Businessmirror may 19, 2015 by BusinessMirror

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TfridayNovember 18,2015 2014Vol.Vol.1010No.No.22240 Tuesday, May 19,

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BSP NOW SEEN FAVORING WEAKER PESO IN SUPPORT OF OFWs, EXPORT SECTOR

Exporters laud shift in peso tack

INSIDE

inally, the export sector is starting to feel that the Bangko Sentral ng Pilipinas (BSP) has become “tolerant” of a weaker peso for the benefit of exporters and overseas Filipino workers (OFWs).

INDULGE YOUR ANGLOPHILIA D

Life

The church is a home

EAR God, we know that no one is excluded from Your mercy. Everyone knows how to access it and the Church is a home that welcomes all and rejects no one. Its doors remain wide open so that those who are touched by grace can find the certainty of forgiveness. We are the Church, Father, we pray that we deserve to enter Your heavenly kingdom someday. Amen. POPE FRANCIS AND LOUIE M. LACSON

Word&Life Publications • teacherlouie1965@yahoo.com

‘PITCH PERFECT 2’ IS SINGING ALL THE WAY TO THE BANK »D3

BusinessMirror

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

Tuesday, May 19, 2015

ADD a smart, seaside feel to your bathroom with John Lewis’s wide range of bath linen. You can neatly fold and stack or just hang.

A STYLISH hanging round mirror that’s the perfect size for those quick checkups before you leave the house. Its minimalist style is ideal for hanging up in a hallway or lobby in both traditional and contemporary households, perfect for enhancing natural light around your home.

A SLEEK marble photo frame, perfect for contemporary-styled homes. The frame features a stylish grey marble border. Pair with other marble frames for a stunning display.

THIS John Lewis tableware collection is neutral in palette, tactile by nature and authentically crafted for a relaxed home.

JOHN LEWIS will have a wide range of home products, including tableware, in its shop at the SM Home section of The SM Store.

SEDUCTIVELY simple and luxurious bedding is perfect for updating your bedroom for the new season. Crafted from breathable cotton for a truly comfortable night’s sleep, it features a subtle tonal stripe pattern that has been intricately constructed from pre-dyed yarn for a more intense effect.

Indulge your Anglophilia some more...and even more

O, Downton Abbey is about to conclude its run this coming fall, and, surely, Anglophiles in this part of the world are nothing short of devastated. We are profoundly sympathetic. Still, Anglophiles can take heart that, while the Dowager Countess of Grantham can never be replaced (“Don’t be defeatist, dear, it’s very middle class!”), there are still plenty of fabulous shows coming from Britain. Even better, the British invasion in Manila continues. John Lewis, a chain of quality department stores operating throughout Great Britain, will open its first shop-in-shop in the Philippines at SM Makati on May 21. The chain is part of the John Lewis Partnership, and is known for its policy of “Never Knowingly Undersold,” which has been in use since 1925. A wide range of own-brand home products including bed, bath, tableware and home accessories, such as

candles and photo frames, will be on offer in a dedicated John Lewis Department at SM Home in SM Makati’s Fifth Level. This will be the first of the 11 shop-in-shops in SM Retail locations across the Philippines: SM Makati, SM Aura Premier, SM Megamall, SM Mall of Asia, SM City North Edsa, SM Southmall in the Metro Manila, and SM City Cebu and SM Lanang Premier in the provincial areas; as well as three Our Home stores. The sites will be between 300 square feet and 1,000 square feet, and will have a dedicated staff. The shop-in-shop departments will build on the success of John Lewis’s existing outlets in seven branches of South Korean department store Shinsegae, and follows John Lewis’s recent announcement to open shop-in-shop departments in three branches of Singapore department store Robinsons. “SM Retail is a perfect partner to help bring the John

Lewis brand to a new Asian customer base,” says Andy Street, managing director at John Lewis. “I would like to congratulate SM for successfully bringing John Lewis to the Philippines,” HE British Ambassador to the Philippines Asif Ahmad says. “In the UK, John Lewis is known as a top retailer and has a reputation for offering excellent value to customers for many years. We are delighted to have another iconic brand that will bring the experience of British quality, creativity and lifestyle to the Filipino home.” The first John Lewis store was opened in 1864 in Oxford Street, London. Today, it operates 43 John Lewis stores across the UK (31 department stores, 10 John Lewis at Home stores, and shops at Saint Pancras and Heathrow Terminal 2), as well as johnlewis.com. It is part of the John Lewis Partnership, the UK’s largest example of worker coownership where all 30,000 staff are partners in the business. John Lewis has been

named Omnichannel Retailer of the Year in the 2014 World Retail Awards. Other awards received include Multichannel Retailer of the Year and Marketing Advertising Campaign of the Year at the Oracle Retail Week Awards 2014, plus Best Department Store at the Drapers Awards 2014. On January 1, 2008, the Oxford Street store was awarded a Royal Warrant from Her Majesty the Queen as: “suppliers of haberdashery and household goods.” John Lewis Reading is also the holder of a Royal Warrant from the Queen as suppliers of household and fancy goods. Peter Jones in Sloane Square, Chelsea, which is part of the John Lewis Group, is the holder of a Royal Warrant to both HRH The Prince of Wales and HRH the Duke of Edinburgh as draper and furnisher. No doubt Carson will be pleased to know that the empire continues to expand throughout the world. ■

Tips and tricks for pretty florals B M C G Tribune News Service

A HANDFUL of sweet blue blooms at the base of the bouquet pull your eye in, along with the pussy willows sweeping above the flowers.

I CANNOT put a flower bouquet together to save my life. I’ve tried. Over and over again. Every time, the vase full of blooms looks like a Pinterest fail. But I love to use fresh flowers in my decorating. So through the years, I’ve learned a few tricks for pulling together pretty floral arrangements that are so foolproof, even I can’t mess them up. Here are a few tips and tricks for creating pretty floral arrangements: 1. Use small-mouth vases. I’ve learned from trial and error that when I

use vases with very small mouths and just insert a bloom or two, they look pretty good. When you cluster several vases, the effect is lovely. And just because a vase has a small opening doesn’t mean you can’t create a bouquet that makes a big statement. On a spring mantel, we filled milk-bottle inspired vases with interesting pebbles and inserted faux pussy willows. We kept the picks long to create height, which is especially important if your room has high ceilings. This is also a great treatment if you have a narrow mantel. 2. Clip the blooms short. If I’m doing

an arrangement in a vase or planter that has a 4-inch to 5-inch mouth, I use this trick: Line the opening with leaves (I use hostas), pull the blooms into a tight bunch and trim the stems so the blossoms stand just above the container’s opening in a tight mound. I like to use hydrangeas from my yard, or roses. 3. In a pinch, pick live flowers or plants. Want to keep things super simple? Just insert a pot of fresh or faux plants or flowers into beautiful cachepot. Done!

com.

life

■ This column was adapted from Mary Carol Garrity’s blog at www.nellhills.com. She can be reached at marycarol@nellhills.

By Catherine N. Pillas

CHINA AND U.S. CAN both BE PACIFIC POWERS

“I think that now, the outlook has changed. Whereas, before they [BSP] have been staunch in guarding the strength of the peso, now they’re being more attuned to keep the value of the peso, so that our competitiveness [as a sector] and our OFWs will benefit from it,” Philippine Exporters Confederation Inc. (Philexport) President Sergio R. Ortiz-Luis Jr. said in a phone interview. This change in tack was also no-

ticed by the Hongkong and Shanghai Banking Corp. (HSBC), which recently released a research note on the BSP’s perceived bias for a weaker peso as a move in aid of the OFW remittances and exporters. “It [the BSP] may opt to be more tolerant of a weaker peso, helping exporters and OFWs gain some valuation effects,” HSBC was quoted as saying. See “Exporters,” A8

BusinessMirror

World The

JAPAN SANJA FESTIVAL

Participants clad in traditional happi coats carry a mikoshi, or portable shrine in the annual Sanja Festival parade through a street of Tokyo’s Asakusa shopping district on Sunday. Japan’s Sanja Festival is one of three big festivals in Tokyo and is held on the third weekend of May. AP/SHIZUO KAMBAYASHI

B3-1 | Tuesday, May 19, 2015 • Editor: Lyn Resurreccion

China and US can both be Pacific powers, Xi tells Kerry

EIJING—The US and China must manage disputes in a way that doesn’t affect their relationship, President Xi Jinping told visiting Secretary of State John Kerry, as the US urges China to curb its territorial expansion in the South China Sea.

The US-China relationship remains “stable on the whole,” Xi said during Sunday’s meeting in the Great Hall of the People in Beijing, state-run media reported. “The new type of China-US relationship has witnessed early harvest.” Still, Xi, who has spoken previously of a new model of major-power relations to accommodate a rising China, said the two countries “should

manage, control and handle disputes in an appropriate way so that the general direction of the bilateral relationship will not be affected.” “The broad Pacific Ocean is vast enough to embrace both China and the United States,” Xi said. The US has been pressing China to show restraint in its large-scale land reclamation in the contested South China Sea—where Pacific Fleet

Comm.Harry Harris has said China is building a “great wall of sand”— and the tensions risk overshadowing Xi’s planned visit to the US in September. Alongside China’s military expansion it has been building its economic clout in ways that may challenge the western-led world order. Kerry in a meeting on Saturday with Foreign Minister Wang Yi expressed concern that China is seeking to establish de facto control of the South China Sea by expanding shoals and islets. Kerry said he urged China “to take actions that will join with everybody in helping to reduce tensions and increase the prospect of a diplomatic solution,” to conflicting territorial claims within the international waterway. Wang rebutted the US diplomat, defending the reclamation work as a matter of national interest. “I would like to reaffirm that the determination of the Chinese side to safeguard our own sovereignty and

territorial integrity is as firm as a rock,” he said. China claims more than 80 percent of the South China Sea, encompassing some of the world’s busiest shipping lanes. It has quadrupled land reclamation to 2,000 acres, prompting protests from other claimants, including the Philippines and Vietnam. While those nations too are pursuing reclamation projects or have built small military installations on disputed islands, they pale in comparison to China’s recent dredging. The US is treaty-bound to defend its ally the Philippines in any conflict with China. China has said the islands would be used for a range of civilian purposes—such as search-and-rescue operations and marine weather forecasting—but it has also said they’d be used for military purposes. It is building an airstrip on at least one of the islands and its foreign ministry said it reserves the right to establish an air defense identification zone over the area. Bloomberg News/TNS

GREEK ENDGAME NEARS FOR TSIPRAS AS BANK COLLATERAL HITS BUFFERS

REEK banks are running short on the collateral they need to stay alive, a crisis that could help force Prime Minister Alexis Tsipras’s hand after weeks of brinkmanship with creditors. As deposits flee the financial system, lenders use collateral parked at the Greek central bank to tap more and more emergency liquidity every week. In a worst-case scenario, that lifeline will be maxed out within three weeks, pushing banks toward insolvency, some economists say. “The point where collateral is exhausted is likely to be near,” JPMorgan Chase Bank analysts Malcolm Barr and David Mackie wrote in a note to clients on May 15. “Pressures on central government cash flow, pressures on the banking system, and the political timetable are all converging on late May to early June.” European policy-makers are losing patience with Tsipras who said as recently as May 14 that he won’t compromise on any of his key demands.

While talks are centering on whether to give Greece more money, the European Central Bank (ECB) could raise the stakes if it increases the discount on the collateral Greek banks pledge in exchange for cash under its Emergency Liquidity Assistance (ELA) program. Such a move might inadvertently prompt a further outflow of bank deposits and pressure Tsipras to choose between doing a deal and putting his country on the road to capital controls. A Greek government spokesman declined to comment, as did officials at the Greek central bank and the ECB. “We are in an endgame,” ECB Executive Board member Yves Mersch said in an interview with Luxembourg radio 100.7 broadcast on Saturday. “This situation is not tenable.” The arithmetic goes as follows: Greek lenders have so far needed about €80 billion ($92 billion) under the ELA program. Banks have enough collateral to stretch that lifeline to about €95 billion under the terms currently allowed by

the ECB, a person familiar with the matter said. With the central bank raising the ELA by about €2 billion every week, that could take banks to the end of June. A crunch will come if the ECB increases the haircut on Greek collateral to levels not seen since last year. That could be prompted by anything from a complete breakdown in talks to a missed debt payment, the official said. A continuation of the current impasse could even be all that’s needed, the official said. An increased haircut would reduce the ELA limit to about €88 billion, the person said. While that gives banks about four weeks before hitting the buffers, the leeway is so limited that Greece might need to impose capital controls, limiting transactions such as ATM withdrawals, to conserve the cushion. “Since the great crisis of 2008, Europe has created many tools to control the flow of money and banks,” said Andreas Koutras, an analyst at In Touch Capital Markets, in London. “Thus the crisis in Greece is more likely to be

resolved through the tools of the ECB rather than” through political tools. Market News International first reported on the reduced ceiling on May 12. The ECB’s next decision on ELA is expected on May 20, when the governing council meets in Frankfurt. Investors in Greek debt are showing few signs of panic for now. The yield on the Greek 10-year bond was at 10.76 percent on May 15, down from 13.64 percent on April 21. While Greece benchmark ASE Index fell 3.2 percent last week, it has still risen 15 percent since April 21. Nor are ECB policy-makers willing to raise the pressure on Greek banks on their own. Central bank governors won’t take any action which would be seen as pushing Greece out of the currency bloc if negotiations show progress and convergence, the person said. Greek lenders are also working with the country’s central bank on plans to collateralize additional assets, a separate local official with knowledge of the matter said. Bloomberg News

U.S. SLAMS NORTH KOREA, VOWS SECURITY FOR SOUTH

The evolution of pyramiding and the ‘unwitting’ partners

SOUTH Korean President Park Geun-hye (right) and US Secretary of State John Kerry shake hands prior to a meeting at the Blue House in Seoul, South Korea, on Monday. Kerry is in South Korea where he will be discussing security issues amid fresh fears of North Korean belligerence and delivering a speech on cyber policy. SAUL LOEB/POOL PHOTO VIA AP

EOUL, South Korea—US Secretary of State John Kerry on Monday accused North Korea of a litany of crimes and atrocities while reassuring South Korea of America’s “ironclad” security commitments. Kerry blamed North Korea for continuing to break promises, make threats and “show flagrant disregard for international law” by continuing provocative nuclear and missile activity while oppressing its own people. He said North Korea’s “horrific conduct” must be exposed and vowed to ratchet up pressure on Pyongyang to change its behavior, particularly since it has rebuffed repeated attempts to restart denuclearization negotiations. “They have grown the threat of their program and have acted with a kind of reckless abandon,” Kerry said, referring to North Korea and its leadership, less than a week after South Korea’s spy agency said North Korean leader Kim Jong Un ordered his defense chief executed with an anti-aircraft gun for complaining about the young ruler, talking back to him and sleeping during a meeting Kim presided over. That allegation, if true, adds to concerns about the erratic nature of Kim’s rule, particularly after Pyongyang claimed last weekend it had successfully test-fired a newly developed ballistic missile from a submarine. Kerry called the reported killing just the latest in a series of “grotesque, grisly, horrendous, public displays of executions on a whim and fancy.” He said that if such behavior continued, calls would grow in the international community for North Korea to be referred to the International Criminal Court. South Korean Foreign Minister Yun Byung-se said “the severity of recent threats and provocations” made it essential to bolster the security relationship. The actions come despite a recent US

diplomatic overture to North Korea to discuss resuming denuclearization talks that have been stalled for the past three years. The US quietly proposed a meeting with North Korea in January, before the US and South Korea began annual military exercises that North Korea regards as a provocation. The two sides, however, failed to agree on who could meet and where. Kerry noted North Korea’s refusal to return to the table, saying “all they are doing now is isolating themselves further and creating greater risks to the region and to their own country.” He said the US remained open to talks but only if we.... have some indication from the leader of North Korea that they are serious about engaging on the subject of their nuclear program.” Kerry also expressed hope that the successful conclusion of a nuclear deal with Iran would send a positive message to North Korea to restart negotiations on its own atomic program. Kerry said he believed an Iran agreement could have “a positive influence” on North Korea, because it would show that giving up nuclear weapons improves domestic economies and ends isolation. “Perhaps, that can serve as an example to North Korea about a better way to move, a better way to try and behave,” he said. International negotiators are rushing to finalize a nuclear deal with Iran by the end of June under which Iran’s program would be curbed to prevent it from developing atomic weapons in exchange for the lifting of international sanctions that have crippled its economy. Nuclear talks with North Korea, which has already developed atomic weapons despite previous attempts to forestall it, broke down three years ago as it has continued atomic tests and other belligerent behavior, including ballistic missile launches. AP

WORLD

B3-1

BACK TO CLUTCH CITY Sports BACK TO CLUTCH CI CITY BusinessMirror

C |

T, M , 

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

JAMES HARDEN scores 31 points for the Houston Rockets who are in the Western Conference finals for the first time since 1997. AP

THE Clippers’ Jamal Crawford covers his face as he walks down the court in the closing seconds of Game Seven. AP

B D B Houston Chronicle

WENTY years on, Clutch City lives once more. Pushed to the verge of elimination in the National Basketball Association’s (NBA) seven Western Conference best-of-seven semifinals by the Los Angeles Clippers, the Rockets pushed back. Sunday afternoon, they shoved the Clippers aside for good, moving one step closer to a prize that has eluded the team and its home town for two decades. Playing before 18,463 fans at Toyota Center, most of whom wore red-and-yellow “Clutch City” shirts invoking the legacy of Houston’s mid-1990s champions, the Rockets beat the Clippers, 113-100, in Game Seven to advance to the Western Conference Finals against the Golden State Warriors. And so Clutch City marches on—albeit a different sort of aggregation with a different style of play, thrilling a new generation of Rockets fans who cheer Dwight Howard, James Harden, Josh Smith, Jason Terry and Trevor Ariza with the same ardor that 1990s fans showed Hakeem Olajuwon, Clyde Drexler, Kenny Smith, Sam Cassell, Robert Horry and Mario Elie. Much remains to be done, of course, beginning night’s opener against the favored Warwith Tuesday night’s riors and the league’s Most Valuable Player (MVP), Stephen Curry, in Oakland, California But all champions, Terry said, have similar characteristics, refined by adversity and forged under pressure. And, so far, he said, the Rockets have displayed those championship qualities. “I just think it’s our time,” Terry said. “Call it destiny, call it fate, call it what have you, but I’ve been here before. I’ve seen this story play out, and I just know that we have what it takes. “As long as you still have life and there’s still a game to play and you’re not eliminated, you have an opportunity. I thought we seized the moment, and we took advantage of our opportunities.” It was a fine mixture of 1990s nostalgia and 21st-century, up-tempo flash that greeted fans who slogged their way into Toyota Center in the midst of a midafternoon rainstorm. As they donned their Clutch City shirts, fans cheered at scoreboard shots of Elie and Drexler, seated courtside, to drive home the similarities between teams celebrated by 20 years. Some brought “Believe It” signs distributed by the Chronicle to celebrate the 1993-1994 and 1994-1995 champions to salute the current Rockets. Like the current team, the 1994-1995 Rockets trailed the Phoenix Suns 3-1 in a best-of-seven semifinal series. The Clutch City Rockets roared back to win three in a row, capped by Elie’s “Kiss of Death” three-pointer in Game Seven, and went on to win playoff series over San Antonio and Orlando to win the team’s second consecutive championship. The current team also dropped three of four to open the series but rebounded with a Game Five win at home and overcame a 19-point deficit to win Game night in Los Angeles. Six on Thursday night The parallels continued throughout this Game Seven, capped by a similar stake to the Clippers’ heart—a three-pointer by Houston’s Trevor Ariza that

EVERY FAN IN THE ARENA WAS GIVEN A RED SHIRT EMBLAZONED WITH THE WORDS ‘CLUTCH CITY’ IN YELLOW LETTERS, BRINGING BACK THE MONIKER OF THE 1994 AND 1995 TEAMS THAT WON BACK-TO-BACK TITLES. THESE ROCKETS LIVED UP TO THE NICKNAME, WINNING THEIR THIRD STRAIGHT GAME TO BECOME THE FIRST TEAM TO WIN A PLAYOFF SERIES AFTER TRAILING 3-1 SINCE THE PHOENIX SUNS DID IT IN 2006 AGAINST THE LAKERS.

gave the Rockets a 107-96 lead with a minute to play. After Ariza’s shot, which blunted a Clippers comeback attempt, cameras turned to Elie at courtside. As the crowd cheered, Elie blew a “Kiss of Death” symbol once more, for old times and, he said, for what may lie ahead for the current Rockets. “You can feel Clutch City II,” Elie said. “Eight more wins, and this team can write its own story.” After the 1994-1995 Rockets knocked off Phoenix, they faced a San Antonio Spurs team led by David Robinson, who won the MVP award over Olajuwon in similar fashion to Curry’s win this year over Rockets star James Harden. Olajuwon prevailed in the battle of big men, and the Rockets won the series in six games. “It’s a totally different series,” Elie said. “That one had two dominant big men. Now you have great shooters [led by Curry and Harden]. You have to guard the three-point line and control the pace. We can’t play at their pace. We need to establish [inside players] Dwight Howard and Josh Smith.” There were postgame celebrations and confetti showers aplenty afterward as fans cheered Harden, who had just 12 points at halftime but finished with 31, Howard (16 points, 15 rebounds), Ariza (four 3-pointers among his 22 points) and the rest. And then, fans who came to cheer stuck around to buy. Hundreds flocked to the team’s gift shop, cleaning out the initial shipment of Western Conference Finals T-shirts and forcing workers to close the store to new buyers while they cleared out the final round of customers. Maria Phillips of Brazoria, a season-ticket holder, walked out with five shirts and said she never doubted, even with the Rockets down 3-1, that she’d be in position for a Game Seven shopping spree. “Because I’m a loyal, diehard, season ticket-holding, Rocket-loving Red Nation fan,” she said. “Even when they were down 19 points, I believed in them. We’re Clutch City, we have the heart of a champion, and we have Dwight Howard and James Harden. “I think we beat Golden State in six games.” Phillips was more positive than was Rockets owner Leslie Alexander, who acknowledged he was dubious when the Rockets were down 3-1. “When you’re down 3-1, you think you’re not going to come back against a really good Clipper team, and we did that,” Alexander said. “It shows how competitive [the Rockets] are.... It’s always great to be back with the champs.” It was the ninth time in NBA history that a team had overcome a 3-1 series deficit to win a playoff series, and it cleared the way for the Rockets to advance to the conference finals for the seventh time in franchise history and the first time since the 19961997 team, which lost in six games to the Utah Jazz. Fans crowded downtown streets after the game, honking car horns in celebrations and vowing to wear their new championship T-shirts for the rest of the week, but the celebrations stopped at the Rockets’ locker-room door. After all, Terry said, there’s more to come. “We don’t get too high or too low,” he said. “Nobody came into this locker room and was celebrating, popping bottles, or anything of that sort. It was more like, ‘OK, we know what we’re capable of doing. We’ve got some more work to do.’”

ALMOST THERE, BUT... T

HE Clippers were almost there. Ahead 3-1 over the Houston Rockets in their best-of-seven, second-round playoff series, they were one win away from reaching the Western Conference finals for the first time in their 45-year history. They had three chances to get that win. They lost each one. “Being close ain’t good enough,” Clippers All-Star point guard Chris Paul said. After beating the Rockets in Games Three and Four by more than 20 points, the Clippers were being favored by some to win the championship, including Magic Johnson, who tweeted that he thought the Clippers were going to win the title. Johnson was all too quick to admit his mistake after the Clippers’ 113-100 loss in Game Seven, tweeting, “I thought the Spurs taught the Clippers how to win after a tough seven-game series. I was wrong. The Clippers are still the Clippers.” The Clippers allowed the Rockets to become the ninth team in NBA history

to recover from a 3-1 deficit in a playoff series. The Rockets will play the Golden State Warriors in the Western Conference finals, with Game One set for Tuesday evening in Oakland. “You’re angry, you’re shocked. You’re like, ‘Did this really happen,’” Clippers guard Jamal Crawford said. We have to re-group and go from there.” The Clippers had the odds stacked against them in Game Seven, considering the home team wins them nearly 80 percent of the time in that situation during an NBA playoff series. But what happened in Game Six was quite another story—the Clippers blew a 19-point lead in the third quarter by getting outscored, 40-15, in the fourth quarter. Rivers said on Sunday afternoon that he and his team will think about that stunning upset “for a long time.” In Game Seven, the Clippers never led and trailed by as many as 20 points. Rivers said that he thought the Clippers

wanted to win so badly, that they got in their own way. “I love my team and I love the fact that they wanted to win so bad that I thought, in my opinion, we almost couldn’t win,” he said. The Clippers will have a lot to think about during the off-season, high on their list will be the status of DeAndre Jordan. The center’s contract expires at the end of this season. As a free agent, Jordan can resign with the Clippers for millions of more dollars than anywhere else, but he’s been with the team for seven years and they’ve never gotten past the second round. Said Jordan of being a Clipper: “This is what I’m used to, but, like I said, I’m not thinking about that right now.” Crawford intimated that he doesn’t think the team needs any serious changes to become a championship contender, and he hopes the core will remain together. “We were one game away from the Western Conference finals,” Crawford said. Los Angeles Times

SPORTS

By Catherine N. Pillas

Second of three parts

usinesses employing the pyramid sales scheme continue to proliferate despite the campaign of the government and private-sector stakeholders representing legitimate direct sellers. This is because perpetrators have been constantly evolving to mask their operations. Trade Undersecretary for Consumer Protection Victorio Mario A. Dimagiba acknowledged that these scams continue because of the “innovation” of some fraudulent businesses. “That is a complicated area at the moment. Those who are using the pyramid sales scheme are already

PESO exchange rates n US 44.5120

sophisticated in their product mixing. Even if there is allegation that a product is of no value, it’s hard to determine,” Dimagiba explained. Back in the early 2000 when pyramiding schemes were exposed, spotting the questionable businesses through their product packages was easy, as, usually, the products sold were clearly of poor quality or unequal in value to the investment made.

Networking

People have come to associate the terms networking, network marketing and “multilevel marketing” with pyramiding—a business practice usually employed by fraudulent firms. Continued on A2

PHL ROASTED PIG FESTIVAL A float with roasted pigs dressed as boxers Manny Pacquiao and Floyd Mayweather Jr. is paraded through the streets of La Loma District in Quezon City to celebrate the annual Parada ng mga Lechon (Parade of Roasted Pigs) on Sunday. The annual festival, which dates back to the 1950s, promotes the district, which boasts of over 500 establishments selling roasted pigs, as a tourist attraction. The lechon (which originally means a suckling piglet) is prepared by slowly cooking the whole pig over charcoal, and is usually the most important dish on special occasions. AP/Bullit Marquez

Nobu Hospitality considers resort in PHL By Ma. Stella F. Arnaldo

Special to the BusinessMirror

FTER the initial success of its first hotel in the Philippines and Asia, Nobu Hospitality, owner and operator of Nobu hotels and restaurants, is considering to establish a resort south of Manila. The hospitality group—cofounded by award-winning Hollywood actor Robert de Niro, Chef Nobu Matsuhisa, and film producer Meir Teper —also expects Nobu Manila to contribute significantly to its bottom line in the years to come. The hotel, at the 5.2-hectare City of Dreams complex in Parañaque City, was formally launched in a simple ribbon-cutting ceremony on Monday, with taiko drummers playing

on both sides of the hotel entrance. In an interview with select members of the media, de Niro said: “There should be other locations in the Philippines, and this is the first Nobu Hotel. But, I am beginning to think that, maybe, one would be good, a resort, a Nobu Resort, with a beach [along the lines of Amanpulo]. If we found real estate, the right place and partners in the future, yes [we’d consider a new location in the Philippines].... I would love to do a Nobu Resort here.” De Niro is a frequent visitor to Amanpulo, a high-end luxury resort in Palawan. Trevor Horwell, chief executive of Nobu Hospitality, added: “We’re looking at possible locations in the southern market [like Cebu and Palawan]. If there’s a demand for a

luxury hotel and restaurant [then we will consider it]. He said Nobu Hotel is “doing very well” since it opened, hitting an average occupancy “in excess of 80 percent. So we’re pleased with the business coming into the hotel. We think it will make a significant contribution to our bottom line.” Sources in the hotel revealed that the bulk of the hotel’s guests are locals checking in for “staycations” as well as visiting balikbayan (overseas Filipinos working or living abroad), who like the property’s strategic location, being near the international airport, malls and other points of interest. Horwell is unfazed with the decrease in Chinese tourists in the Philippines, which the City Continued on A8

n japan 0.3730 n UK 70.0174 n HK 5.7432 n CHINA 7.1723 n singapore 33.7186 n australia 35.8621 n EU 50.9484 n SAUDI arabia 11.8696 Source: BSP (18 May 2015)

BMReports BusinessMirror

Tuesday, May 19, 2015

news@businessmirror.com.ph

The evolution of pyramiding and the ‘unwitting’ partners Continued from A1

Direct selling, network marketing and multilevel marketing, which are all generally personto-person selling, are legitimate strategies to sell products according to Dimagiba and Direct Selling Association of the Philippines (DSAP) President Joey Sarmiento. It is used by organizations to distribute relatively unknown brands, be they beauty-care or health-and-wellness goods—directly from a manufacturer to the consumer—without the additional costs incurred through additional channels, such as distributors, retailers and wholesalers.

The blur

Sarmiento said direct selling and network marketing are essentially the same in that the product is sold directly to the customer. The only difference is the commission schemes employed by the two selling strategies. He said the focus of the two strategies is on sales, and not on recruitment of members. The Department of Trade and Industry makes the same distinction between a legitimate multilevel marketing firm and an illegal pyramiding company: The source of earning must come from the sales of the product and not from recruitment. Padding the prices of products,

or overpricing, is the usual method of pyramid sales companies to facilitate their commissions and bonuses for the recruitment scheme. This blurs the line between pyramiding and direct selling.

Evolution

Those who say they are networking companies first offered expensive-looking or reputable products, but still emphasize on the recruitment part in generating income for the so-called dealers, members, sales associates, or in whatever way they call those who invested money in them. On the aspect of quality, Dimagiba reiterated there are no established rules to determine if a product is of value or not. “If the product is not defective or harmful, then who’s to say it has no value? We really need to look at the business model to see,” Dimagiba said. Net work ing companies that proved to be fly-by-night firms also started to seek certification from regulating agencies and post these on their promotional materials or web sites to further solidify their “legitimacy.” Some have gone a step further— they also partnered with legitimate companies and established brands. One example was iGen Portal International Corp. (IPIC), a self-proclaimed marketing firm that started operations in early 2000. T he net work ing company partnered with leather-goods manufacturer Manels and distributed major brands, such as: Manels Redwood, Kilaloe by Maphisto and Blue Earth jeans. Other brands that IPIC sought to distribute through its “independent distributors” are Sportshouse, Penshoppe, Girbaud, Bench, Human, Mossimo and Skin White Derma, to name a few. After operating for a few years, IPIC went out of business. Experts say networking companies, by depending on the recruitment and not on recurring sales, end up closing shop after just a few years because the market will eventually be saturated. This is because, if a company re-

quires a distributor to recruit five people to earn his commission, at the depth level of 8, the number of people under the distributor would reach 400,000. A particular product being sold could only be attractive for so long in the market, and people down the line—or at the base—will find themselves unable to find new buyers or recruits and recover their investment. The pyramid will eventually collapse, and the only ones who have benefited are the ones on top, who have already profited from the recruitment fees. Another evolution is the shift from offering luxury goods, or non-essential products, to necessity goods, such as mobile load. More and more marketing companies are peddling electronic load —highlighting the partnership with telecommunication firms, such as Globe and Smart—as their main product, stressing that, as a necessity, there is a ready market for electronic load, and, thus, an easier product to sell.

E-load now a favorite of networkers

1BRO (One Basic Resource of Opportunities) Global advertises itself as a multilevel marketing firm in the telecommunications sector, with offices in Ortigas. The firm is housed in Burgundy Empire Tower on the 15th floor, and its atmosphere upon entering is encouraging: The office is moderately sized, well-lit and clean. “Sabihin mo kung sino mga kaibigan mo at sasabihin ko kung sino ka. Kaya bakit hindi mo subukang mag-imbita ng mga kakilala mo dito, para sila rin makinabang sa opportunity na ito?” said Gerald Bautista, a 1BRO agent, to a possible recruit, at the end of his spiel. 1Bro Global, a company founded by one Rico D. Lorredo, is described in its web sites as a marketing company that provides infinite growth and possibilities to its members. The company is said to have 2,000 members nationwide since starting operations in October 2012

Bautista, described 1Bro Global as mainly an e-load franchising business with products, such as cell phone, landline and online cards, plus “400 other products.” Bautista said they were able to distribute the prepaid products, through Load Central’s (their platform) tie-ups with companies. 1Bro Global, Bautista said, is powered by Load Central, a distributionsolution provider for prepaid products, such as e-load, auto-load, prepaid call cards, and online gaming cards. 1Bro has, indeed, inked an agreement with Load Central as an authorized dealer, said Kaye Intal, head of sales and marketing at Uniwiz Trade Sales Inc., the developer and owner of the Load Central platform. Uniwiz Trade Sales Inc., in turn, is owned by the Berjaya Group. Load Central offers what is known as a modern e-loading system: The loading platform dispenses any brand of prepaid products online, or through SMS, to distributors and end-users. 1Bro Global, according to Intal, is an authorized dealer of Load Central, but it is up to the discretion of 1Bro Global to pair their distribution model with other “options for earning.” Intal stressed they only provide the online platform for the e-loading business, and nothing else. “We have no issue with 1Bro Global. They’re our biggest partner , so far, no one has complained about them, at least to us. Pag merong naloko, that’s when we investigate them,” Intal said. 1Bro Global, a Securities and Exchange Commission (SEC)-registered firm, offers the system of Load Central; basically to sell over 400 prepaid products through the convenience of a modern e-loading business. 1Bro Global also gives a similar offer of up to 25-percent personal discount on prepaid products when the products are sold, but highlights other “earning options” not offered by Load Central. For a fee of P3,988, the member can become a dealer of 1Bro Global, and Bautista detailed the “perks,” referring to the earning potentials of signing as

a dealer, as opposed to a retailer, who can only sell products. First a dealer can charge every new retailer he recruits P200, but only for the activation of the SIM. In Load Central, one can become a retailer for P1,000, but this will be his initial capital to start selling and is not considered a registration fee. “Kita mo na ang P200, pwede mo nang ibulsa [that P200 is already your earning that you can pocket],” Bautista said. The second way to earn is another referral incentive: As a dealer, you will receive P500 from 1Bro Global for every dealer you refer, an “unlimited” opportunity with no cap on referrals. 1Bro Global also offers a “pairing bonus,” wherein, if your two direct recruits (Team A and Team B), are able to sign up a dealer each, constituting a pair under your system, you get P500 for every pair. So, if your two dealers get 10 new dealers each under them, you will receive P5,000 and so on. Under this offer, the maximum earning potential, per day, is P 30,000 Bautista said. The agent also mentioned an indirect referral bonus, wherein a dealer is entitled to 10 percent of the pairing bonus of his direct referral’s income. So, when a direct recruit earns P100,000 a month, Bautista said, the dealer gets P10,000 in return, just as an “added income.” Last, there is an indirect referral bonus of P25 for every indirect recruit of his direct recruits from the second level up to the eighth level. Bautista said these options can further be maximized if an interested dealer can take up to three accounts, essentially being his own “direct recruits,” boosting earning potential from P30,000 per day to P80,000. The triple-account package is priced at P11,966. Bautista clarified that the fees do not include load credits but come with complete support in terms of training to use the loading system and how to endorse the business to others. Other marketing firms, such as PayBux Philippines and 410 Business Empire Philippines, have latched on to the same idea of distributing electronic load through network marketing. The SEC has already issued an advisory last year on 410 Business Empire Philippines for illegally selling consumer products. While dubious marketing outfits enjoy the legitimacy lent by associating with established companies, the unwitting partners are in danger of getting their names and reputations dragged through the mud if the marketing companies go bust. With this, the private sector led by DSAP, has long been on the crusade to root-out pyramid sales schemes through information campaigns. However, because of the rapid evolution of the scheme operators, DSAP now plans to combat them through stronger means: legislation. To be continued

Bangsamoro. . . Continued from A8

in roads, electricity and communications that has sat down and they’ve gone ahead of the geotagging and the engineering of the roads along with bringing in power and communications,” he said. “It’s really a comprehensive development. Building the roads, bridges, comminications and power that you need while also having job-generating investments are going on the same time.” The World Bank has an initial $85-million fund for the development of Mindanao, $15 million of which specifically allocated for Bangsamoro. Perrine said people “are ready to invest today without waiting any longer” for the passage of the Bangsamoro basic law, which aims to create the new Bangsamoro juridical entity replacing the ARMM.

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The Nation BusinessMirror

House panel sets probe of PCGG’s ‘Payanig’ bid By Jovee Marie N. dela Cruz

HE House of Representative Committee on Metro Manila Development has invited concerned parties to discuss the Presidential Commission on Good Government’s (PCGG) move to bid out the 18.4 hectare prime commercial space known as the “Payanig sa Pasig” lot. Liberal Party Rep. Winston “Winnie” Castelo of Quezon City said he hopes that the resource persons who were invited will shed more light on the facts surrounding the government auction, which has been mired in various legal issues and unresolved ownership claims. “Considering the size, location, and value of the property, this is definitely a matter of public interest,” Castelo said. “More importantly, there have been allegations that the government has conducted this bidding without the clear legal authority to do so. In the spirit of transparency and accountability, this must be conclusively addressed,” he added. The PCGG is claiming ownership of the property based on a reconstituted title obtained after the February 1986 People Power Revolution, through a deed of assignment executed by the late Jose Y. Campos. At that time, Campos, an alleged crony of deposed President Ferdinand Marcos, ceded the property to the government in exchange for immunity from suit. Under the law, however, a reconstituted title is rendered void if the original title still exists.

A company called BLEMP Commercial of the Philippines Inc. however, claimed that it is in possession of the titles—Transfer Certificate of Title 337158 for 16 hectares and TCT 469702 for 2.4 hectares—that it acquired in the years 1971 and 1975. Moreover, records indicate that BLEMP has paid close to a billion pesos in real-estate taxes for the property in question. “The purpose of any bid or auction is to assign full ownership of an asset to a winning bidder,” explained Dennis Manalo, the legal counsel of BLEMP. “How exactly is the PCGG going to do that? By turning over a reconstituted title? Even a first-year law student will tell you how utterly useless that piece of paper is, since the original title still exists,” he added. In its notice of public bidding published in March, the PCGG clearly stated that the property was being auctioned off in an “asis-where-is” basis, and, likewise, reminded interested parties that there were problems involving existing tenants, litigation, and even eventual possession. Despite these unusual stipulations, at least eight companies have expressed their intention to participate in the bidding. “Basically, the PCGG is trying to sell a property that does not belong to it at a rock-bottom price, hoping that someone will take the bait and bite,” Manalo said. “It is fairly straightforward to determine who the rightful owner of a property is. Once we present the facts to the House Committee, it will become very clear just how underhanded this PCGG move is.”

Editor: Dionisio L. Pelayo • Tuesday, May 19, 2015 A3

Law deans warn of criminal prosecution of those who disclosed AMLC report

By Joel R. San Juan

WO law-school deans on Monday warned of the possible criminal prosecution of those behind the disclosure of the Anti-Money Laundering Council (AMLC) report on the assets of Vice President Jejomar C. Binay, his family and alleged dummies that became the basis for the freeze order issued by the Court of Appeals (CA). Ranhilio Aquino of the San Beda College Graduate School of Law and Pacifico Agabin of University of the Philippines College of Law said the Anti-Money Laundering Act (Amla) has a confidentiality provision and prohibits disclosure of the AMLC report and “any other information in relation thereto.” “There is confidentiality in respect to the report of the covered institutions. On the part of the AMLC, the confidentiality is in relation to judicial and prosecutorial

processes,” Aquino said. He added that the Amla also mandates secrecy on the issuance of freeze order by the court on AMLC petition. Aquino stressed the confidentiality provision on freeze order is intended to prevent the dissipation of the accounts and assets covered by the freeze order. “The freeze order is meant to prevent the suspected person from dissipating the assets—selling, transferring, alienating or con-

Red Cross hosts conference on labor migration

cealing them. This is the reason for the confidentiality requirements in the law,” he pointed out. Aquino explained that the confidentiality rule under the latest version of the law, Republic Act (R A) 10365, applies to AMLC and “covered institutions” or the banks, stockbrokers and investment houses that are obligated to report to the council. “AMLC and these covered institutions are not supposed to disclose the report and the freeze order,” he added. Agabin shared Aquino’s opinion, saying that the AMLC could be held liable if it would be found that the council breached the confidentiality rule. He stressed the importance of keeping AMLC reports confidential to avoid any leakage. Asked if AMLC officials in the Binay controversy can be held liable for the leak of the report, answered in the affirmative, adding that they can even be subjected to an investigation. “The provision on confidentiality applies to AMLC persons so they will not leak the information to account holders before freezing,” he added.

Business group official’s citizenship still in question

PHILIPPINE Red Cross (PRC) Chairman Richard Gordon shakes hand with Administrator Hans Leo Cacdac of the Philippine Overseas Employment Administration after the signing of an agreement to work together for the protection of women household service workers. The signing of the memorandum of agreement was witnessed by (seated, from left) Saleh Ali Al Muhanadi, secretary-general of the Qatar Red Crescent Society, PRC Secretary-General Gwendolyn Pang and standing (from left), members of the PRC Board of Directors, International Federation of Red Cross and Red Crescent Societies Secretary General Elhadj As Sy, Bahrain Red Crescent Society General Secretary Fawzi Abdulla Amin and Qatar Red Crescent Director Rashid Saad Al Mohannadi.

ITH the increasing cases of abuse and exploitation of migrant workers all over the world, the Philippine Red Cross (PRC) took the lead in addressing the matter of women migrant workers and the humanitarian aspects involved in their employment by hosting the two-day “Manila Conference on Labor Migration 2015,” with the International Federation of Red Cross and Red Crescent Societies (IFRC). Their focus was on the female household service workers. “The conference aims to establish protocols that would guide the Red Cross movement in extending assistance to women migrant workers. We aim to come up with measures on how we can engage our governments so we can better protect these most vulnerable and provide dignity and respect for them,” PRC Chairman Richard Gordon said, in his keynote address at the conference’s opening. During the conference, the Red Cross-Red Crescent (RCRC) societies took a firm stand to protect the rights of labor migrants, with a particular focus on women household service workers, with a declaration of com-

mitment that makes the global humanitarian organization a proactive player in the issue of labor migration. The Manila Declaration on Women Migrant Workers was unanimously adopted and confirmed by the representatives and leaders of RCRC societies in attendance and external partners, including government agencies, non-governmental organizations and international groups, like the International Organization for Migration and the International Labor Organization. The conference focused on the need for upholding the dignity and providing respect to the migrant workers. Part of the Manila Declaration reads, “We, the National Societies, commit to strengthen our partnerships within and across countries in order to ensure the working environment of migrant workers in host countries fosters tolerance and cultural respect, and where the individual needs and vulnerabilities of migrant workers, irrespective of their status, are properly addressed, consistent with the principles of humanity and universality.” Agreeing that migration is not only an issue of people movement,

but also involves basic human rights and the protection of human dignity, the RCRC national societies declared their desire to adopt a common position, take a collective action and utilize their humanitarian network to protect the rights of labor migrants, particularly women household service workers. As the highest IFRC official in attendance, Secretary-General Elhadj As Sy commended the PRC and Gordon for their efforts on advocating protection for migrant workers. “I want to pay tribute to the leadership of Chairman Gordon. As a member of IFRC’s governing board, and, even before that, Chairman Gordon has been a strong voice on the international stage advocating on behalf of migrant workers,” As Sy said. To further strengthen the Red Cross’s stand on labor migration issues, the PRC signed a memorandum of understanding (MOU) with the Philippine Overseas Employment Administration (POEA), represented by its administrator Hans Leo Cacdac. The PRC and POEA commit to work together to protect the rights

of all migrant workers, with a focus on women household service workers, who are the most vulnerable. Specifically, the MOU between the PRC and the POEA will focus on joint collaborative activities, projects and programs; undertaking of measures for information and resource-sharing to enhance the delivery of necessary and essential services to Filipino migrant workers and their families; and mutually recognizing the critical leadership role of the Philippines through the PRC and the Philippine government, in the international advancement and promotion of the rights, welfare and protection of all migrant workers. Part of the solution that the RCRC is proposing is the establishment of a humanitarian lifeline, by establishing an international call center, which migrant workers can contact to reach their families, agencies and governments in case of emergencies. The POEA committed to supporting the initiative of the PRC to establish and pilot-test the Red Cross-Red Crescent Humanitarian Lifeline for migrant workers, especially women migrant household service workers.

But both law deans said the media cannot be held liable for reporting the supposedly confidential court order and AMLC report. “The moment it becomes a matter of news, then, whoever reproduces the news incurs no liability. Only the source is liable,” Aquino pointed out. The CA’s First Division on Monday last week, issued a freeze order on the alleged bank deposits and assets of the Binays and several others linked to them, based on the petition filed by the AMLC. The appellate court gave weight to the AMLC’s investigation that found probable cause to link the individual and joint bank accounts of the Vice President, Gerry Limlingan, Ebeng Baloloy, Antonio Tiu, some members of the Chong family, some companies linked to the Binay family and, even whistle-blower and Binay’s former close ally Ernesto Mercado. According to the CA, the bank accounts of the Vice President, his wife Elenita, their son Makati Mayor Junjun Binay and other Makati officials involved in the case, contained amounts that were inconsistent with those they declared in their respective statements of assets, liabilities and net worth.

HE citizenship of business executive and Philippine Chamber of Commerce and Industry (PCCI) board member Joseph Sy is still being questioned, despite a resolution recently issued by the Bureau of Immigration (BI) affirming that he is a Filipino citizen. Sy, the president of Global Ferronickel Holdings Inc. (Global Ferronickel) and a member of the PCCI is being accused of using spurious documents, including an allegedly forged baptismal certificate, to support the late registration of his own birth as a Filipino. Complainant Nestor Macaldo Cas, in his motion for reconsideration filed before the BI, pointed out that Sy filed the late registration of his birth on December 28, 2007—41 years after his birth on October 10, 1966. The supporting papers for Sy’s late registration of birth included his certificate of baptism issued by Christ the King Parish in Filinvest II, Batasan Hills, Quezon City. The baptismal certificate claimed that Sy was baptized in the said par-

ish on December 28, 1966. But Cas pointed out that Filinvest did not have a church at the time Sy was allegedly baptized there. Cas, through ADBLACCC Law Office lawyer Renny Domingo, noted that, based on the history of Christ the King Church, the idea of constructing a chapel within Filinvest was conceived only in November 1984; and it was only in August 1986 that the homeowners decided to name the chapel Christ the King. The church started recording the baptisms that took place there only on April 28, 1991, when the late Cardinal Jaime Sin presided over the Canonical Erection of the parish community. In effect, Cas said Sy’s baptismal certificate claimed that he was baptized in 1966 to a church that was constructed only in 1991. Cas, a concerned resident of Zambales, where Global Ferronickel operates, has filed a case for deportation against Sy at the BI. Cas is accusing Sy of faking his Filipino citizenship to legitimize his mining investments. Joel R. San Juan

Cops, NBI agents nab ex-policeman linked to Australian’s kidnapping By Rene Acosta

FORMER policeman, who was implicated in the kidnapping of Australian Warren Rodwell in Zamboanga four years ago, was arrested last week in Malaysia by the National Police’s Anti-Kidnapping Group (AKG) and National Bureau of Investigation (NBI) agents. Sr. Supt. Roberto Fajardo, AKG director, identified the suspect as former Sr. Police Officer 2 Jun Malban, who was arrested in Kota Kinabalu, Malaysia, in coordination with Malaysian authorities and the International Police Organization (Interpol). The former policeman was captured by AKG personnel and NBI agents on May 15 in Malaysia through the strength of a warrant of arrest for kidnapping that was issued by Judge Josefino Bael of Branch 24 of the Regional Trial Court in Ipil, Zamboanga Sibugay. Fajardo said Malban was implicated in the kidnapping of Rodwell in Ipil, Zamboanga, in December 2011. The retired Australian policeman,

who was married to a Filipino from Zamboanga, was released on March 23, 2013, by his abductors after his family paid an undisclosed amount of ransom. Rodwell had identified Malban as the negotiator and spokesman for the Abu Sayyaf Group (ASG) during his captivity, with the former policeman using an alias as Michael Soo-Zue. Fajardo said police investigation determined that Malban was a cousin of ASG leaders Khair Mundos and Borhan Mundos. Khair was the “emir” of the ASG in Basilan before he was arrested last year in Parañaque. After the kidnapping of Rodwell, Malban went absent without leave and went into hiding until his arrest by the Malaysian Police for violation of immigration laws on April 28 in Lahad Datu, Sabah. Fajardo said Malban’s arrest was the result of the close coordination between the National Police, the NBI, the Presidential Antiorganized Crime Commission and their Malaysian counterparts, as well as the Interpol.

Economy BusinessMirror

A4 Tuesday, May 19, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Open trade, investment regime in services seen to bolster growth, employment in Apec economies

ORACAY ISLAND—AsiaPacific business leaders are calling on the 21 membereconomies of Asia-Pacific Economic Cooperation (Apec) to adopt an open trade and investment regime in services, in an effort to generate growth and more jobs in the region. Apec Business Advisory Council 2015 Chairman Doris Magsaysay Ho said service-related sectors, particularly manufacturing, agriculture and environment, have the potential power to spur inclusive growth in the Asia-Pacific region. “The services sector is the single biggest creator of jobs in the region, accounting for 60 percent of employment. It has become the most dynamic segment of international trade,” she said during the PublicPrivate Dialogue (PPD) on Services held here on Sunday. Ho noted that freer trade and investment in services offer business opportunities even to smaller companies, professionals and service providers who focus more on domestic markets. In the Philippines, she said, services in business-process management, creative services, tourism, ship repair and fabrication, among

others, have become key drivers of the country’s economic growth. She also cited a report by the Asian Development Bank Institute and Pacific Economic Cooperation Council indicating that the services sector accounts for 68 percent of value-added in the Asia-Pacific region, making it the largest sector in the regional economy. Ho said Apec member-economies need to explore ways to seize new growth opportunities offered by the services sector. “The services sector are now at the center of a major business transformation in Apec, contributing more intensively to the value chains in manufacturing and agriculture and to the way business trades and invests,” she added. The PPD is a prelude to the first Regional Conference of Services Coalitions and Service Industries at the margins of the Third Apec Senior Officials’ Meeting in September in Cebu. The PPD Series and the Regional Conference are organized in support of the proposed Apec Services Cooperation Framework, a Philippine initiative to guide the Apec’s collaborative work toward enhanced services competitiveness. PNA

briefs

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SMEs ‘vulnerable’ to disasters despite DRRM efforts—PIDS

By Cai U. Ordinario

he lack of credit facilities and safety nets make small and medium enterprises (SMEs) “vulnerable” to disasters, according to state-owned think tank Philippine Institute for Development Studies (PIDS).

PIDS senior research fellow Marife Ballesteros said in a presentation at the recent 2015 Apec Study Centers Consortium Conference that disasters can compromise capital, supply chains, product markets and labor, as well as business continuity and recovery. “SMES are more vulnerable [than large enterprises] because they have limited coping mechanisms. SMEs usually have no or limited disaster insurance and limited access to credit, and most of them have no business continuity, emergency management, or disaster-preparedness plans,” Ballesteros said. Ballesteros pointed out the insuf-

ficient recovery funds for farm-based and urban-based small industries, such as the availability of loan and grant for these businesses. Another issue highlighted by Ballesteros is the absence of specific policies for workers’ protection in times of calamities. She emphasized the importance of the people side of business during disaster. “Resilient supply chain begins with resilient citizens and employees and it is a concern of both business and the government,” she stated. Ballesteros cited the case of the Philippines, where approximately 98 percent of all enterprises are micro to small.

She noted that the country has a well-developed policy framework and action plans for disaster-risk reduction and management (DRRM). However, this disaster-response strategy has not been effectively translated into local and business plans. To address these problems, Ballestros recommended the establishment of key transport hubs and strategic communication systems that take into consideration extreme weather events. She also highlighted the need for predisaster agreements as disruption of public sector operations and services can occur during times of calamities. One of these is the creation of networks or partnerships between national and local, and public and private entities, and the adoption of flexible regulations on labor, as well as laws on importation and exportation. In addition, the government must support the development of financial security instruments such as catastrophic insurance, micro insurance, or a business-disaster fund. She also suggested the integration of DRRM in the Magna Carta for SMEs and Barangay Micro Business Enterprises, as well as in the

FTAAP crucial for non-TPP members, economist says

salary increase for nurses sought A lawmaker belonging to the Makabayan bloc has appealed to his colleagues to support the country’s nurses by increasing their basic monthly salary to P25,000. In a privilege speech, Bayan Muna Party-list Rep. Neri J. Colmenares said the Salary Grade 15 with an equivalent of P25,000 monthly salary for nurses under the Nursing Act of 2002 was never implemented and was nullified by the Salary Standardization law 3 (SSL 3) in 2009. Colmenares said based on SSL 3, a Nurse 1 position has an equivalent of P18,000 monthly salary. In private hospitals not covered by SSL 3, some nurses even receive a meager P6,000 monthly salary, Colmenares added. In the provinces, especially in fourth to sixth class municipalities, the salaries given are still based on the second and third tranches of SSL 3, eventhough the fourth tranche of SSL 3 was fully implemented since year 2012, Colmenares added. According to Colmenares, while the Philippines is the No. 1 exporter of nurses around the world, reports show that there are still some 200,000 unemployed nurses and 300,000 misemployed nurses in the country. PNA

p.a.f. to overhaul 2 uh-1h helicopters

The Philippine Air Force (PAF) is setting aside P31,771,890 for the overhaul and repair of the engine assemblies of two UH-1H “Huey” helicopters. These helicopters are the ones with tail numbers 513 and 225. The money will be also be used to acquire spare parts needed for the overhaul. Bid conference is scheduled for May 21 at 1 p.m. at PAF Procurement Center Conference Room, Villamor Air Base, Pasay City. Bid submission and opening is on June 2, 9 a.m. at the same venue. Prospective bidders should have an experience in similar project within the last five years. The PAF is known to operate 20 to 30 units of various models of the “Huey” helicopter. The latter is a military helicopter powered by a single turboshaft engine, with two-bladed main and tail rotors. PNA

Fire eater Street dancers and drummers perform at La Loma Lechon Festival along Retiro Street in La Loma, Quezon City, as part of the highlights of the La Loma Lechon Festival 2015 on Sunday. A traditional “Parada ng mga Lechon” was also held as a form of homage to the Nuestra Señora de Salvacion, the patron saint of La Loma District. PNA

Ad Summit returns to Subic in March

dnd allots p1.7m for of dental, medical equipment

TO ensure that all military personnel are getting adequate dental and medical care, the Department of National Defense (DND) has allocated the sum of P1,751,693.53 for the acquisition of modern and up-to-date medical equipment. The money will be sourced from the Armed Forces of the Philippines (AFP) Modernization Program. To be acquired are one unit of vacuum-assisted comprehensive dressing device which should not cost more than P500,000; intermittent compression machine costing P501,693.53 and pulley and tree worth P750,000, for a total of P1,751,693.53. PNA

sc: ofws can choose medical clinic for physical exam

The Supreme Court (SC) has ruled that overseas Filipino workers (OFWs) can now choose the medical clinic to undergo pre-employment physical examination. This after the SC denied the petition of the GCC Accredited Medical Clinics Association (Gamca) to stop the implementation of the law requiring their clinic members to cease and desist from implementing the decking system. In an eight-page resolution released on Monday, aside from denying the petition filed by the Gamca, the SC also suspended the permanent injunction issued by the Regional Trial Court in Pasay City Branch 108 on August 10, 2012. “The DOH [Department of Health], as an executive department, has the solemn duty to faithfully implement the prohibition against the decking practice on all DOH-accredited medical clinics,” the SC en banc said. PNA

phivolcs launches ‘valley fault system atlas’

The Philippine Institute of Volcanology and Seismology (Phivolcs) of the Department of Science and Technology (DOST) launched on Monday the Valley Fault System (VFS) Atlas, a handbook of large-scale maps showing in more detail to boost earthquake preparedness in Metro Manila. Phivolcs Director Dr. Renato Solidum Jr. said the VFS Atlas, a detailed handbook of large-scale maps showing areas traversed by the Valley Fault System, was distributed to local government officials at the Phivolcs building, Diliman, Quezon City. “The VFS will serve as a guide in making sure that areas traversed by active faults are avoided as sites of houses and structures and considered in various actions to enhance the safety and resilience of communities to strong earthquake events,” Solidum said during the launching held at the Phivolcs Auditorium in Quezon City. PNA

MSME Development Plan. “SMEs should continue to build partnerships with other multinational organizations inside and outside of the Apec region, especially in the areas of information sharing and promotion of regional resiliency-assessment programs,” Ballesteros said. “Apec member-economies can also have dialogues, capacity-building activities, and cross collaboration in resource and technology sharing, such as in hazard mapping and information-technology infrastructure,” she added. Over 97 percent of businesses in Apec are SMEs, providing jobs to more than half of the workers in the Asia-Pacific region. However, Apec member-countries are prone to intense natural disasters. Apec’s 21 member-economies, which account for 52 percent of the earth’s surface and 59 percent of the world’s population, experience over 70 percent of global natural disasters. The Apec Study Centers Consortium Conference 2015 was held on May 12 and 13 in Boracay, Aklan Province, as part of the Second Senior Officials Meeting and Related Meetings of Apec 2015.

Subic Bay Metropolitan Authority Chairman Roberto V. Garcia (center) and Ad Summit Overall Chairman Alex Syfu (second from left) sign a memorandum of agreement for the hosting of the Ad Summit Pilipinas 2016 at the Subic Bay Exhibition and Convention Center. Witnessing the signing are (from left) Angel Guerrero, cochairman for Programs; Maddona Tarrayo, cochairman for administration; and Norman Agatep, chairman for PR.

By Henry Empeño Correspondent

UBIC BAY FREEPORT—Ad Summit Pilipinas, billed as the country’s premier learning event in the advertising industry, will be back here in the Subic Bay Freeport next year after its successful launch at the same venue in May last year. This developed after Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia signed an agreement with officials of the Association of Accredited Advertising Agencies of the Philippines (4As) for the second staging of the Ad Summit at the Subic Bay Exhibition and Convention Center (SBECC). Garcia said on Monday that the return of Ad Summit here in March next year proves just how Subic has cemented its reputation as a worldclass convention venue.

Garcia signed the agreement with Ad Summit Pilipinas 2016 Chairman Alex Syfu of DM9JaymeSyfu, along with Hermie de Leon, cochairman for Ways and Means; Angel Guerrero, cochairman for programs; Maddona Tarrayo, cochairman for administration; Norman Agatep, chairman for PR; and Vanne Tomada, Ad Summit chief of staff. Thanking the organizers for bringing back Ad Summit Pilipinas to Subic, Garcia said the event “bestows further honor” to Subic, which has been chosen previously by the Department of Tourism as the convention capital of Central Luzon. “I said in 2014 that that would be the first of many Ad Summits to be held in Subic—and this proves me right,” Garcia said. He added that Subic would be more than willing to host the Ad Summit every time the organizers wanted to have it in the free port. The first Ad Summit was held at the SBMA-

managed SBECC from May 7 to 10, 2014. The event drew more than 2,000 advertising and marketing practitioners. With the theme “Age of Enlightenment,” the 2014 event tackled how advertising and marketing professionals could play a more valuable role in the society. It also featured the Kidlat Awards, which is given annually by 4As Philippines’s Creative Guild for the country’s best and most creative advertising work of the past year. Garcia said the second staging of the Ad Summit in Subic promises to be more exciting to the participants, as the SBMA and the Subic business community had been developing more facilities and attractions for visitors and tourists. SBECC, which is said to be the biggest convention area in Central Luzon at a total floor area of 12,000 square meters, will also be renovated for the upcoming event, Garcia said.

ushing for Free Trade Agreement on Asia Pacific (FTAAP) will be crucial for countries in the Asia Pacific that are nonmembers of the Trans-Pacific Partnership (TPP) agreement, US-based think tank IHS Global Insight said. IHS Asia-Pacific chief economist Rajiv Biswas told the Philippines News Agency that there will be a greater push for many Asia-Pacific Economic Cooperation (Apec) economies for the establishment of FTAAP if TPP will be implemented in the near future. “If TPP is implemented in the near future, this could create some negative trade diversion impact on Apec members that were not part of the TPP, so this increases the focus of many Apec countries to move forward with the FTAAP negotiations,” Biswas said. Among the 21 Asia-Pacific economies, only six are not members of the US-led TPP including China, Hong Kong, Indonesia, Papua New Guinea, the Philippines, Russia and Thailand. “A key difference between these two trade liberalization initiatives is that TPP only includes 12 nations, whereas the FTAAP would cover all Apec countries, including China and Russia, which are not included among the TPP competitors,” the economist pointed out. “Therefore, the geographic scope of the FTAAP would be an important positive factor for many Asia-Pacific countries that are not part of the TPP negotiations,” he stressed. The FTAAP—an initiative of China during its hosting of 2014 Apec meetings—is currently in the feasibility stage with an Apec special task force being formed to assess the potential scope and impact of the FTAAP. FTAAP will be among the focuses of Apec Ministers Responsible for Trade meeting hosted by the Philippines this week in Boracay Island in the province of Aklan. During the meeting, the 21 Apec economies target of coming up with terms of reference for the collective strategic study on FTAAP that will be endorsed during the Apec Economic Leaders’ Meeting in November. PNA

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Tuesday, May 19, 2015 A5

P28-billion casino resort facility seen to rise in Lapu-Lapu City

APU-LAPU CITY—A proposed P28-billion casino resort will soon rise in LapuLapu City, creating more than 6,000 jobs and help the city attract more tourists and earn more revenues, Lapu-Lapu City Mayor Paz Radaza said. Radaza said a US investment group and a Macau-based gaming operator have expressed their intent to build a 14-hectare casino resort in Barangay Mactan. The Sino-American Gaming Investment Group and the Macau Resources Group Ltd. will reportedly shell out $650 million, or roughly P28 billion, to build the Mactan Leisure City. Their target is to open it in 2017. Radaza said the resort will have three seven-star hotels with 1,350 rooms and a high-end mall. She said the casino resort will help the city attract even more tourists and more chartered flights to the city since the casino’s market

is mainly foreigners. The local economy will also benefit from the project, with tourists staying longer in the city because of casino activities, Radaza said. She said the casino resort will hire about 6,500 people. Apart from the millions in business and real property taxes, the city will earn from its operation, the casino resort will also spur more economic activities as it will need local suppliers to serve its clients. Radaza said she has endorsed the project to the Lapu-Lapu City Council, which must submit a “letter of no objection” to the Philippine Amusement and Gaming Corp. before the construction of the casino can start. Radaza said she is getting the parish church officials to support the project. She said the casino should not be a cause for alarm for church officials because its target clients are not locals but foreigners. PNA

Abad to govt workers: Help weed out graft, corruption

udget Secretary Florencio B. Abad is urging government employees to help curb graft and corruption and improve competitiveness to attract trade and investments in the country. He said the newly signed Executive Order 181 by President Aquino that approves an incentive bonus for government employees is part of the government’s measure to improve competitiveness and sustain economic growth. “Our civil servants are behind every measure that has fueled greater economic growth and governance reform in the country,” Abad said in a news statement. An initial P30.6 billion will be released for the incentive bonus of government employees and uniformed personnel such as police officers and firemen. The incentive bonus is patterned after that of the private corporations to improve the services of their employees, Abad said. “We’re matching sound practices already followed by the private sector,” he added. The incentive bonus will also

cover military personnel of the Armed Forces of the Philippines and the Department of National Defense. Employees of the Bureau of Jail Management and Penology under the Department of the Interior and Local Government, the Philippine Coast Guard, and the National Mapping and Resource Information Authority, will also benefit from the incentive bonus. Abad said the incentive bonus will also be given to personnel in Congress, the Judiciary, the Commission on Audit, the Commission on Elections, and the Office of the Ombudsman. Likewise, employees at the government-owned and -controlled corporations will be covered, as well as local water districts and government financial institutions. An employee will be given a bonus worth of his one-month salary if the agency he works for has fulfilled 90 percent of the targets under the performance indicators, while those who fail to reach the benchmark will get a minimum of P5,000 each. The incentive bonus will be released by June 1, 2015. Estrella Torres

Logjam

A port worker walks by stacks container vans in Manila. Report said that local cargo volume went up 4.6 percent to 211.2 million metric tons last year, from 201.9 million metric tons in 2013 despite congestion at the Manila International Container Terminal of the International Container Terminal Services Inc. and Manila South Harbor of Asian Terminals Inc. ALYSA SALEN

‘No more power shortage in Luzon until year-end’

By Jovee Marie N. dela Cruz

he chairman of the House Committee on Energy on Monday declared that there will be no more power shortage in Luzon until the end of the year. Liberal Party Rep. Reynaldo Umali of Oriental Mindoro, also co-chairman of the Joint Congressional Power Commission, said Luzon has already surpassed the expected “critical periods” for 2015.

“The most critical periods were during the Malampaya shutdown [in] March to April, and the middle of May...we surpassed the both,” Umali said in an interview after a panel hearing on the Luzon power outlook. He added that with the

cal period occurs. “We also have Interruptible Load Program [ILP] which is close to 1,000 MW,” he said. Based on established protocols, ILP is implemented during a red alert status (minimal power reserve) upon the notice of the National Grid Corp. of the Philippines (NGCP) and the power utilities informing ILP participants to deload from the grid. The ILP is a voluntary program whereby businesses such as malls and factories that have their own generators can be disconnected from the power grid in times of short supply, and can sell any excess power they generate to distributors.

briefs

Aquino declares P68.3-M assets with no liabilities

nbi launches online registration for clearance The National Bureau of Investigation (NBI) launched on Monday the full implementation of “Online Registration” for securing an NBI Clearance. According to NBI Director Virgilio Mendez, the new system was launched to expedite the processing of securing clearances and not to burden the Filipinos of queuing up in long lines in NBI offices. Under the new system, an applicant for an NBI Clearance must register on the web site clearance.nbi.gov.ph and fill out the online registration form and complete the information being sought for. An applicant must set the day and time of appointment in the nearest NBI Clearance Center found on the web site andchoose the mode of payment of the processing fee through the e-Payment system such as payment in the bank by way of online banking and over-the-counter. Payment can also be made in the Bayad Centers, or through mobile payment. It is important that an applicant must remember the reference number of his appointment to be able to make the payment on the chosen mode of payment. After the payment, the applicant must appear on the day and time of appointment as scheduled at the NBI Clearance Center for the photo capture and fingerprint biometrics. The printed copy of an individual’s NBI Clearance can already be secured on the same day. PNA

By Butch Fernandez

omplying with the law requiring all public officials to file annual Statements of Assets, Liabilities and Net worth (SALN), President Aquino declared P68.3 million in total assets, with no liabilities, in his 2014 SALN record filed before the Ombudsman last month. Copies of the President’s SALN made available at the Palace on Monday showed Mr. Aquino listing realty assets totalling P32,669,827 and assorted personal properties amounting to P35,641,817, for total assets adding up to P68.311 million, with zero liabilities. The real properties declared by President Aquino, included residential, commercial and agricultural lots in Quezon City, San Juan City, Antipolo and Tarlac. Under personal properties, Mr. Aquino declared an unspecified motor vehicle acquired for P3 million, cash on hand and in banks amounting to P30,088,968, receivables at P552,829 and “other assets” at P2-million.

approach of the rainy season, hydropower plants are expected to regain normal power generating capacity. Earlier, the panel recommended to vest President Aquino with special powers through a joint resolution to address the projected 782-megawatt (MW) power shortage in Luzon from March to July 2015. But the congressional bicameral committee remained locked in a stalemate over the joint resolution as the leadership of the lower chamber maintained its position on no-passon scheme. Moreover, Umali also said the Luzon grid has 2,000-MW power reserve to use anytime when a criti-

math, science high school in every province will enhance k to 12 program—gatchalian

Mangoes galore

Agriculture Assistant Secretary Orlan Calayag (right) holds freshly harvested Zambales mangoes grown on lahar soil during the opening of the three-day AANI Annual Mango Festival at the Quezon Memorial Circle in Quezon City on Friday. Fresh mangoes, as well as processed mango products, including jams, dried fruit, pickles, purees, salad dressing, and wine were also on sale during the event. Mangoes coming from the Guimaras Island, Zambales, and Batangas are considered the sweetest in the world. PNA

Valenzuela City Rep. Win Gatchalian on Monday has called on other members of Congress to expedite the passage of his proposed measure that seeks to establish at least one public math and science high school in every province in the country. Gatchalian said his House Bill 4801, otherwise, known as “Equitable Access to Math and Science Education Act,” would help the Philippines in its current transition to the K to 12 curriculum as it provided more high-standard classrooms and facilities for incoming high school students living in far-flung areas. In its initial deliberation in the House Committee on Basic Education and Culture, Gatchalian said his legislation could also help resolve the problem of student migration, which is one of the causes of congestion in public schools located in highly urbanized cities. “For now, there is a trend of high-school students in provinces moving to other highly urbanized regions because they do not have a public math and science high school in their locality,” said Gatchalian, a majority member of House committee on basic education and culture.

A6 Tuesday, May 19, 2015

Opinion BusinessMirror

editorial

Be careful of too much govt salt

ONTRARY to what most people think, common table salt is not a seasoning; it is an irritant. Salt “irritates” a person’s taste buds, in effect opening them up to be able to taste the flavors of food. Sprinkle a little salt on your meal and suddenly the bland-tasting food bursts with flavor. The ancient Romans understood this idea in some cooking recipes with the Latin phrase “addito salis grano” meaning “after adding a grain or pinch of salt.”

Over the millennium the phrase took on a new meaning. When told something that seemed so ridiculous or untrue, you had to take the intellectual equivalent of a pinch of salt to be able to accept what was being said as a fact. Governments have gotten to the point where they must add “salt” to almost everything. The standard technique in the 21st century is for the government to tell the people about the potentially dire and critical consequences unless the government policy is implemented. While terrorism for example is a critical issue, has it been made more critical with the addition of some government salt to justify certain policies? Over the last years, information has been revealed that the US government’s National Security Agency (NSA) is literally trying—perhaps succeeding—at recording every e-mail, phone conversation, and text message of hundreds of millions of people. Leaked information by whistle-blower Edward Snowden showed that the NSA may have, and might still be, collecting every text message sent in the Philippines. Undoubtedly there is a Filipino balikbayan or two working for the NSA to translate our unique Filipino text language. We see this happening all the time where the government tells us that we a facing some sort of potential disaster—natural, man-made, or political—and that only it has the solution. The problem of always adding salt to your food is that, eventually, your taste buds get so used to the irritant quality of the salt that they can no longer function properly without it. Without extra salt, all foods taste bland and boring. The US government assured the people and the world that the first-quarter economic numbers were going to be great because of low crude oil and gasoline prices. Americans would be rushing to the malls to buy things and that the economy would show amazingly strong growth. Instead, US economic growth would have been negative except for some creative book-keeping. Now in the middle of the second quarter, the government is saying that second-quarter growth will be fantastic because higher oil prices will suddenly make the US energy industry spend huge amounts of money hiring new employees, buying equipment and expanding their business. In the first quarter, low oil prices were supposed to be good. In the second quarter it is higher oil prices that will save the economic day. The ancient Romans also believed that salt could be an antidote to poison. Instead, government salt is the poison.

Solving the puzzle: Labor shortage amid unemployment Manny B. Villar

THE Entrepreneur Second of a series

e see the government, on the national and local level, as well as private companies and groups, conducting job fairs, usually on weekends and holidays, in places frequented by people like malls.

Tens of thousands of jobs are offered during these fairs, indicating that employment opportunities are aplenty. But let us look at the kinds of jobs that need to be filled up. Labor Secretary Rosalinda Baldoz was quoted in news reports last week as saying that most of the jobs offered during Labor Day job fairs were in the industry sector. A report from the Bureau of Local Employment identified the vacancies for local employment as production machine operators, welders, production workers in factories and sewers. Vacancies posted in Phil-Jobnet, the government’s job-search portal include accountants, engineers (civil, electrical and mechanical), electricians and factory workers. For overseas placement, most of the job offers are for construction workers, hotel and restaurant staff, welders,

laborers and health-care workers. The occupations in demand locally reflect the revitalization of the industry sector, particularly manufacturing. According to the National Economic and Development Authority (Neda), the manufacturing sector’s output recovered in March both in terms of production volume and value. The Neda said the Volume of Production Index posted a year-on-year growth of 13.6 percent in March 2015, while the Value of Production turned around from negative growth in March 2014 to a 7.4-percent increase this year. Average capacity utilization reached 83.5 percent in March 2015, an improvement from 83.1 percent a year ago. Neda Director General Arsenio M. Balisacan said domestic industries were capitalizing on the low cost of production

as a result of low inflation and business optimism. Construction activities, both public like infrastructure and private like residential, office and commercial projects, are not slowing down. The tourism boom is also fueling the robust growth of the hotel industry. Personally, I expect many construction projects will be undertaken for the next 10 years, which will require a lot of engineers, architects and construction workers. As the Philippine Chamber of Commerce and Industry said, domestic industries are already suffering an acute shortage of qualified workers. We are already short of construction workers and yet, the public-private partnership projects are not yet in full swing. When the PPPs do, demand for graduates with college degrees in science, as well as skilled workers, will increase exponentially. This month last year, Deloitte issued a press statement in New York titled “Philippines to ride global manufacturing growth wave to be one of Asia Pacific’s economic standouts.” The statement was based on the report prepared by Deloitte Touche Tohmatsu Ltd. (Deloitte Global) titled “Competitiveness: Catching the next wave: The Philippines.” The report identified the key industries that would likely drive the country’s growth over the next 20 years— manufacturing, business-process outsourcing, construction, transportation and logistics and information and communications.

The power of collective wisdom John Mangun

OUTSIDE THE BOX

AYWEATHER won the fight. End of story. No matter how much whining and complaining you do about Mayweather’s run-and-hide strategy, Pacquiao’s shoulder injury, or the way the judges arrived at their scores, it’s over. The winner has been officially declared.

And unless a miracle on the order of Jesus raising the dead happens, the decision is final. Going into the fight, it looked to be a fairly even contest. Mayweather had a reach and height advantage but Manny may have had a “heart” edge. Fan sentiment was probably evenly split, some wanting to see Mayweather keep his historic undefeated streak going. Others wanted to see Pacquiao go down as the genuine greatest “pound-forpound” champion. Each had their stable of “experts” who could rattle off a list of reasons their choice was going to be the victor. Justin Bieber stood with Mayweather and Sylvester Stallone was in Pacquiao’s camp. The experts in the boxing game were mostly divided as to what the outcome would be. Nevertheless, there was one group

that not only picked the winner but also said that the result was not going to be close. It does not matter how twisted the path might be to proclaiming the eventual winner of the fight. At the end of the day, all that matters is who won and that was Mayweather. The final betting odds, decided by hundreds of thousands of people who backed their judgment with their money, showed that Mayweather was actually an overwhelming favorite for a fight of this magnitude. Mayweather was a two-toone favorite over Pacquiao. That is not close to an even fight. The collective wisdom of the all the bettors was that Mayweather would win and win big. They were right. The concept of collective wisdom is that if you measure the opinions of enough people you will get the right answer whether we are asking about the

winner of a boxing match or the number of pieces of candy in a 50-kilo rice sack. Betting odds are determined, not by experts, but by the amount of wagers for the contestants. In this case, Mayweather had twice as much money bet in his favor. Before you go all conspiracy theory on the Las Vegas mafia controlling the odds and the outcome, remember that at least as many bets and as much money was placed by bettors in the United Kingdom where people wager on sports the same way Filipinos buy Lotto tickets. The now-closed international betting web site, Intrade, took wagers on everything, from election outcomes to when celebrities might give birth and the name of the child. Rarely was the collective wisdom wrong. Proponents of this concept say that if you have a decision to make where the best choice is not obvious, ask a lot of people what they think. Ask 100 people how many of pieces of candy are in the 50-kilo rice sack and you will almost always get very near to the exact answer. The person who says 50 pieces of candy will cancel out the answer of 10 billion. By taking an average of all the answers, you will be surprised how close that average will be to the correct number. One “expert” might say 50 pieces. Another 10 billion and yet a third might have the exact answer. But you can never know which expert is right. Look at the expert predictions for

Gary Coleman, managing director of Global Clients and Industries, Deloitte Global, said in the report: “The strong growth in global manufacturing to 2033 will drive world growth, and this presents the Philippines with great potential to integrate into the global supply chain of high-value manufacturing.” The Philippines may be the leader, but our neighboring countries are also enjoying healthy growth. Asia as a whole, according to Deloitte, is well poised for future economic success. Filipino workers are already among the most sought-after employees in other countries. It’s not only in the Middle East, where Filipino workers were first hired in large numbers, but also in Asia. Because of the boom in our neighbors, their industries are also competing for workers from the Philippines. Singapore, for instance, is hiring accountants, architects and engineers, among other professionals, from the Philippines. An acute shortage of workers may be seen by some people as a problem. This is the kind of problem that we have not seen in the past, so we need creative ideas to address it. Actually, it is a huge opportunity for our economy and for our people. We should not miss it. (To be continued) For comments, e-mail mbv.secretariat@gmail.com or visit www.mannyvillar.com.ph.

economic and financial data. Usually all the experts are almost perfect with their estimates or miss by a mile. That is because they are all calculating the same way using mostly the same data. There is little significant difference between them. The same is true for the stock market. How then do we measure the collective wisdom of the stock market when we are told that the “little guy” always loses, buying at the top and selling at the bottom? The “contrarians” also believe in collective wisdom but are sure that it is always wrong, so they go the other way. I frequently talk about stock market psychology and investor sentiment but, I must confess, that is all really just an intellectual game. What investors are thinking and feeling means nothing unless it is supported by their actions. Before the big fight, a barangay captain in a far-flung province said that everyone she knew was passionately rooting for Pacquiao and betting their money on Mayweather. Measuring the collective wisdom in the stock market is simple. Follow the money. And the money is rarely wrong. Just ask Freddie Roach. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Clean energy access, a major sustainable development goal

2015 Human Capital Index Edgardo J. Angara

By Magdy Martinez-Soliman InterPress Service

NITED NATIONS—The Sustainable Energy for All (SE4ALL) Forum will take place from May 18 to 21 in New York. Success in achieving sustainable development and tackling climate change challenges requires investment in clean energy solutions. The Millennium Development Goals were all contingent on having access to energy services. If you want to get more children into school, you need energy. To guarantee food security and manage water, you need energy. To combat HIV/AIDS and reduce maternal mortality, you need energy. The list goes on. Poverty can be lived and measured, also, as energy poverty. The poor don’t have access, or very bad supply. In fact, about 1.3 billion people globally do not have access to electricity, and nearly 3 billion use harmful, polluting and unsustainable methods, such as burning wood and charcoal at home for cooking. Not only are these methods bad for health and the environment, but they eat into time that could be spent in school or at work, limiting people’s potential—especially women’s. Expanding access to energy services, therefore, goes hand-in-hand with poverty eradication, gender equality and sustainable development. Recognizing this fact, sustainable energy is already included in the current draft of the Sustainable Development Goals (SDGs) through Goal 7: “Ensure[s] access to affordable, reliable, sustainable and modern energy for all.” Harnessing clean, renewable, and more efficient energy solutions will contribute not only to tackling a country’s or community’s energy challenges but also to the target of limiting global temperature rise to 2 degrees Celsius. As it is, a significant amount of greenhouse-gas emissions are generated from energy production, thus, tying sustainable energy directly to the climate-change negotiations. Many countries and cities are already moving toward low carbon, clean energy transformations. Germany, for instance, is undertaking the “Energiewende,” an economic watershed that aims to produce 80 percent of its electricity from renewables by 2050; and Vancouver, in Canada, recently announced that it would shift to 100-percent renewable energy. In both cases these are ambitious but forward-looking plans that weave together sustainable development, economic prosperity, and climate-change mitigation.

What this means for the developing world

ARE such transformations viable in poorer countries and cities? Energy access, efficiency and sustainability includes actions ranging from technology transfer and skills

enhancements, to legal and policy changes that remove barriers and attract investments. Over the last 20 years the UN Development Program (UNDP) has developed a portfolio of more than 120 sustainable energy projects, amounting to more than $400 million invested and almost $1 billion in cofinancing. We have learned that sustainable energy is a key component in sustainable human development. In Uruguay, the UNDP, together with the Global Environment Facility (GEF), worked with the government from 2008 to 2012 to remove regulatory, financial and technical barriers to the energy market. This addressed issues that impeded private-sector investment and set off a boom in clean energy development. Working with the National Administration of Power Plants and Energy Transmission (UTE), which manages electricity in the country, the UNDP helped to refocus development on wind and renewable energy, and helped to open up a “space” for private sector investors to get involved. This included a series of “energy auctions” that brought private-sector partners into the energy sector, as well as technology transfers, skills training and support to identify areas with high wind-generating capacity. The end result was a strong series of public-private partnerships on renewable energy, with the government and the UTE taking the lead. The economic case for such shifts is also clear: the $30 million initially invested by Uruguay and partners has since triggered over $2 billion in private-sector investment. This has resulted in the establishment of 32 wind farms, of which 17 are currently in operation, and an installed capacity of 530 megawatts (MW). Once the remaining 15 farms that are under construction become operational, capacity will reach over 1500 MW, supplying over 30 percent of the country’s total electricity demand. Beyond the green-energy shift, this has also created jobs, diversified energy sources (critical when reliant on fossil-fuel imports), and helped Uruguay mitigate its carbon emissions. Supporting innovation and derisking clean energy investments are critical to success. The SE4ALL Forum next week is a chance for the global community to not only reaffirm the need for sustainable energy (and cement its inclusion in the SDGs) but also a chance to bring together partners around the idea of “leaving no one behind” without energy.

HE Philippines scored quite a good ranking in the World Economic Forum’s 2015 Human Capital Index (HCI), which measures how well an economy develops and deploys its talent pool. At an overall 46th out of 124 economies surveyed, we are second in the Association of Southeast Asian Nations (next only to Singapore), sixth among 22 Asia-Pacific economies, and fourth among 31 lowermiddle income countries. Such ranking underscores our competitiveness

BLOOMBERG VIEW

RADERS have been panicking over the sudden rise in global bond yields triggered by the expected tapering of the Federal Reserve’s stimulus programs. But an unlikely savior may emerge to limit the damage: China. That’s the view of researchers at Oxford Economics, who think the world’s second-largest economy is starting to eclipse the US as the most influential player in setting global borrowing costs. As the world’s largest trading nation and holder of currency reserves, China has long held sway over economic activity in places ranging from Brazil to Indonesia. What’s new is that the country’s influence over global bond markets is beginning to eclipse that of the Fed.

While traders still keep a close watch on decisions made by Fed Chairman Janet Yellen in Washington, economic shifts in China are starting to matter even more for the global economy. Oxford economist Adam Slater has run the numbers on three distinct

as an investment destination and how we are better poised to capitalize on the benefits of a young labor force. In fact, the country performed best in the 15 to 24 age group (20th) as respondents in an executive opinion survey gave decent scores for the quality of our education sys-

tem. This indicates how increased educational investments in the past five years—albeit still below the international benchmark of 5 percent of gross domestic product—are already bearing fruit. Similar respectable ratings were observed in older age groups—51st for the 25-54 cohort; 40th for 55-64; and 33rd for 65 and over). However, we performed worst in the under-15 age group (73rd); our score dragged down by our poor primary enrollment rate. I n 2011 t he go ve r n me nt estimated there were more than 6 million out-of-school youth in the country and roughly 3.2 million children working in hazardous work environments, instead of getting a meaningful education. To be fair, this is not a problem solely of the Philippines, as

the United Nations Educational, Scientific and Cultural Organization recently reported that only a third of 164 governments were able to fulfill their education-related pledges, including universal primary education, under the 2000 to 2015 Education for All initiative. Recently, the International Monetary Fund said that favorable demographics will continue to be a major driver of the Philippines’s fast economic growth, which was projected to stay “exceptional” amid lackluster performance across Asia. However, the benefits of favorable demographics will be short-lived, if so many of our young children are out of school or if we choose an ineffective leader in 2016. E-mail: angara.ed@gmail.com.

Will AMLC report on VP have a chilling effect on business? Ernesto M. Hilario

ABOUT TOWN

T the latest Saturday Forum at Annabel’s that I cohosted with Party-List Rep. Jonathan de la Cruz of Abakada, we asked Rep. Toby Tiangco of Navotas, the interim president of the United Nationalist Alliance, to respond to the latest developments in the corruption allegations against Vice President Jejomar C. Binay, particularly the freeze order by the Court of Appeals on a total of 242 bank accounts of Binay, members of his family and associates based on findings of the Anti-Money Laundering Council (AMLC).

Tiangco clarified at the outset that Binay has only five bank accounts. The total amount in these accounts, he said, corresponds to the amount declared in Binay’s Statement of Assets, Liabilities and Networth (Saln). The Navotas representative pointed out that since no case has yet been filed against Binay before the Sandiganbayan, there is no basis for the AMLC to say that the money in Binay’s bank accounts is ill-gotten. Tiangco then wondered aloud why the AMLC itself, particularly its executive director, has not even bothered to appear in public and confirm their findings, considering the serious allegations against Binay. He theorized that the secrecy with which the whole issue is being handled naturally raises the suspicion that the administration party may be behind the AMLC report and the CA freeze order. In news reports, Binay maintains that the leak to a national newspaper of the AMLC report on its initial investigation into more than 200 bank accounts is a brazen violation of the law. Binay insists that the AMLC got it all wrong. One, he does not have 242 accounts. “Only five accounts included in the freeze order are under my name. And all the funds in these five accounts were acquired legally. They are not hidden wealth.” Two, his government salary is not his “only source of funds”; with this wrong premise, the AMLC

Janet Yellen takes a back seat to China William Pesek

Tuesday, May 19, 2015

growth scenarios for China: growth slowing in a controlled manner; a hard landing, in which growth drops precipitously; and a sudden return toward growth in the 8-percent range. The first is Oxford’s baseline assumption, to which Slater assigns 55 percent odds. His models see growth easing to 6.6 percent this year, and toward 5.3 percent by 2020. In this scenario, China’s aging population, its slowing urbanization and President Xi Jinping’s efforts to prioritize domestic consumption will all contribute to gradually slower growth. In that case, Slater says, China’s slowdown won’t necessarily “cause severe disruptions in global markets.” Even if the Fed begins hiking rates in September, China’s moderation will limit the fallout in bond markets. At most, Slater reckons US 10year yields would rise from 2.2 percent now, to 2.9 percent by end of 2016. Oxford estimates the second scenario —a deep downturn in China—is a 30-

concluded his salary “does not match the amounts in my bank accounts. This is not true.” Three, his accounts “include income and savings before I joined the government. We also have businesses that are already decades old. We pay taxes.” Four, even legal campaign contributions, which have been reported to the Comelec, were described as ill-gotten by the AMLC. And five, the AMLC even included bank accounts that have already been closed. Binay’s spokesman for political affairs, lawyer Rico Quicho, earlier described the media release of the CA freeze order as a “blatant attempt to engage the Vice President in trial by publicity and to deprive him of his right to due process provided by the Constitution.” For Quicho, the freeze order is another attempt “to condition the minds of the people by maligning the reputation of the Vice President, because his detractors have again failed to produce proof to back up their charges in the Senate and before the Ombudsman.” Another lawyer of Binay, Claro Certeza, claimed that the AMLC misled the CA into issuing a freeze order on the assets of Binay when it withheld crucial details about his bank accounts in its report. Certeza said the AMLC omitted the fact that Binay received campaign contributions amounting

percent proposition and could leave US 10-year rates at 1.7 percent by the end of next year. It assumes a “severe correction in the property sector combines with acute problems in parts of heavy industry leading to a serious bad loan problem in the banking sector,” Slater says. “Both the supply of and demand for credit drop back, with the high leverage of many Chinese firms contributing to the latter effect.” The after effects would be broad and powerful, with Chinese property falling at least 10 percent, and local government finances deteriorating even more dramatically. Next, foreign direct investment would plunge, the number of nonperforming loans would skyrocket and stock markets from New York to Frankfurt to Singapore would slide. In that case, global GDP might average only 2.1 percent in both 2015 and 2016 instead of the currently expected 2.7 percent and 3 percent. That, in turn,

to P231 million and incurred expenses of about P218 million through his designated bank accounts, which were duly reported in his Statement of Election Contributions and Expenses. The AMLC, he said, “deliberately concealed the fact that Vice President Binay and his wife were earning additional income from their respective businesses in addition to the Vice President’s salary.” Certeza said all these financial details were duly reported in the income tax returns of the Vice President, spanning almost three decades, which are filed with the Bureau of Internal Revenue. Amid all this, fears have been expressed that the AMLC report and the subsequent the CA order may have a chilling effect on banks and business in general. This apprehension is, of course, speculation at this point. We will have to wait and see if indeed the AMLC disclosures will lead to loss of confidence in the banking system, and whether businessmen will have second thoughts about the local banking system, especially when the political landscape is heating up as we approach the 2016 elections.

Speed up infrastructure spending

THE business community is keeping its fingers crossed and hoping that Malacañang would truly make good on this promise to finally raise infrastructure spending as poor road infrastructure—along with its resultant traffic congestion, especially in Metro Manila—and government’s propensity to change business rules midstream and breaching contracts with private partners continue to dampen investor confidence. Indeed, as Henry Schumacher, executive vice president of the European Chamber of Commerce of the Philippines, pointed out recently: “Infrastructure is badly needed if economic growth is to be maintained. The implementation of PPP projects needs to be accelerated, especially on the DOTC [Department of Transportation and Communications] side.” For John Forbes, senior adviser

would affect the calculations of central banks: the Fed would be less inclined to raise rates, the European Central Bank might keep rates at zero until perhaps, 2020, and Japanese bond yields could remain at zero into 2017. Surprisingly strong growth in China is scenario three. In that instance, China would fix its structural problems quickly and painlessly. “A stronger China,” he says, “means strong world trade and GDP [gross domestic product] growth and faster rise in global bond yields.” In the US 10-year rates could rise toward 4.8 percent by 2020, while German bund rates might climb from their current 0.6 percent to 2.3 percent. But there’s a reason Oxford considers this the least likely scenario (Slater puts the odds at 15 percent). China’s economy showed no signs of acceleration at the start of the second quarter: the most recent lending and investment data signaled the opposite. Fixed-asset

to the American Chamber of Commerce of the Philippines, “the government can’t spend enough on infrastructure fast enough. Poor infrastructure combined with fast growth will lower growth if it creates too much congestion.” The unabated congestion at the Port of Manila resulting in large part from the failure of cargo forwarders and truck haulers to move their goods fast enough in and out of the metropolis or do business more efficiently in alternate ports north and south of the capital, reinforces the belief by business leaders that poor infrastructure and the ensuing monster traffic are worrisome for prospective investors. The Port of Manila’s worsening congestion since last year was estimated earlier to have cost foreign and local businesses over $500 million in combined losses. Port congestion reflects the larger problem of Metro Manila’s road infrastructure woes and monster traffic, underscoring the urgency for Malacañang to speed up completion of the parallel expressways being built separately by San Miguel Corp. (SMC) and the Metro Pacific Tollways Corp. (MPTC) to connect the North Luzon Expressway (Nlex) and South Luzon Expressway (Slex). MPTC’s unsolicited proposal is to build a 13.4-kilometer expressway linking Nlex and Slex next to the parallel skyway now being built by SMC through its consortium with the Citra Metro Manila Tollways Corp. MPTC’s portion involves the construction of the four-lane elevated expressway, originally via the Philippine National Railway (PNR) tracks, with three exits to connect Nlex with Slex. Both mega-expressways are now facing delays after the National Economic and Development Authority Board, chaired by President Aquino, recently greenlighted the North to South Railway Project, which has two railroad components from Manila to Bulacan in Central Luzon and from Manila to Legazpi City in Bicol. E-mail: ernhil@yahoo.com.

investment, meanwhile, is the lowest in almost 15 years. Worse, China’s default risks are soaring—a side effect of a $20trillion surge in credit since 2009 that’s left many borrowers overextended. Bond traders aren’t the only ones keeping a closer eye on China’s $9.2trillion economy—Yellen is, too. In February she told Congress that for all the obsessing about Fed rates, foreign events “can pose risk to the US economic outlook.” In China, she said, “economic growth could slow more than anticipated, as policy-makers address financial vulnerabilities and manage the desired transition to less reliant on exports and investment as sources of growth.” If you sense a hint of anxiety in that quote, that’s not an accident. Yellen is aware that she doesn’t have nearly as much control over the fate of the US economy—and the fate of global bond markets—as her reputation might suggest.

2nd Front Page BusinessMirror

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Nobu Hospitality considers resort in PHL Private sector commits Continued from A1

of Dreams Manila—casino resort complex—has been targetting as they are big gamers. “I understand there’s a compression of the gaming market, which has affected Macau and the other gaming destinations in Asia, but, I think, this is cyclical.” He stressed that Nobu Hotel continues to market itself to the mainland Chinese. “I think it’s a good development for the Philippines that the Macau gaming market has dropped because it means there’s another gaming destination that the Chinese can go to.” Due to the crackdown on corruption by the Beijing government, as well as its current political and territorial differences with the Aquino administration, Chinese visitor arrivals in the Philippines have been dipping since late last year. In the first quarter of 2015,

Exporters. . .

Chinese arrivals in the Philippines plunged by 32 percent. Horwell said the decision to open a Nobu Hotel in the Philippines was “more relationship-driven,” as the company has previously worked with Melco Crown Entertainment Ltd. cochaired by Macau and Australia casino moguls Larence Ho and James Packer. “When we found out they were putting up a City of Dreams in Manila, we were excited. We want to work with pioneers, and James and Lawrence certainly are visionaries and pioneers in their field,” the Nobu Hospitality chief executive disclosed. Asked what kind of entertainment would Nobu offer its guests, Horwell told in a media briefing earlier that, “One of the reasons we created Nobu Hotel is that we wanted a seamless experience. So we looked at the market here...it’s part of a fully integrated resort. We wanted to be part of a world-

class destination. We become part of a great destination, we offer great rooms and our success is because of our service. With Filipinos working for us, we can ensure the same level of service that has been delivered worldwide.” He said that about 11 more hotels will be opened by Nobu Hospitality in the next two years with locations in Miami Beach, Malibu, Riyadh, London, Chicago, Cabo San Lucas, among others. In an interview in 2014, de Niro also cited Singapore and Macau as possible locations of Nobu hotels. For his part, Clarence Chung, chairman of Melco Crown Philippines Resorts Corp., a unit of Melco Crown Entertainment, said, “Internationally acclaimed, innovative world-class hospitality is a core component of City of Dreams. I am thrilled that our collaboration with Chef Nobu Matsuhisa and Nobu Hospitality partners Robert de Niro

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The peso gradually strengthened against the greenback in recent months, a development that the export sector, which is still reeling from the port congestion, feared would further drive down their competitiveness. A stronger peso is a bane for dollar-earning groups such as exporters and OFWs, as their dollars are only able to buy less in peso value. For exporters, a stronger peso will make their products more expensive in foreign markets. “We welcome this change in outlook. We have to be

realistic, as other currencies, even the Chinese [yuan], have been weakening. Our peso should at least be at the level where it can compete with the others,” Ortiz-Luis added, hinting that the peso, even with the recent depreciation, is still overvalued. The peso has diminished in value in the first two weeks of May, compared to the last two weeks of April. Exports suffered a contraction of 0.2 percent in the first three months of the year to $14.24 billion, from $14.27

and Meir Teper, together with the entire Nobu Hospitality executive team, has resulted in the creation of this inspiring and stunning destination hotel. “We are convinced that the development of highly exclusive, luxury lifestyle offerings is a key driver in inspiring growing numbers of the region’s luxury-leisure destination seekers to visit Manila and the Philippines. They rightly demand the very best in lifestyle offerings and Nobu Hotel Manila certainly ranks among the very best of the best.” Nobu Hotel in Manila is a 321room property designed with a modern Japanese aesthetic, which, its owners say, will deliver a “thrilling, celebrity-inspired and fun luxury experience.” Its main dining outlet, Nobu Restaurant, serves Japaneseinspired cuisine with a modern take created by acclaimed Japanese Chef Nobu Matsuhisa.

billion in the same period last year. OFW remittances, on the other had, experienced muted growth in the first two months of the year, growing by only 0.5 percent in January and 2.4 percent in February. The first-quarter remittance growth was at 5.1 percent, saved by the 11-percent hike in March, according to a recent release of the BSP. Meanwhile, the Philexport is embarking on a nationwide information campaign for the Philippine Export Development Plan (PEDP) 2014-2016. The PEDP, the export component of the Philippine Development Plan, has been awaiting President Aquino’s

$340M for Bangsamoro By Lorenz S. Marasigan

he war-torn region in Mindanao needs billions of dollars in investments before it can rise from the ashes of its religious and political struggle. But relief is on its way, as businesses here and abroad have committed to pour in as much as $340 million to help develop and improve the living and economic condition in the country’s southern tip. World Bank Country Director for the Philippines Motoo Konishi, however, did not provide an exact figure as to how much the needed investments are. But, he said, the billions of dollars required by the Autonomous Region in Muslim Mindanao (ARMM) is spread over a period of a decade and a half. But, as early as now, the private

signature since late 2014. In the meantime, Ortiz-Luis said the industry is informing stakeholders in the provinces of the strategies and targets in the PEDP. “We’re going through the provinces and the different regions just to inform them of our thrust and our targets,” Ortiz-Luis said. The PEDP 2014-2016 sets a $100-billion export revenue target by 2016, lower than the initial $120-billion target set by the Cabinet economic cluster at the start of the Aquino administration. Meanwhile, in a text message to reporters, BSP Governor Amando M. Tetangco Jr. said the first-

sector has committed about $340 million in agriculture investments alone, translating to over 22,000 direct employment in the sectors of banana, pineapple, coffee and cacao. He noted that companies that are willing to invest in the region may tap a $250-million fund from the government to finance their business initiatives. “It is a 20- to 25-year money with low interest rate. We are discussing with the Department of Finance and Land Bank [of the Philippines] in putting this project together,” he said. “This would entice businesses to come and invest in Bangsamoro.” Unifrutti Group Philippines Chairman John P. Perrine added that there are other investment opportunities in Mindanao. “World Bank has a team working See “Bangsamoro,” A2

quarter local output, measured as the gross domestic product, remains strong due to a number of factors, making possible sustained economic expansion in the Philippines. “The BSP is of the view that prospects for the domestic economy remain favorable. Private demand will continue to be strong, aided mainly by sustained remittance inflows and low inflation,” Tetangco said. “Planned infrastructure spending and additional government expenses for the upcoming 2016 election should also provide an additional boost to the local economy.” With Bianca Cuaresma

N.E.U. to hold ‘Grand Graduation’ and Grand Alumni Homecoming at the Philippine Arena

ore than 4,300 graduates will march at the Philippine Arena today, May 19, as New Era University (NEU) main campus holds its 40th Commencement Exercises with its three other branches—the NEU San Fernando City Campus, NEU Lipa City Campus and NEU General Santos City Campus. This year’s graduation rites, with the theme “NEU Graduates: Facing Global Challenges with Faith, Hope and Love,” will coincide with NEU’s 40th anniversary, making the event all the more important and historic. A special thanksgiving worship service for NEU graduates, including their families and friends, will highlight this momentous occasion. The worship service, which will start at 6 a.m., will also be held at the 55,000-seater Philippine Arena in Ciudad de Victoria, Bocaue, Bulacan. NEU graduates from 1975 to 2015 will also attend the grand alumni homecoming to be held after the special worship service. The graduation ceremonies at the Philippine Arena, dubbed as the “grand graduation,” and the grand alumni homecoming, will be another milestone in the parade of victories of one of the fastest-growing universities in the Philippines. This will also be the first time that a graduation ceremony and a grand alumni homecoming will be held at the world-renowned Philippine Arena, which currently holds the Guinness record for being the world’s largest mixed-use indoor theater. NEU is currently home to more than 22,000 students of all ages, from the university’s main campus in Quezon City and its three branches in San Fernando, Pampanga; General Santos City, South Cotabato; and Lipa City, Batangas. Other activities include the oath-taking ceremonies of NEU alumni officers and board of directors, and the awarding of the NEU Distinguished Alumni. Other planned activities include the conferment of

the Honoris Causa Doctor of Music to the founder of the UP Singing Ambassadors, Edgardo L. Manguiat. NEU is a private, nonsectarian institution established by the Iglesia Ni Cristo on June 17, 1975. It aims to develop among its students academic excellence, professional responsibility and social awareness founded on genuine Christian principles. Its prime purpose, as stated by the late Executive Minister of the Iglesia Ni Cristo Bro. Eraño G. Manalo “is for the glory of God.” NEU started as the New Era Educational Institute (NEEI) in 1975. It was formally established on June 17 that year and initially offered secondary education. It was formerly situated on Carlos Palanca Street, in Echague, Manila. In 1978 NEEI began offering tertiary-level, with Mass Communication and Civil Engineering as among the first 12 courses. It became known as New Era College in 1981. In 1984 New Era College opened its doors to preschoolers and elementary pupils. Just 20 years after the establishment of this institution, New Era was granted university status by the Commission on Higher Education in 1995. And from 12 courses, the NEU now offers more educational programs, including several graduate degrees, such as Doctor in Philosophy, Doctor of Education, Master of Arts in Education, Master in Business Education and Certificate for Professional Teaching. It has also recently opened the College of Music, the College of Medicine and the College of Criminology. NEU takes pride in the fact that it is an alcoholfree and fraternity-free campus, in adherence to its benchmark of discipline. It is also becoming recognized as one of the premier universities in the Metro, having developed topnotchers in the various national examinations in the fields of nursing, engineering, accountancy and education. As a nonprofit, nonsectarian school, NEU is also a manifestation of the Church of Christ’s selfless service to humanity.