Businessmirror december 31, 2014

Why the U.S. will power the world economy in 2015 WASHINGTON—The United States is back, and ready to drive global growth in 2015. After long struggling to claw its way out of the Great Recession, the world’s biggest economy is on an extended win streak that is edging it closer to full health. But the new year doesn’t look quite so bright in other major countries.

China is slowing as it transitions from investment to consumption. Japan has slid into a recession. Russia appears headed for one. Europe is barely growing. »Continued on A2

United States President Barack Obama speaks during a news conference in the Brady Press Briefing Room of the White House in Washington on December 19. The president said the US is making significant strides where it counts, beginning with the economy. AP/Carolyn Kaster

GDP

Percent change from previous quarter, seasonally adjusted:

ANNUAL

4 2.8% 2 0 -2 -4

’03

1.9

’13

5.0%

4 2 0 -2 -4

’11

’12

’13

’14

Graphic: TNS Source: U.S. Bureau of Economic Analysis

BusinessMirror

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

A broader look at today’s business

www.businessmirror.com.ph

Tuesday, November 18,31, 2014 10 10 No.No. 40 Wednesday, December 2014Vol.Vol. 83

nn

P25.00 nationwide | 4 sections 20 pages | 7 days a week

Napocor SEEKING E.R.C. APPROVAL ON APPLICATION FOR RECOVERY-COST ADJUSTMENTS

PAPAL VISIT 2015

Another power-rate hike looms C

By Lenie Lectura

ustomers of the National Power Corp. (Napocor) will experience an increase in their electricity bills once the Energy Regulatory Commission (ERC) approves the state-run power firm’s application for recovery-cost adjustments.

14 DAYS INSIDE

iPhone makes its way to phablet territory Year of consecrated life

D

EAR Lord, we rejoice in the second observance of the coming year 2015 dubbed as the “Year of consecrated life,” which has been proclaimed by Pope Francis for the whole Church. This observance will stretch from the first Sunday of Year B to the solemnity of Christ the King of the same liturgical year. Do we consider ourselves consecrated in the name of the Lord? The sacramental signs, that we received, some of which are normative and unchangeable, were taken up by Christ and are made the bearers of his saving and sanctifying action. Thus, we are consecrated in life. Amen.

WORD AND LIFE, FR. SAL PUTZU, SDB AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

In its application received by the ERC on December 22, the state firm proposed to increase its rate by P1.8279 per kilowatthour (kWh) in Luzon; P2.1585 per kWh in the Visayas; and P1.4654 per kWh in Mindanao.

The proposed rates, it said, re-

MMFF SNUBS AND WELCOME SURPRISES »C2

BusinessMirror

Wednesday, December 31, 2014

D1

Happy holidays: The iPhone makes its way to phablet territory

B G R Lifestyle & Entertainment Editor

S

TEVE JOBS, the late founder of Apple, once famously dismissed the competition’s race to shoehorn increasingly bigger screens into smartphones, likening the end-products to “Hummers”, those luxury SUVs that look like miniaturized tanks—silly, unwieldy and even downright vulgar given the limited road space of any neighborhood, except perhaps in, say, Dubai.

“No one is going to buy them,” Jobs said in a July 2010 news conference.

Fast-forward to September 2014 and with millions of “phablets”—as these smartphone/ tablet hybrids have come to be called—now in the hands of consumers worldwide, Apple decided to crash the big-screen party, unveiling at its Cupertino, California, headquarters not just the iPhone 6 with its 4.7-inch Retina HD Display but also the iPhone 6 Plus—a surprising piece of kit that packs a 5.5-inch screen but with dimensions that push it straight into phablet territory, rivaled in size only by Sony Xperia T2 Ultra and its 6-inch screen and, before it, the Sony Xperia Z Ultra with its 6.4-inch display.

Not surprisingly, these latest releases from Apple have found their way into the postpaid subscriber offerings portfolio of Globe Telecom, the leading wireless communications provider around these parts which forged a hugely successful partnership with Apple beginning with the release of the first-generation iPhone in 2007.

In a statement released to the media, Globe Telecom Senior Vice President for Consumer Mobile Marketing Issa Cabreira said, “Finally, the iPhone 6 and iPhone 6 Plus have arrived in the Philippines and Globe is beaming with excitement to bring the latest iPhones to Filipinos. With our long-standing partnership with Apple, we are poised to provide a complete digital experience to consumers: best-in-class postpaid plans, exclusive privileges and the biggest rewards, and a complete suite of value-added services and apps.”

In its revised pricing offer particularly for the iPhone 6 Plus, which was made effective on December 22, Globe now offers the big-screened sibling of the iPhone 6 at Plan999 with a monthly cashout of P1,250 for 24 months. With the plan comes the following: unlimited calls and texts to Globe/TM and GoSURF499 with 1.5GB of data monthly. With a GoSURF499 subscription, customers get a Navigation Bundle for unlimited access to Accuweather, Google Maps, GrabTaxi, MMDA app, and Waze; 1GB of Globe Cloud; one-month access to Wattpad; a month’s access to NBA League Pass; and three-month access to Spotify Premium. The carrier’s so-called Reset program, which allows existing postpaid customers to renew or extend their existing account to get the latest babies from Cupertino, is available until today, December 31.

Globe loaned us an iPhone 6 Plus to play with

during the holidays, and what can we say?

It is BIG—measuring 6.22 inches in height and 3.06 inches in width, there’s no other way to describe it. While the iPhone 6 Plus has the same screen size as that of the bestselling LG G3, the Plus is notably taller and a smidgen wider.

The seemingly unnecessary height can be easily attributed to the fact that Apple can’t simply do away with that round home button that sits just below the screen of every iPhone and iPad in existence. That said, it is much slimmer—just at 7.67 mm, while LG’s flagship comes in at 8.9 mm.

No doubt, some would prefer the model-thin proportions of the iPhone 6 Plus, while others would say the bit of girth the G3 provides makes it easier to use. Needless to say, mileage among users with different predilections will vary.

As in earlier iPhone generations, the build quality of the iPhone 6 Plus is exemplary. The smooth aluminum that wraps the back of our loaner unit—in space gray; gold and silver variants are available—is delicious to the touch, the sides gently rounded out to seemingly fuse with the shatter-proof glass that protects the LED-backlit IPS LCD capacitive touchscreen.

It’s a sublime touch that heightens the sense of premium iPhone users are predisposed to crow about. And, yes, we have read reports and seen videos of the so-called #Bendgate, with users despairing about their iPhone 6 Plus emerging bent from their pockets, but in the couple of weeks we have been toting around the loaner unit in our pocket, we have yet to discern even the slightest warping. Knock wood.

The display has a 1,080x1,920 resolution and—401 ppi pixel density—and it is one of the best displays out there in the smartphone/phablet space, with color and clarity as such that still and moving images appear even more life-like. The display also boasts of a new polarizer that makes the screen quite viewable even under the sun, and Apple also appears to have upped up the contrast levels from previous iPhones, all these making the overall viewing experience an absolute delight.

Of course, a bigger screen inevitably impacts battery life, and we don’t need to tell you that the battery woes of iPhone users have been gleefully mocked by Samsung on several occasions. Thankfully, Apple saw the wisdom in shoehorning a powerful Li-Po 2915 mAh battery into its first offering in the phablet space, and that has given us a day and a half of typical usage that includes intermittent browsing and working email and various social media accounts on LTE and Wi-Fi, and either listening to music or watching episodes of Downton Abbey, while caught up in mad holiday traffic.

Wasn’t it such fantastic thrill to see Mr. Carson finally propose to Mrs. Hughes?!

Now, if you want to know more about Apple’s debut in the phablet realm, head on over to www. apple.com/iphone/. To know more about how you can up your iPhone 6 Plus experience with Globe Telecom, visit www.globe.com.ph/iphone6/. ■

T

he country’s international investment position, which tracks the difference between Manila’s foreign assets over its foreign liabilities, widened by $1 billion in the third quarter to $51.4 billion, according to the Bangko Sentral ng Pilipinas (BSP).

The imbalance was traced to socalled negative revaluation adjustments, when the value of the for-

c1

property of the month: azure north in pampanga D1 | Wednesday, December 31, 2014 • Editor: Tet Andolong

Continued on A2

PHL’S NET LIABILITY POSITION WIDENED IN Q3 ON LOWER G.I.R.

By Bianca Cuaresma

life

flect additional operating costs incurred by the NPC-Spug (Small Power Utilities Group) as a result of the fluctuation in the prices of fuels used in power generation. Napocor is allowed to recover this deferred fuel costs through the Generation

eign assets diminished as a result, among others, of the eroded value of the country’s foreign-currency reserves, or the gross international reserves (GIR), in this case.

In the second quarter, the country’s international investment position stood at only $50.4 billion.

As a result, the nine-month external financial liabilities widened to $191.3 billion from only $189.6 billion a quarter earlier. In that Continued on A8

BusinessMirror

MNTC to motorists: Avoid holiday rush

V

AZURE North in Pampanga

A CUT ABOVE THE REST

A

B R R R

S far as the development of resort-themed residences is concerned, Century Properties Group Inc. is one of a kind. After the successful launch of the Azure Urban Resort Residences in Parañaque City in 2013, Century Properties said Azure North in San Fernando, Pampanga, had a presales of P1.6 billion in just three months.

AZURE Urban Resort Residences, a world-class showpiece that captures the spirit of iconic beach resorts.

“We are excited about the prospects of Azure North. Our sales take‐up figures are proof of the strength of the city’s economy and the strength of the Century brand,” said Century Properties Investor Relations Director Kristina Garcia in a statement issued to the media.

Azure North is the company’s first venture into an integrated mixed-use development in Pampanga and outside Metro Manila.

“The Resort Residences at Azure North is a new, cutting-edge, mixeduse development in San Fernando, Pampanga, Philippines, that brings the experience of beachfront living to the heart of the city.”

Azure North’s towers

THERE is no doubt that Monaco and Bali are the hottest items in Century’s current thrust in resort-themed developments. The two towers generated a huge presales for the company.

Monaco and Bali are just the starting points of development in Azure North. Overall, the development will have seven planned residential buildings with projected sales revenues of P14 billion.

The Monaco Tower is inspired

by the tiny principality of Monaco, one of the major playgrounds of the rich and famous that caught world attention when American actress Grace Kelly got married to Prince Rainier. While Bali is inspired by the world-famous Indonesian resort.

Just like Azure Urban Resort, the residential tower and town house cluster in the San Fernando project will be named after some of Paris Hilton’s favorite seaside resorts and beaches: Bali, Saint Barths, Barbados, Fiji, Kauai, Monaco and Palawan.

Furthermore, the 8‐hectare Pampanga development signifies Century’s initiative to expand its development road map by entering into major growth areas in the Philippines to build integrated communities with residential, commercial, hotel and institutional uses.

Century acquired the Pampanga property in August 2013, from the House of David Realty and Development Corp. The property is in north of Metro Manila, within the San Fernando Interchange on Jose Abad Santos Avenue and the North Luzon Expressway, and is situated across the SM, Robinsons and S&R malls in San Fernando City.

THE Function Hall inside The Paris Beach Club

THE Paris Beach Club

Just like the successful and award-winning Azure Urban Resort Residences in Parañaque City, Century Properties will also build a man‐made beach in Azure North and complement it with organic design elements and additional recreational amenities.

“We are bringing the world‐ class residential resort lifestyle to one of Luzon’s most dynamic cities.

San Fernando is the perfect home for Azure North as it is the regional center of Central Luzon, with direct access to northern Luzon and the Subic Bay economic zone,” Garcia said.

Investing in Azure North

CONTRARY to popular belief, condominiums do not require high maintenance. Just like other topnotch condominium development projects, Azure North will have its own maintenance team, which will take care of mowing the lawn, pulling weeds, painting fences, cleaning the gutters and other typical “homeowner” concerns. With these tasks delegated to the maintenance team, Century said that an owner will be able to pursue his hobbies and enjoy his private manmade beach and other amenities.

Owning a unit at Azure North enables an owner to enjoy the beauty of the breathtaking man-made beach. Moreover, it saves him a lot of time because he does not need to

AZURE Residences Modernist design

take out-of-town trips to enjoy the benefits of going to the beach.

Century cited the property’s fantastic location in Pampanga, which offers a rich culinary history and scenic tourist spots, including Clark Freeport Zone in Clark, Pampanga; Camalig (an ancient rice mill converted into restaurant); Clark Barn Houses (century-old houses of American soldiers); Kamikaze East Airfield; and Salakot and Abe’s Farm are just a few among the tourist attractions in the city.

Aside from providing the best of resort living, Azure North also provides an opportunity for profit.

If an owner is not interested to move into the property, he has the option to rent it out and make a passive income—a great option for owners who work overseas. In fact, Century Properties makes it convenient for owners by organizing a department that will collect rent and remit the money to the owner.

Last but not the least, living in Azure North ensures the owner’s safety and security. It has strategically placed surveillance cameras and ample 24/7 security.

Azure Urban Resort Residences

EVERYBODY knows heiress and international celebrity Paris Hilton is the face of Azure. Her magnum opus, the Paris Beach Club, is the centerpiece amenity of Azure Urban Re-

sort Residences, a 6-hectare resortthemed condominium development of Century Properties.

Hilton came to Manila in March to lead the inauguration of the Paris Beach Club. She made her first trip to the country in 2011 to work with the company’s creative team for the design and amenity specifications of the multiple-level beach club.

The Paris Beach Club will be exclusive to Azure residents and their guests. It is adjacent to the Azure Beach, the development’s central amenity. It is a sprawling man-made beach with fine sand and undulating waves. It also has a waterfall, a poolside bar and an infinity pool that overflows into the private beach coves located on the opposing ends of the development.

On the ground level, the Paris Beach Club has a posh high-ceilinged lobby with chandeliers and black velvet chairs, as well as a colorful ice cream and candy bar. The second floor has separate spas and locker rooms with social lounge. The topmost floor has the indoor and outdoor restaurants, which gives a wide view of Azure Beach.

The Azure Urban Resort in Parañaque City has a total of nine buildings that showcase a new standard in 21st-century tropical living. Designed by the award-winning master planner and architectural firm Broadway Malyan, each tower is set in a breathtaking tropical modern aesthetic that provides optimal natural ventilation, light and shade.

The nine towers are named after the world’s most popular beach destinations—Rio, Santorini, Saint Tropez, Positano, Maui, Maldives, Miami, Bahamas and Boracay.

Each of the towers has a roof

deck that will have beehive-like seating areas amid refreshing greenery.

Other amenities of Azure Urban Resort are an open park, Zen garden, multiple playgrounds, lap pool with cascading waterfalls, kiddie water slide, poolside bar, beach-volleyball area and a basketball court.

“We wanted to provide our residents with a world-class residential resort experience so we chose to partner with an equally world-class personality known for her fine taste, having been exposed to the world of real-estate development early on and having visited the world’s top beach destinations,” said Century Properties COO John Victor “Jigger” R. Antonio.

Recently, Century Properties received the highly coveted Best Condo Development in the Philippines Award in the recent Southeast Asia Property Awards held in Singapore.

“This is a huge honor for us and it will serve as our motivation to continue with our goal of delivering world-class projects that highlight the progress that is happening in the Philippines,” Antonio added.

“Creating an urban resort residential community in the middle of the city pushed the envelope of Philippine real estate. We are thankful for the recognition that the Southeast Asia Property Awards has given us, as it inspires us to continue building innovative and quality real-estate projects.”

Azure bested other notable developments from the Philippines’s other top developers. It took six months of “comprehensive deliberation and site visits across Southeast Asia” for the award organizers to determine the winners. www.azure.com.ph.

PROPERTY AZURE Residences Luxe design

By Lorenz S. Marasigan

D1

EHICULAR traffic along the expressways leading to the provinces in Northern Luzon is expected to rise by as much as 30 percent in some segments in the coming days, due to the influx of people returning to Metro Manila and those who will still take advantage of the remainder of the holiday break.

Manila North Tollways Corp.

PESO exchange rates n US 44.6170

President Rodrigo E. Franco told the BusinessMirror that the average vehicle entry at the North Luzon Expressway (Nlex) and the SubicClark-Tarlac Expressway (SCTEx) is expected to rise at a range of 10 percent to 15 percent during the remaining days of the holidays.

“During the Christmas holidays, we recorded a rise of 30 percent from last year in terms of traffic, which was at 210,000 vehicles per day.

See “MNTC,” A2

rizal day Top photo shows President Aquino (right) looking up, as he leads the flag-raising rites to pay homage to the 118th

anniversary of the martyrdom of Dr. Jose P. Rizal, the country’s national hero, on Tuesday at the Luneta Park in Manila. Rizal was executed by firing squad during the Spanish colonial rule and became the symbol of the 1898 Revolution against the Spanish colonizers.

Others in photo are Vice President Jejomar Binay (third from left), former President and now Manila Mayor Joseph Estrada (second from left) and Defense Secretary Voltaire Gazmin. Above photo shows the largest flag in the country flown at half-mast, with Rizal’s monument in the background. AP/Bullit Marquez/ROY DOMINGO

n japan 0.3706 n UK 69.4062 n HK 5.7489 n CHINA 7.1813 n singapore 33.6961 n australia 36.2063 n EU 54.3390 n SAUDI arabia 11.8899 Source: BSP (29 December 2014)

A2

News BusinessMirror

Wednesday, December 31, 2014

Another power-rate hike looms through a provisional authority would help alleviate the operational funding of Napocor,” it said in its nine-page application.

In a separate application, the Napocor is also seeking to recover P8,996,066 in deferred foreign-exchange (forex) costs for the billing period July 2013 to December 2013 through the imposition of a P0.0194-per-kWh incremental currency exchange-rate adjustment (Icera) over a period of 12 months.

Again, the Napocor said since these expenses were incurred in the second semester of 2013, an immediate recovery of this adjustment through a provisional authority would help alleviate its operational funding.

Continued from A1

Rate Adjustment Mechanism (Gram).

The Napocor-Spug is responsible for providing power generation and its associated power-delivery systems in areas that are not connected to the grid. Napocor’s application covers the billing period from July to December 2013. If approved, the proposed rates will be implemented over two years to fully recover P1,652,190,724 worth of deferred fuel costs to mitigate the impact to Napocor customers in the missionary areas. “Since these expenses were already incurred in the year 2013, immediate recovery of the needed adjustment

MNTC. . . Continued from A1

Why the US will power the world economy in 2015 Continued from A1

And the US? Six years after its financial system nearly sank and nearly that long since the recession ended, the US is expected to grow in 2015 at its fastest pace in a decade. Its expansion from July through September—a 5-percent annual rate—was the swiftest for any quarter since 2003.

That pace will likely ease a bit. Still, the economy is expected to expand 3.1 percent next year, according to a survey by the National Association for Business Economics. It would be the first year of 3-percent growth since 2005.

The acceleration of US growth is a key reason the global economy is also expected to grow faster, at about 3 percent, up from 2.5 percent in 2014, according to economists at JPMorgan Chase and IHS Global Insight.

Cheaper oil

Plunging oil prices are a big reason for the

“The proposed Icera is based on forexrelated adjustments attributable only to Napocor-Spug operations. The Napocor finds it proper to request the commission for a provisional authority,” it said.

The Gram and Icera are two ERC-approved adjustment mechanisms designed to allow the Napocor to recover actual and incremental fuel rates, independent power producer rates and forex fluctuation costs that it incurs in the course of producing electricity.

The Napocor is required by the ERC to file the Gram and Icera adjustments on a quarterly basis under an order issued in February 2003.

optimism. Prices have been cut roughly in half since summer. In some areas of the country, gasoline prices have slipped below $2 a gallon.

The drop, along with more fuel-efficient cars, will save the average US household $550 on gas next year, according to the US Energy Information Administration. That means consumers have more to spend on items like cars, furniture and appliances.

What’s more, Americans’ finances are in firmer shape. Job growth is accelerating.

Businesses are investing in buildings and software, and homebuilding is expected to pick up.

Lower oil prices will also help Europe and Japan, and the global economy should expand faster than it did this year, economists say. But the divergence between the US and most of the rest of the world is striking and carries some risks.

Big exporters, from China to Germany to Japan, will depend heavily on a recovering US to boost their economies. AP

We expect the same for the New Year, but the average increase should be around 10 percent to 15 percent. Traffic on some segments, on the other hand, is expected to rise at a faster 30-percent rate,” he said in a phone interview.

In an advisory, the tollroad company advised motorists to thoroughly plan their trips to avoid the holiday rush. “Motorists are encouraged to plan their trips, avoiding traffic-volume peaks at the Nlex and Sctex on December 31 northbound and on January 3 and 4 southbound,” the advisory read.

As was done during the Christmas holidays, additional trafficmanagement measures will be deployed, the Pangilinan-controlled firm said, including the opening of more lanes at both the Bocaue Interchange and the Dau Toll Plaza. Counterflow traffic will be implemented and ambulant tellers will also be fielded.

“Traffic patrols and emergency crews will be making rounds to quickly assist motorists in need while Nlex’s Traffic Control Room will be monitoring traffic round the clock,” the company said. Digital signs at the Nlex will also be rolled out to provide up-to-the-minute traffic updates along the expressway. The number of vehicles passing through major thoroughfares in Luzon usually rises during the holidays, as more and more people come home to their provinces to spend the holidays with their families. Traffic is usually heavy along the toll plazas.

Sen. Franklin M. Drilon had his taste of the congestion during the holidays, when he went to Baguio City this month during the Christmas rush. He then called on Monday a Senate probe on the matter, saying the toll-collection system at the expressways should be integrated to lessen the queue on toll payments.

3-DAY EXTENDED FORECAST DECEMBER 31, 2014 | WEDNESDAY

TODAY’S WEATHER Tropical Storm is a cyclone category with winds of 64 - 118 kph.

TROPICAL STORM “SENIANG” WAS ESTIMATED AT 108 KM SOUTHWEST OF ILOILO CITY.

news@businessmirror.com.ph

Biggest New Year countdown set in Ciudad de Victoria Continued from A8

Kabayan Ko, Kapatid Ko concert is also set top-billed by artists like Kathryn Bernardo, Snooky Serna, Leo Martinez, Victor Wood and Anthony Castelo.

Aside from R&B superstar Chris Brown and rockstar Bamboo, singers KZ Tandingan and Morisette, Enrique Gil, Sam Concepcion, Brisom and Japan’s most sought-after dance group Tempura Kidz will be performing in the New Year’s Eve concert at the Philippine Arena.

Adding more to the star power of the 2015 Philippine Countdown is the concert at the 20,000-seater Philippine Sports Stadium, also inside the vast Ciudad de Victoria grounds, where at least 16 of the top pop and rock artists and bands will perform on the same night, December 31.

Performing at the Philippine Sports Stadium on New Year’s Eve are Barbie Almalbis, Kitchie Nadal, Rico Blanco, 6 Cycle Mind, Callalily, Imago, Itchyworms, Mayonnaise, Parokya ni Edgar, Autotelic, Brisom, Kjwan, Sandwich, Silent Sanctuary, Spongecola and Up Dharma Down.

The ticket prices for the New Year’s Eve concert inside the Philippine Arena are as follows: Patron, P3,605; Lower Box A, P3,300; Lower Box B, P2,165; Upper Box, P1,340 ; and General Admission is at P725.

An entrance fee of P500 allows one to experience two night of concerts—on December 30 and 31 —at the Philippine Stadium where top local artists and bands will perform, as well as the Kabayan Ko, Kapatid Ko concert at the Philippine Arena on December 30, and the various carnival attractions and bazaar experience in the Ciudad de Victoria grounds.

Tickets for the December 31 Chris Brown concert also serve as an access-pass to all other concert venues. This is the first concert event to be held at the Philippine Arena which was declared by Guinness World Records as the largest mixed-use theater in the world.

The 2015 Philippine Countdown signals the start of such yearly countdown events at the Philippine Arena. Organizers said that for those who would want to be part of this event, tickets are still available at Ticketnet. It can be purchased online at www.ticketnet.com.ph or at Tickenet outlets. Eagle News Service

said a statement from the organizers.

INC General Auditor Minister Glicerio B. Santos Jr. said the INC has allowed the use of the Philippine Arena and of Ciudad de Victoria for this historic event where hundreds of thousands are expected to attend.

Santos said the 2015 Philippine Countdown at the Ciudad de Victoria will make the Philippines stand out as a New Year countdown venue. This is because the Philippine countdown at the Philippine Arena will be comparable to those held in various landmarks in the world such as the Times Square in New York, the Sydney Harbor Bridge, and the London Eye in England, he stressed.

Proceeds of the two-day concert event will be used for projects intended for the benefit of victims of Typhoon Ruby, he said, and for other charity projects of the FYM Foundation.

This will be the most complete and wholesome family experience, according to the Philippine Countdown organizers.

Hundreds of booths and tiangge stalls will be set up in the Arena grounds in support of smalland medium-sized enterprises. Also set up in the Ciudad de Victoria grounds are these attractions for kids and the whole family: a grand carousel, and a dozen more carnival rides, circus and acrobatic acts, performances by magicians, and eight inflatable playgrounds.

All this will be open starting afternoon of December 30.

Aside from the concerts at the Philippine Stadium and at the Philippine Arena, there will also be a concert outside the arena, starting 9 p.m. of December 31 where the New Year countdown will be staged.

This will be hosted by broadcaster Noli de Castro.

On December 30, top OPM artists like Shamrock, Hajii Alejandro, The Voice Kids, Rey Valera, Asin, Coritha, Juan Rodrigo, FBC Rebirth, and Willie Nepomuceno will be performing at the stadium, kicking off the two-day New Year concert extravaganza in Ciudad de Victoria.

Also on that day, inside the Philippine Arena, a

JAN 1 THURSDAY

JAN 2 FRIDAY

JAN 3 SATURDAY

3-DAY EXTENDED FORECAST

JAN 1 THURSDAY

JAN 2 FRIDAY

JAN 3 SATURDAY

24 – 29°C

24 – 30°C

24 – 31°C

METRO MANILA

23– 31°C

23 – 31°C

23 – 30°C

METRO CEBU

TUGUEGARAO

21 – 28°C

20 – 28°C

20 – 28°C

TACLOBAN

23 – 30°C

22 – 30°C

22 – 31°C

20 – 31°C

CAGAYAN DE ORO

24 – 30°C

24 –31°C

24 – 32°C

METRO DAVAO

25 – 31°C

25 – 31°C

25 – 31°C

25 – 31°C

(AS OF DECEMBER 30, 5:00 PM)

LAOAG

BAGUIO

LAOAG CITY 20 – 30°C

TUGUEGARAO CITY 20 – 28°C

SBMA/ CLARK

BAGUIO CITY 13 – 25°C SBMA/CLARK 22 – 30°C TAGAYTAY CITY 20 – 29°C

METRO MANILA 23 – 30°C

TAGAYTAY

20 – 31°C

14 – 24°C

22 – 30°C

20 – 29°C

20 – 30°C

14 – 25°C

23 – 30°C

19 – 29°C

14 – 24°C

22 – 31°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

PUERTO PRINCESA CITY 24 – 29°C

ILOILO/ BACOLOD 24 – 30°C

TACLOBAN CITY 23 – 29°C

METRO CEBU 24 – 30°C

ZAMBOANGA CITY 25 – 31°C

PUERTO PRINCESA

ILOILO/ BACOLOD CAGAYAN DE ORO CITY 24 – 30°C METRO DAVAO 24 – 31°C

23 – 30°C

23 – 29°C

SUNRISE

SUNSET

MOONSET

MOONRISE

6:20 AM

5:37 PM

1:39 PM

1:39 AM

23 – 30°C

HALF MOON FULL MOON

24 – 30°C

25 – 31°C

10:50 AM

JAN 05 0.24 METER 2:31 AM 12:53 PM Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms Cloudy skies with rain showers and/or thunderstorms.

24 – 30°C

24 – 31°C

25 – 31°C

Light rains

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

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

www.panahon.tv

SABAH CELEBES SEA

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

DEC 29

24 – 29°C

25 – 32°C

19 – 29°C

LEGAZPI CITY 24 – 30°C

LEGAZPI

ZAMBOANGA

25 – 32°C

@PanahonTV

6:39 PM

0.84 METER

Partly cloudy to at times cloudy with rainshowers Rains with gusty winds

news@businessmirror.com.ph

News

BusinessMirror Editor: Dionisio L. Pelayo • Wednesday, December 31, 2014 A3

Military personnel warned against firing guns, using illegal firecrackers

By Rene Acosta

T

HE military reminded soldiers on Tuesday to celebrate the New Year safely with their loved ones by refraining from illegally firing their guns or even lighting banned firecrackers.

The reminder was issued by Armed Forces Chief of Staff Gen. Gregorio Pio Catapang Jr. as he warned all military personnel of sanctions associated with celebratory gunfire and illegal firecrackers to welcome the New Year.

“The act of setting off huge and illegal firecrackers and shooting guns in the air pose a great risk for injury and even death to innocent people,” Catapang said.

“We support the government’s drive to stop the malpractice of firing guns and igniting illegal firecrackers to celebrate the New Year. This is part of our commitment to public safety, quality of life and vitality in communities where we serve,” he added.

Catapang said that for many years, the military has focused its attention in prevention and education about the dangers of indiscriminate firing and even the use of banned firecrackers through the commanders’ counseling activities.

Lt. Col. Harold Cabunoc, Armed Forces Public Affairs Office chief, said the indiscriminate firing of guns by soldiers is punishable under the Articles of War and may result in demotion or dismissal from military service depending on the gravity of the offense as determined by the court martial.

Cabunoc said any militar y personnel who will be caught discharging a firearm must be reported to the police or to the nearest military detachment.

“We would also like to remind soldiers and civilians alike that a falling bullet can reach the speed of 300 to 700 feet per second, and that it only takes a bullet speed of 200 feet per second to penetrate the human skull.

De Lima won’t spare other penal colonies in drive vs illegal activities

J

By Joel R. San Juan

USTICE Secretary Leila M. de Lima on Tuesday said the ongoing campaign against illegal activities in the New Bilibid Prisons (NBP) will be extended to cover other penal colonies in the country.

De Lima said she has received information that anomalies are also happening in other penal colonies such as Iwahig in Palawan and Sablayan in Mindoro.

“I received reports that there are also illegal activities in the penal farms and colonies, although in a lesser scale,” she revealed.

She said drug convicts in the

said penal colonies are reportedly continuing their illegal activities without being detected because there are fewer guards assigned in the said facilities.

“We learned that they continued to transact their [illegal drug] businesses there since there are fewer jail guards,” she explained.

De Lima cited the case of drug

Flying still safer than driving

T

after another inspection yielded more contrabands.

Relieved from their posts were Danilo Dador, head of the maximum security compound; Lucio Guevarra, commander of guards of NBP maximum security compound; Ricardo Sespene, head of NBP special patrol unit and Roberto Mandap, head of the inmates visitation services unit.

Their relief came following reports that thaty four starlets were able to get inside the maximum security compound to provide “entertainment” to some rich inmates in violation of prison rules.

Earlier this month, de Lima ordered the relief of Supt. Robert Rabo, NBP head, and his deputy, Supt. Celso Bravo; and Davao Penal Colony head Denario Tesoro owing to the illegal drugs and other contrabands seized in earlier raids.

Lawmaker asks Roxas: Where are the new fire trucks?

A

By Recto Mercene

HE recent air tragedy involving an Airbus A320 of Air Asia, which remains the focus of intense search in the seas between Indonesia and Kalimantan in Borneo, has again raised the question of whether flying is safer than driving.

The missing AirAsia Flight QZ-8501 is likely to be at the bottom of the sea, said the head of Indonesia’s search-and-rescue agency.

This year three riveting incidents involving Asian airlines had caught the attention of the airplane riding public. Aside from QZ-8501, the two others were from Malaysian Airlines— MH370 and MH314.

The three air crashes had a total of 684 fatalities.

Avelino Zapanta, president and CEO of Seair International and the country’s foremost authority on aviation, said: “It is said flying is the safest form of transport because statistically, there has been much fewer fatalities per million passengers compared to other forms of transportation.”

“Also the airworthiness of the aircraft pass through rigid scrutiny not only of local regulators but international agencies as well like the Federal Aviation Administration [FAA]; European Aviation Safety Agency [Easa], International Civil Aviation Organization [Icao], National Transportation Safety Board [NTSB] of the US, etc.... There are numerous system redundancies in an aircraft than in other modes of transport,” Zapanta, author of 100 Years of Philippine Aviation, 1909-2009, added.

Yet, despite such assurances from the authorities, there is that persistent fear that flying is intrinsically dangerous. New about crashes and near accidents reinforce our dread about the danger associated with flying in large commercial jumbo jet airliners.

How safe are they, really?

The NTSB summary of accidents from 2004 to 2013 worldwide, involving commercial jets shows a total of 3,848 fatalities for scheduled flights.

“In absolute numbers, driving is more dangerous, with more than 5 million accidents compared to 20 accidents in flying,” the NTSB said.

“A more direct comparison per 100 million miles pits driving’s 1.27 fatalities and 80 injuries against flying’s lack of deaths and almost no injuries, which again shows air travel to be safer.”

The National Safety Council calculated the odds of dying in a motor vehicle accident to be 1 in 98 for a lifetime. For air and space transport (including general aviation), the odds were 1 in 7,178 for a lifetime.

Statistically speaking, flying is far safer than driving. Riding in a plane buffeted by turbulence may feel more dangerous because risk perception is based on more than facts, according to David Ropeik, risk communication instructor at Harvard School of Public Health.

He said being in control of a car affords a more personal feeling of safety.

“On the other hand, plane crashes are catastrophic, killing more people at once and grabbing our attention that makes us more sensitive to them,” he added.

“Car crashes happen every day and spread the loss over time, making their combined effects less noticeable.”

convict Roland Ho to prove that there were indeed anomalies happening in the penal colonies.

It can be recalled that Ho was transferred to Sablayan and was killed in the market outside the prison.

“They were able to go out of the penal farms so we decided to bring them back to NBP. And since they continued with their illegal activities, we conducted the raids,” she added.

The “cleansing” of the penal colonies, she said, is part of the directive of the President to reform the Bureau of Corrections and clean it up to pave the way for the modernization program.

“He has given me free hand to undertake certain things and make recommendations if his approval is needed,” she said.

On Monday she ordered the relief of four more NBP officials

Security printing deal

Communications Secretary Herminio B. Coloma Jr. witnesses the signing of the joint-venture agreement between APO Production Unit Inc., a government-controlled corporation attached to Presidential Communications Operations Office, by its Executive Vice President and General Manager Jaime Aldaba (left) and United Graphic Expression Corp. (UGEC) President Henry Cureg. APO is a recognized government printer in charge of printing highly secured and accountable forms for government agencies while Ugec is one of the country’s top commercial printers.

Lapid to run for mayor of Angeles City

By Ashley Manabat

LAPID: “That’s why I was able to pass a law, the free legal assistance for the poor. That is why now there is equal justice for both rich and poor alike.”

Correspondent

A

NGELES CITY—The cat is out of the bag!

Sen. Lito Lapid debunked all speculations on Monday and declared that he will run for mayor of this chartered city in the 2016 elections against incumbent Mayor Edgardo Pamintuan.

“We called this meeting to confirm that I will run for mayor of Angeles,” Lapid said in the vernacular at a restaurant here to the deafening applause from mostly former barangay officials, kagawad and at least seven incumbent barangay chairmen from Santa Teresita, Ninoy Aquino, Cutud, Salapungan, Santo Domingo, Santa Trinidad and San Jose.

The senator also debunked accusations that he is not from the city.

He said he took up residence in the city as early as 2004 when he bought a house at the L&S Subdivision in Barangay Santo Domingo.

“Memangutang cu pu careng menungkulan a taga queti nung ninu ila, metung man pu careng capitan canitang 2004 ala man taga Angeles [I asked around and found out that not one of the (barangay) captains in 2004 were from Angeles],” Lapid said. “Surian yu la ngan pu [Why don’t you examine them,?]” he asked as he pointed his

Cops arrest 2 MNLF ‘extortionists’

seatmates at the presidential table— City Councilor Max Sangil who hails from Porac and former Congressman and Mayor Carmelo “Tarzan” Lazatin who he said is from the nearby city of San Fernando “but his heart is in Angeles.”

“I am also like them,” he said in Capampangan.

Lapid said he served Pampanga for 12 years—first as vice governor for three years and then as governor for three terms.

He said at the height of the Mount Pinatubo eruption in 1991, he would often go to this city and help his friend who was then a barangay captain.

“Sinuyu nacu pu labing adwang banwa mabilug a Capampangan puwera ing Angeles [I served for 12 years the whole of Pampanga but not Angeles],” Lapid said.

“And for another 12 years I served

T

WO alleged extortionists claiming membership in a Moro National Liberation Front (MNLF) group were arrested by policemen on Saturday in Maco, Compostela Valley.

Chief Insp. Francis Sonza, Davao del Norte provincial officer of the

the whole Philippines as senator of the Republic,” he added.

“And now I am asking myself should I retire? At least I did not taste defeat. I am still undefeated.

The one in Makati is nothing because I just followed orders from my boss and just like what President Aquino said, ‘kayo ang boss ko’, I am also declaring that you are all my bosses,” Lapid said to deafening applause.

“I called this meeting to [announce my] run for mayor of Angeles,” he added.

“They say that Lito Lapid is uneducated, he does not how to write, he cannot speak English. But I got myself a good lawyer,” Lapid said pointing to Wily Rivera, who was also seated at the presidential table.

“That’s why I was able to pass a law, the free legal assistance for the poor. That is why now there is equal justice for both rich and poor alike,” Lapid said.

“Andya rugung dati yang magtindang yelu qñg Porac…[Even if he was just a mere ice vendor in Porac],” he added to another applause.

“They asked me to consider running for governor of Pampanga since I was also a former governor. But then I realized the incumbent governor is doing a good job, why should I contest that?” he continued.

Criminal Investigation and Detection Group (CIDG), identified the arrested suspects as Rodino Cabrasan, 49, and his brother Alex Cabrasan, 39, both of Purok 2, Barangay Bucana, Maco.

The two were arrested on the strength of a warrant of arrest issued

PARTY-LIST lawmaker on Tuesday urged the Department of the Interior and Local Government (DILG) to make public the list of cities and towns that received the 117 new fire trucks, as the Bureau of Fire Protection (BFP) goes on alert for fires ahead of New Year revelry.

House Deputy Minority Leader Arnel Ty said at least 117 new fire trucks were distributed to several cities and towns under the modernization program of the BFP. “Congress gave the DILG a total of P1 billion for the acquisition of the 117 fire trucks. People are starting to ask where these new [firefighting] vehicles are. They haven’t seen the trucks responding to fire emergencies,” said Ty of the LPG Marketers’ Association (LPGMA) party-list group.

Congress previously authorized the funds for the DILG to procure 34 units of 1,000-gallon fire trucks, 18 units of 2,500-gallon fire trucks, and 65 units of 500-gallon mini pumpers for the BFP, according to Ty, a Filipino-Chinese Volunteer Fire Brigade member.

“When there are blazes, people

don’t see the new trucks in action as first responders. What they see right away are the trucks of the Filipino-Chinese Volunteer Fire Brigades,” Ty said.

Ty’s statement came shortly after the BFP went on high alert for accidental fires that may be caused by the mishandling of firecrackers during the New Year revelry.

“Which localities obtained the new fire trucks? The public deserves to know, and [Interior Secretary Manuel Roxas II ought to satisfy their curiosity,” Ty added.

In Metro Manila, LPG-MA has donated a total of 50 fire trucks, mostly to Filipino-Chinese Volunteer Fire Brigades.

In Cagayan Valley, the group has contributed 18 new fire trucks to an even number of towns.

Earlier, Party-list Rep. Terry Ridon of Kabataan earlier questioned Item 5 in the P22.4-billion Supplemental National Budget for 2015, which gives the DILG another P199.1 million for the acquisition of 33 new fire trucks for the Autonomous Region in Muslim Mindanao.

Jovee Marie N. dela Cruz

Cops get year-end windfall

T

HE National Police said on Tuesday that it has already completed the release of some P750 million that represent the Performance Enhancement Incentive (PEI) of its 150,000 personnel.

Director Rolando Puruganan, the force’s director for Comptrollership, in his report to Deputy Director General Leonardo A. Espina, National Police officer in charge, said the individual PEI of P5,000 was credited to the individual automatic teller machine (ATM) accounts of policemen, and was incorporated into the salary and allowances for the period December 15 to 30 that they received before Christmas.

Puruganan also told Espina that the Performance-Based Bonus (PBB) of police personnel will be released on January 6, 2015 through their individual ATM payroll accounts.

Some policemen who are not yet enrolled in the ATM payroll system will receive their PBB in the form of

continuous form checks drawn from the National Police account with the Land Bank of the Philippines.

The Department of Budget and Management earlier released funds totaling P1.3 billion to pay for the 2013 PBB of policemen.

However, Puruganan explained that the release of the individual PBB was delayed owing to the series of bank holidays during the closing months of the year. It was also affected by the tedious process of evaluation and review in order to ensure that the right amount goes to the right person as determined by the Individual Performance Rating of every policeman.

In November the National Police Directorate for Comptrollership released P1.8 billion to pay for the year-end bonus of personnel through the the force’s Finance Service and subsequently credited to the individual ATM payroll accounts of active-duty uniformed and nonuniformed personnel. Rene Acosta

by Judge Virginia Tahano-Ang of the Regional Trial Court in Tagum.

Taken from their possession were a caliber .45 pistol, a homemade rifle and rounds of ammunitions.

Sonza said the CIDG was informed of the alleged extortion activities of a group claiming to

belong to the MNLF when several businessmen reported the matter to the police last month.

He said that while the two have been subjected to inquest proceedings, investigators are still verifying the suspects’ claim that they belong to the MNLF. Cha Monforte

News

BusinessMirror

A4 Wednesday, December 31, 2014

SSS opens 3 more foreign offices

By David Cagahastian

T

HE foreign offices of the Social Security System (SSS) has already increased to 20 with the recent opening of three foreign offices in Toronto, Tokyo and Muscat to provide better access to services for overseas Filipino workers (OFWs).

“We will continue to expand our foreign operations to provide our members abroad with immediate access to social security. Next year we will be deploying additional personnel in our offices overseas to assist our members,” said Judy Frances A. See, SSS senior vice president and International Operations Division head.

She said the SSS will continue to conduct outreach activities for Filipino communities abroad.

The monthly contribution to SSS is based on the monthly earnings declared at the time of registration.

OFW members pay the full 11 percent of the Monthly Salary Credit (MSC), the minimum of which is pegged at P5,000, or a monthly contribution of P550. Contributions can be paid through accredited collection partners abroad.

OFWs are advised to remit contributions based on the maximum MSC of P16,000 since SSS benefits are computed based on the number of contributions paid and the member’s MSC. SSS offices abroad accept applications for membership, benefits and loans, and performs data capture for the Unified Multipurpose ID. The SSS offices in Asia are in Hong Kong, Macau, Singapore, Taipei, Brunei Darussalam and Kuala Lumpur. Those in the Middle East are in Riyadh, Jeddah and Al Khobar in Saudi Arabia; Abu Dhabi and Dubai in the United Arab Emirates; and in Kuwait, Qatar and Bahrain.

SSS offices in Europe are in London, and in Rome and Milan in Italy.

House to begin MRT, LRT fare-hike probe on January 8

T

By Jovee Marie N. dela Cruz

HE House Committee on Transportation is set to investigate in January, in aid of legislation, the proposed fare increases of the Light Rail Transit (LRT) Lines 1 and 2 and the Metro Rail Transit (MRT) 3 fare increase, a party-list lawmaker said on Tuesday.

The fare increases take effect on January 4, 2015.

Rep. Neri Colmenares of Bayan Muna said the investigation will be conducted on January 8 after he and Rep. Carlos Isagani Zarate of Bayan Muna file House Resolution 111, which seeks the probe. Colmenares, senior deputy minority leader, said he hopes administration allies will not use the lower-chamber investigation to justify the fare hike.

“I just hope that [committee] Chairman Cesar Sarmiento [of Catanduanes], being an official of the Liberal Party, would not [allow the probe] to affect his analysis and judgment of the MRT/LRT fare-hike issue. I also hope the hearing would not just be used by administration allies as a venue to justify the fare hike,” Colmenares said.

The fare adjustments, which the Department of Transportation and Communications (DOTC) announced, will take effect on January 4 and marks the first such hike in

ticket prices for Metro Manila’s train riders in a decade. The base fare for LRT Lines 1 and 2 and the MRT will be P11 and an additional P1 will be charged for every kilometer from the station of origin.

This means that a single journey ticket on the LRT from the Baclaran station to Roosevelt station will cost P30 from the present fare of P20.

Passengers who use stored-value tickets for end-to-end trips on the LRT 1 and 2 will get a P1 discount.

For MRT 3 single-journey and stored-value tickets from the Taft station to the North Avenue station or vice-versa, the journey will cost P28 from the current P15.

Colmenares and Zarate said they will ask the Supreme Court to issue a temporary restraining order against the implementation of the fare increase.

They said they will file the petition after the DOTC implements the fare hike on January 5.

Nationalist People’s Coalition

Rep. Rodolfo Albano III of Isabela, member for the Minority Bloc of the House Committee on Transportation, said the DOTC and the Aquino administration do not have justifiable reasons to arbitrarily increase MRT and LRT fares, especially in light of the fact that the MRT operations have been marred by so many glitches and accidents that endanger the lives of the riding public.

“The subsidies being claimed by government are in reality the people’s money. These subsidies represent a way of the government’s giving back to the people what they truly deserve: an affordable and efficient mass-transit system,” Albano said.

The value of the subsidies that governments all over the world provides mass-transit commuters is not because public transportation is an essential public service, but an effective economic mechanism to promote efficiency and economic activity that ultimately redounds to the benefit to the national economy.

He said the government has allocated enough funds for the repair and rehabilitation of the LRT and MRT. Under the P22.4-billion proposed supplemental budget for 2014, Albano said Congress has allotted P1.2 billion and P727.6 million for the rehabilitation of MRT 3 and LRT Lines 1 and 2, respectively.

He said Congress also realigned P9 billion of the P53.9 billion intended for the MRT-3 buyout in the P2.6-trillion national budget for 2015 for the railway system’s repair and rehabilitation. Several House leaders expressed support to the fare adjustments, saying the increase would enable the government to save P2 billion in annual subsidies or 17 percent of the P12

PNP completes release of ₧750 million for personnel

By Rene Acosta

T

HE Philippine National Police (PNP) said on Tuesday it has completed the release of P750 million that represent the Performance Enhancement Incentive (PEI) of its 150,000 personnel.

Rolando Puruganan, PNP director for Comptrollership, in his report to PNP Officer in Charge Deputy Director General Leonardo Espina, said the individual PEI of P5,000 was credited to the individual automated

teller machine accounts of PNP personnel, and was incorporated into the salary and allowances for the period December 15 to 30 that the policemen received before Christmas.

Puruganan also told Espina that the Performance-Based Bonus (PBB) of PNP personnel will be released on January 6, 2015, through their individual ATM payroll accounts. Some personnel who are not yet enrolled in the ATM payroll system will receive their PBB in the form of Continuous Form Checks (CFC) drawn from the

PHL to host German biz chambers in Asia Pacific

By Catherine E. Pillas

T

HE Philippines will play host to top-ranking officials of German business chambers in the Asia-Pacific region this month as the German business community gears up for the integration of Asean into a single economy next year.

“It’s going to be during the third week of January when the executive directors of the German Chambers of Commerce in the Asia Pacific region will be here.

It’s a yearly meeting to strategize their approach in the Asia Pacific, given the integration. We’re preparing for that,” said Brenda Baylon, business development manager of the German-Philippine Chamber of Commerce and Industry Inc. (GPCCI) in a phone interview.

GPCCI President Bodo Goerlich, in a previous statement, said the meeting aims to establish closer cooperation between and among the German chambers in the region, especially in light of their strategy to increase trade in the Asia Pacific in the coming year.

The GPCCI head mentioned the

news@businessmirror.com.ph

highlights of German-Philippine business relations this year, citing the visit of Trade Secretary Gregory L. Domingo to Germany in September, as a boost toward enhancing relations.

The previous announcements of German manufacturer of power tools, Andreas Stihl AG & Co. and automotive parts manufacturer Continental AG, to invest in the Philippines are among the year’s highlights as well. According to data from the Philippine Statistics Authority, as of the first semester of 2014, the country’s external trade in goods reached $61.264 billion, of which the European Union accounted for 11.4 percent, or $7.004 billion.

Among the member-countries of the European Union, Germany stood as the Philippines’s top trading partner with total trade of $2.51 billion or over one-third of the country’s total trade with EU. Exports to Germany, as of the first semester of 2014, amounted to $1.31 billion, while imports were valued at $1.199 billion, resulting to a balance of trade surplus of $112.43 million.

PNP account with the Land Bank of the Philippines. The Department of Budget and Management (DBM) earlier released funds totaling P1.3 billion to pay for the 2013 PBB of the PNP. However, Puruganan said the release of the individual PBB was delayed due to the series of bank holidays during the closing months of the year.

It was also affected by the tedious process of evaluation and review in order to ensure that the right amount goes to the right person as

determined by the Individual Performance Rating of every PNP member.

In November, the PNP Directorate for Comptrollership released P1.8 billion to pay for the yearend bonus of PNP personnel through the PNP Finance Service and subsequently credited to the individual ATM payroll accounts of active-duty PNP uniformed and non-uniformed personnel. The year-end bonus represents 50 percent of the 13th-month pay and other cash benefits mandated by law for all government workers.

Oil companies increase price of gas

By Lenie Lectura

A

FTER a series of price rollbacks in local gas stations, oil companies on Tuesday implemented a hike in kerosene and gasoline prices, reflecting movements in the international petroleum market.

Petron Corp., Pilipinas Shell and Seaoil announced on Monday night they will jack up the price of kerosene by P0.10 per liter and gasoline by P0.30 per liter. Diesel prices remain the same.

Other oil firms are expected to follow suit. Oil has fallen 46 percent this year, the biggest annual drop since 2008, as Opec resisted supply cuts to defend its market share even as production in the US climbed to the highest level in three decades amid a shale boom.

An oversupply in the crude market; a slump in economies, particularly in China and in Europe; and the growing utilization of US shale oil are to be blamed for the drop. In the country, oil prices have gone down at least 26 times since the start of the year for gasoline, equivalent to around P18.30 per liter, while diesel

prices have gone down 31 times, equivalent to around P18.85 per liter, data from the Department of Energy (DOE) showed.

Crude prices, said the DOE, have dipped to as low as $65 per barrel. The Institute of International Finance (IFC), in its December 10 report, said the overall net impact of falling oil prices on the global outlook is clearly positive.

“In our assessment, the price drop is largely a consequence of surging oil supply, together with a strategic decision by Opec not to cut back its own output.

The result is a shift in purchasing power from producers to consumers that should provide a significant boost to global demand at a time of excess capacity,” the IFC said.

“The price drop also provides more space for supportive monetary policies in a number of economies, as well as cost of energy subsidies.

Assuming that the price decline is largely sustained, we estimate the net effect will be to raise global GDP by roughly 1/2 percent over a two year period,” the global association of financial institutions said.

billion that it allots each year to subsidize the LRT/MRT train systems.

Meanwhile, a leftist youth group accused Transportation Secretary Joseph Emilio A. Abaya and the lot at his agency of being “a bunch of ‘barefaced liars,’” after the Cabinet official purportedly admitted that the additional revenues from the fare increase at the country’s railway systems will be used “to pay for onerous deals with private firms.”

Anakbayan National Chairman Vencer A. Crisostomo said his group will exhaust all means to derail the fare hike at the LRT and MRT Systems, if only to “protect the public from corruption.”

“The Aquino government and Liberal Party President Emilio Abaya are barefaced liars. They have been deceiving the public to justify the train-fare hikes.

In fact, they are implementing the fare hikes to fund the onerous and corrupt deals with private firms which have been getting super profits and are set to gain more from these hikes,” he said in a statement.

Crisostomo was referring to the transportation chief’s admission that the estimated P1-billion additional revenues that will be collected from the fare hike will go to the escrow account used to pay for the government’s dues to the MRT Corp. (MRTC), the owner of the line’s assets.

“Kung ano ang maidadagdag dito sa pamasahe, pupunta sa escrow. Doon sa P600 million na [kulang] monthly, ibabawas kung ano ’yung naipon for the month. Kung ano ang difference, ’yun ang ilalabas na pera ng gobyerno para sa month na ’yon,” Abaya was quoted in news reports as saying.

With Lorenz Marasigan

CTA: Foreign firms must prove services performed outside of PHL to be exempt from VAT, fees

T

HE Court of Tax Appeals (CTA) has ruled that for a nonresident foreign corporation to be exempt from withholding tax on management service fees and value-added tax (VAT) for services, it must be proven that the services were performed abroad and not in the Philippines.

In the case of Visayas Geothermal Power Co. versus the Commissioner of Internal Revenue, the CTA denied the petition to void a tax-deficiency assessment because the petitioner failed to prove that the payments it made to a nonresident foreign corporation are indeed exempt from VAT and final withholding tax on income.

In 2006 the Bureau of Internal Revenue (BIR) issued a preliminary-assessment notice against the petitioner for its failure to withhold final income taxes and final VAT on the management service fees it paid to MidAmerican Energy Holdings Co. (formerly CalEnergy Co. Inc.). The argument of the petitioner was that the services rendered by MidAmerican Energy Holdings were performed outside of the Philippines, and thus, not subject to income tax in the Philippines.

This is because as a nonresident foreign corporation, MidAmerican Energy Holdings is liable only for income derived from the Philippines.

But the CTA said that while the above rule is correct, the petitioner was not able to prove that the services rendered by MidAmerican Energy Holdings were indeed performed outside the Philippines.

The petitioner, among others, presented in evidence the service agreement between itself and MidAmerican Energy Holdings, which the CTA found wanting as proof that the services to be rendered are indeed to be performed outside of the Philippines. David Cagahastian

DAR legal case monitoring system assures efficient agrarian justice delivery

By Jonathan L. Mayuga

A

SYSTEM to ensure the efficient and effective delivery of agrarian justice while implementing the Comprehensive Agrarian Reform Program (CARP) has been put in place. The legal case monitoring system (LCMS) was created and implemented through the initiative and effort of the current administration’s legal department.

Its development was outsourced to Ideyatech Inc. the same software company that developed the legal systems of the Office of the Solicitor General, Court of Tax Appeals, Quezon City Hall of Justice and Small Claims Court.

“The LCMS, the first of its kind and complexity in the country, is a major milestone for the Department of Agrarian Reforms [DAR]’s Legal Sector,” former Agrarian Reform Undersecretary Anthony Paruñgao said.

“With this system, we have fundamentally changed the way we work, the way we measure our accomplishments, and even the way we prepare our budgets,” Paruñgao said.

The LCMS is a Web-based internal system for recording and monitoring various kinds of agrarian cases at the provincial, regional and central offices of the DAR, including those lodged at the Adjudicators’ offices, as well as cases where DAR lawyers represent and defend clients before judicial and quasijudicial bodies, Paruñgao said.

It also enabled DAR management a means of monitoring and tracking down the movement of specific or high-profile cases and a near realtime report of the status of cases

anywhere in the country, while generating summaries and detailed reports that can be accessed anywhere by authorized DAR officials. Starting January 2014, the Legal Sector no longer required written accomplishment reports to the Central Office, as all accomplishments were generated through the system.

Paruñgao was proud to note that one of the major features of LCMS is that it is multiuse and accessible over the Internet. It utilizes barcode technology to ensure easy tracking and integrity of documents. The system has a built-in word processor where drafts can be written and reviewed by legal officers without the need to print each and every draft prior to finalization.

In describing the LCMS, Paruñgao said “it is therefore not just a comprehensive database; it is also a management and planning tool, a personnel-performance indicator, and a new [Web-based] work-sharing or work-coaching environment, all rolled into one.”

He said the LCMS is an internal management tool. “Information that might be detrimental to the integrity of case decisions must be protected The LCMS is just one of the systems introduced by the present administration to upgrade the delivery of agrarian justice.

Other improvements made during the time of Paruñgao as head of the DAR legal sector included the revisions of rules and procedures making the adjudication system more efficient and transparent, and a customized set of classes for a special Mandatory Continuining Legal Education exclusively for DAR lawyers, among DAR lawyers.

News BusinessMirror

news@businessmirror.com.ph

Wednesday, December 31, 2014 A5

Aquino sees more credit-rating upgrades for PHL in 2015

P

By Butch Fernandez

resident Aquino remains upbeat about getting further credit-rating upgrades in order to boost his administration’s drive to lure more investments for the Philippines in 2015.

“A promising future beckons for us all as we near the fifth year of daang matuwid and open yet another chapter in our journey toward the fulfillment of our collective aspirations,” Mr. Aquino said on Tuesday in an advance copy of his New Year’s message sent to Palace reporters.

President Aquino acknowledged that the previous year was a “fortunate time” for Filipinos, recalling that 2013 saw the country securing investment-grade status from the three most prominent credit-rating

agencies in the world.

“In 2014 we sustained this upward trajectory as, last May, Standard & Poor’s gave us another ratings upgrade, followed by Moody’s this November,” he added.

Mr. Aquino affirmed that these successive upgrades made the Philippines a more attractive destination for investments and tourists, both of which, he said, have seen significant increases that helped create more jobs and further stimulated the economy.

“These gains have provided us

the wherewithal to fund vital measures like the Expanded Conditional Cash Transfer Program, which now covers beneficiaries with children up to 18 years old, and meets our backlog in books, chairs and classrooms,” he said.

The President reported that it, likewise, enable the government to expand initiatives like the Tech-Voc Education and Training and Work for Scholarship Programs.

He said these ensured “that our people can maximize the opportunities made available at this critical juncture in our history when we reach our demographic sweet spot and realize the Asean Economic Community by 2015.”

Mr. Aquino also cited the signing of the Comprehensive Agreement on the Bangsamoro in March, saying it means that genuine, lasting peace in Mindanao is finally at hand, opening the floodgates for tourism and investments to the island.

“We expect development to further hasten once the Bangsam-

oro basic law is passed,” President Aquino added.

At the same time, the President reported strides made in terms of disaster preparedness, noting that both the national and local governments were seen “performing better this year.”

“We saw this in action when Mayon Volcano erupted and Typhoon Ruby came to our shores,” Mr. Aquino said. “Learning from past experiences, we prevented a drastic loss of lives and property, earning the praise and admiration of the international community.”

But he specifically credited “our front-liners, first-responders, volunteers, and partners from the private sector, whose contributions, preparations, and response to these calamities made this achievement possible.”

“Indeed, by putting our trust in each other, by doing our share, and by remaining steadfast on the straight and righteous path, we have ushered in a new and transformed Philippines,” Mr. Aquino said.

House seeks tighter firecracker control

By Jovee Marie N. dela Cruz

T

he House Committee on Public Order and Safety has recently created a technical working group (TWG) that will consolidate three pending proposals seeking to tighten the regulation, sale, distribution, and use of firecrackers and other pyrotechnic devices and providing stiffer penalties for violators.

Unega Rep. Jeffrey P. Ferrer of Negros Occidental, the committee chairman, said the TWG, tasked to consolidate House Bills (HB) 786, 1409 and 4434, will be headed by Nationalist People’s Coalition (NPC) Rep. Leopoldo N. Bataoil of Pangasinan.

These bills seek to address the yearly concern brought about by firecrackers.

During a recent committee hearing, representatives of the Bureau of Fire Protection of the Department of the Interior and Local Government and the Bureau of Product Standards of the Department of Trade and Industry expressed support for the passage of the bills.

However, representatives of the Philippine Pyrotechnic Manufacturers and Dealers Association Inc. and the Philippine Fireworks Association agreed that the existing law, Republic Act (RA) 7183, otherwise known as the “An Act Regulating the Sale, Manufacture, Distribution and use of Firecrackers and other Pyrotechnic Devices,” and its implementing rules and regulations are sufficient enough to regulate the sale, manufacture, distribution and use of firecrackers and pyrotechnic devices. What is needed, they said, is a strict implementation and enforcement of RA 7183.

Meanwhile, Lakas Rep. Gloria Macapagal-Arroyo of Pampanga, author of HB 786, or the proposed “Firecracker Use Regulation Act of 2013,” said that while the government’s campaign against the use of firecrackers seems to be working as firecracker injuries are decreasing, the fact remains that year after year, hundreds upon hundreds fall victim to firecrackers.

“The tragedy is that innocent children are the most vulnerable to these irresponsible acts in the name of merry making. These senseless injuries, deaths and destruction of property can be prevented by regulating the use of firecrackers,” Arroyo

briefs

Villar bats for ‘vegetable gardening’ to meet nutritional needs Sen. Cynthia Villar encouraged every Filipino on Tuesday to go into “vegetable gardening” to meet their nutritional needs amid the high prices of vegetables.

“There is a need to be equipped

Railways received ₧8-B+ subsidy in 2012, PSA says

By Cai U. Ordinario

F

ilipino taxpayers provided over P8 billion to subsidize the three railways that only cater to the transportation needs of Metro Manila residents in 2012.

The final results of the 2012 Census of Philippine Business and Industry-Transport and Storage released by the Philippine Statistics Authority (PSA) showed that Filipinos shelled out a total of P8.36 billion in financial assistance and/or tax incentives.

This accounted for 99.78 percent of the total P8.38 billion worth of subsidies extended to the transportation and storage sector.

“Transport via railways received the highest subsidy amounting to P8.4 billion. Two other industries, sea and coastal water transport and warehousing and storage received subsidies worth P13.5 million and P4.5 million, respectively,” PSA added.

The PSA explained that subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.

Despite the amount of the subsidies provided by the national government to railways, the sector only booked P13.05 billion in total income in 2012, among the lowest in the Transport and Storage industries.

The PSA also said passenger air transport was the top earner in the sector and booked P131.99 billion out of the total income of the sector amounting to P373.12 billion in 2012.

The second top earner were firms engaged in support activities for transportation with a total income

of P124.15 billion.

The lowest earner was inland water transport, which only earned P998.05 million in 2012.

Due to the high government subsidy to the rail sector, the Aquino administration recently approved the long-standing proposal to increase Metro Rail Transit Line 3 (MRT 3), Light Rail Transit Lines 1 and 2 (LRT 1 and 2) fares and the Philippine National Railways.

Reports stated that the Department of Transportation and Communications will implement a P1-perkilometer fare hike at the MRT and LRT lines starting January 4.

This decision to increase fares will place the maximum fare at LRT 1 to P30 for single-journey tickets and P29 for stored-value card users. The current rate is P20.

The maximum fare at the LRT 2 will increase to P25 for single-journey tickets and P24 for stored-value tickets. The current maximum rate is P15.

Meanwhile, the maximum rate at the MRT 3 will increase to P28 from the current P15.

The plan to increase railway fares have been proposed as far back as 2010 in a study released by state-owned think tank Philippine Institute for Development Studies.

The study stated that the government paid an average subsidy of P12.50 per passenger at the MRT 3 in 2006.

The study stated that in 2006. around 135 million passengers rode the MRT 3. If they paid P60 on the average, then farebox revenue could have covered all of the project cost in that year.

Seniang leaves 5 dead in Leyte as blackout hits 8 provinces A worker in a firecracker factory in Bocaue, Bulacan, fill firework tubes with gunpowder amid the government’s renewed antifirecracker-use campaign to curb injuries on the New Year’s Eve revelry. Kevin dela Cruz

said in her explanatory note.

HB 786 prohibits the use of firecrackers by a nonprofessional or without the supervision of a professional, which carries a penalty of P50,000 to P100,000 fine and imprisonment of one month and one day to one year.

It also prohibits the use of firecrackers outside the firecracker area, which carries a penalty of P10,000 to P50,000 fine and imprisonment of six months and one day to one year.

Likewise, it prohibits the use of firecrackers in any organized activity outside of a designated firecracker area without clearance, which carries a penalty of P50,000 to P200,000 fine and imprisonment of six months and one day to one year. The bill also prohibits anyone from inducing, directing, instructing or allowing a minor to use a firecracker which carries a penalty of P50,000 to P200,000 fine and imprisonment of six months and one day to one year.

Meanwhile, HB 1409, authored by Nacionalista Party Rep. Harlin Abayon of Northern Samar, seeks to amend Section 11 of RA 7183 so that any person who manufactures, sells, distributes or uses firecrackers and other pyrotechnic with proper nutrition to avert sickness, and this can be achieved by eating the right kind of food, which includes vegetable,” said Villar, chairman of the Senate Committee on Agriculture and Food. ”Eating vegetables should be a habit. It should form part of our daily meals. We all know the substances that vegetables can give our body. They are strong defense against all kinds of illnesses,” she added. PNA

devices in violation of the provisions of RA 7183 shall be punished by P500,000 to P1-million fine and imprisonment of six to 12 years in addition to the cancellation of his or her license and business permit and the confiscation by the government of his or her inventory stock. The present penalty is P20,000 to P30,000 fine and imprisonment of six years to one year, or both, at the discretion of the court.

HB 4434, or the “Firecracker Regulation Act of 2014” authored by NPC Rep. Sherwin T. Gatchalian of Valenzuela, seeks to amend RA 7183 to provide stricter regulations in an effort to protect the people from traditions that are inimical to public health and safety and to prevent firework-related fires and injuries.

“Every year, we endure from the pollutants caused by the use of firecrackers to welcome the New Year and we see news flashes of countless injuries, especially to the hapless children. Until when should we allow this cycle of perils to our health and environment?”

Gatchalian said.

According to the Department of Health, there were a total of 1,018 firework-related injuries at the start of

DOTC allots P18.6M for Leyte airport-consultancy requirements The Department of Transportation and Communications (DOTC) has earmarked P18.6 million to bankroll the consultancy requirements of the project to develop a new Eastern Visayas aviation hub in Leyte.

The agency is now requesting consultants to express their interest for the New Leyte Airport

2014. The figure is 73 cases, or 8 percent higher than the five-year (2008 to 2012) average, and 87 cases, or 9 percent, higher than the same period in 2013.

The bill provides that manufacturers, dealers and wholesale distributors of firecrackers and other pyrotechnic devices shall provide the names and addresses of their accredited stores, outlets, distributors or resellers to the Philippine National Police (PNP)Firearms and Explosives Office as a prerequisite for the approval of the manufacturer’s or dealer’s license permit. The stores, outlets, dealers, etc., shall also apply for a permit to sell from the PNP, and will adopt a “one store, one permit” policy. Violators shall be penalized with P100,000 to P500,000 fine, or imprisonment of six months to three years, or both, at the discretion of the court.

Those who violate the limitation on purchases and the prohibition on the sale of firecrackers to minors shall be punished with a P100,000 fine and the revocation of license. Parents and guardians who knowingly instigate the purchase of fireworks or pyrotechnic devices by their minor child or ward shall be fined P10,000.

Development Project’s consultancy services deal.

“The DOTC now calls for the submission of eligibility documents for the conduct of the feasibility study and master plan (with site selection study), environmental impactassessment study, including issuance of environmental compliance certificate, and tender documents preparation for design and build project for the New Leyte Airport Development Project,” a bid bulletin read. Lorenz Marasigan

I

ncessant rains spawned by storm Seniang has triggered landslides in Leyte, killing at least five people on Tuesday, a local civil defense official said, adding one survivor has also been unearthed.

Blanche Gobenciong, Office of Civil Defense-Region 8 director, said the storm, which was moving toward Palawan at the speed of 11 kilometers per hour (kph), also spawned flooding in some areas in the region, based on their initial monitoring.

According to Gobenciong, an early morning landslide hit Barangay Cabuynan in Tanauan, Southern Leyte, amid a heavy downpour on Tuesday, initially killing five people, while another survivor was also rescued. She did not identify the fatalities as her office is still collating its report, which would be sent to Undersecretary Alexander Pama, who is the head of both the Office of Civil Defense and the National Risk Reduction and Management Council.

“We could not yet state the exact time of the landslide, but the casualty, we have five and one rescued. What we could not yet give is their identities, but the casualties are confirmed because the bodies are already recovered. The Philippine Army is helping in the search and retrieval operations,” Gobenciong said.

The local civil defense official said the landslide could have occurred after 2 a.m. on Tuesday, the time that she left Tanauan.

The landslide has affected a key highway in Tanauan, which prompted officials to shut it down to traffic as debris are being cleared, although an alternate road has been designated by the Department of Public Works and Highways.

Gobenciong said that as of 12 noon, a landslide also occurred at Barangay Kulisingan in Sugod, Southern Leyte, and in at least three more areas also in the province.

“Our reports are still initial and the storm has affected only a number of areas so far, but in terms of flooding, landslides, we may be seeing a bigger area that is affected,” she said. “We are also receiving reports of casualties through text messages, but we have to confirm and verify all those information,” she added.

Gobenciong said Seniang has displaced families in one barangay in Ormoc City and in four barangays in San Francisco in Southern Leyte.

As of Tuesday, weather forecasters said the storm was over Negros Oriental as it moves toward the Panay Gulf with a maximum sustained winds of 65 kph near the center and a gustiness of up to 80 kph.

Powerless

Eight provinces have been disconnected to the grid as Tropical Storm Seniang brought strong winds to the Visayas and Mindanao regions on Monday, according to the National Grid Corp. of the Philippines (NGCP).

Based on its 9 a.m. update on Tuesday, the NGCP said Biliran, Leyte, Bohol, Central Negros, Negros Oriental, Agusan del Sur, Surigao del Norte, Surigao del Sur, and one commercial establishment in Dumaguete had unscheduled power outages since Monday due to Seniang.

In Leyte, the towns of Macarthur, Abuyog, Mahaplag, Mayorga, and Javier still have blackouts.

Biliran province and other areas in Leyte had power interruptions since early Tuesday morning.

In Bohol, the towns of Loay, Panglao, Garcia, Hernandez, Ubay, Alicia, Guindulman, Trinidad, San Miguel, Carmen, Dagohoy and Candijay had been disconnected to the grid since Monday afternoon.

Negros Oriental and Central Negros, on the other hand, had power outages in portions. Bacolod City and the the towns of Bago, San Enrique, Valladolid, Dumaguete, Bacong, Dauin, Siaton and La Carlota had brownouts early Tuesday morning. The NGCP did not specify which areas in Agusan del Sur had brownouts due to Seniang.

For Surigao del Norte, the municipalities of Tubod, Mainit, San Francisco, Malimono, Sison, Placer, Claver, Bacuag, Gigaquit, Cantilan, Carrascal, Madrid and whole Siargao Island, along with Surigao City remain without electricity since Monday morning. With PNA

Opinion BusinessMirror

A6 Wednesday, December 31, 2014

Editor: Alvin I. Dacanay

editorial Restoring ties with Cuba

U

NITED States President Barack Obama’s recent announcement of efforts to normalize relations between his country and Cuba should provide the Philippines with the opportunity to resume active diplomatic ties with the Caribbean island-nation. These ties have been fluctuating in the last 50 years—partially closing in 1961, reopening in 1975 and then closing again in 2012. They now need to be stabilized and normalized.

We have been closely linked with Cuba historically, because, like the Philippines, it was a Spanish colony. Recall that, in 1896, the Spanish authorities in the Philippines allowed Dr. Jose P. Rizal, who was suspected of supporting the Philippine Revolution, to travel to Cuba to help in controlling yellow fever in that country. Rizal did not reach his destination, because he was arrested on the way and brought back to the Philippines to face trial for treason.

In the 1950s the Cubans rose up in armed revolution against the government of the dictator Fulgencio Batista. The revolution, under the leadership of Fidel Castro, was successful, and he and his fellow revolutionaries established a socialist government in its wake.

The socialist government then launched a health and education program of a depth and extent never before imagined as possible in Cuba, eradicating ailments among the Cubans, wiping out illiteracy among adults, and bringing education to children and young people. It was a program of urban and rural upliftment that, since then, has served as a model for new socialist-oriented governments everywhere to emulate and replicate.

Not everyone was happy with the turn of events in Cuba, certainly not the US Central Intelligence Agency, which plotted night and day to overthrow the new Cuban government. Through sympathizers, it actually launched what’s now known as the Bay of Pigs Invasion in 1961, only to be quickly made a laughingstock because the invaders were repulsed by the Cuban defenders with little effort.

Through the ebb and flow of the Cold War, many Filipinos, principally those in academe, never wavered in their admiration of the Cuban people and their revolution. Our government, despite its meandering foreign policy, continued to hold the Cubans and their government in high esteem.

What will this diplomatic thaw bring to Cuba and the US? Without question, it will bring enormous benefits to both—incomes from expanded investments and trade, as US capitalists pour capital in various sectors of the Cuban economy, and make money; and the Cuban people fill up new employment and other income-generating opportunities, and improve their standard of living.

But herein lurks a peril for Cuba. Will Cuban socialist institutions aimed at maintaining some semblance of income equality among the Cuban people withstand the onslaught of capitalism that generate not just high incomes, but severely unequal ones? Will this new arrangement increase prosperity and poverty in Cuba? Cuban President Raul Castro has stated clearly that his country will never abandon its socialist way of life. The next few years will put that declaration to a severe test.

Let us wish the Cuban people all success in this new adventure to achieve prosperity with income equality. Let us restore our relations with Cuba in all fields of human endeavor, as soon as possible.

BusinessMirror A broader look at today’s business Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief

T. Anthony C. Cabangon Jun B. Vallecera

Associate Editor News Editor City & Assignments Editor Special Projects Editor

Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Max V. de Leon

Online Editor

Ruben M. Cruz Jr.

Research Bureau Head Creative Director Chief Photographer Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Circulation Manager

Dennis D. Estopace Eduardo A. Davad Nonilon G. Reyes Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan

A future and a hope with SSS Susie G. Bugante

All About Social Security

T

ODAY is the last day of the year and, like most people around the world, Filipinos are busy preparing to welcome 2015 with a bang. New Year’s Eve fare often includes something sticky, like glutinous rice cake (biko), and 12 round fruits; and traditions handed down to us by our Chinese forebears, including the practice of lighting firecrackers and other pyrotechnic items. Aside from the preparations for the media noche, or New Year’s Eve dinner, it is also the time for most of us to reflect and thank God for what we have accomplished in the year that passed, and a time to pray and plan for the year to come.

The revelry and enthusiasm that characterize New Year’s Eve celebrations in the Philippines are indicative of the Filipinos’ resilience and optimism. No matter how bad the year that passed was, many look forward to the new year with the hope that things would be better.

This hopeful attitude is confirmed by the results of a nationwide survey

This era of low-cost oil is different

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

HOM

www.businessmirror.com.ph

REGIONAL OFFICES

n DXQR -93dot5 HOME RADIO CAGAYAN DE ORO STATION MANAGER: JENNIFER B. YTING E-MAIL ADDRESS: homecdo@yahoo.com ADDRESS: Archbishop Hayes corner Velez Street, Cagayan de Oro City CONTACT NOs.: (088) 227-2104/ 857-9350/ 0922-811-3997 n DYQC -106dot7 HOME RADIO CEBU STATION MANAGER: JULIUS A. MANAHAN E-MAIL ADDRESS: homecebu@yahoo.com ADDRESS: Ground Floor, Fortune Life Building, Jones Avenue, Cebu City CONTACT NOs.: (032) 253-2973/ 234-4252/ 416-1067/ 0922-811-3994 n DWQT -89dot3 HOME RADIO DAGUPAN STATION MANAGER: RAMIR C. DE GUZMAN E-MAIL ADDRESS: homeradiodagupan@ yahoo.com ADDRESS: 4th Floor, Orchids Hotel Building, Rizal Street, Dagupan City

CONTACT NOs.: (075) 522-8209/ 515-4663/ 0922-811-4001 n DXQM – 98dot7 HOME RADIO DAVAO STATION MANAGER: RYAN C. RODRIGUEZ E-MAIL ADDRESS: home98dot7@gmail.com ADDRESS: 4D 3rd Floor, ATU Plaza, Duterte Street, Davao City CONTACT NOs.: (082) 222-2337/ 221-7537/ 0922-811-3996 n DXQS -98dot3 HOME RADIO GENERAL SANTOS STATION MANAGER: AILYM C. MATANGUIHAN E-MAIL ADDRESS: homegensan@yahoo.com ADDRESS: Ground Floor, Dimalanta Building, Pioneer Avenue, General Santos City CONTACT NOs.: (083) 301-2769/ 553-6137/ 0922-811-3998 n DYQN -89dot5 HOME RADIO ILOILO STATION MANAGER: MARIPAZ U. SONG E-MAIL ADDRESS: homeiloilo@yahoo.com ADDRESS: 3rd Floor, Eternal Plans Building,

Ortiz Street, Iloilo City CONTACT NOs.: (033) 337-2698/ 508-8102/ 0922-811-3995 n DWQA -92dot3 HOME RADIO LEGAZPI STATION MANAGER: CLETO PIO D. ABOGADO E-MAIL ADDRESS: homeradiolegazpi@ yahoo.com ADDRESS: 4th Floor, Fortune Building, Rizal St., Brgy. Pigcale, Legazpi City CONTACT NOs.: (052) 480-4858/ 820-6880/ 0922-811-3992 n DWQJ -95dot1 HOME RADIO NAGA STATION MANAGER: JUSTO MANUEL P. VILLANTE JR. EMAIL ADDRESS: homenaga@yahoo.com ADDRESS: Eternal Garden Compound, Balatas Road, Naga City CONTACT NOs.: (054) 473-3818/ 811-2951/ 0922-811-3993

Printed by BROWN MADONNA Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila

showing that 93 percent of Filipinos look forward to 2015 with hope, instead of fear.

The Social Security System (SSS), as an institution, also looks forward to the coming year with the great expectation that it will do even better than what it had accomplished in 2014, which is a banner year for the pension fund. As of end-October,

the SSS disbursed more than P85.6 billion in social-security and employees’ compensation benefits to more than 2.6 million pensioners and beneficiaries out of the more than P100 billion that it collected from members’ contributions. It earned P37.3 billion in net revenues, 13.4 percent higher than in 2013 for the same period. Its membership grew by 3.7 percent to over 31.8 million. To improve service delivery and give the public greater access to its services, the SSS officially opened eight new branches as of end-October, 10 service offices nationwide and two overseas representative offices.

For 2015 the SSS hopes to surpass its accomplishments in 2014 as it continues to work strongly in pooling its resources, while taking cognizance of the economic and sociopolitical developments in the country. Its major strategic objectives include the improved compliance of employers and members; improved service delivery; better benefits for members; effective fund management; and a more

Mohamed A. El-Erian

BLOOMBERG VIEW

H

AVING seen numerous fluctuations in the energy markets over the years, many analysts and policymakers have a natural tendency to “look through” the latest drop in oil prices—that is, to treat the impact as transient, rather than as signaling long-term changes.

I suspect that view would be a mistake this time around. The world is experiencing much more than a temporary dip in oil prices. Because of a change in the supply model, this is a fundamental shift that will likely have long-lasting effects.

Through the years, markets have been conditioned to expect members of the Organization of Petroleum Exporting Countries (Opec) to cut their production in response to a sharp drop in prices. Saudi Arabia played the role of the “swing producer”. As the biggest producer, it was willing and able to absorb a disproportionately large part of the output cut in order to stabilize prices and provide

the basis for a rebound.

It did so directly by adhering to its lowered individual output ceiling, and indirectly by turning a blind eye when other Opec members cheated by exceeding their ceilings to generate higher earnings. In the few periods when Saudi Arabia didn’t initially play this role, such as in the late 1990s, oil prices collapsed to levels that threatened the commercial viability of even the lower-cost Opec producers.

Yet, in serving as the swing producer through the years, Saudi Arabia learned an important lesson: It isn’t easy to regain market share.

This difficulty is greatly amplified

now that significant nontraditional energy supplies, including shale, are hitting the market.

That simple calculation is behind Saudi Arabia’s insistence on not reducing production this time. Without such action by the No. 1 producer, and with no one else either able or willing to be the swing producer, Opec is no longer in a position to lower its production, even though oil prices have collapsed by about 50 percent since June.

This change in the production model means it is up to natural market forces to restore pricing power to the oil markets. Low prices will lead to the gradual shutdown of what are now unprofitable oil fields and alternative-energy supplies, and they will discourage investment in new capacity. At the same time, they will encourage higher demand for oil.

This will all happen, but it will take a while. In the meantime, as oil prices settle at significantly lower levels, economic behavior will change beyond the “one-off” impact.

As costs fall for manufacturing and a wide range of other activities affected by energy costs, and as consumers spend less on gas and more on other things, many oil-importing

responsive organization.

With its policymaking body— the Social Security Commission— and the SSS management working hand in hand and fully committed to achieve these objectives, SSS members can, indeed, look forward to the new year with hope for a better future.

As we wonder what is in store for us in 2015, I leave these words of assurance from Jeremiah 29:11 of the Good Book: “‘For I know the plans I have for you,’ declares the Lord, ‘plans to prosper you and not to harm you, plans to give you hope and a future.’”

A happy and prosperous New Year to everyone!

For more information about the SSS and its programs, call its 24-hour call center at (632) 920-6446 to 55 from Monday to Friday, send an e-mail to member_relations@sss.gov.ph or visit its website at www.sss.gov.ph.

Susie G. Bugante is the vice president for public affairs and special events of the SSS. Send comments about this column to susiebugante. bmirror@ gmail.com.

nations will see a rise in gross domestic product. And this higher economic activity is likely to boost investment in new plants, equipment and labor, financed by corporate cash sitting on the sidelines.

The likelihood of longer-lasting changes is intensified when we include the geopolitical ripple effects.

In addition to creating huge domestic problems for some producers, such as Russia and Venezuela, the lower prices reduce these nations’ real and perceived influence on other countries.

Some believe that Cuba, for example, agreed to the recent deal with the United States because its leaders worried that they would be getting less support from Russia and Venezuela.

And for countries such as Iraq and Nigeria, low oil prices can fuel more unrest and fragmentation, and increase the domestic and regional disruptive impact of extremist groups.

Few expected oil prices to fall so far, especially in such a short time.

The surprises won’t stop here. A prolonged period of low oil prices is also likely to result in durable economic, political and geopolitical changes that, not so long ago, would have been considered remote, if not unthinkable.

Opinion BusinessMirror

opinion@businessmirror.com.ph

In Haiti, only the face of power has changed

Say goodbye to ‘Made in China’

By Amy Wilentz

Adam Minter

Los Angeles Times (TNS)

A

LMOST five years since the devastating earthquake that rocked Haiti, the country remains adrift, and in recent weeks, even more than usual. In town after town, as well as in the capital, Port-au-Prince, large, angry crowds have gathered regularly to express their dissatisfaction with Michel Martelly, Haiti’s president. United Nations peacekeeping forces have fired on these crowds.

Confronted with the unrest, Martelly did what officials often do in such situations: He appointed a commission, stuffed with ancient politicians and apple-polishers, to recommend actions. In Haiti, not unlike other places, such commissions generally have one purpose: to advise officials to do exactly what they wanted to do all along. This time was no different. When the commission returned, it advised Martelly to jettison his prime minister, Laurent Lamothe, as well as the heads of the Supreme Court and the provisional electoral council—all the people the president was already prepared to throw under the bus.

The prime minister is gone, though with no formal letter of resignation, and has reportedly been replaced by an interim figure. The other two officials will also presumably decamp, but that won’t solve Haiti’s larger crisis. If legislative elections are not held before January 12, the legislature will be dissolved and Martelly will begin to rule by decree.

François “Papa Doc” Duvalier, the notorious and bloody-minded Haitian strongman, would almost certainly be amused to see Martelly, a former pop singer, going through such contortions to create a dictatorship. Papa Doc did things more simply and directly, but always with a wary eye on the United States, which saw him as a bulwark against communism in the Caribbean, no matter how cruel his regime became, and never repudiated him.

Like Duvalier, Martelly seems less focused on improving the fortunes of his countrymen than he is on retaining power, at least to the end of his official term, something that has proved far more complicated than it was in the Duvalier days. Martelly’s Haiti is more transparent to the world than Papa Doc’s ever was, largely because of social media and Internet communications.

The US is still meddling in Haiti’s business, still tugging on the strings of Haitian politics. Since Papa Doc’s son, the dictator John-Claude “Baby Doc” Duvalier, was almost ousted in 1986, with a big nudge from the US, Washington has been particularly concerned about elections in Haiti.

For American officials, regular balloting, honest or not, has signified stability, a prerequisite for foreign investment—the prescription that US economic doctors always propose for poor countries.

But merely holding elections, especially corrupt ones from which the most popular party has recently been excluded, has done little to address Haiti’s problems. Since the end of the dictatorship in 1986, there have been abortive elections, monitored elections, several coups d’état and even a couple of peaceful elections.

Little has changed, however.

In the country’s most recent baroque election, Martelly emerged as the victor, but his mandate has always been in question. Haunted by his own iffy “selection”—the word Haitians use for a manipulated election—Martelly soon came to a bickering impasse with the legislature that has led to the current crisis.

Meanwhile, for most Haitians, life remains desperate. The cost of living has risen sharply, and the majority live in dire poverty. The official unemployment rate is an astounding 39.5 percent, though most observers believe that it is actually much higher.

Yet, in this moment of crisis, Martelly has done little to change Haiti. His Twitter account in recent days shows photos of thousands of kids waiting near his residence to receive Christmas presents from him and the first lady, an old Duvalier Christmas tradition. As Roberson Alphonse wrote recently in Haiti’s main newspaper, “No one is going to claim that our leaders are among the geniuses of the hemisphere.”

Does Martelly deserve to remain in power? Probably not. His presidency has been a series of tragically missed opportunities to take back the reins of power for Haitian ideas for the Haitian people. The worst of his many failures was his wholly inadequate response to the continuing and urgent needs of his country in the aftermath of the earthquake’s devastation. He imitated the previous president, and left the biggest part of the job—rebuilding houses for more than 1 million displaced people—to the good graces of the international community—with less than spectacular results. More than 200,000 Haitians affected by the quake remain in displacement camps.

He also has failed to develop a comprehensive plan to jump-start Haiti’s economy. His main economic initiatives—old tattered ideas from the 1980s and before—were to open up his country to the international mining industry and to establish a huge industrial park anchored by a South Korean garment manufacturer. Both of these endeavors are based in the north, far from the population affected by the earthquake.

Given all this, it’s hard to imagine that those who took to the streets to demand an end to Martelly’s rule will be placated by the firing of a few officials. To gain any scrap of public confidence, he’ll have to show an investment in Haitians that goes deeper than the usual electoral carnival and the appointment of creaking commissions. No doubt, that’s asking more than this president is capable of.

BLOOMBERG VIEW

T

HESE are not the best of times to be one of China’s massive, state-owned steel mills. The domestic economy is slowing, competition is increasing, and there’s widespread disgust and impatience with the smog pouring out of their stacks. In short, their lucrative business model for the past three decades is slowly dying. So what’s a manager of a Chinese steel mill to do?

One surprisingly popular option is to bid China good-bye. In November Hebei Iron & Steel Co. Ltd., a provincial-owned company and China’s largest steelmaker in terms of production, announced that it was moving 5 million tons of its annual production—roughly 11 percent of the 45 million tons of steel it makes every year—to South Africa.

According to press reports, it won’t be going abroad alone. By 2023 Hebei province—China’s most polluted province—plans to export 20 million tons of steel, 30 million tons of cement and 10 million weight boxes of glass capacity (a weight box equals roughly 50 kilograms) to points still not named.

At first glance, the export of excess industrial capacity wouldn’t appear to make much business sense. As Bloomberg News noted two weeks ago, Hebei Iron & Steel’s South African mill will be “equivalent to two-thirds of that nation’s output last year, and a third of continental Africa’s.” In other words,

it’s not clear there’s much demand in these new locales for the Chinese steel giant’s plentiful wares. Why, then, are they doing it?

The officials in Hebei province who oversee the company may have felt they had no choice. First, they undoubtedly faced political pressure to reduce their environmental impact in China: reducing production of steel, cement and glass—all highly polluting industries, especially in developing countries—will have a direct impact on Chinese President Xi Jinping’s pollution goals. (Starting in Hebei will have the added benefit of cleaning up polluted, neighboring Beijing.)

Second, Hebei may simply be at a loss as to how to scale back businesses that they recognize have become massively bloated. Officials in China’s construction-related industries clearly have too much capacity and too little demand. Back in September I attended a speech in Beijing, where a vice president of the China Iron & Steel Association announced that

A7

Chinese steel-production capacity had grown by 200 million tons since the end of 2012 to reach a total of 1.1 billion tons. Much of that capacity isn’t used—China is projected to manufacture about 750 million tons of steel this year.

The effect on domestic Chinese steel prices has been devastating.

Consider the price in Shanghai for steel reinforcing bar (rebar), a key component to building everything from subways to residential high-rises: it has fallen 29 percent this year. That drop was largely precipitated by China’s economic slowdown (and the slowest growth rate since 1990).

So where is the steel going in the absence of a strong domestic market? During the first 11 months of 2014, China exported 86 million tons of steel (almost equal to total United States production in 2013), up 47 percent over the same period in 2013. But the export market is hardly a sustainable bet in the longterm, especially at a time when the US and other importing countries are erecting antidumping duties on Chinese steel.

For a company looking for growth over the long term, and significant capitol to invest, that really only leaves one choice: Go global. In fact, the Chinese government has had a “go global” policy since the 1990s, whereby companies are encouraged to set up subsidiaries abroad for the purpose of extracting raw materials and energy and, to a lesser extent, manufacture. But unlike in the past, when going global had served as a nice long-term goal, today’s “going global”

strategy has taken on urgency.

Indeed, last Wednesday, China’s ruling State Council announced that China would further promote going global by Chinese firms, including with financial assistance.

As described by the State Council, the goals are twofold. First, China is keen to see its flagship firms become internationally competitive—so much so, that it’s obviously willing to encourage even quixotic forays abroad. Second, bankrolling such overseas expansions is a signal that China wants better returns—in the form of profit and political influence—on its considerable foreign-exchange reserves. Though Hebei Iron & Steel announced its South African plans two months before the State Council’s announcement, it’s all but certain that it’s benefiting from the promised subsidies.

Will it work? In the short term, just by virtue of adding so much unneeded capacity to South Africa’s steel trade, Hebei Iron & Steel will likely create a smaller version of the saturated market that’s hurting it in Hebei. But just as China’s domestic steelmakers turned to exports when local markets weren’t generating sufficient demand, Hebei Iron & Steel will likely count on using its newly built modern South African mill to meet demand in emerging Africa.

To be sure, it’s hardly a safe bet. But so long as China appears incapable of fostering a climate in which companies want to invest, it might just be the best one available—and one that other Chinese companies are also likely to soon embrace.

Recession and inflation are expected to ensue, which would put more pressure on Putin to respond to the economic sanctions. How he will respond, however, can’t be calculated. Many Russians, feeling mistreated by the West since their superpower status ended with the Cold War, have welcomed the national ego boost that Putin provides whenever he stands up to critics.

For the sake of world peace, one must hope that Putin will eventually choose pragmatism and drop his theatrics. But it’s never easy to figure out the former KGB colonel.

His power is almost absolute, with dissidents fearing imprisonment and oligarchs bowing to him as they stuff their pockets. It may take another Russian revolution to change the status quo.

Meanwhile, Americans need to stop applauding theatrics, too, and recognize the effectiveness of quiet leadership. That’s not an endorsement of Obama’s tendency to disengage when vigorous and direct appeals and action are needed to overcome domestic partisans and foreign opponents. But it is an endorsement of substance over style.

Amy Wilentz’s most recent book, Farewell, Fred Voodoo: A Letter from Haiti, won the 2013 National Book Critics Circle Award for autobiography.

Putin’s oil change

S

OMETIMES it seems as if America, at 238 years old, is suffering from a sort of midlife crisis that has it questioning its strength and leadership.

Questioning is fine; few are pleased with Washington these days. But it was more troubling to hear some critics suggest that United States President Barack Obama should be more like Russian President Vladimir Putin. Some were apparently impressed by the machismo that Putin displayed in invading Ukraine, even though it was morally wrong.

Much of that sentiment evaporated as casualties mounted in

Wednesday, December 31, 2014

the war that Putin incited to keep Ukraine firmly in Russia’s orbit rather than the European Union’s.

And now Russia is experiencing a financial crisis that should further dispel the notion that Putin is a leader to emulate.

Russia’s fortunes are closely tied to oil. And with the US boosting production, while members of the Organization of the Petroleum Exporting Countries maintain theirs, oil has become cheap. Motorists

For the sake of world peace, one must hope that Russian President Vladimir Putin will eventually choose pragmatism and drop his theatrics.

But it’s never easy to figure out the former KGB colonel. His power is almost absolute, with dissidents fearing imprisonment and oligarchs bowing to him as they stuff their pockets. It may take another Russian revolution to change the status quo. in this country are enjoying lower gasoline prices as a result. Meanwhile, in Russia, less oil revenue, combined with Western sanctions for the Ukraine invasion, are eviscerating the economy.

Russia has taken steps in recent

weeks to prop up its currency, which fell to a record low of 80 rubles to the dollar this month. Although the ruble recovered over the past week amid government intervention, it has lost 39 percent of its value this year, according to Bloomberg.

The Philadelphia Inquirer/TNS

2nd Front Page BusinessMirror

A8 Wednesday, December 31, 2014

Biggest New Year countdown set in Ciudad de Victoria A

ll is now set for the biggest New Year countdown and musical extravaganza in the country at Ciudad de Victoria’s Philippine Arena in Bocaue, Bulacan.

Organizers have already laid out the house rules for the December 30 and 31 concert event, which include a drinking, smoking and gambling ban, within the Ciudad de Victoria’s premises, which is considered a no-smoking zone. Safety preparations were also set for the 2015 Philippine Countdown, with a flurry of musical and fun activities that started on Tuesday, December 30, and will be capped today, December 31, by a spectacular 30-minute fireworks display to light up the night sky in Bocaue, Bulacan, which is dubbed as the fireworks capital of the country.

The 2015 Philippine Countdown in Ciudad de Victoria promises to be one of the best, even in the world, as it showcases two nights of star-studded concerts in the 20,000-seater Philippine Sports Stadium—where some of the most popular local

artists and bands will perform— and the 55,000-seater Philippine Arena—the world’s largest mixeduse theater.

It is here in this world’s largest domed arena where Grammy Award-winning R&B artist Chris Brown and local rock sensation Bamboo topbill the New Year’s Eve concert on December 31.

But there’s more to this than just two nights of star-powered concert. Because there are also carnival and carousel rides, circus acts, bazaars or tiangge, and other fun activities for the kids and the whole family will be set up in the grounds of the 140-hectare Ciudad de Victoria.

“This is the perfect family bonding experience in welcoming the New Year,” said officers of Maligaya Development Corp., which manages the Ciudad de Victoria, including the Philippine Arena and the Philippine Stadium.

“Be part of the biggest New Year countdown and musical extravaganza in the country which the whole family will definitely enjoy,” Continued on A2

www.businessmirror.com.ph

Banks’ outstanding loans sustain twin-digit growth

B

By Bianca Cuaresma

ank lending continued to expand by double digits in November, albeit at a slightly slower pace compared to October.

The Bangko Sentral ng Pilipinas (BSP) said the outstanding loans of commercial banks grew by 20 percent in November, slightly slower than growth averaging 21.1 percent posted the previous month.

The central bank attributed the

sustained bank-lending activities to the continued expansion of loans to the so-called production sectors. These loans account for about four-fifths of the banks’ aggregate loan portfolio.

In particular, loans for produc-

tion activities grew by 18.6 percent in November, slightly slower than the 19.7-percent growth posted in previous months.

The rise in production loans was primarily driven by increased lending to the real estate, renting and business services, which expanded by 16 percent during the period.

W holesale and retail-trade loans reported a 19.2-percent growth; manufacturing by 16.4 percent; and financial intermediation by 25.5 percent.

Lending to electricity, gas and water sectors also grew by 18.1 percent while lending to transporta-

tion, storage and communications grew by 18.6 percent.

“Bank lending to other sectors also rose during the month, except for the public administration and defense, which declined by 0.9 percent,” the central bank further explained.

Meanwhile, the loans for household consumption grew further by 20.7 percent in November this year.

This is faster than the 17.3-percent growth in October.

Household lending expanded across all types of consumer loans —including credit-card loans, auto loans and other ty pe of personal loans.

Phl’s net liability position widened in Q3 on lower GIR Continued from A1

same period, the country’s external financial assets remained basically flat at $139.8 billion, from $139.2 billion three months earlier.

The Philippines’s foreign investment position dipped in the third quarter this year, as the BSP noted

a faster rise of the country’s external financial liabilities compared to the assets during the period.

In particular, the net liability position of the country as of endSeptember this year stood at $51.4 billion, higher than the $50.4-billion net liability at end-June. This

commenced as the total external financial liabilities increased by $1.7 billion, while the assets expanded by only $600 million during the period.

The BSP said that the increase in the net asset position of the country during the period was more than offset by the negative

revaluation adjustments—particularly on the lower GIR—during the period. The positive revaluation on liabilities as domestic assets, consisting mostly of equity securities, increased in value also added to the net liability position of the country during the year.