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Sports
TORONTO’S Demar Derozan (10) passes the ball away from Orlando’s Channing Frye (8) during the first half of their game on Tuesday. AP
C | T, N , mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao
RAPTORS OVERRUN MAGIC
CLEVELAND—The National Basketball Association (NBA) has stripped LeBron James of a tripledouble. After reviewing film of the Cavaliers’ 118-111 win on Monday night over New Orleans, the league took away a rebound and assist from James, who initially had been credited with his 38th career triple double—at least 10 points, 10 rebounds and 10 assists. James finished with 32 points, 11 rebounds and nine assists as the Cavs
LaMarcus Aldridge added 25 points and 14 rebounds for the Blazers, who have won four of their last five games and improved to 5-1 at the Moda Center. Al Jefferson scored 22 points, while Lance Stephenson had 14 points and 14 rebounds for the Hornets.
LAKERS GUARD’S DAD KILLED
THE Los Angeles Lakers have confirmed that a man shot and killed in Philadelphia over the weekend was the father of guard Wayne Ellington Jr. Police say 57-year-old Wayne Ellington was found shot in the head in the driver’s seat of a car in the Germantown section of northwest Philadelphia just after 8 p.m. local time on Sunday. The Philadelphia Inquirer reported that he was taken to Einstein Medical Center, where he was pronounced dead later that night. No arrests have been reported. Wayne Ellington Jr. said in a statement on the Lakers’ web site that he and his family are “devastated by the news of my father’s murder.” The player has been granted an indefinite leave of absence. General Manager Mitch Kupchak said players, officials and employees are saddened. Ellington was not with the Lakers on Tuesday night for their game in Memphis. Lakers coach Byron Scott said in his pregame comments that he learned of the senior Ellington’s death Sunday night after the Lakers win over Charlotte. “Driving home all I did was think about [Ellington Jr.],” Scott said. “It’s really just very sad news.” Scott said there is no timetable for the guard’s return. Ellington Jr. will be given the time to spend with his family. “When he’s ready. I’m sure he will rejoin us.” Scott recalled that Ellington Jr. was going to his car after the game when he apparently got the news about his father. The coach said other Lakers were with Ellington Jr. when Scott reached the player. “This is our livelihood, but this is still just a game,” Scott said. “This thing that’s happened to Wayne is real life. It kind of puts everything in perspective. “I think all of us, every now and then, during the game, after the game, before the game, will have Wayne on our mind,” Scott added. AP
TORONTO’S KYLE LOWRY SCORES 19 POINTS AND TERRENCE ROSS HAS 17, AS THE EASTERN CONFERENCE LEADERS THE RAPTORS NOTCH THEIR FIFTH STRAIGHT WIN AND IMPROVE TO 7-1. THE RAPTORS HAVE WON THEIR FIRST FIVE HOME GAMES OF A SEASON FOR THE FIRST TIME IN 11 YEARS.
improved to 3-3. The league routinely reviews videotape to maintain the integrity of statistics. With 3:27 left in third quarter, James was incorrectly awarded an assist when he tipped the ball to Tristan Thompson, who passed to Kyrie Irving for a lay-up. In the fourth quarter, James was given an offensive rebound that should have gone to teammate Mike Miller. League Spokesman Tim Frank said the changes have been made to
DIRK NOWITZKI becomes the highestscoring National Basketball Association player born outside of the United States. AP
the official box score. The Minnesota Timberwolves, meanwhile, will make their second attempt to play a regular-season game in Mexico City, after last year’s game with the San Antonio Spurs was canceled because of smoke inside Mexico City Arena. The Timberwolves will face the Houston Rockets on Wednesday in the same venue where a short circuit in a generator room sent fumes inside the building during warmups. NBA Mexico Director Raul Zarraga
says “stricter measures” have been taken to “prevent this from happening again.” The arena was evacuated about 45 minutes before tipoff. The $300-million glass-clad arena opened in 2012. The last regular-season NBA game in Mexico was on December 6, 1997, when the Rockets beat the Dallas Mavericks 108-106. AP
A REVIEW of the game shows LeBron James was a rebound and an assist short. AP
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taking a bite out of the big apple, without breaking the bank Good and gentle Jesus
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OOK upon us, good and gentle Jesus, as we fall on our knees in Your sight. With all our heart we pray to You, fill our heart with living faith and charity. Give us true sorrow for our sins and strengthen in us the will to live a better life. With all the love of our heart, and with sorrow for Your pains. We call to mind and reflect upon Your five wounds. And we hear within us the words concerning Yourself oh good Jesus, which Your prophet David put into Your mouth: “They have pierced my hands and my feet; they have numbered all my bones.” Oh good and gentle Jesus, let be our sufferings be for the love of You. Amen. WORD AND LIFE PLANNER AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com
Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com
Life
Thursday, November 13, 2014
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How to take a bite out of the Big Apple, without breaking the bank ➊
WALKING the High Line along Manhattan’s West Side provides a feast for the eyes, with art installations, sculptures and murals throughout the 1.45-mile elevated park. PHOTOS: COLLEEN KELLY/MINNEAPOLIS STAR TRIBUNE/MCT
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A BRONZE and gilt sculpture of Diana by Augustus Saint-Gaudens commands a glass-roofed gallery in the Metropolitan Museum of Art in New York City.
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THE Philippines’s festive booth at the World Trade Mart
B C K Star Tribune
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Y family eagerly waited for the curtain to rise on our first Broadway show. We were about to see the Tony Award-winning Newsies. Our plush red-velvet seats were on the main floor with clear views of the stage. And the price? Probably less than others in the same row paid. It was the 13th birthday of our younger daughter, a budding actress who’d pined for New York City for years. I, on the other hand, dreaded the idea of planning—and paying for—a trip to the heart of Manhattan. But this year, my husband, Jeff; our actress, Talia; our 16-year-old Anya, and I finally took the plunge, booking a six-day vacation that was heavy on the city’s free attractions, but left room for some splurges, too. With careful planning, a smattering of credit-card points, MetroCards good for unlimited rides and a sense of adventure, our family of four managed to take on Manhattan without breaking the bank. The money-crunching began with our theater tickets. I’d bought them months before we ever left Minneapolis with a discount code I found on TheaterMania. We skipped the great deals on same-day tickets people can nab at three TKTS Discount Booths around the city, because we didn’t want to waste time in line—or risk coming up empty on such an important part of the trip. Then, the day of the show, we continued to limit the damage that Broadway can do to a budget. Keeping to our splurge-and-save plan, we skipped the fancy sitdown restaurants so many attend before a show. Instead, we grabbed tasty falafel sandwiches, taking advantage of the stellar people-watching near Times Square. The bill came in at just $42. A family our size could spend nearly twice that amount on another New York City institution, the Metropolitan Museum of Art, if we paid the posted price (adults $25, children $12). Faced with cashiers and large signs, many tourists don’t realize that the prices
are merely “recommended” fees, thanks to an 1893 state law. You can pay what you want, and we did, offering up $20 for the whole family during each of two visits. Prices for Manhattan hotel rooms are notoriously high—which is why we worked so diligently to get a deal. By travel hacking to amass credit-card points, we sliced our hotel costs to $40 per night at the Holiday Inn Express, a comfortable, centrally located hotel with free, hot breakfast. (In a nutshell, travel hacking is working to accumulate miles, points or elite status to travel for free, or as cheaply as possible.) And, yes, we all stayed in one room and it was a tight fit, but we were rarely there. So what if the breakfast area was chaotic? The free breakfasts and free all-day coffee saved us at least $50 a day. The Midtown location was important, too, because it put us near two subway stops and within easy walking distance of the Empire State Building, Penn Station— and NY Pizza Suprema, where you can find some of the best slices in town for only $4 a piece. When it came to getting around the city, we went hard-core for the subway. The seven-day unlimited ride MetroCards ($30, good for buses and subway) were our tickets to everywhere and anywhere we wanted to go, saving us hundreds of dollars in transportation costs. We even used it to connect to the AirTrain ($5), which brought us to and from JFK. The NYTransit mobile app was our constant guide, and we had few missteps. By the end of the week, the whole family felt like subway experts, with the kids reading, listening to music—and averting their eyes—like natives. On the day we arrived, we barely set down our bags before jumping on the subway for a quick ride to the southern tip of Manhattan, where we caught the Staten Island Ferry. Such a good call. The weather was perfection and the views of the city skyline unmatched. As we pulled away from the dock, we sat in the back of the ferry and watched the metropolis recede. The ferry ride also offered great, free views of the Statue of Liberty. After the ferry ride, we headed to nearby ground zero. Although construction around the September 11 Memorial is still in progress and work continues near the base of One World Trade Center, the building near the site of the 9/11 attacks has risen to its full, impressive
height. We skipped the relatively pricey Memorial Museum ($24 adult, $15 youth), instead spending quiet time at nearby Saint Paul’s Chapel, which has small displays of letters, photos and memorabilia from 9/11. The chapel, where many first responders sought refuge and took breaks after the attacks, is open to the public (free, donations accepted). Some of the pews still bear the gouges made by their heavy equipment. Two other Manhattan freebies competed for highlights of the trip: walking the Brooklyn Bridge, and exploring the High Line, an unusual elevated greenway on Manhattan’s west side. For the bridge walk, we took the subway to Brooklyn so we could stroll with Manhattan in our sights. The outing provided some of the best photos from the trip and although the bridge was fairly crowded, the atmosphere was celebratory. Just remember to stay on the pedestrian side of the stripe; fast-moving bicyclists aren’t shy about their space. Walking the High Line, way up on an elevated freight rail line, provided a more relaxed experience. The 1.45-mile-long pedestrian walkway offers amazing views of sunset over the Hudson—and into the back windows of apartment dwellers. We walked it on a Sunday night, using it to connect for an evening stroll in Greenwich Village. After strolling the length of the High Line, we went in search of a coffeehouse—at nearly 9 pm on a Sunday. Alas, we discovered that bohemians abandon the coffeehouses when the sun goes down. Instead, we discovered a rather garishly lit tea house, selling, not cups of tea, but a bewildering range of loose teas and infusions. The girls were enchanted, falling down an Alice-in-Wonderland rabbit hole, spending 40 minutes just before—and slightly after—closing as a saleswoman at David’s Tea pulled tin after tin down from the seemingly endless shelves, insisting that they smell this one, that one, carefully explaining the differences. When we finally left, having purchased $10 worth of tea more out of a sense of decency than need, the key turned quietly in the door. The shopkeeper had clearly relished an audience. And we had enjoyed another great show. There was Newsies, of course. But also the drum-
line performance on the High Line, the mime in Central Park, the man playing an ancient Chinese instrument in the subway—and the city itself. We all agree that this is the best trip we’ve ever taken. For me, one of the best parts came after we returned home. My e-mail pinged with an alert that my creditcard statement was ready. I hopped online and clicked “pay now” as easily as swiping an NYC MetroCard. IF YOU GO Free attractions: ■ Walk the Brooklyn Bridge: We took the subway to Brooklyn to walk with Manhattan in our sights. It takes less than an hour, depending on crowds. ■ September 11 Memorial and Saint Paul’s Chapel: We skipped the September 11 Memorial Museum ($24 adult, $15 youth), instead spending time at the memorial and exhibits at the nearby Saint Paul’s Chapel, which first responders used as a refuge and resting place after the attacks (free; donations accepted). ■ Staten Island Ferry: Sit in back when leaving Manhattan for great views of the Statue of Liberty and city skyline. You have to get off and re-board for the return trip. ■ The High Line: Built along an unused 1.45mile section of elevated rail line on the West Side, this park is an unusual, tranquil oasis with views over the Hudson River. ■ Central Park and more: In addition to New York City’s crown jewel, we enjoyed Washington Square Park in Greenwich Village and Bryant Park near Times Square. Find free events: www.nycgovparks.org/events. Getting around: Seven-day unlimited MetroCard, ($30 per person) covers all subway and bus travel. Add a $5 AirTrain ticket to connect from JFK. (Taxis are flat rate from JFK to Manhattan, $54 plus tolls and tip). The NYTransit Mobile Web app is priceless, http:// tripplanner.mta.info/MyTrip. Also, save the subway map (PDF) to your smartphone: http://strib.mn/nycsubway. Accommodations: Holiday Inn Express Madison Square Garden: Free breakfast. Clean, small rooms. Aim for a higher floor: www. madisonsquaregardenhotel.com. ■
Visit the Philippines Year 2015 introduced at World Travel Mart in London THE Philippines joined the World Travel Mart (WTM) to promote Visit the Philippines Year (VPY) 2015, a campaign to raise the country’s international profile next year. Held at the ExCeL Exhibition Center in London, England, earlier this month, the event showcased the global travel trade industries. The Philippines booth caught the eyes of international travel professionals. The Department of Tourism (DOT), with the Tourism Promotions Board (TPB), took the opportunity to present the destination and events-focused VPY 2015 which
complements the government’s “It’s more fun in the Philippines” tourism campaign. At the booth, visitors enjoyed watching the Dinagyang Festival cultural performances by the renowned Lahing Kayumanggi Dance Troupe and Grupo Tribale disc jockey and drum beaters, songs by Filipino crooners and exhibitions by bartenders sharing cocktail mixes of homegrown liquor such as Mango Rum, Manille Calamansi Vodka, Don Papa Rum and others partnered with native Filipino food. Participants get a taste of the “fun” when they visit the country with Filipino-
flavored ice cream as contest prizes. The Philippines also hosted a Blogger Expo where travel connoisseurs shared their experiences in the country; the Mission APP@PHL trivia contest where visitors were asked about Philippine tourism; and a short program thanking the members of the international community that aided the victims of Supertyphoon Yolanda. “The World Travel Mart is clearly an event that matters a lot in terms of generating tourism business for Philippine travel industry partners and creating awareness about the
Philippines as a fun tourism destination,” said Domingo Ramon Enerio III, TPB COO. “To make an assertive presence at WTM, we launched our campaign, Visit the Philippines Year 2015. We are developing, organizing and shall be promoting a yearround calendar of events and activities that will make international and domestic visitors tour our country and truly experience that It’s more fun in the Philippines. These events consist of traditional festivities, commercial events, rural activities and special tourism projects—all integrated into the subject of
music and arts, lifestyle and entertainment, history and culture, business and investment, and adventure, sports and ecotourism,” Enerio added. At WTM, the DOT and TPB highlighted destinations specifically catering to European holiday-makers, such as Huma Island in Coron-Busuanga, Palawan, Boracay, Cebu, Bohol, Camarines Sur and Siargao. They also assisted participating establishments from the Philippines in networking with other travel professionals and gaining media mileage during the event.
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edward carey’s gothic adventure Pages BusinessMirror
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Edward Carey discusses his gothic adventure B M G | Los Angeles Times
these large, heavy-looking wooden objects, and looking at us with a great deal of disapproval. I think all the old objects that are around us are still part of lost time. They’re clues, the single clues to lives that have been. And we’re so cruel to objects! We just throw them out.
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T’S 1875, and all of London’s trash is banished to a wasteland known as “the heaps.” The Iremonger family presides over this grim realm from Heap House, a mansion itself made up of parts of other buildings. Cut off and intermarrying for generations, they have developed their own versions of English names: Moorcus, Pinalippy and Timfy. This whimsically gothic scenario is the brainchild of the English-born writer and illustrator Edward Carey. Heap House (Overlook: 406 pp.), his first foray into fiction for young readers, is part of a trilogy. Iremonger family traditions are idiosyncratic. Each baby is assigned a birth object—a hot water tap, a toast rack, a single woman’s shoe—which he or she must always keep. Young Master Clod Iremonger was born with the power to hear the birth objects announcing their own names. (His birth object is a bath plug called James Henry Hayward.) When a birth object gets lost, Clod is summoned to find it. Along the way he meets a rebellious servant girl, Lucy Pennant, and they team to solve the growing mystery in Heap House. Carey has written and illustrated two novels for adults, Observatory Mansions and Alva and Irva: The Twins Who Saved a City. He spoke by phone from Austin, Texas, where he lives with his wife (writer Elizabeth McCracken) and their two young children.
The young protagonists of Heap House suffer a lot in the course of their adventure. Did you experience great adversity in childhood? Not really. I had a very happy childhood. But I was sent off to boarding school at quite a young age, this massive Victorian house that was suffocated in ivy. I think there is a part of that school in Heap House. One of my brothers said to me, “You do realize the name of the cooks in Heap House, Groom, was the name of the cooks at our school.” I hadn’t even realized I’d done that. What inspired you to turn to children’s fiction, after publishing two novels for adults? Part of the joy of writing for kids is that you have to have a real adventure story. You can get really involved in the fantastic in a way that perhaps you can’t so much in adult fiction. In this trilogy, objects actually speak and sometimes have lives of their own. That was something I’ve always longed to do.
It must have been fun to assign the characters their birth objects. It was tremendous fun. I knew right from the start that Clod would have a plug. They’re not very highly regarded, but they’re enormously useful. And I knew that Pinalippy, whom Clod is assigned to marry, would have a doily, because I despise doilies. Was it freeing to you as a writer to set the story in Victorian London rather than today? Totally. I inhaled Dickens as a kid, and I’ve always been fascinated by the Victorians. So many ridiculous objects they had! They created things like mustache cups, so you wouldn’t wet your mustache when you were drinking tea. And eyebrow combs. What’s happened to all the eyebrow combs? Marvelous things.
The Iremongers are both enthralled and enslaved by their possessions. The relationship seems to reflect the magical thinking of childhood, but more than that it’s a comment on the materialism of our species and its consequences for our planet. Do you have a complicated relationship to objects? Yes, Elizabeth and I collect all sorts of things. We shouldn’t be allowed out of the house because we always come back with something else. But in the book I wanted to explore how, as a child, your first companions are your toys, and you give them voices and you animate them. And you convince yourself—and that’s part of the magic of childhood—that these things are actually alive. Then, when people die, all their objects are left behind them, orphaned. Recently my great aunt died in Wales at the age of 109. Some of her objects came over here to Texas, and it was if bits of her were somehow now here,
Heap House has been described as Dickensian and compared to the work of Lemony Snicket. Dickens was not specifically writing for children; Lemony Snicket is. What do you think is the difference between adult fiction and children’s fiction? Or is there one? I find it frustrating sometimes that everything needs to be pigeonholed. I hope that Heap House is as much for adults as for kids. Some of the writers I really love— Neil Gaiman, Robert Louis Stevenson, Poe—are read by all ages. But with a children’s book, one of the things you absolutely have to have is a plot that moves. I had a huge section about an aunt called Moyball, who had a load of seagulls in her room. It had nothing to do with the plot whatsoever. As much as I loved Moyball and her seagulls, my editor said, “But, you know, what would happen if you took Moyball out?” It was a revelation. I was like, “Yeah. Sorry, Moyball.” Do you think your work is part of a trend toward darkness in children’s literature? I hope so! Well, I didn’t mean Heap House to be as dark as it turned out to be, but I wasn’t going to stop it from being dark. Fairy tales, before they were sanitized,
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AUTHOR Edward Carey and the cover of Heap House.
PHOTO: TOM LANGDON/ OVERLOOK
were very dark, and kids love that. Coraline by Neil Gaiman feels like Beckett for kids. I think there’s plenty of room for that. And I think there’s a danger of being too patronizing to children, having things too sanitized. How do the illustrations figure into your creative process? The whole trilogy started with a drawing of Clod.... I was doodling away, and I drew this really unhappylooking, ill-faced child, with a parting and pink circles under his eyes, in an ill-fitting dinner jacket.... And I wondered, “Well, who are you?” Do you have an ideal reader in mind? Somebody who might be sort of picking up objects on the side of the road and caring for them. At readings, I give out birth objects. Like a pen nib, but it will have a label next to it with a person’s name. And I watch the children holding these objects in the palms of their hands as if they were ducklings. Has becoming a father changed you as a writer? It’s maybe a difference of compassion. Before, I’d be quite willing to dispense with my characters, and now I don’t do it with as much glee. I’m slightly more careful. That doesn’t mean I don’t dispatch most of them, but I do it with maybe a little more tenderness. ■
Carol Burnett is working on a book about her TV show B C K Los Angeles Times COMEDIAN Carol Burnett is working on a book about her television show, she told Rosie O’Donnell before an audience at the 92nd Street Y in New York. The Wall Street Journal reports that Burnett “is writing liner notes about various sketches she performed with cast members” on the show. The Carol Burnett Show ran on CBS from 1967 to 1978. The variety show featured Burnett and a troupe of fellow players: Tim Conway, Harvey Korman, Vicki Lawrence and Lyle Waggoner. The sketches were comedic, often featuring stagy costumes and sometimes broke into song. At the end of many episodes, Burnett
THIS WEEK’S
FROM PUBLISHERS WEEKLY
CAROL BURNETT is working on a book about her television show, she said in an interview this week. AP
HERE are the best sellers for the week that ended on November 2, compiled from data from independent and chain bookstores, book wholesalers and independent distributors nationwide, powered by Nielsen BookScan 2014, The Nielsen Co. Reprinted from Publishers Weekly, published by PWxyz Llc. HARDCOVER FICTION 1. Gray Mountain, John Grisham, Doubleday 2. The World of Ice & Fire, George R.R. Martin, Bantam 3. The Slow Regard of Silent Things, Patrick Rothfuss, DAW 4. Prince Lestat, Anne Rice, Knopf 5. Havana Storm, Cussler/Cussler, Putnam 6. Pegasus, Danielle Steel, Delacorte 7. Leaving Time, Jodi Picoult, Ballantine 8. Edge of Eternity, Ken Follett, Dutton 9. The Handsome Man’s Deluxe Café, Alexander McCall Smith, Pantheon
uslim rebels will ensure economic gains from this year’s peace agreement are shared evenly to sustain the truce and alleviate suffering in the country’s poorest region, seen to play a major role in the administration’s pursuit of an 8.5-percent gross domestic product (GDP) growth goal in 2016.
“Everyone should feel the fruits of peace,” Mohammad Yacob, 44, executive director of the Bangsamoro Development Agency, said in a November 10 interview in Manila. “We don’t want people to feel they are still oppressed. The only solution to a lasting peace is if you involve communities, make them self-sufficient.” President Aquino is seeking to create an autonomous political region called Bangsamoro in Mindanao, after signing a peace accord with Muslim rebels in March to end a four-decade insurgency. Mindanao is the least-developed island in the Philippines, as the Muslim rebels, bandits and private armies deterred investors from tapping resources, including about $312 billion in mineral deposits.
EDWARD CAREY DISCUSSES HIS GOTHIC ADVENTURE »D4
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INSIDE
ORONTO—Toronto erased an 11-point deficit in the fourth quarter and overran Orlando, 104-100, on Tuesday, notching their ninthconsecutive win over the Magic and opening a two-game lead atop the National Basketball Association (NBA) Atlantic Division. Among other games, Dallas’s Dirk Nowitzki set a career scoring record as he helped the Mavericks come back from an even bigger deficit to beat Sacramento, and Memphis’s underperforming reserves lifted to help the Grizzlies beat the Los Angeles Lakers. Toronto’s Kyle Lowry scored 19 points and Terrence Ross had 17 as the Eastern Conference leaders won their fifth-straight game and improved to 7-1. The Raptors have won their first five home games of a season for the first time in 11 years. Evan Fournier scored 24 for Orlando. Dallas’s Dirk Nowitzki became the highest-scoring NBA player born outside of the United States, helping the Mavericks rally from 24 points down to beat Sacramento, 106-98. Nowitzki passed Hakeem Olajuwon for ninth place on the all-time scoring list. The 7-foot German finished with 23 for 26,953 career points, seven more than the Nigerian-born former star of the Houston Rockets. The German hit a jump shot just inside the three-point line to get to 26,947 points, one ahead of the Nigerian-born former star of the Houston Rockets. Olajuwon, who spent 17 years in Houston, retired in 2002 after one season with Toronto. Elvin Hayes is the next on the list at No. 8 with 27,313 points. The 36-year-old Nowitzki, in his 17th season with the Mavericks, is second among active players behind Kobe Bryant, who is fourth all-time. Monta Ellis scored 10 of his 16 points in the third quarter when the Mavericks snatched back the lead. They have won 21-straight regular-season home games against Sacramento. Rudy Gay scored 26 to lead the Kings. Memphis extended its home-court dominance with a 107-102 win over the Lakers. Mike Conley scored 23 points for the Grizzlies, who have won 17-straight regular-season home games. Backup guard Beno Udrih had 16 points for Memphis. Courtney Lee scored 15 as six Grizzlies finished in double figures, including Zach Randolph with 11 points and 10 rebounds. Bryant led the Lakers (1-6) with 28 points, but shot 10 of 26 from the field and surpassed Boston Celtics great John Havlicek for the most missed field goals in an NBA career. Reserve guard Wayne Ellington was not with the Lakers after his father was killed in Philadelphia on Sunday night. Memphis has won 17-straight regular-season home games since a February loss to Dallas. Milwaukee held off a late rally by Oklahoma City to beat the Thunder, 85-78, with OJ Mayo scoring 19 points for the Bucks. Reggie Jackson had 29 points, nine above his season average, for Oklahoma City. Serge Ibaka added 14 as the Thunder fell to 0-5 on the road. The Bucks led by five after three quarters and extended their lead to as much as 11 in the fourth. Oklahoma City cut the lead to four on two free throws by Ibaka with 31 seconds left but got no closer. Portland came back from a 23-point deficit in the first half to beat Charlotte, 102-100, thanks chiefly to 29 points from Damian Lillard. San Antonio beat Golden State, 113-100, with Tony Parker contributing 28 points and seven assists and Kawhi Leonard scoring 19 as the Spurs. The defending NBA champions played their aging Big Three—Parker, Manu Ginobili and Tim Duncan—on consecutive nights to pull off San Antonio’s most difficult back-to-back victories. The Spurs rallied past the Clippers, 89-85, on Monday in Los Angeles before cooling off one of the league’s hottest teams in Oakland.cKlay Thompson scored 29 points, and Harrison Barnes had 22 points and eight rebounds for the Warriors, who have lost two straight after a 5-0 start under new coach Steve Kerr. Damian Lillard had 29 points and the Trail Blazers trailed by as many as 23 points in the first half before rallying in the fourth quarter to beat the Hornets. Charlotte’s Gary Neal made a lay-up at the final buzzer that would have sent the game into overtime, but the refs reversed the call after a review.
A broader look at today’s business
would take the stage in street clothes and take questions from the studio audience— and let out a Tarzan yell—bringing her closer to those watching on TV. Burnett, 81, is the recipient of multiple Emmy Awards, Golden Globes, a Tony, the Kennedy Center Honor and the Mark Twain Prize for American Humor. She is the author of the memoirs This Time Together, One More Time and Carrie and Me: A Mother-Daughter Love Story. Although the conversation with Burnett and O’Donnell is not currently online, many other 92nd Street Y interviews are available free, including George R.R. Martin with Laura Miller, Dick Cavett with Alec Baldwin, and, in separate appearances, Supreme Court Justices Ruth Bader Ginsburg and Stephen Breyer.
10. Burn, Patterson/Ledwidge, Little, Brown HARDCOVER NONFICTION 1. Make It Ahead, Ina Garten, Clarkson Potter 2. Killing Patton, O’Reilly/Dugard, Henry Hold 3. Yes Please, Amy Poehler, HarperCollins/Dey Street 4. The Motivation Manifesto, Brendon Burchard, Hay House 5. Dreamers and Deceivers, Glenn Beck, S&S/Threshold 6. Not That Kind of Girl, Lena Dunham, Random House 7. Jeter Unfiltered, Derek Jeter, S&S/ Gallery/Jeter 8. Guinness World Records 2015, Guinness World Records, Guinness World Records 9. You Can, You Will, Joel Osteen, FaithWords ($24) 10. Agents of the Apocalypse, David Jeremiah. Tyndale ($24.99). MCT
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U.S. President Barack Obama (right) smiles after a group of children waved flags and flowers to cheer him during a welcome ceremony with Chinese President Xi Jinping at the Great Hall of the People in Beijing, China, on Wednesday. When Xi took the reins of a booming China two years ago, Obama saw an opportunity to remake America’s relationship with the Asian power. But even after Obama’s unusually robust efforts to forge personal ties with Xi, the two leaders are meeting in Beijing amid significant tensions, both old and new. AP/Andy Wong
BIR clarifies ruling OBAMA, XI HIGHLIGHT on preferential tax AREAS OF AGREEMENT rates under treaties
Aquino stands pat on Calax deal rebid
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resident Aquino on Tuesday reaffirmed his earlier “inclination” to rebid the stalled P35.42billion Cavite-Laguna Expressway (Calax) deal, despite serious misgivings aired by local and foreign trade groups after his pronouncement. “We are obligated to get the best deal for our people,” Mr. Aquino told reporters in an interview at the Philippine Embassy, after attending the Asia-Pacific Economic Cooperation (Apec) forum in Beijing. President Aquino cited as significant the P8.4-billion difference between the winning bid of P11.65 billion submitted by Team Orion of the Ayala-Aboitiz group and disqualified bidder San Miguel Corp.-Optimal Infrastructure Development Inc.’s (SMC-OIDI) P20.1-billion premium offer. He said the amount could be used to fund the construction of government infrastructure, such as socialized housing. Asked about the negative reactions from the concerned trade
By David Cagahastian
he Bureau of Internal Revenue (BIR) has given assurance that the Philippines will honor its tax-treaty commitments granting preferential tax rates to foreign corporations, but clarified that taxpayers availing themselves of the preferential treatment under the treaties must secure a BIR ruling confirming the transactions are, indeed, subject to preferential tax rates. At the International Tax Forum being hosted by the Philippines this week, the BIR said the issue on the self-executory nature of tax treaties entered into by the Philippines has already been settled by the Supreme Court, which said taxpayers availing themselves of preferential tax rates under tax treaties do not have to secure a BIR ruling prior to the transaction as a requirement for the preferential tax rate to apply. “According to the Supreme Court ruling, they don’t have to secure a BIR ruling before the transaction, but they still have to apply for a BIR ruling after the transaction,” said BIR Deputy Commissioner for Legal and Inspection Group Estela Sales at the sidelines of the forum. The discussions in Wednesday’s forum focused on the negotiation and enforcement of tax treaties in light of the coming economic integration of the 10 member-countries of the Asean by end-2015. Under the tax treaties entered into by the Philippines, nonresident aliens and foreign corporations are granted Continued on A8
PESO exchange rates n US 44.9120
P
resident Barack Obama and Chinese President Xi Jinping sought to play down points of tension between their two nations on Wednesday, unveiling a flurry of agreements on climate change, military cooperation and trade, while casting their own burgeoning relationship as candid and productive. Yet, areas of discord between the world’s largest economies still bubbled to the surface. Obama pressed Xi on human rights and the pro-democracy protests in Hong Kong, while Xi repeatedly reminded his American guest that his nation wants to be seen as an equal to the US. “I believe that President Xi and I have a common understanding on how the relationship between our two countries should move forward,” Obama said, as he closed a three-day trip to China. “Where we have disagreements, we will be candid about our intentions, and we will work to narrow those differences where possible.” The two leaders addressed reporters in a rare joint news conference for the Chinese leader, whose government keeps tight control on the media in the country. Xi first appeared to ignore a question posed to him from an American reporter, who asked about restrictions placed on US news organizations operating in the country, then suggested it was unfavorable coverage that had led to the crackdowns. Obama has made significant personal investments in his relationship with Xi, including a two-day summit at a California estate last year. US officials have seen Xi as a potentially new kind of Chinese leader, with closer ties to the US than Continued on A8
By Butch Fernandez
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AQUINO: “We are obligated to get the best deal for our people.”
groups that a rebidding could dampen investors confidence in future public-private partnerships projects, Mr. Aquino said he was willing to take the criticisms, rather than be blamed by the people. “Mamimili na ako kung sino ang magagalit sa akin. Siguro maganda nang magalit sila, kaysa taongbayan,” President Aquino said, acknowledging that business leaders have aired opposition to rebid the Calax toll-road project, even as both the Ayala-Aboitiz group and the SMC-OIDI gave separate assurances they would not go to See “Calax,” A2
n japan 0.3889 n UK 71.5089 n HK 5.7920 n CHINA 7.3323 n singapore 34.8047 n australia 38.9658 n EU 56.0367 n SAUDI arabia 11.9702 Source: BSP (12
November 2014)
News BusinessMirror
Thursday, November 13, 2014
A2
Investors await Bangsamoro law Continued from A1
Now there is a plan to set up cooperatives in each village in Bangsamoro, which means “Muslim nation” in the local language, to help evaluate investment proposals and manage government support, Yacob said. Companies, including Malaysia’s Felda Global Ventures Holdings Bhd., Del Monte Pacific Ltd. and a group of businessmen from Singapore, have already approached officials of the Moro Islamic Liberation Front, he said. Yacob’s agency manages more than P500 million ($11 million) in projects backed by aid agencies.
Least developed
The poverty rate in the Autonomous Region in Muslim Mindanao, which was created during a previous attempt at peace, was 56 percent in 2012, the highest in the country and more than twice the national average. Economic growth averaged 2.4 percent from 2012 to 2013, compared with 7 percent for the country. There is limited access to basic needs. About 26 percent of children in the autonomous region are in high school, compared with 65 percent in the nation, according to estimates by
the Bangsamoro Development Agency. Only a fifth of its households have toilets and about a third have access to clean water. Mindanao can attract as much as $1 billion in investment after an agreement is reached, the government has estimated. Development of the region, which accounted for almost 15 percent of Philippine output in 2013, is crucial for Mr. Aquino’s goal of as much as 8.5-percent annual GDP growth by 2016. For these targets to be met “there should be equal opportunities for all stakeholders, especially for employment,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila. “Everyone must get involved so expectations are addressed. The local government must also strike a balance because too much regulation can turn off investors.”
‘Near instant’
The Bangsamoro bill being debated by lawmakers states that the Moro Islamic rebels must abandon their pursuit of a separate state in return for more power, revenue and territory. After the bill is passed, a local referendum will determine which others provinces will join the expanded autonomous region. About P63 billion has been budgeted for
TODAY’S WEATHER
NOVEMBER 13, 2014 | THURSDAY
Tail-end of a cold front is the extended part of the boundary, which happens when the cold air and warm air meet. This may bring rainfall and cloudiness over affected areas.
TAIL-END OF A COLD FRONT AFFECTING THE EASTERN SECTION OF SOUTHERN LUZON. NORTHEAST MONSOON AFFECTING NORTHERN AND CENTRAL LUZON.
Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rains and showers.
Calax. . . continued from a1
public works in Mindanao next year, compared with about P100 billion spent from 2011 to 2014, Mr. Aquino said last week during a forum on Bangsamoro. The government is also offering cash for work, study grants, health insurance and vocational training, he said. “The early impact of our efforts at peace, stability and fostering a good business climate has been near instant,” Mr. Aquino said. Investment in the autonomous region rose to P3.37 billion in January to September, compared with P1.46 billion for all of 2013, with companies in energy, coconut products and palm-oil planning to expand in Mindanao, he said. Bangsamoro needs about P220 billion from 2015 to 2016 to build roads and schools, and for livelihood projects, Yacob said. About half the funding will come from the government, while the rest may come from donors, including the World Bank and the Japan International Cooperation Agency, he said. “There is a lot of expectations right now among the Bangsamoro and we have to manage those expectations,” Yacob said. “We are advocating for a just peace, a just economy. We want progress that trickles down to communities and which benefits everyone.” BloombergNews
3-DAY EXTENDED FORECAST
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NOV 14
court if Mr. Aquino decides to go ahead with a rebid. But while worried trade groups, including the Makati Business Club and the Joint Foreign Chambers, voiced concerns over the backlash of the rebidding, the Philippine Chamber of Commerce and Industry opted to support Mr. Aquino’s inclination to rebid Calax, saying this would “maximize economic benefits” the state would reap from the toll-road project, given the estimated P8.45 billion it would gain from a fresh auction. Other business leaders also expressed opposition to the Calax rebid-
Vista Land. . . continued from a8
next year. We don’t have guidance but it should increase,” Manuel Paolo Villar, the company’s president and CEO. “I think the fundamentals of the Philippines is still strong; the growth is still strong. Some of the infrastructure developments have gained momentum. A lot of macroeconomic factors have been NOV 7 And I think there is still room to good.
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Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).
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grow,” he said. For the first nine months of the year, Vista Land’s real-estate revenues, computed based on the percentage of completion, reached P16.7 billion. For the year the company is averaging about P13 billion in sales every quarter and most of the company’s sales came from its core house-and-lot products, both in Metro 7 Manila and in NOV the provincial areas.
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ding plan, warning this could lead to higher cost of the project, and “consequently higher toll.” Despite the presidential backing, Malacañang officials earlier admitted to the BusinessMirror that the Department of Public Works and Highways is yet to fix a date for the rebidding. Team Orion urged President Aquino to carefully consider the implications of his decision. “We hope that a decision will be made soon, and remain hopeful that the President will carefully consider the DPWH decision to award,” Ayala Corp. Managing Director John Eric Francia said. With Jae Denise Adolfo
@PanahonTV
Economy
A4 Thursday, November 13, 2014 • Editors: Vittorio V. Vitug and Max V. de Leon
BusinessMirror
news@businessmirror.com.ph
Palace ally insists on emergency powers for Aquino
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By Lenie Lectura
IBERAL Party Rep. Reynaldo Umali of Oriental Mindoro, chairman of the House energy committee, on Wednesday stressed the importance of meeting the target deadline for the grant of emergency powers to President Aquino in order to avert a power crisis next year. Umali said the November goal to grant emergency powers to the President would give enough room for the Department of Energy (DOE) to provide guidelines for the prospective Interruptible Load Program (ILP) participants. “We are giving a deadline to prospective [ILP] participants to register by December 1 to give time for the
DOE to issue implementing rules. We need to pass it well ahead of time, maybe by third or fourth week of November,” Umali said. The House of Representatives is now expecting less resistance to moves granting Mr. Aquino emergency powers to address next year’s power shortage now that a new scheme would save the govern-
ment about P6 billion to lease new power generators. Umali said the implementation of ILP is estimated to cost the government only about P80 million a month instead of the P6 billion needed to lease generators as proposed by the DOE to head off crippling power shortage in the summer months of 2015. “This is a Solomonic solution to the problem we are facing. We are going to stave off debilitating blackouts without burdening the alreadysuffering power consumers with high power cost,” Umali said, adding that emergency power will also allow the suspension of required permits for additional generating capacity that can be available by March 2015. With such huge savings, Umali expects wider support and less resistance from Congress, business groups and other sectors in the passage of measures granting the President emergency powers. The ILP scheme will require big power users with large generating
capacities to use their own power and even sell their excess power to the grid and will be compensated for it. Umali said the amount needed to compensate ILP participants might be lower than the P200 million that was earlier estimated by the Manila Electric Co. based on three-to-five hour usage at 7.5 centavos per kilowatt-hour. More than this, he said both the government and consumers will save billions from the proposed lease of modular generator sets that made the original emergency power proposal so unpopular. He added that the government would have even spent up to P10 billion with the proposed purchase of power generators to address the expected power shortage. “The ILP will drastically cut government costs to augment the power shortage next year to only about P80 million, against the previously estimated P6 billion per 300-megawatt [MW] lease of generators,” Umali said. Umali, however, said that “the
success of the ILP program rests on the President’s getting special powers to immediately decree a law that would give tax breaks and other financial incentives to big power users enrolling under the ILP.” “At present we have a total of 911 megawatts from ILP alone, against a shortfall of 700 MW that includes 647 MW of contingency reserve. Aside from the base load generated from ILP participants, we also have back-up power of about 264 MW from plants for interconnection and 640 MW from plants for immediate rehabilitation. All in all, we have a running total of about 1,815 MW, not to mention the megawatt savings from energy conservation of about 1,300 MW,” Umali said. The President made the request for the authority to contract additional capacity on September 12, following the announcement of the DOE of a power shortage from March to June 2015, invoking the power crisis provision of the Electrical Power Industry Reform Act of 2001.
Firm to build 11 power plants worth P459M in Palawan
d.o.l.e. to employers: pay employees 13th month before christmas day
Labor Secretary Rosalinda Baldoz reminded private employers on Wednesday to pay their employees’ 13th-month pay on or before Christmas Day as required by the labor code. The labor chief signed on Tuesday a labor advisory to private employers across the country explaining their lawful duty to pay the 13th-month pay. Estrella Torres
local exporters set presentation of export plan to malacañang Local exporters will seek to get President Aquino’s approval of their proposed three-year Philippine Export Development Plan during the annual National Exporters Week in the first week of December. In a text message, Philippine Exporters Confederation President Sergio R. Ortiz-Luis Jr. said the yearly exporters’ week may be the venue where they can present the threeyear plan to Mr. Aquino for his consideration. Catherine N. Pillas
PCCI HOSTS ISRAELI TRADE MISSION NEXT WEEK
THE Philippine Chamber of Commerce and Industry (PCCI), the country's largest business organization, will be hosting an Israeli economic and trade mission next week interested to do business in the Philippines. PCCI President Alfredo M. Yao said the mission will be headed by Doron Hemo of the Israel Ministry of Economy accompanied by Gilad Peled, director of the water, environment and agrotechnology department of the Israel Export and International Cooperation Institute. Israel Ambassador Effie Ben Matityau will also be present. Companies in the delegation are Israel Export and International Cooperation Institute, Afimilk, A.R.I. Flow Control Accessories, Ooval Valve, I.D.E., AgroTop Ltd., TopGreenhouse, Eshet Eilon and Netafim. Catherine N. Pillas
A
QA Global Power Inc. (AGPI), a local firm engaged in construction and power generation, has lined up for construction 11 hydroelectric power plants in Palawan to meet the rising power in the island province brought about by booming tourism in the island province. As tourism further booms in the Palawan island, energy demand is expected to follow and AGPI steps in to help match it with supply, AGPI said. ”AGPI President Miguelito Alberto F. Achurra stated that since Palawan is one of the most visited tourist destinations in the country, the power supply must complement its needs so as to sustain the rising tourism industry in the city and the province,” AGPI said in a news statement released on Wednesday. The Energy department awarded AGPI 11 Hydropower service contracts estimated to contribute 131 megawatts (MW), all in the Palawan area. AGPI specified the service contracts as the 12-MW hydroelectric power (HEP) in Marangas River in Bataraza; the 12-MW HEP in Sologon River at Brook’s Point; the 8-MW HEP in Busuanga River 1; the 20-MW HEP Illian River Kaliwa in Dumaran; 12-MW Ilian River Kanan in Dumaran; the 8-MW HEP Estrella River in Narra; the 12-MW HEP in Bato-bato River Kaliwa in Narra; the 10-MW HEP in Malasgao Kaliwa in Narra; the 12-MW HEP Inaguan River in Puerto Princesa City; the 10-MW HEP in Culasian River in Rizal; and the 15-MW HEP Barabakan River 1 in Roxas. AGPI said that the investment cost per MW amounted to P3.5 million. Thus, AGPI’s total power investments in Palawan costs P458.5 million. However, it said that the projects were still in the predevelopment stage. The stage may take two years, by the least, and will be the basis whether each project will push through or not. AGPI added that it will help Palawenos reach their dreams of a sustainable future through green or renewable energy. Achurra said the strong support of the people for environmentalism and the protection of their natural resources were already enough to conclude that renewable energy would be a viable power solution for Palawan’s energy needs. Previously, the island’s residents have been vocal, through mass-protests, of their dislike of generating power from coal. On the other hand, as of 2008, the National Power Corp., which has a mandate to provide power to off-grid areas, ensures power supply to the island from its 14 power plants. PNA
briefs
THE steel sculpture called “Layag Islas,” including the rotunda called Circulo del Mundo, built at a cost of P390 million would be abolished to give way to the ongoing Ninoy Aquino International Airport skyway project construction to ease traffic gridlock in the area. Recto Mercene
P390-M Circulo del Mundo in Pasay City may have to be demolished to give way to Naia skyway project By Recto Mercene
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irculo del Mundo, a womblike steel sculpture dominating the roundabout adjacent to the Ninoy Aquino International Airport (Naia) Terminal 3 will be demolished to give way to the ongoing construction of an elevated skyway. Built at an estimated P390 million, the sculpture is a joint undertaking
of the Metropolitan Manila Development Authority and the Manila International Airport Authority (Miaa). Originally called “Layag Islas,” it was designed to pay tribute to a current reality to the Filipinos that to leave the country, whether for career or financial advancement, may mean the dimunition of one’s memories of the culture that he or she has been accustomed to.
“To enter the structure is to simulate the overwhelming feeling of coming home. To be surrounded by one’s immediate description of comfort,” according to the designers. “Circulo del Mundo will be demolished,” says Miaa General Manager Jose Angel Honrado at a news conference in his office, saying that building it must have been the best decision arrived at in 1998.
Nine groups express interest to bid for LRT 2’s O&M contract By Lorenz S. Marasigan
T
HE Public-Private Partnership (PPP) Center confirmed on late Tuesday that only nine groups secured prequalification documents for the contract to operate and maintain the Light Rail Transit (LRT) Line 2. In a statement, the government agency named the prospective investors as the Light Rail Manila Consortium of Metro Pacific Investments Corp. and Ayala Corp., San Miguel Corp., GT Capital Holdings Inc., Marubeni Corp., D.M. Consunji Inc., RATP Development SA. APT Global Inc., Spanish firm Globalvia Inversiones S.A.U. and Aboitiz Equity Ventures Inc. Earlier the PPP Center said 12 companies are interested in the deal, but it was not clear if all of them bought prequalification documents. The deadline for submission of prequalification documents for the project is set on December 15. It was rescheduled from November 20 to give prospective bidders ample time to prepare their qualification documents.
The key infrastructure project aims to infuse private-sector efficiencies into the operations of the LRT 2 to provide better service levels to the riding public. An indicative timeline showed that the bid submission date for the deal is set in May or June 2015. The issuance of the notice of award will be a month after, hence, the signing of the concession agreement between the government and the winning concessionaire will be scheduled by August or September next year. The private sector may start operating the railway line east of Metro Manila by second half of 2016, the document showed. The winning bidder will take over the operations and maintenance of all 11 stations of the existing line, as well as the 4.19-kilometer LRT 2 Masinag Extension, for about 10 to 15 years. Construction of the P9.7-billion Masinag Extension will start by January next year. It will take the government about a year and a half to fully complete the construction of the railway extension. It will be fully operational
by that same time frame. When constructed, the new facility will add 4.14 km to the existing line. Two additional stations will be built—the Emerald Station in front of Robinsons Place Metro East in Cainta Rizal; and the Masinag Station at the Masinag Junction in Antipolo City. It will serve an additional 130,000 train commuters from the current number of 240,000. The 13.8-km-long LRT 2 traverses the cities of Manila, San Juan, Quezon, Marikina and Pasig. The operations and maintenance contract of the train system is one of the six key infrastructure contracts currently under procurement. Other projects are the P6.5-billion Integrated Transport System-South and Southwest Terminal Projects; the P24.4-billion Bulacan Bulk Water Supply Project; the P122.8-billion Laguna Lakeshore Expressway Dike Project; and the P19-billion New Centennial Water Source-Kaliwa Dam Project. Since the infrastructure program’s inception in 2010, the government has awarded eight contracts so far.
bill outlaws labor ‘contractualization’ A measure prohibiting the “contractualization” of labor being employed by local and foreign-owned companies in the country has been filed in the House of Representatives. House Bill 5140, authored by Rep. Fernando L. Hicap of Anakpawis, said that any stipulation in any written or oral contract of employment for a definite or fixed period designed subvert the provision of the proposed act shall be declare null and void. It said a probationary employment shall not exceed six months from the first day of service for all workers regardless of the nature of employment. The bill imposes a fine of P500,000 and imprisonment of not more than two years to violators. If a corporation, trust, firm, partnership or association commits the offense, the penalty shall be imposed upon the guilty officers. Jovee Marie N. dela Cruz
jcci delegation sets february visit The Japan Chamber of Commerce and Industry (JCCI) will be sending a large delegation of high-ranking executives to the Philippines in February next year to boost the bilateral economic ties with their local counterparts. “The Philippines maintained rapid economic growth for a number of years now. JCCI will send an economic mission to the Philippines in order to facilitate bilateral economic relations and to support the globalization of Japanese small and medium enterprises,” JCCI International Division Head Takashi Akagi said in a recent meeting with Trade Undersecretary Ponciano C. Manalo Jr. in Tokyo, Japan. About a a hundred JCCI membercompanies are expected to join the business mission to the Philippines, according to the Department of Trade and Industry, the largest delegation gathered yet by the JCCI for the Philippines. Catherine N. Pillas
Opinion BusinessMirror
A6 Thursday, November 13, 2014
Editor: Alvin I. Dacanay
editorial
Asia-Pacific dream could turn into a nightmare
I
T would do the Asia-Pacific region good to remember that China’s jockeying for a position in the economic arena has all the trimmings of subterfuge. Today China stands as the largest economy in the world after the United States. Its influence in the region may be vast, but it’s nothing compared to America’s.
What China wants is to become the region’s prime business adventurer in order to increase its influence. The recent Asia-Pacific Economic Cooperation (Apec) summit was just a first step to achieve its goal—an “Asia-Pacific dream” spearheaded by China. But for China to stand at the forefront of such a dream, which involves multilateral business ventures with its Asian neighbors, calls into question its real motives. One sign of its allegedly skewed intentions is the recent creation of a regional development bank, the Asian Infrastructure Investment Bank, which, according to the US, is a mere copy of the World Bank. Beijing has also raised the need for a security cooperation structure that puts China at the helm. The problem with such a structure is that it puts most countries, especially Western ones, at a disadvantage by being the “odd men out.” Its claims of free trade seem to bolster China’s standing among Asian countries. However, some experts are cautious. China’s “open door” policy is not as open as the country wants it to appear. The best example of this is its sudden switch of gears in the use of socialnetworking sites, such as Facebook and Twitter. China has been known to block these sites. But inside the media center, it has allowed the media to access even YouTube. Disputes over islands in the West Philippine Sea (South China Sea) raised doubts about China’s “benevolent” stance at the moment. Although all those involved, including the Philippines and Japan, want peace, there are qualms as to the extent of China’s “pulling back,” all because of the Apec summit. The Asia-Pacific dream of an open-door, free-trade policy among Asia-Pacific economies cannot be run by China alone. Although China is an economic force to be reckoned with, nothing of what it does in its own country will be accepted unless it reforms from within. The unity on which the dream must stand requires everyone’s collective effort. The idea of economic cooperation must never infringe on the sovereignty of nations. Thus, no country must lead it.
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America’s future grows dimmer John Mangun
OUTSIDE THE BOX
I
T’S probably understandable that the Philippines has the highest favorable view of the United States in the world. Last year a global survey conducted by Pew Research showed that 85 percent of Filipinos like the US, compared with only 69 percent of Japanese and 66 percent of Australians.
When asked how much does the US considers the Philippines’s interests, Filipinos responded “great deal/ fair amount” 85 percent of the time, much higher than Japan’s 38 percent and Australia’s 28 percent. With so many Filipinos in America and the long history that country shares with the Philippines, these numbers are not surprising. But what is surprising is how often there seems to be a lack of knowledge about the US economic situation. For many Filipinos, and not just in the lower socioeconomic groups, the US is still the shining economic city on the hill. Perhaps, it has to do with the fact that many Filipinos working in the US on a temporary basis are in industries like health care and education, which have not borne the brunt of the economic problems of the last few years. But in conversations with many people, there is a disconnect
Breaching the wall Ariel Nepomuceno
DECISION TIME
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between perception and reality. US economist Arthur Okun created what he called the “Misery Index” by adding the unemployment rate and the inflation rate, assuming that these two factors create the most economic misery for the average person. Another economist, Steve H. Hanke, expanded this index to include interest rates and plugged in year-on-year economic growth. He then applied his index globally. In 2013 Hanke’s enhanced misery index showed that Venezuela had the worst score—79.4—with consumer prices contributing the most pain. Indonesia—which was ranked 30th—had a score of 21.6, with high interest rates named as the major contributing factor. The Philippines ranked 67th with a score of 11.7, and our biggest problem is unemployment. The US was ranked slightly better—71st—and earned a score of 11; unemployment
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STRONGER relationship with China would benefit the Philippines. We have to breach the wall that divides us from our giant neighbor. To achieve this, we must first fully understand what stands between us and them. Only then can we slowly progress in building an alliance that will serve the best interest of our country.
Fear of offending America
THE biggest hindrance we face in establishing closer ties with China is our fear of offending the United States, which has been our most important ally for many decades. Our history has shown a long series of glorious events that consistently prove that the Philippines and the US are the best of friends, both in peaceful times and in tumultuous periods, like World War II. When we were confronted with economic crises, like the 1997 Asian crisis that saw businesses collapsing and currencies falling, the US government readily extended their assistance to our beleaguered economy. Many of our decision-makers would not risk being called disloyal to our great, longtime partner. It is commonly believed that the US can influence the political direction of our country in many
ways. Electoral victories or defeats are perceived to be still managed by some clandestine US operations. Thus, it is considered wise to stay on the safe side of the political terrain where the American flag is hoisted. Consciously or not, many of our economic, business and government leaders who studied in the best institutions in the West would understandably reach their decisions within the paradigm that would naturally—or, perhaps, emotionally—favor preserving our relationship with the US. We cannot be blamed for this attitude—or, as some may call it, bias. That’s because, in many ways, we have benefited from the American way of life and from the democratic values we share with the US. Our comfort zone lies with the US; it is basically difficult to stray away from it.
is also the problem in that country. So, if that is the case, if the fundamental economic numbers are about the same between the Philippines and the US, then what is the problem in believing that all is well in America? The period that saw the largest surge in the number of Filipino immigrants to the US began when many people lost hope in the Philippines’s future. By almost all economic indicators, it was about in 1980 when the numbers started turning sour, and accelerated after the assassination of former Sen. Benigno “Ninoy” Aquino Jr. But the negative economic trend forecasting a dimmer future was already clear before August 21, 1983. It is not so much where a nation and its economy are, but where they are headed; and the US is not headed to better times, like we have always expected it to be. That is what most Filipinos do not realize. For example, in 2008 the US average hourly income was growing at 3.5 percent a year. Now it is declining at the rate of 0.05 percent. Further, the US economy is not creating quality jobs. In October one in five of all new jobs was as a bartender or food server. In 1990 there were 6 million waiters and bartenders, and 18 million jobs in manufacturing. Today food-service jobs have increased to 10 million, and manufacturing jobs have decreased to 12 million.
We know exactly what that means, as the Philippines had experienced low-wage, low-quality job creation for decades. It’s only in the last few years that the country has started to overcome the problem that the US is becoming more entangled in. As a nation’s economy declines, you find some weird statistics. In 2007 the average 25-year-old spent 9.2-percent more time each day at work or in a work-related activity than in 2013. Now that same person is spending 10-percent more time sleeping than in 2007. The Wall Street Journal put it this way: “Americans slept more and worked less last year, reflecting an economy that remains groggy.” The future also dims when you consider that, in 1980, 80 percent of all 18- to 24-year-old men had a job of some kind. That percentage dropped to 64 percent in 2013. If those in this age group are out of work, how can they buy a house, raise families and build an economy five to 10 years from now? As the lights grow dimmer on the US economy, the advantages brighten in the Philippines.
Territorial dispute
businesses in our country are owned and managed by Chinese-Filipinos. Gone were the days when the Chinese were ridiculed and were restricted to pass only through Intramuros’s Parian gate. Today they are fully respected and even emulated as models of hard work and patience. On the other hand, in our country today, the proliferation of illegal drugs is being blamed on the Chinese. There is this extreme view that China is inflicting massive damage on our society by encouraging drug addiction among our people, probably in the same way that, some believed, opium was used to ruin China during the 1800s.
THE most obvious obstacle to having a better relationship with China is our country’s claims to reputedly mineralrich islands in the West Philippine Sea. Both sides firmly believe in their own historic claims. Both countries have to protect their strategic economic interest in the disputed islands. Both nations have the national honor and pride to fight for. As a consequence of this deadlock, an escalation of military buildup occurred. The capability and willingness of the claimants to engage in armed conflict is now being shown constantly. Joint military exercises among allies are frequently reported on in the media to convey their readiness to move beyond diplomatic solutions when it becomes necessary.
Perception of hostilities
ON both sides of the wall, people’s perception of these hostilities worsens the relationship between Manila and Beijing. In China they believe that our country is harassing, hurting and even killing Chinese citizens. The isolated crimes that some Chinese were unlucky to have fallen victim to were erroneously interpreted as an organized effort to retaliate against them. Such crimes were blown out of proportion to make them hate us more. They fail to appreciate the reality that millions of Chinese in our country live in prosperity and relative peace here. In fact, almost all successful
E-mail me at mangun@gmail.com. Visit my website at www.mangunonmarkets.com. Follow me on Twitter at @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.
Best friends
OUR country’s best interest is paramount in fostering a deeper relationship with China. We must accept the fact that China can conveniently exist without us. We need China, economically and even socially. We must pursue a more stable and closer relationship with China without compromising our pride as a nation. We can achieve this without sacrificing our friendship with the US. Even the European allies of the US recognize that they need China. President Aquino has already said we shall go back to making China a close friend. It is time to breach the wall. Ariel Nepomuceno is the deputy commissioner for the enforcement group of the Bureau of Customs.
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Tax treatment of stock options revisited Atty. Ayesha Hania B. Matanog
Tax Law for Business
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EFORE December 27, 2012, the Bureau of Internal Revenue (BIR) issued inconsistent rulings on the treatment of stocks options granted by employers to their employees. One ruling stated that there is no income derived from the exercise of the option. Another ruling held that the difference between the market price of the share and the exercise price is a benefit subject to fringe-benefit tax, while a more recent ruling considered the discount as compensation subject to withholding tax.
To clarify the inconsistencies, the BIR issued Revenue Memorandum Circular (RMC) 88-2012. This circular stated that any income or gain obtained by the employees from the exercise of stock options is additional compensation subject to income tax and, consequently, to withholding tax on compensation. It, however, clarified that the income or gain obtained by employees in managerial or supervisory positions—which qualifies as a fringe benefit—is subject to the fringe-benefit tax. The tax on compensation or fringe-benefit tax applies, whether the shares of stock involved are those of a domestic corporation or a foreign one. To further clarify the tax treatment of stock options, the BIR issued RMC 79-2014 last month. The new circular provides a more in-depth discussion on what should be the treatment of the grant, exercise and transfer of stock options, and adds new requirements for reporting. In so far as the exercise of the option is concerned, the new circular, more or less, maintains the same rule if the involved shares are that of the employer or shares it owns. Thus, in the event the option is granted by an employer involving its own shares of stocks or shares it owns, additional compensation shall be recognized and subjected to income tax and, consequently, to withholding taxes on compensation upon the exercise of the option by a rank-and-file employee. However, if the employee who exercises the option occupies a supervisory or managerial position, there shall be a fringe benefit subject to the fringebenefit tax. The additional compensation or the recognized fringe benefit is equivalent to the difference of the book value or fair market value of the shares, whichever is higher, at the time of the exercise of the stock option and the price fixed on the grant date. An added feature of this new circular is the treatment of the option in case the grantee is other than an employee. If the option is granted to a supplier of goods or services, the difference of the book value or fair market value of the shares, whichever is higher, at the time of the exercise of the stock option and the price fixed on the grant date shall be recognized as additional consideration for services rendered or goods supplied. However, the same shall be considered a donation if the grantee is a person, natural or juridical, who is not an employee or supplier of goods and services.
Previous issuances did not specify the rules applicable at the time of grant. With the new circular, in the event that option is granted due to an employee-employer relationship, and where the grantor is the employer and the grantee is the employee, and no payment is received for the grant of this option, the grantor cannot claim deductions for the grant of the stock option. If the option is granted for a price, the full price of the option is treated as capital gains. Also, the issuance of the option is subject to documentary-stamp tax. If the option is sold, the same is treated as a sale of shares subject to capital-gains tax. And if the transfer is without consideration, the same is treated as a donation subject to donor’s tax. Other than dealing with the tax consequences of the issuance, grant, exercise and sale of an option, the new circular imposes new administrative reporting requirements not found in the old rules. The new circular requires that the issuing corporation must, within 30 days from the grant of the option, submit to the revenue district office where it is registered a statement executed under oath that indicates, among others, the terms and conditions of the stock options, book value, fair market value and par value of the shares subject of the option at exercise date, and the taxes and amount paid for the grant, if any. Still under the new circular, during the exercise period, the issuing corporation is mandated to file a report on or before the 10th day of the month following the month of exercise stating therein, among others, book value; fair market value and par value of the shares subject of the option at exercise date; the mode of settlement; and the taxes withheld on the exercise and fringe-benefit tax paid, if any. The author is a junior associate of Du-Baladad and Associates Law Offices, a member-firm of the World Tax Services Alliance. The article is for general information only, and is neither intended nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. For comments or questions about the article, send an e-mail to the author at ayesha.matanog@bdblaw. com.ph or call 403-2001, local 170.
The happy and faithful servant Msgr. Sabino A. Vengco Jr.
Alálaong Bagá
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APPY is the person who fears the Lord and walks in His ways (Psalm 128:1–2, 3, 4–5). Such fidelity to God means that one takes the trouble to invest whatever talents one may have been given to the glory of God (Matthew 25:14–30).
Blessed are you who fear the Lord LIKE a written piece of wisdom, Psalm 128 instructs, rather than addresses, God in praise or in the form of a petition. It begins with a beatitude: Happy are all who fear the Lord and follow His ways. Fear of the Lord is a characteristic of the righteous person. It is not an abstract attitude; it involves concrete fidelity to the ways of the Lord. It denotes tremendous awe at the marvels and power of God, which moves one to live in accordance to His will. It is not the terror of being mistreated, but uncertainty, should one be remiss in one’s obligations to his or her relationship with the Almighty. The promised blessings begin with the good fortune of enjoying the fruit of one’s labor, and not with somebody else eating the fruit of what one has planted (cf. Isaiah 65:21–23). In other words, no enemy shall have your grain for food or drink your wine (cf. Isaiah 62:8–9).
God’s favor will also be experienced in having a large and extended family: the wife, like a fruitful vine; and the sons, like olive saplings. A large family is a sign of fertility and prosperity, providing companionship in life, partnership in work and protection in a hostile environment. This will be your blessing if you fear the Lord. May God bless you from Zion, His dwelling place, and may you share in Jerusalem’s prosperity all the days of your life.
Well done, good and faithful servant
THE Gospel reading again stresses the importance of preparedness, and the proper use of time and resources, before the coming of the one who will demand an accounting from each person. A man entrusts huge amounts of money to his three servants before going on a journey; he has great confidence in them. A talent is equivalent to 6,000 denarii; a denarius is a day’s wage. Each
Inter Press Service
Conclusion
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RESIDENT Aquino has faced criticism from affected residents, who used last Saturday’s memorial to blast the government for its ineptitude in the recovery process.
Efleda Bautista, one of the leaders of People Surge, a group of typhoon survivors, told journalists, “We have felt a year’s worth of the government’s vicious abandonment, corruption, deceit and repression, and have seen a year’s worth of news and studies that confirm this situation.” Protesters burned a 9-foot effigy of the President on the day of the anniversary. Early morning on November 8, more than 5,000 people holding balloons, lanterns and candles walked around Tacloban in an act
of mourning and remembrance. The Roman Catholic Church declared the anniversary date as a national day of prayer as church bells pealed and sirens wailed at the start of a Mass at the grave site where nearly 3,000 people are buried. Hundreds of fishermen staged protests to demand that the government provide new homes, jobs and livelihoods, accusing government officials of diverting aid and reconstruction funds. Filipino netizens recalled that they cried nonstop while helplessly
servant received a certain amount of money that is determined according to his ability. Upon the man’s return, he settles accounts with the servants individually. The first two servants, who received five and two talents, respectively, show how they had prepared for the inevitable accounting. Their master trusted them enough to leave so much money with them, and they measured up to the trust accorded to them by actively engaging in business ventures to make profits. The two traded with the money entrusted to them and doubled the amounts they received. Their good reports earn their master’s recognition, and his reward for them is this: “Well done, good and trustworthy servant; you have been trustworthy in a few things, I will put you in charge of many things; enter into the joy of your master!”
The wicked, lazy servant
THE third servant who buried in the ground the one talent entrusted to him gives the excuse that he fears his harsh master, who, he charges, reaps where he did not sow and gathers where he did not scatter any seed. He could only return the same amount he was left with. His inactivity and fear of failure and possible punishment actually deprived his master, at the very least, of the interest the money could have gained from the bankers. In response, the master calls the
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third servant “wicked and lazy.” In fact, the master, in entrusting his money to his servants, planted and scattered seeds with the intention to reap and gather. For the sake of argument, the master repeats the charge of his servant, but draws a different conclusion: If he reaps where he did not sow and gathers where he did not scatter, then the servant should have deposited the money with the bankers, so that, on his return, he gets back his money with interest. It is to the darkness outside that the worthless servant is ordered thrown to weep in regret, even as the one talent is taken away from him and given to the faithful servant with the 10 talents. Alálaong bagá, it is not an acceptable excuse for one to fear and be paralyzed into passivity. One is given a task according to one’s ability; the opportunity is there: it is a “use it or lose it” proposition. Those who have talents, and make more, get more; those who have one talent, but fail to make use of it, will have even that taken away from them. A talent buried is not a talent saved; it is a talent lost. “The fear of the Lord is the beginning of wisdom” (Proverbs 9:10), not the end, because the Lord blesses and favors those who fear Him. Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.
China changes the subject in Hong Kong William Pesek
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BLOOMBERG VIEW
S hedge-fund managers declare victory with the launch of the Shanghai-Hong Kong stock link, don’t forget the obvious loser: the city’s pro-democracy movement.
For almost seven weeks, the students who have commandeered key streets around Hong Kong have sought modest concessions from Beijing. They probably would’ve folded their tents long ago if Chinese President Xi Jinping had signaled that he might, perhaps, let Hong Kongers choose their own leader at some vague point in the years ahead. The angry masses might have even settled for the slightest hint that unpopular Chief Executive Leung Chun-ying might step down early. But Xi hasn’t just held his ground; he’s managed to shift it right underneath the protesters. All it took was saying yes to the long-anticipated Shanghai-Hong Kong exchange link that allows for $3.8 billion of daily cross-border purchases, a limit that regulators will increase if the link is a success. Xi’s Communist Party may be
clumsy at diplomacy, but it sure knows how to change the subject. Over in Beijing, where Xi is hosting United States President Barack Obama, Russian President Vladimir Putin and other Asia-Pacific leaders, the buzz is about China’s meteoric rise and how it’s reshaping the world, not its encroachment on Hong Kong’s civil liberties. US officials are celebrating a “breakthrough” in a new technology trade pact, rather than praising the city’s protesters. As the global media pulsates with dollar signs and speculation about what might become of the Hong Kong stock link, they’re not condemning China for its territorial expansion in Asia, checkbook diplomacy that supports many a rogue regime, or the military arms race it’s inspiring. Rather, the talk is of poetry. In a closed-door meeting with Leung on Monday, Xi cited a
Filipinos take to the streets one year after Yolanda By Diana Mendoza
Thursday, November 13, 2014
watching on their television and computer screens how Tacloban was battered by the storm. They posted and shared photos of Filipinos who were hailed as heroes because they volunteered to meet and drive survivors to their relatives in Manila and other places as they alighted from military rescue planes. “Before” and “after” pictures of the area also made the rounds on the Web.
‘Billions’ in international assistance
DURING a visit to nearby Samar island before the storm anniversary, President Aquino said, “I would hope we can move even faster and I will push everybody to move even faster, but the sad reality is the scope of work we need to do can really not be done overnight. I want to do it correctly so that benefits are permanent.” The Philippine government
estimates the need for a P170-billion ($3.8-billion) master plan to rebuild the affected communities, including the construction of a 4-meter-high dike along the 27-km coastline to prevent further damage in case of another disaster. Mayor Alfred Romualdez of Tacloban told journalists that 2 million people are still living in tents and only 1,422 households have been relocated to permanent shelters. As many as 205,500 survivors are still in need of permanent houses. The recovery process was successful in erecting new electricity posts a few months after the storm, while black swaths of mud have now been replaced by greenery, with crops quickly replanted, and rice fields thriving once more. Government, private and international aid workers also restored sanitation and hygiene programs in the aftermath of the storm.
line from a poem that Chinese emperors used to praise loyal ministers facing rough times. The verse Xi chose—“strong winds reveal the strength of sturdy grass”— was his way of patting Leung on the back for standing firm against those pesky protesters. It’s also the clearest sign yet that Xi plans to use carrots, rather than sticks, to eclipse the biggest challenge to Beijing’s authority since the Hong Kong handover in 1997. Yet, the quid pro quos for opening the international monetary spigot pose risks both to China and Hong Kong. Some might conclude that this link is all China’s gain. After all, speculation has already turned to how much Beijing will increase the daily flow of investment into China’s underperforming bourses; ditto for the next cities that will benefit from this so-called train, including Shenzhen and Tianjin. But this is Hong Kong’s payday, too. Xi just strengthened the city’s position as the clearing house for China with its rule of law and a first-world banking system. For China, there are long-term positives to being included in global stock indices. But welcoming walls of money is no replacement for the economic reform needed to internationalize the economy. That re-
quires bold and steady progress to open the economy, increase transparency, and reduce the roles played by state-owned enterprises and the shadow-banking system. As China increases the number of financial products available to retail investors, it should allow some of Hong Kong’s higher governance standards to bleed over to the mainland. But the train goes both ways. Now that Leung has his precious Shanghai tie-up, Beijing is signaling that it’s time for his government—and police force—to fulfill its end of the bargain and send protesters home. Also, by reminding the business community that China is still the proverbial goose laying golden eggs, Hong Kong Inc. has less incentive to push for greater democratic development. As I’ve argued before, Hong Kong’s tycoons have much invested in preserving the freedom of expression, transparency and legal certainty that make Hong Kong the thriving business center it is today. Those who see the anti-Beijing students blocking the streets as misguided nuisances haven’t thought things through. In order to maintain its pivotal role, narrow the widening gap between rich and poor, and make winners of everyone, Hong Kong needs greater accountability to the people, not less.
The Asian Development Bank announced it was trying to determine whether to provide an additional $150 million worth of official assistance to Yolanda survivors, on top of the $900 million already pledged in grants and concessions at the start of reconstruction efforts. The United States Agency for International Development is expected to provide a $10-million technicalassistance plan to develop 18,400 projects across the country. These will cover other hard-hit areas outside of Tacloban, such as Guiuan town in Eastern Samar province, which will also receive $10 million from the United Arab Emirates for rehabilitation programs. The Canadian government also offered C$3.75 million to restore livelihoods and access to water to the affected provinces of Leyte and Iloilo. The Philippine government
assured that the billions donated, offered and pledged by the international community would be safely accounted for, monitored, guarded and reported on with transparency. Former Sen. Panfilo Lacson, who was designated in charge of the government’s rehabilitation program, said he had confirmed reports that some bunkhouses in Tacloban and Eastern Samar were built with substandard materials and that someone had colluded with contractors for the use of substandard materials to generate kickbacks. “That’s when I realized we have to monitor the funds,” he added. He asked Filipinos to share information that they know about irregularities on the management and administration of the billions of pesos from the national coffers and donor-organizations for rebuilding communities.
2nd Front Page BusinessMirror
A8 Thursday, November 13, 2014
Vista Land nine-month income rose 12 percent
Moody’s ups PHL growth forecast to 6.3% this year
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oody’s Investors Service hiked its growth forecast for the Philippines this year to 6.3 percent in terms of gross domestic product (GDP), noting the country’s gains in recent months.
By VG Cabuag
roperty developer Vista Land & Landscapes Inc. on Wednesday said its net income grew 12 percent in the first nine months of the year. It also expressed confidence of hitting record sales of P51 billion by the end of the year. The company said its profit for the January-to-September period reached P4.25 billion, from last year’s P3.78 billion. Sales for the third quarter reached almost P12.8 billion, bringing the total for the first nine months of the year to P38.7 billion. The company is confident it would meet its net income and sales targets for the year. “We should have record sales in reservation sales See “Vista land,” A2
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By Bianca Cuaresma
In the credit watcher’s latest assessment of the $270-billion economy, Moody’s projected growth averaging 6.3 percent for the country this year. This was up from earlier forecast growth of only 6 percent, as published in its Asia-Pacific Sovereign Outlook in July. Moody’s most recent estimate of 2014 growth was also higher than actual reported growth, averaging 6 percent in the first six months, but
below the government’s anticipated growth for the year, ranging from 6.5 percent to 7.5 percent. For next year, Moody’s sees Philippine growth accelerating to 6.5 percent. Moody’s said the economy has entered a structural shift to higher growth borne of structural and policy-reform measures adopted the past several years. “The new growth path is being reinforced, in
part, by improved fiscal management. Revenue growth has accommodated sizable increases in infrastructure and social spending, although revenue generation remains weak when compared with investment-grade sovereigns overall,” the credit watcher said. However, Moody’s also said that despite the higher revenue base reported in recent months, the government’s inability to pursue a proper growthboostingspendingprogramhelpedreducethecountry’s growth potential in the first half of the year. “Although positive for the ongoing trend of fiscal consolidation, underspending in the first semester has weighed on economic growth. In the national accounts, government consumption grew only 0.9 percent year on year and public construction fell 10.9 percent; in contrast, real GDP grew 6 percent, driven by the ongoing momentum in household spending, private investment and external demand,” Moody’s said. Moody’s also warned that data in July and August show underspending likely persisting during the period. But overall, Moody’s retained its bullish outlook on the Philippines, citing the country’s continued resilience to external financial shocks. “The Philippines has maintained a currentaccount surplus bolstered by remittance inflows from overseas Filipinos and services exports, particularly from the business-process outsourcing sector,” Moody’s said. “These flows are likely to remain strong, if not strengthen, over the outlook horizon. The Philippines’s external strengths are reflected in the falling external debt-to-GDP ratio and the ample stock of gross international reserves, which now exceed the country’s total external debt,” it added. Moody’s reiterated its positive-ratings outlook of the Philippines—which means that the country is up for a possible upgrade in the next months after its most recent credit movement. “In view of the currently positive outlook on the Philippines’s sovereign rating, a downward rating movement is unlikely over the near term,” Moody’s said. Moody’s added that continued improvements in the country’s main debt metrics and growth dynamics, while maintaining macroeconomic stability, would support further upgrades.
BIR clarifies ruling on preferential tax rates under treaties Continued from A1
preferential tax rates on their income in the Philippines because they might still have to pay taxes in the countries where they are considered resident taxpayers. Charadine Bandon, chief of the International Tax Affairs Division of the BIR, said tax treaties serve as mechanisms to avoid double taxation and provide incentives for foreign corporations to invest in the Philippines. According to the BIR web site, the Philippines has concluded 38 tax treaties with various countries around the world, including five tax pacts with other members of the Asean, namely, Singapore, Malaysia, Indonesia, Thailand and Vietnam. Aside from these tax treaties, the Philippines had also recently signed the Organization for Economic Cooperation and Development’s Convention on Mutual Administrative Assistance in Tax Matters to Enhance Tax Compliance.
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OBAMA, XI HIGHLIGHT AREAS OF AGREEMENT Continued from A1
other Chinese officials—he spent time in Iowa as an exchange student—and an ease with public appearances that eluded his predecessor, Hu Jintao. Yet, Xi has consolidated power since taking office, deepened China’s provocative maritime disputes with its neighbors and stands accused of continuing cyberattacks against the US. US officials have new concerns over the potential for a crackdown on pro-democracy protesters in Hong Kong and are warily watching Beijing strengthen ties with Moscow, as the West distances itself from Russia. For its part, Beijing remains skeptical of Obama’s intentions in Asia, seeing his efforts to bolster US economic ties in the region as a way of countering China’s rise. Speaking through a translator, Xi said “the Pacific Ocean is broad enough” to accommodate the prowess of both the US and China. Obama’s domestic political weakness, particularly following the Democrats’ defeats in last week’s midterm elections, has also sparked questions in China about whether the US president can deliver on potential international agreements. In the days leading up to Obama’s visit, a newspaper with ties to the Chinese government said the American public had “downgraded” Obama and grown tired of his “banality.” The US president dismissed such criticism in China, saying, “I am always working on the assumption that the press gives me a hard time wherever I go, whether in the United States or China.” Obama and Xi did announce a series of agreements through their two days of talks, including a significant joint announcement on greenhouse gases that was the result of months of secret discussions between US and Chinese officials. As part of the new agreement, Obama announced that the US would move much faster in cutting pollution, with a goal to reduce emissions by 26 percent to 28 percent by 2025, compared with 2005 levels. Xi, whose country’s emissions are still growing as it builds new coal plants, didn’t commit to cut emissions by a specific amount. Rather, he set a target for China’s emissions to peak by 2030, or earlier if possible. See related story on B3-3. Obama and Xi also announced plans to have their militaries give each other more guidance about their activities in the Pacific. There was also an agreement to move forward on trade talks to reduce tariffs on high-tech goods, as well as a deal to extend the lengths of visas granted to US and Chinese citizens. Human rights has long been an area where the US and China have been at odds. Obama said he broached the topic in his conversations with Xi, saying universal freedoms are essential “whether it is in New York or Paris of Hong Kong.” AP