BusinessMirror March 6, 2015

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

U.N. Media Award 2008

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A broader look at today’s business

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TfridayNovember 18,2015 2014Vol.Vol.1010No.No.14840 n Friday, March 6,

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

MULTILATERAL AGREEMENT REMOVING CUSTOMS RED TAPE SEEN TO HIKE PHL TRADE BY UP TO 8% ONCE IMPLEMENTED

PHL set to OK trade-facilitation pact

By Catherine N. Pillas

Asian casinos steal Chinese bettors away from Macau

T

he Philippines is ready to give its nod on the World Trade Organization (WTO) trade-facilitation agreement (TFA), which is seen to increase the country’s trade with the rest of the world by up to 8 percent once implemented.

“We are aiming to send our acceptance for [the agreement] in July 2015, and [it is] currently undergoing domestic processes,” Trade Undersecretary Adrian S. Cristobal told the BusinessMirror.

Member-economies have until July 31 to accept the protocol of amendment inserting the TFA into the WTO agreement.

Manila’s decision to approve the multilateral agreement is being backed by the World Bank Group, which said that the deal can improve intraregional trade in the East Asia Pacific by 4 percent.

Hans Shrader, senior program manager in the Trade and Competitiveness Global Practice of the World Bank Group, noted that the TFA will ultimately be a boon to the business community, which has long pushed for reforms within the customs office to remove red tape and streamline regulations.

“The TFA urges countries to publish relevant trade-policy requirements and fees in a nondiscriminatory and easily accessible manner; provide the right of appeal to border agencies’ administrative decisions; limit trade-related fees and charges to the approximate cost of the services

A

The poor condition of the Metro Rail Transit and other mass-transport systems in Metro Manila has proven to be ineffective in easing vehicular traffic on city roads, which is not the case in other countries, according to urban planner Felino A. Palafox Jr. Nonoy Lacza

PINOYS WASTE 28,000 HOURS IN ‘TRAFFIC’

By Cai U. Ordinario

A

n average Metro Manila resident wastes as much as 28,000 hours of his economic life because of heavy vehicular traffic caused by poor urban planning, according to one of the country’s top architects and urban planners.

Felino A. Palafox Jr., a founder of the Philippine chapter of The International Real Estate Federation (Fiabci) said that, on average, Metro Ma-nilaresidentsspend1,000hours

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PESO exchange rates n US 44.0840

on congested roads every year.

Residents of other countries with better urban planning, Palafox said, spend only 300 hours a year. This leaves as much as 700 hours wasted because of poor urban planning. “[Metro Manila residents] spend 1,000 hours a year in traffic, [while urban dwellers in] the better countries in the world spend only 300 hours in traffic. So, if you have 40 years of economic life, 40 years times 700 hours a year, [that’s how many hours you waste in traffic].

You’re like a prisoner inside your car or a prisoner inside jeepneys and buses,” Palafox said.

Palafox said one of the reasons Metro Manila residents spend this much time on the road is because there are no cost-competitive housing alternatives in business districts, like Makati City.

He added that the many gated communities, and even the military and police camps on Epifanio de los Santos Avenue, prevent these areas from being transformed into highdensity and affordable residential

areas. The expert said, ideally, the stations of mass-transport facilities, like the Metro Rail Transit, should be complemented by highdensity residential and business centers where employees and/or businessmen can live and work.

“Our trade and commerce [as well as] job [centers are] surrounded by low-density gated communities, like Makati. The average worker and even executive in Makati are priced out of the housing stock of Makati,” Palafox said.

See “Traffic,” A2

t the oceanfront Ramada Plaza hotel on South Korea’s Jeju Island, about a hundred Chinese gamblers huddle around felt-topped tables, wagering as much as 5 million won ($4,500) at baccarat. Shouts in Mandarin—“Beautiful!”…“Good!”— ring out, as bettors with winning hands slam their cards on the green tabletops.

Asian casino operators from South Korea to Australia are pulling in China’s gamblers, as the country’s corruption crackdown scares many away from Macau, the world’s biggest gambling hub. They are capitalizing on a downturn in the city’s gaming industry, which last month suffered its worst drop ever.

Operators, such as Paradise Co. in South Korea, are hiring Mandarinspeaking staff and offering VIP treatment, including free flights, limousines and hotel stays, to big spenders. Echo Entertainment Group Ltd. of Sydney and NagaCorp Ltd. in Cambodia cater to the junket operators who organize trips for Chinese gamblers with perks, such as higher commissions, lower taxes and private jets.

“Premium mass players can be recognized as VIP players and treated better than in Macau,” said Lee HyukByung, vice chairman of Paradise, in an interview in Seoul. “And we have other attractions in Korea, such as culture, fashion, food.”

Macau casino revenue fell last year for the first time and may decline another 8 percent this year, according to analysts surveyed by Bloomberg.

By contrast, South Korea and the Philippines will grow 16 percent and 33 percent, respectively, this year, gaining from the spillover of Chinese gamblers, Deutsche Bank analyst Karen Tang wrote in a note.

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n japan 0.3683 n UK 67.2810 n HK 5.6856 n CHINA 7.0299 n singapore 32.2440 n australia 34.5405 n EU 48.8318 n SAUDI arabia 11.7551 Source: BSP (5 March 2015)

News

BusinessMirror

Friday, March 6, 2015

A2

news@businessmirror.com.ph

PHL set to OK trade-facilitation pact tance” to the WTO, and only then will it apply but only to those who have agreed to it. So far, only Hong Kong, the US and Singapore have sent letters of acceptance for the TFA. The TFA is significant as it can re-duce trade costs and enhance trade flows between countries. The WTO estimates that the TFA could increase total world trade to $23 trillion from the current estimate of $22 trillion.

The Organization for Economic Cooperation and Development estimates that reduction in trade costs could range from 11.7 percent to 15.1 percent for lower-middle income countries, such as the Philippines.

T he agreement essentially simplifies customs procedures and requires customs reforms like transparency, a “single window” for all government agencies dealing with imported merchandise, automation, electronic payment of duties and the separation of the payment of duties from the release of cargo, among others.

There were fears that the customs’ plan to reinstall the pre shipment inspection (PSI) could prove to be a hurdle to the countr y’s TFAs commitment. This plan, however, hangs.

“We have to sign [the TFA] because, otherwise, we will be disadvantaged compared to other countries. We have to be open to this and try to be more competitive. Imports will increase, as well as exports; we’ll be able to tap other markets but others will get a share of ours as well—total trade can increase by 7 percent to 8 percent,” Dee said in a phone interview.

The TFA should be a stimulus for the domestic manufacturers to ramp up their competitiveness, as imports will also likely spike if the Philippines embarks on the move to ease trade regulations.

In December 2013, the WTO concluded negotiations on the TFA, part of the wider “Bali Package.”

T he orgtanization reached an impasse in July 2014 due to India’s concern over food security, but overcame the deadlock in November, when WTO members for ma l ly adopted the protocol for amendment. That development has opened the protocol for formal acceptance and ratification by individual members.

For the TFA to come into force, two-thirds of the WTO membership must ratify the agreement through submitting its “instrument of accep-

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rendered and minimize complexities of import export and transit formalities. These steps facilitate more efficient and, thus, lower cost to trade. This benefits both Philippine consumers of imports and Philippine exporters of goods,” Shrader said.

These reforms can, in turn, enhance the flow of goods and boost regional trade, the World Bank executive said.

“Properly implemented reforms should have the impact of reducing time and cost to trade. In the East Asia Pacific region, the World Bank Group sees that a 10-percent reduction in export time results in over 4-percent increase in trade. Reforms will also discourage corruption. We find that the longer it takes to get import or export permits, the higher the country ranks in a corruption index. However, cutting time, and potentially corruption, can result in over 10-percent increase in regional trade,” Shrader added.

Donald Dee, Philippine Chamber of Commerce and Industry COO and honorary chairman, pressed for the ratification, which can boost the country’s total trade by as much as 8 percent.

Trade Secretary Gregory L. Domingo, asked to comment on the matter last December, said it’s too early to say whether any roadblock will obstruct the country’s commitment to the TFA, but still welcomed the suspension of the PSI. Dee said the PSI will not be considered a nontariff barrier if it fulfills three conditions: it is made voluntary, it will be automatically accepted by the Bureau of Customs, and if the valuation methodology is clearly spelled out.

The TFA consists of a list of commitments (or “technical measures”) geared toward easing trade exchange and which must be adopted by the governments who accept them.

The WTO began accepting commitments from members since July 2014. Cristobal mentioned before that the Philippines has submitted over 30 of the 40 commitments in the agreement. As a developing country, the Philippines can choose which commitments to prioritize, and the implementation can be on a staggered basis.

Though a lot of the measures only apply to the customs administration, the majority of provisions apply to all border agencies that deal with trade in goods.

Apec finance ministers push Cebu action plan. . . investments; access to financial services by lowincome households, MSMEs and the unbanked; good governance that results to sustainable and inclusive economic growth; reduced risks arising from financial shocks, climate change and other natural disasters; rapidly growing financial markets with diversified financial instruments and risk-transfer facilities; and development of

quality infrastructure to sustain growth,” Tan said in his opening remarks at the start of the meetings on Thursday.

Tan cited the opportunities and the corresponding challenges the Apec member-economies are facing, such as population growth and the accelerating rate of urbanization in the region, as well as risks presented by natural disasters and

MARCH 6, 2015 | FRIDAY

TODAY’S WEATHER

Further, Palafox said other reasons for the many hours spent in traffic situations is the Philippines’s transportation policy that favors cars. He said other countries have already shifted their transportation policy to favor pedestrians who walk to work; cyclists who bike to work; and commuters who take mass transport.

Cars are often relegated as the least priority in terms of urban transport.

Palafox said ideally, one-third of urban centers should be allocated for trees and landscaping; one-third for pedestrians; and the rest for moving traffic.

“Unfortunately, our urban-transport policy favors the automobile and only 2 percent of Filipinos, I’m told, own cars; but our transport policy is for the automobile. Elsewhere in the world, the No. 1 form of transport is walking; No. 2 is bicycle, then No. 3 is the 15 kinds of urban transport.

The last option is the automobile,” Palafox said. To address some of these concerns, Palafox said the national government must come up with innovative solutions.

Palafox said some of these innovative solutions is asking the government and the residents of low-density gated communities and military and police camps to strike a partnership of opening some of the roads in subdivisions for public use

MAR 7 SATURDAY

quirements and ensuring high project quality.

It thus remains important for Apec economies to continue cooperation in infrastructure investment,” Tan said.

Finance Undersecretary Gil S. Beltran, who chairs the Apec Finance and Central Bank Deputies’Meeting in Tagaytay, explained which details need to be firmed up with respect to each of the

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four pillars of the Cebu Action Plan.

“The Cebu Action Plan is designed to power our shared future with the right foundations: the growing populations of our member-economies stand to benefit from a more open, transparent and resilient region with the infrastructure it needs to sustain inclusive growth trajectories,” Beltran said.

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at certain hours of the day.

He said the government, however, must provide the necessary security such as the provision of law enforcement and closed circuit television cameras for the safety and security of the residents.

Palafox also said the government must also shoulder the asphalt overlay of these streets as part of its efforts to help residents, as well as the military and police to maintain the quality of the roads inside these areas.

In terms of financing, Palafox said imposing congestion charges could support some of the funding requirements of these changes.

Palafox said these congestion charges can be collected from vehicles/automobiles entering Metro Manila through toll gates during rush hour. The costs may be double or triple the cost during off peak hours.

“Always, these good proposals, there are more benefits. When we put forward design solutions, planning solutions that [champion] the principles of green architecture, green urbanism, green infrastructure and so on, you spend a little bit more on the first three years on proper design and implementation, the next 97 years [will allow you to reap the] benefits,” Palafox said.

WEAK NORTHEAST MONSOON AFFECTING EXTREME NORTHERN LUZON (AS OF MARCH 5, 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 rain showers.

PUERTO PRINCESA CITY 25 – 31°C

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by future global economic shocks.

“Population growth and growing urbanization have also been a phenomenon observed in the region. This creates a greater requirement for infrastructure to sustain economic activity and preserve or improve the quality of life across economies. A common challenge in infrastructure development is meeting the financial re-

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Traffic. . .

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

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The Nation BusinessMirror

Suspected ASG land mine kills 3, injures 2 soldiers

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USPECTED members of the Abu Sayyaf Group (ASG) welcomed on Wednesday the visit of Armed Forces of the Philippines (AFP) Chief of Staff Gen. Gregorio Pio Catapang Jr. in Sulu by detonating a land mine that killed three soldiers, including two junior officers.

Six other soldiers were also wounded during explosion, according to newly installed spokesman and concurrent commander of the AFP Civil Relations Service, Brig.

Gen. Joselito Kakilala.

The attack happened while Catapang was in the province to get developments on the ongoing military operations against the local terrorist group, which he had earlier ordered pursued.

The chief of staff later proceeded to Maguindanao to also get reports from commanders on the ground about the success of the “all-out offensive” that he had ordered against the Bangsamoro Islamic Freedom Fighters (BIFF).

The soldiers, all members of the Army’s 32nd Infantry Battalion (32nd IB), were aboard three military vehicles and were on their way to Barangay Pansul, Patikul, at around 11:55 a.m., when their vehicle triggered a land mine. The public affairs office of the AFP identified the soldiers killed as 1st Lt. James Magbanua, Sgt. Niel Daez and 1st Lt. Emerson Somera. Magbanua was the commander of the Alpha Co. of the 32nd IB. According to former military Spokesman Col. Restituto Padilla, elements of the 32nd IB were also

securing a road construction projects at Barangay Pansul.

“It could have been the handiwork of the usual group, the ASG,” he said.

The military is currently conducting an operation against the ASG in Sulu following the orders of Catapang and Defense Secretary Voltaire T. Gazmin due to the spike of criminality, including kidnapping in the province that was attributed to the ASG. Kakilala said the military has already killed a total of 36 ASG members and wounded 78 others in Sulu since January this year.

Meanwhile, Padilla also said the operation against the BIFF and even against the Justice for Islamic Movement (JIM) will continue amid the efforts to bring back the families affected by the conflict to their homes.

The JIM, which is headed by former acting BIFF chief Ali Tambako, is not different from the BIFF, and it was only founded by Tambako because he had been removed from the BIFF leadership, according to Kakilala.

“It is one and the same group. It was only a product of rivalry between Tambako and Kagi Karialan, the chief of staff of the BIFF,” he said.

Tambako, a Cairo-educated Muslim scholar, is a nephew of Ameril Umbra Kato, the founder of the BIFF. Kakilala said all of the displaced families in Pikit, North Cotabato, have already returned to their homes, while 70 percent of the families who left their homes in Pagalungan, Maguindanao, have gone back to their residences. Rene Acosta

Editor: Dionisio L. Pelayo • Friday, March 6, 2015 A3

WHO starts campaign to end newborn deaths

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HAT does the newborn infant need shortly after birth? It’s the first embrace.

To help save more than 50,000 newborn lives, the World Health Organization (WHO) Region for the Western Pacific on Thursday launched its First Embrace campaign. The campaign, according to documents provided by the WHO, also aims of preventing hundreds of thousands of complications each year from unsafe practices in newborn care in the region.

Maria Asuncion Silvestre, pediatric neonatologist and president of Kalusugan ng Mag-Ina Foundation, said during the launch that “the first few minutes of the newborn’s life is very crucial.”

“Separation of the mother and child immediately after birth is an age-old practice. But it occurs during a crucial time, when babies are programmed to look for their mother’s breast in order to breastfeed,” Silvestre, a physician, said at WHO main

office in Manila.

Silvestre, who is also a WHO consultant, added that half of all deaths of children under-5 occur within the first month of life.

For this reason, First Embrace highlights early essential newborn care (EENC), which is a package of actions and interventions that address the most common causes of newborn death or disease, such as prematurity (being born too soon), low birth weight

and severe infection.

The campaign also seeks to engage the general public, health workers, policy-makers and civil society to champion EENC, the WHO documents said.

“We lose far too many newborn infants to preventable factors, such as disease” WHO Regional Director for the Western Pacific Shin Youngsoo explained.

“First Embrace addresses this challenge by urging women and health-care providers to take simple steps to protect babies during the crucial time immediately after birth.”

The WHO documents said the EENC is a series of simple and cost-effective measures designed to prevent newborn deaths by changing harmful medical practices. EENC can be performed in all birth settings without the need for complicated preparations or expensive technology.

The EENC begins with the first embrace or sustained skin-to-skin contact between the mother and child shortly after birth. This simple act, according to the WHO, transfers warmth, placental blood and protective bacteria and promotes exclusive breastfeeding.

Skin-to-skin contact should be followed by proper clamping and cutting of the umbilical cord with

sterile instruments. Breastfeeding then initiates naturally at feeding cues, such as drooling, tonguing, rooting and biting the hand. Early initiation of breastfeeding is especially important because colostrum, or the first milk, contains essential nutrients, antibodies and immune cells.

“Colostrum acts like the baby’s first immunization,” explains Howard Sobel, WHO regional coordinator for reproductive, maternal, newborn, child and adolescent health in the Western Pacific Region.

Other routine steps—such as the provision of vitamin K, eye prophylaxis, immunizations, complete examinations and weighing— should be performed after the first breastfeeding, according to Sobel.

These steps must be performed in proper sequence for maximum benefit, he added.

However, Sobel said health workers may be unaware of these relatively simple steps to protect newborns.

In addition, customs and beliefs among some communities and health-care providers may act as a barrier to full implementation of EENC. Changing practices requires a supportive environment and informed families and individuals that insist on best practices from health-care providers.

Claudeth Mocon-Ciriaco

Economy

A4 Friday, March 6, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Parts makers want perks included in auto road map

briefs mwss urged to protect public amid panel ruling

The Water for the People Network (WPN) on Thursday urged the Metropolitan Waterworks and Sewerage System (MWSS) to protect water consumers in the face of two different rulings made by the arbitration panels on the petition for rate increase filed by Maynilad Water Services Inc. and Manila Water Co. The arbitration panel disallowed Manila Water to pass on to consumers the costs of its corporate income tax, as well as declared the firm as a public utility. On the other hand, the arbitration panel that took charge of Maynilad’s petition for rate increase issued a ruling in favor of the water company.

WPN said the MWSS should clarify the next steps given the contradicting arbitral rulings.

According to WPN, it would be unfair to Maynilad consumers if the water firm asserts the arbitral ruling on its petition.

Maynilad has already demanded that the government pay the company P208 million in monthly “losses” due to the delay in the implementation of the arbitration decision. Jonathan L. Mayuga

steel importer charged by b.o.c.

THE Bureau of Customs (BOC) filed smuggling charges anew before the Department of Justice (DOJ ) against steel importer Stellant Corp. for allegedly trying to bring into the country P7.4 million worth of stainless steel sheets.

Charged were Stellant Corp.

Chairman of the Board Ricor Rigor Cayunda Cinco, board members Charmayne de la Peña Angeles, Maria Rhezy Llada, Ruge Robert Illada and customs broker Ruby Ballesteros as respondents.

They are facing charges for alleged violations of Sections 3602 of the Tariff and Customs Code of the Philippines (TCCP), as amended

by Republic Act 7651, and Article 172 in relation to Article 171 and Article 183 of the Revised Penal Code for the misdeclaration of six 20-foot container vans declared as “steel sheet piles.” Upon examination, the imports were found to be stainless-steel sheets, more expensive than the goods declared.

In January the Stellent officials and licensed broker John Philip Malinao Yap were also charged before the Department of Justice for trying to illegally import P14.3 million worth of steel angle bars. Joel R. San Juan

By Catherine N. Pillas

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TWO PRESIDENTS WITNESS ACCORD SIGNING

President Aquino and visiting French President Francois Hollande (standing, left) witness the signing of the business agreement for the management, operation and maintenance of the Subic-Clark-Tarlac Expressway. The business agreement was signed by Manuel V. Pangilinan (seated, left), chairman of Manila North Tollways Corp. and Metro Pacific Tollways Corp., and Arnel Paciano Casanova (seated, right), president and CEO of the Bases Conversion and Development Authority, recently at the Malacañan Palace. The concession term is for 29 years, or until October 30, 2043. Malacañang Photo

Change in charter will not affect Japanese ODA to PHL–Tokyo

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By Lorenz S. Marasigan

APANESE financial assistance to the Philippines will continue to pour in despite a policy change in its official development assistance (ODA) charter that was implemented in February.

The Japanese Embassy to the Philippines said on Thursday that Tokyo is supportive of the development goals of its Southeast Asian neighbor, so much so that it could increase its financial assistance, especially in budding development areas.

It also announced that its ODA program is now called official development cooperation, changing its policy from pure assistance to partnership.

“The change in charter, from assistance to cooperation, will not affect immediately the direct ODA to the Philippines because we understand that the Philippines is still in need of assistance,” the Japanese Embassy said.

In the long run, however, Japan will extend cooperation agreements, instead of purely granting financial aid. The partnership will not end until the Philippines has achieved inclusive growth and has achieved its goal of reducing poverty, if not eradicate it.

“Of course, in the far-away future, the Philippines will surely develop, then you will no longer need the ODA,” the embassy said. “But there is no intention to decrease Japan’s ODA but we can increase depending on the need.”

The ODA program has immensely benefited the Philippines in a wide range of priority areas, including maritime cooperation, peace building, governance, education, healthcare and construction and youth leadership training programs.

The East Asian country has been the top donor of the Philippines for several years now. The total assistance that Japan has been extending

to the Philippines is at ¥5.17 trillion as of end-2012.

In 2012 alone, Japan donated roughly ¥69.97 billion in a mix of grants, loans and technical cooperation.

The Japanese ODA assistance policy mainly revolves around the idea of aiding the Philippines to achieve inclusive growth. It has three priority areas, namely: to achieve sustainable economic growth through further promotion of investment, to overcome vulnerability and stabilizing bases for human life and production activity and to develop peace in Mindanao.

The international aid flow from Japan was responsible for the construction of big-ticket infrastructure projects in the Philippines, such as the Ninoy Aquino International Airport Terminal 2, the Subic-Clark Tarlac Expressway and the Arterial Road Bypass in Cabanatuan, among others.

ehicle parts makers urged the government anew to outline meaningful incentives under the yet-to-be-released Comprehensive Automotive Resurgence Strategy (CARS) for local parts makers to enable them to compete globally.

In a statement, the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) reiterated that for parts manufacturing in the Philippines to thrive, support must be given through the CARS Program.

The automotive road map spells out the fiscal and nonfiscal perks for auto players.

“Government support inclusive of fiscal and nonfiscal incentives is the main ingredient to spur the local auto-parts industry...but the support must also be extended to the OE [original equipment] assemblers to encourage them to locally assemble more new models or expand production capacities for models that already assemble locally. It is academic that whenever there is growth in local vehicle CKD [completely knocked down] assembly, parts makers ultimately benefit from it,” MVPMAP President Ferdinand Raquelsantos said in a statement.

These incentives will push local parts makers to take on better capabilities and technologies, which, in turn, make them more attractive for foreign businesses looking for partners here.

In a press statement, the MVPMAP said that for the local auto parts-manufacturing industry to survive, they need the joint ventures and technical agreements that foreign partners can provide.

Raquelsantos said that, with the Philippines hosting the Asia Pacific Automotive Dialogue, the opportunity is at hand to showcase the local auto industry’s capabilities.

Part of the objective of this regional dialogue, he said, is to identify roadblocks to the efforts of the small and medium enterprises (SMEs) to be part of the global value chain and ultimately become a Tier1 supplier.

“This early, government support in terms of providing industry incentives that would bring local SMEs at par with their competitors in the region is seen to be very critical and will play a major role in determining if we make it or not,” Raquelsantos added.

Historical tourism seen as Palawan’s new niche EU, DTI show stakeholders

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HE coalition pushing Palawan as a historical destination on Thursday expressed optimism that tourist arrival in the province will receive a significant boost once landmarks in the area are fully developed.

Rajah Travel Corp. Chairman Aileen Clemente, speaking on behalf of the coalition, said Palawan’s tourism goes beyond the underground river and its pristine beaches.

“We are trying to put together a tour package that will highlight lost historical pieces of Palawan and its contribution to the country’s liberation during World War II,” Clemente said.

She added: “While the United States army has recognized the importance of Palawan by naming one of the learning and training rooms in the barracks of its 41st Infantry Division in Oregon after it, a lot of Filipinos are still not aware of the heroism that happened there.”

According to Clemente, there is now an increased optimism within the coalition that historical tourism will provide at least a 10-percent boost for Palawan tourism after the Department of Tourism (DOT) 2014 data revealed an uptick in American and Japanese arrivals.

Among the historical tourism destinations in Puerto Princesa that have been pinpointed by the coalition are the World War II Memorial Museum, Plaza Cuartel, Mendoza Park and Iwahig Prison.

“The current efforts being done are toward re-

furbishing and restoring these places and improving the tourism infrastructure surrounding those areas. These are just places that are just waiting to be discovered,” Clemente said.

For 2014 American tourist arrivals grew by 7.14 percent to 722,750, representing the biggest increase from the top 5 Philippine markets, while Japan, with 463,744 tourists, had close to 10 percent of total arrivals last year.

Combined, the American and Japanese tourists spent P52.11 billion during their stay in the country last year.

Outside of American and Japanese tourists, Clemente also sees potential from the new air and sea connectivity talks between Brunei Darussalam, Indonesia, Malaysia and the Philippines.

More than 8,000 American and Filipino troops were involved in the liberation of Palawan along with the Palawan Fighting One Thousand Guerrilla Unit. There were also 139 American prisoners of war who were found burned inside Plaza Cuartel.

Aside from Rajah Travel Corp., others involved in the coalition are the DOT, province of Palawan, city of Puerto Princesa, the United States Agency for International Development, Palawan Chamber of Commerce and Industry and the Palawan Tourism Council.

The coalition will be staging the three-day event, “A Salute to Valor: Palawan-70 Years of Freedom,” in Puerto Princesa from April 21 to 23.

potentials of Region 10

By Butch D. Enerio | Correspondent

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AGAYAN DE ORO CITY—The Department of Trade and Industry (DTI) and the European Union, through its Trade Related Technical Assistance (TRTA) presented to local business leaders, media and other stakeholders the trade and investment potentials of the region in a roundtable discussion here on Thursday.

The EU-TRTA Project 3, which focused on the updates on the International Trade and Industry: Doing business in Free Trade Areas, underscored the opportunities of Region 10 in agri-industrial developments, shared-services facility projects and exports.

Trade Assistant Secretary Ceferino Rodolfo updated the attendees of the forum on issues and developments on the Asean integration. He outlined the limitations as well as the shared advantages among the 10 member-countries.

Linda O. Boniao, DTI Region 10 officer-in-charge, noted that northern Mindanao is the largest regional economy in the island.

“Access to technology and more sophisticated equipment will help small and medium enterprises in increasing their competitiveness and marketability,” Boniao said.

A6 Friday, March 6, 2015

Opinion BusinessMirror

editorial

Currency wars not for Philippines

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epending on who you listen to, the world is engaged in a global currency war. Alternatively, we are seeing the buying and holding of US dollars as a normal return to the safe haven, and the approval of the dollar as the global economy’s reserve currency.

Either way, the value of the dollar against the other major currencies, as measured by the US Dollar Index (USDX), is at the highest level since 2003. The USDX reached a high of 120 in 2001, and a low of 72 in 2008.

It is currently trading at around 96, coming higher from its recent lows in both 2013 and 2014 at around 79.

The fact that the major global currencies are falling against the dollar is probably not so much of a war, but a battle for economic survival.

After several years of the central banks—led by the US—pumping literally trillions of dollars into the global economy, nothing much productive has occurred.

The policy of the US was for the Federal Reserve to buy US government debt and, thereby, free the banks’ capability to loan to the private sector.

At the same time, interest rates all over the world were cut to near zero to encourage lending. But the banks did not loan and borrowers—primarily corporations—did not expand their businesses, but only inflated the price of their stock shares. The US stock market is up 122 percent, while the economy has only grown by 18 percent since 2009.

Now both Europe and Japan are on course to print their own currencies.

The last-ditch effort to increase economic activity is devaluing home currencies. Since the beginning of 2015, 21 countries have lowered their interest rates in such diverse economies as Romania, Canada, Japan and India. This was done hoping to increase export income and stimulate economic growth.

But to counter the effects of increasing inflation, the Bangko Sentral ng Pilipinas (BSP) raised local interest rates. The BSP could make this wise move, because the Philippine economy is growing. Unlike the other nations, the Philippines does not need a weaker peso. A stable peso is more important. Even with the dollar’s increase in value, the Philippine peso has maintained both value and stability without the BSP interference. The financial markets like owning the peso, because deposit rates are more attractive here than abroad.

The stability of the peso since June 2014, appreciating only about 6 percent, even as the dollar has appreciated 18 percent, shows the success of the policy moves the BSP has taken in the last 12 months.

As long as inflation stays contained, money-supply growth is reasonable and the peso remains stable, our “bromance” with the BSP will continue.

No bio, no ‘boto’ James Jimenez

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spox

HEN the current voter-registration period started in May 2014, the number of people without biometrics stood at 9.6 million. Today there are still 4.7 million people left who have not had their biometrics registered with the Commission on Elections (Comelec). These people need to get themselves validated.

Why validate? Obviously, the most important thing is that you won’t be able to vote in 2016, unless you have your biometrics in the system. And if you’re already a registered voter, the only way to make sure that your biometrics are in the the system (as they ought to be) is to have yourself validated.

Section 7 of Republic Act 10367 provides: “Voters who fail to submit for validation on or before the last day of filing of application for registration for purposes of the May 2016 elections shall be deactivated pursuant to this Act.” Of course, a person who has been “deactivated” remains on the list of voters, but he will not be able to vote. So, it won’t matter if you’ve been a regular voter, or even if you voted in the last elections. If you don’t validate before the deadline, you will not be able to vote in 2016. Truly no bio, no boto.

Apart from that, though, you can

also think of validation as one way of making a personal contribution to the improvement of Philippine elections.

One of the pillars of successful elections is a clean list of voters, and a clean list of voters is exactly what validation will produce. Validation, via biometrics, will ensure that each person has only one voter record. Multiple registrations—which cause bloated lists of voters, which, in turn, are used to mask vote fraud perpetrated by having people casting votes multiple times using multiple identities—will be eliminated. Flying voters, in other words, will become extinct.

In case you haven’t been paying attention to these kinds of things for a while, biometrics simply refer to those physical attributes which set one person apart from everyone else. No one looks exactly like you, and no one has the exact same set of fingerprints that

you do, except in the case of identical twins, but even then, the chances of a perfect match are too small to really worry about. Also, for the most part, no one can sign your name exactly the way you do—not even identical twins. Which is why when we speak of biometrics, we refer to your face, digitally photographed; your fingerprints, digitally taken; and your signature, directly captured by a computer via a signature pad.

Leveraging this fact that there are physical attributes that make you virtually unique, the Comelec’s Automated Fingerprint Identification System (AFIS)—and, yes, that’s the same AFIS you hear about on crime shows on television—compares your records against all other biometric records in the database, searching for a match.

If a fingerprint match is found, that means you’ve registered as a voter two or more times. Your picture and signature provide added confirmation.

Since the Comelec started implementing biometrics matching in the early 2000’s, there have been numerous records revealed to feature the same person—both men and women—registered under different names, sporting different hairstyles and wearing different clothes, all in an apparent effort to get on the list of voters as different people.

If it were not for AFIS, which was made possible by the gathering of biometrics, these nimrods would have

been able to vote more than once.

As an additional bonus, the Comelec’s validation drive will also result in the elimination of the names of deceased voters from the list. This means that the “votes” of these dead voters can no longer be used to conceal fraud, and that, hopefully, we can finally let all those cemetery jokes rest in peace.

So, even if you don’t care to vote, you still should consider validating in order to help make the system better for everyone else.

Keep in mind that in the National Capital Region and in highly urbanized cities, Comelec offices are open for validation from Sunday to Friday, from 8 a.m. to 5 p.m. In other cities and municipalities throughout the country, validation is from Monday to Friday, 8 a.m. to 5 p.m. Validation can also be done during satellite registrations, as may be announced by the local Comelec conducting the satellite registration.

You also need to be aware that the last day for validation is on October 31, 2015; that a person may only submit for validation at the local Comelec office where he registered to vote; and that a person does not need to present any identification in order to get himself validated.

As the advocacy group Lente once quipped: “Voting is like love. It needs validation.” True story.

James Jimenez is the spokesman of the Commission on Elections.

Opinion BusinessMirror

opinion@businessmirror.com.ph

The labor market and human development

Nudities in the neighborhood Tito Genova Valiente

Fernando T. Aldaba

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EAGLE WATCH

HE labor market is a distinct and unique market.

Nobel prize winner Amartya Sen asserts that “Work is a means to an end and an end in itself.” It involves the buying and selling of labor services that cannot be delinked from the human beings providing them. Labor market outcomes like employment and the wage rate are key factors for the attainment of human development.

“Governance of institutions and organizations become a strategic issue in the labor market as institutional failure also exists especially in developing. For example, the fragmentation of the labor movement weakens its collective voice. Bad corporate governance e.g. non-transparent financial condition undermines industrial peace as workers become more militant while government corruption siphons resources that may be used for creating jobs and upgrading human capabilities and skills.”

Poverty situations often arise from continued unemployment or underemployment with very low earnings. Because of the complexity of the market i.e. where you need to match various types of workers with specific jobs and firms and where the market transaction continues for a long time during the employment co ntract, market failures abound especially in developing countries like the Philippines. Consequently, when the labor market fails to function properly and when it does not adequately respond to the requisites of humane existence, institutions like government and the trade unions intervene in its workings.

Thus, it is not purely supply and demand that determine labor market outcomes but also the influence of these various institutions.

Asymmetric information problems also beset the labor market as firms are unable to determine the productivity of workers before and even right after they are hired. Thus, the role of education becomes important for firms as signals to the workers’ ability and future productivity as Michael Spence, another Nobel prize winner found in his paper. Aside from its “human capital” contribution, education serves as a relatively less costly screening mechanism for the firm. The same problem of information asymmetry gives rise to discrimination whether based on race, ethnic group, gender or age. For example, employers tend to favor male and relatively experienced workers because of stereotype notions on the female and young employees’ work habits whether based on fact or not.

Informational problems also give rise to “internal labor markets” where firms formulate rules on hiring, firing, promotions, compensation and other incentives.

In particular, firms choose to hire workers on the spot market for lower level or entry positions and prefer current employees to fill in posts at higher echelons. This occurs because they need to observe their worker’s productivity and work ethic over time before promoting them.

It is also possible that the “equilibrium” market wage for unskilled workers is so low that their survival becomes problematic. In other words, the market wage is way below the living wage. At the same time, an employment contract may also be onerous such that exploitation takes place. This happens because a labor contract cannot fully specify the responsibilities and corresponding remuneration of the worker under all situations.

Thus, there can be two possible scenarios. First, the workers organize themselves and form collective or-

ganizations i.e. unions to voice out their demands and protect their interests. Secondly, the state may mandate a minimum wage level that they deem to be reasonable for both the workers and employers. Or the government may create rules legitimizing the right of workers to organize and bargain collectively. In addition, the state may facilitate the provision of other non-wage benefits and impose labor standards through legislation and executive orders. These may include paid leaves and holidays, death and sickness benefits, retirement, pensions, social security, etc.

Aside from protecting the worker’s welfare, minimum labor standards are maintained because there can be productivity gains associated with a stable industrial relations climate and a fit workforce.

The labor market is replete with institutions that may facilitate or hinder employment, increase or decrease labor earnings, promote social protection, etc. Unions, the state, business organizations and the labor relations system itself play various roles in changing labor market outcomes either directly by affecting labor supply and demand or indirectly by influencing laws, policies and other rules. Such labor outcomes in turn are crucial in the attainment of human development. Unions historically were organized to protect the welfare of the working classes while government through the industrial relations system establish labor standards and social protection.

Thus, governance of institutions and organizations become a strategic issue in the labor market as institutional failure also exists especially in developing. For example, the fragmentation of the labor movement weakens its collective voice. Bad corporate governance e.g., nontransparent financial condition undermines industrial peace as workers become more militant while government corruption siphons resources that may be used for creating jobs and upgrading human capabilities and skills.

In a rapidly changing economic environment, markets and institutions need to operate smoothly not for efficiency alone but also to promote human development.

This is especially relevant for the labor market as outcomes affect the quality of life of individuals participating in it. In turn, human development particularly a happy and healthy workforce contributes to further sustain economic development as individual productivity increases.

Fernando T. Aldaba is professor of Economics in the Ateneo de Manila University and Senior Fellow of Eagle Watch.

Friday, March 6, 2015

annotations

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T has been awhile since some form of nudity alarmed my community. A party was held in the CWC, more commonly known as Cam Sur Water Complex (CWC) and a photo of a young Caucasian male. Naked. The photograph was posted by the Bicol Standard and immediately went viral. As usual, the wordings of about nudity are of the self-conscious variety indicating how the right hand of the man covers his private parts.

What are our private parts? Why not spell out those parts? If we do have problem with nudities, it is because we have problem as well with our own private parts. We cannot spell out penis and testicles; instead we hide behind labels like “his thang.”

I like to believe that nudity does not mean always sexuality. I also like to believe that going naked can be part of the celebration, the “wild” celebration. The discourse, however, for this issue is that if these foreigners (apparently, there were other naked people off the stage) should not bring their “immoral” acts to our country. This complicates matter because nudity and morality are two separate domains. Where they meet, some laws have been made to address the issues. Respect for those who love to show their bodies is more common now in many parts of the world. This brings us to the issue of

any person who strips naked? Does it make him immoral.

Removed from the resorts setting, there are other nudities in our communities. There are the naked dancers in clubs whose acts or performances, for some reason, elude scrutiny or escape the law. We only get to know the nakedness of these individuals when they are apprehended. Talk of the ideology of the Garden: Our First Parents did not know they were naked until they ate of the Fruit of the Tree of the Knowledge of Good and Evil. That was then in Paradise.

Outside Paradise, we assume the naked man and woman to be knowledgeable of their nudity and its impact of society. Given the hands raised to capture the moment, the people in CWC were not offended at all with the sight of the naked man. Amused perhaps; totally amused maybe.

Nudity can be funny. Remember the 70s when nudity became part of some new forms of theater and musical. Oh! Calcutta!, which had an all-naked cast. There were other attempts to repeat the Kenneth Tynan’s avant-garde until people got used to nudity on stage. Peter Shaffer’s Equus uses nudity to indicate the return to the primal urges and roots of its protagonist. Intellectual with the nudity searing the narrative for its metaphor of cruelty and redemption, Equus tells us that nudity or nakedness has a greater value than being a metaphor.

How to deal with these new nudities in our neighborhood? We cannot forever ethnicise the tendency to go naked or the predilection to display the body. We have our own share of ethnicities favoring nudity as their identities for protest and celebration.

Go to the Cordilleras or be part of the Oblation Run and the many fun runs it has spawned.

It always amazes Filipinos to know that for the Japanese, nudity is not erotic. Thus, in shunga or Japanese illustrated books depicting sexual practices of theater actors, courtesans and monks, the men and women are deshabille rather than devoid of their clothing.

Amazing how a naked body can stir a community to bring up issues of morality and condemnation in hell.

Amazing even is how one person (assuming that the photo is really about one person going naked) can trigger a fear that the foundation of our com-

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munity is crumbling. The problem with this obsession about foundation is that we do not have a notion of what makes our society stronger or weaker. There is a nakedness in the direction of our government but we are not shocked by it.

There are naked children walking about and there is no innocence at all in their appearance. There is shocking poverty and hunger in those thin bodies. If you are aroused by them then pedophilia certainly becomes a crime.

There are houses along dirty canals and under the bridges that are naked of the basic good things that make a home. And yet, we do not see them at all.

Mark Twain is it who spoke about how clothes make a man? In that quote, he also talked about how naked people have little or no influence on society. We can rephrase that and say naked people can influence us to rethink about how we can use our body to counter the ills of this society, to make a social commentary on what we should have as human groups but we never get because governments are dressing up themselves in gross wealth and affluence.

Let it be said that when we go naked, in euphoria or in disgust, we do not necessarily bare our soul but display our shortcomings. This line is not even original because I like to stand before you naked with my sincerity.

E-mail: titovaliente@yahoo.com

PRA says current directors have integrity; allegations being addressed in courts MAIL

Please e-mail your letters to the editor to opinion@businessmirror.com.ph.

Letters chosen for publication in this section are edited for brevity and clarity.

Your news article published on 20 February 2015 entitled “PEA, private firm’s execs face P41-billion plunder raps” by Joel R. San Juan suggested that the Office of the Ombudsman had filed a plunder case against the current Board of

Directors of the Philippine Reclamation Authority (PRA).

However, this piece failed to note the following: 1. Whether the Ombudsman had determined probable cause to warrant the filing of any case against the PRA or its Board members on the basis of a complaint raised by the United Filipino Consumers and Commuters (UFCC) and Water for All Refund Movement (WARM).

Neither the PRA nor the individual Board members have received an order or a copy of the complaint from the Ombudsman; 2. That the 1988 sale transaction entered into by the Public Estates Authority (now PRA), which gave rise to the complaint filed by UFCC/WARM, is the subject of an intercorporate dispute, which is

already in the courts; 3. That at the time when Uniwide Sales Realty and Resources Corp. came out with a paid newspaper advertisement appealing, for the first time, to the present PRA Board and Management to take back the property sold to the Manila Bay Development Corp. (MBDC), there was already a pending civil case against MBDC and PRA on the same issue, which thus prevented the PRA Board from taking action; 4. That since the original transaction 27 years ago, the composition of the PRA Board has changed several times under the last five administrations; and 5. That the current members of the PRA Board assumed office only in 2010 or later.

Such carelessly written article

raises the suspicion that it was intended to damage the integrity and credibility of the PRA and its current Board members. The misleading and damaging story has later also surfaced in other publications and in social media. We are now consulting with lawyers on the action we must take to obtain appropriate redress for the PRA and its board members.

In the meantime, we ask that you give this statement the same space and prominence given to the original article in your publication. This would be a welcome, if inadequate, sign that the article did not maliciously intend to defame the PRA and the current members of its board.

Atty. Arnold C. Moralejo Acting Corporate Secretary

2nd Front Page BusinessMirror

A8 Friday, March 6, 2015

BSP: Oil shift may alter path of inflation

By Bianca Cuaresma

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t is as if the Bangko Sentral ng Pilipinas developed in a single day a sense of anxiety over where inflation was headed near term as the rate of change in prices averaged higher in February to 2.5 percent.

The February price survey result proved a wee bit higher than inflation in January when this averaged only 2.4 percent. Nevertheless, the uptick broke a five-month downtrend.

Compared to its year-ago level, the February 2015 inflation represented a deceleration from the 4.1 percent inflation reported last year.

The PSA traced the uptick to higher prices of certain food items in February 2015. This had a significant offsetting impact on the declining price of oil for the period.

Still, the February inflation print was within the forecast range for the month of 2.2 percent up to 3 percent. This was also within the government inflation target for the year of 2 percent to 4 percent and within market expectations.

BSP Governor Amando M. Tetangco Jr. betrayed a sense of apprehension over the path of inflation down the line, saying future reversals in oil prices could cause price instability in the country.

“While we see the stance of policy still appropriate at this time, we continue to watch global developments, including strong reversals in oil price trends and changes in investor sentiment,” Tetangco told reporters in a text message.

www.businessmirror.com.ph

El Niño, power problem threaten inflation goals

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By Cai U. Ordinario

he possible occurrence of the El Niño phenomenon and a looming power shortage this year may cause commodity prices to spike in the immediate term, according to the National Economic and Development Authority (Neda).

Neda Director General and Socioeconomic Planning Secretary Arsenio M. Balisacan said the lingering possibility of El Niño occurrence in the first quarter of 2015 poses risk of faster inflation within the immediate term.

“Programs to increase productivity and ensure the sufficiency in the supply of key commodities are needed. Likewise important is addressing the looming power woes and creating better logistics-supply

BALISACAN: “Programs to increase productivity and ensure the sufficiency in the supply of key commodities are needed.”

chains to reduce production and transport costs,” Balisacan said.

In February Balisacan said higher transportation costs increased the country’s average inflation rate to 2.5 percent.

The Neda chief said higher transport costs were due to higher oil prices. In Metro Manila commuters also felt the increase in Metro Rail Transit and Light Rail Transit fares.

“The recent increase in oil prices was the result of cutbacks in the production and exploration of international energy firms triggered by soft oil prices. Outlook for prices in the medium term, however, remains modest, given a backdrop of strong world crude-oil supply growth and weak global demand,” Balisacan said.

Balisacan noted that inflation in February was slightly higher than the 2.4 percent posted in January.

However, the February inflation rate was still lower than the 4.1 percent posted in February 2013.

The Neda also noted that the

average inflation rate for February was within market expectations and the 2-percent to 4-percent target set by the government for 2015 and 2016. Balisacan added that moderate increase in commodity prices was due to the normalization of supply chain and relatively stable peso in the first two months of 2015.

“There were no new major economic shocks, such as adverse weather conditions. The supply chain also normalized, partly due to the easing of port congestion. The peso, likewise, remained relatively stable due to the country’s strong external position,” Balisacan said.

Philippine Statistics Authority (PSA) data showed housing, water, electricity, gas and other fuels posted a year-on-year contraction of 1.1 percent in February 2015, from an annual drop of 2.1 percent in January 2015. However, compared to a year ago, February inflation was significantly higher at 3.6 percent.

Food inflation continued to decelerate in February 2015, from 5.6

percent to 4.9 percent, reflecting softer upward adjustments in the price indices of rice, meat and vegetables. Inflation for rice continued to ease in February 2015, due to more favorable supply conditions and lower farmgate prices.

Balisacan noted that the favorable outlook on the production of agricultural commodities, particularly palay and corn, should further ease local price pressures in the coming months.

PSA data showed that inflation in Metro Manila rose to 2.2 percent in February. A 1.5-percent growth was noticed last month and 2.8 percent in February 2014.

Data showed the higher annual growths were displayed in food and nonalcoholic beverages, and transport indices. Inflation in areas outside of Metro Manila, however, continued to move at a slower pace, at 2.6 percent in February. Inflation was seen at 2.7 percent last month and 4.5 percent during the same period a year ago.

APEC FINANCE MINISTERS PUSH CEBU ACTION PLAN

By David Cagahastian

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inance officials from membereconomies of the Asia-Pacific Economic Cooperation (Apec) poured their collective energy on pursuing the socalled Cebu Action Plan that treats inclusive growth as effective tool to address poverty.

The discussions focused on providing credit access to low-income households, micro-, small- and medium-sized enterprises (MSMEs) as well as the “unbanked.”

At the Apec Finance and Central Bank Deputies’ Meeting which runs until today, Friday, in Tagaytay City, outlined the key pillars of the Cebu Action Plan, namely: promoting financial integration;

advancing fiscal transparency and policy reform; enhancing financial resiliency; and accelerating infrastructure development and financing.

National Treasurer Roberto B. Tan said the discussions will focus on the details on how the four key pillars of the Cebu Action Plan could be realized among the Apec member-economies.

“Our vision is that with the Cebu Action Plan being a key agenda in the Apec Finance Ministeºrs’ Process beginning this year, we can forge an Apec community that has: harmonized policies, rules and practices that enable and facilitate free trade and free flow of cross-border Continued on A2

Asian casinos steal Chinese bettors away from Macau Continued from A1

Plastic surgeons President Xi Jinping has urged Macau, the only place in China where casinos are legal, to diversify from gambling. Macau’s government imposed more scrutiny over junket operators, as mass-markTet gambling also weakened amid China’s economic slowdown, and new restrictions on visas and cigarette smoking.

“The anticorruption measures are discouraging some people from traveling to Macau, and, as a result, we are seeing a slight shift in travel from Macau to other destinations,” said Aaron Fischer, a Hong Kong-based analyst at CLSA Ltd. “Vietnam and the Philippines will likely benefit, as they are the closest. Korea will pick up people in the northern parts of China.”

Gamblers who bet at least $50,000 at Paradise’s casinos qualify for freebies usually available only to VIP players, Lee said. In Macau the minimum needed to get similar perks from junket operators is about $500,000, according to CLSA data. The company also draws Chinese gamblers to the celebrity-obsessed country by touting its pop culture and offering recommendations of top Korean plastic surgeons, Lee said.

Operators have more risqué offerings, too. A gambler who exchanges 300,000 yuan ($48,000) worth of chips can receive free flights to Jeju, tours with a Mandarinspeaking guide, and the companionship of a “third-tier” Korean actress or model, according to an e-mailed brochure from Shanghai-based tour operator CNS. A CNS travel agent, who would only give her name as “Xiao Qi,” confirmed the services when contacted by phone.

Shanghai and Shenyang

It’s illegal for foreign companies to advertise casino

operations in China and Paradise avoids public solicitations, Lee said. Its staff reaches out to high-stakes gamblers recommended by existing customers and makes frequent trips to major Chinese cities, including Beijing and Shanghai, he added.

Companies are able to sidestep China’s ban on casino marketing by advertising nongaming aspects, such as a concert or entertainment show held on its venue, said Grant Govertsen, an analyst at Union Gaming Group in Macau.

“Junket operators own restaurants, night clubs, they sponsor golf tournaments and other getaways,” Govertsen said in an interview. “There is plenty of stuff a junket could advertise in a mass-market sort of format.”

Still, foreign operators’ efforts to attract China’s gamblers have caught the notice of local authorities, which announced last month a crackdown on representative offices that “attract and recruit Chinese citizens” to casinos.

Peking duck

Manila’s members-only Signature Club in Melco Crown Entertainment Ltd.’s City of Dreams casino has entrance signs in both English and Chinese, while Mandarin-speaking staff direct guests to cashiers, shops and restaurants. The neighboring Solaire Resort and Casino, owned by Bloomberry Resorts Corp., has suckling pig and Peking duck on the menu, catering to Chinese palates.

“There are a lot of excuses to go to the Philippines; we always promote the Philippines not on the casino but the whole package,” Cristino Naguiat, chairman at gaming regular Philippine Amusement and Gaming Corp., said in an interview. Bloomberg News