Metro Manila in a similar way that moving the Hong Kong International Airport to Chek Lap Kok island did. The LLED is like the Four Rivers Restoration Project of South Korea, combining economic and environmental goals. The LLED will require the close cooperation of several critical national government agencies. The regional Laguna Lake Development Authority is deeply involved. Further, every local government unit along the path will be affected including that of the cities and municipalities of Taguig, Muntinlupa, San Pedro, Santa Rosa, Cabuyao, Calamba and Los Baños. The LLED, though, is not just a major infrastructure project; it is a test for the government. Its success or failure depends solely on the Philippine government. Once and for all, the Philippine government, no matter who happens to be the president, will prove whether or not it has the ability to do its job in providing for the public. That is the real legacy of the LLED.
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2015 GAA emphasizes social services Atty. Jose Ferdinand M. Rojas II
RISING SUN
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OR the fifth year in a row, the national budget has been enacted on time, ensuring a public-spending plan for next year that allows for inclusive development.
Last week President Aquino signed the P2.606-trillion General Appropriations Act (GAA) for 2015. The amount is 15.1 percent higher than the 2014 budget. The 2015 GA A ref lects the Aquino administration’s emphasis on priority programs, including those on antipoverty efforts, economic growth, governance reform, and post-disaster rehabilitation and climate change. The on-time enactment of the GAA ensures the “swift delivery of public goods and services,” Budget Secretary Florencio B. Abad said. For the second year in a row, the GAA-as-release-document scheme is also implemented, whereby appropriations are considered released to the agencies upon the enactment of the budget. This is also the second year of performance-informed budgeting, where “an agency’s budget for the
entire fiscal year is expected to support the accomplishment of specific targets, as outlined in a department’s performance information,” a Department of Budget and Management statement said. Regarding the allocations in the 2015 GAA, a huge chunk goes to social services, with P62.3 billion allotted to the Pantawid Pamilyang Pilipino Program—the government’s flagship antipoverty program—to help 4.3 million needy families. Education will be receiving P53.9 billion for basic-education facilities, such as classrooms, water and sanitation facilities, and classroom chairs. Health is supported with P37.1 billion for the Philippine Health Insurance Corp., or Philhealth, to assist 15.4 million poor and near-poor families, while housing will receive P11 billion to construct socialized
What Ebola has taught us “World Health Organization officials said Tuesday that the deadly Ebola virus could lead to 5,000 to 10,000 new cases a week in West Africa by December, despite the global fight against it....”—Chicago Tribune, October 15, 2014.
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HAT frightening prediction by the World Health Organization (WHO), made a little more than nine weeks ago, fortunately hasn’t materialized. Ebola still ravages parts of West Africa, but the trajectory of the disease is leveling off, even falling in some places. Nigeria has declared itself Ebolafree. Infections in hard-hit Liberia are reported to be declining; some treatment facilities now boast of a welcome sight: empty beds. But in Sierra Leone, cases continue to climb, though not at the frightening exponential rate of weeks ago. Overall, the worldwide Ebola death toll in this epidemic stands at more than 7,500 out of close to 20,000 reported cases. In America the Ebola crisis has slipped from the radar. No new cases have been confirmed in the United States for weeks. Hospitals and the public-health system haven’t yet been tested by large numbers of Ebola patients. Most of the handful of those who were treated have recovered, a testament to effective medical intervention against a disease with no proven cure or vaccine. Time to run up the “Ebola Mis-
sion Accomplished!” banner? Not yet. “In many ways, we’re still in the fog of war, in understanding what is happening over there,” University of Minnesota infectious-disease expert Michael Osterholm tells us. He says the early estimates of up to 10,000 new cases a week were “out of whack.” But, no matter what the numbers say, “we’re still not close to bringing it under control.” The US is building new hospital facilities in West Africa, but Osterholm warns that there has been a decline in the number of health-care workers trekking there to help local officials battle the virus. “You can have all the beds in the world, but if you don’t have workers, you’re not going to get much improvement.” That’s one lesson that Ebola teaches. Others: We’ve learned how the virus can be slowed and defeated: Catch it early. Treat it ag-
housing for needy families and those in high-risk and danger zone areas. Infrastructure will be a major area of expenditure, with P185.8 billion allotted for the development of national roads and bridges, P10.6 billion for railways, and varying amounts for other projects. Agriculture will be boosted with P89.1 billion for production projects under the Department of Agriculture and other related government agencies. Climate-change adaptation and mitigation programs are highlighted in the 2015 GAA, with P14 billion set aside for the National Disaster Risk Reduction and Management Fund, with another P6.7 billion to be used as quick-response funds. In the aftermath of Supertyphoon Yolanda (international code name Haiyan) and other natural disasters, the government’s recovery program, dubbed the Build Back Better program, will be funded with P21.7 billion. In his speech during the enactment of the 2015 GAA, President Aquino said the power to bring about change in society is not held by one person or one group alone; it is in the hands of each Filipino. “We have come a long way from where we were before,” the President said. “Now, on the straight path, we hold in our hands our own destiny….”
gressively. Track contacts. Isolate patients. Publicize your success stories. Safely bury your dead. Nigerian officials stifled an Ebola outbreak by quickly training healthcare workers on how to manage the disease and what to tell people, and by preparing the country for what to expect, Time magazine reports. Nigeria’s leaders declared an emergency as soon as the country had its first confirmed case, triggering an aggressive program to trace all people who had contact with infected patients. That’s the best way to squelch a burgeoning epidemic. Nigeria also tamped down panic by drawing attention to the cases of people who had been successfully treated and released from hospitals. That encouraged people to get treatment, not to hide from doctors and aid workers. Is Nigeria standing down? No. The health system is “ready to jump into action at all levels,” Dr. Faisal Shuaib of the country’s Ebola Emergency Operation Center, tells Time. “There is no alternative to preparedness.” The virus has flared several times since its discovery in 1976, each time killing with abandon before slinking back into the wilderness. This time, Ebola has spread farther and faster than previous epidemics. It has ex-
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THE year 2014 was not without challenges. Yet, as we look back, we see that we have weathered them with industry and grace, doing as best as we could with the time and resources that we had. The vaunted Filipino traits of resilience and bayanihan saw us through once more, boosted by preparedness borne of research, the creation of frameworks and systems, and active and mindful implementation. As we look forward to 2015, the lessons learned will enable us to accelerate development and enhance competitiveness as we join other members of the Association of Southeast Asian Nations (Asean) in the Asean Community to ensure a stable, peaceful and prosperous Southeast Asian region, one of the major projects we look forward to. On a personal note, I’m sure that those reading this will most likely be preparing for another round of feasting and celebrating for the approaching New Year. Let us be grateful for our blessings, and share them with those who need them most, especially at this time. A very happy, peaceful and abundant New Year to all! Atty. Jose Ferdinand M. Rojas II is the vice chairman and general manager of the Philippine Charity Sweepstakes Office.
posed woefully unprepared medical facilities in West Africa, and a slow, clumsy international response. The race to find effective Ebola drugs is now in full swing. That quest was stymied for years for lack of financial incentives. Translation: not enough patients, not enough demand to justify huge investments by pharmaceutical researchers. The same is true for an Ebola vaccine. National Institutes of Health researchers said recently a possible Ebola-virus vaccine appears to be safe in preliminary testing. A clinical study should proceed as planned, early in 2015. “A vaccine will be critical to putting this virus out once and for all,” Osterholm says. Ebola research that was meandering along, or had been shelved entirely, is now front and center. It needs to stay there. WHO officials acknowledged recently that they won’t achieve their ambitious yearend goal of isolating and treating all patients and safely burying the dead. The organization is doubling the number of experts to help assist community workers. Good. The US—the world—can’t lose a sense of urgency in the effort to defeat Ebola now. And, with luck and skill, forever. Chicago Tribune/TNS
Opinion BusinessMirror
opinion@businessmirror.com.ph
Monday, December 29, 2014 A11
Cuba and the US now stimulate Financial reforms at the Vatican moderation in the Americas Teddy Locsin Jr.
Free fire
Mario Osava
Inter press service
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IO DE JANEIRO—With the decision to reestablish diplomatic ties, Cuba and the US—polar opposites that have long inspired or fomented extremism of different kinds in the Americas—have now become factors of moderation and pragmatism. The continued isolation of Cuba 25 years after the end of the Cold War was so widely rejected that the US embargo, which dates to October 1960, has completely lost relevance. But it can only be abolished by the US Congress. It is politics that reigns in this case. Moreover, the measures announced by US President Obama on December 17 undermine the embargo. Raising the quarterly limit of cash remittances to Cuba from $500 to $2,000 and freeing up transactions between banks in the two countries are just two examples. Another initiative—the removal of Cuba from the list of countries that sponsor terrorism—opens doors to external financing that were closed up to now. Obama’s gesture, although late in coming, and Cuba’s acceptance will reduce tensions at a regional level that continue to exist largely due to the confrontation between the two countries. The new situation will save the Organization of American States (OAS) from the corrosion caused by the exclusion of Cuba, which is rejected by Latin American and Caribbean nations. The impatience with Cuba’s isolation was manifested by the invitation extended by the host government of the seventh Summit of the Americas, scheduled for April 2015 in Panama, to Cuban President Raúl Castro. Significantly, Castro and Obama were the first to confirm their attendance. At the last summit, in 2012, Canada and the US vetoed Cuba’s participation, blocking the consensus needed for Colombian President Juan Manuel Santos to invite the Cuban leader to the summit in Cartagena de Indias. But the controversy contaminated the debates, standing in the way of meaningful indepth discussions. The dialogue launched by Obama and Castro is aimed at strengthening the OAS, which, in 2009, repealed its 47-year suspension of Cuba. The Cuban government refused to return to an organization where, it said, “the US continues to exercise oppressive control.” But it is likely to change its stance, given the new situation.
Continental forum
THE OAS, however, will have to step up its role as a continental forum for debate on differences and conflicts, even human rights—another issue that has stood in the way of Cuba’s reinsertion, because of complaints of abuses. The regional organization will also provide an important space for Washington to rebuild its ties to Latin America, a region that has lost priority for the US in recent decades. That could reduce the weight of regional associations, like the Community of Latin American and Caribbean States, created to bring together countries in the region with cultural affinity and similar levels of development, but also as a counterpoint to the Inter-American system, where the US plays a hegemonic role. With the easing of the confrontation between Havana and Washington, one of the reference points for radicalism of all stripes will disappear in the Americas. The world could even be surprised by a congressional vote on lifting the embargo, where Obama’s position is expected to suffer a defeat at the hands of the Republican majority. The anti-Castro lobbying groups have won elections in the state of Florida, but they are aging and the opening up to Cuba stimulates economic interests against trade barriers. The easing of tension between Cuba and the US should also boost the effort to put an end to Colombia’s armed conflict, which has dragged on for over five decades. For the last two years, the government and the guerrillas have been involved in peace talks in Havana,
which is hosting the negotiations. Not so long ago, it would have been unthinkable to consider Cuba as sufficiently neutral ground for talks between the Colombian government and the insurgents. Along with the embargo against Cuba, Colombia represents the persistence of conflicts that have outlived the context that gave rise to them, confirming that history is anything but linear. Colombia’s internal conflict has claimed at least 220,000 lives since 1958—81. 5 percent of them civilians. In addition, 4.7 million people have been displaced, at least 27,000 have been “disappeared” and a similar number have been kidnapped, according to the report “Basta Ya” by the National Center for the Historical Memory, a public institution created in 2011. It also gave rise to the phenomenon of the far-right paramilitaries who are responsible for most of the estimated 150,000 people killed between 1981 and 2012—far more than the victims of the government forces or the leftwing guerrillas.
Repression vs insurgents
US support for the government had a lot do with the death toll. The repression against the insurgents was intensified by Plan Colombia, a strategy of US financial and military aid put into effect in 1999, to combat leftist armed groups, as well as drug trafficking. But it was in the 1960s and 1970s that Cuba and the US were protagonists in the most violent clashes, often by means of indirect involvement. While the socialist island-nation stimulated armed revolutionary movements in Latin America and backed anticolonialist struggles in Africa, even sending its own soldiers, Washington helped spread military dictatorships throughout the world and intervened directly where it believed its interests were threatened, such as in the Dominican Republic in 1965. Direct battles, such as the 1961 Bay of Pigs invasion by anti-Castro forces trained by the US government, espionage operations and attempts to assassinate Fidel Castro fueled the longstanding enmity that is to be overcome now by pragmatism in the face of new challenges. Cuba’s economic decline, aggravated by the crisis in Venezuela, its primary source of oil on generous terms, has encouraged new understandings with “imperialism”. Also needed in Cuba is self-criticism, the recognition of mistakes that have been made. Cuban history is plagued with halfbaked measures, only explained by centralized decisions reached without prior consultation or advice, such as the planting of coffee—basically a high-altitude crop—on land close to sea level on the outskirts of Havana. Very little was grown, and the important vegetable-producing belt around the capital was lost in the 1960s. If the revolution that inspired leftwing movements around the region— and the world—adopts a pragmatic stance and engages in dialogue with the “enemy”, it could have a moderating effect on anti-imperialist governments and parties in Latin America. Brazil could benefit from the new thaw, because of the dialogue with all political currents, and its presence in strategic projects in Cuba, such as the Mariel special economic-development zone, whose port was expanded by a Brazilian construction company, with financing from Brazil. And the sugar industry—once the pillar of the Cuban economy—could recover, thanks to technology from Brazil, which replaced Cuba as the world’s biggest sugar-cane producer.
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USTRALIAN Cardinal George Pell, who is no friend of Pope Francis’s evangelical initiatives and religious reforms, explained how the financial scandals of the Vatican had been misunderstood and misrepresented in the Western media, which had grabbed every chance they got to recall this isolated event: a bishop who hanged himself from a London bridge after he was implicated in the shenanigans of the anti-Communist and Argentine junta-connected P-2 Masonic Lodge, which was—get this—anti-Catholic.
Pell explained that the Catholic Church had 3,000 dioceses spread across the world. This rules out anything but local management. Indeed, Pope Leo XIII—who committed the Church to the cause of social justice in the last years of the 19th century; had he lived longer, he would have been dragged through US Sen. Joseph McCarthy’s House Committee on UnAmerican activities as a protocommunist—discovered early on what local management meant. He sent an apostolic visitor (a checker-upper, so to speak) to check on the 25 bishops of Ireland. The visitor reported back to Leo that he had found no bishops, just 25 popes. Sure, hundreds of millions of euros were recently uncovered by Pell tucked away in different Church accounts, but the media deliberately forgot to explain that “tucked away”
means held in reserve for emergencies—not stolen or misaligned, like the Disbursement Acceleration Program. There is no equivalent for the islet of Batanes in Italy, to which almost all Vatican funds are funneled. The good news is that the Vatican is not broke, but the need for reserves is still there. The financial independence of dioceses is somewhat like that of Wall Street banks, except the money is not other people’s money that they expect to get back with interest. It is Church money coming from donations. They don’t expect it back, although the big donors expect their gifts to be handled efficiently and honestly, Pell said. That way, the best returns are achieved to finance Church work, especially preaching the Gospel and helping the poor escape the inevitable mass poverty
Ten investing facts of life By Noah Smith Bloomberg View
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OTLEY Fool writer Morgan Housel recently came up with an impressive list of 122 investing aphorisms (http:// www.businessinsider.com/things-everyone-should-knowabout-investing-and-the-economy-2014-12) that distill the wisdom he has gleaned from years of writing about markets and the financial industry. Most are either insights into human psychology or historical facts and figures. Almost all of them, in my humble opinion, are good advice.
In fact, there was really only one I didn’t like: “67. Finance would be better if it was taught by the psychology and history departments at universities.” As someone who teaches finance, I might sound a little self-serving for saying that academic finance has valuable things to teach students. But, if you look at Housel’s list of aphorisms, many of them come from research done by finance professors! And many of the others have recently been confirmed by academic research. Just to illustrate the point, I picked out 10 of my favorites from the list. “6. As Erik Falkenstein says: ‘In expert tennis, 80 percent of the points are won, while in amateur tennis, 80 percent are lost. The same is true for wrestling, chess and investing: Beginners should focus on avoiding mistakes, experts on making great moves.’” This is called the Grossman-Stiglitz paradox. Obviously, if all investors try to beat the market, a lot of effort will be wasted. But if none of them tries to beat the market, the market won’t be a useful aggregator of information. The solution is to have true experts dig up new knowledge and make money doing it, while
everyone else invests in index funds and exchange-traded funds and just goes along for the ride. “14. Investor Nick Murray once said, ‘Timing the market is a fool’s game, whereas time in the market is your greatest natural advantage.’ Remember this the next time you’re compelled to cash out.” Definitely. In fact, a growing body of research is finding that chasing returns is a killer for many investors. “24. According to J.P. Morgan, 40 percent of stocks have suffered ‘catastrophic losses’ since 1980, meaning, they fell at least 70 percent and never recovered.” If you understand the math of the random walk—the idea that stocks move in unpredictable ways—this won’t be very surprising! “28. According to Vanguard, 72 percent of mutual funds benchmarked to the Standard & Poor’s 500 underperformed the index over a 20-year period ending in 2010. The phrase ‘professional investor’ is a loose one.” This is absolutely crucial for investors to know. Actually, finance professors have been yelling about this for decades. “44. Our memories of financial
generated by rampant capitalism. “A Church for the poor should not be poorly [managed],” said Pell, who has divided financial decisionmaking in the Church, while leaving finances to local management as the only viable option. What Pell has done is impose layers of checks and balances and—here I worry—subject Church finances to auditing by the big four accounting firms that connived with thieving bankers to rob the planet blind until the global financial system fell to pieces in the 2007 to 2009 global financial crisis, from which the world has not yet fully
recovered. For this, the bankers were bailed out by the US Federal Reserve and awarded themselves fat bonuses from the bailout. Pell said his aim was to make Vatican finances so efficient, transparent and honest that the Church would stop attracting the hostile attention of the same Western media that spared, if not concealed, the patent dishonesty of the Wall Street banks, because the Western media, especially the business newspapers, are in the pockets of Wall Street. There you go—the truth about Vatican finances.
history seem to extend about a decade back. ‘Time heals all wounds,’ the saying goes. It also erases many important lessons.” This is the subject of a recent line of research by University of California, Berkeley, professors Ulrike Malmendier and Stefan Nagel (among others), who find that Depression babies expect more depressions, and people who grew up during the 1970s expect more inflation. “46. The most boring companies—toothpaste, food, bolts—can make some of the best long-term investments; the most innovative, some of the worst.” Very true, and finance researchers have noticed the outperformance of value stocks over glamor stocks for decades! “50. A broad index of US stocks increased 2,000-fold between 1928 and 2013, but lost at least 20 percent of its value 20 times during that period. People would be less scared of volatility if they knew how common it was.” Any investor who has a basic grasp of the idea of randomness and the behavior of random processes will be much better equipped to understand the finance world than someone who naively thinks in purely deterministic terms. In fact, the more informationally efficient financial markets are, the more unpredictable their movements will be! “68. According to University of Oregon economist Tim Duy, ‘As long as people have babies, capital depreciates, technology evolves and tastes and preferences change, there is a powerful underlying impetus for growth that is almost certain to reveal itself in any reasonably well-
managed economy.’” This is a great advice. But it’s also a reason not to invest in stocks in Japan, where the population is shrinking and productivity has stagnated. Seen in the context of economic fundamentals, it might not be so surprising that the Japanese stock market has been in, more or less, secular decline for more than two decades. “90. Several academic studies have shown that those who trade the most earn the lowest returns. Remember Pascal’s wisdom: ‘All man’s miseries derive from not being able to sit in a quiet room alone.’” Overtrading is, indeed, a big killer of individual stock returns. As finance researchers Brad Barber and Terry Odean put it in a landmark 2000 paper, “trading is hazardous to your wealth.” “97. The single best three-year period to own stocks was during the Great Depression. Not far behind was the three-year period starting in 2009, when the economy struggled in utter ruin. The biggest returns begin when most people think the biggest losses are inevitable.” Long-run predictability is one of the most interesting facts discovered by finance researchers in the last few decades, and it’s what earned Yale economist Bob Shiller his Nobel Prize in 2013. You can indeed make a little extra money by buying stocks when they are cheap and selling when they are expensive. Just remember not to take this strategy to extremes! Housel’s compilation of aphorisms is a good list. Check it out. And remember, finance academics are hard at work discovering interesting and useful facts about investing, trading and asset markets.
Let our hope kindle better days
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T’S little surprise that the holiday season comes at the end of the year. That’s when we need it the most. After 12 tough months, we have to reboot. And these last 12 months have been brutal in many ways. The headlines of 2014 hammered us relentlessly, most recently with the ambush killings of two police officers in Brooklyn, New York, reminding us of the horrors that can befall us and the horrors we inflict on ourselves. Malaysia Airlines Flight MH370 disappeared over the Indian Ocean,
and Russian-backed rebels in Ukraine shot down another Malaysia Airlines jet. The Ebola virus killed thousands in West Africa, and terrorist group Boko Haram killed thousands in Nigeria. The Islamic State rose, Syria collapsed and the word “beheading” was heard more often. The deaths of Michael Brown and Eric Garner at the hands of police wrenched the United States into a searing conversation about race, power and perception. And, most recently, the Taliban killed dozens of students in Penshawar, Pakistan, two years and two days
after the slaughter in Newtown, Connecticut. The smallest coffins, indeed, are the heaviest. The holidays are supposed to be the antidote. We wish each other peace and goodwill, no matter our religion. We seek relief, we reflect and we pivot toward optimism about the year ahead. But is seeking relief a sign of sanity or a form of blindness? Is optimism naive or an expression of faith that goodness, at some point, will prevail? We cannot let dreadful acts consume us. The past year gave us plenty
of inspiration, too. A 17-year-old girl from Pakistan won the Nobel Peace Prize, doctors and nurses continued to volunteer to fight Ebola, and Pope Francis spread a powerful message of tolerance and acceptance. Each was its own lesson in courage, and expanded our conception of what could be achieved. So gather with friends and family. Bask in their warmth and love. Walk the line between remembering the past and yearning for the future. And hope for happier and less unsettling days to come. Newsday/TNS
2nd Front Page BusinessMirror
www.businessmirror.com.ph
A12 Monday, December 29, 2014
Govt needs more participants in ILP
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By Lenie Lectura
ITH three months left before an anticipated power crisis in Luzon catches up on policy-makers, the government is scouting for more Interruptible Load Program (ILP) participants and looks forward to the issuance of a joint resolution granting President Aquino “special powers” to make the program work.
“As far as I am concerned, the ILP can still be recruited up to the start of summer next year, [although] we need Congress’s issuance of a joint resolution for this to be operational,” Energy Secretary Carlos Jericho L. Petilla said in an interview. The House of Representatives has approved on third and final reading House Joint Resolution 21, granting the President additional powers to ad-
dress the anticipated power crisis. Petilla awaits for the Senate also to issue its own resolution. “The earlier the better,” said the energy chief, who could not stress enough the importance of the joint resolution. President Aquino has asked Congress for authority to contract additional generating capacity on September 12 following an announcement by the De-
partment of Energy (DOE) of a power shortage from March to June next year, which invoked the power-crisis provision of the Electrical Power Industry Reform Act of 2001. Latest data from the DOE show that the main Luzon island needed 782 megawatts (MW) of power, of which 135 MW were required to meet the mandated regulating reserve. Another 647 MW were needed to meet the required contingency reserve. The DOE has warned of a power shortage starting mid-March next year, when the Malampaya natural-gas facility goes on a one-month maintenance shutdown until April 15, 2015. The gas facility supplies power to the 1,200-MW Ilijan combined-cycle natural-gas plant owned by Kepco Philippines Corp.; and the 1,000-MW Sta. Rita and the 500-MW San Lorenzo natural-gas power plants owned by First Gen Corp. of the Lopez group. In all, the Malampaya deep water, natural gas-to-power facility accounts for 40 percent of the See “ILP,” A2
D.A. allocates P1 billion to hike palay output By Alladin S. Diega Correspondent
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he Department of Agriculture (DA) has set aside P1 billion to encourage farmers to plant more rice and help the government attain its goal of producing 20.08 million metric tons of unmilled rice next year. Agriculture Secretary Proceso J. Alcala said the amount will be used to fund a loan program that will cover 45 provinces. Under the program, every qualified nonhybrid-rice farmer could get a loan of P47,000, while a qualified hybrid-rice farmer could borrow P52,000. The loan program was inspired by a nationwide competition, dubbed as “Palabayangan: The 10-5 Challenge,” where
participating farmers were required to produce 10 MT of rice per hectare while spending only P5 worth of input for every kilogram of rice produced. Alcala noted that the 10-5 feat was achieved using improved rice and hybrid-rice varieties. He said the DA is currently testing the adaptability of “Green Super Rice,” a variety jointly developed by Laguna-based International Rice Research Institute (Irri) and the Philippine Rice Research Institute under the DA. He said Green Super Rice is inbred and is achieved by cross-pollinating traditional varieties with varieties that provide higher yields per hectare. In a separate statement, Irri said the Green Super Rice combines the superior traits of 250 varieties and
STOCK-MARKET OUTLOOK Last week Share prices inched higher last week, which only had two trading days, as lastminute buying propped up the market with global jitters starting to ease. The benchmark Philippine Stock Exchange index (PSEi) gained 60.69 points to close at 7,186.32 points, as other subindices rebounded. Analysts said last week’s performance was just a continuation of the previous week’s rebound, although volume came only from those investors who parked their excess cash in the equities market prior to the long Christmas holidays. “With fundamentals intact plus support from cheaper crude prices, consumer plays may take the limelight on brisk demand for the season,” said Jason Escartin, equity analyst at F. Yap Securities. Year-to-date the PSEi already gained 22 percent, or 1,296.49 points, reaching as high as 7,360.75 points and as low as 5,842.88 points, according to PSE data. Value of trading during the two-day session reached P10.64 billion, which was higher than the year-to-date average of P8.8 billion. Foreign investors were net buyers, with purchases totaling P19.46 billion. For the year, foreigners were net buyers at P55.91 billion over total volume reaching P2.08 trillion. Other subindices closed higher, led by the Mining and Oil index that surged 2.44 percent, or 374.16 points, to close on Tuesday at 15,721.77. The All Shares index gained 39.71 to 4,235.52; the Financials index rose 11.42 to 1,688.96; the Industrial index was up 28.38 to 11,845.74;
the Holding Firms index expanded 62.90 to 6,252.92; the Property index climbed 17.60 to 2,787.87; and the Services index increased 31.96 to 2,119.64.
This week
several hybrids variously adapted to difficult growing conditions, such as drought and low inputs, including the absence of pesticide and minimal use of fertilizer. Alcala said the government is targeting to bring down the cost of producing a kilo of rice to a range of P8 to P8.50 before the quantitative restriction (QR) for rice under the World Trade Organization expires in the middle of 2017. The QR has allowed Manila to limit the volume of cheaper rice from other countries that may enter the country. For the week ending December 16, the Philippine Statistics Authority said the average farm-gate price of unmilled rice declined by a minimal 0.88 percent to P19.16 per kilo.
‘Political positioning’ for 2016 could stall reforms –Moody’s By Bianca Cuaresma
Prices are expected to climb this week, the last trading for the year, as investors will continue to purchase stocks as part of their annual window-dressing activities. US market watchers look with optimism at the week’s trading as stocks often gain in the month of December, traders said. “The local market is seen to simply track foreign markets in the closing trades for the year, while itself continuing to keep consistent with its past record,” said Justino Calaycay Jr., trader at Accord Capital Equities Corp. “All bets are off at this point. The market will be moved by sheer sentiment— balanced between bargain hunting and profit-taking. In the end, we believe the bulls will win out,” he said. Monday will be the last trading day for the year and also for the week, as the government declared as regular and special nonworking holidays December 30 and 31, and January 1 and 2, 2015. Trading resumes next week, January 5. “We understand that prolonged breaks can be disruptive to the financial system, especially in the context of globalizing environments, and we have thus asked the Bangko Sentral ng Pilipinas to take into account in subsequent similar occasions opening clearing operations to minimize such disruptions,”PSE President Hans Sicat said.
nternational credit-rating agency Moody’s Investors Service lauded the performance of the Aquino administration as it nears the end of its term, but warned that “political positioning” toward 2016 may be a hindrance to reforms it has put in place. In a recent analysis on the Philippines, Moody’s said domestic political event risks are considered “low” and reflect “stability” under the Aquino presidency. This, according to the ratings agency, “stands in contrast to the latter years of the two preceding administrations, which were fraught with political turmoil.” “The government’s track record of policy performance over the past four years has been facilitated by a more favorable political backdrop,” Moody’s said. Among the “crucial” developments that Moody’s cited are the signing of the Bangsamoro agreement and fiscal reforms. “Our assessment of domestic politicalevent risks also incorporates positive developments related to the long-running Islamist insurgency in the southern region of Mindanao,” Moody’s said. “Political fallout from the court-mandated fiscal reforms caused a dip in [Mr.] Aquino’s approval ratings earlier in 2014, but the ratings have since recovered somewhat and have stayed at historically
See “Stock-market outlook,” A2
See “Moody’s,” A2
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