Businessmirror may 10, 2015 by BusinessMirror

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

n Sunday, May 10, 2015 Vol. 10 No. 213

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Hopes to improve MRT 3 fading

week ahead

ECONOMIC DATA PREVIEW

Peso

n Previous week: The peso depreciated in the first week of May compared to the last week of April this year. The local currency opened the week’s trade at 44.61 to a dollar, which then appreciated back to 44.585 and 44.54 on Tuesday and Wednesday’s trade, respectively. Thursday’s trading saw the biggest slump in the value of the peso, which lost 17 centavos to hit 44.71 to a dollar. The peso ended the week at 44.615 to a dollar. The total traded volume is at $3.438 billion. The average value of the peso to a dollar during the week is at 44.612, weaker than the 44.34 seen in the previous week. n Week ahead: The peso will likely hit further depreciation in the coming week, Bank of the Philippine Islands (BPI) told its clients. “For the peso, we expect that sustained net foreign selling could potentially drive the currency further down,” the BPI said.

Factory output (March)

May 12, Tuesday n February: The Philippine Statistics Authority (PSA) reported last month that the volume of production index slowed down in February this year at 4.4 percent. The main drivers of growth in February were likely due to the improved performance seen in leather and tobacco products, printing, basic metals, beverages, textiles, nonmetallic mineral products, wood and wood products, and paper and paper products.

See “Outlook,” A2

By Lorenz S. Marasigan

LOWLY, investors are losing appetite on developing the Metro Rail Transit (MRT) Line 3, as the government keeps its doors closed from so-called unsolicited proposals from the private sector. For one, conglomerate Metro Pacific Investments Corp. has seemingly shelved its plans of exercising its options—essentially, versatile securities—in MRT Corp. (MRTC), the owner of the train line’s assets. The company’s chief officer, tycoon Manuel V. Pangilinan, said the chances of modernizing the most congested overhead train line in Metro Manila—at least on his group’s end—have already been lost. “I think the chances of an MRT 3 [acquisition] are nil to zero,” he said. “We couldn’t do anything.” The conglomerate is proposing to shoulder the upgrade costs of the train system and release the government from the bondage of paying billions of pesos in equityrental payments. Pangilinan’s group, which earlier entered into a partnership agreement with the corporate owner of the MRT, intends to spend $524 million to overhaul the line. The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. The multimillion-dollar expansion plan would double the capacity of the line to 700,000 passengers a day, from the current 350,000 passengers daily.

It was submitted in 2011, but the transportation agency’s chief back then rejected the proposal. The flagship of Hong Kongbased conglomerate First Pacific Co. Ltd. has a 48-percent option in MRTC. Another investor, according to a source, is still pushing for its bid to develop the train line. Representatives of German companies Schunk Bahn- und Industrietechnik GmbH and HEAG Mobilo GmbH have met with top transport officials to push a bid for the MRT, the source said. The European companies are seeking to place the whole train system under a massive transformation program to augment its capacity and to provide a safe and comfortable travel to commuters from the northern and southern corridors of Metro Manila. The P4.64-billion proposal, submitted in February with Filipino partner Comm Builders and Technology Phils. Corp., calls for the complete overhaul of the 73 light-rail vehicles of the MRT; the replacement of the rails; the upgrading of the line’s ancillary system; the upgrade of the track circuit and signaling systems; the modernization of the conveyance system; and a three-year maintenance contract. See “MRT 3,” A2

Bodies of diplomats killed in Pakistan crash reach capital

Culture of dependence, entitlement affects investment habit of Pinoys By Roderick L. Abad

HE low investment rate in the Philippines could somehow be attributed to its culture and people’s mind-set, an executive of Registered Financial Planner Institute Philippines (RFPIP) said. RFPIP Director Randell Tiongson told the BusinessMirror that close family ties and the idea of entitlement to the support of the provider among Filipino households have passed on through generations that led to their dependency to one another. “What’s happening now is that there is a high culture of dependence,” he said. This, he noted, is evident in RFPIP’s annual Investment Conference (ICON), most of whose at-

tendees here and abroad are bread winners themselves. Whether single or married, 80 to 90 percent of local participants and almost 100 percent of overseas Filipino workers still financially support their parents or siblings and even their dependents. “That’s a sign that most Filipinos don’t prepare for their future,” he said. This is apparent in the most recent study by Sun Life of Canada two years ago, showing that only a fifth of the entire populace has secured its future, as seen from the mere 20 percent availing themselves of life insurance. It would be also interesting to note that most Filipinos do not have bank deposits or savings accounts. Citing Bangko Sentral records, Tiongson said the Philippines has a low savings rate compared with its regional peers, with only 36 million people owning bank accounts,

PESO exchange rates n US 44.6500

TIONGSON: “It’s a good time to start investing, given the country’s flourishing economy.”

Smoke rises from a fire at the site of a helicopter crash that killed the ambassadors to Pakistan from the Philippines and Norway and the wives of the ambassadors from Malaysia and Indonesia in Gilgit, Pakistan, on Friday. The diplomats and diplomatic spouses were among seven people killed when a Pakistani army helicopter carrying foreign dignitaries crash-landed in the country’s north. Maha Mussadaq/The Express Tribune via AP

of whom 33 million have deposits of less than P5,000. “Of course, when we have low savings rate, it follows for investment,” he said, while noting that less than 10 percent of the country’s 110 million population today is into investing. It is not because there is not enough money to save, but rather due to the lack of financial literacy. Rather than saving or investing, Tiongson said technology-savvy Filipinos could not resist the temptation of spending for shopping. See “Investment Habit,” A2

UZBEK.

Ambassadors killed in a helicopter crash

TURKMEN.

Kabul AFGHANISTAN

Naltar Islamabad

PAKISTAN

INDIA

New Delhi 200 km Graphic: TNS Source: AP

200 miles

SLAMABAD—The bodies of those killed in a Pakistani helicopter crash, including ambassadors from the Philippines and Norway and the wives of the ambassadors from Malaysia and Indonesia, arrived at a military base on Saturday near the capital, Islamabad. State-run Pakistan Television showed Pakistani officials and the country’s army chief, Gen. Raheel Sharif, saluting the flag-draped coffins of the four foreigners, as

well as the three crew members killed in Friday’s crash. Twelve people who were injured in the crash also arrived at the military base outside of Islamabad in a C-130 plane. Pakistan’s Foreign Secretary Aizaz Chaudhry told Pakistan Television the bodies of the foreigners would be flown to their countries by planes in the next two or three days, as family members of the dead were coming to Pakistan. See “Pakistan Crash,” A2

n japan 0.3728 n UK 68.1493 n HK 5.7585 n CHINA 7.1936 n singapore 33.5160 n australia 35.3579 n EU 50.3250 n SAUDI arabia 11.9064 Source: BSP (8 May 2015)

News

BusinessMirror

A2 Sunday, May 10, 2015

Pakistan crash...

continued from A1

A Pakistani army helicopter crashed on Friday on its way to an inauguration at a resort in the country’s north, killing four foreigners—ambassadors to Islamabad from the Philippines and Norway, as well as the wives of the ambassadors from Malaysia and Indonesia—and a three-member crew in what was one of the worst such incident in the country involving a high number of foreign dignitaries. The air force said a technical failure caused the crash while Prime Minister Nawaz Sharif, who was flying to the same event on a separate aircraft, declared Saturday a day of national mourning. Twelve passengers, many of them diplomats, who were injured in the crash were being treated at a local hospital, officials said. The Philippine Department of Foreign Affairs said it was “deeply saddened” by the death of Ambassador Domingo Lucenario Jr., and that his colleagues in Manila observed a two-minute period of silence in commemoration. Lucenario, 54, also served as non-resident ambassador to Afghanistan, Kyrgyzstan and Tajikistan. He is survived by his wife and three children.

K to 12...

Norwegian Foreign Minister Borge Brende confirmed the death of Ambassador Leif H. Larsen, describing him in a statement as, “a well-liked and highly respected colleague. His friends and colleagues in the Foreign Ministry and across our foreign stations are today in sorrow.” Larsen, 61, is survived by a wife and a son. Malaysia’s foreign ministry confirmed that the wife of its high commissioner to Pakistan perished in the crash. The high commissioner Hasrul Sani Mujtabar survived the incident and is currently being treated at the Gilgit hospital, it said. Romania’s ambassador to Pakistan, Emilian Ion, was on the same helicopter and survived, the Romanian Foreign Ministry said. Pope Thrower, assistant spokesman for the US Embassy in Islamabad, said that “no American Embassy personnel participated in this trip.” Hours after the crash, Indonesia’s Minister of Foreign Affairs Retno Marsudi confirmed in Jakarta that Heri Listyawati, the wife of Indonesia’s ambassador, was killed while her husband, Burhan Muhammad, survived with injuries.

In Poland, the Ministry of Foreign Affairs said in a new statement that the Polish Ambassador Andrzej Ananicz and his wife, Zofia, were on board the helicopter and that “both suffered injuries, which were not life-threatening.” Hussain Khan, a police officer at the crash site Naltar, said he saw the helicopter stall in midair, then come down in an erratic manner as if the pilot had no control over it—then plunge to the ground. “The helicopter was preparing to land on a helipad near a school, when it suddenly... crashed and caught fire,” Khan told the Associated Press over the phone from Naltar. Security forces scrambled to rescue survivors and transport the dead and injured to a nearby hospital, Khan added. Hours after the crash, the Pakistani Talban issued a statement claiming they had shot down the helicopter with an antiaircraft missile. The claim, though impossible to independently verify, appeared to be an opportunistic attempt to take responsibility for such a high-profile incident. Pakistan’s Foreign Secretary Aizaz Chaudhry dismissed the claim as “bogus.”

hardly send their children to school, and leave thousands of college professors jobless because of absence of enrollees in the next two years. Nograles said that, while there could be some basis for the concerns raised by those opposed to the K to 12 Program, the country is now in danger of losing its competitive edge in terms of producing skillful professionals because of an outdated educational system. “Many countries in Southeast Asia are fast catching up with the Philippines in terms of producing well-rounded professionals. We are slowly losing our competitive edge because many of our graduates are still ill-equipped, even after graduation,” he said.

To complement K to 12, Nograles said that Congress should enact laws that provide adequate training and exposure in the workplace for first-time job seekers, parttime students and student trainees, such as his proposed House Bill Jobstart Law. This would institutionalize the “Jobstart Philippines Program,” which was initiated by Dole, in partnership with the Asian Development Bank, to better prepare first-time job seekers with the needed skills to assume full-time jobs. The proposed Jobstart Program seeks to provide jobseekers, student trainees and part-time students the needed training and work exposure in an actual workplace, while getting in the process by way of training allowance.

continued from A8

Last week, Sen.Antonio Trillanes IV and Party-list Representatives Francisco Ashley Acedillo and Gary Alejano of Magdalo asked the Court to issue a temporary restraining order (TRO), or a writ of preliminary injunction, to stop the implementation of the K to 12 Program. House Committee on Labor Chairman and Liberal Party Rep. Karlo Alexei Nograles of Davao said there is no need to scrap the K to 12 law, as long as this will be supplemented with legislations that can provide undergraduates the opportunity to be self-sufficient, after finishing senior high school. Nograles made this position amid calls to stop the implementation of the K to 12 Program, claiming that it will only make life even more difficult for parents who can

news@businessmirror.com.ph

MRT 3...

Outlook...

continued from A1

On the other hand, the group of businessman Robert John L. Sobrepeña is proposing a separate way of fixing the problems of the ailing train system. His group is proposing to do a “quick fix” solution to make the train system safe for public transport. Together with foreign firms Sumitomo Corp. of Japan and Globalvia Infrastructuras of Spain, Metro Global Holdings Inc. is proposing to “fix” the ailing system through a $150-million investment that involves the procurement of a total of 96 new train cars, and the rehabilitation of the existing 73 coaches, increasing its capacity by fourfold to 1.2 million daily passengers. Under the proposal, a single point of responsibility will be implemented: meaning the rehabilitation and the maintenance of the line will be handled by a single company. The government, meanwhile, is slowly modernizing the line by auctioning off contracts that specifically address the problems of each component. The state is coughing up P9.7 billion to overhaul the MRT. The complete makeover is expected to be done within the term of President Aquino. It also wants to buy out the corporate owner for P54 billion.

continued from A1

n March: In its latest Asia-Pacific Economic Data Preview, Moody’s Analytics, research arm of the international credit watcher Moody’s, said that Philippine industrial production likely ticked up a notch in March this year to 5.2 percent. “Domestic demand is going strong and should lift food manufacturing, the largest component of the industrial production survey,” Moody’s Analytics said.

Monetary policy

May 14, Thursday n Previous monetary policy: The Bangko Sentral ng Pilipinas (BSP) delivered a widely expected move last monetary-policy meeting, keeping all policy rates unchanged and other policy tools such as interest rates in its special deposit facility and deposit reserve ratio of banks unmoved, as well. In particular, for the fourth consecutive time, the Monetary Board decided to keep the overnight borrowing or reverse repurchase rate at 4 percent and at 6 percent for the overnight lending or repurchase facility. The interest rate on the special deposit account facility was also kept steady at 2.5 percent and the reserve requirement rates at 20 percent. n Upcoming monetary policy: The BSP is likely stand pat again and maintain all policy rates and tools in the upcoming meeting. Earlier, BSP Governor Amando M. Tetangco Jr. said that the low inflation print in April proved that their current monetary-policy settings are still appropriate. Other economists also see the BSP keeping rates on hold, but likely to remain vigilant for the upcoming developments outside the country. Bianca Cuaresma

Investment habit... In the recently released Consumer Finance Survey of the BSP, most of those surveyed revealed that they opt to invest their money on household appliances, motor vehicles and jewelries. While some have put their money in real estate, insurance and bank time deposit, only a minuscule percentage owns bonds, stocks, mutual funds and other financial instruments. Given the country’s flourishing economy, he said that it’s timely to invest in these investment tools where money grows. All they need is a portion of their income and financial education to manage well their finances. To equip them with the knowledge and tools they need to get started in making the right investments and financial choices, Tiongson is, once again, organizing and leading anew the ICON at the SMX Convention Center in Pasay City on May 30.

continued from A1

This year’s conference will be participated in by the best speakers and advocates in the field of investing, including lecturer, inspirational speaker and author Francis Kong; stock market trader and author Marvin Germo; global investing advocate, personal speaker and finance coach Jess Uy; economist and Ateneo de Manila University Prof. Alvin Ang; financial adviser, author and founder of Personal Finance Advisers Philippine Corp. Efren Cruz; radio host, wealth coach and author Chinkee Tan; and Sun Life Financial’s Managing Director (Asia) Michael Manuel. “The effect of culture of dependence and entitlement is generational, so we need to correct it,” Tiongson said. “With ICON, basically, we want to teach Filipinos the basics of investing. At the same time, we want them to realize that it’s a good time to start investing, given the country’s flourishing economy.”

Mothe

A BusinessMirr

A4 Sunday, May 10, 2015 | www.businessmirror.com.ph

HONORING THE MOST UNSELFISH WOMAN IN THE WORLD

By Abby Gayle Abbu

HERE is one special holiday that is always celebrated in May. It celebrates and honors the unselfishness and the wonderful life of someone who is greater than any superhero.

Inay, nanay, mama or mommy— these are but a few of the appellations we call our mothers. Whatever we decide to call them, it points to the woman who has always been there for us. They are our go-to person when we have problems in school, at work and in our personal life. She was there when we took our first steps as a child and when we walked up the stage for our diploma. She is our constant supporter and our very own cheerleader. One greeting-card company described a mother’s role in the family as similar to that of a firm’s director of operations. The job heavily requires a person to have mobility, as well as excellent negotiation and interpersonal skills, and fortunately, our mothers have these abilities. What is more surprising is that mothers also possess knowledge and skills far greater than what they have acquired in schools. They are capable of doing multiple things at once. All mothers, and even mother figures, have the most important and toughest job in the world. They work 24 hours a day, seven days a week, without getting anything in return. More often than not, they don’t take breaks and are even willing to give up even their own lives for the sake of their families. Without our moms, we wouldn’t be who we are today. They are the women behind our every success. As the Celine Dion song goes, “I’m everything I am because you loved me.” In the Philippines all mothers are acknowledged as the ilaw ng tahanan, or literally translated the “light of the home.” This Filipino idiom describes mothers as the light that brings warmth and comfort to their families by caring for them in

the best way possible. According to an article, this maternal sacrifice is highlighted in another popular Filipino saying: “Ang ina, isusubo na nga lang, ibibigay pa sa anak,” loosely translated as: “A mother will even be willing to give her child food she is about to put in her mouth.” Unselfishness is the natural state of motherhood. When one becomes a mother, she is no longer the center of her own universe. She relinquishes that position to her children. One interesting fact is that scientists believe these traits are not just because of their power of love. Scientists believe a mother’s “vigilant protectiveness,” as Japanese neuroscientist Madoka Noriuchi calls it, may be rooted in brainpower, too. Researchers in Tokyo used magneticresonance imaging to show that particular areas of mothers’ brains lit up when their children were in distress. This means, they said, that a highly elaborate neural chain reaction orchestrates certain responses to cries. However, mothers are not perfect. Each of them have their own flaws and imperfections. They are not exempted from frailties. Yet, they still choose to remain strong and undivided. Yes, there will be times we would argue with them because we want to go with our own decisions but mothers, always wanting the best for us, just want to protect us—it’s in their nature and they have been doing it ever since she realized we were in their womb until we have reached adulthood—and, eventually, will support our decisions when they see they will benefit us. Despite misunderstandings, “the heart of a mother is a deep abyss at the bottom of which you will always find forgiveness.” The

greatness of a mother remains evident through the unconditional love she showers her children, regardless of the circumstances. On the bright side, funny as it may sound, Filipino mothers are wellremembered with the typical phrases or expressions we hear from them while growing up. As Filipinos are witty and creative, they can make those expressions sound amusing. Here are some examples of their funny, but wise, expressions they have probably uttered to their children once: n “Papunta ka pa lang, pabalik na ako.” n “Mata kasi ang gamitin sa paghahanap, hindi bibig.” n “Kung ahas ’yan, tinuklaw ka na.” n “Siguro kung hindi nakakabit ang ulo mo sa katawan mo, mawawala mo rin.”

n “Lalabas ka na ganyan ang suot mo?” On this special day, we celebrate Mother’s Day and dedicate this to a woman who is incomparable and beyond ordinary. This celebration is an intimate occasion for Filipinos, as most families come together and bond for a fun weekend. It is a time when the families spend a day pampering and showering mothers with gifts and kisses, as a sign of gratitude for all that they have done for the family. Mother’s Day celebrations can be traced back to the time of the early Greeks and Romans, when they would have annual spring festivals dedicated to maternal goddesses. Early Christians also celebrated a festival in honor of the Virgin Mary. The idea of an official celebration for all moth-

ers, however, came from the US, and was suggested by Julia Ward Howe in 1872. She wrote a Mother’s Day proclamation, urging mothers to rise against war. Anna Jarvis, however, is the one recognized as the founder of Mother’s Day. Because of her efforts, President Woodrow Wilson declared the second Sunday in May as Mother’s Day. With mothers so highly valued in Filipino culture, it is no surprise that Mother’s Day, though a Western holiday, is widely celebrated in the Philippines. In fact, because Filipinos usually come from close-knit families, they celebrate Mother’s Day not only with their own mothers, but also with grandmothers, aunts, cousins and other women in the family. Children often make cards for their mothers, with some even

bringing moms breakfast in bed. Meanwhile, husbands give their wives a present they have been longing for, or a trip to the spa for a day of relaxation. Celebrations for this day usually consist of attending church in the morning with the family, then treating moms to lunch at their favorite restaurant. The rest of the day is usually spent with the family in the malls or wherever the mothers want to go. Though the celebration doesn’t always have to be fancy, a simple note or a home, cooked meal can already do wonders. Whether this special day ends, let us still try to make every day of their lives exceptional. Even in normal days, let’s always show them our love and appreciation for all the things they have done.

EconomySunday

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

BusinessMirror

Sunday, May 10, 2015 A3

PHL’s inclusion on UN’s list of ‘poor countries’ baffles solon

By Jovee Marie N. dela Cruz

leader of the House of Representatives has asked the House Committee on Poverty Alleviation to investigate why the Philippines remains in the list of poor countries in UN’s Human Development Report (UNHDR) despite the Aquino administration’s claim that the economy is improving. House Resolution 2010, authored by Centrist Democratic Party Rep. Rufus Rodriguez of Cagayan de Oro, said that the recent UNHDR has ranked the Philippines as 117th in the list of 187 poor countries in the world. The UNHDR is an annual report

that measures income, education and life expectancy. It includes the human development index that measures the average achievement in three basic dimensions of human development —a long and healthy life, knowledge

and a decent standard of living. During his recent visit in Chicago, President Aquino, in his speech, claimed that the Philippines has been transformed from an economic laggard into the “Darling of Asia” under his administration. Aquino cited the country’s investment-grade status, its 33-notch improvement in the Global Competitiveness Report of the World Economic Forum. “We have reached investmentgrade status; we have risen 33 spots in the Global Competitiveness Report of the World Economic Forum; marked a 49 spot increase in the World Bank’s Ease of Doing Business Report; and, according to Bloomberg, the Philippines is slated to become the second- fastest growing economy in the world this year,” President Aquino said. He also noted the average gross domestic product (GDP) growth of 6.3 percent from 2010 to 2014,

which, according to him, is the fastest growth experienced by the country in the last 40 years. “Our achievements are truly historical: We experienced a GDP growth of 6.3 percent from 2010 to 2014. This is the fastest economic growth we have seen in the last 40 years. Our current target: 7 percent to 8 percent GDP growth this 2015. Our economic managers have said that, if we reach this goal, the resulting 6-year average will be the fastest economic growth we will have experienced since 1955, or within 60 years,” he said. “When it comes to foreign investments: When this administration took office in 2010, said investments only amounted to $1.07 billion; in 2014, it has reached $6.2 billion, a 479.28-percent increase,” the President added. Moreover, Philippines is still ranked among Egypt, Paraguay, Gabon, Bolivia, El Salvador, Uzbekistan, South Africa, Syria and Iraq,

which are in 100 to 120 levels, respectively, the resolution said, citing the United Nations Development Programme report. It added that the Philippines belongs to the medium humandevelopment bracket, unlike the neighboring Malaysia and Thailand, which, at 62nd place and 89th place, respectively, are in high humandevelopment bracket. Rodriguez, citing the report, said Philippines is one of the countries where the connection between social exclusion and conflict can be illustrated. “It means that these are places where a significant part of the population become vulnerable due to conflict situations, such as insurgencies, rebellions or separatist movements,” Rodriguez said. “The report states that consumption is one of the drivers of Philippine economic expansion in terms of gross national product, which

slowed to 5.7 percent in 2014 compared to 6.3 and 7.7 percent in 2013,” Rodriguez added. The resolution said the UNDP report pushes for wider access to basic social service, like education, health care, water supply, sanitation and public safety, insurance, labor regulations, pension and welfare programs, employment, disasterrisk reduction and responsive government institutions. According to Rodriguez, the report, which highlights the needs in promoting the people’s choices and protecting human development achievement, takes the view that vulnerability threatens human development. “Unless it is systematically addressed by changing policies and social norms, progress will be neither equitable nor sustainable,” said Rodriguez, chairman of the House Ad Hoc Committee on the Bangasamoro Basic Law.

er’sDay

ror Special Feature

www.businessmirror.com.ph | Sunday, May 10, 2015 A5

Historical facts about Mother’s Day

OMS are the embodiment of eternal love and devotion. As inherently selfless creatures, you know that they deserve a day all to themselves, one that celebrates everything that they stand for. They did carry us in their wombs for nine months and then went through the ordeal that is giving birth, after all. It’s not like they don’t take every opportunity to remind us of those facts, but still. We literally wouldn’t be here today if it wasn’t for our moms. No matter where you are in the world, there is a day to celebrate moms. While it might not be on the same day around the world, there is a universal appreciation for mothers everywhere. But did you know that getting Mother’s Day recognized as a national holiday in the United States only dates back to 1914? It’s pretty interesting that Mother’s Day has been a national holiday in the US for more than a century. Since the dawn of time we have been thankful for our mothers, but it took persistent activists to really get the holiday on the nationally recognized level. While mom is a good enough reason to celebrate Mother’s Day, there are a ton of things worth

knowing about this happy holiday. For instance, did you know that the origins of Mother’s Day can be traced all the way back to the Greeks and Romans? Both groups held festivals in honor of mother goddesses Rhea and Cybele. Since then there were multiple milestones and holiday celebrations that evolved to make Mother’s Day the extravaganza it is today. So this year, impress mom with more than just a bouquet of flowers. Tell her one of these interesting facts that she probably didn’t even know.

PAINTING BY VICENTE MANANSALA

n Used to be called

n The first Mother’s Day AFTER the death of Ann Reeves Jarvis in 1908, her daughter Anna Jarvis sought to host a celebration to thank mothers everywhere for all they do. She held the first Mother’s Day celebration in a Methodist Church in Grafton, West Virginia, with financial backing from Philadelphia retail owner John Wanamaker. Thousands also congregated in Philadelphia at Wanamaker’s retail store for a Mother’s Day celebration of their own.

WHILE the modern American Mother’s Day didn’t evolve until years later, the most clear precursor to the holiday was the Christian celebration of “Mothering Sunday.” In the United Kingdom and parts of Europe, Mothering Sunday fell on the fourth Sunday in Lent, where parishioners would return to their “mother” church.

n Why the date changes AFTER Jarvis successfully held her first Mother’s Day, she sought out to make it a national celebration. After years of lobbying, she finally got the attention of President Woodrow Wilson in 1914. He proclaimed that the second Sunday in May, no matter what the date, would belong to moms

‘Mothering Sunday’

ONE OF FIFTY FROM UNO DE 50

DESAYUNO CON AMANTES (Breakfast with Lovers) With a combination of blue- and gray-faceted Swarovski Elements crystals, Desayuno con amantes (Breakfast with Lovers) reflects the light, color and shimmer of the Northern Lights. Onehundred-percent handmade in Spain, it is one of four exclusive designs in its latest collection, and only one piece is available in the Philippines at UNO de 50 at SM Makati.

RUE to its name and once again focusing on the exclusivity that characterizes it, Spanish brand UNO de 50 presents new limited-edition of 50 pieces from its latest collection. These exclusive designs include four stunning necklaces and two striking matching bracelets made from blue, gray and pink Swarovski Elements crystals that carry the very originality of the brand to women seeking elegance. And the good news is that one of these necklaces, Desayuno Con Amantes (Breakfast with Lovers), is available in the UNO de 50 store at SM Makati. Handcrafted with a combination of blue- and gray-faceted Swarovski Elements crystals, there are only 50 pieces available of its kind around the globe. Accompanied by a certificate of authenticity, each limited-edition piece has its corresponding serial number hand-engraved on it. Through its creativity, unique style, bold spirit, and 100-percent Spanish handcrafted pieces, UNO de 50 was founded in the late 1990s by the group of designers who resolved to establish brand of fashion jewelry and accessories that would break all existing molds. The brand started out with the original and exclusive philosophy of

SPANISH brand UNO de 50 is for dynamic, cosmopolitan women in search for something original, different and exclusive.

creating only 50 units of each design, thereby supplying the trademark name. This unorthodox approach soon proved an unqualified success. UNO de 50 is a brand for dynamic, cosmopolitan people who follow fashion trends. It is for those in search for something original, different and exclusive. What sets it apart is its artisan process. The crafting technique is one of the pillars of the UNO de 50 philosophy. The creation of each piece involves a process that is unique in the world of jewelry making today. From the initial sketch it goes through the processes of carving, etching, and manual refinement to the finished product, all are done by experts in workshops in Madrid, Spain, the site of the brand’s main offices. The common denominator for all items is the use of metal alloy with the ability to bring the brand’s exclusive designs to life, giving each

piece that very special handmade texture. Once they have been crafted, the pieces are silver plated, and then undergo and exhaustive quality control, culminating in the assembly of rings, necklaces, bracelets, earrings and watches that combine metal with leather, resin, glass and other materials. Today, UNO de 50 has more than 50 shops in Spain and over 25 abroad—in some of the world’s top fashion capitals such as New York, Miami, Las Vegas, Milan, Rome and Amsterdam. UNO de 50 is at the Second Level of SM Aura Premier, the Third Floor of SM Megamall’s Mega Fashion Hall, at the Second Level of the SM Mall of Asia’s Main Hall, and the Ground Floor of SM Makati. Visit and like UNO de 50’s Facebook page at https://www.facebook. com/unode50.es.

across the nation.

WHITE CARNATION

n The founder was not a mother JARVIS, though she founded the American modern concept of Mother’s Day, remained unmarried and childless throughout her entire life.

Jarvis spent her remaining days trying to take down the floral industry by protesting her former commercial supporters, threatening legal action on those that sold carnations with the words “Mother’s Day” and even petitioning to have Mother’s Day rescinded.

n Mother’s Day isn’t

IN the early days of Mother’s Day, white carnations were a must-have item, which meant big business for the floral industry. Giving mothers flowers and other gifts on Mother’s Day soon became a common practice. However, Jarvis absolutely hated what Mother’s Day had become since she intended it “to be a day of sentiment, not profit,” according to Mental Floss. She wanted people to visit their mothers or write letters to them, not shower them with gifts.

MOTHER’S Day is celebrated around the world, but observances vary depending on where you are. Taking place on May 10 every year, Mother’s Day is huge in Mexico when people flock to restaurants for elaborate luncheons. Families in Ethiopia come together each fall to sing songs and eat a big feast for Antrosht, a multiday celebration of motherhood, according to History.com. Mother’s Day is also celebrated on August 12 in Thailand in honor of Queen Sirikit.

supposed to be commercial

just an American holiday

n By law, Mother’s Day

in the Philippines is actually every December

FORMER President Joseph Estrada signed in 1998 Proclamation 58, which declares the first Monday of December of every year as “Mother’s Day” and “Father’s Day.” Proclamation 58 has yet to be replaced by another proclamation for the date to be changed. Yet, the country currently celebrates Mother’s Day every second Sunday of May. Estrada’s proclamation replaced Proclamation 266 signed by former President Corazon Aquino in 1988, which sets every second Sunday of May as Mother’s Day. Before that, President Ferdinand Marcos signed in 1980 Proclamation 2037, which declares the first Monday of December as Mother’s Day.

SundayV

Busine

A6 Sunday, May 10, 2015

editorial

Mother’s Day in the age of the gross domestic product

F there is one occasion that is observed throughout the world without anybody objecting, it is Mother’s Day. Mother’s Day gives everyone the opportunity to honor “the person who has done more for us than anyone in the world,” to paraphrase Anna Jarvis, 1905, the moving spirit behind the celebration of Mother’s Day in the United States. As in many other countries, we in the Philippines observe Mother’s Day on the second Sunday of May. Just think about it. Who looks after the children day and night, attending to their needs? Who takes care of the home, its upkeep and maintenance? Who transmits to children and other members of the family the fundamental values of right and wrong? Who gives warmth to the family when the outside world is cold? In the Philippines, we call our mothers “ilaw ng tahanan,” —light of the home. Ironically, as indispensable as these services of mothers are to the well-being and happiness of the family, they are not recognized in the national accounts; that is to say, they are not included in the country’s gross domestic product, or GDP. Why is this so? Because, sorry for the jargon, GDP encompasses only production (i) for sale on the market, (ii) for distribution to the public, and (iii) for the own use of the producer (as through home gardens, own chickens, own piggery, etc.). Point (iii) is the relevant point. Mothers’ services to her family are for own use, but precisely for that reason they are not paid for, they are uncompensated, and, again, precisely for that reason they do not enter into the national accounts. But when sold or distributed through the market as when the mothers find employment as housekeeper, or nanny, or chef, and receive wages or salaries for those services, then they do enter into GDP. From the viewpoint of the national accounts, if we pay our mother a salary for doing what she does for us, she becomes our employee, and the family becomes an industry. This raises philosophical questions, among them: What becomes of our mother’s goals in life? What becomes of our own goals? Do we just work in order to eat, and eat in order to work, a closed input-output system? The anecdote is told that when the boss marries his secretary, he reduces GDP, because the lady gives up a paying job and acquires an uncompensated occupation. (With apologies to friends for gender equality for the assumption that the secretary is always a woman and the boss always a man.) Work has been going on for some time in the United Nations on various issues affecting the national accounts, including the impact of environmental changes, the effects of the upgrading/ degradation of natural resources, and the contributions of women in development. Progress has been made, but the road ahead is still long and winding. In the meanwhile, what gift can we give our mothers on this Mother’s Day except the undying gratitude in our hearts?

First Mother’s Day without a mother ‘O Philadelphia Daily News

Christine M. Flowers

Gospel

Sunday, May 10, 2015

RPHAN” is a very empty word, starting with the initial “O” that reminds me of a big, alphabetic hole. It conjures up images of loss, of being rootless, of unwanted and untenable liberty. When I think of orphan, I think of something flying around in the great human universe, searching for its home. Today, I’m an orphan. That sounds silly, given the fact that I’ve been able to vote for over 35 years, which means I’m a very big girl. I pay taxes, own (33 percent of) a house, take the train by myself and even know how to defrost things. Oh, and I recently became co-owner of a bison that was originally advertised as a Black Lab puppy. But as sure as the earth travels around the Sun in an eternal, interstellar pas de deux, I’m an orphan. My mother died last August. It took me a while to use the actual word “died,” or any of its variations. For months, I’d say “she passed away,” as if I was standing by the curb and her blithe spirit brushed up against me, turned the corner and disappeared from sight. I preferred to think of her dissolving into the light at dusk, with bits of her swirling and glittering and staying with me like errant particles of affection. I couldn’t bring myself to imagine her gone, in the dark ground, because she hated the suffocating dark. She was all morning, and fresh and always sweet smelling. Saying “she died” canceled those images from my mind. But lately, I’ve been able to say the word died without feeling as if I’m losing her from my life. Yes, I’m now orphaned of her physical presence and the comforting, girl-

ish voice that never deepened with age. I used to say it was a voice without wrinkles. Yes, I don’t wake up to her sitting at the kitchen table with a cup of coffee, watching one of her beloved gardening or cooking or house hunter shows, and she doesn’t come to the station to pick me up in the evening. We don’t take those long Sunday drives anymore, barely making conversation in that silent intimacy only loved ones can appreciate. I’m physically alone. And since I’m not married and never had children and lived with her for more than half a century, that solitude is a raw gash on my heart, nine months on. But as I face the prospect of my first Mother’s Day in 53 years without a mother to coddle, buy for, hug and adore, I am forcing myself to salvage what joy I can, in memory. One of my favorite lines of poetry, if not my favorite, comes from Wordsworth’s “Intimations on Immortality.” It’s probably everyone’s favorite, accessible and yet otherworldly, but it always had a heightened significance for me because of the flower imagery: What though the radiance which was once so bright/Be now forever taken from my sight/Though nothing can bring back the hour/Of Splendor in the Grass/Of Glory in the Flower/We will grieve not but, rather, find strength in what remains behind. I disagree, respectfully, with Wordsworth. You cannot tell someone who has lost the center of their world to “grieve not.” It’s like saying to the Earth “stop orbiting.” Both are equally unnatural, and unlikely. But I’m down with all the rest, especially the part about finding strength in memory. I miss the feel of my mother’s hands,

S the Father has loved Me, so have I loved you; abide in My Love. If you keep My commandments, you will abide in My Love, just as I have kept My Father’s commandments and abide in His Love. These things I have spoken to you, that My Joy may be in you, and that your joy may be full. “This is My Commandment, that you love one another as I have loved you. Greater love has no man than this, that a man lay down his life for his friends. You are

but I remember how it felt to walk with her when she picked me up after my first day in kindergarten. I was proud to be a big girl in my plaid jumper, strutting my stuff for all to see...until we came to that big intersection and that hand around my own squeezed tightly as if to say, “You’re mine, little girl. You’re safe.” I long to smell her impossibly sweet skin, but there’s a reasonable facsimile of bliss if I spritz Halston’s or White Shoulders in the air around my head and breathe as if my life depended on it (and truth be told, it sometimes does). I wish there were more recordings of that pixie voice I could listen to, but there’s an old Memorex tape from 1976 made by my somewhat sadistic father during Hurricane Belle, his attempt to capture our excitement and fear and bravado. In the process, he recorded my mother, bustling around the kitchen of our rented home, oblivious to the impending storm and yelling in frustration at three messy little boys who wouldn’t pick up their toys. That’s the mother I remember, dismissive of a hurricane and her own force of nature. I’m an orphan of these tactile sensations, of the superficial and beloved things that made my mother, my mother. But then again, I am a product of all the things that existed beyond and within and around the beautiful presence of Lucy Flowers. Her legacy is more than what little can be squeezed into an obituary, or photo albums, or fragile ribbons of Memorex. And this Sunday, it will keep me company and I’ll hear deep within the shell of my ear: I’m here.

My friends if you do what I command you. No longer do I call you servants, for the servant does not know what his master is doing; but I have called you friends, for all that I have heard from My Father, I have made known to you. You did not choose Me, but I chose you and appointed you that you should go and bear fruit and that your fruit should abide; so that whatever you ask the Father in My Name, He may give it to you. This I command you, to love one another. —John 15:9-17

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, May 10, 2015 A7

The rotated boxer Free Fire

By Teddy Locsin Jr.

He mocked as gay Mayweather’s warm display of admiring affection for the spunky but small, swift but short-armed Filipino fighter. “He kept hugging me,” said Manny Pacquiao suggestively, after his unanimous defeat at the hands of the long, tall, elegant and powerful Olympic-class boxer.

anny whined for a rematch to show he really won the fight he really lost. Floyd Mayweather Jr., who plans his career as carefully as he plans his fights, first said no chance. His last fight was last September. But Pacquiao went under the knife for a tiny shoulder problem, the same as I have on both shoulders, so Manny is no good for a year. Still, Mayweather said he is only human and changes his mind. So why not? He’ll give Manny a year

to heal and will fight him again. Indeed, Mayweather has his eye on the opening of a grand new boxing place, the perfect venue for the final internment of any hope of upsetting his record as the longest undefeated boxing champion of the world. If the fight takes place, what will we get? A superb Olympic boxer, 18, 19 years undefeated champion of this, that, and every division, stepping into the ring—after having sized

up Pacquiao’s last fighting form and probing the limitations of his punching power and fighting skill. Mayweather now knows enough to adjust or recalibrate his elegant and lethal fighting style to finally knock the head off Manny’s one rotated shoulder. That’s what we gonna get if there is a rematch. Sure, maybe not as many will watch and the money will not be as big, but it will be a great fight between the man who broke Rocky Marciano’s record and the man with six—or is

it now seven?—defeats. But still the Pacquiao camp kept bitching on, calling Mayweather gay and a cheater, and so the latest word on a rematch is this: No way. Mayweather’s had it with the insults, and all the sorry excuses for a unanimous defeat. Mayweather called Manny a sore loser and a coward as well; without the grace to give credit where it is due after getting so much unexpected credit from the man who beat him—yes—unanimously. Shet.

UK election result calls for Labour reinvention S Bloomberg View Clive Crook

HY Tories! Neil Kinnock, former leader of the Labour Party and a world authority on ignominious defeat, warned just before the UK election that the polls might be underestimating support for Conservatives because of the “shy Tory” factor. How right he was. The idea is that a lot of Brits are embarrassed to tell pollsters they’ll vote for something as crass as lower taxes. Instead, they say they’re supporting Labour for the good of the community. (Why are they embarrassed about liking low taxes, you ask? You must be American.) Kinnock and Labour confounded the polls in much the same way back in 1992, getting thrashed by a supposedly diminished post-Thatcher Tory Party. Statisticians recognized this interesting phenomenon and began to adjust their numbers accordingly. Evidently, further adjustments are needed. An election that was supposed to be neck-and-neck has given

Prime Minister David Cameron a memorable victory and Labour a drubbing so bad that Ed Miliband, the party’s leader, had to resign immediately. Ed Balls, who was shadow chancellor and one of the party’s most forceful intellects, didn’t need to resign: Like many others, he lost his seat. The blow this election has dealt to Labour’s confidence and sense of purpose would be hard to exaggerate. After Tony Blair’s third-way centrism was impaled on the spike of Iraq, Gordon Brown moved Labour a bit to the left, then Miliband moved it more. He struck an antibusiness, antifinance tone and proposed left-pleasing measures, such as rent controls and higher taxes on the rich. To be sure, this was not “Old Labor.” Core Blairite principles, such as fiscal conservatism and market-driven prosperity, weren’t overthrown. But voters suspected, perhaps, that they might be. Kinnock reportedly greeted

Miliband’s appointment as leader in 2010 by saying, “I’ve got my party back.” That comment, one can now see, foretold disaster and should have caused weeping in Labor HQ— because Kinnock’s Labour Party was optimized for losing elections. Labour’s next leader won’t have to confront the challenge of reinvention that faced Blair. That was nothing less than a revolution. But the party will have to recognize that Blair’s approach to political positioning was basically correct, and it will find this hard to stomach. For now, Tory joy will be unconfined. Remarkably, Cameron has a narrow majority in the Commons and can rule without the Liberal Democrats’ support—which is fortunate, since the Lib Dems have been virtually wiped out. As a result, the next few weeks will be a much more orderly affair than anybody had expected. Rest assured, though, that the calm won’t last. British politics

remains on course for constitutional upheaval. The polls were right about one thing: The Scottish National Party (SNP) crushed Labour in what was once its northern stronghold. Scotland has moved to the left—even of Labour—and has strongly backed a pro-independence party. The rest of Britain has moved to the right, and will expect to call the shots for the country as a whole. You could argue it’s the best possible outcome for the SNP. The bad news, from the party’s point of view, is that it won’t be sharing power with Labour, as seemed possible until election-day; the good news is that the result will inflame the sense of alienation that drives support for Scottish nationalism. It’s a trade-off Nicola Sturgeon, the party’s leader, will be delighted to accept. As Cameron deals with Scotland, he will also have to grapple with the small matter of the UK’s future in Europe. He’s promised to renegotiate

terms and offer a stay-or-go referendum by 2017. Historians can debate whether that promise helped to secure this election victory. (The idea was to stifle an anti-EU rebellion in the Tory ranks and blunt the United Kingdom Independence Party’s attack on marginal seats; it seems to have worked.) Sadly, he now must either keep his promise or find a way to break it. Neither option looks easy. If Cameron holds the referendum he’s promised and the country votes, against his advice, to quit the EU, he won’t be remembered for his election victory of 2015. The same will be true if he presides, also against his will, over the dismantling of the UK. What’s startling is that both of those things could actually happen. If they do, Kinnock and Miliband notwithstanding, Cameron will have no rival in the annals of British political failure. You beat the odds, Prime Minister. Warmest congratulations.

Toyota chooses senior citizens over hedge funds P Bloomberg View William Pesek

RIME Minister Shinzo Abe has made it a priority to steer Japan toward better corporate-governance standards. Unfortunately, the nation’s most important company is heading the other way. Toyota is making loads of cash, thanks to Abe’s weak-yen policies— its profits this year seem to be blowing past last year’s record $18 billion. Yet, rather than becoming friendlier to shareholders, as Abe has asked in return, the automaker has been trying to weaken its investor base. It’s doing so with an unusual new stock that will lock up investors’ money for five years. These “Model A A” shares are likely to attract individual Japanese investors, rather than hedge-funds

managers. And that’s no accident. For a company that wants to ward off investor activism, it’s the whole point. After watching Sony and robot maker Fanuc fight off assaults from foreign billionaires like Daniel Loeb, Toyota—which is an obvious target for activists, given the $38 billion in cash and short-term investments on its balance sheet—would prefer to cultivate a more docile shareholder base. That’s where Japan’s elderly population comes in. More than one quarter percent of Japan’s 127 million people are over the age of 65—and to the extent that they are investors, they tend to be on the lookout for low-risk stocks. Toyota’s Model AA shares are perfectly suited for them. In exchange

for holding the shares for five years, investors get interest payments as high as 2.5 percent. If you’re living in a risk-averse nation like Japan that has near-zero percent bond yields, that’s a pretty attractive offer—less so, if you’re a foreign investor looking to maximize your returns. Toyota’s move is making a mockery of a key pillar of Abe’s economic revival plan. He hoped that by making corporate Japan more international— and more exposed to interventions by foreigners like Loeb—companies would become more likely to increase pay for workers or invest in new jobcreating projects. Just last year, Japan introduced a stewardship code that enlists investors to pressure businesses to boost

profit. And next month, Tokyo is imposing new legal guidelines that will encourage companies to be more responsive to financial markets and put a stop to insular practices like cross-shareholdings between friendly companies. It’s not hard to guess why Toyota is rolling out these Model AA shares now, just ahead of Japan’s new governance code (and one month after Harry Wilson shamed General Motors into announcing buybacks). “As long as you’re a listed company, you can’t select your shareholders,” Takashi Hiroki, chief strategist at Monex Securities in Tokyo, told Bloomberg News. “But Toyota’s new class of shares is a new approach to choose their investors. Toyota is expressing who they want

to be purchased by.” Toyota’s president, Akio Toyoda, seems to have been planning this Model AA stock move for some time. In 2012, the year Abe took office, Toyoda declared, “We want investors to look at us with a warm attitude, compared with the current attitude of, ‘How much profit will Toyota make this year, or next year?’” In March he even told a gathering of 4,000 investors that return on equity wasn’t his priority—making better cars was. So long as it’s pulling in $18 billion a year and sitting on $36 billion of cash that won’t necessarily be a problem for Toyota. But the company’s reluctance to take advice from outsiders, or share its wealth with its 68,000 workers, certainly poses a problem for Abe.

Why we should allow the Ex-Im Bank to expire By Diane Katz

The Heritage Foundation (TNS)

LOT of people in Washington, D.C., don’t believe that American businesses can compete in the global market without subsidies from taxpayers. These same folks are pushing for a reauthorization of the ExportImport Bank, a government outfit that doles out export subsidies to a select group of companies. To hear bank officials tell it, small businesses and thousands of jobs will simply go “poof” without the bank. So let’s take a closer look at the type of deals these officials say are in jeopardy. Space Exploration Technologies Corp.— commonly known as SpaceX—is a good example. In numerous speeches and “success stories” promoted in bank reports and press releases, Ex-Im Chairman Fred Hochberg has claimed that SpaceX is a small

business that has only “limited” options for export financing, and thus is “relying on Ex-Im Bank” to expand its business. Ex-Im, Hochberg has said, is “excited to play such a key role” in its growth. This “small business,” which designs, manufactures and launches rockets, was founded by billionaire Elon Musk and employs 4,000 people. But facts aside, hyping the bank as the savior of Main Street is central to Hochberg’s lobbying campaign to win reauthorization of the bank’s charter. It’s all nonsense (to say the least). SpaceX was founded in 2002—11 years before Ex-Im arranged $106 million in taxpayer-backed loans. Nor is Elon Musk strapped for cash. Musk is the cofounder of PayPal, the world’s largest online-payment system (with an estimated value of $40 billion). He also cofounded Tesla Motors, recipient of billions of dollars in tax and regulatory largesse.

Earlier this year, Google and Fidelity Investments purchased a 10-percent stake in SpaceX for $1 billion (giving the company a market valuation of $10 billion). In fact, SpaceX has received contracts totaling more than $542 million from the Department of Defense and Nasa, and the space agency announced it will pay SpaceX $2.6 billion to complete development of a cargo vehicle capable of carrying a crew of four to the space station. Pentagon officials, meanwhile, say they expect to certify the company soon for lucrative military payloads. And SpaceX isn’t alone. The vast majority of Ex-Im transactions benefit very large corporations. Just 10 companies were the beneficiaries of 64 percent of Ex-Im subsidies in 2013, including Boeing (30 percent), General Electric (9.5 percent), Bechtel (6.6 percent) and Caterpillar (4.9 percent). On the buyer side of the transactions,

the primary beneficiaries are also very large firms—many state-controlled— including Pemex and Emirates Airline. In recent years, only 20 percent or so of ExIm financing benefited small businesses, and those that do benefit represent just one-half of 1 percent of all American small businesses. Even that fraction is artificially inflated by the bank’s expansive definition of small, which includes firms with as many as 1,500 workers, as well as companies with revenues of up to $21.5 million annually. Alas, the bank has a history of misrepresenting its beneficiaries. An investigation by the Reuters news agency has found that potentially hundreds of the subsidy recipients categorized as “small businesses” by Ex-Im are actually very large enterprises or units of multinational conglomerates. “Companies owned by billionaires like Warren Buffet and Mexico’s Carlos Slim, as well by Japanese and

European conglomerates, were listed as small businesses,” Reuters reported last year. So, too, were Austria’s Swarovski jewelers, North Carolina’s Global Nuclear Fuels (owned by General Electric) and Japan’s Toshiba and Hitachi. The bank’s list of small businesses in Texas includes engineering giant Bechtel, which has 53,000 employees. Hochberg is engaged in a fight over reauthorization of the bank charter, which expires on June 30. It’s tough to convince Congress or the public that titans of industry can’t manage to access private financing, thus prompting the chairman and his allies to paint the bank as the salvation of small business. But mischaracterizing SpaceX as a small business in need of subsidies—indeed, grossly (and repeatedly) exaggerating Ex-Im’s benefits to Main Street—is further proof that bank officials lack any credibility. It’s time to allow the bank charter to expire.

2nd Front Page BusinessMirror

Sunday, May 10, 2015

PAL expands operations in China, flies to Jinjiang

By Lorenz S. Marasigan

LAG carrier Philippine Airlines (PAL) has expanded its operations in China with the recent introduction of flights to Jinjiang in a bid to further improve its profitability this year.

Jinjiang is the flag carrier’s seventh destination in China, which includes Beijing, Shanghai, Xiamen, Guangzhou, Hong Kong and Macau. It is PAL’s 37th international destination and 67th overall. With the opening of the new route, business travelers and members of the Chinese-Filipino community who regularly travel to the Fujian province may now experience the flag carrier’s “distinct Filipino brand of inflight service marked by warmth, charm and hospitality,” PAL said in a statement. “I am proud to announce the latest addition to the national flag carrier’s international network—Jinjiang City. With a huge number of Chinese-Filipinos tracing their origin to this part of China, the new PAL service provides them a convenient link to ‘home,’” PAL President Jaime J. Bautista said.

BAUTISTA: “With a huge number of Chinese-Filipinos tracing their origin to this part of China, the new PAL service provides them a convenient link to ‘home.’”

The majority of ethnic ChineseFilipinos trace their roots to Fujian province. More than 80 percent of the sector has ancestral ties in Jinjiang, which is part of Quangzhou City, Fujian province. PAL introductory fares to Manila are being offered to Jinjiang’s business and leisure travelers, as well as visiting

friends and relatives, as part of the flag carrier’s inaugural flight offerings. The legacy carrier started the year on a positive note, after recording $85 million in comprehensive income in the first quarter of the year, a huge turnaround from the $20.7-million net loss posted last year. The financial comeback was attributed to the declining price of fuel that resulted in lower airfares. This spurred air travel in and out of the Philippines, helping the ailing airline to recuperate during the period. Revenues rose by 30 percent to $627 million in the first three months of the year, from $482.4 million in the same period last year. Total operating expenses, meanwhile, amounted to $556 million, an 11-percent increase from last year’s $500.3 million. The carrier, led by billionaire Lucio C. Tan, first snapped out of the red zone last year, after registering P787 million in comprehensive income for the full-year period. It incurred a P9.12-billion loss in the last nine months of 2013. Two years ago, the carrier shifted its accounting period from a fiscal-year basis that ends in March to a calendar year, instead. This resulted in a shorter period of nine months for 2013. Shares of PAL Holdings Inc. ended Friday’s trading at P4.85 apiece.

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Strong April hiring moves Fed closer to higher interest rates

ASHINGTON—A stronger-than-expected employment report on Friday eased concern that the US economy might slip toward recession, yet clouded the waters about when borrowing costs might rise across the US economy. Employers added a solid 223,000 jobs in April, the Labor Department reported, and the unemployment rate fell a bit to 5.4 percent. All eyes were on the jobs report, because barely a pulse was recorded for the US economic growth from January to March. In fact, the steep climb in the trade deficit reported earlier in the week had prompted concerns that, when revised on May 29, first-quarter growth might be negative. If the economy shrank over the first three months, could a recession be in the offing? Friday’s number suggested the answer is no. “April job growth was decent, but a big step down from the gains the economy was producing late last year,” said Mark Zandi, chief economist with forecaster Moody’s Analytics. “Job growth was hurt by very bad weather early in the year, but it is also struggling with the ill effects of the lower oil prices on the energy industry and the strong value of the dollar on manufacturing.” Those headwinds to growth from the strong dollar and oil-sector turmoil might last into the summer, he suggested, but “job growth will reaccelerate in the second half of the year. By this time next year the economy will be operating at full employment, and wage growth will be much stronger.” The White House was more cautious, in part, because April’s numbers reflected a bounce-back. “This report largely reflects the ongoing recovery, but jobs in April were likely also boosted by a temporary bounce-back from winter weather,” Jason Furman, head of the White House Council of Economic Advisers, said in his blog.

Speaking on Friday in Beaverton, Oregon, President Barack Obama cited the April numbers and credited his economic policies for 62 consecutive months of hiring. “That’s 3 million more jobs just over the past 12 months,” Obama said. A major question for jobs and the economy is when the Federal Reserve (the Fed) will begin raising its benchmark lending rate, which has been anchored near zero since December 2008 amid financial crisis. When it begins lifting the federal funds rate, the Fed will trigger an increase in borrowing costs for consumers and businesses alike on mortgages, loans for autos and other big-ticket items. Friday’s jobs numbers were viewed as increasing the likelihood that the Fed, which is considering whether the economy is strong enough to withstand rate hikes, will start down that road in September. “We are sticking with our baseline forecast of September for the first rate hike, but the odds of December, or even later, are growing,” wrote economists at Bank of America Merrill Lynch. An improving labor market is just one of several factors the Fed is weighing before raising rates. Inflation has been subdued, leaving room for further delay on hikes, and income growth has been lackluster. Hourly earnings increased a hair in April and yearover-year they grew by 2.2 percent, according to the Bureau of Labor Statistics. That does not point to a tight labor market in which workers can demand higher wages. “Our economy is at a crossroads. The recovery is continuing, and more people are finding jobs. But wages remain stagnant and working families are struggling to scrape by,” Bill Spriggs, chief economist of the American Feration of Labor-Congress of Industrial Organizations, said in a statement on Friday’s report. TNS

Several groups seek K to 12’s suspension

By Jovee Marie N. dela Cruz

WO party-list lawmakers, together with parents, educators and student groups, over the weekend launched a signature campaign calling for the immediate suspension of the K to 12 Program before the school year starts. Party-list Reps. Luzviminda Ilagan and Rep. Emmi de Jesus of Gabriela said the government should resolve first several glitches on the K to 12 Program. “The government is clearly ill-prepared, and not enough consultations were held before the Department of Education put the K to 12 Program into full swing. It would be prudent for the Aquino administration to at least suspend the K to 12 Program so that existing problems in the country’s basic educational system may sufficiently be addressed,” Ilagan said. De Jesus said they already gathered signatures in Marikina communities, and they are also set to visit several cities in Metro Manila for the campaign. Gabriela Women’s Party has filed House Resolution 2074, directing the House Committee on

Basic Education to conduct an inquiry into the various issues surrounding the implementation of the Enhanced Basic Education Act of 2013. The resolution cites classroom shortages, as well as the displacement of some college teachers and nonteaching personnel, as some of the problems that have arisen with the K to 12 Program’s implementation. Ilagan said educators and stakeholders have long expressed the government’s lack of readiness in the implementation of the K to 12 Program, even before President Aquino signed Republic Act 10533, or the Enhanced Basic Education Act of 2013, into law on May 15, 2013. Earlier, Party-list Rep. Terry Ridon of Kabataan, citing the report submitted by the government’s education cluster to the House Committee on Higher and Technical Education, said that 13,634 teaching personnel (2,794 permanent and 10,840 nonpermanent) and 11,456 nonteaching personnel (5,702 permanent and 5,754 nonpermanent) will lose their jobs come 2016 owing to the “reduction in college enrollment.” The government’s education

cluster includes the Department of Education, Commission on Higher Education, Technical Education and Skills Development Authority, and the Department of Labor and Employment. Ridon, a member of the House Committee on Higher and Technical Education, said that the report also admitted that the displacement of the 25,000 college personnel “may adversely affect the operational viability of various higher-education institutions.” Meanwhile, House Independent Bloc Leader and Lakas Rep. Ferdinand Martin Romualdez of Leyte has expressed confidence that the Supreme Court (SC) will decide on the constitutionality of the K to 12 based on the best interest of the country. “Being the final arbiter of many issues dividing the country, I am confident that the SC will decide for the best interest of the nation concerning legal questions raised against the K to 12 Program. The SC will decide on the interest of the society and for the maintenance of good,” said Romualdez, a lawyer and president of the Philippine Constitution Association. See “K to 12,” A2

Bill seeks to regulate commercial-space rental

PAGASA cautions vs. Dodong hazards

briefs ‘Metro Manila property market remains bullish’

Despite the rise of new central business districts (CBDs) nationwide, property market in the National Capital Region (NCR) remains bullish. KMC MAG Group Inc. Vice President for Marketing and Business Development Yves Luethi said in a phone interview that Metro Manila is still the preferred address for business offices, particularly in the business-process outsourcing industry. “We see no slump in demand, as there are new entrants looking here,” Luethi said. “Multinational companies, though they are branching out in other locations like Cebu, remain attracted to Metro Manila CBDs, particularly in Bonifacio Global City [BGC],” he added, noting the competitive tax rates in BGC. In its 2015 Metro Manila Property Outlook, KMC MAG noted that there will be some 560,000-square-meter new office spaces expected across CBDs this year, with almost half of it located in BGC. PNA

A bill regulating commercial-space rentals to entice Filipinos to invest in small and medium businesses has been filed at the House of Representatives. House Bill (HB) 5259, filed by Party-list Rep. Roy V. Señeres Sr. of OFW, seeks to regulate the cost of rental and other charges between lessors and lessees of commercial establishments for the purpose of narrowing the gap between the rich and the poor. The bill defines small enterprise and medium enterprise as business entity whose asset base is over P1 million but not more than P5 million, and as business entity whose asset base is over P5 million but not more than P50 million, respectively. HB 5259, citing the 1987 Constitution, mandates for the State to regulate the right of enterprises to reasonable returns of investment, and to expansion and growth. The bill also creates an independent commission to be known as the Commercial Establishment Rental Regulatory Commission, which shall be under the Office of the President. Jovee Marie N. dela Cruz

THE government has warned about possible flash floods, landslides, storm surges and waves over 14 meters high mainly in northern and eastern Luzon, as Typhoon Dodong (international code name Noul) continued nearing the country. “Residents in low-lying and mountainous areas of provinces with public storm-warning signals are alerted against possible flash floods and landslides,” state weather agency Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) said on Saturday. The agency reported “heavy to intense” rainfall within the 200-kilometer diameter of Dodong. Pagasa also noted that storm surges of up to 2.5 meters high are possible over the eastern coast of Camarines Sur, Quezon and Isabela provinces, so people must refrain from staying in beaches there for the meantime. According to Pagasa, Dodong continued packing maximum sustained winds of 160 kilometers per hour near its center and gustiness of up to 195 kph. PNA