BusinessMirror February 4, 2015

PHL: The call-center capital of the world E

ver since Joahnna Horca lost her father, a doctor, in a South China Sea typhoon, her large family has struggled to make ends meet. So, after Horca earned a college degree in social work, an older sister nudged her to help support the family by taking a better-paying job—at a call center.

That was eight years ago, when the outsourcing industry was just taking off in the Philippines. Today it’s the job of choice for many young people here. More

than 1 million Filipinos now work at call centers and in related outsourcing businesses, mostly serving American companies.

The combination of cheap labor and specialized skills has made the Filipino work force invaluable to a growing list of US companies, which use them to field customer complaints, generate sales leads, code data, format documents, and read medical scans and legal briefs. continued on a8

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WILL ART BOUGHT AT ART FAIR PHILIPPINES MATTER IN THE LONG RUN? »D4

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

Wednesday, February 4, 2015

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A Note-able proposition GLOBE Telecom’s new MyLifestyle Plan offers lots of mobile communications goodness with the best-selling Samsung Galaxy Note 4.

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

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NE of the leading wireless communications providers around these parts, Globe Telecom kicked off the new year by rebranding its postpaid offerings to a single, unified subscription plan for a more simplified and, thus, better customer experience. With the new MyLifestyle Plan, priced at P499, new postpaid subscribers will enjoy unlimited calls and texts to other Globe and TM subscribers, and this without the user ever having to key in particular—and particularly confusing—number combinations to enjoy the same, as all that “unli” goodness is already built-in with the new plan.

No doubt, the new Globe MyLifestyle Plan, which the company made available on January 16 and launched during Cebu’s legendary Sinulog Festival, can only further Globe’s leadership in the postpaid landscape.

Of course, there is more to the company’s unified postpaid plan than just unlimited calls and texts to family, friends and acquaintances subscribed to its network. You can top off that basic P499 plan with just the mobile and data add-ons—called “packs”—most suitable to your lifestyle. (You didn’t think Globe called it “MyLifestyle Plan” on a whim, right?) If you typically leverage the Internet on a daily basis, you can choose from a variety of “Surf Packs” that already come with free Spotify and NBA League Pass. From there, you can choose from yet another variety of “Lifestyle Packs” to add to your plan, allowing you to do all the social networking that you want. Finally, you can choose from a range of so-called Classic Packs that give you, for example, unlimited everything to contacts living offshore or subscribed to other networks.

Besides offering a new and simplified postpaid plan that can be easily customized according to one’s lifestyle, Globe is of course also providing a range of desirable smartphones and mobile-gadget bundles to go with the base plan and the added packs. Certainly the most desirable of these gadget offerings is the Samsung Galaxy Note 4, the latest iteration of what started this so-called phablet madness now going around, and which has resoundingly eclipsed the Galaxy S6 as the most compelling offering from the South Korean consumer electronics giant that has been beset by troubles in recent months.

It is easy to see why the Galaxy Note 4 has been better received in the market than Samsung’s flagship

smartphone. As iterations go, the Note 4 improves on its predecessor in ways big and small. As with most Samsung smartphones, the Note 4 is still largely a polycarbonate (read: plastic) affair but it has appropriated the metal rim the company introduced with the Galaxy Alpha. And while the faux-leather textured backing of the Note 3 has been retained, Samsung has chosen—very wisely, we must say—to ditch the equally faux-stitching detail for this latest generation. The metal rim and the textured finish give the Galaxy Note 4 not just a reassuring heft but also a premium feel.

Looking at the Note 4, you would think that Samsung didn’t bump up the high-definition AMOLED display from the previous generation’s—and you’d be right and wrong at the same time. True, the display of the Note 4 still measures 5.7 inches, but fire up the phablet and you’d quickly notice that the company has cranked the display resolution to 2,650x1,440p, up from its older sibling’s 1080p—and even the pixel density has been improved from 386 ppi to 515 ppi. That’s even more pixels than what the iPhone 6 Plus can boast about with its 401 ppi. And while Samsung rival LG’s G3 flagship can brag about having better pixel numbers at 538 ppi, we can say that after jacking up the brightness level on both smartphones, LG’s display looks just a tad dimmer than Samsung’s. Of course, non-Samsung fans would say that the Note 4’s display is blindingly bright, but you know the saying about different folks and different strokes. Needless to say, photos and videos look great on that HD AMOLED screen.

The Galaxy Note 4 that has made its way into Asian markets is powered

by Samsung’s own 64-bit 1.9GHz octa-core Exynos 5433, while other markets are getting it fueled by a 2.7GHz Qualcomm Snapdragon—but don’t let the hard numbers fool you.

The Note 4 we’ve had the pleasure of playing with held up exceptionally well despite throwing at it multiple tasks, this no doubt helped by the 64bit Mali-T760 GPU and 3GB of system RAM. It runs on Google’s muchlauded Android 4.4.4, also known as KitKat, but of course Samsung has assured Note 4 buyers that the phablet is primed and ready to be upgraded to Lollipop (V5.0), the latest and greatest

version of the dominant mobile OS. For those who like to consume and create media while on the go, the Galaxy Note 4 comes with 32GB of user memory built-in, and storage can be supplemented by the microSD card slot to provide 64GB more of space for all those photos and videos the user will be inclined to take with the phablet’s solid and sensational 16MP rear-facing camera with optical image stabilization and LED flash. There is also the secondary, front-facing 3.7MP camera for video conferencing and, yes, all those selfies everybody is inclined to take these days—although Samsung’s camera app has a selfie mode that leverages the more powerful front-16MP shooter, resulting in selfies with much better image quality once you get the hang of it.

To cap this, Globe offers the Samsung Galaxy Note 4 under its MyLifestyle Plan at P2,249 with P800 monthly cash-out for 24 months. The plan offer comes with unlimited calls and texts to Globe, 1.5GB worth of mobile Internet, free access to Instagram, Instasize, Photo Grid and Photo Repost, and monthly consumable for more calls and texts. Visit tinyurl.com/n4xnv5x to know more about the company’s new postpaid offers. ■

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Multimode tablets create a world without boundaries INCONVENIENT security checks and excess baggage weight caused by bulky and heavy gadgets, tray-table constraints, and outlet outage can instantly turn excited travelers into cranky ones during an out-of-town vacation. Fortunately, for those traveling during long holidays, personal technology leader Lenovo has launched a slew of handy, ultraflexible multimode tablets to ease the pain points of traveling with technology.

“Featuring robust performance and extreme portability, Lenovo Yoga Tablet 2 and Lenovo Yoga Tablet 2 Pro defy the norms in traditional tablet design to keep travelers entertained and connected during their vacation. With a thin design, robust processors, and four amazing modes, these new multimode tablets crystalize Lenovo’s commitment to innovation by offering a new way for wired travelers to stay in touch without the usual irks of traveling with technology,” said Michael Ngan, country general manager, Lenovo Philippines.

The Lenovo Yoga Tablet 2 is equipped with 18

hours of battery life, an ergonomic handle, a new and improved kickstand, and four intuitive modes to stay connected while on vacation. Whether browsing through e-books with the Hold mode during a long road trip, doing a video call with other relatives back home with the Stand mode, playing with apps using Tilt mode when in transit, or answering e-mails with the Hang mode at the comfort of one’s hotel room, the Lenovo Yoga Tablet 2 covers travelers’ requirements in a portable form factor that can easily fit into a travel backpack.

In addition, the Lenovo Yoga Tablet 2 also has a high-definition 8MP rear camera so travelers can instantly capture fond memories and amazing sights wherever they are. Lenovo Yoga Tablet 2 also sports a dual band Wi-Fi and a microUSB with OTG connection that allows users to charge their phones with a separate cable on the go to stay connected while traveling.

Meanwhile, the Lenovo Yoga Tablet 2 Pro has a built-in Pico projector that projects up to a 50-inch display on any wall or ceiling, instantly transforming any ordinary hotel room or train compartment into a mini-theater.

With an incredible 8W sound system featuring JBL twin front-facing speakers, 5W bass subwoofer, Dolby surround sound, and a dazzling Quad High Definition screen with 2560x1440 resolution, travelers won’t have to groan when they need to endure 19-hour train journeys or car rides.

Like the Lenovo Yoga Tablet 2, Lenovo Yoga Tablet 2 Pro also features Hold, Tilt, Stand and Hang modes, allowing travelers to work, play, and connect with relatives back home while on vacation.

life

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megaworld’s 47-story residential tower is on schedule HOPPLER MAKES PROPERTY SEARCHING A BREEZE

BusinessMirror

Wednesday, February 4, 2015 • Editor: Tet Andolong

D1 |

B R R R

NOBLE Place is conveniently tucked into the corner of Juan Luna and Dasmariñas Streets.

TOWER IS ON SCHEDULE

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EGAWORLD, the country’s leading realestate developer, recently shared that the construction of Noble Place, the latest residential condominium project in Binondo Chinatown, is now in full swing and will be completed as scheduled.

THE gym is adjacent to the spa and sauna.

with a total of 460 units. Each unit, ranging from two-bedroom to fivebedroom, will have its own balcony to enjoy the magnificent view of Metro Manila. For students and investors, the studio and one-bedroom units are also available.

Residents also are ushered to these spacious units by five highspeed passenger elevators, aside from the one intended for cargo.

“This residential development gradually reinvents the old and traditional image of Binondo Chinatown into a vibrant modern metropolis by ushering new upscale developments within the area,” Sy said.

Noble Place brings a distinct, elegant style of luxury with worldclass facilities, amenities and design, which Megaworld has always been known for. It rises above the rest by providing residents a magnificent view of the Intramuros golf course, as well as a 360-degree perspective of the entire Metro Manila skyline.

The building’s eighth floor caters

THE Skygarden

The company has commissioned the Yuchengco-owned EEI Corp., one of the country’s leading triple “A” construction companies, to build the Noble Place and to assure the future residents and investors of a safe turnover of the project, which is expected to be completed by first quarter of 2017.

“The project is on schedule. The

foundation is already done and the contractor is already starting the construction of the residential tower,” said Wilson Sy, head of sales and marketing, Chinatown group, Megaworld.

The P4.5-billion residential project of Megaworld will rise as a 47-story modern edifice beside the famous heritage buildings of old Chinatown

to the various recreational interests of unit owners. There is an infinity pool for health buffs, tai-chi and picnic areas for those who simply want peaceful relaxation, and a clubhouse and tent pavilion for hosting parties and gatherings. To get a glimpse of a breathtaking view of the Metro, the viewing deck on the 47th floor is the perfect spot, where a badminton court is also located.

Noble Place will also have exclusive Skygardens on the 16th and 26th floors, while a variety of boutiques, coffee shops and salons on the ground floor will surely please sophisticated shoppers.

Boasting of its location at the heart of Manila—specifically at the corner of Juan Luna and Dasmariñas streets, Noble Place prides itself on the multitude of nearby landmarks, as well as easy access to all commercial and educational institutions of Manila. It is also in close proximity to the Chinese schools, universities and offices. It

is also a walking distance to several restaurants, shops, malls, banks, financial institutions, travel agencies and churches.

“Businessmen and investors will benefit from the property’s convenient 30-minute distance to the Ninoy Aquino International Airport,” Sy said. “Living in Chinatown will eventually be as seamless as living in Eastwood City, Forbes Town Center, Newport City and McKinley Hill.”

Since Binondo is one of the few places that have stood steadfast despite the rise of new central business districts, finance and commercial hubs around Metro Manila.

The company is also committed to protecting national heritage sites, Megaworld will also be actively part of the rehabilitation of Plaza Cervantes.

“We are committed to bringing the old glory of Binondo with the restoration of their historical street,” Sy stated.

Suntrust kicks off construction of Micaela house model

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UNTRUST Properties Inc. (SPI) recently broke ground for the new addition to the array of model houses in Suntrust Verona, the company’s Italian-inspired community in Silang-Santa Rosa.

SPI Vice President for Sales Operations and Training Nelda O. San Jose led the groundbreaking ceremony for Micaela—which means “gift from God” in Italian—together with Suntrust Senior Training Manager Cezar Cruz, Senior Sales Manager Ruby Gemma Cecilio, Senior Marketing Manager Christine Bellen, Laguna Assistant Project Manager Engr. Simon Pelegrino, and Assistant Marketing Manager Grace Credo.

Stellars sales division head (SDH) Arnel Malabayabas, The

Pillars SDH Rizal Puno, AGS SDH Dominador Ogang and CEO SDH Elisa Borrega also graced the event.

Micaela is the eighth two-story model unit of Suntrust Verona.

With a lot area and a floor area of 176 square meters and 178.70

sq m, respectively, the single-detached house has enough space for four bedrooms, a family area and a garage that can fit two cars.

Residents will also have the privilege of having a terrace where they can indulge in al-fresco din-

tached Orabella, which also has an entertainment room on the ground floor and a family area on the second floor. All house models are designed to let in more air, treating future residents to 365 days of cool climate rendered by Suntrust Verona’s strategic location near Tagaytay City.

Named after the Italian City of Verona, the setting of William Shakespeare’s tragic romance Romeo and Juliet and dubbed as the City of Love, the community features impressive Italian-themed structures such as the dazzling Fontana di Venere and the sales pavilion, Casa di Giulietta (House of Juliet), patterned after the original architecture found in Verona, Italy. www.suntrust.com.ph

ECHNOLOGY plays an important role in the property sector nowadays, especially when the industry is enjoying a good time.

With a company like Hoppler, people engaged in the industry can be faster and more efficient in searching, buying, selling, renting, managing and brokering properties.

Ramon Ballesca Jr., chief operating officer of Hoppler, said the company maximizes the role of the Internet in helping their partners and clients conduct their transactions faster. “Hoppler is a tool for getting groups together, namely, property owners and brokers, who we refer to as our partner-agents. We want to help our partners grow, so we can grow with them,” Ballesca said in a recent interview.

Being a user-friendly web site, Ballesca said a searcher just needs to enter the area, city or building that he is interested in. For instance, if a searcher is looking for a house in Makati City, he initially needs to go to the search panel and type in the city of his choice. After choosing the city, he needs to enter what kind of house he or she is looking for, such as a condominium or house and lot. To make it easier, Hoppler has included three criteria—price, floor size and number of bedrooms.

Further, Ballesca said Hoppler gives more options by including in the search other information, such as presence of maid’s room, garden and swimming pool, among others.

He stressed that Hoppler’s search engine is so powerful that it enables a user to choose more options than any site in the Philippines. It also shows landmarks, such as the nearest restaurants, cinemas and hospitals, just to name a few. In case it is a Philippine Economic Zone Authorityaccredited property, there is a flag indicating it as such.

Ballesca said Hoppler’s infrastructure was designed precisely to make searching and loading results happen faster than any site in the country. Moreover, he said, Hoppler can easily be accessed and viewed on mobile phones. “We plan to launch an app for mobile phones this year,” he added.

Before admitting a broker, Ballesca said Hoppler reviews the application and evaluates his or her performance in the industry. He said they will also check the agent’s choice of assignment if it’s already saturated by existing Hoppler partners.

If an applicant is qualified and accepted, Hoppler will assign a Hoppler services team representative or an account manager to work with, mentor the agent for the long run, and help close deals in the most efficient and effective way possible. “We also don’t encourage our partneragent to leave his current brokerage firm,” Ballesca said.

The company charges a commission on the gross amount of the rental or sale price of the home, just like all other brokerage companies in the Philippines.

Hoppler features properties in the Greater Metro Manila Area in the Philippines, including Makati City, Bonifacio Global City, Alabang, Ortigas, Quezon City, etc. “We are planning to expand to other regions in the Philippines in 2015,” he said.

Hoppler, which went live in April of 2014, is managed by HousingInteractive, the country’s largest online real-estate brokerage firm established in 2004 by its CEO, John Riad.

Further, it received a P30-million investment from entrepreneurs based in Silicon Valley. Other investor in the company is Francor.

It has the most comprehensive database of choice properties, a long list of top buyers and sellers, and the largest network of the finest brokers in the country. It has more than 500 brokers as partners.

property

ing and a balcony, where they can savor the cool breeze.

People can choose from seven other house models that include three-bedroom, duplex-type Mariella and the spacious three-bedroom and two-story single-de-

By Cai U. Ordinario

World

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The

B3-1 | Wednesday, February 4, 2015 • Editor: Lyn Resurreccion

DePaul university student alaa Hejazi, from Riyadh, Saudi arabia, shoots a selfie with her very first snowman on February 2 in Chicago’s Millennium Park. The National Weather Service said that the 19.3 inches of snow in Chicago was the fifth highest snowfall total since records started being kept in the late 1800s. AP/ChArles rex ArbogAst

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mulations up to 46 centimeters to the greater Boston area and up to a foot 30 centimeters of slushy wintry mix to Hartford, Connecticut, Providence, Rhode Island, southern New Hampshire and Vermont—places still reeling from the up to 90 centimeters they got last week.

More than 20 counties in New York state were under a winter storm warning, with up to 40 centimeters forecast for some areas.

The National Weather Service issued a “flash freeze” warning for New York City and Long Island.

Similar warnings were out for Philadelphia and up the coast to Maine as temperatures dropped, freezing roads already slick with snow and slush.

Rush-hour commuters in New York City were stranded on a packed subway train that lost power for two-anda-half hours on Monday before it could be towed to a station. Five other trains were stuck behind it.

Boston Mayor Marty Walsh canceled school for a second day and urged drivers to stay off the roads so

workers could clear away snow for a downtown parade honoring the New England Patriots for their fourth Super Bowl win.

The parade had been set for Tuesday morning, but late Monday, Walsh announced that it would be postponed until Wednesday morning to buy the city some time.

The storm delayed two of the nation’s biggest court cases—the murder trial of former New England Patriots star Aaron Hernandez and jury selection in the federal death penalty trial of Boston Marathon bombing suspect Dzhokhar Tsarnaev.

Monday was also Groundhog Day. The handlers of Pennsylvania’s most famous groundhog, Punxsutawney Phil, said the furry rodent forecast six more weeks of winter.

Members of the top hat-wearing Inner Circle announced the “prediction” on Monday morning.

Legend has it that if Phil sees his shadow on February 2, winter will last another six weeks. If not, spring comes early. AP

Modi taps $19-B fund as he chases China

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ndIA is ratcheting up the pressure on state-controlled companies to spend their hoards of cash.

Businesses, such as Coal India Ltd., have been told to step up outlays on major investments to boost the economy, two government officials with knowledge of the matter said, asking not to be identified as the push is not public. The pace of such capital expenditure will be reviewed more frequently, they said.

Five state companies alone— Coal India, Oil & natural Gas Corp., nTPC Ltd., nMdC Ltd. and Bharat Heavy Electricals Ltd.—are sitting on about $19 billion of cash and its equivalents, according to exchange filings. That amounts to 1 percent of Indian gross domestic product, funds that could help Prime Minister narendra Modi build on last week’s surprisingly sharp upward revision to India’s economic growth.

RaNDy PeRDoMo (left) and Fidel Castro on January 23.

CubAdebAte

“The government wants us to invest more,” dinesh Kumar Sarraf, the chairman of OnGC, India’s biggest energy explorer, said in a January 29 interview from new delhi.

That includes an effort to “acquire more assets,” he said.

Modi is trying to foster spending on projects, such as mines and power plants, to bolster development.

The Statistics Ministry last week revised Indian expansion in the year through March 2014 unexpectedly steeply to 6.9 percent from 4.7 percent after changing the method used to work out the data.

That gives Modi a platform to take the pace above China, whose economy grew 7.4 percent in 2014, although some economists—such as Morgan Stanley’s Chetan Ahya— have questioned the quality of India’s data.

State-controlled companies have

Continued on A2

been told to explore options such as domestic and overseas asset purchases, joint ventures with other government companies and publicprivate partnerships to step up investment, the two officials said. d.S. Malik, a spokesman for the Finance Ministry, did not answer a call to his mobile phone seeking comment.

Kulamani Biswal, the finance director of new delhi-based power generator nTPC, said the company plans “aggressive” investment of about 250 billion rupees ($4 billion) annually for the next five years. Calls to Bharat Heavy and nMdC seeking comment weren’t immediately answered.

Coal India, OnGC, nTPC, nMdC and Bharat Heavy had 1.16 trillion rupees of cash or cash equivalents as of the end of September last year, exchange filings show. Bloomberg News

Obama sends $4-T budget to US Congress

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ASHINGTON—President Barack Obama set up another clash with Republicans by sending Congress a $4-trillion budget that seeks to raise taxes on wealthier Americans and corporations and increase domestic spending.

In a message accompanying the massive budget books on Monday, Obama said his proposals are “practical, not partisan.”

But even before the books were delivered, Republicans found plenty to criticize in tax hikes totaling $2 trillion.

“The president is advocating more spending, more taxes and more debt,” House of Representatives Speaker John Boehner said.

“A proposal that never balances is not a serious plan for America’s fiscal future.”

The annual budget proposals are more like wish lists than initiatives soon to become law. Congress is now fully controlled by Republicans who oppose Obama’s proposals. And the budget resolutions eventually approved by Congress would be nonbinding.

But budgets influence the spending bills that determine how much Americans will be taxed and how government programs will be funded.

Obama’s proposal on Monday puts into relief the divisions in Washington. Obama maintains that the US economy has improved enough to raise some taxes and increase spending to help Americans who haven’t benefited from the recovery.

Republicans say Obama’s pro-

Cuba publishes first photos of Fidel Castro in 5 months

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AVAnA—Cuba has published the first photos of Fidel Castro in five months, showing the 88-year-old former leader engaged in conversation with a university student.

Ten photos of Castro appear on the web site Cubadebate.

In the images, Castro is seated and discussing current events with the

head of the main Cuban student union.

A first-person account by studentleader Randy Perdomo Garcia says the meeting took place on January 23.

The photos published around midnight on Monday are the first images of the revolutionary leader since a set of photos came out in August showing him talking with Venezuelan President nicolas Maduro. AP

posals would threaten the recovery and the focus should be on eliminating the budget deficit.

Those differences are likely to be the core of the political debate during the final two years of Obama’s presidency and could carry over into the 2016 race to elect Obama’s successor.

Boehner and other Republican leaders said that the budget they produce this spring will achieve balance within 10 years, curb the explosive growth of government benefit programs and reform the loophole-cluttered tax code.

In a lengthy run-up to Monday’s budget release, the Obama administration said its budget represented a strategy to strengthen the middle class and help “hard-working families get ahead in a time of relentless economic and technological change.”

The budget emphasizes the same themes as Obama’s State of the Union address last month, when he challenged Congress to work with him on narrowing the income gap between the very wealthy and everyone else.

The new budget offers an array of spending programs and tax increases on the wealthy that Republican lawmakers have already rejected. But it puts Republicans in the politically awkward

position of rejecting tax cuts for middle-class families.

The president also wants to give a huge boost to spending on infrastructure, funded by a onetime tax on profits US companies have amassed overseas.

Obama would ease tight budget constraints imposed on the military and domestic programs back in 2011, when attempts at a bipartisan budget deal failed.

His budget will propose easing those painful, automatic cuts to the military and domestic agencies with a 7-percent increase in annual appropriations.

Many Republicans support the extra military spending but oppose increased domestic spending. Republicans control both houses of Congress for the first time in Obama’s presidency.

Obama’s fiscal blueprint, for the budget year that begins on October 1, would leave a deficit of $474 billion. Obama’s budget plan never reaches balance over the next decade and projects the deficit would rise to $687 billion in 2025.

The administration contends that various spending cuts and tax increases would trim the deficits by about $1.8 trillion over the next decade, leaving the deficit at manageable levels. AP

‘Greek impasse risk to world economy’

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ONDON—Britain’s Treasury chief warned that the standoff between Greece and the euro zone over the country’s bailout is endangering the global economy, urging the new government in Athens to act responsibly.

George Osborne characterized his talks with Greece’s new Finance Minister Yanis Varoufakis on Monday as “constructive,” but cautioned that now was the time to “choose competence over chaos.”

He urged the euro-zone countries to come up with a better plan for jobs and growth in Greece.

“It’s clear that the standoff between Greece and the euro zone is fast becoming the biggest risk to the global economy, and it’s a rising threat to our economy at home,” Osborne said.

Greece’s radical left Syriza party won parliamentary elections last week, alarming investors and euro-zone governments.

Party leader and new Prime Minister Alexis Tsipras has said he wants to end years of budget austerity that euro-zone countries and the International Monetary Fund had required in exchange for €240 billion ($270 billion) in rescue loans. AP

world

Ambassador Antonio L. Cabangon Chua (from left), chairman emeritus of the ALC Group of Companies and founder of the BusinessMirror; Bangko Sentral ng Pilipinas Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo; BusinessMirror Editor in Chief Jun Vallecera; and BusinessMirror President Benjamin Ramos chat briefly before the start of the ALC Media Group’s forum, dubbed as “The Roundtable,” held in its office in Makati City. ROY DOMINGO

NEDA ADMITS REFORMS STILL LACKING ‘Consistent high growth not

BusinessMirror

OSTON—Boston scrambled to dig out on Monday from the second major winter storm in a week and delayed a celebratory Super Bowl parade, and forecasters from Philadelphia to Portland, Maine, warned that “flash freezing” could make roads dangerously slippery.

Officials said a Massachusetts woman was run over and killed by a snowplow, and New York state police said two people were killed in a multivehicle crash on an interstate highway in Rye. Officials in Ohio, where the storm hit before slamming into the Northeast, said a Toledo police officer died of an apparent heart attack while shoveling snow in his driveway on Sunday.

Toledo Mayor D. Michael Collins was heavily sedated and in critical condition on Monday, a day after he went into cardiac arrest and his SUV crashed into a pole on his way home not long after a news conference.

The snowstorm, which dumped more than 48 centimeters of snow on Chicago, deepened off the southern New England coast, bringing accu-

he Bangko Sentral ng Pilipinas (BSP) validated yet again the view that inflation, which has consistently trended lower since 2008, is to slow even more this year and next, at a rate ranging only from 2 percent to 4 percent, instead of 3 percent to 5 percent as revealed earlier.

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obama sends $4-T budget to u.s. congress

Northeast US gets its 2nd major workday snowstorm in a week

By Bianca Cuaresma

The Cabinet-level Development Budget Coordination Committee (DBCC) formalized the adoption of the scaled-back inflation target to highlight the receding risk that the rate of change in prices has moderated in recent months, and likely to stay that way over the policy horizon.

“The current 2- to 4-percentage-point fixed annual target for 2015 and 2016 set by the government remains well attuned to the dynamics of the Philippine economy. In particular, this target is consistent with the country’s economic growth

BALLESCA

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MEGAWORLD’S 47-STORY RESIDENTIAL

P25.00 nationwide | 7 sections 32 pages | 7 days a week

BSP lowers inflation target

a note-able proposition EAR Father, the world was created for Your glory, who wished to show forth and communicate His goodness, truth and beauty.

The ultimate end of creation is You in Christ, might be “all in all” (1 Corinthians 15:28) for Your glory and for our happiness. We are one to proclaim Your glory.

Amen.

TfridayNovember 18, 2014 Vol.Vol. 10 No. 40 Wednesday, February 4, 2015 10 No. 118

GUINIGUNDO SAYS SCALED-BACK TARGET OF 2% TO 4% ALREADY FACTORED IN OIL RETURNING TO $100

INSIDE

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f t e r three decades of implementing structural reforms, the National Economic and Development Authority (Neda) admitted that the government needs to do more to achieve inclusive growth.

In his speech at the recent Apec New Strategy for Structural Reform Workshop, Neda Director General and Socioeconomic Planning Secretary Arsenio M. Balisacan noted that the Philippines has been implementing structural reforms since the late 1980s.

PESO exchange rates n US 44.1910

“But the task is far from complete. Inclusivity of growth remains a work in progress,” Balisacan said. “ We say that the task is far from complete, because the employment and poverty picture still leaves a lot to be desired. Let me clarify, however, that growth has improved the country’s employment and poverty situation.”

Balisacan said, in terms of jobs, 2.4 million Filipinos are still unemployed and 7.3 million are looking for better jobs or more hours of work.

Further, employment in labor-intensive sectors, such as industry and agriculture, remained low or declin-

ing over a period of 30 years.

Balisacan said the industry sector’s contribution to total employment only grew to 15 percent in 2010 to 2013, from 14 percent in 1980 to 1984. The share of the agriculture sector in total employment, on the other hand, dropped to 32 percent in the same period, from 52 percent in 1980 to 1984.

In terms of poverty, Balisacan said that the proportion of the poor decreased by 3 percentage points in just one year. However, poverty incidence was still high, at 24.9 percent in 2013.

Continued on A2

a product of freak accident’

By Cai U. Ordinario

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he Bangko Sentral ng Pilipinas (BSP) on Tuesday ruled out a freak occurrence, and credited the country’s recent economic successes to its willingness to adopt and institutionalize structural and policy reforms that made possible 64 consecutive quarters of economic expansion.

In an exclusive presentation for the BusinessMirror, BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said the government has implemented decades-long

structural reforms, helping make high economic growth possible.

“We worked hard in bringing this about for the last 20 years, and this is something that, perhaps, not many people know,” Guinigundo said. “In the last 20 years, we worked hard; we worked hard not only through Congress, but also the Executive branch, in earning all of those important structural and policy reforms, and today we are seeing the [gains].”

Guinigundo said major structural reforms began in 1993 with the Continued on A8

n japan 0.3760 n UK 66.4147 n HK 5.7005 n CHINA 7.0596 n singapore 32.7050 n australia 34.3418 n EU 50.0905 n SAUDI arabia 11.7560 Source: BSP (3 February 2015)

A2

Wednesday, February 4, 2015

News BusinessMirror

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BSP lowers inflation target Continued from A1

NEDA ADMITS REFORMS STILL LACKING Balisacan said the Apec provides a venue for member-economies to interact and learn about best practices, as well a s forge pa r t nersh ips t h at w i l l be mutually beneficial.

The Neda chief also said that the Apec can provide a platform for deeper regulatory reform, which is needed in attaining sustainable and inclusive economic growth.

“As our reform agenda in the 1980s have shown, these things take time and even longer to demonstrate positive results. Therefore, it is quite difficult to muster political support for reform.

The Apec, however, can encourage this, perhaps through a program of regulatory cooperation or by providing technical assistance to improve the efficiency and effectiveness of regulations,” Balisacan said.

The Neda will host four other related meetings of the Apec First Senior Officials’ Meeting from January 31 to February 7 in Clark Freeport Zone, Pampanga.

Continued from A1

Balisacan said there is a need for a comprehensive package to harness synergy and complementarity of reform components.

He added that there should be massive investment in technology, and physical and human capital to level the playing field and equalize opportunities.

The Neda chief also called for improvements in social protection, insurance and safety nets.

“The task is far from over. We need to generate more quality employment; quite a significant number of Filipinos needs to be taken out of poverty. And we want the gains sustained,” Balisacan said.

Apart from addressing these concerns and sustaining gains on the domestic front, Balisacan said deeper and broader structural reform can be attained through international cooperation, such as through the Asia-Pacific Economic Cooperation (Apec).

objective of 7 [percent] to 8 percent for both years,” the central bank said in a statement.

According to the BSP, structural changes in the country’s inflation dynamics and the improvements in the economy’s productive capacity or potential support a low inflation environment down the line.

BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said the low inflation target set by the DBCC of 2 percent to 4 percent should remain valid until 2018. Guinigundo bared the central bank’s four-year inflation outlook at a discussion with the BusinessMirror on Tuesday when he said the series of structural and policy reforms adopted since 1993 have made possible a high-growth, low-inflation environment possible for the $270-billion economy.

“Are we not afraid to set a very low target?

No we are not. That is a deliberate decision of the Monetary Board,” Guinigundo said.

The deputy governor also said the likelihood of a steep reversal in the price of oil that continues to fall even now has already been factored in the scaled-back inflation target for the next three or four year.

Guinigundo said that they have penciled in prices returning to their previous rates so even if crude oil hits $80 to $100 per barrel, inflation should still be within target.

According to Guinigundo, the impact of

had required. The government quickly froze privatization plans and reversed previous reforms.

“After a very rocky start last week, the new Greek government is faring better this week,” Berenberg Bank analyst Holger Schmieding wrote in an e-mail.

“The charm offensive of the new finance

FEBRUARY 4, 2015 | WEDNESDAY

Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rain showers.

FEB 5 THURSDAY

minister Varoufakis seems to be paying off in financial markets.”

The suggested bond swap would considerably ease Greece’s debt burden. It would also prove a softer sell to taxpayers in Germany, the Netherlands and others among Greece’s European creditors whose governments are aghast at previous calls from Athens for most

FEB 6 FRIDAY

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NORTHEAST MONSOON AFFECTING LUZON AND EASTERN VISAYAS. (AS OF FEBRUARY 3, 5:00 PM)

BAGUIO

LAOAG CITY 19 – 30°C

TUGUEGARAO CITY 19 – 28°C

BAGUIO CITY 11 – 20°C

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SBMA/CLARK 21 – 30°C METRO MANILA 19 – 30°C

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LEGAZPI ILOILO/ BACOLOD 24 – 30°C METRO CEBU 24 – 29°C

TACLOBAN CITY 23 – 29°C

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ZAMBOANGA CITY 24 – 32°C

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Cloudy skies with rain showers and/or thunderstorms Light rains

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SABAH

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

7:09 PM

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

METRO DAVAO 23 – 30°C

ZAMBOANGA

19 – 28°C

LEGAZPI CITY 24 – 29°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

of its debt to be forgiven.

JPMorgan Chase Bank analyst Malcom Barr said the comments indicate a softening in Greece’s position. In particular, the government is admitting it may not deliver on all its pre-election promises.

However, he warned that Greece and its creditors remain far apart. AP

METRO MANILA

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to expand as the reforms were institutionalized and made permanent.

As a result, businesses needed far fewer capital to produce far bigger profits than had been achieved before the reforms were institutionalized as can be validated by the so-called incremental capital-output ratio that progressively improved from 9.5 percent over a four-year period ending 1992, to 6.4 percent in the period ending 2001, to only 4.2 percent in the period ending 2009, and finally to 3.3 percent in the period ending third quarter of 2014.

The declining incremental capital-output ratio validates in very concrete terms that the Philippines has attained a high-level economic efficiency for the least amount of capital invested, Guinigundo explained.

The central bank, whose primary mandate is to keep inflation in check, has managed to keep inflation within the target the past six years. Last year there was apprehension of above-target inflation beyond the 3-percent to 5-percent parameter the monetary authorities drew for the period.

As a result, measures were put in place to dampen inflation pressures including mopping up excess liquidity through higher special deposit account rates and deposit reserve ratios and adjustments in the BSP’s overnight rates. As a result, inflation pushed no higher last year than 4.9 percent posted in July to August period last year.

Markets. . . Continued from A8

3-DAY EXTENDED FORECAST

TODAY’S WEATHER

oil on inflation is roughly 0.03 percentage points per $1 increase in the price of oil per barrel. As of Tuesday’s data, West Texas Intermediate oil costs $49.57 per barrel. If prices go back to the $85 per barrel level, inflation would likely rise one percentage point higher. Latest data from the central bank show that inflation as of December 2014 averaging 2.7 percent. An additional one-percentage-point hike due to the reversal of oil should still result in a within-target inflation of 3.7 percent, barring unforeseen developments, as per BSP data simulation.

“The current 2 to 4 percentage point fixed annual target for 2015 to 2016 set by the government remains well attuned to the dynamics of the Philippine economy. In particular, this target is consistent with the country’s economic growth objective of 7 [percent] to 8 percent for both years,” the central bank said.

The central bank also said the structural changes in the country’s inflation dynamics and the improvements in the economy’s productive capacity support a low inflation environment.

Guingundo said the series of reforms starting with the creation of an independent BSP followed by the entry of more foreign bank competition, the deregulation in the oil, power and telecommunications industry, the adoption of an expanded value-added tax regime, risk-based bank supervision and many others helped allow the country

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Smartmatic set to start work on Pcos machines

By Joel R. San Juan

T

HE Com m i ssion on Elections (Comelec) on Tueday announced that technology provider Smartmatic-Total Information Management (TIM) will proceed with the diagnosis of the 82,000 Precinct Count Optical Scan (Pcos) machines without an order from the Supreme Court enjoining it.

SC Spokesman Theodore Te said the Court ordered the Comelec and Smartmatic to respond within 10 days to the consolidated petitions seeking to stop the Comelec from awarding any contract to Smarmatic relating to the conduct of the elections in 2016.

Te told reporters that during the Court’s regular en banc session on Tuesday, the justices ordered the consolidation of the petitions filed by the Citizens for Clean and Credible Elections (C3E) et al v Comelec and Bishop Broderick Pabillo et al v Comelec.

Meanwhile, now retired Comelec Chairman Sixto Brillantes disclosed that Smartmatic has agreed to start the diagnosis of the voting machines within the week.

Brillantes said the the diagnostics will commence with the inspection and inventory of the entire 82,000 Pcos machines presently warehoused in Laguna.

After the diagnostic examination, Brillantes said Smartmatic will start with the repairs, as well as replacement of units, if needed.

The whole process, he said, will take about five months.

The Comelec opted to tap Smartmatic to conduct diagnostic of the Pcos machines despite strong opposition from various groups.

Petitions filed before the Court sought the nullification of Comelec Resolution 9922 for having been issued with grave abuse of discretion.

The said resolution awarded to Smartmatic the contract for the diagnosis and minor repair services for the more than 80,000 Pcos machines to be used in 2016 elections.

Mindanao blasts hurt 4

F

OUR persons were wounded in separate explosions in Basilan and Sultan Kudarat on Tuesday, police and military officials said.

Reports reaching the Armed Forces General Headquarters in Camp Gen. Emilio Aguinaldo, Quezon City, said Hamirun Mingkong, 47, of Sitio Baag, Barangay Guiong, Sumisip, Basilan, was wounded after a homemade bomb exploded at around 8:30 a.m.

Mingkong, who sustained wounds in the different parts of his body, was on his way to harvest rubber tree when the explosion happened.

Authorities are still investigating the incident.

Nearly three hours later, a hand grenade exploded inside the public market in Isulan, Sultan Kudarat, wounding three persons.

Senior Insp. Aldrin Gonzales, spokesman for the Central Mindanao police command, identified the victims as Maylene Vargas, Abraham Bandal and Raheb Pangelaton Dimaluloy Gonzales said Dimaluloy was also the suspect behind the explosion. Rene Acosta

Editor: Dionisio L. Pelayo • Wednesday, February 4, 2015 A3

MILF leaders do not control fighters–Agfo

T

By Rene Acosta

HE ambush-killing of 44 police commandos in Maguindanao only showed that the leadership of the Moro Islamic Liberation Front (MILF) exercised no control over its men and, therefore, the government must tread seriously in its peace agreement with the separatist group, a retired and active military and police generals said on Tuesday.

“What we are seeing there is they have no control over their men, weak command and control, and this is the reason it has happened,” retired Lt. Gen. Edilberto Adan, president of the Association of Generals and Flag Officers (Agfo), said.

The 800-strong Agfo issued a manifesto calling for the investigation of the ambush, filing of charges against those involved, and the declaration and observance of national mourning for the killed members of the Special Action Force (SAF).

The Philippine National Police Academy (PNPA) Alumni Association Inc. also asked its 4,000 members to observe a 40-day mourning for the fallen commandos by wearing black arm bands.

Through its chairman, retired Chief Supt. Tomas Rentoy III, the association also asked its active members in the police service to simultaneously file a five-day leave of absence in protest to the slow or weak response of the government to the massacre.

Six of the seven officers who died in the ambush were PNPA graduates.

Adan said there was no reason for the MILF to kill the policemen, more so that it was observing a cease-fire with the government.

“At our end in Agfo, we see no justification whatsoever for them to kill the policemen, for them to destroy the police forces,” he said.

Adan and the Agfo support the investigation that is currently being conducted by the National Police’s Board of Inquiry (BOI), which should determine the involved forces of the MILF and their commanders, and after they were identified, the MILF should turn them over.

If the MILF refuses to surrender its men, then action should be taken, including filing charges against the leadership of the MILF. “They should be held accountable...the government should use all means to arrest the perpetrators,” Adan said.

No to Aquino appointees in probe body

VICE President Jejomar C. Binay on Tuesday said members of the proposed Independent FactFinding Commission on the Mamasapano Massacre should not be appointed by President Aquino to remove doubts on the impartiality of its members.

He said a search committee to be led by the Integrated Bar of the Philippines (IBP) should choose the members instead.

“While the creation of the body is an important first step in finding out what really happened and to determine accountability, we need to remove any doubt about the impartiality of its members,” Binay said.

“Having the members appointed by the President as proposed by several pro-administration senators will certainly cast doubts on their impartiality,” he added.

Binay said he supports any move that will uncover the truth on the Mamasapano carnage.

However, he also warned that having the members of the factfinding body appointed by the President would only lead to speculations of a whitewash.

“It could fuel speculations that the investigation will lead to a whitewash, even before the probe has started. We need to ensure that the investigating body, from the start, is seen as an independent body,” he said.

Aside from proposing that the IBP, the country’s major lawyers’ group, lead the search committee, Binay suggested that the members of the fact-finding body include former chief justices of the Supreme Court, leaders of Church and religious groups, and eminent personalities.

DOJ probe

JUSTICE Secretary Leila de Lima confirmed on Tuesday that President Aquino has directed the Department of Jus-

Kakilala assumes command of military’s psy-ops unit

A

VETERAN communist hunter is poised to take over the command of the military’s Civil Relations Service (CRS), following the transfer of the unit’s former commander to the Army’s Second Infantry “Jungle Fighter” Division (2ID) based in Tanay, Rizal.

Brig. Gen. Joselito Kakilala, member of the Philippine Military Academy (PMA) Class of 1984 and currently chief of the Armed Forces Office for Strategic Studies, is set to assume as CRS commander, replacing Brig.

Romeo Gan. Gan assumed on Tuesday as the commander of the 2ID following the retirement of Maj. Gen. Rodelio Santos.

The Army commander, Lt. Gen. Hernando Iriberri, presided over the installation of Gan, member of PMA Class of 1983. The assignment paves the way for Gan’s second star.

During his stint as CRS commander, Gan actively supported projects in line with disaster preparedness and awareness, empowerment of indigenous communities and the role of the youth in nationbuilding.

Before becoming CRS commander, Gan was the deputy commander of the Sixth Infantry “Kampilan” Division based at Camp Siongco in Awang, Maguindanao.

With the expected assumption of Kakilala to the leadership of the CRS, soldiers said the unit is expected take a more active role in the pursuit of the military part of its mission.

Officers described Kakilala as one of the best operations commanders of the military as shown by his accomplishments.

“He is a visionary and a master of intelligence and operations. Once he trains his eyes on an objective, you can be sure that it will be done,” one officer said.

tice (DOJ) to create a fact-finding team that would undertake a case buildup for the purpose of filing criminal charges against Moro rebels involved in the killing of 44 members of the elite National Police’s SAF in Mamasapano, Maguindanao, on January 25.

De Lima also denied reports saying that the DOJ is now ready to file charges against certain individuals in connection with the incident.

She said the investigation team will be composed of state prosecutors and other lawyers under the DOJ National Prosecution Service and investigators from the National Bureau of Investigation (NBI).

De Lima added that the investigation panel will closely coordinate with the National Police and with the BOI, which was tasked to determine the circumstances and facts that lead to the death of the 44 SAF commandos.

“We will not be precluded also from gathering evidence so as to help in the case buildup. So, the reports that we are already to file charges against certain personalities, I don’t know where it is coming from,” de Lima said.

Espina to MILF: Return weapons

DEPUTY Director General Leonardo Espina, National Police officer in charge, called on the MILF “to at

least show sincerity in its peace talks with the government by returning the equipment of the killed police commandos.”

Espina echoed the persistent calls on the Moro group to turn over the firearms and other fighting equipment of the 44 SAF commandos who were ambushed by a joint group of the MILF and its breakaway group Bangsamoro Islamic Freedom Fighters (BIFF).

Killing the commandos did not only increase the stock of powerful weapons of the MILF and the BIFF, but even gave them the capability to wage night battle as some had feared.

The gunmen did not only strip the killed policemen of their state-ofthe-art automatic weapons, but even took their night-fighting equipment, including night-vision goggles.

“The government must not only demand for the return of the firearms, but even those night-fighting equipment,” one soldier said.

He said the firearms could be easily replaced, but not the night-fighting gear, which only elite soldiers and specialized police units such as the SAF have.

Having such special combat equipment, he said, the MILF could improve its tactical capability, by now allowing its fighters to operate against the government during nighttime.

“It’s hard to imagine what they can

do with those pieces of equipment,” the soldier said.

No cover-up–Palace

MALACAÑANG vowed to ensure that there would be no cover-up in the simulaneous inquiries being mounted to determine the facts and identify the perpetrators behind the SAF massacre.

“A n y i n v e s t i g a t i v e b o d y, whether it’s the [National Police] Board of Inquiry, the Senate or the House, should really seek the truth. That’s the minimum requirement,” Palace Spokesman Edwin Lacierda said.

Lacierda also confirmed that the DOJ is already buidling up a case against the perpetrators.

In a separate briefing, Communications Secretary Herminio B. Coloma Jr. told Palace reporters that the Office of the President had taken note of bills filed in Congress proposing the creation of a fact-finding commission, or a so-called Mamasapano Truth Commission.

“Whatever independent body that may be formed by Congress would find the relevant information that are now being gathered by the following bodies, namely, the National Police Board of Inquiry, the International Monitoring Team and the Coordinating Committee on the Cessation of Hostilities, as useful reference for its work,” Coloma said.

With Recto Mercene, Joel San Juan, Butch Fernandez

Economy

A4 Wednesday, February 4, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

SC gives green light for 600-MW Subic power plant project

T

By Joel R. San Juan

HE Supreme Court (SC) gave the green light on Tuesday for the 600-megawatt coal-fired power-plant project of Redondo Peninsula Energy Inc. (RP Energy) in Subic.

At a news briefing, SC Spokesman Theodore Te announced that the Court has reversed and set aside the ruling issued by the Court of Appeals on January 30, 2013, and its resolution dated May 22, 2013, which granted the petition for the issuance of a writ of kalikasan sought by leaders of various militant organizations, led Teddy Casiño, Raymond Palatino, Rafael Mariano and Emerenciana de Jesus.

In issuing the writ of kalikasan, the CA invalidated the environment compliance certificate (ECC) issued by Environment Secretary Ramon JP Paje.

“The January 30, 2013 decision and May 22, 2013 resolution of the Court of Appeals are reversed and set aside...The petition for writ of kalikasan is denied for insufficiency of evidence," the SC ruled.

It also affirmed the validity of the ECC issued by the Department of Environment and Natural Resources on December 22, 2008, in favor of Redondo Peninsula Energy Inc. It also upheld the legality of the June 8, 2010, lease and development agreement betweeen Subic Bay Metropolitan Authority and Redondo Peninsula Energy Inc. The petitioners argued that the ECC was issued without complying with the condition of affected people and without prior approval of the local government units.

BusinessMirror

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Solon sounds alarm on rising PHL unemployment, poverty incidence

W

hile Malacañang has its hands full in controlling the damage brought about by the massacre of 44 National Police-Special Action Force (SAF) commandos, the Aquino administration should not also neglect the plight of ordinary folks who are fighting their own battles of joblessness and poverty on a daily basis, a lawmaker said on Tuesday.

Nationalist People’s Coalition (NPC) Rep. Sherwin Gatchalian of Valenzuela City, in a news statement, expressed alarm over the latest Social Weather Station’s (SWS) survey, which showed unemployment surging by 27 percent during the last quarter of 2014 from 22.9 percent in the previous quarter. This translates to a whopping 12.4 million Filipinos who are currently jobless and have no prospects of getting employed in the next three months.

SWS joblessness is based on two traditional qualifications: Without a

job at present and looking for a job, according to news reports. Those who are not working, without a job but not looking for one, such as housewives and students, are excluded.

The SWS pointed out that 2014 and 2013 joblessness numbers coincided with the slowdown in gross domestic product growth, which, according to official data, slowed to 6.1 percent in 2014 from 7.2 percent in 2013. The poll was taken from among 1,800 adults from November 27 to December 1, 2014. The poll had sampling error margins

of ±2 percent for national percentages; ±6 percent each for Metro Manila, Balance Luzon and Mindanao; and ±3 percent for the Visayas.

“There is urgency for the government to address the unemployment for the millions of Filipinos who struggle daily despite the country’s 6.1-percent economic growth, said Gatchalian, a senior vice chairman of the House Committee on Metro Manila Development and a majority member of the trade and industry committee.

“Our country’s leaders should not forget to address the economic plagues of people at the grassroots level. The benefits of the country’s full-year economic growth, which, according to reports, is next to China’s among Asian countries, should translate into an increase of quality jobs,” Gatchalian said.

Gatchalian maintained that joblessness, which readily translates to poverty, is one of the main reasons some Filipinos who are not gainfully employed turn to criminal activities, such as petty theft and robbery-holdups, just to survive.

“It is this very apathy to the plight of the poor that pushes some people to the wall. Some are left with no choice but to turn to crime to survive, while some join rebellious movements meant to destabilize the

current government in hopes that a new regime will bring them a better future,” he said.

Gatchalian said lack of economic development and lack of employment opportunities in most areas in Muslim Mindanao is also a major factor why secessionist groups, like the Moro National Liberation Front and the Moro Islamic Liberation Front (MILF), were successful in recruiting followers to their cause.

The MILF is currently engaged in peace talks with the Aquino administration, which is geared at creating a Bangsamoro entity that will replace the Autonomous Region in Muslim Mindanao (ARMM) through the Bangsamoro basic law, which has yet to be approved by Congress.

The peace process hit a snag with the slaying of 44 SAF commandos in Mamasapano, Maguindanao,

by MILF rebels as well as the renegade group Bangsamoro Islamic Freedom Fighters.

Gatchalian is also pushing for the creation of an independent body that will investigate the botched SAF operation in Mamasapano, to be patterned after the Davide Commission created by the administration of President Corazon Aquino to probe the series of coup attempts from 1986 to 1989.

Recto Mercene and Jovee Marie N. dela Cruz

Meralco targeting 209.65 MW more to beef up ILP summer inventory

By Lenie Lectura

T

HE Manila Electric Co. (Meralco) has signed up a total of 745.88 megawatts (MW) of interruptible load, and is eyeing a potential of 209.65 MW more to help Luzon plug the needed additional capacity this coming summer season.

As of February 2, Meralco said there are 74 captive Meralco customers from the private sector that will contribute 267.63 MW of powergenerating capacity.

The five largest participants are SM Prime Holdings Inc. (57.96 MW), Robinsons Land Corp. (23.15 MW), Waltermart Malls (14.30 MW), Belle Corp. (10 MW) and Rustans Supercenters Inc. (8.66MW).

The House of Representatives is the only captive customer of Meralco from the government sector that has so far signed up in the Interruptible Load Program (ILP).

“We now have around 745 MW of interruptible load in the program. Of note is the enrollment of the House of Representatives with 1.7 MW of interruptible load.

It is the first government building to join the ILP,” Meralco Head of Utility Economics Larry Fernandez said.

In all, a total of 269.33 MW of interruptible load will come from Meralco’s captive customers.

In addition to this, Meralco’s contestable customers, or those with a monthly average peak demand of at least 1 MW, have signed up a to-

tal of 469.05 MW of interruptible load. Of which, 208.69 MW will come from different retail electricity suppliers (RES) and 260.36 MW from MPower, the retail electricity supplier unit of Meralco.

Aside from captive and contestable customers who have signed up for the ILP, Meralco said the Cavite Economic Zone (CEZ) is also joining. CEZ will be contributing 7.5 MW of interruptible load. “Also, the update includes three locators from Philippine Economic Zone Authroity-CEZ with a cumulative additional of 7.5 MW,” Fernandez added.

Thus, overall ILP has reached 745.88 MW to date.

Meralco said it expects a potential of 13.98 MW from private captive customers, 72.27 MW from captive government customers, 1.7 MW from contestable customers and 120 MW from interconnection for a total of 209.65 MW. Separately, the Department of Energy (DOE) continues to encourage more ILP and the adoption of energy-efficient practices.

Highlighting the role in being part of the solution to the power challenges, Energy Secretary Carlos Jericho L. Petilla said on Tuesday that he attended the ILP signing ceremony of the 1.7 MW worth of participation of the House of Representatives on January 27 and the ceremonial signing of ILP agreements between MPower and its 92 contestable customers

Arboreal

To make a short-cut climb, a daring farmer in San Mateo, Isabela, crosses from one coconut tree to another using the palm fronds as makeshift bridges. The high demand for fresh young coconuts or buko provides jobs to climbing pickers. LEONARDO PERANTE II

on January 30.

With the ongoing progress of the ILP, the DOE is set to ramp up the importance of energy efficiency and conservation to address the shortand long-term power requirements of the country.

With the ILP, power supply from the grid that will not be consumed

by participating customers will be available for use by other customers within the franchise area. Through this, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the anticipated power crisis next year.

The program will only be part of the answer to the looming power shortages next summer. The ILP, likewise, does not guarantee zero brownouts, as it will only be implemented during the red alert level of the power supply.

A red alert means there is a supply deficiency.

DENR taps Ateneo expertise to gauge NGP’s impact on climate change

T

he Department of Environment and Natural Resources (DENR) has tapped the expertise of the Ateneo de Manila University (ADMU) to gauge the actual impact of the government’s massive reforestation program in addressing climate change.

Environment Secretary Ramon J.P. Paje said the ADMU will help the agency in assessing the effectiveness of the National Greening Program (NGP) in reducing greenhouse-gas (GHG) emissions, which contribute to global warming and weather extremes.

Under the DENR’s GHG-NGP project, a deal to hire the services of ADMU was finalized on January 23 during a contract signing between DENR Assistant Secretary Corazon Davis and ADMU President Fr. Jose Ramon Villarin.

The project forms part of a bigger program that aims to institutionalize and improve climate-change adaptation and mitigation measures.

“We recognize the expertise of ADMU and its willingness to assist us in this project, which seeks to assess just how effective a strategy the NGP is in climate-change mitigation and adaptation, particularly through carbon sequestration or reducing GHGs that actually make it to the atmosphere,” Paje said.

NGP is the flagship reforestation program of the Aquino administration that aims to cover 1.5 million hectares with trees by 2016. It also serves as a mechanism for climatechange mitigation to enhance the country’s forest stock to absorb carbon dioxide and other GHGs. GHGs are atmospheric gases that absorb and emit radiation in a greenhouse effect, causing global warming, which, in turn, leads to climate change. A periodic inventory of GHGs provides information that can be used to formulate policies and assess progress on climate change adaptation and mitigation strategies.

As stipulated in its service contract, the ADMU is expected to deliver projection reports on GHG emissions from production and consumption processes, as well as an assessment on the carbon sequestration of forests.

The data will be presented in technical and documentation reports, as well as a web site that will be put up specifically for the project. ADMU will also train and orient all stakeholders involved in the project.

Moreover, the university will come up with an inventory of the GHG emissions of Malacañang as a pilot office in institutionalizing the Philippine GHG Inventory Management and Reporting System by virtue of Executive Order 174 issued

by President Aquino in November last year.

The DENR, on the other hand, will assign its GHG-NGP team to oversee ADMU’s performance, review outputs and assist in the coordination with other concerned government agencies.

‘Fair competition bill strengthens existing monopolies’

By Marvyn N. Benaning Correspondent

P Massage enterprise

An elderly masseur trained by the Manila Manpower Development Center performs a soothing foot massage to a weary weekend stroller right beside the seawall in Roxas Boulevard in Manila for a fee. PNA

arty-list Rep. Terry Ridon of Kabataan has dubbed House Bill(HB) 5286, or the Philippine Competition Act, which Congress is not deliberating on, “only serves to maintain already existing monopolies and anticompetitive mergers.”

He added that, “while HB 5286 states that it aims to ‘promote a national competition policy and prohibit anticompetitive agreement or conduct’ and other unfair trade and business processes, the current version of the consolidated bill essentially allows existing monopolies to continue operating.”

The lawmaker referred to the provision of Section 6 of HB 5286, which states that “nothing in this Act shall be construed or interpreted as a prohibition on maintaining a dominant position in a relevant market acquired prior to the approval of this Act, or on acquiring and maintaining thereafter a dominant position in a relevant market, without violating the provisions of this Act.” “Instead of smashing monopolies, this provision ironically ensures that existing monopolies will continue holding dominant positions in their respective markets,” Ridon explained.

Ridon also pointed out that due to the confidentiality clause in HB 5286, competition litigation will also be

subjected to “hush-hush proceedings.”

“Anti-competitive behavior and monopoly practices are concerns that are public in nature, subject to paramount public interest. We demand that all submissions and documents be made public for scrutiny and review,” he added.

“Moreover, all mergers undertaken already prior to the Act are deemed permissible mergers. Thus, even if these existing mergers are of the class of anticompetitive mergers, the law will consider these mergers as permissible mergers,” Ridon explained.

“It is thus a farce to even pass this piece of legislation when it is in fact saving the very monopolies that should be broken down,” he said.

Economy BusinessMirror

news@businessmirror.com.ph

Wednesday, February 4, 2015 A5

DAP ‘authors’ not off the hook–SC

T

By Joel R. San Juan

HE Supreme Court (SC) affirmed with finality on Tuesday its decision declaring as unconstitutional several acts committed by the Executive branch in implementing the controversial Disbursement Acceleration Program (DAP).

At a media briefing, SC Spokesman Theodore Te said the Court unanimously denied the motion for reconsideration filed by the Office of the Solicitor General (OSG) on behalf of the Executive branch seeking to reverse its ruling issued last July 1.

The High Tribunal maintained that the withdrawal of unobligated allotments from the implementing agencies, and the declaration of the withdrawn unobligated allotments and unreleased appropriations as savings prior to the end of the fiscal year and without complying with the statutory definition of savings contained in the General Appropriations Act (GAA); and the cross-border transfers of the savings of the Executive to augment the appropriations of other offices outside the Executive remain unconstitutional.

Malacañang, reacting to the latest SC ruling on the Aquino admin-

istration’s controversial DAP, quoted government lawyers, claiming it was "a de facto reversal” of the earlier unanimous verdict handed down by the justices outlawing the DAP. “We note that based on the limited information provided by Atty. Ted Te, the SC has upheld the doctrine of operative fact which declared all acts are valid until they are declared unconstitutional,” Palace Spokesman Edwin Lacierda said.

He added: “The presumption of good faith has been preserved and emphasized, which clarified the previous impression that the authors are presumed to be in bad faith.”

The Court stressed that the said acts violate Section 25 (5) Article VI of the Constitution and the doctrine of separation of powers.

Article VI, Section 25 (5) of the Constitution authorizes the President and heads of other branches of

the government and constitutional commissions to augment any item in the GAA for their respective offices from savings in other items of their respective appropriations.

The Court also affirmed its decision which declares void the use of unprogrammed funds despite the absence of a certification by the national treasurer that the revenue collections exceeded the revenue targets for noncompliance with the conditions provided in the national budget.

All magistrates led by Chief Justice Ma. Lourdes Sereno approved this ruling, except for two—Associate Justice Teresita Leonardo-de Castro and Francis Jardeleza—who inhibited from the case.

However, the Court reconsidered its ruling on the act under DAP that declares the funding of projects, activities and programs that were not covered by any appropriation in the GAA unconstitutional.

Partially granting the motion for reconsideration of the OSG, the High Court noaw declared such act as constitutional.

The SC agreed with the OSG that there is no constitutional requirement for Congress to create allotment class within an item and that what is required is for Congress to create items to comply with the lineitem veto of the President.

“There is no requirement in the Constitution or the GAA that the subject of augmentation should be the expense category allotment

class. Accordingly, so long as there is an item in the GAA for which Congress had set aside a specified amount of public funds, savings may be transferred thereto for augmentation purposes,” the SC said in clarifying its decision.

“The interpretation is consistent not only with the Constitution and the GAAs but also with the degree of flexibility allowed to the Executive during budget execution in responding to unforeseeable contingencies,” it added.

But Te pointed out, that based on the ruling, the "modified interpretation nonetheless does not take away the caveat that only DAP projects found in the appropriate GAAs may be subject of augmentation by legally accumulated savings.”

“Whether the 116 DAP-funded projects had appropriation cover and were validly augmented require factual determination which is not within the scope of the present consolidated petitions under Rule 65 [or the Rules of Court],” he added.

The SC, likewise, made a clarification on its ruling with regard to possible culpabilities of executive officials for the implementation of DAP. It can be recalled that in its original decision, the SC held that while recipients cannot be held liable for benefiting from programs, activities and projects (PAPs) under the DAP in good faith, the Executive branch cannot be instantly cleared of culpabilities.

It cited the doctrine of operative

fact, which recognizes the validity of the assailed law or action prior to the determination of its unconstitutionality as an operative fact that produced consequences that cannot always be erased, ignored or disregarded.

It explained that “the doctrine of operative fact can apply only to the PAPs that can no longer be undone, and whose beneficiaries relied in good faith on the validity of the DAP, but cannot apply to the authors, proponents and implementors of the DAP, unless there are concrete findings of good faith in their favor by the proper tribunals determining their criminal, civil, administrative and other liabilities.”

However, the Court this time removed the words “proponents” and “implementors,” leaving only “authors” of the DAP as those who could possibly be held liable.

"The Court also decided to clarify the language it used insofar as those subject to the consequences of the operation of the operative fact doctrine by removing ‘proponents and implementors’ and leaving only ‘authors’ within the ambits of its coverage,” the Court ruled.

“If the authors will be identified, only those could possible be held liable, according to the Court,” Te told reporters.

But he added that the presumption of good faith in the implementation of DAP-related projects still stands in the latest ruling.

With Butch Fernandez

Subic Chamber of Commerce sets first business expo on Feb 12, 13

By Henry Empeño Correspondent

S

U B I C B AY F R E E P O R T— Members of the Subic Bay Freeport Chamber of Commerce (SBFCC) will put up a two-day business exposition this month as part of the group’s 20th anniversary celebration.

SBFCC President Rose B. Baldeo said the SBFCC Business Expo 2015 will be held on February 12 and 13 at the promenade area of Harbor Point Ayala Mall here and will feature locator-firms from the Subic Bay Freeport, as well as other businesses from neighboring Olongapo City and the provinces of Zambales and Bataan.

“The goal of the exposition is to showcase the various businesses in and out of the free-port zone and to show how dynamic our area is in terms of variations in business,” Baldeo said.

She pointed out that the Subic Bay area hosts different kinds of commercial and industrial establishments ranging from manufacturing, import-export, shipping and maritime firms to those involved in logistics, hotel and leisure, food and entertainment, and wholesale and retail.

Baldeo said the anniversary event will start on February 12 with a motorcade around Subic Freeport and Olongapo with various business es-

tablishments joining the parade.

The SBFCC has also scheduled a pre-Valentine dinner-concert at 6 p.m. that day in cooperation with Harbor Point. The show will feature renowned American composer and balladeer David Pomeranz.

“These events are the chamber’s way of expressing its gratitude to our members and friends in both the business community and government service, for their relentless support to the goals of the SBFCC,” Baldeo said.

“Our 20 years of existence would not be as meaningful as it is without their help,” she added.

The SBFCC, founded in 1995, serves as the organization of Subic Freeport-registered firms and boasts of members representing investors and locators from 24 countries around the world.

The chamber takes pride in its active involvement in business issues in the Subic Bay Freeport, as well as other concerns affecting businesses in the Subic Bay community.

Aside from serving as the collective voice of the Subic Bay business community, the SBFCC endeavors to help promote the Subic Bay area and the Subic Bay Freeport Zone; maintain an active dialogue with local and national governments; offer policy suggestions to help strengthen the local and national economies; and facilitate business and social interaction among member-businesses.

Subic Bay Freeport Chamber of Commerce (SBFCC) President Rose B. Baldeo (second from left) and Subic Bay Metropolitan Authority Chairman Roberto V. Garcia (third from left) cut the ceremonial ribbon during the chamber’s founding anniversary celebration on January 27, along with SBFCC Chairman Emeritus Danny Piano (left) and SBFCC Director Lewis Strickland. Photo courtesy of SBMA

briefs pfa to hold franchise seminar in CDO for women entrepreneurs

AS part of its continuing efforts to promote franchising as a tool to create thousands of businesses and millions of jobs, the Philippine Franchise Association (PFA) will hold a “How to Franchise your Business” seminar in Cagayan de Oro City on February 10 at Seda Centrio Hotel.

The said seminar is a key component of the Franchising Regional Enterprises by Women (FREE Women) project which is an advocacy project of PFA aimed at helping women entrepreneurs grow their business via franchising.

The said project, which is supported by the US Embassy, has already held seminars in Cebu, Tagaytay and Davao targeting woman-entrepreneurs in the Visayas, South Luzon and South Mindanao. The seminar in Cagayan de Oro hopes to gather participants from North Mindanao and the Caraga region.

Recognizing the contributions of woman-entrepreneurs in the country’s economic advancement, the seminar is open exclusively for woman-entrepreneurs and is for free.

Interested participants may get in touch with the PFA secretariat via e-mail at pfa@pfa.org.ph.

After the seminar, a select few will be chosen to be featured in the incubation pavilion of Franchise Asia Philippines 2015, PFA’s annual franchise show.

Participating in the said international franchise expo will give them the opportunity to test the market, attract possible investors and partners, and benchmark with the best practices of successful franchise concepts.

deped, usaid to expand education access for osys

Festival dance

Performers from different schools of Ilocos Sur show their grace in the ethnic-dance contest in the ongoing Kannawidan Ylocos Festival of the province of Ilocos Sur. Mau Victa

DTI to truckers: Cut rates to lower prices of goods

By Catherine N. Pillas

T

HE Department of Trade and Industry is calling on truckers to bring down hauling fees that will allow the government to initiate the lowering the prices of more consumer goods.

“Hindi pa sila nagbaba, based on the feedback. Kailangan na magbaba ang truckers. Malaking part ng cost nila sa gasolina so magbaba na sila ng presyo at hindi na pwede maging rason ang port congestion,” Trade Secretary Gregory L. Domingo said in an interview with reporters after presiding over a meeting of the National Price Coordinating Council on Tuesday.

The global price of oil has plummeted from $110 per barrel in June of last year to almost current prices of $40 to $45 per barrel.

Domingo explained that trucks servicing the ports have been making 11,000 trips per day in and out of the ports, which, he said, is way above the 8,000 trips that the ports

authority have said is the efficient level for truckers to recover costs.

Truckers rates now range from P20,000 to P30,000 from precongestion level of P8,000, said Domingo.

Trade Undersecretary Victorio Mario A. Dimagiba said that, while they don’t have an estimate of how much truckers should lower fees, rates stuck at the port-congestion level are not justified.

Albert Suansing, director of the Confederation of Truckers Association of the Philippines, said via text message that truckers have already decreased their rates.

“Bumababa na ang rates. Kaya lang, hindi maibaba to February 2014 level ang rates since it is still taking a long time for trucks to do deliveries,” Suansing said.

The CTAP president said rates in Metro Manila were at P15,000 to P20,000 without expounding on rates outside Metro Manila and Cavite.

Suansing explained that turn-

around time in February of 2014 in Metro Manila and Cavite areas were 8 hours and outside Cavite and Metro Manila is 12 hours. Now, the same trips last 36 hours and, in the case of outside the metro and Cavite, as much as two days, he added.

Domingo also said that, even if the port congestion has not yet normalized, they’re already profitable at the rate of throughput in delivering goods and so should pass on the savings on lower fuel costs to consumers.

The DTI chief, in December, called on manufacturers and producers of goods and services to lower their price to reflect the softening of oil prices in the global market.

Domingo, likewise, reported the prices of basic goods and prime commodities on Tuesday morning, reporting that galvanized-iron sheets, rebars, cement and vegetables have decreased prices by an average of 2 percent to 4 percent on a year-onyear basis.

The Department of Education (DepEd) and the United States Agency for International Development (USAID) signed the bilateral agreement for Basic Education Programs aiming to increase access to quality education for vulnerable populations such as out-of-school youth (OSY) and students in conflict-affected areas.

Education Secretary Bro. Armin A. Luistro, FSC, said through this partnership, the DepEd will be able to open opportunities, not only for students with special needs and preprimary students, but also to OSYs and students who reside in conflict-affected areas.

He added, “Our mandate is to provide every Filipino child with access to quality education.”

Education Undersecretary for Legal and Legislative Affairs Alberto Muyot said, “Education is the primary driver of development.” He added that education should be inclusive and should serve everyone, “especially the least, the lost and the last.”

USAID Deputy Chief of Mission Brian Goldbeck said, “This bilateral education agreement will sustain and reinvigorate our combined efforts to ensure that the Philippines continues its rise as regional and global leader in this new century.”

“Education is a shared responsibility,” Muyot said. He urged the public to take a stand in education and take an active part in shaping the future that every Filipino learner deserves.

Under the agreement, the DepEd and USAID will provide life skills training to youth, promote community engagement and peace education, increase capacity of teachers and youth leaders to meet the education needs of youth and vulnerable population through alternative learning areas affected by crisis and conflict.

The partnership intends to strengthen education governance at both national and local levels.

It also aims to empower the local government units, communities, and stakeholders to deliver education and training service for OSYs and to increase OSY employability by providing equitable access to relevant education and skills training. PNA

Opinion BusinessMirror

A6 Wednesday, February 4, 2015

editorial

A living testimony of compassion

A

T a time when we have nearly lost all trust and confidence in government promises of aid and support to victims of calamities or to poor people in general, we receive reassurance from some members of our community that human compassion is alive after all.

Buried in last week’s news is a report on the inauguration last January 23 of a resettlement community in Alangalang, Leyte, for victims of Super typhoon Yolanda. The community is a project of the Iglesia ni Cristo under the leadership of INC Executive Minister Eduardo V. Manalo.

As described, the community in its conception and construction is almost too perfect to be true, is indeed “a piece of heaven on earth”.

The community consists of 500 concrete housing units. Occupying 700 hectares of cleared land, it is nestled on top of a mountain, commanding a panoramic view of the areas around it, insuring that its inhabitants will be free from storm surges that typically take thousands of lives when they occur. In addition the resettlement community has an eco-farming site, a garments factory, a dried-fish factory, and a mushroom facility, to take care of the residents’ livelihood requirements.

It is not clear whether the community is now fully settled but those families that have taken keys to their cottages are now living normal, and much improved, lives. They are working in the livelihood projects in their community, managing and expanding them, and finding new customers for their products. Some of the newly discovered customers are foreigners signifying interest in investing in the projects.

This community is just the opening part of a larger project, as at least 500 more houses are envisioned to be built in the near future, to accommodate more stricken families.

In many ways this action of the Iglesia ni Cristo is teaching us–specifically, the government and nongovernmental organizations–some lessons. One lesson is that planning is vital and indispensable to the successful implementation of any social assistance program. Another lesson is that such planning must be detailed so that it precludes surprises along the way. Perhaps another lesson: organizational leadership must have a moral ascendancy to inspire the membership to high levels of achievement.

At this point it is not difficult to see that concerned government agencies and NGOs can benefit from these lessons. These public and private organizations can begin backing up high sounding rhetoric and grandiose promises with concrete plans of action and systematic procedures of implementation. If they had these plans in the Yolanda days, they would have known how to overcome damaged airports, cluttered roads, and destroyed bridges. As it was, they were frustrated by the smallest impediment, neutralized by the flimsiest of obstacles, and rendered immobile by petty disagreements of people on ground level.

The leaderships of government agencies and NGOs concerned can also begin scrutinizing their own moral fibers, introspectively if not publicly. For sure they had confronted moral issues in the course of their work; the question is whether they had succumbed to temptations or overcame them. But surely they know that lack of moral stature on the part of leaders is one of the factors that discourage subordinates from giving their best to the work at hand.

Our heartfelt compliments to the Iglesia ni Cristo. You are showing us the way.

Since 2005

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Do you know what happened to your SSS stock-investment loan?

Susie G. Bugante

All About Social Security

I

F you don’t know the answer to that question, most probably your loan is delinquent. Otherwise you would have said that you had sold your stock investment and made a neat profit out of it. Or you could say, what stock investment loan?

If you have never heard about the Social Security System (SSS) stock investment loan program (SILP), then what I am about to say is not for you.

Sometime in the late 1980s, SSS offered a loan facility called SILP to give its members the opportunity to invest in the stock market.

If you were one of those who took advantage of the program but failed to fully pay for the shares of stocks that you bought, here is your chance to settle your loan delinquency by exercising your option to sell these shares.

According to the SSS Member

Loans Department, as of yearend 2014, there are 3,037 delinquent SILP loan accounts amounting to P304.44 million, inclusive of penalties and interest. Aside from the SILP, there is also the Privatization Fund Loan Program (PFLP) that was also offered in 1994 to enable SSS members to participate in the initial public offering of Petron shares, which at that time were owned entirely by the government.

The PFLP was also open to qualified SSS members who were interested in buying shares of stock of Meralco that the pension fund was disposing at that time. Again as of

end of last year, there are some 5,755 delinquent PFLP loan accounts totaling P304.19 million, including penalties and interest.

These are staggering amounts that the program borrowers will have to settle sooner or later. If you are one of them, you can now settle your delinquent account by allowing the SSS to sell your shares of stock. All you need to do is execute a Special Power of Attorney authorizing the SSS to sell your stocks at the prevailing market price, based on the quotation of an accredited broker and subject to the usual broker’s commission, taxes and other fees. The net proceeds from the sale of shares of stocks will then be applied to your outstanding SILP or PFLP loan balance.

Any excess amount, after applying your net proceeds to your SILP or PFLP loan balance, will then be applied your other delinquent loans such as salary or housing loan, if any.

If none, then the excess amount will be refunded to you.

However, if the net proceeds of the sale of your shares of stocks are not sufficient to cover the outstanding SILP or PFLP loan balance, then

you will have to pay the remaining amount either in cash, through salary loan renewal, or deductions from the final benefits (total disability, retirement and death). It should be pointed out that the loan balance will continue to be charged with interest and penalties until it is fully paid.

The SSS management says while this scheme may not be the condonation program that members like you are waiting for, the option to sell is the next best way for you to pay off your outstanding loans under the SILP and PFLP. Finally, a friendly reminder, it is always best to pay your loans on time to avoid paying the burden of penalties and interests.

For more information about the option to sell shares program, you may contact Teresita Badiola or Ma. Divina Cadorna at the SILP section of the SSS Member Loans Department at telephone numbers (632) 4359862 and (632) 9206401 locals 5887 and 5915.

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

A higher gasoline tax would throttle back economic growth

F

By Tim Phillips | Los Angeles Times/TNS

ALLING gasoline prices—are they good or bad?

Ask any American consumer and the answer will be a resounding “good.” Gas prices have dropped by more than a dollar in the last three months. This translates into a de facto tax cut of at least $125 billion, equivalent to 2.4 million middleclass family incomes. For the average family, the savings this year could be $750 or more. The middle class hasn’t seen comparable economic relief in years.

Apparently some politicians in Washington think that’s bad. They have concocted a scheme to undo that tax cut by slapping higher taxes on gasoline.

The list of tax-happy politicians is growing longer by the day. In Congress, both Democrats and usually anti-tax Republicans have lined up in support of a higher gas tax, arguing that it could fund any number of big-ticket items on Congress’ to-do list. They’ve been joined by prominent pundits on both sides of the aisle. Their proposals vary, with some ranging from 10 or 20 cents to a dollar or more per gallon.

Yet no gas tax increase, big or small, should be on the table. There

are many reasons it is a terrible idea for the consumer.

First, higher gas prices mean higher prices on goods. Groceries, clothes, electronics, manufactured goods are all mainly transported to your local store via truck. So when gas prices go up, so does the cost of transporting those goods.

This invariably leads to higher prices, not just at the pump but at every stop on your daily or weekly errand runs.

It isn’t just consumers who think that lower gas prices are good. Economists agree as well. Lower gas prices mean more economic growth. When you and I have more money to spend– which we do right now, thanks to fall-

ing gas prices—we usually spend it.

That’s why economists now predict that lower gas prices could add as much as half a percentage point of growth to the economy this year. A gas tax would only stymie or prevent those gains.

Moreover, such growth would create jobs and opportunities in the years to come, the keys to a strong and lasting economic recovery. No wonder the chief executive of Caterpillar has said that falling gas prices are creating “the kind of stimulus package that the Federal Reserve or Congress could never do.”

Lower gas prices help the middle class and the poor most of all.

The middle class spends more on gasoline than any other income group. Households with less than $50,000 in income spend, on average, a fifth of their wages on energy.

Some economists estimate that the average family is saving $100 a month on gas.

Those savings are even more noteworthy when you consider that family income is still lower than it was six years ago. Now, thanks to falling gas prices, the middle class and the

poor finally have more money in their pockets.

Why would Congress jeopardize these gains with a higher gas tax? The most frequently repeated reason is that it would restore fiscal solvency to the Highway Trust Fund, which has been steadily losing money for years.

But a higher tax isn’t the solution to this problem. Instead, Congress should direct the trust fund’s money to be spent solely on highways, rather than on the plethora of non-highway projects that it currently funds. If Congress made this simple change, the fund’s financial problems would be all but fixed overnight; it would be 98 percent solvent.

Surely our politicians should reorder their own spending priorities before slapping higher taxes on the rest of us. They’ve spent the last six years over-regulating and over-taxing the economy, thereby preventing the recovery that the American people were promised but largely haven’t seen. Now that falling gas prices are contributing to real growth, politicians in Washington should take their foot off the gas tax pedal.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Wednesday, February 4, 2015

International Association Alibaba’s hollow victory over China of Insurance Supervisors William Pesek

Dennis B. Funa

INSURANCE FORUM

T

ODAY we give recognition to the International Association of Insurance Supervisors (IAIS) for its pioneering and leadership role in the international insurance stage.

The IAIS is the foremost organization of insurance regulators. It is a voluntary membership and nonprofit organization with about 140 member countries, representing about 97 percent of the world’s insurance premiums. It is hosted by the Bank for International Settlements (BIS), the world’s oldest international financial organization, from the time IAIS moved to Basel, Switzerland in January, 1998. The BIS had offered to provide office space, personnel and technical support.

The BIS hosts other independent organizations as well, such as the Financial Stability Board (established by the G-20) and the International Association of Deposit Insurers, under a program called the Basel Process, adhering to the theory that co-location would produce a synergy that furthers financial stability.

The Philippines is a founding and charter member of IAIS. The IAIS was founded on March 3, 1994 when it was first incorporated in Springfield, Illinois, United States by 68 charter members. The founders of IAIS sought to create a body similar to that of the International Organisation of Securities Commission. Among the members of the Executive Committee at that time was Philippine Insurance Commissioner Adelita Vergel de Dios. The first chair of the Executive Committee was American David Walsh. It will later be incorporated under Swiss law.

The IAIS held its first annual conference in Baltimore, Maryland.

It was created as a “standard setting body responsible for developing and assisting in the implementation of principles, standards and other supporting material for the supervision of the insurance sector.” Its main objective is “to promote effective and globally consistent supervision of the insurance industry in order to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders and to contribute to global financial stability.”

The activities of IAIS are mostly carried out through its Secretariat, headed by a Secretary-General. The Secretariat is based in Basel, Switzerland. In addition to its member countries, the IAIS allows observers, of which there are currently about 135, comprising different insurance-related organizations and professions. It is largely steered by an Executive Committee.

The first Secretary General was Knut Hohlfeld who started in 1998 after his stint as president of the German Insurance Supervisory Authority. The current Secretary General is Yoshihiro Kawai, the former deputy, who was first appointed on October 2002. He is now assisted by Deputy Secretaries General, Catherine Lezon and George Brady. Hohlfeld would later be named as an IAIS Distinguished Fellow.

The programs of IAIS are geared towards three main thrusts, namely: (a) standard setting–it develops positions and materials relating to principles, standards, and guidance; (b) implementation–it supports and encourages implementation of its principles and standards; and, (c) financial stability–it advocates financial stability by taking positions on various issues facing the insurance industry.

Standard-setting is a primary role of IAIS as these standards are seen to lead to “improve supervision” thereby resulting to a “well-regulated insurance market” producing greater “policyholder protection” and “efficient, fair, safe and stable insurance market” and eventually establishing “global financial stability.”

The IAIS is the foremost organization of insurance regulators. It is a voluntary membership and non-profit organization with about 140 member countries, representing about 97 percent of the world’s insurance premiums. It is hosted by the Bank for International Settlements (BIS), the world’s oldest international financial organization, from the time IAIS moved to Basel, Switzerland in January, 1998. The BIS had offered to provide office space, personnel and technical support.

The IAIS also coordinates and collaborates with other international and regional organizations like the National Association of Insurance Commissioners of the United States, which in fact was the origin of IAIS, the International Actuarial Association, Financial Action Task Force, and the Asian Forum of Insurance Regulation.

It is engaged in education and information dissemination. It regularly publishes the Global Insurance Market Report, which focuses on the performance of insurers and reinsurers and developments in the global insurance market.

While it has no mandatory regulatory power or binding legal authority, it wields great influence in the international stage.

The first set of Insurance Core Principles was adopted on December 1999 during its 6th Annual Conference in San Francisco. It was later revised on October 2003. On October 2011, the IAIS adopted the (revised) 26 Insurance Core Principles (ICPs), providing fo r an international regulatory framework. It is an accepted framework standard by the Financial Sector Assessment Program. It is akin to the International Accounting Standards adopted by the International Accounting Standards Board.

It is noted that during the 1997 IAIS Conference in Sydney, Australia, the first “Insurance Principles” was adopted, becoming the precursor of the ICP. Together with the European Union Directive on Solvency II, they form part of the current groundbreaking regulatory reforms. Given such developments, it is only natural that the reforms in the Philippine regulatory setting will have to be aligned with the ICPs. Among the other worthy projects and initiatives of IAIS are the Common Framework for the Supervision of Internationally Active Insurance Groups (adopted on January 2010), and the risk-based global insurance capital standard (ICS) (adopted on October 2013), and Enterprise Risk Management.

A special concern for IAIS is the implementation of a regulatory framework for the so-called Global Systematically Important Insurers (G-SIIs). This is so because G-SIIs are considered to be “a risk to financial stability because their scope, the nature of their business and their position in the financial system is such that their distress or failure might, cause disruption to the wider financial system and the real economy”.

An example would be the proposed Higher Loss Absorbency standard for G-SIIs. No doubt, the IAIS will continue to lead by blazing the trail for needed reforms in the insurance industry.

Atty. Dennis B. Funa is the Insurance Commission’s deputy commissioner for legal services. Send comments to dennisfuna@yahoo.com.

BLOOMBERG VIEW

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ACK Ma, 1. China, 0. That seems to be the score in the unusually public tussle between the Alibaba billionaire and Beijing.

Rarely does a mainland magnate push back when the Communist Party questions its business practices and ethics, and certainly not in the glare of the global news media. But Ma is standing his ground, and the government has dialed back its criticism of Alibaba selling fake goods on its e-commerce site.

This is not a sign that life is generally improving for private business in China, however. Abibaba is unique.

Beijing loves a homegrown success story, and there’s none better than Ma’s fabled rise from schoolteacher to Asia’s richest man. Since pulling off history’s biggest IPO, Alibaba has become the standard bearer of President Xi Jinping’s pledge to embrace capitalism, empower entrepreneurship and level the corporate playing field. Also, Ma is producing jobs at thousands of small-to-midsize companies and helping to accelerate Xi’s shift to an economy led by consumer demand. Many countries obsess over companies that are too big to fail. For

China, Ma is betting Alibaba is too important to hassle.

Yet there are many reasons why his juggernaut faces a difficult few years ahead. Here are the two most immediate challenges.

One, political risk is rising. True, this confrontation had a happy ending for Alibaba. What no one knows, however, is whether the company’s troubles are a dispute with one agency, the State Administration for Industry and Commerce, or a broader quarrel with the Chinese government. If it’s the latter, Ma and his investors haven’t heard the last from China’s opaque and unpredictable regulatory system. Alibaba’s

predicament is emblematic of how, for all Xi’s promises to the contrary, political risk for businesses in China is increasing.

Alibaba operates at the pleasure of Xi’s Communist Party, a secretive body that can turn on any corporate titan for any reason at any moment.

Consider the irony of China going after Microsoft and chipmaker Qualcomm for alleged monopolistic practices, while enabling Ma to corner virtually every online market. One misstep or slight toward a Communist Party bigwig and Alibaba could easily face its own antimonopoly case.

Ma’s push into online banking also could put him at odds with party leaders looking to protect the turf of state-owned banks. Investors won’t know until it’s too late whether Alibaba’s rival Tencent, which runs the ubiquitous WeChat instant messaging service, will suddenly have more friends than Ma in Beijing.

The second big risk is China’s economy. News today that manufacturing contracted for the first time in more than two years has markets crying out for more stimulus. Even after the government’s recent $1.1 trillion spending package, investors worry Beijing isn’t doing enough to keep growth at about 7 percent (it grew 7.4 percent in 2014). The Purchasing Managers’

A7

Index falling below 49.8 in January from 50.1 in December is sure to add to pressure for Xi and China’s central bank to do more.

The weakest industrial-output growth since the 2008 global crisis is a clear and present danger to Alibaba’s performance in its first few years as a public company. If you think Alibaba’s revenue miss in the third quarter (it came in at $4.2 billion) disappointed global investors, just wait until growth slows to 6 percent or even less. Alibaba’s promise has always been one-stop shopping for those looking to ride the emergence of China’s middle class (it has more than 500 million subscribers already). For investors around the globe, it’s a way to harness the meteoric growth in Chinese industries from retail to banking to travel to entertainment. But Alibaba’s September IPO came at the top of China’s economic boom. Around that same time, data on trade, oil and retail sales began to weaken appreciably.

Aside from weathering difficult global economics–including deflation in Europe–Xi is trying to clamp down on excessive investment and credit in ways that will hit Ma’s profits. China’s economic uncertainty and its unpredictable regulators make it hard to keep score on where China’s splashiest company is headed.

‘Charlie Hebdo’ free-speech guerrillas focus on what divides

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HE attack occurred just a few minutes before I arrived at the Charles de Gaulle Airport on one of my yearly homecoming trips.

By midday January 7, 12 people, including some of France’s most well-known cartoonists, had been shot in and around the Charlie Hebdo offices in the hipster Le Marais neighborhood.

That evening, from the base of the Marianne statue, I saw Place de la Republique overtaken by thousands of mourners. Some tried to chant, and, yes, a couple of people burned pages of the Quran, but they were promptly booed.

For the most part, we were there to grieve for cartoonists who were regarded with affection, though also with a degree of disapproval by some. They were viewed as you might a turbulent little cousin, a bright lad who could be downright rude at times but who should never have to see the end of a gun barrel. There was no arguing that.

Soon enough, the spontaneous wave of grief was submerged by one of the most popular hashtags in history and the largest march Paris had ever seen. The emotional reaction to these deaths was turned into a movement for free speech that ultimately flopped when the world realized the dead cartoonists were more antiheroes than martyrs.

That was the problem with Charlie

Hebdo, too. In recent years, it invoked abstract principles to justify its repeated barbs against Islam, which is already under siege in France on multiple fronts.

The paper was founded by old-time leftist intellectuals–people who considered themselves humanists, anti-racists, anticapitalists and, thus, secularists.

An ancestor of Charlie Hebdo, Hara-Kiri, entertained a generation of ‘60s activists, including my father. It was crude, irreverent and provocative. And the juvenile curmudgeons at Charlie Hebdo camped out in that era, convinced that the best way to liberate society was by stamping out the influence of religion. This conviction turned into a vendetta against Islamic fundamentalism.

Tensions came to a head–or so we thought–when the old Charlie Hebdo offices were firebombed in 2011. They were about to print an issue “guest-edited” by the prophet Muhammad, who was depicted on the cover with a wild smile saying: “100 lashes of the whip if you don’t die laughing!”

By then, Muhammad caricatures were a Charlie Hebdo staple, and the paper’s cartoonists, particularly editor Stephane Charbonnier, had fashioned themselves as free-speech guerrillas.

“I will continue, even if I have to do it alone,” he said on a France 2 talk show.

A rather dour mission for a cartoonist.

But the leftist free-speech advocates were giving ammunition to the extreme right, especially the Front National, which abhors the presence of Islam in France.

No love was lost between those strange bedfellows. Charlie Hebdo had even petitioned to have the Front National banned. The party had sued the paper several times and its leader, Marine Le Pen, was savaged on Charlie’s pages.

Still, both shared a fervent belief in straitjacket secularism, which the Front National has deftly used as a weapon to defend France’s cherished Catholic traditions from Muslims. The January 7 attacks are Le Pen’s chance to gloat.

“France, land of human rights and freedoms, was attacked on its own soil by a totalitarian ideology: Islamic fundamentalism,” she wrote in a New York Times op-ed.

With her party’s ideology shaping the debate, there is rising sentiment in France that the onus is now on Muslims to prove they are “moderate,” and not on the side of the terrorists.

“It’s up to them to show that you can be French and Muslim and still respect secular rules,” Le Pen told Al Jazeera English.

Just as Charlie Hebdo’s militant secularism has been exploited by its sworn political enemy, the trauma of the Paris shootings has

been used to divide in every possible way.

Everyone had a field day bombarding #JeSuisCharlie, from politicians to the polarized media to naive commentators.

Uninvited to the Paris march, Israeli Prime Minister Benjamin Netanyahu, standing next to the premier of France, advised French Jews that Israel is their home.

Newcomers to Charlie Hebdo, upon seeing its hooked-nose Muhammad caricatures, are calling the cartoonists “racist” or “bigoted,” mistaking an attack on a religion for an attack on race.

The remaining staff at Charlie Hebdo, those free-speech champs, are calling the newspapers that did not reprint their drawings “wimps.”

All of this detracts from the images that should stay imprinted in our minds: the men wearing balaclavas and armed with AK-47s who broke into a weekly meeting of cartoonists; blood splattered in the hallways of a cramped newsroom; a Muslim cop shot execution-style while he was on the ground, face down; a kosher supermarket surrounded by police, with Jewish shoppers held hostage inside; and the 17 killed in two attacks.

We should be united in shock, horror, and a sense of shared loss. Instead, we have focused on what divides us.

The Philadelphia Inquirer/TNS

2nd Front Page BusinessMirror

A8 Wednesday, February 4, 2015

Markets rebound Slow Mamasapano closure on softer Greek bid to hurt economy–Balisacan to debt forgiveness

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THENS, Greece— Hopes for a deal between Greece and its European creditors got a boost after the country’s new government backed away from demands to write off a chunk of its bailout loans, a prospect that had horrified creditors and investors.

Greek stocks led a European market rally on Tuesday after the finance minister said the new radical left government was willing to accept alternative strategies to making his country’s debt load more bearable.

Signs of relief also came from the European Union, where the president of the executive commission, JeanClaude Juncker, said the bloc will “have to adapt a certain number of our policies” to accommodate Greece, though it is “not going to change everything.”

The Athens stock exchange was up 8.9 percent in midday trading and Greek bond yields eased, a sign investors are less worried about default. The Euro Stoxx index of euro zone stocks gained 1.5 percent.

The Financial Times reported that during a visit to London on Monday, Greek Finance Minister Yanis Varoufakis had backed off

the idea of a flat debt write-off.

Instead, he suggested exchanging Greece’s debt to its bailout creditors with bonds that would be repaid only if Greece’s economy grows. He also offered using socalled perpetual bonds—which allow issuers to pay interest forever while foregoing the principal.

That would be a less confrontational approach than the eight-dayold government’s previous insistence on a write-off, which would have implied a cut in the face value of Greek bonds held by euro zone countries and the European Central Bank.

Historically, creditor countries have often written off debt owed by poorer countries. Greece’s case is complicated, however, by the fact that it is part of a currency union —richer countries like Germany do not want to set a precedent for other states that might get into financial trouble.

Elected on January 25, Prime Minister Alexis Tsipras’s government quickly riled creditors and investors with its insistence on a root-and-branch overhaul of its bailout, including the austerity budget measures that creditors See “Markets,” A2

T

By Bianca Cuaresma

he country’s economy will likely take a beating should the government fail to achieve an acceptable resolution to the Mamasapano bloodbath, which took the lives of 44 National Police-Special Action Force (SAF) commandos deployed in the clash, a Cabinet official warned.

Speaking in front of regional journalists on Tuesday, Socioeconomic Planning Secretary Arsenio M. Balisacan said the effects of the recent Mamasapano clash on the economy will depend on how the government will handle the crisis.

“The effect of the development could be short term or long term, depending on how we resolve the issue.

If we put a closure on the issue soon, we would not feel that much…but if not resolved and lead to further uncertainty, it will definitely hurt the

economy,” Balisacan said.

This is amid the Palace’s declaration earlier that the clash did not hurt investors’ confidence in the country.

The government earlier said what happened was a “misencounter” with the members of the Moro Islamic Liberation Front and Bangsamoro Islamic Freedom Fighters on January 25. The President declared January 30 as a Day of Mourning for the 44 SAF commandos killed in the clash.

BALISACAN: “As what happened in the past, the peace and order problem over the last decade has a very considerable impact.

These are foregone opportunities.”

“As what happened in the past, the peace and order problem over the last decade has a very considerable impact. These are foregone opportunities,” Balisacan said.

The socioeconomic planning secretary further said Mindanao could grow even faster than other areas of the region if peace is attained in the area.

“The 7-percent to 8-percent [growth] we are seeing could get higher if we can get Mindanao moving, because the potentials of Mindanao are enormous. It can grow much faster than the rest of the country if we can get peace there,” Balisacan said, noting the region’s potential to be an agribusiness spot, as well as haven for tourism and light industries. The government has formed a Board of Inquiry to probe what really happened in the Mamasapano massacre.

www.businessmirror.com.ph

Capital flows from China widest since at least 1998

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hina’s capital account posted the widest deficit since at least 1998 in the fourth quarter, as companies in the world’s second-largest economy increased overseas investment.

The capital-account shortfall was $91.2 billion in the three months ended December, the Beijing-based State Administration of Foreign Exchange said on its web site on Tuesday. The current account surplus shrank to $61.1 billion, it said.

“This signals a shift in China’s economic structure,” said Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd. in Hong Kong.

“The expectation of yuan depreciation has appeared and that helped the capital outflow.”

Investment into China is no longer a one-way street as Chinese companies increase overseas business at the same time, as an economic slowdown reduces the nation’s appeal to foreign investors.

The central bank has halted regular foreign-exchange purchases, with foreign reserves falling last quarter.

Bloomberg News

‘Consistent high growth not a product of freak accident’ Continued from A1

creation of the BSP followed by the liberalization of foreign bank entry in 1994; liberalization of the telecommunications sector in 1995; privatization of water services in 1997; and Deregulation of the oil industry as well as the adoption of consolidated bank supervision in 1998.

The BSP official said these reforms were followed by the enactment of the Philippine E-Commerce Act in 2000; Liberalization of the power sector through the Electric Power Industry Reform Act, 2001; institutionalization of the Inflation Targeting Framework and Special Purpose Vehicle Act in 2002; Gov-

ernment Procurement Reform Act in 2003; and enactment of the Securitization Act and the Adoption of Basel 2 in 2004.

In 2005 the country introduced the Expanded value-added tax (EVAT) and followed it up with the creation of the Wholesale Electricity Spot Market (WESM) in 2006 as well as introduction of the risk-based bank supervision in 2007.

In the last five years, the government privatized the National Transmission Corporation (TransCo) and National Power Corporation’s (NPC) assets; adopted the Philippine Financial Reporting Standards (PFRS) 9 and Phased-in migration to Basel 3; revised excise tax rates on alcohol

and tobacco; and liberalized the entry of foreign banks in the country as well as instituted macro prudential measures on real estate exposure.

These structural reforms, Guinigundo said, were the primary source of the economy’s resiliency in the face of external economic shocks such as the 2009 Global Economic Crisis and even earlier in the 1997-1998 Asian Financial Crisis. “In fairness to the various political leaderships, FVR to Erap to GMA and, of late, President Aquino, they did not reverse the structural policy reforms from 1993 up to 2014. And to me, this was 20 years of structural reforms that helped unleash the potency of the markets in the country,” Guinigundo said.

PHL: The call-center capital of the world Continued from A1

Horca, 30, eventually got her socialworker license, but she could never tear herself away from the call-center job for a US banking company.

It’s draining work. She handles as many as 100 calls a day from angry Americans, often working the graveyard shift. But she makes about $700 a month, more than many general physicians earn in the Philippines, let alone social workers. The industry in the Philippines has grown so fast that it has overtaken India as the call-center capital of the world.

India still rules the information- technology outsourcing realm, but an army of Filipino college graduates like Horca now dominates most every other kind of task known as business-process outsourcing, or BPO. By next year experts estimate that the country’s BPO industry will generate $25 billion in revenue, accounting for about 10 percent of the Philippines’s economy and as much as the total amount expected to be sent home by the 11 million Filipino nurses, sailors, musicians and others working overseas.

The English spoken by Filipinos is closer to Americans’ than in India. “Our culture is very similar,” said Fred Chua, a lifelong Manila resident who runs a call center. A cousin in San Francisco drums up business for the company, Magellan Solutions. “ We don’t yell on the phone

often. We’re very customer-centric,” Chua said. That helps explain why the country has become America’s top overseas site for voice-related work in business outsourcing.

Corporations, such as Citibank, Safeway, Chevron and Aetna, all have BPO operations here, as do smaller companies ranging from a Georgia medical collection agency to a New York spa operator that outsources its customer appointments. The outsourcing boom has helped propel the country’s economy, once a laggard of Asia, into one of the region’s fastest-growing.

The industry has spawned bustling business districts in Manila, with skyscrapers, 24-hour buffets and condos that sell for $500,000. For most of the last four decades, while East Asian tiger economies were roaring ahead, the Philippines wallowed amid rampant corruption, lousy roads and sluggish investments. But after 25 years of slow and painful reforms, the country is on track to achieve annual growth rates of 7 percent to 10 percent over the next 10 years, according to Bernardo Villegas, a Harvard-trained Filipino economist.

The economy expanded 7.2 percent in 2013 and slowed to a little more than 6 percent last year, compared with China’s 7.4 percent last year.

One of the Philippines’s biggest advantages is its large and growing young population: About 90 percent of its 100 million people are under 55, compared

with 61 percent for Japan and 73 percent for the US. Most Filipinos also speak English, which is one of two official languages along with Tagalog.

For years foreign remittances by Filipinos working abroad were a pillar of the country’s economy, along with agriculture and mining. Now the resurging economy is drawing some of those workers back home.

Butch Valenzuela, 55, left Manila in the early 1980s to escape rioting as masses protested the strong-arm rule of Ferdinand Marcos.

Valenzuela went to California, attended the University of California, Los Angeles, rose through the ranks at a manufacturing company and built a comfortable life. But a few months ago, Valenzuela’s wife sold their house and moved back to Manila, joining her husband who had returned to the Philippines several years earlier to set up a call center.

Valenzuela launched Visaya Knowledge Process with 14 workers. He has yet to make a profit, but it has grown to about 200 “seats,” which is the way the industry measures the size of an operation. Visaya is one of about 1,000 BPO operations in the Philippines.

A few giants led by Convergys and Accenture, which have tens of thousands seats each, dominate the business. But the pie keeps getting bigger as American companies seek cheaper labor. Call-center workers in the US make about four times their Manila counterparts. MCT/TNS