BusinessMirror May 9, 2015

‘NEXT BORACAY’ Local tourists enjoy the

pristine waters and white-sand beach of Talicud Island in Barangay Santa Cruz, Samal, Davao del Norte. Promoted by the local government as “the next Boracay,” Talicud lies next to the Island Garden City Resort on Samal Island, featuring diving, snorkeling and other aquasports activities. NONIE REYES

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

U.N. Media Award 2008

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A broader look at today’s business

Tuesday, November 2014 Vol.No.10212 No. 40 Saturday, May 9, 18, 2015 Vol. 10

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Lower generation charge in April, less outages result in cheaper electricity

Meralco’s May billing down ₧0.70/kwh

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By Lenie Lectura

ower bills this month went down by 70 centavos per kilowatt-hour (kWh) due mainly to lower generation charge, which represents the bulk of a Manila Electric Co. (Meralco) bill.

For a typical household consuming 200 kWh, the overall electricity bill should prove cheaper by P140.

At P9.98 per kWh, this month’s rate is lower by P1.46 compared to May 2014’s P11.44 per kWh. The generation charge improved by 60 centavos per kWh, from P5.41 per kWh in April to P4.81 per kWh this month. The reduction was driven mainly by lower charges from the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs), as well as a reduction in the National Power Corp.’s (Napocor) Generation Rate Adjustment Mechanism (GRAM) collections.

The cost of power from the WESM also decreased by P4.19 per kWh due to less occurrences and shorter duration of power-plant outages. The Luzon grid remained on “normal” state throughout the period of the

Malampaya shutdown.

Meanwhile, average cost of the IPPs was lower by 75 centavos per kWh due to the improved utilization level of the Quezon power plant and cheaper fuel prices obtained by the First Gas plants. The effect of the Malampaya shutdown was moderated by lower prices of condensate and natural gas in the April supply month versus March. Malampaya natural gas underwent its quarterly repricing to reflect the lower cost of fuel. Compared to the previous period, price of natural gas has been reduced by 19 percent.

Average rates of plants under the power-supply agreements (PSAs) also decreased this month by 6 centavos per kWh. Finally, Napocor’s collection from GRAM similarly went down by 6 centavos per kWh. The share of IPPs, PSAs and Continued on A2

the color of laughter Iconic Disney characters Mickey Mouse and Minnie Mouse recently paid the corporate headquarters of Globe Telecom a visit to meet and greet Globe employees and their kids. The visit—which is a rare opportunity for two of the world’s most popular characters, who seldom visit corporate offices outside the Disney headquarters—is part of the telco’s multiyear collaboration with The Walt Disney Co. Southeast Asia to provide Filipino customers access to video-on-demand, interactive content, promotions and other related services across multiple devices and to affirm the relationship of Globe with Disney—whose brands include Disney, Pixar, Marvel, Star Wars—and global leader in short-form video Maker Studios. With the collaboration, Globe customers will soon have access to an array of Disney content offerings, including long- and short-form programming, interactive content and games, theatrical releases and retail promotions. Joining Mickey Mouse and Minnie Mouse are (from left) Globe President and CEO Ernest Cu, The Walt Disney Co. Southeast Asia Managing Diretor Rob Gilby and Globe Senior Advisor for Consumer Business Daniel Horan.

China’s imports plunge in new sign of economic weakness C

hina’s exports unexpectedly declined in April and imports slumped, adding downward pressure on an economy grappling with overcapacity and waning competitiveness.

Overseas shipments fell 6.2 percent from a year earlier in yuan value, the customs administration said in Beijing on Friday. That, compared with the median estimate for a 0.9-percent rise in a Bloomberg survey of analysts. Imports slid 16.1 percent—the fourth straight double-digit decline—leaving a trade surplus of 210.21 billion yuan ($33.9 billion).

Stronger demand from a recovering US economy is being offset by sluggishness in Europe and a slide in shipments to Japan, compounding challenges for a nation facing rising labor costs and a strong currency.

The central bank has cut benchmark

interest rates and banks’ reserve ratios twice in the last six months to cushion an economic slowdown.

“Exports, once regarded as a stabilizer for growth this year, are now becoming a downside risk,” said Li Wei, the China and Asia economist for Commonwealth Bank of Australia in Sydney. “The government has to do more to help growth.”

Chinese shares advanced on speculation the weaker-than-expected trade performance will prompt additional stimulus. The Australian dollar, seen as a proxy for China’s economy due to its shipments of raw materials, weakened.

While Chinese exports to the US rose 9.2 percent in the January-toApril period in yuan terms, exports to the European Union dropped 0.7 percent, and shipments to Japan tumbled 12 percent, according to China’s customs administration.

PESO exchange rates n US 44.6500

Global weakness

“The weakness globally in the first quarter wasn’t transitory, and it’s going to persist,” said Tim Condon, head of Asia research in Singapore at ING Groep NV. “It’s time for another rate cut. We could see something almost immediately based on these numbers.”

Exporters in the Pearl River Delta manufacturing hub are facing persistent labor shortages and rising wages, according to a survey of manufacturing clients by Standard Chartered Plc. The nation’s 274 million migrant workers, the backbone of China’s labor-intensive manufacturing industry, are getting older and more expensive, with their average age increasing to 38.3 years in 2014, from 35.5 five years earlier, according to a quarterly survey from the National Bureau of Statistics.

See “China,” A2

Envoys killed in Pakistan chopper crash

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he Norwegian and Philippine ambassadors and the wives of the Malaysian and Indonesian envoys were among seven people killed in a helicopter crash in northeastern Pakistan.

Both pilots of the MI-17 helicopter and a crew member also died, and the Polish and Dutch ambassadors were injured, Army Spokesman Asim Bajwa said on Twitter. While the Pakistani Taliban claimed they shot down the chopper, an assistant to Prime Minister Nawaz Sharif said there’s no such evidence.

“So far, there’s no evidence of terrorism,” Shujaat Azeem, a special assistant for aviation to Sharif, said in an interview.

The crash occurred in the Continued on A2

Factory output up 5.2% in March–Moody’s

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he country’s industrial sector likely accelerated in March, as the country’s manufacturing sector contributed more to the growth of the Philippine economy in the first quarter of the year.

In its latest Asia Pacific Economic Data Preview, Moody’s Analytics, the research arm of the international credit watcher Moody’s Investors Service, said Philippine industrial production likely ticked up a notch in March to 5.2 percent.

This represented an acceleration from industrial production, having grown by only 4.4 percent in February. “Domestic demand is going strong and should lift food manufacturing, the largest component of the industrial-production survey,” Moody’s analysts said.

Its researchers also said that, while chemical and petroleum production fell during the period due to the steep

decline in international oil prices, this was seen to rebound in March, as oil rates begin to creep back up.

“Chemical and petroleum production is struggling in year-on-year terms with the slump in oil prices, but has probably reached a trough with global prices finding a floor,” the analysts at Moody’s said.

Only last month, the Philippine Statistics Authority (PSA) reported that the Volume of Production Index (VoPI) slowed in February this year.

While slower, the PSA said the deceleration of the VoPI in February was likely due to the improved performance in leather products, tobacco products, printing, basic metals, beverages, textiles, nonmetallic mineral products, wood and wood products, as well as paper and paper products. The PSA is scheduled to release the March production index data on May 12.

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

A2

News

BusinessMirror

Saturday, May 9, 2015

China. . .

Continued from A1

China’s currency has climbed more than 10 percent in the past year in trade-weighted terms, eroding competitiveness.

Peacekeeper role

“With China’s peacekeeper role in the currency wars hurting exports, the obvious solution is yuan depreciation,” Bloomberg economists Tom Orlik and Fielding Chen wrote in a note. “The trouble for China’s leaders is that support for exporters in the form of a weaker currency could come at the risk of capital flight. As recent comments from Premier Li Keqiang suggest, China’s leaders are likely to hold the line with a stable currency.”

China’s economy expanded at the weakest pace since 2009 last quarter, with industrial output, fixed-asset investment and retail data pointing to a deepening slowdown.

In US dollar terms, exports fell 6.4 percent from a year earlier, while imports slipped 16.2 percent, leaving a trade surplus of $34.1 billion in April.

Exports in previous months were volatile due to distortions from the Lunar New Year holidays, which falls in different weeks early in the year and leads to widespread factory shutdowns. That may still be playing a role, according to Julian Evans-Pritchard, Singapore-based China economist with Capital Economics Ltd. “Looking ahead, we are still relatively sanguine over the outlook for Chinese trade, despite today’s disappointing data,” he wrote in a note. “We expect negative export growth to prove short-lived.”

AP, Bloomberg News

Meralco’s May billing down ₧0.70/kwh Continued from A1

WESM to Meralco’s total power requirements stood at 47 percent, 43 percent and 10 percent, respectively.

In addition to the generation charge, taxes and other charges registered reductions of 7 centavos and 8 centavos

per kW h, respectively. These offset a 5 - cent avos - per -kW h i nc rea se i n t he transmission charge.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges.

Payment for the generation charge goes to the power suppliers, while payment for the

Envoys killed in Pakistan chopper crash . . .

Continued from A1

northern Gilgit-Baltistan region where gunmen shot and killed at least nine mountaineers in 2013, including Chinese and Ukrainian nationals. Sharif was heading to the vicinity of the crash in the mountainous Naltar Valley near the Chinese border, but turned back on news of the incident, the GEO news channel reported.

Muhammad Khurasani, a Pakistani Taliban spokesman, said in an e-mailed statement that they downed the helicopter while trying to attack Sharif’s aircraft, without saying how.

Sajjad-ul-Haq, a spokesman for the Gilgit-Baltistan chief minister, refuted the claim, saying the helicopter crashed in an accident as it was about to land.

Norway’s Foreign Ministry said it was looking into the reports of the incident. An official, who answered the phone at the Philippine embassy in Islamabad, declined to comment.

The Department of Foreign Affairs said it is verifying reports that the Philippine Ambassador to Pakistan Domingo Lucenario Jr. was killed in the crash of a military helicopter in Northern Pakistan. “We’ll issue a statement at the appropriate time,” DFA Spokesman Charles Jose said.

Before his foreign posting, Lucenario, 54, headed the DFA’s Office of Consular Affairs.

It was during Lucenario’s watch that the Philippines started issuing the new maroon passport starting September 2007, and then the more secure electronic passport (e-passport) a few years later.

Lucenario was ambassador to Kenya and concurrent Philippine representative to the UN Habitat there.

He had also been posted either as consul or vice consul to Germany, Australia and Hong Kong. Bloomberg News

transmission charge goes to the National Grid Corp. of the Philippines (NGCP).

Of the total bill, only the distribution, supply a nd meter ing c ha rges accr ue to Meralco.

Meralco’s distribution charge has not had any adjustment and remained the same for 10 months in a series or since July 2014.

Ayala-led I.M.I.’s profit up 36 percent in Q1

A

yala-led Integrated Micro-Electronics Inc. (IMI) said on Friday that its profit rose by 36 percent to $6.8 million in the first quarter of the year, despite foreign-exchange headwinds.

In a disclosure to the Philippine Stock Exchange, IMI attributed the improvement in net income to its focus on higher margin segments, productivity and cost-saving efforts. The company’s revenues reached $201.2 million in January to March, down by 2 percent year-on-year.

“As we press on, we look forward to line expansions in Bulgaria, Jiaxing and Mexico to cater to increased demand in our target market of automotive electronics,” said Arthur Tan, IMI president and CEO. The electronics manufacturing services operations in the Philippines slightly declined by 3.7 percent to $52.7 million in revenues, due to softer demand from the computing sector.

Revenues from the company’s Europe and Mexico operations increased 3 percent to $68.9 million, even as a weaker euro tempered gains from the company’s growing automotive business in Bulgaria.

Excluding the impact of year-over-year changes in foreign-exchange rates, total revenue in the region would have increased by 19 percent. Jerome Tan, IMI CEO, said the weakness in euro affects the company’s revenues.

“But, due to our strategy to match our costs with the same currency and our global diversification, its impact on our profit is lessened. Our new business pipeline remains healthy, and we expect to be on track for the medium term growth with significant multisite new businesses awarded recently,” he said.

IMI China’s revenues of $68.8 million reflects a 5.9-percent reduction due to slower growth of the country’s 4G telecommunications sector after the strong ramp up of the 4G rollout to major cities in 2014. PNA

news@businessmirror.com.ph

Toyota. . .

Continued from A8

of buyers. The first products under the architecture will roll out later this year, theoretically boosting profitability.

Over the years, Toyota models have been seen as reliable and delivering good mileage, but they have also been seen as bland and unfashionable.

Toyota is trying to change that, emphasizing the need to chisel out a reputation for glamor and luxury that some European and American rivals already have, but has remained elusive for Toyota.

For the January-March quarter, Toyota reported a ¥446.4-billion ($3.7-billion) profit, up 50 percent from a year earlier.

Last year, Toyota claimed an auto-industry milestone by selling more than 10 million vehicles in a year, at 10.23 million vehicles. AP

Jobs. . .

Continued from A8

March, according to a survey by the Institute for Supply Management, a trade group of purchasing managers. That suggests that Americans stepped up their spending as the weather improved.

In addition, the average number of people seeking unemployment benefits each week over the past month fell to its lowest level in 15 years, the Labor Department said on Thursday. Applications are a proxy for layoffs.

So the very low level suggests that companies haven’t been spooked by slower growth and are retaining their staffs. That typically suggests that hiring is healthy.

Yet, a survey of manufacturing companies, also by the ISM, saw little improvement in April.

That is evidence that the strong dollar is still weighing on US exports. And the trade deficit widened in March, creating a drag on the nation’s gross domestic product. Imports climbed after the West Coast ports dispute was settled. US exports barely nudged up. The trade gap shot up 43 percent from February, the government said. AP

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NDRRMC warns provinces on Typhoon Dodong’s path

By Rene Acosta

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ROVINCES in Northern Luzon that are on the path of Typhoon Dodong (international code name Noul) have been warned to activate their disaster-response plans, including preemptive evacuation of residents living in low-lying areas.

During a briefing at the National Disaster Risk Reduction and Management Council (NDRRMC) office, Edgar Allan Table, chief of the telecommunications division of the Department of the Interior and Local Government, said the preemptive evacuation and

other typhoon-mitigating measures should be implemented at the earliest on Friday night, or early Saturday.

Table said the rains should be a welcome respite for provinces in the North, which are currently hit by the severe drought, but not the

wind accompanying the typhoon because it was strong.

“Actually, heavy rainfall is welcomed over Northern Luzon because we have a dry spell, so this is expected to fill up the dams. The only problem is the wind: It’s 150 to 185 [kilometers per hour]. It is a strong typhoon,” he said.

“We are wary of the wind, but the rain is welcome. But, of course, over the mountainous area, landslides are possible and that’s what we should be ready for,” he added.

Table said the provinces that should expect heavy rains are Abra, Apayao, Aurora, Batanes, Cagayan, Ifugao, Ilocos Norte, Isabela, Kalinga, Mountain Province and Quirino.

“These are the provinces that will be directly affected by the typhoon and, beginning yesterday [Thursday], the DILG has

already alerted them and asked them to implement their disasterpreparedness plans,” Table said.

Weather forecasters said the provinces in the North should experience heavy rains by Sunday, although several provinces, including Catanduanes, Camarines Norte, Camarines Sur, Albay, Sorsogon and Polillo Island, are already under Storm Signal 1 on Friday.

Dodong was expected to be 250 kilometers east of Virac, Catanduanes, on Saturday morning and should be at the vicinity of Isabela and Cagayan on Sunday.

Defense Secretary Voltaire T. Gazmin, NDRR MC chairman, said residents in provinces that are threatened by the typhoon should continue monitoring the weather so that they could adjust in their activities and even their actions.

Fil-Am activists in Chicago urge Aquino to quit

By Marvyn N. Benaning Correspondent

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HE National Alliance for Filipino Concerns (NAFC)Midwest and Anakbayan in Chicago demanded the resignation of President Aquino when he visited the city on May 6 and bragged about the accomplishments of his administration.

Aquino met with Mayor Rahm Emanuel and several investors in Chicago before moving to Canada on May 7. “The world is watching President Aquino’s visit in Chicago. Filipinos around the world will be watching this visit. We want the world to know that we are tired of his presidency.

We have had enough of his atrocious human-rights record, dismally inept leadership and the unbridled corruption of his administration,” the two groups said in a statement.

“The Aquino administration’s incompetence and neglect were seen in the wake of the devastating wrought

by Typhoon Haiyan [local name Yolanda], which hit the Philippines in November of 2013, as $48 million of disaster-relief money was found sitting in the banks, while victims were crying for help. It is enmeshed in a serious corruption scandal that led to the Supreme Court questioning the constitutionality of Aquino’s Priority Development Assistance Fund (Pdaf), more commonly known as the biggest pork barrel in the country,” they added.

“Displaying the same lack of compassion and leadership expected of a president, Aquino told the mother of

Editor: Dionisio L. Pelayo • Saturday, May 9, 2015 A3

Senate leadership admits BBL cannot be passed ‘as is’

By Jelly F. Musico

Philippines News Agency

E

V EN the Senate leadership has admitted that the proposed Bangsamoro Basic Law (BBL) cannot be passed without any change.

Senate President Franklin Drilon said on Friday that the Senate has to scrutinize and study carefully all the provisions based on the Constitution to avoid any problem in the future.

“Yes, we cannot pass it as is. Even before, we have emphasized that this BBL should be in accordance with the Constitution. We will examine it thoroughly,” Drilon said.

The Citizen’s Peace Council that Malacañang has formed to help the government in explaining the BBL to the people has also recommended minor refinements to make it a better law that would finally end decades of conflict in Mindanao.

“I agree with the peace council when it said there are some provisions that should be refined. The BBL should not violate the Constitution because all our efforts will be wasted if this will happen,” Drilon added.

He, however, assured that the BBL will be the Senate’s priority, hoping to pass it before the sine die adjournment of the second regular session of the 16th Congress.

“This is an important legislation

for the peace and order in Mindanao.

They need peace to achieve longoverdue development that would give jobs for our countrymen there,” Drilon said.

The Senate Committee on Local Government chaired by Sen. Ferdinand Marcos Jr. is scheduled to hold two BBL hearings and consultations in Zamboanga City and Jolo, Sulu, next week.

After the hearings in Mindanao, Marcos said he will conduct one or two more hearings in Manila and then prepare a committee report and submit it to the Senate hopefully before May 25.

Marcos has also admitted that it would be impossible to pass the BBL “untouched.”

The BBL hearings suffered delay, owing to the Mamasapano bloodbath where 44 elite policemen have been killed by a combined forces of Moro Islamic Liberation Front (MILF) and Bangsamoro Islamic Freedom Fighters (BIFF) last January 25.

The encounter occurred, while the Special Action Force (SAF) of the National Police was carrying out an operation to neutralize notorious bomb expert Zulkifli bin Hir, alias Marwan, and Basit Usman.

The SAF killed Marwan and injured Usman but it lost 44 troopers in an almost 11-hour encounter with the MILF and BIFF.

Review of anti-trafficking campaign sought

S Mary Jane Veloso, who was saved at the last minute from execution by firing squad on April 28 in Indonesia, that her problem was not the making of his government. Mary Jane Veloso was a victim of human traffickers, but, more tragically, she is a victim of the Aquino aministration’s neglect. According to Migrante International, the Aquino administration failed for five years to provide her with proper and sufficient legal assistance, but the government is now shamelessly claiming credits for the suspension of her execution. The role of the collective people’s action in the Philippines and around the world in saving Mary Jane was affirmed by her family,” NAFC and Anakbayan said.

“Behind the Mary Jane crisis lies a labor-export policy that leads to the exodus of millions of desperate Filipinos, with over 5,000 leaving the Philippines to work overseas

every day. It appears that neither Mary Jane’s death sentence, nor the large numbers of Filipino temporary workers will stop President Aquino from promoting further the export of Filipino workers during his visit,” they noted.

“Here in the US, around 300 Filipino teachers were trafficked in Baton Rouge, Louisiana by fraudulent labor recruitment agency. These teachers were all the time thinking that, aside from seeking greener pastures in the US, they were, at the same time, helping rebuild the economy of Louisiana after it was hit by hurricane Katrina. In November 2012, an oil-rig explosion off the Gulf of Mexico made the US government investigate on the unsafe conditions suffered by oil-rig workers. In that explosion, three Filipinos were killed, three Filipinos were badly injured and several Filipinos and Americans were also

injured. The Grand Isle Shipyard in Louisiana, which was the employer of these Filipino oil rig workers, was later on found to be involved in trafficking these Filipinos. Nurses were also trafficked in New York and New Jersey as in the case of Sentosa, 27. In Florida hundreds of hotel and restaurant workers were also trafficked as in the case of the Florida 15. Lately, hundreds of teachers were found out to be human-trafficking victims in Washington DC,” NAFC and Anakbayan added.

“We want a president who leads decisively and who will protect the interest of the Filipino people, and not a president that export and market Filipino labor abroad, while welcoming the US troops to move around the Philippines and commit crimes.

We are tired of his presidency. In the Philippines millions are calling for the President to resign,” NAFC and Anakbayan also said in the statement.

EN. Ferdinand R. Marcos Jr. has filed a resolution directing the Senate to conduct a full review of the country’s efforts against human trafficking to prevent another case similar to that of Mary Janes Veloso.

In Senate Resolution 1325, Marcos asked the appropriate committee to conduct a review of Republic Act 10364 or the Expanded Anti-Trafficking Act of 2012 and the performance of the Inter-Agency Council Against Trafficking (Iacat).

“Review is not only timely but also critically important to ensure that Mary Jane Veloso’s case would be an isolated one and the last of its kind,” Marcos said. He noted that most convictions involving human trafficking involved domestic cases, hence the need to up the ante on cases involving cross-border trafficking as exemplified by the Veloso case.

“There is an urgency to this proposal for a thorough review of the expanded anti-trafficking law considering that there are 92 other Filipinos on death row in other parts of the world for various crimes, and we need to determine whether some of them may also have been victims of trafficking in persons” Marcos said.

The resolution formalizes the senator’s earlier call for such a review after the last minute-reprieve granted to Veloso by the Indonesian government

to enable her to testify against her alleged illegal recruiter.

Veloso was sentenced to death by the Indonesian government for bringing in over two kilos of heroin to that country in 2010. She claimed, however, that Maria Kristina Sergio, who recruited her to work as domestic helper, tricked her into carrying the suitcase packed with illegal drugs.

Following the filing of criminal charges against Sergio and her partner Julius Lacanilao in connection with Veloso’s case, several other complainants against them have surfaced.

Marcos cited the need to review Icat’s performance to enhance its capability to provide assistance and protection to victims of trafficking.

The senator noted that since 2011, the United States government has classified the Philippines in the Tier 2 category, referring to countries that have shown significant but not overwhelming progress in the fight against human trafficking.

“It is important that the Philippines show firm, consistent and unquestionable resolve in protecting the welfare of migrant Filipino workers and ensuring their safety when seeking jobs abroad, from time of recruitment to onsite services, as well as towards future reintegration and reunification with their families back home,” Marcos said. PNA

Katoh replaces Bello as Akbayan nominee in House of Representatives

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HE Commisssion on Elections (Comelec) on Thursday named Akbayan party-list group’s third nominee, Angelina Ludovice Katoh, as the replacement of Walden Bello in the House of Representatives.

Bello resigned from his post after

withdrawing his support to the Aquino administration for its failure to take full responsibility for the Mamasapano, Maguindanao, bloodbath that led to the death of 44 National Police Special Action Force commandos.

In a minute resolution, the Com-

elec en banc approved the succession of Katoh as the second representative of Akbayan in the Lower House.

“The commission resolves to certify that the succeeding nominee to take the place of Hon. Walden Bello as Akbayan representative is nominee

No. 3, Angelina Ludovice Katoh. This certification may be treated as equivalent to a Certificate of Proclamation for purposes of assumption of office of Katoh,” the resolution stated.

In the May 2013 polls, Akbayan earned two seats in the House of Rep-

resentatives. Its first seat was given to Bello, while the other seat was assumed by the group’s second nominee, Ibarra Gutierrez.

Katoh was the third nominee of the administration-allied party-list group, based on the Certificate of Nomination

submitted by Akbayan prior to the May 2013 elections.

The Comelec proclaimed Katoh as member of the House after Speaker Feliciano Belmonte notified the poll body on the vacancy in the party-list seats of Akbayan in April. Joel San Juan

Economy

A4 Saturday, May 9, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

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Consortium casts highest-rate bid for BOC’s computerization project

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By Joel R. San Juan

HE consortium OmniprimeIntrasoft has cast the highest bid for the much-awaited P650million computerization project of the Bureau of Customs (BOC) that is expected to boost the agency’s campaign against smuggling.

The project is for the completion of the “Selection of System Integrator for Design, Implementation, Operation and Maintenance of

Integrated Enhanced Customs Systems [iCPS] and National Single Window [NSW2].” The modernization project mainly aims to hasten

the processing of importers’ transactions with the BOC. In a letter dated April 13, the Bids and Awards Committee of the Department of Budget and Management-Procurement Services (DBMPS BAC) has declared the consortium of the Omniprime Marketing Inc. and Intrasoft International’s technical proposal to be the “highest rated bid” for the project.

“In line with this, the DBM-PS BAC would wish to inform you that, after due consideration of your said proposal and bid submissions as well, it has determined your bid to be the highest rated bid [HRB] for the bidding project,” the letter, addressed to the joint venture of Omniprime-Intrasoft, stated.

Omniprime-Intrasoft was also

asked to submit additional documents, among which are latest income-tax return, value-added tax returns and valid Philippine Government Electronic Procurement System registration certificate in accordance with the Revised Implementing Rules and Regulation of the Republic Act 9184, or the Government Procurement Act. An invitation to negotiate also dated April 1 was, likewise, sent to the consortium to fulfill the post-qualification phase of the bidding process.

An opening of the financial proposal and negotiation were also scheduled where issues concerning the clarification on the scope of the project, payment schedules, warranties and guarantees,

software maintenance and modules were discussed The complete automation of procedures in the BOC is said to be an important step to eliminate, if not to significantly reduce, opportunities of corruption, particularly in the cargo clearance process.

Since there are still gaps in the current setup of the clearance process in the BOC which allows manual intervention, the system is prone to “negotiations” between the BOC insiders and unscrupulous traders.

Once the iCPS and NSW2 is implemented, there will be an endto-end automated processing of the goods entering the country. It will also ensure maximum revenues for the government because the fees will be automatically calculated.

MNTC to spend P119.32 million for Nlex drainage system

By Lorenz S. Marasigan

T

he Manila North Tollways Corp. (MNTC) is spending P119.32 million this semester to improve the drainage system along the North Luzon Expressway (Nlex).

The program involves the P69.32million drainage improvement along the Balintawak Cloverleaf and a P50million project in Valenzuela City.

The drainage-enhancement works at the Balintawak Cloverleaf, which started on February 14 and will end on June 30, include the construction of a pumping facility and a sump, or a water-detention tank to mitigate flooding along the Nlex roadway in the area.

MNTC President and CEO Rodrigo E. Franco said that aside from improving the existing drainage system, the company aims to provide convenient travel despite inclement weather conditions.

“The welfare of motorists is our prime concern that is why we want to ensure safe passage for them during rainy season,” he said on Friday.

Franco also guaranteed motorists of unhampered traffic flow while there is an ongoing drainageenhancement works as MNTC closes only one lane at all times, and activates patrol and traffic teams in cooperation with the Tollways Management Corp., Metropolitan Manila Development Authority and local traffic authorities.

The construction works cover four lanes of Balintawak northbound and are being done from Monday to Thursday, 10 p.m. to 4 a.m.

MNTC earlier enhanced the drainage system in Valenzuela southbound which also involved the construction of a pumping facility and a sump. The project was substantially completed in March this year and is now due for testing and commissioning.

The company booked a net profit of P2.57 billion in 2014, as impressive traffic volume and the rapidly expanding nontoll revenue base cushioned the negative effect of the long-standing delay in the implementation of a toll hike on the Nlex.

The figure was 8 percent higher

than the P2.38 billion registered the year prior, after revenues from toll operations rose by 6 percent to P7.52 billion. Nontoll earnings also reached P121.79 million, a 14-percent increase from 2013.

This, however, was lower than its P8-billion revenue target for 2014, as regulators continue to postpone the already-delayed increase in toll fees.

Yearly traffic figures are constantly breaking records, with 2014’s numbers climbing to an average of 185,297 vehicles entering the thoroughfare to the north each day. The figure was higher by 7 percent compared to the year prior.

This traffic growth was driven mainly by the sustained economic stability in the regions around the expressway service area, backstopped by robust vehicle sales and lower fuel prices.

This year, the company has set a more modest revenue target of P7.8 billion, or about 4 percent higher from 2014, due to the non-implementation of the toll increase.

But should the Toll Regulatory Board (TRB) approve the toll adjustment, Franco said revenues could “easily grow by about 6 percent or 7 percent.”

The absence of a toll-rate increase could lead to the depletion of the company’s revenues, Franco said, hence leading to lesser financial muscle to implement the needed expansion of the toll road.

TRB Director Edmundo O. Reyes earlier said the country’s major thoroughfares would burst at their seams by 2018, if no expansion would be implemented.

Currently, the Pangilinan-controlled expressway operator is spending billions of pesos to upgrade its services and expand the toll road to meet the growing demand for connectivity.

Metro Pacific Tollways Corp. executives have repeatedly expressed their dismay on the slowpoke implementation of the rate increase, despite being provided under the tolloperations agreement signed with the government early on.

The toll regulator has not acted on the company’s two petitions, one filed in 2012, and another filed in 2014. The first petition was due on the first of January 2013. The second one, submitted on the 30th of September last year, would bring the cumulative toll-rate adjustment to 15 percent, of which 12 percent is long overdue.

The concession that the Pangilinan-controlled company holds allows for toll adjustments every two years.

Current toll fees at the thoroughfare (from Mindanao Avenue to Santa Ines) amount to P218 for Class 1 Vehicles (cars, jeepneys, pickup trucks and vans); P544 for Class 2 vehicles (two-axle trucks, buses and vans); and P652 for Class 3 vehicles (trucks and trailers with three or more axles).

briefs ANGARA EYES TAX INCENTIVES TO FILMMAKERS PROMOTING TOURISM Sen. Juan Edgardo “Sonny” Angara has filed a bill giving tax incentives to filmmakers who promote the country’s tourism by using selected provinces in their movie settings.

Under his Senate Bill 2160, or the Fostering Investment through Local and International Movies (FILM) Act, Angara seeks to attract filmmakers by providing tax incentives, and to empower the Film Development Council of the Philippines (FDCP) to provide additional benefits.

“We should encourage more filmmakers to feature different parts of the country and showcase their beauty and culture to effectively promote Philippine tourism,” Angara said.

The lawmaker from Aurora province said the influx of tourists in Sagada in Mountain Province due to the movie That Thing Called Tadhana should extend to other tourist destinations in the Philippines.

Angara, vice chairman of the Senate Committee on Tourism, said eligible local and international productions may be granted 20-percent tax credits if the final product is set completely or largely within the Philippines, or if at least half of filming occurs in a community here in the country that is still recovering from a significant natural disaster. PNA

GATCHALIAN’S BILL SEEKS TO HIKE PUBLIC SCHOOL TEACHERS’ PAY Good news for public-school teachers and nonteaching personnel.

If the proposed measure filed by Nationalist People’s Coalition (NPC) Rep. Sherwin Gatchalian becomes a law, teachers in public elementary and high school may be able to take home at least P31,351 from the current minimum salary of P18,549, while nonteaching personnel should take home at least P16,051 from the current minimum salary of P9,000.

Gatchalian, who represents Valenzuela City’s first congressional district, said increasing the salary of teachers is only an appropriate gesture of appreciation for their vital role in enhancing the skills of the youth and nation-building.

“Public-school teachers deserve the praise they get for the significant role they play in molding the character and minds of our youth and shaping our country,” said Gatchalian, a majority member for the House committees on basic education and culture and on higher and technical education.

“Yet, despite them being hailed as heroes, our public-school teachers still appeared to be neglected because of the low salaries they receive,” Gatchalian added.

Puregold goes unlimited on its Sari-Sari Store Convention 2015

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t’s a sari-sari summer spree for the country’s neighborhood entrepreneurs.

Retail giant Puregold is bringing limitless deals and prizes to the country’s sari-sari store owners this May as it mounts the 12th Sari-Sari Store Convention, the largest gathering of neighborhood retail store operators in the country.

Puregold, a news statement said, will host the tindahan convention from May 20 to 24 at the World Trade Center (WTC), bringing together its crop of Tindahan ni Aling Puring (TNAP) members for five days of daylong fun and festivities at the WTC in Pasay City.

“Sari-sari store owners are the backbone of our local economy. They are also the foundation of the business of Puregold, being among our primary wholesale customers. This is our annual treat for them,” said Antonio de los Santos, vice president for operations.

“It’s hard to imagine a Filipino neighborhood without a single sarisari store. These tindahan are our

trusty village convenience stores that serve our daily needs with a personal kapit-bahay touch,” de los Santos said.

Going big on its 12th year, the 2015 convention promises to bring “unlimited” fun and excitement to loyal reseller patrons, with wholesale deals and discounts, pocket entrepreneurship workshops and other surprises.

“In 2014 we promised to level up our members’ businesses. This year, we will reward them with UNLI-saya, UNLI-asenso, UNLI-panalo and UNLI papremyo! Everything is ‘unli,’ all to help our Tindahan ni Aling Puring members to further improve their business,” he said.

De los Santos cited how sarisari stores across the country serve as the supermarket’s link to the household. “Sari-sari stores widen our reach to retail consumers. In a way, they are mini-Puregold stores that you will find in your neighborhoods. That’s why we have made it a point to help their businesses grow.

Their growth is our growth.”

As part of its 12th year salvo, Puregold is also expanding benefits for members of the TNAP, its flagship loyalty program.

On top of free lifetime membership, benefits of the TNAP card now include points for all types of purchases, with one point—or a peso— as a reward for every P200 worth of goods shopped at any of Puregold’s 235 branches nationwide.

Accumulated points are valid for two years and may be redeemed straight at the cashier.

Cur rently, there are over 300,000 TNAP members from across the country.

“We are very proud of our Tindahan ni Aling Puring program because it has served thousands of small-medium entrePINOYs over the years. Through the 12th year of our Sari-Sari Store Convention and the introduction of our new TNAP membership card, we hope to bring limitless, boundless and never-ending benefits to our neighborhood store owners,” de los Santos said.

Economy BusinessMirror

news@businessmirror.com.ph

briefs DAVAO CITY IS 9TH SAFEST IN THE WORLD Davao is again rated as one of the safest cities all over the world by web site numbeo.com.

In its latest information update dated April 30, Numbeo rated Davao City as the ninth safest city in the world with a safety index of 80.69.

On the top is Osaka, Japan, with 89.26; followed by Munich, Germany, with 83.57; Stavanger, Norway with 83.14; Singapore with 82.93; Bursa, Turkey, with 82.71; Heidelberg, Germany, with 82.47; Seoul, South Korea with 82.27; Bergen, Norway, with 80.98; Davao City; and Stuttgart, Germany, with 80.65.

Last year Davao City was the fourth safest city in the world.

Numbeo also came out with its most dangerous cities in the world in terms of crime index.

Numbeo claims to be the world’s largest database of user-contributed data about cities and countries worldwide. It also provides current and timely information on world living conditions, including cost of living, housing indicators, health care, traffic, crime and pollution.

Saturday, May 9, 2015 A5

Clark Green City banks on smart urban planning to lure investors and locators

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lark Green City, the largest development project of the state-owned Bases Conversion and Development Authority (BCDA), is seen banking on its smart urban planning to attract investors to locate in the rising central business district (CBD) in Central Luzon.

Oxford Business Group’s (OBG) newly launched The Report: The Philippines 2015 has highlighted the Clark Green City, hoping that the ambitious new planned city will thrive through the facilitation

of the BCDA, which has been successful in developing the former militar y base camp Bonifacio Global City (BGC).

The Clark Green City has a vast land area of 9,450 hectares which

is envisioned to be the country’s first smart, green, and disasterresilient metropolis.

“Similar big ideas have gone nowhere, as investors are typically reluctant to be the first to move to an empty locale and public backers typically lack the resources to fund up front the large investments in infrastructure needed to encourage private investments,” OBG’s report said.

“But this [Clark Green City] is a project backed by the BCDA, the same body behind BGC, where a new second CBD of Metro Manila has sprouted up where 10 years ago there were mostly fields,” it added, noting that BGC, despite being half-built, is already competing with Makati CBD as most desirable address for businesses in Metro Manila.

“The simple formula to BGC’s success, all too rare in Asian cities, is smart urban planning,” it stressed.

Like the BGC, the BCDA wants the same smart urban planning for the Clark Green City.

“We want to incorporate the best practices that we developed in Fort Bonifacio [BGC] and duplicate what we have done, only bigger and better,” BCDA Business Development Manager Arrey Perez was quoted in OBG’s The Report.

“We want to promote a better quality of life and address climate change with a showcase development. The design is compact for a low-carbon footprint and promotes walking and mass transit,” Perez added.

On the other hand, the OBG’s report mentioned that the big test

Drilon seeks enhanced trade ties with Turkey

mandatory use of the middle name in all official transactions sought A legislator is pushing for the mandatory use of the middle name in all documents or transactions where the name of a person is required.

Rep. Antonio F. Lagdameo Jr. of Davao del Norte has filed House Bill 5419, which aims to make use of the middle name in identifying a person.

Lagdameo said the middle name immediately establishes the parentage or lineage of a person. Requiring the use of the middle name in all official transactions and documents lessens the opportunity to hide a person’s true identity, he said.

“Our name symbolizes our honor and integrity. Once our name is destroyed or tarnished it may be equivalent to loss of life,” Lagdameo said.

In filing the measure, he cited Articles 364 to 380, Title XIII (Use of Surnames) of the Civil Code of the Philippines, as amended by the Family Code, which specifically provides for the use of surnames by, among others, legitimate and legitimated children and married women.

The Mindanao solon said, ordinarily, the full name of a person consists of a given name, a middle name which is the last name of the mother and the surname, last name or family name.

According to Lagdameo, in all cases, however, a person is not required to include a middle name in the full name of a person. Middle names are usually expressed only in initials. PNA

dpwh-ncr may 8 to 11 road repair schedule The Department of Public Works and Highways-National Capital Region (DPWH-NCR) will undertake reblocking and road repair effective 10 p.m. of May 8 to 5 a.m. of May 11, on the following roads in the cities of Quezon and Pasig: Quezon City 1. Along E. Rodriguez Jr. Avenue/C-5 from Calle Industria Street to Greenmeadows Avenue (first lane from sidewalk, South bound); 2. Along Mindanao Avenue from Road 1 to Catleya Street (fourth inner lane, North bound); 3. Along Payatas Road from Majaas Street to Amlacville Street (second lane, North bound); and 4. Along Batasan Road from Filinvest II to San Mateo Road (third inner lane, West bound).

Pasig City 1. Along C-5 Road from Shell Gasoline Station going to Lanuza Street (third outermost lane, North bound); and 2. Along C-5 Road (Gap 4) from Pasig Boulevard to Bagong-Ilog Service Road (South bound). PNA

for the Clark Green City project is the high up-front infrastructure costs due to its higher environmental standards.

With the forward-looking Clark Green City project, the BCDA—as granted by law—can offer attractive tax and other incentives through the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI) in order to attract more locators in the rising CBD in Central Luzon.

The Clark Green City has no restrictions for foreign-owned companies interested in bidding.

In the BCDA’s previous release, projects in the Clark Green City will be in the form of joint venture with the BCDA, with 55/45 sharing in favor of the government body. PNA

S

PCSO-St. Luke’s Hospital partnership

Philippine Charity Sweepstakes Office (PCSO) Chairman Erineo “Ayong” S. Maliksi (first row, second from left) shakes hands with St. Luke’s Medical Center-Global City President and CEO Dr. Edgardo R. Cortez, as they hold a copy of the agreement that establishes PCSO help desks in the hospital under the “At Source ang Processing” program of the charity agency. The signing was held on April 22 at St. Luke’s. With them are (first row, third from left) PCSO Vice Chairman and General Manager lawyer Jose Ferdinand M. Rojas II and Director Betty B. Nantes, Director Mabel V. Mamba (back row, second from left) and Director Atty. Francisco G. Joaquin III (back row, third from left). JOSEPH MUEGO

Capacity allocation for wind-power projects seen to double from 200 MW to 400 MW

By Lenie Lectura

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HE Department of Energy (DOE) has formally endorsed to the Energy Regulatory Commission (ERC) to raise the capacity allocation of wind-power projects to a total of 400 megawatts (MW) from the current 200 MW. National Renewable Energy Board (NREB) Chairman Pete Maniego said the DOE certification was submitted to the ERC on April 24. “Additional wind installation target is 200 MW. The total would be 400 MW,” he said.

The NREB is the body tasked by the Renewable Energy Act of 2008 to recommend policies, rules and standards to govern the implementation of the law, which granted fiscal and nonfiscal incentives to renewable energy (RE) projects.

According to Energy Director Mario Marasigan, the additional allocation will help augment the needed capacity this year up to 2016 since wind installation target is already subscribed.

The new feed-in tariff (FIT) rate for wind projects will have to be evaluated so the ERC can arrive at a reasonable rate.

The FIT is the per kilowatthour (kWh) rate that will be guaranteed to RE developers to ensure the viability of their

projects. Consumers shoulder the tariff through a new line item in their electricity bills. They are now paying an additional P0.0406 per kWh. The ERC recently approved to adopt a new FIT rate of P8.69 per kWh for solar energy projects.

The change in rate for solar is necessary to accommodate the increased capacity allocation from 50 MW to 500 MW. “For the solar powered-facilities that have been commissioned prior to the new solar FIT rate’s effectivity, the original solar

FIT rate of P9.68 per kWh shall continue to apply,” the ERC said.

In 2012 the ERC approved FIT rates for RE are P6.63 per kWh for biomass; P8.53 per kWh for wind; P5.90 per kWh for runof-hydro; and P9.68 per kWh for solar.

Papaya lovers

Sisters Juliana Marie (left) and Jasmine Faye Eslava pose before a fruit-laden papaya tree of the Red Royale variety at a family orchard in Ambalatungan, Santiago City. Papaya is one of the major agricultural produce in the province.

LEONARDO PERANTE II

enate President Franklin M. Drilon pushed for the expansion of bilateral investment and trade relations between the Philippines and the Republic of Turkey.

Drilon, who visited Turkey upon the invitation of the Grand National Assembly of Turkey (GNAT), met with Speaker Cemil Çiçek and Deputy Prime Minister Bülent Arınç “to discuss ways of strengthening the diplomatic relations and partnerships between the two countries.”

“I am glad to have had the chance to promote the country to the government of Turkey. Fortunately, we have succeeded in convincing them that investment is ‘more fun in the Philippines,’” Drilon said. He added that there are lot opportunities for trade and investment the two countries can explore.

Drilon said that he is confident that his visit to Turkey, together with Senate committee on Economic Affairs Chairman Joseph Victor Ejercito, will translate into more investment opportunities for the country in the near future.

Their official visit coincided with the 65th year of the establishment of the diplomatic relations between Philippines and Turkey.

“There is a mutual understanding between the two countries for the need to improve their relationship, particularly on areas of trade and tourism, where both nations are seen to equally benefit,” Drilon added.

Drilon said they have agreed on the importance of activating the Philippines-Turkey Joint Economic Commission (JEC) in order to continuously monitor, review, and promote the bilateral activities between the two countries. Thus, Drilon urged the Department of Trade and Industry to coordinate with its counterpart in Turkey to schedule immediately the inaugural meeting of the JEC. Drilon cited the country’s booming tourism and leisure industries, particularly its resorts and beaches, as the area in which Turkish people have expressed great interest.

Turkey, on the other hand, is promoting its religious, cultural, and historical sites, he noted.

He said that the $250-million investment from Turkey can be further increased.

“We are confident that in the next few years, we will see an enhanced trade activity between the two countries. The Philippines has a lot to offer to Turkey, particularly in terms of educated and skilled work force,” Drilon said.

He added: “Turkey is a significant partner if we want to increase our foreign direct investments and expand job opportunities for our countrymen.”

The Senate leader said that trade relations between the two countries can be promoted with the recent establishment of direct flights from and to Istanbul thrice a week.

The Senate leader also thanked the Turkish government for its contribution to the peace process in Mindanao, as well as for the valuable assistance it readily extended to the country during the Supertyphoon Yolanda.

Drilon also expressed support for the upcoming trade mission of Turkish businessmen to the Philippines in October 2015, being organized by Philippine Ambassador to Turkey, Maria Rowena Mendoza Sanchez.

Lastly, the Senate leader has also designated Ejercito as the president of the Philippines-Turkey Parliamentary Friendship Group in order to continue the relations that both parliaments have promoted during this trip. PNA

A6 Saturday, May 9, 2015

Opinion BusinessMirror

editorial

Aquino’s deep-dish pizza trip

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ATCHING the television coverage and reading the newspaper reports about President Aquino’s visit to Chicago in the US state of Illinois, we were struck by the irony of it all.

About 150,000 Filipinos call the Chicago metropolitan area their home, although only about 4 percent of all of our US balikbayan live in that area. While the President expressed that he was really looking forward to his trip to the “Windy City” to try its famous deep-dish pizza, no doubt some prominent local Filipinos pushed hard for this visit.

It is natural to feel a sense of attachment when seeing pictures of our countrymen living abroad. But it is also good to remember that these Filipinos are not part of the Philippines. All those smiling faces that greeted President Aquino are completely a part of both the economic and political life of the US, not of the Philippines. Most vote for American politicians, pay taxes to American governments, and whose future depends on how America goes, not how the Philippines is doing.

Naturally, a group of protesters greeted Mr. Aquino, calling for his resignation for a variety of reasons, from the Mamasapano tragedy to the handling of the Mary Jane Veloso affair and the serious problem of journalists being killed.

Yet, we wonder if those same “Fil-Chicagoans” took to their streets to protest in their own city, as the Chicago city government had just agreed to pay $5.5 million to compensate victims tortured in police custody.

In a speech to local Filipinos, the President discussed the government efforts under his administration to curb corruption. This is highly ironic, given that four of the last seven Illinois governors have gone to prison for corruption, including the most recent, Rod Blagojevich, who is serving 14 years. Presumably, some of those in the audience who applauded the Philippine President’s war on corruption also voted for Blagojevich as governor—twice.

One purpose of the foreign trip is to encourage investments in the Philippines. But Chicago may not be the best venue for that speech. Chicago’s credit rating is just two levels above junk status. Further, Chicago’s current debt and unfunded liabilities are larger than the total Philippine government budget for 2015, this for a city of 2.7 million, about the same as Quezon City.

Chicago may not be the best place to go looking for investments. The city is desperately trying to encourage outside investment to come in, hoping that increasing its tax-revenue base might save the city from bankruptcy.

While Chicago is only one stop on the President’s itinerary, we remind President Aquino that very good deep-dish pizza is readily available in the Philippines. And as Chicago may not be the best place to go looking for foreign investment, both US Supreme Court Justice Antonin Scalia and US talk-show host Jon Stewart are adamant that, while tasty, Chicago-style is really not pizza.

How much the markets have changed John Mangun

W

OUTSIDE THE BOX

HILE I have said over and over—probably too many times—that today’s global financial markets are not the same as before, even some of the best and brightest have not realized that fact. Certainly, I am not the only one who has been yelling for some time that traditional price valuations mean very little in a market where prices are not part of the normal marketplace price mechanism.

Prices of assets like stocks are supposed to be set by buyers and sellers judging the value of shares against the return available with other investment vehicles, including holding cash. But when interest rates are zero or negative, how do you value a share price against holding cash, which may not give you even a positive return, let alone a “reasonable” return?

Mark Mobius is a global investment icon, now executive chairman of Templeton Emerging Markets Group, having joined Templeton in 1987. Templeton, founded by British investor and mutual-fund pioneer Sir John Templeton, itself was legendary in the business.

Mobius was the first who recognized the potential of the investing in the so-called emerging markets.

Templeton himself started investing

client money in Japan during the 1960s, when that country started its postwar boom with a 10-percent annual economic growth.

Believing that undiscovered value and profit opportunities could be found outside of Europe and the US, Mobius had been in Asia for some time, attending Kyoto University in Japan. When he joined Templeton, he opened and held office in Hong Kong.

Over the last 25 years, he has directed the placement of tens of billions of dollars to Russia, South America and, of course, Asia, when no one else was interested and could not see the potential. Mobius was like an Amsterdam diamond merchant, who could see in a rough uncut stone huge value that would come in time.

However, in the last years, the funds he manages have seen a drop

in investment, from $39 billion in 2011 to $26 billion today. The reason: poor performance with a belowaverage track record.

Believe it or not, in the late-1980s there were foreign mutual funds exclusively devoted to investing in the Philippine stock market. The largest of these was the Jardine Fleming Philippine Fund run out of Hong Kong. The total value of the fund was $7 million (P140 million), or P315 million, based on today’s exchange rate. To put that in perspective, a Philippine Stock Exchange (PSE) listed company trading P315million value in one day might not even make the top 10 most active issues. That is how much the PSE has changed in the last 25 years.

A P100,000 investment in the shares of Philippine Long Distance Telephone Co. (PLDT) then would be worth P4 million today, including dividends. That is about a 16-percent annual return on your investment.

But had you bought PLDT shares five years ago, your return would have been 19 percent or 18 percent higher than holding for 25 years.

The Mobius track record over 25 years is actually less than the performance of PLDT percentage-wise at a current value of $3.8 million on that same $100,000. His fund has gained 4.3 percent annually over the past five years. And this is a man who has a team of 50 money managers, analysts and researchers in 18 offices worldwide.

Here is what Mobius said in a recent e-mail to clients: “The strategy of investing in undervalued stocks can falter in “sentiment-driven” environments, where investors focus more on the overall economic picture than on company fundamentals.

We go into markets when others are fleeing and, while some of our fund performance has struggled at certain points in time, we believe that with our contrarian approach, our shareholders will be rewarded in the long term.”

Mobius, unfortunately, is not fully connected to the “New Normal.”

If holding cash cannot even make a breakeven against inflation, a person almost does not care in the least about “valuations” if a stock price is going higher. Even “the overall economic picture” is not a concern or consideration if a stock market or stock price is repeatedly hitting historic or multidecade-high levels.

The pricing mechanism has been broken by central banks. You can complain about it, but you cannot fight or change it. You can invest as if it does not exist as Mobius does and gain low returns. Or you can go with it and make money.

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.

Parenting is not a predetermined equation with a predictable outcome

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By Michele Weldon | Chicago Tribune/TNS

OBERT Holmes looks anguished in the photos—face tense, arms stiff—walking out of a Centennial, Colorado, courtroom, where his son, James, is on trial for committing one of the most grisly mass shootings in American history.

In a distant part of the world, another father awaits the outcome of the penalty phase of the trial for his son. No doubt Anzor Tsarnaev hopes that his son Dzhokhar—known as the Boston Marathon bomber—does not receive the death penalty. If so, Anzor will have had to have buried two children, including his older son, Tamerlan, who died in the 2013 shootout with police following the murderous mayhem caused by the brothers’ homemade bombs.

These two fathers are separate but equal—the fathers of sons who murdered strangers. They are fathers who—according to accounts—were present in the lives of their children.

Their sons belong to what is defined as an intact family.

It is ironic, then, that recently Sen. Rand Paul of Kentucky, a Republican presidential candidate, blamed the recent violence in Baltimore on the

absence of fathers.

“There are so many things we can talk about; the breakdown of the family structure, the lack of fathers, the lack of a moral code in our society,” Paul said.

I am tired of such moralizing oversimplification. Together or alone, there is no magic parent.

The absence of a father—or a mother—is not an automatic prelude to disaster for sons and daughters.

And yes, it is also true, as evidenced by the cases of James Holmes and Dzhokhar Tsarnaev, that the presence of both parents is not an immunization against tragedy.

It is time to realize that the complicated layers of societal ills result from a melting pot of factors—socioeconomic, geographic, educational, racial, gender and a host of others too lengthy to list. Violence in children does not erupt because of a

simple family formula of mommy plus daddy, mommy minus daddy or daddy minus mommy.

Violence erupts from a cadre of societal failures. So let’s stop blaming the fathers who leave and the mothers who stay. Or the other way around.

According to a 2011 US census report, more than 4 million single women ages 15 to 50 gave birth that year, 35.7 percent of total births in this country. An earlier census study reported that in 2009 there were 11.6 million single parents in the US, with 9.9 million of them single mothers.

I am the head of one of those single-parent families. I have raised three sons alone for more than 20 years. My sons, 26, 24 and 21, are good men and are so without financial support or contact from an absent father.

Like millions of mothers and fathers—married and single—I, too, know firsthand the herculean task of raising children. Parenting is not a predetermined equation with a predictable outcome. We need to stop pretending it is.

I acknowledge my sons didn’t like

me all the time. And, yes, as preposterous as it sounds now, I expected that they would cherish me 24/7.

Our house was not always a calm or predictable haven from the world’s injustices and chaos. I yelled. They all yelled. Unspeakable things were said. Apologies were delivered.

I punished. I cried in the car driving to work. I speed dialed them over and over so they would answer me. I waited up. I waited in the car.

I waited in the gym. I waited in the doctor’s office. I waited in the emergency room. I waited in the front hall, clutching my cell phone, peering down the block, holding my breath at 3 a.m., praying to see the headlights of the Nissan Altima pull into the driveway.

Nothing catastrophic has happened to my sons. They have committed no heinous acts. I am extraordinarily grateful. I know I am lucky.

Sunday we celebrate Mother’s Day and next month, we flip to celebrate Father’s Day. But I suggest we instead celebrate Parents’ Day. We need to praise the parents who stay to do whatever is needed. And we need to stop blaming the larger problems on the parents who don’t.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Philcoman strongly opposes BBL

Evangelii Gaudium Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

Cecilio T. Arillo

database

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HE Philippine Council of Management (Philcoman), a nonprofit federation of professional and technological societies, institutions, academe, business enterprises and professional managers dedicated to the development of management and improvement of its practices in all aspects of the Philippine society, has timely alerted the people and their representatives in the national and local legislatures to the following questions:

(1) Whether the Bangsamoro, a politico-military construct of the murderous terrorist syndicate, known as the Moro Islamic Liberation Front (MILF), dissociates itself from the Republic of the Philippines; (2) W hether the Republika ng Haringbayang Katagalugan (as established by Pangulong Bonifacio and the Katipunan) that evolved into the Revolutionary Philippine Republic (as defended by General Miguel Malvar) superordinates the Moro community (as imagined by the MILF); (3) W hether the Bangsamoro (as claimed by the MILF) is merely the Southeast Asian germ of the Islamic State in Iraq and the Levant; (4) Whether the Bangsamoro (as defined by the MILF) is merely a trojan horse of Han expansionists, hegemonists and other external danger-lords; and (5) W hether the Bangsamoro (as embodied by the MILF) will hinder the regime of love contemplated by the 1987 Philippine Constitution.

Philcoman Director and Spokesman Bernard Karganilla said that if the people say yes, then the notion of a Bangsamoro basic law (BBL) is unacceptable.

The Philcoman, in effect, is asking the descendants of Emilio Jacinto and other heroes and their delegates in Congress and local councils whether the discussion of the BBL is an exercise in futility, given that the MILF does not: (1) Renounce terrorism and other acts of violence; (2) Surrender its armaments; (3) Pledge allegiance to the Philippine Constitution; (4) Shed off its belligerency; and (5) Refrain from seeking intervention from foreign powers.

A venerable non-government organization of managers founded in 1954 by 10 associations, the Philcoman “wondered if the nation of Saints Lorenzo Ruiz and Pedro Calungsod can tolerate more victims at the jihadist hands of the MILF— the same killing machine liable for the massacre of 44 elite police officers in Mamasapano and the beheading of Philippine Marines and Army soldiers in Basilan’s Al Barka, the dastardly attack on Siocon and Kauswagan, where scores of inno-

cent civilians were sacrificed to the will of the jinns, and the bombings of the Davao Airport and the Sasa Port in Davao City, among others.

The Philcoman (inspired and guided by the likes of Dr. Lilian M. Gilbreth, Dr. Daniel M. Braum and Dean Cesar H. Concio) inquires of the BBL proponents whether they or any of the negotiators have tried to explain love to the MILF (“Bin Laden provided equipment and training assistance to the Moro Islamic Liberation Front,” according to the 9/11 Commission in page 58 of its Official Report).

The Philcoman (dedicated to the development of management and improvement of its practices in all aspects of the Philippine society) challenges the MILF to dismantle the “mantiqi” (operating cells and networks) of the Bangsamoro Islamic Freedom Fighters, Abu Sayyaf, and other terrorist cabals in Mindanao.

The Philcoman believes that the Nation of Datu Kalipulakos (LapuLapu), Dagohoys, Macario Sakays and Terry Adevosos will safeguard its own territorial integrity, national interest and social welfare.

In a meeting, members of the Philcoman board of directors unanimously agreed that the solution to the Mindanao problem is not the passage of the BBL, but to strenghten the existing constitutionally ordained Autonomous Region in Muslim Mindanao and to strictly enforce the gun ban and prosecute violators.

Unless the government removes the guns from terrorists and criminal elements, there is no way you can achieve peace in Mindanao.

Philcoman said: “Right now, the government is negotiating with the MILF at the point of its guns and is often threatened with war and terrorism if the BBL is not approved in its entirety.”

Philcoman further stated that, for many years now, the MILF has been expanding its territories in Mindanao because the government failed to realize early on that a negotiating table to the MILF is just an extension of its battlefield as events have shown.

To reach the writer, e-mail cecilio. arillo@gmail.com

58th Part

The mysterious working of the Risen Christ and His Spirit

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aith also means believing in God, believing that He truly loves us, that He is alive, that He is mysteriously capable of intervening, that He does not abandon us and that He brings good out of evil by His power and His infinite creativity.

It means believing that He marches triumphantly in history with those who “are called and chosen and faithful” (Revelation 17:14). Let us believe the Gospel when it tells us that the kingdom of God is already present in this world and is growing, here and there, and in different ways, like the small seed which grows into a great tree (cf. Matthew 13:31-32), like the measure of leaven that makes the dough rise (cf. Matthew 13:33) and like the good seed that grows amid the weeds (cf. Matthew 13, 24-30) and can always pleasantly surprise us. The kingdom is here, it returns, it struggles to flourish anew. Christ’s

resurrection everywhere calls forth seeds of that new world; even if they are cut back, they grow again, for the resurrection is already secretly woven into the fabric of this history, for Jesus did not rise in vain. May we never remain on the sidelines of this march of living hope!

Because we do not always see these seeds growing, we need an interior certainty, a conviction that God is able to act in every situation, even amid apparent setbacks: “We have this treasure in earthen vessels” (2 Corinthians 4:7). This certainty is often called “a sense of mystery.” It involves knowing with certitude that

San Jose Mercury News/TNS

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UCH of the discussion about the lack of women in Silicon Valley has focused on numbers: Only 25 percent of the industry’s technical work force is female, for instance, as are an equally low level of its managers.

But another number has received far less attention: The number on their paychecks. Women who work in computer and mathematical occupations make 84 cents to every dollar a man earns, or $214 less per week. If Silicon Valley is serious about attracting more women, it’s time it paid more attention to that number.

That’s why two initiatives from two very different companies are so encouraging. While I think their efforts have flaws, the intent is noble.

They recast Silicon Valley, home of the “brogrammer,” as a place

willing to break from business as usual to create an environment where women can thrive. Pay disparities are also an area where companies can have an immediate impact, unlike efforts to increase the number of women in the so-called pipeline of future tech workers at colleges and even high schools.

In the most ambitious of the efforts, Salesforce, the San Franciscobased business-software giant, is conducting an analysis of the gender pay gap of its 16,000 employees and CEO Marc Benioff said he would correct any gender disparity.

Meanwhile, Ellen Pao, interim CEO at Reddit (better known for her role in her failed gender discrimination lawsuit against Kleiner Perkins Caufield & Byers), said her company wouldn’t negotiate salaries anymore.

In a statement, the company said that, “just because one person is a better negotiator does not mean they

all those who entrust themselves to God in love will bear good fruit (cf.

John 15:5). This fruitfulness is often invisible, elusive and unquantifiable.

We can know quite well that our lives will be fruitful, without claiming to know how, or where, or when. We may be sure that none of our acts of love will be lost, nor any of our acts of sincere concern for others. No single act of love for God will be lost, no generous effort is meaningless, no painful endurance is wasted. All of these encircle our world like a vital force. Sometimes it seems that our work is fruitless, but mission is not like a business transaction or investment, or even a humanitarian activity. It is not a show where we count how many people come as a result of our publicity; it is something much deeper, which escapes all measurement. It may be that the Lord uses our sacrifices to shower blessings in another part of the world, which we will never visit. The Holy Spirit works as he wills, when he wills and where he wills; we entrust ourselves without pretending to see striking results.

We know only that our commitment is necessary. Let us learn to rest in the tenderness of the arms of the Father amid our creative and generous commitment. Let us keep marching forward; let us give Him everything,

Don’t buy Alibaba’s success story

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allowing Him to make our efforts bear fruit in His good time.

Keeping our missionary fervor alive calls for firm trust in the Holy Spirit, for it is He who “helps us in our weakness” (Romans 8:26). But this generous trust has to be nourished, and so we need to invoke the Spirit constantly. He can heal whatever causes us to flag in the missionary endeavor. It is true that this trust in the unseen can cause us to feel disoriented: It is like being plunged into the deep and not knowing what we will find. I myself have frequently experienced this. Yet, there is no greater freedom than that of allowing oneself to be guided by the Holy Spirit, renouncing the attempt to plan and control everything to the last detail, and, instead, letting Him enlighten, guide and direct us, leading us wherever He wills. The Holy Spirit knows well what is needed in every time and place. This is what it means to be mysteriously fruitful!

To be continued For comments, e-mail caritas_manila@yahoo.com. For donations to Caritas Manila, call 563-9311. For inquiries, call 563-9308 or 563-9298.

Fax: 563-9306.

ROM Tokyo to Mumbai, there’s been plenty of anxious chatter recently about how China’s bull market—which turned 883 days old this week—may have finally run its course. At the end of Asian trading on Thursday, the Shanghai Composite Index had fallen 8.2 percent in three days, its worst performance since mid-2013.

China hopes rising shares will bolster economic confidence.

But mainland markets are being driven less by genuine optimism than the “Zhou put,” or central bank Governor Zhou Xiaochuan’s penchant for rescuing markets the way Alan Greenspan did when he ran the Fed. To augment Zhou’s monetary failsafe, China now seems to be rolling out a “Xinhua put” to keep the good times going.

health of China’s middle class. A one-stop shop for 1.3 billion people—selling goods and services in sectors ranging from retail to entertainment to real estate—Ma’s company gives a better sense of China’s ebbs and flows than any government data set.

But, by naming a new CEO, Daniel Zhang, Ma seems to have acknowledged that Alibaba is entering a highly uncertain and volatile period. Alibaba is constrained by a domestic economy that is growing at its slowest rate since 1990, despite efforts by the government to recalibrate the country’s economic engines. Meanwhile, Ma’s push outside China has yet to gain traction.

Meanwhile, there’s a very real danger that Alibaba’s latest earnings report will encourage people to throw fresh fuel into a stock market that has raced far ahead of Chinese fundamentals. The MSCI China Index’s price-to-book ratio is the highest since March 2012 and

return on equity is the lowest since the global financial crisis. Morgan Stanley, which is downgrading Chinese shares, has said that China is seeing its weakest corporate profits since 2009. BNP Paribas has been highlighting China’s ballooning margin debt.

Alibaba’s change in leadership should serve as a warning to the millions of average Chinese, who are still rushing into the country’s stock market—and to the government that has been encouraging this risky behavior.

China’s long-term rally, which Ma’s earnings jump is liable to reignite, is part of a global stock market boom that has affected Wall Street, too. But the policy responses in Washington and Beijing couldn’t be more different. In the US, Federal Reserve Chairman Janet Yellen is warning of imbalances, calling market valuations “quite high.” In China, officials are going the other way, effectively screaming “buy,

buy, buy” to a fast-growing army of day traders.

In recent days, amid the downturn in Chinese stock markets, the country’s state-run media has rushed out a series of market-calming articles. “There’s adequate upward momentum, so market bullishness will continue,” Xinhua reassured investors. “Both regulators and stock investors hope to see steady and healthy development of the market.”

Xinhua hinted that Beijing plans on further easing fiscal and monetary policy, while holding off on increasing stamp duties on stocks and new initial public offerings.

China hopes rising shares will bolster economic confidence. But mainland markets are being driven less by genuine optimism than the “Zhou put,” or central bank Governor Zhou Xiaochuan’s penchant for rescuing markets the way Alan Greenspan did when he ran the Fed. To augment Zhou’s monetary failsafe, China now seems to be rolling out a “Xinhua put” to keep the good times going.

The problem with bubbles is they require constant reinforcement that distracts Beijing from implementing the structural reforms it needs to create balanced and sustainable growth. President Xi Jinping should think twice about fanning a bull market so out of step with economic realities.

Just ask Ma, who’s arguably as close to the frontlines of China’s economy as anyone else. From where he sits, China’s outlook isn’t as vibrant as its surging equities suggest.

and then raise women’s pay if they are paid less than men in similar positions.

“I don’t know if we have a problem,” Seka told me. “But I decided, let’s hold ourselves to task and take a look.”

Benioff went for it, telling the Huffington Post that his job is to make sure men and women are treated 100 percent equally and “when I’m done there will be no gap.” Seka and Robbins are currently hiring an outside firm to do the pay analysis.

Like any project in its early phases, each company’s approach has drawbacks.

Not every tech company has the resources of Salesforce, which reported $5.37 billion in sales in 2014, to do the analysis and then to spend more on salaries. (And, of course, if Salesforce is taken over, a possibility that emerged on Wednesday, it’s uncertain whether new owners would

share that commitment.)

In addition, it’s unclear how its plan would address discrepancies that begin at the company’s door when men may negotiate better, or how it would tackle inherent biases in the system that will continue to reward men more.

As for Reddit, a much smaller firm, it may seem heroic to ban negotiations by fiat. But what happens when the private company is looking to hire a star engineer, male or female, who has multiple offers?

Still, even if Salesforce and Reddit’s efforts result in just a handful of women making the same as male colleagues, they represent a Silicon Valley that is true to its roots. It is a place willing to rethink and change how the world works.

It’s about time that the tech industry becomes as innovative in how it treats women as it is in how it develops products.

William Pesek

BLOOMBERG VIEW

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That was before Jack Ma, chairman of China’s e-commerce giant Alibaba, had his say. After the close of trading on Thursday, the company reported a 45-percent jump in fourth-quarter revenue, handily beating Wall Street estimates.

To anyone who wondered whether the 105-percent rally in Shanghai shares over the past year was over, Alibaba’s success seemed to offer a sharp rejoinder.

But Alibaba’s position—and the Chinese economy’s—is more ambivalent than it seems. Before diving back into China’s froth-filled stock market, investors would be wise to take a second look.

First, credit where it’s due: Ma’s efforts to diversify Alibaba and reach the 557 million Chinese, who access the Internet from their smartphones and tablets are gaining traction. Sales rose to $2.8 billion in the first three months of this year. And Alibaba does offer the best available snapshot of the

Tech firms address the third rail—gender pay equity

By Michelle Quinn

Saturday, May 9, 2015

should be paid more than another person with similar experience performing a similar role.” Reddit offers candidates two nonnegotiable options—one with a higher base salary, and the other with higher equity.

“Most executives like to tell you: ‘Well, we would like to do something,’ but they don’t like to make themselves accountable,” said Noni Allwood, a senior fellow at the Center for Talent Innovation, who led Cisco’s diversity and inclusion program.

“We see a radical difference when the CEO is involved and accountable,” she said.

There are a variety of theories and studies out there about what contributes to pay disparity, both on the women’s side, as well as the employers’ side. Women don’t negotiate, as well as men, some say.

Or, even when women negotiate like men, they are penalized by both male and female managers

as someone people don’t want to work with. Whatever the reason, companies need to start somewhere to address it. And with Salesforce the push, oddly enough, started with the Academy Awards.

Leyla Seka, a senior vice president, and Cindy Robbins, head of the firm’s human resources department, had been eager to do something to address the gender pay disparity. But they weren’t sure how to approach what seemed like an edgy issue.

When actress Patricia Arquette, in her speech accepting her Oscar for Best Supporting Actress for her role in the movie Boyhood called for an end to wage inequality, Seka said she was inspired to press the issue.

“I was moved to see the women of Hollywood standing up,” she said. “It mainstreamed it.”

Last month Robbins and Seka pitched their idea to Benioff—to analyze pay at the firm by gender,

2nd Front Page BusinessMirror

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PHL’s global tourism ranking improves

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By Butch Fernandez

alacañang on Friday bared the good news of the Philippines rising in the World Economic Forum’s (WEF) Travel and Tourism Competitiveness Report, which now ranks it 74th out of 141 countries.

“This is an improvement from the 2013 [WEF] report, which ranked us at 82 out of 140,” Palace Deputy Spokesman Abigail Valte said, quickly adding: “This is primarily good news for us.”

Valte said at a news briefing on Friday that this was because President Aquino has been “taking strides to craft and implement a tourism-development plan that means that tourism is not just the responsibility of the Department of Tourism, but also the responsibility of departments that have something to do with tourism.”

She cited, for instance, the international and domestic airports under the Department of Transportation and Communications, and the Department of Public Works and Highways (DPWH) for fixing roads that lead to tourist destinations.

Valte pointed out that, under the 2015 Travel and Tourism Competitiveness Report, the WEF found that the Philippines “scored very high in price competitiveness and prioritization of travel and tourism and international openness.”

Valte pointed out that, under the 2015 Travel and Tourism Competitiveness Report, the WEF found that the Philippines “scored very high in price competitiveness and prioritization of travel and tourism and international openness.”

“Also, we continue to see this in the figures

of visitor arrivals that we have, because from 2010, it has consistently been going up. At the end of 2014, we logged in 4,833,368 international visitor arrivals for the year, and we hope to continue to see those numbers going up, as well as numbers for domestic tourism,” the Palace official said.

She foresees a boost in domestic tourism this year, given the number of long weekends for 2015. “We encourage everyone to take advantage of these long weekends,” Valte added.

At the same time, the Palace deputy spokesman said Malacañang is also pleased to note from the DPWH that the P150-million access road under the Tourism Infrastructure Program has been completed.

Valte said the project in Sitio Kalanganan, Barangay San Vicente in Baungon, connects the Rafflesia Yard, which has already been declared by the Department of Environment and Natural Resources as a critical habitat of the largest flower in the Philippines, known as the bo-o, or the kolon busaw.

“So, it is the second-largest flower in the world with a diameter that can reach up to 80 centimeters,” the spokesman said, explaining that because of the new access road that has been built and completed, “our visitors and our tourists will now have an easier time to access the flower yard.”

www.businessmirror.com.ph

Toyota zooms to record $18-B profit on sales growth,yen

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OKYO—Toyota zoomed to a record ¥2.17-trillion ($18.1-billion) profit for the fiscal year through March, up 19 percent from the previous year, buoyed by sales growth in the US and a perk from the cheap yen.

Toyota Motor Corp. President Akio Toyoda told reporters on Friday the Japanese automaker appeared to be back on track for “sustainable growth,” although the coming year would be a critical test.

Looking ahead, the company announced it’s expecting a 3.5-percent growth in profit to ¥2.25 trillion ($18.8 billion) for the fiscal year through March 2016.

Since Toyoda, the grandson of the automaker’s founder, took the helm in 2009, Toyota has gone through hard times, getting embroiled in a massive recall scandal, mostly in the US. The scandal ballooned to millions of vehicles being recalled for a range of problems, including faulty brakes, sticky gas pedals and defective floor mats.

“This year will be decisive in showing whetherToyotacanheadtowardsustainable growth or we will be forced to turn backward,” he said, referring to the recall fiasco and the 2008 financial crisis.

Annual sales grew 6 percent to ¥27.23 trillion ($227 billion), although fewer vehicles were sold around the

world. Cost cuts and a cheap yen helped.

The maker of the Camry sedan and Prius hybrid has been the world’s topselling automaker for the last three years in the face of tough competition from Volkswagen AG of Germany and General Motors Co. of the US. Since the recalls surfaced, Toyoda announced an intentional halt to expansion, such as opening new auto-assembly plants, and instead focused on cost cuts, quality controls, personnel training and making more of existing plants.

That three-year hiatus was lifted only recently. Last month Toyota announced a new plant in Mexico, with eyes on the lucrative North American market, as well as a plant in China, where, despite some bumps, long-term growth potential remains great.

Before the scandal, Toyota boasted a reputation for meticulous quality, super-lean production and a management that empowered workers. But it acknowledged that it had grown too fast.

After the scandal, Toyota unveiled TNGA, or Toyota New Global Architecture, which streamlines product development to avoid overlap and encourages shared technology and parts, to reduce waste while being able to adapt to different markets and kinds See “Toyota,” A2

PINOY WELCOME President Aquino receives a warm welcome from Filipino-Canadians, with the customary selfie, as he makes his way for a courtesy call at the Large Drawing Room of the Rideau Hall in Ottawa, Canada.

Benhur Arcayan / Malacañang Photo Bureau

Jobs report could help clarify a muddy US economic picture

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A S H I N G T O N —T h e government’s April jobs report scheduled for release on Friday could bring some clarity to a fuzzy picture of the US economy. The economy likely shrank during the first three months of the year. And hiring slowed sharply in March.

Economists have pointed mainly to temporary factors, especially harsh winter weather that kept consumers away from shops earlier this year. A labor dispute at West Coast ports also delayed shipments of parts and contributed to a sharp drop in exports.

Analysts have forecast that job growth rebounded in April to 222,500, according to a survey by FactSet, from 126,000 in March.

The March gain was the weakest in 15 months. Economists have also forecast that the unemployment rate dipped last month to 5.4 percent from 5.5 percent in March.

The dollar has appreciated about

15 percent in the past year against other currencies, such as the euro and Japanese yen. That trend has made US goods more expensive overseas and could slow export sales this year.

And the roughly 50-percent drop in oil prices from last June through January has led to sharp cutbacks in oil and gas drilling by energy companies. That trend has reduced investment in steel pipe and other equipment and slowed growth. Most economists expect that pattern to continue until summer.

Employers have added more than 3 million jobs over the past 12 months, a healthy pace. But some of the fastest-growing sectors involve mainly low-paying work, such as restaurants, retail and home health care.

The economy would benefit from more jobs in higher-paying sectors. But positions in the oil and gas industry dropped in the first three months of this year.

And manufacturing jobs declined in March for the first time in nearly two years.

April’s jobs report should shed light on whether the first quarter’s slump was temporary or whether a more persistent weakness is holding back the economy. Recent economic indicators have provided support to both views.

Home sales staged a big comeback in March, a possible sign that more Americans are eager to make expensive purchases. People bought existing homes at an annual pace of 5.19 million, the National Association of realtors said. Those gains are expected to extend into April based on figures on signed contracts released by the Realtors. This would help spur additional growth in the construction sector as builders seek to meet demand.

And service firms, such as restaurants, retailers and banks, grew at a faster pace in April than in See “Jobs,” A2