Businessmirror january 04, 2015

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

U.N. Media Award 2008

BusinessMirror

www.businessmirror.com.ph PAPAL VISIT 2015

10 DAYS

week ahead

ECONOMIC DATA PREVIEW Inflation (December)

January 6, Tuesday

n November inflation: The Philippine Statistics Authority (PSA) announced last month that the growth of consumer prices last November dropped to 3.7 percent, from 4.3 percent in the previous month. This is nearer the government’s low end of the target range for the year, at 3 percent to 5 percent. Among the largest decreases in prices that pushed inflation downward during the period were seen in oil and food prices.

n December inflation: Inflation was seen to go further south at the end of 2014, following the Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr.’s forecast of inflation hitting 2.4 percent to 3.2 percent in December last year. In his statement, Tetangco said their lower forecast for the month was on the assessment of lower rice prices, jeepney fares, power rates and continued rollback of oil prices during the period.

Manufacturing (November)

January 9, Friday

n October’s manufacturing data: The manufacturing data last October, as reported by the PSA, hit 7.5 percent, slowing down from the 21.1 percent seen in the same month in 2013. The main sources of the manufacturing sector during the period were printing, fabricated metal products, beverages, paper and paper products, and nonmetallic mineral products.

n November manufacturing data: In a recent economic research note, Moody’s Analytics said the country’s manufacturing sector was seen to slow down further at the end of 2014, due largely to the slower consumer demand as compared to the previous year, as well as the bad weather, which hampered productions at the second half of the year (See related story on A8). Bianca Cuaresma

A broader look at today’s business

n Sunday, January 4, 2015 Vol. 10 No. 87

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

DOTC rejects 2 proposals to replace ‘dilapidated’ Naia

T

By Lorenz S. Marasigan

HE government has rejected two separate proposals to build a multibillion-dollar airport that would replace the “dilapidated” aviation hub in Manila.

Transportation Secretary Joseph Emilio A. Abaya said his agency has disapproved the $10-billion proposals of San Miguel Corp.

(SMC) and All-Asia Resources & Reclamation Corp. (ARRC), as the Aquino administration is not bent on pursuing unsolicited deals.

He explained that auctioning off the project would remove the grueling process of subjecting it to a competitive challenge.

“For such a huge facility, we are better off conducting a transparent bidding than an unsolicited

A

S the economy continues to ride high on the back of investmentrating upgrades and with the strong economic fundamentals in place, a property consulting firm’s top executive sees that the real-estate growth experienced in 2014 will continue this year and beyond.

“The exact rate of growth is unclear at this time, but it will undoubtedly form a significant portion of the estimated GDP [gross domestic product] growth of around 6 percent plus for 2014,” Jones Lang Lasalle COO Lindsay Orr told the BusinessMirror. “For 2015, further growth is envisaged along the lines of 2014.”

While bright prospects are ahead of the property sector, the office segment for now, though, looks particularly rosy, given the increasing demand for space from business-process outsourcing companies and other traditional-office users.

Lease rates are projected to at least maintain their current levels and, in some instances, will keep on rising owing to strong market demand.

Precommitments will continue for office space, as large-scale tenantfirms vie for the same space and become more focused in pursuing their space requirement.

“Precommitting prior to completion guarantees them the expansion space likely to be needed over the next

See “Real Estate,” A2

US factories grew at slowest pace in 6 months in December

By Christopher S. Rugaber The Associated Press

W

ASHINGTON—US factory activity grew at the slowest pace in six months in December, weakened by declines in orders and production.

Yet, growth was still healthy, a sign manufacturing may help drive the economy’s expansion in 2015, as it did last year.

PESO exchange rates n US 44.6170

a wilderness of mirrors in United states-Cuba swap

proposal, and subject it to Swiss challenge,” he explained.

A Swiss challenge allows other groups to dispute the initial proposal and offer a better deal. The original proponent, however, has the right to match the highest offer to pursue with the project.

The process usually takes about a year to complete.

SMC proposed to build a 1,600-hectare international gateway somewhere in the south of Metro Manila. The airport, which Continued on A2

Consultancy firm sees vibrant growth of real-estate market

By Roderick L. Abad

Spy wars

The Institute for Supply Management, a trade group of purchasing managers, said on Friday that its manufacturing index fell to 55.5 in December, from 58.7 in November. Any reading above 50 signals expansion. November’s figure was just below a three-year high reached in October.

December’s reading is the lowest since June. But it is also close See “Factories,” A2

New course on Cuba

President Barack Obama has enacted a historical policy to renew relations with Cuba for the first time in 54 years Cuban Revolution

Bay of Pigs invasion

President Kennedy sends 1959

CIA-sponsored Cuban exiles to overthrow Castro 1961

1962

Full embargo

America imposes a complete economic embargo on Cuba

Fidel Castro overthrows President Fulgencio Batista, establishing a Socialist state.

Castro nationalizes all foreign assets and hikes taxes on American imports.

1966 Cuban Missile Crisis

Cuban Adjustment Act U.S. Congress enacts a law allowing anyone who flees Cuba and reaches the U.S. the opportunity to pursue citizenship

Cuba allows the Soviet Union to build a missile base on the island in secret, igniting a 13-day stand off. Negotiations between the U.S. and USSR led to the withdrawal of nuclear missiles from neighboring countries

Mariel Boatlift / mass migration

Cuba’s economy suffers from a spike in oil prices causing many to migrate. 1980 The Mariel boatlift is established, helping as many as 125,000 Cubans migrate to Florida

Arrest of the 1996 Cuban Five Five Cuban counterintelli- 1998 gence officers are charged 1999 with conspiracy to commit 2000

espionage in the U.S. They were found guilty in 2001

President Raul Castro

Fidel Castro retires after a long illness, handing his presidency over to his brother, Raul Castro

2008 Lift on travel restrictions 2009 President Barack Obama eases restrictions on travel to Cuba

U.S. to end 2014 Cuban isolation

President Barack Obama declares embargo a failure and enacts a policy to re-establish diplomatic relations with Cuba

Source: Council on Foreign Relations, Reuters Graphic: Tribune News Service

Helms-Burton act passed

The U.S. tightens the embargo on Cuba and attempts to weaken Cuban ties with foreign investors. The act penalized foreign companies doing business with Cuba

Elian Gonzalez incident The Clinton administration decides to send back 6-year-old Gonzalez after an attempt to immigrate to the U.S. by boat

Venezuela and Cuba

President Hugo Chavez of Venezuela and Fidel Castro sign an agreement to send oil to Cuba at a heavily discounted price in return for Cuban support and services in technical fields such as education, science, technology and health care

Arrest of Alan Gross

Alan Gross is arrested in Cuba and sentenced to fifteen years in prison after importing satellite phones, computers and modems to the country

Release of prisoners

Alan Gross is released from Cuban prison and 4 Cuban prisoners are released from the U.S.

M

ore than two weeks have passed since the White House announced that it had traded three imprisoned Cuban intelligence officers— including one convicted of conspiracy to murder—for a super spy held in a Havana prison whom President Barack Obama labeled “one of the most important intelligence agents that the United States has ever had in Cuba.”

But since the president’s announcement, there’s been only silence. Nothing more has been said of the spy or his accomplishments. Of the people released from prison as part of the deal between Washington and Havana, the three Cuban spies and US Agency for International Development contractor Alan Gross have all appeared on television to talk exultantly about their release.

GlobalEye»C3

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

News BusinessMirror

A2 Sunday, January 4, 2015

Real estate... continued from A1

year or two,” Orr said.

“Office expansions in decentralized and provincial locations will continue to happen, with numerous developments either currently under way or being planned by the country’s more established developers,” he added.

In the residential sector, around 145,000 condominium units are expected to be developed in Metro Manila over the next six years.

More than 58,000 units of these will be coming to the market in 2015 alone.

Housing projects from large developers, such as SM, Megaworld, Ayala Land Inc. and DMCI, will complete the majority of the future supply.

“There should be a stable investment demand due to the continuing positive outlook on the economy and the continuing healthy inflow of OFW [overseas Filipino worker] remittances,” Orr said.

“However, a possible point of caution arises due to the stricter regulations now being implemented by the BSP [Bangko Sentral ng Pilipinas] on banks’ lending ability, which could have a tempering effect on demand,” he added.

As to the retail sector, 2015 will be an exciting year for players, as more shopping areas are expected to rise, while operators of convenience stores will expand aggressively, thus intensifying market competition.

For the hotel or hospitality segment, Aseana City is seen to evolve, alongside Philippine Amusement and Gaming Corp.’s Entertainment City, as a top tourist destination within the next two to three years.

“Increasing levels of tourism are driving the demand for quality hotel rooms, with new hotel rooms in Entertainment City obviously focusing on the gaming sector,” Orr said.

But still, developers will remain confident on exploring opportunities to build more hotel rooms, and other leisure resorts are in the pipeline in places such as Palawan, Cebu and Bohol.

“Cebu will continue to play an important role in promoting Philippine tourism due to its amenities and accessibility. New areas in Cebu are likely to be identified for resort/leisure development, such as the Cordova Reef,” he added.

news@businessmirror.com.ph

DOTC rejects 2 proposals to replace ‘dilapidated’ Naia Continued from A1 would double the capacity of the Ninoy Aquino International Airport (Naia), would include the construction of a low-cost carrier terminal, a train system and a dedicated tollway.

Solar Group-backed ARRC, meanwhile, proposed to develop the Air Force’s Danilo Atienza Airbase and reclaim a portion of the Manila Bay to build a world-class international airport that would ease the congestion at the Naia.

While the Tieng-led Solar wanted to pursue the deal itself, SMC’s desire was for the government to adopt its feasibility study.

SMC President and COO Ramon S. Ang earlier said his company is willing to submit the study at no cost to the government, and thereafter join the public auction for the deal.

He failed, however, to officially present the proposal to the trans-

Fare hike...

portation agency, which is now awaiting the completion of the feasibility study being conducted by the Japan International Cooperation Agency (Jica) for the construction of an $11-billion airport in Sangley Point, Cavite.

Abaya said Jica has vowed to present in June the final study for the aviation hub.

“Jica is supposed to give the study to us in June. Then we will go through the approval process,” he said.

The approval process will start from various committees of the National Economic and Development Authority (Neda), such as the Investment Coordination Committee, the Cabinet Committee and the Neda Board, which is chaired

by President Aquino.

“But, realistically, the first thing is that there will be a reclamation [project]. First, you need to build a platform where the airport will be built on,” Abaya said.

continued from A8

“development projects and relief operations in other parts of the country.”

The Cabinet official said the projected P2-billion savings is equivalent to 8,240 classrooms, 82 kilometers worth of farm-tomarket roads, or 11,440 hectares worth of irrigated farmlands.

Under the 11+1 fare matrix, the base fare for a train ticket will be at P11, a peso will then be added for each kilometer of the ride.

Hence, a ride on LRT 1—from Baclaran to Roosevelt—will cost P29, while a one-way trip on LRT 2—from Santolan to Recto—will be P24; a trip on MRT 3—between

North Avenue and Taft Avenue— will cost P28.

Currently, a ride on the MRT 3 ranges from P10 to P15, while a ride on LRT 1 and 2 costs from P12 to P15 and P20, respectively.

The fare increase, according to the Philippine chapter of the International League of Peoples’ Struggle Chairman Elmer Labog, is “injurious to the public,” owing to the Aquino administration’s lack of political will to hike the minimum wage.

Lawmakers, on the other hand, were at odds on the matter, with some supporting the increase, while others are against it.

Legislators from the blocs lo-

The Philippine Reclamation Authority, he added, is now “helping out on that aspect.”

In a discussion paper, the Japanese experts underscored the need to develop a new aviation hub that will replace the current airport in Manila, which currently has four terminals that are seen to burst at their seams this year.

Jica proposed that the new international gateway be constructed in Cavite to meet the parameters set by the transportation agency.

The future airport will boast of four runways, which can handle 700,000 aircraft movements per year. It will have a rated capacity of 130 million passengers annually.

The consultants noted that the deal can be bankrolled through the government’s Public-Private Partnership Program, mixed with funding from the official development assistance. The commercial operations of the new airport should start by 2025.

Separately, the government is mulling over the prospect of constructing a new terminal somewhere near C-5 Road, which is the fifth beltway in Manila.

The DOTC also wants to auction off the operations and maintenance of the Naia to tap the expertise of foreign airport operators to improve the services at the aging aviation hub.

The deal will also involve the redevelopment of the four terminals of the decades-old airport.

The optimal capacity of the airport in Manila’s four terminals is at 30 million passengers yearly, while the maximum capacity is at roughly 35 million passengers per year.

This year the airport is expected to handle 37.78 million passengers, the bulk of which, or 21.31 million, would be domestic travelers, while the remaining 16.46 million would be international passengers. Come 2040, Naia’s passenger traffic would reach 101.49 million.

cated at the provincial Luzon, Visayas and Mindanao said in a joint statement that the fare increase was justifiable, as this would result in more social-infrastructure projects in their districts.

But for Party-list Reps. Neri J. Colmenares and Carlos Isagani T. Zarate of Bayan Muna, the fare increase was just a part of the Aquino administration’s “escape hatch whenever it needs to bail out its public utilities buried in debt due to poor management and corruption.”

The two lawmakers will also file their petition for a temporary restraining order against the fare hike’s implementation on Monday.

A congressional hearing to investigate the fare increase is set on January 8. Minimum-wage earn-

ers will be hit hard by the increase in the increase of MRT and LRT fares, workers belonging to a network of the Trade Union Congress of the Philippines (TUCP) said on Saturday.

Alan Tanjusay, spokesman for the TUCP-Nagkaisa, the daily takehome pay of workers, especially the minimum-wage earners, will be affected by the fare increases.

Tanjusay explained that the prevailing P466 daily wage rate in the National Capital Region is affected by inflation and by the mandatory salary deductions, resulting to a net take-home pay of P362.

This will make it more difficult for families of minimum-wage earners to survive, the group said.

3-DAY EXTENDED FORECAST JANUARY 4, 2015 | SUNDAY

TODAY’S WEATHER

JAN 6 TUESDAY

METRO MANILA

21 – 30°C

21 – 30°C

TUGUEGARAO

19 – 27°C

19 – 28°C

JAN 7 WEDNESDAY

NORTHEAST MONSOON AFFECTING LUZON. (AS OF JANUARY 3, 5:00 AM)

Northeast Monsoon locally known as “Amihan”.

It affects the eastern portions of the country.

It is cold and dry; characterized by widespread cloudiness with rains and showers.

LAOAG

BAGUIO

LAOAG CITY 18 – 30°C

TUGUEGARAO CITY 19 – 27°C

SBMA/ CLARK

BAGUIO CITY 11 – 22°C SBMA/CLARK 22 – 29°C TAGAYTAY CITY 19 – 27°C

TAGAYTAY

LEGAZPI

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

JAN 5 MONDAY

to the average for all of 2014 and remains at a solid level. Americans are buying more cars and appliances, boosting demand for factory-made goods. Economists also forecast that businesses may spend more on industrial equipment this year, which would also lift output.

A labor dispute at West Coast seaports, from San Diego to Seattle, has interrupted the shipment of raw materials for many manufacturers, the ISM survey found. This has disrupted production and likely contributed to the lower reading.

Despite the decline, most economists are optimistic about manufacturing’s prospects in 2015.

“These were readings that in any ordinary time would be considered excellent,” Guy Berger, an economist at RBS Securities, wrote in a note to clients.

The survey’s measure of employment rose to a four-month high, evidence that factories added jobs last month. That is a good sign for the December jobs report, which will be released next Friday.

US manufacturers are still growing, despite struggling economies overseas. A measure of overseas demand for US goods fell last month, the ISM survey found, but remained in expansion territory. Most economists are confident that the US market is large enough to sustain US factory growth this year.

“The strength of domestic demand will ensure that industry and the wider economy still perform particularly well in 2015,” said Paul Dales, an economist at Capital Economics.

Factory activity in China contracted last month for the first time since May, according to a survey by the bank HSBC Corp.

JAN 6 TUESDAY

JAN 7 WEDNESDAY

21 – 31°C

METRO CEBU

24 – 31°C

24 – 30°C

24 – 30°C

20 – 28°C

TACLOBAN

24 – 28°C

24 – 29°C

23 – 29°C

20 – 30°C

CAGAYAN DE ORO

18 – 29°C

12 – 22°C

23 – 29°C

20 – 27°C

20 – 29°C

24 – 31°C

24 – 32°C

24 – 32°C

METRO DAVAO

12 – 23°C

24 – 30°C

24 – 31°C

23 – 30°C

24 – 33°C

25 – 33°C

20 – 28°C

12 – 23°C

23 – 31°C

ILOILO/ BACOLOD 24 – 30°C

TACLOBAN CITY 23 – 28°C

METRO CEBU 25 – 31°C

ZAMBOANGA CITY 24 – 33°C

PUERTO PRINCESA

ILOILO/ BACOLOD CAGAYAN DE ORO CITY 24 – 30°C METRO DAVAO 24 – 29°C

23 – 29°C

24 – 29°C

ZAMBOANGA

24 – 31°C

SUNSET

MOONSET

MOONRISE

6:22 AM

5:39 PM

5:14 AM

4:59 PM

24 – 30°C

HALF MOON FULL MOON

24 – 31°C

24 – 31°C

24 – 32°C

5 : 07 AM

JAN 05 -0.18 METER 2:31 AM 12:53 PM Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms

Light rains

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

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

www.panahon.tv

SABAH CELEBES SEA

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

Cloudy skies with rain showers and/or thunderstorms.

24 – 31°C

25 – 34°C

SUNRISE

DEC 29

24 – 30°C

24 – 32°C

20 – 28°C

LEGAZPI CITY 23 – 28°C

PUERTO PRINCESA CITY 24 – 30°C

3-DAY EXTENDED FORECAST

continued from A1

TAIL-END OF A COLD FRONT AFFECTING EASTERN VISAYAS.

Tail-end of a cold front is the extended part of the boundary, which happens when the cold air and warm air meet. This may bring rainfall and cloudiness over affected areas. It is felt at the northern hemisphere winter season.

METRO MANILA 20 – 30°C

JAN 5 MONDAY

With Jovee dela Cruz and Jonathan Mayuga

Factories...

@PanahonTV

9:22 PM

1.10 METER

Partly cloudy to at times cloudy with rainshowers

EconomySunday

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

BusinessMirror

Lawmaker to Palace: Control inflation and reduce poverty

A

LAWMAKER over the weekend urged Malacañang to step up its efforts in addressing the public’s concerns, such as controlling inflation and reducing poverty, as majority of Filipinos expressed optimism that 2015 will be a better year for them.

Nationalist People’s Coalition Rep. Sherwin Gatchalian of Valenzuela City, citing a recent survey, said the top national concerns of the people have not changed “amid the lack of action on these issues, most people are still positive about the year ahead, proving the resilience and neversay-die culture of Filipinos.”

Gatchalian was referring to the fourth-quarter survey by Pulse Asia, which showed that, despite the various political and economic concerns being faced by the country and its people, “nearly nine in 10 Filipinos [88 percent] say they will face the coming year with hope—the predominant sentiment in every geographic area and socioeconomic class [84 percent to 91 percent and 84 percent to 90 percent, respectively].”

The same Pulse Asia survey indicated “controlling inflation” as the top on the list of most urgent national concerns, followed by improving/ increasing the pay of workers. Fighting graft and corruption in government, creating more jobs and reducing poverty of many Filipinos were listed on the third to fifth spots.

Gatchalian, senior vice chairman of the Committee on Metro Manila Development, said there is an urgent need for genuine action on such issues.

“A lot of changes have been done by the Aquino administration, but there is still a lot of work to be accomplished before the President’s term ends next year,” he said.

“These concerns may be national in scope but they affect every working Filipino down to their very bones. It is high time for the government to set aside differences in order to work

together according to the needs of their bosses,” Gatchalian added.

He also said the government could start 2015 right by postponing the planned fare hike in the Metro Railway Transit (MRT) and the Light Railway Transit (LRT) until improvements in their systems have been undertaken for the safety and convenience of their commuters.

The fare adjustments, which the Department of Transportation and Communications announced, will take effect on January 4.

The base fare for the LRT lines 1 and 2 and the MRT will be P11 and an additional P1 will be charged for every kilometer accumulated from the station of origin.

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

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

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

“It has always been my position that service improvement in the MRT and LRT should come first since it would be easier for the government to impose fare hikes if the people can see that higher fares are translated to better service,” he said.

Gatchalian also questioned the reason and the timing of the proposed water-rate hike by the Manila Water and Maynilad, which will take effect on Monday, January 5.

Gatchalian said the proposed increase in water rates was based on the foreign-currency differential adjustment to be implemented by the two utility firms at a time when the peso is still strong and oil prices continue to drop in the international market. Jovee Marie N. dela Cruz

PHL growth seen at 6.5 percent in 2015

T

By Genivi Factao

he Philippine economy will likely grow 6.5 percent this year and will surprisingly end the difficult year of 2014 with a 6.2-percent gross domestic product (GDP) growth.

BDO First Vice President and Chief Market Strategist Jonathan L.Ravelas sees the GDP growing by 6.2 percent by year-end, slower than the actual 7.3 percent posted in 2013.

In the “2015 The Year Ahead Philippines Still Shining Through” research note, Ravelas said the GDP growth in the first three quarters of 2014 stood at 5.8 percent, a sharp

L

ARGE regional banks in Southeast Asia are expected to use their vast resources to gain foothold in the credit-card market under the Association of Southeast Asian Nations (Asean) integration scheme.

Credit Card Association of the Philippines Executive Director and Spokesman Alex Ilagan said the credit-card industry players must

fruits and vegetables on a pedestrian overpass near the Balintawak Public Market in Quezon City. Kevin dela Cruz

ICTSI installs new quay cranes in Poland port

T

HE Polish subsidiary of International Container Terminal Services Inc. (ICTSI) last month took delivery of two new quay cranes (QC), boosting the Baltic Container Terminal’s (BCT) status as a key port in Eastern Europe and in the Baltic region.

BCT’s new quay cranes are more than 60 meters high, have a reach of more than 50 feet over the water, and have a capacity of more than 60 tons.

They arrived in Gdynia on December 7 aboard the ship Zhen Hua 8.

“It is certainly a very important date in the history of the BCT. Not only will the new cranes replace the old ones damaged two years ago, they will also increase our vessel-handling capacity significantly. It is another step toward serving large ocean ships in Gdynia,” said Krzysztof Szymborski, BCT CEO. The QC are part of a 200-million ($58-million) investment program, which was initiated in 2012. Cofunded by the European Union and the Infrastructure and Environment Operational Program, the investment covers the purchase of reloading equipment, including railway gantry

cranes, straddle carriers and container trailers. It also involved the surface replacement of storage yards and the rollout of specialized terminal computer systems.

The cranes were supplied and manufactured by Shanghai Zhenhua Heavy Industries Co. Ltd. Each crane can service 19-bay wide container vessels, which, in practice, are ships with 13,000 20-foot equivalent unit capacities.

Meanwhile, retrofitting of the BCT railway terminal has also been carried out in coordination with the Management Board of the Gdynia Port Authority.

The expansion will facilitate the simultaneous servicing of fulllength trainloads.

The investment program will increase BCT’s overall capacity by 50 percent.

ICTSI is an international operator of common-user container terminals serving the global container-shipping industry. ICTSI is the largest port operator in the Philippines and has a portfolio of 29 container terminal operations in 21 countries in six continents.

UN Peru climate meet lauds GCF Board

L

EGAZPI CITY—The Philippines and other developing countries have reasons to be proud of the commendation given by the United Nations Convention on Climate Change (UNFCCC) to the Green Climate Fund (GCF) leadership, under Albay Gov. Joey Salceda, for fulfilling the complex requirements for its operationalization, and for raising an initial $10.2 billion for its mobilization during its first year..

Salceda co-chaired the GCF Board where he represented Southeast Asia and the developing countries. His German counterpart represented the developed countries. Their term ran from October 2013 to October 2014.

The recently concluded UNFCCC Conference

decline from last year’s growth of 7.5 percent, and falls below the government’s 6.5-percent to 7.5percent target this year.

“While the data may be quite disappointing, the Philippines is still among the fastest-growing economies in emerging Asia,” he said.

“For 2015 BDO sees the economy growing by a healthier 6.5 percent

to be driven by the robust performance of the private sector and increased government spending,” he added.

The report said China is expected to end the year with 7.4-percent GDP growth and 7 percent in 2015. Malaysia is seen to slow down from 5.8-percent growth in 2014 to 5.2 percent in 2015, Indonesia at 5.1 percent and 5.4-percent GDP growth for 2014 and 2015, respectively. Singapore, 3 percent and 3.5 percent; India, 5.2 percent and 5.5 percent; South Korea, 3.5 percent and 3.6 percent; Taiwan, both 3.5 percent; Hong Kong, 2.3 percent and 3 percent; Thailand, 0.8 percent and 4 percent for 2014 and 2015, respectively.

Even with the uncertainties from both the local and foreign fronts, the country is seen to perform well, given a confluence of affirmative factors.

The report cited the Philippines’s improved fiscal position and a current account surplus.

The strong domestic private consumption has, in a way, insulated the country from external shocks and volatility and the country’s favorable demographics will drive consumer demand.

Moving forward, the Philippine economy is seen to post a sustainable and stable growth rate of 6 percent to 7 percent, boosted by investments in infrastructure, human capital and the continued pursuit of good governance.

“While geopolitical risks, elevated inflationary pressures and higher interest rates threaten the country’s growth story, the Philippines’s sound fundamentals should allow the country to weather these adversities,” he said.

Regional banks to spur competition in credit-card market

Finding the right spot An elderly enterprising vendor may just have found the right spot to sell her merchandise of assorted

By Lorenz S. Marasigan

Sunday, January 4, 2015 A3

of the Parties (COP) held late December 2014 in Lima, Peru, has made special mention of the GCF performance during its 20th session. The commendation was contained in the COP 20 Decision document. It was in response to the GCF 2013-2014 report. In effect, the GCF has now been equipped with the mechanics and financial requirements for its initial mobilization, put in place during Salceda’s term.

“Under our chairmanship, the GCF Board achieved—despite skepticisms and deep divisions—two major milestones: the completion of the eight prerequisites for operationalization and the raising of $10.2 billion for its initial program mobilization,” Salceda said. PNA

step up, as competition is expected to heat up under the Asean economicintegration regime.

He said regional banks can leverage on their vast resources to gain a foothold in the credit-card market in the Philippines that can serve as their stepping stone in entering the consumer-banking sector.

“Existing players will have to continue strengthening their risk

management, customer-service distribution systems in order to remain competitive with the entry of big players, who have the capability to take on more risks due to their much-larger resources compared to local banks,” he told the BusinessMirror.

With the economic integration, the entry of large regional banks is expected to spur growth in the

credit-card industry.

He said these larger banks with vast resources and bigger appetite to take more risks will stimulate competition in the market and is seen to bring in new variants of credit-card products.

The new credit-card variants that will be introduced, are seen to penetrate the finer segments in the market. Genivi Factao

SundayV

Busine

A4 Sunday, January 4, 2015 • Editor: Alvin I. Dacanay

editorial

Wishing Japan success with its ‘Abenomics’

W

E fervently hope that Japanese Prime Minister Shinzo Abe’s economic-stimulus program, called “Abenomics”, will finally energize his country’s economy and lift it out of the recession and deflation that are currently hobbling it. Japan is the biggest creditor-nation in the world, and the main source and donor of the generous official development assistance, or ODA, that has come our way in the last three decades.

For the last five years, the Japanese economy has been in limbo, going in and out of recession. Fiscal and monetary policies have been reoriented by the government to deal with the problem, but obviously with little effect. Now the recession has been compounded by deflation.

Initiated two years ago, Abenomics consists of a massive spending program aimed at transferring money to corporations, households and individuals to enable them to make more investments and boost consumer spending. Two of the program’s noteworthy features are its encouragement of the business sector to raise wages to expand workers’ purchasing power, and a substantial reduction in corporate and individual income taxes.

The monetary side comprises purchases of government securities from banks and the rest of the public to effectively increase the money supply and defeat deflationary pressures. The exchange rate has also been allowed to weaken, from ¥80 to the current ¥110 per US dollar.

The current drop in the price of oil should prove a blessing to the program, since Japan is one of the world’s biggest oil importers.

Commentators are not unanimous in the conclusion reached that the program will be successful. Some find it inadequate and conventional, while others find it responsive and capable of delivering the desired results.

If one is interested to know what small- and medium-scale industries can do to contribute to an economy, he or she only has to go to Japan. Because of their technical efficiency, small- and medium-sized enterprises in Japan provide some of the inputs of the big corporations that are well-known throughout the world for the high quality and durability of their products.

Japan is also the source of unequaled expertise in transportation development.

Truly remarkable are its expressways and the way they have been conceptualized and designed to maximize travel benefits from decidedly limited spaces. Perhaps, even more impressive are its railways and bullet trains, among other advancements.

Recently, the Japan International Cooperation Agency presented to the Philippines a plan for the expansion and modernization of the transportation network for the greater Metro Manila area. According to the Department of Transportation and Communications, we shall follow the plan in responding to the short- and long-term transportation needs of the area.

Through the sound and fury of it all, the fact is that Japan will be capable of greater generosity to the world, principally to its neighbors, if its economy is healthy.

We wish the Japanese people success in lifting their economy out of recession and deflation, and enabling it to perform a greater role in the transformation of developing nations.

Understanding education for global citizenship

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HMEDABAD, India—Education for sustainable development (ESD) brings together concerns about the environment, economic development and social aspects. Since 1972, when the first United Nations (UN) Conference on the Human Environment was held in Stockholm, Sweden, there has been increasing awareness of the intricate link between conserving the environment and human development.

The fact that our lifestyles and the way we have developed have a major impact on the environment was known earlier. Rachel Carson’s 1962 book, Silent Spring, had been an eye-opener, especially in the United States, where it was published.

But the 1972 UN Conference on the Human Habitat was, perhaps, the beginning of the realization that development and the environment had to be dealt with together. By the time of the first Rio de Janeiro conference in 1992, the deterioration of the environment was recognized as a global issue.

Both the conventions on biodiversity and climate change were formulated at this conference. It was in-

Gospel

Sunday, January 4, 2015

creasingly clear that countries could no longer solve their problems at the national level. With greater awareness, especially on climate change, one realized that what happens in one part of the planet has an impact on another.

Notwithstanding what thenPresident George H.W. Bush declared at Rio—that “the American way of life is not up for negotiations”—the world came to realize that, ultimately, these issues had to do with people’s lifestyles. The development paradigm that had emerged was carbon-intensive and extremely wasteful.

The global-footprint measure was developed in 1990 by Canadian ecologist William Rees and Swiss-born regional planner Mathis Wackernagal at the University of British Columbia. It was a good way of knowing just how an individual’s action impacted the planet. Since the 1970s the total human footprint has exceeded the capacity of the planet.

While the global debate then and, to a large extent, even today seems based on the idea that making changes in policy and introducing new technologies can somehow shrink this footprint to sustainable levels, this assumption is widely questioned.

At the core of the change required is the transformation that happens in the way people relate to the planet and how we produce, consume and waste resources. It is not laws alone that can change people’s behavior, but people themselves behaving with a sense of responsibility. This sense of responsibility is at the heart of the concept of citizenship.

Global citizenship, therefore, almost naturally emerges from

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an understanding of environmental and sustainable development. ESD, therefore, becomes the foundation for global citizenship education (GCE).

A global citizen is not someone who can be passive, but needs to contribute. ESD, unlike most formaleducation programs, has the necessary action component built into it.

ESD, though shortened to three letters, actually stands for four words.

The missing word in the abbreviation is “for”, a word as important as the other three.

It is not sustainable-development education that would indicate it is about teaching people about sustainable development (SD).

What “for” does is put an action goal at the end of the education process. It is not just to increase public awareness and knowledge about SD, but, in fact, to act to achieve it.

The Global Education First Initiative of the UN secretary-general speaks of global citizenship as one of the three key concepts that the world needs to strive for in education today. GCE involves widening horizons and seeing problems from different points of view. Multistakeholder discussions are an important part of a GCE program.

While we may strive for this, it is not always easy to understand and experience different points of view.

The Center for Environment Education (CEE) in Ahmedabad, India, along with CEE Australia, has launched the Global Citizenship for Sustainability (GCS) Program, which involves connecting children in schools in different countries around a nature-based theme.

For instance, Project 1600 connects eight schools on the coast of Gujarat in western India with a similar number of schools on the

ow when Jesus was born in Bethlehem of Judea in the days of Herod the king, behold, wise men from the East came to Jerusalem, saying, “Where is He who has been born king of the Jews? For we have seen His star in the East, and have come to worship Him.” When Herod the king heard this, he was troubled, and all Jerusalem with him; and assembling all the chief priests and scribes of the people, he inquired of them where the Christ was to be born. They told him, “In Bethlehem of Judea; for so it is written by the prophet: ‘And you, O Bethlehem, in the land of Judah, are by no means least among the rulers of Judah; for from you shall come a ruler who will govern my people Israel.’”

Then Herod summoned the wise men secretly and

coast of Queensland in Australia.

Through projects concerning the marine environment, children living in very different societies at different levels of development compare notes. The exchange forces students to think out of the box and understand issues from a very different perspective, from a different part of the globe.

Internships where students spend time in countries and environments that are very different from their own are also a very effective tool for GCE. Increasing global connectivity has also opened up possibilities for GCE that would have been unimaginable just a few years ago.

The work on ESD done during the Decade of Education for Sustainable Development, led by the UN Educational, Scientific and Cultural Organization, and partnered with a number of organizations across the globe, has set the foundation toward GCE. Tools to measure GCE are still under development, as is the concept itself.

The Brookings Institute, through its Global Citizenship Working Group of the Learning Metrics Task Force 2.0 Program, has started on these tools.

The continuous feedback and strengthening of the program should lead to specific insights on GCE, much as the last decade of work in ESD has taught the global community the finer points of creating a sense of responsibility to the planet while engaging in a development process.

Kartikeya V.Sarabhai is the founder and director of the Center for Environment Education, headquartered in Ahmedabad, with 40 offices across India.

ascertained from them what time the star appeared; and he sent them to Bethlehem, saying, “Go and search diligently for the Child, and when you have found Him bring me word, that I, too, may come and worship Him.” When they had heard the king they went their way; and lo, the star which they had seen in the East went before them, till it came to rest over the place where the Child was.

When they saw the star, they rejoiced exceedingly with great joy; and going into the house they saw the Child with Mary His mother, and they fell down and worshiped Him. Then, opening their treasures, they offered Him gifts, gold and frankincense and myrrh. And being warned in a dream not to return to Herod, they departed to their own country by another way.— Matthew 2:1-12

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opinion@businessmirror.com.ph • Sunday, January 4, 2015 A5

Theology on its knees N Free Fire

By Teddy Locsin Jr.

ICOLE WINFIELD of the Associated Press reported recently that Pope Francis had urged Catholic theologians to listen to ordinary folk and not just to themselves talking. “The primary subject of theological inquiry must be the word of God in Scripture,” Francis said. “But so also are the good words and deeds of laypeople.”

Because Revelation ended with Jesus, theologians themselves, citing Scripture, said the future must now be read in “the signs of the times.” This is to say, in the way people think and feel about how to cleave closer to Christ. Ordinary folk may be wrong, but sometimes they can be right.

So Francis urged theologians to listen to them, as well, although not when people just want more sex and money. In those cases, it is just the Devil talking through people, particularly the sponsors of the reproduction-health law, who wanted to

legislate extreme sexual satisfaction into happening.

When Francis was Jesuit provincial, he sent candidates for the Society of Jesus to the slums to compete with priests espousing liberation theology in bringing help to the needy without patronizing them, like Marxists do. To be sure, the rightists just ignored them and hoped that, in their misery, the poor would accept any work condition and indignity just to make it from day to day.

He told them, in the words of Pedro Arrupe, SJ, the 28th superior general of the order, to “inculturate” themselves with the poor so that, by observing how they worship—ceaseless recitations of the rosary, endless novenas, pressing lips to the feet of statues of saints, caressing the wounds carved and painted on a wooden Christ, going on grueling pilgrimages with empty stomachs—the young Jesuits-to-be would be able to dis-

Pope Francis delivers a speech during his celebration of New Year’s Eve vespers Mass at Saint Peter’s Basilica at the Vatican on Wednesday. AP

cern, through the manner of it, the true spirit in which the genuine faithful approach Jesus, which is to say, with total trust that He

will save them: from illness, from hunger, from losing even whatever they have left, from anxiety over the fate of their children, from

shame at what they have become and, finally, from a fatal anger at their oppressors among the rich and famous.

Francis said the people of God— though not the merchants of capital—share with expert theologians “the work of discerning God’s ways.”

He called for “a theology on its knees,” and not on its crimson butt.

Anyway, Francis rightly pointed out that the pope’s infallibility is always around to expand the intellectual parsimony of theologians and cut down the extravagance of emotion of laypeople in matters of God and salvation. Indeed, Christ promised Peter, the first pope, the keys of the Kingdom that bind everything in heaven and on earth with the right teachings, over which the powers of Hell cannot prevail. Indeed, again, the pope can never be wrong. That is the glory of being a Catholic: So long as we follow the pope, we can never go wrong.

The Hippocratic oath and the terminally ill

By Nora Zamichow & Ken Murray Los Angeles Times (TNS)

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HE Hippocratic oath, a roughly 2,000-year-old text with only marginal relevance to medicine today, continues to have an outsize influence on us.

The oath’s language and many of its concepts are more archaic than a washboard. A modern surgeon is not going to swear by Apollo. Nor is he going to teach “without reward” or pledge to comport himself “in a godly manner.”

Most of the Hippocratic oath has been revised over centuries. Today it is most often cited as a single phrase, “First do no harm,” though those words were not contained in the oath as written by Hippocrates. The closest he gets: “With regard to healing the sick, I will devise and order for them the best diet, according to my judgment and means; and I will take care that they suffer no hurt or damage.”

But even if we accept the oath in its modern terminology, how do we define “harm”?

The history of medicine is littered with examples of doctors inadvertently doing harm. In the medical profession’s attempts to ward off morning sickness, for instance, doctors administered thalidomide to pregnant women, causing countless deformities among babies. So do we revise our oath to say, “Do no intentional harm?”

The question of what constitutes harm has come to the fore recently in a number of ways.

Can doctors ethically be involved in executions?

Should they offer advice with regard to torture?

And then there is the debate over euthanasia for terminal patients. Opponents say physicians can’t ethically be involved in ending patients’

lives because of their pledge not to do harm.

As Hippocrates put it: “Nor shall any man’s entreaty prevail upon me to administer poison to anyone.” But proponents counter that doctors do harm by forcing terminally ill patients to endure pain and suffering when they would like to end their lives.

Let’s agree that by doing no intentional harm, we expect doctors to respect an individual’s desire to live. But what if that individual, like Brittany Maynard, has a terminal disease that doctors predict will result in a painful death? Which causes more harm: forcing the terminally ill to suffer and live or allowing them to die without pain?

Most Americans support the idea of allowing terminally ill patients to end their lives, according to two recent polls. And physician-assisted suicide is legal in several US states.

As many doctors point out, since medicine has already discarded the vast majority of the Hippocratic oath, why adhere to the sentence about poisoning, which probably was aimed at reminding physicians not to allow themselves to be enlisted in murder plots?

“The deepest ethical principle restraining the physician’s power is not the autonomy or freedom of the patient; neither is it his own compassion or good intention,” wrote Dr. Leon Kass of the University of Chicago and author of the influential article “Neither for Love nor Money: Why Doctors Must Not Kill”. “Rather, is it the dignity and mysterious power of human life itself, and therefore, also what the oath calls the purity and holiness of life and art, to which [the doctor] has sworn devotion.”

But, perhaps, we should set aside the debate over the oath and what it means. Should we

AN etching of a bust of the Greek physician Hippocrates, regarded as the “Father of Medicine.” J.G. DE LINT/WIKIMEDIA COMMONS

allow our dedication to an ideal of “the purity and holiness of life” to outweigh an individual’s stated choice of forgoing pain and suffering? If we allow medicine to prolong life, should we also allow it to shorten life for the terminally ill?

We could, however, skirt the controversy entirely: What if we created another class of medical professionals known as death doulas, who could fill a gap between treatment doctors and hospice workers?

During childbirth, some women engage a doula to act as their advocate, ensuring that, as much as possible, the woman’s wishes are

followed. Such a position could also be created to oversee the end of life for the terminally ill.

Most of us know how easy it is to lose one’s footing stepping in a hospital. Sometimes, it’s because of unforeseen medical events. Other times, it may be a disagreement on how to proceed in a complicated case. A death doula’s job would include ensuring, to the extent possible, that a patient’s stated desires are obeyed.

And if we are squeamish about doctors “violating” their ethics and prescribing lethal medication for the terminally ill who request it, we could shift this responsibility to licensed doulas, after physicians certify that they can no longer help the patient.

In one recent study, 12 percent of doctors received one or more requests from patients asking about physician-assisted suicide; and an additional 4 percent received one or more requests for euthanasia.

Another recent study put the numbers even higher: 57 percent of today’s doctors have received such requests.

Don’t we owe it to our doctors to provide guidance in such matters? Do we want each doctor to grapple with these decisions individually?

Clearly, we can no longer hide behind the flimsy shield of the Hippocratic oath. The drumbeat for change has begun. To pretend otherwise shows a lack of compassion and a disregard for not just for medicine but for the dignity of life.

Nora Zamichow is a Los Angeles journalist and former Los Angeles Times staff writer. Dr. Ken Murray is a retired clinical assistant professor of family medicine at the University of Southern California.

Thank-you rituals matter, so go write that note

By Gina Barreca

The Hartford Courant (TNS)

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F we were better at saying “Thank you”, there wouldn’t be 16 aisles in every stationery store displaying cards in multiple typefaces geared toward a wide range of age groups and socioeconomic demographics inscribed with those two words.

If we were better at expressing thanks, we wouldn’t need a prepackaged statement accompanied by glitter, a verse from the Bible (or Kahlil Gibran) or a character from Peanuts to do it for us.

If expressing gratitude were easy, we wouldn’t have to lock our offspring in their rooms for weeks at a time, sustaining them via flat foods placed on a tray pushed under the door, until they successfully completed their thoughtful thankyou notes.

If an honest and heartfelt illustration of our pleasure at receiving a

gift were uncomplicated, there would be no stress.

The otherwise cheerful pair of newlyweds who disagreed about whether he had to do more than sign his name to the thank-you cards she was sending out for the wedding gifts would never have had, for example, the following conversation: “You have to do more than sign your name. It’s not like autographing baseballs. You’re supposed to tell them how much their present meant to you.”

“I don’t even remember what it was. It’s nice that they brought something, but mostly I’m just glad they were here. And I told them that when I saw them.”

But they did have this conversation, and although the bride married him because he was honest, she, nevertheless, wept a bit.

And then she learned to forge his handwriting.

If they stay together, it’s a winwin. But if they split? I suspect he’ll

discover that everything they own is in her name, including the house, the cars and his shoes. His signature will be on every piece of paperwork, too.

But I digress.

The real issue is this: It’s important to learn how to be grateful appropriately. That’s why we torture our children into writing notes and learning how to offer gratitude both cheerfully and gracefully—because the opposite of gratitude looks suspiciously like greed, pride and hubris.

Ouch, right?

You thought it was simply laziness, torpor or the shrugging off of anachronistic habits that makes those notes hard to write, and even those conversations awkward to enter. (“Did you thank your brother for sending you that chain saw?” “Nah, he knows it’s what I wanted. It’s fine.”)

I believe that there are larger and scarier shadows behind the absence of thanks: When gratitude goes missing, ingratitude rushes in to fill the void. Entitlement and insolence

follow quickly and slam the door behind them.

It’s not pretty.

We’ve convinced ourselves that thank-yous are merely formulaic and ritualistic. They are; it’s true.

But that’s exactly why we have to do them: rituals matter.

Rituals have mattered to every culture since we agreed to start peeing outside the cave. Everybody has to agree to perform the ritual or else risk living in a state of perpetual unpleasantness.

Yet, it’s as if we’ve come to believe that we can outsource our rituals— or take shortcuts with them. We reassure ourselves that a nod of the head, a three-letter text or a lack of complaint is a sufficient display of acknowledgment.

That’s not only misleading; it’s fiction. Thank-yous matter.

Oddly enough, of the 657 books on gratitude now published every week, few offer help. That’s because we’re being encouraged to show gratitude

to the universe at large (“I have the attitude of gratitude for rainbows and puppies”), but being let off the hook when it comes to addressing those actually in our lives.

“Thank you for listening to me when I’m down,” we should say.

“Thanks for always making me welcome in your home.” Both “Thanks for helping me when I struggle” and “Thank you for helping me celebrate” are important.

“Thank you” (like “I love you” or “I’m sorry”—other short phrases appearing in many aisles of card stores) becomes easier to say the more often it’s said.

The best way to offer thanks is simply to begin: Pick up a pen, a phone or your feet off the floor and continue the conversation someone else started with a gift.

Gina Barreca is an English professor at the University of Connecticut and a feminist scholar who has written eight books.

NewsSunday

A6 Sunday, January 4, 2015 • Editor: Vittorio V. Vitug

BusinessMirror

DND to COA: What QRF misuse?

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HE Department of National Defense (DND) on Saturday strongly denied reports claiming that it has misused its “quick reaction funds” (QRF). “We reiterate that the DND released and used its QRF in its mission to include capacitating stakeholders for disaster preparedness/mitigation and operations during the disaster itself.

This is so that losses and damages may be limited and that conditions may be quickly normalized,” DND Spokesman Dr. Peter Paul Galvez said.

As defined under the Government Appropriations Act, the QRF is a built-in budgetary allocation that represents predisaster or standby funds for agencies in order to immediately assist areas stricken by

catastrophes and crises.

Galvez said the QRF allocated for the DND, as mandated, is used for mobilization and preparedness activities.

The Commission on Audit (COA)

earlier claimed that a huge percentage of the DND QRF, amounting to P352.5 million, was misused in paying for the military’s fuel consumption and repairs of its offices, rather than utilizing the money to help the victims of natural and man-made disasters.

“This DND QRF varies from an other national government agency QRF which, for example, in the case of the DSWD [Department of Social Welfare and Development] QRF are used for relief goods and social services; and, likewise, the DPWH [Department of Public Works and Highways] QRF, which is used to clear and repair roads and bridges to make them passable at the soonest instance,” he said.

“Hence, critical to the mobilization, so that the DND-AFP [Armed Forces of the Philippines can respond, is the provision of fuel for all aircraft, ships, trucks and other equipment that were placed on stand-by and which were employed for this purpose,” he said.

Galvez also said the transport to and from the calamity-affected areas was a primordial element of any

emergency-response activity.

He also said it was critical that relief goods, rescuers/responders, ancillary workers that deliver social services, repair materials, tents and communication equipment and so forth need to be transported to disaster-affected areas immediately “to overcome human sufferings.”

“In fact, during ‘Yolanda’ in November 2013, fuel allocated as war reserves were utilized as we are committed not to stop until the job is done; and this same fuel needs to be replenished,” Galvez pointed out.

Moreover, predisaster activities involve the organization, training and maintenance of response units (including the AFP) for actual disaster-response operations hence; funds were programmed and released for these purposes.

Galvez also said it was essential that capacities and capabilities were enhanced, particularly for the AFP, which are among the first responders in disaster-response operations, and the Office of Civil Defense, which administers the comprehensive national civil defense and disaster-risk and -reduction management program. PNA

Over P27-M assistance extended to ‘Seniang’ victims, DSWD says

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he Department of Social Welfare and Development (DSWD) said on Saturday a total of P27,675,941 combined amount of assistance was extended for families affected by Typhoon Seniang, which exited the Philippine Area of Responsibility on Friday.

According to DSWD Secretary Corazon J. Soliman, the assistance was given to regions 4B, 6, 7, 8, 10, 11 and Caraga.

From the amount, about P19,781,831 came from DSWD, while the affected local government units gave P6,053,110; Department of Health (DOH) with P308,000; and other non-governmental organizations, P1,533,000.

The number of evacuation centers as of Friday went down to a total of 141 as some evacuees went back to their homes.

Food assistance were both given to those who are still staying inside the evacuation centers and those outside the evacuation centers who have difficulties in getting food supplies as the areas where they usually pass through were submerged with deep waters. PNA

Do it with charm

A wide array of charms are being sold in several bazaars and stores in Binondo, Manila, with the start of another brand-new year. The charms are believed by many to give luck and good fortune to anyone who wears or possesses them. Roy Domingo

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BIFF kills Army soldier, wounds 3 others in Sultan Kudarat and Maguindanao

By Priam F. Nepomuceno Philippines News Agency

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soldier from the 33rd Infantry Battalion was k i l led , wh i le t hree of his companions were wounded after a still-undetermined number of B a ngs a moro I sl a m ic Freedom Fighters (BIFF) simultaneously attacked military detachments in Maguindanao and Sultan Kudarat provinces early Saturday morning.

The simultaneous attack on the Kulasi Detachment at Barangay Kulasi, General Salipada K. Pendatun town; Sumilalao Detachment at Sitio Sumilalao Barangay Katiku, President Quirino, Sultan Kudarat, took place at 1 a.m., 6th Infantry Division Spokesman Capt. Jo-ann Petinglay said.

“Troops from the said detachments immediately returned fire to enemy positions. After an hour of firefight, enemy withdrew from the area,” she added.

Petinglay also said soldiers from the Katiku Detachment suffered one fatality and three wounded in the encounter.

The identities of the four were withheld, pending notifications of their next-of-kin.

She added that the casualties were immediately extricated by responding troops and brought to a nearby hospital for treatment.

“The incident manifested that the BIFF will continually be as potent spoiler of peace in Central Mindanao. The 6th Infantry Division, in coordination with the Philippine National Police [PNP] will continue to work proactively in order to preempt plans of the lawless group, which may cause disorder to the peaceful and developing communities of the region,” Petinglay pointed out.

She also said the 6th Infantry Division leadership is calling on the community to be vigilant and to help look in the whereabouts of the terror group in order to limit their movements and actions.

Restricted movement

Due to its security operations, the

Armed Forces of the Philippines (AFP) was able to restrict the movement and limit the capability of the BIFF and rogue Moro National Liberation Front Elements (RMEs) from creating havoc.

“The AFP has been successful in restricting the movements and limiting the violent activities of the BIFF and RMEs that seek to derail the implementation of the Bangsamoro Basic Law that will finally bring lasting peace and development in Mindanao,” AFP Public Affairs Office chief Lt. Col. Harold Cabunoc said.

He added that the AFP’s focused military operations against the BIFF and RMEs from first quarter to third quarter 2014 has caused a reduction in their manpower and armed capability.

A total of 84 BIFF members were neutralized, of which 81 were killed and three were apprehended/captured, with 19 firearms seized by government troops.

From the RMEs, four were apprehended/captured and six surrendered with government troops gaining six firearms.

From 2008 to 2013, a total of 42 provinces were declared peaceful and ready for further development.

The normalization of the security situation in the provinces was a result of the AFP’s active cooperation and coordination with law enforcement agencies particularly the PNP and continued engagements with local government units and other stakeholders.

In 2014 six provinces were added to the list namely, Pampanga, Catanduanes, Negros Oriental, Palawan, Misamis Oriental and Zamboanga Sibugay.

The AFP will continue both its focused military operations and bayanihan activities in cooperation with other government and law enforcement agencies and stakeholders, so that the 28 remaining provinces nationwide, which need urgent normalization will be declared peaceful and ready for further development before 2015 ends, Cabunoc said.

Palace vows to strengthen frontline agencies vs disasters

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alacañang said over the weekend that it will continue to invest in strengthening frontline agencies of the government to effectively respond to disasters and calamities.

Among the government’s major agencies dealing with disasters and forecasting are the National Disaster Risk Reduction and Management Council, the Philippine Atmospheric Geophysical and Astronomical Services Administration (Pagasa) and the Department of Science and Technology.

In a radio interview over dzRB Radyo Ng Bayan on Saturday, Deputy Presidential Spokesman Abigail Valte said that among the major thrusts of the government is increasing the yearly budget of these agencies.

In the case of Pagasa, the government has upgraded the agency’s equipment, according to Valte.

Pagasa, which had issues in the past, has received attention from the government. The DOST, Pagasa’s mother

agency, has tried to resolve issues on the allowances of its personnel with the help of the Department of Budget and Management.

“Sa mga naging solusyon natin dito pinapakita ang willingness sa part ng administrasyon na umupo at makipagusap sa ating mga kasamahan para makahanap ng magandang solusyon,” Valte said.

“We continue to invest in mechanisms that will help them make better tracks, or make better predictions.”

DOST’s Nationwide Operational Assessment of Hazards, or Project Noah, has been expanded, Valte said, adding that efforts to complete does hazard mapping will continue.

The government does not only focus on Pagasa, Valte said, adding that the administration is also improving the capability of responders and rescuers to effectively respond to disasters.

“We continue to invest in the capacity for them to be able to do more,” she said.

The government has also augmented

Pagasa’s budget, from P396.5 million in 2014 to P3.46 billion for 2015, an increase of 526.5 percent.

The large chunk of Pagasa’s 2015 allocation is intended for the purchase of state-of-the-art weather-monitoring equipment, Valte said.

The new budget will also go to personnel services of Pagasa. In 2014 Pagasa had an allocation of P352 million for personnel services, and, in 2015, Pagasa got P434.4 million for personnel services, or a 23.4percent increase.

The country’s weather bureau, as well as other government front line agencies, was once again in close scrutiny after several major typhoons hit the Philippines in 2014.

Among these weather disturbances were Typhoon Ruby that devastated Eastern Visayas, as well as the more recent Typhoon Seniang that brought massive f looding and landslides in Mindanao and the Visayas regions. PNA

Stray bullet incidents climb to 59

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S of 7 a.m. on Saturday, the Philippine National Police (PNP) announced that the number of stray bullets incidents during the New Year's Eve revelry has now climbed to 59.

This was disclosed by PNP Spokesman Chief Supt. Wilben Mayor in a message to the Philippine News Agency. These can be broken down into 17 for the National Capital Region;

three for Police Regional Office (PRO)-1; one for PRO-2; three for PRO-3; seven for PRO4A; one PRO-5; 13 for PRO-6; one for PRO71; four for PRO 8; one for PRO 9; one for PRO 12 and seven for PRO Cordillera.

This is higher than the 30 stray bullet incidents recorded during the 2013 New Year’s Eve revelry.

While the number persons wounded by

stray bullet has hit the 42 mark, with 14 for NCR; two for PRO-1; one for PRO-2; one PRO-3; seven for PRO-4A; one for PRO-5; six for PRO6; one for PRO-7; two for PRO8; one for PRO9; one for PRO-12; and five for PRO-Cordillera.

One person was also reported dead on account of a stray bullet and this was also reported from PRO-Cordillera. PNA

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DOT, DPWH launch convergence program

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AGUIO CITY—A convergence program between the Department of Tourism (DOT) and the Department of Public Works and Highways (DPWH) was forged, resulting in the implementation of road-infrastructure projects in the Cordillera region amounting to more than P1 billion.

The convergence program aims to boost the tourism industry in the region. In an interview on Saturday, DOT-Cordillera Director Purification Molintas highlighted the importance of the tourism road networks in the government’s goal to achieve 10 million foreign tourist arrivals by 2016 which is part of the Philippine Tourism Development Plan.

Among the projects to be funded from the convergence program are the P37.6-million road network leading to the Chico River White Water rafting take-off area, the Naneng Heritage Village and the rice terraces in Tabuk, Kalinga, and the P23.148-million road project aimed at drawing more tourists to theBani Hot Spring in the town of Boliney, Abra.

Other projects include the P200million road connecting Lusok Cave and Marag Valley, both in Luna, Apayao; the P78.8-million road projects in Binga Dam and the Mount Ugo (site of Philippine Skyrunning event) in Itogon; Am-am Observatory Rock, Burial Caves, Kada and Kenny Farms in Mankayan; Mount Pulag and other tourist attractions in the municipality of Buguias all in the province of Benguet.

The P279.1-million road network for the Ambuaya Lake, Yamashita Shrine and Kiangan settlement to Lagawe; Kinakin and Cambulo native villages and Banao rice terraces in Banaue; the barangays of Chaya and Nagchayan and Apfo’or in Mayoyao; and Pula village and rice terraces and the Dalican-Batad road also in Banaue Ifugao; and The P200 million for road infrastructure that will lead to the caves, burial caves, rice terraces and waterfalls in the municipalities of Bontoc and Sagada; and to Mogao Mountain and Gawaan Lake in Bauko and Tadian all in Mountain Province.

Molintas reminded local executives that project proposals for 2016 must have a project development plan endorsed by the Regional Development Council. The proposed projects should also have an existing road with Road Right of Way and located within 60 kilometers or less from a tourism gateway or tourism service center (such as Baguio City).

The project must also have at least a concept study and a record of consultation with at least one stakeholders group, Molintas said. PNA

Sinkholes appear in 2 Cebu towns after Seniang

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EBU CITY—Two sinkholes appeared in the towns of Badian and Alcantara in southern Cebu after Tropical Storm Seniang hit the area on Tuesday. Eddie Llamedo, Department of Environment and Natural Resources (DENR) Region 7 spokesman, said the sinkhole found in Barangay Manduyong, Badian, is 20 feet wide and 10 feet deep.

“Sinkholes may have opened up after Seniang struck Cebu. Sinkholes usually appear if there is ground shaking or earthquake and when the ground is oversaturated due to heavy rain,” Llamedo said.

The Mines and Geosciences Bureau in Central Visayas (MGB 7), he said, recommended that the local governments and the police cordon off and monitor the sinkholes.

Families living within a 20-meter radius of the sinkholes have also been advised to relocate to safer areas.

Llamedo said that a team of geologists will assess the sinkholes.

Residents in Barangay Cabadiangan, Alcantara, also reported a sinkhole. Dominico Caburnay, Alacantara’s planning and development coordinator, said the sinkhole is estimated to be 30 feet deep. PNA

Sunday, January 4, 2015

Decommissioning body to inventory MILF A weapons this month

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Government asked to spare fire victims from off-city relocation

By Jonathan L. Mayuga

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By Lilian C. Mellejor | Philippines News Agency

AVAO CITY—An independent decommissioning body led by the Turkish ambassador to the intergovernmental military alliance North Atlantic Treaty Organization (Nato) will convene this month to roll out the decommissioning of weapons of the Moro Islamic Liberation Front (MILF) combatants.

The independent body, which has a mix membership of foreign experts from Brunei Darussalam and Norway and four local experts, has already fine-tuned the process of a gradual phase manner of decommissioning. However, the process does not necessarily follow a certain framework of an international body on disarmament, demobilization and reintegration.

Lawyer Al Julkipli, a member of the government peace panel, said a symbolic turnover will happen any-

time to start the decommissioning process. He said the decommissioning process will apply to the peculiarities of the local situation.

Decommissioning of weapons of the MILF combatants is part of the normalization process to bring conflict-affected areas into a state of normalcy in terms of human security and economic stability, while the legislative mill for the approval of the Bangsamoro basic law continues. Julkipli said the first task of the independent body will be to

Bombing attempt in Lamitan foiled

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AMBOANGA CITY—Government authorities have foiled an attempt by lawless elements to bomb a passenger jeep in Lamitan City, Basilan province, on Friday. Senior Insp. Gean Gallardo, Lamitan City police chief, said this came after a homemade bomb was discovered shortly after noon on Friday aboard

a passenger jeep parked at the public market. Gallardo said the bomb was placed in a basket full of vegetables.

The bomb contained ammonium nitrate, wirings, concrete nails and a triggering device. Gallardo said homemade bomb was safely defused by the military’s explosive ordnance demolition team. PNA

Improved milling saves South Cotabato farmers ₧88 million

By Manuel T. Cayon

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AVAO CITY—The government-installed milling complex in South Cotabato has improved grains recovery, allowing farmers savings of as much as P88 million from what is usually thrown as wasted grain.

Estimates gathered by government agriculture technicians and farmers-cooperatives said that improved milling allowed farmers to recover at least 65 percent of the grains compared to so-called single-pass rice mills, that produce 58 percent, or slightly more than half a sack of milled grains for every sack of palay.

Technicians at the Rice Processing Center in Barangay Ambalgan, Santo Niño town, South Cotabato, said the higher recovery at its mill would instantly save the farmers around 2,500 metric tons of rice “that would have gone to waste.”

“This would translate to at least P88 million in savings,” the Department of Agriculture (DA) in the Soccsksargen Region said. The region is composed of South Cotabato, (North) Cotabato, Sultan Kudarat, Sarangani and General Santos City.

Jaime Junsay, chairman of Firmus Farm Services Cooperative (FFSC) said he was certain “that most of the farmers in their community had a better Christmas.”

“This is because the 12-monthold rice processing complex [RPC III] entrusted to their cooperative by the DA has brought more than good news but also higher milling recovery and better incomes for the farmers,” he added.

Since January last year, the processing center has milled 36,000

metric tons of palay from 5,000 farmers cultivating some 10,000 hectares of rice land in South Cotabato and neighboring provinces of Soccsksargen region, DA 12 Regional Director Amalia JayagDatukan said.

She said the government invested P32 million to put up the rice-processing center. Called RPC III, the complex houses two biomass-fed mechanical dryers capable of drying 600 sacks of palay in eight hours; a modern rice mill, and a storage facility.

“Wala pa pong isang taong operasyon ng RPC sa South Cotabato ay tubongtubo na ang investment ng pamahalaan pagdating sa pakinabang ng mga magsasaka. May P88 milyon agad ang value ng naisalba nating bigas na natapon lang sana,” Agriculture Secretary Proceso J. Alcala, said during his visit to the facility in November last year.

Alcala said the DA would put up similar centers in the other regions owing to the inspiration established by the South Cotabato processing center. Junsay said the better milling recovery led to better income and convenience for farmers.

He claimed there were instances that the recovery reached as high as 72 percent. Farmers groups said rice milled in the facility “commands a higher commercial price with clearer white, less spots and bigger head rice.”

Junsay’s group manages the facility with the National Food Authority and charges fees for the services offered at the RPC but said the charges were lower. The facility charges P67 per sack for milling services, and P33 per sack for drying. FFSC is a farmer-cooperative based in Koronadal City.

conduct an inventory and validation in order to determine the types and number of weapons of the MILF. He disclosed that the surrender of weapons would be “by phase and percentages.” The inventory will also start this month.

Meantime, Julkipli said other normalization process or other confidence-building measures are under way, such as the infusion of livelihood and turning the six previously identified MILF camps into productive civilian communities.

Julkipli disclosed that task forces have been formed toward this development with the Department of Agriculture conducting surveys for the livelihood and production programs and projects.

On the other hand, the legal process for the amnesty of MILF members and supporters is also rolling out. A group will be conducting a study toward this step. Julkipli said the Transitional Justice is also working on a development study.

Julkipli, likewise, disclosed that a study for the disbandment of armed groups and loose firearms.

“So all these activities will be rolled out as parallel efforts while the legislative process continues,” Julkipli said.

N urban-poor group on Saturday appealed to authorities to spare fire victims from off-city relocation as the government steps up its disaster-risk reduction and flood-control plan in Metro Manila.

The Kalipunan ng Damayang Mahihirap (Kadamay) issued the call on Saturday, appealing for some 1,500 families whose houses at Kaingin Bukid, West Riverside Street, in Barangay Apolonio Samson, Quezon City, were razed by fire on January 1.

Kadamay’s Gloria Arellano, the group received reports from the victims that the local government of Quezon City has started fencing what was left of the razed community, which sits along a tributary of the San Juan River, one of the eight major waterways on the priority list of the Aquino administration’s clearing operations.

Arellano said Kadamay received information that authorities are planning to relocate the fire victims to Pandi and Bocaue, Bulacan.

She said local authorities are persuading other squatters to relocate to the government relocation site in Bulacan as well, with the promise of being given P18,000 financial assistance.

“Forcibly relocating residents after a fire that razed their community and preventing them to rebuild their homes is a very opportunistic act. Sadly, this has been a practice

of many local governments in recent year,” Arellano said. Kadamay noted other similar fire incidents in squatter colonies along waterways since the Aquino administration announced in 2011 its plan to clear eight major waterways in Metro Manila of squattercolonies.

Big fires have razed homes in urban-poor communities along the Manggahan Floodway in Rosario, Pasig City, in Febuary 2012; in three barangays along Estero Tripa de Gallina in Pasay City in July 2013, along a triburary of the Pasig River in Barangay Guadalupe Nuevo (Macda), Makati City, in October 2013 and along a creek on 3rd Avenue, Barangay 120, Caloocan City, in April 2014.

“Thousands of residents along waterways in Metro Manila have been forcibly relocated by the government after fires that razed their communities, for authorities have failed to convince residents to voluntarily accept the off-city relocation offer year after year,” Arellano said.

Many residents refuse to leave their communities as employment and livelihood opportunities and other basic services are highly inaccessible in government relocation sites outside Metro Manila, she said. “The mandatory relocation of urban poor settlers to off-city relocation sites should be stopped immediately, as well as the demolition of homes of the urban poor through fire and other violent means,” she added.

Lawmaker pushes House probe into 15% Nlex toll-hike petition

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CONGR ESSM A N f rom Central Luzon is seeking an inquiry, in aid of legislation, into the petition of the Manila North Tollways Corp. (MNTC) for a 15-percent average increase in toll at the North Luzon Expressway (Nlex).

In House Resolution 1653, National Unity Party Rep. Gavino C. Pancho of Bulacan warned that the increase will negatively afffect the cost of produce transported through the tollway such as rice, meat and other commodities.

The resolution added that the State through the Toll Regulatory Board (TRB) supports the policy that any toll increase to be imposed must be just and reasonable, and should follow the procedures set by law, such as the conduct of public hearings and consultations, before being implemented.

“The MNTC has not yet complied fully with such requirements and similarly presents no justifiable basis at this time to seek an increase in toll rates at the Nlex,

thereby rendering such request as inimical to the interest of the riding public and the business community who use the Nlex for their livelihood,” Pancho’s resolution added.

He also called on the MNTC to submit to the House of Representatives and to his office any study that the company has done as basis for applying for a 15-percent average toll-rate increase.

Pancho, a vice chairman of the House Committee on Cooperatives Development, said the ongoing industrialization and improving economy of Bulacan and other provinces at the country’s northern corridor have resulted in greater migration, a rise in the number of factories and other business establishments.

The developments also resulted in a growing local population along said areas and an increased production, flow and transportation of goods on the Nlex the resolution said. Pancho said the MNTC, which manages the Nlex, reported posting a P1.82 billion,

or 6-percent increase in its net profit, in the first nine months of 2014 owing to the significant rise in the traffic of vehicles passing through the tollway.

The MNTC has filed a formal request with the TRB for a 15-percent average increase in toll at the Nlex, that it seeks to implement this month.

Earlier, MNTC President Rodrigo Franco justified the tollincrease petition, saying that it was “long overdue as the fees being charged today are lower than when the MNTC began operating the Nlex in 2005.”

He cited that the MNTC originally charged P42 ($0.93) per entry for the open system and P2.48 ($0.055) per kilometer for the closed system.

The MNTC is now charging motorists P45 ($1) per entry.

Minus the value-added tax, the toll is only P41 ($0.91) per entry for the open system and P2.38 ($0.053) per km for the closed system.

Jovee Marie N. dela Cruz

House action vs Cebu Pacific sought

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OLLOWING the airline’s a l leged mismanagement a nd m isha nd l ing of its scheduled trips during the Christmas holidays, a resolution urging the House of Representatives to impose legislative action such as revocation of franchise against Cebu Pacific, is set to be filed on Monday. Liberal Party Rep. Ben Evardone of Samar said that Cebu Pacific mismanagement on December 24, 25 and 26, last year, which led to long queues, flight delays and cancellations should be investigated.

Evardone’s resolution will direct the House Committee on Transportation and Committee on Legislative Franchise to conduct investigation into the possible violations of Republic Act (RA) 7151 and related law by Cebu Air Inc. “Congress has, in Republic Act 7151, granted Cebu Air Inc., its successors or assigns, a franchise

to establish, operate and maintain transport services for the carriage of passengers, mail, goods and property by air, both domestic and international,” the draft resolution said.

The resolution said that under the same law, the franchise granted to Cebu Air Inc., is subject to the provisions of the Constitution, applicable laws and regulations.

“Congress may amend or repeal the franchise granted to Cebu Air, Inc., when the common good so requires [under RA 7151],” he said.

Cebu Air Inc., a subsidiary of JG Summit Holdings, currently operates under the name Cebu Pacific Air (or commonly Cebu Pacific).

Evardone said there have been complaints by paying passengers on Cebu Pacific’s poor services, resulting in long queues, flight delays and cancellations without due notice, overbooking, among others, even on Christmas holidays, on December 24,

25 and 26, 2014. “No weather disturbance in Metro Manila was reported on December 24, 25 and 26, 2014, that would excuse Cebu Pacific from its mandate to transport goods and passengers,” he said.

The lawmaker, citing news report, said that Cebu Pacific’s alleged operational mishandling or mismanagement on abovementioned dates due to apparent lack of contingency plan to address the deluge of passengers, especially at the Ninoy Aquino International airport Terminal 3, on these Christmas days, resulting in some passengers not able to fly out and spend the holidays with their families and friends.

“As grantors of the franchise, it is incumbent upon this august body to check on the conduct of Cebu Air, Inc., as grantee and terminate the franchise for the common good,” he said. Jovee Marie N. dela Cruz

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Sunday, January 4, 2015

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Opposition to MRT, LRT fare hike mounts

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By Lorenz S. Marasigan

SIDE from passing on the brunt to commuters, nongovernmental organizations said the fare increase at the three overhead railway systems in Metro Manila would benefit no one but private companies that either own or operate the lines.

Elvira Medina, National Center for Commuter Safety and Protection president, said the increase in ticket prices “would mean nothing but a bag of empty promises and baseless claims to improvement.”

“It’s unfair,” she said in a telephone interview.

The fare increase at the Metro Rail Transit (MRT) and Light Rail Transit (LRT) systems started to be implemented on Sunday.

The fare increase earned the ire of Train Riders Network Spokesman James Relativo, who expressed his group’s dismay on the government’s decision.

“We are outraged with the fare hike. We are outraged that the money from the increase will, likewise, not go to the improvements of the rail, but to private compa-

nies,” he said in an interview with the BusinessMirror on Saturday.

Despite repeated calls and pleas, transportation officials said the government is not bent on canceling the increase, Relativo said.

“Only a temporary restraining order can stop us from implementing the fare hike,” Transportation Secretary Joseph Emilio A. Abaya said in a text message.

Transportation Undersecretary Jose Perpetuo M. Lotilla and Department of Transportation and Communications (DOTC) Spokesman Michael Arthur C. Sagcal separately confirmed that, so far, no stay order has been issued against the fare increase.

“The decision will only be revoked if there is a change in policy or if a temporary restraining order has

been issued,” said Lotilla, who heads the agency’s legal department.

But on Monday the department will have to face the bitter reality that it will have to resolve a bigger problem.

On Monday Relativo and Medina’s groups are set to file before the Supreme Court a petition for certiorari, invoking the constitutional provisions governing public utilities.

“We will submit it on Monday.

It’s unfair. Everything that surrounds it. Implementing the fare hike without improvements, claiming that these will be executed after the increase, is nothing but unfair,” Medina said.

For one, she said, the facilities of the MRT and LRT lines are below international standards. Commuters at the LRT, for example, are greeted by faulty elevators and escalators and malfunctioning turnstiles.

“The facilities are really bad,” she said. “We will not pay for a bag of air. We are not going to pay for empty promises.”

Relativo’s group, meanwhile, will also question the authority of the DOTC in implementing the fare increase.

“We were not heard. The government implemented the fare increase without proper public consultation,” he said.

He added that the government is to be blamed for the higher fares at the overhead train systems, as

it moves to privatize transport infrastructures under the guise of public-private partnerships.

“Not to mention flawed concession agreements that only consider the revenues of the private company and not the interest of the public,” Relativo said.

Abaya earlier said the fare increase at the overhead train systems is justifiable, as there is a

pressing need for more revenues to improve the lines.

He said there exists a “crippled ability to invest in large-scale improvements for their facilities, since revenues have only been enough for day-to-day operational requirements.”

Abaya added that the culprit for the worsening state of the train facilities is the failure to match

fare adjustments with increasing operating costs.

The government subsidizes around 60 percent of the cost for each LRT passenger, while it shoulders 75 percent for each MRT commuter. Increasing the fares to almost double would generate P2 billion in savings from subsidy, which could be used for See “Fare hike,” A2

Strong U.S. dollar seen to have varied effects on Asia-Pacific economies

By Bianca Cuaresma

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HE exchange-rate swings anticipated during this year because of the forecast strength of the US dollar will have varied effects on AsiaPacific economies, an international credit watcher said.

In a recent research note, Fitch Ratings said exchangerate swings can amplify shocks for some countries, while they can ramp up the gross domestic product (GDP) of other countries in the region.

“Fitch Ratings’s simulations for nine larger Asia-Pacific economies show that the exchange rate’s effectiveness as a buffer against external shocks varies across countries,” the ratings agency said.

Taiwan and South Korea are seen to benefit largely

from the higher dollar this year at around 1 percentage point higher than the baseline after two years in both countries.

“This is unsurprising, given these economies’ open and tradedriven natures,” Fitch said.

In contrast, however, Indonesia and India were modeled to have lower GDP after the shock. India is seen to be affected by 0.4 percentage points, while Indonesia is seen to be downsized by 0.6 percentage points below baseline forecast.

“This mirrors these economies’ experience in 2013, when pressure on their exchange rates contributed to monetarypolicy tightening that squeezed growth. Both India and Indonesia are relatively closed economies, and so they receive

limited support from stronger export competitiveness.

Moreover, both have large oil-import bills, and face a drag on real incomes from higher domestic fuel costs in the event of a currency depreciation,” Fitch Ratings said.

Similarly, Thailand is seen to get a drag from the exchangerate swings in the coming year owing to its large fuel bill.

While the ratings agency did not cite specific details as to the effect of the exchange-rate swings on the Philippines— which means that there is no predicted major impact on the economy—the international ratings agency maintained that the country is “strong” in both its macroeconomics and external finances, with both a stable trend going forward in the next 12 to 18 months.

TURNING A NEW PAGE Jun Yumul puts the finishing touches on Pope Francis’s sculpture, titled New Page, New Life, at his shop in Balara, Quezon

City, in preparation for the pope’s visit in Manila this month. The artwork includes a hand, which is painted with multinational flags, turning a page depicting a village devastated by Supertyphoon Yolanda (international code name Haiyan). NONOY LACZA

Manufacturing output cooled a bit in November

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HE country’s manufacturing output—one of the closely watched sectors in the Philippine economy—likely slowed down slightly last November but maintained its above 7-percent pace during the month, the research arm of an investment bank said.

In its Weekly Data Economic Preview, Moody’s Analytics said that the country’s manufacturing output likely expanded at 7.2 percent last November.

Moody’s Analytics’ forecast is slightly lower than the 7.5-percent expansion of the volume of industrial production in the country last October, as reported by the Philippine Statistics Authority (PSA).

“Industrial production likely cooled a little in November from October’s 7.5-percent year-on-year expansion. Consumer demand has cooled in the second half of the year [2014], dampening food manufacturing,” Moody’s Analytics said.

The slight dampening of industrial production in the country was seen to continue last December, as bad weather conditions hamper manufacturing in the tail end of 2014.

“Bad weather, associated with the typhoon season, affected food supplies and production through December,” Moody’s Analytics said.

Despite the dismal outlook, Moody’s Analytics still believe that the country’s manufacturing sec-

tor will rebound in 2015, and will continue to contribute largely to the local economy this year.

“Improved global tech demand will lift electronics production in 2015,” Moody’s Analytics said.

Earlier, the PSA reported that the main sources of the manufacturing sector during the period were printing, which grew by 266.8 percent; fabricated metal products at 51.3 percent; beverages at 24.2 percent; paper and paper products at 20.4 percent; and nonmetallic mineral products at 10.7 percent.

The PSA will report on the country’s value and volume of manufacturing data as of November 2014 on Friday. Bianca Cuaresma