BusinessMirror January 3, 2015

BusinessMirror

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

U.N. Media Award 2008

A broader look at today’s business

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Tuesday, November 2014Vol. Vol.1010No. No.8640 Saturday, January 18, 3, 2015

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

nn

MONETARY OFFICIALS HAVE ENOUGH FLEXIBILITY TO ENSURE CONTINUED ECONOMIC GROWTH

PAPAL VISIT 2015

‘Risks to GDP growth manageable’ 11 DAYS INSIDE

And then they were one...

His becoming man

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OVING Father, through Christ our Lord, You call us to a new paradise. More than we could ever have hoped for is giving to us by the gift of Your Son. His becoming man made it possible for man to have a share in Your divine life. In this time of attack upon married life, give husbands and wives the grace to persevere in their vocations.

May marital fidelity conquer all the temptations of Satan. May the love of husband and wife truly become an image of Your own love. We ask this in the name of Jesus the Lord. Amen.

THE MAGNIFICAT ADVENT COMPANION AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

THE FINEST TOY SHOP IN THE WORLD IS HERE »D3

BusinessMirror

Saturday, January 3, 2015

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B R C

Dingdong looked emotional during the wedding rites and, according to veteran entertainment scribe, talent manager and TV host Lolit Solis, who was one of the wedding sponsors, the groom fought back tears as he watched Marian made her walk down the altar. As a young boy, Dingdong would hear Mass at the Immaculate Conception Cathedral and, there, he prayed to one day walk hand in hand with his chosen partner in life.

The traditional wedding ceremony was officiated by his Most Rev. Honesto Ongtiongco, DD, and nine other bishops. President Aquino, who was the Witness of Honor, came without much fanfare and did not join the wedding march.

Among the female sponsors, it was only Megastar Sharon Cuneta who failed to show up, but the other sponsors were present and joined the march: Kris Aquino, Helen Gamboa, Regine Velasquez, Gov. Vilma Santos, Dr. Vicki Belo and director Joyce Bernal. All wore red, which was the wedding’s color motif.

Almost all male sponsors were there, like Ogie Alcasid, Vic Sotto and German Moreno. However, GMA Chairman and CEO Atty. Felipe Gozon, and GMA President and COO Gilberto Duavit Jr. were not present,

presumably because both were on their respective annual holiday vacations with their families.

Notwithstanding the high-powered list of sponsors and guests, the wedding was simple but nonetheless truly elegant. The word is that Marian’s gown cost several millions, and the Dubai-based Cinco flew to Manila expressly to personally dress up Marian.

Outside the cathedral, a huge monitor had been set up and on it, the wedding was beamed—this to give the couple’s legion of supporters the chance to watch what to them could only have been a moving and magical dream-come-true. The presidents of the Marian’s and Dingdong’s fans clubs were invited to the wedding and each had a designated seat in the church.

The music was provided by the Hail Mary the Queen Church Choir and the Ateneo Boys Choir. The ceremony was solemn but the mood was palpably high and happy. The ceremony took almost two hours.

Even with the deluge of fans who came to witness what has been touted as the wedding of 2014, there was no chaos outside the church and everyone seemed to be on their best behavior.

When Dingdong arrived at the cathedral on a Ducati motorcycle, fans erupted in shrieks of delight. The GMA

star said he couldn’t muster the necessary words to sum up his feelings.

A side event was when Kris Aquino approached top comedienne Ai Ai de las Alas, her estranged BFF with whom she hadn’t spoken for a year after Kris failed to attend the wake of Ai Ai’s mom last year. It was easily apparent Ai Ai was left speechless when Kris approached her and told her that she had a peace offering. As Kris embraced Ai Ai, the comedienne was unable to react at first and seemed to fight back her tears. Kris later revealed that she gave Ai Ai a necklace with three pendants depicting the Blessed Mother because they are both prayerful and are Marian devotees. She added that she long been wanting to make peace with her BFF and she felt that such a happy occasion as Dingdong and Marian’s wedding provided the perfect opportunity to do so.

At the wedding reception held at The Arena in the Mall of Asia Complex in Pasay City, a short film put together by Joyce Bernal, in which Dingdong and Marian talked about their love story, was shown.

Another video was played and, in it, people close to Marian and Dingdong expressed their love and support for the newlyweds. ■

life

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the spirit that goes beyond the season D2

Entertaining BusinessMirror

Saturday, January 3, 2015

www.businessmirror.com.ph

In a special interview with the New York-based think tank Global Source Partners, BSP Governor Amando M. Tetangco Jr. said they can handle the downside risks seen hounding the economy this year by appropriately maintaining or cutting interest rates to ensure the country’s continued growth.

The local economy grew by 5.3 percent in the third quarter last year, which disappointed markets given that its year-ago growth averaged 7 percent.

“We have sufficient maneuvering room. The early preemptive adjustments we made on the SDA [special deposit account] and RRP [reverse repurchase or borrowing rate] of 50 basis points each, combined with recent lower inflation

Jack Daniel’s Philippine Brand Manager Gabriel Fajardo (from left), Brown Forman corp. Philippine Market Manager anthony Ramirez, andrea Jacob, Vic Narciso, Sandro Hermosa and Franko Lumanlan

By Maan D’Asis Pamaran

ack Daniel’s Whiskey is made in the BrownForman distillery in Lynchburg, Tennessee. The whiskey brand has been around for more than a century and the process has remained the same throughout the years. It is made from at least 51-percent corn, filtered through maple charcoal and then aged in new, charred oak barrels manufactured by the company itself.

Three hundred of these iconic Jack Daniel’s oak barrels made the long trip to the Philippines, where they were repurposed as christmas trees.

Two tall barrel trees were set up in the spirit of the holiday celebrations at Eastwood and The Fort, each bearing a message that rings loud, clear and true: It’s not what’s under the tree that matters. It’s who’s around it.

The trees were lighted in a ceremony that included live bands and fireworks—and Jack Daniel’s drinks, of course.

“We’ve had a good year in the Philippines,” said anthony Ramirez, Philippine market manager for Brown Forman corp. “We’ve been going double figures for the last five years. This is an indication of how good the team is and that the brand is catching up with the growing economy of the country.”

Gabriel Fajardo, Jack Daniel’s Philippine brand manager, said Filipinos have also become more brand-conscious. “consumers have more money to spend and they are looking for more premium brands. Beer and brandy drinkers are now looking toward imported spirits.” Their market, the executive said, are those who appreciate the sweeter american whiskey compared to the Scotch which is a little more on the sour side.

Their market is younger too. anthony added, “They are those in their 20s up to 40 or 45. The loyalty of the consumer is based on the personality of the brand. a Jack Daniel’s drinker is somebody who is not rebellious at all, but a free-thinker who is independent and selfconfident. They would be the ones who say, ‘I’m doing what I’m doing because I like it.’”

Women are so into Jack too, as the executives added that their female market share has grown considerably. according to Gabriel, from 70-percent male four years ago, it has become 50-50, and ladies usually consume it mixed with their cola of choice.

“One of the good traits of the brand is that it is not gender-specific. While it has been identified with iconic male celebrities such as the band Led Zeppelin, it identifies more with americana, which is a very strong influence in our culture.”

The concept behind the barrel christmas trees, which were the first ones to be put up in the Southeast

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Today’s Horoscope

By Eugenia Last

CELEBRITIES BORN ON ThIS DAy: Eli Manning, 34; Danica McKellar, 40; Mel Gibson, 59; Victoria Principal, 65. hAPPy BIRThDAy: Take a different approach

to the way you do things this year and you will discover skills and talents you never knew you had. Use your innovative ideas to change the way you do things both professionally and financially, and you will reach your goals.

Relying on others will be your downfall. Be a leader, not a follower. Your numbers are 1, 16, 23, 27, 35, 38, 48.

asian region, mesh well with Filipino culture, too. anthony explained, “It is about togetherness and celebrations. christmas is traditionally the time for reunions with family and friends, and Jack Daniel’s is a very good celebratory drink for occasions like these.”

TIP BOX HOW to avoid hangovers? We asked Gabriel and anthony for their pointers on how to wake up merry and bright the morning after a party. n Pace yourself. celebrating doesn’t mean getting wasted. n Hydrate. Take a water break in between your alcoholic drinks. n Fill up. Make sure you have had something adequate to eat before the drinking session starts. alcohol is not part of a meal-replacement plan. n As much as possible, stick to one. Mixing different types of drinks can give a higher possibility of a hangover. n Note: If you do get a hangover, just stay hydrated and wait it out. n

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ARIES (March 21-April 19): Focus on your health, your appearance and your talents. Invest time in perfecting and preparing to take a leap ahead. Romance will bring you happiness and lead to a stable, long-lasting connection. Actions will speak louder than words. HHHH

CANCER (June 21-July 22): Don’t give in. Stand up for your rights and make it clear how you wish to move forward. You may not come to an agreement, but you will be able to take charge of your life and follow through without feeling guilty. HHH

b

TAURUS (April 20-May 20): Honesty will play a big role in the way things unfold. Speak up and set the record straight if you disagree with someone. Protect your health by eating well and getting the exercise required to build a strong body and progressive attitude. HHH

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GEMINI (May 21-June 20): Make positive personal changes to your surroundings, your outlook and the way you present who you are and what you can do. A serious attitude will help you gain respect and get back on track. Budget wisely and control unwanted debt. HHH

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LIBRA (Sept. 23-Oct. 22): Put greater emphasis on improvement. Fix up your digs or update your image. Don’t let the changes someone else makes influence what you do. Follow your heart and do what’s best for you. Say little and do a lot. HH

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LEO (July 23-Aug. 22): Check into new hobbies or interests you’d like to pursue this year. Travel plans can be put into motion, along with updating your résumé and investing in your skills, knowledge and future. Love is highlighted, and relationships should be nurtured. HHHH

Figure out your strategy, but don’t share your thoughts with others.

Research will give you the confidence and the know-how to move forward without a hitch.

Avoid setbacks by being well-informed and ready to conquer. HHHHH

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VIRGO (Aug. 23-Sept. 22): Use your skills and connections to get your plans up and running.

Discussing your strategy will be met with positive suggestions that can help you eliminate setbacks. Sticking to a budget is a must. Expect the unanticipated. HHHH

SCORPIO (Oct. 23-Nov. 21):

SAGITTARIUS (Nov. 22-Dec. 21):

Travel, connect with old friends and make decisions regarding how you intend to put your talents to good use.

Consider offering a service that is in dire need in your community. Start small and build a solid base. HHH

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CAPRICORN (Dec. 22-Jan. 19): You can take control of your own life, but don’t try to direct others. Focus on how you can make personal improvements that will encourage you to advance. Strengthen your skills and find new ways to utilize what you do best. HHH

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PISCES (Feb. 19-March 20): Being a team player will work to your advantage. Show an interest in what everyone around you is doing, and you will learn what you need to know in order to move into a position of leadership. HH

‘now ear this’ By MAR JERSEy The Universal Crossword/Edited by Timothy E. Parker

49 Second Amendment words 50 James Bond’s depressing drink?

53 ___ Van Dyke 54 Like many teenagers’ rooms 55 Haitian’s head 58 Dueling sword 59 One of classic TV’s Huxtables 60 “Terrible” czar 61 Loch ___ monster 62 First vertebra 63 Transmit, as a text DOWN 1 Prevent from speaking 2 Massachusetts cape 3 Celebrities’ favorite seafood?

4 He broke Ty Cobb’s record 5 Thinly distributed 6 Dogmata 7 They turn litmus paper red 8 Charge alternative 9 Reflex-testing site 10 Like a Stephen King reader, often 11 Comic actor’s asset

12 13 21 22 23 24 27 28 30 32 33 34 35 36 37 40 41 42 43 44 45 46 47

Immediately He wasn’t the dummy of the act “You’ve got mail” co.

Thick-skinned jungle beast Play-___ Rocker Clapton They’re ahead of jrs.

Organized criminals Make angry Male bovine Stuff one’s face Franken and Capone Mythical island What hunting dogs do Have an opinion Bride’s title Like a sneak attack Needing more time on the vine Sister’s daughters Vampires may take them to heart Old Iran Greek woodland deities Former White House spokesman Fleischer

49 Metabolism type 51 Urban organization of song 52 Leave a solid state?

56 Convert into leather 57 Author’s last word?

Solution to yesterday’s puzzle:

entertaining

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rose delivers at crunch time Sports ROSE DELIVERS BusinessMirror

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| Saturday, January 3, 2015

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

AT CRUNCH TIME The late surge by Derrick Rose lifts the Bulls to their 11th win in 13 games. The 2011 National Basketball Association Most Valuable Player misses his first eight shots, including all seven in a scoreless first half, but the point guard dominates down the stretch, coming up with one big basket after another.

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HICAGO—Derrick Rose scored 13 of his 17 points in the fourth quarter, and the Chicago Bulls beat the Denver Nuggets, 106-101, on Thursday night to maintain its stranglehold on the Central division.

Jimmy Butler scored 26 for Chicago, and Pau Gasol added 17 points, nine rebounds and a career-high nine blocks as the Bulls stretched its divisional lead over Cleveland to 4-1/2 games.

The late surge by Rose lifted the Bulls to their 11th win in 13 games. The 2011 National Basketball Association Most Valuable Player missed his first eight shots, including all seven in a scoreless first half, but the point guard dominated down the stretch, coming up with one big basket after another.

Wilson Chandler led Denver with 22 points. Ty Lawson scored 20, while Arron Afflalo had 19 points. Kenneth Faried added 18 points and 19 rebounds, but the Nuggets fell to 4-12 on the road.

Chicago, which trailed by 13 early in the third, was clinging to a 100-97 lead, after Denver’s Jusuf Nurkic scored on a layup with 46 seconds left.

Rose then nailed a jumper, and the Bulls hung on after Faried dunked with 22 seconds remaining to get the Nuggets within three again. Chicago’s Aaron Brooks hit two free throws to make it a five-point game before Nurkic hit two of his own, after he got fouled trying to dunk on Taj Gibson with 11 seconds left.

But Rose then hit two more foul shots to make it 106-101.

The Bulls were trailing, 74-70, late in the third quarter when Gasol blocked Nurkic. Butler then got fouled and hit two free throws, sparking a nine-point run.

Kirk Hinrich nailed a three from the corner with 16 seconds left, giving the Bulls a three-point lead, and Gasol capped the run with a running hook to make it 79-74.

ROSE MOST IMPORTANT STATS: PLAYING TIME

BEFORE the Denver game, Derrick Rose’s percentage rose from 46.7 percent to 86.7 percent.

Yes, there’s his 20-percent shooting performance over the last two games (7-for-35) and the troubling trend of 5.4 three-point attempts per game—sixth-tenths higher than his previous career high—despite 26.3-percent accuracy from that distance.

But the most important statistic regarding Rose is that he played in 13-of-15 December games for that 86.7 percent. This is after he played in only seven-of-15 November games (46.7 percent), as he battled nagging ankle and hamstring injuries.

That Rose increased his playing time from 25.9 minutes to 30 minutes per game is also important for a franchise that lacked its most dynamic star for all but 10 games the last two seasons.

“I’m feeling great,” Rose said. “My health is the last thing I’m worried about.”

In fact, December marked Rose’s busiest regular-season month—not counting shortened-schedule months, such as October, or a four-game month during the lockout season— since April 2011. Rose averaged 18.3 points on a 41.4-percent shooting (23.3 percent from three-point range), 5.1 assists and 3.5 turnovers for the month.

“I can’t control people’s thoughts,” Rose said, when asked if his dominant days from

2010 to 2011 are gone. “People are going to think what they want to think. All I can do is try to win the game.

“We have a great team. Certain nights, it’s going to be like that, where I have 30 [points] or whatever. I can’t play the way people want me to play. They want me to score 40 points every night. If I can score 15 and still win the game, it’s a good win for me.”

Nets Coach Lionel Hollins theorized before Tuesday’s game that Rose is working more on his shooting to avoid playing the relentless—reckless?—attacking style that defined his game before successive season-ending knee injuries and surgeries.

Whether Hollins—who referenced former teammate Phil Ford and Kevin Johnson, a player he coached, as doing the same—was prophetic or pandering is open to debate. After all, there’s a reason defenses continue to go under screens on Rose—a jump-shooting Rose is far less dangerous than a penetrating one.

But Rose has talked about trying to master even how he falls, as he continues a comeback that remains just 22 games in. The ankle and hamstring issues cost him eight games, and he missed two December games because of illness.

“I’m a smarter player,” Rose said. “As far as taking care of my body, picking and choosing during the game and not overusing myself.

“I haven’t really thought about falling or getting injured again. When I start making the shots that I’m taking, it’s going to be a real simple game where it’s going to be pick your poison.

If you’re going to go under [the screen], I’ll shoot. I’m going to force you to go over the screens all the time and put the big [defender] in a tougher situation to guard either me or the roll guy [on a pick-and-roll].”

Rose knows he has to shoot better to keep defenses honest. Talk is cheap, but his confidence remains high.

“I’m going to have 40-point games, so I’m not worried about [defenders going under screens],” he said. “They’re even going under at the free-throw line, so I have to take those shots no matter how many times I miss. I’m just waiting for that game where I have a good one.”

Rose had averaged 23.3 points in the four games before this two-game shooting slump. Maybe the wait won’t be long. Either way, the best news for the Bulls is he’s on the court playing.

DERRICK ROSE goes up for a shot against Denver’s Kenneth Faried. AP

STRUGGLING KINGS SLIP PAST TIMBERWOLVES

IN Minneapolis Rudy Gay had 21 points, six rebounds and five assists, and the struggling Sacramento Kings handed the Minnesota Timberwolves their 10th straight loss with a 110-107 victory.

DeMarcus Cousins had 19 points and seven rebounds, after being ejected one night earlier, and the Kings shot 54 percent, while each of their starters scored in double figures. Darren Collison scored 21 points and Derrick Williams had 17 points, including a big three-pointer down the stretch.

Andrew Wiggins had 27 points and nine rebounds, but the Timberwolves couldn’t take advantage when Cousins and Gay both fouled out in the fourth quarter. Troy Daniels’s three-point attempt at the buzzer was partially blocked.

Gorgui Dieng added 15 points and 10 rebounds for Minnesota.

AP and Chicago Tribune

OUT FOR TWO WEEKS C

LEVELAND—Cleveland Cavaliers superstar LeBron James is expected to miss at least the next two weeks with injuries to his left knee and back.

The timing of the injuries is another blow to the Cavaliers, who have been jarred by a rash of medical issues and failed to live up to the enormous expectations triggered by James re-signing as a free agent with Cleveland last summer.

The team said on Thursday that James has knee and back strains.

He’ll be treated with “anti-inflammatories, rehabilitation, training room treatments and rest,” and the Cavs projected he will miss two weeks. If he’s out for just that span, James will be back for a January 15 game in Los Angeles against the Lakers. The Cavaliers begin a five-game West Coast trip on January 9.

James, who turned 30 last December 30, missed his second straight game on Wednesday. Before his team lost, 96-80, to Milwaukee, the four-time league Most Valuable Player said all tests on his knee had

come back negative. He acknowledged his knee has been hurting all year, which helped explain why James hasn’t shown the same explosiveness driving to the basket, and his willingness to defer to teammates.

He also acknowledged that 11 National Basketball Association (NBA) seasons have taken a toll on his body. “I’ve got 41,000 minutes on me, including the playoffs,” he joked. “You drive that car in the winter time.”

James has never missed more than five straight games in his professional career. If the two-week timetable holds up, his absence could reach 10 games or more. That could be a major problem for the Cavaliers, who’ve had issues with chemistry and recently lost starting Brazilian center Anderson Varejao for the season with a torn Achilles. On top of that, forward Kevin Love missed Wednesday’s game with back spasms and reserve Shawn Marion has sat out the past two games with a sprained ankle.

If that wasn’t enough, first-year coach David Blatt has come under intense scrutiny for the team’s sluggish start. At 18-14, the Cavs have lost three straight and four-of-five heading into Friday’s game in Charlotte.

James briefly left Cleveland’s game at Miami on Christmas Day—his first in the regular season against his former team—after jumping into the stands to chase an errant pass, and was grabbing at his left knee in obvious discomfort not long afterward. That was not the cause of the injury, just a recurrence of an ongoing issue, James said before the Milwaukee game.

“It was before that, but it reaggravated it,” James said. “It’s been hurting pretty much all year. I’ve been playing with it and it goes away, it comes back.”

Including playoffs, James has logged 41,082 NBA minutes—ninthmost among all active players.

James lost weight before this season, but insisted it wasn’t to compensate for a loss of speed, to help him jump higher or try to prolong his career. However, he seemed to understand that he needed to make changes to remain the game’s best all-around player. AP

sports » LEBRON JAMES is nursing knee and back injuries. AP

Number of fatal accidents

40

20

7 0

Number killed onboard planes

845

774

471

16

267 1

6

4 109

Taxi, load/ Takeoff unload, parked, tow

Initial climb

6

7

Climb

Cruise Descent

2

108

1,000

709

564 18

500

6 0

Initial Final Landing approach approach

Source: Boeing, Statistical Summary of Commercial Jet Airplane Accidents Graphic: Greg Good, TNS

See “BSP,” A8

Operators OK integrated toll-collection scheme

An Indonesian Muslim man prays during a special prayer for the victims of AirAsia Flight QZ8501 at Al Akbar Mosque in Surabaya, East Java, Indonesia, on Friday. AP/Dita Alangkara

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The flight with 162 people on board lost contact with air traffic HEIGHT: 11.76 m control after the pilots asked to change course to avoid bad weather during a flight from Surabaya to WING SPAN: 35.80 m LENGTH: 37.57 m Singapore.

RANGE: 6,100 km PAYLOAD: 16.6 tons SEATING: 150 (2-class) to 180

By Lorenz S. Marasigan

k

AQUARIUS (Jan. 20-Feb. 18): Take the initiative to learn all you can and to experience whatever will help you improve your skills and outmaneuver the competition. Utilize your time wisely so you are able to accomplish as much as possible. HHHHH

BIRThDAy BABy: You are reserved, energetic and competitive. You are realistic and frank.

ACROSS 1 Struggle for air 5 It goes through the roof 10 Pierce with a knife 14 Chip in a pot?

15 Holiday pie ingredient 16 Call to mind 17 Small biter 18 Absinthe flavoring 19 God of love 20 Brought up pickled fish?

23 Thaws a freezer 25 For this reason 26 Batters in Baltimore 27 Amount in grandma’s recipe 29 Acknowledge the villain’s entrance 30 It’s guaranteed to remove wrinkles 31 Guevara grills Kasparov’s equipment?

38 Chew the fat 39 Swarm 41 Key West shows?

45 Collection of sacred songs 48 Bring together

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prints, have caused real interest rates to be less negative in recent months,” Tetangco said.

Sufficient policy-maneuvering space is important, but unlike countries under the European Union, whose ability to respond to monetary-policy challenges is limited by interest rates already near zero percent, Manila is not hampered by such restraint.

The country’s within-target inflation should allow the BSP sufficient policy space to maneuver to ensure continued growth, no matter that US interest rates were seen elevated beginning midyear before US Federal Reserve Chairman Janet Yellen is forced to raise interest rates again.

“This, together with interest-rate

The spirit that goes beyond the season

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Fatal accidents and onboard fatalities of worldwide commercial fleet from 2004-2013.

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And then they were one...

RGUABLY one of the most bankable actresses working the prime-time TV circuit, Marian Rivera looked every inch beautiful as she walked down the aisle last December 30 for her wedding to Dingdong Dantes, a fellow GMA star. The highly anticipated nuptials unfolded just before 2014 drew to a close, at the Cathedral of the Immaculate Conception in Cubao, Quezon City. It has been said that a woman is at her prettiest on her wedding day, and Marian was, indeed, beauty personified.

Marian began her walk down the aisle solo but was then met by her grandmother Francisca who, in turn, brought her to her parents—her father, Francisco Javier Gracia Alonso, who flew in from Spain expressly for the wedding, and her mother, Amalia Rivera. Needless to say, Marian’s grandmother was nothing less than emotional.

The bride wore a stunning gown created by Michael Cinco which had a 3-meter-long trail, while Dingdong wore a suit by Randy Ortiz.

Fatal commercial plane accidents Onboard fatalities

he Bangko Sentral ng Pilipinas (BSP) has expressed confidence of having sufficient flexibility to manage so-called downside risks to the country’s local output, measured as the gross domestic product, and vowed to provide support for the continued expansion of the $270billion Southeast Asian economy down the line.

Fatal accidents

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By Bianca Cuaresma

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he operators of the three expressways to Northern Luzon are supportive of the proposal to integrate the toll-collection systems among their thoroughfares.

In separate statements, Manila North Tollways Corp. (MNTC), Tollways Management Corp. and Private Infra Development Corp.

(PIDC) said the proposed integration would further improve the services at the expressways.

“It will solve the traffic at the toll plazas that we saw during the holidays,” MNTC President Rodrigo E. Franco said in a phone interview late Friday.

The management of the TarlacPangasinan-La Union Expressway (TPLEx), likewise, “views the proposed integration of toll-fee collection systems in expressways north of Metro Manila as a positive step toward improving overall traffic flow and enhancing convenience for motorists.”

“While this involves extensive

PESO exchange rates n US 44.6170

technical study involving all the companies managing the toll roads, TPLEx management expressed its strong support and willingness to take an active part,” PIDC said.

In 2014 the Subic-Clark-Tarlac Expressway (SCTEx) entered into an agreement that transferred operations of the SCTEx Tarlac northbound toll plaza to the TPLEx entry plaza. Under this arrangement, the SCTEx has access to 10 lanes at the TPLEx entry point to collect toll, compared to only four or five lanes at its previous toll plaza.

Sen. Franklin M. Drilon, who had his taste of the congestion during the holidays, called for a Senate probe on the matter, saying that the toll-collection system at the expressways should be integrated to lessen the queue on toll payments.

The solon said he went to Baguio City last month during the Christmas rush, and claimed the drive from Manila to Baguio lasted 12 hours.

The trip normally takes five hours or less by private car.

The search continues for missing jet The missing AirAsia jet could be at the bottom of the sea after it was presumed to have crashed off the Indonesian coast, an official said on Monday.

AIRBUS A320 SPECIFICATIONS

MALAYSIA Singapore Changi International Airport

Flight path of QZ8501 on Dec. 25*

DETAIL AREA Pontianak

INDONESIA Palembang SUMATRA

South China Sea

KALIMANTAN

Belitung Island

Last position of flight QZ8501 on Dec. 28*

Indian Ocean

Search area

Jakarta

Java Sea JAVA

100 km 100 miles Sources: W. Foo, Reuters, FlightRadar24, Airbus, BBC

Surabaya

* According to FlightRadar24 TNS

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massive hunt for the 162 victims of AirAsia Flight QZ8501 resumed in the Java Sea on Wednesday, with six bodies, including a flight attendant identified by her trademark red uniform, recovered. But wind, strong currents and high surf hampered recovery efforts as distraught family members anxiously waited to identify their loved ones.

More ships arrived on Friday with sensitive equipment to hunt for the fuselage of the flight and the more than 145 people still missing since it crashed into the sea five days ago. World»B1

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

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News BusinessMirror

Saturday, January 3, 2015

news@businessmirror.com.ph

Dollar rises to five-year high; US, Europe index futures gain

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he dollar rose to its highest level in more than five years, while US and European stockindex futures advanced before the release of American factory data.

Oil gained following an annual loss and silver rallied.

The Bloomberg Dollar Spot Index strengthened 0.4 percent at 7:10 a.m. in London. The yen retreated 0.6 percent and the euro touched its lowest level since June 2010. Futures on the Standard & Poor’s (S&P) 500 Index and the Euro Stoxx 50 Index rose 0.6 percent. Bonds of Kaisa Group Holdings Ltd. slid to record lows after the Chinese developer defaulted on a loan. Crude in New York advanced 1 percent and silver

Handelsblatt borrowing costs will stay low for some time. A US factory index maintained expansion in December, economists project.

“While the Fed is not going to rush into any action, rates will go up,” said Thomas Averill, a managing director in Sydney at Rochford Capital, a currency and rates riskmanagement company. “The market is very long the dollar against the yen and the euro, and across the board.”

The Bloomberg dollar gauge is poised for its highest close since March 2009. The yen retreated to 120.49 against the US currency. The euro dropped 0.5 percent to $1.2041, extending its worst annual loss since 2005. Strategists, who were too timid with their call for a decline in 2014 to $1.28, now see a drop to $1.18 by the end of this year.

The ECB is keeping rates low to stimulate economy, and “that will continue for another while,” Ger-

gained 1.8 percent.

The dollar is extending gains after its best year since at least 2005, while the S&P 500 climbed 11 percent in 2014 and Treasuries returned the most in three years.

Investors piled into US assets as the Federal Reserve (the Fed) pledged patience in raising interest rates and economic growth accelerated. European Central Bank (ECB) President Mario Draghi told

Subsidies. . . Continued from A8

man newspaper Handelsblatt quoted Draghi as saying.

The Markit Economics index of US manufacturing probably rose to 54 from a preliminary 53.7 reading, according to economists polled by Bloomberg.

The Australian dollar declined 0.6 percent to 81.34 US cents. A Chinese factory gauge slipped to the lowest level in 18 months, data released on Thursday showed, adding pressure on policy-makers to do more to support growth in the world’s second-biggest economy.

Indonesia’s rupiah depreciated 1 percent, poised for its biggest loss since December 15, and Malaysia’s ringgit weakened 0.6 percent. The Swiss franc dropped 0.5 percent.

Equity markets in Japan, China, Taiwan, New Zealand, Thailand and the Philippines were closed on Friday.

The dollar-denominated MSCI Asia Pacific, excluding Japan Index, added 0.3 percent. The Hang Seng

Index gained 0.8 percent, while the Hang Seng China Enterprises Index of mainland companies traded in Hong Kong rallied 2.2 percent, as financial shares jumped. Nikkei 225 Stock Average futures traded on the Chicago Mercantile Exchange rose 1.1 percent to 17,595.

China Vanke Co. surged 11 percent and People’s Insurance Co. (Group) of China Ltd. advanced 4.4 percent amid optimism the government will ease monetary policy to bolster growth in the world’s second-largest economy.

Galaxy Entertainment Group Ltd. led declines by casino companies, after Macau gambling revenue fell 2.6 percent last year.

K a i s a’s $ 8 0 0 m i l l i o n o f 8.875-percent notes due 2018 and sold to investors at par in March 2013 tumbled to 43.087 cents on the dollar, sending yields to 43.3 percent. Automatic repayment of a HK$400-million ($51.6-million)

P311.6 billion; and Central Visayas, with P225.1 billion, in 2012.

The PSA said data collected from the census will provide information on the level, structure, performance and trends of economic activities of the formal sector of the economy for the 2012 reference period.

The results will also serve as benchmark information in the measurement and comparison of national and regional economic growth. Total response rate for the wholesale and retail trade; repair of motor vehicles and motorcycles sector was 94.0 percent (14,876 out of 15,821 establishments).

This included receipts of “good” questionnaires, partially accomplished questionnaires, reports of closed, moved out, or out-of-scope establishments.

Of the total responses, 119 establishments responded online, and eight establishments submitted through e-mail.

3-DAY EXTENDED FORECAST JANUARY 3, 2015 | SATURDAY

TODAY’S WEATHER

NORTHEAST MONSOON AFFECTING LUZON. (AS OF JANUARY 2, 5:00 PM)

Northeast Monsoon locally known as “Amihan”.

It affects the eastern portions of the country.

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

JAN 4 SUNDAY

JAN 5 MONDAY

METRO MANILA

21 – 30°C

22 – 30°C

TUGUEGARAO

19 – 27°C

20 – 28°C

LAOAG

BAGUIO

LAOAG CITY 18 – 29°C

TUGUEGARAO CITY 18 – 26°C

SBMA/ CLARK

BAGUIO CITY 11 – 22°C SBMA/CLARK 22 – 29°C TAGAYTAY CITY 20 – 27°C

METRO MANILA 21 – 29°C

M

acau’s casinos recorded their worst year, ending a decade of expansion that turned the former Portuguese enclave into the world’s biggest gambling hub. More tough times are ahead.

Casino revenue in the city fell 2.6 percent to 351.5 billion patacas ($44 billion) in 2014, after a record 30.4-percent monthly drop in December, according to figures from Macau’s Gaming Inspection and Coordination Bureau on Friday.

Analysts projected a 2-percent annual decline, based on the median of nine estimates in a Bloomberg News survey.

Chinese President Xi Jinping’s bid to

JAN 6 TUESDAY

catch“tigers and flies”in an anticorruption drive and weaker economic growth means Macau may face shrinking revenue until at least mid-2015, when new resorts open.

The crackdown has deterred high rollers who account for two-thirds of Macau’s casino receipts, and wiped out about $73 billion in market value of companies including Wynn Macau Ltd. and SJM Holdings Ltd. last year.

“The VIP heyday is over,” said Philip Tulk, an analyst at Standard Chartered Plc. in Hong Kong. “The anticorruption crackdown doesn’t look to be a shortterm phenomenon,” with funds flows between the mainland and Macau being

3-DAY EXTENDED FORECAST

much more closely scrutinized, he said.

Xi has urged the city to diversify its economy and transform into a global tourism and leisure center. Macau’s casino takings are seven times that of the Las Vegas Strip and contributed more than 80 percent of the government’s annual revenue last year.

Sands China Ltd. and Galaxy Entertainment Group Ltd. were the second- and third-worstperformersonHongKong’sHang Seng Index last year. Wynn Macau fell 3.6 percent as of 2:20 p.m. in Hong Kong trading, while Galaxy dropped 2.6 percent and Sands China lost 1.8 percent. The Hang Seng index gained 0.7 percent. Bloomberg News

JAN 4 SUNDAY

JAN 5 MONDAY

JAN 6 TUESDAY

22 – 30°C

METRO CEBU

24 – 31°C

24 – 31°C

24 – 32°C

20 – 28°C

TACLOBAN

23 – 30°C

24 – 30°C

23 – 29°C

20 – 30°C

CAGAYAN DE ORO

24 – 31°C

25 – 31°C

25 – 32°C

METRO DAVAO

24 – 31°C

25 – 31°C

24 – 34°C

25 – 34°C

TAIL-END OF A COLD FRONT AFFECTING EASTERN VISAYAS.

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

TAGAYTAY

19 – 29°C

12 – 23°C

23 – 29°C

20 – 28°C

20 – 30°C

13 – 23°C

23 – 30°C

20 – 28°C

12 – 23°C

23 – 30°C

LEGAZPI ILOILO/ BACOLOD 24 – 30°C

TACLOBAN CITY 23 – 31°C

METRO CEBU 24 – 30°C

ZAMBOANGA CITY 24 – 33°C

PUERTO PRINCESA

ILOILO/ BACOLOD CAGAYAN DE ORO CITY 25 – 32°C METRO DAVAO 25 – 30°C

24 – 29°C

24 – 30°C

ZAMBOANGA

25 – 31°C

SUNSET

MOONSET

MOONRISE

6:22 AM

5:39 PM

4:22 AM

4:08 PM

24 – 31°C

HALF MOON FULL MOON

24 – 31°C

25 – 31°C

25 – 32°C

4 : 27 AM

JAN 05 -0.11 METER 2:31 AM 12:53 PM Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms

Light rains

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

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

www.panahon.tv

SABAH CELEBES SEA

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

Cloudy skies with rain showers and/or thunderstorms.

25 – 31°C

25 – 34°C

SUNRISE

DEC 29

25 – 30°C

25 – 32°C

21 – 28°C

LEGAZPI CITY 24 – 28°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

Bloomberg News

Macau suffers worst year for casinos amid China graft probes

largest proportion in, with P621.1 billion. This was followed by the wholesale of household goods and the retail sale of other goods in specialized stores, with P444.1 billion and P440.9 billion, respectively.

“Retail trade not in stores, stalls or markets incurred the lowest expense of P3.8 billion,” the PSA said.

By region, NCR establishments earned nearly half, or 49.7 percent, of the total income of the sector, amounting to P1.9 trillion.

Some of the high-income regions include the Calabarzon, with P436.1 billion; Central Luzon, with P321.3 billion; and Central Visayas, with P238 billion, in 2012.

However, the NCR incurred the highest expense, amounting to P1.8 trillion, or almost half, at 49.8 percent of the total expenses for the sector. Other regions proving the biggest spenders include Calabarzon, with P411.2 billion; Central Luzon, with

PUERTO PRINCESA CITY 24 – 29°C

loan from HSBC Holdings Plc. was triggered when its chairman resigned on December 31, the company said. Trading in Kaisa’s shares are suspended.

Malaysia’s benchmark stock gauge slid 0.5 percent, extending last year’s 5.7-percent decline. Korea’s Kospi advanced 0.6 percent.

West Texas Intermediate crude rose 55 cents to $53.82 a barrel. Silver futures for March delivery climbed to $15.87 an ounce, after tumbling 4.2 percent on the last day of the year.

Copper headed for its lowest close since June 2010. Tin extended last year’s 13-percent slump.

China’s Purchasing Managers’ Index fell to 50.1 in December from 50.3 in November. That compared with a median estimate of 50 in a Bloomberg News survey of analysts. A separate manufacturing index by HSBC Holdings Plc. and Markit Economics also declined.

@PanahonTV

8:45 PM

1.06 METER

Partly cloudy to at times cloudy with rainshowers

news@businessmirror.com.ph

News

BusinessMirror

Editor: Dionisio L. Pelayo • Saturday, January 3, 2015 A3

PSALM to sell supply contracts for UL Bulk and United Leyte

T

By Lenie Lectura

HE Power Sector Assets and Liabilities Management (PSALM) Corp. has lined up in the first six months of the year the sale of supply contracts for the output of the Unified Leyte Geothermal Power Plants (ULGPP) and the 210-megawatt (MW) Mindanao coal-fired plant.

2015 is the year of the goat

A sales clerk of Namaste Arts and Stones in a mall in Baguio City shows a lucky stone in 2015, the year of the wooden sheep (or goat). The pig and the rabbit are allies of the goat. This year’s lucky stones are agate, clear quartz, peridot, tauridine and jet. A bracelet like the one the sales lady is holding costs between P1,000 and P1,600, depending on the size of the bracelet and the stones used. MAU VICTA

“UL Bulk and Mindanao Coal are slated for next year’s privatization plan,” PSALM President and CEO Emmanuel Ledesma Jr. said in a text message.

The state firm will auction in the second quarter of this year the selection and appointment of an independent power producer administrator (Ippa) for the output of the Mindanao coal-fired power plant in Misamis Oriental.

The power facility is made up of two units with a generating capacity

of 105 MW each. It is currently being operated by Steag State Power Inc. of Germany under a build-operatetransfer agreement with the government. It accounts for about 20 percent of Mindanao’s total power supply.

Abotiz Power Corp. had already expressed interest to bid for the privatization of the power-supply contract of the power facility.

“Part of the schedule of PSALM is also to do the Steag Ippa. We will look into that also,” compa-

ny President and CEO Erramon Aboitiz said.

Meanwhile, PSALM said it will auction in the first quarter of the year ULGPP’s bulk output.

ULGPP consists of the 125-MW Upper Mahiao, the 232.5-MW Malitbog, the 180-MW Mahanagdong and the 51-MW Optimization plants.

PSALM is the agency mandated

by Republic Act 9136, or the Electric Power Industry Reform Act of 2001, to handle the sale of the remaining state power assets and financial obligations of the National Power Corp.

In November last year data from the Department of Energy showed that proceeds from the sale of stateowned power assets reached $19.4 billion.

Actual collection stood at $8.5 billion as of April 2014. This means that $10.9 billion has yet to be collected from the privatization of these assets.

Of the $8.5-billion collection, $951 million was placed in temporary investments while awaiting utilization.

The remaining $7.368 billion was used for the liquidation of financial obligations.

Seniang devastates Visayas, Mindanao; DA plants cacao, coffee in IP Women’s Organic Village destroys P5-million agricultural crops

By Rene Acosta

A

BIG area of the Visayas and at least two provinces in Mindanao are still reeling from the effects of storm Seniang, which already exited the country on Friday, as power and traffic still need to be restored in the affected areas.

In some of the villages inundated by floods, residents were still struggling to cope with the combination of flood, destroyed houses, landslides and an interrupted water supply.

The National Disaster Risk Reduction and Management Council (NDRRMC) said power interruptions are still being experienced in Negros Occidental, Bohol, Samar, Eastern Samar and Northern Samar in the Visayas, and Agusan del Sur and Surigao del Norte in Mindanao.

However, power has already been restored in the provinces of Negros Oriental and Leyte, hours before the storm had degraded into a low-pressure area before it completely veered out of the country at 1 a.m. on Friday.

Aside from power interruptions, the NDRRMC said more than 70 barangays and municipalities in Central,

Western and Eastern Visayas, Northern Mindanao and Caraga were still flooded, sparing not even rice fields and other types of agricultural lands.

These barangays and municipalities are in the provinces of Capiz, Negros Occidental, Bohol, Negros Oriental, Southern Leyte, Samar, Bukidnon, Misamis Oriental, Agusan del Sur, Agusan del Norte and Lanao del Sur. Landslides were also recorded in Atimonan, Quezon; Bulusan, Sorsogon; Leyte, Southern Leyte, Samar, Compostela Valley and Surigao del Sur. As a result, at least 24 roads and 23 bridges in the Visayas and Mindanao remained impassable, either due to floodings or landslides.

The NDRRMC said the storm affected a total of at least 105,233 families, or 486,894 persons in 931 barangays in 18 cities and 134 municipalities in Mimaropa, and Eastern, Western and Central Visayas, Northern Mindanao, Davao and Caraga, and damaged or destroyed at least 1,583 houses.

The storm also damaged almost P5 million worth of agriculture products.

Pilot of missing AirAsia plane requested Indon air controllers permit to climb to higher altitude

T

HE pilot of AirAsia Flight QZ8501 that disappeared last week after leaving Surabaya, Indonesia, on its way to Singapore asked Indonesian air controllers permission to climb to a higher altitude 38 minutes into its scheduled flight.

The plane was at 32,000 feet altitude, and the pilot requested to climb to 38,000 feet to avoid storm clouds.

If the Indonesian air controllers denied his request, what other options were left for him to take? The area at this time of the year is described as experiencing “seasonal bad weather”, according to news reports.

However, Indonesia air controllers rejected the pilot’s request because six other aircraft were above him.

Arminda Mendador, a retired chief of Area Control Center (ACC) of the Civil Aviation Authority of the Philippines, said unless the pilot had informed controllers the nature of his request, his request would have been denied.

“The pilot could have told air controllers that he is expecting bad weather along his route so that his request would have been given priority,” said Mendador, who was air controller for 26 years and chief of ACC for nine years.

“If he is already experiencing turbulence, the pilot’s voice could have indicated that he is in ‘survival mode’.”

In such a situation, the pilot could have relayed that he is experiencing turbulence and there is an urgent need for change of altitude.

Mendador said that in such a situation, the air controllers would have given him priority; clear the vicinity of air traffic; and give him clearance to ascend to higher altitude.

The last message Indonesian air controllers received from the pilot was to request to climb to a higher altitude.

After that, there was radio silence from Flight QZ8501. The other option was for the pilot “to make a 180-degree turn,” Mendador said, meaning the pilot could have made a U-turn back to the airport where he came from.

However, she said the pilot should have adviced air controllers of his intention before making such a maneuver.

She said it was also possible for the pilot to make a left or right turn, a lateral movement, or maintaining the same altitude, that would have brought the airplane away from its assigned “airway” but evading the storm clouds.

Once cleared of the danger, the pilot could have requested to be returned to his assigned airway. Recto Mercene

T

HE Department of Agriculture (DA) Gender and Development (GAD) Program in the Davao Region spearheaded the soft launching and ceremonial cacao and coffee planting of more than 1,000 seedlings to the Indigenous Peoples (IP) Women’s Organic Village in Malamboon Elementary School at Sitio Malamboon, Barangay Malabog, Davao City.

More than 300 persons from the Ata-Manobo tribe benefited from the program where 1,000 hills were prepared to be planted with seedlings of the Café Arabica variety.

Undersecretary for Special Concerns and Director for DA’s GAD Bernadette Romulo-Puyat inaugurated the Soft Launching Ceremo-

nial Planting together with Davao City Mayor Rodrigo Duterte.

Puyat told the IPs they will continue to monitor the projects in the area, as well as provide interventions for the village.

“Babalik at babalik po kami para masigurado naming naimplemento

Aquino unmoved by fresh House bid to approve Charter change by June

By Butch Fernandez

P

RESIDENT Aquino remains unswayed by fresh efforts of his allies in the House of Representatives to tinker with the 1987 Constitution and push approval by June 2015 of a Charter amendment relaxing the 60-40 percent limit of foreign ownership in certain industries.

Communications Secretary Herminio B. Coloma Jr. said he has yet to see a signal that Mr. Aquino had relented on his firm belief there is no need to amend this restriction as foreign investors have been coming in notwithstanding the existing limitation.

“No info on any change in the President’s position,” Coloma told the BusinessMirror on Friday.

With the Palace steadfast in rejecting any moves to tinker with the Charter, the House Cha-cha effort is seen to be an exercise in futility as the Senate is likely to side with President Aquino on the issue. The Senate has shown sensitivity to public apprehensions that opening the Constitution, ratified during the term of the incumbent’s mother, then-President Corazon Aquino, could open the floodgates to revisions of other existing provisions, including the lifting of term limits.

Also called the “Cory Constitution,” the 1987 Charter’s Article XII prohibits foreigners from owning more than 40 percent of businesses and real property, and are restricted from exploiting natural resources, as well as owning local media firms.

President Aquino has always contended that since investments are coming in even without constitutional changes, there is no need to go through the exercise. But administration lawmakers dominating the House of Representatives seemed impervious and have vowed to pass the controversial amendment before the House sine die adjournment by June 2015.

Speaker Feliciano Belmonte Jr. argues that the proposed amendment, limited only to its economic provision, could propel growth as this is likely to lure more foreign-direct investments in the country, once the ownership restriction is lifted.

His proposal, embodied in Resolution of Both Houses No. 1 and co-authored by Sen. Ralph Recto in the Senate, seeks to adopt a new catch-all phrase “unless provided by law” to be added in the provision on foreign-investment restriction which covers land ownership, public utilities, natural resources, media and advertising.

natin ’yung mga proyekto,” Puyat said.

Meanwhile, Duterte promised to allocate P10 million for coffee plantation and production in Barangay Malabog for the year 2015.

DA Davao Regional Coordinator for GAD Bong Año said the event was a jump-start for several projects from the agriculture sector including the plan for inland aquaculture and establishment of demo farm in Barangay Malabog.

Datu Generoso Baon, an IP’s mandatory representative and one of the beneficiaries, said they are thankful this government service reached their area.

He also swore to take good care of the interventions given by the

agriculture sector to them.

The IP Women’s Organic Village Project is a typical rural development initiative spearheaded by the DA Davao GAD Focal System to help raise the capacities of women in agriculture, especially in far- flung areas.

In this project, women are taking the lead by allowing them to partake in the entire process of human and community development which includes cacao production.

The project also promoted an ecologically sound and balance biodiversified and integrated farming system with preference on organic cacao production, vegetable natural farming production, livestock production and in-land fish farming.

A4 Saturday, January 3, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

News

BusinessMirror

DOTC exec hires S. Korean for Manila bus operations

T

By Lorenz S. Marasigan

HE mind behind South Korea’s successful busreform program is currently working with the Philippine government to address the traffic woes in Metro Manila.

Transportation Secretary Joseph Emilio A. Abaya said Kwang SikKim, who initiated the adjustment in the transport systems in metropolitan Seoul, is aiding the agency into reforming the bus operations in Metro Manila.

“Dr. Kim, the father of the busreform program in Seoul, is now with us and we are carefully listening to his advice as to the bus system. Soon, we’ll do a high-capacity bus system in C5 Road as to pilot-test it. We’ll see how that develops. We’ll also do an experiment on Ortigas,” Abaya said in an interview.

The Seoul Metropolitan Government introduced in 2004 an adjusted public transportation system, which provided for simpler bus routes and the categorization of bus units.

A satellite communications system was also introduced to enable passengers to check bus arrival times using mobile devices.

In the Philippines, Abaya said the government will be implementing a similar reform program in order to alleviate, if not eradicate, the chronic congestion in major thoroughfares.

“We will bid out the routes, or service contracts, as part of our bus-

reform program. This will change the bus service because, in this way, the government will pay the bus company on a bus-kilometer basis,” he said.

The transport chief explained that the government will shoulder the market risk or the cost of the bus tickets, regardless if the unit is operating at full or its least capacity.

“As long as the bus will operate as scheduled, the bus driver gets paid in a uniform rate. The basis for driving recklessly will be eliminated,” he said, referring to the need of the bus driver and his assistant to meet a certain amount before they could earn their wages.

Hence, the agency is moving toward amending the route structures of current bus services to meet the demand for traffic in densely populated areas.

T he transportation agency has identified around 16 primary routes and 59 secondary routes, where it can provide mass-transportation services.

This is just one of the measures that the transportation department is looking at deploying to arrest the

traffic congestion in major arteries around the Philippines.

The government is currently rolling out a transportation dream plan that costs about P4.76 trillion through 2030. The road map was laid out by the Japan International Cooperation Agency (Jica), which said around P539 billion must be invested in traffic infrastructure beginning 2014 up to 2016, and another P1.52 trillion must be invested from 2017 to 2022. The biggest investment requirement was seen in the period 2023 to 2030, costing at least P2.69 trillion.

The Jica said these investments will translate to a reduction in transport fares and reduced travel time, resulting to gains and savings.

If the measures laid out by the Japanese consultants were not realized, the country is set to lose some P6 billion a day in traffic costs, documents from Abaya’s office said.

Currently, the Philippines is said to be losing some P2.4 billion daily, due to the gridlock around the country’s major roads, the documents said.

news@businessmirror.com.ph

Four cops nabbed for firing guns on New Year’s Eve

By Rene Acosta

F

OUR policemen were arrested for allegedly firing their guns in celebration of the new year, despite an earlier warning by Philippine National Police (PNP) Officer in Charge Leonardo Espina against the illegal discharge of firearms by police personnel.

PNP Deputy Director General Espina said the four policemen will be investigated on criminal and administrative charges and would be meted the stiffest penalty should they be found guilty.

“They will be charged with administrative and criminal charges. If found guilty, they will be dismissed from the service,” said Espina, who was given a copy of the report on Friday.

However, Espina did not identify the policemen.

The PNP had earlier warned its personnel from illegally firing their guns in a gesture of

welcoming the new year, saying it is highly illegal and strictly prohibited, other than it could even kill innocent civilians.

Espina issued the order as a number of civilians were killed or injured by stray bullets coming from guns fired during the New Year’s Eve revelr y.

Upon Espina’s orders, PNP officials sealed last December 22 the muzzles of guns of policemen to ensure these would not be illegally discharged in the run up to the New Year’s celebration.

PNP Spokesman Chief Supt.

Wilben Mayor said the four policemen have been disarmed and relieved from their posts.

“They were relieved their posts. Their firearms were confiscated,” he said.

Reports said there were at least 31 victims of stray bullets during New Year’s celebration.

One of the victims, a girl from the province of Abra, died.

WTO marks 20th yr of liberalizing global trade, helping world economy grow

T

HE World Trade Organization (WTO) has marked its 20th year this 2015 of liberalizing global trade and helping the world economy expand.

“Over the past 20 years, this organization has, on balance, made an important contribution to the global economy and to smoother trading relations between nations,” WTO Director General Roberto Azevêdo stated for the 20th anniversary of the WTO on New Year.

“Over the years the WTO has helped boost trade growth, resolve numerous trade disputes and support developing countries to integrate into the trading system,” Azevêdo added.

He stressed that the WTO has also implemented measures to fight against trade protectionism and promote global trade liberalization.

The WTO evolved from a multilateral trade pact

General Agreement on Tariffs and Trade established in 1948, after members signed the Marrakesh Agreement, which officially formed the WTO on January 1, 1995.

To date, the WTO has 160 member-countries, ranging from some of the world’s largest and least developed economies. Its members also now comprise 98 percent of global trade.

“So as we look to the year ahead there is a lot of work to do—and many challenges to meet. While we have delivered in many areas, and despite the success of Bali, the pace of negotiations remains a source of frustration. In future we know that we need to deliver more outcomes, more quickly,” the WTO chief said.

“In addition, we know that our poorest members are still not adequately integrated into the trading system, so again we need to do more to help them reap the benefits that the system can offer,” he stressed.

CITY GOVERNMENT OF NAVOTAS BIDS AND AWARDS COMMITTEE The Philippines is one of the founding members of WTO. WTO data showed that the PhilipINVITATION TO BID FOR THE PROCUREMENT OF PROFESSIONAL & PRODUCTION SERVICES FOR THE 109 NAVOTAS DAY CELEBRATION 2015 pines ranked 56th largest exporting The City Government of Navotas through its Bids and Awards Committee will hold a Public Bidding for the following project, to wit: country and 46th in terms of imports PROCUREMENT OF PROFESSIONAL AND PRODUCTION SERVICES FOR THE 109 NAVOTAS DAY CELEBRATION 2015 in the global trade. PNA Republic of the Philippines

1052 Mariano Naval Street, Sipac Almacen, Navotas City 1485 Contact Number (02) 281 4080 local 342 http://www.navotas.gov.ph

!

TH

TH

ROLLBACK

Workers unload liquefied petroleum gas (LPG) tanks from a truck at a gas station in Makati City. Petron Corp. announced it rolled back prices of LPG by P5.50 per kilogram on Friday to reflect the drop of price in the international contract prices of LPG. Alysa Salen

1 LOT: PROFESSIONAL AND PRODUCTION SERVICES FOR THE 109TH NAVOTAS DAY CELEBRATION

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GROUP DANCERS WHO HAVE EXPERIENCE IN PERFORMING IN TV SHOWS, VARIOUS CONCERTS AND OTHER MAJOR EVENTS SUCH AS SASSY GIRLS, SHOWTIME DANCERS, EB BABES, NAVOTAS ALL STAR DANCERS (LOCAL PERFORMANCES)

•

PRODUCTION AND TECHNICAL STAFF AND WHO HAVE EXPERIENCE IN HOSTING AND MANAGING MAJOR CONCERTS AND EVENTS: (1) DIRECTOR (1) TECHNICAL DIRECTOR (1) PRODUCER (1) WRITER (1) TALENT COORDINATOR (4) PRODUCTION STAFF WRITER (1) PRODUCTION MANAGER (4) PRODUCTION ASSISTANTS (1) VOICE OVER TALENT (1) ASST. PROD. MANAGER (1) SPINNER (1) UTILITY MESSENGER (3) ASST. STAGE MANAGERS (25) MARSHALLS (3) SERVICE VEHICLE DRIVER

FOR GRAND PARADE (JANUARY 16, 2015) •

FEMALE ARTISTS WHO HAD LEAD ROLES IN TELESERYES AND MOVIES AND/OR WON BEAUTY PAGEANTS SUCH AS DENISE LAUREL, KIM CHU, KC CONCEPCION, ALEX GONZAGA, SOLENN HEUSAFF, ELLEN ADARNA, JASMIN CURTIS, MEGAN YOUNG, MAJA SALVADOR, ERICH GONZALES, JESSY MENDIOLA, ANN CURTIS, KARYLLE, JULIA BARRETO, JUDY ANN SANTOS, SARAH GERONIMO, BEA ALONZO, ANGEL LOCSIN, KATHRYN BERNARDO

Firm hails Ateneo in-campus electric-jeep system Three PHL cities rise in Tholons’s BPO ranking

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HE Electric Vehicle Association of the Philippines (Evap) lauded the initiatives of the Ateneo de Manila University for its in-campus Ateneo e-Jeep shuttle system launched last month.

“More and more private institutions are now introducing their own eco-friendly transport systems to transform their establishments into green establishments,” EVAP President Rommel Juan was quoted in a statement as saying.

Ateneo is the first educational institution to introduce an in-campus electric jeepney shuttle transport system, which they have called “Ateneo e-Jeep.”

Ateneo’s system came a month after Filinvest Alabang launched its own shuttle system, which also utilizes eJeepneys.

According to Juan, the Ateneo e-Jeep system boasts of an initial four units of 14-seater e-Jeeps, which run all throughout the sprawling 86-hectare Ateneo campus

TOTAL ABC PHP. 3,835,000.00 PESOS: THREE MILLION EIGHT HUNDRED THRITY-FIVE THOUSAND PESOS SCHEDULE AND TIME TABLE Pre-Bidding Conference Submission of Bid Opening of Bid

December 23, 2014 at 2:00 in the Afternoon January 05, 2015 on or before 12:00 noon January 05, 2015 at 2:00 in the Afternoon

All procurement schedule will held at the Mayor’s Conference Room at the Fourth Floor, Navotas Cityhall Building, Mariano Naval Street, Navotas City.

Bids received in excess of the ABC shall be automatically rejected at bid opening. Excess in ABC shall cover all the financial component of the above procurement including but not limited to the ABC per unit/item/goods as stated in the list of technical specifications and purchase request.

Bidders should have completed, within TWO (2) YEARS from the date of submission and receipt of bids, a contract similar to the Project.

The description of an eligible bidder is contained in the Bidding Documents, particularly, in Section II. Instructions to Bidders.

Bidding will be conducted through open competitive bidding procedures using a non-discretionary “pass/fail” criterion as specified in the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184, otherwise known as the “Government Procurement Reform Act”. All documents submitted must be sufficient as to form and substance to be considered complete.

Bidding is open to all interested bidders, whether local or foreign, subject to the conditions for eligibility provided in the IRR of RA 9184.

Interested bidders may obtain further information from City Government of Navotas - Bids and Awards Committee and inspect the Bidding Documents at the address given below during 8:00 Am to 5:00 PM – Monday to Friday. A complete set of Bidding Documents may be purchased by interested Bidders upon payment of a non refundable fee for the Bidding Documents in the amount prescribed by the GPPB Guidelines. All Interested bidderS should submit upon request of the Bidding Documents, (a) Letter of Intent; (b) Certified Photocopy of the Official Receipt for the payment of the Bidding Documents Fee. The City Government of Navotas – Bids and Awards Committee reserves the right to accept or reject any bid, to annul the bidding process, and to reject all bids at any time prior to contract award, without thereby incurring any liability to the affected bidder or bidders.

For further information, please refer to: MS. EVANGELINE P. CRUZ, CPA Head, BAC Secretariat and/or MR. JOEY DC TENGSON Member, BAC Secretariat Office of the BAC Secretariat (Office of the City Accountant) Third Floor,City Government of Navotas Building 1052 Mariano Naval Street, Navotas City

Approved by the Committee: (ORIGINAL SIGNED)

!

ARCH. JERRY MAGPAYO BAC Chairperson

Approved by the Committee:

grounds. It currently has 11 stops and has a wait time of about ten minutes per eJeep.

Ateneo introduced this as a free shuttle service to the Ateneo community. It services the high school and college students, as well as the faculty and staff of Ateneo, which comprise about 17,000 people. The system is operated by Meralco Energy Inc. (MServ), a subsidiary of the Manila Electric Co. (Meralco).

Meralco helped to design and set up a very vital infrastructure–a power-charging station, which it calls the Meralco e-Vehicle Power Station. It has four bays and is capable of charging the eJeepneys overnight and can then have them running the next day for about 100 kilometers during the morning rush hour inside the Ateneo campus. Topping off the charge can be done during the lean hours.

Juan explained that electric jeeps are now gaining popularity, as the quality of air in Metro Manila continues to deteriorate.

“About 80 percent of air pollution is attributed to the old, dilapidated and smokebelching public utility Jeepneys and buses. e-Jeepneys are, therefore, seen as the logical replacement for these relics on the road.”

Juan said that not only are e-Jeepneys easier to maintain, but they are also more economical to run.

An e-Jeepney costs only P4.60 per kilometer to operate, as compared to a conventional diesel-powered jeepney, which costs P6.70 per kilometer to operate, Juan added. The blue and white Ateneo e-Jeep units were supplied

by PhUV Inc., the pioneer in electric vehicle assembly in the Philippines.

“Evap hopes that many other commercial and even industrial establishments will soon follow suit in operating their own environment-friendly transport solutions.”

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HREE cities in the Philippines moved up several notches in the latest ranking of business-process outsourcing (BPO) destinations by consultancy firm Tholons Inc. The cities of Bacolod, Baguio and Iloilo rose seven, four and four notches, respectively, in the Tholons’s Top 100 Outsourcing Destinations report.

From 93 in 2014, Bacolod rose to 86 in the ranking that Tholons began in 2006. From 99, Baguio City is now ranked 95, while Iloilo City rose to 91 from 95 in the 2014 ranking.

Paraguay’s city of Asunción rose to the 2014 ranking on Bacolod for 2015, while Panama City moved up to 99 from 112 in 2014. Iloilo City edged out the Russian city of Novosibirsk, which moved one notch down to 92.

According to Tholons Managing Director Ankita Vashistha, “the overall Top 10 Emerged Destinations saw some significant movements this year.”

Ireland’s city of Dublin dropped from the Top 10 to the 12th position, overtaken by cities continuously developing information technology-business process management (IT-BPM) capabilities in Shanghai and San Jose.

“The rise of Shanghai to the 10th rank and San Jose on its heels at 11th will be an interesting play in the following years, as both Latin American and China markets grow abound simultaneously,” Vashistha said.

“While each regional market does have its own systemic problems, each one has the potential to drive the growth of its cities toward greater heights in the Top 10 Emerged Destinations,” she added.

Vashistha explained that they see the Asia Pacific and Latin American markets showing “very positive development on a regional perspective, with an overall upward trajectory in the rankings, especially true for Tier 2 cities” “Meanwhile, issues in Europe, the Middle East and the African regions continue to affect specific outsourcing destinations. Sociopolitical crises of various forms remain significant as deterrents toward further IT-BPM growth.” The cities of Manila and Cebu, to note, maintained their ranking at the Top 10 outsourcing destination. Manila stayed second from Bangalore, India, while Cebu was maintained at its 2014 rank of Top 8.

The cities of Davao and Santa Rosa also was maintained at 69 and 82, respectively, bringing all eight Philippine cities in Tholons’s Top 100 destinations for the worldwide BPO industry. Dennis D. Estopace

News BusinessMirror

corp@businessmirror.com.ph

Saturday, January 3, 2015

‘Comelec to face prolonged legal battle if Smartmatic wins supply contract’

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By Joel R. San Juan

HE Commission on Elections (Comelec) should expect a prolonged legal battle, which could derail its preparations for the 2016 elections, should it favor SmartmaticTotal Information Management (TIM) Corp. in the bidding for additional counting machines.

This was the warning issued by Spanish firm Indra Sistemas SA, the only technology provider competing with Smartmatic for Comelec’s P2-billion supply contract.

“This is one possibility that we want to prevent from happening. We want to help Comelec and the country avoid any and all doubts about our electoral process,” Archibald de

Mata, legal counsel of Indra Sistemas SA, said.

De Mata was referring to the unsettled question on the ownership of the technology being used

by Smartmatic in the Precint Count Optical Scan (PCOS) units it is offering the Comelec to augment the 82,000 machines bought by the poll body in 2012.

During the end-to-end demonstration of the machine conducted by the Comelec’s bids and awards committee (BAC), he said the BAC was asked to secure a categorical reply from Smartmatic on the ownership of the technology, in conformity with its own bidding rules.

The BAC refused to compel Smartmatic, to the disappointment of Indra’s legal counsel.

“We deem such confirmation is of utmost importance to avoid any violation of the provisions in the bidding documents,” de Mata said.

“The BAC should be advised or informed whether the Smartmatic joint venture, or any member thereof, owns and/or has developed the machines that it intends to provide to this honorable commission. We respectfully submit that this may be done only through a categorical confirmation from Smartmatic,” he added.

De Mata pleaded to the Comelec not to allow the issue to go unsettled while the bidding is underway.

“Should Smartmatic win the bid and then be found not owning the PCOS technology, then they may be in violation of the very same rules they had set out,” de Mata said.

He warned that such infraction may trigger suits questioning the validity of the bidding process and delay preparations for 2016.

“We are hopeful that the BAC will consider our sentiment and serve us a copy of the Smartmatic’s

reply to the issue on their ownership of the machines and software that they intend to supply the commission for the 2016 national and local elections,” the Indras counsel said in a letter to the Comelec.

IT experts and concerned groups have already raised the issue of ownership against Smartmatic in the past, calling the company a mere “reseller” and “middleman” for the PCOS technology.

Earlier, election watchdog group Citizens for Clean and Credible Elections (C3E) raised the ownership issue before the Comelec, asking the commission to disallow Smartmatic from participating in the bidding.

“For the past two elections, we’ve been made fools by Smartmatic. We ask the Comelec to reconsider its stance on the blacklisting of Smartmatic,” C3E spokesman Dave Diwa said.

Malacanañg to work with Congress to address firecracker-related injuries

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YEAR OF THE SHEEP These sheep graze under a mango tree at the Benito Integrated Farm in San Placido, Roxas, in Isabela province. According to Chinese astrology, 2015 is the year of the Wooden Sheep. LEONARDO PERANTE II

Lawmaker pushes for creation of palm-oil center

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lawmaker has filed a bill establishing the Palm Oil Research, Development and Extension Center that will help improve the palm-oil industry in the country.

Rep. Rogelio Neil Pepito Roque (Fourth District, Bukidnon) said the Palm Oil Research, Development and Extension Center being proposed under House Bill (HB) 5211, which will be established at the Central Mindanao University, will further boost the farmers’ socioeconomic life and livelihood conditions in the region. Roque said palm oil is being used as an ingredient in many household products, like cooking oil, baked goods, confectionery, canned goods, nondairy creamers, shampoos, cosmetics, cleaning agents and washing detergents.

“The country shows an increasing trend in palm-oil production volume and the establishment of the center will help improve the palm-oil industry in the country, especially so that Mindanao is accounted for 90 percent of the country’s palm-oil production,”

he said. Roque said the center would foster the knowledge of farmers, develop technology and increase the country’s production of palm oil.

“It will provide assistance on the processing and marketing of palm oil and its by-products,” he added.

Under the measure, the center will coordinate with the Department of Agriculture (DA) through the Bureau of Agricultural Research, Department of Science and Technology, Department of Trade and Industry, the National Economic and Development Authority and the Philippine Council for Agricultural Research and Resources Development in training stakeholders, conducting researches, extending technologies and analyzing the demand and supply of palm oil in the domestic and international market.

It will conduct agricultural, industrial and economic research and development of the palm-oil industry for the benefit of the Filipino palm-tree farmers.

The center will also train professionals, students and palm-tree farmers and their children on various disciplines related to palm-oil production, utilization and marketing. Under the proposed measure, the center will design and implement local and foreign scholarships and fellowship programs that will enhance palm-oil development.

It is also tasked to organize and hold local, regional or international conferences, gatherings, forums and seminars on the current trends and developments of the palm-oil industry.

Roque wants the center to consolidate all research studies by other institutions, as well as to establish, maintain and operate an information and library center, design and implement a farm extension program to effectively transfer modern farm technology to palm-oil farmers.

It will publish and disseminate research finds and make appropriate recommendations to interested parties. PNA

SEC to grant CBCP’s request to retain name

By VG Cabuag

A

unit of the Securities and Exchange Commission (SEC) has recommended the lifting of the name revocation of the Catholic Bishops’ Conference of the Philippines (CBCP), the body that represents the Roman Catholic Church in the country.

The SEC’s company registration and monitoring department (CRMD) gave the CBCP leeway even if it failed to file the necessary documents within the deadline set by the agency.

The CRMD said it found that it was “reasonable” to grant CBCP’s request to reinstate its name.

In September 2013, the commission en banc already denied the request of the CBCP to reinstate its name status from “revoked” to “registered,” after it failed to submit the necessary documents.

The agency’s commissioners, however, gave the CBCP leeway and asked the CRMD to advise the body to file a petition until December 31, 2013 to reinstate its name and pay the necessary fines.

The CBCP, however, still failed to file the petition, saying its legal counsel, Sabino Padilla Jr., was unable to file the petition due to his “lifethreatening pneumonia,” while his assistant was battling dengue, the Padilla Law Office said in its letter to the SEC in March 2014.

The law office then requested the agency to file the petition beyond the December 31, 2013 deadline.

The SEC said it considered the circumstances and allowed the CBCP to file the petition beyond the date required.

alacanañg on Friday indicated its readiness to work with Congress in coming up with a law that will effectively address problems posed by the use of firecrackers, especially during New Year celebrations.

The Department of Health (DOH) has expressed concern that, despite a drop in the total number of firecracker-related injuries, the number of those injured remains high, and the number of amputations, especially among children, has increased.

According to initial figures from the department and the police, three were killed and 354 were injured during the New Year revelry.

The DOH has said it wants to ask the President to prioritize the passage of a bill imposing a total ban on the use of firecrackers in the country.

In a telephone interview, Communications Secretary Herminio B. Coloma Jr., however, said the DOH’s proposal must be thoroughly studied because there are laws that regulate the use of firecrackers.

“We need to carefully study possible measures or interventions to reduce the number of people who are injured by illegal firecrackers,” Coloma said in the vernacular.

The current thrust of the government is to make New Year celebrations safe, Coloma said, noting that the people’s cooperation and discipline are necessary to avoid injuries.

The people, the local and national governments must work together to make communities safe during New Year celebrations, he added. Coloma explained that simply proposing a total ban would not solve the problem, unless the people and the government work together.

“It’s easy to say ‘let’s impose a total ban,’ but we need discipline and to work together to reduce the number of injuries,” he said in the vernacular.

The Palace official, nonetheless, commended the campaign against the use of firecrackers that resulted in fewer injuries during the New Year celebration. PNA

A5

Cacao, coffee planted in IP women’s organic village

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he Department of Agriculture (DA) planted more than 1,000 cacao and coffee seedlings in an organic village run by women from indigenous groups in Davao City.

The DA’s Gender and Development Program in Region 11 spearheaded the soft launching and ceremonial planting of the seedlings in the Indigenous Peoples (IP) Women’s Organic Village in Malamboon Elementary School at Sitio Malamboon, Barangay Malabog village in Davao City. The DA said more than 300 persons from the Ata-Manobo tribe benefited from the program wherein 1,000 hills were prepared to be planted with seedlings of cafe Arabica variety. Agriculture Undersecretary Bernadette Romulo-Puyat and Davao City Mayor Rodrigo Duterte led the soft launching and ceremonial planting. Puyat said the DA will continue to monitor the projects in the area and provide interventions for the organic village. Duterte, for his part, vowed to allocate P10 million for coffee plantation and production in Barangay. Malabog.

Datu Generoso Baon, IP’s mandatory representative and one of the beneficiaries, vowed to take good care of the project.

The IP Women Organic Village Project is a typical ruraldevelopment initiative spearheaded by the DA’s regional office to help raise the capacities of women in agriculture in farflung areas. Under this project, women are taking the lead by allowing them to partake in the entire process of human and community development which include cacao production. The project is also promoting an ecologically sound and balance bio-diversified and integrated farming system with preference on organic cacao production, vegetable natural farming production, livestock production and inland fish farming.

Opinion BusinessMirror

A6 Saturday, January 3, 2015

Editor: Alvin I. Dacanay

editorial

Seniang: Did the government fail?

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HE last major storm to hit the Philippines in 2014, Tropical Storm Seniang (international code name Jangmi), ended the year on a tragic and disappointing note. At least 50 people were killed and tens of thousands were displaced by the heavy rains, floods and landslides that Seniang unleashed.

After the impressive gains it made after Typhoon Ruby (international code name Hagupit) struck the country early last month, the government is now taking a lot of heat over its response to Seniang.

Government officials, just like everyone else, were focused on celebrating the holidays. Government agencies were more concentrated on taking care of all the necessary public-service duties that had to be done for the holiday celebrations. Filipinos do not make things easy when you consider that, once again, the New Year saw hundreds of people needlessly injured from lighting firecrackers.

But it is still the job of the government to do whatever it can to prepare for a major storm.

That scores of people were killed during Seniang’s onslaught raises several questions, one of which is this: Did the government have an adequate and well-thought-out plan that can be applied to situations like this? The government insists that its disaster-preparedness plan is in place, and is both viable and effective. This returns us to something we talked about in the wake of Ruby: There must be a sound system ready for implementation.

However, the implementation may have been a problem in this case. One hard-hit area was Samar province, specifically Catbalogan City. Stephany UyTan, its mayor, told an AM station that some residents in vulnerable areas had ignored evacuation warnings.

No matter how well-planned the response is, it’s useless if people do not follow the plan. We also spoke about how ordinary Filipinos seemed to be taking much more personal responsibility during Ruby, rather than waiting for the government to come in.

One resident in an affected area south of Cebu City was quoted as saying that, though his family had prepared for Ruby, they did not expect Seniang to be more devastating, because it only brought rains and there was no strong wind. Sadly, several members of his family were lost to the floods.

Perhaps, the most important question is whether or not there is close coordination between the national government and local government units (LGUs). If so, are the LGUs doing the best job they can? For example, do they need additional resources?

Storms like Seniang will always come to our shores, and with each of them we must also learn and increase our level of preparedness.

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Philippines 2015: A turning point John Mangun

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OUTSIDE THE BOX

N literature, “a turning point” is defined as the point where the drama or tension in a story reaches its peak, where the story’s climax begins to unfold. That is what the world—and the Philippines—faces in 2015.

It is an interesting coincidence that, as global events come together for this turning point, the Philippines will enter its presidential-election season later this year. The year 2015 will be a time of persistently high tension and drama.

Two events occurred in the financial markets as we closed 2014: The spot price of Brent crude oil hit its lowest since May 2009; and the United States dollar index, which measures the exchange rate for the US dollar against a basket of currencies, reached its highest level— 90.64—since December 2008.

While we are all looking at the price of crude oil as it affects local gasoline prices, the bigger picture is the general price of most commodities. Virtually every index that measures a broad basket of global commodity prices is trading at or near its 2009 level.

To have this situation can only

Shanghai’s anxieties result in tragedy

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mean one thing: The global economy is in such a bad shape that demand is falling rapidly. If it were only crude-oil prices falling, then we might be able to argue that this was being caused by increased supply. But it is across the board for other critical commodities.

Commodity-exporting countries, like Australia, Malaysia and Mexico, are going to see their economies hurt by a decrease in income. Of course, oil producers are in the same situation. Saudi Arabia is facing its worst budget deficit in its history.

The decrease in export income is having a negative effect on those nations’ currencies: The Malaysian ringgit fell significantly in the fourth quarter; the Mexican peso is back to levels not seen since it hit the bottom in 2009.

The US dollar is appreciating, in part, as these and other currencies fall in value. More important, the

dollar is appreciating because there are problems with the Japanese yen and euro, the only major alternatives to the US currency. It is difficult to buy the yen when it is the stated policy of the government to depreciate the currency. The euro is faced with extreme uncertainty as the German economy, in particular, is hurting badly from the economic sanctions placed on Russia. In the last five years Germany supported its economy with exports to Russia that have now disappeared.

The turning point for the globe is twofold. The first is uncovering how bad the global economy really is as commodity prices fall; and the second is how much of the “emerging economies”, like Brazil, have been dependent on dollars flowing out of the US and into their countries.

The same thing happened during the 1997 Asian financial crisis, but the major emerging countries did not account for 50 percent of the global economy, like they do now.

The “gloom-and-doomers” have been saying the Philippine economy is in a bubble and it only grew in the last five years because foreign money supported it. I do not believe that. Foreign money, as investment coming into this country, has been dismal. Remittances from overseas Filipino workers and business-process outsourcing companies are significant. But

Adam Minter

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BLOOMBERG VIEW

HERE’S still no definitive explanation of what caused Wednesday’s New Year’s Eve stampede that left at least 36 dead and 47 injured. Perhaps, as some have suggested, the crowd of 300,000 lost control when someone dumped leaflets that resemble $100 bills from a nightclub. Or, more likely, there were simply too many people on the Bund, the city’s signature riverside promenade, for too few reserved spaces (some are reporting 2,000 reserved spots) from which spectators could watch a free laser light show.

What is certain, however, is that such an accident was long overdue in a city that takes particular, oftentimes reckless pride, in staging large spectacles, which draw big crowds that underscore the worthiness of the expense. In part, the problem is a kind of second-city syndrome, whereby Shanghai—China’s most important commercial and financial hub—seems determined to prove that it’s just as relevant, and even grander, than Beijing, the country’s political capital and cultural

powerhouse. Big crowds for big events are a great way to make that happen—and a great reason for an image-conscious, insecure local government to ignore safety.

As an example, I’d cite the evening of October 1, 2002. It was China’s National Day, and—like hundreds of thousands of other Shanghai residents—I wanted to see the promised fireworks display on the Bund.

To get there, I started walking down Nanjing East Road, a roughly 1-mile shopping street that, on a good day,

In fairness, China has a lot of people, and it’s not hard to draw a big crowd. But drawing a crowd and drawing a crowd safely are two different things. For too long Shanghai has emphasized the former, while ignoring the latter. attracts more than a million people.

During 2013’s three-day National Day holiday, it attracted 5.8 million shoppers, according to local media.

On October 1, 2002, the crowd was huge, and as we proceeded to the Bund, it thickened such that it was more like a current—if you stopped, it pushed you along forcefully, pressing toward the crowded Bund. Finally, about half the way down the road, I managed to jump out of the surging current, exhausted and terrified, and onto the steps of the Sofitel, where I watched the dangerous crowd, vowing never to return for another holiday celebration on the Bund.

That was not the lesson taken by the city of Shanghai. In fact, it has continued to hold annual holidaythemed events on the Bund (in particular, for National Day and New Year’s Eve) that draw even greater

with domestic sources accounting for 90 percent of all new investments, we are not dependent on foreigners and their money.

But in the next 12 months we are going to resolve the question of whether the Philippines is in a bubble, of whether we have finally achieved a growing, self-sustaining economy that can handle global economic shocks. I believe we have.

If the Philippine peso can maintain is relative strength and narrow-sideways movement in the face of the appreciating dollar, it means that we have finally reached economic maturity. If the interest rate that top corporations must pay on the debt does not widen in relation to the US corporate borrowing rate, it means that we are in great shape.

For stock-market watchers, caution is still the strategy. Either we will see a move on the Philippine Stock Exchange index (PSEi) above 8,500, or see 2015 take the PSEi to below 5,500.

This year will bring new meaning to “It’s more fun in the Philippines”.

I’m looking forward to it.

Send me an e-mail at mangun @gmail.com. Visit my website at www.mangunonmarkets.com. Follow me on Twitter at @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

crowds than what I witnessed in 2002. (In part, this is due to Shanghai’s massive new subway system, which gives the city’s outlying suburbs easy access to the center of the city.) Typically, the next day’s papers include coverage of the crowds, along with proud mentions of their size.

In fairness, China has a lot of people, and it’s not hard to draw a big crowd. But drawing a crowd and drawing a crowd safely are two different things. For too long Shanghai has emphasized the former, while ignoring the latter.

If this year’s tragedy accomplishes anything, it’s likely to be the end of badly managed free entertainment on the Bund and in other prominent city venues. In the hours since the stampede, Chinese media shifted from covering President Xi Jinping’s politically important New Year message, to covering the stampede—and Xi’s reminder that a “profound lesson” should be learned from it. Meanwhile, Shanghai’s longtime mayor, Han Zeng, demanded that the city’s districts and counties take steps to “prevent similar tragedies.” Alas, the real tragedy is that the mayor didn’t send the message a decade ago.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Climate warming is indisputable

Evangelii Gaudium Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

Cecilio T. Arillo

database

C

LIMATE warming is indisputable, and many of the observed changes are unprecedented over decades to millennia, the Intergovernmental Panel on Climate Change (IPCC) has revealed in its 2014 report.

The IPCC, one of the United Nations’s authoritative voices on weather, climate and water, said atmosphere and ocean have warmed, the amounts of snow and ice have diminished, and sea levels have risen.

Its report said anthropogenic greenhouse-gas emissions have increased since the preindustrial era, driven largely by economic and population growth, and are now higher than ever, leading to atmospheric concentrations of carbon dioxide, methane and nitrous oxide that are unprecedented in at least the last 800,000 years.

“Their effects, together with those of other anthropogenic drivers, have been detected throughout the climate system and are extremely likely to have been the dominant cause of the observed warming since the mid-20th century,” the IPCC report said.

The report pointed out that changes in climate have caused impacts on natural and human systems on all continents and across the oceans. Impacts are due to observed climate change, irrespective of its cause, indicating the sensitivity of natural and human systems to the changing climate.

“Changes in many extreme weather and climate events have been observed since about 1950. Some of these changes have been linked to human influences, including a decrease in coldtemperature extremes, an increase in warm-temperature extremes, an increase in extreme high sea levels and an increase in the number of heavy precipitation events in a number of regions,” the report said.

The report further stated: “It is very likely that heat waves will occur more often and last longer, and that extreme precipitation events will become more intense and frequent in many regions. The ocean will continue to warm and acidify, and global mean sea level to rise.

“Climate change will amplify existing risks and create new risks for natural and human systems. Risks are unevenly distributed, and are generally greater for disadvantaged people and communities in countries at all levels of development.

“Many aspects of climate change and [its] associated impacts will continue for centuries, even if anthropogenic emissions of greenhouse gases are stopped. The risks of abrupt or irreversible changes increase as the magnitude of the warming increases.”

Widespread impacts

HUMAN influence on the climate system is clear, and recent anthropogenic emissions of greenhouse gases are the highest in history. Recent climate changes have had widespread impacts on human and natural systems.

The continued emission of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, increasing the likelihood of severe, pervasive and irreversible impacts on people and ecosystems. Limiting climate change would require substantial and sustained reductions in greenhouse-gas emissions, which, together with adaptation, can limit climate-change risks.

Adaptation and mitigation are complementary strategies for reducing and managing the risks of climate change. Substantial emission reductions over the next few decades can reduce climate risks in the 21st century and beyond, increase prospects for effective adaptation, reduce the costs and challenges of mitigation in the longer term, and contribute to climate-resilient pathways for sustainable development.

Effective decision-making to limit

climate change and its effects can be informed by a wide range of analytical approaches for evaluating expected risks and benefits, recognizing the importance of governance, ethical dimensions, equity, value judgments, economic assessments, and diverse perceptions of and responses to risk and uncertainty.

Without additional mitigation efforts beyond those in place today, and even with adaptation, warming by the end of the 21st century will lead to high to very high risk of severe, widespread and irreversible impacts globally (high confidence). Mitigation involves some level of co-benefits and of risks due to adverse side-effects, but these risks do not involve the same possibility of severe, widespread and irreversible impacts as risks from climate change, increasing the benefits from near-term mitigation efforts.

Adaptation can reduce the risks of climate-change impacts, but there are limits to its effectiveness, especially with greater magnitudes and rates of climate change. Taking a longer-term perspective, in the context of sustainable development, increases the likelihood that more immediate adaptation actions will also enhance future options and preparedness.

Mitigation pathways

THE IPCC panel of experts said there are multiple mitigation pathways that are likely to limit warming to below 2°C, relative to preindustrial levels.

These pathways would require substantial emission reductions over the next few decades and near-zero emissions of carbon dioxide and other longlived greenhouse gases by the end of the century.

“Implementing such reductions poses substantial technological, economic, social and institutional challenges, which increase with delays in additional mitigation and if key technologies are not available. Limiting warming to lower or higher levels involves similar challenges, but on different timescales,” the experts said, adding that: “Adaptation and mitigation responses are underpinned by common enabling factors. These include effective institutions and governance, innovation and investments in environmentally sound technologies and infrastructure, sustainable livelihoods, and behavioral and lifestyle choices.

“Adaptation options exist in all sectors, but their context for implementation and potential to reduce climaterelated risks differs across sectors and regions. Some adaptation responses involve significant cobenefits, synergies and trade-offs. Increasing climate change will increase challenges for many adaptation options.”

Mitigation options are available in every major sector, and it can be more cost-effective if it uses an integrated approach that combines measures to reduce energy use and the greenhousegas intensity of end-use sectors, decarbonize energy supply, reduce net emissions and enhance carbon sinks in land-based sectors.

“Effective adaptation and mitigation responses will depend on policies and measures across multiple scales: international, regional, national and subnational. Policies across all scales supporting technology development, diffusion and transfer, as well as finance for responses to climate change, can complement and enhance the effectiveness of policies that directly promote adaptation and mitigation,” the experts stressed.

E-mail: cecilio.arillo@gmail.com.

45th part

The economy and the distribution of income

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HE need to resolve the structural causes of poverty cannot be delayed, not only for the pragmatic reason of its urgency for the good order of society, but because society needs to be cured of a sickness that is weakening and frustrating it, and that can only lead to new crises. Welfare projects, which meet certain urgent needs, should be considered as merely temporary responses. As long as the problems of the poor are not radically resolved by rejecting the absolute autonomy of markets and financial speculation, and by attacking the structural causes of inequality, no solution will be found for the world’s problems or, for that matter, to any problem.

Inequality is the root of social ills.

The dignity of each human person and the pursuit of the common good are concerns that ought to shape all economic policies. At times, however, they seem to be a mere addendum imported from without in order to fill out a political discourse lacking in perspectives or plans for true and integral development. How many words prove irksome to this system!

It is irksome when the question of ethics is raised, when global solidarity is invoked, when the distribution of goods is mentioned, when reference is made to protecting labor and defending the dignity of the powerless, when allusion is made to a God who demands a commitment to justice.

At other times these issues are exploited by a rhetoric that cheapens them. Casual indifference in the face

of such questions empties our lives and our words of all meaning. Business is a noble vocation, provided that those engaged in it see themselves challenged by a greater meaning in life. This will enable them truly to serve the common good by striving to increase the goods of this world and to make them more accessible to all.

We can no longer trust in the unseen forces and the invisible hand of the market. Growth in justice requires more than economic growth, while presupposing such growth: It requires decisions, programs, mechanisms and processes specifically geared to a better distribution of income, the creation of sources of employment and an integral promotion of the poor that goes beyond a simple welfare mentality. I am far from proposing an irresponsible

Saturday, January 3, 2015

populism, but the economy can no longer turn to remedies that are a new poison, such as attempting to increase profits by reducing the workforce and, thereby, adding to the ranks of the excluded.

I ask God to give us more politicians capable of sincere and effective dialogue aimed at healing the deepest roots—and not simply the appearances—of the evils in our world!

Politics, though often denigrated, remains a lofty vocation and one of the highest forms of charity, inasmuch as it seeks the common good.

We need to be convinced that charity is the principle not only of microrelationships (with friends, with family members or within small groups) but also of macrorelationships (social, economic and political ones).

I beg the Lord to grant us more politicians who are genuinely disturbed by the state of society, the people, the lives of the poor! It is vital that government and financial leaders take heed and broaden their horizons, working to ensure that all citizens have dignified work, education and health care. Why not turn to God and ask Him to inspire their plans? I am firmly convinced that openness to the transcendent can bring about a new political and economic mindset that would help to break down the wall of separation between the economy and the common good of society.

Economy, as the very word indicates, should be the art of achieving a fitting management of our common home, which is the world as a whole. Each meaningful economic decision made in one part of the world has repercussions everywhere else; consequently, no government can act without regard for shared responsibility. Indeed, it is becoming

We have so much to learn from Cuba Robert F. Kennedy Jr.

Inter press service

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HITE PLAINS, New York—Last month United States President Barack Obama announced efforts to restore diplomatic relations with Cuba after more than five decades of a misguided policy that my uncle, John F. Kennedy, and my father, Robert F. Kennedy, had been responsible for enforcing after the US embargo against the country was first implemented in October 1960 by the Eisenhower administration.

The move has raised hopes in many quarters—not only in the US, but around the world—that the embargo itself is now destined to disappear.

This does not detract from the fact that Cuba is still a dictatorship. The Cuban government restricts basic freedoms, like the freedoms of speech and assembly, and it owns the media.

Elections, as in most old-school Communist countries, offer limited options and, during periodic crackdowns, the Cuban government fills its jails with political prisoners.

However, there are real tyrants in the world with whom the US has become a close ally and many governments with much worse human rights records than Cuba—Azerbaijan, for example, whose president, Ilham Aliyev, boils his opponents in oil; Saudi Arabia; Jordan; China; Bahrain; Tajikistan; Uzbekistan; and many others where torture, enforced disappearances, religious intolerance, suppression of speech and assembly, mediaeval oppression of women, sham elections and nonjudicial executions are all government practices.

Despite its poverty, Cuba has managed some impressive accomplishments.

Cuba’s government boasts of the highest literacy rates for its population of any nation in the hemisphere. Cuba claims that its citizens enjoy universal access to health care and more doctors per capita than any other nation in the Americas.

Cuba’s doctors, reportedly, have highquality medical training.

Unlike other Caribbean islands where poverty means starvation, all Cubans receive a monthly food-ration book that provides for their basic necessities.

Even Cuban government officials admit that the economy is smothered by the inefficiencies of Marxism, although they

also argue that the principal cause of the island’s economic woes is the strangling impact of the 60-year-old trade embargo—and it is clear to everyone that the embargo first implemented during the Eisenhower administration in October 1960 unfairly punishes ordinary Cubans.

Expensive and difficult

THE embargo impedes economic development by making virtually every commodity and every species of equipment both astronomically expensive and difficult to obtain.

Worst of all, instead of punishing the regime for its human-rights restrictions, the embargo has fortified the dictatorship by justifying oppression. It provides every Cuban with visible evidence of the bogeyman that every dictator requires— an outside enemy to justify an authoritarian national security state.

The embargo has also given Cuban leaders a plausible monster on which to blame Cuba’s poverty by lending credence to their argument that the US, not Marxism, has caused the island’s economic distress. The embargo has almost certainly helped keep the Castro brothers (Fidel and Raul) in power for the last five decades.

It has justified the Cuban government’s oppressive measures against political dissent in the same way that US national security concerns have been used by some American politicians to justify incursions against our bill of rights, including the constitutional rights to jury trial, habeas corpus, effective counsel and freedom from unwarranted search and seizure, eavesdropping, cruel and unusual punishment, torturing of prisoners, extraordinary renditions, and the freedom to travel, to name just a few.

It is almost beyond irony that the

very same politicians who argued that we should punish Castro for curtailing human rights and mistreating prisoners in Cuban jails elsewhere contend that the US is justified in mistreating our own prisoners in Cuban jails.

Imagine a US president faced, as Castro was, with over 400 assassination attempts, thousands of episodes of foreign-sponsored sabotage directed at our nation’s people, factories and bridges, a foreign-sponsored invasion and 50 years of economic warfare that has effectively deprived our citizens of basic necessities and strangled our economy.

The Cuban leadership has pointed to the embargo with abundant justification as the reason for economic deprivation in Cuba. The embargo allows the regime to portray the US as a bully and itself as the personification of courage, standing up to threats, intimidation and economic warfare by history’s greatest military superpower.

It perpetually reminds the proud Cuban people that our powerful nation, which has staged invasions of their island and plotted for decades to assassinate their leaders and sabotaged their industry, continues an aggressive campaign to ruin their economy.

Perhaps, the best argument for lifting the embargo is that it does not work.

Our 60-plus-year embargo against Cuba is the longest in history and, yet, the Castro regime has remained in power during the entire time.

Instead of lifting the embargo, different US administrations, including the Kennedy administration, have strengthened it without result. It seems silly to pursue a US foreign policy by repeating a strategy that has proved a monumental failure for six decades. The definition of insanity is repeating the same action over and over expecting different results. In this sense, the embargo is insane.

The embargo clearly discredits US foreign policy, not only across Latin America, but also with Europe and other regions.

Calls to lift the embargo

FOR more than 20 years, the United Nations General Assembly has called for lifting the embargo. Last year the vote was 188 in favor and two against (the US and Israel). Both the Inter American Commission on Human Rights (the main human-rights bodies of the Americas) and the African Union have also called for lifting the embargo.

One reason that it diminishes our

A7

increasingly difficult to find local solutions for enormous global problems, which overwhelm local politics with difficulties to resolve. If we really want to achieve a healthy world economy, what is needed at this juncture of history is a more efficient way of interacting that, with due regard for the sovereignty of each nation, ensures the economic well-being of all countries, not just of a few.

Any Church community, if it thinks it can comfortably go its own way without creative concern and effective cooperation in helping the poor to live with dignity and reaching out to everyone, will also risk breaking down, however much it may talk about social issues or criticize governments. It will easily drift into a spiritual worldliness camouflaged by religious practices, unproductive meetings and empty talk.

If anyone feels offended by my words, I would respond that I speak them with affection and with the best of intentions, quite apart from any personal interest or political ideology. My words are not those of a foe or an opponent. I am interested only in helping those who are in thrall to an individualistic, indifferent and self-centered mentality to be freed from those unworthy chains and to attain a way of living and thinking that is more humane, noble and fruitful, and that will bring dignity to their presence on this earth.

To be continued For comments, send an e-mail to caritas_manila@yahoo.com. For donations to Caritas Manila, call (632) 563-9311. For inquiries, call (632) 5639308 or 563-9298, or fax 563-9306.

global prestige and moral authority is that the embargo only emphasizes our distorted relationship with Cuba. That relationship is historically freighted with powerful ironies that make the US look hypocritical to the rest of the world.

Most recently, while we fault Cuba for jailing and mistreating political prisoners, we have simultaneously been subjecting prisoners, many of them innocent by the Pentagon’s own admission, to torture, including waterboarding and illegal detention and imprisonment without trial in Cuban prison cells in Guantánamo Bay. While we blame Cuba for not allowing its citizens to travel freely to the US, we restrict our own citizens from traveling freely to Cuba. In that sense, the embargo seems particularly anti-American. Why does my passport say that I can’t visit Cuba? Why can’t I go where I want to go?

I have been a fortunate American.

I have been able to visit Cuba and that was a wonderful education because it gave me the opportunity to see Communism with all its warts and faults up close. Why doesn’t our government trust Americans to see for themselves the ravages of dictatorship?

Had President Kennedy survived to win a second term, the embargo would have been lifted half a century ago.

President Kennedy told Castro, through intermediaries, that the US would end the embargo when Cuba stopped exporting violent revolutionists to Latin America’s Alliance for Progress nations—a policy that mainly ended with Che Guevara’s death in 1967 and when Castro stopped allowing the Soviets to use the island as a base for the expansion of Soviet power in the hemisphere.

Well, the Soviets have been gone since 1991—more than 20 years ago—but the US-led embargo continues to choke Cuba’s economy. If the objective of our foreign policy in Cuba is to promote freedom for its subdued citizens, we should be opening ourselves up to them, not shutting them out.

We have so much to learn from Cuba—from its successes in some areas and failures in others.

As I walked through the streets of Havana, Model-Ts chugged by, Guevara’s soaring effigy hung in wrought iron above the street, and a bronze statue of Abraham Lincoln stood in a garden on a tree-lined avenue.

I could feel the weight of 60 years of Cuban history, a history so deeply intertwined with that of my own country.

2nd Front Page BusinessMirror

A8 Saturday, January 3, 2015

Profiteers should not exploit papal visit–CBCP

By Catherine N. Pillas

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he scheduled visit of Pope Francis later this month is focused on the spiritual theme of mercy and compassion and Filipinos are urged to refrain from exploiting the event as an opportunity for profit-making, according to the Catholic Bishops’ Conference of the Philippines (CBCP).

“The visit has its own purpose. This is not a time for commerce and trade, although we cannot avoid certain activities for business. As much as possible, let us not use this opportunity to gain more profit,” Fr. Marvin Mejia, secretary-general of the CBCP, said of people and businesses likely to take advantage of tourists and the faithful to increase their business.

Mejia, however, said the government has taken steps to oversee business activities that may be disadvantageous to consumers and tourists.

The church official also said the CBCP, in tandem with the government, aims to ensure that the papal visit is conducted in a modest manner and that no unwarranted commercialization of the event takes place.

“We don’t want this to be a reason for public fund-raising as much as possible.

We are still open to donations from private groups, of course, as we cannot avoid [incurring] costs. But the event does not have to be extravagant. We want to provide a dignified welcome to the Holy Father, a welcome worthy of a pope and head of state. But this is not a fund-raising event. This is purely on a voluntary basis,” Mejia emphasized.

He quickly added that the CBCP finance committee has drawn up a budget for the four-day papal visit, whose specifics were not immediately available.

Mejia gave assurance that the CBCP and the government have completed preparations for the visit, which is scheduled to last from January 15 to 19, with emphasis on the pope’s security.

“We have representatives working with groups responsible for the security, such as the Philippine National Police, the Presidential Security Group and, of course, the Swiss Guards to ensure his safety,” Mejia added.

“By the time the Holy Father comes, everything will be ready,” Mejia said.

Food, beverages, tobacco got ₧8B in govt subsidies in 2012

M

By Cai U. Ordinario

illions of taxpayers effectively funded the financial assistance, tax privileges and tax exemptions aggregating P8 billion extended by the government to the wholesale food, beverages and tobacco industry in 2012, according to the data released by the Philippine Statistics Authority (PSA).

T h i s de ve lopment w a s extracted from the final results of the PSA’s 2012 Census of Philippine Business and Industry-Wholesale and Retail Trade; Repair of Motor

Vehicles and Motorcycles.

“Wholesale of food, beverages and tobacco industry located in NCR [National Capital Region] received the highest subsidies of P8 billion from the government,”

the PSA said.

The PSA explained that the subsidies consist of financial assistance, or tax exemption or tax privilege, given by the government to aid and develop the industry.

The wholesale food, beverages and tobacco industry was among the most profitable in the sector in 2012. The subsidy they collectively received also comes in the wake of another legislative proposal for a hike in the minimum corporate income tax of just 2 percent to 5 percent, and for personal income tax to be reduced further to just 25 percent from the current 30 percent.

Data show that this accounted for P343.3 billion of the total

income of the wholesale and retail trade; repair of motor vehicles and motorcycles sector at P3.8 trillion in 2012.

The PSA said the retail sales in nonspecialized stores earned the highest income of P642.5 billion, followed by the wholesale of household goods, with P487.4 billion.

Further, the retail sale of other goods in specialized stores ranked third, with P456.5 billion in 2012.

However, the industry’s total expense disbursed in 2012 amounted to P3.6 trillion.

Being the major contributor to income, retail sale in nonspecialized stores had also the See “Subsidies,” A2

READY FOR THE POPE Concrete barriers are being lined up along the stretch of Roxas Boulevard in Manila by Department of Public Works and Highways workers in preparation for the papal visit on January 15. NONIE REYES

8990 Holdings to launch fewer housing projects in 2015

By VG Cabuag

L

ow-cost housing developer 8990 Holdings Inc. will launch fewer projects this year, but the company will have more available units for sale as it ramps up its medium- and high-rise developments.

Based on the company’s plan, 8990 Holdings will have only eight project launches in 2015, down from 12 last year. However, available units for sale will reach 14,010 units, up from last year’s 11,574.

Most of its projects are in the key cities outside Metro Manila, the company’s plan showed.

Among the housing projects, which may be launched as early as this month, include the four-hectare Deca Homes in Tanza, Cavite; an 11.7-hectare project in Catalunan Grande in Davao; and a 25-hectare horizontal project in San Lorenzo, also in Davao.

These projects will be followed by the roll out of medium-rise projects in Muntinlupa

by April, and in Quirino, Davao, by June.

By October it will launch its 31.2-hectare development in San Mateo, Rizal. Another project will be rolled out in Talisay, Cebu, by December. The company’s last project for 2015 will be the Urban Tower in Yakal Street in Makati.

The San Mateo project will have the biggest number of units available for sale at 3,600; followed by the Muntinlupa development at 3,240; and San Lorenzo, Davao, at 3,125 units.

In total, these nine projects will eat up 79.4 hectares of the company’s 335 hectares

of land bank as of September 2014. Last year 8990 Holdings used up some 105 hectares of its land bank for its project launches.

Januario Jesus Atencio III, the company’s president and CEO, said the company may float at least P5 billion of either corporate bonds or secure bank credits during the first half of the year to increase its engineering capacity to build more houses.

Other proceeds of the float will be used for its land bank and development of projects and to retire some of its higher interestbearing loans.

“We want to expand our engineering capacity. That’s one of the things we want to spend on. Right now, I’m good for 10,000 units a year,” Atencio said.

He added that the company has the“habit” of accelerating project launches and the it can only do that if it has increased the capacity of its engineering by about 50 percent.

Most of its housing projects involve using precast materials, which, the company claimed, can build a housing unit in just eight to 10 days, much faster than the traditional building of a house brick-by-brick, which can take months.

“I’ve already increased the capacity by 33 percent in the third quarter [of 2014] from 8,000 units to 10,500 units. I need to increase to 15,000 units to be safe,” he said.

“I’m trying to hit it by the first quarter of next year. If not, at least I’m on my way,” he added. By the end of 2014, the company would have at least 7,500 units built, sold and delivered to buyers, roughly equivalent to P8 billion in sales.

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BIR clarifies rules for tax deduction claims from donations Kim jacinto-Henares said in a recent circular that charitable contributions may be subject to examination to determine their compliance with the conditions for which they have been granted tax exemptions or incentives.

By David Cagahastian

T

he Bureau of Internal Revenue (BIR) clarified that donations or gifts being claimed as deductions from the gross income of a taxpayer are subject to the bureau’s confirmation.

BIR Commissioner Kim Jacinto-Henares said in a recent circular that charitable contributions may be subject to examination to determine their compliance with the conditions for which they have been granted tax exemptions or incentives.

Henares issued Revenue Memorandum Circular 86-2014 to clarify the substantiation requirements needed to justify claims of charitable contributions as deductions to the gross income of a taxpayer.

The circular said donors claiming charitable contributions as deductions must submit a Certificate of Donation (BIR Form 2322), which contains a donee certification and a donor’s statement of values.

The donee certification indicates that the donee has received on the date indicated the subject donation, whether cash or property, and provides a description of the properties donated. It must be signed by an authorized representative of the donee organization.

The donor’s statement of values requires the donor to execute a statement, which provides descriptions, acquisition costs, and net book values of the properties donated, as reflected in the financial statements of the donor. It must also be accompanied by a deed of sale to prove the acquisition cost of the properties, which will be subject to confirmation by the BIR as to its correctness and accuracy.

Henares also said donee organizations, such as accredited nonstock and nonprofit organizations, charitable contributions which can be claimed as deductions to the gross income of the donor are still subject to examination by the BIR. “Under Section 235 of the National Internal Revenue Code of 1997 [Tax Code], the books of accounts and other pertinent records of tax-exempt organizations or grantees of tax incentives shall be subject to the examination by the bureau for purposes of ascertaining compliance with the conditions under which they have been granted exemptions or tax incentives, and their tax liability, if any,” the Circular said.

Under the Tax Code, charitable contributions to nonstock, nonprofit organizations, which are accredited by official accrediting entities as donee-institutions, are subject to limited or full deductibility from the gross income of the donor-taxpayer to determine his taxable income, subject to certain conditions. Such contributions may also be exempt from the donor’s tax, which is also subject to certain conditions laid down by the Tax Code and pertinent BIR regulations.

BSP. . . Continued from A1

differential versus the US that continues to be in our favor, should give us flexibility to keep rates steady or, if needed to support growth, even to cut rates,” Tetangco said.

In 2014 the central bank made full use of SDA interest rates, the deposit reserve ratio, as well as its overnight policy rates, to help moderate liquidity, or M3, growth to a “more normalized” level, and keep inflation within target for the year. Inflation peaked at 4.9 percent in 2014, or just a shade lower than the target ceiling of 5 percent for the period.

With the tightening measures in place, inflation moderated to 3.7 percent in November, but is expected to decelerate further in December 2014, according to various forecasts, including that of Tetangco himself.