BusinessMirror February 12, 2015

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TfridayNovember 10 10 No.No. 40 Thursday, February18,12,2014 2015Vol.Vol. 126

P25.00 nationwide | 6 sections 30 pages | 7 days a week

GOV’T BANKING ON APPROVED PPP-, ODA-FUNDED INFRA PROJECTS IN NEGATING THREATS TO GROWTH THIS YEAR

INSIDE

₧1.08-T infra push to drive growth

By Cai U. Ordinario

health&fitness

virgin beach of basilan A prophet like Moses

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EAR God, it is good to know that the exceptional achievements of Alexander the Great, when compared with those of his father, Philip, make us think of the much greater achievements of Jesus Christ vis-à-vis those of Moses, the greater leader, liberator and legislator of the people of Israel. The Israelites/Jews knew about Your promise that You would raise for Your people “a prophet like Moses;” and they lived in the constant expectation of such a great prophet, whom they also identified with the Messiah. Amen.

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

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

Life

DEATH AS MERELY PHYSICAL: ‘MAGKAKABAUNG’ »D3

BusinessMirror

Thursday, February 12, 2015

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Virgin beach of Basilan S    A G. G

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OING on trips can be quite stressful, what with all the booking, preparing, packing and the actual traveling involved. The end result, however, can be nothing short of pure bliss—good food, great company, majestic sceneries, once-in-alifetime experience with nature, and the exposure to other cultures. The escapade is marked best with solitude, or at least an approximation of it, when there are not many crowds swarming the place, drowning out the silence in nonstop mindless chatter, and blurring out its beauty.

Virgin beaches are the best for this kind of getaway, over the more popular and, yes, overrated beaches with hotels and other establishments cramming every available space. For travelers looking for beaches that are world-class in terms of crystal-clear water minus the hassle of dealing with wall-to-wall tourists, the coastal zones of Basilan are definitely the place to go to.

A 30-minute boat ride away from Zamboanga City, which is just an hour and 20 minutes away from Manila, the island of Basilan is one of Mindanao’s hidden treasures. It is the largest and northernmost of the major islands of the Sulu Archipelago, and is located just off the southern coast of the Zamboanga Peninsula. It is, indeed, a paradise waiting to be revealed for the rest of the world to discover.

“Basilan is a sight to behold, with unspoiled beaches that have only recently been getting the attention of both local and foreign travelers,” Princess Sitti Djaliah T. Hataman said.

Among those that have been gaining enthusiastic buzz is Whitebeach, a virgin paradise in the island of Malamawi. It is just 15 minutes away from Isabela City, the capital of Basilan.

It is a showcase of God-given beauty, like the powdery white sand spread over the shore leading to lush patches of coconut trees.

C  D

life

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singapore posts first drop in visitors since global crisis Asean

BusinessMirror Editor: Max V. de Leon • Thursday, February 12, 2015 B3-1

www.businessmirror.com.ph

Health-care opportunities for business Asean-EU Perspective

HENRY J. SCHUMACHER

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HE primary health-care provision has increased in recent decades, health of the Asean population has improved considerably.

According to the World Health Organization, life expectancy grew in all Asean countries between 1990 and 2012. This reflects the huge progress which has been made in little more than a generation to improve health care, advancing from caring for the sick to huge initiatives to prevent illnesses and diseases.

Health spending in Asean countries is expected to double in real terms over the next decade, outstripping gross domestic product (GDP) growth, as governments seek to improve standards and widen the scope of care availability.

There are wide variations within the region. In 2009 Thailand had an estimated average of 2.1 hospital beds per 10,000 people, higher than the 1.8 beds that are available in Malaysia, 1.7 in Vietnam, 0.9 in the Philippines, and 0.6 in Indonesia, but lower than the 2.5 available in Singapore.

Many countries will have to double, treble or even quadruple their annual spending on health care to catch up with the average in fully developed Organization for Economic Cooperation and Development countries. The world’s more developed economies spend an average of 9.9 percent of GDP on health care. With the exception of Vietnam and Cambodia, most Asean countries do not match even half this figure.

Asean leaders have identified health care as a priority sector for the region-wide integration. This means that medical workers will eventually be allowed to work in any member-country via the full implementation of mutual recognition agreements. These will permit doctors, dentists and nurses to work in any member-country. An ongoing liberalization process is also proceeding through Asean’s Framework Agreement on Services and through the latter’s Healthcare Services Sectoral Working Group.

With governments battling to bring their health-care services up (the Philippines promising universal coverage through Philippine Health Insurance Corp.), the private sector is challenged to step into the arena. In the Philippines, private health-care expenditure exceeds spending by the state, which is forecast to rise to $9.9 billion by 2014 (great opportunities for European health service and equipment providers!!).

Some countries, such as the Philippines, Vietnam and Indonesia, have radically decentralized their health-care systems, with the devolution of health services to local governments.

An expanding middle class, particularly among the region’s urban populations, has stimulated demand for private care. The Asean region already records the highest private health-care expenditure of any region in the world with 63 percent of total health expenditures. Nearly half of 2,000 hospitals in the Philippines for example, are privately run.

It is argued that by tapping into private investment, Southeast Asia can not only satisfy the health need of its population but is getting ready to provide services to “medical travelers.” Observers believe that Southeast Asia will increasingly turn to private finance to help deliver essential healthcare improvements. Public-private partnerships seem likely to be used to construct or upgrade facilities to add capacity and improve quality. Southeast Asia is seeing an inflow of funds in search of joint-venture projects.

Expansion of the region’s health-care sector is also being encouraged by the impending Asean Economic Community’s liberalization of services in 2015. This will permit investors in Malaysia, Singapore, Indonesia, Thailand, the Philippines and Brunei Darussalam to hold 70-percent stakes or more in health-care projects in each other’s countries.

Private hospitals across the region are diversifying their services portfolio to offer broader health-care services to improve their competitiveness, in advance of regional liberalization. An integrated Asean market in health care consisting of harmonized standards, registration and evaluation, mutual recognition of qualifications and cross-border cooperation will greatly expand health-care facilities, stimulating growth of a vital sector.

Health tourism combines provision of health services for foreigners with recreational packages for them and their families and for post recovery convalescence. The Philippines aims for 200,000 foreign patients a year to its recently accredited 44 hospitals and health facilities for health tourism.

Indonesia holds ‘Police Chief Idol’ public poll on candidates

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ITH Indonesian President Joko Widodo’s pick for police chief under a corruption cloud, the force’s advisory board is surveying the public on potential candidates for the job.

“Who is your Indonesian Police Chief Idol?” asks a poll on the web site of the National Police Commission, an agency whose mandate includes recommending police appointments to the president. The survey gives five choices and asks people to vote.

It does not list any results on the site.

Among the five is three-star general Budi Gunawan, nominated last month for the job by Widodo, known as Jokowi. Gunawan’s appointment was put on hold on January 16 after he was named a suspect in a corruption investigation by the country’s antigraft agency, the KPK. Replacing his police chief has become a major test for Jokowi,

who took office last year pledging to eradicate corruption and steer clear of vested interests. Faced with a public backlash if he proceeds with Gunawan, and with spiking tensions between the KPK and the police, as the police retaliate by moving against senior KPK officials, Jokowi said in an interview on February 2 he would uphold the rule of law.

Other names on the list include police internal inspector Dwi Priyatno, criminal investigation division chief Budi Waseso, acting police chief Badrodin Haiti, and Putut Eko Bayuseno, who oversees police security matters.

Edi Saputra Hasibuan, a member of the commission, confirmed the candidates were under discussion.

He said the committee’s “strongest preference” was for Dwi Priyatno or Badrodin Haiti.

See “Indonesia,” B3-2

Singapore posts first drop in visitors since global crisis

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INGAPORE reported its first decline in visitor arrivals since the global financial crisis, as a new Chinese law curbed tourists from the mainland while political turmoil in Thailand and aviation disasters damped travel.

for 2015 was set in 2004, before the global financial crisis, and the agency will release an updated projection for this year later, he said.

The number of Indonesian visitors, who made up the biggest group of arrivals last year, fell 2 percent to 3 million as the rupiah depreciated, while travelers from China dropped 24 percent to 1.7 million. Numbers from Malaysia, Australia, Japan and the Philippines also fell.

Visitors to the tropical islandnation fell 3.1 percent to 15.1 million in 2014, the first drop since 2009, the Singapore Tourism Board said.

Tourism receipts totaled S$23.5 billion ($17 billion), unchanged from the previous year.

Weakening tourism adds to risks for Singapore, which unexpectedly eased monetary policy last month

CHINESE arrivals were hurt by the country’s tourism law, regional sociopolitical issues and the plane disasters, the tourism board said. China’s economic growth is slowing, adding to the impact of a new law that clamped down on cut-price shopping tours.

“We do see some headwinds in 2015,” Yeo said. “It’s a mixed picture because we think that there are also

‘Some headwinds’

as growth slowed amid a faltering global economy. The Southeast Asian island, home to an Asian leg of the Formula One series and two casino resorts, had previously targeted 17 million tourist arrivals for 2015.

“We had somewhat stormy weather,” Tourism Board Chief Executive Lionel Yeo told reporters in Singapore on Wednesday. The original target

other things working in our favor.”

Last year was the worst for the aviation industry globally since 2005, discouraging tourists from traveling in the region. Malaysia Airlines lost two Boeing Co. 777 planes: MH370 disappeared on its way to Beijing while flight MH17 was presumed to have been shot down over Ukraine.

In late December an AirAsia Bhd. plane heading to Singapore from Indonesia crashed into the sea. Yeo said the cancellation of some flights by the budget carrier between the two countries would affect short-term travel demand.

“There’s definitely an immediateterm impact but I think if you look at it more broadly, the outbound traffic and the desire to travel in Southeast Asia is going to grow,” he said in an interview after the briefing. “So that will continue to fuel tourism growth in Singapore.” Bloomberg News

JOKOWI MEETS P-NOY

Indonesian President Joko Widodo (left) is escorted for a welcoming ceremony at Malacañan Palace grounds in Manila on Monday. Widodo is on his first state visit to the Philippines and is expected to discuss with President Aquino various regional issues, including territorial conflicts in the South China Sea. Following them are Indonesian First Lady Iriana Widodo (second from right) and Mr. Aquino’s sister Maria Elena “Ballsy” Aquino-Cruz (right). AP

Thai stocks rally even with foreign investors selling

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OT since 2009 has Thailand’s stock market rallied so much at a time when foreign investors are selling.

The benchmark Stock Exchange of Thailand (SET) index climbed 5.6 percent in January as $128 million of withdrawals by international money managers were offset by $551 million of buying from local institutions and the proprietary trading desks of Thai brokers, according to data compiled by Bloomberg. The equity gauge climbed another 2.1 percent last week.

While foreigners are cashing out as valuations climb to the highest levels since at least 2005 and the Federal Reserve (the Fed) moves closer to raising interest rates, domestic investors are buying amid low returns from alternatives such as bank deposits and gold. Thailand’s eightmonth-old military government has spurred optimism among local

money managers after pledging to spend about 3 trillion baht ($92 billion) through 2022 to revive the economy and improve railways, waterways and airports. “Thailand’s growth will accelerate, earnings growth will be revised up and international investors will return,” Adrian Mowat, the chief Asian equity strategist at JPMorgan in Hong Kong, said in an interview on February 3.

The SET index is Southeast Asia’s best-performing equity index since the military seized power last May 22, ending almost seven months of political turmoil between Thailand’s Pheu Thai party and the Democrat Party.

from Thai stocks in January compare with $529 million of net inflows into the Philippines and $19 million into Indonesia, according to data compiled by Bloomberg.

Thai mutual funds, insurers and other institutions bought a net 9.8 billion baht of shares during the month, adding to 71.4 billion baht of purchases in 2014. The proprietary accounts of local brokerages purchased a net 8.26 billion baht, while individual investors sold 13.5 billion baht, according to stock-exchange data compiled by Bloomberg.

The Thai stock market faces risks from the army’s eventual handover of power and the prospect of US interest-rate increases, according to Philip Li, a Hong Kong-based money manager at Value Partners Ltd., which overseas $13 billion.

Prayuth Chan-Ocha, the army chief who became prime minister after the coup, has so far refused to

commit to a time frame for the next general elections, saying a return to democracy must be preceded by the drafting of a new constitution.

Fed bets

TRADERS of futures contracts are betting the Fed will raise its main interest rate by at least 0.5 percentage point by December, according to data compiled by Bloomberg. The SET index sank as much as 25 percent from its May 2013 high amid concern that Fed rate increases would spark capital outflows.

“We still have political uncertainties,” Li said in an interview in Hong Kong on February 4. US rate increases would “definitely cause money outflows. That’s a clear risk we are already seeing.”

The last time the SET gauge rose this much amid foreign selling, in December 2009, the benchmark

Asean

Money flows

THE benchmark SET index fell 0.7 percent at Monday’s close in Bangkok. The gauge trades at 15 times estimated earnings for the next 12 months, compared with the five-year average of 12.3. The foreign outflows

See “Thai,” B3-2

B3-1

harder than ever Sports BusinessMirror

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T, F , 

mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

HARDER THAN EVER P

B D F The Associated Press

EBBLE BEACH, California—Five weeks into the new year, all five winners on the Professional Golfers’ Association (PGA) Tour were among the top 50 in the world.

Jason Day didn’t need numbers to illustrate what is becoming increasingly clear.

“The game is kind of changing,” Day said after winning a four-man playoff at Torrey Pines. “It’s evolving into very young, tall, big, strong-looking guys out here that hit it a mile and have fantastic touch. It’s getting tougher. It’s really tough to win out here.”

That’s easy for him to say with only three PGA Tour wins in eight years. For all his talent, the 27-year-old Australian has been cursed by nagging injuries. His hope is to stay healthy all year and finally achieve, or at least make significant progress, toward his lifelong goal of being No. 1 in the world.

The road to the top, however, is starting to look like a California freeway at rush hour.

Day was 18 when he first started playing on the PGA Tour in 2006, the year that Woods won multiple majors for the second straight year and ended the season by winning his last six PGA Tour events. Woods made it look easy.

The new target is Rory McIlroy, who also can make it look easy. McIlroy already has four majors, one by a record margin (eight shots in the PGA Championship at Kiawah Island) and two in wireto-wire fashion (US Open at Congressional, British Open at Hoylake). McIlroy is going to make Day’s

goal a lot harder to reach.

But it’s everyone around him that will make the road feel even longer.

It’s easy to jump on Day’s bandwagon because he is blessed with enormous power and skill, he believes he has his injuries under control, and is more motivated than ever. Day has six top 10s— and no finish out of the top 20 except for injuryrelated WDs—since the British Open last summer.

But look around.

A week earlier Brooks Koepka was hailed as a rising star for his victory in the Phoenix Open. The 24-year-old Floridian is powerful, the prototype of the modern golfer, and his quiet work ethic figures to take him even further than he already has come.

Don’t forget Jimmy Walker and his nine-shot win at the Sony Open, the largest margin on the PGA Tour in nearly six years. That was Walker’s fourth victory in his last 32 starts in America.

No one has won more during that stretch, and remember, Walker lost a four-shot lead on the back nine at Kapalua and was only two shots out of the playoff at Torrey Pines last week.

The winner at Kapalua? Patrick Reed, who at 24 picked up his fourth career victory.

The list keeps growing.

Koepka was in the mix at the Phoenix Open with Hideki Matsuyama, two-time Masters champion Bubba Watson and hard-charging Jordan Spieth, the 21-year-old Texan who is becoming a fixture among the top 10 in the world. Day was in a playoff at Torrey Pines with Harris English, an athletic 25-year-old from Georgia who already has two PGA Tour wins and has the game that makes other players watch.

“The game is in a good spot, especially with

the younger guys,” Day said. “It’s evolving into a fantastic, powerful sport.”

Most of the players, particularly the younger ones, are a product of the Tiger era. They are better off because they only watched him, they didn’t get beat by him.

“A lot of people of my generation are used to getting our heads bashed in by Tiger,” said Charles Howell III after he missed the playoff at Torrey Pines by one shot. “These guys don’t really seem to be afraid of anything and they come out ready to win.”

Howell mentioned Spieth and Justin Thomas, a 21-year-old rookie who already has played in the final group on weekends at two tournaments this year.

“Where Tiger used to be the motivating factor,” Howell said, “these young kids are now.”

Day is playing the AT&T Pebble Beach National Pro-Am this week, and he can move up two spots to No. 2 with a victory. He’s still miles from McIlroy. A year ago, Day won the Match Play Championship to reach No. 4 and had legitimate ambitions to reach the top of the ranking. Woods was No. 1, though there were early signs that he was fading. Day wound up missing most of the next three months with a thumb injury, and McIlroy soon ruled the world of golf.

Day always thought he would have to beat Woods. Now it’s McIlroy.

“There’s certain players that come along in this world of golf and make winning look so easy, and he’s one of those guys that make winning look very easy,” Day said of McIlroy. “I can tell you right now, it’s not easy. It’s not easy to win.”

And that makes the road to the top even harder.

JASON DAY WAS 18 WHEN HE FIRST STARTED PLAYING ON THE TOUR IN 2006, THE YEAR THAT TIGER WOODS WON MULTIPLE MAJORS FOR THE SECOND STRAIGHT YEAR AND ENDED THE SEASON BY WINNING HIS LAST SIX TOUR EVENTS. WOODS MADE IT LOOK EASY.

JASON DAY says golf is evolving into very young, tall, big, stronglooking guys who hit it a mile and have fantastic touch.

AP

R&A NAMES FIRST FEMALE MEMBERS SAINT ANDREWS, Scotland—The Royal and Ancient (R&A) Golf Club announced its first seven female members on Thursday, including Swedish great Annika Sorenstam and Britain’s Princess Anne.

The club voted in September to end 260 years of male-only exclusivity by voting in favor of inviting women to join. R&A captain George Macgregor described the admittance of seven female honorary members as “an historic day for the club.”

Sorenstam, a 10-time major champion from Sweden, wrote on Twitter: “I am very honored to be one of the lucky ladies.”

Princess Anne, who competed in equestrian for Britain at the 1976 Olympics and is an Inernational Olympic Committee member, is the only female honorary member who

hasn’t played golf competitively.

Anne is the fourth member of the royal family to become an honorary member of the R&A, joining her father Prince Phillip, brother Prince Andrew and the Duke of Kent.

“The Princess Royal enjoys a strong bond with Scotland and has shown great energy and commitment to developing sport through her work in the Olympic movement,” Macgregor said. Golf is returning to the Olympics in Rio de Janeiro next year after an absence of more than a century. Two other British honorary members are Laura Davies, who has won four majors, and Belle Robertson, an amateur great.

Davies, preparing to play in the Australian Ladies Masters on the Gold Coast in Queensland state, said on Wednesday it was a “great honor”

to be included. “Obviously, I’m going to have lots of friends now because if I get a tee time they’ll want to come and play,” Davies said. “It’s just great to have it bestowed on you.”

Davies, with 79 professional wins, was appointed a Dame Commander of the Order of the British Empire in last year’s Queen’s Birthday honors list in Britain. Two US women were admitted: Renee Powell, only the second black player to compete on the Ladies Professional Golf Association Tour, and Louise Suggs, a co-founder and former LPGA president who won 11 majors.

Completing the list is Frenchwoman Lally Segard, who won 14 titles before becoming president of the World Amateur Golf Council, which is now known as the International Golf Federation. AP

SWEDEN’S Annika Sorenstam tees off from the 18th during a Pro Am event ahead of the Women’s British Open.

The Royal and Ancient Golf Club at Saint Andrews has dislosed its first seven female members that includes Sorenstam and Princess Anne.

AP

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AUTO FIRMS BEGIN 2015 WITH 19% SALES HIKE

he government is banking on the P1.08 trillion worth of infrastructure projects that were approved by the Aquino administration to boost growth this year.

In a presentation on Wednesday, Socioeconomic Planning Secretary Arsenio M. Balisacan said this covers 93 infrastructure projects, 58 of them already ongoing.

“There are good prospects this year for infrastructure development.

A total of 93 projects, amounting to P1.08 trillion, or $24.31 billion, have been approved by the Neda [National Economic and Development Authority] Board under the Aquino administration—seven of which are completed projects, 58 are ongoing or under implementation, and 28 are for implementation,” Balisacan said.

The Neda chief said that the majority of the 93 projects, or around 53 projects, will be financed through official development assistance (ODA).

The majority, or 37, of these ODAfunded projects are already ongoing. The total cost of these projects amounts to P318 billion.

Seven ODA projects, worth P17.6 billion, have been completed; and nine projects, worth P47 billion, are for implementation.

Meanwhile, around 24 of the 93 infrastructure projects, worth P628 billion, will be financed through the public-private partnership (PPP) scheme.

Nine of these projects, worth P193.3 billion, are already ongoing, while the remaining 14, worth P435 billion, are for implementation.

Around 17 projects will be funded through local financing.

Twelve projects, worth P44.1 billion, are already ongoing; and five are for implementation, worth P23.9 billion.

“Notably, many PPP projects are already in their rollout stage. The government has already awarded contracts for nine Neda Board-approved PPP projects. We can say that we can expect the other 14 projects to eventually reach this stage, barring any major problem in the process,” Balisacan added.

Continued on A2

PESO exchange rates n US 44.3540

SUGATA said the company’s target for this year is to sell 110,000 units —a mere 4-percent improvement over the whopping 41-percent sales hike in 2014 that resulted in 106,000 units sold.

By Catherine N. Pillas

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pursue bbl A Filipino Muslim displays a message during a rally at the Lower House to call for the passage of the Bangsamoro basic law (BBL) in southern Philippines on Tuesday in Quezon City. The BBL deliberation by the Lower House was postponed indefinitely, following the botched police operation to capture Malaysian terror suspect Zulkifli bin Hir, also known as Marwan, which resulted in the killing of 44 elite police commandos. AP/Bullit Marquez

Will oil prices rise or fall?

Experts can’t say anymore T

he price of oil is on a wild ride, and there is little agreement on where it’s headed.

After falling nearly 60 percent from a peak last June, the price of oil bounced back more than 20 percent as January turned to February.

Then, on Tuesday, it sunk 5 percent, closing just above $50. Oil has fallen or risen by 3 percent or more on 14 of 27 trading days so far this year.

By comparison, the stock market hasn’t had a move that big in more than three years.

Predicting prices is especially tricky now, because the oil market has never quite looked like this. Oil-

price collapses of the past were triggered either by plummeting demand or an increase in supplies. This latest one had both. Production in the US and elsewhere has been rising, while slower economic growth in China and weak economies in Europe and Japan means demand for oil isn’t growing as much as expected.

As recent trading shows, any sign of reduced production inspires traders to buy oil, and every new sign of rising supplies sends prices lower. In a report on Tuesday, the US Energy Department, citing unusual uncertainty, said the price of oil could end up anywhere from

$32 to $108 by December.

“There are many more laps to come on this roller coaster,” said Judith Dwarkin, chief economist at ITG Investment Research.

As oil bounces up and down, so will the price of gasoline, diesel and other fuels. Almost no one expects a return to the very high prices of the last four years, so drivers and shippers will continue to pay lower prices. It’s a question of how much less, and for how long.

Oil will rise

Those expecting a quick and lasting Continued on A8

ocal automotive assemblers started the year on a positive, posting a 19.3-percent growth in sales in January, according to the joint report of the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association (TMA).

With the strong start, local assemblers indicated a rosy outlook for sales this year.

The report said vehicles sold by local car assemblers totaled 18,662 units in January, with the passenger-car segment gaining 35 percent after selling over 7,200 units last month compared to January 2014’s 5,301 units.

The commercial vehicle (CV) segment, on the other hand, enjoyed a 10.8-percent growth, selling 11,462 units in the first month of 2015 compared to 10,346 units in January 2014. All subcategories in the CV segment recorded growth, except light trucks, which saw a 4.8-percent decline.

Toyota Motor Philippines Corp.

(TMPC), the market leader, increased its 45.13-percent market share in January 2014 to 46.67 percent last month, after it sold 8,709 units.

Mitsubishi Motors Philippines Corp. (MMPC) remained in the second spot, with a 17.38-percent market share, followed by Ford Motor Co. Philippines, with a share of 8.77 percent; Isuzu Philippines Corp., 6.57 percent; and Honda Cars Philippines Inc., 6.13 percent.

Industry outlook

Campi President Rommel Gutierrez said the industry is sticking to its initial forecast of a modest See “Auto firms,” A2

n japan 0.3714 n UK 67.6487 n HK 5.7209 n CHINA 7.1062 n singapore 32.7529 n australia 34.4845 n EU 50.1866 n SAUDI arabia 11.8236 Source: BSP (11 February 2015)

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₧1.08-T infra push to drive growth Bangsamoro basic law, will boost economic growth this year.

These upside factors, Balisacan said, may be able to avert the negative effects of external risks, such as the normalization of the US monetary policy; the slowdown in large emerging economies, like China; the weakness in the euro area; and the recession in Japan.

Balisacan said the government is also bracing for the domestic downside risks this year, such as possible disasters, like typhoons and a prolonged El Niño; disruptions in the peace process; infrastructure delays; logistics

Continued from A1

Apart from these infrastructure projects, Balisacan said other sources of economic growth this year include the recovery of the US economy; the country’s hosting of the Asia Pacific Economic Cooperation meeting in 2015; and the implementation of the Asean economic integration by year-end.

He added that other factors, such as the decline in global oil prices, the recent credit-rating upgrades received by the country, and, barring any delays, the passage of the

bottlenecks; and thin power reserves.

“Our goal up to 2016 is to sustain, if not surpass, our growth performance in the past four years and achieve inclusive growth. We are positive that we can take advantage of [these] opportunities,” Balisacan said.

Balisacan also said the government aims to grow the economy by 7 percent to 8 percent this year and in 2016. This growth target will be sufficient in reducing unemployment to 6.6 percent by next year, from 7.1 percent in 2013, and underemployment to 17 percent next year, from 19.3 percent in 2013.

Auto firms. . .

Continued from A1

15-percent growth in 2015 for now, even if the industry managed to achieve a 30-percent sales increase in 2014.

Combined Campi-TM A reached 234,747 units in 2014, and combined with the output of the Association of Vehicle Importers and Distributors, the industry notched a total sales figure of 270,312 units in 2014.

A 15-percent growth among assemblers would only translate to a sales of 272,000 units from the almost 235,000 units they sold last year. This conservative forecast coincides with TMPC’s announcement on the industry’s shift in strategy from an aggressive sales campaign to one that is more focused on after-sales service this year.

Talking to reporters at the launch of the Toyota Alphard in February, TMPC President Michinobu Sugata said the company’s target for this year is to sell 110,000 units—a mere 4-percent improvement over the whopping 41-percent sales hike in 2014 that resulted in 106,000 units sold. Sugata said the company has to focus on after-sales service in 2015, noting that the number of Toyota vehicles needing service has reached over 700,000 vehicles. The company has set a 15-percent growth for the sale of its auto parts.

MMPC, on the other hand, is targeting a 24-percent increase for 2015, or from 50,085 units in 2014 to 62,000 this year, as the company expects total industry demand to reach 310,000 units.

New model introductions and increased capacity at its newly inaugurated plant in Santa Rosa, Laguna, will help attain the goal.

Other top-selling companies have yet to release forecasts for the year.

Total demand for the vehicle models of importers and assemblers may reach 310,000 units this year, according to Mitsubishi Motors.

However, consistent with his earlier pronouncements, Balisacan said the country will not be able to meet its Millennium Development Goal (MDG) target of halving poverty to 16.6 percent this year.

The MDG target is based on the estimate that poverty incidence in the country was pegged at 33 percent in 1991.

The government said it will only be able to reduce income poverty by 19 percent in 2016. In 2012 the government estimated that the poverty incidence slightly declined to 25.2 percent, from 26.3 percent in 2009.

Foreign banks starting to see potential in PHL

‘GLOBAL economic expansion TO MODERATE TO 3.3 PERCENT’ B F has a prolonged downward effect on inflation, NIESR said.

In its report, NIESR expects that the US GDP will expand at 3. 2 percent and 2.9 percent in 2015 and 2016, higher than its previous estimates. The euro area will grow at 1.4 percent and 1.9 percent over the same period; China will grow at 7.0 percent and 6.9 percent; and Japan with a 0.8-percent and 1.1-percent expansion.

NIESR noted: “Continuing tepid expansion in the advanced economies in spite of the fall in oil prices, combined with substantial economic slack and low and declining rates of inflation, points to the continuing importance of promoting growth by boosting demand.”

It suggests “structure reform” to boost demand, as well as supply. Reforming measures include remove impediments to investment, business formation, and job creation and reforms that promote investment by raising expectations of future growth. PNA

ritain’s National Institute of Economic and Social Research (NIESR) on Tuesday announced that the global gross domestic product (GDP) growth in 2015 would be 3.3 percent, slightly lower than 2014’s 3.4 percent, as the economic-expansion engine is cooling down.

The British economic think tank also expects that the world’s GDP will expand at 3.6 percent in 2016.

Both years’ growth expectations are lower than its previous estimation of 3.5 percent and 3.8 percent, data showed.

NIESR said in its quarterly report that growth in the second half of 2014 has generally been weaker than expected, with the exception of the US. And as oil prices have declined by more than a half in the US dollar terms since June 2014, oilexporting countries will suffer and some could face financial stress.

However, the oil-price slump should be beneficial for the world as a whole, though this will depend partly on the extent to which it

By Genivi Factao

oreign banks see the Philippines as an attractive destination for expansion because of the high potential for growth in its formal lending sector.

Deutsche Regis Partners Managing Director for Research Rafael Garchitorena said the Asean is the region that many banks are looking to establish and strengthen their presence in because of its good demographics and strong long-term growth potential.

“With the Asean free trade, there should be lots of opportunities for cross-border finance and investment.

This is particularly true for the Philippines, where foreign companies are looking to invest in either manufacturing capacity or infrastructure projects,” he told the BusinessMirror.

Garchitorena said so-called loandemand drivers remain robust this

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year, and that banks should see strong double-digit loan growth down the line.

“I’m sure, too, that foreign banks can see the potential for increased penetration of formal lending in the Philippines.

Loan-to-GDP [gross domestic product] is still only around 40 percent. Household bank debt-to-GDP is still sub-10 percent. And the financial system is very liquid, with loans-to-deposits at below 70 percent,” he added.

“And despite my concerns that recent regulation could limit return-on -equity [ROE], foreign banks may be willing to accept these ROE levels, given the high growth potential here,” Garchitorena said. He also said that, in the past, one of the key constraints for foreign banks was the inability to foreclose on land, but a new law fixes that somewhat.

The foreign ownership of Philippine banks has been relaxed, with the passage of a new law allowing a 100-percent ownership earlier last year.

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Editor: Dionisio L. Pelayo • Thursday, February 12, 2015 A3

De Lima orders NBI to authenticate SAF carnage video

J

By Joel R. San Juan and Jovee Marie N. dela Cruz

USTICE Secretary Leila de Lima on Wednesday said the National Bureau of Investigation’s Anti-Cybercrime Division will validate the authenticity of the six-minute video showing one of the 44 commandos of the National PoliceSpecial Action Force (SAF) who were killed in Mamasapano, Maguindanao, being shot at close range. Related story on B3.

This, as an emotion-choked National Police officer in charge on Wednesday blasted the Moro Islamic Liberation Front (MILF) for the “overkill” of the 44 SAF commandos.

Speaking during the House of Representatives hearing on the inci-

dent, Deputy Director General Leonardo Espina demanded clear answers from the MILF, saying that even if the SAF did not coordinate with the MILF regarding its operation to arrest terror suspect Zulkifli bin Hir, alias Marwan, in Mamasapano, the

Primary health-care package to benefit 11 million children

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HE Philippine Health Insurance Corp. (PhilHealth) is set to unveil a pioneering package to deliver quality health care for children, especially children living in the lowest socioeconomic strata, on Thursday.

In partnership with Department of Health (DOH), United Nations Children’s Fund (Unicef), World Health Organization and the World Bank, the PhilHealth has designed a primary health-care package to protect infants and children from the leading causes of childhood illnesses and death.

The initial rollout of the primary health-care packages will reach the bottom 40 percent of the population—34 million, of which 11 million are children. The coverage includes health profiling, diagnostic tests and medicines for children under 5. A separate package is currently being tailored for premature newborns.

“Unicef is pleased to work with PhilHealth and the DOH to reach out to children in the poorest and most vulnerable communities so they have access to responsive primary healthcare benefit packages,” Unicef Representative Lotta Sylwander said.

Families living in poverty inadvertently delay seeking health care due to their inability to pay the expenses. This often causes conditions to become worse and to require hospitalization. When cases get complex,

families are compelled to seek more expensive care in private facilities.

“Prohibitive out-of-pocket expenditures for families cause to perpetuate the vicious cycle of ill health and poverty. Offering affordable primary health-care packages can have a significant positive impact on health and economy,” Sylwander added.

From a public health perspective, hospitalization further drains already resource-constrained public hospitals.

Alexander A. Padilla, PhilHealth chief executive officer, said: “The expanded Primary Care Benefit of PhilHealth is a new paradigm in attaining universal health-care coverage. The key in keeping our population healthy by promoting health care and making preventive services affordable. We appreciate Unicef’s assistance in developing the benefit and in orienting our health-care providers.”

The new package, developed under the umbrella program of Tamang Serbisyo para sa Kalusugan ng Pamilya, redefines PhilHealth’s existing Primary Care Benefits Package by expanding the coverage of primary health-care services—designed to address the most common health problems found at the Barangay level. The selected interventions for common health conditions are cost effective and contribute to better health outcomes. Claudeth Mocon-Ciriaco

Pinay nurse MERS-CoV positive–DOH

By Claudeth Mocon-Ciriaco

T

Correspondent

HE Department of Health (DOH) on Wednesday confirmed that a Filipino female nurse tested positive for the Middle East Respiratory Syndrome-Coronavirus (MERS-CoV).

DOH Spokesman Lyndon Lee Suy said the nurse, 32, is now under observation at the Research Institute for Tropical Medicine (RITM) in Muntinlupa City.

The female nurse from Saudi Arabia has been experiencing fever, body pain, cough and difficulty of breathing, which are symptoms of the disease.

“Testing was done on the patient and it yielded positive results. The patient is currently confined in a negative pressure room at RITM. She is still under observation,” Lee Suy said.

The nurse was with her husband when she returned to the Philippines on February 1. She arrived onboard Saudi Airlines Flight 860.

Both did not manifest any symptoms of the disease when they passed

by the scanner at the airport.

However, the following day the nurse sought medical attention after experiencing fever and cough.

Her husband and the rest of the family members are set to undergo medical tests.

Lee Suy also said contract tracing of copassengers is already being conducted, as he also called on other passengers to submit to the testing for their own good and for the sake of their family members.

In September 2014 the DOH reported that two Filipino female nurses arrived in the country last August 29 from Damman, Saudi Arabia, and one of them, who had previous contact with a MERS-CoV patient in a hospital where they are working, turned out positive of the disease.

However, the 37-year-old nurse has turned out negative in the official test results.

MERS-CoV is a strain of coronavirus first identified in 2012 in Saudi Arabia.

As of February 5 the World Health Organization said at least 356 have died from the virus, while there have been 971 confirmed cases.

Moro rebels should not have killed the elite policemen.

“I’m the OIC of National Police, no doubt we are in the peace process…we are peacekeepers. Walang may gusto ng katahimikan kundi kami. We seek for clear answers from the other party of the peace process. Ano ba itong overkill na ito na ginawa niyo sa mga tao ko?” Espina said, adding, “I seek answers for my people so that when my time comes and I have to face them, at least I can say something.”

Espina also said there were videos showing the brutal killing of a SAF commando by alleged members of the MILF and Bangsamoro Islamic Freedom Fighters (BIFF), saying, “some of the killed policemen did not initially suffer any lethal wounds as they were hit in the foot.”

Supt. Rey Ariño, commander of the 55th Special Action Battalion, confirmed that the man in the video was a SAF member.

Moreover, Espina said the medico legal report was contrary to the statement of the MILF that the SAF

commandos were the first to fire. “[Iyong isa], binaril niya sa ulo, buhay na buhay pa ang tao. Iyong isa hinubaran niyo ng bulletproof [vest], binaril sa katawan niya, iyong isa 9-mm [ang tama] sa ulo niya, two fatal shots, hindi pwedeng nag-suicide ang tao. Close range, short firearm iyon,” Espina said.

De Lima ordered NBI Director Virgilio Mendez to authenticate the video, which shows an apparently wounded SAF commando being shot at point-black by unidentified armed men believed to be members of the MILF or the BIFF. The video also shows several other armed men stripping fallen SAF commandos of their belongings while they lie prostrate on the ground.

De Lima believes the video could be “very important evidence” in the criminal cases being prepared by the government in connection with the killing of the SAF’s “Fallen 44.”

The SAF commando in the video has reportedly been identified by his relatives.

“If this [video] is authentic, these are really barbaric acts that we cannot just allow to pass without holding the perpetrators accountable....

It’s an act of cruelty that cannot be justified by any circumstance,” de Lima told reporters.

“Acts of cruelty or acts of atrocity at any setting are condemnable, completely unacceptable and, therefore, must be dealt with severely by our laws, especially penal laws,” she stressed.

De Lima added that there are rules of conduct being followed in times of war or armed conflict.

She explained that the continuous firing at the SAF commando— who was already helpless and incapacitated—by the alleged MILF or BIFF men was a violation of the International Humanitarian Law (IHL) that is also punishable under the Revised Penal Code.

“Even if there is war or armed conflict, there are rules of conduct, and someone helpless should no longer be hurt or, much worse,

killed…. At any setting, an act like that deserved to be condemned and must really meet the full force of our laws,” she added.

But, de Lima stressed that the public should wait for the NBI to authenticate the video.

Director Benjamin Magalong, head of the National Police’s Board of Inquiry, is already set to forward to her office copies of statements and pieces of evidence gathered in the board’s internal investigation.

De Lima earlier hinted that possible charges of multiple murder, homicide and other offenses could be filed against MILF members who figured in the clash with the SAF commandos sent to arrest international terrorist Zulkifli bin Hir, alias Marwan, in Mamasapano town.

She said other possible cases could include serious physical injuries, direct assault, illegal possession of firearms, violation of Republic Act 9851 or crimes under IHL, obstruction of justice and others.

Antitobacco group targets young Filipinos

T

HE country will continue to be Southeast Asia’s second-largest tobacco consumer if young Filipinos are not stopped from smoking, the New Vois Association of the Philippines (Nvap) warned.

“Over the years we have seen how tobacco companies increase their presence in Southeast Asia, as it becomes more difficult for them to market their products in high-income regions. A big part of their strategy is to target the youth as replacement smokers for adults who fall ill and die of this habit,” Nvap President Emer Rojas said.

According to the Global Youth Tobacco Survey (GYTS), more than one in four Filipino children aged 13 to 15 are smokers. Among those in this age group who smoke, 17.5 percent are girls and 28.3 percent are boys.

This does not include children of this age group who are exposed to secondhand smoke, either at home or in public places.

It is estimated that 55 percent of Filipino youth are exposed to secondhand smoke at home, while 65 percent get it in public places.

Rojas said Southeast Asia is an important market to tobacco companies, as 10 percent of the world’s 1.25 billion adult smokers are in this region.

The Philippines is the secondlargest tobacco consumer in the Asean, next to Indonesia, with 17.3 million Filipino adults smoking. It is believed that majority of them have started the vice at a young age. Last year the Nvap campaigned against a $7-million cigarette-marketing project aimed at targeting young people.

Ten Filipinos die every hour owing to smoking, the single most preventable risk factor for cancer and other noncommunicable diseases, Nvap said.

“If we want to slow down smoking, we must arm the youth with information and establish strong tobacco-control systems that will protect them from taking up this deadly habit,” Rojas said.

Nvap will hold a youth forum to discuss the effect of smoking among the young.

The forum aims to increase the capacity of young people on current tobacco-control laws and smoke-free initiatives. Around 500 youth delegates are expected to attend the forum, with Yul Dorotheo, project director of the Southeast Asia Tobacco Control Alliance, as guest speaker. Nvap supports the “Kick Butt Day,” a global initiative by the Campaign for Tobacco Free Kids that encourages young people to speak against smoking. Claudeth Mocon-Ciriaco and PNA

Economy

A4 Thursday, February 12, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

P2.31-B Mindanao power-transmission project gets ERC nod

A

By Lenie Lectura

proposed P2.31-billion transmission line project of the National Grid Corp. of the Philippines (NGCP), which runs from Davao Occidental to Davao del Sur, aimed at partly addressing the current power shortage in Mindanao was recently approved by the Energy Regulatory Commission (ERC).

In a 10-page order released this week, the ERC approved the NGCP’s application to implement the Malita-Matanao 230-kilovolt (kV) transmission line project.

T he sa id fac i l it y w i l l d ispatch the power that will come from the proposed 600-megawatt (MW) coal power plant of San Miguel Consolidated Power Corp. (SMPC).

SMPC’s coal plant will be connected to the proposed new Malita 230-kV substation which will be connected to the grid through the existing Matanao-Toril-Davao 138kV facility.

The NGCP stressed that if the proposed transmission project will not be implemented, SMPC’s coal plant will not be connected to the Mindanao grid and there will be no additional generation capacity to the island.

“Considering that SMPC will install 1x150-MW unit per year, the power curtailment that will not be injected to the grid due to lack of transmission line facility connecting SMPC ’s coal plant will be 150 MW in 2015, 3 0 0 M W i n 2 016 , 4 5 0 M W in 2017 and 600 MW in 2018,” the NGCP said.

The ERC, in its decision, said the proposed project of the NGCP is “ justified.”

The regulator agreed with the

NGCP when it said that existing facilities are not sufficient to accommodate huge capacity from SMPC’s coal plant. Thus, there is a need to put up a new transmission facility to accommodate this.

“Considering the insufficiency of power supply being experienced in the Mindanao island, additional generation is highly essential,” it said.

The said facility will be designated at 230 kV but will be energized initially at 138 kV. The target completion of the project is in 2016.

PCCI exec accused of ‘faking’ Filipino citizenship before immigration bureau

By Joel R. San Juan

A

Calendar girl A shopper passes by a small stall in Recto, Manila, where widely sought calendars that show the lunar ocean tides are sold by bulk. Alyssa Salen

briefs 5 troubled ofws get livelihood help from sen. villar Sen. Cynthia Villar on Wednesday gave livelihood and financial assistance to five distressed overseas Filipino workers (OFWs) who opted to return to the country after suffering various forms of maltreatment from their employers abroad. ”These livelihood assistance from the All Day Supermarket and financial assistance will help our OFWs put up small businesses,” Villar said.

The OFW beneficiaries were Juan Zaragosa, 36, of Balagtas, Bulacan; Jocelyn Montes, 33, Dasmariñas, Cavite; Nenita de Guzman, 35, Parañaque City; Merceditas Dogma, 35, Valenzuela City; and Leslie Macalalad, Barangay San Nicolas, San Pablo City.

Their plight was brought to the attention of Villar through the Blas F. Ople Policy Center led by Susan “Toots” Ople, who has been at forefront of helping distressed OFWs. PNA

u.k. embassy to open 24-hour visa service

The United Kingdom (UK) embassy’s visa and immigration section will launch a new 24-hour Super Priority Visa Service (SPVS) in the Philippines starting February 23.

The SPVS is an optional first-class visa service to facilitate the most urgent travel needs and will be available to all visitor visa applicants and some work visa categories.

“SPVS complements our efficient standard service and the existing threeto-five-day Priority Visa Service, an option which will also be made available to more customers, including all visitors,” British Ambassador to the Philippines Asif Ahmad said. Recto Mercene

COMPLAINT has been filed seeking the deportation of an executive of the Philippine Chamber of Commerce and Industry (PCCI), who is also president of a P20-billion local mining company, for allegedly faking his Filipino citizenship to legalize his mining investments in the country.

In his complaint before the Bureau of Immigration(BI), a certain Nestor Cas accused PCCI board member and Global Ferronickel Holdings Inc. and Platinum Group Metals Corp.

(PGMC) President Joseph Sy of allegedly falsifying public documents and simulated his birth so he could pass himself off as a Filipino.

Cas said Sy allegedly faked his documents in order to control firms that are into mining, a partly nationalized industry where foreigners are not allowed to hold a controlling ownership.

Cas is asking now the BI to deport Sy not only for falsifying public documents but also for allegedly violating other local laws, such as the anti-dummy law, the Immigration Act and the Corporation Code.

Sy, through several companies, allegedly controls PGMC and Global Ferronickel, a company listed at the

Philippine Stock Exchange with a market capitalization valued at over P20 billion as of the end of January 2015.

Being a miner, Sy acts as officer in charge for mining of PCCI, the country’s biggest business association and an influential advocacy group.

The complaint said Sy filed an affidavit for late registration of his birth on December 28, 2007.

But Cas, through ADBLACCC Law Office lawyer Renny Domingo, said the entries in the affidavit—executed 41 years after Sy’s alleged birth on October 10, 1966—were “incredible” and “proven false.”

Domingo observed that “the only time in recent memory of the country that a group of people did not possess birth certificates for a certain period of time [was] during the 1970s with the discovery of the Tasaday Tribe” in Mindanao.

“There is no showing that respondent Sy belongs to the Tasaday Tribe.

It is more likely that he belongs to a Chinese tribe,” the lawyer said.

In the affidavit, Sy claimed that he was the son of Filipino couple Emilio Toledo Sy and Aida Samson Cue who married on June 18, 1964, in Balanga, Bataan.

But Cas countered Sy’s claims by showing a certification from the Office of the Civil Registrar of Balanga.

In the certification, the Civil Registrar of Balanga attested that, while its archived records of marriages in 1964 are intact, it has “no record of marriage” between persons named Aida Samson Cue and Emilio Toledo Sy. In Sy’s affidavit, he also gave an address—#31 Visayas Avenue, Upper Santa Lucia, Novaliches, Quezon City—as his place of birth.

However, lawyer Domingo said the given address has been “a vacant lot since 1901” or for more than a hundred years. Moreover, people in Sy’s alleged neighborhood do not know Sy or his alleged parents, Domingo said.

Domingo also found it strange that, based on the BI records, Sy has been traveling in and out of the country since 2001 although he presumably did not have a birth certificate, which is a requirement in getting a passport.

Sy was eligible to get a birth certificate only after he had executed the affidavit for late registration of birth, Domingo pointed out.

“How did respondent Sy travel in and out of the country since 2001 when he only executed his affidavit for late registration of birth in 2007,” Domingo asked in the complaint he filed on behalf of Cas.

Govt allots P9.94B for Mindanao peace initiative, DBM’s Abad says

B

udget Secretary Florencio B. Abad on Wednesday said that pursuing peace in Mindanao is a top priority in the 2015 national budget with a P9.94billion allocation to widen social services and reconstruction, especially in conflict-affected areas.

He said the government believes that the peaceful settlement of the conflict and violence besetting Mindanao is not through strengthening national defense and security but by restoring the provision of essential government services.

“Ensuring inclusive growth means creating an environment of stability in different parts of the country. It’s true that the process of

Labor of love

peace-building is a delicate and complex one, requiring much work and cooperation from both sides,” Abad said in a news statement.

He said of the total allocation for the peace program in Mindanao, the Department of Budget and Management has allocated P2.69 billion for social services to help communities in conflict-affected areas.

The budget aims to support the implementation of the Comprehensive Agreement on the Bangsamoro.

The allocation also includes support to the government’s Payapa at Masaganang Pamayanan (Pamana) program with P7.25-billion budget to help foster peace and development in conflict-torn areas

throughout the country.

The Pamana program covers solar electrification, road construction, study grants for communities, support to indigenous people, irrigation, reforestation, health insurance and electrification for communities in conflict-affected areas in Mindanao.

“We have to remember the national government’s options for conflict resolution is not limited to reinforcing our military and police strength,” Abad said.

The programs on peace settlement in Mindanao also aim “to elevate the quality of life of the people living there even as we intensify our drive to reduce poverty.” Estrella Torres

Two market porters in Divisoria, Manila, appear to be trying to outrace each other in pulling their carts loaded with boxed goods. Divisoria, known as the bargain capital of the Philippines, is a fast-paced commercial center frequented by shoppers, bargain hunters and visitors across the country. Nonie Reyes

Economy BusinessMirror

news@businessmirror.com.ph

Govt to spend P162.1 million for industry surveys this year

By Cai U. Ordinario

T

he national government will be spending P162.1 million to conduct three industry surveys this year, according to the Philippine Statistics Authority (PSA).

The PSA said the industry survey that will take the lion’s share of the amount is the 2014 Annual Survey of Philippine Business and Industry (ASPBI) which will require P149.3 million to conduct. The government said the cost for the ASPBI translates to a spending of P4,976.67 per establishment to be surveyed. “[The cost will] cover expenses for training, field operations and data processing, as well as printing of questionnaires, publications and other survey materials,” the PSA said.

The ASPBI is a regular survey designated to be conducted on a yearly basis, except during the years when the Census of Philippine Business and Industry (CPBI) is conducted.

The CPBI is conducted every 10 years.

The ASPBI said the survey will be undertaken from April to May 2015, covering 30,000 business establishments engaged in various economic activities.

These economic activities include agriculture forestry and fishing; manufacturing, mining and quarrying; electricity, gas, steam and air-conditioning supply; and construction, among others.

“Press releases of the results and tables of the ASPBI shall be issued by the PSA during the period February 2016 to June 2016,” the PSA said.

Meanwhile, the other two surveys are the 2015 Monthly Integrated Survey of Selected Industries (Missi) costing P9.1 million and the 2015 Producer Price Survey (PPS) worth P3.7 million. The Missi is a regular survey conducted every month to provide planners and policy-makers in both public and private sectors with timely flash indicators on the performance of growth-oriented industries in the manufacturing sector.

These indicators include the Value of Production Index, Volume of Production Index, growth rates of value and volume of net sales, and average capacity utilization rate.

The Missi collects data on employment, compensation, value of production, revenue/sales, inventories and capacity utilization of the establishment.

The conduct of the 2015 Missi covers 1,100 establishments with total employment size of 20 and over. Data collection will be employed every 10th to 20th day of each month after the reference month.

The PPS, on the other hand, is also a survey conducted monthly to collect producer price data of manufactured commodities for the generation of the Producer Price Index, which measures the average monthly and yearly changes in the prices received by domestic producers in the manufacturing industry.

Thursday, February 12, 2015 A5

DOE’s Petilla asks legislators: What’s next after Epira repeal?

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By Jovee Marie N. dela Cruz

HE Department of Energy (DOE) on Wednesday opposed the moves in the House of Representatives to repeal the Electric Power Industry Reform Act (Epira).

Energy Secretary Carlos Jericho L. Petilla, in a House Committee on Energy hearing, said that instead of repealing Epira, Congress should pass new laws complementing the Epira.

“The DOE is for the passage of complimentary legislation to Epira, and not to repeal it. In this regard, we propose for the passage of supplement legislation that will provide the framework for declaring power projects as projects of national significance to avoid delays and bureaucratic processes in complying with necessary permits and licenses,” Petilla told lawmakers.

He added that what Congress

should do is to fine-tune the Epira like what other countries did.

“We don’t need to repeal it [Epira] what we need is to fine-tune the legislation.... Fine-tune it with complimentary legislations,” Petilla said, adding that, “this law has worked to some extent...scrapping it is a different issue and what do you do next if you replace Epira.”

Currently, there are 14 bills and resolutions in the lower chamber calling for a repeal, review and amendment to Epira.

Petilla, however, is pushing for the amendment of the law to give the government the ability to put up new power plants that would

act as a stand-by reserve in case of power shortages.

In a recent BusinessMirror report, the DOE also said the increasing electricity prices will be addressed with the passage of a bill declaring power infrastructure as projects of national interest; creation of an interagency one-stop shop to accelerate the processing of permits and licenses for energy projects; undertake an in-depth study on Wholesale Electricity Spot Market design and revise accordingly through a DOE policy issuance; streamlining of power-supply contracts; rationalizing tariff-setting and subsidies in off-grid areas to reduce universal charge; and amendment of relevant provisions of Epira and its implementing rules to ensure supply security at a reasonable price.

Its medium- to long-term recommendations include the harmonization of Epira, with provisions governing open access in economic zones; exemption of the power industry from value-added tax to reduce power rates; and review of the roles of local government

units to encourage investments in power development.

Four TWGs

Liberal Party Rep. Reynaldo Umali of Oriental Mindoro, chairman of the House Committee on Energy, said the panel has created four technical working groups (TWGs) to study all the resolution and bills asking either for the repeal, review or amend Epira.

“We created [the] TWGs to tackle pertinent specific subsectors of power [industry] such as generation, distribution, transmission and supply,” he said.

“But now I can’t say the timeline of this law in the lower chamber because we still don’t know the position of the private sector on Epira, as I said, there must be a consensus. Without consensus, this will not pass. And I need that consensus to get the president to certify this as urgent. And I need the presidential certification to pass this in this Congress, including Senate,” Umali said.

Umali is the author of House Bill 4479 reviewing the Epira.

Pilot test for ‘express bus system’ set on March 16

P

ilot testing of the express bus system is set on March 16 to determine its potential benefits to commuters.

The express bus system is a joint project of the Metropolitan Manila Development Authority (MMDA), the Department of Transportation and Communications (DOTC), and Land Transportation Franchising and Regulatory Board (LTFRB) to help ease traffic along major thoroughfares, particularly during rush hours along the stretch of Epifanio de los Santos Avenue (Edsa).

The initial run of the new system aims to test its feasibility in easing the commuters’ travel from Fairview to Ayala.

“Based on the study conducted by the Metropolitan Manila Development Authority and the Department of Transportation and Communications, most of the commuters coming from Fairview and Tandang Sora are headed off to Ayala. Therefore, there would be a large number of passengers aiming to go to Ayala,” Transportation Secretary Joseph Emilio A. Abaya said after a meeting with MMDA Chairman Francis N. Tolentino and LTFRB Chairman Winston M. Ginez.

Abaya said 50 express buses will be deployed on March 16 in Quezon City, Mandaluyong and Makati City.

Abaya said the express buses will run two initial routes, which is from Fairview to Ayala and from Fairview to Ortigas. These destinations were chosen because many

briefs dfa’s del rosario embarks on norway visit Foreign Affairs Secretary Albert F. del Rosario is scheduled to visit Norway on February 11 and 12 upon the invitation of Norwegian Foreign Minister Borge Brende.

The two foreign ministers are expected to discuss on February 12 the Philippines-Norway cooperation in the areas of peace mediation, maritime affairs, disaster-risk reduction and management, and trade and investment.

The visit will provide del Rosario the opportunity to convey to Brende the Philippine government’s appreciation for Norway’s firm support to the peace process, its commitment to assist the Philippines’s efforts to improve further seafarers’ education and training, and their solid partnership in disaster-risk reduction and management.

Around 25,000 Filipino seafarers are onboard Norwegian-owned or -registered merchant vessels.

Filipino maritime students benefit from the education and training provided by the Norwegian Training Center-Manila (NTCM) established by the Norwegian Shipowners Association (NSA) in 1990. The NSA has embarked on a plan to expand and develop further the NTCM as the top training provider for Filipino seafarers.

Del Rosario will also make a pitch for more Norwegian investments in renewable energy in the country, particularly geothermal and solar power in which Norway has worldclass expertise.

The Philippines is a recipient of Norway’s sovereign wealth fund investments. The Norwegian government’s Pension Fund Global, owned by the Ministry of Finance of Norway on behalf of the Norwegian people but administered by the Norges Bank Investment Management, is the biggest sovereign wealth fund in the world with a combined asset worth $870 billion as of May 2014. Recto Mercene

lawmaker: get rid of rh law

For luck and longevity

A winsome young lady writes her wish on a red-colored wishing crane ahead of the Chinese New Year celebration on Thursday next week at a mall in Chinatown, Binondo, Manila. Wishing cranes are a Chinese symbol for luck and longevity. Alyssa Salen

people are working in these areas.

Abaya said these buses will use the MMDA bus stops to ensure the safety of passengers.

Unlike the regular bus system

Transportation Secretary Joseph Emilio A. Abaya briefs news reporters on the forthcoming pilot testing of the bus express service. PNA

with 25 stops each for southbound and northbound routes from Mall of Asia to Manila Central University, the segregation scheme of this new bus system will only have 15 bus stops each for southbound and northbound from Kamuning to Magallanes.

“The Metro Rail Transit Line 3 stops at every station. But in this new system, buses will go straight from Fairview, or from Tandang Sora to Ayala, without stopping. Therefore, the new system will consume lesser commuting time,” Abaya explained.

Abaya added that the buses will observe time and schedules in conducting continuous travels.

He added that they will make use of MMDA dispatch stations to serve as terminals for these buses.

They will be exempted from coding and will not travel along the yellow lane which is used for picking up passengers.

According to the DOTC chief, bus fare will remain the same for the pilot test since they will be applying the same formula for every kilometer.

Abaya concluded that if the pi-

lot test proves to be good and people will appreciate it, they would push for the implementation of the system.

A total of 50 express buses, converted from non-express units, are set to travel from Fairview to Ayala and Fairview to Ortigas for the initial test of the new system.

For his part, Tolentino said the express buses will be allowed to use the underpasses along Edsa and will be exempted from number coding to reach their destinations on time.

Tolentino said the new bus system aims to lessen the volume of vehicles along Edsa by encouraging employees to leave their cars at home and take the bus to work. Tolentino said the express buses should have a designated color for identification.

The MMDA said travel time from Fairview in Quezon City to Ayala in Makati City is expected to be cut down by 30 minutes from a regular two-hour travel time.

Meanwhile, Ginez said they had already tapped around 15 bus companies for the project. PNA

A party-list lawmaker has reiterated his proposal to repeal the reproductive-health law (RH law), saying this “law takes root and destroys our future generations.”

Buhay Party-list Rep. Lito Atienza, in his recent privilege speech, said that Congress should consider repealing the RH law.

“Now is the time to consider repealing the RH law which was passed by the previous Congress. This law is a population-control measure that promotes birth control and the use of artificial contraceptives,” Atienza said.

In his privilege speech celebrating the “Respect and Care for Life Week,” or Presidential Proclamation 214 signed by former President Corazon Aquino, Atienza said the 1987 Constitution and The Family Code of the Philippines call for the strengthening of the family as the basic foundation of society.

Atienza said that what the country needs to achieve economic progress is a good and effective governance and not population control.

“Pope Francis called this ‘ideological colonization’ during his meeting with the families.

Instead of teaching our children sex education and birth control which are foreign ideologies, we should be teaching them the culture of life and promoting our traditional Filipino values such as respect for life and the family,” Atienza added.

Also, during his speech, Atienza raised serious apprehensions over Section 4 (e) of the proposed AntiDiscrimination Act prohibiting the denial of application for or revocation of professional or “other kind of license, clearance or any other document issued by the government due to applicant’s sexual orientation or gender identity.”

Asking for clarifications from the authors, Atienza said he was informed that the provision also applies on securing marriage licenses. Jovee Marie N. dela Cruz

Opinion BusinessMirror

A6 Thursday, February 12, 2015

editorial

Malaysia’s politics of intolerance

T

HE five-year jail sentence imposed on Malaysian opposition leader Anwar Ibrahim effectively ends his political career. The greater loss, however, will be to Malaysia’s politics and economy if Prime Minister Najib Razak’s intolerance continues.

Najib’s government has greatly increased its use of the Malaysian courts for essentially political ends; according to Amnesty International, since 2013 at least 44 people have been investigated, charged or convicted under the colonialera Sedition Act, which Najib once promised to repeal. (Anwar’s conviction was for sodomy, though the case was highly politicized.) The prime minister has given Malaysians all too much reason to doubt the credibility of their judiciary.

Najib’s broader efforts to shore up his political position are dragging the country backward. Buffeted by criticism from former Prime Minister Mahathir Bin Mohamad for his stewardship of 1MDB–a government investment fund with murky finances–he has sought to placate hard-liners within the ruling party with retrograde policies. He’s redoubled support for racial preferences for Malay citizens and businesses and urged government-linked companies to give more contracts to ethnic Malays “on merit.” He hasn’t decisively confronted a rising tide of Islamism, nor rebuked one of his ministers who called for a boycott of Chinese-owned businesses.

This political opportunism comes at a cost. Najib’s persistent pro-Malay policies, as well as a sense of rising intolerance, are fueling a damaging brain drain at a time of economic turmoil. The World Bank recently reduced its 2015 growth forecast to 4.7 percent as falling oil prices take a toll on the country’s energy exports. As commodity prices plunge around the world, the country desperately needs to move further into downstream production in everything from energy to palm oil. It needs to spur entrepreneurship to invigorate its services sector.

Elections in 2013, in which Najib’s ruling coalition lost the popular vote, should have served as a wakeup call. Not only ethnic Chinese and Indians but also young, urban Malays voted in droves for the opposition. Now, with Anwar deposed and new elections not due until 2018, Najib may feel he has more to fear from his own hard-liners than from the opposition.

The Barack Obama administration, which Najib has assiduously sought to cultivate, was right to criticize Anwar’s conviction and Najib’s enthusiasm for prosecuting his critics. One can only hope that U.S. officials are being even more forceful in private.

Ultimately, though, only a powerful domestic opposition can force the kind of structural changes that would bring about a truly open economy and society in Malaysia. Losing the charismatic Anwar will be at least a temporary blow to his fractious coalition. But if party leaders can reorient themselves around principles instead of personalities–and tame the Islamic extremists in their own camp–they will greatly strengthen their appeal as a viable alternative to the ruling coalition. Whatever their politics, Malaysians would benefit from a genuine contest of ideas. Bloomberg editorial

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The economics of the BBL John Mangun

OUTSIDE THE BOX

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HEN we talk about the Autonomous Region in Muslim Mindanao (ARMM), the discussion about the past, present, and the future seems circular. The peace and order problem is because of the economic problems which are caused in part by the peace and order problem.

Because you can have peace and order without the ‘money’, but you can rarely have the money without peace and order, perhaps the best place to break the circular chain is by looking closely at the economic provisions contained in the Bangsamoro basic law (BBL). Granted that the BBL is only a framework, the terms and conditions embodied in the BBL are what the parties have initially agreed to and will form the basis of the actual law moving forward.

The newly established Bangsamoro Territory (BT) from the present geographical area of the ARMM has been considered a first step to the federalization of the other Philippine provinces. Others have said that the BT will function as an independent state. The truth probably lies somewhere in between. However, the current specific provisions of the BBL clearly show that the BBL is fully a part of the Philippines and under the national government and in other cases is, for all intent and purposes, completely independent from the Philippines.

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regulate power generation, transmission, and distribution operating exclusively in the Bangsamoro and not connected to the national transmission grid.” The BT may have cheap nuclear generated power before the rest of the country.

However, “The Bangsamoro shall be able to interconnect and sell power over the national transmission grid to electric consumers.” With interconnection, “the Central Government and the Bangsamoro Government shall cooperate and coordinate” whatever that might mean.

The most important economic provision comes in Section 6: Revenue Sources. “The Bangsamoro Government shall have the power to create its own sources of revenues and to levy taxes, fees, and charges.

Such taxes, fees, and charges shall accrue exclusively to the Bangsamoro Government.”

That may ultimately be what the BBL is all about. For better or worse and notwithstanding other considerations like the constitutionality, if the BBL is enacted into law as currently written, the future of the Bangsamoro people will be solely in the hands of its own government.

Lost in the dust of history is the name of the person who once said, “Be careful what you ask for; you may get it.

E-mail me at mangun@gmail.com.

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Crossroads: Abandon the peace process or not

BusinessMirror is published daily by the Philippine Business Daily Mirror

HOM

In Section 3, “Exclusive Powers” of the BBL, we find the following: “Exclusive powers are matters over which authority and jurisdiction shall pertain to the Bangsamoro Government. The Bangsamoro government shall exercise these powers over the following matters within the Bangsamoro.” Sub-section 5 reads “Labor, employment, and occupation.”

Wages are obviously a part of “Labor, employment, and occupation.”

Would workers in the BT be subject to the minimum wage laws passed by the national government? In the US federal system, the national government sets the minimum wage and state government can set a higher wage but not lower. In this regard, the BT might as well be an independent country.

Subsection 4 under these Exclusive Powers reads, “Trade, industry, investment, enterprises and regulation of businesses taking into consideration relevant laws.” Now we have a grey area. What exactly is going to be the definition of “consideration”?

The legal definition deals with contract law-something given in return for payment. Otherwise, consider means only to take into account when making a decision. Therefore, there is not a legal reason why the BT government needs to follow Philippine national law in this regard.

The BT could conceivably pass investment laws which would give it a greater advantage in attracting investment than other provinces have under current national law. This includes foreign investment.

Section 13 allows the BT government full and complete control and jurisdiction over the exploration, development, and utilization of mines and minerals in its territory.

There is not any provision in the BBL that requires the BT government to adhere existing PHL government environmental regulations regarding mining. “The Bangsamoro Government shall have the authority to protect and manage the environment.” Further, “Permits and licenses and the granting of contracts for this purpose shall be within the powers of the Bangsamoro Government.”

Yet in Section 10: “The Bangsamoro Government and the Central Government shall jointly exercise the power to grant rights, privileges and concessions over the exploration, development and utilization of fossil fuels (petroleum, natural gas, and coal) and uranium in the Bangsamoro.” That sounds like Federalism.

Also under its “Exclusive Powers” (Section 15), “The Bangsamoro Government shall have authority to

Ariel Nepomuceno

DECISION TIME

T

HE passage of the congressional bill for the proposed Bangsa Moro Basic Law (BBL) is now at the verge of being delayed, at the least, or thrown out because of the extreme emotions provoked by the recent Mamasapano incident where 44 members of the Special Action Force were brutally killed.

Our country is now at a difficult juncture where we have to decide if we must still continue or refrain from the ongoing peace talks with the Moro Islamic Liberation Front (MILF). The perceived injustice and betrayal committed against our law enforcers must be squarely addressed first before we can proceed with the ongoing peace talks.

Expected from any peace process as experienced worldwide are the hindrances that such undertaking entail.

Foremost of which is the issue of trust and confidence in the sincerity of the other party. Second is the capability of the said party to implement the agree-

ment. Such are the main issues now. Is the MILF indeed trustworthy? And can they be relied upon to deliver their commitments as formally stipulated in the final agreement?

Constitutionality issues ALSO confronting the BBL are alleged constitutional infirmities of some specific provisions in the proposed agreement.

For example, some sectors question the legality of allowing the autonomous government that will be formed to legislate its own tax program while at the same time enjoy the lion’s share of all the revenues that will be generated from the

region’s tax collections.

Many legal experts also don’t agree in the constitutionality of allowing the proposed autonomous government to directly enter into international agreements or treaties. This is supposed to be the domain of the Senate of the Republic with the assistance of the Department of Foreign Affairs.

Also under question is the federal form of government which will be eventually organized as a result of the proposed basic law. To those opposed on this, our constitution has clearly defined that our form of government is presidential. And our government is divided among three co-equal branches which are the executive, legislative, and judiciary.

They argue that the constitution must first be amended before the said provisions be allowed to take effect.

Meaning, a mere plebiscite asking our people to approve or reject the proposed law is not enough if only to establish its legality or constitutionality.

Difficult decision NOW that our country still mourns the painful death of the police commandos, the proposed Bangsa Moro Basic Law

and the entire peace process would be in the middle of a decision process that must balance the long term interest of our country. Shall we proceed or not?

Ironically, the hostilities that happened in the fields of Mamasapano is the best reason why we desperately need to end the decades of armed conflict among our citizens. The martyrdom of the fallen officers is the testimony that we must not abandon the road to peace in order to avoid the death of thousands more.

The constitutional concerns, however, must be addressed and resolved.

The basic law of the land must never be compromised.

And urgent too is for the MILF to concretely prove their sincerity in order to help regain the trust of the general public who seems to prefer retribution over any peace discussions. The MILF must return the firearms and personal belongings of the fallen police officers.

And those responsible for the killing must be held accountable.

When the dust has settled, and after the hindrances are hurdled, we must still proceed in achieving our elusive desire to establish a solid and long lasting peace in Mindanao. This is for the best interest of our entire nation.

Opinion BusinessMirror

opinion@businessmirror.com.ph

The outlook for the Philippine property market in 2015

On being forgiven and rescued Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

By Rodolfo G. Valencia Conclusion

T

HERE is growing consensus that “the Philippines is [now] becoming less Metro Manila-centric and real-estate developments have started to move outside the capital.”

Cebu and lloilo in the south and Pampanga in the north seem to have been chosen by Megaworld, Ayala Land and Century Properties to be the sites of the country’s nextwave cities and critical catalysts of economic growth. There is no doubt that each of these new projects will be excellently master-planned. Our only reservation is whether these project master plans will be harmonious with the Comprehensive Land Use Plan (CLUP) and Comprehensive Development Plan (CDP) of the host cities or provinces or regions where the new projects are being put up. Hopefully, there are honest-to-goodness CLUPs and CDPs that will serve as framework for the emerging urban development projects.

Worth mentioning are the developments taking place in Tagaytay City, about an hour’s drive from Makati.

Records show that total inventory of projects in Tagaytay for a period of three years amounted to P28.59 billion. Condominium projects appear to be the leading development (80 percent of inventory), as dictated by market demand, in 2013, after three years, only P10.972 billion of inventory remained. In other words, sales have been brisk at, about P829 million by month, or P6.8 billion a year. Market observers say that the prospects for 2014 and 2015 will be even better.

Finally, there is the newly-discovered goldmine of tourism and hospitality that has attracted humongous-and instant investments into the country. The Entertainment City complex in Paranaque City of the Philippine Amusement and Gaming Corp. (Pagcor) saw the opening of its second integrated resort this year—the City of Dreams.

This follows the Solaire Resorts & Casino of Bloomberry Resorts Corp., which opened in 2013 and will be followed by the opening of the Okada Group’s Manila Bay Resorts. The Resorts World group has broken ground on its second property in the complex and the plan is to complete it by the fourth quarter of 2018. The Pagcor is looking at $7 billion in gaming revenue by 2019.

Government efforts to improve public infrastructure, maintain political stability, control inflation and keep interest rates low are critical factors that help improve and sustain the property market.

But in the current Philippine situation, it is clearly the private sector that is leading the effort and its clearest manifestation is the push for the development of new townships and the continuous transformation of cities into business landscapes, where pocket developments are planned and built for self-contained communities in accordance with the live-workstudy-play paradigm.

By now, there is no doubt that Filipinos have accepted the new community paradigm as the basis of a new lifestyle and standard of living worth the investment of their hard-earned money. Thus, thousands upon thousands of overseas Filipino workers and business process outsourcing (BPO) workers are buying into communities where residences, office buildings and facilities, retail outlets and even schools are designed side by side and in harmony with each other to facilitate access by the residents and workers to these basic necessities.

‘T

o be freed from sin is to be filled with the joy of salvation (Psalm 32:1-2, 5, 11). To be rescued from a consuming sickness is to be entrusted with a good news of hope to be shared with others” (Mark 1:40-45).

You fill me with joy In addition, we also see the phenomenon of more and more foreigners buying into these communities. Some of these foreign buyers are expatriates in the employ of outsourcing and offshoring (O&O) companies that favor the Philippines as the location for their business. Others are citizens from the countries of the Asean who actively participate in the economic integration program and come to the Philippines to work, study, play, or simply live.

It is generally conceded that investors from the O&O and BPO industries will continue to bank on the country’s cost efficiency and skilled labor force. Proof of this is that vacancy rates among central business districts (CBDs) have been dropping on a quarterly basis in the major growth centers of Metro Manila, like Makati, Bonifacio Global City, Ortigas, Alabang and Pasay City. The only recent exception has been Quezon City.

New townships are pre-selling strongly. These projects can be seen across CBDs—Bayshore in Pasay; City Gate in Makati; Uptown Bonifacio; McKinley West and Area South in Taguig; Woodsite City and Capitol Commons in Pasig; and, Vertis North in Quezon City.

Such upbeat economic trends are a consistent boost to the highend to mid-market demand for luxury, high-end, affordable and mid-market condominiums. It is the demand for these developments that have essentially overpowered the fears of a property bubble in the residential sector.

Noteworthy is the recent invigoration of the manufacturing and automotive industries with the inflow of investments from Germany, Japan and Korea. Not too long ago, manufacturing hardly contributed to GDP growth. There are signs of a possible reversal to its pre-eminent position. The different incentives offered by the Philippine Economic Zone Authority, helped along by the robust macroeconomic indicators, competitive labor resources and a stable political climate, are encouraging more locators to set up shop in the Philippines.

Developers, such as Vista Land, Ayala Land, Megaworld and Century Properties have been quick to see the possibilities of a more vigorous industrial sector and are now keen on putting up developments in areas outside Metro Manila where these industries are locating.

The foregoing observations are proof positive the real property market in the Philippines is vigorous and competitive. With greater improvement in our overall infrastructure development, basic urban services, more efficient and dependable mass transport systems and more transparent and accountable governance, the property market will thrive and grow even more in the foreseeable future.

Without any doubt, the Philippines will continue to be one of the brightest spots in the Asian regional property market. The year 2015 will contribute further to our country’s emerging role.

Rodolfo G. Valencia is national president of the Philippine Institute of Real Estate Service Practitioners Inc. and CEO of the RGV Real Estate Group of Cos. This is an abridged version of his speech delivered at the Philippine Association of Local Treasurers & Assessors Inc.’s 82nd Annual Convention and Seminarworkshop on February 3.

Thursday, February 12, 2015

PSALM 32 is a maskil, an insightsharing, a wisdom text teaching what one needs to do to welcome God’s blessing. Blessed and happy is one whose transgression is forgiven, whose sin is buried and forgotten, and whom the Lord does not hold guilty. The opening double beatitude (“blessed”) stands out in the context of the three most used Hebrew words for the evil that we do: transgression (pesha) as infidelity to the covenant with the Lord, sin (hatah) as failure or missing the mark, and guilt (awon) as perversion or rottenness.

It is God who forgives transgressions and covers or puts sins out of sight.

And one treated so by God is truly blessed and happy.

The psalmist knows it is not cheap grace. In his own experience of sin and of forgiveness, repentance is necessary: he acknowledged his sin, he did not cover up his guilt, and he confessed his faults. And God took away the guilt of his sin. He turned to the Lord in his time of trouble, and

the Lord filled him with the joy of His merciful and saving care and made him truly blessed. The psalmist’s personal experience and reflection on repentance and divine clemency becomes an example for others to imitate. The concluding exhortation to rejoice and exult in the Lord makes the end like the beginning on the note of happiness. Those can be glad and shout for joy who trust in the Lord, those righteous and upright of heart.

You can make me clean

A leper in those days is a man without hope, an unclean person to be avoided by all, an outcast left alone in painful isolation to his disintegrating condition. Disregarding ritual restrictions, the man with leprosy boldly comes up to Jesus and on his knees declares his deep trust in the one he has heard about possesses miraculous power and cares for those afflicted and in suffering. If Jesus wishes—he abandons himself to Jesus’ disposition, he knows he is considered beyond anyone’s concern

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or help. He begs Jesus to make him clean—more than physical healing, the leper wants social and religious acceptability, to be part again of the human community.

The mercy and compassion of Jesus, pulling up deep groaning within him, moves him to reach out and touch the leper. He does not hesitate for fear of being contaminated or himself becoming ritually unclean. Instead he heals the man and restores him to the condition of ritual purity and leads him back into the circle of human fellowship. The man’s newfound religious cleanness and worthiness must still be verified by a priest. Jesus instructs the man to comply with the required offering and to get formal approval for his reentry into the community.

Jesus gave the man what he wanted of him, healing; the man does not return the favor: he cannot be silent about what has happened to him. His is possibly the irrepressible hallelujah of one who has experienced divine mercy and compassion; at the very least, his story is the tattling of one so long excluded from human fellowship and now possessing a narration everyone would like to hear from him. The former leper publicized the whole matter, and what Jesus wanted to preclude happened: it became impossible for him to enter a town openly without being swamped by wonder-seekers. And even if Jesus would remain in secluded places, people kept coming to him from everywhere.

Tell no one

Alálaong bagá, life is troubled enough and full of pains and torments, so much so that any alleviations and kindness given and received awaken hope and foster faith. Whether in the form of transgressions and sins against God, or in physical ailments that separate one from others and spell diminishment and ultimately death, the reality of divine mercy and compassion means liberation and new life and being filled with the joy of salvation. And this is the story we should be sharing and witnessing to all around.

BUT Jesus gives a stern command to the man not to tell anyone anything.

The seemingly strange demand not to tell anything to others is clearly in view of his mission. Jesus does not want popularity to thwart his intention to go everywhere and proclaim the kingdom of God to all (as he made clear already to his disciples in last Sunday’s gospel). He does not want to be engulfed by possessive crowds of people who are so captivated by his miraculous power that they lose focus on his teaching and would like to keep him for themselves. He wants to avoid the easy trap of being misunderstood as a wonder-worker who has come to make here and now a paradise of life.

Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.

Tax cut on electricity generation and distribution Atty. Rodel C. Unciano

Tax Law for Business

W

HETHER you drive your own car or you commute via public transportation, all of us have a reason to relish on the collapse in oil prices in the global market. Will the price in electricity follow? Hopefully so.

Well, we have today twin reasons to be hopeful. For one, the BIR recently issued Revenue Memorandum Circular (RMC) 6-2015 which circularizes Executive Order (EO) 173 dated October 31, 2014. Under Section 1 of EO 273, as circularized in RMC 6-2015, all liabilities for real property tax on property, machinery and equipment (including special levies accruing to the Special Education Fund) actually and directly used by Independent Power Producers (IPPs) for the production of electricity under Build-OperateTransfer contracts (whether denominated Power Purchase Agreements, Energy Conversion Agreements or other contractual agreements) with government owned and/or controlled corporations, for all years up to 2014 are reduced to an amount equivalent to the tax due computed based on an assessment level of 15 percent of the fair market value of said property, machinery and equipment depreciated at the rate of 2

percent per annum, less amounts already paid by the IPPs. Further, all fines, penalties and interest on such deficiency real property tax liabilities are condoned and the concerned IPPs are relieved from payment. President Aquino issued EO 173 in accordance with Section 277 of the Local Government Code (LGC) of 1991 which authorizes the President of the Philippines to condone or reduce the real property tax and interest for any year in any province or city or a municipality within the Metropolitan Manila Area, when public interest so requires.

On a more recent development, the Court of Tax Appeals (CTA) recently issued a decision that will probably trigger the reduction of local business tax imposed by local government units upon power generating companies. In CTA EB Case 1086, the tax court has ruled that the nature of business of a power generating company falls within

the category of “manufacturer/ producer” and not “contractor” of electricity. The ruling in this case found its rationale on the fact that respondent taxpayer buys bunker fuel as its chief raw material and converts it through mechanical and chemical processes to electricity. In this case, Respondent takes bunker fuel as a raw material then feeds it into the plant’s diesel engine, which ignites and burns the fuel, producing heat energy. The fuel undergoes a process called combustion while heat is used to activate the plant’s turbine, converting heat energy into mechanical energy. Hence, this nature of respondent’s business fits in the definition of a “manufacturer” under Section 131(o) of the LGC of 1991 and Section 3A.01(11) of the Makati Revenue Code. Respondent taxpayer cannot be considered a “Contractor” under Section 131(h) of the LGC of 1991 even as it not only supplies electricity but also manages, operates and maintains and also repairs the power plant/s of its customers for a substantial fee or consideration.

The LBT imposed by municipal government units under Section 143 of the Local Government Code of 1991 is classified into eight (8) clusters which are grouped according to the business activity of the taxpayer involved. Manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and compounders of li-

quors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature are taxed at a maximum rate of 37 and a half percent of 1 percent of the taxpayer’s gross receipts for the preceding calendar year while the maximum rate imposed upon contractors is at a maximum rate of 50 percent of 1 percent of the taxpayer’s gross receipts for the preceding calendar year. Under Section 151 of the Local Government Code of 1991, the rates of taxes that the city may levy may exceed the maximum rates allowed for the province or municipality by not more than 50 percent.

These twin developments affecting the energy sector will certainly bring down cost of electricity generation, transmission and distribution, and hence, giving each one of us good reasons to expect the reduction in the price passed on to the end users.

Atty. Rodel C. Unciano is a senior associate of Du-Baladad and Associates Law Offices (BDB Law), a member firm of World Tax Services (WTS) Alliance.

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at rodel.unciano@bdblaw.com.ph.

We have to pay something to slow climate change

By Cass Sunstein Bloomberg View

A

RE Americans worried about climate change? Do they want their government to regulate greenhouse gases? A recent survey–from Stanford University, The New York Times and Resources for the Future–found that strong majorities say “yes” to both questions. But there’s a big catch, which isn’t getting the attention it deserves: A strong majority also say that they oppose increasing taxes on either gasoline or electricity in order to reduce climate change. That’s important, because any serious effort to lower emissions is going to raise prices (certainly in the short run).

The pattern of responses here is essentially the same as it was in the

late 1990s, when the US was debating whether to ratify the Kyoto Protocol to limit greenhouse gas emissions worldwide. In one poll at the time, 59 percent of Americans favored ratification. Indeed, a strong majority agreed with this extraordinary statement: “Protecting the environment is so important that requirements and standards cannot be too high and continuing environmental improvements must be made regardless of cost.”

At the same time, a majority said they would oppose the Kyoto Protocol if it would cost them personally $50 per month. When that hypothetical monthly cost was raised to $100, almost 90 percent said they would oppose it.

How can most Americans be unwilling to pay to reduce a problem that they believe (as they indicated in the recent

poll) will damage them personally?

One answer is that many people believe companies can reduce emissions on their own, and without imposing costs on consumers. (Unfortunately, that’s highly unrealistic.) Another is that, in surveys, most people express an immediate and strong aversion to higher taxes as the solution to climate change (or almost any other problem).

If the second answer is the right one, then there may be an opening for an adult conversation about the topic. If we are worried about climate change, surely we would be willing to pay something–at least if it isn’t a lot–to reduce the risk. According to some estimates, the US could do a lot to reduce greenhouse gases if the average American paid a monthly energy tax, targeted to such emissions, of $10, along with an equivalent gasoline tax.

It would be interesting to ask people whether they would be willing to pay such amounts–or just how much they might be willing to pay.

The recent survey does provide a clear lesson for national political campaigns: Candidates will have trouble if they decline to acknowledge climate change or say that they don’t want to address it. At the same time, they have to be wary of favoring initiatives that would impose significant costs on American consumers.

It’s much more effective to stress the potential benefits of new forms of clean, American-made energy–and to celebrate the money-saving advantages of energy-efficient appliances and fuelefficient cars. But effective campaigning is one thing; adult conversations are another, and they cannot avoid the question of cost.

2nd Front Page BusinessMirror

A8 Thursday, February 12, 2015

www.businessmirror.com.ph

Jan-Nov FDI inflows up 61.6% to $5.7B

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By David Cagahastian

oreign direct investments (FDI) from January to November 2014 amounted to $5.7 billion, higher by 61.6 percent compared to the net FDI inflows for the same period in 2013.

The Bangko Sentral ng Pilipinas (BSP) reported that for the month of November alone, FDI inflows amounted to $399 million, up from only $297 million in November 2013.

This is mostly due to a surge in net equity capital investments in November 2014, which increased by more than 28 times to $201 million, from only $7 million in net equity capital investments in November 2013.

This net equity capital investments in November was channeled

to the financial and insurance sector, manufacturing, real-estate, transportation and storage, and wholesale and retail trade activities. The funds came mostly from the United States, Hong Kong, Singapore, Japan and Australia.

The BSP said, from January to November, the net inflows of FDI came from sustained lending by foreign parent companies to their local subsidiaries or affiliates to support existing operations in the Philip-

Take the video down, Palace pleads T he Palace on Wednesday told the owner of the video showing the brutal slaying of an injured member of the police’s Special Action Force (SAF) to take it off the social media.

“Whoever uploaded the video is a heartless fellow. If you still have some humanity left in your soul, we ask you to take it down,” Palace Spokesman Edwin Lacierda said during a briefing in Malacañang.

The video, showing a wounded uniformed man on his back in a field being shot at close range, has been spreading on the social media.

Also shown in the video were several other bloodied men wearing camouflage uniforms, as well as the looting of tactical equipment, such as vests and ammunition.

Asked if the Palace has any message to the public regarding the video that has

caused outrage due to its violent content, Lacierda said the government will see to it that justice is served.

“You have a right to be angry. You have a right to be outraged by such a brutal display of violence. But at the end of the day, we need to seek the truth. We need to find justice for all of those who died, including the SAF hero who was in that video. And that is what we intend to do,” he said. PNA

pines or fund-expansion projects.

“Net equity capital investments surged by 114.8 percent to $1.6 billion from $723 million, mainly on account of the contraction in equity capital withdrawals [by 71 percent] which more than offset the 15.6-percent decline in equity capital placements,” the BSP said.

The BSP added that the increase in net inflows of FDI and the high net capital inflow in November “reflected investors’ confidence in the

Philippine economy on the back of sound macroeconomic fundamentals and strong growth prospects.”

Meanwhile, reinvestments of earnings and investments in debt instruments posted positive balances from January to November 2014, although lower than what were recorded during comparable periods in 2013. Specifically, investments in debt instruments contracted by 37.1 percent, while reinvestment of earnings declined by 9.4 percent.

Will oil prices rise or fall?

Experts can’t say anymore Continued from A1

price jump see mounting evidence that drillers in the US are pulling back fast because they’re no longer making money. A closely watched survey by the oil services company Baker Hughes shows that the number of rigs actively drilling for oil fell to 1,140 last week, down 29 percent from a record high of 1,609 in October last year.

Oil companies have announced spending cuts in the billions of dollars; oil-service companies have announced layoffs of thousands of workers. If companies stop drilling new wells in North Dakota and Texas, the centers of the US oil boom, overall US production could fall fast. Output from most of those wells declines far more quickly than production from more traditional wells.

Analysts at Bernstein Research estimate that US production declines at 30 percent a year, without constant investment in new wells.

A quick decline in production would send prices higher by reducing global supplies. At the same time, demand could be on the rise. The US economy seems to be improving rapidly, and demand for gasoline is increasing. Global demand may also rise somewhat simply, because low prices tend to encourage more consumption.

If the oil bulls are right, it means prices for transportation fuels would rise and the slowdown in drilling activity in the US would perhaps be short-lived.

Oil will fall

Others say oil production is still rising, and demand isn’t yet catching up—a recipe for lower oil prices.

The oil bears argue that there are plenty of rigs still working, and they are now focused only on the most prolific spots.

Also, oil- services companies are charging significantly less for equipment and expertise. This means oil companies may be able to keep oil supplies rising from already high levels despite low prices.

The Energy Department reported last week that there was a record 1.18 billion barrels of oil in storage in the US ITG’s Dwarkin estimates that in the first half of this year the world will be producing, on average, 2 million barrels per day more than it will be consuming.

Analysts at Bank of America Merrill Lynch say $32 a barrel is possible. Ed Morse, an analyst at Citi, called the recent rise in prices a “head fake,” and predicts oil could plunge into the $20 range, the lowest since 2002. The bears also don’t expect much increase in demand. Many developing nations are cutting back on fuel subsidies, which means that consumers could be buying less fuel, not more. And demand in the US and other developed nations won’t rise much, they argue, because of environmental policies and high fuel taxes.

Oil will be the same

After its recent rise, some think oil may already be close to finding its level.

The International Energy Agency (IEA) said in a report on Tuesday that prices will stabilize in a range “higher than recent lows but substantially below the highs of the last three years.”

In the past, once production went off line it took years to bring it back. Now, the IEA said, drillers can quickly and easily tap shale deposits to bring new oil to market as soon as supplies fall or demand rises. That should help keep a lid on prices.

Tom Pugh, an analyst at Capital

Economics, forecasts that Brent crude, the most important benchmark for global crude, will end the year around $60 a barrel, within $4 of where it closed on Tuesday—and to be at $70 by the end of 2020.

That doesn’t mean, however, that there won’t further bumps along the way. “We wouldn’t be surprised to see more large price movements before the market settles down,” Pugh wrote.

Opec cuts Asia prices

Iraq, Kuwait and Iran joined Saudi Arabia in cutting their March crude prices for Asia, signaling the battle for a share of Opec’s largest market is intensifying.

Iraq’s Basrah Light crude will sell at $4.10 a barrel below Middle East benchmarks, the deepest discount since at least August 2003, the Oil Marketing Co. said Tuesday. National Iranian Oil Co. said its official selling price for March Light crude sales will be a discount of $2.10 a barrel, the widest since at least March 2000, according to a company official who asked not to be identified because of corporate policy. Kuwait Petroleum Corp. said on Wednesday its discount will be $4.10, the biggest since August 2008.

The cuts come after Saudi Arabia, the largest crude exporter, reduced pricing to Asia last week to the lowest in at least 14 years.

The Opec left its members’ output targets unchanged at a November meeting, choosing to compete for market share against US shale producers rather than support prices.

Iraq is the second-biggest producer in Opec, Kuwait is third and Iran is fourth.

“This is an effort by some producers to protect market share,” Sarah Emerson, managing principal of ESAI Energy Inc., a consulting company in Wakefield, Massachusetts, said by phone on Tuesday. “It’s really straightforward; cutting prices is how you keep your foot in the door.”

Increasing competition

Middle Eastern producers are increasingly competing with cargoes from Latin America, Africa and Russia for buyers in Asia. Oil prices have dropped about 45 percent in the past six months as production from the US and Opec surged.

The IEA said on Tuesday that the US will contribute most to global growth in oil supplies through 2020 as Opec’s attempts to defend its market share will hurt other suppliers, including Russia more. “If they go out and sell at a higher price, they won’t sell much,” John Sfakianakis, Middle East director at Ashmore Group Plc., a London-based investment manager, said in an interview in Dubai on Tuesday. “For the Saudis, it’s market share at any cost. Saudi is the leader in this and the others have to follow the leader.”

Iran’s output rose to 2.78 million barrels a day in January, from 2.77 million a month earlier as Iraq boosted supply to 3.9 million from 3.7 million, according to a Bloomberg survey of oil companies, producers and analysts. Production in Saudi Arabia climbed 220,000 barrels a day to 9.72 million last month.

Saudi views

Saudi Arabia won’t balance global crude markets by itself even as prices fall “too low for everybody,” Khalid Al-Falih, the CEO of Saudi Arabian Oil Co., said at a conference in Riyadh on January 27. The kingdom’s Oil Minister Ali Al-Naimi has said producers outside of the group should trim their output first.Bloomberg News