BusinessMirror January 26, 2015

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The difference Online RetaileRs betweenWhy change & aRe staRting tO CaRe abOut yOuR Feelings transformation MondayMorning» W

BusinessMirror

www.businessmirror.com.ph

By Robyn Bolton

t’s been almost 10 years since Harvard Business Review published John Kotter’s classic article, “Why transformation efforts Monday, fail.” Although his suggestions for improving the odds have been widely accepted, the success rate of major corporate change programs remains essentially the same—at 30 percent.

e all know that shopping E1 is not just about buying stuff, and that there are emotional and social reasons that drive us to choose certain shopping experiences over others. In the rush to get online, retailers focused on building lower-cost digital equivalents of their stores that left behind many of those human connections.

But in the latest wave of digital three-time business models, e-tailers are seeking rotary club to satisfy not just functional needs, of manila journalism but also those complex emotional and awardee social “ jobs to be done.”

2006, 2010, 2012 This approach is typified by San U.N. Media Award 2008 Francisco-based Weddington Way, a startup that aims to keep the experiof shopping for bridesmaid dresswww.businessmirror.com.phence

nn Vol.

P25.00 nationwide | 7 sections 36 pages | 7 days a week Vol.1010No. No.40109 es social—even when members of the wedding party live in different cities.

By creating their own private virtual showrooms, brides and bridesmaids can discover, recommend and vote on dresses in a collaborative online space staffed by personal stylists available by chat session. With 25,000 dresses sold in just the first half of 2014, the company is approaching the $10-million revenue mark. Other e-tailers are focusing on building experiences that eliminate the emotional angst and unBy Genivi Factao certainty of online purchases. Bonobos. com, the men’s clothing site, started online in 2007 but took off more recently when it began adding physical locations.

The New York-based company opened “Guideshops” in 10 cities that help alleviate the worry men have when buying clothing online. Customers can make an appointment to visit the showroom, which has samples of goods but doesn’t stock everything in every size.

A personal shopper helps men select, try on and order clothes to be delivered to their homes. This model lets the retailer combine the advantages of large online selection with in-person service.

Bonobos is reportedly approaching $100 million in annual revenues and is partnering with Nordstrom to sell its custom clothing line in 200-plus stores.

Continued on A2 Other retail startups are developing

By Ron Ashkenas Based on consulting experience I recently met with the senior set of tra business models that monetize social with dozens of companies over leadership team of a large technolcapabiliti connections in new ways. Luvocracy, for ogy company that had been sucdynamic many years, I believe there is still instance, encourages shoppers to recomcessful because one unique product stronger c confusion over what constitutes mend clothing and fashion items from aries and “change” versus “transformation.” constituted 90 percent of its sales. anywhere on the web. Friends can add Many managers don’t realize that When competitors started developmidst of “luvs” to products, which increases the ing a less expensive version of the Nobod the two are not the same. “trust” rating of the recommender. When final out Change management means product, it became clear that the someone buys a product that you’ve recimplementing finite initiatives, company could not survive as a onewords, th ommended, you earn a 2-percent reward. product firm. So the CeO launched much a which may or may not cut across If you attract enough followers who experime the organization. The focus is on a transformation strategy with the buy those products, you can become a executing a well-defined shift in goal of figuring a more sustainable tion. Succ “tastemaker” and earn 10-percent commatter h the way things work. Transformabusiness model. missions. This model of turning online tion doesn’t focus on a few discrete, It included a number of major managem shoppers into salespeople was so attracwell-defined shifts, but rather on “must-do” initiatives, including We kn tive that Walmart Labs snapped up the Angels walk More than 12,000 people with autism and their families join Angels Walk for Autism, their yearlyof get-together thatthat aims to raise awareness on autism and advocatefocused disability to inclusion changes. shifting from internally a portfolio initiatives are company in an acquisition this summer. in society. Participants don wings as they march around the SM Mall of Asia complex in Pasay City. SM Prime Holdings Inc.orPresident Hans T. Sy (second externally from left) andpartnered officials of SM Care Foundation interdependent intersecting. product devel- lead about is With carefully designed experiences ROY DOMINGO the commemoration of the 19th National Autism Consciousness Week.

The goal of transformation is to opment and ramping up the search formatio that address emotional and social needs, reinvent the organization and disfor acquisitions and adjacencies. let’s at lea newer entrants are setting a higher bar cover a new or revised business model The transformation also called for about wh for the more-established retail brands Given the amount of research the subject and companies’ investbased on a vision for the future. It’s a new set of cultural principles and and business models.

BusinessMirror A broader look at today’s business

TfridayNovember Monday, January18, 26,2014 2015

BPI C.E.O. SAYS ECONOMY TO BENEFIT FROM GOOD MIX OF GOV’T SPENDING, LOW INFLATION, LOW FUEL PRICE

‘2015 growth goal easier to achieve’

T

he Bank of the Philippine Islands (BPI) is convinced that the government can achieve this year’s target 7-percent to 8-percent local output growth, measured as the gross domestic product (GDP), on the basis of accelerated and higher government spending, low-inflation environment and cheaper oil.

We still don’t know the differenc between change and transforma

I

DONATED POPEMOBILE from gencars HEADS TO VATICAN

t’s been almost 10 years since Harvard Business Review published John Kotter’s classic article, “Why transformation Efforts Fail.” Although his suggestions for improving the odds have been widely accepted, the success rate of major corporate change programs remains essentially the same—at 30 percent.

Cheaper oil, ECB stimulus lift global growth outlook

By Lorenz S. Marasigan

I

TALIANS are known to be among the world’s leading manufacturers of top-of-the-line vehicles; yet, they liked the popemobile that was customized by Filipino car dealer Gencars Inc. The popemobile, a customized Isuzu D-Max donated by Gencars Chairman Antonio L. Cabangon Chua, was so loved by the Roman

PESO exchange rates

much more unpredictable, iterative a revised performance management ment in consultants and training, Ron As of Schaffer approach aligned with these initiaone would think that we would be and experimental. It entails much “Lower oilnow. prices and the big de- higher therisk.

19-country euro zone. measures.

“In the case of Eu- Simply eff doing better by tives.those Leaders had to learn a broader cision by the ECB could further im However, Benoit Coeure, an exrope, being patient is just a risk that prove world economic outlook,” said ecutive board member at the ECB, we don’t want to take,” he said.

Haruhiko Kuroda, governor of the insisted that, on its own, it won’t be Some in Europe, particularly in Bank of Japan. enough. He said governments across Germany, are worried that the ECB’s

By Jeanne The ECB’s planned €1.1-trillion the region ahave to enact raft of the inventory bond-buying program may ease the This is W. Ross, Cynthia M. value”—rather, strategic focusathat management system, ($1.2-trillion) structural reforms spending. to their econo- customers pressure governments do more apps, ana Beath & Ina stimulus Sebastian has been directs their technology canonfind what they to want Take largeas retailer Nordstrom. one of the main talking points mies,thesuch making their labor in one toplace. reform their economies.

Instea a recentand MIThas Center for Inforlate 1990s, began Items onthere’s Pinterest atN Davos, helped counter In the markets more Nordstrom flexible and encour Inpopular Germany also are concern to the de mation Researchthat poll,has investing in Nordstrom.com giventhat a red bearingisthe Pinterest some of Systems the pessimism aging businesses to invest.and a thetag stimulus debasing the euro digital ca 42percent ofthe ourglobal respondents said in perpetual system that alprominentlyprospect displayedof inmore the eu- making t enveloped economy “Weinventory have done our part, others logo and currency—the they gain Stock competitive thetocompany offerhe a consisstore,ros linking their online and offline theexpected past fewto weeks. markets lowed have do theirtopart,” said. in circulation can weigh on the simplifyi advantage fromworld social, mobile, anaexperience by 2002. employees are has nowfallen armed Witho around the have surged amid tent multichannel Coeure hoped that the stimulus worlds. currency.

The euro sharply lytics, cloud andthe Internet Things between 2004 and 2014, information not only about what and integratio hopes that ECB of move could Then, will give governments the Nordspace and withsince Thursday’s announcement, (SMACIT) technologies. that’s of strom invested in a newtopoint-of-sale has boughtoutlook,” and liked A2 in ties is vir help boost the ailingBut economy encouragement proceed with a customerSee “Growth and hone their skills in the actual contexts they’ll not going to happen. Because these system that included personal book the past, but even what they shopped to get se ultimately need to use them. Thus, the skills have a technologies are so accessible—to software, so that salespeople could for but could not find. Mobile checkstrategy f much better n chance employees, partners and track35.9868 individual customer out makes11.8094 it easy Source: for any economy— 66.5238 HKof sticking.

5.7234 n CHINA 7.1441customers, n singapore 33.1052 n australia n EU 50.2965requests n SAUDI arabia BSPemployee (23 January to 2015) Teaching people to adapt behavior across competitors—it is very difficult to and needs online. see a customer through the payment your uniq cultures isn’t a “quick hit” you can achieve in a twogenerate competitive advantage from Other initiatives that were impleprocess, rather than sending them to to marke hour session, or by handing someone a manual any of them. mented included the launch of an innoa cash register. every tech or Web site. It’s a real skill that requires patience, The small percentage of companies vation lab, the creation of Nordstrom The persistent digitization of Nordpractice and perseverance. Smart companies are Jeanne that will gain competitive advantage apps and popular social apps, like strom’s business has allowed the comstarting to realize this and adapt accordingly.

Center for I from SMACIT technologies focus more Pinterest, as well as the acquisition pany to grow revenues by more than MIT Sloan on how they rally all those technologies of a cloud-based men’s personalized 50percent in the last five years. The Andy Molinsky is an associate professor of orM. Beath is in unison to fulfill a distinct purpose. clothing service. company is growing sales in both fullganizationalbehaviorattheBrandeisInternational versity of T We don’t mean a generic, high-concept Because Nordstrom.com and the price and off-price businesses through Business School, and author of Global Dexterity. a research a purpose like “generating shareholder Nordstrom app are integrated with both online and traditional channels. that business schools have dedicated to understanding change manageheamount global economic outlook ment, the of literature on just got brighter after this week’s big stimulus from the European Central Bank (ECB), leading policy-makers from around the world said.

In a panel at the World Economic Davos,inauthentic SwitzerPeople canForum feel anxious,inembarrassed, they perkier Europe, andland, frustrated.

As asaid result, amany individuals either avoid cross-cultural situations altogether or perform coupled with a prolonged period them Develop training thathelp is integrated ofineffectively. low oil prices, could shore with actual work people do. Athletesfollowing do drills, but a upthethe global economy then practice in and games. period ofscrimmages underperformance that In the same way, develop training that ensures to has prompted many forecasters your employees have ample opportunity to practice reduce their growth forecasts.

T the mistake mOst manageRs make

Why Nordstrom’s digital strategy works (and yours proba

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I

Robyn Bolton is a partner at the innovation strategy consulting firm Innosight.

pontiff that he sought for it to be delivered to the Vatican.

“Vatican sent me a letter asking for the popemobile. We are just waiting for the paperworks,” Cabangon former envoy to ByChua, AndyaMolinsky Lao People’s Democratic Republic, f you’ve receivedinterview. any cross-cultural training— said in aever phone evenrevealed read a bookthat on thehis subject—chances orHe compait focused on differences: differences ny,aretogether with Almazora Mo- in communication or etiquette. tors Corp., styles, will values donate a totalKnowing of about differences can give you a sense See “Popemobile,” A2of how you’re supposed to act in a foreign setting.

It can also help you understand why others from a different culture behave as they do. But, in my many companies mistakenly think that nexperience, US 44.3610 n japan 0.3741 n knowing cultural differences is all you need to be effective across cultures.

In most instances, the real problem is that your employees can’t adapt and adjust their behavior in different cultural settings. So what can companies and managers do to help their employees take the next step in their cross-cultural training? first, match your solution to the actual challenges your employees face.

Research indicates that acting against your natural style can feel extremely uncomfortable.

With CROss-CultuRal tRaining

UK

© 2013 Harvard Business School Publishing Corp. (Distributed by The New York Times Syndicate)

News BusinessMirror

Monday, January 26, 2015

A2

news@businessmirror.com.ph

‘2015 growth goal easier to achieve’

BPI President and CEO Cezar Consing said coming from a low base, what some economists call an ambitious 7-percent to 8-percent GDP forecast is feasible. “In many ways, it’s easier for us to achieve the 7-percent growth than other countries with much larger bases,” he told the BusinessMirror.

“If the government begins to spend again…with oil prices coming down, bringing inflation down, all of a sudden, the Bangko Sentral [ng Pilipinas] has much more flexibility as to when they want to do anything.

That’s a good mix for growth,” he said.

Consing believes that with or without the election next year, the country can achieve faster growth this year.

“Whether it’s [2015] preelection year, even if Continued from A1

they say there is no election next year, the combination of low oil prices, low inflation and an increase in government spending will produce good growth even absent the election next year,” he said.

Economists and various analysts have since found that, while the election process triggers a spending spree by many of those seeking elective positions, the liquidity that is added amounts to a mere fraction required for a more meaningful economic impact. “Even if there’s no election, the mix is good,” he reiterated.

According to Consing, ultimately, the banking business will benefit from this growth. “In the short term, the very low interest rates and the very flat yield curve can be a challenge for banks. In the short term it can be challenging, but in the long term growth

will help banks,” he said.

Some of the analysts see that interest rates will gradually increase by the second half of the year, taking its cue from the US interest-rate hikes. Consing said, “I think the central bank has more flexibility now to delay [rate hikes] if they wanted to.”

Growth targeted to range from 6.5 percent up to 7.5 percent in 2014 has proven illusive during the year, as actual expansion in the first nine months averaged only 5.8 percent or way below the anticipated path and blamed on lackluster government spending, particularly on infrastructure.

But Budget Secretary Florencio B. Abad remained optimistic growth as high as 7 percent in 2014 is still possible based on unconfirmed publicsector disbursement in the final three months of last year.

Peza expects growth in fresh approvals to drop below 10%

Peza set an investments-export revenue-employment growth target of 10-8-8 for 2014. The investment-promotion agency expressed optimism in surpassing the 8-percent growth in employment, but conceded the investment and export goals will be difficult to acheive, mainly because of the bottleneck in Manila’s ports.

Investment approvals in 2014 amounted to $279.477 billion, reflecting a marginal 1.21-percent growth. Given 2013’s actual haul of P276.126 billion, a 10-percent growth could have translated to investments of P303 billion last year.

Exports during the first 11 months of the year reached $40.518 billion, only reflecting a growth of 3.11 percent from the comparable period in 2013. Despite a lower investment Continued from A12

target this year, outlook for 2015 is positive as traditional investment areas such as electronics are expected to be buttressed by aerospace and shipbuilding, interest for which has been growing among foreign investors.

On the other hand, the Board of Investments (BOI), the country’s other major investmentpromotion agency, is placing its bet on manufacturing to lead the way in attracting investments.

“We shifted our focus on getting quality jobs. We want to continue that with the manufacturing resurgence,” said Trade Undersecretary Adrian S. Cristobal Jr. in a separate interview.

Cristobal said the agency will now focus on getting investments that generate quality jobs, regardless of the amount as part of its “target-focused” investment-promotion strategy this year.

The boost in investments that the BOI gar-

nered in 2013 was due to big-ticket power projects, Cristobal said, the absence of which led to a decline in 2014.

However, the undersecretary noted that power projects are not especially job-intensive ventures, unlike manufacturing.

In 2014 new projects approved by the BOI went down by 24 percent to P354.5 billion, from P466.03 billion posted a year ago.

The decline was mainly due to the 47-percent cut in the BOI’s investment approvals in the electricity, gas, steam and air-conditioning supply sector. In 2014 investments in the sector fell to P174.7 billion, from P331.1 billion posted in 2013.

Manufacturing,however, attracted P24.5 billion worth of investments in 2014, a 77.5-percent jump from the same sector’s haul of P 13.8 billion in 2013.

3-DAY EXTENDED FORECAST JANUARY 26, 2015 | MONDAY

TODAY’S WEATHER

Growth outlook. . .Continued from A1

is trading at 11-year lows around the $1.12 mark.

That’s potentially good news for euro-zone exporters as it makes their wares cheaper in international markets. A lower euro can also boost inflation as imports get pricier. The primary motivation behind the stimulus is to get inflation in the euro zone back toward the target of just below 2 percent. Currently prices are falling modestly.

Coeure insisted the lower euro wasn’t a primary motivation of the ECB, stressing that the ECB doesn’t have an exchange-rate target. The euro’s fall, he said, “was part of the channel” by which the stimulus works but “not the main consideration.”

Popemobile. . . Continued from A1

three popemobiles to the Catholic Church. “We will donate a total of three popemobiles, as sought by the archdiocese of Manila. We will give another one identical to the white popemobile, which will be sent to the Vatican together with a black version that would trail behind the white one. The original popemobile used here will be sent to the Papal Nunciature,” Cabangon Chua said.

His encounter with Pope Francis was a humbling experience, the 80-year-old businessman recalled.

“It’s a privilege to serve, to donate something for the Church, for

JAN 27 JAN 28 JAN 29 TUESDAY WEDNESDAY THURSDAY

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the Holy Father,” Cabangon Chua, who also sits as the founder of the BusinessMirror, said.

The Roman pontiff went to the Philippines last week, officiating Masses and meeting with Filipino families that were devastated by Supertyphoon Yolanda (international code name Haiyan) in 2013.

Aside from the popemobile from Gencars, the Roman pontiff also used two other vehicles to ferry him around Tacloban and Manila. “This is a testament that Filipinos have something to be proud of: top-of-the-line vehicle makers liking a Filipino-customized popemobile,” Cabangon Chua said.

NORTHEAST MONSOON AFFECTING LUZON. TAIL-END OF A COLD FRONT AFFECTING EASTERN VISAYAS. (AS OF JANUARY 25, 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 rain showers.

PUERTO PRINCESA CITY 24 – 31°C

Mark Carney, governor of the Bank of England, also welcomed the ECB’s stimulus and said low oil prices may prevail for longer than many people think. “That creates an opportunity that is considerable and possibly undervalued for the global economy,” he said.

Carney did issue one note of caution, warning that the current low interest rates around the world and the stimulus programs in Europe and Japan could prompt “excessive risk-taking.”

However, he said a better international supervisory framework means the world economy is more able to deal with that than it was before the global financial crisis in 2008. AP

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The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Monday, January 26, 2015 A3

Palace wants full DSWD report on beggars’ ‘outing’

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By Butch Fernandez

ALACAÑANG said it is making sure that the Department of SocialWelfareandDevelopment (DSWD) will submit to Congress a full report and accounting of public funds to end all speculations on how millions of taxpayers’ money were spent in the DSWD’s “outing” for street kids and poor folk hauled to the posh Chateau Royale Resort in Batangas province during the papal visit.

overhead

Umbrellas are aloft along 9th Street in Santo Niño Parañaque City to highlight the celebration of the Feast of the Child Jesus, one of the different festivities in the Philippines, a predominantly Catholic country. Nonie Reyes

“That is already being done in accordance with law, policies and procedures,” Communications

Secretary Herminio B. Coloma Jr. said, referring to the reported P4million- plus cost the DSWD said it

spent for six days during the Vatican head’s official visit.

The amount was reportedly used from Januar y 14 to 19, when some 490 street kids, vagrants and homeless families were rounded up by the DSWD purportedly for “evaluation” as potential beneficiaries of the government’s poverty-alleviation scheme under its so-called Mo d i f ie d Cond it ion a l C a sh Transfer (MCCT) Program.

Concerned members of Congress earlier sought an inquiry, as well as a full audit, of MCCT, in the wake of reports that the Chateau Royale Resort outing was actually intended to “hide” poor folk prowling city streets for the duration of Pope Francis’s visit last week.

Palace officials said the government is ready to cooperate and present details of the DSWD disbursements, when its officials

appear at the upcoming House inquiry.

The government is always open in providing the information requested, Coloma said in Filipino.

We are always open to cooperation, because that’s what exists between the Executive and other branches of the government, Coloma added.

Asked if the Palace had ordered the DSWD to submit a full accounting to clarify how public funds were spent for its purported indigent orientation program during their Chateau Royale outing, Palace Spokesman Edwin Lacierda assured that Social Welfare Secretary Corazon Soliman can sufficiently explain it to the lawmakers.

Soliman has mentioned she is willing to explain it to lawmakers and explain in full the MCCT, which includes the outing, Lacierda said.

Pope dines on ‘dinuguan’ with ‘puto’ No SC ruling yet if Erap

By Recto Mercene

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URING his almost 15-hour trip back to Rome from Manila aboard Philippine Airlines (PAL) A340 “Shepherd One,” Pope Francis dined on bistek Tagalog for his main course and dinuguan with puto for snack.

The pontiff touched the rice cake in the semidarkened cabin, which he had apparently mistaken for a scoop of ice cream, and politely asked the stewardess, “Why is it not cold?”

And then in retrospect, he declared: “Rice?”

This tidbit of information was shared with the BusinessMirror by Capt. Manuel L. Tamayo, flight commander and vice president for operations.

Maria Criselda Rayos, who was in charge of catering, said there were four main courses offered to the pope: Angus rib-eye steak-Filipino (bistek), grilled prawns with crab-fat sauce, Chilean sea bass with fresh mango and chili sauce, and manok sa tanglad (chicken in lemongrass).

“The pope chose the bistek out of the four main courses because he was curious of our Filipino way of cooking steak,” Rayos said partly in Filipino.

This vignettes of the pope’s trip was revealed on Thursday to the media during a news conference at PAL’s head office.

Cabin attendant Maria Janet Perez said the pope likes to know what we eat in the country.

“He likes also dinuguan and arroz caldo and the puto. He was actually amused when after mistaking it for ice cream, he asked, ‘rice?’”

“It didn’t look like rice to him, although he ate everything,” said Perez, who hails from Bulacan and with a 31-year experience in PAL. She said that as soon as the “seat belt-on” sign was off, she went out of the cabin to see how the most important passenger aboard was doing.

“I thought he was sleeping, then I realized he was praying. Then I knew that we were safe.”

Tamayo said Francis occupied two seats in first class, A and B. Nearby are two aides, who are not priests, he said, but who screen all the food and beverages that the pope consumes.

“You have to ask them, ‘Can I serve this,’ and if they give their nod of approval, then the pope proceeds to eat or drink.”

Tamayo is a veteran pilot, who has 14,000 flying hours under his belt, earning his wings from the Air Force Flying School in Lipa, Batangas.

He used to be a flying instructor in Lipa, Batangas. Besides piloting trainer planes, he said he had probably flown all types of the Philippine Air Force helicopters.

In 1988 Tamayo joined PAL, went to become a B747 captain and then, the pontiff’s flight commander.

“I can’t say this is the most exciting,” he said when asked if he was excited of having the saintly passenger onboard.

“This is the highlight of my career!” said Tamayo, who was also given the task of choosing who among the many PAL pilots should accompany him to Rome.

He said he was involved in the preparation for the pope’s arrival three months ago, coordinating closely with the National Organizing Committee.

There are three considerations, he said: “Character, experience and Catholic.”

“When we say character, it means personality.

You need somebody who can keep things quiet, because there are a lot of things here being discussed that will affect the security of the pope.”

“So every time I chair the meeting as head for PAL group for air transportation, the first thing I did was to announce: ‘Who is not involved here?’

Those who raised their hands are automatically showed the door.

“We have to make sure only those invited were present.”

Tamayo said the 254-seater plane had only 77 paying passengers aboard, which was not enough to answer for the flight cost.

“That’s no secret. The plane has a capacity of 254 passengers. PAL had to pay for the slack.”

Shepherd One’s total passengers include 30 from Vatican, 77 from the media, PAL President and COO Jaime Bautista, the five pilots and 11 cabin crew.

The Holy Father seen carrying his own bag made it to the news. He was surprised that the bag merited so much media attention.

“I have always taken a bag with me when traveling, it’s normal. But we must be normal.

I don’t know. What you say is a bit strange for me; that the photograph went all over the world.

But we must get used to being normal,” he told a foreign reporter.

The contents are his mundane requirements that included a razor, a breviary (liturgical book), an appointment book and a book to read.

eligible to run in 2016

By Joel R. San Juan

T

HE Supreme Court (SC) has clarified that the eligibility of former President and now Manila City Mayor Joseph Estrada to seek another term as the country’s leader is an issue that has not been decided by the SC. Speaking to mediamen, SC Spokesman Theodore Te recalled that Estrada’s eligibilty to run as president was first brought before the Court when he ran for president in the 2010 polls.

However, the case was not decided on the merit as the Court dismissed the case for being moot since Estrada, who was ousted by Edsa People Power 2, did not win the presidential race.

Te also noted that the recent ruling issued by the Court, affirming Estrada’s eligibility to run as mayor in Manila during the 2013 elections does not pertain to his eligibility to run in next year’s presidential elections.

“The decision resolved only the issue involving the qualification of the former President in the 2013 elections.

His eligibility for the 2016 presidential elections is another matter,” Te said.

The Court has yet to release the official copy of its Wednesday’s decision, which junked the disqualification case against Estrada, filed by his rival, former Mayor Alfredo Lim, and Lim’s lawyer Alicia Risos-Vidal.

In its August 2010 ruling, the High Tribunal dismissed the

TE: “The decision resolved only the issue involving the qualification of the former President in the 2013 elections. His eligibility for the 2016 presidential elections is another matter.”

disqualification case against Estrada in the first automated presidential polls for being moot.

The Court held that “any discussion of his ‘reelection’ will simply be hypothetical and speculative,” and “will serve no useful or practical purpose.”

It ruled that the defeat of Estrada

by President Aquino was a “subsequent event” that had “overtaken” the legal issue on Estrada’s qualification.

In a ruling issued last week, the Court dismissed the disqualification case against Estrada, after the SC “considered the ‘characterization’ of the pardon” given by former President Gloria Macapagal-Arroyo after the latter’s conviction for plunder in 2007.

“The majority characterized the pardon extended by Mrs. Arroyo to Mr. Estrada as absolute, thereby restoring Mr. Estrada’s qualifications to stand as candidate in the last mayoralty elections,” the Court announced on January 21.

Economy

A4 Monday, January 26, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

Subsidies to mining sector up

T

By Cai U. Ordinario

he mining industry—constantly under attack by nongovernmental groups for its effects on the environment—is getting higher subsidies from the state.

According to the latest report of the Philippine Statistics Authority (PSA), the government increased its subsidies to mining and quarrying establishments by 59.3 percent in 2012.

In the final results of the 2012 Census of Philippine Business and

Industry-Mining and Quarrying for All Establishments, the PSA said subsidies to the sector increased to P369.4 million in 2012, from P231.8 million in 2010.

The bulk of these subsidies— P367.9 million, or 99.6 percent of the total—was extended to nickel-

ore mining. Only P1.4 million, or 0.4 percent of the total, was extended to stone quarrying, except limestone and marble.

“Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry,” the PSA explained.

Nickel-ore mining establishments accounted for only 7.9 percent, or 25 establishments, in the Mining and Quarrying sector.

Sand and gravel quarrying had the most number of establishments at 77 firms, or 24.3 percent of the total, in the Mining and Quarrying sector.

In 2012 the PSA said there were 317 establishments engaged in mining and quarrying activities in the

formal sector of the economy.

However, nickel-ore mining establishments employed the most number of workers, followed by copper-ore mining.

The PSA said 31.8 percent, or 12,362 workers, of the total employed in the Mining and Quarrying sector were in nickel-ore mining establishments. In copper-ore mining, there were 8,242 workers, or 21.2 percent of the total.

Total employment of all mining and quarrying establishments reached 38,825 in 2012, an increase of 44.7 percent from 26,834 workers recorded in 2010.

In terms of value output, the entire Mining and Quarrying sector generated a total of P191.3 billion in

2012, a 90.6-percent increase from the P100.4 billion produced in 2010.

The extraction of natural gas produced 34.9 percent, or P66.8 billion, of the total value of output. This was followed by nickel-ore mining, with an output share of 21.5 percent, or 41.2 billion.

The value added generated by mining and quarrying establishments reached P114.2 billion in 2012, representing an increase of 109.7 percent from P54.5 billion in 2010.

Extraction of natural gas generated 50.1 percent, or P57.2 billion, of the total value added. Nickel-ore and copper-ore mining contributed P21.8 billion, or 19.1 percent; and P17.9 billion, or 15.7 percent, respectively.

Integrity Initiative cites efforts to end unethical trade practices

By Roderick L. Abad

I

ntegrity Initiative Chairman Ramon del Rosario Jr. said the government has already made significant strides in terms of eradicating unethical business practices in the country.

One proof of this is the Philippines’s 52nd ranking out of 144 countries in the 2014 and 2015 World Economic Forum’s (WEF) Global Competitiveness Index, up 33 notches from 85th in 2010.

WEF, likewise, placed the country at 67th globally in the strength of institutions segment, or a 50-place improvement since 2010.

Another noteworthy accomplishment, del Rosario said, is country’s enhanced performance in the ethics and corruption subcategory at 81st spot from 135th in 2010.

With such achievements, del Rosario said they are delighted that the Integrity Initiative’s endeavors aligned with the government’s anti-corruption efforts have come into fruition.

He cited the people’s support that also contributed to achieving common ethical standards in the society.

In 2011 the private sector-led Integrity Initiative came into being amid widespread dissatisfaction over the culture of unethical practices prevalent in all rungs of society.

Since its inception, it has done several activities aimed at advancing good governance in the business sector across the nation.

Last year the organization tapped the youth and encouraged them to strive for a moral and ethical country with the launch of “Integrity Nation Now” campaign in 2014.

Other activities conducted last year were the Integrity Summit, Integrity Film Fest and the Integrity Youth Concert.

This year another major activity— the Integrity March—will be held, which is expected to reinvigorate the fight for integrity.

Private and public organizations, as well as government institutions, also continue to join the Integrity Initiative. At present more than 3,500 private sector entities and national government agencies have signed the Integrity Pledge.

“We are proud of the things we have achieved throughout the four years,”

TRICITY Yamaha Motor Philippines officials Romero Tan (from left), sales general manager; Toru Osugi, president; Kaoru Ogura, sales and marketing

director; and Ryan Jude Camus, marketing section manager, lead the launch of the new Yamaha Tricity. Designed for a unique but natural movement, the core of this new commuter-vehicle technology is the Leaning Multiwheel, where two front wheels deal with changes in different road surfaces, while keeping both tires in contact with the road as it leans. Stephanie Tumampos

del Rosario said. “It’s very challenging, especially for a country like ours where people are at the verge of giving up on their country. But look where our hard work has taken us.”

To continue ethical practices in the Philippines, he revealed that the association will come up this year with a sustainability plan that will be drafted with its stakeholders to

map out activities that will support the organization’s operation, as well as closely coordinate with ranking government officials to further its advocacy.

NGCP: Lines damaged by Amang back in operation

By Lenie Lectura

T

he National Grid Corp. of the Philippines (NGCP) reported that it has fully restored all its transmission, subtransmission lines and substations in the Visayas that were affected by Tropical Storm Amang.

The grid operator said all affected facilities are now in normal condition.

“NGCP assures the public that it is ready to conduct similar disastermanagement activ ities to ensure reliable powertransmission ser v ices.

T he cor poration is a lso continuously ta k ing necessar y preparations and precautions to minimize the impact of succeeding tropica l stor ms and disasters on NGCP operations and facilities,” it said.

The NGCP is a privately owned corporation in charge of operating, maintaining, and developing the country’s power grid. It transmits high-voltage electricity through “power superhighways”that include the interconnected system of transmission lines, towers, substations and related assets.

The consortium holds the 25-year concession to operate the country’s power-transmission network and is comprised of Monte Oro Grid Resources Corp., led by Henry Sy Jr., Calaca High Power Corp., led by Robert Coyiuto Jr. and the State Grid Corp. of China as technical partners.

Govt, private sector see bright prospects for PHL economy

By Kris M. Crismundo Philippines News Agency

D

espite the slower growth of the economy in 2014, economists, the government and the business community project brighter prospects for the Philippine economy in 2015.

The country’s average gross do-

SALE, SALE, SALE

mestic product (GDP) growth in the first three quarters of last year settled at 5.8 percent, lower than the government’s target of 6.5 percent to 7.5 percent for 2014.

For Trade Secretary Gregory L. Domingo, the economy is seen to regain its fast growth this year after “resting” at 5.8 percent last year— correcting and adjusting from the

booming 7.2-percent GDP growth in 2013.

In an interview, Domingo projected the country’s GDP to grow at 7 percent, or above, this year supported by the expansion of the manufacturing sector, sustained strength of the services sector, continuous flow of remittances, better performance of agriculture

People from different walks of life are treated to good buys, as malls in Metro Manila, including this one in Pasay City, are offering different sales schemes to attract consumers and take advantage of the strengthening buying power of Filipinos. NONIE REYES

sector, rolling out of public-private partnership (PPP) projects, higher infrastructure budget, electionrelated spending due to the approaching national election in 2016, continuous decline in prices of oil products, and inflation rate slowdown, among others.

Alfredo M. Yao, the president of the country’s largest business organization Philippine Chamber of Commerce and Industry (PCCI), he also forecast the Philippine economy to expand better this year than in 2014.

Yao projected GDP growth for this year to settle at 7 percent to 7.2 percent.

His reason: Same as the DTI chief’s.

expect investments in the manufacturing sector to continue with positive expectations of foreign investors in the country.

Both IPAs will continue to promote the Philippines this year as an investment destination, with focus in Japan and European countries for Peza, while BOI—aside from the traditional markets—will attract investors from South America.

Investments in manufacturing sector are expected to continue

Recovering electronics sector

Both the Board of Investments (BOI) and Philippine Economic Zone Authority (Peza)—two of the country’s largest investment promotion agencies (IPA)—noted surge in investments in the manufacturing sector in 2014.

Approved investments by the BOI in the manufacturing sector last year increased by 78 percent to P24.5 billion from P13.8 billion in 2013.

Likewise, Peza recorded huge investments in the sector last year as four out of 10 biggest economic zone developers were for the manufacturing sector, while six out of 10 largest projects in the previous year were expansions from manufacturing companies.

The Bureau of Investments (BOI) and the Philippine Economic Zone Authority, which are under the DTI,

Automotive industry will continue to perk up

The auto industry ended 2014 with a booming 27-percent growth in sales totaling 270,312 units.

The industry expects total sales this year to reach 300,000 units.

Positive outlook is seen for the electronics industry, both in trade and investments.

The World Bank has said that markets of electronic products already recovered. Thus, the Philippines—as one of the major electronics exporting countries in the region—will benefit from the recovering global electronics industry.

The Semiconductor and Electronics Industry of the Philippines Inc. said the industry’s exports in January to November 2014 period grew by 8 percent to $22 billion.

Electronic products account for around 30 percent of the country’s total exports.

In terms of investments, Peza said the electronics industry will remain the top investor this year, particularly with the robust demand in the auto electronics.

Lower oil prices, higher purchasing power

The Philippines is a big beneficiary of the declining oil prices in the world market since the country is a net importer of oil products.

According to the World Bank, oil prices have decreased by more than 40 percent between January and December last year and is seen to further decline by an average of 31.9 percent this year. The World Bank added that this will push for higher household and business purchasing power, which can support consumption growth in 2015.

“Moreover, lower oil prices can boost the economy of the Philippines’s oil-importing trade partners, thereby increasing demand for Philippine exports,” the World Bank noted in its Philippine Economic Update published earlier this month.

Favorable exports sector

Aside from the benefit of falling crude prices to the export sector, the inclusion of the Philippines in the European Union Generalized Scheme of Preferences Plus (EU GSP+) will be favorable to the country’s exports revenue.

The EU GSP+, which took effect on December 25 last year, provides zero duty to 6,274 products from the scheme’s beneficiaries entering the EU market. The DTI expects exports to EU to increase by at least 600 million euros in the first few years of the GSP+ implementation.

Other countries can also take advantage of the Philippines as a gateway to EU markets with this GSP+. PNA

Economy BusinessMirror

news@businessmirror.com.ph

Port congestion delaying Shell’s refinery upgrade

By Lenie Lectura

T

he increasing congestion at the Port of Manila has allegedly hampered Pilipinas Shell’s refinery upgrade in Batangas.

According to Energy Undersecretary Zenaida Y. Monsada, the upgrade “will be delayed by one quarter because equipment cannot be released immediately [due to port congestion].”

Monsada did not elaborate. Shell issued no reply when sought for comment.

Shell intends to upgrade its refinery at a cost of $100 million to $150 million. Ideally, it should be finished in time for the 2016 implementation of “Euro IV (PH)” grade diesel and gasoline set to take effect

by January 2016.

Shell was looking at expanding its 110,000-barrel-per-day refinery to meet new fuel standards that will take effect in 2016. Euro 4 is a globally accepted European emission standard for vehicles. The Euro 4 standards require fuel to have significantly low amounts of sulfur and benzene.

Earlier, Shell officials said the oil firm’s initial public offering plans hinge on a final investment decision that will determine whether to push through with an expansion of its refinery business in Tabangao, Batangas.

Energy Secretary Carlos Jericho L. Petilla said he was informed by Shell that it will expand its refinery business.

“They are going to expand,” Petilla said.

Monday, January 26, 2015 A5

Bill authorizing state to purchase backup modular generator sets filed

A

By Jovee Marie N. dela Cruz

measure creating the Energy Security Asset program, which shall allow the government to purchase modular generator sets to serve as backup generators in times of power shortages, has been filed at the House of Representatives.

In House Bill 5305, Liberal Party Rep. Alfredo B. Benitez of Negros Occidental said the establishment of the Energy Security Asset program would allow the government to undertake necessary interventions during imminent shortages in power supply.

The bill called the Energy Security Assets Act of 2014, mandates the Department of Energy (DOE), through the Power Sector Assets and Liabilities Management Corp. (PSALM), to negotiate contracts for the purchase of additional generating capacity equivalent to at least 1,000 megawatts (MW) to cover the possible shortages in power supply and/or reserves and forced outages and maintenance of existing power plants.

However, the bill said the modular generator sets to be purchased shall only serve as a backup generators and shall only be used during yellow-and-red alert status of power supply. The modular generator sets shall not

be counted as part of the country’s current power supply.

The bill also directs the Joint Congressional Power Commission to declare, through a joint resolution, the imminent yellowand-red alert status after conducting public hearings on the matter; and that the President shall issue a directive to the DOE and PSALM to use the purchased modular generator sets after the passage of the joint resolution in Congress.

It added that the energy-security asset of the government shall be primarily managed

by PSALM and the DOE, which shall create a new unit within the agency to oversee the maintenance of the acquired modular generator sets.

The measure provides that the government should allocate a portion of the proceeds from the Malampaya Fund included in the Special Accounts under the General

Fund 151 of the DOE, to be used to finance energy-resource development and exploration programs and projects of the government for such purpose.

In his explanatory note, Benitez said while the purchase of modular generating system has been excluded as an option being proposed in the emergency power of the President, it should still be considered as a serious measure to address future powersupply needs of the country.

“It is critical for the government to have a backup generator sets which should promote energy sufficiency in the country— security program, which the government could not expect from the private sector,” Benitez said.

According to Benitez, chairman of the House Committee on Housing and Urban Development, despite the privatization of the energy sector after the passage of the Electric Power Industry Reform Act, it is still the inherent duty of the government to install safeguards if the private-sector supply is not sufficient in order to uphold public welfare and economic development.

Benitez said the DOE has recently alerted the public of a looming power crisis in 2015 because of a projected shortage in supply.

He said such is the basis of the emergency powers asked by the President from Congress to undertake government interventions within the power sector to address the projected shortage in power.

The DOE said around 700 MW of gener-

ating capacity is needed at any given time assuming a projected shortfall of 31 MW in April plus the required reserves of at least 647 MW. It added that any shortage in the power reserves meant shortage in the total power supply of the country.

The House of Representatives has already passed on final reading the House Joint Resolution (HJR) 21, which grants President Aquino emergency powers to address the projected 700-MW deficit in summer this year.

The HJR 21 wants the government to mainly use Interruptible Load Program (ILP) in generating additional power capacity.

The DOE said the government would need at least P200 million for the implementation of the ILP. Based on established protocols, the ILP is implemented during a red-alert status (minimal power reserve) upon the notice of the National Grid Corp. of the Philippines and the power utilities informing ILP participants to deload from the grid.

The ILP is a voluntary program whereby businesses such as malls and factories that have their own generators can be disconnected from the power grid in times of short supply, and can sell any excess power they generate to distributors.

Through the ILP, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the summer season.

Tourism

A6 Monday, January 26, 2015 • Editor: Gerard Ramos

A story about Bora 1

THE OWNERS OF WILLY’S BEACH HOTELSOME

H

B J V B.  B

AVE you ever wondered about what the famous Boracay Island was like before today’s hubbub of grand festivities, paved developments and crowds from all over the world?

Socorro Ruchanie Gelito Gadon, or Bebot, president and general manager of Willy’s Beach Hotel, and whose family is one of the first few inhabitants of Boracay Island, described the island’s pristine glory—an island so rich in vegetation and aquatic life, covered with white sand as fine as powder and surrounded by tranquil blue waters.

When the sun sets in Boracay these days, the real party begins. It was much different back then. Bebot shared that it was only in 1992 when proper electricity was set up on the island. Prior to that, the whole island was lit only by lamps, creating a romantic hushed setting.

Her daughter Febehanne G. Fabilane, or V-anne, who is currently an executive at the hotel, also has fond childhood memories of the old Boracay. “I remember that during sunset, Boracaynons would stay on the beach to look at the setting of the sun, the island’s only source of light. That would signal that it was the end of the day already. After that, we would settle back inside our humble homes to rest. Life was very simple back then.

“As children, the White Beach was our playground. Every day, we would play patintero before sunset. It was like social media to us back then. The modest lifestyle, the tight-knit relationship among the locals, the good values, the free-spirited backpackers, and the unspoiled natural beauty of the island made it a paradise, indeed.

Now, I recall that ‘old Boracay’ feeling whenever electricity is interrupted at night, and I rush toward the beach to have that glimpse of our paradise— until power from the generator kicks in,” V-anne said.

It was in the early 1970s when the island started to attract international adventure-savvy visitors. As accounts of the pristine island spread, there rose a demand for amenable cottages where foreign visitors could have a comfortable stay. Wilfredo “Willy” Miralles Gelito, Bebot’s father, was one of the first to build cottages on the island way back in 1975.

“Our family’s origins could only be traced on this island. My forefathers were some of the very first to see the island’s earliest developments,” Bebot said. “We are deeply rooted in this island, and we’ve always had innate concern for it. As for my father, he saw that the island had a potential for tourism. He said that tourism will be beneficial for the island, so he started to build Willy’s first cottages.”

Being the eldest of five children, Bebot naturally got the responsibility to manage the now 2,102-square-meter hotel from her father. When she took over, she started updating the cottages' architecture and turning them into air-conditioned and tiled rooms, with modern interior design along with the enhanced services.

“The preferences of tourists changed. They wanted to feel more comfortable in their stay. And, of course, as a hotelier, you want to always provide what’s best for your guests,” Bebot said.

BUILT UPON A SOLID ROCK

SITUATED about 100 meters offshore, in the shallow water in Station 1, Willy’s Rock is a castle-like volcanic formation that dominates the seascape along White Beach. Willy’s Rock is the most photographed landmark in Boracay and offers a superior view of the island.

V-anne shared why the famous landmark was named Willy’s Rock.

“When you view the rock standing in front of Willy’s Rock Bar & Restaurant, you quickly realize that it is the closest and best angle of the outstanding rock formation. We are grateful to have remained here, owning this humble beachfront lot while most of the properties in Boracay owned by locals like us have been either leased or sold.”

“My father meticulously planted water coconut trees on that rock and early backpackers identified our establishment by that rock and vise-versa,” Bebot enthused.

A FAMILY PASSION

JUST as solid as Willy’s Rock is the family’s passion for serving the community on the island, and this is reflected in its service of its hotel guests.

“My father Willy, who was once the vice mayor of Malay, would always extend assistance to the people of Boracay; and my mother Rebecca M. Gelito was a devoted public nurse who taught us the value of community service,” Bebot shared.

“We take this inspiration from our family, which has operated Willy’s from the very start. I believe that if we have the passion for what we do, we will never be exhausted,” Bebot added.

“My father started the business, and I’m from the second generation who has assumed the running of it.

There was also a time when all my siblings participated in the management of the hotel. My daughter and her husband, Rodelio ‘Douglas’ D. Fabilane, are currently managing the day-to-day of the business with the same vision and mission I have established. My grandchildren are now encouraged to observe and take part in the family business with the right attitude, and to continue the community service my parents started. The passion lives on."

Meanwhile, V-anne shared how much she looks up to her mother. “I’ve seen my mother so hands-on in the operations of the hotel. What I really admire is her guts. During difficult times in the management, she is like a softhearted iron lady.”

She continued that her mom also serves as a voice to the Boracaynons.

"When people here need a spokesman to air their concerns to the local government, the national government and the private sector, my mother and her friends are among those who immediately stand up.”

BRINGING BACK THE WHITE BEACH OF THE PAST

THE family tries to preserve what is left of Boracay’s old glory, and this shows in their humble beach hotel.

“It saddens me sometimes that we are losing our family’s vision, which is to have Boracay keep its pristine beauty and avenues of modernization will only be limited to a few. We are losing Boracay of the past,” Bebot expressed.

Still, she remains hopeful. “What we can do now is to maintain what is here already, and just hope that we wouldn’t lose all that, too. It’s good that it is a renowned destination and we welcome people from everywhere, but we need to take care of the island, too.”

Willy’s Beach Hotel has 38 modestly built deluxe rooms, spacious enough to accommodate big groups, with four categories to choose from: Grand Premier, Super Deluxe, Deluxe and Standard.

Willy’s Beach Hotel is also a pio-

WILLY’S rock

neer in accommodating weddings, proposals, renewals and other events. It is among the most famous wedding venues on the whole island of Boracay, simply because of its convenient location and flexible wedding packages. In fact, it has catered more than 40 weddings.

Most of its clients are foreigners, who have traveled thousands of miles to get an exceptional beachwedding experience.

Aside from that, the hotel also has spacious conference rooms.

Significant names have chosen the hotel for the use of the multifunction room, frequented by companies since 1997 for annual seminars and a venue for important events. Likewise, government activities have also been held in the hotel.

“There will be some improvements in our amenities, facilities and services. We also have scheduled renovations for the restaurant and the room interiors. One significant change we are currently initiating is being part of eco-friendly endeavors in any way we can and strengthening our corporate social responsibility. There are so many things that we can still look forward to in the future,” V-anne said.

“We are thankful to have been trusted by our frequent returning guests, some of whom have been visiting us annually for years. We are determined to maintain our established company mission statement—to provide customer service that is beyond expectation,” Bebot concluded.

m&Entertainment BusinessMirror

tourism@businessmirror.com.ph • Monday, January 26, 2015 A7

racay before things got crazy 2

E OF THE ISLAND’S PIONEERSSHARE WHAT IT WAS LIKE BEFORE ALL THE HYPE AND FRENZY

BEACHFRONT

RESTAURANT

EXTERIOR

BusinessMirror

A8

TheElderly

Monday, January 26, 2015 • Editor: Efleda P. Campos

David Consunji: Helping build the Makati skyline

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By Rizal Raoul Reyes | Correspondent

N 2014 DMCI Chairman Emeritus David M. Consunji was ranked by Forbes Magazine as the sixth richest man in the Philippines with a net worth of $3.9 billion.

The previous year, the man who initially planned to become a soldier broke in the billionaires list of the Philippines.

Despite these individual achievements, Consunji remained unaffected and shrugged it off.

“It was no big deal for me when they put my name in the list. I had more concerns when I was working as secretary of public works and highways.

It was a huge responsibility managing the projects initiated by Mrs. [Imelda] Marcos,” Consunji said in a one-on-one interview held in his Makati City office.

Although Consunji was given a free hand in running the show so to speak, he found it quite hard handling the financial aspect and construction because of his position in the Cabinet.

“It also affected my health because of the pressures of the work,” he said.

Consunji acknowledged his Tiya Nena for instilling in him the right values, especially when he was starting to build his engineering career. She, along with his father, discouraged the young Consunji to study at the Philippine Military Academy and instead study engineering because it offers more stability.

His beloved Tiya Nena is none other than Dr. Maria Paz Mendoza Guazon, the first woman to graduate from the University of the Philippines (UP) College of Medicine. She was also known for her researches in pathology and her philanthropic work.

After graduating in 1946, Consunji took the board licensure examinations and passed that same year. In 1947 Consunji married his college sweetheart Fredesvinda Almeda. Mrs. Consunji graduated with a BS Pharmacy degree, also in UP in 1946.

While looking for work, Guazon asked him to work for her as a maintenance manager for her projects.

“She had the bad habit of always sup-

porting us,” Consunji jested.

Before going solo as a builder, Consunji had several working stints with different companies that taught him to learn important skills such as layouting a building, using concrete properly to ensure the strength of the building, executing the architectural plans, and pouring of the foundation. He also developed the important skill of building teamwork and rapport with the workers.

Now that he is equipped with the skills of building structures, Consunji beefed up his construction arsenal buying a one-bag concrete mixer for P500 and a slide rule. He said a major contractor offered to buy his mixer for P3,500 after he did some refurbishing.

“I politely declined the offer because the concrete mixer would help me in my future projects.”

Very few people know that Consunji proposed to build a subway system in Manila from Baclaran to Caloocan City passing Taft Avenue. His proposal was rejected because it cost a staggering P6 billion in the early 1970s. Instead, the Light Rail Transit 1 was built.

Interestingly, his first big project was a product of luck and timing.

“I am a fortunate person. One Sunday morning, a Coca-Cola official in the Pandacan plant came to our house apologizing for digging a portion of our vacant space so they could connect a pipe to the plant. While we were conversing, he told me that he knew my parents and asked me if I am interested to join the construction of the Coca-Cola plant in Tacloban. I immediately said yes and quickly organized my manpower for the project,” Consunji said. “The Tacloban project was my first big project. It was worth less than P400,000 in 1951.”

He impressed Don Andres Soriano when he finished the project in one

dmci file photo

David M. Consunji has always stressed quality in his construction projects.

year instead of the planned two years.

Soriano later asked him to build the San Miguel head office in the corner of Ayala Avenue and Paseo de Roxas (now the site of Enterprise Building).

“My family ties with Don Andres go a long way. My maternal grandmother and his mother were close friends,” Consunji said.

In 1954 Consunji established DM Consunji Inc. to cope with the growing demand for his services, with P3 million in authorized capitalization.

As usual, Guazon advised him to deal fair and square with his clients because contractors during those times had a bad reputation. “I assured Tiya Nena I will not put the Consunji name in a bad light.”

Luck also complemented Consunji’s skill as a builder. While building the Chapel of the Holy Sacrifice, simply called the UP Chapel, Ayala executive and artist Fernando Zobel was impressed by the work of the stellar team doing the project. Aside from Consunji, the group included Leandro Locsin (architect), Dean Alfredo Juinio (structural engineer), Napoleon Abueva (sculptor), Vicente Manansala (painter) and Arturo Luz (artist).

Zobel immediately invited the team to join in the development projects in Makati City. Locsin would be

the architect; Juinio the structural engineer for the buildings; and Consunji for the construction.

In 1959 the troika of Consunji, Locsin and Juinio built the seven-story Monterey Apartment on Ayala Avenue, the first high structure in the Makati business district.

That was start of the involvement of DM Consunji in landmark projects in Makati City and other areas within and outside the Philippines. As they say, the rest is history.

DMCI is now the leading contractorbuilder in the Philippines.

Today, to remain sharp and efficient, Consunji acts as a mentor to his younger workers. “I always tell my boys that we’re competing and be sure to last in actual combat.”

“In the kingdom of the blind, the one-eyed is the king,” he said.

In his more than five decades in the construction industry, Consunji and DMCI proved that only the competent and strong survive. “The magic of construction is given to the people who deserve it.”

Being a good leader, Consunji said his people have a major role in helping him build DMCI into its premier position in the Philippine construction industry.

American Eagle Scout brings sights, smells to therapeutic garden

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FTER a stroke or severe brain injury, adjusting to the world beyond the hospital can be difficult for patients. Sights, sounds and tastes that were once familiar may seem overwhelming. The task of walking is stressful for some.

At the Sutter Rehabilitation Institute in Roseville, patients have one more reason to go outside, thanks to Akshay Reddy, a local Eagle Scout who installed a sensory garden there over the holidays.

The Scout saw the break from his freshman-year studies at Granite Bay High School as an opportunity to help patients at the institute, which serves up to 55 people who have suffered brain, spinal cord or orthopedic injuries, strokes or other complex medical injuries. Patients stay there for an average of two weeks while they regain lost cognitive function or relearn physical skills.

A sensory garden is designed to stimulate the senses in an engaging and accessible way. That can be key for patients whose sensory abilities are compromised after an injury, said Alyssa Rose, a recreational therapist at the institute.

“This is a great opportunity for them to stimulate the senses in a variety of ways,” she said. “Being able to connect to the natural world is a very healing opportunity, whether it’s through the

sense of touch, smell or taste.”

Reddy’s garden contains about 50 plants, which line the perimeter of the facility’s outdoor rehabilitation area. The plants are separated into four distinct sections—taste, smell, touch and sight. Garlic and citrus plants invite patients to take a nibble, while celery gives off a prominent scent. A variety of coral bells with a feltlike texture is soft on the fingers, and a pot of bright pansies catches the eye.

Reddy, 14, picked out the plants with the help of Bushnell Gardens Nursery in Granite Bay, which donated 25 plants to the cause. He and his fellow Scouts weeded the garden area, filled colorful buckets with soil, then created labels for patients to engage with. The project took about two weeks in its entirety, though the garden itself was installed in a day.

“I’ve always wanted to help people, and I think this is the best way to do it,” Reddy said. “The patients seem really happy when they’re walking around the garden smelling the plants. It feels good to see that.”

Beverly Alvarez, a 40-year-old Yuba City resident who recently suffered a second stroke, said last week she had come out to the sensory garden almost every day since she was admitted to the rehabilitation institute earlier this month. Though at first her vision was

Together Elderly couple holds hands while walking in front of the Mall of Asia Arena recently in Pasay City.

blurred and her sense of touch numbed, she said she enjoyed more and more elements of the garden as she recovered.

At her home, Alvarez maintains hundreds of rose bushes and a vegetable garden, crediting herself with having a “green

KEVIN DE LA CRUZ

thumb.” After her left-brain stroke, she hopes to work her way back to gardening again. “I like the things that live,” she said. “I don’t want someone to just buy me a plant in a pot ... This is the way I relax.

It’s very peaceful.” Tribune Content Agency Llc.

news@businessmirror.com.ph

Legazpi mayor enjoins senior citizens to take advantage of automatic PhilHealth coverage

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EGAZPI CITY—City Mayor Noel Rosal has enjoined all associations of senior citizens in the 70 barangays of the city to orient their members on the provisions of Republic Act (RA) 10645.

In his directive to the Office of Senior Citizens Affairs (Osca), Rosal said it is necessary that all the around 10,000 senior citizens in the city are informed of this new law that makes mandatory the provision of Philippine Health Insurance Corp. (PhilHealth) coverage to all Filipinos, 60 years old and above regardless of their social or economic status.

RA 10645, which amended RA 7432, or the “Expanded Senior Citizens Act of 2010,” by removing the requirement that a senior citizen has to be indigent or poor before he or she could enjoy PhilHealth coverage, is now in effect after it was signed

by President Aquino last November.

For senior citizens to enjoy the benefits, all they need to do is to present any valid identification card that prove their real age.

Based on official records, there are roughly 6.1 million Filipino senior citizens today, of which 3.94 million are covered by PhilHealth either as indigent, sponsored, lifetime member, or dependent and this new law brings the remaining 2.16 million senior under the same health-care coverage.

“This is a beautiful law as it considers the senior citizens’ condition wherein most of them have plenty of illnesses such as arthritis, gout, diabetes, weak heart condition, varicose veins, osteoporosis and back pains, among other old-age-caused health problems. Most of them have difficulties in walking because of weak knees,” Rosal said.

This automatic health insurance coverage, he said, responses to the call of time that the government give back to the country’s elders as in Filipino culture, the condition and situation of a person in his or her advance age is the reflection of the character of his or her children.

“How we take care of our senior citizens is also a mirror of our character as a city that is why we do not want anybody among them to be left behind in social-protection services,” the mayor said. Osca chief Jim Andes said there are about 10,000 senior citizens in the city who should be informed of this new law as he tasked officials of their association in each of the city’s 70 barangays of doing the information drive.

“We want them all informed so that we can avail of it when the need arises. Health-care benefits are now universal among senior citizens according to the wish of President Aquino. With this new law, enrollment with PhilHealth becomes automatic for the elderly and not optional,” Andes said.

As of last December, Andes said there are about 4,000 senior citizens in the city who are covered by PhilHealth either as indigent or city government-sponsored members. About 2,000 are covered as dependents.

Apart from informing them of their automatic health insurance coverage, Andes said, senior citizens in the city are also assured of enjoying their rights and privileges provided by law.

Owners of business establishments—including hotels, restaurants, grocery and hardware stores, funeral parlors, as well as physicians and transport operators—made the assurance during a recent dialogue with leaders of senior citizen associations of all barangays in the city. PNA

PhilHealth Run 2015 to benefit participants, vulnerable sectors of society

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HE Philippine Health Insurance Corp. (PhilHealth) said Thursday that joining the PhilHealth Run 2015 will not only be beneficial to the participants’ health but to the vulnerable sectors of society, as well.

PhilHealth President Alexander A. Padilla said participants from 13 regions of the country will hold a fun run simultaneously on February 15, to raise funds for their chosen beneficiaries, like cancer patients, differently abled persons, vulnerable and abandoned children, and haven for girls, women and others.

The fun run, dubbed “PhilHealth: Ready, TseKap, Go!” will take place in the cities of Quezon in the National Capital Region (NCR); Baguio, Dagupan, Tuguegarao, Olongapo, Lucena, Lipa, Naga, Iloilo, Cebu, Tacloban, Davao and Koronadal. It has the theme “Ensuring Universal Coverage for All.” In the NCR, its beneficiary is the Golden Reception and Action Center for the Elderly and other Special Cases (Graces), a facility which serves as a temporary shelter for the elderly.

Located at the back of SM City North Edsa, one of the biggest malls in Metro Manila, Graces is being managed by the Department of Social Welfare and Development NCR. Formerly called the Golden Acres, it provides various services to elderly men and women to relieve their loneliness of being away from their families.

Occupational and recreational activities are being conducted to enhance the residents’ vocational skills and their capacity to earn. Health and medical services are also provided, including treatment and referral for psychiatric examination to promote their psychological and mental well-being.

Currently, the center houses 148 elderly, mostly females endorsed by the local government units. Some of these elders were left and abandoned in the hospitals by their relatives, others were rescued from the streets and some were left by their own families due to poverty and inability to provide for their health requirements.

“We want our elderly to experience genuine care from real people. As we run together, we can somehow ease their pain, emotionally and physically until the remaining days of their twilight years,” Padilla said. PNA

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The Regions BusinessMirror

Iwahig needs 1,000 more prison guards

Story & Photo by Oliver Samson

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UERTO PRINCESA, Palawan—The sprawling penal colony here requires over 1,000 additional security personnel to meet the standard security muscle, said a senior official of the penitentiary. The existing size of the security in charge of the 26,000-hectare penal colony is relatively too small for its population of inmates, said Jacinto R. Regal, who is Iwahig Prison and Penal Farm supervisor. The vast penitentiary is subdivided into four colonies: Central (14,700 hectares), Santa Lucia (9,685 hectares), Montible (8,000 hectares), and Inagawan (13,000 hectares). It has also three security compounds—the minimum, medium, and maximum, Regal said.

The number of inmates is counted every six hours. The total number of inmates is 3,170, all male, who populate all the four colonies, he said.

“It is, however, relatively too big for the existing size of the security personnel,” he said.

The penitentiary’s security is manned by only 120 prison guards, out of the total 270 employees who work in its different offices, Regal said. Under Republic Act (RA) 10575, or “The Bureau of Corrections Act of 2013,” if the target ratio of prison guard to inmate is one to seven, Iwahig will require more than 1,000 new men, he said.

The additional security strength may be acquired by installment, who may be hired by batch per year, until such time the required total number is reached, Regal said.

RA 10575, Section 2, states that “the State shall provide for the modernization, professionalization and restructuring of the Bureau of Corrections [BuCor] by upgrading its

facilities, increasing the number of its personnel, upgrading the level of qualifications of their personnel and standardizing their base pay, retirement and other benefits.”

“So far our security is getting better, owing to the BuCor modernization act,” he said.

“In accordance, we have upgraded our security measures.”

The policies and regulations relative to the penitentiary modernization act are also increasingly introduced to bind the inmates, Regal said.

Foreseeing their possible return to mainstream society, the penal colony equips the inmates with livelihood and employable skills under the national penitentiary modernization program, he said.

Skills include handicraft making, soup-making, practical electrical training, basic automotive mechanics, poultry and hog raising, conventional agriculture, and organic farming. The trainings equip the inmates with technical know-how and skills they may need once reintegrated with the mainstream society, Regal said.

“With the technical knowledge and skills they learn, the inmates are employable when they reintegrate in the free society,” he said.

Regal said it has been long since he heard of a former prisoner in Iwahig committing another criminal offense in mainstream society after regaining liberty. The twin objectives of the BuCor are the safekeeping and reformation of the offenders, he said.

The Iwahig penal colony was established in Palawan, an island province southwestern part of the Philippines, during the American occupation of the Philippines, on November 16, 1904. It consists of rainforest, rice fields, pastures, vegetable plots, fish ponds and parks.

Angeles City DepEd lauds Rizal’s knights for promoting patriotism

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NGELES CIT Y—T he new head of the Department of Education (DepEd) schools division here has lauded the Order of the Knights of Rizal (Okor) for instilling patriotism among students at public schools in this city.

In his speech, Education Division of Angeles City Head Dr. Nicolas Capulong said the Okor are helping the government promote patriotism among students and young people by putting busts of national hero Jose Rizal in public high schools and elementary campuses here.

He joined Okor officials and members led by KGOR Supreme Exchequer Reynaldo “Rey” Malig and KCR Central Luzon Commander Fr. Andronico “Sonny” Pahed during the recent unveiling of the 11th Rizal bust at the Pulungbulo Elementary School here.

Capulong started his speech by asking the Okor to put a Rizal bust at the DepEd main office in this city, eliciting applause from

the students and Okor members. Malig said they will put Rizal’s bust at all public schools in the highly urbanized city before doing the same project at other schools in Pampanga.

Capulong said the students “should follow the ways of Rizal” to help build a better nation.

He said the execution of Rizal on December 30, 1896 at Bagumbayan, Manila is “just the end-part” of his heroism and “we should learn more from him, especially when he was a student.”

Capulong said Rizal adhered to hard work and instilled discipline and “these virtues” should be emulated by the students.

Pahed and Malig also led a feeding program shortly after the unveiling of the bust at the school where there are close to 900 students. The Okor, whose members are from the Philippines and other nations, is led by its supreme commander, Jeremias “Jerry” Singson, former vice governor of Ilocos Sur. Joey Pavia

A9

LTFRB lowers jeepney fares in Ilocos, CAR, W. Visayas

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A GROUP of young inmates dances to visitors for a donation at a recreation hall in Iwahig Prison and Penal Farm in Puerto Princesa, Palawan.

Monday, January 26, 2015

By Lorenz S. Marasigan

HE Land Transportation Franchising and Regulatory Board (LTFRB) on Sunday said it has reduced the jeepney fares in the Ilocos region (Region 1), the Cordillera Administrative Region (CAR) or Region 2 and Western Visayas (Region 6) by 50 centavos due to the continuous decline of oil price in the world market.

The minimum-fare reduction only covers the first 4 kilometers in the Ilocos and CAR, and the first 5 kilometers in Western Visayas. The

fare rate for succeeding kilometers in Regions 1 and 2 remain at P1.40, and P1.15 in Region 6. Persons with disability, senior citizens and students

in the region will continue to receive 20-percent discounted fare rates.

The regional offices of the LTFRB in the three regions conducted simultaneous public consultations on January 16. Various representatives of consumer groups, academe and drivers/PUJ operators’ associations attended the meetings.

After getting the side of the various multisectoral groups during the public hearings, the agency, upon the recommendation of the three regional offices, decided to provisionally reduce the minimum PUJ fare from P8.50 to P8 in Region 1, from P8 to P7.50 in Region 2, and from P7.50 to P7 in Region 6.

“Agad tumalima ang aming mga regional offices sa aming order na dinggin ang opinyon ng iba’t ibang sector sa kanilang mga kinasasakupan sa pamamagitan ng public hearing para makapagpatupad kami ng karampa-

tang bawas-pasahe sa kanilang mga lugar,” LTFRB Chairman Winston M. Ginez said. He added: “Ang patuloy na pagbaba ng presyo ng krudo sa pandaigdigang merkado at kailangan ding maramdaman ng mga mananakay sa iba pang rehiyon ng bansa sa pamamagitan ng pagpapatupad ng adjustment sa minimum PUJ fare in their area.”

The prices of diesel had already dropped nine consecutive times bringing the accumulated total net decrease to an average of P9.70 per liter. Last week major oil companies implemented a P1.25 and P1.45 per liter rollback in gasoline and diesel prices, respectively. The latest rollback is the third consecutive price cut this year. Since December last year, the regulator has been ordering jeepney operators from different parts of the country to charge lower fares due to declining diesel prices.

experts Berjaya Group founder leads Wildlife to explore forests groundbreaking for 100 new in Mindoro island W homes in CdO barangays

BERJAYA Group Founder Sri Tan Dato Seri Vincent Tan (back) is greeted enthusiastically by children and residents of Cagayan de Oro barangays, the beneficiaries of houses he built in typhoon-devastated areas in the Philippines.

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HE Berjaya Group of Companies, Malaysia’s leading conglomerate, marked another milestone in private-sector philanthropy, with the groundbreaking for 100 new homes in Berjaya-Gawad Kalinga (GK) Village at Escriva Heights, Zone 5 in Barangay Bugo, Cagayan de Oro City.

Berjaya Founder Sri Tan Dato Seri Vincent Tan flew to Cagayan de Oro City to lead the groundbreaking event, along with Berjaya Philippines Head Paul Soo. The Berjaya founder also led the turnover of 150 new homes, this time in Berjaya-GK village in Barangay Camaman-an, also in Cagayan de Oro. The turnover took place three years after Tan pledged to GK volunteers that his group will donate P300 million in three years to help build almost 820 houses all over the Philippines. In Cagayan de Oro alone, Berjaya helped build 200 houses for the victims of Typhoon Sendong.

From this small seed of hope planted in 2012, a very successful community housing project for the less fortunate has emerged, thanks to the fruitful partnership between Berjaya Group and GK. Now, almost 1,000 families

across the Philippines—mostly in areas devastated by natural calamities—are benefiting from the decent shelters which give them pride and dignity. All of these because of the unwavering commitment of Sri Tan Dato Seri Vincent Tan. Residents of Berjaya-GK Village in Barangay Camaman-an eagerly welcomed Tan. He was swarmed by children and residents who were very excited to finally meet their foreign sponsor.

One of the well-wishers was Lourdes Daroy, 60, a Sendong survivor who now acts as one of the village kapitbahayan leaders. Prior to relocating in Berjaya-GK Camamanan Village, Daroy lived in Isla Delta de Consolacion, a small fishing community among the hardest hit areas in Cagayan de Oro city during the onslaught.

“Many of my neighbors perished in 18-foot high floodwaters amid howling winds in the middle of the night. It was a miracle that I survived, after almost spending seven hours under extreme conditions, using empty plastic containers and holding on to whatever object kept me afloat in the raging waters,” she said.

“When I found out I was among

those who will benefit in Berjaya’s housing project, I was overjoyed as my fellow survivors and I can start rebuilding our lives. I thank Berjaya for their generosity,” Daroy said.

In an interview with the media, Tan expressed his jubilation over the projects, noting that the groundbreaking in Barangay Bugo and the turnover of additional homes in Camaman-an proudly carried out the Berjaya Group’s corporate citizenship philosophy and legacy.

“I always believe that it is important that we invest in the country and its people. We should be good corporate citizens, help the less fortunate, the victims of natural disasters. If we can help, then definitely we will help. We are fortunate that in the Philippines, we were able to meet with GK, which is a very incredible organization which I have high respect for,” Tan noted.

“Under the leadership of Tony [Meloto] and Luis [Oquiñena], they have done a great job. Berjaya now has 16 villages under its name, and we have more coming,” he said, adding that they are planning to sponsor more GK shelters, this time for Supertyphoon Yolanda-hit areas in Leyte.

ILDLIFE experts are eyeing to explore forests within two mountains ranges on Mindoro island as part of a continuing program which aims to help increase awareness about the island’s unique environment and rich biological diversity. The study will be commissioned by the Mindoro Biodiversity Conservation Foundation Inc. (MBCFI) and will be conducted within the year, says Grace Diamante, its executive director.

Areas to be explored are the forests within Mounts Halcon and Malasimbo. Also to be explored are the forest of the Municipality of Bulalacao. Mount Halcon, Mount Malasimbo and Bulalacao are among the priority sites identified by MBCFI. Mount Halcon is the highest peak in Mindoro and the third highest peak in the country. It is one of the mountain ranges that divide Western or Occidental Mindoro and Eastern or Oriental Mindoro. It is noted for having a thick forest, the natural habitat of wildlife species that thrive on the island.

Trekking Mount Halcon is considered by many mountaineers as very challenging, noting that there have been incidents wherein those who trekked the mountain get lost for several days and had to be rescued or end up dead.

Mount Malasimbo is one of the mountain ranges in the municipality of Puerto Galera in Oriental Mindoro, extending up to Abra de Ilog in Occidental Mindoro. None of the mountain ranges encompassing Mount Malasimbo have ever been declared as protected areas, watershed and/ or any other management category, making it unprotected and highly vulnerable to destructive human activities.

Diamante said studies being commissioned

by MBCFI, aims to assess the condition of the forests, and at the same time, come up with plans and programs to help sustainably develop Mindoro’s natural resources.

The studies also aim to identify new species of flora and fauna in Mindoro.

Last week the group launched five technical reports that highlighted the island’s rich biodiversity, announcing that 18 new species of birds, bats and fishes were added to the list of faunal species that are found on Mindoro island.

According to MBCFI, at present, a total of 62 species of mammals, 273 birds, 62 reptiles and 15 amphibians are recorded from the island of Mindoro. Of these 415 species, 149 are found only in the Philippines.

The group maintains a database of floral and faunal species found on Mindoro island which can be accessed through its web site.

Director Theresa Mundita Lim of the Biodiversity Management Bureau (BMB) of the Department of Environment and Natural Resources said that Mindoro, being a aseparate biogeographical region from the rest of the country, is expected to be home to certain unique species she described as “island endemics” such as the Philippine tamaraw and Mindoro bleeding heart.

“With some areas of Mindoro yet to be explored, it is not surprising for us to discover more species found only in the island,” Lim said.

She said any new information on Mindoro’s biodiversity will help the bureau put emphasis on the importance of Mindoro in the government’s biodiversity protection programs.

Opinion BusinessMirror

A10 Monday, January 26, 2015

editorial

Taming the inflation tiger

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statement released by the Bangko Sentral ng Pilipinas (BSP) about its performance in 2014 supports our contention that the BSP may be the most important government agency in regards to the economy and may be the best at doing its job.

The Philippines has managed to contain inflation within the government’s target for six consecutive years, after inflation rate in the fourth quarter of 2014 settled at 3.6 percent.

While the inflation target is wide with a range of 3 percent to 5 percent for the period, in the economic climate of the last six years, meeting any objective has been a challenge.

There are many factors that determine and influence how a nation’s inflation rate is going to move most beyond the control of any government. We have seen that with the recent and ongoing fall in crude oil prices. Natural disasters have always had a major impact on prices in the Philippines.

Economic policy moves by other nations near and far away are beyond the control of the BSP. But it is the reaction and monetary moves of the BSP that create success or failure and we have been fortunate to experience their successes.

However, the BSP is also fortunate to have been created for a single simple purpose.

From the BSP website: “The BSP’s primary objective is to maintain price stability conducive to a balanced and sustainable economic growth.

The BSP also aims to promote and preserve monetary stability and the convertibility of the national currency.” In other words, keep prices and the exchange rate of the peso stable.

In contrast the US Federal Reserve must conduct monetary policy credit conditions in the economy “in pursuit of maximum employment, stable prices, and moderate long-term interest rates.” The problem is that those may be conflicting goals that actually may fight against each other.

The European Central Bank also has problems with its mandate: “The main objective of the Eurosystem is to maintain price stability: safeguarding the value of the euro”. “Safeguarding” the value of the currency is a dangerous economic game as the Swiss National Bank sadly discovered.

The BSP must take a hilltop view of the economy and watch for signs that price increases are caused by an economy being over-heated by too much money supply and adjust their policy accordingly. Likewise, the BSP must insure that there is enough money in the system to allow for enough economic activity without inflation.

Of course BSP policies indirectly influence employment, the exchange rate of the peso, and all the other aspects to the economy. But effectively focusing on a single task of peso stability and controlled inflation creates the best foundation for overall economic growth and the BSP has done its job well.

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PCSO launches Lotto 6/58 game Atty. Jose Ferdinand M. Rojas II

RISING SUN

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HE Philippine Charity Sweepstakes Office (PCSO) opens the year with a new Lotto game that offers the highest minimum jackpot prizes among its games.

We anticipate that this new game will refresh the Lotto lineup and raise more funds for the PCSO’s core service programs related to medical- and healthcare-related assistance.

The PCSO now serves you in 43 branches nationwide through its social service programs. Its flagship program, the Individual Medical Assistance Program, subsidizes hospital treatment for individuals.

Other programs include the Endowment Fund Program, which provides grants to public hospitals for the treatment of qualified patients; the Ambulance Donation Program, which donates ambulances to local government units; the CapabilityBuilding Program, which provides medical equipment and supplies to clinics and health units especially those in remote and underserved areas; and, the Calamity Assistance program, which helps victims of national emergencies and natural disasters.

The PCSO also conducts free medi-

Approved in concept in 2013, the new Ultra Lotto 6/58 will be more exciting and provide players with chances to win much higher jackpot prizes.

The game’s minimum jackpot is P50 million. For consolation prizes, second prize (5 out of 6 winning numbers) can go as high as P280,000. Third prize (4 out of 6) might reach P3,800. Fourth prize (3 out of 6) is P20.

The mechanics of Ultra Lotto 6/58 are similar to those of other Lotto games. A player selects six numbers from 1 to 58 for only P20 per combination.

The first selling day for Ultra Lotto 6/58 is on February 7, and the first draw date is February 8. There will be two draws every week, on Friday and Sunday. The draws will be televised, like the other Lotto games, live over the People’s Television channel.

The last time the PCSO rolled out a new Lotto game was four years ago.

cal and dental missions in different areas around the country in coordination with nongovernment organizations and other charitable groups.

All these and other PCSO programs are funded through the conduct of the popular Lotto games. Every Lotto ticket you buy gives you the chance to be a multimillionaire and helps those less fortunate every day.

I look forward to welcoming the new PCSO Ultra Millionaires in the coming months. nnn

Speaking of PCSO games, do you recall the old-time Sweepstakes tickets that vendors used to sell almost everywhere back in the day? They were the agency’s only product until the computerized Lotto game was established in 1995.

Banking on fond memories and nostalgia, we revived last year the regular conduct of Sweepstakes through monthly draws called the “Mini-Sweepstakes,” of which the first draw for this year was held on January 25. nnn

Mini-Sweepstakes tickets are available at PCSO outlets nationwide.

Many Filipinos are feeling inspired and revitalized in their faith after the historic visit of His Holiness Pope Francis to the Philippines.

The Pope’s photographs that were taken here, showing his warm smile, are still being shared on social media.

The genuine love in his heart for all

Filipinos, as manifested in his expressions and actions, was felt by everyone and serves as a good example of the true Christian love for others.

We are indeed blessed to have hosted him here even for a little while.

Certainly the 5 days he spent in the country seemed too few and we pray that he will keep in good health and visit the Philippines again soon. nnn

Art aficionados interested in viewing the works of internationallyrenowned artist Juvenal Sanso may now do so at a new art museum in San Juan City that opened last November.

Fundacion Sanso houses more than 120 works, including the famous “Incubus” that won first prize in the watercolor category of the Art Association of the Philippines competition in 1951.

Also in the exhibit are Sanso’s oils on canvas, acrylic paintings, sketches, drawings, prints and little-known works such as textile designs, opera set and costume designs, as well as his personal archive.

Fundacion Sansó is open Mondays to Saturdays from 10a.m. to 5p.m.

For inquiries, call (632)952-1568 or send email to fundacionsanso@ gmail.com.

Atty. Jose Ferdinand M. Rojas II is the vice chairman and general manager of the Philippine Charity Sweepstakes Office.

Much remains unsaid since the slaughter at ‘Charlie Hebdo’

By Edward Wasserman TNS

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T’S not hard to imagine the scorn that the artists and writers of Charlie Hebdo might heap on the dour protests their deaths provoked. I can see a cartoon lampooning the political luminaries and cultural lions who turned out, trudging along in solemn procession holding placards that announce they too are Charlie. Then they pause just long enough to say what they’re really feeling–relief! After all, they’ll now be spared, for a while anyway, the jaundiced and biting ridicule at which Charlie’s staff excelled.

Instead of laughs, the funeral air was thick with pieties about freedom. But, hey, nobody can control who comes to their burials or what’s said in their obituaries (if any), and so the brilliant malcontents whose work populated Charlie’s pages have little choice but to suffer in silence the ironies and discomforts of martyrdom.

Their killers confront their own ironies, I suspect, though their fate as martyrs wouldn’t make them wince, since it’s what they sought.

They would never be taken alive, and they knew it.

Still, it’s ironic that they shared with the people they murdered an estrangement from a deeply rooted, cultural mainstream, a sense of alienation and grievance, a wish to be noticed, to have their impact felt, to settle scores. It’s hard to watch the video of slain terrorist Cherif Kouachi, a onetime rapper and pop culture enthusiast, alongside the video of Charlie’s cartoonists brainstorming about how to respond to the satirical Danish cartoons of 2005 featuring Mohammed in parody, and not wonder what they all might have talked about, if their only meeting hadn’t been down the barrel of a machine gun.

I was shocked and disgusted by the Charlie Hebdo killings in a way that I hadn’t been by the other atrocities of the post-9/11 terror. That’s because I got to know the tabloid weekly when I was young, a student in Paris. I used to read it because the cartoons were cool, its language was the patois I wanted to learn, and its sensibility the same anarchic and tasteless post-’68 blasphemy that inspired the counterculture that was roaring to life back home.

Hearing about the January 7 slaughter was like finding out that somebody assassinated Don Martin, the late Mad magazine cartoonist, or Robert Crumb, the Leonardo of the US underground press. Charlie Hebdo? Who on earth would kill those guys? Has the world truly gone nuts?

Journalism advocates moved quickly to claim the killings as further evidence of the lethal danger that reporters face, and were eager to add the murders to the dismal tally of news correspondents killed, jailed, tortured, beheaded.

But it’s not a good fit. Unless they’re held as a target of opportunity for ransom that’s refused, journalists are killed for cause. They die by a chill,

utilitarian logic, which was absent here. Reporters are in the business of exposing realities someone wants concealed, and if that someone is armed and angry, the journalist dies.

The Charlie team wasn’t exposing anything; they were hurling insults and poking fun. To me, that makes their slaughter disturbing for altogether different reasons. It represented an attempt to reshape French popular culture by redefining the boundaries of permissible social commentary, which for centuries has cherished a lusty strain of mean-spirited, profane, often outrageous, generally defamatory, abuse and derision.

The tradition of French satire of which Charlie was the proud bearer hadn’t spared popes or prelates and had followed an equal-opportunityto-insult policy that included monarchists as well as socialists, capitalists alongside trade unionists, Jews with Muslims–since giving offense was the point, the great cultural leveler.

It’s true that running grotesque cartoons of Arabs and deriding the founder of Islam causes special pain to Muslims who are struggling for recognition and legitimacy, in a country where the presence of North Africans is a legacy of a century of colonial exploitation and a half-century of domestic abuse.

But whether the satire was kind is beside the point. The point is that it was part of the deal, part of the popular culture that defined being French.

And the appropriate reprisal would be cartoons that pilloried the smug, cosseted Charlie Hebdo artists who claimed an entitlement to look down their noses at everyone. Not a firing squad.

Still, in the aftermath of the terror, the media in this country have dusted off the perennial issue of “hate speech.”

The idea that the slaughter of Charlie’s staff (the related killings of the wholly unrelated shoppers at a Jewish grocery in Paris aren’t mentioned) is in some bizarre sense a comment on the perils of free speech is so appallingly offensive it makes me splutter. It suggests that the satirists asked for it, that they bear responsibility for inviting their own murders.

And it vindicates the whole purpose of the horrific attack: To redraw the boundaries of allowable commentary so as to put what the killers revere off-limits.

What an irony that would be.

Meantime, it’s clear that the slaughter in Paris has managed to change the public policy subject, decisively, away from growing doubts over the wisdom of the endlessly renewable, insanely expensive, surveillance state that much of the world has drifted into since 2001. Here, Democrats cited the attacks to defend the $400 million increase in Homeland Security appropriations.

Never mind that the attacks demonstrated, once again, the futility of mass surveillance, since the killers had been well known to anti-terrorism authorities, and had been tracked assiduously.

The utter ineffectiveness of the security state in preventing the slaughter goes unremarked.

Instead we’re left with a renewed insistence on more, stronger, more thorough surveillance, which, in fact, will leave us less free and no safer.

Yet another irony that Charlie Hebdo would savor.

opinion@businessmirror.com.ph

Opinion

The air down here

Not Canadian but wrong just the same

BusinessMirror

However, since Piers Morgan is British, I find his reaction to Pope Francis’ reasonable remarks on the, shall we say, over the top Muslim reaction to insulting if childish cartoons even more puzzling.

The British are famous for loving their mothers. It is mum this and mum that and very little about dad who tended to be distant. But I am glad because my best friend in law school was Nova Scotian and related to the Scotch whiskey interest over there; the one who grew up thinking that nannies were Swiss so yayas abroad are in good company.

I admire English Catholicism even more. It has produced sublime classics, like Newman’s Apologia and Knox’s Enthusiasm, Ford’s Parades End and Waugh’s Brideshead along with the martyr Edmund Campion, the saint Thomas More and the exiled English Jesuits who returned to die in agony trying to take down a queen with a weaker title and the wrong religion from the British throne. It was risky to be Catholic in Britain and worse it was embarrassing.

Ronald Knox complained a century ago about the English Catholic’s tendency to apologize for his

faith under the social pressure not to be gauche or baduy by holding strong religious beliefs. Strong religious commitment, Pope Francis warned, invites the sneers of the sophisticated seeking the approbation of Satan who graces the inside covers of lifestyle magazines. Like all outsiders Catholics in Protestant countries are either poor and Irish throwing bombs or pretending they have no strong beliefs to avoid denying them.

Filipino Catholics can be like that but with less excuse in a Catholic country. This was evident in the RH debate where the Catholic position was dismissed as marginal by surveys; self-defeated by lack of preparation and always on the defensive when it should have been offensive as in my father’s time.

Yet John Paul II was the conscience of the world and Benedict its leading philosopher.

The Catholic position is that historically birth control is part of the Nazi agenda to weed out the weak and cull the colored unless they are useful to the small but

partment of Transportation establishes fuel efficiency standards–justified, in part, as saving us money on gasoline consumption. Likewise, the Department of Energy has imposed energy conservation standards on literally dozens of appliances–the benefits of which supposedly include lower utility bills.

Whenever government mandates such “benefits” through regulation, however, individuals lose the freedom to choose for themselves whether the benefit is worth the cost.

This constant increase in regulatory burdens also acts as a drag on the economy. It shifts resources from innovation, expansion and job creation to regulatory compliance.

One might hope that businesses would resist all the unnecessary government interference. Alas, it is not unusual to find them collabo-

rating with their overseers. Regulation raises competitors’ costs and erects barriers to market entry for newcomers.

Economist George Stigler described the phenomenon as “regulatory capture,” that is, businesses partnering with regulators to hinder their rivals. Of course, the extent of such capture is directly proportionate to the size and scope of government. The bigger government grows, the more special interests its produces.

More than any of its modern predecessors, the Obama administration has aggressively exploited regulation to achieve its policy agenda. Preceding administrations also have increased regulation, albeit to a lesser degree. According to the Office of Management and Budget, the regulatory burden imposed on

Americans and the US economy has grown in each of the past 30 years.

Total regulatory costs have not declined since 1982.

Regulatory overreach by the executive branch is only part of the problem. Much of the red tape imposed during the past five years has been driven by vast and vaguely worded legislation, such as the misnamed Patient Protection and Affordable Care Act (Obamacare) and the Dodd–Frank financialregulation law, in which Congress granted broad discretion to multiple agencies. In this way, lawmakers claim credit for “doing something” while evading blame for specific regulations.

Hundreds of other costly regulations are also in the works. The most recent Unified Agenda–a semi-annual compendium of planned regu-

Manny Piñol

Teddy Locsin Jr.

Free fire

the barefoot economist

M

ANY years ago, a national daily published a cartoon showing a caricature of a tall dark basketball player, obviously an American, who was holding a ball up high while staring down at a shorter player, suggestively a Filipino, and asking the question “How’s the air down there?”

Perhaps, it was the cartoonist’s way of telling the basketball-crazy Filipinos to stop dreaming of greatness in a game where height is might and where the shorter players are left smelling the armpits of the taller men.

It was clearly a denigration of the short people who would like to be Michael Jordan. The only consolation was that certain degree of concern in the question “How’s the air down there?”

Looking back, I now realize that the short man in the cartoon was better off than most Filipinos in the countryside today.

In the hype and hoopla over the ballyhooed economic progress and national growth which the political leadership says was attained by the country over the last few years, nobody has even bothered to ask those living in the remote areas of the Philippines “How’s life down there?”

How’s the economy in the village, town or provincial level?

It’s bad.

Poverty statistics show that in 7 of the country’s 16 administrative regions, 30 percent of the families still live below the poverty threshold of P16,000 in earnings every year with the national average placed at almost 20 percent.

Unemployment in the country is the highest among Asian countries at 7.3 percent.

These figures simply mean that at least 20 million Filipinos do not even earn at least P16,000 a year while there are 7.3 million more who could not find jobs.

There is a dearth of employment opportunities and jobs in the countryside thus the massive migration to the big cities resulting in big squatter colonies that are a boon to the vote-hungry politicians and a bane to the urban planners.

Filipinos who choose to leave their families behind to work abroad as construction workers, domestic helpers, nurses, doctors, engineers and seafarers now number almost 2.3 million.

The social cost of this modern day diaspora of the job-seeking Filipinos is very high, from broken families to children who are abandoned and uncared for and who turn to drugs.

The overseas workers, however, are the luckier ones. Many of them are able to send their children to school, build houses for their families and start a little business when they come home.

The unlucky ones are the bare-

foot Filipinos who slash the shrubs in the mountainside to grow a few hills of corn and plant camote to survive.

They do not even understand what “GDP” and “GNP” stand for and do not feel the so-called “economic growth.”

Hardly anybody in the Big City cares about the barefoot and disheveled short brown Filipino living in the countryside except perhaps a few like Ambassador Antonio L Cabangon-Chua.

When I asked him earlier last week if I could share the state of things among Filipinos living in the countryside through a column in this newspaper, he immediately said I should submit the first item right away.

So, starting this week, “The Barefoot Economist” will appear here as a way of sharing with the readers, most of whom are captains of industries and economic managers, and our national development planners the life story of the common Filipino in the countryside.

Hopefully, through this column, they will realize that in adding up the numbers to determine national growth, statistics showing the living condition of the rest of the 100 million Filipinos living outside of the big cities and in the remote areas of 7,107 islands of this archipelago must be included in the equation.

This column aims to tell the rest of the country how the air is down here.

Monday, January 26, 2015 A11

L

IZ Ceballos-Yale pointed out that Piers Morgan is British and not Canadian. Thanks Liz; my apologies to Canadians.

I thought all handsome anchors are smart and Canadian like Peter Jennings.

dominant race. But that way leads to Auschwitz. It is the anti-life and pro-choice position that needs defending because it is a simple matter of choice if you don’t want to run the risk of producing a life.

You can choose not to fornicate.

There is no compulsion to do it unless you are a monarch in need of an heir and as far as I know the only thing royal in our country is a brand of spaghetti.

It can’t be that tough to forebear as the ver y proper Lord Chesterfield told his son. “The pleasure is brief and the position is ridiculous.”

Indeed life is so precious, and that of the young so filled with promise, that its misuse and abuse defy explanation even by the Pope.

Francis confessed his inability to answer the abandoned girl’s question, “Why are children hurt and why are they not protected when God is so good and so powerful.”

The prochoice avoid the question by proposing instead that no child would be abused if it weren’t born in the first place.

latory actions by agencies–lists 126 “economically significant” rules in the “proposed” or “final” stages. Of particular concern is the FCC’s plans for Internet regulation.

Reforms of the regulatory process are critically needed. Among these: requiring congressional approval before any new major regulation takes effect, requiring analyses of the regulatory consequences of all proposed legislation before a vote

by Congress is held, setting sunset deadlines in law for all major regulations, and including “independent” agencies in the White House regulatory review process.

Without decisive action, the fundamental character of the nation will be transformed from one of individual liberty to one of government supremacy–no longer of, by and for the people.

ABOUT THE WRITER: Manny Piñol, a former journalist and 3-term Governor of North Cotabato from 1998-2007, holds a Master’s Degree in Rural Economic Development and has earned units for a doctorate degree in the same field. He has retired from politics after failing to regain the governorship in the last two elections. He now raises “Manok Pinoy,” a new breed of free-ranged backyard chicken which he personally developed, and grows rubber seedlings for sale in his nursery in Kidapawan City, North Cotabato.

As Governor of North Cotabato, he turned the economy of the province around, lifting it from the group of the 10 poorest provinces in the country in 1998 with a poverty incidence of 52 percent to become one of the Top 30 Performing Provinces by reducing poverty incidence to only 29 percent when he left office in 2007.

Today, the province slid back to the group of the poorest provinces in the country with a poverty incidence of 43 percent.

Our regulation problem

By Diane Katz and James L. Gattuso The Heritage Foundation/TNS

T

O say that Americans have a regulation problem is putting it lightly. For instance, the government is now setting the serving size of breath mints, and demanding 12-point type on clothing labels. It prohibits dog walkers from strolling with more than four pooches and requires cat food manufacturers to list calories in “kilocalories per kilogram.”

The feds also restrict the amount of water per flush (for toilets and urinals) and limits the electricity that may be used to power the oven clock.

And, of course, Washington now prescribes the type of health insurance we all must buy.

These rules are not anomalies in an otherwise rational regulatory system.

Indeed, never before has the federal government exerted such control over virtually every aspect of our lives, including our yard sales, light bulbs,

TV volume, telephone rates, toothbrushes, furniture, linen, and the size of the holes in Swiss cheese (Grade A must be 13/16 inches in diameter).

Not all regulations are unwarranted, of course. But today there are hundreds of thousands of pages of rules crafted to regulate lifestyle.

For example, the Food and Drug Administration is preparing to effectively ban most types of trans fats, and sodium is the next target in the agency’s regulatory sights. The De-

2nd Front Page BusinessMirror

A12 Monday, January 26, 2015

HEALTH FACILITIES TO BOOST AYALA LAND’S MALL BUSINESS

By VG Cabuag

P

roperty developer Ayala Land Inc. said it plans to build at least 20 clinics and hospitals in the next five to six years, as setting up such health facilities will complement the company’s mixed-use developments by generating more foot traffic in its malls.

Jaime Ysmael, the company’s CFO, said they initially plan to build 10 clinics and 10 hospitals in Ayala Land’s property developments in key cities across the country.

“We intend to continue expanding [the business], and we believe health care is a very good complement to the existing business we have, especially as we create new communities,” Ysmael said.

Ysmael, however, said the company will focus more on the clinics, which will be under Qualimed brand, as it attracts foot traffic to its malls. The company will mostly put up diagnostic centers with a few rooms.

Ayala Land already opened its hospital in Iloilo, and plans to put up a branch in its development in Nuvali in Laguna, Altaraza in Bulacan, North Point in Negros and in other parts in Metro Manila.

Ysmael, however, said the health venture is still part of the company’s plan to increase its recurring income, complementing its retail developments.

“It actually takes the same effort to actually plan, build and manage a small mall compared to a bigger one. So if you want to achieve the scale that you want to achieve, we’d rather do it on a bigger

manner, and we have the land bank to do that, especially within Metro Manila,” he said.

“There will be a lot of new shoppingcenter developments, which is really aligned with our 2020 vision, where we intend to expand the portfolio of shopping centers, offices, hotels, as well as resorts, to be able to achieve the balance growth between development and recurring income,” Ysmael added.

The company earlier said its emphasis this year will be on growing its recurring income from the shopping centers that it had developed over the years, and also its ventures in supermarket, convenience stores and hospitals.

Its supermarket venture will be handled by Puregold Price Club Inc., the convenience stores under the Family Mart brand that is being operated by Japanese conglomerate Itochu Corp.; with the hospital venture to be handled by the Mercado Hospital group.

The company is allocating a record P100 billion in capital expenditure for the year, with the company tapping the market to raise cash to fund its budget allocation.

Ysmael said there are no definite plans yet for its bond float but the tenors should be five, seven and 10 years.

“Ideally, we want seven and 10 years.

But that depends on the appetite of the market. But if not, five to seven years [is good]. And we also want to manage the maturity, so we don’t have very lumpy maturities moving forward,” Ysmael said.

IDC: PHL telco industry to grow 4.7% this year

R

By Lorenz S. Marasigan

esearch company International Data Corp. (IDC) said the Philippine telecommunications industry will likely grow by 4.7 percent in 2015, as smartphone penetration continues to rise in one of the fastest-growing economies in Asia.

“One of the key drivers is the growth in smartphone ownership, buoyed by declining prices and the continuing growth of local players,” IDC Research Manager Jubert Daniel Alberto said.

IDC Analyst and Devices Research Head Jerome Dominguez added that the Philippine smartphone market remains “bullish, as local vendors continue to drive smartphone-volume growth by further tapping into the large ma rket of budget- consc ious Filipino consumers.”

“The smartphone market already has several players at the moment, and the competition grows tougher quarter after quarter. There is now a greater need to differentiate one’s branding and offerings from the

pack in order to gain a competitive edge,” he said. Mobile operators, Alberto noted, are no more focused on upgrading and modernizing their networks and services.

“Moreover, the telco space in the Philippines is bolstered by the evolving role of telcos from being a pure connectivity provider to becoming a total ICT [information and communication technology] provider.

The ‘one to majority’ marketplace allows for telcos in the Philippines to be the services provider that can service various marketplaces,” he noted. The two rival telcos in the Philippines are expected to allocate an aggregate capital expenditures of P60 billion this year to rapidly increase their data services.

Philippine Long Distance Telephone Co. (PLDT) will likely spend P36 billion in capital investments this year. Globe Telecom Inc., on the other hand, has earmarked P29 billion as its annual budget for 2015.

As a whole, the ICT industry in the Philippines is projected to be in a continued upswing in 2015, as the sector will continue to ride with the growth momentum of the country’s economy, which is expected to grow by 6.3 percent this year.

“Based on IDC’s Annual Continuum Survey, a huge majority of Philippine companies are looking to

increase ICT budget and spending in 2015. This indicates a healthy sign for the country in the bigger scheme of things. ICT, [information and communications technology] spending is expected to be heavily impacted by the ‘3rd Platform,’ and the usage of its technologies is being driven by the needs of companies seeking for new and effective ways of engagement,” Alberto said.

He added that the adoption of disruptive technologies in the 3rd Platform, such as cloud, mobility, social business and big data analytics are bringing about innovations in business models and consumption patterns.

“There may be inhibiting factors, such as natural disasters and port congestion, but the effects of these will be limited in the short-term period only. IDC believes that the country’s optimistic economic outlook, growing ICT demand from the consumer and small- and medium-sized enterprise [SME] sectors, and the increasing requirement for the 3rd Platform technologies will shore up the Philippine ICT industry in 2015,” he noted. Hence, information technology (IT) spending in the Philippines is expected to be a “bright spot” in the Asean region.

“The ‘changing of the guards’ in the political front has deeply transformed IT spending habits that will drive a stronger demand for mobility, devices, services and applications across the country. The increasing ICT demand from SMEs and continued strong performance of the business-process outsourcing industry will also push ICT spending in 2015,” Alberto said. He added: “The sustained IT spending growth of 10.1 percent will push the country to be in a bright spot in the Association of Southeast Asian Nations.”

www.businessmirror.com.ph

Privatization of UCPB not progressing

By David Cagahastian

T

he privatization of the United Coconut Planters Bank (UCPB) had been stalled, as top officials of Malacañang remain undecided on the issue of who should benefit from the proceeds of such sale.

Finance Undersecretary Jose Emmanuel Reverente of the Privatization Management Office (PMO) said last week that while the government is certain that the privatization of UCPB will be good for the economy, the political consequences of such a move remain unresolved.

Reverente said there are groups claiming ownership over the government’s shares in UCPB, such as coconut farmers, whose profits were taxed during the Marcos regime to constitute the coco levy fund.

These claims persist despite a Supreme Court (SC) decision in January 2012, which ruled that the shares of stock in UCPB that were distributed to some 1.4 million coconut farmers as their private property should be reverted to the government because these were bought using public funds.

The coconut farmers are still the stockholders on record in the books of UCPB, but the bank’s board of directors currently regard them as “beneficial owners” of the shares, since the SC has already declared the government as the true owner of such shares.

Reverente earlier said the Presidential Commission on Good Government, which has control of UCPB, is finalizing the criteria for bidders in a public auction for the bank.

But while there may already be prospective investors, the issue of where the proceeds of the sale will go has yet to be resolved

by Malacañang.

STANDOUTS Miss Universe contestants (from left) Noyonita Lodh of India; Mary Jean Lastimosa of the Philippines; Keiko Tsuji of Japan; and Paulina Vega of Colombia pose for photos during a break in rehearsals on Saturday at Florida International University in Miami.

AP

Peza expects growth in fresh approvals to drop below 10%

By Catherine N. Pillas

T

he Philippine Economic Zone Authority (Peza) will be cutting its growth forecast for new investment approvals this year, particularly since tourism and biofuels projects are no longer eligible for Peza registration.

“We have to sit down on the numbers, considering tourism is

no longer eligible for Peza registration. We have to look at the targets...we may have to revise from last year because of tourism; the hotels are big investments,” Peza Director General Lilia B. de Lima told reporters.

Peza earlier set a 10-percent increase in fresh-investment approvals for 2015.

“Of course, we want double-digit

[growth] like last year. But we have to be realistic,” said de Lima, further saying that an 8-percent growth may be a more grounded target.

Peza can no longer give incentives to projects under the sectors of tourism for the areas of Metro Manila, Cebu, and Boracay, and biofuels pursuant to a resolution it approved in 2012.

Continued on A2